09/30/1992 Meeting - Laserfiche WebLink

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e in vending machines were included in the definition of a restaurant. Ms. Bascom questioned why those meals would be exempted. The council agreed to remove (c) from the list of exemptions. The council agreed to remove (d), which exempted meals sold by nonprofits to its members, from the list of exemptions. The council agreed to retain (e), meals sold by public and private elementary or secondary schools, on the list of exemptions. The council agreed to delete (f), meals as part of restaurant employee compensation, from the list of exemptions. The council deleted (g), meals for government officials on official business, from the list of exemptions. Mr. Miller expressed concern over the ability of the City to compete with other communities for convention business if the municipality taxed meals served in conjunction with conventions. He asked if other municipalities with a restaurant tax exempted convention meals. Mr. Klein did not recall any examples. Mr. Rutan said Mr. Miller's concern was valid, but suggested that inclusion of such meals in the tax was difficult to avoid. Mr. Boles moved, seconded by Mr. Nicholson, to include (a), (b), (e), and (f) on the list of exemptions. The motion passed, 6:1; Ms. Bascom voting no. e Responding to a concern raised by Mr. Rutan regarding the need for the most clear proposal possible, Mr. Klein said that staff would return to the council with the draft charter amendment and ordinance for further review and revi- sion. Mr. Boles left the meeting. Ms. Ehrman proposed that definition (f) should be nonalcoholic beverages rather than soft drinks. Due to a lack of consensus, the council agreed to revisit the suggestion to expand the definition when more councilors were present. Mr. Boles returned to the meeting. The council briefly discussed policy issues related to the costs of collecting the tax for business. Mr. Rutan proposed that for up-front costs, the council allocate a fixed amount of money per business meeting the definition to address the capital costs of collecting the tax. That money would be paid to the establishments collecting the tax from receipts over the first year. Ms. Ehrman left the meeting at 1:12 p.m. e MINUTES--City Council Work Session September 30, 1992 Page 7 11:30 a.m.