HomeMy WebLinkAboutAdopt Resolution No. 2017-24 authorizing certain City Employ Dept. ID FN17-012 Page 1 of 2
Meeting Date: 6/19/2017
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CITY OF HUNTINGTON BEACH
REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: 6/19/2017
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Lori Ann Farrell Harrison, Chief Financial Officer
SUBJECT: Adopt Resolution No. 2017-24 authorizing certain City Employees and
Hinderliter, DeLlamas & Associates (HDL) access to Sales and Use Tax
Records
Statement of Issue:
City Council authorization is requested to amend Resolution No. 2014-37 to reflect changes in the
City Charter to adopt a resolution allowing the City Manager, City Treasurer, Chief Financial Officer,
Finance Manager or other officer or employee of the City as designated in writing by the City
Manager, as well as the City's Sales and Use Tax auditing agency, Hinderliter de Llamas and
Associates (HdL), to access sales and use tax records from the Board of Equalization (BOE).
Financial Impact:
Not applicable.
Recommended Action:
Adopt Resolution 2017-24, "A Resolution of the City Council of the City of Huntington Beach
Repealing Resolution No. 2014-27 and Authorizing Certain City Employees and Hinderliter, de
Llamas & Associates Access to Sales and Use or Transactions and Use Tax Records Pursuant to
Section 7056 of the Revenue and Taxation Code."
Alternative Action(s):
Do not approve the recommended action and direct staff accordingly.
Analysis:
On July 21, 2014, the City Council approved Resolution No. 5945 authorizing certain City Officials
and City Employees as well as HdL, access to the City's sales and use tax records, per Section
7056 of the Revenue and Taxation Code. A recent review of the list of approved City Officials and
City Employees, per Resolution No. 2014-37, reveals it is necessary to update the Resolution to
reflect official title changes from the Finance Director to the Chief Financial Officer and from
Accounting Manager to Finance Manager. The Resolution continues to allow the City Manager to
designate, in writing, additional City officials and employees access to Board of Equalization data.
The proposed Resolution will allow individuals who need or require access to the sales and use tax
records to legally review this information in accordance with Section 7056 of the Revenue and
Taxation Code. All individuals who have access to sales and use tax records will be required to
sign a confidentially statement, stating that they will protect the information and not use it for
personal gain.
HB -161- Item 11. - I
Dept. ID FN17-012 Page 2 of 2
Meeting Date:6/19/2017
Environmental Status:
Not Applicable.
Strategic Plan Goal:
Strengthen economic and financial sustainability.
Attachment(s):
1. Resolution 2017-24, "A Resolution of the City Council of the City of Huntington Beach
Repealing Resolution No. 2014-27 and Authorizing Certain City Employees and Hinderliter,
de Llamas & Associates Access to Sales and Use or Transactions and Use Tax Records
Pursuant to Section 7056 of the Revenue and Taxation Code"
Item 11. - 2 KB -1 62_
RESOLUTION NO. 2017-24
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH REPEALING RESOLUTION NO. 2014-37
AND AUTHORIZING CERTAIN CITY EMPLOYEES AND
HINDERLITER, DE LLAMAS & ASSOCIATES ACCESS TO SALES, USE OR
TRANSACTIONS AND USE TAX RECORDS PURSUANT TO SECTION 7056
OF THE REVENUE AND TAXATION CODE
WHEREAS, pursuant to agreement with the City, the State of California Board of
Equalization provides the City with information contained in the files of the Board of
Equalization relating to sales, use or transactions and use tax records; and
On May 21, 2007, the City Council adopted Resolution No. 2007-32 which authorized
certain City officials and Hinderliter, de Llamas & Associates to receive and review information
related to sales, use or transactions and use tax records; and
On July 21, 2014, the City Council adopted Resolution No. 2014-37 which authorized
certain City officials and Hinderliter, De Llamas & Associates to receive and review information
related to sales, use or transactions and use tax records; and
Since the adoption of Resolution No. 2014-37, the City has undergone reorganization,
adding and deleting titles and responsibilities of certain employees; and
The City wishes to repeal Resolution No. 2014-37 to authorize City employees to receive
and review information relating to sales, use or transactions and use tax records for the City of
Huntington Beach from the Board of Equalization,
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows:
SECTION 1. The following City officials and City employees are authorized to receive
and review information relating to sales, use or transactions and use tax records for the City of
Huntington Beach from the Board of Equalization:
• City Treasurer
• City Manager
• Chief Financial Officer
• Finance Manager
• Any officer or employee of the City as designated in writing by the City
Manager
17-5806/158417/RLS 5/17/17/DO 1
RESOLUTION NO. 2017-24
SECTION 2. The following independent contractor for the City of Huntington Beach
is hereby authorized to receive and review information relating to sales, use or transactions and
use tax records for the City of Huntington Beach:
Hinderliter, de Llamas and Associates
SECTION 3. That Hinderliter, de Llamas & Associates, Inc. is hereby designated to
examine the sales, use and transactions tax records of the Board pertaining to sales, use and
transactions taxes collected for the City by the Board. The person or entity designated by this
section meets all of the following conditions:
A. has entered into a contract with the City to examine those sales, use and
transactions tax records; and
B. is required by that contract to disclose information contained in, or derived
from, those sales, use or transactions use tax records only to the officer or
employee authorized under Sections 1 or 2 of this resolution to examine
the information; and
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 obtained by examination of the Board records shall be used only for purposes
related to the collection of City sales, use and transactions taxes by the Board pursuant to the
contract between the City and the Board .for purposes relating to the governmental functions of
the City listed in Section 2 of this resolution.
SECTION 4. All City officials and/or City employees hereby authorized to receive and
review information relating to sales, use or transactions and use tax records for the City shall
execute a confidential statement attached hereto as Exhibit A and incorporated herein by this
reference.
17-5806/158417/RLS 5/17/17/DO 2
RESOLUTION NO. 2017-24
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 19thday of June 2017.
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17 5806 15847 1 /RLS 5/17/17/Do 3
RESOLUTION NO. 2017-24
EXHIBIT A
State of California Franchise Tax Board
Confidentiality Statement
Confidential tax return information is protected from disclosure by law, regulation, and
policy. Information security is strictly enforced. Violators may be subject to disciplinary,
civil and/or criminal action. Protecting confidential tax return information is in the
public's interest, the state's interest, and the City's interest.
A City official/City employee is required to protect the following types of information
received from the Franchise Tax Board:
• Taxpayer name
• Taxpayer address
• Taxpayer social security or taxpayer identification number
• Principal business activity code
A City official/employee is required to protect confidential information by:
• Accessing or modifying information only for the purpose of performing official duties.
• Never accessing or inspecting information for curiosity or personal reasons.
• Never showing or discussing confidential information to or with anyone who does,not
have the need to know.
• Placing confidential information only in approved locations.
• Never removing confidential information from your work site without authorization.
Unauthorized inspection, access, use, or disclosure of confidential tax return information
is a crime under state laws, including but not limited to Sections 19542 and 19552 of the
California Revenue and Taxation Code and Section 502 of the Penal Code.
Unauthorized access, inspection, use, or disclosure may result in either or both of the
following:
• State criminal action
• State and/or taxpayer civil action
You are reminded that these rules are designed to protect everyone's right to privacy,
including your own.
1 certify that l have read the confidentiality statement printed above. 1 further certify and
understand that unauthorized access, inspection, use, or disclosure of confidential information
may be punishable as a crime and may result in disciplinary and/or civil action being taken
against me.
Name:
Signature: Date:
17-5806/15817/RLS 5/17/17/DO
i
Res. No. 2017-24
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Regular meeting thereof held on June 19, 2017 by the following vote:
AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, Peterson
NOES: None
ABSENT: None
RECUSE: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California