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Record of Proceedings

Valdez City Council Work Session on Bed Tax Fund Allocation, January 22, 2026

Meeting PortalThursday, January 22, 2026
BodyValdez, Alaska
SessionMeeting Portal
DateThursday, January 22, 2026
StatusFILED
Video Record

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Transcript — Verbatim
0:49

And they don't have enough for a quorum.

0:51

Um and uh with the recent resignation of almost half of their board, um we are at a standstill with uh where that money's gonna go.

1:05

And so um just to let you know, in the last couple of days, yeah, actually the last couple of weeks we've been working uh possible solutions for this, and uh I've uh got together with a group of uh business owners in town that are part of the VC that were members of the original um group there, not board members, but just members, and uh so what we would like to do is uh form a uh task force on rebuilding and restructure of the VCB, and then from that point on, we would like to uh um see how that's gonna work out, their recommendations coming to us.

1:48

Um I and then from that uh point on we uh would like to uh try to get some discussion with VBC, and I know that uh our city manager and uh his department and staff have been working with trying to figure out what bills are owed by the V C B, what ones we may be uh willing to take on, which ones we may not be willing to take on, and but we can't seem to uh right at this point get anybody that uh kind of gives us the book so we can do a deep dive and find out where we're at.

2:22

We're still working that issue.

2:24

Um, but in the meantime, I'd like to commission a group of uh task force that will go out and uh look at the structure and see how we can form.

2:32

We do have some ideas, but that would all be premature if I speak about them right now until the board kind of comes back with their or the task force comes back with their recommendations.

2:42

Um and then in the meantime, we may be spending a little bit of money in legal to make sure that uh what we do and set up is correct.

2:52

And then we may need also to uh once we kind of dive into where um some of the bills are and what they are, which ones we are willing to pay for as a council and as a city, and which ones we don't, um we may be expending a little bit of money doing that also.

3:09

Um so with that I kind of open it up to questions.

3:15

Not so much a question as I am um I do not want uh to support the 505 to BCDB due to the concerns, obviously, of uh uh them not having a quorum.

3:30

Um and uh no leadership at this time.

3:33

So I think that um putting that money on hold and um having a task force is the best way forward that we can um support the city and the businesses alike for this upcoming season.

3:53

So uh just uh like make sure I'm up to speed.

3:56

So um the VCBB no longer has enough board membership for quorum, and their president resigned as well, right?

4:05

And and the director, okay.

4:06

So the all of that.

4:08

So the idea for the task force would be to have some other entity potentially, whatever comes out of that task force, um, serve some of the same functions or provide some of the same services that the VCBB used to.

4:24

Not to try to rebu revive the organization, but but uh a new organization from whole cloth.

4:30

Yes.

4:31

Okay.

4:36

Yeah, I mean I think that that makes sense.

4:38

Um I guess with that uh task force, and I think you said there's some um some local business owners from the membership of VCB that would be involved, and I think as long as there's you know a good amount of local business owners that are really invested in stakeholders and making this um yeah, to move forward and come back with some recommendations that um they want to see I think that would be a good path forward.

5:07

Yeah, and I guess like your idea.

5:09

I mean, I'm I'm open to the 50, you know, spending the 505k once some recommend some recommendations are in front of us.

5:17

So it just kind of remains to be seen, whatever those things are.

5:21

Um I guess you know, the outstanding debt and legal expenses will kind of see as those come.

5:27

Um what's what's your kind of thought in terms of um timeline for getting some of those recommendations?

5:35

Because I know you know, I'm sure some of our businesses want to have a visitor center open and with cruise ship timing and stuff like that.

5:43

Like what's kind of the timeline you're thinking for so we have kind of sketched out just barely a timeline.

5:49

You know, we'll we'll meet with the actual uh task force that hasn't been created yet, but we'll meet with them.

5:55

I'm looking at uh I think was May.

5:59

Um the I would say a prudent timeline would be by the end of April have something firm fixed and ready to go.

6:15

There's there's obviously uh uh I've ref for a long time, and they say hustle, don't hurry.

6:24

And so I I think there's value in doing things swiftly, but doing them right the first time.

6:29

And so uh I don't want to say that there's a rush to get something done because I I think making sure that the right solution is what the outcome I think is important by the same token.

6:41

There are there are businesses who their season is underway andor gonna hit full stride uh really soon.

6:50

And so I think it's important to have a little sense of urgency to to work towards getting some done.

6:56

So timeline wise, I think if mid to late April there's uh a good definition and kind of a sunset time frame for the task force, I think would be appropriate.

7:06

Yeah, and we'll narrow those down uh relatively quickly before we bring them to council on the third.

7:13

Is the next meeting, correct?

7:15

Yeah, so we we've drafted a resolution for for y'all to consider um again creating the task force uh kind of with their objectives stated, timeline stated.

7:26

Um I don't know that it'll specifically name membership of the task force, but uh we'll we'll determine a method for making those assignments uh within the resolution.

7:37

Although one name was already suggested, and and I really like it.

7:41

So I I would just from the administration's perspective, uh, as a task force is concerned.

7:48

Uh I certainly it's not our role to be the lead on tourism and and visitorship and destination marketing.

7:58

That's not really in our lane.

8:00

Uh having said that we I would like us to have a seat at the table just for if there are things that we can provide guidance on, but also to kind of watch out for any hurdles or roadblocks that might might arise.

8:16

Well, I think you and with that being said, I know that uh you know we're gonna probably use Sherry's expertise in drafting up whatever comes outcomes of the uh board, you know, as far as what their guidelines and principles will be, you know, that'll be uh you know, some city help on that.

8:33

Um in the meantime, uh talk to Nate also, and uh if there's some things that we have to act on, you know, uh while we're waiting for the commission to get or the uh task force to get um recommendations to us.

8:47

Um Nate said that they have some small capacity to be able to help and uh kind of work some of those uh uh things out that may arise that you know where a business may want something that uh you know for winter tourism or something that he may have the capacity to help out in some some small aspect until we get on our feet.

9:10

So we're gonna be relying a little bit on that.

9:14

Okay, so we'll see the deliverables of the task force in that draft that resolution that comes forward on the third.

9:22

Yeah.

9:25

Um I guess another question too, just um I think somewhere here tonight just with the VCB staff.

9:32

What's kind of going on like is that just outside of our that's outside of our for you right now?

9:38

Okay.

9:40

So with that, I'll go into least concern about all that's all gone, but fortunately it's out of our hands.

9:46

And then I guess to what you were saying, city manager, um the structure would just be something potentially akin to like uh our relationship with the museum, potentially, something like that, or yeah, I I think there's a number of options on the table.

10:00

tonight just with the V C B staff what's kind of going on like is that just outside of our that's outside of our view right now okay just with that I'll go into I just at least concerned about all that that's all gone but fortunately it's out of our hands and then I guess to what you were saying city manager um the structure would just be something potentially akin to like uh our relationship with the museum potentially something like that or yeah I I think there's a number of options on the table um everything ranging from re reconstituting or rebuilding what's what's already there you could you know a structure like the museum um you know city department um separate private organization uh a grant program I I think there's any myriad of options um I I certainly don't want to take anything off the table or necessarily have a a preference uh but I do think in light of the current circumstances I think whatever the recommendation is I I think it needs to have a a strong backing from the from the the industry I think that's critical uh and I think if if the city council is a primary funder there need to be some guardrails or some authority from the council to have some oversight I think those are two key guardrails with whatever's established yeah I essentially agree with what you guys are saying there sounds like we're gonna earmark those 505 funds they're on hold there are some outstanding bills that we'll work with work through um this task force will be established and part of their role is uh uh very clearly defining the scope of work for the city as well as the mission for this new organization or group if is that correct yeah it not for necessarily the city but for the business of the businesses of Valdez the expectations yes what our needs are it'll be clearly defined so that we so that all parties involved have a clear understanding of what their role is and their accountability very good thank you okay is uh any other questions from the group okay did you get everything you needed city manager uh yeah so the the money that was appropriated will stay its appropriated location uh we'll get you the draft for the resolution to establish a task force we'll they'll generate a final report that says this is our recommendation to successfully promote and support tourism and visitorship to Valdez and we'll make it happen.

Discussion Breakdown — Share of Meeting
Tourism Management█████████████████████████████████████████████80%
Pending Litigation█████9%
Procedural█████8%
Public Engagement██3%
Summary of Proceedings

Valdez City Council Work Session on Bed Tax Fund Allocation and Tourism Promotion

The Valdez City Council met in a work session on Thursday, January 22, 2026, at 6:00 PM in Council Chambers to discuss the appropriation of Public Accommodation Tax (bed tax) funds and the future of tourism promotion in Valdez. The central issue was the Valdez Convention and Visitors Bureau (VCB), which has lost nearly half its board, including its president and director, and no longer has a quorum, leaving $505,000 in allocated bed tax funds in limbo.

Discussion Items

  • Council and city staff discussed the collapse of the VCB board and the need to find a path forward for tourism promotion and visitor services.
  • A council member stated they did not support allocating the $505,000 to the VCB due to the lack of quorum and leadership, and favored forming a task force to hold the funds and restructure the organization.
  • Another council member expressed openness to spending the $505,000 once recommendations from a task force are presented, while noting outstanding debt and legal expenses would need to be reviewed.
  • The city manager reported that staff have been working to identify which VCB bills the city might be willing to pay, but have not received full financial records for a "deep dive."
  • The council discussed creating a task force of local business owners, former VCB members, and other stakeholders to recommend a new structure for tourism promotion. Options ranged from rebuilding the VCB, creating a city department, modeling a relationship like the city's with the museum, or establishing a private organization or grant program.
  • The city manager emphasized that the administration should not lead tourism marketing, but should have a seat at the table to provide guidance and identify hurdles. He stated that any new entity must have strong support from the tourism industry and, if city-funded, must have council oversight and guardrails.
  • A timeline of mid-to-late April was suggested for the task force to deliver firm recommendations, given that the cruise ship season will soon be underway.
  • Staff planned to bring a draft resolution to the next council meeting (February 3) to formally establish the task force, define its objectives and timeline, and set a method for assigning members.

Key Outcomes

  • The council agreed to hold the $505,000 in bed tax funds in their current appropriation for now, rather than dispersing them to the VCB.
  • A task force will be formed to develop recommendations on the future structure of tourism promotion in Valdez; a draft resolution will be presented at the February 3 council meeting.
  • The city will work with the task force and continue reviewing VCB's outstanding bills and legal obligations.
  • A press release was planned for the following day to affirm the city's support for tourism while indicating that the current VCB structure is not what the city supports.

Meeting Transcript

And they don't have enough for a quorum. Um and uh with the recent resignation of almost half of their board, um we are at a standstill with uh where that money's gonna go. And so um just to let you know, in the last couple of days, yeah, actually the last couple of weeks we've been working uh possible solutions for this, and uh I've uh got together with a group of uh business owners in town that are part of the VC that were members of the original um group there, not board members, but just members, and uh so what we would like to do is uh form a uh task force on rebuilding and restructure of the VCB, and then from that point on, we would like to uh um see how that's gonna work out, their recommendations coming to us. Um I and then from that uh point on we uh would like to uh try to get some discussion with VBC, and I know that uh our city manager and uh his department and staff have been working with trying to figure out what bills are owed by the V C B, what ones we may be uh willing to take on, which ones we may not be willing to take on, and but we can't seem to uh right at this point get anybody that uh kind of gives us the book so we can do a deep dive and find out where we're at. We're still working that issue. Um, but in the meantime, I'd like to commission a group of uh task force that will go out and uh look at the structure and see how we can form. We do have some ideas, but that would all be premature if I speak about them right now until the board kind of comes back with their or the task force comes back with their recommendations. Um and then in the meantime, we may be spending a little bit of money in legal to make sure that uh what we do and set up is correct. And then we may need also to uh once we kind of dive into where um some of the bills are and what they are, which ones we are willing to pay for as a council and as a city, and which ones we don't, um we may be expending a little bit of money doing that also. Um so with that I kind of open it up to questions. Not so much a question as I am um I do not want uh to support the 505 to BCDB due to the concerns, obviously, of uh uh them not having a quorum. Um and uh no leadership at this time. So I think that um putting that money on hold and um having a task force is the best way forward that we can um support the city and the businesses alike for this upcoming season. So uh just uh like make sure I'm up to speed. So um the VCBB no longer has enough board membership for quorum, and their president resigned as well, right? And and the director, okay. So the all of that. So the idea for the task force would be to have some other entity potentially, whatever comes out of that task force, um, serve some of the same functions or provide some of the same services that the VCBB used to. Not to try to rebu revive the organization, but but uh a new organization from whole cloth. Yes. Okay. Yeah, I mean I think that that makes sense. Um I guess with that uh task force, and I think you said there's some um some local business owners from the membership of VCB that would be involved, and I think as long as there's you know a good amount of local business owners that are really invested in stakeholders and making this um yeah, to move forward and come back with some recommendations that um they want to see I think that would be a good path forward. Yeah, and I guess like your idea. I mean, I'm I'm open to the 50, you know, spending the 505k once some recommend some recommendations are in front of us. So it just kind of remains to be seen, whatever those things are. Um I guess you know, the outstanding debt and legal expenses will kind of see as those come. Um what's what's your kind of thought in terms of um timeline for getting some of those recommendations? Because I know you know, I'm sure some of our businesses want to have a visitor center open and with cruise ship timing and stuff like that. Like what's kind of the timeline you're thinking for so we have kind of sketched out just barely a timeline. You know, we'll we'll meet with the actual uh task force that hasn't been created yet, but we'll meet with them. I'm looking at uh I think was May. Um the I would say a prudent timeline would be by the end of April have something firm fixed and ready to go. There's there's obviously uh uh I've ref for a long time, and they say hustle, don't hurry. And so I I think there's value in doing things swiftly, but doing them right the first time. And so uh I don't want to say that there's a rush to get something done because I I think making sure that the right solution is what the outcome I think is important by the same token. There are there are businesses who their season is underway andor gonna hit full stride uh really soon. And so I think it's important to have a little sense of urgency to to work towards getting some done. So timeline wise, I think if mid to late April there's uh a good definition and kind of a sunset time frame for the task force, I think would be appropriate. Yeah, and we'll narrow those down uh relatively quickly before we bring them to council on the third. Is the next meeting, correct? Yeah, so we we've drafted a resolution for for y'all to consider um again creating the task force uh kind of with their objectives stated, timeline stated. Um I don't know that it'll specifically name membership of the task force, but uh we'll we'll determine a method for making those assignments uh within the resolution. Although one name was already suggested, and and I really like it. So I I would just from the administration's perspective, uh, as a task force is concerned. Uh I certainly it's not our role to be the lead on tourism and and visitorship and destination marketing. That's not really in our lane. Uh having said that we I would like us to have a seat at the table just for if there are things that we can provide guidance on, but also to kind of watch out for any hurdles or roadblocks that might might arise. Well, I think you and with that being said, I know that uh you know we're gonna probably use Sherry's expertise in drafting up whatever comes outcomes of the uh board, you know, as far as what their guidelines and principles will be, you know, that'll be uh you know, some city help on that. Um in the meantime, uh talk to Nate also, and uh if there's some things that we have to act on, you know, uh while we're waiting for the commission to get or the uh task force to get um recommendations to us.

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