SR-200-004 (6)
FD:RB:DC/g:\finance\treas\share\hdlstaxsboe
Council Meeting: October 22, 2002 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Resolution Amending Resolution No. 9639 (CCS) Regarding Contract with
Hinterleiter, de Llamas & Associates to Conform to State Guidelines
Introduction
This report recommends that the City Council amend Resolution No. 9639 (CCS)
regarding the City’s contract with Hinterleiter, de Llamas & Associates (HdL) to conform
with the State Revenue and Taxation Code and guidelines established by the State
Board of Equalization.
Background
On February 13, 2001, the City Council authorized the City Manager to negotiate and
execute a contract with The HdL Companies (HdL) to provide sales tax auditing and
information services for the City. On March 27, 2002, as required by Section 7056 of
the State Revenue and Taxation Code, the Council adopted Resolution No. 9639
designating parties permitted to examine SBOE records for the purposes of
ascertaining whether sales and use taxes are being properly allocated to the City.
Discussion
The State Board of Equalization has informed the City that certain minor revisions to
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Resolution No. 9639 are required to meet the technical language requirements of
Section 7056 of the State Revenue and Taxation Code. Resolution No. 9639 currently
prohibits HdL from performing consulting services for any retailer in Santa Monica
during the term of its contract with the City. The State Revenue and Taxation Code
prohibits the contractor from performing consulting services for any retailer during the
term of the contract. Also, State law requires that the resolution state that the City has
an existing contract with HdL. In addition, there are other minor wording changes.
Adoption of the amendment with the minor technical changes will bring the City into
conformance with the State code and allow HdL to perform its sales tax auditing and
information services for the City. A copy of the amendment highlighting the proposed
changes is attached.
Budget/Financial Impact
Adoption of the attached resolution will have no budget or financial impact on the City.
Recommendation
This report recommends that the City Council amend Resolution No. 9639 (CCS)
regarding the City’s contract with Hinterleiter, de Llamas & Associates to conform with
the State Revenue and Taxation Code and to guidelines established by the State
Board of Equalization.
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Prepared by: Mike Dennis, Director of Finance
Ralph Bursey, City Treasurer/Revenue Manager
David Carr, Assistant City Treasurer
Attachments: Resolution
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