Spanish, please note that the live captionings and translations are AI generated and may contain errors.

Members, if you can please unmute your microphones for a roll call.

Member Colville.

Here.

Member Milson?

Here.

And Member Bouriac.

Here.

Thank you.

We have a quorum.

We are going to take things a little bit out of order today.

We're going to go ahead and take the discussion item first.

Discussion item two is the selection of chair and vice chair for calendar year 2026.

We can either take these in separate motions.

We will select the chair, take that motion, and then vice chair and take that motion, or we can take them together.

But we may now nominate the selections of chair and vice chair.

I second.

And we do not have any public speakers for this item.

So we have a selection of Colville as chair and Ruyak for vice chair.

And we have a that's moved by Colville, second by Millstein.

All those in favor, please say aye.

Aye.

Any opposed or abstain?

Thank you.

That passes.

We will now move to our public hearing item, the utility users tax assessment for Direct TV LLC.

And I would like to open the public hearing at this time.

There's seven and a half percent.

Communication services is seven percent.

Prepaid wireless is at six and a half percent.

So we are requesting approval of the utility users tax assessment.

Um the assessment that staff is requesting the board confirmed today.

Um is to Direct TV.

It came about through a compliance review of Direct TV's financials.

Um we employ NUMO, who is all formerly known as Avenue Insights and Analytics.

Um they also operate as MUNI services LLC.

Um there are auditing consultant partner.

Um performs the audit engagement data gathering and technical analysis for the city.

Sorry.

For this direct TV audit, it resulted in an assessment to Direct TV for the amount of $5,75.

3,833 was principal, 575 penalties, 1,297 of the amount due is interest.

So the audit was conducted in accordance with the city's UT ordinance and industry standards.

From there during the course of the audit, a tax matrix evaluation was done to ensure that all applicable taxes, uh all applicable taxable charges were deemed taxable by the service supplier.

And they perform a GIS evaluation for customers build and zip codes bordering the city's jurisdiction in the border jurisdictions of the city that abut other other neighboring cities to ensure that billing was done accurately.

So the audit consultant then recalculated the tax uh based on direct TV's billing files and data, and they determined slight variances in each month that they selected at random for sample that resulted in an overall underpayment of the tax.

The overall underpayment of UUT was converted into an error rate, uh, which was then applied to all periods under examination of the audit, three years worth 36 periods, which uh is how the end amount due, the principal amount due is calculated.

So the city code provides that uh there are penalties and interest for tax deficiencies.

There's a one-time penalty of 15% that's applied to all underreported and underpaid UUT.

This was done and included in the assessment.

Uh City Code also requires interest of 1% per month be applied to any and all underreported and unpaid UUT, which was also done and included in the tax assessment.

City issued the tax assessment on July 23rd, 2026 to Direct TV.

And as an update um to the staff report, direct TV has since paid the tax assessment.

The city processed the payment on August 18th of 2028, uh 2026.

Um they did not contest any amounts due and agreed and paid it in full.

And I'll open it up to questions or discussion.

I will second that motion.

I just I just have some questions for you, Brian, because I don't understand the pro the purpose for this board.

So if you can give me some education on what our purpose is.

If people I mean, is it did you send the assessment to direct TV and needed us to confirm that it's okay and they paid it in the interim, or what what is our role in this whole process?

Yeah, so uh the city code it's code chapter 3.32.140.