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CITY COUNCIL AGENDA ITEM NO. 7

Meeting Date: July 26, 2005

Subject/Title: Adopt a resolution authorizing Individuals access to sales and use tax records pursuant to Revenue and Taxation Code Section 7056

Prepared by: Denise Davies, Chief Finance Officer

Submitted by: Pam Ehler, City Treasurer/Director of Finance & Information Systems

RECOMMENDATION
Adopt a resolution authorizing Individuals access to sales and use tax records pursuant to Revenue and Taxation Code Section 7056.

PREVIOUS ACTION
On June 11, 2002, the City Council passed Resolution No. 2571 authorizing the City Manager, the Director of Finance and Information Systems; and Accountant to receive and review sales and use tax allocation information from the State Board of Equalization.

On July 22, 2003, the City Council passed Resolution No. 2931 amending Resolution No. 2571 to change the authorization of certain City personnel access to sales and use tax records pursuant to Revenue and Taxation Code Section 7056.

BACKGROUND
Hinderliter, deLlamas & Associates (HdL) conducts an on-going sales tax audit in order to identify 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 comparison with state, county, selected city averages and C.P.I. indices; top producers listing 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 reports. 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 and for municipal revenue forecasting and verification. This resolution updates the position titles of employees authorized access to sales and use tax information and adds the Economic Development Manager as an authorized position.

The following City personnel will have access to sales and use tax records pursuant to Revenue and Taxation Code 7056:
City Manager
City Treasurer/Director of Finance and Information Systems
Director of Community Development
Chief Finance Officer
Economic Development Manager
Accounting Manager
Accountant

FISCAL IMPACT
The cost for HdL to provide 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.

Attachment:
Resolution

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AUTHORIZING INDIVIDUALS ACCESS TO SALES AND USE TAX RECORDS PURSUANT TO REVENUE AND TAXATION CODE SECTION 7056

WHEREAS, on June 11, 2002, the City Council passed Resolution No. 2571 authorizing the City Manager, the Director of Finance and Information Systems; and Accountant to receive and review sales and use tax allocation information from the State Board of Equalization; and

WHEREAS, On July 22, 2003, the City Council passed Resolution No. 2931 amending Resolution No. 2571 to change the authorization of certain City personnel access to sales and use tax records pursuant to Revenue and Taxation Code Section 7056; and

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

City Manager
City Treasurer/Director of Finance and Information Systems
Director of Community Development
Chief Finance Officer
Economic Development Manager
Accounting Manager
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 deLlamas, Principal

WHEREAS, the City of Brentwood hereby certifies that Hinderliter, deLlamas & 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 use only for purposes related to the collection of local sales and use taxes and for municipal forecasting and verification; and

WHEREAS, this resolution supersedes all previous authorizations.

NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood adopts this resolution authorizing Individuals access to sales and use tax records pursuant to Revenue and Taxation Code Section 7056.

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, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the 26th day of July 2005 by the following vote:
 

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