AgdaPkt 2008-06-23 Clsd and Special

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6.2A Page 1 of 1 0 June 23, 2008 SUBJECT Authorization of Strategic Economics for Access to California State Board of Equalization Sales and Use Tax Records and Approval of Non-Disclosure Agreement ReCOMMENDATION 1. Adopt a resolution designating Strategic Economics as an authorized representative of Redwood City so as to have access to all City sales and use tax records of the California State Board of Equalization; 2. Approve Non-Disclosure Agreement with Strategic Economics BACKGROUND The City is currently preparing a New General Plan. As part of the original scope of work, the Master General Plan Consultant, Hogle-Ireland, hired a sub-consultant, Strategic Economics, to perform an economic analysis of the City. Specifically the firm will use parcel based property and sales tax data to calculate the current fiscal performance of all non-residential areas within the city. This baseline information will then be used to identify areas of Redwood City that are likely to experience significant changes overtime and what the resulting economic impacts might be depending on various land use scenarios. This analysis will be very important in understanding and determining the right land use mix within the City. California Revenue and Tax Code Section 7056 requires that before a consultant, like Strategic Economics, is permitted to review any confidential sales and use tax records, the City must adopt a resolution to be submitted to the State Board of Equalization which requests authority to allow the consultant to obtain and review sales tax data. Concurrently, it requires that Strategic Economics will need to enter into a non-disclosure agreement with the City stating that the firm will not disclose confidential information contained in, or derived from, sales and use tax records to anyone other than an officer or employee of the City who is authorized by Council resolution or designated in writing by the City Manager to have access to such information. In addition, Section 7056 prohibits Strategic Economics from performing consulting services for any retailer during the term of its agreement with the City, and prohibits the consultant from retaining the information contained in, or derived from, those sales and use tax records reviewed after the agreement with the City has expired in several months. Furthermore, Strategic Economics must agree that the information obtained shall be used only for purposes related to collection of local sales and use taxes or for other governmental functions of the City as set forth by resolution. Strategic Economics will only need the data for approximately two months and cannot retain the data after their contract with the City has expired.