Reso. No. __-__
393169.1
DocID #42009v1
RESOLUTION NO. __ -__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RICHMOND,
CALIFORNIA, APPROVING A LEGISLAT IVE SUBPOENA DIRECTED TO CHEVRON U.S.A., INC. TO AID ENFORCEMENT OF THE CITY’S BUSINESS
LICENSE TAX
WHEREAS , Chevron U.S.A., Inc. (“Chevron”) is subject to the City’s business license tax under Chapter 7.04 of the Richmond Municipal Code;
WHEREAS, section 7.04.430 of the Richmond Municipal Code authorizes City staff to examine the books, papers, tax returns, and records of any person subject to Chapter 7.04 of the Richmond Municipal Code for the purpose of verifying the accuracy of any declaration made, or if no declaration was made, to ascertain the business tax due;
WHEREAS, the City informed Chevron via its tax counsel not later than July 2024 of its desire to audit Chevron’s records as necessary to confirm its tax liability for years since 2022;
WHEREAS, notwithstanding the confidentiality of taxpayer data afforded by section 13.08.040 of the Richmond, Chevron has refused to provide data for audit absent a non-disclosure agreement;
WHEREAS, the City has unsuccessfully attempted to reach such an agreement with Chevron since July 2024;
WHEREAS, on December 19, 2024 Chevron made a payment of and declaration as to that tax which appears to be substantially less than is due;
WHEREAS, On April 1, 2025 Chevron made an additional true-up payment of and declaration as to that tax which further appears to be substantially less than is due;
WHEREAS , the City is no longer willing to allow Chevron to delay the audit;
WHEREAS , Government Code section 37104 recognizes the City’s authority to issue a legislative subpoena: “The legislative body may issue subpoenas requiring attendance of witnesses or production of books or other documents for evidence or testimony in any action or proceeding pending before it.” A legislative subpoena is
Reso. No. __-__
393169.1
DocID #42009v1
proper if “(1) it is authorized by ordinance or similar enactment, (2) it serves a valid legislative purpose, and (3) the witnesses or material subpoenaed are pertinent to the subject matter of the investigation.” (Connecticut Indem. Co. v. Superior Court (2000) 23 Cal.4th 807, 813);
WHEREAS , section 7.04.430 of the Richmond Municipal Code also authorizes administrative subpoenas to compel the production of relevant books, papers and records and the attendance of all persons as parties or witnesses to facilitate an audit of Business License Tax compliance; and,
WHEREAS , obtaining information to ensure compliance with the City’s taxes is a proper public purpose and the data and documents described in Exhibit A to the subpoena attached to this resolution are pertinent to the City’s effort to ensure Chevron’s compliance with its Business License Tax.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Richmond, as follows:
Section 1. The City Council hereby approves the subpoena attached hereto, authorizes the Mayor and City Clerk to execute it, and authorizes the City Attorney’s Office to serve it.
Section 2. The City Attorney’s Office is authorized to seek judicial assistance or other legal means to enforce the subpoena if necessary and Chevron may seek a protective order pursuant to Government Code section 37106 et seq. and other applicable law.
Section 3. This resolution shall take effect immediately upon its adoption.
******************************
I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond at a meeting thereof held April 22, 2025, by the following vote:
AYES:
NOES:
ABSTENTIONS:
Reso. No. __-__
393169.1
DocID #42009v1
ABSENT:
_____PAMELA CHRISTIAN_____
CLERK OF THE CITY OF RICHMOND
(SEAL)
Approved:
EDUARDO MARTINEZ_____
Mayor
Approved as to form:
CHRISTOPHER J. DYKZEUL, ___________
Assistant City Attorney
State of California }
County of Contra Costa :ss.
City of Richmond }
I certify that the foregoing is a true copy of Resolution No. __-__, finally passed and adopted by the Council of the City of Richmond at a meeting held on April 22, 2025.
_______________________________________
Pamela Christina, Clerk of the City of Richmond
Reso. No. __-__
393169.1
DocID #42009v1
Exhibit A to Resolution No. __-__
Legislative Subpoena Addressed to Chevron U.S.A., Inc.