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CITY COUNCIL AGENDA ITEM NO. 14



Meeting Date: May 28, 2002

Subject/Title: Approve a resolution authorizing certain City personnel access to sales and use tax records pursuant to Revenue and Taxation Code Section 7056.

Submitted by: Pamela Ehler, Director of Finance and Information Services

Approved by: John Stevenson, City Manager


RECOMMENDATION
Approve a resolution authorizing certain City personnel access to sales and use tax records pursuant to Revenue and Taxation Code Section 7056.

PREVIOUS ACTION
On November 25, 1997, the City Council of the City of Brentwood passed Resolution No. 97-231 authorizing the City Council, the City Manager, the Administrative Services Director, and the Senior Financial Analyst to receive and review sales and use tax allocation information from the State Board of Equalization.

BACKGROUND
Hinderliter, deLlamas conducts an on-going sales tax audit in order to identity and correct “point-of-sale” distribution errors and thereby generates unrealized sales tax income for the City.

The auditing service provides updated reports each quarter identifying changes in sales by major outlets and by category; area growth and decline comparisons; and current graphics, tables and top 100 listings. They also provide annual reports identifying historical growth comparisons with state, county, selected city averages and C.P.I. indices; top producers listings and make up and volatility of the economic base.

The City of Brentwood has a confidentiality agreement with Hinderliter, deLlamas & Associates to receive sales and use tax records. HdL is required by that contract to disclose information contained in, derived from, those sales and use tax records only to an officer or employee of the City who is authorized by this resolution to examine the information; is prohibited by that contract from performing consulting service for a retailer during the term of that contract; and is prohibited by that contract from retaining the information contained in, or derived from those sales tax records, after that contract is expired.

The information obtained by examination of Board records shall be used only for purposes related to the collection of local sales and use taxes by the Board for municipal revenue forecasting and verification.

The resolution authorizes the following City personnel access to sales and use tax records pursuant to revenue and taxation code section 7056:

City Council
City Manager
Director of Finance and Information Systems
Accountant

FISCAL IMPACT
The cost for this service is $325 per month and 15% of all new sales and/or use tax revenue recovered in a two year period, as a result of audit and recovery work performed has been included in the Budget. The unrealized revenue to be recovered is unknown at this time.


RESOLUTION NO. ________________

RESOLUTION AUTHORIZING CERTAIN CITY PERSONNEL ACCESS TO SALES AND USE TAX RECORDS PURSUANT TO REVENUE AND TAXATION CODE SECTION 7056.

WHEREAS, the following City Officials are hereby authorized to receive and review sales and use tax allocation information from the State Board of Equalization:

City Council
City Manager
Director of Finance and Information Systems
Accountant

WHEREAS, the following independent contractor for the City of Brentwood is hereby also authorized to receive and review sales and use tax data received from the State Board of Equalization.

Hinderliter, deLlamas & Associates: Robert Hinderliter, Principal
Lloyd de Llamas, Principal

WHEREAS, the City of Brentwood hereby certifies that Hinderliter, de Llamas & Associates:

A. Has a current confidentiality contract with the City to receive sales and use tax records; and
B. Is required by that contract to disclose information contained in, or derived from, those sales and use tax records only to an officer or employee of the City who is authorized by this resolution to examine the information; and
C. Is prohibited by that contract from performing consulting service for a retailer during the term of that contract; and
D. Is prohibited by that contract from retaining the information contained in, or derived from those sales tax records, after that contract has expired,

WHEREAS, information obtained by examination of Board records shall be used only for purposes related to the collection of local sales and use taxes by the Board for municipal revenue forecasting and verification.

WHEREAS, this resolution supersedes all previous authorizations.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brentwood, that the City Manger, the Director of Finance and the City Clerk are authorized to receive and review sales and use tax data received from the State Board of Equalization.

BE IT FURTHER RESOLVED that the City Clerk shall certify to the adoption of this Resolution and send forward a certified copy to:

State Board of Equalization
450 N Street, Attention: Local Tax Administrator
P.O. Box 942879
Sacramento, CA 95814
PASSED AND ADOPTED ON May 28, 2002 by the following vote:

AYES:
NOES:
ABSENT:

___________________________________
Mayor of the City of Brentwood

[ Seal ]

Attest:


_____________________________
City Clerk of the
City of Brentwood