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Tigard-Tualatin School District 23J ~ IG223003 ~ Intergovernmental Agreement To Collect And Remit Construction Excise Tax Between The Tigard-Tualatin School District 23J And The City Of Tigard INTERGOVERNMENTAL AGREEMENT TO COLLECT AND REMIT CONSTRUCTION EXCISE TAX BETWEEN THE TIGARD-TUALATIN SCHOOL DISTRICT 23J AND THE CITY OF TIGARD This Intergovernmental Agreement is effective on the last date of signature below, and is by and between the Tigard-Tualatin School District School District, a school district organized under the laws of the state of Oregon ORS 330.005 ("School District"), and the City of Tigard, a political subdivision of the State of Oregon, collectively referred to as "Parties." WHEREAS, ORS 190.003 to 190.030 allows units of local government to enter into agreements for performance of any or all functions and activities which such units have authority to perform; and WHEREAS, Chapter 829, Oregon Laws 2007 (Senate Bill 1036), authorizes school districts, as defined in ORS 330.005, to impose construction excise taxes to fund capital improvements to school facilities; and WHEREAS, School District represents that it has prepared and adopted a long term facilities plan for capital improvements, as required by SB 1036, and WHEREAS, School District is contemplating imposing a construction excise tax within the School District and desires to enter into an intergovernmental agreement with City of Tigard to collect the tax prior to the adoption of a construction excise tax; and NOW THEREFORE, the Parties hereto agree as follows: 1. Information and Forms. School District shall create and provide to City of Tigard: (i) information, forms, and assistance explaining the School District Construction Excise Tax ("CET"); (ii) information and forms for CET exemptions; and(iii) any other forms or information necessary for implementation of the CET. 2. Staffing. City of Tigard shall provide sufficient staff to calculate and collect the School District CET as prescribed in this agreement along with its collection of other construction permit fees. School District shall provide sufficient staff to implement the CET program. 3. Collection; Start date. City of Tigard agrees to assess and collect the CET on behalf of School District for those properties within School District and within City of Tigard. City of Tigard shall begin collecting the District CET on March 1, 2008 after the District gives notice to the City of Tigard of the adoption of the CET, including a copy of District's resolution imposing the tax, or the effective date of the CET stated in the Resolution,whichever is later. City of Tigard shall collect the District CET until the CET expires or this agreement is terminated by either the School District or City of Tigard upon 60 days written notice. In the event the School District increases or otherwise Page I of 6—CET IGA—Rev 2/2022 City of Tigard&Tigard-Tualatin School District 4862-6239-4379.1 modifies the tax, it shall send written notice to the City of Tigard of the increase or other modification, including a copy of School District's resolution adopting the change. The City of Tigard shall collect the tax at the new rate within fifteen(15)business days after notice is received by the City of Tigard, or upon the effective date of the change stated in the School District Resolution, whichever is later. 4. Exemptions. School District shall provide City of Tigard with all forms necessary for CET exemptions, and any other forms or information necessary for implementation of the CET. If a Person or entity asserts that it is exempt from the CET and files a School District CET Exemption Form at the time the CET would otherwise be due, City of Tigard will grant the exemption if it appears to be a valid claim of exemption under the School District Resolution adopting the CET or this Agreement. It shall be School 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 School District may have under law, if the Person was not entitled to the exemption. Statutory exemptions to the CET are included in exhibit A to this agreement. Additionally, as the School District resolution adopting the CET imposes rates of tax that School District is authorized, but not required, to collect under Senate Bill 1036 (2007), School District may grant other exemptions to the CET as agreed upon between School District and an individual or entity if supported by an executed agreement with such individual or entity that has been approved by School District's Board of Directors. 5. Remittance. Following the effective date of this Agreement, City of Tigard shall remit the collected CET to School District on a quarterly basis, by the 30th of the month following the quarter's end. The CET remittance and the CET Report shall be sent to the School District, attention David Moore, at 6960 S.W. Sandburg Street, Tigard, Oregon 97223. 6. CET Reports. City of Tigard of Tigard shall prepare and submit to the School District a report of the CETs collected and building permits issued by the City of Tigard for the previous quarter's construction activities within the School District boundaries. The report shall include: the number of building permits issued that month; the aggregate square footage of residential construction; the aggregate square footage of non-residential construction; the number of building permits for which CET exemptions were given; the aggregate square footage of construction for the exempted construction; the aggregate amount of CET paid; and the amount of CET administrative fee retained by City of Tigard pursuant to this Agreement. 7. Failure to Pay CET. Construction Excise Taxes shall be paid by the person undertaking construction at the time that a permit authorizing the construction is issued. Upon a person's refusal to or failure to pay the CET when due, the City of Tigard will not issue the building permit. In no event shall the City of Tigard be liable for failure to collect CET when due. Page 2 of 6—CET IGA—Rev 2/2022 City of Tigard&Tigard-Tualatin School District 4862-6239-4379.1 8. Records. City of Tigard shall make all records related to building permit activity, CET collections, and CET exemptions available to School District, or its designated auditors, as necessary for School District to audit Construction Excise Tax collections. 9. Administrative Fee; Reimbursement of Additional Expenses. a. As consideration for the above described services, City of Tigard shall retain the full 1% of the CET collected by City of Tigard as authorized by Section 5 of Senate Bill 1036. Prior to remitting the CET to School District, City of Tigard shall deduct this administrative fee directly from the CET collected, and the amounts deducted and retained shall be identified on the report submitted to School District. City of Tigard shall establish a fund or account for School District CET revenue, and shall deposit all revenues collected, minus the administrative fee, into such fund or account. b. If the administrative fee does not cover the City of Tigard's actual cost of administering the CET, the City of Tigard may seek reimbursement from the School District for the difference between the City of Tigard's actual cost of administering the CET and the amount it has retained as the administrative fee. If the City of Tigard desires to be reimbursed for its actual cost, the City of Tigard shall submit a quarterly invoice requesting reimbursement of administrative expenses for the preceding three month period. The invoice shall itemize the City of Tigard's actual costs of administering the tax and the amount of the administrative fee it has retained for the same period. For the purposes of this section, "actual costs" are costs that are directly attributable to the collection and remittance of the CET, including staff time, cost of materials, and transaction fees assessed against the City of Tigard for accepting CET payment by credit card or other electronic means. The City of Tigard shall permit the School District access to any and all City of Tigard records in order to verify the City of Tigard's invoice. Except in the case of a good faith dispute, the District shall pay to the City of Tigard the difference between the City of Tigard's itemized actual cost of administering the tax and the amount the City of Tigard has retained as the administrative fee within Thirty (30) days of receipt of the City of Tigard's invoice. 10. Amendment. This Agreement may be amended by mutual written agreement of the Parties. 11. Other Agreements. This Agreement does not affect or alter any other agreements between School District and City of Tigard. 12. Defense and Indemnification. Subject to the limits of the Oregon Tort Claims Act, School District agrees to defend, indemnify and hold harmless the City of Tigard, its officers, agents and employees, against all claims and actions, and all damages and expenses related thereto, arising from the performance of this agreement, or relating to the subject of this agreement, except for those caused by the sole negligence of the City of Tigard or its officers and employees. The obligations of this paragraph shall include, but not be limited to: Page 3 of 6—CET IGA—Rev 2/2022 City of Tigard&Tigard-Tualatin School District 4862-6239-4379.1 a. challenge to the City of Tigard's collection or calculation of the CET on behalf of the School District; b. School District's grant of a CET exception; c. 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 the School District in the performance of this Agreement or adoption of the CET; d. decisions of City of Tigard staff concerning the amount of any CET, including calculation of such tax and/or any exemption(s); or e. refusal or denial of any permit for failure to pay the School District CET. 13. School District and City of Tigard Contact Persons. School District and City of Tigard hereby designate the following persons as the individuals having primary responsibility for administration of this Agreement, and as the person designated to receive notice provided for herein. Either party may change its designated contact person by written notice to the other parry. Tigard-Tualatin School District 23J City of Tigard Name: David Moore Name: Mark Van Domelen Title: Chief Financial Officer Title: Building Official Address: 6960 SW Sandburg St. Address: 13125 SW Hall Blvd Tigard, OR 97223 Tigard, OR 97223 Telephone: 503.431.4016 Telephone: 503.718.2448 Email: dmoore @ttsd.kl2.or.us Email: markv@tigard-or.gov 14. Notice. Whenever notice is required to be given under this Agreement, the notice shall be given in writing to the other party's contact person by US Mail, first class postage prepaid. In addition, notice may be given by email or personal delivery. 15. General Provisions. This Agreement is binding on and insures to the benefit of the parties and their successors and assigns. Except with the other party's prior written consent, a party may not assign any rights or delegate any duties under this Agreement. The headings used in this Agreement are solely for convenience of reference, are not part of this Agreement, and are not to be considered in construing or interpreting this Agreement. This Agreement sets forth the entire understanding of the parties with respect to the subject matter of this Agreement and supersedes any and all prior understandings and agreements, whether written or oral,between the parties with respect to such subject matter.A provision of this Agreement may be waived only by a written instrument executed by the party waiving compliance. No waiver of any provision of this Agreement shall constitute a waiver of any other provision, whether or not similar, nor shall any waiver constitute a continuing waiver. Failure to enforce any provision of this Agreement shall not operate as a waiver of such provision or any other provision. From time to time, each of the parties shall execute, acknowledge, and deliver any instruments or documents necessary to carry out the purposes of this Agreement. Time is of the essence for each and every provision of this Agreement. Nothing in this Agreement, express or implied, is intended to confer on any person, other than the parties to this Agreement, any right or remedy of any nature whatsoever. Each party shall bear its own expenses in connection with this Agreement and Page 4 of 6—CET IGA—Rev 2/2022 City of Tigard&Tigard-Tualatin School District 4862-6239-4379.1 the transactions contemplated by this Agreement. This Agreement shall become effective upon the approval of School District's Board of Directors and the City of Tigard Council. Tigard-TualatinSchoolDistrict 23J City of Tigqrd By: By: Title: Superintendent Title: City Manager Date: 02/09/2022 Date: By: nvc�✓ Title: Boa d ChaitInan Date: 02/09/2022 Page S of 6—CET IGA—Rev 2/2022 City of Tigard&Tigard-Tualatin School District 4862-6239-4379.1 EXHIBIT A EXEMPTIONS The following improvements are exempt from the Construction excise tax by statute: 1. Private School Improvements 2. Public Improvements as defined in ORS 279A.010 3. 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 that 80% of the median household income for the area in which the construction tax is imposed, for a period of at least 60 years following the date of construction of the residential housing. 4. Public or Private hospital improvements 5. Improvements to religious facilities primarily used for worship or education associated with worship. 6. Agricultural buildings as defined in ORS 455.315 (2)(a) 7. Facilities that are operated by a not-for-profit corporation and that are: (a) Long term care facilities, as defined in ORS 442.015; (b) Residential care facilities, as defined in ORS 443.400; or (c) Continuing care retirement communities, as defined in ORS 101.020. 8. Residential housing being constructed on a lot or parcel of land to replace residential housing on the lot or parcel of land that was destroyed or damaged by wildfire or another event or circumstance that is the basis for a state of emergency declared under ORS 401.165 or 401.309 or for the exercise of authority under ORS 476.510 to 476.610. Page 6 of 6—CET IGA—Rev 2/2022 City of Tigard&Tigard-Tualatin School District 4862-6239-4379.1