Resolution No. 2026-002RESOLUTION NO. 2026-002
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON
AUTHORIZING EXAMINATION OF SALES, USE AND TRANSACTIONS
TAX RECORDS AND REPEALING RESOLUTION NO. 2020-24
SECTION 1. Recitals.
A. Pursuant to Ordinance No. 841of the City of Vernon (City), the City entered into a
contract with the California Department of Tax and Fee Administration (Department) to
perform all functions incident to the administration and collection of the Sales and Use
Tax Ordinance.
B. Pursuant to City Ordinance No. 1269 and Section 7270 of the Revenue and
Taxation Code, the City entered into a contract with the Department to perform all
functions incident to the administration and collection of the Transactions and Use Tax
Ordinance.
C. The Department 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.
D. The City deems it desirable and necessary for authorized representatives of the
City to examine confidential sales or transactions and use tax records of the Department
pertaining to sales or transactions and use taxes collected by the Department for the City
pursuant to the respective contract.
E. Section 7056 of the Revenue and Taxation Code sets forth certain requirements
and conditions for the disclosure of California Department of Tax and Fee Administration
records, and Section 7056.5 establishes criminal penalties for the unlawful disclosure of
information contained in or derived from, the sales or transactions and use tax records of
the Department.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF VERNON AS FOLLOWS:
SECTION 2. The City Council of the City of Vernon hereby finds and determines
that the above recitals are true and correct.
SECTION 3. The City Council of the City of Vernon hereby appoints the City
Administrator, Deputy City Administrator, Finance Director, Assistant Finance Director,
Deputy City Treasurer, Financial Services Administrator, Finance Manager, Senior
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Accountant, Accountant, and any other officer or employee of the City designated in
writing by the City Administrator to the California Department of Tax and Fee
Administration (hereafter referred to as the CDTFA) to represent the City with authority
to examine sales, transactions and use tax records of the CDTFA pertaining to sales,
transactions and use taxes collected for the City by the CDTFA pursuant to the contract
between the City and the CDTFA. The information obtained by examination of CDTFA
records shall be used only for purposes related to the collection of the City’s sales,
transactions and use taxes by the CDTFA pursuant to the contract.
SECTION 4. The City Council of the City of Vernon hereby appoints the City
Administrator or any other officer or employee of the City designated in writing by the City
Administrator to the Department to represent the City with authority to examine those
sales, transactions and use tax records of the Department for purposes related to the
following governmental functions of the City:
a) City Administration
b) Revenue management and budgeting
c) Community and economic development
d) Business license tax administration
e) Transportation Planning
f) Forecasting
The information obtained by examination of Department records shall be used only for
those governmental functions of the City listed above.
SECTION 5. The City Council of the City of Vernon hereby designates Hinderliter
de Llamas and Associates (HdL) to examine the sales, transactions, and use tax records
of the Department pertaining to transactions and use taxes collected for the City by the
Department. The person or entity designated by this section meets all of the following
conditions, which are also included in the contract between the City and HdL:
a) has an existing contract with the City to examine those sales, transactions and
use tax records;
b) is required by that contract to disclose information contained in, or derived from
those sales, transactions and use tax records only to the officer(s) or employee(s)
authorized under Section 3 or Section 4 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, transactions and use tax records after that contract has
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expired.
SECTION 6. The information obtained by examination of Department records
shall be used only for purposes related to the collection of City sales, transactions and
use taxes by the Department pursuant to the contracts between the City and Department
and for those purposes relating to the governmental functions of the City listed in Section
4 of this Resolution.
SECTION 7. All resolutions or parts of resolutions adopted pursuant to subdivision
(b) of Revenue and Taxation Code section 7056, specifically Resolution No. 2020-24, not
consistent with or in conflict with this resolution are hereby repealed.
SECTION 8. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect other
provisions or applications, and to this end, the provisions of this Resolution are declared
to be severable.
SECTION 9. The City Clerk, or Deputy City Clerk, shall certify the passage and
adoption of this resolution and enter it into the book of original resolutions.
APPROVED AND ADOPTED February 3, 2026.
________________________
LETICIA LOPEZ, Mayor
ATTEST:
GENOVEVA ROCHA, City Clerk
APPROVED AS TO FORM:
ZAYNAH MOUSSA-MILWARD,
City Attorney
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CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF VERNON )
I do hereby certify that the attached is a true copy of Resolution No. 2026-002 that was
passed and adopted at the Regular Meeting held on February 3, 2026 by the following
vote:
AYES: Larios, Merlo, Rivera, Ybarra, Lopez
NOES:
ABSENT:
ABSTAIN:
__________________________
GENOVEVA ROCHA, City Clerk
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