Title
Resolution Providing Outside Counsel Access to Tax Records to Assist in Providing Litigation Support
End
FileID
File ID: 2026-00584
End
Location
Location: Citywide
End
Recommendation
Recommendation: Adopt a Resolution providing Jarvis Fay LLC access to confidential tax information in the possession of the City of Sacramento and limiting the ability of Jarvis Fay LLC to disclose or use such information.
End
Contact
Contact: Angel Solis, Senior Deputy City Attorney, (916) 808-5346, asolis@cityofsacramento.org; Brett Witter, Assistant City Attorney, (916) 808-5346, bwitter@cityofsacramento.org; City Attorney’s Office; Peter Coletto, Director, (916) 808-5416, pcoletto@cityofsacramento.org, Department of Finance
End
Presenter
Presenter: None
End
Attachments
Attachments:
1-Description/Analysis
2-Resolution
End
Description/Analysis
IssueDetail
Issue Detail: The City of Sacramento has retained Jarvis Fay LLC to investigate specific sales tax issues arising from a contract between Hunt & Sons and the City of Aliso Viejo. Specifically, whether Hunt & Sons has been directing sales tax revenue to Aliso Viejo that is properly paid to the City of Sacramento. Jarvis Fay has also been retained to represent the City in any administrative proceedings with the State of California and/or in civil litigation, as necessary, to assert the City’s interests in the sales taxes at issue in the Hunt & Sons/Aliso Viejo contract.
In order to effectively represent the City in this investigation, administrative proceedings, and potential litigation, Jarvis Fay requires certain confidential tax information in the possession of the City of Sacramento. Before disclosing that information, the California Revenue and Taxation Code (Section 7056) requires that the City Council approve a resolution authorizing the disclosure and ensuring that Jarvis Fay will use the information only for those purposes relevant to their retention.
End
PolicyConsiderations
Policy Considerations: Approval of this resolution by the City Council is necessary to ensure the fair and appropriate disbursement of sales taxes.
End
EconomicImpacts
Economic Impacts: None.
End
EnvironmentalConsiderations
Environmental Considerations: The report contains administrative activities that will not have a significant effect on the environment and that do not constitute a “project” as defined by the California Environmental Quality Act (CEQA) Guidelines Sections 15061(b)(3) and 15378(b)(2).
End
Sustainability
Sustainability: Not applicable.
End
Commission/Committee Action
Commission/Committee Action: Not applicable.
End
RationaleforRecommendation
Rationale for Recommendation: Adoption of this resolution will allow outside counsel to investigate whether the City of Aliso Viejo is improperly receiving sales taxes that should be directed to the City of Sacramento, and if so, to take affirmative action to ensure that the sales taxes are appropriately directed in the future.
End
FinancialConsiderations
Financial Considerations: Not applicable.
End
LocalBusinessEnterprise
Local Business Enterprise (LBE): Not applicable.
End