Agmt13 Pacific Gas and Electric Company (PG&E) under collection of UUT

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March 29, 2013 Tony Gelphman Manager of Information Technology City of Redwood City 1017 Middlefield Road Redwood City, CA 94063 Re: Resolution of Under-Collection of Utility User Tax Settlement Agreement and Mutual Release Dear Mr. Gelphman: This, Settlement Agreement and Mutual Release ("Agreement"), when countersigned, will serve to memorialize the resolution between the City of Redwood City ("City") and Pacific Gas and Electric Company, a California corporation ("PG&E") relating to the under-collection of the City's Utility User's Tax. By way of background, the City's Utility User Tax Ordinance establishes a Utility User's Taxes, including an electricity user's tax and a gas user's tax (collectively, the "UUT"). PG&E, as a service supplier, is reguired to collect and remit the UUT to the City from PG&E service users using electricity and gas in the City. PG&E implemented the use of a geographical information system ("GIS") which enabled enhanced precision when processing annexations, the reassignment of accounts into City limits ("Reassignments"), and setting up new utilities accounts. The City was provided the opportunity to validate proposed Reassignments through a review of GIS, effective as of December 31, 2009. After obtaining the City's concurrence to such Reassignments, PG&E updated its billing system in November, 2011, reassigning service user accounts into City limits that had been erroneously excluded therefrom. The Parties wish to memorialize the understanding and agreement relating to PG&E's erroneous failure to collect and remit UUT from service users within City limits listed on Attachment "A" for the time period ending November 30, 2011. (The foregoing issue shall be referred to in this Agreement as the"Matter"). The City and PG&E desire to finally resolve all claims arising out of the Matter without any admission of liability and to avoid the expense of further transaction costs and litigation. Therefore,the City and PG&E agree as follows: 1. In full and complete settlement of the Matter, the City agrees to accept PG&E's payment of$76,016, which $48,285 was paid to the City on or about September 15, 2011, and the remaining amount ($27,731) to be paid once the agreement is reached. The City ATTY/AGR/2013.035/UUT SETTLEMENT AGREEMENT&MUTUAL RELEASE REV:03-21-13 MLG Page i of 8