HomeMy WebLinkAbout09669ORDINANCE NO. 9669
AN ORDINANCE APPROVING A FIRST AMENDMENT TO
AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE
CITY OF PUEBLO, A COLORADO MUNICIPAL
CORPORATION AND PUEBLO COUNTY, COLORADO, A
POLITICAL SUBDIVISION OF THE STATE OF COLORADO
RELATING TO THE SHARING OF TAX REVENUE
GENERATED BY PUEBLO COUNTY’S SPECIAL TAX ON
THE SALE OF RETAIL MARIJUANA AND RETAIL
MARIJUANA PRODUCTS IN THE CITY OF PUEBLO
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The First Amendment to an Intergovernmental Agreement between the City of
Pueblo, a Colorado municipal corporation and Pueblo County, Colorado, a political
subdivision of the State of Colorado relating to the sharing of tax revenue generated by
Pueblo County’s special tax on the sale of retail marijuana and retail marijuana products
in the City of Pueblo (“Amendment”) a copy of which is attached hereto, having been
approved as to form by the City Attorney, is hereby approved. The Mayor is authorized to
execute and deliver the Amendment in the name of the City and the City Clerk is directed
to affix the seal of the City thereto and attest same.
SECTION 2.
The officers and staff of the City are directed and authorized to perform any and
all acts consistent with the intent of this Ordinance and the attached Amendment which are
necessary or desirable to implement the transactions described therein.
SECTION 3.
This Ordinance shall become effective on the date of final action by the Mayor and
City Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on February 10, 2020.
Final adoption of Ordinance by City Council on February 24, 2020 .
President of City Council
Action by the Mayor:
☒ Approved on February 26, 2020 .
☐ Disapproved on based on the following objections:
Mayor
Action by City Council After Disapproval by the Mayor:
☐ Council did not act to override the Mayor's veto.
☐ Ordinance re-adopted on a vote of , on
☐ Council action on __________________failed to override the Mayor’s veto.
President of City Council
ATTEST
City C
City Clerk’s Office Item # R-7
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: February 10, 2020
TO: President Dennis E. Flores and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Brenda Armijo, City Clerk
FROM: Daniel C. Kogovsek, City Attorney
SUBJECT: AN ORDINANCE APPROVING A FIRST AMENDMENT TO AN
INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF PUEBLO, A
COLORADO MUNICIPAL CORPORATION AND PUEBLO COUNTY,
COLORADO, A POLITICAL SUBDIVISION OF THE STATE OF COLORADO
RELATING TO THE SHARING OF TAX REVENUE GENERATED BY PUEBLO
COUNTY’S SPECIAL TAX ON THE SALE OF RETAIL MARIJUANA AND
RETAIL MARIJUANA PRODUCTS IN THE CITY OF PUEBLO
SUMMARY:
Attached is an Ordinance which approves a First Amendment to an Intergovernmental
Agreement (“Amendment”) between the City of Pueblo and Pueblo County pertaining to the
sharing of revenue from Pueblo County’s special tax on the sale of retail marijuana and retail
marijuana products.
PREVIOUS COUNCIL ACTION:
The voters of Pueblo County approved a ballot issue at the 2013 coordinated General Election
which approved a three and one-half percent (3.5%) special tax on the sale of retail marijuana
and retail marijuana products in all portions of Pueblo County.
On March 27, 2017, by Ordinance No. 9110, the City Council approved an Intergovernmental
Agreement dated March 27, 2017 (the “Agreement”) to share revenue collected by the County
through its special retail marijuana sales tax. The Agreement provided that the City would receive
85% of all revenues collected within the City limits from the County’s special marijuana sales tax.
The Agreement stipulated that the County, as a reimbursement of its administrative costs, would
retain 15% of all revenues from the special sales tax collected within the boundaries of the City.
BACKGROUND:
Until January 1, 2020, the rate of the special retail marijuana sales tax was set at three and one-
half percent (3.5%) of the gross receipts for the sale of retail marijuana and retail marijuana
products. On November 5, 2019, the voters of Pueblo County approved a ballot measure to
increase the rate of the special retail marijuana sales tax from three and one-half percent (3.5%)
to six percent (6.0%). The intent of the ballot measure which raised the special sales tax rate from
3.5% to 6.0% was to use the increase in revenue to fund public safety improvements. The needs
and conditions of the Pueblo County Detention Center affect residents of the City as well as
residents of unincorporated portions of Pueblo County. After years of use and frequent
overcrowding, the Pueblo County Detention Center is in serious need of repair or even
replacement. Under the terms of the Amendment, new revenue from the increase in the special
marijuana retail sales tax will be used to fund improvements or alternatives to the existing Pueblo
County Detention Center.
FINANCIAL IMPLICATIONS:
With respect to the revenue sharing formula, the City’s financial situation remains unchanged.
The City shall continue to receive 85% of all revenues collected within the City limits from the 3.5%
special marijuana sales tax. Revenues collected in the City in excess of the 3.5% rate will be
retained by the County to fund public safety improvements, including the Pueblo County
Detention Center.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
Through a TABOR election, the City could request voter approval of a City special tax on the sale
of retail marijuana and retail marijuana products within City limits.
RECOMMENDATION:
Approval of the Ordinance. The County is under no obligation to participate in revenue sharing
and could cancel the March 27, 2017 Agreement effective 12-31-20.
Attachments: Proposed Ordinance and proposed Amendment to IGA
FIRST AMENDMENT TO INTERGOVERNMENTAL AGREEMENT
THIS AMENDMENT is entered into as of the Effective Date stated below and between
the City of Pueblo, a Municipal Corporation, ("City") and Pueblo County, a political subdivision
of the state of Colorado, ("County") (collectively, the "Parties").
WITNESSED:
WHEREAS, the Parties entered into an intergovernmental agreement dated March 27,
2017 (the "Agreement") to share revenue collected by the County through its special retail
marijuana sales tax approved by Pueblo County Resolution No. 13-186 (the "Tax"); and
WHEREAS, the Agreement provides that the County shall provide to the City all revenue
from the Tax collected within the City's boundaries, less a predetermined administrative fee; and
WHEREAS, until January 1, 2020, the rate of the Tax is set at three and one-half percent
of the gross receipts for the sale of retail marijuana and retail marijuana products; and
WHEREAS,on November 5,2019, the voters of Pueblo County approved a ballot measure
to increase the rate of the Tax from three and one-half percent to six percent; and
WHEREAS,the ballot measure was referred by Pueblo County Resolution No. 19-246 (as
amended by Resolution No. 19-259), which provides for an initial intent of using the increase in
revenue to fund public safety improvements; and
WHEREAS, the needs and conditions of the Pueblo County Detention Center affect
residents of the City as well as residents of unincorporated portions of Pueblo County; and
WHEREAS, after years of use and frequent overcrowding, the Pueblo County Detention
Center is in serious need of repair or even replacement; and
WHEREAS,the Parties agree that new revenue from the increase in the Tax should be used
to fund improvements or alternatives to the existing Pueblo County Detention Center,and so agree
to allow new revenue to the City's share to be committed to public safety improvements regarding
the Pueblo County Detention Center.
NOW, THEREFORE, IN CONSIDERATION of the mutual covenants and promises
contained herein, the sufficiency of which is acknowledged, the Parties agree to amend the
Agreement as follows:
Part 1. Section II, subsection A of the Agreement is amended to read as follows (with underlined
language representing additions and stricken language representing deletions):
A. Except as otherwise provided in this Agreement, the County agrees that the City shall
continue to be entitled to three and one-half percent(3.5%) or 58.33%(3.5%as fraction of 6%
total) of all revenues from the Tax subject to this Agreement, as provided in subsection A of
section I above, ("City's Share"), less the administrative fee retained under section III of this
Agreement. The remaining 41.67% of the revenues from the Tax subject to this Agreement
("Public Safety Share") shall be retained by the County and used to fund the law enforcement-
or detention-related needs of the Pueblo County Sheriffs Office or for any other legitimate
public safety purpose.
Part 2. Section III of the Agreement amended to read as follows (with underlined language
representing additions and stricken language representing deletions):
III. COSTS: The Parties agree that the County, as reimbursement of its administrative
costs, shall retain fifteen percent(15%) of the City's Share.
Part 3. Except as otherwise provided in this First Amendment, the terms of the Agreement shall
remain unchanged and in full force and effect.
IN WITNESS WHEREOF, the Parties have entered into this First Amendment to the
Agreement effective as of the later of the two dates signed below.
ATTEST: PUEBLO COUNTY, COLORADO
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4/1/11 By. By: 0(4;12
Clerk to the Board Chair, Board of ounty Commissioners
Date: //c28/Q4,70
ATTEST: CITY OF PUEBLO
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B By: 7(4,464410City Clerk ( Mayor
Date: 4",2,k- 42 .0