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City Manager 334 Front Street Ketchikan, AK. 99901 Phone (907) 228-5603 Fax (907) 225-5075
TRANSMITTAL MEMORANDUM TO:
The Honorable Mayor and City Council
FROM:
David Martin, Assistant City Manager
DATE:
July 25, 2017
RE:
Ordinance No. 17-1855, Transportation Network Companies Prohibited; Conditioned Upon Voter Ratification; and Establishing an Effective Date
At its meeting of July 20, 2017 the City Council provided fou r hands directing staff to bring back an ordinance for consideration relative to prohibiting transportation network companies from conducting activities within the municipality. Attached for City Council review is Ordinance No. 17-1855 Transportation Network Companies Prohibited. As indicated in the attached memorandum from City Attorney Mitch Seaver, should this ordinance pass in first reading at the City Council meeting of August 3, 2017, a resolution placing the matter on the October 3, 2017 ballot will be presented to the City Council for consideration at its meeting of August 17, 2017, assuming that the ordinance has passed in second reading . Also attached for City Council review is a memorandum from Finance Director Bob Newell discussing Ketchikan Gateway Borough procedures for the collection of sales tax from individual transportation network company drivers. Attorney Seaver and Finance Director Newell will be attending the City Council meeting of August 3, 2017 and will be available to respond to questions or concerns that Councilmembers may have. A motion has been prepared for City Council consideration. Motion: I move the City Council approve in first reading Ordinance No. 17-1855 adding a new section 5.40.305 to the Ketchikan Municipal Code entitled "Transportation Network Companies Prohibited"; conditioned upon voter ratification ; and establishing an effective date.
AGENDA- 08/03/1 7- GGNB5
Mitch Seaver
334 FRONT STREET Ketchikan, Alaska 99901 Telephone (907) 228-5611 Facsimile (907 ) 247· 2111
City Attorney City of Ketchikan, Alaska
MEMORANDUM
TO:
Karl Amylon City Manager David Martin A s s / t City Manager
FROM:
lMjtch Seaver jiCity Attorney
DATE:
July 25, 2017
SUBJECT:
Transportation Network Companies Ordinance
As you are aware, state statues prohibit municipal regulation of transportation network companies except for sales taxes and municipal traffic ordinances. However, AS 29 .35.148(c) provides that: Notwithstanding AS 28.01.010 or (a) of this section, a municipality may by ordinance ratified by the voters in a regular municipal election prohibit transportation network companies from conducting activities under AS 28.23 within the municipality. Transmitted herewith is an ordinance that would prohibit such companies from operating with the city conditioned on voter ratification. Should the ordinance pass in first reading on August 3, a resolution placing the matter on the ballot will be presented to the Council for its approval at its August 17th meeting, assuming the ordinance passes in second reading. Proceeding in this way will allow sufficient time for the City Clerk to place the matter on the ballot for the October 3, 2017 regular election.
cc: Katherine Suiter City Clerk
ADU/M/TNC
Page 1 of 1
THE CITY OF KETCHIKAN, ALASKA ORDINANCE NO. 17-1855 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KETCHIKAN, ALASKA; ADDING A NEW SECTION 5.40.305 TO THE KETCHIKAN MUNICIPAL CODE ENTITLED "TRANSPORTATION NETWORK COMPANIES PROHIBITED"; CONDITIONED UPON VOTER RATIFICATION; AND ESTABLISHING AN EFFECTIVE DATE. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KETCHIKAN, ALASKA, AS FOLLOWS:
Section 1: New Section. A new section, to be numbered 05.40.305, entitled "Transportation network companies prohibited," is added to Title 5, Chapter 40, of the Ketchikan Municipal Code, to read as follows: "Transportation network companies are prohibited from conducting activities within the city limits under AS 28.23, (the Transportation Networl{ Companies Act) or otherwise. For purposes of this section "transportation network company" or "TNC" means any person or entity that uses a digital network to connect TNC riders with TNC drivers who provide prearranged rides. As used in this section "prearranged rides" does not include car pool or van pool arrangements or transportation using a public vehicle for which a taxicab certificate of public convenience or public vehicle certificate has been issued by the city. " Section 2: Effective Date. This ordinance shan · become effective upon certification of election results that the amendment to the Ketchikan Municipal Code set forth in Section 1 has been ratified by a majority of qualified voters of the City voting on the question of the regular election to be held October 3, 2017.
PASSED ON FIRST R E A D I N G - - - - - - - - - - - - - - - - FINAL PASSAGE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Lew Williams III, Mayor
ADU/0!05.40.305
Ordinance 17-1 855
ATTEST:
I
EFFECTIVE
ROLL CALL
Katherine M. Suiter City Clerk FYI:
Bracketed language is intended to be removed from the existing ordinance, and underlined language in bold type is intended as an addition to the existing Ketchikan Municipal Code .
DATE:
YEA
I
* NAY
ABSENT
COOSE FLORA GAGE IS OM KIFFER SIVERTSEN ZENGE MAYOR
ADU/0/05.40.305
Ordinance 17-1855
MEMORANDUM CITY OF KETCHIKAN, ALASKA
Finance Department Office of the Finance Director
Bob Newell, Finance Director Camille Nelson, Financial Analyst Phone: (907) 228-5621 Facsimile: (907) 228-5617
TO:
Karl R. Amylon, City Manager/KPU General Manager
FROM:
Bob Newell, Finance Director
DATE:
July 21 , 2017
SUBJECT:
Response to Questions Regarding Marijuana Sales Tax and Uber
At the City Council's meeting of July 20, 2017, several questions were raised regarding the accounting for the City's marijuana sales tax and how sales taxes would be collected from taxi services provided by Uber. As you are aware, the_City's 5% marijuana sales tax is being collected by the Ketchikan Gateway Borough. The administrative process is very similar to the process in place for the City's general sales tax and transient: occupancy tax. Merchants are required to submit quarterly tax reports to the Boro.ugh. Th~ reports and the payments of taxes are due by the end of the month following the quarter. For example, the tax reports and payments for the second quarter ended June 30, 2017 is due on or before July 31 , 2017. The Borough will be accounting for and reporting marijuana sales tax collections separately from the City's general sales tax and the transient occupancy tax. For the second quarter ended June 30, 2017, the City will. be receiving a payment of $10,335.94 from .the Borough next week. If the City Council determines that the funds should be used for a speqific purpose other than general government operations, consideration should. be given to establishing a special revenue fund similar to the Transient Occupancy Tax Fund. As was discussed during the council 'meeting, Uber is not responsible for collecting and reporting the sales taxes for the servic·es rendered by its drivers. Each driver is responsible for collecting the sales tax, filing a sales tax report and submitting payment of the sales taxes collected to the Borough. Uber drivers will be required to register with the Borough like any other business that wants to sell goods and services in our community. Currently, the Borough staff does not expect Uber to an issue. They have established internal procedures to inform and identify businesses such as Uber that are not directly responsible for collecting and reporting sales taxes. The procedures include communicating these responsibilities to the business community and utilizing on.:line search engines and social media to identify drivers that have failed to register.
City Manager 334 Front Street Ketchikan, AK. 99901 Phone (907) 228-5603 Fax (907) 225-5075
TRANSMITTAL MEMORANDUM TO:
The Honorable Mayor and City Council
FROM:
David Martin, Assistant City Manager
DATE:
July 25, 2017
RE:
Ordinance No. 17-1855, Transportation Network Companies Prohibited; Conditioned Upon Voter Ratification; and Establishing an Effective Date
At its meeting of July 20, 2017 the City Council provided fou r hands directing staff to bring back an ordinance for consideration relative to prohibiting transportation network companies from conducting activities within the municipality. Attached for City Council review is Ordinance No. 17-1855 Transportation Network Companies Prohibited. As indicated in the attached memorandum from City Attorney Mitch Seaver, should this ordinance pass in first reading at the City Council meeting of August 3, 2017, a resolution placing the matter on the October 3, 2017 ballot will be presented to the City Council for consideration at its meeting of August 17, 2017, assuming that the ordinance has passed in second reading . Also attached for City Council review is a memorandum from Finance Director Bob Newell discussing Ketchikan Gateway Borough procedures for the collection of sales tax from individual transportation network company drivers. Attorney Seaver and Finance Director Newell will be attending the City Council meeting of August 3, 2017 and will be available to respond to questions or concerns that Councilmembers may have. A motion has been prepared for City Council consideration. Motion: I move the City Council approve in first reading Ordinance No. 17-1855 adding a new section 5.40.305 to the Ketchikan Municipal Code entitled "Transportation Network Companies Prohibited"; conditioned upon voter ratification ; and establishing an effective date.
AGENDA- 08/03/1 7- GGNB5
Mitch Seaver
334 FRONT STREET Ketchikan, Alaska 99901 Telephone (907) 228-5611 Facsimile (907 ) 247· 2111
City Attorney City of Ketchikan, Alaska
MEMORANDUM
TO:
Karl Amylon City Manager David Martin A s s / t City Manager
FROM:
lMjtch Seaver jiCity Attorney
DATE:
July 25, 2017
SUBJECT:
Transportation Network Companies Ordinance
As you are aware, state statues prohibit municipal regulation of transportation network companies except for sales taxes and municipal traffic ordinances. However, AS 29 .35.148(c) provides that: Notwithstanding AS 28.01.010 or (a) of this section, a municipality may by ordinance ratified by the voters in a regular municipal election prohibit transportation network companies from conducting activities under AS 28.23 within the municipality. Transmitted herewith is an ordinance that would prohibit such companies from operating with the city conditioned on voter ratification. Should the ordinance pass in first reading on August 3, a resolution placing the matter on the ballot will be presented to the Council for its approval at its August 17th meeting, assuming the ordinance passes in second reading. Proceeding in this way will allow sufficient time for the City Clerk to place the matter on the ballot for the October 3, 2017 regular election.
cc: Katherine Suiter City Clerk
ADU/M/TNC
Page 1 of 1
THE CITY OF KETCHIKAN, ALASKA ORDINANCE NO. 17-1855 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KETCHIKAN, ALASKA; ADDING A NEW SECTION 5.40.305 TO THE KETCHIKAN MUNICIPAL CODE ENTITLED "TRANSPORTATION NETWORK COMPANIES PROHIBITED"; CONDITIONED UPON VOTER RATIFICATION; AND ESTABLISHING AN EFFECTIVE DATE. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KETCHIKAN, ALASKA, AS FOLLOWS:
Section 1: New Section. A new section, to be numbered 05.40.305, entitled "Transportation network companies prohibited," is added to Title 5, Chapter 40, of the Ketchikan Municipal Code, to read as follows: "Transportation network companies are prohibited from conducting activities within the city limits under AS 28.23, (the Transportation Networl{ Companies Act) or otherwise. For purposes of this section "transportation network company" or "TNC" means any person or entity that uses a digital network to connect TNC riders with TNC drivers who provide prearranged rides. As used in this section "prearranged rides" does not include car pool or van pool arrangements or transportation using a public vehicle for which a taxicab certificate of public convenience or public vehicle certificate has been issued by the city. " Section 2: Effective Date. This ordinance shan · become effective upon certification of election results that the amendment to the Ketchikan Municipal Code set forth in Section 1 has been ratified by a majority of qualified voters of the City voting on the question of the regular election to be held October 3, 2017.
PASSED ON FIRST R E A D I N G - - - - - - - - - - - - - - - - FINAL PASSAGE _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Lew Williams III, Mayor
ADU/0!05.40.305
Ordinance 17-1 855
ATTEST:
I
EFFECTIVE
ROLL CALL
Katherine M. Suiter City Clerk FYI:
Bracketed language is intended to be removed from the existing ordinance, and underlined language in bold type is intended as an addition to the existing Ketchikan Municipal Code .
DATE:
YEA
I
* NAY
ABSENT
COOSE FLORA GAGE IS OM KIFFER SIVERTSEN ZENGE MAYOR
ADU/0/05.40.305
Ordinance 17-1855
MEMORANDUM CITY OF KETCHIKAN, ALASKA
Finance Department Office of the Finance Director
Bob Newell, Finance Director Camille Nelson, Financial Analyst Phone: (907) 228-5621 Facsimile: (907) 228-5617
TO:
Karl R. Amylon, City Manager/KPU General Manager
FROM:
Bob Newell, Finance Director
DATE:
July 21 , 2017
SUBJECT:
Response to Questions Regarding Marijuana Sales Tax and Uber
At the City Council's meeting of July 20, 2017, several questions were raised regarding the accounting for the City's marijuana sales tax and how sales taxes would be collected from taxi services provided by Uber. As you are aware, the_City's 5% marijuana sales tax is being collected by the Ketchikan Gateway Borough. The administrative process is very similar to the process in place for the City's general sales tax and transient: occupancy tax. Merchants are required to submit quarterly tax reports to the Boro.ugh. Th~ reports and the payments of taxes are due by the end of the month following the quarter. For example, the tax reports and payments for the second quarter ended June 30, 2017 is due on or before July 31 , 2017. The Borough will be accounting for and reporting marijuana sales tax collections separately from the City's general sales tax and the transient occupancy tax. For the second quarter ended June 30, 2017, the City will. be receiving a payment of $10,335.94 from .the Borough next week. If the City Council determines that the funds should be used for a speqific purpose other than general government operations, consideration should. be given to establishing a special revenue fund similar to the Transient Occupancy Tax Fund. As was discussed during the council 'meeting, Uber is not responsible for collecting and reporting the sales taxes for the servic·es rendered by its drivers. Each driver is responsible for collecting the sales tax, filing a sales tax report and submitting payment of the sales taxes collected to the Borough. Uber drivers will be required to register with the Borough like any other business that wants to sell goods and services in our community. Currently, the Borough staff does not expect Uber to an issue. They have established internal procedures to inform and identify businesses such as Uber that are not directly responsible for collecting and reporting sales taxes. The procedures include communicating these responsibilities to the business community and utilizing on.:line search engines and social media to identify drivers that have failed to register.
