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2026-06-25 Work SessionKodiak Island Borough Assembly Work Session Thursday, June 25, 2026, 6:30 p.m. Assembly Chambers Work Sessions are informal public meetings where the Assembly discusses the listed agenda items, reviews upcoming programs, receives progress updates, and reviews the draft regular meeting agenda. No formal actions are taken. You can view the live broadcast on the Borough's YouTube Channel and access meeting packets online. 1. CITIZENS' COMMENTS 1-907-486-3231 or Toll Free 1-855-492-9202 (Limited To Three Minutes Per Speaker) 2. MANAGER'S COMMENTS a 2026-06-25 Borough Manager's Report [cnmelziolo7_ i i i z i & Fai Page 3-20 a. Sourcewell Procurement System Presentation 21 - 36 Agenda Item Report - Pdf b. Discuss Draft Ordinance Implementing Marijuana Tax 37 - 63 Agenda Item Report - Pdf C. Discussion Of A Natural Resource Excise Tax Ordinance Similar 64 - 101 To The "Fish Box Tax" Agenda Item Report - Pdf d. Review The Interview Questions For The Assembly Applicants 102 - 103 Agenda Item Report - Pdf 4. PACKET REVIEW The DRAFT regular meeting packet is available online at Kodiak Island Borough - Meeting Type List (civicweb.net). �6141 ki k d:7_[41 &I • Contract No. FY2026-55, Approval Of Annex Building Underground Storage Tank Removal With AIM Maintenance LLC • Contract No. FY2027-07, Approval Of Janitorial Services Contract With JNR Cleaning Service • Contract No. FY2027-08, Approval Of Facilities Surface Page 1 of 115 Maintenance, Repairs, And Snow Removal Services With MK Enterprises, LLC • Contract No. FY2027-09, Approval Of Kodiak Island Borough Administration Building Air Handling System Updates With Long Technologies ORDINANCES • Ordinance No. FY2027-03, Rezoning A Portion Of Ouzinkie Tract C Block 1 Remainder Of USS 4871 From R1 Single Family District To PL Public Use Land District (Zoning Will Correspond To Lot Created By Preliminary Subdivision S26-016) OTHER ITEMS • Authorization For The Kodiak Island Borough Mayor To Become A Signer To The Southwest Alaska Municipal Conference Resolution No. 2026-06-01, A Resolution Of Municipalities And Federally Recognized Tribes Of Southwest Alaska Calling For Fact Based Dialogue On The Future Of Alaska Fisheries And Coastal Communities 5. CLERK'S COMMENTS a 2026-06-25 Borough Clerk's Report 6. ASSEMBLY MEMBERS' COMMENTS 7. MAYOR'S COMMENTS 8. SUPPLEMENTAL MATERIALS 104 - 112 Supplemental materials received after the initial packet release will be added here. The submission deadline is noon on meeting day. a Agenda Item 14.A.2 Contract No. FY2027-07, KIBC 2.35 Conflict 113 - 114 of IntarPO b Citizen Sign -in Sheet 115 Meeting packets are available online. Subscribe to get meeting notifications when meeting packets are published. Call (907) 486-3231 or (855) 492-9202 for Citizens Comments. Page 2 of 115 AGENDA ITEM #2.a. Kodiak Island Borough OFFICE of the MANAGER 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9301 TO: Kodiak Island Borough Assembly FROM: Aimee Williams, Borough Manager RE: Manager's Report, June 25, 2026 Manager's Department Current Recruitments • Projects Assistant — Hailee Wallace (current employee) starts on July 5t" • LTP Supervisor —Temporary Assignment placed until June 30th Union Negotiations IBEW presented a package of items and KIB has responded. Presentation to the Coast Guard On June 8t", Mayor Griffin, Mayor Haines, Deputy Manager Bahnke, and I gave a presentation to the CG about why Kodiak would be a good destination for the new icebreakers. Hospital Facilities Advisory Board KIB is beginning the kickoff of lease negotiations for the lease that expires at the end of June 2027. Our first request was to get Providence financial records for the last three years so that we can have a better understanding of the fiscal situation Providence is dealing with here in Kodiak. Russian River and Sargent Creek Bridge Replacements Attended the project stakeholder working group kickoff meeting. During the meeting, the work that has been done over the last several months was presented to a larger group of stakeholders who were then allowed to ask questions and offer feedback. Non-profit Funding Schedule • June 30 — Nonprofit funding applications are due • July 2 — Summarized information and applications emailed to the Assembly Page 3 of 115 AGENDA ITEM #2.a. • July 9 — Work session agenda item for the Assembly to ask any questions that they might have about the applications • July 30 — Work session agenda item for the Assembly to discuss distribution of funds • August 6 —Assembly approval of funding • August 10 — Distribution of nonprofit funding agreements • August 21 — Nonprofit funding agreements due • August 24 — Submit check requests for nonprofits who have returned their applications Community Development Parks and Recreation Committee The Borough Parks and Recreation Committee met on June 24, 2026. The meeting focused on the review of a resolution to the Planning & Zoning Commission recommending that a playground project for Harlequin Court Park be added to the CIP list. The resolution passed unanimously 4 to 0, with 2 absent members and 1 open committee seat. The resolution will be forwarded to the Planning & Zoning Commission for its consideration during the CIP review process in the early fall. Planning and Zoning Commission The Planning & Zoning Commission met on June 17, 2026, for its regular meeting. The Commission reviewed a conditional use permit request from the Native Village of Karluk related to a utility facility for improvements to the community's public water facility. The Commission approved the conditional use permit 5 to 0 with 1 absent member and 1 vacant seat. The next meeting of the Commission will be on July 8, 2026. PLAN 2045 Comprehensive Plan The first draft chapter is ready for review by the Planning and Zoning Commission at its next work session on July 8, 2026. This will be review of the introduction chapter of the comprehensive plan, which focuses on descriptions of the community, review of the comprehensive plan process, review of demographic data, and presentation of the community vision statement and planning principles. Once the Commission completes its review of this chapter, community development staff will schedule the chapter for the next available Assembly work session for review. The plan is to review chapters first by the commission followed by the Assembly. Once plan has been fully reviewed a draft comprehensive plan document will be compiled and submitted for public review and comment prior to the start of the comprehensive plan review and approval process. Page 4 of 115 AGENDA ITEM #2.a. Finance Department 2024 Tax Foreclosures The end of the redemption period is July 6, 2026. After that date, documents will be submitted to the courts to obtain a Clerks Deed to the real properties that still owe taxes from 2024. 2025 Tax Foreclosures Staff has submitted documents to the attorney to be filed with the courts. Once signed, the Judgement will put a lien on real properties until the delinquent taxes are paid. Since additional interest and fees continue to accrue, please call the finance department at 907-486-9324 for payoff amounts. 2026 Tax Billing/Statements Tax statements have been submitted to the printer and will be mailed to property owners on or before June 30t" Property Assessment and Taxation Implementation Project Levy was completed through the new software and tax bills/statements have been sent to the printer. Staff is still working with the Tyler finance group to complete other items such as delinquent notices and data exports to our accounting software. Dual entry will end as of July 1. Assessing Important Notes for Summer 2026 • Reviews will be for properties in the City of Kodiak • Our annual report is due to the State of Alaska on July 1, 2026. KIB has asked for an extension to the deadline because Tyler has yet to be able to provide the necessary information for this report. Clerk Information Request: Provided reporting for Tony's Bar Liquor License Renewal SC/DV Exemptions: Assessing staff was alerted by PFD staff that they were understaffed and application processing was going very slow. Typically, the annual count of undetermined or no file PFD's run between 30-35 applicants. This year, Assessing sent courtesy letters to 156 exemption applicants. 58 for undetermined status on their PFD applications and 98 for no application for us to view. Page 5 of 115 AGENDA ITEM #2.a. Exemption Updates The following timely filed exemption applications: o Kodiak Maritime Museum o Kodiak Masonic Temple o Calvery Baptist Bells Flats Exemption Appeals 1. The Alutiiq Heritage Foundation o 2023 Refund Case — Trial scheduled for July 27-29, 2026; however, this decision has been stayed until there is a decision on the appeal of the 2024 Board of Equalization decision. o 2024 Appeal Case — Superior Court oral arguments are scheduled for July 24, 2026. Both attorneys will attend via zoom. Assessor will attend in person. o 2025 Reconsideration — On hold until the 2024 Appeal case is complete 2. Alaska Supreme Court Case with KANA - No decision yet. Tyler Conversion Assessing staff went live with the residential and multi -use properties on June 23. Staff has begun writing properties and debugging small inconsistencies with Tyler staff. Remapping Commercial properties will begin Friday June 26. We will continue weekly meetings for both conversions. Go live date of July 31 for commercial properties. Information Technology Systems Administration The IT department has implemented a new remote access system for the staff at the LTP plant to improve their ability to monitor the plant's systems via mobile tablets. We have also received new PC workstations for KIB staff which we will be deploying over the next few weeks. IT has also been reviewing and updating the consulting contract for our Proxmox virtualization platform configuration which should kick off at the beginning of FY2027. Cybersecurity and Risk Mitigation The Koniag Cyber and Kodiak Island Borough cybersecurity infrastructure project is on track and well into execution. Planning, design, procurement, and staging are complete, and the new Fortinet firewall, switching, and security platform is fully built and centrally managed. The main -site cutover is confirmed for the after-hours window on Monday, July 20, with branch sites, security hardening, testing, training, and closeout to follow through the fall. Page 6 of 115 AGENDA ITEM #2.a. GIS GIS has been working on capturing new drone imagery of KIB properties, as well as well as creating a map for Engineering showing the bear fence out at the Landfill. We are currently testing software to process the raw aerial data captured by our WingtraOne Gen II drone. This software stitches high -resolution drone photos into accurate, measurable map layers for our Esri ArcGIS enterprise system. This will provide updated visual data for internal KIB staff, while simultaneously upgrading the Borough's public -facing online mapping portals. Engineering and Facilities KFRC Seawater Pumps KFRC Seawater pump extensions are complete for pumps #3 & #4. The facility has been operational, and staff are working to realign the building's automation system to the original design intent. IPA will be returning to install the other pumps in the coming weeks. PKIMC Elevator #2 The seals for Elevator #2 have been replaced, and PKIMC reported that the elevator is operational. Solid Waste Contract Request for Proposals The Solid Waste RFP is posted on the KIB website and will close on August 4, 2026. Fuel Spill Assistance • Landfill Soil Remediation: Staff continue to till the soil and uncover the land farm in periods of good weather. • Long Term Care: NWFF is beginning to schedule work. Staff are anticipating more movement in June. • Karluk: 3-Tier Alaska is beginning to schedule trips. Staff are anticipating more movement in July. Building Automation Systems (BAS) • Kodiak Fisheries Research Center (KFRC) — RESPEC completed their assessment of the facility, and we were able to reduce the overall building temperature by 10 degrees. NOAA staff are very happy with the results. On June 24th, staff met with LONG technologies and will be using the remaining hours in the service contract to re -baseline the system to match the original design intent. • Kodiak Island Borough Admin Building: Staff received a proposal from LONG Technologies at the cost of $133,520 to conduct the work to fix the AHU2 issues. It is on the agenda for discussion tonight. Page 7 of 115 AGENDA ITEM #2.a. Small Projects • East Elementary Roof Hazardous Material Testing — Awarded to EMI, and they have been scheduled for June 30th. • Port Lions School Painting Project: Project staff have been working with Koela Painting Services to get through the submittal review process. • Annex Bldg. (old Red Cross) UST Removal: This contract is up for discussion on the agenda. • Mill Bay Beach Stairs and Picnic Table Replacement: The contractor has mobilized, and the project is underway. The stair assembly is heading to Kodiak. • Leachate Treatment Plant Citric Acid Dosing Skid Replacement: Staff are working to organize the installation of the skid. • KIB Main Office Roof Warranty: Staff are waiting on a schedule from the contractor. Upcoming Contracts • Environmental Services Contract — Staff received three proposals and are now in the evaluation phase. • Facilities Road Maintenance & Snow Contract- on hold awaiting a review of a formal protest • Janitorial Contract — Intent to award has been issued to the single responsive bidder • Preferred Vendors Contract - Staff are preparing a request for quotes. Upcoming Meetings • ARB RM, June 29, 2026, at the Borough Conference Room • HFAB RM, July 7, 2026, at the PKIMC Pillar Conference Room Page 8 of 115 AGENDA ITEM #2.a. RentalScape Information Rental Structure ■ ADU (11%) ■ Main Structure (50%) ■ Multifamily (31%) ■ Other (8%) ■ Unknown (0%) STR Properties 113 Q -5 STR Properties This Month 130 125 120 115 110 I91 A I91 A Jun Jul Aug Sep Oct %0'. Dec Jan Feb �-1ar Apr May Page 9 of 115 AGENDA ITEM #2.a. Booking Activities 26% Occupancy This. 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R22lSQ:Ot01 202511.12 ste✓lerse e•tK•b pJlnpleue 2011.02-Cill f.JIUnR Muleem.y 3 30 32 S3N KRd,d.AKaae1S :AWN,,* Un0A 3641fu11nC. 3led 2SMhMcraeASent 11223SCUMI 2MS-11-12 All 201a-074/ FWIUnIt M.Reem.y 0 0 Radek AK YJbli WVubc.v Xu 00,Ws a dow on LW we MO in JOW Swwr Cane W [&ale s Nest • The Stka Sv me R/l S(311%0 RM ak AR WK 1 S lW111.12 "keY a.pr.0 RnrRn AU2- l-la 1101 V.c MM ltrut[unr 0 0 AGENDA ITEM #2.a. Kodiak Island Borough OFFICE of Engineering & Facilities Projects Office 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486-9341 EFproiects(a_kodiakak.us TO: Mayor and Assembly FROM: Codi Allen, EF Director, and Patricia Valerio, Projects Assistant CC: Aimee Williams, Borough Manager RE: Monthly Projects Report for Period Ending June 2026. ........................................................................................................................... Project Dashboard KIB Proilect Dashboard 512,260,039.11 %W,497.51 $210,638.66 $246,184.61 hhne 2076 Sum of Total ROM Sum of Design Sum of Indirect Admin Sum of Direct Admin Sum of Total ROM by Calcyot y Sum of Total ROM by Protect Title •Kt0 pubd"s & •Schwa Pfutm h. •1sKtMC •KrRC 61 rrttutrr TwArn •landN1 The Kwwk Wr-4 Svrvuo Ouiklmg erW Gtvvndh (K19 builUmyh & Grvund)) ittnuntr'd ley SS 9)q, v1 thr Sum nl TaLd ROM *dh S worn I% c unrntly ('lr•n Mental Htatth fiwldytyt uen'w accounted for 22.18% Myheri Sum of Constwetlort at S2.918 S60. The Kle Admit Roof (Warranty Repays) SCcowntea for the lovmt Sum of Conarv~ at $23.60226 Wr r wtrntly hour III K trw ptaprcts: i of Comtrvmo� Range from U.) WL26 • 629ta %o Sum of (kwtn ROW fmm 1000 S1SI 1SS • Z✓ of 0.wt Admn Ita pt f om So 00 • $1 OS 6e2 21 • Sow nl 1wAvtA Adrn+l Relyse Nent SS Om SSI.MA7 0 n': 026M (" VAM (! -M 0 S&M 1A sA, O"M (S)7%) 0. aM IUIV 139M ( 11)21Q 17M (17. VA.) Count of Category by Category ► Oj et Tltle •m*mal leaRr L: i!M (ll:.'ttl •Fatf FMmrMary Rnnf .. . • north star Roof & 1ky110M Reptace— •AutomatK Trans* Salk% "Ce *Km" Scholl Purl Spat AW Ckr. •ru•vrry (ern~ A vram c,twrat. :s0MC L" Term Cate fuel Spls A. ••:PRC CrJ*A" PUMPR.pLYrrrlt•nt% _ 'ua 1t7aa11 •'.w. rrd Cart PLrylpm"I Upgradre 61)" SmaR Destrucaw Tetttng Me}_ Category • • If • Projects Report —June 2026 Page 12 ofP1aff 1 AGENDA ITEM #2.a. CAPITAL IMPROVEMENT PROJECTS KIB MILL BAY STAIR REPLACEMENT — Construction Project Description: This project is for the design for demolishing of the existing wood stairs, which have been failing. The new designed replacements will consist of new footers with stairs made of galvanized steel. The design is being managed by JYW with PND Engineers, INC., conducting much of the design effort at a cost of $9,538. Contract was awarded to S&S Enterprise dba Kodiak Lawn Care for the cost of $101,000 (Base bid plus installation of two picnic tables). Current Status: As of May 15, the picnic tables have been fully installed, and concrete pads have been poured and cured. The stairs are fabricated, awaiting galvanization, final assembly, and shipping. Rough Order of Magnitude (ROM) Estimates: Design Cost - $9,538.00 Indirect Admin Cost - $10,000.00 Direct Admin Cost - $5,000.00 Construction Cost-$101,000.00 Change Order 1 — ($1,060.95) Change Order 2 - $2,500.00 Total Project ROM at Current Project Level - $126,977.05 OTHER ASSIGNED MAJOR MAINTENANCE PROJECTS LTP CITRIC ACID SKID REPLACEMENT — Equipment Ordered Project Description: This project is to replace the Leachate Treatment Plant Citric Acid Skid. The skid is what meters the acid for the plant's operations. Veolia is the original manufacturer of the skid, ordering their replacement equipment is the most cost effective way to ensure success of replacement. Current Status: As of June 16, staff have fully executed contracts with a plumbing/mechanical contractor and an electrical contractor for assistance of installation. The replacement skid is due to arrive July 7. Rough Order of Magnitude (ROM) Estimates: Design Cost - $0.00 Indirect Admin Cost - $5,000 Direct Admin Cost - $3,000 Equipment Purchase - $40,039 Construction Services Cost - $28,280.50 Total Project ROM at Current Project Level- $76,319.50 LANDFILL CONTAMINATED SOIL — Sampling Phase. Project Description: There are 71 supersacks of contaminated soil stored at the Landfill. This project is to determine how the Borough will be handling the contaminated soil — landfarming on -site or shipping it off. Projects Report —June 2026 Page 13 ofP.apS 2 AGENDA ITEM #2.a. Current Status: As of May 28, staff received the first sampling report. There were some readings that registered as too high to be able to close the project. Since then staff have been removing the plastic covering on nice days and tilling the soil to speed up the off -gassing. NWFF is schedule to conduct another sampling event further into the fall months. Rough Order of Magnitude (ROM) Estimates: Design Cost - $0 Staff Completed Workplan In -House Indirect Admin Cost - $15,000.00 Direct Admin Cost - $1,000.00 Future Construction Cost - $61,500.00 Change Order 1 - $7,313.77 Total Project ROM at Current Project Level - $84,813.77 KFRC HVAC SYSTEM INVESTIGATION AND BASELINE — Report Complete Project Description: The KFRC building is currently experiencing temperature -control issues in the office spaces, and the air balancing team has not been able to complete a Test and Balancing (TAB) due to discrepancies between as -built conditions and original design. Current Status: As of June 19, RESPEC completed their report and submitted it to staff. Staff have now taken some of the actions suggested and have seen some improvements in the HVAC system operations. Staff is now working with LONG Technologies to re -baseline the BAS system. Rough Order of Magnitude (ROM) Estimates: Design Cost - $14,882.00 Indirect Admin Cost - $10,000.00 Direct Admin Cost - $5,000.00 Future Construction Cost ROM - $200,000 Total Project ROM at Current Project Level - $229,882.00 KFRC SEAWATER PUMP REPLACEMENTS — Extensions 50% Installed Project Description: This project is for replacement of the KFRC Seawater pumps and associated parts. The four pumps were replaced in 2019, and the degradation of seawater is taking its toll on the current pump systems. The KIB Assembly approved the purchase and installation costs of five (5) pumps from IPA (Industrial Pumps of Alaska). Current Status: On June 8, installation of pump #3 and #4 extensions began and was successfully completed on June 9. Staff evaluated the piping system, made some adjustments and changes to operations which has overall increased the production and reliability of the entire system. As of June 19, the extensions for pump #1 and #2 were shipped out. Staff are waiting for them to arrive to schedule the installation. Rough Order of Magnitude (ROM) Estimates: Design Cost - $0 RFP Solicitation Indirect Admin Cost - $10,000.00 Direct Admin Cost - $0 In -kind replacement Construction Cost - $228,480.45 Change Order 2 - $41,704.05 Total Project ROM at Current Project Level - $280,184.50 Projects Report —June 2026 Page 14 ofP1apS 3 AGENDA ITEM #2.a. KIB MAIN BLDG ROOF WARRANTY REPAIRS — Awaiting Construction Project Description: This project will consist of the removal of the section of failed roofing material and the demolishing of the curbs that supported systems no longer in service. On June 23, 2025, Johns Manville conducted an inspection with a certified installer. The work is anticipated to be completed by Friends Contractors in the spring of 2026. Current Status: Awaiting materials delivery and weather to conduct the work. As of June 23, staff received an update that the contractor is working on anotherjob, and once that is closer to completion they will coordinate the start of work. Rough Order of Magnitude (ROM) Estimates: Design Cost - $0 Warranty Repair Indirect Admin Cost - $5,000.00 Direct Admin Cost - $1,000.00 Construction Cost - $23,602.28 Cost for work outside of warranty repair Total Project ROM at Current Project Leve 1- $29,602.28 LTP LEACHATE LAGOON CLEANOUT — Design. Project Description: This project is to engineer and execute a cleaning of the leachate storage lagoon. To staff's knowledge this was attempted once before, but was unsuccessful. With this staff are attempting to align the LTP with the original processing design and be able to produce better results of the processes. Current Status: As of June 11, staff held a kick-off meeting to discuss next steps with the Tetra Tech team. Additional information was shared and Tetra Tech began their review. Staff scheduled another meeting with Tetra Tech focused on ADEC requirements and coordination. Rough Order of Magnitude (ROM) Estimates: Design Cost - $34,222.00 Indirect Admin Cost - $10,000.00 Direct Admin Cost - $5,000.00 Future Construction Cost ROM - $150,000 Total Project ROM at Current Project Level- $199,222.00 SARGENT CREEK PLAYGROUND UPGRADES - Investigation Project Description: This project is for procurement and installation of updated playground equipment at Sargent Creek Park. This is a grant funded project. Grant award was $251,426.50 and was redirected by resolution FY2024-04 from the Antone Dock Upgrade project. In April 2024, three new playground equipment items were procured. In September 2024, site work and two of the three new equipment pieces were installed. The third piece was not installed due to cost, space, and safety zone considerations. Current Status: Staff are currently investigating the costs for installation for the third piece of equipment and other site improvements. Remaining funds for grant: $97,258.67 Rough Order of Magnitude (ROM) Estimates: Design Cost -$0 Direct Admin Cost - $105,642.28 Indirect Admin Cost - $16,025.55 Permitting Cost - $5,000.00 Projects Report —June 2026 Page 15 ofP1apS 4 AGENDA ITEM #2.a. Previous Construction Cost - $52,500.00 Future Construction Cost - $97,258.67 Total Project ROM at Current Project Level - $276,426.44 KARLUK FUEL SPILL ADEC CLOSEOUT — Awaiting Construction Project Description: This project will consist of three tasks. Task one is the development of an ADEC approved work plan for additional characterization at the Karluk School. Task two is the field work associated with characterizing and delineating the extent of the remaining contamination at Karluk. Task three is the characterization report itself. This will help guide future direction from ADEC on how to proceed with closure. Current Status: As of June 22, the contractor is still attempting to schedule the drilling operations. Rough Order of Magnitude (ROM) Estimates: Design Cost - $133,338.00 Indirect Admin Cost- $45,747.22 Equipment Cost - $41,350.00 Direct Admin Cost - $5,542.39 Previous Construction Cost - $311,000.00 Future Construction Cost - $200,000.00 Total Project ROM at Current Project Level - $611,824.61 PKIMC LONG TERM CARE FUEL SPILL ADEC WORKPLAN DEVELOPMENT — Under Contract Project Description: This project will consist of the development of an ADEC approved site investigation work plan for the PKIMC LTC fuel spill. Current Status: As of June 19, staff received an update that the contractor is preparing the drilling rig and would follow up with a more detailed schedule soon. Rough Order of Magnitude (ROM) Estimates: Design Cost - $110,992.00 Indirect Admin Cost - $81,898.47 Equipment Cost - $38.107.57 Direct Admin - $3,500.00 Previous Construction Cost - $171,439.09 Future Construction Cost - $150,000.00 Total Project ROM at Current Project Level - $456,429.83 PORT LIONS SCHOOL PAINTING — Contracted Project Description: This project is for the re -painting of the Port Lions School building. This design is being managed by JYW at a cost of $14,934. Current Status: As of June 23, Staff along with JYW are still reviewing submittals. Estimated start of work is week of July 6. Rough Order of Magnitude (ROM) Estimates: Design Cost-$14,934 including C&A Fees Indirect Admin Cost - $5,500 with one site visit Direct Admin Cost - $1,000 Bid Submission Construction Cost - $143,000 Projects Report —June 2026 Page 16 ofP1aPS 5 AGENDA ITEM #2.a. Total Project ROM at Current Project Level - $164,434 ANNEX FRED CROSSI BUILDING UST REMOVAL — Awaiting Award Project Description: This project was an alternate in the Mental Health Building Abatement project but was denied for award at a cost of $80,000. Therefore, a separate project was created for the removal and abatement of the UST located at the KIB Red Cross building. Current Status: As of June 18, the Notice of Intent to Award was issued. Staff are awaiting approval by the Assembly on the meeting cycle for July 2. Rough Order of Magnitude (ROM) Estimates: Design Cost - $2,228.00 Indirect Admin Cost - $5,000.00 Direct Admin Cost - $1,500.00 Future Construction Cost - $33,400 Total Project ROM at Current Project Level - $42,128 FUTURE PROJECTS IN DESIGN NORTH STAR ROOF & SKYLIGHT REPLACEMENT — Project Description: This project is for the replacement of the NorthStar Elementary school roof and sky light. This design is being managed by JYW at a cost of $107,703. The ARB voted to move forward with bringing in a structural engineer to assess the stability of the structure and if it will be sufficient to hold solid walls as proposed. On May 15, 2025, the Assembly approved the change order to bring in a structural engineer to help finish the design in the most cost-effective way possible. Current Status: As of June 5, staff received 95% drawings and are awaiting review by the Architectural Review Board. Rough Order of Magnitude (ROM) Estimates: Design Cost - $115,000.00 Indirect Admin Cost - $5,000.00 Direct Admin Cost - $50,000.00 Future Construction Cost - $1,953,564.00 Total Project ROM at Current vroject Level - $2,123,564 EAST ELEMENTARY ROOF REPLACEMENT — 65% Project Description: This project is a continuation of the conceptual design efforts made in 2022. The scope of the project is for the replacement of the 1984 and 1987 wings of the East Elementary school roof, replacing the roof in all areas not re -roofed in 2016. The original flat portion of the building will be reconstructed to raise the pitched roof and eliminate the internal gutter between the newer and older roof sections. The design is being managed by JYW with PND Engineers, INC. with a combined design effort at a cost of $119,344. Current Status: As of June 18, EMI is scheduled to be on -island June 30 to conduct the sampling for evaluating the hazardous materials involved with the roof replacement project. Rough Order of Magnitude (ROM) Estimates: Projects Report —June 2026 Page 17 ofP.apS 6 AGENDA ITEM #2.a. Design Cost - $83,456.60 Indirect Admin Cost - $5,000.00 Direct Admin Cost - $50,000.00 Construction Cost - $2,000,000.00 Total Project ROM at Current Project Level - $2,138,456.60 POOL SMALL DESTRUCTIVE TESTING PROJECT — 35% Project Description: This project will consist of a small demolition and destructive testing project to determine the overall extent of the future pool project. Current Status: As of June 9, staff received 35% drawings and are awaiting review from the Architectural Review Board. Rough Order of Magnitude (ROM) Estimates: Current Design Cost - $14,000.00 Previous Design Cost - $59,540.00 Indirect Admin Cost - $13,000.00 Direct Admin Cost - $2,000.00 Construction Cost - $172,500.00 Total Project ROM at Current Proiect Level - $261,040 PKIMC AUTOMATIC TRANSFER SWITCHES — Design Project Description: This project is to replace the aging and non -reliable automatic transfer switches at the Providence Kodiak Island Medical Center. Current Status: As of May 13, staff have executed a contract with AMC to conduct the design for this project. Rough Order of Magnitude (ROM) Estimates: Current Design Cost - $151,155 Previous Design Cost - $45,033 Indirect Admin Cost - $10,000 Direct Admin Cost - $5,000 ROM Construction Cost - $1,602,425.00 1 otai Project ROM at Current Project Level - $1,813,613 PKIMC REVERSE OSMOSIS & STEAM GENERATOR — Paused Project Description: This project is to replace and upgrade the two existing electric steam generators serving the sterilization department at Providence Kodiak Island Medical Center. Current Status: As of June 11, this design process is paused for more internal discussion regarding the size and sequencing of the sterilizers currently being used. Rough Order of Magnitude (ROM) Estimates: Current Design Cost - $73,090 Previous Design Cost - $29,788 Indirect Admin Cost - $10,000 Direct Admin Cost - $5,000 ROM Construction Cost - $1,521,736 Total Project ROM at Current Project Level - $1,639,614 Projects Report —June 2026 Page 18 ofPfapS 7 AGENDA ITEM #2.a. Projects Report —June 2026 Page 19 ofP1apS 8 AGENDA ITEM #2.a. MENTAL HEALTH BUILDING DEMO OR RENOVATION- Paused Project Description: This project is the potential renovation or demolition of the abated mental health buildings. Current Status: As of May 2025, the contractor had completed the abatement. Staff are awaiting Assembly direction. Rough Order of Magnitude (ROM) Estimates: Design Cost - $32,121.91 Indirect Admin Cost - $18,467.42 Direct Admin Cost - $0 contractor was responsible Previous Construction Cost - $1,515,045.10 Future Construction Cost Demo - $1,352,926.00 Future Construction Cost Renovation - $8,125,680.00 Total Project ROM at Current Project Level - $2,918,560.43 to $9,691,314.43 Projects Report —June 2026 Page 20 ofP1aPS 9 AGENDA ITEM #3.a. V,. KODIAK ISLAND BOROUGH STAFF REPORT JUNE 25, 2026 ASSEMBLY WORK SESSION SUBJECT: Sourcewell Procurement System Presentation ORIGINATOR: Codi Allen, E&F Director RECOMMENDATION: Receive a presentation regarding Sourcewell Procurement and possibly authorize the Manager to allow the use of SourceWell Account #239178 at a later meeting. DISCUSSION: Background The Kodiak Island Borough currently maintains an active Sourcewell membership account (#239178), which provides access to competitively solicited cooperative purchasing contracts that may be utilized by the Borough for the procurement of goods, services, professional services, and construction -related projects. The Borough has previously utilized cooperative purchasing agreements available through NASPO ValuePoint and other cooperative procurement programs when authorized and appropriate. Sourcewell operates under a similar cooperative purchasing model and serves as an additional procurement resource available to the Borough. The use of cooperative purchasing contracts does not replace existing procurement requirements or oversight responsibilities. Rather, it provides staff with an additional procurement method that may be evaluated on a case -by -case basis to determine whether it serves the Borough's best interests and complies with applicable purchasing policies and state law. About Sourcewell Sourcewell is a public service cooperative and governmental agency that provides cooperative purchasing services to eligible public entities throughout North America. Sourcewell conducts a competitive solicitation process, including public notice, proposal evaluation, and contract award, resulting in contracts that are available for use by participating member agencies. Discussion The Borough's active Sourcewell membership provides an additional procurement tool that may be used when appropriate and is consistent with Borough purchasing policies and applicable state law. Utilizing Sourcewell contracts may offer several advantages, including: • Access to competitively awarded contracts; • Reduced procurement timelines and administrative effort; • Compliance with Alaska cooperative purchasing statutes; • Potential cost savings through leveraged purchasing power; and • Access to a wide range of vendors, products, and services. Requested Discussion Kodiak Island Borough Page 21 of 115 Sourcewell Procurement System Presentation AGENDA ITEM #3.a. KODIAK ISLAND BOROUGH STAFF REPORT JUNE 25, 2026 ASSEMBLY WORK SESSION Staff seeks a discussion regarding the Borough's use of Sourcewell cooperative purchasing contracts as an authorized procurement method and any direction the Assembly may wish to provide concerning future use of cooperative purchasing opportunities. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Legal Authority Alaska law authorizes public entities to participate in cooperative purchasing agreements. Alaska Stat. § 36.30.700 — Cooperative Purchasing Authorized states: A public procurement unit may participate in, sponsor, conduct, or administer a cooperative purchasing agreement for the procurement of supplies, services, professional services, or construction with one or more public procurement units or external procurement activities in accordance with an agreement entered into between the participants. The statute further authorizes the use of joint or multi -party contracts and cooperative procurement agreements made available to local government entities. Kodiak Island Borough Sourcewell Procurement System Presentation Page 22 of 115 F— • operative Purchasing 101 What's in it for you? -� December 11, 2025 Fir �,. Sourcewell tai 7- aiiii.0�7 awk i 1 = • - - � ' W19N1 pow Mill- Jw 0 CD 0 0 CD 3 0 m Cn 1< 0 CD CD m Overview • What is cooperative purchasing? • How does it work? • Why would I be interested? • What do I do next? �r " or11 &.W-j 0 m 0 0 (7 0 M Cn 1< Cn m T lVmm (n 0 M v N CSn a z Why are we here? ■ You have purchasing needs ■ You want to increase efficiencies ■ You want to secure the equipment/supplies that work best for your department 0 CD 0 0 0 CD 3 m m cn l< 0 CD 3 T 0 0 m v 0 m T 0 c 0 cu m 0 3 CD Cn CD 0 CD N V 0 Ai Purchasing with a Cooperative Contract Comparison Traditional Bid Cooperative Contract V/• Spec out equipment "I Coop Contract • Advertise tender/bid • �• Respond to tender/bid P.O. issued • Equipment delivered Tender/bid opening / Bid evaluation Make payment �• Award lowest bidder VS6 ✓• Protest period • P.O. issued • Equipment delivered • Make payment 5 0 m 0 0 m Cn 1< Cn 0 m v N W a z What is cooperative purchasing? ■ Connecting buyers and sellers ■ Creating efficiencies and savings 0 CD 0 0 0 CD 3 m m cn l< 0 CD 3 T 0 0 m v 0 m Using cooperatives 0 0 v W a z Legal statutes Agency policy and procedure T 0 c 0 cu m 0 0 CD Cn 3 CD CD 0 Ai Cooperative considerations ■ RFP process ■ Transparency ■ Registration ■ Customer service 9 0 m 0 0 M Cn 1< Cn 3 0 M N (D W N a z Contract considerations ■ Pricing ■ Terms and conditions ■ Compliance ■ Local preference ■ Award and maturity date ■ Support of local goals ■ Contract flexibility err . o �oui elOu.Si rpe re0IOS4S 1w r•apo+.r ur.o.e.....�n S. HIIS.. W V r rrrr�wr...wr�.rr�r..yrwry�r� �wr Aga /r rwr r M�� r r ♦Lr _ r r�r ISw. rer.l P4.r 06.Md *no* as ti1,�r r arrn•►�.u.�.r+rr.rrr.. 91MOMMMIdn" COWS ram r.rww ..ee...ra r r�..r e.r+r.r r.r►e�r rrr 0 m 0 0 M Cn 1< Cn 3 M a z Value of cooperative purchasing ■ Satisfies the competitive process ■ Speedier contract creation ■ Ready -to -use contracts ■ Emergency Replacement ■ Cooperative relationships 0 m 0 0 CD Cn 1< Cn CD CD M a z Who uses cooperative pL,I I �hasing? ■ State and local government entities ■ Public and private education ■ Nonprofits (tax-exempt organizations) Sourcewell MgLi 12 0 m 0 CD Cn 1< Cn 3 T 0 Ai The valtie of relationships ■ Collaborative efforts ■ Contract opportunities ■ Successful contracts Connect with your cooperative contact i 0 m 0 v W 0 K sourcewell-mn.gov Sourcewell i Ross Nelson 320-522-0100 Ross.nelson@sourceweI1-mn.gov AGENDA ITEM #3.b. KODIAK ISLAND BOROUGH STAFF REPORT JUNE 25, 2026 ASSEMBLY WORK SESSION SUBJECT: Discuss Draft Ordinance Implementing Marijuana Tax ORIGINATOR: Caroline Roberts, Assembly Member RECOMMENDATION: Review Draft Ordinance from Assembly member Roberts before sending final draft to the Borough Attorney. DISCUSSION: Assembly members Roberts and Woods have requested that the assembly consider a new excise tax on marijuana sales. Following assembly discussions on April 9, 2026, the Clerk's Office gathered the following research information: • City of Kodiak Memo regarding 5-Year Marijuana Sales Tax • Compilation of tax rates from various municipalities in Alaska • Sample Ordinance from Fairbanks North Star Borough placing the proposition on the ballot • Revisions to Fairbanks Code following the proposition's approval During the May 28, 2026, work session, the assembly asked Assembly member Roberts to write a preliminary ordinance. This initial draft ordinance is now attached to your packet for review. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Alaska Statutes Section 29.45.670 A new sales and use tax or an increase in the rate of levy of a sales tax approved by ordinance does not take effect until ratified by a majority of the voters at an election. To implement a marijuana sales tax, compliance with AS 29.45.670 is necessary. If the Assembly intends to add a proposition on the ballot, the timeline would be as follows: • July 10, Packet deadline to introduce an ordinance • July 16, Introduce the ordinance by July 16. • August 6, Public hearing and adoption (absolute deadline). Kodiak Island Borough Page 37 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 KODIAK ISLAND BOROUGH ORDINANCE NO. FY2027-NN AN ORDINANCE LEVYING AN AREAWIDE MARIJUANA EXCISE TAX, ESTABLISHING THE COMMUNITY WELL-BEING FUND, AND PROVIDING FOR VOTER APPROVAL OF THE TAX WHEREAS, the Kodiak Island Borough seeks to diversify its revenue sources to address current and future financial challenges; and WHEREAS, the Assembly desires to establish a revenue source that may support programs and services benefiting Borough residents without increasing the property tax mill rate; and WHEREAS, Alaska Statute 17.38 authorizes the legal sale of marijuana and marijuana products within the State of Alaska; and WHEREAS, the Assembly finds that a modest excise tax on marijuana and marijuana products may provide a dedicated source of funding for community benefit programs; and WHEREAS, it is the Assembly's intent that revenues generated through the Marijuana Excise Tax be deposited into the Community Well -Being Fund and used to support programs, services, projects, and grants that promote the health, safety, well-being, education, housing stability, recovery, reentry, childcare, and quality of life of Borough residents; and WHEREAS, the Assembly intends to review the tax and the effectiveness of the Community Well -Being Fund within three years of implementation. NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH that: Section 1: Section 3 of this ordinance is of a general and permanent nature and shall be codified. Section 2: Election. [Ballot proposition language to be determined.] Section 3: Kodiak Island Borough Code is amended to add a new chapter to read as follows Chapter XX.XX Marijuana Excise Tax XX.XX.010 Marijuana Excise Tax Levied. There is hereby levied an areawide excise tax equal to three percent (3%) on marijuana and marijuana products sold at retail within the Kodiak Island Borough. XX.XX.020 Quarterly Remittance. The excise tax imposed under this chapter shall be remitted to the Borough on a quarterly basis. Returns and payments shall be submitted in a form prescribed by the Borough. XX.XX.030 Definitions. Ordinance No. FY2027-NN First Draft for Review June 25, 2026, Work Session Page 1 of 2 Page 38 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 "Marijuana" means all parts of the plant Cannabis, whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, derivative, mixture, or preparation of the plant, its seeds, or resin, as defined by Alaska law. "Marijuana Product" means a product containing marijuana and intended for use or consumption, including concentrates, edibles, tinctures, topical products, and other products as defined by Alaska law. XX.XX.040 Community Well -Being Fund. A. There is hereby established the Community Well -Being Fund. B. Revenue generated from the Marijuana Excise Tax shall be deposited into the Community Well -Being Fund. C. Monies in the Community Well -Being Fund may be appropriated by the Assembly for programs, services, projects, and grants that promote the health, safety, well-being, education, housing stability, recovery, reentry, childcare, and quality of life of Borough residents. D. Monies deposited into the Community Well -Being Fund shall remain in the fund until appropriated by the Assembly and shall not lapse into the General Fund at the end of a fiscal year. XX.XX.050 Review. The Assembly shall review the Marijuana Excise Tax and Community Well -Being Fund no later than three years after the effective date of this chapter to evaluate revenues generated, administrative impacts, community benefits, and whether modifications should be considered. Section 4: Effective Date. Section 2 of this ordinance shall be effective at 5:00 p.m. on the first Borough business day following its adoption. Section 3 of this ordinance shall become effective on January 1, 2027, provided a majority of the qualified voters voting on the ballot proposition approve the measure. ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS KODIAK ISLAND BOROUGH Jared Griffin, Borough Mayor DAY OF , 2026 Introduced by: Assembly members Roberts and Woods First reading: Second reading/public hearing: VOTES: Ayes: Noes: Ordinance No. FY2027-NN First Draft for Review June 25, 2026, Work Session ATTEST: Nova M. Javier, MMC, Borough Clerk Page 2 of 2 Page 39 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. No Tooz�-v(o KODIAK ISLAND BOROUGH ATTACH THE ORDINANCE, RESOLUTION, OR AGENDA ITEM INFORMATION FOR ITEMS THAT ARE READY TO BE PLACED ON THE AGENDA DATE SUBMITTED: 7�' 2-k ZOZAO Requestor: Cm gy)e �—OlxrtS Preferred Mtg. Date: —` � �I j 2(O Item Description: R�yiSi� C(AVYtYNr coals 310.030 , to Y��SQs� t ca5sibi 1�� �i��leme jh� otn excf�e fi��r`,h W011i;1661ha sghes_ REQUEST FOR ASSISTANCE STAFF TO PREPARE AN ORDINANCE OR RESOLUTION Requestor 1: � Ot`(' 6lf Requestor 2: J� I-A)60`tt) Detailed Description: ,oes-tm OAS mo►h ct cl ui fi-n e view code tv reFlec t LEGAL OPINION REQUEST Requestor 1: Date when you want the opinion by: Detailed Description: See pertinent code sections on the back. Requestor 2: Revised on: 20240607 nj Page 40 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. KIBC 2.30.050 (C.3) Agenda items submitted by an assembly member or the mayor without staff assistance, or submitted by the manager, shall be included on the agenda within 60 days. KIBC 2.30.060 (B) Preparation of agenda items. ordinances, resolutions, or other proposed agenda items may be submitted to the clerk by an assembly member, a committee of the assembly, the mayor, or the manager for placement on the agenda. An assembly member may request an item placed on the assembly agenda by completing an agenda request form provided by the borough clerk's office and providing a copy of the proposed item in a format that is ready to be placed on the agenda. KIBC 2.20.070(C.1) Requests for Staff Assistance. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, the mayor may request that the manager, clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the clerk for placement on the agenda in accordance with section 2.30.060(C)(4). KIBC 2.30. 100(G. 1) Requests for Staff Assistance. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, any two or more members of the assembly may request that the manager, clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the clerk for placement on the agenda in accordance with section 2.30.060(C)(4). KIBC 2.30.050 (C.4) Agenda items prepared by staff at the request of the mayor or by two or more assembly members under section 2.20.070(C) or 2.30.100(G) shall be scheduled on an agenda within 60 days of the agenda item request being submitted to the clerk, unless the assembly directs that the item appear on a particular meeting agenda. KIBC 2.20.070(C.2) Requests for Legal Opinions. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, the mayor and an assembly member may request written legal opinions, relating to borough business, from the attorney through the manager's or the clerk's office. Upon receipt of the legal opinion, the clerk's office shall distribute it to all assembly members. KIBC 2.30.100(G.2) Requests for Legal Opinions. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, any two or more members of the assembly, may request written legal opinions, relating to borough business, from the attorney through the manager's or the clerk's office. Upon receipt of the legal opinion, the clerk's office shall distribute it to all assembly members. For staff use: % Received date: 0 31 2'U l 1p Provided a copy to the Manager on: 03 60 days deadline: 05 T- Scheduled on the meeting agenda of: Notes: KIBC 2.30.060 (B) Upon receipt of an agenda item request, the borough clerk shall immediately provide a copy to the borough manager. The borough manager may provide information or make recommendations, if applicable, and submit such information to the borouqh clerk for inclusion with the agenda item Revised on: 20240607 nj Page 41 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. .� o U ; s Q�ASKP MEMORANDUM TO: Chris Hladick, Interim City Manager & Josie Bahnke, Deputy City Manager FROM: Julie Liew, Finance Director 9-11- DATE: January 15, 2026 RE: Marijuana Sales Tax Collection (5-year comparison) The information below illustrates marijuana sales tax collection in the City over the past five years. Marijuana Sales Tax 2021 2022 2023 2024 2025 Total Gross Sales $ 4,764,089.79 $ 5,040,939.82 $ 4,991,815.34 $ 4,840,726.80 $ 4,668,979.72 Total Deductions: $ - $ - $ - $ - $ 116,812.97 Taxable Sales $ 4,764,089.79 $ 5,040,939.82 $ 4,991,815.34 $ 4,840,726.80 $ 4,552,166.75 Computed Tax $ 333,486.30 $ 352,865.79 $ 349,427.08 $ 338,850.88 $ 318,651.68 Marijuana Sales Tax $6,000,000.00 $5,000,000.00 $4,000,000.00 $3,000,000.00 $2,000,000.00 $1,000,000.00 2021 2022 ■ Total Gross Sales $4,764,089.79 $5,040,939.82 ■ Marijuana Sales Tax $333,486.30 $352,865.79 FE 2023 2024 2025 $4,991,815.34 $4,940,726.80 $4,668,979.72 $349,427.08 $338,850.88 $318,651.68 Page 1 of 1 Page 42 of 115 Discuss Draft Ordinance Implementing Marijuana Tax Cn Cn Cn 0 v O Q v 3 m 3 CD v v D v ni x v m MUNICIPALITY TAX RATE ADDITIONAL NOTES /RETAIL Anchorage 5% The Assembly has the authority in the Charter to increase it to up to 10% but not until after 6/30/2028. Purpose: Child care and early education City of Bethel 15% One of the highest in the state City of Fairbanks 5% Due by end of the following month. 2% discount on the tax amount if paid by the 15th of the month. Meaning 2% amount off of the total owed. NOT a rate reduction from 5% to 3%. If not paid by the last day of the following month, late fee of $100 is applied. If not paid by the last day of the month after that, $1,000 late fee is applied. Late fees are only applied one time per occurrence (i.e. there isn't another $1 K each month after). Interest accrues on any unpaid balances and late fees. Goes to Cit 's general fund. Fairbanks North Star 5% Exempt from taxation those sales that are subject to a similar tax that is levied by a different Borough jurisdiction within the Borough. The City of Fairbanks levies a 5% tax, therefore, the borough only collects taxes outside of the City of Fairbanks. City of Houston 3% Juneau 3% City and Borough of Juneau retail tax City of Ketchikan Seasonal sales tax Purpose: For humanitarian purposes — homeless shelters through a grant process. + Additional 5% Seasonal city tax: April 1 to Sept. 30 — 5.5% and October 1 to Mar 31 — 2.5% Seasonal Borough/City combined tax: April 1 to Sept. 30 — 8% and October 1 to Mar 31 — 5.5% Ketchikan Gateway 2.5% sales tax For areas outside the city but within the Ketchikan Gateway Borough, the sales tax rate is Borough plus 5% additional a flat 2.5% ear -round. Matsu Borough 5% Charge outside of city limits only. Matsu normally levies a 5% tax on retail marijuana sales, it provides a partial exemption for sales. Example: Within the city of Houston, the borough tax is reduced by the amount the city levies (up to 3%), leaving a 2% borough -level tax. City of Nome 6% sales tax rate City manager is trying to lobby for a sin tax on top of this for tobacco, alcohol and marijuana. believe per ordinance this will have to be voted on by our residents, so not sure how that is going to go. City of Palmer 2% 3% on top for the Matsu Borough Petersburg Borough 6% sales tax Marijuana is not eligible for senior or nonprofit exemptions. In addition, the Borough imposes a marijuana excise tax of $25 per ounce on marijuana cultivated in, manufactured in, or brought into the Borough for commercial use. This excise tax is se arate from the retail sales tax. City of Unalaska 3% Wrangell Borough 7% Also something in the code related to licenses. Excise tax on cultivation. PROHIBITED City of North Pole Sales of marijuana is prohibited in the city City of Wasilla I Does not allow the sale of marijuana in the city and have no excise taxes. AGENDA ITEM #3.b. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 By: Van Lawrence Kathryn Dodge Christopher Quist Introduced: 03/10/2016 Advanced: 03/10/2016 Substituted: 03/24/2016 Amended: 03/24/2016 Adopted: 03/24/2016 Amended by Ordinance No. 2016-31: 06/23/2016 FAIRBANKS NORTH STAR BOROUGH ORDINANCE NO. 2016-16 AN ORDINANCE ENACTING A RETAIL AREAWIDE SALES TAX ON MARIJUANA AND MARIJUANA PRODUCTS AND PROVIDING FOR A BALLOT QUESTION RATIFYING THE LEVY OF THE TAX AND THE RATE OF LEVY WHEREAS, A sales tax or an increase in the rate of levy of a sales tax must be approved by the voters; and WHEREAS, Alaska Statute 17.38 was amended by Ballot Measure 2, An Act to Tax and Regulate the Production, Sale and Use of Marijuana, and provided for legal retail sales of marijuana and marijuana products in Alaska; and WHEREAS, Retail sales of marijuana and marijuana products will begin sometime in 2016; and WHEREAS, Because the borough's revenue tax cap limits the total amount of all tax revenue, proceeds from a marijuana and marijuana product sales tax would fall under and be subject to that revenue cap; and WHEREAS, It is this Assembly's intention that the net marijuana and marijuana product sales tax revenue would be utilized to reduce the property tax mill rate; and city; and WHEREAS, State laws require the borough to collect taxes levied by the CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED, CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016-16 Page 1 of 3 Page 44 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 WHEREAS, Exempting sales within the cities avoids double taxation and provides a more uniform rate throughout the borough but it results in a taxation system that provides no revenue to the borough from city sales; and WHEREAS, A ballot question that includes an authorization to increase the levy by 1 %, from 5% to 6%, provides the Borough the flexibility to increase the tax; and WHEREAS, Limiting the exemption for sales in the City of North Pole and the City of Fairbanks to 5% will allow the borough to ensure that 1% can be used to defray collection costs. NOW, THEREFORE, BE IT ORDAINED by the Assembly of the Fairbanks North Star Borough: Section 1. Section 3 of this ordinance is of a general and permanent nature and shall be codified. Section 2. Election. At the regular election to be held on October 4, 2016, the following question shall be placed before the qualified voters of the borough: "Shall the Fairbanks North Star Borough (1) levy an areawide 5% tax on the retail sale of marijuana and marijuana products, (2) establish a limited exemption up to §15]% for marijuana and marijuana products sales taxed by the City of Fairbanks and the City of North Pole, and (3) have the authority to increase the rate of levy by 1 %?' Section 3. FNSBC Title 3 is amended to add a new chapter, to read as follows: Chapter 3.56 Marijuana and Marijuana Products Sales Tax 3.56.010 Areawide Sales Tax Levy. There is hereby levied a tax, equal to 5% of the sales price, upon buyers of all retail sales of mariivana and mariivana products made within the Fairbanks North Star Borough. This tax is imposed on all retail sales of marijuana and marijuana products unless the sale is specifically exempted herein or by other applicable law. 3.56.020 Exemptions. Sales within the City of Fairbanks and the City of North Pole are partially exempt from the borough tax by the amount of sales tax the city separately levies on the same item up to 5% of the sales price. 3.56.030 Definition. CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED, CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016-16 Page 2 of 3 Page 45 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 84 "Marijuana" means all parts of the plant (genus) Cannabis, whether growing or 85 not, the seed thereof, the resin extracted from any part of the plant, and any compound, 86 manufacture, derivative, mixture, or preparation of the plant, its seeds, or its resin, 87 including marijuana concentrate: marijuana does not include fiber produced from the 88 stalks, oil or cake made from the seeds of the plant, sterilized seed of the plant that is 89 incapable of germination, or the weight of any other ingredient combined with marijuana 90 to prepare topical or oral administrations, food, drink, or other products. 91 "Marijuana Products" means concentrated marijuana products and marijuana 92 products that are comprised of marijuana and other ingredients and are intended for use 93 or consumption, such as, but not limited to, edible products, ointments, and tinctures. 94 95 Section 4. Effective date. Section 2 of this ordinance shall be effective at 96 5:00 p.m. on the first Borough business day following its adoption. Section 3 of this 97 ordinance shall become effective on January 1, 2017, if a majority of the qualified voters 98 voting on the question called for in Section 2 have cast their votes in favor of the 99 question. 100 PASSED AND APPROVED THIS 24th DAY OF MARCH, 2016 AND 101 AMENDED BY ORDINANCE NO. 2016-31, ADOPTED ON JUNE 23, 2016. 102 103 104 105 10 107 � 108 Presiding n Davies 109 Officer 110 III ATTEST: 112 113 114 115 Nanci Ashford -Bingham, MMC 116 Borough Clerk 117 118 1 19 Adopted on March 24, 2016: 120 Yeses: Sattley, Hutchison, Cooper, Lawrence, Dodge, Quist, Davies 121 Noes: None 122 Excused: Roberts, Westlind 123 124 Amended on June 23, 2016 125 Yeses: Sattley, Hutchison, Cooper, Quist, Lawrence, Westlind, Roberts, Dodge, Davies 126 Noes: None CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is (BRACKETED, CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016-16 Page 3 of 3 Page 46 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 0 • Fairbanks North Star Borough Mayor's Office 81D9 Pioneer Road PU box I12bI FairbanKs, AlasKa 991U[-1 ZbI (9UI)4b9-13UU FAX (W04b9-11UZ MEMORANDUM To: Fairbanks North Star Borough Assembly From: Karl Kassel, Mayor Date: November 10, 2016 p Subject: Ordinance 2016 -67 Attached for your approval is an ordinance that implements in more detail the terms of the marijuana and marijuana products retail sales tax ordinance which was ratified by FNSB voters during the October 4, 2016 municipal election. I urge your approval of this ordinance. Attachment: Ordinance Page 47 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 0 • 1 By: Karl Kassel, Mayor 2 Introduced: November 10, 2016 3 4 s FAIRBANKS NORTH STAR BOROUGH 6 7 ORDINANCE NO. 2016 -67 s 9 AN ORDINANCE AMENDING ORDINANCE NO. 2016-16 FOR THE PURPOSE OF 10 REPEALING AND REENACTING THE MARIJUANA AND MARIJUANA PRODUCTS 11 RETAIL SALES TAX AS CHAPTER 8.54 FNSBC, AND AMENDING FNSBC 1.20.080 12 TO ADD VIOLATIONS OF CHAPTER 8.54 TO THE FINE SCHEDULE 13 14 WHEREAS, On October 4, 2016, the Fairbanks North Star Borough voters 15 ratified the marijuana and marijuana products retail sales tax proposed by Ordinance 16 No. 2016-16 and Ordinance No. 2016-31; and 17 18 WHEREAS, Ordinance No. 2016-16, Section 3, enacted new Chapter i9 3.56, Marijuana and Marijuana Products Sales Tax, but after the renumbering and 20 recodification was completed it more appropriately should be Chapter 8.54 FNSBC; and 21 22 WHEREAS, The terms for the collection of the tax should be more fully 23 developed and sections should be set forth similar to other chapters on taxation, 24 including adding violations of Chapter 8.54 FNSBC to the fine schedule. 25 26 NOW THEREFORE BE IT ORDAINED by the Assembly of the Fairbanks 27 North Star Borough: 28 29 Section 1. Classification. This ordinance is of a general and permanent 3o nature and shall be codified. 31 32 Section 2. Ordinance No. 2016-16, Section 3 is hereby repealed, and new 33 Chapter 8.54 of the Fairbanks North Star Borough Code of Ordinances is enacted as 34 follows: CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough Alaska ORDINANCE NO. 2016 - Page 1 of 16 Page 48 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. • 35 Chapter 8.54 36 Marijuana and Marijuana Product Sales Tax 37 38 Sections: 39 4o 8.54.010 Definitions. 41 8.54.020 Purpose and intent. 42 8.54.030 Areawide sales tax levy. 43 8.54.040 Exemptions. 44 8.54.050 Certificate of registration for tax collection. 45 8.54.060 Obligation of seller. 46 8.54.070 Reporting basis and tax collection. 47 8.54.080 Prohibited acts and associated penalties. 48 8.54.090 Procedures and forms. 49 8.54.100 Submittal of forms and remittance requirements. 5o 8.54.110 Penalties, interest, fees and tax remittance. 51 8.54.120 Estimated tax. 52 8.54.130 Lien for tax, interest and penalties. 53 8.54.140 Administrative appeals. 54 8.54.150 Refunds. 55 8.54.160 Record keeping. 56 8.54.170 Confidentiality of monthly reports and associated documents. 57 8.54.180 Severabilitv. 58 59 8.54.010 Definitions. 60 For purposes of this chapter, the following definitions apply except where the 61 context clearly indicates a different meaning: 62 "Buyer" or "consumer" means, without limiting the scope thereof, any person or 63 any other entity that purchases and/or contracts to purchase any marijuana or 64 marijuana products for consumption and not resale. 65 "Certificate of registration" means the certificate issued by the director under 66 FNSBC 8.54.050. 67 "Consideration" means anything of value, including but not limited to money, 68 credit, rights, goods, services, and property, received by a seller from a buyer. 69 "Director" means chief financial officer or his/her designee. 70 "Estimated tax" means the tax determined under FNSBC 8.54.120. 71 11Mariivana" means all parts of the plant (genus) Cannabis, whether growing or 72 not, the seed thereof, the resin extracted from any part of the plant, and any compound, CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016 - Page 2 of 16 Page 49 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. I� 40 73 manufacture, derivative, mixture, or preparation of the plant, its seeds, or its resin, 74 including marijuana concentrate; marijuana does not include fiber produced from the 75 stalks, oil or cake made from the seeds of the plant, sterilized seed of the plant that is 76 incapable of germination, or the weight of any other ingredient combined with marijuana 77 to prepare topical or oral administrations, food, drink, or other products. 78 "Marijuana and marijuana products tax administrator" means the treasury budget 79 manager or his/her designee. so "Marijuana Products" means concentrated marijuana products and marijuana 81 products that are comprised of mariivana and other ingredients and are intended for use 82 or consumption, such as, but not limited to, edible products, ointments, and tinctures. 83 "Retail sale" means the transfer of any marijuana or marijuana products to any 84 consumer, for any consideration. as "Sale made within the borough" means any retail sale where: (1) the buyer takes 86 possession of, or title to, the purchased marijuana or marijuana products(s) within the 87 borough; and/or (2) the seller receives consideration for the purchased marijuana or as mariivana products(s) within the borough. 89 "Seller" means any person or any other entity that sells and/or contracts to sell 90 any mariivana or marijuana product to a buyer. 91 "Selling price" or "price" means the monetary value of any consideration. 92 "Tax" means the mariivana and marijuana product tax as levied under this 93 chapter. 94 "Taxable retail sale" means any sale made within the borough that is not entirely 95 exempt from the tax levied under this chapter. 96 "Unremitted tax" means (1) any tax not remitted to the borough that a seller is 97 required by this chapter to collect from a buyer, notwithstanding whether the seller 98 actually collects such tax from a buyer; and (2) any estimated tax not remitted to the 99 borough. 100 "Wholesale sale (sale for resale)" means the act of selling any marijuana or 101 mariivana product to anv person or to anv other entitv for reselling such mariivana or 102 marijuana product CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016 - Page 3 of 16 Page 50 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 41 0 103 104 8.54.020 Purpose and intent. 105 The purpose and intent of the tax imposed under this chapter is to raise revenues 106 and diversify the borough's tax base. The scope of the tax levied shall be broadly 107 interpreted and exemptions shall be allowed only when the sales of marijuana or im marijuana products clearly fall within an exemption defined in this chapter. Any and all tog revenues resulting from the imposition and collection of the tax shall be allocated to the 110 general fund. 111 112 8.54.030 Areawide sales tax levy. 113 A. There is hereby levied a tax equal to five percent (5%) of the sales price, upon 114 buyers of all retail sales of marijuana and marijuana products made within the Fairbanks 115 North Star Borough. This tax is imposed on all retail sales of marijuana and marijuana 116 products unless the sale is specifically exempted herein or by other applicable law. 117 B. All taxes imposed by this chapter are due and payable by the buyer at the time of 118 sale and are delinquent if not paid at the time of sale. 119 C. The obligation for the payment of the tax is upon the buyer. Every seller shall 120 collect the taxes imposed by this chapter from the buyer at the time of sale and shall 121 deliver the same to the Fairbanks North Star Borough in accordance with the 122 requirements in this chapter. 123 124 8.54.040 Exemptions. 125 The following sales are exempt from the collection of the marijuana and 126 marijuana product tax: 127 A. Sales within the City of Fairbanks and the City of North Pole are partially exempt 128 from the borough tax by the amount of sales tax the city separately levies on the same 129 item up to 5% of the sales price subject to the following limitations: 130 1. The borough does not intend to act as a collection agent for citv taxes on 131 retail sales. CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016 - Page 4 of 16 Page 51 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 0 • 132 2. If any municipality within the borough imposes a city tax on retail sales 133 exceeding the tax imposed by the borough, neither the seller nor the buyer is entitled to 134 a refund from the borough from such retail sales. 135 3. If any municipality within the borough does not impose a city tax on any 136 retail sales, imposes a city tax only on certain retail sales, or imposes a city tax on retail 137 sales that is less than five percent (5%) times the selling price, the seller shall: 138 a. collect a tax equal to five percent (5%) times the selling price minus 139 any city tax imposed by such municipality on that same retail sale; and 140 b. remit this tax to the borough in accordance with the requirements of 141 this chapter. 142 B. Any wholesale sale (sale for resale) of marijuana or marijuana products by a 143 state licensed marijuana cultivation facility or a marijuana product manufacturing facility. 144 145 8.54.050 Certificate of registration for tax collection. 146 A. All sellers of marijuana or mariivana products within the borough, except sellers 147 engaged in sales entirely exempt under FNSBC 8.54.040, must possess a current 148 certificate of registration, for the purpose of collecting and remitting the tax under this 149 chapter, prior to engaging in any retail sales. 15o B. All sellers requiring a certificate of registration under subsection (A) of this 151 section must first possess a current business license as required by AS 43.70 and a 152 current state marijuana license as required by AS 17.38. Such sellers must then submit 153 a certificate of registration application form to the borough as prescribed by the director. 154 The director may then issue a certificate of registration to the seller. A seller shall 155 display the certificate of registration prominently at the place of business with the 156 business and marijuana licenses. 157 C. A certificate of registration shall bear the name of the seller, the address of the 158 registered place of business, the form of ownership of the seller's business, and a valid 159 contact name and phone number for the seller. 160 D. A certificate of registration is neither assignable nor transferable. The seller shall 161 immediately surrender the certificate to the director if the seller ceases to do business at CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016 - Page 5 of 16 Page 52 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 162 the location named on the certificate, or if the seller otherwise sells, assigns, transfers 163 conveys, leases, forfeits, or abandons the seller's business to any person or any other 164 entity. 165 E. A seller shall submit a new updated application as prescribed by the director 166 upon any change in ownership, business name, location, or contact information. The 167 director, after receipt of the updated application, shall then determine whether a new 168 certificate of registration should issue. If a new certificate of registration issues, the 169 seller must first surrender the prior certificate of registration to the director before taking 170 possession of the new certificate. 171 F. Any seller who violates any requirement of this section is subject to the penalties 172 provided under this chapter. The borough is also entitled to injunctive relief to prevent 173 the seller from engaging in retail sales until the seller complies with the requirements of 174 this section. 175 176 8.54.060 Obligation of seller. 177 It is the obligation of the seller engaging in retail sales not exempt under FNSBC 178 8.54.040 to collect the taxes imposed by this chapter. All such taxes shall be due and 179 payable by the buyer to the seller at the time of the sale made within the borough. The 180 seller shall hold such taxes in trust for the benefit of the Fairbanks North Star Borough 181 and remit such taxes as this chapter requires. lag 183 8.54.070 Reporting basis and tax collection. 184 A. The seller shall report and remit the tax on the same basis, cash or accrual, as 185 the seller uses for reporting federal income tax. 186 B. Upon collection by the seller of the tax imposed herein, title to the collected tax 187 immediately vests in the borough, and the tax shall be held in trust by the seller until 188 remitted as required by this chapter. 189 C. The director may conduct audits, investigations, and/or hearings concerning any 190 matters covered by this chapter, and may examine any relevant written or electronic 191 records of any seller. If the director conducts a hearing, the director may issue CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borouqh, Alaska ORDINANCE NO. 2016 - Page 6 of 16 Page 53 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 0 • 192 subpoenas and subpoenas duces tecum and may exercise any other powers not 193 prohibited by law. 194 Q. Any person or any other entity acquiring an ownership interest in an ongoing 195 business or the accounts receivable of a business, whether by purchase, assignment, 196 foreclosure, relinquishment, or otherwise, is jointly and severally liable for any tax not 197 remitted_ by the business, any violations of this chapter by such business, and any 198 unpaid penalties and accrued interest imposed against such business under this 199 chapter. 200 201 8.54.080 Prohibited acts and associated penalties. 202 In addition to the other requirements of this chapter: 203 A. No buyer shall fail or refuse to pay the tax when it is due and payable as required 204 by this chapter. 205 B. No seller shall fail or refuse to make and file any reports required by this chapter. 206 C. No seller shall fail or refuse to remit the tax to the borough as required by this 207 chapter. 208 D. No seller shall advertise or state to any buyer, directly or indirectly, that the tax or 2o9 any part of the tax will be assumed or absorbed by the seller, that the tax will not be 210 added to the retail sale, or that the tax will be refunded. No seller shall absorb, fail to 211 add, assume, or refund any of the tax. 212 E. No seller shall fail to make written and/or electronic records of every sale made 213 within the borough, showing or recording the tax as a separate item distinct from the 214 selling price, at the time of each sale. 215 F. No seller shall attempt to assign or transfer a certificate of registration. 216 G. In addition to all other penalties provided under this chapter, any buyer or seller 217 that violates anv reauirement of this chanter is subiect to a Denaltv of $1.000. 218 219 CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016 - Page 7 of 16 Page 54 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 0 0 220 8.54.090 Procedures and forms. 221 A. Every sale made within the borough, unless specifically exempted by this 222 chapter, shall be presumed to be subject to the tax imposed hereunder in any action to 223 enforce the provisions of this chapter. 224 B. The director shall take all lawful and necessary actions to administer this chapter 225 including, but not limited to, adopting and revising procedures regulations fees and 226 written guidelines for the determination of the taxability of sales. 227 C. The director may also take other lawful actions to administer this chapter 228 including, but not limited to, issuing written determinations of the taxability of specific 229 sales upon request, contracting services for collection of delinquent accounts 230 compromising and abating penalties and interest, and/or negotiating and entering into 231 payment plans for delinquent taxes, penalties and interest. 232 D. With the approval of the director, the marijuana and marijuana product tax 233 administrator shall prepare, implement, and revise forms for the administration of this 234 chapter. 235 E. The director may modify any reporting and/or remittance requirement(s) under 236 FNSBC 8.54.100 or 8.54.110 in order to coordinate such reporting and/or remittance 237 requirement(s) with any similar requirement(s) of any municipality within the borough. 238 239 8.54.100 Submittal of forms and remittance requirements. 24o A. The mariivana and marijuana product tax administrator shall provide monthly 241 report forms to all sellers that possess current certificates of registration. Sellers 242 making any taxable retail sale in any month shall remit to the borough the full amount of 243 the tax collected no later than the fifteenth day of the followinq month along with a 244 properly completed monthly report form. 245 B. Every seller possessing a current certificate of registration shall file with the 246 borough a properly completed monthly report form no later than the fifteenth day of the 247 month following the month subject to the report even if the seller has not engaged in 248 taxable retail sales during the reported month. CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016 - Page 8 of 16 Page 55 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 249 C. If the fifteenth day of the month is a Saturday, Sunday, or a federal or borough 25o holiday, the due dates under this section shall be extended until the next business day. 251 D. A report is considered filed, and taxes are considered remitted, on the date 252 received by the borough's collection office or on the date mailed via certified mail, U.S. 253 Postal Service. 254 255 8.54.110 Penalties, interest, fees and tax remittance. 256 A. Any seller that fails to collect and/or remit taxes to the borough as required by 257 this chapter or fails to file a monthly report form as required by this chapter, shall incur 258 the following penalties: 259 Month Filing For Report/ Remittance Due Date Late Report Penalty $50.00 Additional Late Report/Late Remittance Penalty Late Remittance Penalty — 10% of the taxes due. — 25% of taxes due. January February 15 February 16 — March 15 March 16 February March 15 March 16 —April 15 April 16 March April 15 April 16 — May 15 May 16 April May 15 May 16 — June 15 June 16 May June 15 June 16 — July 15 July 16 June July 15 July 16 — August 15 August 16 July August 15 August 16 — September 15 September 16 Au ust September 15 September 16 — October 15 October 16 September October 15 October 16 — November 15 November 16 October November 15 November 16 — December 15 December 16 November December 15 December 16 — January 15 January 16 December January 15 January 16 — February 15 February 16 260 261 B. If a seller is required under this chapter to submit a monthly report or remit 262 collected taxes to the borough, such seller shall pay an additional $1,000 penalty if the CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016 - Page 9 of 16 Page 56 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 0 263 seller's report or remittance is not received by the borough within sixty days of the 264 original due date provided under this section. 265 C. In addition to any other penalties imposed under this chapter, a seller shall pay 266 any administrative fees, outside collection agency fees, attorney fees, and other costs 267 and fees incurred by the borough or its agent(s) in connection with any collection, or 268 attempted collection, from the seller of any unremitted tax, unpaid interest, and/or 269 unpaid penalties due under this chapter. 270 D. Simple interest at a rate of 15 percent per year, or a lesser rate if required by 271 state law, shall accrue on all unremitted taxes, not including penalty and administrative 272 fees, from the original due date provided under this section until remitted in full. 273 E. The borough will apply a seller's payment to the most delinquent monthly report 274 in the following order: first, to any unpaid administrative fees, outside collection agency 275 fees, attorney fees, and other collection costs and fees; second, to any unpaid 276 penalties; third, to any unpaid interest that has accrued on unremitted taxes; and fourth, 277 to the principal of any unremitted taxes. 278 F. Any person who holds an ownership interest in a seller, or any other person who 279 is a seller, is personally liable for all taxes, penalties and interest due from such seller 280 under this chapter. 281 G. Failure to comply with the provisions of this chapter is a violation punishable by a 282 fine of $500. 283 284 8.54.120 Estimated tax. 285 If the borough is unable to ascertain the tax due from a seller because the seller 286 failed to file a monthly report as required under this chapter, remit collected taxes, 287 collect taxes, keep accurate books, allow inspection, or maintain the records required by 288 this chapter, or has falsified records, the borough shall estimate the tax due based on 289 any available evidence. Notice of the borough's estimate shall be mailed to the seller. 290 Unless the seller files an accurate monthly report covering the time period subject to the 291 borough's estimate or files an appeal within 30 days of the mailing of the borough's CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016 - Page 10 of 16 Page 57 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 0 • 292 estimate, the borough's estimate shall become final for the purpose of determining the 293 seller's tax liability. 294 295 8.54.130 Lien for tax, interest and penalties. 296 A. In addition to any other remedies and administrative procedures provided under 297 this chapter, the borough may file a civil action against any seller and/or buyer for 298 recovery of any tax, unremitted tax, penalties, interest, costs, and fees, that have not 299 been paid or remitted when due. The borough must file any such civil action within six 300 years of the date that such tax, unremitted tax, penalties, interest, costs, and fees were 301 due under this chapter. 302 B. Any tax, unremitted tax, penalties, interest, costs and fees that this chapter 303 requires a seller and/or buyer to pay or remit shall constitute a lien in favor of the 304 borough upon all assets, earnings, revenue, and property of such seller and/or buyer. 305 This lien arises when any such payment or remittance is not made when due and 306 continues until the payment or remittance is fully satisfied through execution, 307 foreclosure sale, or any other legal means. This lien is not valid as against a 308 mortgagee, pledgee, purchaser, or judgment creditor until notice of the lien is filed in the 3o9 recorder's office of the Fairbanks recording district. Upon such filing, the lien is superior 310 to all other liens except as otherwise provided by state or federal law. 311 312 8.54.140 Administrative appeals. 313 A. A seller or buyer may appeal to the director any estimated tax, penalties, costs, 314 fees, or other decision under this chapter made by a borough employee other than the 315 director. Any appeal must be filed within the earlier of thirty days after the notice of any 316 decision is mailed to the seller or buyer, or thirty days after the notice of any decision is 317 otherwise communicated to the seller or buyer. 318 B. The appeal must state the legal and factual basis for the appeal and include all 319 written evidence relevant to the appeal within the appellant's possession. If the appeal 320 raises relevant questions of fact, the director shall conduct a hearing. At the hearing, CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016 - Page 11 of 16 Page 58 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. i 0 321 the parties shall have the right to present testimony and cross-examine witnesses. The 322 director shall then issue a written or recorded decision that includes findings of fact. 323 C. An administrative appeal decision by the director is a final decision that shall be 324 enforced under this chapter unless stayed by court order or by agreement of the 325 borough and appellant. The director's final decision may be appealed to Superior Court 326 in the Fourth Judicial District as provided by state law. 327 328 8.54.150 Refunds. 329 A. A seller may within 60 days of filing a monthly report form submit an amended 330 monthly report form along with a written claim for a refund. The seller claiming the 331 refund bears the burden of proving, bV clear and convincing evidence, any overpayment 332 to the borough. 333 B. The marijuana and marijuana product tax administrator shall investigate all 334 refund claims and shall present findings and recommendations to the director within 60 335 days of a seller's filing of a written claim for refund. If the director determines that clear 336 and convincing evidence supports the seller's refund claim, the director shall issue a 337 refund to the seller. Within 120 days of seller's filing of a written claim for refund, the 338 director shall issue a refund, or notify the seller that no refund shall issue. The borough 339 shall not pay, and shall not otherwise be held liable for, any interest on any refund. 340 341 8.54.160 Record keeping. 342 A. A seller shall keep complete and accurate books, records, and accounts, 343 showing all inventory purchases and the gross receipts for all sales made within the 344 borough, for a period of six years from the date of each sale. In addition to all other 345 record keeping requirements under this chapter, a seller shall maintain all written and 346 electronic records relating to any marijuana or mariivana product sale, for a period of six 347 years after such marijuana or marijuana product sale, including but not limited to: 348 1. all local, state, and federal tax reports and forms; 349 2. all accounting records; 350 3. all sales receipts; and CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016 - Page 12 of 16 Page 59 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 351 4. all documentary evidence supporting any exemption provided under this 352 chapter. 353 B. Upon reasonable notice, a seller shall make all records and materials specified in 354 subsection (A) of this section available for the director's and/or the marijuana and 355 marijuana product tax administrator's inspection during customary business hours. 356 C. The director may conduct random audits of seller's monthly reports by examining 357 any of the records and materials specified in subsection (A) of this section. 358 359 8.54.170 Confidentiality of monthly reports and associated documents. 36o A. Documents in the possession of the borough by operation of this chapter are 361 available to the public for inspection and copying subject to subsection (B) of this 362 section and Chapter 1.16 FNSBC. 363 B. If a seller makes a showing satisfactory to the director that a report, record, 364 application or other information submitted by the seller would, if made public, divulge 365 information entitled to protection as trade secrets under state law, the borough will treat 366 the record, report, application, or other information as confidential. This showing 367 requires, but is not limited to, the seller's certification under oath that: 368 1. Public disclosure would tend to affect adversely the seller's competitive 369 position; and 370 2. The records, reports, application or other information submitted would 371 divulge sales figures, processes, techniques or other financial data of the seller that are 372 entitled to protection as trade secrets under state law. 373 C. It is unlawful for any person to divulge to another any documents or information 374 obtained from any records or documents filed with the borough that have been 375 determined by the director to be confidential unless otherwise provided by state law or 376 this chapter. 377 D. The director shall maintain all records and information deemed confidential under 378 this section secure from public inspection and release. 379 E. The director shall not destroy any materials submitted to the borough under this 380 chapter until at least six years have elapsed since the submission of such materials. CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016 - Page 13 of 16 Page 60 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 40 381 F. Notwithstanding other provisions of this chapter, the borough may, even for 382 records deemed confidential, 383 1. Compile and publish general statistical records concerning the data 384 submitted by seller; 385 2. Release names, owners, mailing addresses, any past penalty or interest 386 assessments under this chapter, and the filing status of seller to the public. Filing status 387 for this purpose includes whether a seller is exempt, delinquent, or current in remittal of 388 taxes; 389 3. Provide any records to an auditor, collection agency or attorney, acting as 390 an agent of the borough, for the review and use in performing services for the borough; 391 4. Exchange confidential information about a seller with another jurisdiction, 392 which has a similar tax, if that other jurisdiction has similar provisions protecting the 393 confidentiality of the seller's records; 394 5. Release records with the permission of the seller; and 395 6. Use any records in any criminal or civil action brouqht under this chapter. 396 G. Hearings conducted by the director are public. 397 398 8.54.180 Severability. 399 If any section, subsection, paragraph, sentence, clause, or phrase of this chapter 400 is held to be unconstitutional or in violation of law, then that holding shall not affect the 401 validity of the remainder of this chapter. 402 403 Section 3. FNSBC 1.20.080 Fine Schedule is amended to add the 404 following: 405 Code Offense Penalty/Fine Mandatory Section Warning Required 8.54.050(A) Failure to possess current certificate of $500.00 Yes, 1 st offense only registration CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough Alaska ORDINANCE NO. 2016 - Page 14 of 16 Page 61 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. • 0 8.54.050(D) Failure to surrender cert 406 407 408 409 410 Section 4. Effective date. This ordinance shall be effective on January 1, 2017. CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough, Alaska ORDINANCE NO. 2016 - Page 15 of 16 ificate of registration. 500.00 No 8.54.050(E) Failure to submit updated application. 500.00 Yes, 1st offense only 8.54.060 Failure to collect marijuana or marijuana 500.00 No products tax. 8.54.080(A) Buyer failure or refusal to pay marijuana or 500.00 Yes, 1st offense only marijuana products tax. 8.54.080(B) Failure or refusal to file report(s). 500.00 No 8.54.080(C) Failure or refusal to remit taxes to borough. 500.00 No 8.54.080(D) False statement regarding tax; absorption, 500.00 Yes, 1st offense only failure to add assumption, or failure to refund tax. 8.54.080(E) Failure to make record at time of sale. 500.00 No 8.54.080(F) Attempting to assign or transfer registration. 500.00 No 8.54.160(A) Failure to maintain records for six years. 500.00 No 8.54.160(B) Failure to make records available for inspection. 500.00 Yes, 1s t offense only Page 62 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3.b. 411 PASSED AND APPROVED THIS DAY OF 2016. 412 413 414 415 John Davies 416 Presiding Officer 417 418 ATTEST: APPROVED: 419 42 421 422 Nanci Ashford -Bingham, MMC Jill S. Dolan 423 Borough Municipal Clerk Borough Attorney 424 425 CODE AMENDMENTS ARE SHOWN IN LEGISLATIVE FORMAT Text to be added is underlined Text to be deleted is [BRACKETED AND CAPITALIZED] Fairbanks North Star Borough Alaska ORDINANCE NO. 2016 - Page 16 of 16 Page 63 of 115 Discuss Draft Ordinance Implementing Marijuana Tax AGENDA ITEM #3. c. KODIAK ISLAND BOROUGH STAFF REPORT JUNE 25, 2026 ASSEMBLY WORK SESSION SUBJECT: Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fish Box Tax" ORIGINATOR: Jeffery A. Woods, Assembly Member RECOMMENDATION: For consideration by the Assembly and potentially to instruct staff or attorney to prepare an ordinance for introduction. DISCUSSION: Assembly member Woods and Mayor Griffin have submitted the attached Agenda Item Request form, requesting that staff draft and explore a natural resource excise tax ordinance related to the "Fish Box Tax" currently implemented in Sitka for fish, game, and game products that are harvested recreationally in the Kodiak Island Borough. According to the Borough Attorney, this kind of tax can be accurately categorized as an excise tax rather than a sales tax. As a result, it does not need to be put to a vote by the public. The Mat -Su Borough has successfully imposed an excise tax on tobacco without requiring voter approval, and this decision was upheld by the courts. If the Assembly decides to move forward with a fish box tax, the attorney will be available to help draft the necessary ordinance. Assembly member Woods included additional information in the packet from Sitka. The packet also contains additional research from the Borough Clerk's Office, including the City of Angoon's ordinance and historical context regarding Sitka's fish box tax. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: KIBC 2.30.060 (C)(4) Agenda items prepared by staff at the request of the mayor or by two or more assembly members under KIBC 2.20.070(C) or 2.30.100(G) shall be scheduled on an agenda within 60 days of the agenda item request being submitted to the clerk, unless the assembly directs that the item appear on a particular meeting agenda. Kodiak Island Borough Page 64 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. -Ty go�-0-7 KODIAK ISLAND BOROUGH ATTACH THE ORDINANCE, RESOLUTION, OR AGENDA ITEM INFORMATION FOR ITEMS THAT ARE READY TO BE PLACED ON THE AGENDA DATE SUBMITTED: L1U1 00j- ZOZ6 Requestor: 7'EFFMRV W001)5 Preferred Mtg. Date: 05-1 Item Description: T fl N V unvL- R X, o T(A VfW9 Bo u S s c Requestor 1: ---roFF!a y WOD95 Requestor 2: y v. Detailed Description: Oil SiAt'F To 06kAF-1 "D TWOFSi-X"GnSE A N UR.a4 Rgsou"w- Fxxa fFr TAjc 6 eDMi -4ev c 5SM7ZAn To TH W. "F!Izs Nr fSnx -TAy" Lo fmyw i Ly TA Ulr1,y sT i tom, o� r1S{i� &AA1%j -.r�9 GoMWMGu s HMulydsT tGo 12i�GK.+gA--'�..ra,ct�V 7�y THE ��3+4/C ISGdND C3�sflt,�j(��- LEGAL OPINION REQUEST Requestor 1: Date when you want the opinion by: Detailed Description: See pertinent code sections on the back. Requestor 2: Revised on: 20240607 nj Page 65 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3.c. KIBC 2.30.050 (C.3) Agenda items submitted by an assembly member or the mayor without staff assistance, or submitted by the manager, shall be included on the agenda within 60 days. KIBC 2.30.060 (B) Preparation of agenda items. ordinances, resolutions, or other proposed agenda items may be submitted to the clerk by an assembly member, a committee of the assembly, the mayor, or the manager for placement on the agenda. An assembly member may request an item placed on the assembly agenda by completing an agenda request form provided by the borough clerk's office and providing a copy of the proposed item in a format that is ready to be olaced on the agenda. KIBC 2.20.070(C.1) Requests for Staff Assistance. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, the mayor may request that the manager, clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the clerk for placement on the agenda in accordance with section 2.30.060fC)(4). KIBC 2.30.100(G.1) Requests for Staff Assistance. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, any two or more members of the assembly may request that the manager, clerk, or attorney prepare a proposed ordinance or resolution to be submitted to the clerk for placement on the agenda in accordance. with section 2.30.060(C)(4). KIBC 2.30.050 (C.4) rsgenda items prepared by staff at the request of the mayor or by two or more assembly members under section ubmitt 20.070(C) or 2.30.?00(G) shall be scheduled on an agenda within 60 days of the agenda item request being e .f,(pr(y l/fJlpss.the esaytidire�Na�N+b�pp&r'dn pertivular q�@�yl�g agenda., KIBC 2.20.070(C.2) Requests for Legal Opinions. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, the mayor and an assembly member may request written legal opinions, relating to borough business, from the attorney through the manager's or the clerk's office. Upon receipt of the legal opinion, the clerk's office shall distribute it to all assembly members. KIBC 2.30.100(G.2) Requests for Legal Opinions. During a work session or a meeting, or by submitting a request for services on a form provided by the borough clerk's office, any two or more members of the assembly, may request written legal opinions, relating to borough business, from the attorney through the manager's or the clerk's office. Upon receipt of the legal opinion, the clerk's office shall distribute it to all assembly members. For staff use: Received date: %� ,/ o u, Provided a copy to the Manager on: 420//0, UO� 60 days deadline: j iAM Scheduled on the meeting agenda of: Notes: KIBC 2.30.060 (B) Upon receipt of an agenda item request, the borough clerk shall immediately provide a copy to the borough manager. The borough manager may provide information or make recommendations, if applicable, and submit such information to the borough clerk for inclusion with the aqenda item Revised on: 20240607 nj Page 66 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. ��City and Borough of Sitka Fish Box Tax April 27, 2007 Page 67 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. How is the Fish Box Tax reported? • Sitka General Code 4.09.010(C) states that "This tax shall be ... collected by whoever packages the fish and/or seafood caught or taken by the fish charter customer." This means that the "processor" or whoever packages the fish and/or seafood must remit the tax to the City and Borough of Sitka even if the Charter business collects it on behalf of the processor or chooses to pay it on behalf of their customers. The Charter business must pass all collected tax on to the "processor" to remit to the City and Borough of Sitka. Page 68 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. Case Scenario 1 • Charter business offers an all inclusive package that includes packaging for two (2) fifty pound (50 lb.) fish boxes. The Charter business does it's own packaging. The customer catches fish and/or seafood and takes home two (2) fish boxes. The Charter business would show on it's own business sales tax return 2 fish boxes and remit $20.00 in fish box tax. Page 69 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3.c. CrrYXN-D BOROUGH OF SITK-k 47 - 194-. QUARMLY SALES & TKXiSM, T K0011 TAX RUMN rvgwqOw on Aw A0 amd low mvq wwwav Q-wla cr.!Lnf_ SAMPLE Charter/Processor Business, Ovbw 1- Mar=.- 4q.tl I - 9t14anim I ntawl 1. t.ROGS RZC2Wn OMMUM0 TAM 5.. 41. & - C....... TOTAL cIMS UCEIM S. LZt.SEkE%L?T70M ........... — ------ .4%1J ef.m.aw wdb CM Aawfilm dont. "Mr-own"groam. - � ........... ...... A. TOTALEUNITIONS f 2 containers x $10.00 each listed here for a total of $20.00 fish box tax reported here '3 mmk lebfsad ea Ism. pogin receit" gnd credog = awcew4 44 1:. U d: I *z4i.r. (:-' - por m:z-L c.- pr t ths,.3 ( I c 1: back i2' 1:..Ud: later,t: .!:2 - taz Pat 3--- -- .'ggo -Tom prnim. . ..... 13 TOTA-* -LMOINT DVE A= F=WN. I Idod 6 PUNK I I by adkm 49 sh rem I@ k a WW, Carna and Camplao MWIL s1poft. ad 49W 1, dug tiuw \14 '..86 Page 70 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. Case Scenario 2 • Charter business offers an all inclusive package for 2 days/3 nights for $2,080.00 that includes packaging for two (2) fifty pound (50 lb.) fish boxes. The fish and/or seafood that is caught by the customer is delivered to a local processor where it is packaged and two (2) fish boxes are delivered to the airport for the customer to take home. The Charter business would continue to deduct the tax out of his gross sales however would pay the tax for 2 fish boxes ($20.00) to the processor who would reflect it on the processor's tax return as the processor is the one who packaged the fish. Page 71 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. Crr N-D BOROUGH OF STTK-k a .194 QCARMLY SALES & TK i`SM, T ROOat TAX RFTM 5or Ic.as: ■.5r!:e Itdru:U:u mdc.anpu.: ,;n� em r�m laaer[a Yurrsv tkv P� .ilaa ..1etr. .N r1lary w on Aerr b Jm\{ low &Vq p[Swav 1._lsla er._ng _ 20 QiDONEBS SAMPLE Charter Business n $2,000.00 reported ��Yhere as service Df. •• ($2,080.00 less ".6`' """ `�_'" -y`�"" ' ' $60.00 sales tax and Srr :la 1.t.RCGSRLCVMOM LlAl0TAM s•. $20.00 fish box tax) B. �' HIIOf fslS rtll�-.-.-•-•»_.»»»».-. «. 1'�C1C1iti\iY_1 C....... :. TOTAL cIMS UCEIM $1,000.00 over the s. L.LSSE.E►IMOM taxable limit -.-. reported here � c L'nlr.n�anpt'11' . •1. l: a�MiRtt. ...�,y �-... F fir, r.rd6 AMA& W 1) 0 --- Ltax0able 0.00 worth of receipts A TOTAL E,,1NITIONS i ,[e Taa::.14c[4a $60.00 worth of I ku :r = r&cil Sales Tax Tcl Boa 7u aUmo , a 1 '. ',�, v!o V- No Fish Box Tax reported here ... paid to processor to report and to remit to CBS mz Ia. jso received end credo w swewrJ S rr"(le S ..:w lock fer ao��..._....«..»........»...._. �� r28SYal................... ...........«._« .._...._.,..._.__..» 12. Aw n: do from prnicn: raurn:.......... . .. ... 13 TOTAL WO*,N'I DL'E UTIH &ETL3L ._._._.«_» »._«».. _.._.. _ ..__.. f I whop rt PUNK I I by adkm Mgt sh nun arbft@ my erwevrrl M bn roolrr by r M to Olr rmr stay 1 •! JI+/a McIA @ M e ter, qTQ and Cyp1rN r'rlt► 4.•.1• s1po [I[d ••1•r ■ [�Ier •.M �Ir Page 72 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. Crr k\-D BOROUGH OF STTK-k J IA1l'iX37 -�TKA 4J '75:; 47.194-. QCARMLY SALES & U.i`SM, T R0011 TAX RFTM 1to/tu_11:v YlJ*c�anittl:�a ivi etrc �m iaanaa s1ntN tkv pr.•fcd .itaa --bM. .N ra1NR,rn w on Aw t0 Jm\{ low mvq "Wozov Q-avfa cb.!'n f _ _ .1(I— C81.�I .ES: Qi: DRESS SAMPLE Processor Business V1aR1F115>�:srC.. aw.a..../•.1.». N.a.. ra.... 1wl ./ to. ►.r• id.'bs 1-Mov_ 91 Alail 1-9tl4calm i Trarawl SIN .aR WON 1R I. t.ROGS RLCZWn OMMU l 0 TAXI 5a. 0•. & . :. TOTAL cIMS UCEIM S. LE5.SEkE►L?TI0M 11►nlr.nttrnp►t►' ..... .Ya1Jr : YAt{t M� l$B Y/Ir1Otl its . - .l. l: gMIR�t. F.:, i c 1.41mn6jiall11A911 1 2 containers x $10.00 each „= Irt, listed here for a total of $20.00 fish box tax reported here ...... (� 1w....... �O.ltead ea la: torte received tmd croiet w Awrcew t) S ♦a tlkw.[ m! ryatA r.arlA {a.a�n were i♦t. ..aua. UA6 1:..Ud: 2•,ii.; { • . par macck c. Part thereof tc 1: • •» back bu . •' •f da.=gtoat tupa smugl_ ue :ram prnim. ntarot »»»_ _..._........_. . ____ _ _ .___ __.__..._.._.._ .._. 13 TOTA-.LU0.1TDLilti=TiT_TLWN..._.__. _.___.._.._.._..__.. f I rc>tn, I+dod r MMIM I I by adkm 09 sh rein �b� � Mlavrrl (1�a bn olrr w r M M qll dal of M 1 •1ltaMc Ma1'� @ k a tr. NRaR and Can/la" rvlts► u..Y.. sivoo tta al —w al oew I, ant tiu. .a. d ttr Page 73 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. Questions • What if the customer only catches enough fish and/or seafood to take home one (1) box of fish but was allotted two (2) in the package? The Charter business would need to refund to his customer that amount of tax that wasn't charged if it had not already been paid to the processor and remitted to the City and Borough of Sitka. If the Charter business had already paid the tax to the processor who would have already remitted it to the City and Borough of Sitka, the customer would need to submit a request for refund of fish box tax paid to the City and Borough of Sitka. Page 74 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. Case Scenario 3 • Charter business offers an all inclusive package for 2 days/3 nights for $2,080.00 that includes packaging for two (2) fifty pound (50 lb.) fish boxes. The fish and/or seafood that is caught by the customer is delivered to a local processor where it is packaged and three (3) fifty pound (50 lb) fish boxes and one (1) three pound (3 lb) snack pack are delivered to the airport for the customer to take home. The Charter business would continue to deduct the tax out of his gross sales however would pay the tax for 2 fish boxes ($20.00) to the processor who would reflect it on the processor's tax return as the processor is the one who packaged the fish and/or seafood. The processor would need to collect an additional $20.00 worth of fish box tax from the charter customer as well as any additional costs (processing, packaging, sales tax, etc.) that may be associated with the extra boxes upon delivery of the packages. Page 75 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3.c. Crr N-D BOROUGH OF SITKI, s; -194 QCARMLY SALES & TKX SM, T ROOM TAX RFTM 5w tc.a.: ■.5m!:e Itdruil=s andc.anpll.• ,;n� em �m laan..v s1nsY tkv pr.•Icd .ilaa ..1a1.. .N f.INR,in w on A.0 b a d low &WT "Swav Q-w1a cr.!Ln f _ .- cs�.1.E5: $2,000.00 reported �.iDbESS here as service -------- - ---- SAMPLE Charter Business = 4 ($2,080.00 less $60.00 sales tax and $20.00 fish box tax) T1.6W I - spa I r ANt iI r - sal .nla , Seim :lot 411n ,a at .c 1. t.ROGS RLC2Wn OWMIJIM0 TAXI 5•. ! & . A Sala s.,,.x_.... $1,000.00 over the c ....... - taxable limit :. TOTAL cIMS UCEIM reported here s. L.LSS E.E►ItT70M A c Lnlr.n�anpt 11' ..... ................. $1,000.00 worth nwar�+uwM�-- F..,�..��.ntwt�eao__...---• of taxable receipts A TOTALEtEiI?TIONS i ,.e Taa9l.11�c.4a 4160-,Is=had ., _ , $60.00 worth of I ,arm; hku::Y liS r&1*1 / Sales Tax No Fish Box Tax .Cit.IaasecXLirw", _ ................... reported m uk... _ - mt.t� here ... paid to .v _ processor to =6nd=In.ron.«....ama.s.aa»xco..d s report and to ' h r,rlA {., a..Y .M ta1. - --rr UAC. remit to CBS-P,rttb.r.4Ic_- »b,,k42,-.. Zffiuw..__._.._._.._.__. 2t to P.r 3-141gl 13 TOTAL AafO:-N-T DLi ATrH RT_T ILN.-.-.-.__. _.___.. _.._.. _ ..__.. f I Itn, whop r PUNK Pam+ by adkm hot OM nun 0aKftg Ni slwtvrrl Nr MndA a./ IY eswIh 1 M beat .f AY 1 .t},/e; M. I@ M. tebl, YITQ and CyN.N MWIL Wall. Srw/. al aaMK � NIM 1 ..nl tiu. A aw.1 Mho ..�N t..Wt,f/.... Page 76 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The 7i... AGENDA ITEM #3. c. Crr k\-D BOROUGH OF STTK-k J IA1l'iX 37 - �TKA 4J 75:; :'- 47.194-. QCARMLY SALES & U.i`SM, T R0011 TAX RFTM �<f: Ic.aK aa�C f:e 1to/tu_11:v YlJ*c�anittl:�a ivi etra �m ia.awa sltraY tkv pr.•fcd .i1aa --IaM. .N r.INR,rn w on Aw b a mad lily mvq Pa11a11r Q-wfa cb.!'n f _ _ .f1— C81.�I .ES: Qi: DbESS SAMPLE Processor Business = 4 �; _ ___ .•��11 id.'bs 1-Mvc:S it Alail 1-9tl4uilm i Tntawl Salm .�f RrN aDI I'.�-1i Ir'. I. t•ROGS RLCZWn OMMU l 0 TAXI 5.. 0•. & . :. TOTAL cIMS UCEIM S. IZss E.E►ZT70M 11►nlr.nurnp►t►' ..... [ .Ym:a' : a :aar M� l$B Y/Ir1Of1 awls . - ). F. ti.-i.,c«.r!4haalhlianll!Ad1 1 4 containers x $10.00 each listed here for a total of $40.00 fish box tax sa6cc:u�c f 1ic• _..._... �� reported herek� f+„ ....... t l•mil..d m iat tmt: racai..d „d cradial w awew4 S c Ixa din -ma rf • .; !.1\r h t ♦a dkw•a m! rya•A r.afA f.�a�Y wan rN• .aauar V.X- 1:..Ud: Isis.; { • . prr macs! C: Part tbar.of tr 1: • •» back bu • ` ta:par smugl_ ue :ram prnim. ntarot »»»_ _..._........_. . ____ _ _ .___ __.__..._.._.._ .._. 13 TOTA-.LU0.1TDLilti=TiT_TLWN..._.__. _.___.._.._.._..__.. f I rc>tn, I+dod r MMIM I I by adkm 49 sh rem Oabftg flay Mwfvaarl (1,ar Mm aonalmd by raid to lbo bw of sy .S owa; IMaarI I@ k a War. Carnn and C.O/lao ralm► u••Y.. al/rAn. al 1af ■ a9w 1,anl tiva •aM �Ir Page 77 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. Case Scenario 4 • Charter business offers a day charter for $300.00 plus sales tax for a total of $318.00 and the customer takes the fish and/or seafood off the boat in 1 cooler and 1 garbage bag without a direct delivery to a processor. The Charter business will collect the fish box tax in the amount of $20.00 from the customer based upon the number of containers or "fish boxes" that contain fish and/or seafood removed from his boat and remit this tax on the charter business's tax return. Page 78 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. Crr N-D BOROUGH OF STTK-k J IA1l'iX37 _�TKA 4J 'is;; 4;-194 QCARMLY SALES & TKX SM, T R0011 TAX RFTM 5« Ic.as: ■.5r!:e ccotru:U:u [ndc.anpd:•-� ,;n� err[ �m iaa[wa slnsv tkv pw. ¢d .icaa ..MN. .N r11NR,in w on Amer dD JM\{ low li Vq fll wav 1--lsla ec,_nl; _ _ . ............. .. ........ C81.NI .ES: Qi,D11ESS SAMPLE Charter Business a�"� �•[� •� $300.00 reported a..rY.NL •... . l ./ I I. (•BOSS RLCZWn IND(I"I.IAl 0 TAXI 5.7 ! . B. �' HIIOf fslS Itl1�-.-.-•-•»_.»»»».-. _.. 1ti1C1i\\�l7CK C....... :. TOMLcIMSIJCEBT's S. L.ESS EkE►ttTIOM .YgJf : YAt{t M� l$B Y/Ir1Ota i� . _ A TOTAL E,,Eir?TIONS i �[e Taa9I[ 14c[4c _ Ilia[ : bea had it I :"An T,c ;/*ilaph ku i :r I" r&1*1 fL-hBoaTu ^au-.•. a 1,"'.t j,,L= here as service c. $300.00 worth of taxable receipts $18.00 worth of Sales Tax 2 containers x -I U1ic• � $10.00 each listed here for a total of $20.00bra d [a lap pawn re[[ie�d rased credo enr) wcom s fish box tax "rr-'",^�^•M.�r - -_.u" .. p.rt tbrrr.D( Ic =E - • •h bxl. Mr — �• �..._«..»..»........»...._. �� reported here at tup[r 3—..- _ . . ..._. ...... ...__.._».._.._._.._.__.._ 13_ TOTAL A3 00 r DUE SUN RLTLMPi _» »._»».. _.._.. _ ..__.. f I III whop rt puft I I by mama IM sh nun paftfts Ny Mrcvrrl M bn MOM" by WNW 1[ Olr Iml.ray 1 •! Jriyl� M�11@ a [ ti, 0[R[A [r1 tyrl[N reMIL SIP"O. ad w ■ NI[1 •�M �Ir Page 79 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. Additional Information • The processor will need to know whether the fish and/or seafood were caught on a charter boat or not and then if the fish box tax has already been paid to the day charter operator or isn't charged because fish and/or seafood was caught by a non- paying charter guest (proof of payment would need to be documented). The processor will need to keep detailed records of all fish boxes packaged whether subject to fish box tax or not. • At the end of the season, the charter operators and/or processors may be required to provide documentation to reconcile this fish box tax to the City and Borough of Sitka. Page 80 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. Questions Page 81 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. Presented by: Brenda Calkins, Tax Auditor City and Borough of Sitka (907)747-1853 Page 82 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... FISH BOX SALES TAX Presentation by Brenda Calkins, Sales Tax Auditor Theresa Hillhouse, Municipal Attorney April 27, 2007 K PRESENTATION • WHO is taxed? / WHO is not taxed? • WHAT is tax amount? • WHEN do you charge the tax? • WHERE & HOW to report and pay the tax? • WHY is there a tax? a z WHO IS TAXED? • Fishing charter customer who takes fish Wor seafood which is packaged — Customer may be from Sitka or outside Sitka — Fish Wor seafood need not be for customer to be taxed, for it could be for friends, relatives or others v co Cn a z WHO IS NOT TAXED? • Person who catches or receives fish Wor seafood while not on a charter • Person who does not catch or receive any fish Wor seafood while on a charter • Person who catches or receives fish Wor seafood while on a charter, but releases the fish Wor seafood, or eats it prior to any packaging • Charter business is not taxed • Processor who packages fish is not taxed v co a z WHAT IS THE TAX AMOUNT? • Sales tax based on the flat rate of $10 per packaged fish Wor seafood — Packaged fish Wor seafood may consist of: • various types of fish Wor seafood • Various types of fish • Various types of seafood • Single type of fish • Single type of seafood • Any type of packaging — 50 lb box — 5 lb box — 100 lb box — bag of fish Wor seafood — canned fish Wor seafood v Co a z WHEN DO YOU CHARGE THE TAX? • Prepaid as part of the charter package • When the fish &/or seafood caught or obtained as a result of a charter is packaged by a processor who receives the fish &/or seafood from the charter customer or the charter business on behalf of the customer • When the charter business packages the fish Wor seafood for the charter customer caught or obtained as a result of a charter if the tax has not been prepaid v CD CO CO a z v CO a z HOW & WHERE DO YOU REPORT & PAY THE TAX? • Who reports and or pays the tax — — Charter business who packages fish Wor seafood for charter customer MW — Processor who packages fish Wor seafood for charter customer • Report on sales tax forms furnished by Finance Department • Pay with sales tax forms WHY IS THERE A TAX? • Initiative passed by 67% of voters at October 2006 election • Ordinance 2006-38 • Purpose — A sales tax must be imposed on the value of property or service purchased if the sales amount does not represent the value of the property or service purchased — (SGC 4.09.030) • Value of fish charter without packaged fish Wor seafood • Value of fish charter with packaged fish Wor seafood a z Sitka General Code 4.09.010(C) de- fines this tax as a sales tax levied on fish charter customers for packaged fish and/or seafood caught or taken and retained by the fish charter cus- tomers as part of a fish charter. This sales tax is levied at a flat rate of ten dollars per fish box. A fish box is clarified as any packaging by a fish charter operator or processor of fish and/or seafood caught or taken as part of the charter by a fish charter customer. Q: "How do I remit this fish box tax?" On each business' quarterly sales tax return, there is now a line specifically designated for fish box tax. You must indicate the number of boxes processed and the amount collected and remitted. May 30, 2007 i `1 1\ City and Borough of Sitka Finance Department 1� Sales Tax Division � � 1 C � 100 Lincoln Street Sitka, AK 99835 Phone: 907-747-1840 Fax: 907-747-0536 Email: salestax@cityofsitka.com K m (D N 0 K Q: "Who has to pay this tax?" This is a sales tax levied on the market value of the fish and/or seafood taken by and packaged for a fish charter customer. The charter customer is respon- sible to pay the tax. If a charter company chooses to offer an all inclusive package, and pay the tax for the customer, then the charter business would pay the tax to the processor or remit the tax if the charter business does it's own packaging. Q: "Who turns in this tax?" Whoever packages the fish and/or seafood is re- sponsible to remit the tax as only they will know how many boxes were packaged. The tax will be reported and collected on the new quarterly sales tax return. Q: "Is the tax the same for all sizes of containers?" Sitka General Code 4.09.010(C) states that the tax is a flat rate of ten dollars per fish box. Fish box is a defined as any packag- ing by a fish and/or seafood charter op- erator or processor of fish and/or seafood taken as part of the charter by a fish and/or seafood char- ter customer. Therefore, a 3 lb snack pack, a 50 lb fish box, a cooler, a garbage bag are all packaged and therefore taxed at a flat rate of ten dollars per package. Q: "As a charter operator, if I want to be able to offer my customers an all inclusive package, how can I do this??" You determine the number of fish boxes that you are willing to pay the costs associated with proc- essing and packaging for your customer in the all inclusive package and build that into your cost. You would then pay to the processor who pack- ages your customer's fish and/or seafood the tax on the number offish boxes included in the all inclusive packages that you sold. (For example, in the month of June, you sold 10 all inclusive fishing packages that included processing and packaging for 2 fish boxes each. You would turn in to the processor $200.00 in fish box tax [10 pkgs x 2 fish boxes each x $10.00 fish box tax]. However, if the customer does not take home the cost cov- ered amount of fish boxes, a refund request may be filed by the customer for the fish box tax on those boxes that were not provided. If the cus- tomer takes more boxes than were paid for in the all-inclusive package, the customer would need to pay an additional $10 tax per package to whoever packages the fish and/or seafood and any other applicable costs associated with the processing and packaging. If a processor packages the fish for your charter customers, you would be billed for those boxes that you covered in your all-inclusive package - the costs of the processing and packag- ing plus the ten dollar per box fish box tax less any fish box tax that you had prepaid. A recon- ciliation may be required. If you process the fish and/or seafood yourself, you would collect and remit all of the fish box tax. Q: "If I provide a day charter and my customer takes the fish off of my boat and I don't know what he is going to do with the fish —eat it or take it to a processor, do I have to collect the tax???" If you are a charter operator and the fish and/or seafood caught on your boat is not delivered to a processor, the cleaning, processing, and packaging (whether it is packaged in a fish box, in a cooler, garbage bag or any other package) is subject to the fish box tax. You would be responsible to collect the fish box tax from your customer and remit it to the City and Borough of Sitka. Q: "If my family and/or friends go fishing with me as my guests, do they have to pay fish box tax?" No, only those customers that are paying custom- ers of a charter would be subject to fish box tax. Q: "I am a fish processor and a customer comes in to my store to have his fish processed, do I always charge the fish box tax?" As a processor required to collect this fish box tax, it would be your responsibility to inquire how this fish and/or seafood was caught. You would need to document why you did not charge the fish box tax on your invoice. An example might be "non -charter", "non-paying charter guest", "already paid to charter opera- tor" (documentation would need to be kept to support this), etc. AGENDA ITEM #3.c. Research information from the Borough Clerk's Office In Alaska, a "fish box tax" is a local excise or sales tax levied by specific coastal municipalities on containers of sport -caught fish leaving the area. It specifically targets guided sportfishing and charter customers who package and ship their catch home, generating local revenue to fund harbors, infrastructure, and fisheries enhancement. While the State of Alaska levies commercial seafood taxes (like the "raw fish tax"), the fish box tax is strictly a municipal rule. Examples of Alaska Fish Box Taxes Municipality Tax Rate Collection Method Revenue Use City and $10.00 Collected quarterly by seafood Split between the harbor Borough of flat -rate processors or charter operators department, local general fund, Sitka per box who package the fish. and fisheries enhancement grants for local hatcheries. $10.00 City of Angoon flat -rate per box How It Works in Practice Operators purchase physical, serialized stickers from City Hall and must affix one to each box leaving town. The "Box" Definition: The tax code applies broadly. Under municipal rules like Sitka's, a standard 50-pound waxed fish box, a small 3-pound snack pack, a personal cooler, or even a garbage bag used to transport the charter -caught fish counts as a taxable package. • Exemptions: The tax is specifically designed for guided charter operations. It generally does not apply to residents catching fish for subsistence, non -charter personal use, or unguided anglers. • Payment Structure: If an out-of-state tourist goes on an all-inclusive charter trip and catches 100 pounds of salmon, they may package it into two 50-pound boxes. The processing facility or charter operator will add a $20.00 fish box tax onto their processing invoice, which is then remitted to the city. Historical Background for the City and Borough of Sitka Fish box tax • The tax did not originate directly from the city council. It was a voter -backed initiative proposed in 2006 by local resident Erin Long, who gathered signatures and campaigned to get the measure placed onto the municipal ballot. Following voter approval, the Sitka Assembly formally adopted the enacting ordinance. • If you are looking at compliance or administrative details, let me know if you would like to explore the quarterly tax reporting requirements for processors or how the city allocates the collected revenue to local hatcheries. Page 93 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The 7i... AGENDA ITEM #3.c. Sitka, Code Section 4.09.010(C) A. There is levied a consumer's sales tax on sales, rents, and leases made in the city and borough of Sitka. This tax applies to sales, rentals, and leases of tangible personal property; sales of services sold within the city and borough of Sitka; sales of services performed wholly or partially within the city and borough of Sitka when the provision of such services originates or terminates within the city and borough of Sitka; and rentals and leases of real property located within the city and borough of Sitka. Notwithstanding any provision of law, air or sea charter services, provided a person or entity in the business of providing such charter services, are exempt from sales tax by the city and borough of Sitka if the charter does not commence and end within the city and borough of Sitka. B. The rate of levy of the sales tax levied under subsection A_ of this section is five percent on sales made during the months of October, November, December, January, February, and March. The rate of levy of the sales tax levied under subsection A_ of this section is six percent on sales made during the months of April, May, June, July, August, and September. The revenue generated by the one additional percentage point shall be dedicated to fund either directly or by paying debt service on the maintenance, repair, replacement and/or construction of school building infrastructure. C. A flat rate of $10.00 per fish box shall be levied on the packaged fish and/or seafood caught or taken and retained by fish charter customers as part of the fish charter. This tax shall be paid by the fish charter customer, collected by whoever packages the fish and/or seafood caught or taken by the fish charter customer, and is in addition to any sales tax paid based on the cost of the charter. This tax is effective January 1, 2007. For purposes of this subsection, a "fish box" means any packaging by a fish charter operator or processor of fish and/or seafood caught or taken as part of the charter by a fish charter customer. The sales tax collected from this levy on fish boxes shall be deposited by the finance director in the following funds in the following ratios: 1. Thirty percent in the harbor fund; 2. Thirty percent in a fisheries enhancement fund, available to be used for any fisheries enhancement proposal upon approval of the proposal by the assembly; and 3. Forty percent in the general fund. D. In place of the consumer's sales tax levied in subsection A_ of this section, there is levied a consumer's sales tax on sales made in the city and borough of Sitka of marijuana, as "marijuana" is defined in AS 17.38.900(10), and marijuana products, as "marijuana products" is defined in AS 17.38.90005). The rate of levy of the sales tax under this subsection is six percent on sales made during the first year, starting on January 1, 2023, and eight percent on sales made during the second year and each year thereafter. The sales tax collected under this subsection shall be deposited by the finance director into the student activities fund. Each year during the annual budget process an appropriation from the student activities fund will be made based on projected annual revenue and the funds appropriated will be transferred to the Sitka school district. This funding will be restricted to the support of extracurricular student activities and associated travel costs. E. Except as provided in subsections C and D of this section, all moneys accumulated under the terms of this chapter shall be deposited by the finance director in the general fund of the city and borough of Sitka and shall be used for the general operating expenses of the city and borough of Sitka in such a proportion as deemed advisable from time to time by the assembly. Page 94 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The 7i... AGENDA ITEM #3. c. PROPOSITION NO. 4 (By Initiative Petition Ordinance 2006-38) M Shall the City and Borough of Sitka amend its sales tax code provisions to tax fish charter customers at a flat rate of $10 per fish box for packaged fish and/or seafood obtained as part of the charter, effective January 1, 2007, and the collected sales tax deposited in the following funds and in the following ratios? a. 20% Harbor Fund b. 30% Sitka Permanent Fund c. 20% Fisheries Enhancement Fund - available to be used for any fisheries enhancement proposal upon approval of the proposal by the assembly; and d. 30% General Fund � YES NO Page 95 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. Source: https://www.kcaw.org/2012/02/16/sitka-assembly-tweaks-fish-box-tax-plan/ Sitka Assembly tweaks fish box tax plan Posted by edronco i Feb 16, 2012 The Assembly advanced some changes to the city's fish box tax on Wednesday night. That tax requires charter operators to pay $10 per fish box, with the money going to the city's harbor department, general fund and for fish enhancement. But how much money goes to each area could change, and some on the Assembly are suggesting the fish box tax could go away entirely. The original plan was to take all of the fish box tax money away from fisheries enhancement programs, like hatcheries. Erin Long proposed the fish box tax in 2006, collected signatures, and campaigned for its passage. She's in California right now, but heard about the proposal to take the money away from fisheries enhancement. Long said taking the tax money away from fish enhancement would defeat the purpose of the tax. In an interview before Wednesday night's meeting, she said she would try to repeal the tax if the Assembly eliminated the hatchery fund. "I will personally go out and go with all the charter people and get signatures again, to get this on the ballot just to have the whole tax exempt:' she said. "No more fish box tax whatsoever." She might not have to fight that battle. After hearing public testimony, Mayor Cheryl Westover changed her proposal. It now calls for giving 20 percent of the fish box tax money to hatcheries. That's down from the current 30 percent. But those in favor of supporting the hatcheries with the tax say it's better than zero. "We're not here as the Sitka Sound Science Center asking for our fisheries enhancement program, but for all fisheries enhancement programs;' said Nancy LeClerc Davidson. She's on the board of the science center, which runs a small hatchery. About 17 percent of the center's hatchery budget comes from the fish box tax. "We got $33,000 from this fish box tax, and that makes a big difference in a small budget, and a small difference in a big budget;' she said. Page 96 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. The money, she says, is important to help fledgling programs get off the ground. Assembly member Pete Esquiro ran the much larger Northern Southeast Aquaculture Association for 30 years. NSRAA has three hatcheries and other aquaculture programs. Esquiro cited his background and asked LeClerc Davidson and fellow board member Scott Harris whether they were looking at the fish box tax as a permanent source of money. Harris said they have no plans to use the fish box tax money indefinitely. Westover said she wanted to move extra fish box tax money away from hatcheries and into the harbors because of new regulations that require fish waste to be disposed of far from shore. Paying a company to haul the waste from city fish cleaning stations has cost $40,000, Westover said. But Assembly member Thor Christianson argued that keeping the money in enhancement makes it more palatable to the charter customers who end up paying it. "Frankly;" Christianson said, "they don't care about our harbors. But they care a lot about the fish they're coming to catch, so I think it makes it a much easier pill to swallow for them:' Theresa Weiser, who runs Alaska Premier Charters and the Wild Strawberry Lodge in Sitka, agreed with Christianson, although she said she'd like to see the tax disappear altogether. But if it does continue to exist, she likes the idea of some of it going for enhancement and harbors. "It would certainly make me happy to see more of it going to the harbor fund, to facilitate a need there, if it's got to go somewhere;' she said. "But I still like the idea of something going to the hatchery, because like Thor said, being able to tell our people ... because the first thing we get asked is'What is this fund for? Why are you collecting it?"' Westover said during the debate that she's not a fan of the tax, which was approved by a citizen vote in 2006. She said she would even entertain the idea of eliminating it entirely. Christianson said it would be bad form for the Assembly to do that. "I'm really hesitant to say something like'get rid it; mainly because it was a vote. It was not an Assembly move;' he said. "If it had been an Assembly move that would be very different:' Terry Blake asked what it would take to get the tax repeal question on the fall ballot. That would take a resolution of the Assembly or a petition. Page 97 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. c. https://sitkascience.org/fish-box-grant/ Fish Box Grant June 20, 2019, by admin The City and Borough Assembly approved a grant to the Sitka Sound Science Center from the Fish Box tax revenue for $25,000. The funds will be used to operate the hatchery which provides fish to the common property fishery in Sitka Sound and benefits commercial, sport, guided sport and subsistence fishermen. The funds for the Fish Box tax come from the guided sport and charter fishermen. For every box of fish that gets sent out of Sitka, a $10 tax is levied, with the money going into a fund. Every year, organizations that are involved in fisheries enhancement (i.e. salmon hatcheries) can apply for a portion or all of the available funds. Page 98 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3.c. oi� Ordinance 20-09 An Ordinance Establishing A Fish Box Tax BE IT ENACTED BY THE CITY OF ANGOON, ALASKA AS FOLLOWS: Title 4 — Revenue and Finance, is amended to reflect adding chapter 4.50 as follows: Chapter 04.50 — Fish Box Flat Rate Tax 04.50.010 - Purpose and intent. 04.50.015 - Use of Funds 04.50.020 - Definitions. 04.50.030 - Imposition of fish box flat -rate tax. 04.50.040 - Regulations and procedures. 04.50.050 - Enforcement and Penalties Section 04.50.010 - Purpose and intent. The purpose of the fish -box flat -rate tax levied under this chapter is to raise revenues. To that end, the scope of the tax levied shall be broadly interpreted and no exemptions shall be made. Section 4.50.015 — Use of funds Revenues received through this fish box tax shall be annually appropriated as follows: a. 25% to the City of Angoon Scholarship Fund b. 25% to the City of Angoon Harbor Fund c. 35% to the City of Angoon General Fund d. 15% to offset costs associated with administration and enforcement of this tax. Section 04.60.020 - Definitions. Buyer: Includes, without limiting the scope thereof, every consumer. City: The City of Angoon, Alaska, or the area within the territorial limits of the City of Angoon, Alaska. City council: The Angoon City Council or the Angoon City Council's designees. Fish box: A container of fish and/or seafood that has been caught or taken under the services of a commercial sport fishing charter service and any self -guided charter service conducting business in the City of Angoon that is processed and/or packaged in the City of Angoon. Fish charter: A fish charter is any boat trip for hire during which fishing takes place. Included are all trips that take place in whole or in part within the city, or utilize city infrastructure, or begin or end in the city, regardless of the buyer's place of residence and regardless of where the majority of the charter is conducted. This also includes "bare boat" charters and/or self -guided trips. Flat -rate: A per -unit assessment that is separate from and not including sales or service taxes. Ordinance 20-09 Page 1 of 3 Page 99 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The 7i... AGENDA ITEM #3.c. 04___ Ordinance 20-09 An Ordinance Establishing A Fish Box Tax Include and including: "By way of illustration only" and shall not be interpreted as a limitation except where expressly so provided. Mayor: The city mayor or his/her authorized designee. Must and shall: Each is mandatory. Packaged: Contained, protected, and preserved for transport and/or storage and/or use. Process: A procedure, method, or system for altering, preparing, or refining a product. Retail sale: Any sale of real or tangible personal property including barter, credit, installment, and conditional sales for any purpose other than resale in the regular course of business. The delivery of goods in the city by a seller whose principal place of business is outside the city to a buyer or consumer is a retail sale made within the city if such retailer maintains any office, distribution, or sales house, warehouse or any other place of business, or solicits business or received orders through any agent, salesman, or other type of representation within the city. Sale for resale: The sale of tangible personal property to a buyer whose principal business is the resale of the property whether in the same or altered form. Seafood processor: For purpose of the fish box flat -rate tax, a seafood processor is a person and/or business who prepares fish/seafood for transport and/or storage and/or use by one, some or all of the following: eviscerate ("gut"), skin, cut, fillet, freeze, smoke, and/or package. Seller: Every person, firm, corporation or other legal entity making retail sales to a buyer or consumer, renting property or performing services for consideration whether acting as principal or using the services of an agent or broker. Selling price and price: The gross amount of a transaction between a buyer and a seller. Services: All services of every manner and description that are performed or furnished for consideration whether in conjunction with the sale of goods or not but does not include services rendered by an employee to an employer. All retail services by a seller within the city of services to be provided or performed in whole or in part within the city or utilize city infrastructure regardless of the buyer's place of residence, or buyer's physical location upon acceptance of the offer, or exchange of consideration. State: State of Alaska. Sticker: A city -authorized, dated, numbered, self-adhesive label approved by the Angoon City Council. Section 04.50.030 - Imposition of fish box flat -rate tax. A. There shall be levied a flat -rate fish box tax of ten dollars ($10.00) per fish box leaving Angoon, Alaska, containing packaged fish and/or seafood caught or taken and retained as part of a fish charter. Ordinance 20-09 Page 2 of 3 Page 100 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The 7i... AGENDA ITEM #3.c. r-Ij Ordinance 20-09 An Ordinance Establishing A Fish Box Tax B. The sticker attesting to the payment of the fish box flat -rate tax shall be affixed to one (1) of the small ends of each fish box leaving Angoon, Alaska. C. Every seller or processor shall purchase city -authorized fish box stickers from city hall. Stickers are non -transferable. Stickers may be refunded at city Hall by the end of each calendar year (December 31). No refunds will be issued for previous calendar years. Section 04.50.040 - Regulations and procedures. A. The mayor or a city official designated by the council shall administer this ordinance and make recommendations for regulations, policies, fees, and guidelines for the determination of the taxability of transactions. The city council may adopt policy guidelines, regulation, fees and procedures for the management of this ordinance by resolution and may rule on specific transactions upon request. B. The city council, or the city clerk when so authorized by the city council, shall take all steps necessary and appropriate to fulfill the requirements of this ordinance, which includes the authority to compromise and abate penalties and interest, and to negotiate and enter into payment plans for delinquent taxes, penalties and interest. Section 04.50.OS0 — Enforcement and Penalties A. There shall be, twice per quarter, an unannounced inspection of outgoing fish boxes to ensure compliance with section 04.50.030 of this chapter. This inspection shall be performed by the Mayor or his designee. B. If non-compliance with section 04.50.030 is discovered during an inspection, a fine of $50 per unmarked fish box shall be levied. Effective Date: This ordinance is effective upon its adoption by the Angoon City Council and subsequent ratification by the voters of the City of Angoon. Date Introduced: October 22, 2019 Date Published: December 30, 2019 Public Hearing: January 14, 2020 PASSE and APPROVED by the City Council of Angoon, Alaska this day, the 14th of January,?020. 0 & ��_ -1 G&/,Lt L", 1;4�_ C14— Joshua Bowen, Mayor Albert Kookesh III, City Clerk Jess Daniels Yea Nay Gail Tharpe-Lucero Yea i/ Nay Crystal Parkin Yea / Nay Peter Duncan Yea Nay Ed Jack Fx Yea Nay Doris Williams Yea ✓ Nay Ordinance 20-09 Joshua Bowen Yea v1 Nay Page 3 of 3 Page 101 of 115 Discussion Of A Natural Resource Excise Tax Ordinance Similar To The "Fi... AGENDA ITEM #3. d. KODIAK ISLAND BOROUGH STAFF REPORT JUNE 25, 2026 ASSEMBLY WORK SESSION SUBJECT: Review The Interview Questions For The Assembly Applicants ORIGINATOR: Jared Griffin, Mayor RECOMMENDATION: Assembly to review the interview questions and suggest any changes. DISCUSSION: Mayor Griffin would like the Assembly to review the interview questions. ALTERNATIVES: FISCAL IMPACT: OTHER INFORMATION: Kodiak Island Borough Review The Interview Questions For The Assembly Applicants Page 102 of 115 AGENDA ITEM #3. d. INTERVIEW QUESTIONS AND RATING SHEET FOR ASSEMBLY APPLICANT NAME OF APPLICANT: RATER: ASSEMBLY MEMBER Questions SCORE 1. What interests you about serving on the Assembly? 2. What traits do you believe are necessary for being a good Assembly member? 3. What governing board experience do you have? 4. What do you see as the role of our Borough government? 5. What do you see as the most pressing issue the Assembly is facing? 6. What is your no. 1 priority if appointed to the Assembly? 7. Do you have other time commitments that will impact your ability to meet the attendance requirements of serving on the Assembly? 8. Applicant's closing comments — please limit to 2 minutes. TOTAL Scoring criteria - 40 possible points 5 - outstanding answer, 4 - above satisfactory; 3 - satisfactory answer, 2 - inadequate answer; 1- did not answer incomplete answer Page 103 of 115 Review The Interview Questions For The Assembly Applicants AGENDA ITEM #5.a. JUNE 25, 2026 ELECTIONS UPDATE Division of Elections Collaboration Held a Zoom Meeting with the State Division of Elections staff on Wednesday, June 10 regarding assistance for the August 18 primary. 2026 Election Schedule Tuesday, August 18: Primary Election Tuesday, October 6: Local Municipal Election Tuesday, November 3: General Election Key Deadlines & Public Notices Nominating packets will be available the week of July 13. Filing period runs from August 1 to August 17. Notice of Offices to be Filled will be published, mailed to villages, and posted on the website and Facebook. Updated by -mail election envelopes are due for delivery next week. Polling Site Agreements Sent out for the Harbor Master, Teen Center, Bayside Fire Hall, and Women's Bay Fire Hall. Upcoming Local Municipal Election Seats Borough Assembly: Three Seats (Ames, Roberts, & Whiteside) & One Seat (1- Year Term) o School Board: Two Seats (Irons & Fields) o Bay View Road Service Area Board: One Seat (Grupp) o Fire Protection Area No. 1 Board: Two Seats (Arndt & Carstens) o Monashka Bay Road Service Area Board: One Seat (O'Donnell) o Service Area No. 1 Board: Three Seats (Arndt, Dagen, & Sirofchuk) o Women's Bay Service Area Board: Three Seats (Egle, Heuman, & Melin) RECORDS UPDATE Fiscal Year End Archiving Departments will be actively archiving records from offices to the records center. Collaborating with the Borough Attorney for this year's records destruction. Retention Schedule & Laserfiche Management Reviewing the Clerk's Office retention schedule and records management workflows. Cross-referencing meeting packet folders with Laserfiche to ensure compliant retention. Reviewing the CL-05 Meeting folders to ensure proper organization. Reviewing the Newsletter folders on the Clerk's drive to verify accurate archival and pairing with agenda packets. Code Amendments & Portals The Borough Attorney is reviewing the comprehensive code rewrite of the Borough records code, including the new Records Information Management Manual. Page 1 of 2 Page 104 of 115 AGENDA ITEM #5.a. The legal response regarding these proposed amendments is due tomorrow; ordinance review is scheduled for July 9. Development continues on the public -facing Boards and Commissions application portal through Laserfiche. Public Records Requests Processed approximately 37 public records requests to date. Three requests are currently pending (two from Mr. Zurada), awaiting responses from Engineering & Facilities. LIQUOR LICENSES Processing two liquor license renewals: Tony's Bar and Tony's Liquor Store. ASSEMBLY AGENDA ITEM REQUESTS Status updates are available on the attached tracking spreadsheet. BUDGET STATUS (AS OF JUNE 25, 2026) • Legislative Budget: FY2026 is currently at 78% • Clerk's Office Budget: FY2026 is currently at 85% UPCOMING EVENTS CALENDAR • July 16, 2026: Assembly Special Work Session To Hold Interviews • August 25-28, 2026: AML Summer Legislative Conference (Fairbanks) • December 7-11, 2026: Annual AML Local Government Conference (Anchorage) MISCELLANEOUS • The Assembly application is attached to this report. Electronic copies will be made on the website tomorrow. • Currently drafting the 2027 Assembly Annual Meeting Calendar. • Planning upcoming iCompass Agenda Management Training sessions for staff members. • Planning Open Meetings Act and Parliamentary Procedures training for boards and committees. • Invitation to meet the finalists for Kodiak College Director (June 23, June 24, & June 25). Please let me know if you are planning to attend. POLICY REMINDER: REPORTING ABSENCES - KIBC 2.25.070 No member of the Assembly may absent himself from any regular or special meetings of the assembly except for good cause. An assembly member who is unable to attend a meeting SHALL ADVISE THE CLERK OR THE MAYOR of the contemplated absence. Page 105 of 115 Page 2 of 2 AGENDA ITEM REQUEST (AIR) FORMS TRACKING LIST PENDING Description Requeste Submitted 60-day Comple Comments LNo. 7�d by on deadline ted on 26- Amend Allowable Absences Whiteside 10130125 12/29/25 Scheduled on 01/29/26 - Direction was to present 03 a draft ordinance at a future work session which includes % allowable absences Scheduled on 07/09/26 26- Revisit excise tax on marijuana sales Roberts 03/26/26 05/25/26 Scheduled on 04/09/26 8 May 28 — Roberts and 06 Woods Woods to draft an Ordinance for Assembly to review on June 25 ws. Possible intro on July 16 adopt August 6. Scheduled on June 25, 2026 26- Natural resource excise tax Woods 04/09/26 06/08/26 Scheduled on June 25, 2026 07 Griffin j a z NA— requests were submitted before the adoption of new code which established a 60-day deadline AGENDA ITEM #5.a. Source: https://jurassicparliament.com/can-councilmembers-speak-during-public-comment/ Can councilmembers speak during public comment? August 14, 2024 / Ann Macfarlane / Comments Off Dear Dinosaur: Our council meeting took an interesting turn last week. The council comment period was over, and they were winding up public comments when two of our council members decided they had more to say. Are they allowed to speak during public comments? Should they recuse themselves from the meeting and then make their comments as Joe Citizen? Answer: A colleague from Texas has provided us with this summary of a court decision on this topic that says "no." "If anyone Can got us out of our rut. It's Ole Dinosaur here." 0 CanStock Photo/andrewgenn A Texas case decided by the Federal 5th Circuit Court ofAppeals recognized a difference between a member of the Board and a member of the public. A Board member demanded time to speak during public comment on an item the rest of the Board refused to include on their agenda. The Court ofAppeals held that Mr. Stratta was not a member of the public because he is a Board member and therefore his ability to speak is limited by the Texas Open Meetings Act. The First Amendment does not trump the time and space restrictions of the Texas Open Meetings Act. Stratta v. Roe (Brazos Valley Groundwater Conservation District), 961 F.3d 340 (5th Cir. 2020) https://casetext.com/case/stratta-v-roe Dear Dinosaur provides simple, practical answers to questions about Robert's Rules and parliamentary procedure. Send your questions to Dear Dinosaur here. Our answers are based on Robert's Rules of Order, Newly Revised, 12th edition. As always, nothing in this post constitutes legal or business advice. For specific issues, seek a qualified authority. Page 107 of 115 AGENDA ITEM #5.a. UPDATED Kodiak Island Borough OFFICE of the CLERK 2026 Calendar Filling A Vacant Assembly Member Seat 2.25.060(C). If less than 90 days remain in a term, the vacant seat shall not be filled. If a seat is declared vacant and more than 90 days remain in the term, then the clerk shall publish reasonable public notice of the vacancy. Accept resignation and declare the seat June 25 SPECIAL meeting vacant with an effective date of June 25, at There is more than 90 days remaining in the 11:59 p. m term. MOTION: Move to accept the resignation of , declare the seat vacant, and direct the Clerk to advertise the vacant seat per Borough code. Advertise in the paper. June 26 and July 3 The clerk shall publish reasonable public notice of the vacancy. Application Acceptance Period June 27 to July 11 For 14 days after the first publication thereof, receive applications from persons interested in being appointed to the vacant seat. Clerk to distribute interview packets July 13 (Assembly members to pick up in the The Assembly shall review the applications Clerk's office) Interview applicants July 16 During a SPECIAL Work Session The Assembly may interview applicants inteNtew te betUFRP-d- We and Fate sheets G4e1 * 11-1 talf}1 Review and decide on applicant July 16 During the Regular Meeting Appointment and Oath Taking July 16 During the Regular Meeting *Appointment and Oath Taking July 23 Special Meeting (*Reserved if needed) Not later than 30 days after the seat is July 25 deadline for appointment declared vacant, the assembly shall appoint from among the applicants a Must appoint by date: Effective vacancy date of qualified person to fill the vacant seat. June 25 plus 30 days =July 25 Note: The dates stated above can be adjusted. The assembly can expedite the appointment process by calling special meetings or skipping interviews. There are 103 days between June 25, 2026, and Election Day on October 6, 2026. The borough is legally required to fill the seat Page 1 of 2 Page 108 of 115 AGENDA ITEM #5.a. Section 2.25.060 Declaring and Filling Vacancies C. If less than 90 days remain in a term, the vacant seat shall not be filled. If a seat is declared vacant and more than 90 days remain in the term, then the clerk shall publish reasonable public notice of the vacancy and, for 14 days after the first publication thereof, receive applications from persons interested in being appointed to the vacant seat. The assembly shall review the applications and may interview applicants. Not later than 30 days after the seat is declared vacant, the assembly shall appoint from among the applicants a qualified person to fill the vacant seat. D. In appointing a person from among the applicants, the assembly shall utilize the voting procedures specified in KIBC 2.30.040(A) for the election of the deputy presiding officer. Section 2.30.040 Organization and deputy presiding officer. B. Election of the deputy presiding officer of the assembly shall be in the following manner: 1. As the first order of new business, nominations for deputy presiding officer shall be opened. 2. Nominations may be made by any member of the assembly. 3. At the close of nominations, a ballot shall be taken. The clerk shall distribute, collect, and with the assistance of one other person, tally the ballots. The clerk shall announce the results. 4. A majority vote of the assembly shall be required for election. 5. If no majority is cast for any candidate or candidates, the candidate with the fewest ballots shall be dropped from the list of candidates until there are two remaining and balloting shall continue until one candidate is elected. In case of an ultimate tie vote of the assembly, the mayor may vote. 2.30.070(F). The vote upon any question shall be "ayes" and "noes" and shall be recorded in the journal of the assembly. In the case where only six members of the assembly are present and there is a three/three tie vote of the assembly, the mayor may vote. No resolution, ordinance or motion before the assembly shall be valid unless affirmed or denied by a majority of the votes to which •the assembly is entitled on the question. 2.25.060 (F). Persons appointed to fill a vacancy shall serve until the next regular election, at which time a successor shall be elected to fulfill the remainder of the unexpired term of office. Page 2 of 2 Page 109 of 115 AGENDA ITEM #5.a. Application For A Vacant Seat On The Kodiak Island Borough Assembly The Kodiak Island Borough is looking for applicants to fill a vacant Assembly seat. The chosen applicant will serve a term ending in October 2026. Who Can Apply? You are eligible if you meet the following requirements: • Voter Status: You must be a qualified voter in the Borough. • Residency: You must have lived in the Borough for at least one year before applying. • Employment Restrictions: You cannot hold any paid Borough job or any state/federal elected office while on the Assembly. Financial Disclosure: The chosen appointee must file an official financial disclosure statement with the Alaska Public Offices Commission (APOC). Timeline & How to Apply: • Application Window: June 27 to July 11, 2026. • Where to Get Applications: Available at the Borough Clerk's Office or online at the Kodiak Island Borough Website. Questions? Contact the Borough Clerk's Office at (907) 486-9310 or clerks@kodiakak.us. Page 1 of 4 Page 110 of 115 AGENDA ITEM #5.a. (Please Print Clearly) I, , am a qualified voter and declare myself to have resided in the Kodiak Island Borough for at least one year at the time of filing. My current residence address is: I have been a resident of the Kodiak Island Borough since My full mailing address is: CERTIFICATION I, the undersigned, certify that the information in this form is true and complete, and that I meet the specific residency and citizenship requirements of this office. Once appointed, I certify that I am willing to fill out an Alaska Public Officials Financial Disclosure Form. Applicant's Signature Cell phone: Work phone: Email: Subscribed and sworn before me this day of , Notary (For office use only) Voter #: Page 3 of 4 Page 111 of 115 AGENDA ITEM #5.a. ASSEMBLY APPLICATION A letter of interest may be attached but is not required. Attach any documentation that you believe is relevant for the evaluation of your application. This application will be made available to the public. Name: Residence Address: Mailing Address: Are you a property owner in Kodiak? Occupation: Work Phone: Cell Phone: Education: Service Organization(s) Membership: Business and Professional Positions: Special Interests: Statement: Page 4 of 4 Page 112 of 115 Provided by Manager William &h f. #4�iar- meeting Agenda Item #14.A. packet review Ch. 2.35 Conflict of Interest I Kodiak Island Borough Code Chapter 2.35 CONFLICT OF INTEREST Sections: Pagel of 2 2.35.010 Conflicts of interest prohibited. 2.35.015 Simultaneous employment or personal service contracts by mayor and assembly members prohibited. 2.35.020 Definitions. 2.35.010 Conflicts of interest prohibited. A. A municipal officer, appointed official, or employee may not solicit or receive money for advice or assistance given in the course of the officer's or employee's employment or relating to his employment. B. A municipal officer, appointed official, or employee may not represent a client before the assembly or the planning and zoning commission for a fee. C. A municipal officer, appointed official, or employee may not accept a gift, loan, gratuity, or other valuable consideration, or a promise of any of them, with the understanding or agreement, expressed or implied, that the officer will cast a vote or give an opinion, decision or judgment in the particular manner, in a matter, question, cause, or proceeding which then is or may by law come or be brought before him, or with the understanding or agreement that the officer or employee will, in his official capacity, act in a particular manner to produce or prevent a particular result. D. No municipal officer, appointed official, or employee may vote or participate in any official action in which he has a substantial direct or indirect financial interest. Direct or indirect financial interest shall be disclosed to the chair prior to a vote on the question, and if there are not at least four assembly members in attendance who are qualified to vote, the matter shall be tabled until the next regular or special meeting at which four assembly members qualified to vote on the matter are in attendance. E. A municipal officer, appointed official, or employee may not use his official position for the primary purpose of obtaining financial gain for himself, or his spouse, child, mother, father, or business with which he is associated or owns stock. [Ord. 98-02 §4, 1998; Ord. 84-11-0, 1984; Ord. 79-11-0 , 1979. Formerly §2.18.010]. 2.35.015 Simultaneous employment or personal service contracts by mayor and assembly members prohibited. A. Notwithstanding any other provisions of this title, neither the borough mayor nor any member of the borough assembly shall, at any time during their terms of office, be employed by the borough in any other The Kodiak Island Borough Code is current through Ordinance FY2026-19, passed March 5, 2026. Page 113 of 115 AGENDA ITEM #8.a. Ch. 2.35 Conflict of Interest I Kodiak Island Borough Code Page 2 of 2 capacity, including but not limited to part-time or temporary employment, nor may they be a party to a personal services contract with the borough. B. For purposes of this section: 1. A "personal services contract" shall be defined as any contract or other agreement a primary purpose of which involves the rendition or performance of services or tasks; and 2. A person shall be considered a party to any contract which is held by a partnership, corporation, limited liability company, or other business entity which is at least 50 percent owned by that person and/or that person's spouse. C. A violation of this section shall be grounds for termination of the violator's term of office as well as termination of any contract of employment or personal services contract between the violator and the borough. [Ord. FY2014-01-1 §2, passed by voters 10/01 /13]. 2.35.020 Definitions. As used in this chapter, the following definitions shall apply: "Municipal officer" means the mayor, assembly members, manager, and members of the planning and zoning commission. "Substantial financial interest" means an expectation of receiving a non -trivial pecuniary or material benefit or loss. A person who has an ownership interest, or is a director, officer or employee of an organization or entity has a substantial financial interest in regard to that organization, and may not vote on contracts, agreements, or other actions involving that organization. [Ord. FY2018-16 §2, 2018; Ord. 98-02 §4, 1998; Ord. 84-61-0 §10, 1984; Ord. 84-11-0, 1984; Ord. 79-1 1-O , 1979. Formerly §2.18.0201. The Kodiak Island Borough Code is current through Ordinance FY2026-19, passed March 5, 2026. Disclaimer: The borough clerk's office has the official version of the Kodiak Island Borough Code. Users should contact the borough clerk's office for ordinances passed subsequent to the ordinance cited above. Borough Website: www.kodiakak.us Bor(;ugh Tel -phone: J907) 486-9300 Hosted by General Code, The Kodiak Island Borough Code is current through Ordinance FY2026-19, passed March 5, 2026. Page 114 of 115 AGENDA ITEM #8.b. Y KODIAK ISLAND BOROUGH oa ALASK Meeting Type: Assembly Work Session Please PRINT your name legibly Date: June 25, 2026 Phone number AG©Ic-, 9 0 -� &s - zo Page 115 of 115