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CC SR 20190305 J - Sales and Use Tax Reso RANCHO PALOS VERDES CITY COUNCIL MEETING DATE: 03/05/2019 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA DESCRIPTION: Consideration and possible action to adopt a resolution authorizing additional staff; the Deputy Director of Finance and the Senior Administrative Analyst in the Finance Department to examine sales, use and transaction tax records. RECOMMENDED COUNCIL ACTION: (1) Adopt Resolution No. 2019-__ authorizing the Deputy Director of Finance and Senior Administrative Analyst (Finance) to examine the sales, use, and transactions tax records collected by the State Board of Equalization for the City; FISCAL IMPACT: N/A Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): ORIGINATED BY: Deborah Cullen, Director of Finance REVIEWED BY: Same as above APPROVED BY: Doug Willmore, City Manager. ATTACHED SUPPORTING DOCUMENTS: A. Resolution No. 2019-__ (page A-1) BACKGROUND AND DISCUSSION: The California State Board of Equalization requires the City Council to adopt the attached resolution (Attachment A) authorizing designated staff to examine confidential taxpayer records related to sales, use and transaction taxes collected. Staff has identified two positions, the Deputy Director of Finance and the Senior Administrative Analyst in the Finance Department that need to be authorized to review and access the confidential reports submitted to the City. These positions perform ana lysis on the tax data and use this information for forecasting future revenues. ALTERNATIVES: In addition to the Staff recommendation, the following alternative action is available for the City Council’s consideration: 1. Do not approve the draft resolution adding the Deputy Director of Finance and the Senior Administrative Analyst in the Finance Department. 1 1 RESOLUTION NO. 2019-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AUTHORIZING EXAMINATION OF SALES, USE AND TRANSACTIONS TAX RECORDS WHEREAS, pursuant to Ordinance 36, the City of Rancho Palos Verdes ("City") entered into a contract with the California State Board of Equalization ("Board of Equalization") to perform all functions incident to the administration and collection of local sales, use, and transactions taxes for the City; and WHEREAS, the City Council of the City of Rancho Palos Verdes deems it desirable and necessary for authorized representatives of the City to examine confidential sales, use and transactions tax records of the Board of Equalization pertaining to sales, use, and transactions taxes collected by the Board for the City pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Board of Equalization records, and establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales, use, and transactions tax records of the Board. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES HEREBY RESOLVES AS FOLLOWS: Section 1. That the following City officials are hereby authorized to examine sales, use and transactions tax records of the Board of Equalization pertaining to sales, use and transactions taxes collected for the City by the Board of Equalization: Mayor Councilmembers City Manager Finance Director Deputy Director of Finance Senior Administrative Analyst (Finance Department) Community Development Director Section 2. That the foregoing persons are authorized to examine the Board of Equalization' s records pertaining to sales, use and transactions taxes collected for the City by the Board of Equalization only for purposes related to the collection of local sales or transactions and use taxes by the Board of Equalization, or for purposes related to the governmental functions of city administration, revenue management, budgeting, and forecasting, community and economic development, and business license tax administration. Section 3. That Hinderliter, de Llamas& Associates (" HDL") is hereby designated to examine the sales, use, and transactions tax records of the Board of Equalization pertaining to sales, use, and transactions taxes collected for the City by the Board of Equalization. That HDL meets all of the following conditions: A-1 2 (a) Has an existing contract with the City to examine those sa les, use, and transactions tax records; (b) Is required by that contract to disclose information contained in, or derived from, those sales, use and transactions tax records only to the officer or employee authorized under Section 1 of this resolution to examine the information; (c) Is prohibited by that contract from performing consulting services 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, use, and transactions tax records, after that contract has expired. The information HDL obtains by examination of Board records shall be used only for purposes related to the collection of City sales, use, and transactions taxes by the Board of Equalization pursuant to the contract between the City and the Board of Equalization and for purposes relating to the governmental functions of the City listed in section 2 of this resolution. Section 4. The City Clerk shall certify to the passage, approval, and adoption of this Resolution, and shall cause this Resolution and her certification to be entered in the Book of Resolutions of the City Council. APPROVED AND ADOPTED THE 5TH DAY OF MARCH 2019. ___________________________ MAYOR ATTEST: ______________________________ CITY CLERK State of California ) County of Los Angeles ) ss City of Rancho Palos Verdes ) I, EMILY COLBORN, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2019-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on March 5, 2019. ____________________________ CITY CLERK __ A-2