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HomeMy WebLinkAboutresolution.council.099-20 RESOLUTION NO.99 (Series of 2020) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF ASPEN AND THE ASPEN SCHOOL DISTRICT TO ALLOCATE A PORTION OF THE SALES TAX REVENUES FROM THE CITY OF ASPEN'S TOBACCO TAX TO THE ASPEN SCHOOL DISTRICT AND ASPEN FAMILY CONNECTIONS. WHEREAS,beginning in 2018,the City of Aspen has collected a 40%sales tax on non-cigarette tobacco and nicotine products and a$3 (+.10/year)per pack tax on cigarettes. During its first year(2018),the City collected$436,622 from this tax; and WHEREAS, ballot language to initiate the tax in 2017 set parameters that the money could only be spent on financing health and human services,tobacco related health issues, and addiction and substance abuse education and mitigation; and WHEREAS, the Aspen School District, in conjunction with Aspen Family Connections has prepared a plan to address the key areas identified in the ballot language throughout the Aspen community in a way that focuses on youth and prevention in a wholistic manner; and WHEREAS, the Intergovernmental Agreement submitted herewith will allow the Aspen School District, in conjunction with Aspen Family Connections, to execute the proposed plans consistent with the ballot language adopted by the electorate. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,THAT: The City Council of the City of Aspen hereby approves Intergovernmental Agreement between the City of Aspen and the Aspen School District attached hereto, and incorporated herein by this reference,to allocate a portion of the sales tax revenues from the City of Aspen's tobacco tax to the Aspen School District and Aspen Family Connections, and the Mayor is hereby authorized to execute such Intergovernmental Agreement. INTRODUCED,READ AND ADOPTED by the City Council of the City of Aspen on the 10th day of November 2020. 7M Torre,Mayor I,Nicole Henning, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held on the day hereinabove stated. Nicole Henning, City k INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF ASPEN AND THE ASPEN SCHOOL DISTRICT REGARDING THE USE OF CITY OF ASPEN'S TOBACCO AND NICOTINE PRODUCT SALES TAX REVENUE This Agreement is entered into effective as of the J-"day of 2021, by and between the City of Aspen, Colorado, a body corporate and politic organized under and existing by virtue of the laws of the State of Colorado, (hereinafter referred to as "City,") and the Aspen School District No. 1 (RE), Pitkin County, Colorado, a political subdivision of the State of Colorado organized under and existing by virtue of the laws of the State of Colorado, (hereinafter referred to as "School District.") WITNESSETH WHEREAS, Article XIV, Section 18(2)(a) of the Colorado Constitution supports the cooperation or contracting by or among any of its political subdivisions to provide any function, service or facility lawfully authorized to each of the cooperating or contracting units, including without limitation, the sharing of costs, the imposition of taxes, or the incurring of debt; and WHEREAS, C.R.S. Sections 29-1-201 and 203 permit and encourage government entities to make the most efficient and effective use of their powers and responsibilities by cooperating and contracting with other governmental entities to provide any function, service, or facility lawfully authorized to each, including the sharing of costs; and WHEREAS, C.R.S. Section 29-1-202(2) defines political subdivisions to include cities and school districts; and WHEREAS, C.R.S. Section 22-32-122 grants to school districts the power to contract with a city for the performance of any service, activity, or undertaking which any school district may be authorized by law to perform or undertake; and WHEREAS, Article XI, Section 7 of the Colorado Constitution provides that no provision of said Constitution shall be construed to prevent the State or any political subdivision from giving direct or indirect financial support to any political subdivision as may be authorized by general statutes; and WHEREAS, Article XII of the Charter of the City authorizes the City Council to levy and impose taxes and to spend general funds for municipal purposes, provided that any new sales tax or increase in the rate of any existing sales tax has been approved by the qualified electors of the City at a regular or special election; and WHEREAS, it is within the legislative discretion of the City Council to determine that providing financial assistance to the School District is a municipal or public purpose; and WHEREAS, pursuant to Resolution#122, Series of 2017, the City of Aspen placed before its voters a question authorizing the imposition and collection of taxes on the sale of tobacco and nicotine products for the "specific purposes of financing health and human services, tobacco related health issues, and addiction and substance abuse education and mitigation', ("Sales Tax"); and WHEREAS, pursuant to Resolution#94, Series of 2019, the City of Aspen placed before its voters a question authorizing the retention of the taxes collected in excess of the original estimates provided in Resolution#122, Series of 2017. Such proposition for the retention of such funds was adopted by the voters on November 5, 2019; and WHEREAS, the existence of quality educational programs benefits not only the school children who live here, but also improves the quality of life in Aspen; and WHEREAS, the City Council has made a legislative determination, as ratified by the citizens in the November 7, 2017 election, that imposing a tax and distributing that tax for the purposes set forth in Resolution#122, Series of 2017, is a valid municipal purpose; and WHEREAS, the City Council has also determined and the voters have approved the collection of such sales tax by the City and that it is appropriate and desirable to disburse a portion of the funds generated by the sales tax for the purposes, as described in the plans attached hereto as Exhibit"A"; and WHEREAS, this Agreement is intended to formalize the arrangement between the City and the School District for the payment and utilization of the funds derived from the sales tax approved by the electors on November 7, 2017 and reaffirmed by the electors on November 5, 2019. NOW, THEREFORE, in consideration of the mutual promises set forth herein, and pursuant to the authority contained in Article XIV, Section 18(2)(a) of the Constitution of the State of Colorado, it is agreed by and between the City and the School District as follows: SECTION 1. USE OF TAX INCREASE PROCEEDS The City shall pay to the School District funds from the Sales Tax to be used by the School District to cover costs of the programs, to be coordinated and delivered by its family resource center, Aspen Family Connections, outlined in Exhibit"A". The funds paid to the School District from the Sales Taxes collected for this program shall not exceed$250,000.00 for any one year unless otherwise modified in writing by the parties. SECTION 2. TERM This Agreement shall commence effective as of September 1, 2021 and terminate three (3)years thereafter on September 1, 2024, following the August 2024 monthly payment, unless further extended by the parties. 2 SECTION 3. PAYMENT OF TAX a. Commencing on September 1, 2021, the City, on a monthly basis, shall pay over to the School District the amount of$20,833.00 less the Administrative Fee set forth in Section 3.b., below. The monies paid over to the School District shall be deposited in an interest-bearing account or accounts to be maintained by the School District for use in the programs outlined in Exhibit "A". The City shall be obligated to pay over to the School District only revenue actually collected but not to exceed$250,000.00 in any one year. The City shall make reasonable efforts to collect all outstanding sales taxes owing to the City. b. The City will deduct from the revenue collected and to be disbursed to the School District an Administrative Fee ("Fee") equal to two percent (2.0%) of the payment. The Fee is intended to include, without limitation, all ongoing costs related to revenue collection efforts, a share of billing and mailing costs and a share of accounting, collection costs,vendors fee and additional auditing efforts. SECTION 4. INDEMNIFICATION To the extent permitted by law, the City and the School District shall each indemnify and hold the other, and their respective officers, employees, and agents, harmless from claims related to the receipt or expenditure of the Sales Taxes that are the subject of this Agreement. SECTION 5. AMENDMENT This Agreement may be amended only by the mutual agreement of the parties and shall be evidenced by a written instrument authorized and executed with the same formality as this Agreement. SECTON 6. NOTICE If notice, including any documents, is required to be delivered to the City or the Fund by the other party, notice, or delivery of any documents, shall be deemed completed upon delivery of the notice or document to the following: If to the City: Copies to the City Manager, the City Attorney, and the City Finance Director by hand delivering the notice and/or document to their respective offices located at: 130 So. Galena, Aspen, Colorado 81611 3 If to the School District: Notices and documents should be hand delivered to Dr. David Baugh, Superintendent at: 0235 High School Road,Aspen, CO 81611 With a copy mailed by US Mail to the attorneys for the School District: Richard E. Bump Caplan and Earnest LLC 3107 Iris Avenue, Suite 100 Boulder, CO 80301 SECTION 7. DISPUTE RESOLUTION If the City, by and through the City Council, and after receiving reports from the City Manager, City Attorney, or Finance Director, concludes in its sole discretion that there are significant irregularities in any financial reporting, including financial statements or audits, or that the School District is deviating from the use of the Sales Tax proceeds as approved pursuant to this Agreement, the City may, after Notice to the School District with a written statement of the alleged deviation and all supporting documentation, and the expiration of ten (10)days during which time the School District has not corrected such irregularity or deviation, unilaterally withhold payments to the School District of the Sales Tax revenue collected until such time as the City and the School District have resolved any issues as to any such irregularities or deviations. Such withholding shall be in an amount reasonably necessary to correct such irregularity or deviation. In the event the City notifies the School District of any perceived irregularities or deviations, the parties agree to submit any and all disagreements as to the operation of the School District to Mediation. A qualified mediator shall be selected jointly by the Parties. In the event of such mediation, all costs of the mediation shall be paid from the administrative fee retained by the City and described in paragraph 3(b), above. SECTION 8. SEVERABILITY If any section, paragraph, subparagraph, phrase, sentence, or portion of this Agreement is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be in full force and effect the day and year first above written. PROVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, this!j�T45C of 2021. Torre, Mayor, City of Aspen 4 ATTEST: ')u'&&.— t' 64 Nicole Henning, City Clerk APPROVED BY THE BOARD OF EDUCATION OF THE ASPEN SCHOOL DISTRICT NO. 1 (RE), PITKIN COUNTY, COLORADO, this 31 st day of August , 2021. Suzy Zimet, President Board of Education ATTEST: �'�Worre �er� Dwayne Romero, Secretary Board of Education 4851-9770-4392,v.2 5