HomeMy WebLinkAboutresolution.council.100-24RESOLUTION NO. 100
(Series of 2024)
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 REVENUE FROM THE CITY OF ASPEN'S TOBACCO &
NICOTIlVE 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;
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, Aspen Family Connections has conducted work in the community which
has resulted in beneficial change as measured by the Health Kids Colorado surveys on several
key metrics; and
WHEREAS, Aspen Family Connections presented to Aspen City Council a plan to
build on those successes from 2021 to the present by evolving current programs to address
changing community needs and also pursuing new and additional funding sources; and
WHEREAS, the Aspen School District, in conjunction with Aspen Family
Connections has prepared a plan to continue 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 27th day of August, 2024.
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 th City of Aspen,
Colorado, at a meeting held on the 27th day of Augpgt, 2P24.
t
Nicole Henning, City Cl
INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF
ASPEN AND THE ASPEN SCHOOL DISTRICT REGARDING THE USE OF
CITY OF ASPEN'S TOBACCO AND NICOTINE PRODUCT TAX
REVENUE
This Agreement is entered into effective as of t h e 11th d a y of
_September_______, 2024 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 ref erred 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 witha city for the performance of any service, activity, orundertaking 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
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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 toResolution #94,Seriesof 2019,theCityof 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, thisAgreement isintended toformalize thearrangement between the
City and the School District for the payment and utilization of the funds derived from
thesales tax approved bytheelectorson November 7,2017andreaffirmed bytheelectors
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, itisagreed by and between theCity and theSchool
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 for any one year unless otherwise modified in writing by the parties.
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SECTION 2. TERM
This Agreement shall commence effective as of September 1, 2024 and terminate
three (3) years thereafter on September 1, 2027, following the August 2027 monthly
payment, unless further extended by the parties.
SECTION 3. PAYMENT OF TAX
a.Commencing on September 1, 2024, the City, on a monthly basis, shall pay to the
School District the amount of $20,833.33 less the Administrative Fee set forth in Section
3.b., below. The monies paid 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 to the School District only revenue
actually collected but not to exceed $250,000 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 theother,and their respective officers,employees, andagents, harmless fromclaims
related to the receipt or expenditure of the Sales Taxes that are thesubject 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 bedelivered 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 theCity:
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: 427 Rio
Grande Place, Aspen, Colorado 81611.
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If to the School District:
Notices and documents should be hand delivered to Tharyn Mulberry,
Superintendent at: 0235 High School Road, Aspen, CO 81611.
I
With a copy mailed by US Mail to the Richard E. Bump, attorney for the School
District at: Caplan and Earnest, LLC, 3107 Iris Ave, 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 oraudits, or that the SchoolDistrict isdeviating from theuseof theSalesTax
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 irregularitiesor 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 beselected
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 aseparate, distinct, and independent provision,
and such holding shall not affect thevalidity of the remaining portions of this Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be
infull force and effect the day and year first above written.
APPROVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, this ______
day of ___________, 2024.
________________________________
Torre, Mayor, City of Aspen
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ATTEST:
________________________________
Nicole Henning, City Clerk
APPROVED BY THE BOARD OF EDUCATION OFTHE ASPEN SCHOOL
DISTRICT NO.1 (RE), PITKIN COUNTY, COLORADO, this _____ day ___________,
2024.
______________________________
Christa Gieszl, President
Board of Education
ATTEST:
______________________________
Suzy Zimet, Secretary
Board of Education
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