01-28-2020 IGA Eagle County and TOA Regarding Tobacco12/27/2019 BoardDocs® Plus - https://go.boarddocs.com/co/eagleco/Board.nsf/Private?open&login#
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Agenda Item Details
Public Content
Administrative Content
Executive Content
Meeting Jan 01, 2050 - *****Signature Workflow*****
Category A. BoCC Signature
Subject IGA with Town of Avon regarding Tobacco
Access Public
Type Action (Consent)
Preferred Date Jan 07, 2020
Absolute Date Jan 07, 2020
Recommended Action Approve
Prepared By: Bryan Treu
Department: Attorney
Executive Summary: This IGA will allow the County to collect a portion of its county-wide sales tax within the
municipal boundaries of the Town of Avon so that the total amount collected in Avon is identical to the amounts
collected in unincorporated Eagle County.
Reviewing Attorney: Bryan Treu
BoCC signature?: Yes
Vendor Authorized Signer Information-
Business Name:
Signer Name: Sarah Smith Hymes & Brenda Torres
Signer Email Address: shymes@avon.org & btorres@avon.org
Signer Phone:
Items of a routine and non-controversial nature are placed on the consent agenda to allow the Board of County
Commissioners to spend its time and energy on more important items on a lengthy agenda. Any Commissioner may
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Approved as
to form:
INTERGOVERNMENTAL AGREEMENT BETWEEN EAGLE COUNTY AND THE TOWN OF
AVON CONCERNING THE COLLECTION OF SALES TAXES ON THE SALE OF
CIGARETTES
THIS INTERGOVERNMENTAL AGREEMENT (this “Agreement”) is made and entered
into this 14th of January 2020, among EAGLE COUNTY, COLORADO (the “County”), a body
corporate and politic and political subdivision of the State of Colorado (the “State”), and THE TOWN OF
AVON (the “Town”), a home rule municipality and political subdivision of the State. The County and the
Town are referred to collectively herein as “the Parties” or individually as “a Party.”
WHEREAS, pursuant to title 29, article 1, part 2, section 203, Colorado Revised Statutes, as
amended (the "Intergovernmental Relations Statute''), and Article XIV, Section 18 of the State
Constitution, governments may contract with one another to provide any function, service or facility
lawfully authorized to each of the contracting units and any such contract may provide for the joint
exercise of the function, service or facility; and
WHEREAS, tobacco and nicotine use is the leading cause of preventable death in Colorado and
in the United States generally; and
WHEREAS, after decades of effective anti-smoking campaigns and decreasing smoking rates in
the U.S., there has been a surprising upturn in youth tobacco use as well as children’s use of nicotine via
electronic smoking devices (“vaping”); and
WHEREAS, based on a comprehensive review of evidence, the Surgeon General declared the
use of e-cigarettes and vaping products by youth to be an epidemic and has called raising prices on
cigarettes “one of the most effective tobacco control interventions” because increasing the price of these
products is proven to reduce smoking and vaping, especially among teens; and
WHEREAS, studies have shown that for every 10% increase in pricing, the consumption of
cigarettes, tobacco products, and nicotine products is reduced up to 15% in those persons under 18 and up
to 7% in those 18 or older; and
WHEREAS, tobacco and nicotine products are unique among consumer goods because they kill
a significant percentage of all regular users when used as intended and the Surgeon General has projected
that without further action, 5.6 million youth who are 0-17 years old today will die prematurely from
tobacco and nicotine use; and
WHEREAS, studies have shown that approximately 96% of smokers began smoking before the
age of 21 with most beginning before the age of 16, due in part to the fact that youth brains are in a stage
of development that makes it easier to become dependent on nicotine; and
WHEREAS, in 2018, the Town passed a ballot initiative implementing an excise tax of three
dollars ($3.00) per pack of cigarettes or fifteen cents ($0.15) per cigarette sold within the municipal limits
of the Town and a 40% sales tax on the sale of all other tobacco and nicotine products; and
WHEREAS, in 2019, the Colorado General Assembly passed, and the Governor signed, House
Bill No. 19-1033 (the "Act''), which authorizes a county to levy, collect, enforce and administer a county-
wide special sales tax upon all sales of cigarettes, tobacco products, or nicotine products within the
unincorporated and incorporated areas of the county, but in the event a municipality has passed its own
special sales tax upon all sales of cigarettes, tobacco products, or nicotine products, the county may only
continue to levy, collect, enforce and administer its special sales tax within the municipal limits of that
incorporated area of the county if the county and the municipality enter into an agreement permitting the
county to do so; and
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WHEREAS, in 2019, to combat the upturn in youth tobacco use, the County passed a county-
wide special sales tax of four dollars ($4.00) on each pack of cigarettes, or twenty cents ($0.20) per
cigarette sold, and 40% on the sale of all other tobacco and nicotine products within the incorporated and
unincorporated areas of the County; and
WHEREAS, the Parties desire to agree to allow the County to levy, collect, enforce and
administer its county-wide special sales tax upon all sales of cigarettes, tobacco products, or nicotine
products within the municipal limits of the Town as more fully set forth in this Agreement.
NOW, THEREFORE, the Parties agree as follows:
Section 1. Definitions. The term “cigarettes” as used herein shall have the same meanings as set
forth in the laws, rules, and regulations of the State of Colorado including but not limited to Section 18-
13-121(5), and Section 39-28-202, C.R.S., unless the context otherwise requires.
Section 2. Implementation of the County Cigarette Sales Tax. The Parties agree, pursuant to
Section 39-28-112(3), C.R.S., that the County may levy, collect, enforce and administer a portion of its
recently enacted county-wide sales tax on the sale of cigarettes within the municipal limits of the Town.
The County shall be permitted to levy, collect, enforce and administer that portion of its tax which
exceeds the Town’s sales tax on the sale of cigarettes such that the County may collect an amount of one
dollar ($1.00) per pack or five cents ($0.05) per cigarette sold within the municipal limits of the Town.
Section 3. Administration, Powers and Duties. The Town or its authorized designee shall (a)
collect, administer, and enforce the Town and the County’s special sales tax on the sale of cigarettes, and
(b) distribute the revenue from the taxes as described in Section 4 of this Agreement. The County hereby
agrees to pay the Town a collection fee of 6% of the County’s revenues from its special sales tax on the
sale cigarettes collected within the municipal limits of the Town. In addition, the County will reimburse
the Town for any additional costs to the Town resulting from the collection, administration, and
enforcement of the County’s tax.
Section 4. Distribution of Revenues. The Town or its authorized designee shall collect and
distribute the sales tax revenues. The Town will remit to the County the County’s portion of the revenues
from the taxes less (a) the 6% collection fee and (b) additional sums for the reimbursement for upfront
costs as stated in Section 3 of this Agreement on the 45th day following the month of collection of such
revenues.
Section 5. Licensing, Regulation, Additional Fees or Taxes. This Agreement shall not limit
each Party’s authority to independently license each retailer of cigarettes, nicotine products and tobacco
products within its jurisdictional boundaries as it deems necessary and appropriate and to impose
additional taxes, fees, or fines in excess of the sales tax as may be warranted.
Section 6. Amendment of Agreement. This Agreement may be modified or amended only by a
duly executed written agreement with the express approval of the governing bodies of the Parties.
Section 7. Term and Termination of the Agreement.
a. Effective Date. The term of this Agreement shall begin upon execution.
b. Termination. The term of this Agreement shall end upon the imposition of a new sales tax
on cigarettes by the Town, which tax equals or exceeds the tax on cigarettes then imposed by the County
or upon the written request of either party.
Section 8. Execution and Performance of Agreement in Accordance with Law. Each Party
hereby represents to the other Party that it has adopted and executed this Agreement in accordance with
applicable law. Each Party shall perform their respective obligations and expend any revenues derived
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hereunder in accordance with all applicable laws, rules, and regulations, including but not limited to the
Act, this Agreement, and a voter-approved ballot measure.
Section 9. No Waiver of Immunity. All actions or omissions by any Party, including their
respective representatives, employees, agents, volunteers or officials, shall be the sole responsibility of
the respective Party. The Parties understand and agree that liability for claims for injuries to persons or
property arising out of the actions or omissions of any Party is controlled and limited by the provisions of
the Colorado Governmental Immunity Act (“Immunity Act”) title 24, article 10, Colorado Revised
Statutes, as now or hereafter amended and that the Parties do not intend to waive by any provision of this
Agreement the liability limitations or any other right, immunity or protection afforded by the Immunity
Act or as may otherwise be afforded by law.
Section 10. Dispute Resolution.
a. The Parties shall attempt to informally resolve all disputes and claims arising from or
related to this Agreement, beginning first with discussion among Town and County staff, and if not
resolved, escalating to discussions between the Town Manager and County Manager, and ultimately to
the Town Council and Board of County Commissioners.
b. Any and all disputes and claims arising from or related to this Agreement that are not
resolved pursuant to Section (a), above shall thereafter be submitted to mediation. The Parties shall share
equally the mediator's fees and costs associated with the mediation, and each Party shall pay its own fees,
costs, and expenses related to the mediation. If the dispute is not resolved by mediation, a Party may
commence a Court proceeding, with jurisdiction and venue residing exclusively in the Eagle County
District Court. Each Party waives its right to have such dispute decided by jury trial. The prevailing Party
shall be awarded its reasonable attorneys' fees, costs, and expenses, including any attorneys' fees, costs,
and expenses incurred in collecting or executing upon any judgment, order, or award.
Section 11. Confidentiality. For purposes of ensuring proper distribution of the sales tax
revenues, the County and the Town shall share and exchange confidential information obtained by the
Parties or provided by the State subject to any limitations of the State and all statutes and local ordinances
controlling the same while maintaining taxpayer confidentiality. All such information exchanged shall
remain strictly confidential and shall be used only for the purposes designated herein.
Section 12. Parties in Interest. Nothing expressed or implied herein is intended or shall be
construed to confer upon any person other than the Parties any right, remedy or claim under or by reason
of this Agreement, this Agreement being intended to be for the sole and exclusive benefit of the Parties.
Section 13. No Personal Liability. No covenant or agreement contained in this Agreement shall
be deemed to be the covenant or agreement of an elected or appointed official, officer, agent, servant or
employee of any Party in his or her individual capacity.
Section 14. Notices. Except as otherwise provided in this Agreement, all notices or other
communications by either Party shall be in writing, shall be given in a reasonable time and shall be
deemed given when actually received.
Section 15. Severability. If any clause, provision, subsection, or Section of this Agreement shall
be held to be invalid, illegal or unenforceable for any reason, the Agreement shall be reformed to the
extent necessary to reflect the intent and purpose of the original agreement or the Parties may terminate
this Agreement.
Section 16. Interpretation. Because this Agreement is the result of mutual negotiation and
drafting, in the event this Agreement is deemed to be ambiguous or vague, the Parties agree that the rule
of construction that "ambiguities shall be construed against the drafter" shall not apply. In the event of
any conflict between the Act, the Intergovernmental Relations Statute or any other law with respect to the
exercise of any such power, the provision that permits the broadest exercise of the power consistent with
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the limitations set forth in this Agreement shall control. The laws of the State shall govern the
construction and enforcement of this Agreement.
Section 17. Counterparts. This Agreement may be executed in any number of counterparts, each
of which, when so executed and delivered, shall be an original; but such counterparts shall together
constitute but one and the same Agreement. Electronic or scanned signatures shall be valid and acceptable
for all purposes.
IN WITNESS WHEREOF, this Agreement has been executed by the Parties effective as of the
date set forth above.
EAGLE COUNTY, COLORADO
By: _______________________
Jeanne McQueeney, Chair
ATTEST:
By: __________________________
Regina O’Brien, Clerk and Recorder
TOWN OF AVON
By: _____________________
Sarah Smith Hymes, Mayor
ATTEST:
By: _________________________
Brenda Torres, Town Clerk
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