City Council Agenda Report
Meeting Date: February 3, 2026
From: Alice Hui, Director of Finance/City Treasurer
Department: Finance
Submitted by: Angela Melgar, Finance Manager
Subject
Access to Confidential Sales, Use and Transactions Tax Records held by The California Department of Tax and Fee Administration
Recommendation
Adopt Resolution No. 2026-002 authorizing the examination of sales, use and transactions tax records by designated City employees and Hinderliter de Llamas and Associates (HdL) on behalf of the City, and repealing Resolution No. 2020-24.
Background
The California Department of Tax and Fee Administration (CDTFA) administers the collection and reporting of sales, use, and transactions and use taxes on behalf of cities. In order for the City’s consultant to access confidential tax information necessary to perform auditing, revenue analysis, and compliance review services, the City Council must adopt a resolution formally authorizing the consultant. State law strictly limits access to confidential taxpayer information held by the CDTFA. However, California Revenue and Taxation Code section 7056 allows cities to designate consultants to review such information, provided the City Council adopts a resolution authorizing access.
On July 7, 2020, Council adopted Resolution No. 2020-24 authorizing examination of sales, use and transactions tax records to designated City employees and to the consultant at the time, Avenu MuniServices, LLC (MuniServices). The contract with MuniServices expired on December 1, 2025.
Pursuant to the Vernon Municipal Code Section 3.32.110 (5) Contracts for supplies, equipment or services that can be purchased in cooperation with other public agencies, associations or when supplies, equipment or services can be purchased from a vendor offering the same prices, terms and conditions as in a previous award from the City or another public agency either by competitive bid or through a negotiated process. The City of Stockton currently has a contract with Hinderliter de Llamas and Associates (HdL) for the SUTA services which allows the City to piggyback for the same services and fees. The City Administrator approved an agreement with HdL, which was executed on December 1, 2025, for sales and use tax and economic analysis, forecasting services, and allocation and audit recovery services for the City’s Sales and Use Tax and Transactions Tax.
Resolution No. 2026-002 designates HdL to examine the sales, transactions and use tax records of the CDTFA pertaining to transactions and use taxes collected for the City and repeals the previous Resolution 2020-24.
Fiscal Impact
There is no fiscal impact associated with this report.
Attachments
1. Resolution No. 2026-002