HomeMy WebLinkAboutResolutions - No. 2018-246RESOLUTION NO. 2018-246
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING
EXAMINATION OF SALES, USE, AND TRANSACTIONS TAX
RECORDS AND AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES
AGREEMENT WITH HINDERLITER, DE LLAMAS & ASSOCIATES, OF
DIAMOND BAR, CALIFORNIA, FOR MEASURE L TRANSACTIONS
TAX, AUDIT, RECOVERY, AND INFORMATION SERVICES
WHEREAS, pursuant to Ordinance 551, the City of Lodi entered into a contract on
October 3, 1973, with the California State Board of Equalization, which is currently titled the
California Department of Tax and Fee Administration (CDTFA) to perform all functions incident
to the administration of local sales, use, and transactions taxes; and
WHEREAS, the City Council of the City of Lodi deems it desirable and necessary for
authorized representatives of the City to examine confidential sales, use, and transactions tax
records of CDTFA pertaining to sales, use, and transactions taxes collected by the Department
pursuant to that contract; and
WHEREAS, Section 7056 of the Revenue and Taxation Code sets forth certain
requirements and conditions for the disclosure of CDTFA records, and establishes criminal
penalties for the unlawful disclosure of information contained in, or derived from, the sales, use,
and transactions tax records of CDTFA; and
WHEREAS, Hinderliter, de Llamas & Associates (HdL) has provided sales tax audit,
economic analysis, recovery, and consulting services to the City of Lodi for 27 years; and
WHEREAS, the City Council approved a five-year contract for these services on
July 19, 2017; and
WHEREAS, on November 6, 2018, Lodi voters approved passage of Measure L, a half
cent transactions and use tax increase for general purpose; and
WHEREAS, audit, recovery, and information services for Measure L are an essential
piece of ensuring uniform collection on eligible transactions, equal treatment of business under
Measure L, and full revenue recovery for the City as approved by the voters; and
WHEREAS, given HdL's track record of success in Lodi and throughout California, and
established relationships with CDTFA, it is in the City's best interest to procure the additional
audit, recovery, and information services for Measure L from HdL.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Lodi hereby
authorizes:
1) That the City Manager, or other officer or employee of the City designated in writing by
the City Manager to CDTFA, is hereby appointed to represent the City of Lodi with
authority to examine sales, use and transactions tax records of CDTFA pertaining to
sales, use and transactions taxes collected for the City by CDTFA pursuant to the
contract between the City and CDTFA (Contract). The information obtained by
examination of CDTFA records shall be used only for purposes related to the collection
of City sales, use, and transactions taxes by CDTFA pursuant to the Contract.
2) That the City Manager, or other officer or employee of the City designated in writing by
the City Manager to CDTFA, is hereby appointed to represent the City with authority to
examine those sales, use and transactions tax records of CDTFA, for purposes related
to the following governmental functions of the City:
a. City administration;
b. Revenue management and budgeting;
c. Community and economic development; and
d. Business license tax administration.
The information obtained by examination of CDTFA records shall be used only for those
governmental functions of the City listed above.
3) That Hinderliter, de Llamas & Associates is hereby designated to examine the sales,
use, and transactions tax records of the CDTFA pertaining to sales, use, and
transactions taxes collected for the City by the CDTFA. The person or entity designated
by this section meets all of the following conditions:
a. has an existing contract with the City to examine those sales, 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 Sections 1 or 2 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 obtained by examination of CDTFA records shall be used only for
purposes related to the collection of City sales, use, and transactions taxes by CDTFA
pursuant to the contract between the City and CDTFA and for purposes relating to the
governmental functions of the City listed in section 2 of this Resolution.
4) The City Manager to execute Amendment No. 1 to the Professional Services Agreement
with Hinderliter, de Llamas & Associates, of Diamond Bar, California, for Measure L
transactions and use tax audit, recovery, and information services. By this Resolution
the City Council certifies that Amendment No. 1 meets the requirements of
Section 7056(b)(1) of the California Revenue and Taxation Code.
Dated: December 19, 2018
I hereby certify that Resolution No. 2018-246 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held December 19, 2018, by the following vote:
AYES: COUNCIL MEMBERS — Johnson, Kuehne, Mounce, Nakanishi, and
Mayor Chandler
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
2018-246
NIFER FERRAIOLO
ty Clerk