HomeMy WebLinkAboutReso 2023-145
RESOLUTION NO. 2023-145
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING SALES AND USE TAX AND
TRANSACTIONS TAX AUDIT & INFORMATION SERVICES
AGREEMENT BETWEEN THE CITY AND HINDERLITER, DE
LLAMAS AND ASSOCIATES
WHEREAS, Hinderliter, de Llamas and Associates (HdL) has extensive experience in
providing sales tax analysis to many local cities; and
WHEREAS, the City requires the service of HdL to provide sales
and use tax services to assist in economic and business development and revenue projections as
well as transactions tax services to effectively monitor Measure P & Measure A revenues; and
WHEREAS, continuous monitoring, identification, and correction of allocation errors and
reporting deficiencies will help maximize sales tax revenues; and
WHEREAS, an effective review program can provide for more accurate budget forecasting
and financial planning; and
WHEREAS, the City desires a combination of data entry, report preparation, and data
analysis services necessary to effectively manage both its general sales and use tax,
and Measure "P" transactions, and use tax base for recovery of revenues either unreported or
erroneously allocated to other jurisdictions; and
WHEREAS, HdL has the programs, equipment, and personnel required to deliver the sales
and use and transactions and use tax-related services referenced herein; and
WHEREAS, pursuant to the proposed consultant agreement, HdL Consultant annual base
fee for services is $14,400. HdL will also receive a percentage based on recovered sales tax. For
general sales tax recovery HdL will receive 15% of sales and use tax revenue recovered, and will
receive 25% of Measure P and Measure A tax revenue recovered; and
WHEREAS, the maximum amount to be paid to HdL for services performed under the
agreement through June 30, 2024, shall not exceed $165,000, and, if the City exercises its one-
year option to extend the agreement, the maximum amount to be paid to HdL for the period July
1, 2024 through June 30, 2025, shall not exceed $200,000; and
WHEREAS, Section 7056 of the California Revenue and Taxation Code specifies the
conditions under which a city may authorize persons other than city officers and employees to
examine State Sales, Use, and Transactions Tax records; and
WHEREAS, the City desires to retain HdL and certifies that pursuant to the proposed
consultant agreement, HdL is:
Resolution No. 2023-145
Page No. 2
A. Authorized to examine sales, use or transactions and use tax records of the
Department of Tax and Fee Administration provided to the City pursuant to a contract under the
Bradley-Burns Uniform Sales and Use Tax Law;
B. Required to disclose information contained in, or derived from, those sales, use,
or transactions and use tax records only to an officer or employee of the City who is authorized by
resolution to examine the information;
C. Prohibited from performing consulting services for a retailer, as defined in
California Revenue & Taxation Code Section 6015, during the term of the agreement; and
D. Prohibited from retaining the information contained in, or derived from those
sales or transactions and use tax records, after the agreement has expired.
WHEREAS, in order to procure these services, HdL was chosen based on their unique
qualifications, including tax audit and California Department of Tax and Fee Administration
Document preparation; on this basis, HdL was awarded the contract on a professional services
basis under the authority of Chula Vista Municipal Code Section 2.56.110(H)(2) as the Purchasing
to be materially better served by
applying a different purchasing procedure.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it adopts the above recitals as true and correct and approves the Sales and Use Tax and
Transactions Tax Audit & Information Services Agreement, between the City and Hinderliter, de
Llamas and Associates, in the form presented, with such minor modifications as may be required
or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City
Clerk and authorizes and directs the Mayor to execute same.
BE IT FURTHER RESOLVED that HdL is authorized to examine State Sales, Use, and
Transactions Tax records, in accordance with California Revenue and Taxation Code section 7056,
and meets the conditions set forth in subsection 7056(b)(1).
\[SIGNATURES ON THE FOLLOWING PAGE\]
Resolution No. 2023-145
Page No. 3
Presented by Approved as to form by
Sarah Schoen Jill D.S. Maland
Director of Finance/Treasurer Lounsbery Ferguson Altona & Peak
Acting City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 19th day of September 2023 by the following vote:
AYES: Councilmembers: Cardenas, Chavez, Gonzalez, Preciado, and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
John McCann, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2023-145 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 19th day of September 2023.
Executed this 19th day of September 2023.
Kerry K. Bigelow, MMC, City Clerk