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All council members to silence and put
away cell phones. If you need to step

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away or attend to personal matters,
please make a motion to recess. For

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those participating by phone, please
keep your device muted unless you are

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speaking. When speaking, kindly state
your name for the benefit of those

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viewing the live stream. As a reminder,
this meeting is being broadcast live.

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The camera is located above the clock at
the back of the council chambers. Our

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proceedings follow Robert's rules of
order as set forth in Wasillo Municipal

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Code 2.04.09. 090 to promote an orderly
and respectful meeting. I respectfully

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ask the council to observe the following
rules. Please seek recognization before

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speaking. No member may speak more than
twice on the same motion without a vote

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to suspend the rules. No member may
speak a second time until all who wish

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to speak have had the opportunity to do
so. These guidelines help ensure

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fairness, efficiency, and mutual respect
during our discussions. When clerk,

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please call the role.
Thank you, Madam Deputy Mayor. Council

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member [snorts] Codle is absent and
excused unless objection is raised. She

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is in route to the AML conference and is
going to try to call in. So, so we may

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hear from her later in the meeting, but
for now, she's absent. Council member

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Graham
>> here.

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» Council member Schmidt
>> here.

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» Council member Grafton
>> here.

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» Council member Johnson
>> here.

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» And Deputy Mayor Rubio
>> here.

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» You do have a quorum. All members are
present with us in chambers except

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council member Codle who may participate
telephonically later in the meeting.

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» Thank you. Please rise for the pledge of
allegiance. Council member Graham, would

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you please lead us?

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» I pledge allegiance to the flag of the
United States of America and to the

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republic for which it stands, one nation
under God, indivisible, with liberty and

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justice for all.

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The next item of business is approval of
the agenda. Before changes are

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discussed, are there conflicts of
interest to declare?

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Hearing none, I'll take requested
changes to the agenda. But before doing

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so, I would like to move resolution
serial number 26-47,

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item 8.3.1,
from the consent agenda to new business.

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Are there further changes to the agenda?
Hearing

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none, the agenda is approved as
presented unanimous. Unanimously

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consent. Unanimous consent. Sorry.
We are now at special orders of the day.

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And there is one proclamation I will
read for

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city of proclamation recognizing
September 11th as patriot day and a

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national day of service and remembrance.
Whereas on September 11th, 2001, our

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nation endured an unprecedented tragedy
that claimed the lives of nearly 3,000

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innocent people in New York City,
Washington DC, and Pennsylvania. And

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whereas the events of that day revealed
the resilience, courage, and unity of

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the American people as first responders,
service members, and everyday citizens

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demonstrated extraordinary heroism and
selflessness.

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And whereas Patriot Day and the National
Day of Remembrance honors the victims of

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the attacks, their families, and the
countless individuals who rose in

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service to their communities and nation
doing during and after the tragic

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events. And whereas September 11th,
2026, our nation observes the 25th

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anniversary of the September 11th
attacks, marking a significant milestone

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to reflect on the lasting impact of that
day and to honor the enduring strength

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of the American spirit. And whereas
communities across the nation continue

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to demonstrate resilience through
service, remembrance, and commitment to

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the values that bind us together as
Americans. And whereas we salute those

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who responded to the tragic events with
their courage and selfless

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determination, resources, and skills.
And whereas the city stands in sol c

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solitary
with communities across the country to

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remember and honor the sacrifices made
on September 11th, 2001, and to reaffirm

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our shared dedication to freedom, unity,
and service. Now therefore, I, Glenda D.

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Leadford, mayor of city was hereby
proclamate September 11th, 2026 as

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Patriot Day, a national day of service
and remembrance in Wasilla and encourage

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all residents observe this day through
moments of silence, acts of services,

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and reflection in honor of victims,
survivors, first responders, and all

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those whose lives were forever changed.
Reaffirming our commitment to the values

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of freedom, courage, compassion, and
unity dated this 25th day of August 20

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26.

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We are now at commissions and agency
reports. We will begin with a report on

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the airport commission from public
director Shaw.

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00:05:10,000 --> 00:05:18,080
» Thank you, madame deputy mayor. Um, last
Thursday we had our August Airport

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Advisory Commission meeting. Um, we went
over project updates and then the

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commission also passed a resolution of
support for the ongoing uh, land

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purchase and uh, expansion of the 5100
foot runway which we're eligible now

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for. So I'll be submitting that to the
council shortly in the in this week so

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that you have a come before you uh, at
the next meeting. That's my report.

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Thanks.
Thank you. And next is our report on the

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planning commission, but our acting city
planner is not here. So, if you would

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00:05:50,479 --> 00:05:56,720
please refer to the notes in the packet.
>> We have meeting minutes.

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» The meeting minutes are there.
We'll conclude commission and agency

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00:05:58,560 --> 00:06:08,039
reports with a presentation on city
sales tax regulation and exemptions from

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tax auditor and accountant Graham.

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Okay, we're up. So, Moren Graham, sales
tax accountant and auditor of the city

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of Oello. Um, good evening, deputy
mayor, council members.

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Um,
I've been asked to provide the council

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with an overview of the city of Wasel's
current business licensing, sales tax

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00:06:45,680 --> 00:06:53,440
exemptions, and protest procedures and
identify potential policy changes for

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00:06:51,199 --> 00:06:56,639
future council consideration.
>> Excuse me, Marie. Can you move that

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microphone a little closer? Thank you.
>> You bet.

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» Okay. Can you hear me now?
>> Thank you. [laughter]

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So, I have been asked to provide the
council with an overview of the city of

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Wel's current business licensing, sales
tax, exemptions, and protest procedures,

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and identify policy changes, potential
policy changes for future council

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consideration.
There are a lot of there's a lot of

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information to get through, so we'll try
to cover it fairly quickly, and I'll try

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not to get too far in the weeds or put
you to sleep with my tax nerd speak. And

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I'm sorry to everyone who has to wait to
speak after me. Um,

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so if you have questions along the way,
uh, we'll break in between the the

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sections here. So feel free to ask them
along the the way or interrupt me if you

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feel the need to.

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So we'll begin with licensing. So who
needs a license?

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A person or entity that engages in
business in the city with a location in

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the city either permanent or temporary
meets the physical presence or meets the

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physical presence required um
requirements underella municipal code

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5.16 sales tax is required to have a
city of Wasella business license. We

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have two types of licenses. an annual
expiring December 31st of the calendar

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year it's been issued in and a temporary
or special event license that's good for

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7 days from the start of the event.
The city issues a license for each

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location or each line of business that
the lency engages in business.

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The current license fees are $25 for an
annual license and $10 for a special

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event license. The payment is waved for
nonprofits designated as a 501c 4, C3,

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C4, or C19 with the IRS.
We also wave the fee for additional

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locations in the city, secondary or
third locations, or additional lines of

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business with the same business name.
The state of Alaska business licensing

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allows for one license for multiple
business locations and multiple lines of

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business for one fee. and we mirror that
in spirit. However, our software systems

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only allow for one license location and
one line of business classification code

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to be identified and printed on each
license. So, we offer secondary or third

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or whatever to accommodate that.

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Submitted applications are reviewed by
the planning department to determine if

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permitting is required for the use under
the title 16 and notify the applicant of

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any violations.
They're also reviewed by the finance

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department to determine if delinquent
debts are owed to the city by any of the

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owners or officers or members of the
entity for back sales tax, utilities,

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special assessments or any basically any
debt owed to the city. We also verify

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professional licensing with the state of
Alaska when required and document legal

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entities are registered with the state
of Alaska division of corporations.

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Once approved by the planning and
finance departments, an approval email

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is sent to with instructions to print
the business license for those with

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paper applications that submit. The
license is mailed or available for

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pickup. Applications that cannot be
approved will be sent an inspection

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report with deficiencies identified from
each department that are necessary for

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approval of the license. [snorts]

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Business licenses that are business
licenses are non-transferable.

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If a business is sold or transferred in
the city, the city must be notified

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within 15 days of the transfer. The name
and contact information of the new owner

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um should be provided and submission of
final sales tax returns should be

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submitted.
All sales tax should be paid in full and

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must be paid in full before a new
license can be issued. If purchasing a

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business, it's incumbent upon the
purchaser to ensure all taxes are paid

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prior to the transfer of the business to
prevent any unpaid sales tax liabilities

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under municipal code.
To close a business, the city must be

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notified in writing with the submission
of final sales tax returns within 15

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days of the closure or the date that the
business is no longer operating in the

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city.

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Does anybody have questions so far?
[clears throat]

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Okay.
>> What uh what happens when somebody goes

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out of business and they don't notify
you? Why is why is that 15 days in the

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code? Well, it gives us a time frame to
start trying to address it, but after

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that, if they don't notify us, it just
causes the city a lot of extra work to

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try to track them down to figure out
what's going on, why they aren't

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contacting us.
There's [clears throat] really no

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penalty, but we try to put in guidance
so that they know that they need to do

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this quickly, get taxes in, and it
becomes an issue, especially if they

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don't do that when they're transferring
a business because then when the new

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person comes in, if there's back taxes
owed, it needs to be a seamless

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transition. So, we put the rules in
there, but unfortunately, compliance on

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it is difficult to maintain because if
they don't tell us, we don't have a

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mechanism to do anything. Um, but it
helps if we can get compliance. So, we

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00:12:23,760 --> 00:12:28,959
always have the information out there
for people and try to get them to do

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that. And we we have the information on
our website as well as well as the

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closure form that we have on our
[snorts] um online media site.

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» Thank you.
>> Yep. Any other questions?

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00:12:43,120 --> 00:12:47,399
» Okay. Sales tax basics.

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A 2.5% sales tax is levied on all sales,
rentals, and services made in the city

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that are not expressly exempt in code.
This rate became effective on December

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1st, 2019.
The sales tax was passed by voters and

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became effective July 1st, 1993.
I've included a history of the rate

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changes for various projects that's been
funded with temporary increases over the

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years.
I've been here for five of these changes

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00:13:15,600 --> 00:13:23,519
and joke that it's put at least some of
the gray hair on my head. [laughter]

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Changes to the sales tax rate and the
code in general require multiple notices

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and education for all businesses as well
as compliance efforts by the city to

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ensure the changes are properly executed
by the businesses.

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There's a cap on the first $500 of each
transaction or $12.50 at the city's

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current tax rate. [snorts] Many
communities in Alaska

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um have a sales tax cap and the amounts
vary by jurisdiction. Sales tax caps are

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00:13:54,720 --> 00:14:01,800
kind of unique to the state of Alaska
because we don't have a statewide sales

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tax

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00:14:02,079 --> 00:14:09,680
and that that all businesses would be
required to collect. So the cap helps to

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keep local businesses competitive with
businesses operating in areas where

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there is no sales tax. Communities in
more isolated areas tend to have a

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higher tax cap as there's less
competition for sales outside of their

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00:14:19,839 --> 00:14:27,199
boundaries.
While municipal code provides guidance

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00:14:24,639 --> 00:14:31,000
regarding the max tax uh calculations
for specific transactions.

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00:14:31,440 --> 00:14:39,600
Services rendered over a month are
capped on the first $500 for each month,

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00:14:36,160 --> 00:14:44,240
even if invoiced or paid at one time. A
service contracts for six months would

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00:14:41,600 --> 00:14:48,880
be prrated for each month and only
capped if the monthly amount is over the

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00:14:46,399 --> 00:14:52,560
transaction cap per month. Short-term
rentals, the cap [clears throat] is

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00:14:50,399 --> 00:14:57,519
applied to the daily rental rate, not
the entire stay. So, if the daily rent

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00:14:55,360 --> 00:15:02,000
rate was more than $500, then the
portion over 500 would be exempt each

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00:14:59,680 --> 00:15:06,240
day.
Capital leases or financing leases are

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00:15:04,079 --> 00:15:11,360
treated as a sale on the effective date
of the contract and subject to the

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00:15:07,839 --> 00:15:16,160
maximum tax as one transaction.
Other lease types are taxed with the

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00:15:13,839 --> 00:15:20,320
principal amount of the lease payment
for the term of the lease. If the if a

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00:15:19,199 --> 00:15:25,279
purchase is made at the end of the
lease, then that's taxed as a separate

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00:15:22,160 --> 00:15:29,199
transaction and subject to the cap.
uh interest and financing charges are

196
00:15:27,600 --> 00:15:34,399
related to the lease payment are not
subject to sales tax. Installment

197
00:15:31,920 --> 00:15:38,560
payments are taxed uh as a single
transaction collected on the first

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00:15:36,000 --> 00:15:43,680
payment. And products with service
transactions in excess of 500 are exempt

199
00:15:41,839 --> 00:15:48,639
when the product and the service are
build or invoiced together and the

200
00:15:46,480 --> 00:15:53,120
service is directly related or integral
to the uh product purchase such as

201
00:15:51,040 --> 00:15:57,920
delivery, installation, warranty or
repair.

202
00:15:55,440 --> 00:16:02,399
Service transactions are taxed on each
separate service over $500, whether

203
00:16:00,800 --> 00:16:07,480
invoiced or paid individually,
collectively or collectively for the

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00:16:04,480 --> 00:16:07,480
period.

205
00:16:09,920 --> 00:16:16,880
Application of sales tax.
A local sale is made when the seller

206
00:16:15,199 --> 00:16:21,199
establishes physical presence in the
city by one or more of the following and

207
00:16:19,519 --> 00:16:26,320
the sale has a point of delivery within
the city. Physical presence is created

208
00:16:23,839 --> 00:16:31,279
when the business has a brickandmortar
or temporary location in the city.

209
00:16:28,800 --> 00:16:36,079
Physically solicits business or receives
orders through any employee, agent,

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00:16:33,279 --> 00:16:40,399
salesperson or other representative in
the city.

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00:16:38,160 --> 00:16:45,440
Physically provides services, holds
inventory within the city, rents, sells,

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00:16:43,279 --> 00:16:50,240
or leases property that's located in the
city, or constructs, repairs, renovates,

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00:16:48,160 --> 00:16:54,720
or improves real property that's located
in the city.

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00:16:52,399 --> 00:16:59,360
A seller that makes a local sale is
required to obtain a city business

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00:16:56,639 --> 00:17:03,639
license and report and remit sales tax
directly to the city of Wasala.

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00:17:04,799 --> 00:17:10,160
A seller that establishes physical
presence and a point of delivery in the

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city for any calendar year is deemed to
have a physical presence in the city for

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the following calendar year. After that
year, if they no longer have physical

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presence, they can close their account
out or if they continue in the future or

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establish it in the future, they would
reopen at that point.

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Remote sales are made when a remote
seller or marketplace facilitator

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00:17:30,160 --> 00:17:35,679
without a physical presence in the city
makes sales of products, rentals, or

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00:17:34,240 --> 00:17:40,080
provide services transferred
electronically or delivered to a point

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00:17:38,000 --> 00:17:44,720
of delivery located inside the city and
subject to the Alaska remote seller

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sales tax code adopted by reference
in municipal code 5.16.225.

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[laughter]

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00:17:49,760 --> 00:17:55,520
Marketplace facilitators centralized
administrative provisions are what

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00:17:53,760 --> 00:17:58,799
council just passed last month which
allows for local sales of goods,

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00:17:57,440 --> 00:18:02,320
services, and rentals made through
marketplace facilitators

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having a point of delivery in the city
to be considered remote sales and

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00:18:04,000 --> 00:18:09,240
collected through the Alaska remote
seller sales tax commission.

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The Alaska Uniform Remote Seller sales
tax code that was adopted by reference

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in our code requires remote sellers with
no physical presence in the city to

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register remit sales tax with a point of
delivery in the city when their

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statewide sales meet or exceed $100,000
in the current or preceding calendar

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00:18:29,600 --> 00:18:38,240
year. Those taxes are remitted to the
ARSTC and collections are sent to the

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city the following month.
Madam

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00:18:38,799 --> 00:18:46,160
» you may sorry, can we go back to that
real quick?

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00:18:43,679 --> 00:18:49,600
Sorry, I'm just trying to
get an ex what could you give me an

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00:18:47,600 --> 00:18:54,000
example of a business that falls under
this?

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00:18:50,480 --> 00:18:59,760
» Sure. Um, so anybody who's making a sale
in the city by remote means, so one of

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your online remote sellers, if they are
selling into the city, they meet they

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00:19:01,600 --> 00:19:08,480
don't have physical presence here, but
they meet the um

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uh point of delivery. So, the next
question is, do they have $100,000 worth

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of sales into the state? If they do,
then they're required to register and

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00:19:16,160 --> 00:19:23,360
collect tax with the Alaska Remote
Seller Sales Tax Commission, ARSTC.

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00:19:21,280 --> 00:19:29,840
If they don't meet that threshold, they
will not collect or register until they

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00:19:26,080 --> 00:19:36,240
do unless they voluntarily do it. Some
some of them do do that, but um yeah,

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00:19:32,559 --> 00:19:40,559
and the ARSTC does monitor that and they
they have some that they've weeded out

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00:19:37,679 --> 00:19:45,679
that don't meet those thresholds, but um
a lot of the companies, they use uh

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00:19:43,120 --> 00:19:48,960
taxwork companies that help them know
when those thresholds are coming up

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00:19:47,200 --> 00:19:52,559
because it's not just our state that has
that threshold.

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00:19:50,720 --> 00:19:56,320
So, they're monitoring any states that
they're doing sales into for that magic

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00:19:54,400 --> 00:20:00,799
number. and when they hit it then they
register and then they have I think um a

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00:19:59,440 --> 00:20:04,240
number of days that they need to
register within before they're you know

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00:20:03,280 --> 00:20:09,760
penalized.
>> So the best example is probably Amazon.

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00:20:06,960 --> 00:20:15,520
» Yes. So um well Amazon is one. We also
have Amazon's that local sales apply to

258
00:20:13,120 --> 00:20:20,320
because um Amazon has a local presence
in our community through sales delivery

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00:20:18,240 --> 00:20:25,440
trucks and things like that. So they do
remote they do remmit to us directly.

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00:20:23,520 --> 00:20:30,000
But their other side of their business
that is the marketplace facilitator side

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00:20:27,600 --> 00:20:36,960
where people sell their products on
their website would be um the one that

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00:20:33,600 --> 00:20:43,520
remits through the ARSTC. Shopify,
Wayfair, um I mean there's tons of them.

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00:20:40,559 --> 00:20:48,080
Apple uh yeah all of those guys that
that remmit any kind of remote sales.

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00:20:45,919 --> 00:20:54,400
» Perfect. Thank you. Mhm.
>> Now, you said that uh

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00:20:51,039 --> 00:20:59,520
uh the remote solar sales tax
corporation remits that money to you

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00:20:57,280 --> 00:21:04,320
within 30 days. How long has it been
since they remitted that within 30 days?

267
00:21:02,480 --> 00:21:07,840
My understanding they're closer to 90
days out. Is that incorrect?

268
00:21:06,000 --> 00:21:15,440
» No, they actually do it every month. So,
um it's a little delayed though because

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00:21:10,159 --> 00:21:21,679
the So, let's see. um June sales tax is
due the end of July for all businesses.

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00:21:18,480 --> 00:21:28,960
So they receive the ARCC receives the
money in July, they then uh once July is

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00:21:25,679 --> 00:21:35,760
closed out, they balance those out and
they remit it to us. Usually they try to

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00:21:32,799 --> 00:21:40,000
do it by the 15th, but due to system
constraints and other issues, it's been

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00:21:37,919 --> 00:21:45,440
pushed back a little bit. So, it's
usually pushing the end of our month and

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00:21:42,480 --> 00:21:49,200
then it takes us a few
days, weeks sometimes to get those

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00:21:47,360 --> 00:21:53,679
payments in because we do individually
receipt them. That is something that we

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00:21:51,600 --> 00:21:58,159
do for tracking purposes and we're
working hopefully with our new systems

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00:21:56,000 --> 00:22:03,919
when we do when we convert to Tyler,
we'll be able to um electronically put

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00:22:01,919 --> 00:22:08,080
those payments in so that we won't be
spending so much manual time entering

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00:22:05,919 --> 00:22:15,280
those payments. But since we've done it
for so long, I hate to lose that um

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00:22:11,600 --> 00:22:18,880
history or have a gap in the history uh
knowing that we're going to be

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00:22:16,159 --> 00:22:20,720
converting to Tyler in the next year or
a little over a year.

282
00:22:20,240 --> 00:22:25,520
» Thank you.
>> So, we continue to do it even though it

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00:22:22,880 --> 00:22:29,080
takes a little bit of time.
>> Any other questions?

284
00:22:31,679 --> 00:22:39,440
Sourcing of sales tax uh and point of
delivery. Um [clears throat] point of

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00:22:36,480 --> 00:22:43,840
delivery is the location where the sale
or service is received by the buyer

286
00:22:41,840 --> 00:22:50,960
where they take possession or make first
use of services.

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00:22:46,799 --> 00:22:56,640
While sell sales tax code spec provides
specific guidance in its definition of

288
00:22:53,760 --> 00:23:00,400
point of delivery when the product is
not received or paid for by the

289
00:22:58,480 --> 00:23:04,159
purchaser at a business location of the
seller in the city. The sale is

290
00:23:02,400 --> 00:23:08,880
considered delivered to the location
where the uh where received by the

291
00:23:06,400 --> 00:23:13,120
purchaser or the purchaser's recipient.
An example would be an online or phone

292
00:23:10,960 --> 00:23:18,240
sale that's delivered to a location in
the city. It's taxable wherever that

293
00:23:15,280 --> 00:23:24,480
location in the city would be. So it' be
a city sale.

294
00:23:21,600 --> 00:23:28,320
When the product is received or paid for
by the purchaser who's physically

295
00:23:26,240 --> 00:23:32,159
present at a business location in the
city, the sale is considered to have

296
00:23:30,240 --> 00:23:36,880
been made in the city where the
purchaser is present even if delivery of

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00:23:35,360 --> 00:23:41,600
the product takes place in another
taxing jurisdiction

298
00:23:38,880 --> 00:23:46,320
or outside the taxing jurisdiction.
These sales are reported and the tax is

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00:23:43,600 --> 00:23:52,720
remitted directly to the city. So this
would be if you went to a store in LA in

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00:23:48,960 --> 00:23:57,919
in the city, paid for say an appliance
and you're in the store paying for it,

301
00:23:55,360 --> 00:24:02,240
you would pay sales tax at the store
because even if you have it delivered to

302
00:24:00,000 --> 00:24:09,531
your home outside the city or in another
lo location like Palmer,

303
00:24:05,679 --> 00:24:11,551
it's considered a city sale.
[snorts]

304
00:24:13,120 --> 00:24:19,120
When services are not received by the
purchaser at the business location of

305
00:24:17,360 --> 00:24:22,720
the seller, the service is considered
delivered to the location where the

306
00:24:20,559 --> 00:24:26,000
purchaser receives the service. Products
or services that are transferred

307
00:24:24,080 --> 00:24:29,919
electronically or other sales where the
delivery address is for the purchaser is

308
00:24:28,000 --> 00:24:34,400
unknown, then the point of delivery
shall be the billing address of the

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00:24:31,840 --> 00:24:38,400
buyer.
And when products and services are

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00:24:36,159 --> 00:24:42,000
transferred electronically or sales
where the delivery address for the

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00:24:40,240 --> 00:24:46,880
purchaser is unknown, the point of
delivery shall be the billing address of

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00:24:43,760 --> 00:24:50,799
the per of the buyer. These rules were
specifically written to match sourcing

313
00:24:49,039 --> 00:24:55,600
language in the Alaska remote seller
sales tax commission to uniformly source

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00:24:53,440 --> 00:25:01,760
the sales tax and prevent double tax
situations for both the remote and local

315
00:24:58,400 --> 00:25:08,520
sales that cross jurisdictional uh tax
jurisdictional boundaries. The city of

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00:25:04,000 --> 00:25:08,520
Palmer also uses the same language,

317
00:25:10,640 --> 00:25:17,279
which is helpful since they're so close
to us.

318
00:25:14,960 --> 00:25:22,320
The code has rules for specific types of
businesses. Um, for real estate

319
00:25:20,400 --> 00:25:26,480
transactions, the commissions and fees
are taxed for the sale, lease, or

320
00:25:25,200 --> 00:25:31,200
management of properties that are
located in the city. There's also

321
00:25:29,120 --> 00:25:36,120
specific rules for the sale of gaming
property as well as coin operated

322
00:25:33,120 --> 00:25:36,120
machines.

323
00:25:37,039 --> 00:25:42,240
The city has tons of information to help
assist businesses with understanding

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00:25:40,640 --> 00:25:46,720
their responsibilities for collection
and remittance of sales tax on our

325
00:25:44,400 --> 00:25:53,679
website as well as links to our sales
tax code. We have pages for licensing

326
00:25:49,919 --> 00:26:00,559
and pages for sales tax
and lots of links in between.

327
00:25:58,320 --> 00:26:05,679
We also have a flowchart for both sales
and services to assist businesses with

328
00:26:03,279 --> 00:26:10,080
more complex points of delivery that
cross taxing jurisdictions or that may

329
00:26:07,919 --> 00:26:14,559
have remote sales into or out of the
city. Businesses that have questions are

330
00:26:12,720 --> 00:26:20,120
encouraged to request a tax ruling on
any specific questions for their

331
00:26:16,159 --> 00:26:20,120
business that they may have.

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00:26:22,640 --> 00:26:27,760
Additionally, the city is working with
the Small Business Development Center to

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00:26:26,000 --> 00:26:32,480
provide education classes for new
businesses. Currently, these are offered

334
00:26:30,159 --> 00:26:38,400
in person, but hopefully soon will be
available on demand as well. We also

335
00:26:35,600 --> 00:26:42,799
work collaboratively with the burrow and
neighboring cities and the Alaska Remote

336
00:26:40,960 --> 00:26:49,720
Seller Sales Tax Commission to educate
businesses and refer them to other

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00:26:44,960 --> 00:26:49,720
entities or agencies when applicable.

338
00:26:51,200 --> 00:26:59,840
Sales tax filing and remittance.
Tax returns are due monthly, but

339
00:26:56,799 --> 00:27:05,679
businesses may request to file on an
annual or quarterly basis if they have a

340
00:27:02,159 --> 00:27:11,520
timely filing history um for the private
prior year and meet taxable sales

341
00:27:08,240 --> 00:27:16,400
thresholds of $150,000 for quarterly and
$6,000 for annual. Request forms are

342
00:27:14,960 --> 00:27:20,799
available in the finance department and
on our website. Are those numbers

343
00:27:18,320 --> 00:27:26,559
correct? It says quarterly 150,000 but
annual 6,000.

344
00:27:22,720 --> 00:27:31,440
» Is it 15,000 quarterly and then 1,500
quarterly to be 6,000 annually?

345
00:27:29,200 --> 00:27:37,440
» Those are annual numbers. So they if
they have sales that are $150,000

346
00:27:33,840 --> 00:27:39,279
annually, then they qualify for being a
quarterly filer.

347
00:27:38,640 --> 00:27:45,039
» Okay.
>> If they have $6,000 or less annually,

348
00:27:42,880 --> 00:27:48,240
then they can be an annual filer.
>> Thank you.

349
00:27:45,440 --> 00:27:52,799
» Yeah. And that 6,000 basically equates
to $12.50 a month. So like if they had

350
00:27:50,480 --> 00:27:57,440
one max transaction, they could do
annual. Other than that, it's infrequent

351
00:27:55,360 --> 00:28:02,320
that we do that, but we do have a lot of
businesses that file zeros for the

352
00:28:00,240 --> 00:28:07,120
entire year for different reasons. And
so this gives us an option to give them

353
00:28:03,919 --> 00:28:10,240
an annual return. Other than that, we
try to limit it in case, you know,

354
00:28:08,880 --> 00:28:13,279
because some people say they're going to
not do something and then they end up

355
00:28:11,679 --> 00:28:18,320
doing it. So, it's best to try them out
at quarterly if we're unsure, which is

356
00:28:15,279 --> 00:28:21,600
why we require the year prior history,
although we do sometimes make exceptions

357
00:28:20,080 --> 00:28:26,279
for businesses that are obviously
probably not going to meet that

358
00:28:22,799 --> 00:28:26,279
transaction level.

359
00:28:26,559 --> 00:28:36,720
Credit and debit cards may be used for
um payments made online only and they

360
00:28:33,520 --> 00:28:41,760
incur a 3% convenience fee. There is no
fee for online echeks.

361
00:28:39,279 --> 00:28:46,000
Cash and check are or can be remitted
directly to the Fincaster Department

362
00:28:43,600 --> 00:28:51,919
office.
Businesses may take a 2% credit of the

363
00:28:48,559 --> 00:28:58,000
tax amount due up to $100 per tax return
for on-time payments.

364
00:28:55,679 --> 00:29:02,880
Payment is late if it's not received in
the finance office by the last business

365
00:29:01,200 --> 00:29:08,080
day. I'm sorry, by the last day of the
month following the period uh the

366
00:29:05,440 --> 00:29:14,720
reporting period. Postmarks are not
considered, so it has to be received in

367
00:29:10,960 --> 00:29:19,440
our office. Penalties are 5% of the tax
amount due for each month that the

368
00:29:16,480 --> 00:29:25,120
return is late, maxing at 20% with an
additional late fee of $25. Interest

369
00:29:22,159 --> 00:29:29,279
occurs daily at 15%.
And additional civil penalties are

370
00:29:27,279 --> 00:29:33,520
charged if the city does not receive a
tax return at all and has to estimate

371
00:29:31,360 --> 00:29:38,240
the tax owed.
Penalty waiverss are allowed one time in

372
00:29:35,520 --> 00:29:45,080
a 12-month period.
Penalties may be waved, but not the

373
00:29:40,480 --> 00:29:45,080
interest or the credit for prompt pay.

374
00:29:48,799 --> 00:29:57,279
Electronic tax returns are available
online in our online software programs.

375
00:29:54,799 --> 00:30:02,480
Instructions for each line of the tax
return can be expanded by clicking on

376
00:29:59,360 --> 00:30:06,480
the line item of the return. Returns
must be electronically signed, dated,

377
00:30:04,480 --> 00:30:12,320
and then submitted for payment either
with echek or an credit or debit card.

378
00:30:10,000 --> 00:30:19,440
They al also may be saved as a pending
form and then um payment sent in or uh

379
00:30:16,880 --> 00:30:24,399
brought in if people don't want to, you
know, pay online.

380
00:30:22,480 --> 00:30:28,720
For those that are technology challenged
or adverse

381
00:30:26,320 --> 00:30:34,240
um and prefer to do their paper uh
returns, we do have paper forms in our

382
00:30:31,440 --> 00:30:40,080
uh office as well as on the website. We
do not mail sales tax returns. So,

383
00:30:37,200 --> 00:30:44,799
businesses are encouraged uh to sign up
for online account even if they don't

384
00:30:42,559 --> 00:30:51,520
file that way just so they receive
reminder and email notices of due dates.

385
00:30:49,760 --> 00:30:54,559
If they don't do that and they forget,
then they don't get notified until

386
00:30:52,880 --> 00:31:01,279
they're late and then they get a late
notice.

387
00:30:57,200 --> 00:31:06,799
» So, I have a a question regarding online
tax payments. You know, we have a 3%

388
00:31:03,919 --> 00:31:11,919
convenience fee if someone pays with a
credit card, but if they decide to skip

389
00:31:08,640 --> 00:31:15,440
the 3% fee and walk in and talk to you
and pay that way,

390
00:31:13,120 --> 00:31:19,360
» Mhm. They can't
>> What's that? They can come in and pay,

391
00:31:17,440 --> 00:31:24,320
but they can't pay with a credit card.
They have to only do

392
00:31:20,960 --> 00:31:28,880
» Right. But what I'm saying is if they
if they pay online, isn't that more

393
00:31:27,120 --> 00:31:31,520
convenient for us?
>> It is.

394
00:31:29,679 --> 00:31:36,799
» And so, doesn't it seem odd that we're
charging them a convenience fee? I know

395
00:31:33,200 --> 00:31:41,600
a lot of uh you know uh you know credit
card companies and things nowadays uh

396
00:31:39,440 --> 00:31:44,880
say the convenience fee is well if you
want a paper bill

397
00:31:43,200 --> 00:31:50,000
» then there's a convenience fee you know
and if you just handle it online

398
00:31:47,200 --> 00:31:55,840
» they don't charge anything extra to yeah
what what is the

399
00:31:51,679 --> 00:32:00,240
» I think the the basis there is that um a
lot of businesses or you know people in

400
00:31:58,399 --> 00:32:03,360
general um want to pay a lot of things
online with their credit cards because

401
00:32:01,519 --> 00:32:08,880
they get benefits for those
transactions. These tend to be large

402
00:32:05,840 --> 00:32:13,440
transactions. Um, on some businesses,
the fees are pretty high. I mean, we're

403
00:32:11,760 --> 00:32:17,600
getting charged 3% by the credit card
companies and so we want to be able to

404
00:32:15,360 --> 00:32:22,240
pass that on and not to other taxpayers
because it's the taxpayers that are

405
00:32:19,279 --> 00:32:27,440
paying those fees. Um, it's certainly
something that can be looked at. It's

406
00:32:23,760 --> 00:32:31,440
not uh it's mostly policy. I don't think
there would be any reason that you guys

407
00:32:29,120 --> 00:32:34,720
couldn't change it if you wanted to. Um,
I'm sure that the finance department

408
00:32:33,200 --> 00:32:39,360
could get those numbers together for you
of how much the credit card charges are

409
00:32:37,200 --> 00:32:42,720
versus, you know, what we would so what
we would be paying or what the taxpayers

410
00:32:40,960 --> 00:32:47,679
would be paying for those fees for other
people to pay. Um, but it's a good

411
00:32:44,880 --> 00:32:51,360
question. They can pay online with an
echek. They just can't do it with a

412
00:32:49,120 --> 00:32:59,279
credit card and they can't do it in
person either. So, the only way to pay

413
00:32:54,559 --> 00:33:06,000
with a credit card is online. And um
currently we're not accepting uh AC

414
00:33:02,799 --> 00:33:13,039
payments from businesses uh where they
initiate a payment to us um for taxes.

415
00:33:11,120 --> 00:33:17,120
That's something that I'm hoping we will
be doing in the next system. So that'll

416
00:33:15,200 --> 00:33:22,640
just give them another layer or option
of payment. Um so that's something to

417
00:33:20,399 --> 00:33:27,440
look forward to hopefully. And Tyler,
>> thank you.

418
00:33:24,080 --> 00:33:33,799
» Council member Codle, are you online?
Yes, I am.

419
00:33:28,960 --> 00:33:33,799
» Thank you. Joined us at 6:33.

420
00:33:34,720 --> 00:33:40,600
» All right. Getting close. Sales tax
exemptions.

421
00:33:41,919 --> 00:33:50,480
Municipal code exemptions
um provides a list of 24 exemptions to

422
00:33:46,880 --> 00:33:54,480
the city city's uh sales tax code. Some
are required by state or federal

423
00:33:52,000 --> 00:33:58,960
statutes. Others mirror exemptions of
other taxing jurisdictions around the

424
00:33:56,640 --> 00:34:04,399
state. I've highlighted a few that
differ from neighboring cities which

425
00:34:00,799 --> 00:34:10,800
include number 12, [snorts]
15, 16, 18, and 24 that we're going to

426
00:34:08,079 --> 00:34:14,800
discuss further in a little bit. And
then we can come back to these if you

427
00:34:12,480 --> 00:34:20,079
have questions. We can go over them if
you'd like to, but we'll probably those

428
00:34:17,679 --> 00:34:25,040
other ones are um kind of ones we really
can't change or wouldn't look to change.

429
00:34:22,320 --> 00:34:27,599
So,
>> Adam, deputy mayor.

430
00:34:26,159 --> 00:34:29,440
» Yes, Council Member Cracken.
>> All right. I know we're going to talk

431
00:34:28,399 --> 00:34:32,079
about it in a moment just because I'm
looking at it at the second though.

432
00:34:30,720 --> 00:34:35,200
Number 18.
>> Mhm.

433
00:34:32,560 --> 00:34:39,440
» Um I believe pretty much everything in
there exempted by state law.

434
00:34:37,919 --> 00:34:43,440
» Was there something in there specific
that you were like, "This actually isn't

435
00:34:41,839 --> 00:34:47,599
covered that we wanted to or were
considering changing?"

436
00:34:44,560 --> 00:34:53,359
» Yeah. So healthc care um services are
provided by um providers that are

437
00:34:50,320 --> 00:35:00,480
licensed by the state of Alaska. So our
code basically says that any provider

438
00:34:56,320 --> 00:35:04,240
under title 8 is eligible um for human
health care which is an important

439
00:35:02,400 --> 00:35:11,440
distinction because veterinarians are in
there. So we have basically said that

440
00:35:07,839 --> 00:35:16,800
you know not all title 8 but all but
veterinarians or anybody that's not

441
00:35:13,040 --> 00:35:22,640
doing human um would be ex would would
qualify for the exemption. So there are

442
00:35:19,680 --> 00:35:28,400
other uh providers in title 8 that
provide human health care, but other

443
00:35:25,520 --> 00:35:34,640
codes such as maybe the city of Palmer's
and others limit it even further saying

444
00:35:31,280 --> 00:35:39,359
it's only uh medical doctor services,
chiropractors, dentists, and they give a

445
00:35:37,680 --> 00:35:45,599
list of the ones that they want
specifically. But dieticians,

446
00:35:43,280 --> 00:35:51,839
um, massage therapists,
and others that are not necessarily in

447
00:35:48,160 --> 00:35:58,079
the mainstream medical field, um, might
be ones that you might not want to

448
00:35:54,960 --> 00:36:02,720
exempt and other places don't exempt.
So, there is a little bit of room in

449
00:36:00,079 --> 00:36:08,400
there if you want to go through the list
of the title 8 provider um under the

450
00:36:05,920 --> 00:36:12,480
state statutes, the different types of
uh medical providers and see if there's

451
00:36:10,160 --> 00:36:17,240
are any in there that you don't want to
exempt.

452
00:36:13,440 --> 00:36:17,240
» Gotcha. Thank you.

453
00:36:20,480 --> 00:36:24,960
» So, I have a
>> Sure.

454
00:36:22,320 --> 00:36:30,320
» another question for you here on page
12, slide number 12, I think it is. Uh,

455
00:36:28,079 --> 00:36:37,200
the maximum tax per transaction talks
about sales rendered over one month. The

456
00:36:33,359 --> 00:36:41,359
payment of rent in excess of $500 and
for more than one month shall be treated

457
00:36:38,960 --> 00:36:46,240
as a separate transaction,
making me think it's taxable. But when I

458
00:36:43,359 --> 00:36:51,760
look at page 28,
it says uh or excuse me,

459
00:36:48,800 --> 00:36:55,520
» res page 29 number 15 where it says
residential rentals for a term of 30 or

460
00:36:53,839 --> 00:37:00,560
more consecutive days.
>> That's correct. So all rentals are taxed

461
00:36:58,079 --> 00:37:06,400
in the city except for residential
rentals currently. So commercial rentals

462
00:37:02,880 --> 00:37:09,359
are taxed. Short-term rentals are taxed.
Tangible personal property rentals are

463
00:37:08,400 --> 00:37:14,640
taxed.
>> Okay.

464
00:37:09,760 --> 00:37:17,839
» Um only residential rental is exempt.
>> And that's all residential rentals.

465
00:37:17,040 --> 00:37:22,240
» Thank you,
>> Council Member Johnson.

466
00:37:19,440 --> 00:37:25,119
» So storage units, for instance, are
text.

467
00:37:23,280 --> 00:37:28,079
» Those are those are taxable.
>> Okay.

468
00:37:25,440 --> 00:37:32,480
» Yeah. And we're collecting tax on them.
>> We are

469
00:37:29,520 --> 00:37:37,200
» on the monthly charges and and we do
have that caveat in the code like you

470
00:37:34,560 --> 00:37:41,839
said like you pointed out. So let's just
say I pay for all 12 months of my

471
00:37:39,520 --> 00:37:47,680
storage rental at one time. That doesn't
excuse um and it goes over 500 bucks,

472
00:37:45,040 --> 00:37:52,320
you don't get to have a cap. You
prorrate that for each month's rental

473
00:37:49,440 --> 00:38:00,200
and then it's taxed. So you wouldn't be
able to lessen your tax liability by

474
00:37:55,440 --> 00:38:00,200
paying a larger amount at one time.

475
00:38:00,400 --> 00:38:10,240
» So an organization that is exempt
from paying sales tax, for instance, a

476
00:38:06,400 --> 00:38:16,160
doctor, if he's renting his
property,

477
00:38:12,480 --> 00:38:21,280
he or she or they are paying tax on the
rental but not paying tax on the service

478
00:38:18,160 --> 00:38:27,119
that they provide. Is that correct?
Yes, but the for the business purpose,

479
00:38:25,119 --> 00:38:31,520
like if they're renting a a place for
their doctor's office, that would be the

480
00:38:29,599 --> 00:38:35,359
commercial rental would be taxable. If
they were renting a private residence,

481
00:38:33,280 --> 00:38:39,720
that would be not taxable currently
under code.

482
00:38:36,560 --> 00:38:39,720
» Thank you.

483
00:38:45,599 --> 00:38:50,960
» And we're going to talk a little bit
more about that at the end here.

484
00:38:51,839 --> 00:38:59,599
So, additionally, we exempt sales tax on
sales [snorts] made by a qualifying

485
00:38:57,359 --> 00:39:07,480
nonprofit that are recognized by the IRS
as a 51c3, C4, or C19 organization.

486
00:39:04,480 --> 00:39:07,480
So,

487
00:39:09,839 --> 00:39:17,920
um, and then we also have sales tax
exemption certificates or certain

488
00:39:14,720 --> 00:39:24,560
entities that qualify to apply for an
exempt. These certain ones apply uh can

489
00:39:21,200 --> 00:39:30,800
apply for an exemption. We offer one for
contractors which cost $250. Owner

490
00:39:27,599 --> 00:39:34,800
builders can obtain one for $35. Uh
wholesale manufacturing businesses and

491
00:39:32,400 --> 00:39:39,359
nonprofits for $10 each. The tax
exemption certificates exempt qualifying

492
00:39:37,040 --> 00:39:43,200
purchases from taxation.
The purpose of these exemptions for

493
00:39:41,599 --> 00:39:47,920
contractors, owner builders, and
wholesale exemptions is to prevent items

494
00:39:45,440 --> 00:39:52,640
that are resold, consumed, or
transferred, transformed into another

495
00:39:50,160 --> 00:39:58,760
new product from being taxed multiple
times prior to the sale, the end sale to

496
00:39:55,599 --> 00:39:58,760
the consumer.

497
00:40:00,480 --> 00:40:08,462
» Madame Mayor, Deputy Mayor,
>> Council Member Johnson,

498
00:40:03,440 --> 00:40:15,520
» going back to slide 30. Um
[snorts] so if you had a nonprofit which

499
00:40:12,160 --> 00:40:22,240
has say a coffee shop
uh the coffee that is [snorts]

500
00:40:18,640 --> 00:40:27,359
sold then it's non tax.
>> If the nonprofit sells anything in the

501
00:40:24,720 --> 00:40:33,280
city under this code it's not taxed at
this point

502
00:40:30,400 --> 00:40:37,079
» even though they're providing service to
the general public.

503
00:40:38,160 --> 00:40:43,760
Yep. And we're going to talk a lot about
that at the well some we'll bring that

504
00:40:41,760 --> 00:40:48,720
up again, but yes, you're in the right
ballpark. Um, anything that a nonprofit

505
00:40:46,240 --> 00:40:54,480
sells or services they provide are
exempt under this code, this section.

506
00:40:52,720 --> 00:41:00,800
» Council member Graham,
>> and that's any nonprofit that is a C3,

507
00:40:57,359 --> 00:41:04,000
C4, C19. There are like 40 different
>> types of nonprofits. Most would be

508
00:41:02,560 --> 00:41:09,119
subject to
>> Exactly. although I think the majority

509
00:41:05,599 --> 00:41:15,520
of them are probably fall under C3.
Um C3 and four

510
00:41:12,160 --> 00:41:21,520
are most common and then the 19s are
mostly your veterans associations.

511
00:41:18,880 --> 00:41:26,640
So,
but we have others sixes and there's

512
00:41:23,680 --> 00:41:34,160
some others like um labor unions and
different ones that that are different

513
00:41:29,680 --> 00:41:39,800
numbers under the IRS code. veterans
taxes

514
00:41:36,319 --> 00:41:39,800
sales. No.

515
00:41:40,160 --> 00:41:45,920
» Yeah, a lot of your veterans
organizations, there's there's quite a

516
00:41:43,520 --> 00:41:51,720
few things that are not taxed under this
particular thing. So, we can and we'll

517
00:41:48,240 --> 00:41:51,720
talk more about that.

518
00:41:52,609 --> 00:41:58,640
[snorts]
Okay. Buyers that are incorrectly

519
00:41:56,560 --> 00:42:03,280
charged sales tax may protest the tax
within 60 days and may include incorrect

520
00:42:01,599 --> 00:42:09,760
uh this may include like incorrect
assessments of tax rates, sales tax

521
00:42:06,079 --> 00:42:14,480
caps, um sales tax on locations that are
outside the city limits or sales tax um

522
00:42:12,880 --> 00:42:20,480
you know exemption certificates that are
not honored for some reason. Uh two tips

523
00:42:17,760 --> 00:42:27,520
to reduce incorrect tax assessments are
to provide sellers with uh tax lookup

524
00:42:23,760 --> 00:42:32,079
report which is found on the uh website
that's provided by the Alaska Real

525
00:42:29,359 --> 00:42:36,800
Seller Sales Tax Commission and also to
use your zip plus4 in your delivery and

526
00:42:35,040 --> 00:42:41,520
mailing addresses for products or
services that you have delivered. These

527
00:42:39,359 --> 00:42:45,760
are tips um that we also publish on our
website under the sales tax exemption

528
00:42:43,200 --> 00:42:51,359
page. The reason for the plus4
designation is when you are using a a

529
00:42:49,440 --> 00:42:55,680
mailing address or zip code to determine
the sales tax, the first thing they're

530
00:42:53,359 --> 00:43:00,160
looking at is the 99654
or 99687, which says it's in Wasilla.

531
00:42:58,480 --> 00:43:05,280
The
uh tax companies say taxable. So,

532
00:43:03,599 --> 00:43:12,079
they're going to code it in being
taxable. The plus4 tells the system

533
00:43:09,119 --> 00:43:15,599
where in the map of the city are you
located and it'll tell you if you're

534
00:43:13,920 --> 00:43:19,599
inside or outside the boundaries if
that's the mechanism they're using to

535
00:43:17,359 --> 00:43:23,520
determine it. So it's the GIS portion
that pinpoints the exact location of the

536
00:43:21,680 --> 00:43:26,720
address as in or outside of the
boundary. If you don't have that,

537
00:43:25,119 --> 00:43:30,160
they're just going to capture Wasilla
and you're going to get charged sales

538
00:43:28,079 --> 00:43:34,560
tax even if the address is outside the
city. The plus4 will tell it it's

539
00:43:32,319 --> 00:43:39,200
outside the city and therefore you won't
have the sales tax. So on all your tell

540
00:43:37,440 --> 00:43:42,720
your friends if they're getting charged
tax or they're sometimes they're not

541
00:43:41,200 --> 00:43:47,599
even looking or paying attention. So
it's just really a good rule of thumb to

542
00:43:44,960 --> 00:43:52,240
always put the plus4 in on all your
little apps and the payments and Google

543
00:43:50,000 --> 00:43:59,440
and all those things so that it's
correctly assessing the proper amount.

544
00:43:54,640 --> 00:44:06,000
The ARSTC is looking at um doing some
addressing work with some of the bigger

545
00:44:02,480 --> 00:44:11,359
uh with Avalera and others that are big
tax word companies to give them specific

546
00:44:08,720 --> 00:44:16,560
addresses to help eliminate or alleviate
some of those incorrect tax assessments

547
00:44:13,520 --> 00:44:20,960
because of the zip without the four. But
um usually uh when we find that people

548
00:44:19,359 --> 00:44:26,400
are being charged when they're outside
the city, telling them to to do that and

549
00:44:23,599 --> 00:44:31,359
change those settings usually makes it
work. Not always, but a lot of times.

550
00:44:28,880 --> 00:44:35,200
And so if it doesn't work, then we try
the other um mechanism of uh sending

551
00:44:34,160 --> 00:44:39,680
this report, which we're going to go
over next. If you go to this website

552
00:44:37,839 --> 00:44:44,480
that I'm referring to, the Alaska Tax
lookup, which is provided by the ARSTC,

553
00:44:42,720 --> 00:44:49,599
you can look up any address in the
state, and it will tell you where it is.

554
00:44:48,000 --> 00:44:53,200
If it's in a tech, you know, it's in the
state, it's in the bureau, it's in the

555
00:44:51,119 --> 00:44:57,280
city. It'll tell you exactly if there's
any tax owed in which jurisdiction

556
00:44:55,200 --> 00:45:01,760
you're paying it to.
Um,

557
00:44:59,520 --> 00:45:06,240
it will also
allow you on this side here, it will you

558
00:45:04,400 --> 00:45:11,359
can hit export and it will print out
this report or bring it up. You can save

559
00:45:09,119 --> 00:45:14,480
it uh and provide it to anybody who's
charging you sales tax. So, you can let

560
00:45:12,880 --> 00:45:21,440
them know that hey, this location's not
in the city or it is and it's, you know,

561
00:45:17,599 --> 00:45:26,319
valid validated. Um, the tax rate is
all, you know, presented there. It also

562
00:45:23,599 --> 00:45:29,599
gives information to, you know, sellers
that are trying to find out if

563
00:45:27,440 --> 00:45:34,640
something's taxable or not. Uh, it gives
them the rules of the c tax caps and

564
00:45:33,040 --> 00:45:38,000
many other things about our code that
they can search through uh to see if,

565
00:45:36,640 --> 00:45:41,520
you know, particular transactions are
exempt.

566
00:45:39,599 --> 00:45:46,640
So, it's a it's a very helpful thing,
especially for businesses that are doing

567
00:45:44,079 --> 00:45:50,280
transactions, you know, not just in
elsewhere as well.

568
00:45:52,560 --> 00:46:02,440
Are there any questions so far about
exemptions? And okay, so options for

569
00:45:59,440 --> 00:46:02,440
change.

570
00:46:03,280 --> 00:46:09,599
So reasons for change, we'll go over
first. Um,

571
00:46:08,079 --> 00:46:15,839
there are multiple things to consider
when we think about changing the sales

572
00:46:11,520 --> 00:46:19,440
tax code. consistency uh between local
city codes to help businesses that

573
00:46:17,839 --> 00:46:23,440
operate across the boundaries throughout
the bureau as well as the rest of the

574
00:46:21,920 --> 00:46:27,440
state.
Clarity to make interpretation clear and

575
00:46:25,920 --> 00:46:33,040
concise.
Fairness to equal or level the playing

576
00:46:29,920 --> 00:46:39,040
field for competing businesses um within
the city and uh businesses that compete

577
00:46:36,079 --> 00:46:44,240
with those outside of the city.
and revenue to broaden the tax revenue

578
00:46:41,839 --> 00:46:48,319
sources which is consistent with the
council goals and initiatives to

579
00:46:46,160 --> 00:46:51,319
evaluate current and future tax revenue
sources.

580
00:46:52,480 --> 00:47:01,200
So, I've identified a few areas that um
are potential places that the code could

581
00:46:58,640 --> 00:47:06,680
be changed if the council
uh feels like it's in the best interest

582
00:47:03,359 --> 00:47:06,680
of the city.

583
00:47:07,200 --> 00:47:19,119
Um the first one is kind of where uh Mr.
Johnson was going, which was the 501c3s

584
00:47:14,079 --> 00:47:25,200
uh exempt. We could require that uh
entities operating more than 20 hours um

585
00:47:22,960 --> 00:47:31,520
would have to remit sales tax. That
would put us consistent with what the

586
00:47:26,960 --> 00:47:37,040
city of Palmer does. Um, it would make
the codes consistent and it would allow

587
00:47:34,880 --> 00:47:41,040
for the types of businesses that are
competing against other businesses that

588
00:47:39,119 --> 00:47:46,240
don't have that have to collect the
sales tax. It would put them on the same

589
00:47:43,280 --> 00:47:50,560
even playing field. That's one option if
you wanted to go in that direction.

590
00:47:48,720 --> 00:47:56,000
We're not advocating for that. Just
trying to give options and and

591
00:47:53,040 --> 00:48:00,480
understanding what um doing something
like that would do or not do. This would

592
00:47:58,800 --> 00:48:09,200
um
also allow for uh the smaller nonprofits

593
00:48:05,119 --> 00:48:13,280
that are not working m you know
operating businesses necessarily. They

594
00:48:11,760 --> 00:48:18,560
would not have to remit. So you're not
dealing with like your local booster

595
00:48:15,040 --> 00:48:22,800
club or you know t-shirt sellers that
are raising money for their cause or

596
00:48:20,400 --> 00:48:28,079
something like that. So um it's one
option. It is something that um Palmer

597
00:48:25,280 --> 00:48:33,440
does because they have quite a few of
these um operations that uh do like the

598
00:48:31,440 --> 00:48:37,599
fair and other places that are are
501c3s and and those revenues are

599
00:48:35,839 --> 00:48:42,319
important to that city. So, it's just
something to consider. Also, the you

600
00:48:40,000 --> 00:48:46,200
know level playing field of keeping
other businesses competitive.

601
00:48:46,880 --> 00:48:55,920
Another option is um to tax all gaming
regardless of the nonprofit status. So

602
00:48:53,520 --> 00:49:00,240
whether they're open for 20 hours or
more or just any nonprofit that sells

603
00:48:57,839 --> 00:49:05,280
gaming, um you could, you know, look at
that being a rule. I do believe, um

604
00:49:03,359 --> 00:49:09,760
Palmer has some regulations like that,
too. I don't know if it's all or if it's

605
00:49:07,119 --> 00:49:14,000
just I think they might limit it to only
gaming that's done at the state

606
00:49:10,960 --> 00:49:19,760
fairgrounds, but um you guys could do
whatever you know you want, but it's

607
00:49:15,520 --> 00:49:25,920
something that has room for a change.
Um,

608
00:49:22,400 --> 00:49:29,599
also this section of code, uh, back when
we were looking at the specific rules

609
00:49:27,440 --> 00:49:34,800
for different particular businesses,
this one, um, it was written a long time

610
00:49:32,240 --> 00:49:41,040
ago. And it was written, I think, mostly
with pull tabs and bingo in mind.

611
00:49:38,160 --> 00:49:48,000
And the gaming options have expanded now
and include like a state lottery and

612
00:49:44,079 --> 00:49:50,800
other forms of gambling. So, um, that
might be just something that we want to

613
00:49:49,200 --> 00:49:55,720
look at to see if there's other options
for us to tax. Uh,

614
00:49:56,640 --> 00:50:05,359
currently any nonprofits that are
selling, uh, any gaming on their own are

615
00:50:02,400 --> 00:50:09,760
not required to collect sales tax. But,
uh, for-profit operators that sell on

616
00:50:08,000 --> 00:50:13,280
behalf of nonprofits, because you have
to, if you're selling any kind of

617
00:50:11,280 --> 00:50:18,559
gaming, it has to go for the benefit of
a nonprofit. But those for-profit ones

618
00:50:16,400 --> 00:50:24,800
are paying sales tax. So they are at an
unfair, you know, competitiveness, I

619
00:50:21,520 --> 00:50:28,880
guess, or advantage. Um,
the code makes it difficult to

620
00:50:26,319 --> 00:50:33,200
administer when when uh some of these
sales are the way it's currently

621
00:50:31,359 --> 00:50:37,440
written, when some of these sales are
made outside of the city. So like I

622
00:50:35,119 --> 00:50:43,520
said, bingo and and pull tabs, they're
all done here. But these other things

623
00:50:40,960 --> 00:50:46,800
like raffle tickets and you know
different things those some of the

624
00:50:45,359 --> 00:50:49,920
tickets might be sold here and some
might be outside the city but the way

625
00:50:48,160 --> 00:50:52,880
that the code is written it makes it
difficult for a business to be able to

626
00:50:51,280 --> 00:50:55,680
determine or a nonprofit to be able to
determine that. So those are things that

627
00:50:54,079 --> 00:50:59,160
we want to look at if you want to change
something like that.

628
00:51:00,850 --> 00:51:08,480
[sighs] We could increase the sales tax
cap. That's another room for change. Um,

629
00:51:05,040 --> 00:51:14,079
I know that the McKinley Group study uh
supported an increase um without harm to

630
00:51:12,079 --> 00:51:19,280
local businesses. So, that's something
that could be considered.

631
00:51:16,400 --> 00:51:24,319
Um, like I said, the caps are varying
throughout the state, so different

632
00:51:21,280 --> 00:51:27,760
amounts currently. Um, that would also
put us in line with the city of, you

633
00:51:25,760 --> 00:51:35,040
know, Palmer if we made the caps the
same. Um, but it's just something that

634
00:51:32,800 --> 00:51:40,720
is possible.
Um, I do believe that the information

635
00:51:38,079 --> 00:51:44,319
that the McKinley study did offer was on
the low side. I think it's going to be

636
00:51:42,880 --> 00:51:47,760
probably higher than that, but
unfortunately the number would not be

637
00:51:45,920 --> 00:51:52,160
something that we can determine at this
time. There's just a range and I think

638
00:51:49,680 --> 00:51:57,680
her report and memo to you all was
pretty clear about the range there. It

639
00:51:54,240 --> 00:52:02,240
was, you know, quite a large range. So,
um, another thing to consider.

640
00:52:00,455 --> 00:52:07,119
[clears throat] Didn't our tax cap used
to be like $1,250. We've lowered it

641
00:52:05,200 --> 00:52:12,880
considerably over the years, hasn't we?
>> As far as I know, the cap tax cap has

642
00:52:09,599 --> 00:52:19,920
been on the first $500 the entire time.
The rate the amount has changed because

643
00:52:15,359 --> 00:52:24,800
the rate changes. So, it used to be $12,
you know, then it or it was $10 when it

644
00:52:22,240 --> 00:52:33,280
was 2%. Then it went to $1250 when it's
2.5. It was $15 when it was 3%. But it's

645
00:52:29,280 --> 00:52:37,760
always been on the first $500. So if we
went to a different cap, you could cap

646
00:52:35,119 --> 00:52:42,160
it on the first 750 or you could cap it
on the first thousand or you could cap

647
00:52:40,160 --> 00:52:46,400
it on, you know, whatever you want. You
just want to make sure that if you do

648
00:52:43,680 --> 00:52:50,960
look at raising that, we make sure that
we do all the things we need to do,

649
00:52:48,559 --> 00:52:56,000
check with legal and all that stuff. Um,
but also that you don't raise it too

650
00:52:54,160 --> 00:53:00,240
high that it would hurt your local
businesses and make them uncompetitive

651
00:52:58,160 --> 00:53:06,079
with businesses that are not in a taxing
jurisdiction and having to collect tax.

652
00:53:02,800 --> 00:53:10,640
Um, so there's different reasons for
changing it or not changing it or you

653
00:53:08,079 --> 00:53:15,160
know then you got to decide how much. So
there's lots of things to consider

654
00:53:12,160 --> 00:53:15,160
there.

655
00:53:16,480 --> 00:53:24,800
Yeah. Questions?
um tax on residential rentals. So, as we

656
00:53:23,040 --> 00:53:29,520
discussed earlier, residential rentals
are the only rentals that we don't tax.

657
00:53:27,680 --> 00:53:35,040
Um
other cities do tax them. Uh city of

658
00:53:32,319 --> 00:53:39,440
Palmer does. So, you know, it would be
consistent with them. They would it

659
00:53:36,960 --> 00:53:42,640
still be uh subject to the tax cap. So,
if rentals were taxed currently, they

660
00:53:41,200 --> 00:53:48,800
would be subject to the current tax
rate, which is our tax cap, which is

661
00:53:45,200 --> 00:53:53,520
$500. So, no more than 1250 on any one
month. Um, but obviously if you're

662
00:53:52,160 --> 00:53:58,319
looking at those other changes, then
that would affect these types of things

663
00:53:55,119 --> 00:54:04,880
as well.
This was number 15 on the exemption list

664
00:54:01,280 --> 00:54:07,880
that we were talking about.
Um,

665
00:54:08,640 --> 00:54:15,440
so we could remove the credit for prompt
pay when collecting uh from collecting

666
00:54:13,119 --> 00:54:22,000
businesses. Currently, like I said, the
business that collects a sales tax um is

667
00:54:18,480 --> 00:54:29,200
offered a 2% credit up to $100 every tax
period. Uh so that's for some businesses

668
00:54:25,920 --> 00:54:36,400
$1,200 a month or $1,200 a year that
they would um take as a credit uh for

669
00:54:33,359 --> 00:54:41,440
them to collect our tax.
The city of Palmer does not allow for a

670
00:54:39,520 --> 00:54:44,960
tax [clears throat] cap or a tax credit
and there are other many others around

671
00:54:43,040 --> 00:54:52,240
the state that don't. There are many
that do. So, um, our code falls in line

672
00:54:49,200 --> 00:54:55,680
with, you know, probably half of them.
Um, so that's a place that you could

673
00:54:53,760 --> 00:55:01,359
look for if you were wanting to make
some changes. Um, Council Member

674
00:54:58,800 --> 00:55:06,720
Schmidt,
>> do you happen to have the figures on

675
00:55:03,359 --> 00:55:11,680
what the discount is on early pay?
>> What we collect currently for it?

676
00:55:09,760 --> 00:55:17,119
» No, the discount.
>> The discount is 2% of the tax amount due

677
00:55:15,280 --> 00:55:18,880
» for the year. How much total does that
add up to?

678
00:55:17,920 --> 00:55:22,400
» It's on the next page.
>> Yeah, on the next Yep. On the

679
00:55:20,559 --> 00:55:25,440
statistical page. Yeah, I'll I'll go
over that for you, but yes, I did

680
00:55:24,000 --> 00:55:33,920
provide it for you. [clears throat] So,
we'll skip ahead just for a second. So,

681
00:55:29,440 --> 00:55:39,839
currently in FY25, we collected $183,000
in uh credit or you know, we could have

682
00:55:37,280 --> 00:55:47,119
we've given that credit away and in the
current year to date um it is uh 182

683
00:55:44,480 --> 00:55:53,119
348. So, it's going to be real close
when we get the last of the ARSTC

684
00:55:49,760 --> 00:55:57,599
payments posted.
So, that's one place that could be

685
00:55:55,040 --> 00:56:02,240
changed as well. Um, Council Member
Schmidt,

686
00:55:59,520 --> 00:56:08,160
» do you think that's made an uh impact on
people paying promptly?

687
00:56:05,520 --> 00:56:12,960
» I don't think that it really does. I
think that um the system calculates it

688
00:56:10,480 --> 00:56:18,079
for them. A lot of times before the
automated system and when people were

689
00:56:15,599 --> 00:56:22,480
not filing online, a lot of times they
wouldn't take the credit like they

690
00:56:19,680 --> 00:56:27,920
forget to take it. it was more difficult
sometimes for some businesses to take

691
00:56:24,319 --> 00:56:30,960
it. Uh but yeah, I mean, of course, if
you're offered it, you're going to take

692
00:56:29,359 --> 00:56:37,200
it, but I don't think that it would
incentivize necessarily people to

693
00:56:34,000 --> 00:56:43,119
um pay on time
over a penalty that's, you know, 5% or

694
00:56:40,640 --> 00:56:47,119
more. So, I think th those those
incentivize

695
00:56:45,520 --> 00:56:53,200
people to pay on time more, I think,
than the credit does to pay on time.

696
00:56:50,720 --> 00:57:00,880
But it is something food for thought to
consider. Um, businesses do not pay

697
00:56:57,040 --> 00:57:05,760
anything as far as uh property tax to to
be here. Uh, so really the only thing

698
00:57:03,359 --> 00:57:10,000
that they are paying is the $25 and
obviously, you know, staff to administer

699
00:57:07,680 --> 00:57:17,040
that tax collection, but I'm sure that's
not their only duty. So, um,

700
00:57:14,000 --> 00:57:23,880
so that's definitely a place to
consider.

701
00:57:19,119 --> 00:57:23,880
Um, let's see what else.

702
00:57:24,720 --> 00:57:31,520
Changing the city licensing fee
structure. So, we have not had an

703
00:57:28,960 --> 00:57:38,000
increase since the uh licenses were
instituted in 1993. So, our tax uh

704
00:57:35,839 --> 00:57:43,200
license fee was $25 back then and it's
still $25. So, that is something. Um,

705
00:57:41,359 --> 00:57:50,319
other licenses, I believe the state is
$50 for a year, $100 for two. when the

706
00:57:46,880 --> 00:58:02,640
burrow had theirs, it was $50 for two
years. So, um, we offer a annual only.

707
00:57:58,240 --> 00:58:08,319
I mean, we I'm not a proponent of going
less than that be or more than that

708
00:58:04,559 --> 00:58:13,440
because we have our sales taxes our
sales tax accounts are tied to the

709
00:58:09,920 --> 00:58:15,839
licensing and at the end of the calendar
year when they don't renew their

710
00:58:14,640 --> 00:58:20,559
license, even though they're supposed to
tell us and close those accounts out, it

711
00:58:17,359 --> 00:58:25,119
causes a lot of problems if they don't.
And I just see if we leave it as a

712
00:58:23,599 --> 00:58:31,359
two-year license, we'll have even more
of those uncertain accounts that don't

713
00:58:27,839 --> 00:58:36,319
close and just leave. So, I I would
probably not recommend that, but I mean,

714
00:58:33,599 --> 00:58:39,839
certainly, we could look at it and try
it, [laughter]

715
00:58:38,319 --> 00:58:46,319
but
um I think other places have had other

716
00:58:43,200 --> 00:58:50,559
other problems. It it would um allow us
to

717
00:58:47,920 --> 00:58:55,839
spend less time on renewal. the renewal
procedures,

718
00:58:52,079 --> 00:59:00,480
but uh if if we don't do them
consistently, you're still going to have

719
00:58:57,359 --> 00:59:04,480
like like the burrow I think when they
did it, they they had some that were if

720
00:59:02,799 --> 00:59:07,839
you got it this year, it was good for
the rest of this year and next year. So,

721
00:59:05,839 --> 00:59:11,920
you're always going to have renewals, so
that really wouldn't lessen the workload

722
00:59:09,359 --> 00:59:16,079
of the of staff to do it. It they would
just cycle. So,

723
00:59:14,640 --> 00:59:20,079
» Council Member Kraken,
>> thank you. Um, so I guess I'm trying to

724
00:59:18,000 --> 00:59:23,920
understand what you mean by changing it
because you're not advocating for

725
00:59:21,599 --> 00:59:27,599
increasing the co or increasing the cost
or changing the time frame.

726
00:59:25,839 --> 00:59:32,799
» You could do any of those. I mean, you
could change the fee structure to um,

727
00:59:30,640 --> 00:59:37,680
you know, less frequently and do the
the, you know, like every two years. You

728
00:59:35,040 --> 00:59:42,559
could increase the fee. We could look at
taxing. Um, I don't we'd have to touch

729
00:59:40,319 --> 00:59:49,760
with legal, but you could look into
whether uh we could do fees based on

730
00:59:47,280 --> 00:59:56,079
gross receipts like a license fee. If
your business does this kind of volume

731
00:59:52,400 --> 01:00:00,960
of sales, your license is $25 or $50. If
you do this volume of sales, it's

732
00:59:58,240 --> 01:00:05,920
higher, you know, until you get to like
your big huge stores that would have a

733
01:00:03,680 --> 01:00:10,400
larger footprint and then they would
have a larger license fee. that's done

734
01:00:08,079 --> 01:00:14,160
in other places around the country. So,
we could look to see if that if Alaska

735
01:00:12,400 --> 01:00:19,119
law would support something like that.
We'd have to check in with there's just

736
01:00:16,960 --> 01:00:25,760
different things to think outside the
box on, you know, our our regular $25.

737
01:00:22,720 --> 01:00:31,359
Um because again, these these are the
only tax or only fee that that some of

738
01:00:28,720 --> 01:00:36,079
these businesses are are paying. So, um
I think a lot of times they're they're

739
01:00:33,599 --> 01:00:40,559
referred to, you know, you have to have
a license fee that's fees and taxes are

740
01:00:38,880 --> 01:00:46,240
are
not the same and we don't want to have a

741
01:00:43,680 --> 01:00:50,240
fee that that's really a tax and so we
have to kind of be careful with that and

742
01:00:47,599 --> 01:00:54,160
that's why we should probably involve,
you know, Holly or whomever to ask some

743
01:00:52,960 --> 01:00:57,680
of those questions if that's something
you guys want to delve into. Well, I

744
01:00:56,319 --> 01:01:01,760
mean, it wouldn't so much be about the
fee, but to me, it's the time frame. I

745
01:01:00,559 --> 01:01:05,440
mean, one of the things that we
discussed during, for instance, the land

746
01:01:03,520 --> 01:01:08,480
use development with Title 16 was the
short-term rentals.

747
01:01:06,799 --> 01:01:12,000
» I mean, those were a year and then
people were appealing them. And so, what

748
01:01:10,400 --> 01:01:16,000
effectively ended up happening was
people that got those permits couldn't

749
01:01:14,160 --> 01:01:20,319
even use them because of how much time
they were being tied up. And so, I I

750
01:01:18,880 --> 01:01:23,280
think about how much time the city
spends dealing with the permits. I mean,

751
01:01:21,920 --> 01:01:26,400
I get it. Most of these people it should
be you know you go online you click a

752
01:01:24,960 --> 01:01:30,160
couple buttons you pay your fee you move
on you know that's that should be a

753
01:01:27,839 --> 01:01:35,040
majority of it but it's the ones that
don't do that that start to become the

754
01:01:32,319 --> 01:01:41,200
time suck and
you you would think you it would become

755
01:01:37,359 --> 01:01:46,720
more efficient to offer a longer term
business license that would be in the

756
01:01:43,520 --> 01:01:50,720
realm of three or five years um and it
could even be based on what type of

757
01:01:48,559 --> 01:01:54,480
business you're offering I mean do we
really need Fred Meyer and Walmart

758
01:01:52,640 --> 01:01:56,400
coming to us every single year applying
for their business license. I mean, come

759
01:01:55,920 --> 01:01:58,720
on.
>> They're not going anywhere anytime soon,

760
01:01:58,079 --> 01:02:01,440
you know?
>> Yeah.

761
01:01:59,040 --> 01:02:05,200
» So, it it it changes things like that.
There's I get there's a lot of moving

762
01:02:02,720 --> 01:02:08,160
parts there, but that's the idea that or
the question that I would ask is would

763
01:02:06,799 --> 01:02:11,119
that be more beneficial
>> to the city?

764
01:02:09,440 --> 01:02:17,520
» It it could be. We could we could
certainly look at it. Um, for most of

765
01:02:14,720 --> 01:02:24,880
our businesses that are not those guys,
um, the yearly contact is kind of good

766
01:02:21,839 --> 01:02:31,119
because a lot of information changes and
people change and locations change and

767
01:02:28,720 --> 01:02:35,839
people don't do
all the things are supposed to do. Like

768
01:02:33,359 --> 01:02:40,640
I've got several businesses just that
I've seen around town in the last couple

769
01:02:38,079 --> 01:02:43,920
of uh months that have changed locations
and don't tell us they changed on their

770
01:02:42,640 --> 01:02:47,599
license. So if you looked up their
license, they're still at their old

771
01:02:45,200 --> 01:02:51,200
location. And so then we end up having
to contact them. Those are things that a

772
01:02:50,160 --> 01:02:56,400
lot of times they change on their
renewal form and catch up because they

773
01:02:54,160 --> 01:03:00,720
see it and are asked to provide that
information um or verify the information

774
01:02:59,359 --> 01:03:03,839
that we have as correct and they're
like, "Oh, no, that's changed. Oh, that

775
01:03:02,400 --> 01:03:08,640
phone number's changed. Oh, this has
changed. And so having that check-in

776
01:03:06,559 --> 01:03:13,119
yearly is beneficial because that
information that we're using that is for

777
01:03:10,640 --> 01:03:17,039
those businesses is what helps us to
collect the taxes when say they don't

778
01:03:14,880 --> 01:03:21,359
pay their tax form or they, you know,
leave the city and because they haven't

779
01:03:19,599 --> 01:03:24,799
had to get a business license renewal in
5 years. If we stop getting those tax

780
01:03:23,200 --> 01:03:29,839
returns, then it can make some of those
things kind of difficult because they

781
01:03:26,960 --> 01:03:33,920
just ghost us and don't tell us. So, at
least at uh a year, I know that we're

782
01:03:32,400 --> 01:03:38,000
going to cut them off and say, "Okay,
they're not coming back or they're not

783
01:03:35,680 --> 01:03:41,200
responding or they're not here anymore."
And we know we're not going to go

784
01:03:39,119 --> 01:03:47,280
further than a year when we don't know
what they're doing. So, that would be my

785
01:03:44,480 --> 01:03:50,799
only hesitation. Um, but I understand
the other side of it, what you're

786
01:03:48,799 --> 01:03:55,440
saying, and that we would potentially
save time. Um, so we can certainly look

787
01:03:53,599 --> 01:03:58,599
at those options or think about them.
>> Thank you.

788
01:04:00,799 --> 01:04:08,240
Um, and then the last thing was the uh
the changes to the current exemptions or

789
01:04:06,400 --> 01:04:14,400
exemption certificates such as the
contractor owner builder exemptions. Um,

790
01:04:11,599 --> 01:04:17,599
and then we also kind of didn't catch
all of the ones that were that I had

791
01:04:16,319 --> 01:04:22,880
mentioned or highlighted in our
exemption forms. So, uh, exemptions on

792
01:04:20,880 --> 01:04:29,599
the commission of travel, that's one
that oops that we could, uh, also look

793
01:04:26,079 --> 01:04:36,839
at. Currently, we do not tax the
commission of any sales. Let me skip

794
01:04:33,039 --> 01:04:36,839
back to it and see.

795
01:04:38,079 --> 01:04:45,119
Sales of air, train, boat, cruise line
or bus, transportation, car rentals,

796
01:04:43,680 --> 01:04:48,880
accommodations or emissions to
entertainment v venues where the

797
01:04:46,960 --> 01:04:53,039
services provided outside the city,
those are exempt and the fees and

798
01:04:51,119 --> 01:05:00,960
commissions related to such sales. So,
if you were buying something online for

799
01:04:57,200 --> 01:05:05,200
a concert or whatever, um, airfare,
well, it's not air because that's a

800
01:05:03,119 --> 01:05:09,680
whole another thing, but, um,
entertainment venues, that type of

801
01:05:06,640 --> 01:05:14,160
thing, uh, those
things are not taxable because they're

802
01:05:10,960 --> 01:05:19,839
not here, but the commission of the fee
that somebody sells, that commission is

803
01:05:16,960 --> 01:05:22,799
is not taxed either. So, like your
travel agencies, if you have a travel

804
01:05:21,440 --> 01:05:26,480
agency in town, they're selling all
these things. They they get a commission

805
01:05:24,319 --> 01:05:32,640
fee for doing this service for you, but
those are not taxed. Um, it would also

806
01:05:30,319 --> 01:05:37,039
be the same thing for like Expedia,
which we're looking at now taxing with

807
01:05:34,640 --> 01:05:43,200
the uh changes that we just made last
month. Um, so if Expedia is charging a

808
01:05:40,319 --> 01:05:47,039
percentage of the fee for their service
to to do all these services for you,

809
01:05:45,440 --> 01:05:51,160
that fee is not going to be taxed
because our code exempts it.

810
01:05:51,280 --> 01:05:57,920
So that's something to look out. Council
member Craftton,

811
01:05:55,280 --> 01:06:03,119
» thank you. The part specifically I'm
looking at here is what we'd consider

812
01:06:00,960 --> 01:06:07,200
the contractor, owner, builders,
wholesale manufacturers, and nonprofit.

813
01:06:05,520 --> 01:06:10,799
Well, maybe we leave the nonprofit up.
So contractors, owner builders,

814
01:06:08,559 --> 01:06:15,119
wholesale manufacturers. When I look at
the contractors, owner builders,

815
01:06:13,359 --> 01:06:22,000
they're allowed to pl apply for an
exemption. So they don't have to pay a

816
01:06:18,880 --> 01:06:25,359
uh sales tax on every single individual
transaction they make. So when they go

817
01:06:23,599 --> 01:06:29,359
buy the concrete, they buy the blocks,
they buy the wood, every single item

818
01:06:27,520 --> 01:06:33,039
that they buy to build the house doesn't
get taxed. That's essentially the

819
01:06:31,280 --> 01:06:38,559
exemption they're applying for. Correct.
>> Correct. And they pay $250 for it. and

820
01:06:37,280 --> 01:06:44,000
» and it's yearly, right?
>> It's yearly. And [clears throat] the um

821
01:06:41,440 --> 01:06:49,039
there's no caveat that the required um
that the things that they're buying are

822
01:06:45,680 --> 01:06:54,079
for things inside the city. So, there
are a couple of things that, you know,

823
01:06:51,599 --> 01:06:59,920
you could do with that exemption. You
could eliminate it, which would then um

824
01:06:58,079 --> 01:07:05,359
make all of their sales tax. You know,
when they make purchases, those sales

825
01:07:02,000 --> 01:07:10,319
would be taxed and subject to the tax
cap. So, if the cap was still $500, then

826
01:07:08,319 --> 01:07:16,400
the most any one of those things that's
going to be charged is $12.50.

827
01:07:14,400 --> 01:07:21,839
Um,
if if we raised it, then it would be

828
01:07:18,799 --> 01:07:27,920
whatever you guys would raise it to. If
they didn't have that, um I would to

829
01:07:25,200 --> 01:07:31,760
prevent the double tax situation, then
if you remove the exemption altogether

830
01:07:29,440 --> 01:07:35,920
and they just paid tax on all purchases,
then you could put an exemption in that

831
01:07:34,000 --> 01:07:41,200
would exempt their services that they
provide in the city from being taxed.

832
01:07:38,559 --> 01:07:50,559
So, a consumer who hires a contractor to
do a remodel would um not pay any tax to

833
01:07:46,880 --> 01:07:55,119
that remodeler for their service um or
the product that's being done. But when

834
01:07:53,119 --> 01:08:00,000
the contractor goes and buys all those
stuff for that project, they're going to

835
01:07:57,200 --> 01:08:04,480
pay sales tax full price or based on the
cap at wherever they're buying all their

836
01:08:02,160 --> 01:08:08,160
stuff for. And it's just part of the
cost of what they're going to be passing

837
01:08:06,240 --> 01:08:15,200
on to the consumer. and they would not
pay any additional tax on that. So

838
01:08:10,720 --> 01:08:19,679
currently um there's a lot of
we don't most of the stuff that's sold

839
01:08:17,120 --> 01:08:25,440
here is consumed outside the city and
not done here but that that is um is

840
01:08:23,520 --> 01:08:31,199
exempted but I don't know that the
contractors are uh completely complying

841
01:08:29,839 --> 01:08:37,199
with what they're supposed to be
reporting and remitting to us and to

842
01:08:34,319 --> 01:08:40,960
audit that is probably not going to be
super lucrative because of the tax cap

843
01:08:39,440 --> 01:08:45,199
We're only talking about a handful of
contractors doing a handful of jobs and

844
01:08:42,480 --> 01:08:50,080
it's $12.50. So, we can spend a lot of
time on compliance, but we're not going

845
01:08:47,120 --> 01:08:56,239
to spend a lot of time getting revenues
from that. So, it would be more, I

846
01:08:52,880 --> 01:09:02,159
guess, cost pro cost beneficial to
exempt having to charge the consumer tax

847
01:08:59,440 --> 01:09:06,880
and the contractor reporting exemption
that and just have them pay the tax, but

848
01:09:04,960 --> 01:09:10,560
that would be more costly to a
contractor to do it that way. So, give

849
01:09:09,759 --> 01:09:14,400
and take.
>> I I mean, the way I'm thinking about

850
01:09:12,400 --> 01:09:17,839
this is
look at the amount of home [snorts]

851
01:09:15,520 --> 01:09:20,239
builders out here and where do they buy
their materials?

852
01:09:19,040 --> 01:09:24,719
» Pretty much all of it comes from the
city. I mean, you talk to our deputy

853
01:09:22,000 --> 01:09:28,719
administrator and she loves to tell the
story about how successful Lowe's is.

854
01:09:26,799 --> 01:09:32,799
Lowe's was not,
>> nobody thought that Lowe's would be as

855
01:09:30,799 --> 01:09:37,520
successful as it is, but then you
realize that we don't serve 10,000

856
01:09:34,799 --> 01:09:42,000
people. We serve 150,000 people,
>> right?

857
01:09:38,239 --> 01:09:47,520
» And so I I look at it and go $20,000 in
cabinets, $50,000 in lumber. You know,

858
01:09:46,159 --> 01:09:51,679
that's going to start I mean, yes,
$12.50,

859
01:09:49,759 --> 01:09:55,920
but think about how many individual
transactions some of these contractors

860
01:09:53,440 --> 01:10:00,719
are making to put a home together.
They're not going to just eat the cost.

861
01:09:58,080 --> 01:10:04,719
That cost gets passed on uh into the
price of the home. Mhm.

862
01:10:02,320 --> 01:10:08,080
» Um,
>> that'd be an interesting one to look at.

863
01:10:06,400 --> 01:10:11,360
I'll just say that because I I get where
you're going for the smaller

864
01:10:09,120 --> 01:10:15,920
contractors, but when I think I I look
at this for the bigger people that are

865
01:10:13,520 --> 01:10:20,320
that would make the difference between,
>> you know, that $12.50 starts adding up

866
01:10:18,400 --> 01:10:23,679
really really fast. Yeah.
>> Uh, for people. So,

867
01:10:21,840 --> 01:10:27,040
» and just so you know, too, I'm I'm not
>> I know you're not advocating either way.

868
01:10:25,920 --> 01:10:32,239
I'm just putting it out there. Like
that's the thought that I go to when I

869
01:10:28,719 --> 01:10:36,000
look at this and go, "Oh, there's 139
people that have applied for that

870
01:10:33,679 --> 01:10:39,120
already." Uh, plus the three owner
builders. And then you look at the

871
01:10:37,360 --> 01:10:42,400
wholesalers and the manufacturers
because again, they're not wanting to

872
01:10:40,400 --> 01:10:46,480
pay sales tax on the stuff that they're
wholesaling, just basically they're just

873
01:10:44,159 --> 01:10:50,880
the throughman to get the products along
the way. So,

874
01:10:47,840 --> 01:10:54,840
» uh, just just an interesting uh, bit uh,
to look at there. So, thank you.

875
01:10:57,280 --> 01:11:04,800
Okay. So, we did the travel one. So,
also daycare um there we currently do

876
01:11:02,560 --> 01:11:11,440
not tax any care services in the city.
Uh other codes uh local codes do. So,

877
01:11:08,320 --> 01:11:18,159
another place for for places um looking
at things as well as taxi ride shares.

878
01:11:15,040 --> 01:11:24,640
Uh some do, some don't, but the taxi
ride shares we don't currently tax. Uh

879
01:11:21,760 --> 01:11:29,199
but with the changes we just made last
month, your platforms like your Uber and

880
01:11:27,199 --> 01:11:35,440
your Lyft would then be collecting those
taxes. So we have not in the past due to

881
01:11:33,520 --> 01:11:39,840
difficulties trying to find them and
then difficulties trying to collect on

882
01:11:37,520 --> 01:11:45,120
them. But if we had other mechanisms
like those platforms to help us collect,

883
01:11:42,480 --> 01:11:48,960
then uh that might be a a different
conversation or a better outcome for the

884
01:11:47,360 --> 01:11:53,040
city.
And then uh we talked a little bit about

885
01:11:50,880 --> 01:11:56,800
the narrowing of the medical health
healthcare providers. So that's kind of

886
01:11:54,560 --> 01:12:01,360
the group of tax exemptions that we
discussed in the earlier slides. So

887
01:11:59,760 --> 01:12:04,239
those are the places that I had
identified. Like I said, we're not

888
01:12:02,719 --> 01:12:07,920
necessarily
advocating anything, just pointing out

889
01:12:05,920 --> 01:12:12,960
where there are places that can be
changed and uh leaving it to you guys to

890
01:12:10,880 --> 01:12:17,760
decide what's best. And we're happy to
answer questions about that and uh

891
01:12:15,120 --> 01:12:22,480
discuss it with you further. Um, I've
got the statistical information in here

892
01:12:19,440 --> 01:12:28,719
too to help you guys um, uh, assist in
your u, analysis of of the different

893
01:12:25,600 --> 01:12:34,159
options that we've given you. Um, and
we're certainly open to any other, you

894
01:12:31,199 --> 01:12:39,600
know, suggestions that may have or
questions that you have.

895
01:12:37,840 --> 01:12:45,920
Council member Grant
>> Moren, do you know what their

896
01:12:42,480 --> 01:12:49,600
uh budget expectations were for sales
tax for 25 26?

897
01:12:48,400 --> 01:12:54,239
» Not numbers.
>> Yeah, not off the top of my head. I know

898
01:12:51,920 --> 01:12:57,840
they're they're fairly close to that,
but

899
01:12:56,080 --> 01:12:59,679
I'm sure Wendy probably can get that
information for you.

900
01:12:59,120 --> 01:13:03,239
» Thank you.
>> Yes, please.

901
01:13:04,480 --> 01:13:10,719
» Council member Craftton. Thank you. Uh I
just want to say I really appreciate the

902
01:13:08,640 --> 01:13:15,840
uh
presentation here. Um I know uh some of

903
01:13:14,480 --> 01:13:21,199
these things some of these changes were
things I was already looking into. Uh

904
01:13:18,159 --> 01:13:26,640
like Mr. Johnson had brought up. I mean
to give you an example about the

905
01:13:22,640 --> 01:13:30,800
nonprofits is uh I went down to one here
recently and there was a shirt that

906
01:13:29,280 --> 01:13:35,520
still had the tags on it from the
original box store. I happened to own

907
01:13:33,520 --> 01:13:40,800
that shirt. Not only was the shirt
cheaper at the thrift store, but had I

908
01:13:39,120 --> 01:13:46,960
purchased it there, I wouldn't have paid
sales tax on it. And to me, it's like,

909
01:13:43,440 --> 01:13:50,719
how is that fair, you know? That's that
to me, that's a pretty simple change we

910
01:13:49,440 --> 01:13:54,400
can make, you know, and I like the fact
that you're like, hey, let's put the 20

911
01:13:52,159 --> 01:13:58,880
hours on it so we avoid [snorts] hitting
some of these really small

912
01:13:56,960 --> 01:14:02,560
» um school event, whatever. There there
were some there's some very small niches

913
01:14:00,480 --> 01:14:07,760
in there that there's limits to to put
on there. So, I really appreciate uh the

914
01:14:06,080 --> 01:14:11,600
information here again. And there's more
in here than I had thought of, but also

915
01:14:10,400 --> 01:14:16,080
some things in here that I was like,
"Okay, my my thinking is not wrong along

916
01:14:14,480 --> 01:14:20,239
those lines." So,
>> I do appreciate this very very good

917
01:14:18,400 --> 01:14:23,360
presentation. Thank you, Marines.
>> Well, I thank you guys for all your time

918
01:14:21,679 --> 01:14:27,920
tonight because um I'm happy you're
still awake [laughter]

919
01:14:25,520 --> 01:14:31,840
and with me. Um sometimes when I get
going on this stuff, people kind of

920
01:14:29,280 --> 01:14:36,080
gloss over and they're like, "H." So,
um, it's good to have, uh, engagement

921
01:14:33,760 --> 01:14:40,320
from the council. Is there any other
questions or

922
01:14:38,800 --> 01:14:44,480
» Thank you, Marie. All right. Thank you,
guys.

923
01:14:42,400 --> 01:14:48,080
There are no items scheduled for public
hearing this evening. We are now at

924
01:14:46,400 --> 01:14:52,000
persons to be heard. This is a time for
members of the public to share their

925
01:14:49,520 --> 01:14:55,760
views with the council. Please note that
this is not a question and answer

926
01:14:53,600 --> 01:14:59,760
period. Speakers may be referred to
administration and items raised may be

927
01:14:57,920 --> 01:15:03,280
taken under advisement. Please begin
your testimony by stating your first and

928
01:15:01,600 --> 01:15:09,960
last name. And if you are a city
resident, comments are limited to three

929
01:15:05,679 --> 01:15:09,960
minutes. Concerns.

930
01:15:14,312 --> 01:15:16,332
[cough]

931
01:15:16,560 --> 01:15:25,199
» Good evening. My name is Tom Sterns. I'm
the senior ambassador for the Wasel Area

932
01:15:21,440 --> 01:15:30,159
Seniors Incorporated. Um, and I am here
to share with you all the great things

933
01:15:27,600 --> 01:15:34,880
that are happening at Watsi. But the
first one is that we're going to be

934
01:15:32,000 --> 01:15:42,960
closed on the 7th of September. If you
can believe it, that's Labor Day. And we

935
01:15:38,400 --> 01:15:48,000
will be closed. Uh, but after Labor Day,
we have some great things that are going

936
01:15:45,120 --> 01:15:55,760
to be happening. You, I hope, got one of
these. That is our uh spring uh our

937
01:15:51,840 --> 01:16:04,159
dance. Uh it's going to be a 70s and 80s
theme. Uh and it's going to be part of

938
01:15:59,120 --> 01:16:11,360
our fall prevention program. Um and so
we're going to teach you how to dance so

939
01:16:06,880 --> 01:16:18,960
you don't fall. And uh uh and so that's
a very good uh good thing to have is uh

940
01:16:14,880 --> 01:16:26,960
then uh the next thing uh that we have
is our uh harvest fundraiser. Okay, we

941
01:16:23,920 --> 01:16:34,000
had that last year. Uh it was a great
success. We're going to have it again

942
01:16:28,480 --> 01:16:41,040
this year. Uh $50 a plate uh for the u
uh for the brunch. Uh and then we'll

943
01:16:37,199 --> 01:16:48,560
have uh all sorts of um uh things to
sell um auction off uh during that time.

944
01:16:45,679 --> 01:16:54,640
What we need you to do is read the back.
Uh and those are the things that we need

945
01:16:51,120 --> 01:17:01,679
right now. Uh we need uh different uh
things that you can uh uh uh donate so

946
01:16:58,880 --> 01:17:07,600
that we can have things to auction off.
Uh especially the folks that make

947
01:17:04,159 --> 01:17:13,440
things. if you make things uh those
would be really good things that we

948
01:17:09,440 --> 01:17:20,080
could auction off for our raffles. And
then the next thing is of course we have

949
01:17:16,640 --> 01:17:28,960
our lunch sponsorships each month uh
four uh $400 for lunch, $500 uh for

950
01:17:25,120 --> 01:17:36,080
lunch and dessert. Um since we don't do
desserts anymore. Um and then the next

951
01:17:32,880 --> 01:17:45,360
thing is
all of you are in the category except uh

952
01:17:41,120 --> 01:17:52,159
Miss Rubio. Uh uh well maybe not all of
you. All right. Some of you are are in

953
01:17:48,239 --> 01:17:59,520
the category of being a senior and we
are looking for three board members. All

954
01:17:56,159 --> 01:18:06,080
right. and these board members, there
are no incumbents. So, uh, if you're

955
01:18:02,960 --> 01:18:12,480
running, uh, you have a very good chance
of winning. Uh, and so we would like to

956
01:18:10,080 --> 01:18:17,840
encourage any of you that are interested
to, uh, get get a hold of our front desk

957
01:18:15,920 --> 01:18:22,719
and they'll give you all the things you
need to know. And then 17 September is

958
01:18:21,040 --> 01:18:25,199
our next board meeting. Thank you very
much.

959
01:18:23,120 --> 01:18:28,520
» Thank you, Tom.
Dan Kennedy.

960
01:18:30,320 --> 01:18:38,880
» Greetings, Deputy Mayor Rubio. My name
is uh Dan Kennedy. My address, 4701

961
01:18:36,640 --> 01:18:46,560
East Shoreline Circle, Wasillo. I'm a
non-resident, but I'm here this evening

962
01:18:42,560 --> 01:18:51,440
with my wife Janet
to uh thank the city. But before I uh

963
01:18:49,600 --> 01:18:57,679
let you know why we're thanking this
city, uh between Janet and myself, we've

964
01:18:54,000 --> 01:19:02,719
had 82 years as CPAs. And for decades,
our CPA office was in the Lake View

965
01:19:00,560 --> 01:19:09,760
Professional Building on Cruzy Street.
And my efforts primarily with the CPA

966
01:19:05,520 --> 01:19:15,440
firm was economic development for uh
some of our largest corporations around

967
01:19:12,719 --> 01:19:20,560
to emerging businesses.
And as past president of the Greater

968
01:19:17,520 --> 01:19:27,280
Wasola Chamber of Commerce, I've sat at
this table to your colleagues before

969
01:19:24,080 --> 01:19:34,000
you, your predecessors, and went, "Your
most valuable asset is the airport. Your

970
01:19:30,080 --> 01:19:41,360
most valuable asset is the airport." And
Janet and I wish to thank the city, your

971
01:19:37,920 --> 01:19:47,440
predecessors, to the wonderful staff of
your [snorts] organization, to our local

972
01:19:43,199 --> 01:19:55,440
government for all your work on the city
airport. Uh we're just thrilled with its

973
01:19:50,960 --> 01:20:01,920
expansion and we want to uh encourage uh
the city to maximize your revenues from

974
01:19:59,199 --> 01:20:05,840
your most valuable asset. And again on
behalf of Janet, myself, we want to

975
01:20:03,600 --> 01:20:10,159
thank the city so much for all your hard
work. There were so many people

976
01:20:07,360 --> 01:20:17,040
involved. It was a team effort to get
the airport moving towards expansion.

977
01:20:14,719 --> 01:20:20,080
And uh Deputy Mayor, that's all I have
tonight. Thank you for allowing us to

978
01:20:19,120 --> 01:20:25,600
comment.
>> Thank you, Dan.

979
01:20:23,280 --> 01:20:29,440
» We are now at the cons uh consent
agenda. Madame Clerk, please read the

980
01:20:27,280 --> 01:20:33,920
items for approval under the consent
agenda by title. Thank you, Madam Deputy

981
01:20:31,440 --> 01:20:38,480
Mayor. Uh we have one introduction uh uh
scheduled public hearing for September

982
01:20:35,679 --> 01:20:44,640
14th, 2026, ordinance serial number
2616, amending the fiscal year 2027

983
01:20:42,000 --> 01:20:49,760
budget by accepting and appropriating
and a United States Marshall Service

984
01:20:47,199 --> 01:20:54,239
short-term joint operation for sex
offender compliance verification.

985
01:20:52,719 --> 01:21:01,080
And I'm wondering if we're missing the
word grant. Maybe not. in an amount not

986
01:20:57,440 --> 01:21:01,080
to exceed $16,275,000.

987
01:21:01,520 --> 01:21:07,199
We have two resolutions left on the
consent agenda. The first is resolution

988
01:21:05,040 --> 01:21:10,960
serial number 2648
accepting a grant from the state of

989
01:21:08,800 --> 01:21:15,920
Alaska Division of Homeland Security and
Emergency Management, State Emergency

990
01:21:13,600 --> 01:21:21,679
Operations Center after hours answering
point in the amount of $87,410.

991
01:21:19,920 --> 01:21:27,440
And lastly, resolution serial number
2649 accepting an enhanced 911

992
01:21:25,199 --> 01:21:30,960
searchcharge revenue DPS call taker
grant

993
01:21:28,960 --> 01:21:36,480
from the Mountus Susetta Burough in the
amount of $43,15.

994
01:21:34,080 --> 01:21:40,400
And I apologize, I'm suffering a cold.
>> It's okay. We'll make it through it. Is

995
01:21:38,880 --> 01:21:43,360
there a motion to approve the consent
agenda as read?

996
01:21:41,440 --> 01:21:46,320
» So moved by Councilman Johnson.
>> Is [clears throat] there a second?

997
01:21:44,400 --> 01:21:50,159
» Seconded amendment. Deputy mayor. It has
been moved by council member Johnson and

998
01:21:48,159 --> 01:21:55,600
seconded by council member Cfton to
approve the consent agenda as read. Is

999
01:21:52,320 --> 01:21:59,679
there any objection to the motion?
>> Hearing none, the consent agenda is

1000
01:21:57,199 --> 01:22:02,480
approved. We are now at unfinished
business. Madame clerk, please read the

1001
01:22:01,440 --> 01:22:06,480
item by title.
>> Council, do you want me do you want to

1002
01:22:03,760 --> 01:22:08,800
take the um resolution we pulled first?
>> Sure.

1003
01:22:06,800 --> 01:22:13,520
» Okay. We'll begin with resolution serial
number 2647 approving a contract between

1004
01:22:11,760 --> 01:22:17,560
the city of Wasilla and Clear Gov
Gravity for 43,9325

1005
01:22:17,920 --> 01:22:23,760
in consideration for financial budgeting
software.

1006
01:22:21,679 --> 01:22:29,760
» Is there a motion to approve the
resolution number 26-47?

1007
01:22:26,639 --> 01:22:35,120
» Madame Deputy mayor, I move ordinance or
resolution serial number 2647.

1008
01:22:32,560 --> 01:22:38,239
» Is there a second?
>> I'll second that.

1009
01:22:36,800 --> 01:22:42,960
It has been moved by Council Member
Craftton and seconded by Council Member

1010
01:22:40,159 --> 01:22:45,960
Schmidt to approve the resolution number
26-47.

1011
01:22:46,320 --> 01:22:53,080
Is there objection to the motion?
>> Discussion or discussion? I'm sorry.

1012
01:22:53,120 --> 01:22:58,080
Deputy Mayor,
>> Council Member Craftton.

1013
01:22:55,920 --> 01:23:03,639
» Thank you. Um,
I remember I really liked this initially

1014
01:23:04,800 --> 01:23:14,320
and after the presentation I wasn't 100%
sold on it. Uh, I'm I'm a little back

1015
01:23:10,400 --> 01:23:19,199
and forth on this one. Um,
I'd be curious to hear maybe some

1016
01:23:16,639 --> 01:23:24,080
something from the administration or I
mean what the other council members

1017
01:23:20,480 --> 01:23:30,000
would have to say on this one.
>> Council member Johnson. Madame Deputy

1018
01:23:26,560 --> 01:23:35,440
Mayor and Council, um,
when when I heard about this, I mean,

1019
01:23:32,560 --> 01:23:40,480
the details of it, I I I sort of
understood the details of what it is

1020
01:23:37,280 --> 01:23:46,400
that we're trying to to get with this.
And I looked at this as, well, it's a

1021
01:23:44,159 --> 01:23:51,280
fairly expensive piece of software and
it has all these bells and whistles and

1022
01:23:48,320 --> 01:23:55,280
that it does have some advantages and
it's being recommended by the

1023
01:23:53,120 --> 01:23:59,280
administration. So I'm I'm not
automatically opposed to it. However,

1024
01:23:57,679 --> 01:24:05,360
when I went through the package and I
saw the ongoing costs at 150,000, which

1025
01:24:03,040 --> 01:24:10,560
is basically committing
essentially, not exactly, you know,

1026
01:24:07,840 --> 01:24:14,800
about $40,000 a year for continuing
software and support costs in it. I'm

1027
01:24:12,880 --> 01:24:20,239
going,
what are our options? Are we I mean, it

1028
01:24:17,360 --> 01:24:24,400
looks to me like uh we were presented
with this option. I have no other

1029
01:24:22,400 --> 01:24:32,719
options on the table and it's fairly
expensive. This isn't a cheap program.

1030
01:24:27,760 --> 01:24:38,159
Um I I guess I would really rather have
uh have us come in and look at what some

1031
01:24:35,440 --> 01:24:44,159
other options are rather than just
immediately um spending this $44,000

1032
01:24:42,560 --> 01:24:50,960
upfront and then committing another
$150,000 beyond that um with no other

1033
01:24:48,639 --> 01:24:56,639
options being laid on the table. So,
it's not that I'm against this, but I'd

1034
01:24:53,520 --> 01:25:02,920
like to see more options being presented
to us than just this. This is an

1035
01:24:59,040 --> 01:25:02,920
expensive piece of software.

1036
01:25:05,679 --> 01:25:13,280
» Madam Deputy Mayor, does our finance
director have anything to add

1037
01:25:10,239 --> 01:25:19,120
to the deputy mayor? Can you
>> Okay, go ahead.

1038
01:25:14,880 --> 01:25:25,600
Um so uh I had talked to uh former
finance director um Ted Leonard before I

1039
01:25:22,400 --> 01:25:30,480
came here and we had discussed this this
program and its capabilities of being

1040
01:25:28,400 --> 01:25:36,719
able to interact with our current
finance package the Tyler package. Um

1041
01:25:33,760 --> 01:25:42,480
this package is able to interact be able
to update at any time with the current

1042
01:25:39,600 --> 01:25:49,600
package that we have. Um, one of the
other pieces, uh, that Ted was very

1043
01:25:46,639 --> 01:26:00,159
excited about is that it would cut down
on at least, um, 200 to 240 hours of my

1044
01:25:55,679 --> 01:26:06,000
work. Um, and so what that translated
into, um, was that I looked at our

1045
01:26:03,679 --> 01:26:13,120
finance goals.
So when I look at those goals,

1046
01:26:10,080 --> 01:26:19,679
I looked at what would those cover, what
would those take care of? Because those

1047
01:26:15,040 --> 01:26:25,120
are legislative priorities. So I saw um
in goal number two

1048
01:26:22,960 --> 01:26:29,520
it would help complete the enterprise
resource system and draw in those

1049
01:26:27,280 --> 01:26:36,239
figures so that we would be able to
communicate those effectively with our

1050
01:26:32,880 --> 01:26:42,320
with our republic or with our public. Um
it would organize resources and and set

1051
01:26:39,679 --> 01:26:49,679
up a centralized communication channel
on our city's official website.

1052
01:26:46,320 --> 01:26:55,120
It would also create and implement a
communication and engagement plan to

1053
01:26:52,159 --> 01:27:02,639
strengthen outreach and improve
communication tools and networks.

1054
01:26:58,960 --> 01:27:11,199
And so with those in place, there's a
little piece that it also does that that

1055
01:27:06,000 --> 01:27:18,400
uh that clear gov does. When I look at
clear gov, I see that it can't that it

1056
01:27:14,800 --> 01:27:24,239
continues or it completes all of your
grow all your goals one and communicates

1057
01:27:21,520 --> 01:27:31,280
those to the public. Now, it doesn't
necessarily complete the 2025 2045

1058
01:27:28,320 --> 01:27:37,440
comprehensive plan, but it will put that
out onto our website and communicate

1059
01:27:34,480 --> 01:27:45,199
that to to individuals who may not quite
understand what a comprehensive 25 to 45

1060
01:27:41,600 --> 01:27:52,159
plan is. um complete the parks and rec
MA master plan. Um putting that out on

1061
01:27:48,560 --> 01:28:00,560
the on the website as well. Um there are
so many ways that this program can can

1062
01:27:56,560 --> 01:28:08,320
um can be placed out on on our website
and being able to to do what they need

1063
01:28:03,440 --> 01:28:14,880
to do. When I look at further down um
implement the airport master plan um by

1064
01:28:11,760 --> 01:28:22,719
marketing efforts, we can use that use
this program to do so. Uh as well as

1065
01:28:19,120 --> 01:28:31,360
implementing or um one of the top three
goals and is the SDS uh strategy. We can

1066
01:28:27,520 --> 01:28:36,880
put it out to promote that as well. Um,
and one of the last ones, improve

1067
01:28:34,960 --> 01:28:43,840
community connections to promote
resident well-being and understanding

1068
01:28:39,840 --> 01:28:51,040
our budget and how that impacts them. So
then I looked at how the how does this

1069
01:28:46,880 --> 01:28:58,960
free my time up? So most of you know
that I I was a city manager. So I I was

1070
01:28:55,199 --> 01:29:04,560
in charge of a city. I can tell you that
in my past practice, I did all of goal

1071
01:29:02,159 --> 01:29:13,520
three.
If I am freed up to do to do the finance

1072
01:29:10,080 --> 01:29:18,560
part of it and get, you know, get those
parts taken care of and be able to

1073
01:29:16,400 --> 01:29:25,120
function with that.
I can do all number three for you with

1074
01:29:20,960 --> 01:29:30,639
our department heads. I number four I
can get that. All of these can get put

1075
01:29:27,199 --> 01:29:35,120
on the website as well with clear gov.
Um, you know, just interacting with our

1076
01:29:33,600 --> 01:29:40,800
departments and getting these
individually things done. I've worked

1077
01:29:37,600 --> 01:29:47,360
with our departments for legislation and
continue to do so. Um, I don't know that

1078
01:29:43,920 --> 01:29:53,920
Eric was that done before.
>> I've been working with Lori. So, that

1079
01:29:50,080 --> 01:30:01,360
was that was also done before. Um, also
I did a little experiment. Um, so I went

1080
01:29:58,080 --> 01:30:09,840
to co-pilot and chat GPT and I dropped
our budget into it. Um, the 2027 budget

1081
01:30:06,480 --> 01:30:16,280
just to see what we would get out of it.
Um, for for those two packages,

1082
01:30:16,639 --> 01:30:22,880
the reading came back that it was too
large.

1083
01:30:20,239 --> 01:30:29,360
So when we have people who are asking
make make our uh I want to see what's

1084
01:30:26,560 --> 01:30:34,239
important to the city of Osilla but I
want to put it into a chat GPT and

1085
01:30:32,880 --> 01:30:39,760
figure that out for me because I don't
want to deal with that when they come in

1086
01:30:37,120 --> 01:30:47,280
and they say that that's too large
that's not helpful for our budget. So I

1087
01:30:43,280 --> 01:30:53,280
went to another chat BT and did a G a
Gemini. I went to Gemini,

1088
01:30:50,639 --> 01:31:04,080
put that in. It said it was too large
and asked me to put put the um put the

1089
01:30:57,360 --> 01:31:10,719
URL in. I put the URL in asking for 2027
and got the numbers back and I thought

1090
01:31:06,880 --> 01:31:18,320
that's really funny because
I know that the police budget was 9.7

1091
01:31:14,960 --> 01:31:23,920
million, not 9.3.
And I look back and Gemini has the last

1092
01:31:21,679 --> 01:31:28,400
year's budget in there.
So, we're looking at a pro, you know,

1093
01:31:26,239 --> 01:31:35,520
even though these
chat GPTs and all these AIs are great,

1094
01:31:32,239 --> 01:31:42,320
there's still errors in them that people
have to still look and catch. And I

1095
01:31:39,679 --> 01:31:47,520
really believe with this project, with
this program,

1096
01:31:44,800 --> 01:31:53,760
we can make that happen and we can do
these things and get these things done

1097
01:31:50,560 --> 01:31:58,320
on the on the that were part of your
fiscal goals that you set.

1098
01:31:56,400 --> 01:32:03,120
» Madame Mayor, a follow-up question,
Wendy, I agree with everything you said.

1099
01:32:00,239 --> 01:32:08,000
Okay. That wasn't my question.
>> Okay. The question is we're we're

1100
01:32:05,760 --> 01:32:12,960
committing to clear gov which is a
software vendor. My son is a software

1101
01:32:10,960 --> 01:32:21,199
provider for a different company who
works out of Atlanta. Okay. You are

1102
01:32:16,320 --> 01:32:27,360
asking us to on a single soul source bid
buy a piece of software for $44,000

1103
01:32:24,719 --> 01:32:32,239
with I would like to have seen a
competitive bid from possibly one or two

1104
01:32:29,760 --> 01:32:35,840
other companies for the exact kind of
source software. Now, you might still

1105
01:32:34,000 --> 01:32:40,800
end up with Clear Gov because it might
still be the best solution. But I'll

1106
01:32:38,560 --> 01:32:46,159
tell you right now, from my perspective,
$44,000 a year is a lot of money to be

1107
01:32:44,400 --> 01:32:50,400
spending in the software on an
uncompetitive bid. That's really what I

1108
01:32:48,800 --> 01:32:54,480
would like to see. I would like to see
you come back with one or two other

1109
01:32:52,560 --> 01:32:58,639
vendors saying, "These are what the
vendors will do. We ranked these vendors

1110
01:32:56,800 --> 01:33:03,840
based on their capability, and we
selected Clear Gov." Okay, that's what

1111
01:33:01,440 --> 01:33:08,880
I'd really like to see before you can
really sell me on this on this vote.

1112
01:33:06,800 --> 01:33:13,040
It's I agree with everything you say. We
need to do all of those things,

1113
01:33:11,144 --> 01:33:18,000
[clears throat] but I feel like we're
not being given enough information to

1114
01:33:15,840 --> 01:33:21,000
really make a large commitment like
this.

1115
01:33:21,199 --> 01:33:30,000
» Council member Schmidt,
>> just a quick question uh follow up on

1116
01:33:26,000 --> 01:33:35,840
that. Did you use um this program at the
small town that you come from?

1117
01:33:32,719 --> 01:33:39,040
» We did not. We were we were too small.
Our budget was only 10 million.

1118
01:33:37,999 --> 01:33:44,400
[laughter]
We did not use that.

1119
01:33:42,000 --> 01:33:48,800
» Have you um experienced any other
programs or did you just manually do it

1120
01:33:46,480 --> 01:33:54,960
all with the programs that you had? I
what I did is I went on the Matsu burrow

1121
01:33:52,239 --> 01:34:01,840
and used their program and asked some
really convoluted questions and didn't

1122
01:33:58,880 --> 01:34:06,880
think it would be able to pull out what
I was in, you know, what I was trying to

1123
01:34:04,560 --> 01:34:11,280
get out of it and and I was able to pull
that information.

1124
01:34:09,840 --> 01:34:15,920
Okay.
>> Council member Codle, do you have any

1125
01:34:13,199 --> 01:34:22,800
questions?
Thank you, Madam Deputy Mayor. Um, I did

1126
01:34:18,800 --> 01:34:28,639
a lot of research into this program and
being someone who's been in accounting

1127
01:34:24,960 --> 01:34:35,040
and finance for years, this program to
me check the boxes and um, I'm in favor

1128
01:34:32,880 --> 01:34:40,880
of going ahead with this because it does
what we're looking for it to do and it

1129
01:34:37,520 --> 01:34:47,280
will be um, I think a time-saving tool
for us and it will in the long run have

1130
01:34:45,280 --> 01:34:52,880
a lot less human error because we're not
having to pull information and put it

1131
01:34:50,480 --> 01:34:58,239
back into numerous places where this
program will put it all in there. So,

1132
01:34:55,199 --> 01:35:05,360
I'm in favor of that.
>> Thank you, Council Member Graham.

1133
01:35:00,800 --> 01:35:09,679
» Thank you. So, Wendy, I'm looking at the
page 20 of the Clear Gov software

1134
01:35:07,760 --> 01:35:13,840
proposal, which I think is attachment A
to this

1135
01:35:11,520 --> 01:35:20,320
um
ordinance that we have before us. But

1136
01:35:16,639 --> 01:35:28,400
essentially it says uh you know 9 months
prorated cost was about $30,000.

1137
01:35:23,760 --> 01:35:33,199
Uh you know so uh 12 months would be you
know about what you see down below when

1138
01:35:31,280 --> 01:35:41,120
it talks about what we would owe in July
of 2027 which is you know $40,000. Then

1139
01:35:36,719 --> 01:35:47,600
it goes up 5% a year. Is that 5%
increment? Is that pretty standard with

1140
01:35:44,159 --> 01:35:50,639
» with, you know, software renewals and
things like that? I mean, at this point,

1141
01:35:48,960 --> 01:35:55,120
I mean, we've we've already kind of sunk
a bunch of money into

1142
01:35:52,960 --> 01:35:58,320
uh, you know, the setup of this trying
to figure out if it's going to do what

1143
01:35:56,480 --> 01:36:04,000
it's going to do. But, but I mean, is
that 5% a year? Is that is that a normal

1144
01:36:01,920 --> 01:36:07,760
escalation factor, you think, or
>> it is postco?

1145
01:36:06,560 --> 01:36:14,080
I would say yes.
>> Okay. Thank you.

1146
01:36:10,960 --> 01:36:19,360
because people are really it used to be
two to 3% but now that people or

1147
01:36:17,360 --> 01:36:25,960
companies
have experienced COVID they do 5% just

1148
01:36:22,719 --> 01:36:25,960
in case

1149
01:36:27,040 --> 01:36:34,080
» Wendy I do have a question for you
>> um I am in favor of this program but

1150
01:36:32,000 --> 01:36:37,199
does your department plan on
implementing this software for this

1151
01:36:36,000 --> 01:36:40,639
coming budget
>> yes

1152
01:36:38,320 --> 01:36:44,840
» so the time lead on that is Good.
>> Yes.

1153
01:36:41,840 --> 01:36:44,840
» Okay.

1154
01:36:45,119 --> 01:36:54,000
» Council member Graham.
>> Thank you. And uh I I too am in favor of

1155
01:36:50,800 --> 01:36:58,320
this proposal here. You know, Cleargov
is one of those organizations

1156
01:36:56,320 --> 01:37:03,520
uh that goes to the Alaska Municipal
League uh annual conferences every year

1157
01:37:00,960 --> 01:37:08,159
and gives us plenty of time to talk to
them and talk to their competitors or I

1158
01:37:06,320 --> 01:37:14,000
wouldn't even say competitors, but
people offering similar solutions, you

1159
01:37:11,440 --> 01:37:17,679
know, and and each of those solutions is
uniquely different. uh and I think

1160
01:37:16,239 --> 01:37:21,920
that's why we have a soul source
contract here because we're looking for

1161
01:37:19,280 --> 01:37:28,159
a specific solution with you know
specific results here and so while I'm

1162
01:37:25,760 --> 01:37:33,679
not a big believer in soul source
contracts in this case uh you know to

1163
01:37:30,639 --> 01:37:37,199
get uh you know exactly what we're
looking for as close to what we're

1164
01:37:34,960 --> 01:37:44,560
looking for as possible I think soul
sources is the only way to go so I'm in

1165
01:37:39,440 --> 01:37:48,159
favor of this uh u action here tonight
>> council Member Craftton.

1166
01:37:45,920 --> 01:37:50,880
» Thank you, Madam Deput. Uh, I guess just
kind of a blunt question. Do you believe

1167
01:37:49,280 --> 01:37:53,440
this would be the best option at the
best price that we have available for

1168
01:37:52,639 --> 01:37:58,320
us?
>> I believe so.

1169
01:37:55,760 --> 01:38:03,840
» Can I say yes?
>> Is there further discussion?

1170
01:38:01,199 --> 01:38:07,360
Is there objection to the motion?
>> Yes.

1171
01:38:05,119 --> 01:38:12,480
» Roll call vote.
>> Council, this is on the adoption of

1172
01:38:09,119 --> 01:38:15,679
resolution serial number 2647.
Council member Codle, we'll start with

1173
01:38:14,000 --> 01:38:17,760
you.
Yes.

1174
01:38:16,400 --> 01:38:19,679
» Council member Graham.
>> Yes.

1175
01:38:18,239 --> 01:38:21,440
» Council member Schmidt.
>> Yes.

1176
01:38:20,239 --> 01:38:23,119
» Council member Craftton.
>> Yes.

1177
01:38:21,920 --> 01:38:25,360
» Council member Johnson.
>> No.

1178
01:38:23,679 --> 01:38:27,600
» Uh Deputy Mayor Rubio.
>> Yes.

1179
01:38:25,840 --> 01:38:32,800
» The motion to adopt resolution serial
number 2647 passes with council members

1180
01:38:30,400 --> 01:38:37,960
Codle, Graham, Schmidt, Craftton, and
Rubio in support. Council member Johnson

1181
01:38:34,960 --> 01:38:37,960
opposed.

1182
01:38:38,560 --> 01:38:44,239
» Okay.
Next resolution is resolution serial

1183
01:38:41,679 --> 01:38:48,239
number 2646 approving priority
transportation projects for nomination

1184
01:38:46,480 --> 01:38:53,920
to the Matsu Valley Planning for
Transportation 2027 through 2030

1185
01:38:52,000 --> 01:38:58,159
transportation improvement program
affirming the city's commitment to

1186
01:38:55,520 --> 01:39:01,920
provide the required non-federal share
for projects selected for federal

1187
01:39:00,159 --> 01:39:05,119
funding and authorizing their submittal
to the MVP.

1188
01:39:03,679 --> 01:39:08,560
» Madam Deputy Mayor, can we take a
fiveminute recess before we dive into

1189
01:39:06,639 --> 01:39:14,673
this one?
Yes. So, it's 7:39. So, we will be back

1190
01:39:12,159 --> 01:39:16,693
at 7:44.
[clears throat]

1191
01:39:21,199 --> 01:39:27,000
» Sorry. [laughter]
>> I'm not worried.

1192
01:45:34,159 --> 01:45:40,719
discussion.
>> Mayor's gone.

1193
01:45:38,000 --> 01:45:44,239
» We're back on the record at 7:45. Is
there discussion?

1194
01:45:42,719 --> 01:45:48,159
» Madam Deputy Mayor,
>> Council Member Craftton,

1195
01:45:45,600 --> 01:45:51,360
» thank you. Um,
appreciate the council for giving us a

1196
01:45:49,679 --> 01:45:57,880
little bit more time to to look this
over. Uh, I had spoken with a a

1197
01:45:58,480 --> 01:46:04,440
» We're back on the record at 7:45. Is
there discussion?

1198
01:46:05,280 --> 01:46:10,480
» Uh, I'd asked the attorney just one
question. And I had two two concerns

1199
01:46:09,199 --> 01:46:15,840
with this, but the big one I wanted to
ask was just a clarifying point around

1200
01:46:12,639 --> 01:46:20,480
some of the whereas clauses because part
of the way it reads is that it sounds

1201
01:46:17,679 --> 01:46:24,880
like we're being bound
uh to certain dollar amounts because

1202
01:46:23,840 --> 01:46:30,400
we're saying, "Hey, we're going to
commit these projects and these projects

1203
01:46:27,600 --> 01:46:32,960
come with a cost and so we're going to
we're going to be putting forward those

1204
01:46:31,840 --> 01:46:36,480
dollars." And so I just wanted to
clarify with the attorney that's not the

1205
01:46:35,119 --> 01:46:40,159
case because that's not possible.
>> Yeah. No, it's it's not binding. And

1206
01:46:38,239 --> 01:46:43,760
there's two reasons. And one, I'm glad
you asked me before the meeting so I

1207
01:46:42,000 --> 01:46:52,320
could, you know, look through and
process this, but um with the Matsu uh

1208
01:46:48,159 --> 01:46:57,040
planning uh group here,
it's not binding in itself. This is just

1209
01:46:54,719 --> 01:47:01,360
saying this is a priority.
We have an idea it's going to cost

1210
01:46:58,560 --> 01:47:06,639
around this and there's going to be a
contribution.

1211
01:47:03,440 --> 01:47:10,639
But these are just estimates whenever it
gets and gets federally funded, those

1212
01:47:08,400 --> 01:47:14,719
numbers are likely to change. Then you
have to go through the whole contracting

1213
01:47:12,400 --> 01:47:19,280
process and approve contracts as it goes
along. This is just kind of saying we're

1214
01:47:17,760 --> 01:47:23,040
going through this with the the
knowledge we may have to pay that

1215
01:47:20,880 --> 01:47:27,440
portion. I don't know whether that's
required under the federal law or that's

1216
01:47:24,719 --> 01:47:31,440
just strictly the Matt Sue requirement.
So no one can come in and say, "Oh yeah,

1217
01:47:29,520 --> 01:47:37,679
we wanted that really big project, but
now that you tell us we have to pay part

1218
01:47:33,040 --> 01:47:42,480
of it, we're not interested." Um
second part of it is in the whereas

1219
01:47:39,840 --> 01:47:47,040
clause it's certainly not my whereas is
just saying this is conditions today

1220
01:47:44,800 --> 01:47:50,400
whereas crime is out of control I'm
binding you the crime will stay out of

1221
01:47:48,639 --> 01:47:57,360
control it's just saying this is why we
are doing this and um if the feds were

1222
01:47:55,360 --> 01:48:02,639
to change it and not require any kind of
matching funds you're not obligated to

1223
01:48:00,159 --> 01:48:08,239
it either at that point. So, it's it's
just really kind of um

1224
01:48:06,320 --> 01:48:11,040
city's acknowledging it knows that this
project [clears throat] goes ahead, it's

1225
01:48:09,679 --> 01:48:17,040
going to have to be looking for funding
for project as the rules stand today in

1226
01:48:14,320 --> 01:48:24,159
warehouse clause.
>> Thank you. Uh another question I have uh

1227
01:48:20,239 --> 01:48:28,960
not to the attorney here, but just um
I I really like a lot of these projects.

1228
01:48:26,800 --> 01:48:35,199
Uh, I really only have one project
that's a bit concerned on moving forward

1229
01:48:31,520 --> 01:48:36,800
and I know we've got uh I'm sorry I
forgot your name.

1230
01:48:36,320 --> 01:48:42,000
» Kim.
>> Kim here. Uh, could we have her come

1231
01:48:40,159 --> 01:48:45,679
forward? I'm I'm just curious about
project what would be considered ID

1232
01:48:44,080 --> 01:48:50,159
number 19. It's the Seward Meridian
Parkway to Sun Mountain connection.

1233
01:48:48,480 --> 01:48:55,119
Could
we have somebody speak to what it would

1234
01:48:52,080 --> 01:48:59,440
look like if we have if we move forward
a project like this that that has no

1235
01:48:57,840 --> 01:49:02,000
platted ride of the bike, especially
because it's a high priority. There's

1236
01:49:00,639 --> 01:49:05,760
another one on here, but it's down the
road. So, I mean, that one can

1237
01:49:03,600 --> 01:49:10,239
completely change, but we're we're
committing to trying to move forward a

1238
01:49:08,080 --> 01:49:16,920
project that has no right of way right
now, which it it to me is con

1239
01:49:13,920 --> 01:49:16,920
concerning.

1240
01:49:18,639 --> 01:49:27,920
Uh yeah through deputy mayor um Rubio I
can answer that. So the idea like we

1241
01:49:24,560 --> 01:49:34,239
talked about the last meeting was the um
extreme impact that the alpine

1242
01:49:30,480 --> 01:49:39,920
connection at parks and sun mountain has
for um safety concerns. So the idea

1243
01:49:37,440 --> 01:49:45,040
would be to find a rideway that works
with all of the land owners at the end

1244
01:49:42,080 --> 01:49:50,400
of Sun Mountain. It could be multiple
things. It could be um using uh

1245
01:49:48,080 --> 01:49:53,840
purchasing some land from either one of
the property owners at the end of the

1246
01:49:52,000 --> 01:49:58,639
culde-sac and getting down to super
marine. It could be buying a home in

1247
01:49:56,400 --> 01:50:03,119
Whispering Woods neighborhood and making
a thoroughfare into the Whispering Woods

1248
01:50:00,960 --> 01:50:10,239
neighborhood. There needs to be some
sort of uh connection between Sun

1249
01:50:06,560 --> 01:50:16,320
Mountain and another thoroughfare that
allows for a safe transition if people

1250
01:50:12,560 --> 01:50:21,840
are trying to go uh left or or inbound
on the parks. And so the ultimate

1251
01:50:19,440 --> 01:50:26,239
alignment doesn't exist right now, of
course, because it all of the options

1252
01:50:23,840 --> 01:50:32,639
need to be evaluated. But the request
needed a line on a map, so we drew one.

1253
01:50:29,440 --> 01:50:38,320
But the ultimate way to uh mitigate some
of those major safety concerns is to

1254
01:50:36,000 --> 01:50:43,440
give people a safe and convenient way so
that they don't choose unsafe turning

1255
01:50:40,159 --> 01:50:49,119
movements to get uh back onto the parks
to go inbound to Anchorage. So this

1256
01:50:46,320 --> 01:50:54,880
project would allow for the initial
planning and then uh moving into the

1257
01:50:52,000 --> 01:51:01,159
design to make that connection to reduce
those accidentprone intersections.

1258
01:50:58,159 --> 01:51:01,159
Council

1259
01:51:03,360 --> 01:51:13,920
member Graham.
>> Thank you. So, I'm looking at the last

1260
01:51:09,280 --> 01:51:19,040
paragraph on page 121 here. Says MVP has
requested that each member jurisdiction

1261
01:51:15,679 --> 01:51:23,400
adopt a resolution formally nominating
its priority projects.

1262
01:51:23,520 --> 01:51:30,400
Where how did these become priority
projects? This is the first time we as a

1263
01:51:28,080 --> 01:51:35,119
city council have heard of some of these
projects. So, how did this how did these

1264
01:51:32,320 --> 01:51:42,400
become priority projects out of that
list of projects that we saw 30 or 40

1265
01:51:39,040 --> 01:51:47,199
deep? How did these become the city's
priority projects?

1266
01:51:45,360 --> 01:51:54,159
I mean, is is this just a list that the
mayor and Eric came up with? What where

1267
01:51:52,400 --> 01:51:59,639
what makes these priority projects?
because some of these look pretty milk

1268
01:51:55,760 --> 01:51:59,639
coast to me. I mean, they're

1269
01:51:59,679 --> 01:52:06,480
» um hi uh Kim Solian, executive director
of Mats Valley Planning for

1270
01:52:03,760 --> 01:52:12,800
Transportation. I'll answer a portion of
that question and then I'll defer to

1271
01:52:08,560 --> 01:52:18,080
Eric. Um so, as a metropolitan planning
organization, we're supposed to create a

1272
01:52:14,800 --> 01:52:24,639
process um by which local governments
can um apply for projects. Those

1273
01:52:21,599 --> 01:52:29,440
projects need to be evaluated on a
metrics that looks at, you know, we

1274
01:52:27,040 --> 01:52:35,840
established goals uh for our long range
plan and then we establish criteria um

1275
01:52:32,960 --> 01:52:39,840
to evaluate projects on whether or not
they would help us meet the goals that

1276
01:52:37,520 --> 01:52:45,360
we established for the long range plan.
And so once we figured that piece out,

1277
01:52:43,199 --> 01:52:51,440
after we assessed the transportation
network and identified deficiencies um

1278
01:52:48,320 --> 01:52:56,000
and needs um we did a call for projects.
So if you remember, I was here in

1279
01:52:53,199 --> 01:53:00,639
January and let you know that we were
issuing our formal call for projects.

1280
01:52:57,920 --> 01:53:05,119
There would be a 30-day um nomination
window and that we were requesting local

1281
01:53:02,960 --> 01:53:10,320
jurisdictions apply for projects. So I
let you all know about that process. it

1282
01:53:07,119 --> 01:53:16,639
was on our website and it had um the
project nomination form and then during

1283
01:53:13,679 --> 01:53:21,040
that 30 way day window um the city of
Palmer the Matsubo and the city of

1284
01:53:18,480 --> 01:53:25,840
Wasilla did nominate uh a number of
projects and I will pause there I guess

1285
01:53:24,159 --> 01:53:28,320
I'll say one more thing so once we
received [snorts] all of the

1286
01:53:26,838 --> 01:53:32,000
[clears throat] nominations we vetted
each project to make sure they were

1287
01:53:29,840 --> 01:53:37,280
eligible for federal funding and then we
went about applying the scoring criteria

1288
01:53:35,199 --> 01:53:42,080
to each project and and then assigning a
score to each project and then that's

1289
01:53:39,280 --> 01:53:49,360
what the numeric order is that you see
um in your resolution in terms of what

1290
01:53:45,760 --> 01:53:54,239
score each project received.
>> Yeah. And I understand that process and

1291
01:53:52,080 --> 01:53:58,480
but I'm just curious how did these
become our

1292
01:53:56,880 --> 01:54:02,880
when I say our I mean the city of
Wasilla's priority projects. I mean, one

1293
01:54:01,119 --> 01:54:06,960
of these projects here is to build a
sidewalk

1294
01:54:04,480 --> 01:54:14,320
uh from a senior community to collect to
connect, you know, uh to a bike path,

1295
01:54:10,800 --> 01:54:18,159
which is rarely used. I I I
I'm just kind of curious, how did how

1296
01:54:16,639 --> 01:54:21,679
did these things become priority
projects?

1297
01:54:19,360 --> 01:54:28,880
» Thank you. Through the deputy mayor. Um
so knowing what the um scoring criteria

1298
01:54:25,920 --> 01:54:34,000
were for the MP MVP's review and looking
at the needs as we received from public

1299
01:54:30,880 --> 01:54:39,440
comments and from known projects. We
balanced what we thought would be

1300
01:54:36,320 --> 01:54:45,760
eligible through that program versus our
larger list of needs that we know about

1301
01:54:41,599 --> 01:54:51,440
from repaving to um completing projects.
We knew that the uh pedestrian

1302
01:54:48,239 --> 01:54:56,000
connections would um
um compete very well numerically as we

1303
01:54:54,159 --> 01:55:00,159
saw we had the number one place because
of that. Um if you recall the so the

1304
01:54:58,320 --> 01:55:04,000
Elorn project that you're talking about
that came directly out of public

1305
01:55:01,679 --> 01:55:07,119
comments from Mr. Don Shishel that came
in and talked about that. He'd also

1306
01:55:05,840 --> 01:55:11,599
called and some other neighborhood
members called. So these projects that

1307
01:55:09,599 --> 01:55:16,480
were brought to us communitywise played
well into the numbers. And then the

1308
01:55:14,480 --> 01:55:22,719
long-term ones that we talked about with
um the connection to the um Sun Mountain

1309
01:55:20,960 --> 01:55:26,880
to Steuart Meridian, that's been a
long-standing issue that we've been uh

1310
01:55:24,560 --> 01:55:31,440
coordinating with the burrow on and then
the police department with a number of

1311
01:55:28,400 --> 01:55:36,800
accidents. And then um as we've gone
through the uh railroad relationships

1312
01:55:34,000 --> 01:55:42,719
with like Snyder Crossing and then some
other um known gaps in our

1313
01:55:39,520 --> 01:55:48,719
infrastructure um that's where the uh
what are we calling it? The railroad

1314
01:55:44,560 --> 01:55:51,599
avenue to um
oh I forget the name of the other street

1315
01:55:50,239 --> 01:55:56,480
that the fourth project that's on the
list. those came from being uh long-term

1316
01:55:54,560 --> 01:56:03,040
plans that we needed help with and then
the short-term uh pedestrian um uh

1317
01:56:00,639 --> 01:56:08,000
connections. So, in general, I built the
list, vetted it through the mayor, and

1318
01:56:05,360 --> 01:56:12,000
picked the ones that would compete well
numerically, and that's how the list

1319
01:56:09,840 --> 01:56:17,920
came out this round. Now, one of the
things that we've been working through

1320
01:56:13,360 --> 01:56:22,320
with the MO is um the burough assembly
has echoed some of the concerns you've

1321
01:56:19,760 --> 01:56:26,320
had where they didn't feel like they had
an opportunity to to review the list

1322
01:56:24,400 --> 01:56:29,440
either. And so, at the technical
committee and the policy board meeting,

1323
01:56:28,000 --> 01:56:34,320
we talked about that. And there's going
to be some tweaks on the timeline so

1324
01:56:32,239 --> 01:56:39,520
that um elected officials such as
yourself see a more official review

1325
01:56:37,199 --> 01:56:43,440
before the resolutions of support are
asked for. And maybe Kim, you could talk

1326
01:56:41,599 --> 01:56:46,000
a little bit about kind of the feedback
we've gotten at the last couple

1327
01:56:44,800 --> 01:56:51,199
meetings.
>> Yeah, absolutely. Um, we did hear like

1328
01:56:48,639 --> 01:56:55,920
Eric said from um, you know, Matt
Subaro's staff that when I presented

1329
01:56:53,520 --> 01:56:59,599
this same presentation to the assembly
that some of the assembly members had

1330
01:56:57,599 --> 01:57:04,560
never seen the list before. So moving
forward, we are going to develop a

1331
01:57:01,199 --> 01:57:10,159
policy um that requires prior to project
nomination in the future that um local

1332
01:57:08,159 --> 01:57:14,800
uh city councils and the Matsubber
Assembly have a chance to review what

1333
01:57:12,719 --> 01:57:19,440
staff are recommending to move forward
and have a process so that when projects

1334
01:57:16,960 --> 01:57:25,840
are nominated um it has already gone
through an initial review um from the

1335
01:57:22,320 --> 01:57:30,560
local governing bodies. Um, and that's
just one of the things we're going to

1336
01:57:27,360 --> 01:57:35,520
put in place to help prevent a s any
surprises when we get to this phase

1337
01:57:32,800 --> 01:57:40,639
because where we are now as we in order
to program our tip and decide where the

1338
01:57:39,040 --> 01:57:46,639
funding is going to go, we need that
approval from the local government. Um,

1339
01:57:42,960 --> 01:57:50,639
so we need to document that there is um
the that the projects are being formally

1340
01:57:48,639 --> 01:57:53,599
nominated by the local jurisdiction in
our TIP. that's one of the federal

1341
01:57:51,840 --> 01:57:58,880
requirements and that we can show that
there's um the the funds are reasonably

1342
01:57:56,800 --> 01:58:03,280
available. So that's the two things that
your resolution is doing. Say we ad we

1343
01:58:01,840 --> 01:58:07,760
agree that these are the projects that
we would like to nominate and um if the

1344
01:58:06,080 --> 01:58:11,199
project is selected for funding that
we'll commit the match. So that's part

1345
01:58:09,599 --> 01:58:13,920
of our documentation to federal
highways.

1346
01:58:12,560 --> 01:58:18,080
» Council member Graham.
>> Thanks. So,

1347
01:58:16,400 --> 01:58:22,880
you know, the the committing to the
federal match, uh, you know, is not

1348
01:58:21,280 --> 01:58:28,000
something the administration could do.
It's something that the council has to

1349
01:58:25,040 --> 01:58:33,040
provide funding for. So, in future, you
know, and this is a fiveyear project,

1350
01:58:30,800 --> 01:58:38,159
three year, four-year project. So, you
know, future council may say, you know,

1351
01:58:35,840 --> 01:58:43,840
I don't want to spend $500,000 on this
project. We need to spend $500,000

1352
01:58:41,520 --> 01:58:48,080
on a different project. And so the
council may say, "No, we're not going to

1353
01:58:46,159 --> 01:58:52,880
we're not going to do that project." And
how does that affect the process?

1354
01:58:51,199 --> 01:58:59,119
» That's a great question. Sorry, I forgot
my protocol. Through the deputy mayor to

1355
01:58:55,520 --> 01:59:06,000
council member Graham. Um so projects
have either a four or a six-year

1356
01:59:01,280 --> 01:59:11,040
lifespan. Um with some exceptions. So,
one of the jobs that staff have is to

1357
01:59:08,239 --> 01:59:16,719
figure out with our limited funding. Um,
we'll have about $7 million a year to to

1358
01:59:14,320 --> 01:59:21,920
program. We'll have to decide which
projects go first, second, third, and

1359
01:59:19,679 --> 01:59:27,679
when their start year happens and when
their construction year happens. So if

1360
01:59:25,280 --> 01:59:34,639
we program some of the city of Wasilla's
projects in the first year, um very soon

1361
01:59:32,159 --> 01:59:38,960
some probably early you know January,
February, March, the DOT will come

1362
01:59:36,880 --> 01:59:43,520
forward and be looking to work with you
on match and maintenance agreements. So

1363
01:59:41,040 --> 01:59:49,760
what if that number one project is going
forward you whoever the body is at that

1364
01:59:46,800 --> 01:59:55,679
time will be committing to paying the
match and maintaining the project over

1365
01:59:52,400 --> 02:00:00,960
its lifespan. Um, if at that time you
decide we don't want to do that project,

1366
01:59:58,800 --> 02:00:05,119
then you would say that and then we
would amend our tip and remove that

1367
02:00:03,280 --> 02:00:10,960
project. It would no longer be eligible
for funding. So, we anticipate having to

1368
02:00:08,000 --> 02:00:16,000
update our tip probably annually, maybe
a couple times a year, hopefully not to

1369
02:00:13,199 --> 02:00:21,280
remove the projects that some that have
been prioritized, but that is certainly

1370
02:00:18,000 --> 02:00:26,400
how we would handle that.
And so the overall amount that $7

1371
02:00:23,840 --> 02:00:31,119
million a year would remain unchanged.
It's just [clears throat] up to the

1372
02:00:27,199 --> 02:00:36,480
board to figure out what new priorities
would be with the project if it's not

1373
02:00:33,440 --> 02:00:45,520
approved by the local governing body.
>> So if um so the federal highway funding

1374
02:00:41,599 --> 02:00:48,719
bill does change every four years and we
don't have a new one yet. So we could

1375
02:00:47,199 --> 02:00:52,159
get more funding, but seven million is
what we're working with now and that's

1376
02:00:49,920 --> 02:00:58,159
what we're using to program um our
current TIP. So if we program our TIP

1377
02:00:55,760 --> 02:01:03,599
and let's say two of the city of Wasilla
projects go forward um and they are

1378
02:01:00,639 --> 02:01:07,679
proposing to start in year one and be
constructed in year four, we would be

1379
02:01:05,440 --> 02:01:12,719
having that conversation this coming
year about your commitment. And then if

1380
02:01:11,040 --> 02:01:18,320
another one of your projects is going
forward in year three and construction

1381
02:01:15,760 --> 02:01:23,280
wouldn't start until the future tip,
we'd be having that conversation in year

1382
02:01:20,159 --> 02:01:27,199
three. So you will get another um bite
at the apple, so to speak, to affirm

1383
02:01:25,360 --> 02:01:31,599
that you do want to move forward this
project. But our assumption is if you're

1384
02:01:29,360 --> 02:01:36,080
putting the projects in your resolution,
um that's giving us the go-ahad to

1385
02:01:33,920 --> 02:01:40,400
program that tip. and when we come back
or when the DOT comes back to you for um

1386
02:01:38,560 --> 02:01:45,040
those match and maintenance agreements,
you've committed to that. But we there

1387
02:01:42,480 --> 02:01:50,159
is an escape clause um if the future
council decides they need that.

1388
02:01:47,920 --> 02:01:55,199
I will say once you start once we start
spending federal money, [clears throat]

1389
02:01:53,360 --> 02:02:00,000
if you change your mind and decide you
no longer want to do the project, you

1390
02:01:56,880 --> 02:02:04,080
will have to pay the money back.
So that's

1391
02:02:02,159 --> 02:02:08,080
» so two
uh

1392
02:02:05,679 --> 02:02:12,960
follow-ups on that. So at the last
meeting I had asked for something kind

1393
02:02:10,639 --> 02:02:17,440
of showing what these projects were and
I got for tonight's meeting I got the

1394
02:02:15,360 --> 02:02:22,800
same map that we got at the last time we
talked about this. Is there a website

1395
02:02:19,679 --> 02:02:27,199
that shows the conceptual plan for this?
I mean how many feet of sidewalk are we

1396
02:02:24,800 --> 02:02:32,239
building? How many where exactly is that
sidewalk going to go? What right away

1397
02:02:29,119 --> 02:02:37,360
are we concerned about? I mean, not,
you know, I don't want to see an eight

1398
02:02:34,960 --> 02:02:41,360
page, you know, a blueprint of what's
going on here, but I would like to know

1399
02:02:39,520 --> 02:02:45,760
where these things are going. What is
the proposed route, you know, to get uh,

1400
02:02:44,400 --> 02:02:50,480
you know, the project that we were
talking about, the sewer meridian

1401
02:02:46,960 --> 02:02:55,760
project, what where is this Elhorn
sidewalk going? Those sorts of things.

1402
02:02:52,880 --> 02:02:59,760
Is there a website that I can look at? I
know with DOT projects, I can go and

1403
02:02:57,599 --> 02:03:04,239
look at the DOT, you know, couplet
project and shows me all sorts of stuff

1404
02:03:01,840 --> 02:03:09,280
and has for years. I mean, is there a
similar

1405
02:03:05,920 --> 02:03:12,239
method uh for getting into these uh MVP
projects?

1406
02:03:10,000 --> 02:03:17,199
» That's a great question through the um
deputy mayor to council member Graham.

1407
02:03:14,639 --> 02:03:23,040
Not yet because the projects aren't
official projects. So once the tip gets

1408
02:03:20,560 --> 02:03:29,040
programmed and the tip gets approved um
the DOT has a multi-phase process to

1409
02:03:26,880 --> 02:03:34,080
developing a project and the first phase
is doing that um the environmental

1410
02:03:31,599 --> 02:03:41,840
review right away research and
acquisition phase and documentation um

1411
02:03:37,440 --> 02:03:47,920
uh the planning level design and then um
once they get that those pieces updated

1412
02:03:45,040 --> 02:03:52,800
then you will have that fuller picture
of what the project is, where is the

1413
02:03:49,840 --> 02:03:59,199
exact alignment, what the what the cost
is proposed to be. Um, so that's part of

1414
02:03:56,159 --> 02:04:04,239
the first phase of project development.
So because these projects were just

1415
02:04:01,840 --> 02:04:09,760
nominated to us, we took the information
that was provided by the nominators and

1416
02:04:07,199 --> 02:04:14,239
then DOT used that information to
develop uh planning level cost estimates

1417
02:04:12,320 --> 02:04:17,920
to give you a rough amount of what we
think the project will cost and what the

1418
02:04:15,840 --> 02:04:23,119
match will be. that those other details
about exact design, how much rideway,

1419
02:04:20,719 --> 02:04:28,080
where the sidewalk is would come um
during that first phase of the project.

1420
02:04:26,719 --> 02:04:33,280
» Council member Graham, can you hold your
thought just for a second? Um Council

1421
02:04:30,000 --> 02:04:37,040
Member Codle, are you on?
>> Yes, Deputy Mayor, I'm on.

1422
02:04:34,880 --> 02:04:40,960
» Do you have any questions?
>> Uh no, I don't at this time. Thank you.

1423
02:04:39,280 --> 02:04:44,719
» Okay, thank you. Go ahead, Council
Member Graham.

1424
02:04:42,719 --> 02:04:49,840
» So, this I think comes back to what Mr.
Craftton was talking about. So we

1425
02:04:47,199 --> 02:04:54,080
approve these projects tonight. We say
put these on the list. And then DOT

1426
02:04:51,760 --> 02:04:57,520
comes forward or whomever comes forward
and says, "All right, let's start

1427
02:04:55,199 --> 02:05:01,599
planning this." And they start planning
this projects. And we look at each other

1428
02:04:59,199 --> 02:05:06,719
and go, "There is no way in hell we're
going to sign up for that project." So

1429
02:05:04,080 --> 02:05:10,880
at that point, we're committed
to paying

1430
02:05:08,960 --> 02:05:14,400
the federal government back for the
money that DOT has spent on the planning

1431
02:05:13,040 --> 02:05:19,480
process.
even though we didn't know what the

1432
02:05:15,599 --> 02:05:19,480
project was to begin with.

1433
02:05:19,679 --> 02:05:29,800
» I don't know if you have
So,

1434
02:05:24,239 --> 02:05:29,800
back me up if you can, Eric. So,

1435
02:05:30,000 --> 02:05:39,199
I think the short answer is yes. Like,
we have to go through the planning

1436
02:05:36,239 --> 02:05:44,639
process to document all the details of
the project. Like I think each of the

1437
02:05:41,520 --> 02:05:48,719
projects has a description. I'm sure um
Eric could provide we could provide you

1438
02:05:46,639 --> 02:05:52,480
the applications that they submitted
that were very detailed with the

1439
02:05:50,560 --> 02:05:58,000
information that they have now. But
project development research happens

1440
02:05:54,480 --> 02:06:01,599
with every single project. So the
difference is you're being a you're

1441
02:05:59,920 --> 02:06:10,239
using
90% of federal funds to do that instead

1442
02:06:04,000 --> 02:06:12,880
of 100% of your own funds. And so, um,
I don't know.

1443
02:06:11,119 --> 02:06:15,679
» So, the short answer is yes, we would be
on the hook for

1444
02:06:13,920 --> 02:06:22,639
» paying the paying the federal funds that
get spent on that, um, phase one of the

1445
02:06:18,800 --> 02:06:25,280
project. Um, yes, that's a federal
requirement.

1446
02:06:23,920 --> 02:06:29,840
» Council member Craftton,
>> thank you. Um,

1447
02:06:28,000 --> 02:06:34,400
I think that kind of justifies some of
my point here. So, there there's a

1448
02:06:31,280 --> 02:06:38,639
couple things I have. Um,
again, I'm going to go back to kind of

1449
02:06:35,920 --> 02:06:43,440
what Mr. Graham's saying here is by
nominating these projects, we're almost

1450
02:06:40,560 --> 02:06:50,079
committing these dollars upfront. I I I
mean, if if federal dollars are going to

1451
02:06:45,920 --> 02:06:53,679
be spent, um, then and because a lot of
it's the design phase, they're be

1452
02:06:51,599 --> 02:06:58,320
they're the the biggest part is once
they get to a design phase, then we're

1453
02:06:56,960 --> 02:07:01,440
committing. And I can understand that
maybe before they even get to the design

1454
02:07:00,159 --> 02:07:05,440
phase, they're going to come to us and
say, "Hey, this is the project we're

1455
02:07:04,079 --> 02:07:08,159
going to start working on next, we're
going to get into the design phase. We

1456
02:07:07,040 --> 02:07:12,079
need to know that there's a commitment
from the council before we start

1457
02:07:10,079 --> 02:07:16,320
expending dollars on it." I'd assume
that's going to hopefully happen happen

1458
02:07:14,239 --> 02:07:20,560
first.
But when we submit that list, the list

1459
02:07:18,239 --> 02:07:25,920
should be a list of projects that we we
know we can stand by. and project 19

1460
02:07:24,000 --> 02:07:29,440
here, the Seward Meridian to Sun Sun
Mountain one is I don't think one we can

1461
02:07:27,360 --> 02:07:32,880
stand by because when we look at already
what's happening in this corridor,

1462
02:07:31,280 --> 02:07:36,560
there's two other projects that should
address a lot of the concerns that have

1463
02:07:34,719 --> 02:07:44,400
already been brought up about this this
connection here. And one of that is the

1464
02:07:40,400 --> 02:07:48,320
the redesign of the median down uh the
middle turn lane and then the other one

1465
02:07:46,400 --> 02:07:54,000
is the hopefully the Herman road and
help with the efficiency of traffic flow

1466
02:07:51,280 --> 02:07:58,800
uh through both of these areas here. And
so I'm just I'm really struggling

1467
02:07:57,280 --> 02:08:02,560
committing to knowing that this
project's going to be done because I

1468
02:08:00,560 --> 02:08:08,400
mean I've I've looked at a map. There's
two property owners that you would have

1469
02:08:04,639 --> 02:08:13,520
to go through to get this road, Sun
Mountain, connected to Sewart Meridian,

1470
02:08:11,040 --> 02:08:18,480
and one of those property owners, it's a
very large chunk of their property. I

1471
02:08:15,280 --> 02:08:22,239
I'm just not seeing a feasible way that
that we could achieve it at this time. I

1472
02:08:20,400 --> 02:08:26,560
mean, to me, it's too early to try and
nominate a project like this to go

1473
02:08:24,560 --> 02:08:33,760
forward. So with that, madame deputy
mayor, I move that we strike project ID

1474
02:08:30,719 --> 02:08:39,599
19, which is project name South Seward
Meridian Parkway to East Sun Mountain

1475
02:08:36,719 --> 02:08:46,079
Avenue connection project uh from the
resolution. Uh which actually, excuse

1476
02:08:41,360 --> 02:08:49,560
me, we'd be striking it from exhibit A.
>> Is there a second?

1477
02:08:50,000 --> 02:08:53,400
» Graham seconds.

1478
02:08:54,000 --> 02:08:56,000
You want to read that back in another
direction?

1479
02:08:55,440 --> 02:08:59,920
» Sure.
>> It's been moved by council member Krep

1480
02:08:57,920 --> 02:09:04,480
and seconded by council member Graham to
strike from exhibit A project number 19

1481
02:09:02,639 --> 02:09:09,440
which is a South Seward Meridian Parkway
to East Sun Mountain Avenue connection

1482
02:09:06,960 --> 02:09:12,000
project.
>> Madam Deputy Mayor,

1483
02:09:10,560 --> 02:09:15,840
» Council Member Craft.
>> Thank you. Just to finish speaking my

1484
02:09:13,280 --> 02:09:21,040
motion here again. I think it's too big
of a project too soon. Um, as I

1485
02:09:18,719 --> 02:09:26,000
mentioned, uh, the state is in the
design phase for a middle turn lane

1486
02:09:23,599 --> 02:09:30,000
adjustment, um, on the parks highway
right now. Um, which one of the biggest

1487
02:09:28,159 --> 02:09:33,760
concerns is getting the lefthand turn
lane off Sun Mountain, which is

1488
02:09:31,760 --> 02:09:38,480
technically I think it's Alpine and
their auxiliary connections to the parks

1489
02:09:35,840 --> 02:09:44,079
highway. Um and essentially it's that
corridor is about to go through a major

1490
02:09:41,199 --> 02:09:48,400
redirectioning with that project and
compl coup coup coupling with the Herman

1491
02:09:45,840 --> 02:09:52,800
road extension that's happening as well.
So I I think at one point in time yes

1492
02:09:51,360 --> 02:09:56,560
the sewer meridian would have been a
great idea to to connect through. I

1493
02:09:54,560 --> 02:09:59,679
think there was even intentions to
connect it down to Seward Meridian and

1494
02:09:58,079 --> 02:10:04,000
put a roundabout there to connect the
blue I think it's the blue loop pine

1495
02:10:01,119 --> 02:10:06,480
frontage road um and just that whole
area start putting in some roundabouts

1496
02:10:05,599 --> 02:10:10,719
make things a little bit more
interconnected there but at this time I

1497
02:10:08,960 --> 02:10:15,360
think it's not a project in the next
four years it should be a project in the

1498
02:10:12,719 --> 02:10:20,280
in a further I think six plus year time
r time frame at this time

1499
02:10:20,320 --> 02:10:25,599
» we're gonna Eric did you want to talk
>> yeah I just wanted

1500
02:10:24,079 --> 02:10:28,719
comment on the two projects that Mr.
Craftman talked about. Um, I'm

1501
02:10:26,960 --> 02:10:32,639
intimately familiar with both of them
and while they're important, they're not

1502
02:10:30,480 --> 02:10:37,440
the panacea to the problems there and
we're going to continue to have extreme

1503
02:10:34,800 --> 02:10:41,920
safety issues even after those projects
are figured out because of the number of

1504
02:10:39,679 --> 02:10:46,159
uh people that use that area and the
traffic alignment. So, I I understand

1505
02:10:44,400 --> 02:10:50,960
what Mr. Craftton is saying is concerned
about rightway. Um, I guess I just want

1506
02:10:48,560 --> 02:10:55,679
to caution the council that as we enter
the world of being part of the MO, there

1507
02:10:53,280 --> 02:11:02,239
are going to be significant projects
that have to be decided on. And these

1508
02:10:57,679 --> 02:11:07,280
are these are um decadel long thought
processes that have to happen. They're

1509
02:11:04,000 --> 02:11:12,320
not little small um road extensions.
Herman Road is a teeny project compared

1510
02:11:09,760 --> 02:11:16,320
to what the rest of the MO projects are
going to be. And while this is a huge

1511
02:11:13,920 --> 02:11:22,639
project for the city of Wasilla, it is
um small on the side of MOized projects.

1512
02:11:19,920 --> 02:11:27,119
So um I would ask the council as we go
forward in the years on on interacting

1513
02:11:24,639 --> 02:11:33,040
with the MO um the projects that are
going to come before you are going to be

1514
02:11:29,520 --> 02:11:38,079
drastic because of how far behind we are
in safe transportation projects in the

1515
02:11:35,599 --> 02:11:44,560
valley. Um we we know how many people
died on KGB when uh Governor Walker

1516
02:11:41,679 --> 02:11:48,480
stopped the project before um Dunley
started it again. We're talking about

1517
02:11:46,560 --> 02:11:52,880
multiple people dying each year on
different roads because of how far we

1518
02:11:50,639 --> 02:11:56,239
are behind in safe transportation
corridors. So these are going to be

1519
02:11:55,040 --> 02:12:00,159
really important and they're going to
touch major um improvements. They're

1520
02:11:58,480 --> 02:12:04,000
going to have new rideway that has to be
purchased. They're going to have

1521
02:12:01,440 --> 02:12:07,920
detailed traffic studies. They're not
going to be done in little myopic

1522
02:12:06,560 --> 02:12:13,599
projects anymore. They're going to be
very big with um all of the standard

1523
02:12:11,840 --> 02:12:18,480
transportation design that's required
for federal projects. So very well

1524
02:12:15,840 --> 02:12:21,520
vetted, very public facing, but also
they're going to be of a new caliber

1525
02:12:20,480 --> 02:12:27,520
that we haven't had to [snorts] deal
with before. We've waited for the um

1526
02:12:24,159 --> 02:12:31,599
couplet project for 15 years, right? So
that is a great example of a project

1527
02:12:29,040 --> 02:12:34,960
that took far far far too long. Our
whole downtown has not been redeveloped

1528
02:12:33,440 --> 02:12:40,560
because property owners have been
waiting for a decade too long to have a

1529
02:12:37,840 --> 02:12:44,719
project completed. The MO exists so that
doesn't happen anymore. That project did

1530
02:12:42,639 --> 02:12:49,440
not go anywhere because the MO didn't
exist to push these long-awaited

1531
02:12:47,199 --> 02:12:54,560
projects and make major safety
improvements. So, um I appreciate if Mr.

1532
02:12:52,480 --> 02:12:58,639
Craftton wants to wait on this. We we
have three other projects that we

1533
02:12:56,320 --> 02:13:05,480
desperately need, but this is going to
be a new relationship to transportation

1534
02:13:01,520 --> 02:13:05,480
projects on LSU.

1535
02:13:05,520 --> 02:13:12,880
» Council member Graham,
>> thank you. Just for clarification,

1536
02:13:11,040 --> 02:13:16,719
uh Eric, you said you'd appreciate if
Mr. Craftton wanted to wait on that. Are

1537
02:13:14,480 --> 02:13:20,159
you asking him to change his motion or
what?

1538
02:13:17,920 --> 02:13:24,639
» No, what did that what did that
statement mean? I I understand that um

1539
02:13:22,560 --> 02:13:30,000
it feels too drastic. I think that that
connection's going to have to happen. Uh

1540
02:13:27,760 --> 02:13:35,119
whether Herman Road is complete in the
next three years and whenever the uh

1541
02:13:32,480 --> 02:13:39,920
Parks Highway turn lane project happens,
they they don't they don't negate what

1542
02:13:38,239 --> 02:13:44,079
needs to happen with that corridor for
safety.

1543
02:13:40,719 --> 02:13:49,440
» Okay. Thank you. And then my question uh
madame deputy mayor or actually a

1544
02:13:46,480 --> 02:13:53,599
comment madam deputy mayor is has to do
with exactly what Kim was talking about

1545
02:13:52,000 --> 02:13:58,639
exactly what Eric was talking about and
exactly what Ian was talking about. So

1546
02:13:56,239 --> 02:14:06,159
we look at project 19 which is the one
that we're looking at now. You know

1547
02:14:00,480 --> 02:14:12,880
total cost estimate uh of $6.5 million.
Okay. [snorts] I would be willing to bet

1548
02:14:09,199 --> 02:14:20,560
that $4 million of that money will be
spent before any utility is moved or

1549
02:14:16,320 --> 02:14:26,639
before any shovel of dirt is turned. And
what Kim has told us is if we get to

1550
02:14:24,239 --> 02:14:32,719
that point on what is now a pie in the
sky totally unknown project, well, we're

1551
02:14:29,520 --> 02:14:37,599
on the hook for $4 million and for which
we get nothing and for which we have had

1552
02:14:35,520 --> 02:14:42,639
no say in because we haven't seen
anything on this. So, I'm going to stand

1553
02:14:40,000 --> 02:14:51,040
with council member Craftton on this and
and vote to strike project ID19. May I

1554
02:14:48,719 --> 02:14:57,480
maybe with the attorney? That's not what
this resolution says.

1555
02:14:54,480 --> 02:14:57,480
» So,

1556
02:14:57,760 --> 02:15:02,800
you know,
>> what's the motion on the floor? The

1557
02:15:01,119 --> 02:15:09,280
motion on the floor is to strike,
>> but this resolution does not say you're

1558
02:15:05,199 --> 02:15:14,719
on the hook. So, if you are on the hook,
probably moving forward, we need to

1559
02:15:11,119 --> 02:15:19,599
change the verbiage in the resolution.
>> Just throwing it out there. I I I see

1560
02:15:16,960 --> 02:15:23,679
where uh Madam Clerk, you're you're
trying to say like like I said, what

1561
02:15:21,440 --> 02:15:26,960
should come before us? The next thing
like we approved this tonight. The next

1562
02:15:25,760 --> 02:15:31,760
thing that should come before us
theoretically is is a resolution from

1563
02:15:29,440 --> 02:15:35,760
the administration. Uh because Kim has
said, "Hey, we've got the federal

1564
02:15:33,520 --> 02:15:40,239
funding. Uh the dollars are coming down
and project number one, we have the

1565
02:15:37,840 --> 02:15:44,159
number one project." They want to start
the design process. council, we need to

1566
02:15:42,320 --> 02:15:47,119
know you have a buy in and that you're
willing to because they want to start

1567
02:15:45,360 --> 02:15:50,480
spending money, but we have to know that
you're going to be willing to commit to

1568
02:15:48,560 --> 02:15:55,360
these dollars before they start spending
the money. That's my understanding as to

1569
02:15:53,360 --> 02:15:58,880
more or less what should be be happening
next.

1570
02:15:56,880 --> 02:16:04,480
But I think what the bigger picture I
look at is is it it tends to be how the

1571
02:16:02,639 --> 02:16:08,719
council and the administration operate
as a whole. when things are put before

1572
02:16:06,800 --> 02:16:12,639
us in this fashion, people go, "Oh,
well, we already agreed to doing this,

1573
02:16:10,400 --> 02:16:18,480
so we're just going to do it." And to
me, that's the bigger concern is that

1574
02:16:16,000 --> 02:16:23,760
just because the projects before us
doesn't mean we should do it. And what

1575
02:16:21,199 --> 02:16:30,560
it goes a step further into for me is
our roads master plan. We're 20 years, I

1576
02:16:28,480 --> 02:16:34,240
think 20, 19 years out of date on a
roads master plan. We have roads that

1577
02:16:32,399 --> 02:16:38,880
were that were projected to be built
that still haven't been built to this

1578
02:16:35,679 --> 02:16:45,359
day and now won't be able to be built.
And these projects have come like uh

1579
02:16:42,960 --> 02:16:48,000
Eric said from basically just a list of
things that needed to be done that were

1580
02:16:46,639 --> 02:16:51,599
really important. But the next time that
this list comes forward, it's going to

1581
02:16:49,519 --> 02:16:54,719
be based on a list of projects that the
roads master plan has already told us

1582
02:16:53,519 --> 02:16:57,679
that probably need to be done. And we're
going to look through it and go, "Yeah,

1583
02:16:56,080 --> 02:17:01,679
we don't care about this one. We do care
about this one. Uh this one can wait a

1584
02:16:59,840 --> 02:17:05,359
little bit longer." But and so that's
really where the formulation's going to

1585
02:17:03,120 --> 02:17:09,599
come. But I think what we need to be
looking at now is the fact that what we

1586
02:17:08,000 --> 02:17:12,960
put forward we're willing to commit
those dollars to because there's a good

1587
02:17:11,120 --> 02:17:15,679
chance that whether it's us sitting here
or somebody else sitting here that

1588
02:17:14,639 --> 02:17:19,280
they're going to be committing those
dollars to it. So I want to make sure

1589
02:17:16,960 --> 02:17:22,439
that that's what what we're going to be
working towards

1590
02:17:22,719 --> 02:17:28,960
» through the mayor to speak towards the
next um step in the process. If this

1591
02:17:26,960 --> 02:17:32,880
passes tonight, there will be a
reimburseable agreement that comes in

1592
02:17:30,719 --> 02:17:38,719
front of the council to codify with the
state what the funding agreement is. So

1593
02:17:35,439 --> 02:17:45,280
that'll be the next opportunity for uh a
go or no go vote. There's no monies

1594
02:17:42,479 --> 02:17:49,760
promised in this resolution. It's just
it kind of speaks to a larger idea. When

1595
02:17:47,519 --> 02:17:53,200
we go and apply for grants, they're
going to say, "Well, you need to have

1596
02:17:50,960 --> 02:17:57,359
some match." we go and apply for grants
without council approval because the

1597
02:17:55,200 --> 02:18:00,639
mayor is the city manager and says go
apply for the grant but we also want to

1598
02:17:59,519 --> 02:18:04,080
know that there's support moving
forward. So this you know as we talked

1599
02:18:02,880 --> 02:18:09,920
about what's going to change the next
time we see this with more initial

1600
02:18:06,880 --> 02:18:13,599
outreach with uh elected bodies um we
still do go out for grants and then and

1601
02:18:12,080 --> 02:18:18,479
then ask the council's approval and
grants have been um not approved for

1602
02:18:16,559 --> 02:18:23,599
that same reason. So, this is really
just a grant application and then we'll

1603
02:18:20,800 --> 02:18:26,920
be back to talk about um funding if
we're selected.

1604
02:18:28,960 --> 02:18:32,760
» Is there further discussion?

1605
02:18:33,439 --> 02:18:38,800
Is there objection to the motion?
>> Amendment.

1606
02:18:38,319 --> 02:18:42,000
» What's that?
>> We're on the amendment.

1607
02:18:40,160 --> 02:18:47,599
» Oh, we're still on the amendment. Yeah.
Is there objection to the motion? Yeah.

1608
02:18:44,719 --> 02:18:50,399
» Madam Deputy Mayor, I object.
I object.

1609
02:18:48,559 --> 02:18:54,000
» Okay. Wolf. Okay.
>> Thank you. And this is on um amend what

1610
02:18:52,559 --> 02:18:57,599
I'm going to call amendment number one.
And this is the proposal is to strike

1611
02:18:55,760 --> 02:19:01,679
the motion was to strike project number
19 from exhibit A. Council member

1612
02:19:00,160 --> 02:19:04,800
Graham.
>> Yes.

1613
02:19:02,880 --> 02:19:06,479
» Yes. To strike it. Council member
Schmidt.

1614
02:19:05,679 --> 02:19:09,439
» No.
>> Council member Craftton.

1615
02:19:08,719 --> 02:19:12,479
» Yes.
>> Council member Johnson.

1616
02:19:11,599 --> 02:19:17,200
» No.
>> Council member Rubio.

1617
02:19:14,000 --> 02:19:21,519
» No. Council member Codle.
>> No.

1618
02:19:18,719 --> 02:19:26,000
» Amendment number one fails with council
members Graham and Craftton in favor.

1619
02:19:23,519 --> 02:19:30,479
Council members Codle, Schmidt, Johnson,
and Rubio opposed.

1620
02:19:29,200 --> 02:19:35,519
» So now we are back to the
>> to the main motion which is to adopt

1621
02:19:32,719 --> 02:19:38,519
resolution serial number 2646 as
presented.

1622
02:19:38,960 --> 02:19:43,359
» Madam Deputy Mayor,
>> Council Member Craft.

1623
02:19:41,439 --> 02:19:48,160
» Thank you. Uh I won't be supporting
this. Um, I think we're committing the

1624
02:19:45,840 --> 02:19:55,439
city to too much. I mean, what you're
looking at now is, uh, especially

1625
02:19:51,600 --> 02:19:59,880
project number 19 was heavily based on
right of way. And

1626
02:20:00,399 --> 02:20:08,720
I mean, the only step forward would be
to say, hey, we want to enter design. We

1627
02:20:06,000 --> 02:20:12,319
say yes. They start designing. We've
committed dollars. We can't get right

1628
02:20:10,479 --> 02:20:16,160
away. The only option is em eminent
domain at that point. I mean, you're

1629
02:20:14,479 --> 02:20:20,080
committing the the city to a lot of
money when to a project that has no

1630
02:20:18,080 --> 02:20:25,120
plotted right of way. So, I'm a no vote
on this entire project.

1631
02:20:23,680 --> 02:20:28,000
» Council member Johnson.
>> Thank you, Madam Deputy Mayor.

1632
02:20:27,327 --> 02:20:34,880
[clears throat]
So from what I understand from this,

1633
02:20:31,840 --> 02:20:42,720
if we do not approve this
at this particular point,

1634
02:20:38,160 --> 02:20:48,160
basically we stand to lose
um

1635
02:20:44,399 --> 02:20:53,439
any federal money basically for these
projects because of the time frame that

1636
02:20:51,040 --> 02:20:59,920
we've got. From what I understood from
your conversation is we either move

1637
02:20:56,560 --> 02:21:03,120
forward by September or we can kiss most
of our federal money by

1638
02:21:02,800 --> 02:21:08,720
» um
>> now is that pretty much it

1639
02:21:06,319 --> 02:21:13,840
» through deputy may the deputy mayor to
council member Johnson. So we have asked

1640
02:21:11,359 --> 02:21:18,080
the Matsu bureau, the city of Palmer and
yourselves for a resolution nominating

1641
02:21:15,840 --> 02:21:23,520
your projects and that that you want to
prioritize and agreeing to pay the

1642
02:21:20,319 --> 02:21:28,479
match. We have given a date of September
1st um to all the municipalities

1643
02:21:26,933 --> 02:21:34,640
[clears throat] because we need time to
program our tip. So once we receive the

1644
02:21:31,439 --> 02:21:39,439
resolutions and we um figure out what
projects um have been uh nominated by

1645
02:21:37,520 --> 02:21:45,120
the local jurisdictions, we'll go go
about programming our tip. So we

1646
02:21:42,479 --> 02:21:49,680
anticipate having the draft tip
completed for our technical committee

1647
02:21:46,880 --> 02:21:54,479
and policy board in October. It would go
for public comment in November and then

1648
02:21:52,640 --> 02:22:00,800
be approved in December and submitted to
Federal Highways. If you do not approve

1649
02:21:57,200 --> 02:22:06,399
a resolution in the very short term, we
will not program any projects for the

1650
02:22:03,200 --> 02:22:12,640
city of Wasilla. So, right now, as our
current short-term metropolitan

1651
02:22:08,560 --> 02:22:18,560
transportation plan list looks, um we
have uh priorities from the city of

1652
02:22:15,200 --> 02:22:24,640
Palmer and the Matsu Burough. So, the
city of Palmer is asking for 7.5 million

1653
02:22:21,200 --> 02:22:31,200
in the short term. The city of Wasilla's
projects total 14.8 million and the

1654
02:22:28,000 --> 02:22:38,319
Matsu Burough's projects total 56.4
million. So their projects span beyond

1655
02:22:35,680 --> 02:22:44,319
the current tip. And I share this
because they have applied for a lot more

1656
02:22:41,680 --> 02:22:49,840
projects and [clears throat] we I just
want to let I don't want you to miss

1657
02:22:46,160 --> 02:22:56,319
your opportunity for the next
12 or 15 years to access some of this

1658
02:22:52,640 --> 02:23:01,040
funding because the the bureau has
applied for a lot. So I I'm not trying

1659
02:22:59,040 --> 02:23:06,960
to pit the bureau against the city, but
we've tried to allocate a share based on

1660
02:23:03,760 --> 02:23:13,040
population and the application. um the
projects that were applied for and

1661
02:23:10,080 --> 02:23:17,760
that's yeah if so if you don't pass a
resolution we won't program your

1662
02:23:14,720 --> 02:23:22,640
projects potentially for a couple
cycles.

1663
02:23:18,880 --> 02:23:27,200
» So in response I mean I
um

1664
02:23:24,880 --> 02:23:31,600
I don't like the list in front of me.
Okay, I'll be perfectly honest there. On

1665
02:23:29,760 --> 02:23:37,439
the other hand, I'm not going to shoot
myself in the foot by saying, um, yeah,

1666
02:23:36,000 --> 02:23:42,160
I don't like this or I don't like that
or, you know, if if I have a shot at

1667
02:23:39,680 --> 02:23:46,800
federal money, realizing that I still
don't have a commitment for the funds

1668
02:23:44,800 --> 02:23:52,800
and I can still at the later time when
the resolution comes through say no. So,

1669
02:23:50,319 --> 02:23:56,960
while I don't like to do this, I sort of
feel exactly in the same position we did

1670
02:23:55,200 --> 02:24:02,160
with the software vote just a few
minutes ago. This is being forced down

1671
02:23:59,120 --> 02:24:07,120
my throat. In this particular case, I
will support it because I don't want to

1672
02:24:04,399 --> 02:24:12,160
lose the federal funding, but I'm not
really a happy camper.

1673
02:24:10,720 --> 02:24:18,800
» May I Yes.
>> add a comment. I'm so sorry. So, we're

1674
02:24:16,080 --> 02:24:22,720
in this unfortunate time frame right now
with approving our long range

1675
02:24:20,479 --> 02:24:27,760
metropolitan transportation plan and
developing our TIP at the same time

1676
02:24:25,439 --> 02:24:32,720
because we're a new MO and the federal
guidelines say within four years of

1677
02:24:29,920 --> 02:24:37,359
designation, you have to finalize these
two plans and

1678
02:24:35,040 --> 02:24:44,080
start spending the federal dollars that
are suballocated to your region. So in

1679
02:24:40,640 --> 02:24:47,680
the future there won't be this pressure
that you have one week to make a

1680
02:24:45,920 --> 02:24:52,319
decision or three weeks to make a
decision. We will update our MTP every

1681
02:24:50,399 --> 02:24:56,720
five years. We're going to start on that
and two years again to do another

1682
02:24:54,240 --> 02:25:01,680
update. We will update our TIP again
with amendments probably annually, but

1683
02:24:58,800 --> 02:25:06,000
we will redo our TIP every four years
because we know priorities change and

1684
02:25:03,760 --> 02:25:12,240
project interests change. There would
normally be a year between TIP

1685
02:25:08,960 --> 02:25:16,080
programming and MTP finalization so that
there isn't this time pressure. But

1686
02:25:14,080 --> 02:25:19,439
because we're a new organization and
we're trying to meet the federal

1687
02:25:17,359 --> 02:25:25,240
deadline of finalizing our documents by
December, that's why there's this

1688
02:25:21,680 --> 02:25:25,240
condensed timeline.

1689
02:25:25,280 --> 02:25:31,200
» Council member Schmidt. So, I'm
[clears throat] in favor of this and I I

1690
02:25:29,280 --> 02:25:36,800
think anyone that looks at it can say,
"Hey, there's, you know, 14.5,000

1691
02:25:34,160 --> 02:25:43,120
or million dollars here on the board and
we're only looking at approximately 89%

1692
02:25:40,399 --> 02:25:48,560
to take care of in [snorts] our city."
And as we all know how much uh tight

1693
02:25:46,319 --> 02:25:52,319
money is here in the city, we were just
talking about taxes earlier. We don't

1694
02:25:50,720 --> 02:25:57,760
want to keep on raising and raising and
raising. if we had to play for just one

1695
02:25:54,560 --> 02:26:03,200
of these projects is more than doing the
total of them with the 90%

1696
02:26:00,399 --> 02:26:09,920
um help from the government on this. So,
I'm definitely in favor of this.

1697
02:26:06,960 --> 02:26:14,319
» Council member uh Crapton,
>> thank you. Um

1698
02:26:12,560 --> 02:26:17,280
I mean, what I'm hearing is it's just a
few years that we're missing out on

1699
02:26:15,840 --> 02:26:23,840
because all we're doing is missing this
round of projects. It it doesn't stop us

1700
02:26:20,960 --> 02:26:32,080
from getting federal funding.
It's just these specific projects.

1701
02:26:27,680 --> 02:26:36,160
I mean, again, I I think of the future
bind that we're going to potentially be

1702
02:26:34,080 --> 02:26:40,880
in when these projects come back and
they say, "Hey, we need to work on

1703
02:26:38,800 --> 02:26:44,399
getting this." And we say, "Sure, go for
it." And then we turn around and find

1704
02:26:42,560 --> 02:26:49,760
out that this project's a lot more than
what we are expecting and now we're

1705
02:26:45,840 --> 02:26:55,120
bound to those dollars. So, I I
I still stand by uh by what the by

1706
02:26:52,800 --> 02:27:00,399
voting no on this project.
>> Council member Graham.

1707
02:26:57,040 --> 02:27:05,200
» Thank you. [clears throat] First,
I suppose I should commend the

1708
02:27:02,960 --> 02:27:11,760
administration, which would be Eric
mostly for

1709
02:27:08,160 --> 02:27:15,439
allowing the the NO to kind of tell you
what the test answers were before you

1710
02:27:13,439 --> 02:27:19,520
took the test. You know, he said, "These
are the priorities. these this is what

1711
02:27:17,680 --> 02:27:24,640
gets the heaviest weight and so on and
so forth. And then obviously from the

1712
02:27:21,920 --> 02:27:29,840
numbering of the projects you did very
well. I mean our projects our lowest

1713
02:27:27,280 --> 02:27:37,680
ranked project is number 19 you know so
you've done very well for

1714
02:27:33,120 --> 02:27:42,720
you know seeing what is going to float
uh through the through the planning

1715
02:27:39,359 --> 02:27:48,800
organization which is good but what you
know is missing you know is our roads

1716
02:27:46,160 --> 02:27:55,840
master plan. where does this fit in? And
and uh for this particular uh

1717
02:27:53,359 --> 02:28:02,640
resolution, you know, it doesn't fit in
at all. Uh but it's but it's kind of the

1718
02:27:59,600 --> 02:28:09,920
best that we have at present. And
although I really think, you know, uh

1719
02:28:05,439 --> 02:28:12,880
project number 19 is uh
is, you know, like throwing spaghetti at

1720
02:28:11,680 --> 02:28:18,240
the wall at this point. I mean, it's
it's just a jumble of stuff there.

1721
02:28:15,439 --> 02:28:24,080
uh you know the other projects you know
are far enough out uh or far enough down

1722
02:28:21,520 --> 02:28:30,880
the line where I think I can support
these uh and and come back you know it's

1723
02:28:27,200 --> 02:28:35,120
a it it you know it's great leveraging
of the federal funds uh that are there

1724
02:28:32,960 --> 02:28:40,319
and by the time we get to those two big
projects at the end of the list we will

1725
02:28:37,359 --> 02:28:44,880
have had time to talk about them and
hopefully by then we'll have a roads

1726
02:28:41,840 --> 02:28:52,000
master plan and and be able to dovetail
them together. But this one is uh I know

1727
02:28:48,160 --> 02:28:56,880
not ideal but it is workable. Thank you.
>> Is there further discussion?

1728
02:28:55,120 --> 02:28:58,960
» Madame clerk, can you do a roll call
vote?

1729
02:28:57,359 --> 02:29:03,439
» Thank you, madam deputy mayor. Council
member Schmidt, this is on the adoption

1730
02:29:00,720 --> 02:29:06,240
of resolution serial number 2646.
>> Approve.

1731
02:29:04,479 --> 02:29:08,319
» Council member Craftton,
>> no.

1732
02:29:06,880 --> 02:29:10,000
» Council member Johnson,
>> yes.

1733
02:29:08,800 --> 02:29:12,560
» Council member Rubio,
>> yes.

1734
02:29:10,399 --> 02:29:14,720
» Council member Codle,
>> yes. Council member Graham.

1735
02:29:14,319 --> 02:29:19,280
» Yes.
>> The motion to adopt resolution serial

1736
02:29:16,479 --> 02:29:23,680
number 2646 passes with council members
Codle, Graham, Schmidt, Johnson, and

1737
02:29:21,520 --> 02:29:26,840
Rubio in support. Council member Craft
and opposed.

1738
02:29:29,680 --> 02:29:36,399
» We are now at communications. Madame
Clerk, please read the items by title.

1739
02:29:33,760 --> 02:29:42,319
» Thank you. I am number 2610, monthly
financial reports for the period ending

1740
02:29:38,479 --> 02:29:47,359
April 30th, 2026. IM number 2611 monthly
financial reports for the period ending

1741
02:29:44,479 --> 02:29:52,319
May 31st, 2026. Two sets of planning
commission meeting minutes July 14th and

1742
02:29:49,520 --> 02:29:56,880
July 28th, 2026.
We are now at audience con um comments

1743
02:29:55,200 --> 02:30:00,000
which is a time for members for of the
public to share their views with the

1744
02:29:58,399 --> 02:30:02,960
council. This is not a question and
answer period or a time for dialogue.

1745
02:30:01,760 --> 02:30:06,399
Speakers may be referred to
administration or issues raised may be

1746
02:30:04,960 --> 02:30:10,479
taken under the advisement of the
council or administration. Please begin

1747
02:30:08,880 --> 02:30:14,080
your testimony by stating your first and
last name. And if you are a city

1748
02:30:12,000 --> 02:30:17,080
resident, comments are limited to three
minutes.

1749
02:30:23,680 --> 02:30:29,120
» Good evening, uh, Deputy Mayor Rubio and
council members. My name for the record,

1750
02:30:27,680 --> 02:30:33,200
my name is David Wilson. I'm a city
resident. I just wanted to share a brief

1751
02:30:31,200 --> 02:30:37,200
little story I shared with the police
chief. Uh, we ran into a resident over

1752
02:30:35,280 --> 02:30:41,200
the weekend who was telling me about a
situation with a law enforcement

1753
02:30:38,880 --> 02:30:44,960
officer. They were in medical distress.
And short story of the matter, I was

1754
02:30:43,439 --> 02:30:49,439
hoping that she would be here today, but
I think it's raining and didn't want to

1755
02:30:46,560 --> 02:30:56,240
wheel the wheelchair down here, but uh
the police officer

1756
02:30:52,000 --> 02:31:02,800
Rice it was um came and really lended
aid to this uh um elderly uh lady and um

1757
02:31:00,960 --> 02:31:07,120
helped her get her wheelchair back into
her place after she was cred off to the

1758
02:31:04,560 --> 02:31:11,920
hospital. She came back to that surprise
and didn't really want to trust an

1759
02:31:09,120 --> 02:31:16,479
officer, but she said uh Officer Rice
had the kindest eyes she's ever seen and

1760
02:31:14,479 --> 02:31:19,520
really made it a pleasant experience and
now she has more faith into law

1761
02:31:18,240 --> 02:31:23,520
enforcement. She looks forward to more
interactions, positive interactions with

1762
02:31:21,439 --> 02:31:27,600
Wasola PD. So, I just want to say you
guys have a fine while still doing great

1763
02:31:25,920 --> 02:31:31,920
service and I know that you guys don't
always get those compliments and stories

1764
02:31:29,439 --> 02:31:36,960
back and so uh she just wanted to make
sure that the public knew uh about what

1765
02:31:34,399 --> 02:31:39,600
he did and that she wanted to honor him
and she was like, "Oh, we need to have

1766
02:31:38,240 --> 02:31:42,080
the press come because I guess he's out
of town." And so, when he gets back to

1767
02:31:40,880 --> 02:31:44,640
the airport, we want to do this whole
hurrah for him. And I was like, "Whoa,

1768
02:31:43,680 --> 02:31:49,439
whoa, whoa. Why don't you start with
council first and let them know that

1769
02:31:47,200 --> 02:31:53,359
what a wonderful job that he did on um
in serving and protecting our

1770
02:31:51,200 --> 02:31:56,520
residents." So, thank you.
>> Thank you.

1771
02:31:59,040 --> 02:32:05,680
Okay, seeing no more, we are on We are
now at mayor, clerk, attorney, and

1772
02:32:03,760 --> 02:32:08,960
council comments. Madame clerk,
>> thank you. And I I think I'll just echo

1773
02:32:07,359 --> 02:32:13,840
onto that. I didn't ever say it
publicly, but I got hit um by a teen

1774
02:32:11,840 --> 02:32:18,479
driver in the Target parking lot, which
is why I'm driving a rental. It was my

1775
02:32:15,840 --> 02:32:22,720
first um interaction with the police
department. He didn't know me. I of

1776
02:32:20,240 --> 02:32:27,040
course never identify myself as a city
official. He was professional. He was

1777
02:32:25,359 --> 02:32:32,160
kind. I couldn't have been a better
experience and I had shared that with

1778
02:32:29,040 --> 02:32:36,240
the chief. So kudos to WPD. Um our
election is progressing. We have our re

1779
02:32:34,080 --> 02:32:40,000
review board which will meet here on
Thursday um to test the ballot

1780
02:32:38,479 --> 02:32:44,560
tabulators that'll be used in the
election. If you want to vote by mail,

1781
02:32:42,000 --> 02:32:48,479
deadline is 5:00 p.m. September 29th to
get that application into the clerk's

1782
02:32:46,399 --> 02:32:52,960
office. And then early inerson voting
will take place here at city hall

1783
02:32:50,319 --> 02:32:58,240
September 21st through October 5th. We
have weekdays 9 to5 and Saturdays 10 to

1784
02:32:55,680 --> 02:33:01,600
three. And we will see you all here next
regular meeting September 14th. Thank

1785
02:33:00,880 --> 02:33:06,080
you.
>> Thank you city attorney.

1786
02:33:03,920 --> 02:33:12,920
» Thank you uh
no comments. Very long meeting.

1787
02:33:08,560 --> 02:33:12,920
» Thank you council member Johnson.

1788
02:33:13,040 --> 02:33:21,520
» Thank you mayor. Um,
I'm going to be traveling to the lower

1789
02:33:18,080 --> 02:33:27,040
48 uh for the first 3 weeks of
September. I will endeavor to call in on

1790
02:33:25,120 --> 02:33:33,359
the 14th
uh so we can have a quorum um

1791
02:33:31,200 --> 02:33:39,240
other than that I don't really have any
comments.

1792
02:33:35,520 --> 02:33:39,240
» Council member Codle.

1793
02:33:39,520 --> 02:33:46,399
» Thank you, Madam Deputy Mayor. Um good
meeting tonight. I want to thank Moren

1794
02:33:44,080 --> 02:33:52,000
for all of her work on this presentation
for the sales tax um options for us.

1795
02:33:50,000 --> 02:33:58,000
Gives us a lot of things to to think
about. Um I also just want to make a

1796
02:33:55,520 --> 02:34:02,560
comment that I appreciate the staff
status update report from

1797
02:33:59,840 --> 02:34:08,800
administration. I think it's good to get
these updates and it just gives a lot

1798
02:34:05,680 --> 02:34:13,520
more transparency to what's going on um
for the council and and keeps us in

1799
02:34:11,680 --> 02:34:16,240
touch with the administration and I just
appreciate that and that's all I have.

1800
02:34:15,120 --> 02:34:20,319
Thank you.
>> Thank you, Council Member Johnson. Oh,

1801
02:34:18,560 --> 02:34:25,200
it's on here twice.
>> Council member uh Graham [laughter]

1802
02:34:23,359 --> 02:34:27,200
Graham
that other old

1803
02:34:25,840 --> 02:34:31,200
» flip of the I don't know. We're going
with Graham.

1804
02:34:28,399 --> 02:34:36,560
» I resemble that remark. [laughter]
Uh yeah, first I wanted to uh you know

1805
02:34:34,080 --> 02:34:43,200
thank me. That was a very interesting uh
presentation. Lots of information uh out

1806
02:34:39,359 --> 02:34:46,640
there uh a lot of questions uh answered
that the council has asked over the

1807
02:34:44,880 --> 02:34:50,560
years and has never really been
addressed as a bundle. So that was a a

1808
02:34:49,200 --> 02:34:55,760
very good thing. I really appreciate it
as well as all the staff work on a

1809
02:34:52,560 --> 02:35:01,280
variety of things. Uh
I did mention to the chief uh and to

1810
02:34:58,240 --> 02:35:06,800
Lori, you know, from Mattcom that the
burrow uh is now in in public meetings

1811
02:35:05,359 --> 02:35:08,399
saying that there's going to be a new
MATCOM

1812
02:35:08,312 --> 02:35:15,200
» [snorts]
>> uh near Tate and Bogard Road associated

1813
02:35:11,200 --> 02:35:18,960
with a new fire station. Uh I'd be
interested in finding out more about

1814
02:35:16,640 --> 02:35:23,520
that, but since it's already 8:30, maybe
we can do that at a future meeting. You

1815
02:35:21,280 --> 02:35:27,840
know, I mean, if if this is just the
burrows pie in the sky idea, it'd be

1816
02:35:25,359 --> 02:35:32,319
nice to know that, but I'm really
curious why they would be saying that

1817
02:35:30,479 --> 02:35:37,680
that's the way things are going to be if
if the city doesn't hasn't signed off on

1818
02:35:34,800 --> 02:35:44,640
that. you know, MATCOM is a city uh
issue and and and it's a a city function

1819
02:35:40,399 --> 02:35:48,479
and uh it's interesting to know how
would be interesting to know how the

1820
02:35:46,000 --> 02:35:54,640
bureau plans to take that over and and
just move it without uh telling anything

1821
02:35:50,399 --> 02:35:59,120
about it. Uh also uh the uh updates
provided by uh the deputy administrator

1822
02:35:57,200 --> 02:36:05,200
the written updates that that [snorts]
council person codle talked about very

1823
02:36:02,000 --> 02:36:10,319
uh good uh to know what's going on uh
and I look forward to seeing more of

1824
02:36:07,920 --> 02:36:13,040
those. I mean, as a council person, you
get questions all the time. You know,

1825
02:36:11,680 --> 02:36:19,200
what's going on here? What's going on
there? And if if the administration, uh,

1826
02:36:17,600 --> 02:36:24,240
uh, you know, doesn't pass that
information on, then each of us end up

1827
02:36:21,439 --> 02:36:28,240
going, uh, to Eric or going to Scott or
going to wherever to get the answers,

1828
02:36:25,760 --> 02:36:31,760
which is, you know, certainly not ideal.
So, this, in addition to being a lot of

1829
02:36:30,319 --> 02:36:36,000
great information, it also, I think,
cuts down on staff time. So,

1830
02:36:33,680 --> 02:36:40,880
congratulations on on getting that out.
Look forward to that as well. But thank

1831
02:36:38,319 --> 02:36:47,680
you uh for being here uh tonight. It's
always a pleasure to have uh interaction

1832
02:36:44,080 --> 02:36:52,960
with the public. So uh get out, enjoy
the fair, have a good time.

1833
02:36:50,000 --> 02:36:56,720
» Thank you, Council Member Schmidt.
>> Yeah, I want to say thank you to Marine

1834
02:36:55,120 --> 02:37:02,080
as well. Um that was a very good
presentation on the taxes. Um quite a

1835
02:36:59,920 --> 02:37:05,600
bit of information there, but I
appreciate all the information she

1836
02:37:03,439 --> 02:37:11,439
brought to everyone. And thank you,
Eric, for uh getting these uh proposals

1837
02:37:08,640 --> 02:37:15,920
together for uh the transportation uh
tips um so we could uh get some of this

1838
02:37:14,160 --> 02:37:23,760
federal funding. I think that's a great
job on that. Thank you. And I will

1839
02:37:20,240 --> 02:37:28,399
probably not be attending the next
meeting on the September the 14th. I do

1840
02:37:26,399 --> 02:37:32,800
go on an annual moose hunt and that's
the date. I

1841
02:37:30,319 --> 02:37:36,800
» Things may change. I may get home sooner
or later. You never know. and I may call

1842
02:37:34,720 --> 02:37:41,920
in. So, if that's the case, I will do my
best to make it, but it's about an 80%

1843
02:37:39,520 --> 02:37:45,439
chance I will not.
>> Hopefully, you get the moose quicker.

1844
02:37:44,240 --> 02:37:50,319
» Either way,
>> have fun. Council member Craftton,

1845
02:37:48,080 --> 02:37:57,040
» thank you. Uh, couple questions I did
have. Um, first was to Eric. Eric, uh,

1846
02:37:54,479 --> 02:38:00,479
where we're at with the airport property
acquisition. Did you say at the next

1847
02:37:59,200 --> 02:38:04,640
meeting we're going to be getting some
more information?

1848
02:38:02,640 --> 02:38:08,560
Yeah, there's a lot happening on that
front. So, um [clears throat] I will

1849
02:38:06,479 --> 02:38:14,080
pull together the updates that we've had
before and where they stand. Um there's

1850
02:38:11,359 --> 02:38:20,240
a parcel that um the large parcel we've
been talking about. We have been meeting

1851
02:38:16,720 --> 02:38:24,240
with the FAA on its importance to the
extension that we've talked about and

1852
02:38:22,319 --> 02:38:30,160
because of the value of that parcel, we
have to do another appraisal to m to

1853
02:38:26,720 --> 02:38:34,319
meet the FAA's um requirements. One of
the other things that we're doing on the

1854
02:38:31,520 --> 02:38:38,560
other parcels is explaining to the FAA
on the ones that we've already purchased

1855
02:38:36,000 --> 02:38:44,319
why we needed them. And we'll be
explaining that um there's this there's

1856
02:38:41,520 --> 02:38:48,319
this process showing if we can show that
the whole process whole parcel makes

1857
02:38:46,399 --> 02:38:53,200
more sense than all the work and cost
and time to subdivide it, then they'll

1858
02:38:50,720 --> 02:38:57,120
join us in the complete purchase. So our
consultant is pulling that together. So

1859
02:38:54,800 --> 02:39:02,160
I will be bringing the council an update
on where everyone stands. um property

1860
02:39:00,160 --> 02:39:05,520
acquisition wise. Um the other thing I
want to let the council know is we're

1861
02:39:03,439 --> 02:39:12,560
working with the burrow fire department
to um uh burn down the um gardener house

1862
02:39:11,040 --> 02:39:17,840
that we purchased. That was one of the
first purchases we made. Um it froze

1863
02:39:15,439 --> 02:39:21,920
last winter with all of the extreme wind
events that we had and so it was

1864
02:39:20,240 --> 02:39:25,840
couldn't live in it anyway, but it it
needs to go down. And so we've been

1865
02:39:23,680 --> 02:39:30,399
working with the fire department to make
that happen. and um it's looking very

1866
02:39:28,319 --> 02:39:33,040
positive in their steps. So there'll be
an agreement that we have to sign that I

1867
02:39:31,920 --> 02:39:36,960
think will probably have to come in
front of the council. I've asked legal

1868
02:39:35,280 --> 02:39:41,600
to look at it. So I think the council
will see that because of um the way they

1869
02:39:39,439 --> 02:39:45,840
do liability coverage. So you'll see
more on that at the same time.

1870
02:39:43,040 --> 02:39:49,040
» Are we burning marshmallows? Are we all
>> We definitely should have a party on

1871
02:39:48,000 --> 02:39:52,160
[laughter]
>> they're practicing practicing.

1872
02:39:50,800 --> 02:39:57,680
» Uh second question probably might be
this one might be to our finance

1873
02:39:53,520 --> 02:40:01,200
director Wendy. Um, great uh,
presentation by Meen there. Like I said

1874
02:39:59,280 --> 02:40:04,560
earlier on sales tax. I know a lot of
this was questions that I think the

1875
02:40:02,720 --> 02:40:09,040
council has had hanging out there for a
while. Um, the big question is what is

1876
02:40:07,200 --> 02:40:13,680
the end goal for this presentation? Was
it to just kind of say, "Hey, here's

1877
02:40:10,960 --> 02:40:17,920
some changes. Is the are we expecting
the administration to bring us forward

1878
02:40:15,359 --> 02:40:22,000
some ordinance changes or is this uh,
something that the council needs to a

1879
02:40:20,160 --> 02:40:26,240
council member council members need to
take up?

1880
02:40:23,760 --> 02:40:28,880
First and foremost, it Can you hear me?
>> Yeah.

1881
02:40:26,800 --> 02:40:34,800
» Okay. Um, first and foremost, it was out
of the meetings that I that

1882
02:40:32,319 --> 02:40:40,240
Crystal and I sat down and met with you.
Almost every one of you wanted to meet

1883
02:40:38,080 --> 02:40:45,920
uh about that or wanted some kind of
understanding of what sales tax was here

1884
02:40:42,720 --> 02:40:52,800
in the city. Um, you know, it really did
flesh out a lot of things um that need

1885
02:40:48,720 --> 02:40:56,479
to change. and um Moren and I were were
going to be sitting down and looking at

1886
02:40:54,479 --> 02:41:02,240
some of those revenue items that you
said that you could that that you saw on

1887
02:41:00,000 --> 02:41:05,040
her presentation that need to be
updated.

1888
02:41:03,280 --> 02:41:08,880
» Okay. So, there's a good chance we could
be seeing an ordinance come forward from

1889
02:41:06,960 --> 02:41:10,880
the administration is what I'm hearing.
>> Yes.

1890
02:41:09,359 --> 02:41:16,319
» Okay. And then last question, I'm just
going to beat the drum again about our

1891
02:41:13,840 --> 02:41:20,960
water and sewer rates. uh would love to
still have that meeting uh with is it

1892
02:41:19,520 --> 02:41:23,920
mut
>> waterworth

1893
02:41:21,520 --> 02:41:27,040
» waterworth with Munworth that's what it
is so just just a reminder on that one

1894
02:41:26,560 --> 02:41:33,200
again
>> yes Eric and I um have that on our

1895
02:41:29,920 --> 02:41:36,319
agenda and we definitely will be talking
about that

1896
02:41:34,240 --> 02:41:40,319
» can I ask something if I may I just had
a thought would it help Wendy if we had

1897
02:41:38,560 --> 02:41:45,120
I was kind of thinking of how the
council flushed through some of those

1898
02:41:42,000 --> 02:41:49,760
changes with title 16 would it help if
we brought back another sales tax

1899
02:41:47,840 --> 02:41:54,080
presentation and you guys could kind of
flush through

1900
02:41:52,240 --> 02:41:58,560
we kind we're kind of on board for this,
you know, changing this exemption or

1901
02:41:56,240 --> 02:42:03,120
increasing revenue here, but like this
is completely off the table.

1902
02:42:01,520 --> 02:42:07,200
» I'd be open to that. I I think the
biggest thing is don't throw it under a

1903
02:42:05,280 --> 02:42:10,240
public introduction with no debate. I
mean, know that when we talk about that

1904
02:42:09,200 --> 02:42:13,040
one, that's going to be a heavily
debated topic. So, I would think the

1905
02:42:12,319 --> 02:42:17,280
biggest thing is
>> that would be wonderful. making sure we

1906
02:42:14,479 --> 02:42:20,720
have the the time to debate and discuss
as a committee of the whole. So it'd

1907
02:42:18,800 --> 02:42:24,399
almost be better to come in as a a new
business or something committee of the

1908
02:42:22,319 --> 02:42:26,880
whole discussion with here's the items.
>> So that

1909
02:42:25,040 --> 02:42:30,880
» I think that may may end up being more
fruitful in the end just suggest

1910
02:42:29,040 --> 02:42:34,720
» then than feeling like we're beating up
an ordinance that's been spent you know

1911
02:42:32,720 --> 02:42:39,439
many hours on working out and just to
turn out for us be like we don't like

1912
02:42:36,000 --> 02:42:44,319
this scrap it and start over. So uh with
that that is all. I appreciate it. Thank

1913
02:42:41,120 --> 02:42:49,359
you very much. Uh great meeting tonight.
Um, thank you. Back to me. I just want

1914
02:42:46,880 --> 02:42:55,840
to echo what everyone's saying. Meen,
uh, her presentation was awesome

1915
02:42:52,000 --> 02:43:00,479
» and so very informative. Enjoyed it and,
uh, as I look at it, we no further

1916
02:42:58,640 --> 02:43:02,080
business at hand. And I'm
>> Did you get Kyle?

1917
02:43:01,439 --> 02:43:05,520
» Yes, I got it.
>> You said Johnson twice.

1918
02:43:04,000 --> 02:43:11,760
» He was on there twice. He got lucky and
Schmidt got left off. So I I got it. I'm

1919
02:43:08,560 --> 02:43:11,760
adjourning the meeting unless