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Home My WebLink AboutRESOLUTION 2007-32 - AMENDING RESOLUTION 2002-13 AND AUTHORI Council/Agency Meeting Held: o D Deferred/Continued to: Appr ved ❑ Conditionally Approved ❑ Denied City erk' ignat r Council Meeting Date: 5/21/2007 Department ID Number: FN 07-002 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND C COUNCIL MEMBERS SUBMITTED BY: PLOPLBRETH-GRAF , DPA, CITY ADMINISTRATOR PREPARED BY: DAN T. VILLELLA, CPA, FINANCE DIRECTOR tf s V SUBJECT: AUTHORIZE CERTAIN CITY OFFICIALS, CITY EMPLOYEES AND HINDERLITER DE LLAMAS AND ASSOCIATES TO ACCESS SALES AND USE TAX RECORDS Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Should the City Council adopt a resolution allowing the City Treasurer, City Administrator, Finance Director, or other officer or employee of the City as designated in writing by the City Administrator, 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). Funding Source: Not Applicable Recommended Action: Motion to: Adopt Resolution No. 2007-32 a resolution of the City Council of the City of Huntington Beach amending Resolution No. 2002-13 and Authorizing certain City Officials, City Employees and Hinderliter de Llamas and Associates access to Sales and Use Tax Records pursuant to Section 7056 of the Revenue and Taxation Code. Alternative Action(s): Do not approve resolution and maintain current access to sales and use tax records. REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 5/21/2007 DEPARTMENT ID NUMBER: FN 07-002 Analysis: In 1988, the City entered into an agreement with Hinderliter de Llamas and Associates (HdL) to perform quarterly Sales Tax Audits. On November 7, 1988, 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. The list of approved City Officials and City Employees was amended and expanded per Resolution No. 2002-13 on March 4, 2002, adding other necessary personnel. A recent review of the list of approved City Officials and City Employees (per Resolution No. 2002-13) revealed it was necessary to update it once again. A review of other California municipalities revealed the wide range of officials allowed access to sales and use tax data from the Board of Equalization (the Board). It appears prudent at this point to designate a limited number of individuals access to Board data. In addition, adding a clause allowing the City Administrator to designate, in writing, additional City officials and employees access to Board data, increases the flexibility of managing access to this information. 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. Strategic Plan Goal: Not Applicable Environmental Status: Not Applicable Attachment(s): •e Nu'mber No. Description 1. Resolution No. 2007-32 amending Resolution No.2002-13 -2- 5/3/2007 3:23 PM ATTACHMENT # 1 RESOLUTION NO. 2007-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH AMENDING RESOLUTION NO. 2002-13 AND AUTHORIZING CERTAIN CITY EMPLOYEES AND HINDERLITER, DE LLAMAS & ASSOCIATES ACCESS TO SALES 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 and use tax transactions; and On March 4, 2002, the City Council adopted Resolution No. 2002-13 which authorized certain City officials and Hinderliter, de Llamas & Associates to receive and review information related to sales tax and use tax transactions; and Since the adoption of Resolution 2002-13, the City has undergone reorganization adding and deleting titles and responsibilities of certain employees; and The City wishes to amend Resolution No. 2002-13 to authorize City employees to receive and review information relating to sales and use tax transactions for the City of Huntington Beach from the Board of Equalization, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Huntington Beach as follows: SECTION 1. The following City officials and City employees are authorized to receive and review information relating to sales and use tax transactions for the City of Huntington Beach from the Board of Equalization: • City Treasurer • City Administrator • Finance Director • Any officer or employee of the City as designated in writing by the City Administrator. SECTION 2. The following independent contractor for the City of Huntington Beach is .hereby authorized to receive and review information relating to sales and use tax transactions for the City of Huntington Beach: 07-102a/97K8 i Resolution No. 2007-32 Hinderliter, de Llamas & Associates Robert Hinderliter, Principal Lloyd de Llamas, Principal SECTION 3. The City Council of the City of Huntington Beach hereby certifies that Hinderliter, de Llamas & Associates: A. Has an existing contract with the City of Huntington Beach 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 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 tax records, after that contract has expired. SECTION 4: All City officials and/or City employees hereby authorized to receive and review information relating to sales and use tax transactions for the City shall execute a confidential statement attached hereto as Exhibit A and incorporated herein by this reference. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 21 s t day of May , 2007. Ma REVIEWED AND APPROVED: APPROVED AS TO FORM: City ministrator Ci Attorney y,2—+, INITIATED AND APPROVED: Finance Director 07-1024/9768 2 r Exhibit "A" Resolution No. 2007-32 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. i certify that / have read the confidentiality statement printed above. I 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 07-1024/9768 Res. No. 2007-32 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN 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 the 21st day of May, 2007 by the following vote: AYES: Bohr, Carchio, Cook, Coerper, Green, Hansen, Hardy NOES: None ABSENT: None ABSTAIN: None CiIVClerk and ex-officio lerk of the City Council of the City of Huntington Beach, California RCA ROUTING SHEET INITIATING DEPARTMENT: FINANCE SUBJECT: Authorizing certain City Officials, City Employees & HdL to access sales and use tax records COUNCIL MEETING DATE: May 21, 2007 RCA ATTACHMENTS' STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable Fiscal Impact Statement (Unbudgeted, over$5,000) Attached ❑ Not Applicable Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) Attached t Applicable Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable EXPLANATION1 IATTACHMENTS REVIEWED RETURNED FORWARDED, Administrative Staff Deputy City Administrator(Initial) City Administrator (Initial) } ( ) City Clerk ( }. EXPLANATION FOR RETURN OF ITEM: (Below - Use Only) RCA Author: Dan Villella,Finance Director and Michael Solorza, Sr. Administrative Analyst