City Council

4K. RESOLUTIONS AUTHORIZING AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND\nFEE ADMINISTRATION (CDTFA) FOR IMPLEMENTATION OF A LOCAL TRANSACTION AND USE TAX AND\nAUTHORIZING THE EXAMINATION OF TRANSACTIONS (SALES) AND USE TAX RECORDS, AND\nACTIONS RELATED THERETO AND APPROVAL OF AN AGREEMENT WITH HDL FOR SALES, USE, AND\nTRANSACTION TAX AUDIT AND INFORMATION SERVICES RELATED TO MEASURE R\nThe City Council will consider taking actions needed to implement the local transactions and use\ntax enacted by Measure R, which was approved by voters at the general election held on\nNovember 5, 2024.\n— Recommended Action: 1) Adopt the Resolution authorizing the City Manager to execute\nagreements with the California Department of Tax and Fee Administration (CDTFA) for\nimplementation of a local transactions and use tax; 2) Adopt the Resolution authorizing the\nexamination of the sales, use, and transactions tax records for the City; 3) Authorize the City\nManager to execute the agreement with Hinderliter de Llamas and Associates (HdL) for sales,\nuse, and transactions tax audit and information services and make any non-monetary changes;\nand, 4) Appropriate $178,600 of Measure R revenue for the preparatory costs incurred by the\nCDTFA necessary to administer the City’s transactions and use tax and the contract costs for\nHdL sales, use, and transactions tax audit and information services.