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City of Littleton

Littleton Center 2255 West Berry Avenue Littleton, CO 80120

Meeting Agenda City Council Tuesday, June 26, 2018

6:30 PM

Community Room

Study Session

1. Study Session Topics a)

ID# 18-209

Recommended administrative amendments to the Sales Tax Code

Attachments:

Administrative Amendments to the Sales Tax Code - DRAFT Clarification of Recommended Changes to Sales Tax Code Scheduled time: 6:30 p.m. to 7:15 p.m.

b)

ID# 18-216

Review of drainage easements on the Cooley Lake property for the Wild Plum Subdivision for proposed resolution

Attachments:

Easement Location Map PowerPoint Presentation Scheduled time: 7:15 p.m. to 8:00 p.m.

2. City Attorney and City Manager Updates a)

ID# 18-208

Report from City Attorney

Attachments:

Report from City Attorney re adopted legislative rules 062618 Scheduled time: 8:00 p.m. to 8:15 p.m.

Adjournment The public is invited to attend all regular meetings or study sessions of the City Council or any City Board or Commission. Please call 303-795-3780 at least forty-eight (48) hours prior to the meeting if you believe you will need special assistance or any reasonable accommodation in order to be in attendance at or participate in any such meeting. For any additional information concerning City meetings, please call the above referenced number.

City of Littleton

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City of Littleton


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Staff Communication File #: ID# 18-209, Version: 1 Agenda Date: 06/26/2018 Subject: Recommended administrative amendments to the Sales Tax Code Presented By:

Steve Kemp, City Attorney

BACKGROUND: The city sales tax code has been amended to reflect occasional changes in tax practice. The most recent significant amendments were to enact uniform definitions developed by the Colorado Municipal League. The code is the basis for imposing and regulating all sales and use taxes in the city. The city attorney’s office and finance department are working on updating portions of the code on a comprehensive basis based on three considerations: 1. Update the code to reflect current duties and responsibilities. 2. Compare the Littleton code to other codes to incorporate best and current practices. 3. Simplify the code for taxpayers and staff. STAFF ANALYSIS: This first amendment to the sales tax code is designed to address the following issues: 1. Replace city treasurer with finance director. The term city treasurer dates back to a time when a person collected the money and comprehensive financial management was nonexistent. 2. Update the enforcement provisions. As part of the drafting process, staff analyzed enforcement provisions in other cities. Aurora has maintained its code in an updated manner and has more clear cut and direct enforcement provisions. The provisions in this draft are modeled on the Aurora code. 3. Organize the sections in a more topical manner. One of the major interactions that individuals have with the city is sales tax collection, licensing, and payment. Improving the code will assist both individuals and tax payers. A chart outlining the major changes and a draft ordinance are attached to this council communication. FISCAL IMPACTS: This is a code change that does not invoke a change in tax policy that would require voter approval under the Taxpayer's Bill of Rights. STAFF RECOMMENDATION: Staff recommends council consideration of an ordinance amending administrative elements of the sales tax code. City of Littleton

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File #: ID# 18-209, Version: 1 OPTIONS/ALTERNATIVES: 1. Do nothing and leave the code as is. 2. Direct the city attorney to draft an ordinance for council consideration.

City of Littleton

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DRAFT PROPOSED AMENDMENTS TO SALES TAX CODE PERTAINING TO ADMINISTRATION

3-9-1-3: ADMINISTRATION OF CHAPTER: The administration of the licensing provisions of this Chapter is hereby vested in the City Treasurer; and the administration of all other provisions of this Chapter is hereby vested in and shall be exercised by the City Treasurer, who shall prescribe forms and reasonable rules and regulations in conformity with this Chapter for the making of returns, for the ascertainment, assessment and collection of the taxes imposed pursuant to this Chapter and for the proper administration and enforcement hereof. The administration of this chapter is vested in the finance director, who shall prescribe forms and reasonable rules and regulations in conformity with this chapter for the making of returns; for the ascertainment, assessment, and collection of the taxes imposed under this chapter; and for the proper administration and enforcement of this chapter.

Duties of the finance director provided for in this chapter may be performed by any qualified deputy or assistant. 3-9-1-5: PERFORMANCE BY DEPUTY TREASURER: Duties of the City Treasurer provided for in this Chapter may be performed by any qualified deputy. Repeal in its entirety and reserve this Section. 3-9-1-8: DUTY TO KEEP BOOKS AND RECORDS; PRESERVATION OF REPORTS AND RETURNS: It shall be the duty of every person engaged or continuing in business in the City, for the transaction of which a license is required by this Chapter, to keep and preserve suitable records of all sales made by him and such other books or accounts as may be necessary to determine the amount of tax for the collection and payment for which he is liable under this Chapter. It shall be the duty of every person to keep and preserve for a period of three (3) years all invoices of goods and all such books, invoices and other records shall be open for examination at any time by the City Treasurer or his duly authorized agents. If such person cannot produce records suitable, in the judgment of the sales tax auditor, to support his actual sales/use tax liability, the sales tax auditor may establish said liability by use of generally accepted accounting principles and by the use of reasonable estimates of said liability based upon such records as may exist or upon the history of similar businesses. Furthermore, when suitable records are available but, in the judgment of the sales tax auditor, are so voluminous that excessive and undue time would be required to conduct an actual audit thereof, the sales tax auditor may use a test period audit or 1

other appropriate sampling technique to compute the sales/use tax liability. When the taxpayer requests that an audit be conducted at a location outside of the Denver metropolitan area or when the City's auditor becomes involved in travel outside of the Denver metropolitan area for the purpose of conducting an audit, the taxpayer shall pay all of the City auditor's expenses. Said expenses may include, but not be limited to, reasonable expenses for lodging, air fare, meals, car rental, etc., if it is not possible for the taxpayer to provide the necessary records within the Denver metropolitan area. Repeal in its entirety and reserve this section 3-9-1-9: PRESERVATION OF REPORTS AND RETURNS: Reports and returns filed pursuant to this Chapter shall be preserved for three (3) years and thereafter until the City Treasurer, with the approval of the City Manager, orders them destroyed. It shall be the duty of every person subject to this chapter to keep and preserve suitable records of all sales made by him or her, and such other books or accounts as may be necessary to determine the amount of sales tax and use tax, the collection or payment for which he or she is liable under this article. If such person cannot produce records suitable, in the judgment of the finance director, to support his or her actual sales/use tax liability, the finance director may establish the liability by use of generally acceptable accounting principles, including making estimates. Furthermore, when suitable records are available but, in the judgment of the finance director are so voluminous that excessive and undue time would be required to conduct an actual audit thereof, the finance director may use a test-period audit or other appropriate sampling techniques to compute the sales/use tax liability. The taxpayer may elect to pay the expenses involved in conducting the audit at a location outside the city if it is not possible for him or her to provide the necessary records within the city. The finance director, in his or her discretion, may elect to conduct the audit at the taxpayer's principal place of business. If this occurs, the taxpayer shall pay the expenses involved in conducting the audit if such place of business is located outside the city. For purposes of this subsection outside the city shall be defined as more than 25 miles from the corporate limits of the city. It shall be the duty of every such person to keep and preserve for a period of three years all invoices of goods and merchandise purchased for resale or use in the business, and all such books, invoices and other records shall be open for examination at any time and by the finance director or his or her duly authorized agents at a location within the city. The finance director and city clerk may promulgate a records retention schedule for the preservation of reports and returns filed pursuant to this chapter. 3-9-1-13: VIOLATIONS OF CHAPTER: It shall be a violation of this Chapter for any retailer or vendor to refuse to make any return provided to be made or to make any false or fraudulent return, or any false statements in any return, or to fail or refuse to make payment to the City Treasurer of any taxes collected or due in 2

the City or in any manner to evade the collection and payment of the tax or any part thereof imposed by this Chapter, or for any person or purchaser to fail or refuse to pay such tax or evade the payment thereof or to aid or abet another in any attempt to evade the payment of the tax imposed by this Chapter. Any corporation making a false return or a return containing a false statement shall be guilty of a violation of this Chapter. Repeal in its entirety and reserve this section.

3-9-2-1: VIOLATIONS; EVASION OF COLLECTION OR PAYMENT OF TAX; LICENSE REQUIRED:

A. It shall be unlawful for any person or any retailer or vendor to: 1. Fail or refuse to make any return required to be made by this chapter; 2. Make any false or fraudulent return, or any false statement in any return; 3. Fail or refuse to make payment to the finance director of any taxes which have been collected by such person or retailer or vendor or which are due and owing to the city; or 4. Evade, in any manner, the collection and payment of any tax, or part thereof, imposed by this chapter. B. It shall be unlawful for any person, or purchaser to: 1. Fail or refuse to pay any tax imposed by this article or evade the payment thereof; or 2. Aid or abet another in any attempt to evade the payment of any tax imposed by this chapter. C. It shall be unlawful for any person to: 1. Engage in the business of selling at retail without having first obtained a license therefore; or 2. Fail to obtain zoning approval prior to applying for a sales tax license: a. The finance director may refuse to issue a sales tax license or may revoke a license issued to any person who has not obtained a building permit if such permit is required. 3. Make application for a license for a business to be operated that would violate laws of the United States, the state of Colorado or any of the provisions of this code. Notwithstanding the foregoing: a. A license may be issued for the retail sale of marijuana in accordance with the provisions of this code; or 3

b. A license may be issued for an adult business as defined in chapter 14, provided all other requirements of this code are complied with. The finance director shall act on the license application within (7) calendar days of the filing of the application.

3-9-2-1: LICENSE REQUIRED: It shall be unlawful for any person to engage in the business of selling at retail, as the same is defined in this chapter, without first having obtained a license therefor, which license shall be applied for on a form prepared by the city treasurer. No fees shall be charged for issuance of the license, and it shall be issued by the treasurer unless he or she determines that the business to be operated would violate any of the statutes of the state of Colorado, of the United States or any of the provisions of this code. Zoning approval shall be required for all sales and use tax licenses provided, however, that if the person or entity seeks a sales and use tax license for an adult entertainment establishment, the license shall be issued by the treasurer within five (5) days of application therefor, unless the adult entertainment establishment is in or proposed to be located in a location where such establishments are not permitted under this code. Said license shall be and remain in full force and effect until and unless revoked 3-9-5-1: COLLECTION AND REFUND OF DISPUTED TAX: Should a dispute arise between a purchaser and seller as to whether or not any sale, commodity or service is exempt from taxation pursuant to this Chapter, nevertheless the seller shall collect and the purchaser shall pay such tax, and the seller shall thereupon issue to the purchaser a receipt or certificate, on forms prescribed by the City Treasurer, showing the names of the seller and purchaser, the items purchased, the date, price, amount of tax paid, and a brief statement of the claim of exemption. The purchaser may thereafter apply to the City Treasurer for a refund of such taxes, and it shall be the duty of the City Treasurer, or a hearing officer if appointed pursuant to subsection 3-9-1-10(D) of this Chapter, to determine the question of exemption, subject to judicial review by the courts, as provided by Colorado Rules of Civil Procedure 106.

A. Collection. Should a dispute arise between the purchaser and the retailer or vendor as to whether or not any sale, commodity, or service is exempt from taxation under this chapter, nevertheless, the retailer or vendor shall collect and the purchaser shall pay such tax. Thereupon, the retailer or vendor shall issue to the purchaser a receipt or certificate, on forms prescribed by the finance director, showing the names of the retailer or vendor and the purchaser, the items purchased, the date, price, and amount of tax paid, and a brief statement of the claim for exemption. It shall be unlawful for any retailer or vendor to fail to collect, or any purchaser to fail to pay, the tax levied by this article on sales on which exemption is disputed. B. Refunds. A refund shall be made, or a credit allowed, in an amount equivalent to the taxes paid under dispute by any purchaser who has an exemption, as provided in this chapter, 4

plus interest computed at an annual rate equal to the average earnings rate on the investment portfolio of the city for the preceding month. Such refund shall be made by the finance director in accordance with the following procedure: 1. Application. An application for a refund of taxes paid under dispute must be made within 60 calendar days after the date of purchase of the tangible personal property or services for which the exemption is claimed. Such application shall be supported by an affidavit of the purchaser, the original paid invoice or sales receipt, and the certificate issued by the retailer or vendor. Such application shall be made upon such forms as shall be prescribed and furnished by the finance director, which forms shall contain such information as the finance director shall reasonably prescribe. 2. Burden of Proof. The burden of proof that any tangible personal property or services is exempt from taxation under this chapter shall be on the one claiming such exemption under such reasonable requirements of proof as the finance director may prescribe. 3. Decisions. Upon receipt of an application for refund, the finance director shall examine the same, render a decision thereon within thirty (30) calendar days and give notice of such decision to the applicant in writing. 4. Petition for hearing. An aggrieved applicant may petition in writing to the finance director for a hearing regarding said applicant's claim within 30 calendar days from the date of the decision of the finance director denying the refund. Such petition shall identify the amount of the refund requested and the basis for the hearing. The time period set forth in this section is mandatory. 5. Appeal. Following the hearing, an aggrieved applicant may seek review of the decision of the finance director in District Court. 6. Refunds not assignable. The right of any person to a refund under this chapter shall not be assignable, and application for refund must be made by the same person who purchased the tangible personal property or services for which an exemption is claimed. C. Determination Letter. If the finance director believes that an item is not taxable under this chapter, he or she may send a determination letter establishing this fact upon receipt of a written request by a taxpayer. The determination letter shall apply only to the taxpayer identified as the addressee. Such letter shall be in effect until revoked in writing by the finance director or until the city council passes an ordinance which has the effect of making the item subject to taxation under this chapter.

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Clarification of Recommended Changes to Sales Tax Code

Code Section Amended 3-9-1-3 Administration of Chapter

Changes Identify the correct official. Change city treasurer to finance director.

3-9-1-5 Performance by Deputy Treasurer 3-9-1-9 Preservation of Reports and Returns

Deleted section and moved duties of deputies to the section on Administration.

3-9-1-13 Violations of Chapter 3-9-2-1 License Required

Combine Section 3-9-1-8 (Duty to keep books and records; preservation of reports and returns) and 3-9-1-9 into a single section. Move rules on audit to records section. Change references to city treasurer to finance director. Address records retention guidelines. Move Violations section to License for Retail Sellers (3-9-2-1).

Move all license requirements (includes violations) to this section. Break individual requirements into subsections. Change city treasurer to finance director. Use calendar days instead of business days. 3-9-5-1 Collection and Refund Combine administrative process for refunds and refund process into one section. Separate of Disputed Tax collection and refund provisions. Provide subsections on refund process. Change city treasurer to finance director. Provide for tax determination letters.

City of Littleton Staff Communication


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File #: ID# 18-216, Version: 1 Agenda Date: 06/26/2018 Subject: Review of drainage easements on the Cooley Lake property for the Wild Plum Subdivision for proposed resolution Presented By:

Anastasia Urban, Development Services Manager

BACKGROUND: The Wild Plum Subdivision is a single-family development located in the Town of Columbine Valley, directly west of the Littleton city limit, and directly adjacent to Cooley Lake. The Cooley Lake property is owned by the City of Littleton and managed by South Suburban Parks and Recreation District (SSPRD) and is part of the South Platte Park natural area which serves as wildlife habitat. Access to Cooley Lake is limited to guided access only.

City of Littleton

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File #: ID# 18-216, Version: 1 STAFF ANALYSIS: Prior to development, the storm water runoff from the Wild Plum property flowed into Cooley Lake. A full drainage report was prepared for the property addressing both water quality and storm water detention. Since pre-existing drainage patterns cannot be altered, upon development of the property, the storm water flows shall continue to drain into Cooley Lake in a controlled manner. Staff from the city and SSPRD have reviewed the storm water design, proposed outfalls and associated easements for the subdivision. There are six drainage easements that are proposed, which are depicted on Attachment 1. Two easements are for overflow spillways from their pond and four easements are for underdrain discharges. The technical aspects of the drainage easements have been reviewed by staff and were found to be in technical compliance. The easements will specify maintenance of the storm water outfalls will be the responsibility of the Wild Plum HOA. The easements will not allow or provide for public access to Cooley Lake. FISCAL IMPACTS: There is no direct financial impact to granting the easements. Construction of the subdivision and the storm water facilities will be paid for by the developer of the Wild Plum Subdivision. OPTIONS/ALTERNATIVES: As this site previously drained to Cooley Lake, post-development flows cannot be blocked or re-routed outside the watershed. The storm water outfalls have been reviewed for technical compliance with storm water regulations and will have minimal impact to Cooley Lake. STAFF RECOMMENDATION: Staff recommends council direct staff to move forward with a resolution granting drainage easements on the Cooley Lake property for the Wild Plum Subdivision.

City of Littleton

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ATTACHMENT 1

Parcel 1 Parcel 2

Parcel 3

Parcel 4

OVERALL EASEMENT LOCATION MAP

Parcel 2

Parcel 1

Parcel 1

Parcel 2

Parcel 3

Parcel 4

Parcel 1 Parcel 2

DETAILED EASEMENT LOCATION MAP

Cooley Lake Easements

Wild Plum Subdivision & Cooley Lake • Subdivision in Town of Columbine Valley • Pre-development drained to Cooley Lake • Maintain drainage patterns

Cooley Lake • Property owned by the City of Littleton • Managed by SSPRD • South Platte Park

Cooley Lake Easements

Cooley Lake Easements • Technical aspects reviewed by Public Works and SSPRD • Easements would be granted to Wild Plum HOA • No changes to public or general access

City of Littleton Staff Communication


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File #: ID# 18-208, Version: 1 Agenda Date: 06/26/2018 Subject: Report from City Attorney Presented By:

Steve Kemp, City Attorney

At the June 5, 2018 council meeting there were comments under public comment of a legal nature. The purpose of this communication and its attachment is to provide council with follow-up on that item.

City of Littleton

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TO: FROM: RE: DATE:

Honorable Mayor and Council Steve Kemp, City Attorney Adopted Legislative Rules June 8, 2018

At the June 5, 2018 City Council meeting under public comment, a citizen asserted that Council was not following duly adopted legislative rules. It is my opinion that this comment is without merit. Section 27 of the Littleton City Charter provides in part: Sec. 27.Council Meetings. The Council shall meet regularly at the City Hall or at such other place as Council may direct at least once each month, at a day and hour to be fixed from time to time by the rules and procedures of each Council. The Council shall determine the rules of procedure governing meetings. All meetings for the transaction of business shall be open to the public. …. (emphasis added) In 2013, the Colorado Municipal League (CML) developed Bob’s Rules as a simplified version of Robert’s Rules of Order for Cities to use as part of their legislative process.1 Subsequently, they have been incorporated into the CML Publication Handbook for Effective Local Government Meetings. In 2012, the Littleton City Council adopted Council Legislative Rules for the first time. Subsequently, the Council Legislative Rules were based on Bob’s Rules that had been previously published by CML.2 Nothing in the Charter prevents a City Council from adopting such Uniform Rules as their Legislative Rules.3 Frequently, Councils may adopt other rules of procedure that relate to their internal operations. In Littleton, the City Council has adopted Rules of Engagement 4 and Standards and Protocols.5

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This is typical for state local government associations. See, Bob’s Rules of Order, Wichita State University, Wichita, Kansas, 2017. Parliamentary Procedure, a guide for city officials, Georgia Municipal Association, Atlanta, Georgia, 2007. 2 Council Legislative Rules were adopted initially on Feb.24, 2012, revised on November 16, 2012, July 16, 2013, January 21, 2014, February 16, 2016 and February 7, 2017. 3 In Fact, Section 44 of the Charter authorizes the Council to adopt Uniform Codes by ordinance. It would be an absurd interpretation of the Charter to hold that the Council can adopt uniform codes, but cannot adopt uniform rules for governance of its meetings. 4 Rules of Engagement are the internal rules or directives that define the circumstances, conditions, degree, and manner of actions by members of a governing board. The term is derived from a similar term used by the military governing the acts of individual members. 5

Standards and Protocols are terms initially developed in the Information Technology arena. A protocol is rules between individuals to convey information. A standard is something that has the overwhelming support and agreement of the body.

In the current Legislative Rules, it is provided that Robert’s Rules of Order may be considered as persuasive authority in deciding any questions arising on points of order not covered by these parliamentary rules. Clearly, the term "may" is discretionary and Council may look to Robert’s Rules or any other source that they find to be persuasive. Therefore, it is my opinion that Council is fully following the provisions of the Charter and their adopted rules and procedures.