HomeMy WebLinkAbout1996-08-05 - City of Wenatchee - Interlocal Agreements GeneralINTERLOCAL AGREEMENT
This Interlocal Agreement dated this 5th day of
August , 1996, (the Agreement) by and between the City of
Wenatchee, a municipal corporation (herein Wenatchee), and the City
of East Wenatchee, a municipal corporation (herein East Wenatchee),
collectively (herein Cities).
RECITALS
1. Wenatchee as authorized by RCW 67.28 as amended by
Section 1, Chapter 340, 54 Legislature, 1995 Regular Session,
adopted Ordinance No. 3137 which by its terms levied a special
excise tax of two percent (2 0 ) on the sale of or charge made for
the furnishing of lodging by a hotel, rooming house, tourist court,
trailer camp.
2. Sixty percent ( 60 0 ) of the tax levied and collected under
Ordinance No. 3137 is limited in its use for the purpose of
analysis, planning, engineering and/or for the design, expansion
and construction of public facilities relating to tourism or
promotion.
3. East Wenatchee as authorized by RCW 67.28 as amended by
Section 1, Chapter 340, 54 Legislature, 1995 Regular Session,
adopted Ordinance No. 95-8 which by its terms levied a special
excise tax of two percent (2 0) on the sale of or charge made for
the furnishing of lodging by a hotel, rooming house, tourist court,
or trailer camp.
?6- 08-13
4. East Wenatchee desires to contribute sixty percent (60%)
of the tax levied and collected under Ordinance No. 95-8 for the
purposes of analysis, planning, engineering and/or for the design,
expansion and construction of public facilities relating to tourism
promotion. Specifically, the expansion, modification and
refurbishing of the Wenatchee Convention Center ("the Project").
5. Wenatchee is in the planning process so as to provide for
the expansion, modification and refurbishing of the Wenatchee
Convention Center pursuant to plans, specifications and contract to
be developed by Wenatchee. The estimated Project cost is the sum
of Two Million Nine Hundred Thousand Dollars ($2,900,000).
Now, therefore, in consideration of the promises and the
material covenants hereinafter contained, the Cities hereby
formally contract and bind themselves as follows:
SECTION I - Duration: This Agreement shall remain in
full force and effect from the date of collection of the first
taxes by either City through December 31, 2010, unless terminated
by either party as a result of the default of the other party.
SECTION II - Purpose and Consideration: The Cities agree
that the purpose of this Agreement is to finance the expansion,
modification and refurbishing of the Convention Center located in
Wenatchee and to pay the costs of construction of such Project and
all bonds, if any, issued to fund such Project. Ownership of the
Convention Center and the responsibility for its operation and
maintenance shall at all times rest with Wenatchee.
INTERLOCAL AGREEMENT
Page 2.
SECTION III - Project Administration: East Wenatchee
and Wenatchee agree that Wenatchee shall be responsible for
administering the contract referred to in Recital No. 5. Wenatchee
may issue bonds to fund the Project and from the proceeds of the
tax identified herein, pay the debt service on the bonds or
reimburse Wenatchee for debt service payments made on the bonds.
Wenatchee may seek funds to apply to the Project from sources other
than tax sources, including but not limited to seeking funds from
Chelan County.
SECTION IV - Remittance/Use of Tax Revenue: East
Wenatchee agrees to remit collected taxes within thirty (30) days
following the end of a calendar quarter. Wenatchee covenants that
it will utilize the funds received from East Wenatchee and the
funds received for the Project under Ordinance No. 3137 as
contemplated in this contract solely for the planning, expansion,
modification and refurbishing of the Convention Center located in
Wenatchee.
SECTION V - Representation and Warranties of the Cities:
The Cities each represent that it is a municipal corporation duly
organized and existing under the constitution and laws of the State
of Washington; that each has the power and authority to enter into
the transaction contemplated by this Agreement and to carry out its
obligation hereunder. By proper action, each City has been duly
authorized to execute, deliver and duly perform this Agreement
SECTION VI - Default, Events and Remedy: The following
events shall be default events:
INTERLOCAL AGREEMENT
Page 3.
a. In the event bonds are issued to fund the Project,
failure of Wenatchee to perform any bond covenant, including
failure to make any bond payment on the day such bond payment is
due and payable, shall be a default.
b. Failure of Wenatchee to observe any requirement
contained within this Agreement provided that Wenatchee receives at
least sixty (60) days written notice detailing the alleged failure
or breach together with the request to remedy the breach or failure
and Wenatchee's continued failure to comply with the notice and
request for remedy within this sixty (60) days; provided however,
that if it takes longer than the sixty-day period to remedy the
breach and Wenatchee has taken all reasonable action to remedy the
breach, such failure shall not become a defaulting event as long as
Wenatchee shall diligently proceed to remedy the same.
c . Failure by East Wenatchee to remit the collected tax
within thirty (30) days following the end of a calendar quarter.
d. Wenatchee or East Wenatchee, as the case may be,
shall have all of the remedies for default available to each under
the law.
SECTION VII - Designated Notice of Default: Either City
claiming default will furnish the other City notice of the event of
default as soon as practicable and in any event within ten (10)
days of a default event. In order to constitute default, such
event of default shall have occurred and be continuing to occur on
the date of such notice. The notice shall set forth the nature of
INTERLOCAL AGREEMENT
Page 4.
such default and the action which the party providing the notice
proposes to take with respect thereto.
SECTION VIII - Notices: All notices or communications
herein required or permitted to be given shall be in writing and
mailed by first class mail, postage prepaid or delivered as
follows:
If to East Wenatchee, to the attention of the Mayor and
City Attorney at 271 - 9th Street, N.E., East Wenatchee, WA 98802.
If to City of Wenatchee, to the attention of its Mayor,
City Supervisor and City Attorney at 129 South Chelan,
P.O. Box 519, Wenatchee, WA 98807-0519.
SECTION IX - Governing Laws: This Agreement shall be
construed in accordance with and governed by the constitution and
laws of the State of Washington.
SECTION X - Binding Effect: This Agreement shall inure
to the benefit of and shall be binding upon the Cities and their
respective successors, assigns, and legal representatives.
SECTION XI - Severability: If any one or more of the
provisions contained in this Agreement shall for any reason be held
to be invalid, illegal or unenforceable in any respect, then such
provision or revision shall be deemed severable from the remaining
provisions contained in this Agreement and such invalidity,
illegality or unenforceability shall not effect any other valid
provision of this Agreement. This Agreement shall be construed as
INTERLOCAL AGREEMENT
Page 5.
if such invalid or illegal or unenforceable provision had never
been contained herein.
IN WITNESS HEREOF, the City of Wenatchee and the City of
East Wenatchee has caused this Agreement to be executed in its
respective name by its duly authorized officers on the date set
forth opposite the signature block.
ATTEST:
V:m'Z'1-2-
DEE INGLE,()Clerk
APPROVED AS TO FORM:
LARRY CARLSON
City Attorney
INTERLOCAL AGREEMENT
Page 6.
CITY OF WENATCHEE, a municipal
corporation
6) ' 1
By:
EARL TILLY, Ma r
DATED : G �L�.'/�/' (�, 19 9 6
THE CITY OF EAST WENATCHEE, a
municipal corporation
By.� A ill-" 9
DAWN COLLINGS, M4yor
ATTEST:
By: ''�-� �' ""�"'��.` DATED: august 5 1996
VIR NIA OESTREICH, Clerk
APPROVED AS TO FORM:
CHARLES D. ZIMMERMAN
City Attorney
F:\SHARED\CITY\77-21A\INTERLOC.AGM
INTERLOCAL AGREEMENT
Page 7.
ORDINANCE NO. 9-6'- Y
AN ORDINANCE OF THE CITY OF EAST WENATCHEE, WASHINGTON,
AMENDING C14APTER 4.16 OF THE EAST WENATCHEE MUNICIPAL CODE
ADOPTING SPECIAL EXCISE TAXES FOR LODGING AND ESTABLISHING AN
EFFECTIVE DATE.
WHEREAS, the City Council finds that adoption of the special excise tax for lodging will
facilitate the promotion of tourism and is in the best interests and the general welfare of the
citizens of the City of East Wenatchee, NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF EAST WENATCHEE, WASHINGTON DO
Section. 1, Chapter 4.16 of the East Wenatchee Municipal Code adopting special
excise taxes for lodging is hereby amended to read as set forth in Exhibit "A" attached hereto
and by this reference made a part herein as if set forth in full.
Secjion, 2,, If any section, sentence, clause or phrase of this Ordinance should be held
to be invalid or unconstitutional by a court of competent Jurisdiction, such invalidity or
unconstitutionality shall not affect the validity or the constitutionality of any other section,
sentence, clause Or phrase of this Ordinance.
_Sgctign, .1, This Ordinance shall take effect and be in full force five (5) days after this
ordinance or a surnmary thereof consisting of the title is published.
APPROVED:
20 , MA
PAM"LlOWMJOMM710)� -I-
ATTEST/AUTHENTICATED:
CITY K, VIRGINIA OESTRETCH
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
im
r
FILED WITH THE CITY CLERK:
PASSED BY THE CITY COUNCIL- 7//7/?S-
PUBLISHED: 7/0-qfr-a-
� 7la-671-7-r-
EFFECTIVE DATE,
ORDINANCE NO. 9 4-- R
PAF3 IINI - 10011AMUMAM00 -2-
Exhibit "A"
SPECIAL EXCISE TAX ON LODGING
Sections:
4.16.010
Taxes levied.
4.16.020
Definitions.
4.16.030
Administration and collection - Rules adopted - Special forms.
4.16.040
City funds established.
4.16.050
Effective date.
4.16.060
Violation - Penalty.
4.16.010 Taxes levied.
A. Pursuant to the provisions of Chapter 67.28 RCW, there is levied a special excise
tax of two percent on the sale of or charge made for furnishing of lodging by hotel, rooming
house, tourist court, motel, trailer camp, and the granting of any similar license to use real
property, as distinguished fi-om the renting or leasing of real property. Such special excise tax
shall be effective April 15, 1977.
B. Pursuant to the provisions of Chapter 67.28 RCW, as amended by Chapter 340, 1995
Regular Session, there is levied a special excise tax of two percent on the sale of or charge made
for furnishing of lodging by hotel, rooming house, tourist court, motel, trailer camp, and the
granting of any similar license to use real property, as distinguished from the renting or leasing
of real property. Such special excise tax shall be effective August 1, 1995, and shall be in
addition to any tax collected pursuant to Section 4.16.010(A), above.
C. For purposes of the taxes imposed pursuant to this Section, it shall be presumed
that the occupancy of real property for a continuous period of one month or more constitutes a
rental or lease of real property and not a mere license to use or enjoy the same.
4.16.020 Definitions.
The definitions of "selling price", "seller", "buyer", "consumer" and all other definitions
as now made in RCW 82.08.010, and subsequent amendments thereto, are hereby made the
definitions for the tax levied herein.
4.16.030 Administration and collection - Rriles adopted - Special forms.
For purposes of the tax levied herein:
A. The Department of Revenue of the State of Washington, hereinafter referred to as
the Department, is designated as the agent of the city for purposes of collection and
administration.
B. The administrative provisions of RCW 82.08.050 through 82.08.070 and Chapter
82.32 RCW shall apply with respect to administration and collection by the Department.
C. All rules and regulations adopted by the Department for the administration of Chapter
82.08 RCW are hereby adopted.
SPECIAL EXCISE TA-N ON LOMING
PAM 1913.1319.91071095
D. The Department is empowered, on behalf of the city, to prescribe such special forms
and reporting procedures as the Department may deem necessary.
4.16.040 City funds established.
A. All taxes levied and collected pursuant to 4.16.010(A) shall be credited to a
special fund in the treasury of the city entitled "stadium or convention fund." Such taxes
deposited in the stadium or convention Rind shall be used only:
1. For the purposes of paying all or any part of the cost of acquisition, construction or
operation of a stadium or convention facility in the city, or such other place as may be agreed
upon with such other city, county or municipal corporation by contract; or
2. To pay or secure the payment of all or any portion of general obligation bonds issued
for such purposes as allowed by Chapter 67.28 RCW; or
3. To pay for advertising, publicizing or otherwise distributing information for the
purposes of attracting visitors and encouraging tourist expansion into the city either alone or in
conjunction with any stadium or convention facilities which may be constructed. Until
withdrawn for the uses as specified herein, all moneys accumulated in such fund or funds, may
be invested in interest bearing securities, accounts or bonds, by the city clerk/treasurer in any
manner authorized by law.
B. All taxes levied and collected pursuant to Section 4.16.010(B) shall be credited
to a special fund in the treasury of the city entitled "tourism promotion fund." Such taxes
deposited in the tourism promotion fund shall be used only for the purposes described in Chapter
340 of the laws of 1995 Regular Sessions for tourism promotion, and for the design, expansion,
and construction of public facilities related to tourism promotion.
4.16.050 Effective date.
A. The effective date of the tax herein imposed pursuant to Section 4.16.010(A), above,
shall be April 15, 1977, and such tax shall be due and payable to the city on such date and all
days following, to be collected as provided in this Chapter.
B. The effective date of the tax herein imposed pursuant to Section 4.16.010(B), above,
shall be August 1, 1995, and such tax shall be due and payable to the city on such date and all
days following, to be collected as provided in this Chapter.
4.16.060 Violation - Penalty.
Any person violating or failing to comply with any of the provisions of this chapter shall
be deemed guilty of a misdemeanor, and upon conviction thereof, shall be punished as provided
for in Chapter 1.20 of the East Wenatchee Municipal Code.
SPECIAL EXCISE TAX ON LOIX;ING
PAP)1913.1 Xl9.91071095
SUMMARY OF ORDINANCE NO.
of the City of East Wenatchee, Washington
?q-V
On the/ day of 1995, the City Council of the City of East
Wenatchee, Washington, passed Ordinance No. fJ-' Y. A summary of the content of said
ordinance, consisting of the title, provides as follows:
AN ORDINANCE OF THE CITY OF EAST WENATCHEE, WASHINGTON,
AMENDING CHAPTER 4.16 OF THE EAST WENATCHEE MUNICIPAL CODE
ADOPTING SPECIAL EXCISE TAXES FOR LODGING AND ESTABLISHING AN
EFFECTIVE DATE.
The full text of this Ordinance will be inailed upon request.
DATED this L*day of 1995.
CITY CLMRK VIRGINIA OESTREICH
PAMM -10MMAW01100