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19740903 r-74-20RESOLUTION NO. R-74-20 WHEREAS, the City Council of the City of Fairfax, Virginia, has amended and re-enacted a cigarette tax ordinance (Article VI of Chapter 7 of the Fairfax City Code) on .. ~ept~mher 3, 1974 ; and WHEREAS, Section 58-757.29 of the Code of Virginia (1950), as amended, and Article VI of Chapter 7 of the Fairfax City Code provide authority for this jurisdiction to agree with other jurisdictions for the joint administration of their cigarette tax ordinances by the Northern Virginia Cigarette Tax Board, subject to prior approval of any such agreement by resolution of this Council; and WHEREAS, it appears to be advantageous for the City Council of the City of Fairfax, Virginia, to hereby expressly approve the current agreement anticipated between and among the City of Fairfax and certain other jurisdic- tions, a true copy of which is hereinafter set forth, and to appoint the Commissioner of Revenue of the City of Fairfax to execute forthwith the said agreement in behalf of the City of Fairfax, the parties to the aforesaid agreement being as follows: (1) Arlington County, Virginia, by its County Manager, hereinafter called party of the first part; (2) Fairfax County, Virginia, by its County Executive, hereinafter called party of the second part; (3) City of Alexandria, Virginia, by its City Manager, hereinafter called party of the third part; (4) City of Falls Church, Virginia, by its City Manager, hereinafter called party of the fourth part; (5) City of Fairfax, Virginia, by its Commissioner of Revenue, hereinafter called party of the fifth part; (6) Town of Clifton, virginia, by its Mayor, hereinafter called party of the sixth part; ~' R-74-20 ~ ~ (7) Town of Herndon, Virginia, by its Town Manager, hereinafter called party of the seventh part; (8) Town of Vienna, Virginia, by its Town Manager, hereinafter called party of the eighth part; WHEREAS, the parties hereto desire to enter an Agreement for the establishment of a board for the joint administration, collection and enforce- ment of their respective cigarette tax ordinances pursuant to the provisions of those ordinances and Section 58-757.29 of the Code of Virginia (1950), as amended; NOW, THEREFORE, the parties enter into the following agreement, which hereby revokes and replaces any prior similar agreements between or among the parties. 1. NAME AND DURATION The Board shall be called the Northern Virginia Cigarette Tax Board. Its duration shall be perpetual, subject to the provisions of paragraph 10 hereof. 2. MEMBERSHIP AND VOTING POWERS The Board shall be composed of representatives from each jurisdiction hereinbefore named; each jurisdiction may appoint more than one representative to the said Board, but each jurisdiction shall be entitled to only one member vote. Action of the Board shall be by majority vote. 3. OFFICERS AND MEETINGS At its first meeting, the Board shall elect a Chairman, Vice-Chairman and Secretary/Treasurer, who shall serve at the pleasure of the Board. There- after, the Board shall meet from time to time as deemed necessary by the Chairman. 4. POWERS OF THE BOARD The Board shall be delegated the following powers: (A) Assessment, collection and disbursement of the cigarette tax for each participating jurisdiction. (B) Audit of the sales of cigarettes by wholesalers and retailers within each participating jurisdiction. (C) Provision of information for criminal prosecution by the common- wealth's attorneys of the affected participating jurisdictions. - 2 - ' R-74-20 ~ ~ (D) Designation of an administrator. (E) Management of the Northern Virginia Cigarette Tax Fund, herein- after called the "Fund". (F) Employment of an auditor. (G) Designation of a depository bank or banks. (H) Contracting with a member jurisdiction for provision of admin- istrative services. (I) To hold and convey personal property. The Board shall have no power to hold or convey real property. (J) To enter into contracts. (K) To hire, supervise and discharge its own employees; and (L) Any other powers granted to the Board by the respective local ordinances. 5. ADMINISTRATOR Normal routine duties of the Board in administration and supervision of the cigarette tax ordinances shall be delegated to an Administrator, who shall be appointed by the Board to serve at the will of the Board under such ter~s and conditions as it deems appropriate. Actions and decisions of the Administrator shall bind the Board unless patently wrongful or the result of willful misconduct, but the Board may at any time overrule a decision or action by the Administrator, subject to lawful rights of third parties. The duties of the Administrator shall include, but are not limited to, the following: (A) Preparation of annual administrative cost estimates; (B) As authorized by the Board, employment of or contracting for staff assistance, equipment and supplies, including the establishment and administration of a retirement system covering officers and employees of the Board not covered by the retirement systems of participating jurisdictions or the State of Virginia; (C) Preparation of reports as the Board may require; (D) Authorization of disbursements to the participating jurisdiction~ (E) Authorization of disbursements from the Fund. - 3 - -'" R-74-20 ~ ~ 6. DUTIES OF THE TREASURER The treasurer shall be the custodian of the Fund and the cigarette tax receipts. He shall give bond, payable to the Board, in such amounts and with such surety as the Board requires, conditioned upon the faithful per- formance of his duties and the proper accounting of all monies coming into his hands. The cost of the bond shall be paid by the Fund. 7. COLLECTION OF THE CIGARETTE TAX The cigarette tax shall be assessed and collected on the basis of the "reporting method" according to the respective ordinances and according to the rules, regulations and procedures adopted by the Board. 8. DISBURSEMENT OF RECEIPTS, MANAGEMENT OF THE FUND A. Cigarette tax receipts, as assessed, shall be paid monthly to the participating jurisdictions. Proportional disbursement shall be made monthly to each participating jurisdiction on the basis of taxable packs of cigarettes sold within the jurisdiction. B. The Board shall receive four percent (4%) of the monthly tax receipts to cover anticipated expenses. These receipts shall be paid monthly into the Fund. Prior to the last day of July of each year, all amounts over $5,000 in the Fund so received and allocated for expenses shall be disbursed to the participating jurisdictions on the basis of taxable packs of cigarettes sold within the jurisdiction over the preceding twelve months. C. Ail disbursements shall be on warrants authorized by the Board on either blanket approval by class of expenditures or approval by specific item, which authorization shall be entered in the records of the Board. D. All monies shall be deposited in the name of the Board and dis- bursements made only on warrants approved by the administrator as having been authorized by the Board and signed by the Treasurer. 9. ALLOCATION OF ADMINISTRATIVE COSTS The administrative costs of the Board shall be shared pro-rata by each jurisdiction on the basis of the number of taxable packs of cigarettes sold within the jurisdiction, as determined monthly. 10. TERMINATION In the event any participating jurisdiction decides, by resolution, to terminate its participation in the Board, notice to the Board shall be giver - 4 - ~ R-74-20 ~ · ~ sixty (60) days prior to its date of termination. It shall receive within thirty (30) days of its date of termination its pro-rata share of receipts, administrative reserve and depreciated value of physical property used by the Board. The pro-rata share shall be based on the number of taxable packs of cigarettes sold within the jurisdiction as determined by the receipts of the month next preceding adoption of the termination agreement. The representative of such terminating jurisdiction shall not serve on the Board beyond the termination date neither shall such jurisdiction be contracted with for the provision of services. Introduced: August 20, 1974 Adopted: September 3, 1974 Attest: City Clerk - 5 -