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HomeMy WebLinkAbout06 - General Plan Update Fiscal & Economic StudiesCITY OF NEWPORT BEACH d�PRr COMMUNITY AND ECONOMIC Hearing Date: April 09, 2002 DEVELOPMENT 6 PLANNING DEPARTMENT Agenda Item No.: 3300 NEWPORT BOULEVARD Staff Person: George NEWPORT BEACH, CA 92658 g (949) 644 -3207 (949) 644 -3200; FAX (949) 644 -3229 REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: General Plan Update Fiscal & Economic Studies: Authorization of Examination of Sales and Use Tax Records. SUMMARY: In conjunction with the approved contract with ADE, Inc. for the fiscal and economic studies for the General Plan Update, staff recommends approval of a resolution authorizing the examination by ADE of sales and use tax records, per Section 7056 of the California Revenue and Taxation Code. SUGGESTED ACTION: Approve Resolution authorizing examination by ADE of sales and use tax records for use in preparation of fiscal and economic studies related to the update of the City's General Plan. Discussion At the March 12'", 2002 meeting, the Council approved a Professional Services Agreement with Applied Development Economics, Inc. (ADE) to undertake the fiscal and economic studies related to the update of the City's General Plan. As part of the research required by these studies, the consultant has requested access to various sales and use tax data, which per Section 7056 of the California Revenue and Taxation Code —is deemed confidential and may only be released with prior City Council authorization. Specifically, ADE has requested access to detailed sales tax records by State Board of Equalization (SBE) code, with major businesses listed, for the city as a whole and the sub -areas defined in the standard MRC (MBIA) reports. Additionally, the consultant has requested access to Transient Occupancy Tax (TOT) records, in order to research the economic impact of vacation rental property, and hotel/motel use. Revenue Manager Everroad will be working with the consultant and other staff to coordinate this aspect of the project. There are currently two firms (Municipal Revenue Advisors and MBIA MuniServices Company) that provide ongoing audit services to the City, and they are authorized by resolution to access the confidential records. Staff recommends approval of the attached resolution authorizing the examinationbyADE of sales and use tax records, per Section 7056 of the California Revenue and Taxation Code. Submittedby: Prepared by: SHARON Z. WOOD GEORGE A. BERGER, AICP Assistant City Manager Senior Planner 4 � �u V Attachment: ResolutionNo.2002- 11 RESOLUTION NO. 2002- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH AUTHORIZING EXAMINATION OF SALES AND USE TAX RECORDS. WHEREAS, pursuant to Ordinance _, the City of Newport Beach entered into a contract with the State Board of Equalization to perform all functions incident to the administration and collection of local sales and use taxes; and WHEREAS, the City Council of the City of Newport Beach deems it desirable and necessary for authorized representatives of the City to examine confidential sales and use tax records of the State Board of Equalization pertaining to sales and use taxes collected by the Board for the City pursuant to that contract; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Board records, and establishes criminal penalties for the unlawful disclosure of information contained in, or derived from, the sales and use tax records of the Board. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH HEREBY RESOLVES AS FOLLOWS: Section 1. That the City Manager, or other officer or employee of the City designated in writing by the City Manager to the State Board of Equalization (hereafter referred to as Board), is hereby appointed to represent the City with authority to examine sales and use tax records of the Board pertaining to sales and use taxes collected for the City by the Board pursuant to the contract between the City and the Board. The information obtained by examination of Board records shall be used only for purposes related to the collection of City sales and use Taxes by the Board pursuant to that contract. Resolution No. 02 -_ Examination of Sales and Use Tax Records 1E Section 2. That the firm of Applied Development Economics (ADE), Inc. is hereby appointed to represent the City with authority to examine those sales and use tax records of the Board, for purposes related to the following governmental functions of the City: (a) Preparation of a retail leakage analysis for the City General Plan Update; and (b) Preparation of a fiscal impact model for use in the City's General Plan Update. The information obtained by examination of Board records shall be used only for those governmental functions of the City listed above. Section 3. That ADE, Inc. is hereby designated to examine the sales and use tax records of the Board pertaining to sales and use taxes colleted for the City by the Board. 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 and use tax records; (b) is required by that contract to disclose information contained in, or derived from, those sales and use tax records only to the officer or employee authorized under Section 1 or 2 of this resolution to examine the information; (c) is prohibited by that contract from performing consulting services for a seller during the term of that contract; and (d) is prohibited by that contract from retaining the information contained in, or derived from those sales and use tax records, after that contract is expired. The information obtained by examination of Board records shall be only used for purposes relating to the collection of City sales and use taxes by the Board pursuant to the Resolution No. 02 -_ Examination of Sales and Use Tax Records contract between the City and the Board and for purposes relating to the governmental functions of the City listed in Section 2 of this resolution. This resolution shall take effect immediately upon adoption. Passed and adopted by the City Council of the City of Newport Beach at a regular meeting held on the day of 2002. IUTMTGI ATTEST: CITY CLERK Resolution No. 2002 - Examination of Sales and Use Tax Records Resolution No. 02- Examination of Sales and Use Tax Records M