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TITLE 3 - REVENUE AND FINANCE


For statutory provisions regarding financial reporting, see AS 29.20.640; post audits, see AS 29.35.120; enhanced 911 surcharge, see AS 29.35.131; limitation on taxing federally certified air carriers, see AS 29.47.470; and limitation on equalization entitlements, see AS 29.60.050(a)


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3.04 Real property tax

3.08 Sales tax

3.12 Contract, purchase, and sale procedures

3.14 Public construction

3.16 Investment and collateralization of public funds

3.20 Repealed

3.24 Budget appropriations

3.28 City Enhancement fund



CHAPTER 3.04
REAL PROPERTY TAX


For statutory provisions regarding assessment and collection of taxes, see AS 29.35.170; and borough and city property and sales taxes, see AS 29.45; for charter provisions regarding property taxation see City Charter §V-8.

 



3.04.010 Generally

3.04.020 Repealed

 


3.04.010 Generally
.
(a) All real property not expressly exempt by the city shall be assessed at its full and true value. All real property tax levies shall be assessed and collected by the Kodiak Island borough in accordance with AS 29. The Kodiak Island borough, on behalf of the city of Kodiak, is authorized to maintain any legal action including suits for foreclosure necessary to collect real property taxes levied by the city including taxes levied by the city prior to the incorporation of the Kodiak Island borough.

    (b) All personal property is specifically exempted from the assessment and levy of ad valorem taxes by or on behalf of the city of Kodiak. This exemption does not affect or extend to ad valorem taxes assessed and levied by any other jurisdiction, including the Kodiak Island borough. (Ord. 908, 1991: Ord. 906, 1991: Ord. 310 §1, 1967: CCK §4.0.1)

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3.04.020 Youth center exemption
.
Repealed by Ordinance Number 695, effective October 8, 1983.

Repealed section 3.04.020 derived from Ordinance Number 326 §1, 1968.

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CHAPTER 3.08
SALES TAX


Repeal of former Chapter 3.08COrdinance Number 497, effective August 27, 1977, repealed former Chapter 3.08 and enacted new Chapter 3.08 in lieu of the repealed provisions. Former Chapter 3.08 derived from CCK §4.0.2C4.0.10; Ord. 308, 1967; Ord. 327, 1968; Ord. 389, 1973; Ord. 428, 1975.

 


3.08.010 Levy of sales tax

3.08.020 Accrual and collection

3.08.025 Allocation of sales tax proceeds

3.08.030 Installment payments

3.08.040 General exemptions
3.08.045 Tax-free day

3.08.050 Exemption of sales for resale

3.08.055 Senior citizens exemption

3.08.060 Certificate of exemption

3.08.070 Revocation of certificate of exemption

3.08.080 Tax collectors; registration certificate

3.08.082 Failure to obtain registration certificate

3.08.090 Addition of tax

3.08.100 Assumption of tax prohibited

3.08.110 Tax schedule

3.08.120 Maximum taxable sale

3.08.130 Title to tax proceeds

3.08.140 Sales tax returns

3.08.150 Credit for taxes

3.08.160 Administrative costs and reimbursements

3.08.170 Penalty and interest; application of partial payments

3.08.180 Determination of exemptions

3.08.190 Failure to collect taxes

3.08.200 Preservation of records; collection of arrears tax

3.08.210 Estimated tax

3.08.220 Returns confidential

3.08.222 Correction of errors on tax returns

3.08.224 Refund of overpayment

3.08.230 Recovery of taxes

3.08.240 Lien to secure payment of tax

3.08.250 Foreclosure against real property

3.08.260 Collection by distraint and sale

3.08.270 Prohibited acts; penalties, remedies

3.08.280 Definitions

3.08.290 Repealed


 

3.08.010 Levy of sales tax. (a) A sales tax of eleven (11) percent of the rental charge is levied on all transient room rentals within the city. This sales tax will also be known as the "bed tax."

    (b) A sales tax of six (6) percent of the sales price or charge is levied on all sales, rentals, and services made within the city, other than rentals of transient rooms.

    (c) For the purposes of the tax levied by this section, a sale of tangible personal property is made within the city if:
        (1) The sale is made by a business located within the city and delivery occurs within the city;
        (2) The sale is made by a business located within the city, the order is received or solicited within the city or payment is received within the city, and delivery is made to a purchaser within the Kodiak Island borough; or
        (3) The sale is made by a business located outside of the city as a result of solicitation inside of the city and payment or delivery occurs within the city.
    (d) For the purposes of the tax levied by this section, services are made within the city if, regardless of the location of the business rendering the services:
        (1) The services, or any essential or substantial part thereof, are rendered within the city; or
        (2) The order for the services is solicited or received within the city or payment is received within the city, the services are rendered by a business maintaining an office, agent, or employee within the city, and the services benefit or directly relate to any person, property, or organization within the city.
    (e) The sales tax on rentals is applicable for all real property located within the city and to rentals of personal property from a business within the city and from a business located outside the city under circumstances which authorize the imposition of a sales tax were the property to have been sold rather than rented.
    (f) For the purposes of this section, any building or other place of business shall be considered to be within the city if any part thereof or any substantial part of a contiguous parking area or other supporting facility is within the city. (Ord. 1155 §1, 2003; Ord. 1084 §1, 1999; Ord. 964 §1, 1993; Ord. 799 §1, §2, & §3, 1986; Ord. 676 §2 & §3, 1983; Ord. 557 §1, 1979; Ord. 497 §1 (part), 1977)

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3.08.020 Accrual and collection. Sales taxes imposed by this chapter are due and payable by the buyer at the time of payment for the purchase, service, or rental and are delinquent if not paid when due. Every person making sales or rentals or rendering services that are taxable under this chapter shall collect the taxes from the purchaser at the time of the sale, rental, or service or, with respect to credit transactions, at the time of collection of the sale price, rental, or service fee and shall transmit the money collected on a quarterly basis to the city. (Ord. 497 §1 (part), 1977)

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3.08.025 Allocation of sales tax proceeds. (a) One-sixth of the sales taxes collected under paragraph (b) of section 3.08.010 of this chapter and one-eleventh of the sales taxes collected under paragraph (a) of section 3.08.010 of this chapter shall be allocated to a separate fund or account to be appropriated and utilized solely for road improvements and capital equipment and for park construction and capital improvements, provided, however, that the total amount of sales taxes allocated to the foregoing fund with respect to any one fiscal year shall not exceed $500,000. This tax will be collected until December 31, 2013, unless further extended by the City Council and is to be allocated as follows:
        (1) Ninety percent for road improvements and capital equipment; and
        (2) Ten percent for park construction and capital improvements.
    (b) One-sixth of the sales taxes collected under paragraph (b) of section 3.08.010 of this chapter and one-eleventh of the sales taxes collected under paragraph (a) of section 3.08.010 of this chapter shall be allocated to a separate fund or account to be appropriated and utilized solely for harbor capital improvements constructed by or on behalf of the city, provided, however, that the total amount of sales taxes allocated to the foregoing fund with respect to any one fiscal year shall not exceed $500,000. This tax will be collected until December 31, 2013, unless further extended by the City Council and is to be allocated for port infrastructure maintenance, repair, replacement, and capital equipment.
    (c) Five-elevenths of the sales taxes collected under subsection 3.08.010(a) shall be allocated to a separate fund or account to be appropriated and utilized solely for increased development of the tourist industry, and is to be allocated as follows:
        (1) Seventy percent or less to a council approved tourism program;
        (2) Twenty percent or more for tourism enhancement projects, such as beautification within the city, development of which shall be solely at the council's discretion; and
        (3) Ten percent for the administrative costs associated with such programs.
    (d) The balance of sales taxes collected shall be deposited to the general fund of the city to be appropriated as determined by the council.
    (e) There will be an annual public hearing scheduled to discuss the following fiscal year's priorities for the expenditures of the road and harbor dedicated sales tax revenues. (Ord. 1208 §1, 2006; Ord. 1155 §2, 2003; Ord. 964 §2, 1993: Ord. 800 §1, §4, and §7, 1986; election held October 7, 1986; passage ratified October 14, 1986: Ord. 757, 1985: Ord. 676 §4, 1983: Ord. 557 §2, 1979)

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3.08.030 Installment payments.
When the payments for a purchase, rental, or service are made on an installment basis, the entire sales tax shall be collected from the down payment, or, if a down payment is not made or is insufficient to pay the tax, then from the entire first installment payment or payments until the tax is paid. (Ord. 497 §1 part), 1977)

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3.08.040 General exemptions
. The following classes of sales, rentals, and services are exempt from the tax imposed by this chapter:

    (a) Casual and isolated sales and rentals of personal property, and services not rendered in the regular course of business of the seller;

    (b) Medical services performed by licensed medical doctors, dentists, osteopaths, optometrists, psychiatrists, psychologists, and chiropractors; sales of medicinal preparations and drugs prescribed by medical doctors; and hospital services;

    (c) Sales, rentals, and services to religious and charitable organizations as defined in subsections 501(c)(l), (3), and (4) of the Internal Revenue Code, for the conduct of regular religious or charitable functions and activities, and not for the support or maintenance of the general membership or for communal living;

    (d) Sales of food in school cafeterias and lunchrooms that are operated primarily for students;

    (e) Sales and services by non-profit schools and student organizations within schools for support of the school, organization, or extracurricular activities or events;

    (f) Sales rentals, and services to the United States, the state of Alaska, and any agencies or political subdivisions thereof;

    (g) Dues or fees to clubs, labor unions, and fraternal organizations;

    (h) Subscriptions to newspapers and periodicals;

    (i) Repealed;

    (j) Sales of insurance and bonds of guaranty and fidelity;

    (k) Funeral charges;

    (l) Transportation charges of commercial airlines, air charters, and passenger ship companies; provided however, that this exemption shall not extend to boat charter operations not affecting interstate commerce;

    (m) Services rendered by banking or savings and loan institutions or credit unions;

    (n) Services rendered by an employee to an employer in the normal course of employment;

    (o) Sales, rentals, and services which the city is prohibited from taxing by the constitution or laws of the United States or the state of Alaska;

    (p) Retail sales in dining rooms or cafeterias of food furnished by nonprofit organizations under programs wholly or partially supported by government funds;

    (q) Nursery and baby-sitting services;

    (r) Long distance transmission of telephone and telegraph messages;

    (s) Sales of heating fuel exclusively for residential uses (not to include fuel used in or on water craft);

    (t) Sales of electrical service to exclusively residential units;

    (u) Sales of propane gas exclusively for residential uses (e.g., cooking, water heating, heating, clothes drying);

    (v) Sale of fuel used in stationary power plants that generate electrical energy exclusively for private residential consumption;

    (w) Sales, rentals, and services to nonprofit associations or organizations operated primarily for the purpose of planning, promoting, and conducting organized group activities for participants who are 18 years of age or less;

    (x) Charges for garbage/refuse collection for garbage/refuse generated exclusively by residential use;

    (y) Sales of water and sewer utility services for residential use; and

    (z) Sales by religious or charitable organizations, as defined in subsections 501(c)(1), (3), and (4) of the Internal Revenue Code, of pull tabs, raffle and lottery tickets, bingo cards, and other tokens of participation in games of chance and contests of skill. (Ord 1047 §2, 1997; Ord. 983 §1, 1994: Ord. 977, 1993: Ord. 971 §1, 1993: Ord. 830 §1 and 2, 1988: Ord. 768 §1, 1985: Ord. 767 §2, 1985: Ord. 766 §1, 1985: Ord. 497 §1 (part), 1977)

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3.08.045 Tax-free day.
(a) All sales, rentals and services made on the first Saturday in March of each year, and that otherwise would be subject to the tax imposed by this chapter, are exempt from that tax at the option of the seller, except as this section provides otherwise.
(b) The exemption in subsection (a) of this section shall not apply to:
     (1) Rentals for a period greater than one day; no sales tax on rentals for a period greater than one day shall be prorated or adjusted in any manner to include a sales tax exemption under subsection (a) of this section.
     (
2) Sales, rentals, and services made by the city.
(c) The seller shall report all sales, rentals, and services that are exempt from tax under this section as exempt sales on its sales tax return. (Ord. 1247, 2009)


3.08.050 Exemption of sales for resale
. The following sales of property are exempt from the sales tax:

    (a) Sales of property to wholesale dealers located in the city, who deal in property of the type sold, for the purpose of a subsequent sale by such dealer in the city;

    (b) Sales to retail dealers located in the city, who deal in property of the type sold, for the purpose of a subsequent retail sale by such dealer in the city, which sale will be subject to the tax imposed by this chapter;

    (c) Sales of tangible personal property to a person engaged in manufacturing within the city of products sold primarily within the city, which property is converted into or becomes an ingredient or component part of the manufactured product or a container therefor, or otherwise enters directly into the manufacturing process;

    (d) Sales to a building or construction contractor or subcontractor, for use on a project within the city of building materials, supplies, and other tangible personal property to be incorporated or used as component parts of a completed structure, driveway, landscaping, and other portions of the project and services utilized directly in the construction, erection, landscaping, and similar work on the project. This exemption shall not apply to tools, equipment, fuel, clothing, food, and similar items of property utilized but not incorporated into a project. (Ord. 1084 §2, 1999; Ord. 497 §1 (part), 1977)

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3.08.055 Senior citizens exemption
. (a) A person sixty-five years of age or older who has resided in the Kodiak Island borough for a continuous period of 30 days or more may obtain a senior citizens sales tax exemption certificate by submitting a completed application to the finance director on a form provided by the city. The application must be signed by the applicant under oath and shall contain information relating to the applicant's residence, marital status, rental or ownership of occupied dwelling, persons occupying the dwelling, and other information reasonably necessary to determine the applicant's eligibility and monitor the use of the exemption certificate. The applicant shall also submit for inspection and copying a birth certificate, or other evidence determined by the finance director to be adequate, to establish the applicant's age. The exemption certificate shall be issued without charge in the name of the applicant and shall be valid for a period of 3 years.

    (b) An exemption certificate issued to a person who is prevented or impaired from personally making purchases or payments by a physical or mental infirmity may designate not more than two other persons who shall be authorized to utilize the certificate when making purchases and payments on behalf of and for the sole use and benefit of the certificate holder or the certificate holder's spouse.

    (c) (1) No person may utilize a senior citizen tax exemption certificate to purchase or acquire property or rentals that are to be consumed or utilized by a person or persons other than the certificate holder, the certificate holder's spouse, a dependent of the certificate holder, or another person or persons who would be qualified to have a senior citizens exemption certificate issued to them under this section. As used in this section, "dependent" means a child of the certificate holder or the certificate holder's spouse who resides with the certificate holder when not attending school and who receives more than one-half of his or her support from the certificate holder.

(2) Notwithstanding any other provisions of this chapter no person may utilize a senior citizen tax exemption certificate to purchase or rent an item or service which will be used or consumed in a commercial business or enterprise or for the production of income.

    (d) Persons making sales or rentals to or for the benefit of a senior citizen which are exempt from tax under the provisions of this section shall confirm the identity of the person or persons presenting an exemption certificate, if not personally known to them, by requesting identification

and shall maintain records of each such exempt sale with an appropriate reference to the senior citizen exemption certificate number. If the person making the sale or rental has reason to believe that it is not for use or consumption by a senior citizen or other qualified user, because of the volume, type of purchase, or other facts, that person shall promptly report the possible fraudulent use of the exemption certificate to the city finance director. The finance director shall investigate the sale or sales, and if the finance director determines that the exemption certificate is being abused, the matter shall be referred to the city manager who shall conduct such further investigation as is determined necessary and present the facts to the council for authorization to initiate prosecution or revocation action, or both.

    (e) Senior citizens' exemption certificates shall be subject to revocation as provided in section 3.08.070 of this chapter. (Ord. 983 §2, 1994: Ord. 703, 1983: Ord. 568 §1, 1979)

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3.08.060 Certificate of exemption
. (a) A person entitled to the exemption under section 3.08.050 or subsections (c)or (w) of section 3.08.040 shall apply to the city for a certificate of tax exemption which will be issued, without charge, to qualified persons. The application shall be submitted on a form provided by the city clerk and shall contain the name, address, type of organization, the section under which the exemption is claimed, and such other information as is required by the city clerk. Duplicate certificates will be issued on request.

    (b) A construction contractor or subcontractor requesting exemption under subsection (d) of section 3.08.050 must apply to the city for a certificate of tax exemption which will be issued, without charge, to qualified licensed contractors or subcontractors. The exemption shall be valid for a period of one year, at the end of which an accounting of the use of the exemption shall be made to the finance director reflecting each building project and the correct location of the project by legal description and any other commonly recognized address from which services, materials, supplies, or other property are purchased or obtained.

    (c) The certificates of exemption shall be valid for a period of one year and the expiration date shall be printed on the face of the certificate. Exemption certificates may be renewed annually, without charge, by completing an application form containing information required to assess the continued existence of the exemption. (Ord. 766 §2, 1985: Ord. 695 §11, 1983: Ord. 537 §1, 1978: Ord. 497 §1 (part), 1977)

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3.08.070 Revocation of certificate of exemption.
(a) A certificate of tax exemption may be revoked by the city manager for any of the following acts or omissions:

(1) Falsification of any statement or information in the application for certificate of exemption;

(2) Utilization of the tax-exempt certificate for the purchase or acquisition of nonexempt property, rentals, or services;

(3) Knowingly or negligently permitting or authorizing the use of the certificate by a person other than an authorized agent or employee of the person or entity to whom the certificate was issued.

    (b) Prior to revocation of a certificate, the holder of the certificate shall be provided with notice of the alleged violation not less than ten days prior to the proposed effective date for revocation of the exemption certificate. The person or entity to whom the certificate was issued may request a hearing before the city manager regarding the alleged violation by filing a written request with the city clerk prior to the effective date for revocation. If requested, the hearing shall

be held within twenty days after the date of receipt of the request, and the exemption certificate shall not be revoked prior to the date of hearing.

    (c) A decision of the city manager revoking an exemption certificate may be appealed to the council by filing a written notice of appeal with the city clerk within ten days after receipt of the

decision. The hearing on the appeal shall be scheduled before the council at a regular or special meeting held within thirty days after receipt of the notice of appeal. The council may, in its discretion, hear the matter either on the record or de novo. If the appeal is heard de novo, no evidence may be presented before the council which was not presented before the city manager.

    (d) If an exemption certificate is revoked, a new certificate may not be issued to the same person or entity for a period of two years from the date of revocation.

    (e) The revocation provided by this section is in addition to any other penalties provided by law for the violations. (Ord. 497 §1 (part), 1977)

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3.08.080 Tax collectors; registration certificate
. (a) All persons engaged in selling or renting property or rendering services subject to the tax imposed by this chapter shall file an application for a certificate of registration not later than the date of commencing business in the city or opening a place of business within the city. An application for a new business not previously registered to collect sales taxes shall be accompanied by a one hundred dollar deposit, or, in the case of a person who does not maintain a permanent place of business within the city or who is not a local resident residing within the Kodiak Island borough, a two hundred dollar deposit which the registrant may recover by a deduction from the remittance submitted with the first quarterly return filed or, if that return is insufficient, the balance shall be refunded. If applicant has established credit with the city, the finance director may waive the required deposit.

    (b) Upon receipt of a properly executed application, on a form provided by the city clerk, accompanied by the required deposit, the city clerk shall issue the applicant a certificate of registration, stating the address of the place of business to which it is applicable and authorizing such person to collect the sales tax. The certificate shall be prominently displayed at the place of business named on the certificate or, if there is no regular place of business, the certificate shall be attached to the stand, truck, or other merchandising or service device.

    (c) The certificate of registration is nonassignable and nontransferable, and must be surrendered to the city clerk by the person or entity to whom it is issued upon cessation of business at the location named in the certificate. If the business is continued at the same location but there is a change in its business form, the certificate holder making such change shall surrender the old certificate to the clerk for cancellation and the successor organization shall apply for a new certificate of registration. Upon receipt of such application properly executed, a new certificate bearing a new number will be issued to such successor.

    (d) When there is a change of address for the certificate holder's place of business, a new certificate of registration is required, bearing the same registration number, showing the new address.

    (e) An applicant for a new certificate required to reflect a change in business form or a change of address for an existing certificate holder is not required to post a deposit with the application. (Ord. 830 §3, 1988: Ord. 497 §1 (part), 1977)

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3.08.082 Failure to obtain registration certificate
. It shall be unlawful for any person to engage

in, or continue in, business within the city or to conduct activities within the city, other than casual or occasional sales, unless and until such person obtains a certificate of registration. In the event the finance director ascertains that any such person is engaging in, or continuing in, business within the city, other than casual or occasional sales without a certificate of registration, one or more of the following remedies may be sought:

    (a) Conduct a special audit of such person's records and make a demand upon such person to obtain a sales tax certificate, in which case such person who has engaged in business or activities within the city without a certificate shall pay a special fee to reimburse the city for the expense of the audit, which fee shall be the lesser of the sum of one thousand dollars or ten percent of any tax found to be due. However, the fee may be waived at the discretion of the finance director for good cause shown. The finance director shall also assess any delinquencies, and applicable penalties and interest, if any, against such person, if such person engaged in sales or other transactions which were or are subject to the city sales tax.

    (b) Report the facts to the city prosecutor for appropriate action. (Ord. 721 §1, 1984)

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3.08.090 Addition of tax.
(a) The tax collector shall add the tax imposed by this chapter to the price or charge, showing the tax as a separate and distinct item. The tax imposed on the sale of more than one separately priced item may be shown as a total tax on the aggregate price of all items purchased and delivered at one time.

    (b) The owner or other person providing products or services through a coin- operated vending or amusement machine shall collect the tax levied by this chapter and may include that tax in the fee charged to operate the machine. The allocation of the payment required to operate the machine, between the purchase price and sales tax, shall be explained by notice or marking on the device.

    (c) A business selling gasoline or diesel fuel delivered to the customer's vehicle in bulk may include the sales tax as an extra charge in the metered price for the fuel if a notice is posted on the meter or pump, or otherwise prominently displayed, explaining the allocation of the total cost between the charge for the fuel and the sales tax.

    (d) A business engaged in the sale of beverages for consumption on the premises may, in lieu of adding the tax as a separate item, include the tax imposed by this section in the price for the beverage. A notice shall be prominently displayed in the establishment dispensing the beverages explaining the allocation of the total price between the charge for the beverage and the sales tax collected.

    (e) A business providing for-hire passenger vehicle transportation services may, in lieu of adding the tax as a separate item, include the tax imposed by this chapter in the charge for the transportation. A notice shall be prominently displayed in each for-hire passenger vehicle explaining the allocation of the total charge between transportation charges and the sales tax collected.

    (f) When authorized by this section to be included in the price or charge for a product or service, the tax to be collected and remitted shall be determined by multiplying the gross receipts from the services or product by .06 and dividing that product by 1.06. Notices required by this section shall be provided by the city. (Ord. 972 §1, 1993: Ord. 557 §3, 1979: Ord. 497 §1 (part), 1977)

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3.08.100 Assumption of tax prohibited
. No person may advertise or state to the public, or to any buyer, tenant, or consumer of property or services, directly or indirectly that the tax imposed by this chapter or any part thereof will be assumed or absorbed by that person, or that it will not be added to the sales price or charge, or that it will be refunded; nor may any person assume, absorb, or fail to separately state the tax to the buyer, tenant, or consumer, unless otherwise specifically authorized by this chapter. (Ord. 497 §1 (part), 1977)
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3.08.110 Tax schedule. (a) The amount of the tax to be added to the rental charge for transient room rentals shall be determined in accordance with the following schedule:

Charge                                        Tax

Under 5 cents                             None

$ .05 through $ .14                    $ .01

.15 through .22                             .02

.23 through .31                             .03

.32 through .40                             .04

.41 through .49                             .05

.50 through .59                             .06

.60 through .68                             .07

.69 through .77                             .08

.78 through .86                             .09

.87 through .95                             .10

.96 through 1.04                           .11

Over $1.05                             Continue on same scale.

    (b) The amount of tax to be added to the purchase price, rental, or service charge, other than rentals of transient rooms, shall be determined in accordance with the following schedule:

Charge                                        Tax

Under 9 cents                             None

$ .09 through $.24                     $ .01

.25 through .41                             .02

.42 through .58                             .03

.59 through .74                             .04

.75 through .91                             .05

.92 through 1.08                           .06

1.09 through 1.24                         .07

1.25 through 1.41                         .08

1.42 through 1.58                         .09

1.59 through 1.74                         .10

1.75 through 1.91                         .11

1.92 through 2.08                         .12

Over $2.09                             Continue on same scale.

(Ord. 964 §3, 1993: Ord. 695 §12, 1983: Ord. 676 §5, 1983: Ord. 557 §4, 1979: Ord. 497 §1 (part), 1977)

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3.08.120 Maximum taxable sale
. (a) If the sales price of an item or items or the charge for rental of any property or performance of any service exceeds seven hundred fifty dollars for a single transaction, that portion of the price or charge in excess of seven hundred fifty dollars shall be exempt from the tax levied by this chapter. 

    (b) In determining the maximum tax payable with regard to a single transaction for the rendering of services on a substantially regular basis, which services are generally repetitive in nature and are to be performed over a period of time under a contract, each period for payment or partial payment under the contract shall be deemed a separate service transaction. The maximum tax payable shall be applicable to each deemed service transaction with tax payments to accrue and become payable at the time of filing the next quarterly return to be submitted following receipt of payment for the service.

    (c) For purposes of computing the maximum tax, a rental of property for a period in excess of one month shall be deemed as a series of rentals with each rental transaction terminating as a rental payment is made. The maximum sales tax payable shall be applicable to each deemed rental with tax payments to accrue and become payable at the time of filing the next quarterly return to be submitted following receipt of the rental.

    (d) For purposes of computing the maximum tax, a transaction which takes the form of a lease shall be deemed a rental or series of rentals unless a party to the transaction demonstrates that it constitutes a capital lease as defined in this chapter. A capital lease shall be treated as an installment purchase. The finance director shall have the final authority to determine whether or not a particular transaction constitutes a capital lease and may require the parties to such a transaction to submit such information or documentation as the finance director feels is reasonably necessary to make this determination. In making such a determination the finance director may rely upon the 1991 Comprehensive Governmental GAAP Guide by Larry P. Bailey (Miller Accounting Publications, Inc., a subsidiary of Harcourt Brace Jovanovich Publishers). (Ord. 1190, §1,  2005; Ord. 1171 §1, 2004; Ord. 983 §3, 1994: Ord. 497 §1 (part), 1977)

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3.08.130 Title to tax proceeds
. The title to the taxes collected pursuant to this chapter shall vest in the city upon collection by the tax collector. (Ord. 497 §1 (part), 1977)

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3.08.140 Sales tax returns
. (a) Each person who sells or rents property or renders services taxable under this chapter in any quarter ending March 31, June 30, September 30, and December 31 shall, on or before the last day of the month following the end of each quarter year, or April 30, July 31, October 31, and January 31 respectively, complete, sign, and file with the city a return for that quarter, upon forms furnished by the city, setting forth the following:

(1) The amount received from all sales, rentals, and services made or rendered within the city;

(2) The amount received from nontaxable sales, rentals, and services, with a brief explanation of the nontaxable status;

(3) The amount received from taxable sales, rentals, and services;

(4) The amount of tax attributable to the taxable sales, rentals, and services;

(5) The taxes collected; and

(6) Such other information and supporting papers as the council may require in the reporting form.

    (b) The taxes collected shall be remitted with the reporting form after deducting any administrative fees that may be allowed by section 3.08.160.

    (c) If the day established in this section for filing any sales tax return is a Saturday, Sunday, or legal holiday, tax returns and remittances shall be considered filed on time if delivered by hand to City offices or postmarked on or before the close of business on the first business day following that Saturday, Sunday, or holiday.

    (d) A person making sales or rentals or rendering services within the city shall make a return, even though none of the reported transactions are taxable, unless the person is a licensed medical doctor, dentist, osteopath, optometrist, chiropractor, hospital, religious or charitable organization, or club, or a labor union.

    (e) A person who fails to timely comply with the provisions of this chapter relating to the filing of quarterly reports and remittance of taxes collected for any one quarter during a calendar year shall, if required by written notice from the finance director, file the required reports and transmit collected sales taxes monthly until such time as the finance director determines that a willingness and ability to comply with the requirements of this chapter has been established. Monthly reports and remittances shall be due on the fifteenth day of each month following the month of collection. Any person may, upon notification to the finance director, file reports and transmit taxes monthly.

    (f) A person doing business within the city for a period of time that is, or can reasonably expected to be, less than six months in duration shall file sales tax returns and remit taxes on a monthly basis as provided in subsection (e) of this section.

    (g) A final sales tax return shall be filed and the tax due remitted within fifteen days after the date of selling or terminating a business. The purchaser of the business shall withhold a portion of the purchase money sufficient to pay any sales tax, penalties, and interest that may be due until seller displays a receipt from the city evidencing total payment of the tax, interest, and penalties due. If the purchaser fails to withhold the required sum from the payment due to the seller, the purchaser shall also be liable for the taxes, penalties, and interest owed by the seller to the city. (Ord. 1105, 2000; Ord. 799 §4, 1986: Ord. 696, 1983: Ord. 685 §1 & §2, 1983: Ord. 497 §1 (part), 1977)

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3.08.150 Credit for taxes.
A person who has collected and remitted a tax on a sale, which tax is subsequently determined not to be due because a refund is granted for returned merchandise, payment is refused on a check received in conjunction with a sale, or similar circumstances, may take a credit against future taxes. Proper documentation shall be made available by the tax collector, on request, to substantiate the credit taken. (Ord. 497 §1 (part), 1977)

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3.08.160 Administrative costs and reimbursements.
To compensate sellers, renters, and persons rendering services for keeping the sales tax records and filing returns as required by this chapter and making prompt remittances, those persons shall be entitled to a fee equal to two percent of the amount of the tax collected, and that amount may be deducted when making remittances; provided that the reports and remittances are received on or before the due date for such reports and remittances. A person filing a report or remitting taxes collected after the due date forfeits the right and claim to the fee provided by this section and shall remit the entire tax due. (Ord. 497 §1 (part), 1977)

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3.08.170 Penalty and interest; application of partial payments.
(a) A person who fails to remit taxes collected on or before the due date shall pay, in addition to the tax due, a penalty of five percent of the tax that is then due and unpaid for each month or any fraction of a month during which any part of the tax remains unpaid until a total penalty of twenty percent has accrued, which penalty shall be added to all returns until the tax, penalty, and interest have been paid.

    (b) Taxes that are not remitted to the city when due shall draw interest from the date of delinquency until paid at the rate of fifteen percent per year. Interest shall not accrue on the late payment penalty assessed by subsection (a) of this section, but shall accrue on the civil penalty assessed by section 3.08.190.
    (c) Partial payments shall be credited to the amount due for each calendar quarter, in chronological order, and within the amount due for each calendar quarter first to accrued penalty, second to accrued interest and then to the tax obligation originally due. (Ord. 1217 §1 (part), 2007; Ord. 799 §5 & §6, 1986; Ord. 497 §1 (part), 1977) (Ord. 799 §5 & §6, 1986: Ord. 497 §1 (part), 1977)

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3.08.180 Determination of exemptions
. (a) Every sale of property or service and every rental made within the city, or rendered or received by a person within the city, unless explicitly exempted by ordinance, is presumed to be subject to the tax imposed by this chapter.

    (b) A purchaser, tenant, or other person obtaining property or service who claims an exemption under a provision of this chapter for which a certificate of exemption is required shall display the certificate at the time of the purchase or rental and the certificate number shall be noted on the receipt, invoice, or other evidence of the transaction.

    (c) A purchaser, tenant, or other person obtaining property or services who believes the tax has been charged in error may make a claim to the city for refund within thirty days after the date of sale.

    (d) If the finance director denies a refund of the tax, the taxpayer may appeal to the city manager by filing a written notice of appeal, within ten days after the finance director's decision, setting forth all facts relating to the claimed exemption. The city manager shall provide an opportunity for a hearing within thirty days after the receipt of the notice of appeal. (Ord. 497 §1 (part), 1977)

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3.08.190 Failure to collect taxes
. (a) A person required by this chapter to collect sales taxes levied, who fails to collect such taxes on taxable transactions, shall be assessed with a civil penalty of double the tax that should have been collected, as determined by an audit.

    (b) If any of the following defenses are established, the civil penalty imposed by this section shall be waived:

(1) The securing, in good faith, of a certificate of exemption or a statement of eligibility for exemption from the person against whom the tax would have been levied;

(2) Proof of a belief, based upon advice of legal counsel or the city finance director, that the sale, rental, or rendering of service was not subject to the tax levied by this chapter, accompanied by proof of notification in writing to the city manager based on such belief prior to or immediately following the transaction;

(3) A reasonable attempt, in good faith, to collect the tax from the buyer.

    (c) A purchaser, renter, or other person obtaining property or services who fails to pay the tax levied by this chapter on a taxable transaction shall be assessed with a civil penalty of double the taxes that should have been paid.

    (d) The civil penalties imposed by this section shall be in addition to any other civil or criminal penalties imposed by this chapter. (Ord. 497 §1 (part), 1977)

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3.08.200 Preservation of records; collection of arrears tax
. (a) Every person required by this chapter to collect and remit taxes shall keep and preserve suitable records of the gross sales, rentals, or service receipts, together with bills of sale and other pertinent records and documents which may be necessary to determine the amount of the tax due under this chapter and to substantiate the information provided in filed returns. The records required to be maintained shall be preserved for not less than three years after the remittance of the taxes and shall be subject to examination by the city finance director or any other authorized employee of the city while engaged in reviewing or auditing the records of any taxpayer required to make a return under the provisions of this chapter. The city shall give written notice of intent to conduct an audit under this section not less than five days prior to the audit.

    (b) Collection of arrears tax by the city shall be limited to the period of three years prior to the date when the finance director or authorized agent began an audit of the taxpayer's records, wrote to the person through use of regular mail concerning an apparent violation of this chapter, or took some other recorded action to require a certificate of registration or other compliance with this chapter. (Ord. 721 §2, 1984: Ord. 497 §1 (part), 1977)

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3.08.210 Estimated tax
. If the city is unable to ascertain the correct tax to be paid by a seller because of the failure or refusal of the seller to file a return, keep accurate records, or allow their inspection, or because a return has been falsified, the city may prepare an estimate of the tax due based on any information that may be available. Notice of the estimated tax shall be personally delivered or sent to the seller by certified mail and shall become final for the purpose of establishing the tax liability unless the seller, within thirty days after the date of the personal delivery or mailing of the notice of the estimated tax, files an accurate return supported by records determined by the finance director to be satisfactory, establishing a lesser liability. In either event, however, penalty and interest under section 3.08.170 shall be calculated and imposed from the original due date. The fact that a notice of estimated tax sent by certified mail was unclaimed, refused, or claimed by a person other than the seller shall not affect its validity or extend the date upon which it becomes final unless the seller establishes that the seller did not ordinarily receive mail at or through the address to which the notice was addressed and did not otherwise receive the notice. (Ord. 1047 §3, 1997; Ord. 497 §1 (part), 1977)

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3.08.220 Returns confidential.
(a) Except in connection with official investigations or proceedings of the city, whether judicial or administrative, involving taxes due under this chapter, or as otherwise authorized by paragraph (b) of this section, no officer, employee, or agent of the city may divulge any information disclosed in a report or return filed under this chapter. The prohibition of this section shall not prohibit the preparation and use of statistical summaries of sales tax data that do not disclose the identity of any person filing reports required by this chapter.

    (b) Notwithstanding the foregoing paragraph (a), the following information shall be made available to the public upon request: the name and address of sellers who have registered to collect and remit city sales tax; whether or not an individual or business is registered to collect sales tax in the city; whether or not a business is current in filing sales tax returns and in remitting sales tax, the amount of sales tax due, and number of returns not filed; and the names addresses and exemption numbers of the non-profit agencies which have received a non-profit exemption number from the finance department. The city manager or his or her designee may from time to time publish the names of sellers delinquent in filing sales tax returns or remitting sales taxes and the amount thereof, provided that the name of a seller who has signed a confession of judgement for delinquent sales taxes, penalties, and interest, and a stipulation to postpone execution against such judgement, and who is current in the payments to be made and all other obligations arising as a result of such stipulation as of the date on which the names are submitted to the publisher, will not be published. (Ord. 1068, 1998; Ord. 497 §1 (part), 1977)

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3.08.222 Corrections of errors on tax returns.
If the taxpayer makes an error or errors in computing the tax on a return, the finance director or authorized agent, shall correct such error or errors and immediately notify the person filing the return by ordinary mail that such correction has been made. Any additional tax due, together with applicable penalty and interest in accordance with section 3.08.170, for which the taxpayer becomes liable shall be payable immediately by the taxpayer. If the taxpayer makes an error which results in overpayment of tax, the finance director shall allow credit against taxes due on future returns, or shall authorize a refund in accordance with section 3.08.224. (Ord. 721 §3, 1984)

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3.08.224 Refund of overpayment
. The finance director, or authorized agent, shall refund overpayment of taxes brought about by mathematical errors in the return or reports filed by the person remitting the tax; computational errors made by the remitter or city personnel with respect to said return or reports; duplicate payments by remitter; or any overpayments made by a person filing a tax return that may be determined as a result of an audit of such person's records; provided, however, that in no event shall the remitter of sales taxes be entitled to a refund for overpayment of sales taxes where the overpaid taxes have actually been collected by said person. In the event the amount of overpayment is one hundred dollars or less a cash refund may be authorized at the discretion of the finance director. In no event shall there be a refund for overpayments that were made more than three years prior to the discovery of the overpayment by the person filing the returns or the finance director or authorized agent. (Ord. 721 §4, 1984)

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3.08.230 Recovery of taxes
. Taxes due but not paid may be recovered by the city in an action against the buyer, tenant, or recipient of services if that person has failed or refused to pay the tax

on request by the seller or submitted a false certificate of exemption. Taxes collected but not transmitted and taxes not requested or demanded by the person charged with the duty of collecting of tax may be recovered by an action against the person selling or renting the property or services. (Ord. 497 §1 (part), 1977)

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3.08.240 Lien for tax, interest, and penalty
. (a) The tax, interest, and penalty imposed under this chapter and the lien filing fee under subsection (b) of this section shall constitute a lien in favor of the city upon all real and personal property of every person required to collect and remit the tax. The lien arises at the time of delinquency and continues until liability for the tax is satisfied or the property of the delinquent person is sold at foreclosure sales. The lien has priority over all other liens and encumbrances except those for property taxes and special assessments; provided, however, that the lien is not valid as against a person in the position of a prior mortgagee, pledgee, or judgment creditor until notice of the lien is filed in the office of the recorder for the Kodiak Recording District in the manner provided for federal tax liens in AS43.10.090 through 43.10.150 and the lien is not valid against a purchaser who, prior to the recording of it, in good faith and without actual notice of the lien or the underlying tax liability, has acquired for fair market value an interest in property otherwise subject to the lien. Upon recordation a copy of the lien shall be sent to the last known address of every person named in the lien. Failure to comply with this requirement shall not, however, affect the validity of the lien or the city's right or authority to foreclose upon it.

    (b) Fees for the filing and releasing of liens authorized by this section shall be established by resolution or motion of the city council. (Ord. 951 §1, 1993: Ord. 830 §4, 1988: Ord. 497 §1 (part), 1977)

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3.08.250 Foreclosure against real property
. A lien for the tax, interest, and penalties created by this chapter may be foreclosed, when authorized by the council, by commencement of an action in the superior court pursuant to the procedure set forth in AS 09.45.170C220. (Ord. 497 §1 (part), 1977)
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3.08.260 Collection by distraint and sale
. (a) The city may collect taxes, with interest, penalties, and other additional amounts permitted by law, by distraint and sale of the property of the person liable to pay the taxes, interest, penalty or other additional amount, who neglects or refuses to pay them within ten days after receipt of notice and demand for payment.

    (b) In case of neglect or refusal to pay taxes or deficiencies as provided in this section, the city clerk may issue a warrant authorizing any police officer to levy upon, seize, and sell any property, except exempt property, belonging to the person for the payment of the amount due, with interest and penalty. When distraint is made as provided in this section, the police officer charged with the services shall make an inventory of the property served and leave a signed copy of that inventory with the owner or possessor of the property, or at the dwelling or usual place of business, if a person of suitable age and discretion can be found, or if the taxpayer is a corporation or other type of organization with an officer, manager, general agent, or agent for process, with a notation of the amount demanded and the time and place of sale.

    (c) The police officer shall immediately publish a notice of the time and place of sale at public auction, together with a description of the property distrained, in a newspaper published in the city and post a copy of the notice at the post office nearest the place where the sale is to be made.

    (d) The time of sale shall be not less than fifteen or more than sixty days from the date of the notification to the owner or possessor of the property, and the place proposed for the sale shall not be more than five miles from the place of making the distraint. The sale may be continued from time to time in the discretion of the police officer, but not for more than thirty days after the date specified in the notice.

    (e) The property distrained shall be restored to the owner or possessor if, before the sale, payment of the amount due is made to the police officer charged with the collection, together with the fees and other charges.

    (f) The police officer conducting the sale under this section shall give to the purchaser a certificate of sale on payment in full of the purchase price. The certificate of sale:

(1) Is prima facie evidence of the right of the police officer to make the sale, and conclusive evidence of the regularity of the officer's proceedings in making the sale;

(2) Transfers to the purchaser all right, title, and interest of the delinquent taxpayer in and to the property sold;

(3) Where the property consists of stock, is notice, when received, to the corporation to record the transfer on their books and records in the same manner as if the stock were transferred or assigned by the party holding the stock in lieu of an original or prior certificate, which is void, whether canceled or not; and

(4) Where the subject of the sale is security or other evidence of debt, is a good and valid receipt to the person holding it, as against a person holding or claiming to hold possession of the security or other evidence of debt.

    (g) If property seized and sold is not sufficient to satisfy the claim of the city for which distraint or seizure is made, the police officer may, thereafter, and as often as is necessary, proceed to seize and sell in like manner any other property subject to the lien created by this chapter until the amount due from the taxpayer together with all expenses is fully paid.

    (h) A person in possession or control of property subject to distraint, upon which a levy is made, shall, upon demand by the police officer making the levy, surrender the property to the police officer, unless the property is, at the time of the demand, subject to an attachment under judicial process. A person who fails or refuses to so surrender the property is personally liable to the city for a sum equal to the value of the property not so surrendered, but not exceeding the amount of the taxes or deficiencies, including penalties and interest for the collection of which levy is made, together with costs and interest from the date of the levy.

    (i) All persons shall, on demand of a police officer about to distrain or having distrained on property or rights of property, exhibit all books containing evidence or statements relating to the property liable to distrain for the tax due.

    (j) The provisions of this chapter are not exclusive but are in addition to all other existing remedies provided by law for the divorcement of a levy and collection of taxes of the city. (Ord. 497 §1 (part), 1977)

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3.08.270 Prohibited acts
; penalties; remedies.
. (a) No person may: 
        (1) Fail or refuse to file a completed tax return required by this chapter or falsify any material statement in that return.
        (2) Fail or refuse to collect taxes levied by this chapter or to remit those taxes to the city, as required.
        (3) Conduct any business in the city relating to sales, rentals, or services subject to taxation under this chapter without first applying for and obtaining a certificate of registration to collect  the taxes imposed on sales, rental, and services.
        (4) Cause or permit a corporation of which the person is an officer or director, a limited liability company of which the person is a member or manager, or a partnership of which the person is a partner, to violate any provision of paragraphs (1) through (3) of this subsection.
A person who is convicted of violating a provision of this subsection shall be subject to a fine of not more than $5,000 plus any surcharge required to be imposed by AS 29.25.074, imprisonment for not more than one year, or both such fine and imprisonment.
    (b) No person may falsify any portion of an application for a certificate of exemption.
    (c) The city may institute a civil action against a person who violates a provision of subsection (a) of this section. An action to enjoin a violation may be brought notwithstanding the availability of any other remedy. Injunctive relief may include an order prohibiting the violator from selling or renting property or rendering services subject to the tax imposed by this chapter until the person has accounted for and remitted to the city all of the tax that the person failed to collect and remit as required by this chapter, with applicable penalty and interest. On application for injunctive relief and a finding of a violation or a threatened violation, the superior court shall grant the injunction. In addition to injunctive and compensatory relief, a civil penalty not to exceed $1,000 may be imposed for each violation. Each day that a violation continues constitutes a separate violation. (Ord. 1197 §2, 2005; Ord. 753 §2, 1985: Ord. 497 §1 (part), 1977)

(Ord. 753 §2, 1985: Ord. 497 §1 (part), 1977)

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3.08.280 Definitions
. As used in this chapter the following definitions shall apply:

    (a) "Buyer" or "purchaser" means a person who acquires an interest in real or personal property, or the right to use real or personal property, or who acquires services for consideration.

    (b) "Charitable organization" means an organization having as its primary purpose relief of the poor and distressed or of the underprivileged.

    (c) "Hotel-motel" means a structure or portion of a structure which is occupied or intended for occupancy by transients for dwelling, lodging, or sleeping purposes and includes any hotel, motel, inn, or similar structure.

    (d) "Rental" means permitting the use or occupancy of real or personal property for consideration other than by means of a capital lease.

    (e) "Residential unit" means one or more rooms and a single kitchen in a dwelling designed as a unit for occupancy by not more than one family for living or sleeping purposes.

    (f) "Residential uses" means for use within a residential unit.

    (g) "Sale" means a transfer or exchange of any property of every kind and description, or the right to use or occupy such property, for consideration.

    (h) "Sales price" or "charge" means the consideration, whether money, credit, or other property or interest in property, without deduction for delivery costs, taxes, or any other expense. The receipt of property or an interest in property as consideration, the "sales price" or "charge" shall be based on the fair market value of the property or interest in property.

    (i) "Seller" means a person, whether acting as a principal, agent, or broker, who sells, leases, or rents real or personal property or provides services to another for consideration.

    (j) "Transient" means a person who occupies or rents and has available for the person's own

occupancy or occupancy by any other person a suite, room or rooms in a hotel-motel for fewer than thirty (30) consecutive days. An employee who occupies or has available for fewer than thirty (30) days a suite, room or rooms rented or leased for more than thirty (30) consecutive days by an employer for use on a rotating basis by employees is not a transient.

    (k) "Capital lease" means a lease which is in substance a purchase and wherein substantially all of the risks and benefits of ownership are assumed by a lessee. A lease which meets any one

or more of the following criteria shall be considered a capital lease:

(1) The lease transfers ownership of the leased property to the lessee by the end of the lease term.

(2) The lease contains a bargain purchase option.

(3) The lease term is equal to 75 percent or more of the estimated economic life of the leased property. However, if the beginning of the lease term falls within the last 25 percent of the total estimated economic life of the leased property, including earlier years of use, this criterion shall not be used for purposes of classifying the lease.

(4) The present value at the beginning of the lease term of the minimum lease payments, excluding that portion of the payments representing executory costs, to be paid by the lessor, including any profit thereon, equals or exceeds 90 percent of the excess of the fair value of the leased property to the lessor at the inception of the lease over any related investment tax credit retained by the lessor and expected to be realized by the lessor. However, if the beginning of the

lease term falls within the last 25 percent of the total estimated economic life of the leased property, including earlier years of use, this criterion shall not be used for purposes of classifying the lease.

    (l) A "bargain purchase option" exists with respect to leased property when the lessee can buy the property some time during the term of the lease at an amount substantially less than its estimated fair value at the time the option is exercised. If there is reasonable assurance at the inception of the lease that the purchase option will be exercised, the option shall be considered a bargain purchase option.

    (m) A legal holiday is a holiday on which the City finance offices are closed to business, which holidays are enumerated in the City's Personnel Rules and Regulations. (Ord. 1105, 2000; Ord. 983 §4, 5, and 6, 1994: Ord. 799 §7, 1986: Ord. 767 §3, 1985: Ord. 676 §6, 1983: Ord. 497 §1 (part), 1977)

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3.08.290 Expiration of transient room rental tax.
 Repealed by Ord. 1281 (Res. 98-10: Res. 14-93: Res. 05-88: Ord. 676 §7, 1983)

 

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CHAPTER 3.12
  CONTRACT, PURCHASE, AND SALE PROCEDURES


For statutory provisions regarding procurement preference for state agricultural and fishing products, see AS 29.71.040; for recycled Alaska products, see AS 29.71.050.



3.12.010 Contract, purchase, sale and transfer procedure

3.12.020 Limitation on city manager's authority

3.12.030 Open market procedures

3.12.040 Advertising for bids

3.12.050 Processing of bids

3.12.055 Pre-bid and pre-award conferences

3.12.060 Local bid preference

3.12.070 Exceptions to bidding requirements

3.12.080 Lowest responsible bidder

3.12.085 Labor requirements; public improvement projects

3.12.090 Contract, purchase, or sale valid when; prohibited when

3.12.100 Purchase of heavy equipment



3.12.010 Contract, purchase, sale and transfer procedure
. The city manager shall:

    (a) Contract for, purchase, or issue purchase authorizations for all supplies, materials, equipment, and services for the offices, departments, and agencies of the city;

    (b) Sell surplus, obsolete, or unusable personal property for the offices, departments, and agencies of the city;

    (c) Transfer supplies, materials, and equipment to or between the offices, departments, and agencies of the city; and

    (d) Contract for the construction, repair, or improvement of city facilities. (Ord. 479 §1 (part), 1976)

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3.12.020 Limitation on city manager's authority
. The city manager may make an acquisition, sale, transfer, or contract authorized by section 3.12.010 without council approval, open market, or bidding procedures, if the value of the property, service, or contract does not exceed fifteen thousand dollars. (See also §2.08.060(f).) (Ord. 1106 § 1, 2000; Ord. 944 §1, 1992: Ord. 849 §1, 1988: Ord. 479 §1 (part), 1976)

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3.12.030 Open market procedures
. (a) Purchases, sales, or contracts authorized by section 3.12.010, having an estimated value in excess of fifteen thousand dollars but not more than twenty-five thousand dollars, shall be made on the open market without newspaper advertisement.

    (b) Market purchases, sales, and contracts shall, whenever possible, be based on at least two competitive bids or price quotes and shall be awarded by the city manager to the lowest responsible bidder.

    (c) The city manager or authorized designee shall solicit written bids or price quotes for open market purchases or sales, and shall maintain a record of all bids or price quotes received. (Ord. 1106 § 2, 2000; Ord. 970, 1993: Ord. 944 §2, 1992: Ord. 849 §2, 1988: Ord. 633 §1, 1982: Ord. 479 §1 (part), 1976)

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3.12.040 Advertising for bids
. (a) Purchases, sales, or contracts authorized by section 3.12.010 having an estimated value of more than twenty-five thousand dollars may be made only after a notice calling for bids is printed in a newspaper of general circulation published within the city. The notice shall be published at least once, not less than 30 days prior to the date of the bid opening. The notice shall contain a general description of the property, work, or service; state where the bid forms and specifications may be obtained; and specify the place for submission of bids and the time by which they must be received. Requirements for local publication need not be followed if the item or commodity cannot be purchased locally.

    (b) The purchase or contract shall be awarded to the lowest responsible bidder or, in the case of a sale, to the highest responsible bidder. (Ord. 1106 § 3, 2000; Ord. 849 §3, 1988: Ord. 633 §2, 1982: Ord. 479 §1 (part), 1976)

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3.12.050 Processing of bids.
Notwithstanding other provisions of this chapter relating to the award after competitive bid for purchases, sales, and contracts, the city may:

    (a) Reject defective or non-responsive bids;

    (b) Waive any irregularities in any and all bids;

    (c) Reject all bids;

    (d) Negotiate with two or more of the lowest bidders, if bid prices are in excess of the money available or authorized, for a reduction in the scope, quality, or quantity of the purchase, service, or contract;

    (e) Re-advertise for bids with or without making changes in the plans or specifications. (Ord. 479 §1 (part), 1976)

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3.12.055 Pre-Bid and Pre-Award Conferences
. (a) Whenever a contract subject to this chapter involves a project which entails the provision of construction services to the City, the City Manager may cause the solicitation for bids or proposals to require that any person or entity seeking to bid on such contract (I) submit preliminary information describing the bidder's relevant background, qualifications, and experience and demonstrating the bidder's probable ability to fulfill the contract, if awarded, and (II) attend a mandatory pre-bid conference held for the purpose of clarifying and quantifying the work to be done on the project. Admission to a mandatory pre-bid conference may be conditioned upon the prospective bidder's written certification that all bid specifications and requirements have previously been reviewed in detail, that the prospective bidder has the present intention of actually submitting a bid on the project or contract in question, and that actual estimates of all essential items called for by the bid specifications have been prepared. The failure of a prospective bidder, for any reason whatsoever, to attend and fully participate, personally or through the personal presence of a representative authorized to make all disclosures, representations and certifications called for by this section, a pre-bid conference or meeting designated as mandatory under this section shall preclude such bidder from further participating in the bidding process or receiving an award of any resulting contract.

    (b) After the opening of bids on any project involving the provision of construction services to the City but before any bid has been accepted or contract awarded, the City Manager may also require the apparent low bidder to attend and participate in a further bid confirmation or pre-award conference to assure and confirm that the bidder is a responsible bidder within the meaning of section 3.12.080 of this chapter, that the bid is in fact responsive, and that the bid specifications and solicitation documents contain no uncertainties, omissions or ambiguities which might prejudice or prevent the achievement, without diminution of the project or additional cost to the City of Kodiak, of the purposes for which the expenditure of public funds has been authorized. Any bidder who fails or declines to attend and fully participate in a mandatory pre-award conference, which participation may at the City's discretion require the bidder to furnish detailed proof of bid estimates and strategies utilized in the preparation of the bid, may be deemed non-qualified or non-responsible within the meaning of section 3.12.080. At the end of a mandatory pre-award conference, a fully authorized representative of the bidder shall certify in writing and on a form acceptable to the City that, except for extraordinary circumstances beyond the control and without the fault or negligence of said bidder and except for circumstances which could not reasonably have been discovered from the bid specification and solicitation documents plus careful preparation for and active participation in the pre-bid and pre-award conferences, the bidder is willing and able to perform the said contract at the price bid without modification of or increase in either the time for completion, the schedule for accomplishing interim goals, or the cost of the project. In the event the bidder should decline to submit such certification, the bidder shall submit to the City Manager a written statement under oath stating fully each and every reason or circumstance which prevents or precludes the bidder from rendering the required certification without qualifications or reservations of any kind. The City Manager shall, in good faith, examine the representations made by an apparent low bidder who fails to submit the required certification before presenting the bid to the City Council for further action.

    (c) If the City Manager, in his or her discretion, determines that a refusal by a bidder to execute the certification described in the preceding subsection (b) is based upon valid concerns, then the City Manager shall further determine whether the uncertainties or other circumstances underlying those concerns involved significant prejudice to other bidders. If the City Manager determines that there was significant prejudice to other bidders, then he or she may prepare an amendment to the bid solicitation documents and offer all bidders who were qualified to and did submit a bid in the initial instance to respond to such revised solicitation. If the City Manager so elects, a minimum of ten days shall be allowed for responses to the amended solicitation. After the opening of bids on a revised solicitation, the City Manager may require the apparent low bidder to attend and participate in another pre-award conference and to otherwise comply with subsection (b) of this section 3.12.055.

    (d) Nothing in this Section 3.12.055 shall be interpreted as limiting either the City's authority under Section 3.12.050(d) to negotiate with two or more of the lowest bidders when bid prices are in excess of the money available or authorized or the City's authority under Section 3.12.050(e) to re-advertise for bids with or without making changes in the plans or specifications. (Ord. 1029 §1, 1996)

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3.12.060 Local bid preference
. (a) Notwithstanding section 3.12.040, the council shall direct an award of a contract for the purchase of personal property or services or for the construction, repair, or improvement of city facilities after competitive bidding to a local bidder who is also a responsible bidder if that bid does not exceed the otherwise lowest responsible bid by more than ten (10) percent or $30,000, whichever is less.

    (b) For the purposes of this section, "local bidder" shall mean a responsible bidder who had, at the time of bid award, maintained a business office or store within the borough of Kodiak Island which was open for business on a substantially full-time basis and staffed by at least one full-time employee for at least one year.

    (c) This section does not govern purchases of personal property or services authorized by section 3.12.020-.030. (Ord. 942, 1992: Ord. 744, 1985: Ord. 737, 1984: Ord. 695 §13, 1983: Ord. 578 §1, 1980: Ord. 479 §1 (part), 1976)

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3.12.070 Exceptions to bidding requirements
. The requirements of this chapter relating to solicitation of competitive bids and award to the lowest responsible bidder shall not apply to:

    (a) Contracts for professional services, or where the city determines that it is not practicable to develop sufficiently detailed contract terms or specifications for competitive sealed bidding, or that either vendor qualifications or the means and methods that a vendor will use are material to vendor selection.
        1. Contracts in this category may be awarded to a preferred provider, by open competitive proposals, by competitive proposals solicited from a limited group of providers, or by another method deemed by the City Manager to be appropriate, considering such factors as the urgency in selecting a provider, and the specific selection requirements of any state or federal agency providing project funding.
        2. Providers of professional services shall be selected solely on experience and qualifications and price shall not be a factor in the selection process.

    (b) Contracts for property or services necessitated by an emergency, if the delays required for compliance with the bidding requirements would jeopardize the public health, safety, or welfare.

    (c) Contracts for property or services where other units of government, through their formal bidding process, have established the lowest responsible bidder and where the property or service meets or exceeds the city's specifications, when the best interests of the city would be served thereby, and the same is in accordance with the city and state law.

  (d) Contracts for supplies, materials, equipment, or services for which the city manager determines in writing that there is only one source. The city manager shall negotiate with the sole source to obtain contract terms that best serve the interests of the city.

(Ord. 1264 §1, 2009; Ord. 1199a §1, 2005; Ord. 758, 1985: Ord. 479 §1 (part), 1976)

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3.12.080 Lowest responsible bidder
. In determining the lowest responsible bidder factors to be considered shall include, but not necessarily be limited to, the following criteria:

    (a) The ability, capacity, and skill of the bidder to perform the contract;

    (b) Whether the bidder can perform the contract within the time specified, without delay or interference;

    (c) The character, integrity, reputation, judgment, experience, and efficiency of the bidder;

    (d) The quality of performance of previous contracts;

    (e) The previous and existing compliance by the bidder with laws and ordinances related to the contract;

    (f) The sufficiency of the financial resources and ability of the bidder to perform the contract;

    (g) Litigation by the bidder on previous orders or contracts with the city; and

    (h) Attendance at and compliance with any requirements associated with or arising out of mandatory pre-bid or pre-award meetings or conferences. (Ord. 1029 §2, 1996: Ord. 745 §1, 1985: Ord. 479 §1 (part), 1976)

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3.12.085 Labor requirements; public improvement projects.
(a) Under any contract for the construction, repair, or alteration of public improvements funded in whole or in part by city funds, or funds which, in accordance with a federal grant, state grant, or otherwise, the city expends or administers, and to which the city is a signatory to the construction contract, the worker hours shall be performed at least fifty percent by bona fide residents of the borough of Kodiak Island. To the extent there are not sufficient borough resident workers qualified and available for work, a contractor shall be exempted from the provisions of this section to the extent of such unavailability.

    (b) For the purpose of this section, a bona fide resident is a person who maintains, and has maintained for at least thirty days, a domicile in the borough. Domicile is the true and permanent home of a person from which that person has no present intention of removing and to which that person intends to return whenever away from that home. (Ord. 746, §1, 1985)

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3.12.090 Purchase, contract, or sale valid when; prohibited when
. (a) A purchase, contract, or sale subject to the provisions of this chapter shall not be valid, enforceable, or binding upon the city unless the established requirements have been satisfied and the contract, purchase, or sale approved by the city manager or, if of greater than twenty-five thousand dollars value, by the council.

    (b) An acquisition, sale, or transfer of property or services shall not be divided or split into several acquisitions, sales, or transfers for the purpose of avoiding the requirements of this chapter relating to open market or bidding requirements. (Ord. 1106 § 4, 2000; Ord. 852, 1988: Ord. 633 §3, 1982: Ord. 479 §1 (part), 1976)

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3.12.100 Purchase of heavy equipment
. (a) Notwithstanding any other provision of this chapter, the city manager may purchase used heavy equipment for the public works department without advertising or standard competitive bidding under the terms, conditions, and procedures as set forth in this section.

    (b) If the public works department desires to purchase one or more items of used equipment, the public works director shall submit a written request to the city manager recommending that the city purchase or bid at a sale of such equipment. The request shall contain the following information:

(1) A description of each item of equipment to be purchased, including type of equipment, manufacturer's name, model number and year of manufacture, approximate price for the item of equipment when new, the approximate current price range for similar new equipment, and any available information relating to the condition, prior use, and maintenance of the equipment;

(2) The location of the equipment, the prior owner, and the name of the auctioneer or seller;

(3) Any minimum bid established by the seller, the maximum purchase price recommended, and the minimum deposit necessary to hold the equipment after bid or purchase until final payment;

(4) The estimated cost for preparation and shipping of the equipment to Kodiak;

(5) The person or persons to be designated to inspect and purchase the equipment, including any equipment broker to be used;

(6) The need of the public works department for each item of equipment to be purchased.

    (c) If the city manager concurs, a request shall be submitted to the city council together with a recommendation that the purchase be authorized. The council shall, if it approves the recommended purchase, establish a maximum price to be paid for the used equipment.

    (d) Used heavy equipment may not be purchased under this section unless:

(1) The price of each item of equipment when new was not less than eleven thousand dollars;

(2) The equipment is inspected by a city mechanic prior to submission of a bid or purchase offer and determined to be in good operating condition and repair; and

(3) Brokerage fees and commissions related to the sale will not exceed ten percent of the purchase price.

    (e) Purchases authorized pursuant to this section may be made by a city employee or by a broker retained by the city to act on its behalf at the sale. The finance director is authorized to issue a check prior to the sale made payable to the auctioneer or other person conducting the sale in an amount necessary to hold any equipment that may be purchased pending final payment of the purchase price, and deliver that check to the person authorized to make the purchase.

    (f) After the purchase of any used equipment pursuant to this section, the city manager shall prepare a summary of the transaction and submit it to council for review at a regular council meeting. (Ord. 566 §1, 1979)
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CHAPTER 3.14
PUBLIC CONSTRUCTION


For statutory provisions regarding the form of exemption from bonding required by AS 36.25.010, see AS 29.25.010(a)(10).

 


3.14.010 Bond of contractors for public buildings or works

3.14.020 Qualification in lieu of bonding

3.14.030 Rights of persons furnishing labor and materials

3.14.040 Definitions

 


3.14.010 Bond of contractors for public buildings or works
.  Except as otherwise provided in section 3.14.020, before a construction contract exceeding twenty-five thousand dollars for the construction, alteration, or repair of a public building or public work of the city is awarded to a general or specialty contractor, the contractor shall furnish to the city the following bonds which will become binding upon the award of the contract to the contractor:

(1) A payment bond with a corporate surety qualified to do business in the state for the protection of all persons who supply labor and materials in the prosecution of the work provided for in the contract. The payment bond shall be in amounts as follows:

(A) When the total amount payable by the terms of the contract is not more than one million dollars, the payment bond shall be in a sum of one half the total amount payable by the terms of the contract.

(B) When the total amount payable by the terms of the contract is more than one million dollars, and not more than five million dollars, the payment bond shall be in a sum of forty percent of the total amount payable by the terms of the contract.

(C) When the total amount payable by the terms of the contract is more than five million dollars, the payment bond shall be in a sum of two million five hundred thousand dollars.

(2) A performance bond in an amount equal to the required payment bond, with a corporate surety qualified to do business in the state.

     (Ord. 1111, §1, 2000; Ord. 698, 1983; Ord. 650 (part), 1982)

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3.14.020 Qualification in lieu of bonding
. (a) The bonds required by section 3.14.010 shall be waived for any project having a total value of less than twenty-five thousand dollars, if the contractor qualifies as provided in this section prior to the time for award of the contract and deposits with the city by cash, postal money orders, certified checks, or cashier's checks, a sum equal to five percent of the contract amount in lieu of a performance bond and a sum equal to five percent of the contract amount in lieu of a payment bond.

    (b) If the following four criteria apply a contractor is qualified for a waiver of bond requirements:

(1) The contractor has maintained a business office within the Kodiak Island Borough for a continuous period of not less than six calendar months prior to the application for qualification;

(2) A statement is submitted to the city prepared and signed by a certified public accountant or the manager or other qualified officer of a federal or state chartered bank, savings and loan association, or credit union demonstrating that the contractor has a current net worth of a stated amount not less than twice the total value of the contract or fifty thousand dollars, whichever is less, and that the liquid assets of the contractor are a stated amount of not less than twenty-five percent of the total value of the contract or six thousand, two hundred fifty dollars, whichever is less. The statement shall be dated not more than sixty days prior to application for qualification;

(3) The contractor is recommended by the owners of not less than five projects completed by the contractor or on which the contractor completed specified portions of the project under one or more contractors;

(4) The contractor submits not less than three references establishing his good credit standing in the community.

    (c) Contracts awarded without bonds shall be signed and guaranteed by the following persons, in their individual capacities, in addition to the authorized signature of the contractor:

(1) Each general partner if the contractor is a partnership;

(2) Each officer or general manager and each shareholder holding ten percent or more of the common stock if the contractor is a corporation.

    (d) Upon completion of the project, the contractor shall submit an affidavit of payment of all sums due or claimed to be due for labor or materials on the project. Final payment shall be made following receipt of this affidavit and, if no claims for labor or materials have been received by the city within ninety days after acceptance of the project, the deposit made in lieu of a labor and material payment bond shall be released to the contractor.

    (e) The deposit made in lieu of a performance bond shall be retained for a period of one year unless the city manager determines to release the deposit after a shorter time upon the recommendation of the city engineer. The recommendation of the city engineer shall be based upon consideration of the nature and complexity of the project. (Ord. 1111, §2, 2000; Ord. 650 (part), 1982)

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3.14.030 Rights of persons furnishing labor and materials
. A person who furnishes labor or materials in the prosecution of work provided for in a contract of which a payment bond is furnished under section 3.14.010 and who is not paid in full before the expiration of ninety days after the last day on which the labor is performed or material is furnished shall have recourse under AS 36.25.020. (Ord. 650 (part), 1982)

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3.14.040 Definitions
. As used in this chapter, the following definitions shall apply:

    (a) "Local office" means a principal place of business used for the conduct of general firm

activities and shall not include a construction shack or other temporary quarters established and utilized mainly for the supervision or management of one or more ongoing projects.

    (b) "Materials" means all supplies, products, raw materials and equipment utilized in the construction project. (Ord. 650 (part), 1982)
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CHAPTER 3.16
INVESTMENT AND COLLATERALIZATION OF PUBLIC FUNDS

 


 3.16.010 Generally

3.16.020 Treasury management

3.16.030 Permissible investments

3.16.040 Insurance

3.16.050 Collateral

3.16.060 Ownership; encumbrance of collateral

3.16.070 Substitution of collateral

3.16.080 Collateral safekeeping

3.16.090 Investments per financial institution

3.16.100 Bid provisions

3.16.110 Investment records

 


3.16.010 Generally
. The purpose of this investment and collateralization policy is to provide guidelines for investments with an investment period of at least thirty days but not more than two years. The policy guidelines do not apply to investments of less than thirty days which may be invested at the discretion of the finance director. (Ord. 829 §1 (part), 1988)

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3.16.020 Treasury management
. The finance director shall be responsible for treasury management, including investment and reinvestment of all city funds. (Ord. 829 §1 (part), 1988)

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3.16.030 Permissible Investments
. The finance director shall invest public funds only in the following types of security investments:

    (a) Bonds, notes, or other obligations, direct or otherwise, of the United States;

    (b) Bonds and other evidence of indebtedness of the state of Alaska or its political subdivisions or other states of the United States; and

    (c) Savings accounts, certificates of deposit, bankers acceptances, repurchase agreements, and such other security instruments as may be authorized by law.

    (d) The Alaska Municipal League Investment Pool, Inc., made in accordance with the terms of that pool's Common Investment Agreement. (Ord. 956 §2, 1993: Ord. 829 §1 (part), 1988)

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3.16.040 Insurance
. The finance director shall not deposit funds in any depository that is not a member of the Federal Deposit Insurance Corporation (FDIC), the Federal Savings and Loan Insurance Corporation (FSLIC), or similar insurance agencies of the banking institute. (Ord. 829 §1 (part), 1988)

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3.16.050 Collateral
. The following collateral will be valued at current market value on the date of pledge in a manner consistent with that used by the institution in preparing its federal and/or state bank reports:

    (a) Obligations of, or obligations insured or guaranteed by, the United States or an agency or instrumentality of the United States;

    (b) Obligations of the state of Alaska, an agency or instrumentality of the state of Alaska or its political subdivisions which are rated at least Baa, or its equivalent, by a nationally recognized rating service; and

    (c) Obligations of states and municipalities of the United States outside of Alaska rated at least A, or its equivalent, by a nationally recognized rating service.

    (d) Direct purchase of securities, identified in subsections (a) and (b) of this section, do not require pledged collateral.

    (e) Investments in Alaska Municipal League Investment Pool, Inc. are collateralized only by the assets of the Pool. (Ord. 956 §3, 1993: Ord. 829 §1 (part), 1988)

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3.16.060 Ownership; Encumbrance of Collateral
. Pledged collateral must be owned by the bank or other financial institution and the entity shall keep the pledged collateral free and clear of liens, security interests, or encumbrances and shall not release, assign, sell, transfer, pledge, or grant a security interest in, encumber, substitute or otherwise dispose of or abandon any part or all of the pledged collateral without the written authorization of the finance director. (Ord. 829 §1 (part), 1988)

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3.16.070 Substitution of Collateral
. The city reserves the right to review, from time to time, any and all collateral proposed or submitted by a bank or other financial institution, and if the city determines that the public funds are not adequately secured by the pledged collateral, the city may demand additional collateral or a substitution of collateral. (Ord. 829 §1 (part), 1988)

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3.16.080 Collateral Safekeeping
. (a) All collateral pledged by a bank or other financial institution shall be deposited and kept for safekeeping with an independent third-party bank or other financial institution acceptable to the city. The receipt of the collateral by the third-party bank shall be further evidenced by a depository receipt received by the city within a reasonable time period following award of bid or notification or demand for substitute collateral. The bank or other financial institution shall be obligated for any and all expenses incurred with the safekeeping requirement.

    (b) Direct purchase of securities identified in subsections 3.16.030 (a) and (b) shall be kept for safekeeping in a bank or financial institution designated by the city. Charges for safekeeping services shall be borne by city. (Ord. 829 §1 (part), 1988)

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3.16.090 Investments per financial institution
. No more than one-third of the funds available for investment shall be invested with a single bank or financial institution at the time funds are being invested by the city. The city shall not make an investment, at any time, in an amount greater than five percent of the total investments at any one bank or financial institution. (Ord. 829 §1 (part), 1988)

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3.16.100 Bid Provisions
. (a) The finance director shall solicit bids from a minimum of three banks or financial institutions for each investment.

    (b) Notices to bid shall be delivered in person, by mail, or by other electronic means including telephone, to those eligible banks and financial institutions as the city may elect.

    (c) Notices to bid shall set forth:

(1) The principal amount, the maturity date, the investment period, and the cash settlement date;

(2) The date, time, and place of bid opening; and

(3) Such other information as the city, from time to time, may deem necessary or appropriate.

The city reserves the right to cancel any or all notices to bid, in whole or in part, for any reason at any time, and the cancellation of a notice to bid will be binding on the banks and financial institutions submitting bids.

    (d) Bids may be delivered to the city in person, by mail, or by other electronic means including telephone, as authorized by the city. No bid, or amendment to a bid, will be accepted after the time set forth in the notice. In the event no bids are received, the finance director may negotiate the investment with any eligible bank or financial institution.

    (e) Bids shall be submitted separately for each investment identified by principal amount and maturity date. Interest rates shall be a rate per annum calculated on a 360-day year. Bids for portions of investments may be accepted by the city at the discretion of the finance director.

    (f) If identical bids are received from two or more banks or financial institutions, the investment shall be divided equally among such bidders if the divided investment amount would not result in loss of interest. If the divided deposit would result in loss of interest the finance director shall, at the finance director's discretion, award by lot or by auction to the highest bidder of those bidders submitting identical bids.

    (g) The finance director shall award the bid made on each investment to the bank or financial institution offering the highest return to the city (giving consideration to the security of the investment and the margin of risk).

    (h) The city of Kodiak reserves the right to accept or reject any and all bids, in whole or in part, when deemed to be in the best interests of the city.

    (i) Investments in the Alaska Municipal League Investment Pool, Inc. and new issues of permissible investments as set forth in section 3.16.030 are exempt from the competitive bidding requirements as set forth in this section. (Ord. 956 §4, 1993: Ord. 829 §1 (part), 1988)

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3.16.110 Investment Records
. Investment records shall be maintained as provided for by the standards of generally accepted accounting practices. In addition, the finance director shall obtain and keep a record of all investment bids for three years following the date of the bid opening. (Ord. 829 §1 (part), 1988)
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CHAPTER 3.20  
PERSONAL PROPERTY TAX


Repeal of Chapter 3.20, Ordinance Number 966, effective July 10, 1993, repealed former Chapter 3.20. Former Chapter 3.20 derived from Ord. 906, 1991.




CHAPTER 3.24  
BUDGET APPROPRIATIONS

 

 


3.24.010 Line item transfers

3.24.020 Encumbrances and incurred obligations

 


3.24.010 Line item transfers
. Upon the written request of a department head, the finance director and city manager may transfer budgetary appropriations between or among budget line items within any department, program, or project, so long as the transfer does not increase the total appropriation for the department, program, or project. However, no transfer shall be made for the purpose of adding permanent personnel or granting unscheduled salary increases, unless approved by the city council. Likewise, anticipated revenues within a fund may be adjusted so long as there is no increase or decrease of the total revenues of that fund. (Ord. 1009, 1995)

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3.24.020 Encumbrances and incurred obligations
. Upon council's acceptance of the annual financial report, necessary budgetary/accounting entries shall be recorded in the succeeding fiscal year for all outstanding encumbrances and incurred obligations, as disclosed in the prior fiscal year's annual financial report. Such entries shall be in accordance with generally accepted budgeting and accounting principles that increase or decrease appropriations to budget line items in the respective departments, programs, projects, and funds. (Ord. 1009, 1995)
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CHAPTER 3.28 
KODIAK CITY ENHANCEMENT FUND

 


3.28.010 Generally

3.28.020 Deposits

3.28.030 Investment

3.28.040 Inflation-proofing

3.28.050 Appropriations

 


3.28.010 Generally
. A city enhancement fund is hereby created from appropriations to be made by the council by ordinance. These funds shall be held perpetually in trust for the benefit of the present and future generations of Kodiak residents. The city enhancement fund shall be maintained separate and apart from all other funds and accounts of the city. (Ord.1044 §1 (part))

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3.28.020 Deposits.
(a) Fifty percent of the prior fiscal year's general fund surplus shall be deposited in the city enhancement fund by January 1 of the succeeding year. For purposes of this paragraph, a general fund surplus is defined as the excess of revenues and other financing sources over expenditures and other financing uses, plus any residual equity transfers in less any residual equity transfers out, as identified in the audited General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance.

    (b) Fifty percent of the gross proceeds from the sale or lease of municipal real property will be deposited in the city enhancement fund; provided, however, that proceeds allocated to enterprise funds and proceeds from the lease of property with an annual income of less than $10,000 shall be exempt from these deposit requirements.

    (c) Any actual earnings from the fund shall be deposited in the city enhancement fund until the reconciliation of the inflation-proofing at the end of each fiscal year.

    (d) The council may, by ordinance, make additional appropriations to the fund at any time.

(Ord. 1060 §4, 1998; Ord.1044 §1 (part))

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3.28.030 Investment
. Funds placed or deposited in the city enhancement fund are fund principal which shall be invested only in the income-producing investments stipulated in section 3.16.030 of this title. Principal may be invested for a period of not more than five years and shall follow the policy guidelines set forth in chapter 3.16.(Ord.1044 §1 (part))

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3.28.040 Inflation-proofing
. (a) Each fiscal year, the funds shall be inflation proofed from the earnings of the city enhancement fund as calculated by multiplying the city enhancement fund balance at the beginning of each fiscal year by an inflation factor. The inflation factor will be determined by calculating the average percentage increase in the U.S. Department of Commerce Consumer Price Index for U.S. city average, all items indices, January index, for the five year period ending with the current fiscal year.

    (b) Earnings in excess of the inflation-proofing amount shall be deposited in the general fund by the close of each fiscal year. (Ord.1044 §1 (part))

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3.28.050 Appropriations
. No funds from the principal of the city enhancement fund shall be appropriated except by an ordinance approved by at least five members of the council. This restriction shall in no way affect the obligations of the city under any present or future bond covenants.(Ord.1044 §1 (part))

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