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HomeMy WebLinkAboutIGA Medford School District 549CINTERGOVERNMENTAL AGREEMENT BETWEEN NIEDFORD SCHOOL DIS'PRICT 549C AND CITY OF CENTRAL POINT TO COLLECT AND REMIT CONSTRUCTION EXCISE TAX This Construction Excise Tax Intergovernmental Agreement to collect and remit Tax ("CET Collection IGA") is effective on the last date of signature below, and is by and between Medford School District ~49C, a school district organized under the laws of the state oC Oregon ("District'), and the City of Centra] Point ("City of Central Point'), collectively referred to as "Parties." RECITALS: A. ORS Chapter 190 authorizes governmental entities such as a city and a school district to enter into written agreements for the performance of any or all functions and activities that either entity has the authority to pcrfonn on its own. Q. ORS 320.170 to 320.189 authorizes school districts, as defined in ORS 330.005, to impose a Construction Excise Tax ("CET") to fund capital improvements to school facilities. C. Pursuant to ORS 320.170 to 320.189, District will adopt a resolution establishing a Construction Excise Tax ("CET") throughout its regional jurisdiction. "Che resolution will provide that a CET be collected by City of Central Point and remitted to District pursuant to an Intergovernmemal Agreement Pursuant to bRS 320.179(2), the Parties desire to agree upon certain procedures needed to collect the CGT and remit the tax to District. AGREEMENT: In consideration of the mutual covenants of District and City of Central Point, given each to the other, District and City of Central Point do hereby agree as follows: ].Information and Forms. District shall provide to City of Central Point all of the forms, information and assistance necessary for the City of Central Point [o collect the CET, District shall provide City of Central Point forms and information for CET exemptions. 2. Staffing. City of Central Point shall provide sufficient staff to calculate and collect the CE'f. District shall provide sufficient staff to implement the CGT program. 3. Facilities Plan. District has adopted or is currently in the process of developing a Tong-tenor facilities plan as required by ORS 320.183(2). District agrees not to adopt the CE"I' until such plan has been completed and adopted by resolution of District's School Qoard. 4. Collection: Start llate. City of Central Point agrees to assess and collect the CGT on behalf of District Cor those properties within District's boundaries that are under City of Central Point's jurisdiction. City of Central Point shall begin collecting the CGT within ten (10) business days of the effective date of this Intergovernmental Agreement. City of Central Point shall continue collection until the CET expires, the underlying statutory authority is repealed, or this CET Collection IGA is tcnninated by either District or City of Central Point. City of Central Point agrees to collect the CGT in conjunction with the collection of other building permit fees. 5. Collecfion: Rate Chances. In the event District increases or otherwise modifies the tax, it Consn'uctian Excise ins Collection IGA Nagc 1 of 3 shall send written notice to City of Central Point of the increase or other modification, including a copy of District's resolution adopting the change. Thereafter, City of Central Point shall collect the tax at the new rate within ten (10) business days after notice is received by City of Central Point, or upon the effective date of the changes stated in District Resolution, whichever is later. 6. Collection: MethodoloQV. The methodology for calculating the CET shall be governed by ORS 320.176 and the parties' Memorandum of Understanding attached hereto as Exhibit A. 7. Refunds. District agrees to process and issue any required refunds of CE"I'. 8. Exemptions. District shall provide City of Central Point with all forms necessary for CGT collections, exemptions, rebates, refunds, appeals and any other forms or information necessary for implementation of the CET. If a person or entity asserts that it is exempt from the CGT pursuant to ORS 320.173, and tiles a District CET Exemption Form at the time the CET would otherwise be due, City of Central Point shall grant the exemption. [t shall be District's responsibility to determine the validity of the exemption and to institute collection procedures to obtain payment of the CET, as well as any other remedy District may have under law, if the person or entity was not entitled to the exemption. Statutory exemptions to the CET are described in ORS 320.173. 9. Remittance. City of Central Point shall remit the collected CET to District. Remittance shall be quarterly by the 30th of the month following the end of each quarter. Quarters end on March 31, ,Tune 30, September 30, and December 31 of each year. City of Central Point may choose at its option to remit more frequently. ]0. CE'C Reports. Along with the CET remittance, City of Central Point shall prepare and submit to District a report that includes: I) the number of building permits issued that quarter, 2) the aggregate square footage of residential construction, 3) the aggregate square footage ofnon-residential construction, 4) the number of building permits for which the CET exemptions were given along with a list or copy of Corms for all persons that were given an exemption from paying the CET, 5) the aggregate square footage of construction for exempted construction, 6) the aggregate amount of CE"f paid, and 7) the amount of CET administrative fee retained by City of Central Point pursuant to this CET IGA. 1 ]. Failure to Pay CET. ]n accordance with ORS 320.189, the CE'T' shall be paid by the person or entity undertaking construction at the time that the permit authorizing the construction was issued. Upon a person's or entity's refusal to or failure to pay the CET when due, City of Central Point will not issue the permit In no event shall City of Central Point be liable for failure to collect the CGT when due. In the event a person or entity fails to pay the CE'f when due, Cily of Central Point shall notify District in writing within we (5) business days of such failure to pay, with information adequate for District to begin collection proceedings against that person or entity including the person or entity's name, address, phone numbers, construction project, square footage of new construction and building permit number. Upon a person or entity's refusal or failure to pay the CET, it shall 6e District's responsibility to institute collection procedures to obtain payment of the CGT as well as any other remedy District may have under law. 12. Records. City of Central Point shall make all records related to building permit activity, CET collections, CET exemptions and retained administration fees available to District, or its designated auditors, as necessary for District to audit Construction Excise "fax collections. 13. Administrative Fee. As consideration for the above described services, City of Central Point shall retain four percent (4%) of the CET collected by City of Central Point as authorized by House Bill 2014 which became effective October 1, 2009 or such other greater amount as may be authorized by future law. Prior to submitting the CET to Disttict, City of Central Point shall deduct this administrative Consh-uc~ion Excise Tnx Collection lGA Page 2 of 3 Cee directly from the CET collected, and the amounts deducted and retained shall be reported to District. The Administrative Fee is based on gross CET collected and shall not be reduced by CET refunds or any checks returned for nonsufficient funds. Any fees or charges levied against City of Central Point for such items, including but not limited to, returned checks shall be paid to City of Central Point from collected CET in addition to the above Administrative fee. 74. Amendment'1'his CET Collection IGA may be amended by mutual written agreement of the Parties. The parties further agree to negotiate in good faith to amend this Agreement should ORS 320. l70 et. seq. be amended by subsequent legislation orjudicial proceedings so that this Agreement is consistent with the most current law relating thereto. Refusal to negotiate an amendment to this Agreement is grounds for immediate termination of this CE"f Collection IGA. 15. Other Agreements. a. "Chic CET Collection IGA does not affect or alter any other agreements between District and City of Central Point; b. This CE'f Collection [GA is a ftdl and complete integration of the parties' agreement on the topics covered and expressly supersedes and replaces any prior agreements on such topics, whether written or oral. 16. Defense and Indemnification. District agrees to defend, indemnify and hold harmless City of Central Point, and its officers, agents and employees, against all claims and actions, and all damages and expenses related thereto, arising from City of Central Point's performance of this Agreement, except for those claims, actions and damages caused by the sole negligence of City of Central Point or its officers, agents and employees. The obligations of this paragraph shall include, but not be limited to: a. A challenge to City of Central Point's collection or calculation of the CET on behalf of District; b. For any and all injury to any and all persons or property caused directly or indirectly by reason of any and all acts or omissions of District in performance of this Agreement or adoption of the CET; c. Decisions of City of Central Point staff concerning the amount of any CET, including calculation of such tax and/or any exemption(s); or d Refusal or denial of any permit for failure to pay the CET. 17. Termination. In the event that Ciry of Central Point ceases to be the issuer of permits for structural improvements regulated by the state building code, this CET Collection tGA will be terminated. Either party may also terminate this agreement for any reason upon 90 days written notice to the other party. 18. Execution. This CET Collection IGA may be executed in two or more counterparts, each of which shall be considered an original, but together they shall constitute but one agreement. MEDFORD SCHOOL D/STR/LT 549C By: Dc Phil~'ong' ~ Title: Superintendent 2.o tZ'~ Date: ~'~ ~~ ~.~1~ CITY OF CENTRAL PO/NT `~ ~~~/ By: Flank Williams Title: Mayor Date: ~ -~,~~~/c~_ Cnnsh~uctinn E.rcire Tax Collection /GA Page 3 of 3 MEMORANDUM OF UNDERSTANDING (EXHIBIT "A") RELATING TO THE METHODOLOGY FOR CALCULATING THE SCHOOL DISTRICT CONSTRUCTION EXCISE TAX Purpose. This document is intended to set the methodology by which the Construction Excise Tas (CE"f) is calculated and is to be made a part of the [ntergovernmental Agreement (IGA) between Medford School District 549C ("District") and City of Central Point ("City of Central PoinP') as a,reed upon within the text of the IGA. 2. Agreement. District and City of Central Point agree to the following as the methodology to be used in determining how the CGT will be calculated consistent with ORS 320.176. Square footage of residential use shall include single-unit and nndtiple-unit dwelling units including adult foster care homes, and congregate living facilities as detined in the State Building Code where the occupants are primarily permanent in nature. The square Cootage calculations shall include the gross floor area of the building or addition, measured from the outside of the wall to the outside of the wall and shall include the square footage of finished and unfinished basements and bonus rooms and living area above a garage whether attached or detached, but shall not include the gross floor area of a garage, carport covered walkways, covered balconies, decks, porches, patio covers (screened or open), sunrooms (unless open into the residential stnicture without doors or windows), and accessory structures such as sheds, shops and similar non-habitable structures. b. Square footage of residential use shall include the gross floor area of a manufactured dwelling or an addition thereto, measured from the outside of the wall to the outside of the wall and shall include the area of cabanas and living areas above a garage whether attached or detached, but shall not include gross floor area of a garage, carport, covered walkways, covered balconies, decks, porches, patio covers (screened or open), sunrooms, (unless open into the residential structure without doors or windows), and accessory structures such as sheds, shops and similar non-habitable structures. Square footage of residential use shall not include a manufactured home that replaces an existin_ manufactured home located in a manufactured home park. c. Square footage of residential use shall include die gross floor area of a relocated residential building (unless such a building is moved to a different location on the same property) measured from the outside of the wall to the outside of the wall and shall include the square footage of both finished and unfinished basements and bonus rooms and living areas above a garage whether attached or detached, but shall not include the gross toor area of a garage; carport covered walkways, covered balconies, decks, porches, patio covers (screened or open), sunrooms (unless open into the residential stnichire without doors or windows), and accessory structures such as sheds, shops and similar non-habitable structures. d. Square footage of hotel, motel, transient and non-transient boarding houses, convents, college dormitories, fraternity, and sorority uses as defined in the State Building Code shall be considered non-residential uses. Non-residential use will include all uses not specifically identified in this document as a residential use or those that do not fall within an R-3 classification as defined by the State Building Code. Square footage ofnon-residential use shall include the gross floor area of the building or addition measured from the outside of the wall to the outside of the wall or, where no wall exists, it shall include the useable area under the horizontal projection of the roof or floor above. Where an existing residential or non-residential use is removed from a property (in part or in total) or is a change in the occupancy classification, acredit towards the CET for the new use shall be applied based on the square footage and use of the existing building. No CE"C credit shall be applied if there is no record of the square footage of the existing use. Unless authorized by District, credits are non-transferable to other properties. g. fhe CET shall be applicable to building permit applications received on or after the effective date of the IGA. Should an increase (or decrease) in the CET be legally authorized, the new rate shall be applicable to all building permit applications received on or after the effcctivc date of the increase (or decrease). Any building permit application received prior to the effcctivc date of the IGA or CET increase/decrease shall be subject to the CGT or CET increase/decrease if the fee has not been paid or the building permit issued within six months of the effective date of the 1GA or CET increase/decrease. The CET shall not apply to struchtres that do not roquirc a building permit, cell towers, wind turbines, water tanks, storage tanks, membrane structures, storage racking, retaining walls, swimming pools, private bridges, covered play structures, vault toilets, interior paint booths, or to a temporary medical hardship dwelling. The CET shall also not apply to utility classed structures that do not have a definitive or discernable method with which to calculate square footage of the stn~cture. The CE"I" shall not apply to private school improvements, public improvements as defined on ORS 279A.010, residential housing that is guaranteed to be affordable, under guidelines established by the United States Department of Housing and Urban Development, to households that earn no more than 80 percent of the median household income for the area in which the constnuction tax is imposed, for a period of at least 60 years following the date of construction of the residential housing, public or private hospital improvements, improvements to religious facilities primarily used for worship or education associated with worship, and agricultural buildings as defined in ORS 455315 (2)(a). CET fees may be refunded if they are collected in error or the CET is paid for a development that will not be coustructed. Requests for refund must be in writing and submitted to District not more than 12 months from the date tie CET was paid. It shall be the District's responsibility to issue airy requested refund. fhe applicability of the CET to any item not identified by this Exhibit shall be determined by City of Central Point. Should the District disagree with City of Central Point's decision, it will be the District's responsibility to collect the CET.