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HomeMy WebLinkAbout08-25-20 City Commission Packet Materials - C8. Ord 2040 Final Adoption Creating BID for 2020-2030Page 1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Kristin Donald, Finance Director Karen Stambaugh, Assistant City Attorney SUBJECT: Final Adoption of Ordinance 2040 Creating the Downtown Business Improvement District for 2020-2030 and deleting references to the Bozeman Tourism Improvement District MEETING DATE: August 25, 2020 AGENDA ITEM TYPE: Consent RECOMMENDATION: Staff recommends the Commission finally adopt Ordinance 2040 amending the Bozeman Municipal Code to implement the Downtown Business Improvement District for 2020-2030 (“District”) and delete references to the Bozeman Tourism Improvement District. BACKGROUND: On August 11, 2020, the City Commission provisionally adopted Ordinance 2040 creating the District. Ordinance 2040 also amends the Bozeman Municipal Code (“BMC”) to remove references to the Bozeman Tourism Improvement Board, which expired in 2019. Pursuant to law, you must finally adopt this ordinance before it can become effective. If finally adopted, Ordinance 2040 will become effective 30 days after final adoption. Other than appointing members to the Board of Trustees for the DBID, this is the last step in the process to create the District. The adoption of an ordinance for the creation of a business improvement district is required by state law. Sect. 7-12-1121(1), MCA. In addition, the codification of the powers and duties of the Board of Trustees and of specific provision controlling the operations of the District benefits property owners and city administrators by having the operating procedures for the District clearly specified in the municipal code. Ordinance 2040 contains two primary components related to the DBID: (i) creation of the District’s Board of Trustees anew for the 2020-2030 life of the District, and enumeration of the powers and of the Board in Title 2 of the BMC; and (ii) specific provisions related to the administration of the District including establishment of boundaries and the method of levying the assessments. Each of these components was discussed in the staff memorandum for provisional adoption of Ordinance 2040 on August 11, 2020. 121 Page 2 UNRESOLVED ISSUES: Appointment of the Board of Trustees will occur after final adoption of this Ordinance. There are no other identified unresolved issues. ALTERNATIVES: None identified. FISCAL EFFECTS: As was described in the staff memos for Resolution 5141 and provisional adoption of Ordinance 2040, the fiscal effects to the City of Bozeman are nominal. The effects include staff time in the Finance Department administering the finances of the District and performing tasks associated with including the assessments on the yearly City assessments mailed out to each property owner. Each summer, prior to final approval of the overall budget, the DBID is required to present a work plan and district budget to the City Commission for approval. The Commission will, based on the approved work plan and budget, levy an assessment against each property within the District to raise the approved budgeted amount. The total assessments for the District for FY2020 totaled $126,000 and the Resolution of Intent called for a limit on the total assessments for the District, if created, for FY2021 to not exceed $175,000. This amount represents the entire budget for the District. The Resolution also caps the total assessments during the life of the District at $0.03 per dollar of taxable value. Attachment: Ordinance 2040 for final adoption Report compiled on: August 13, 2020 122 Page 1 of 13 ORDINANCE NO. 2040 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING CHAPTERS 2.05 AND 2.06 OF THE BOZEMAN MUNICIPAL CODE TO CREATE THE DOWNTOWN BUSINESS IMPROVEMENT DISTRICT FOR 2020-2030 AND DELETE REFERENCES TO THE BOZEMAN TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, on August 11, 2020, the City Commission of the City of Bozeman adopted Resolution 5141, creating the Bozeman Downtown Business Improvement District; and WHEREAS, pursuant to Sect. 7-12-1121(1), MCA, the City Commission, in addition to a resolution as describe above, must adopt an ordinance to implement the Bozeman Downtown Business Improvement District; and WHEREAS, the recitals and findings made during adoption of Resolution 5141, including those made in the adoption of Resolution 5140, a Resolution of Intent to Create the Bozeman Downtown Business Improvement District for 2020-2030, are hereby incorporated as legislative findings for the adoption of this Ordinance. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA: Section 1 That Chapter 2, Article 5, Bozeman Municipal Code, shall be amended as follows and any sections within not amended herein shall remain in effect: 123 Page 2 of 13 DIVISION 11. – BUSINESS IMPROVEMENT DISTRICTS BOARDS OF TRUSTEES Sec. 2.05.1950. – Purpose and intent. The purpose and intent of this division is to provide for boards of trustees for the several business improvement districts within the City of Bozeman created pursuant to title 7, chapter 12, part 11, Montana Code Annotated (MCA 7-12-1101 et seq.). The boards of trustees for each business improvement district shall have the powers enumerated herein with respect to the program for each business improvement district as described in article 6, division 8 of this chapter. Each board of trustees is a public body and shall comply with all laws of the state regarding notice and opportunity to be heard, open meetings, public participation, and maintenance of public records. 2.05.1960. - Bozeman Tourism Business Improvement District BoardReserved. A. Creation; powers and duties. The city commission creates the Bozeman Tourism Business Improvement District (BTBID) board of trustees and authorizes the BTBID board of trustees to exercise any of the following business improvement district powers, in conjunction with administration of the BTBID created pursuant to article 6, division 8 of this chapter: 1. Sue and be sued; 2. Enter into contracts to carry out the function of the BTBID; 3. Hire and terminate personnel needed for its purposes; 4. Provide adequate liability insurance for the affairs of the BTBID; 5. Promote private investment and business expansion in the BTBID; 6. Provide for the management and administration of the affairs of the BTBID; 7. Promote business activity by advertising, decorating, marketing, and promoting and managing events and other actions designed for the general promotion of business activities in the BTBID; 8. Perform such other functions as are necessary to carry out the purposes of this division and to further the objectives of the BTBID; 9. Adopt bylaws, subject to the approval of the city commission, for the operation of the board and develop procedures for the collection and maintenance of BTBID records and the protection of district members' trade secrets to the extent allowable by state law; and 10. Authorize the acquisition and disposal of real property upon the consent of the city commission. 124 Page 3 of 13 B. Members; appointments and terms. 1. All appointments to the BTBID shall be made by the city commission. 2. Upon creation, there shall be seven members of the board of trustees and there shall always be at least five but not more than seven members of the board of trustees for the BTBID, amendable from time to time by duly adopted resolution of the city commission. The terms of the initial seven members shall be as follows: three members to serve for terms of one, two, and three years, respectively, from the date of their appointments; two must be designated to serve for terms of four years from the date of their appointments. For a seven-member board of trustees, there must be two additional appointments for terms of two years and three years, respectively. 3. Each board member shall hold office until the board member's successor has been appointed and has qualified. 4. A board member shall receive no compensation for the board member's service. Board members shall be entitled to previously authorized expenses, including travelling expenses, incurred in the discharge of the board member's duties. 5. Any persons may be appointed as board members but only if they are owners of real property subject to the jurisdiction of the BTBID or a formally appointed representative of a real property owner. 6. A board member may be removed by the city commission for inefficiency, neglect of duty, or misconduct, in office. C. Director. The director of BTBID board of trustees shall be the duly appointed executive director of the Bozeman Convention and Visitors Bureau and shall serve in an advisory and administrative role for the board of trustees in the administration of the affairs of the BTBID. D. Meeting; election of officers. 1. The BTBID board of trustees shall hold meetings as it deems necessary to execute its powers and duties provided for in subsection A of this section and article 6, division 8 of this chapter. 2. The BTBID board of trustees shall adopt bylaws enabling it to elect officers, set officer terms, and establish regular meeting times. E. Annual budget, work plan, and report/recommendation on levy. 125 Page 4 of 13 1. Each year, at a date and in a format established by the city director of administrative services, the board of trustees shall submit to the city commission a report of its activities for the preceding year. The report shall contain an audit of the district's finances. In addition, the board shall, at the same time, submit to the city commission, a work plan and budget for the ensuing fiscal year pursuant to the requirements of title 7, chapter 12, part 11, Montana Code Annotated (MCA 7-12-1101 et seq.). The city commission shall have final authority to approve the work plan and budget. 2. At the time the board of trustees submits a report, annual budget, and work plan, the board shall also submit a recommendation to the city commission on a method of levying an assessment on the property within the BTBID pursuant to the requirements of title 7, chapter 12, part 11, Montana Code Annotated (MCA 7-12-1101 et seq.). If the method of assessment is to be different than that described in section 2.06.1460.F, the commission must adopt an ordinance amending said section. 3. The work plan and budget shall comply with the provisions and procedures of section 2.06.1460.G. F. Duration. The board of trustees for the BTBID shall remain in effect as long as the BTBID remains in effect. G. Ethics provisions. All board activities and members are subject to all other provisions of this Code, including article 3, division 4, pertaining to code of ethics. H. Liability/property insurance required. The board of trustees shall obtain liability insurance coverage, at the sole expense of the BTBID, insuring the BTBID, the board of trustees, and the City of Bozeman against legal liability for personal injury and property damage in an amount not less than the liability and property exposure limits established for governmental entities in title 2, chapter 9, part 1, of Montana Code Annotated (MCA 2-9-101 et seq.). 2.05.1970. - Bozeman Downtown Business Improvement District Board A. Creation; powers and duties. The city commission creates the Bozeman Downtown Business Improvement District (BDBID) Board of Trustees and authorizes the BDBID Board of Trustees to exercise any of the following business improvement 126 Page 5 of 13 district powers, in conjunction with administration of the BDBID created pursuant to Resolution Number 5141, adopted on August 11, 2020, and article 6, division 8 of this chapter: 1. Sue and be sued; 2. Enter into contracts to carry out the function of the BDBID; 3. Hire and terminate personnel needed for its purposes; 4. Provide adequate liability insurance for the affairs of the BDBID; 5. Promote private investment and business expansion in the BDBID; 6. Provide for the management and administration of the affairs of the BDBID; 7. Promote business activity by advertising, decorating, marketing, and promoting and managing events and other actions designed for the general promotion of business activities in the BDBID; 8. Perform such other functions as are necessary to carry out the purposes of this chapter and to further the objectives of the BDBID; 9. Adopt bylaws, subject to the approval of the city commission, for the operation of the board and develop procedures for the collection and maintenance of BDBID records and the protection of district members’ privacy and trade secrets to the extent allowable by Montana law; and 10. Authorize the acquisition and disposal of real property upon the consent of the city commission. B. Members; appointments and terms. 1. All appointments to the BDBID shall be made by the city commission. 2. Upon creation, there shall be seven members of the board of trustees and there shall always be at least five but not more than seven members of the board of trustees for the BDBID, amendable from time to time by duly adopted resolution of the city commission. The terms of the initial seven members shall be as follows: three members to serve for terms of one, two, and three years, respectively, from the date of their appointments, two must be designated to serve for terms of four years from the date of their appointments. For a seven- member board of trustees, there must be two additional appointments for terms of two years and three years, respectively. 3. Notwithstanding subsection B.2 of this section, the existing terms of all current board of trustee positions shall continue uninterrupted. 4. Each board member shall hold office until the board member’s successor has been appointed and has qualified. 127 Page 6 of 13 5. A board member shall receive no compensation for the board member’s service. Board members shall be entitled to previously authorized expenses, including traveling expenses, incurred in the discharge of the board member’s duties. 6. Any persons may be appointed as board members but only if they are owners of real property subject to the jurisdiction of the BDBID or a formally appointed representative of a real property owner. 7. A board member may be removed by the city commission for inefficiency, neglect of duty, or misconduct, in office. C. Meeting; election of officers. 1. The BDBID board of trustees shall hold meetings as it deems necessary to execute its powers and duties provided for in subsection A of this section and article 6, division 8 of this chapter. 2. The BDBID board of trustees shall adopt bylaws enabling it to elect officers, set officer terms, and establish regular meeting times. D. Annual budget, work plan /recommendation on assessment/financial report. 1. The board of trustees shall annually complete a financial report in compliance with the requirements of title 2, chapter 7, part 5, Montana Code Annotated (MCA 2-7-501 et seq.) and provide a copy to the city commission. 2. Each year, at a date and in a format established by the city’s finance director, the board of trustees shall submit to the city commission a work plan and budget for the ensuing fiscal year pursuant to the requirements of title 7, chapter 12, part 11, Montana Code Annotated (MCA 7-12-1101 et seq.). The city commission shall have final authority to approve the work plan and budget. 3. At the time the board of trustees submits an annual budget and work plan, the board shall also submit a recommendation to the city commission on a method of levying an assessment on the property within the BDBID pursuant to the requirements of title 7, chapter 12, part 11, Montana Code Annotated (MCA 7- 12-1101 et seq.). If the method of assessment is to be different than that described in section 2.06.1460.F, the Commission must adopt an ordinance amending said section. 4. The work plan and budget shall comply with the provisions and procedures of section 2.06.1460.G. 128 Page 7 of 13 E. Duration. The board of trustees for the BDBID shall remain in effect as long as the BDBID remains in effect. F. Ethics provisions. All board activities and members are subject to all other provisions of this Code, including article 3, division 4 of this chapter, pertaining to the code of ethics. G. Liability/property insurance required. The board of trustees shall obtain liability insurance coverage, at the sole expense of the BDBID, insuring the BDBID, the board of trustees, and the city against legal liability for personal injury and property damage in an amount not less than the liability and property exposure limits established for governmental entities in title 2, chapter 9, part 1, Montana Code Annotated (MCA 2-9-101 et seq.). Section 2 That Chapter 2.06 of the Bozeman Municipal Code shall be amended as follows: DIVISION 8. - BUSINESS IMPROVEMENT DISTRICT PROGRAMS Sec. 2.06.1450. - Purpose and intent. The purpose and intent of this division is to provide for the specific program components of each of the several business improvement districts within the City of Bozeman created pursuant to title 7, chapter 12, part 11, Montana Code Annotated (MCA 7-12-1101 et seq.). The districts shall be administered as provided by the boards of trustees for each district created pursuant to article 5, division 11 of this chapter. The purpose of a business improvement district is to serve a public use, promote the health, safety, prosperity, security, and general welfare of the inhabitants of the district and of the people of this state and be of specific benefit to the property within the boundaries of each district. Sec. 2.06.1460. - Bozeman Tourism Business Improvement District programReserved. A. Creation of district. The city commission creates and establishes the Bozeman Tourism Business Improvement District (BTBID). B. Specific purpose of district. In addition to the purposes enumerated in section 2.06.1450, the purposes of the BTBID are to aid in tourism, promotion, and marketing within the BTBID. 129 Page 8 of 13 C. District to be administered by board of trustees. Pursuant to section 2.05.1960, the affairs of the BTBID are to be administered by the BTBID board of trustees. D. Limits and boundaries of district. 1. The outer limits of the BTBID within which properties used for the purpose of providing overnight stays at lodging facilities are be subject to the jurisdiction of the district shall mirror the city's corporate limits. As the corporate boundaries of the city change by reason of annexation or otherwise, the outer limits of the area within which a property shall be included in the BTBID shall be similarly changed. 2 Within the limits described in subsection D.1 of this section, it is acknowledged that not all properties or facilities are to be subject to the jurisdiction of the BTBID; rather, specific non-contiguous properties used for the purpose of providing overnight stays at lodging facilities, as described herein, shall be the only properties or facilities that comprise the BTBID. The properties and facilities that shall be subject to the BTBID assessments are only those that are being used for the identified purpose of providing ten or more rooms for temporary overnight accommodations, lodging, dwelling, or sleeping facilities for transient guests and, as such, shall include all hotels, motels, inns, bed and breakfast establishments, hostels, and other similar uses, structures, or portions thereof with ten or more rooms. 3. Any facility meeting the requirements of subsection D.2 of this section that begins service within the city limits after the effective date of the ordinance from which this section is derived shall be subject to the requirements of this division. In such a case, the facility will automatically become subject to the jurisdiction of the BTBID and subject to the assessments described in subsection G of this section. This provision shall also apply to any property or portion thereof annexed into the City of Bozeman after the effective date of the ordinance from which this section is derived whether such property or portion thereof contains an existing facility meeting the requirements of subsection D.2 of this section or whether a facility meeting the requirements of subsection D.2 of this section is developed on the property after annexation. E. General character of the services to be performed. The services to be performed by the BTBID shall include the funding of all uses and projects for tourism 130 Page 9 of 13 promotion within the city as specified in the BTBID annual work plan and budget, as required by section 2.05.1960.E, and as approved by the city commission. The services shall be designed to, among others, benefit local tourism and lodging businesses within the city and shall include the marketing of Bozeman at convention and trade shows, the marketing of Bozeman to the travel industry generally, and the marketing of Bozeman as a viable location for major sporting events. F. Assessments. Finding the benefits derived by each property or facility are proportional, the city commission shall annually assess the entire cost of the BTBID against the BTBID in the amount of $2.00 per occupied room night. The properties to be assessed shall be those meeting the requirements of subsection D.2 of this section. The assessments described herein shall be subject to the provisions of division 4 of this article. Certain occupied room nights are exempt from assessments under this division. These include: 1. Occupied room nights at facilities that are otherwise exempt from paying a lodging facility use tax pursuant to MCA 15-65-101 through 15-65- 136; and 2 Complimentary occupied room nights provided by a facility for no compensation. H. Work plan and budget. The board of trustees for the BTBID, in consultation with the Bozeman Convention and Visitors Bureau, shall annually prepare a work plan, audit, and budget and submit the same to the city commission. The commission shall provide notice work plan and budget have been submitted and shall hold a public hearing on objections to the work plan and budget and may modify the work plan and budget as it considers necessary and appropriate. Upon approval of the work plan and budget the commission shall levy the assessments as described in subsection F of this section. H.. Records/trade secrets. Pursuant to state law, the public shall have reasonable access to the records of the BTBID. To ensure there is sufficient protection of the trade secrets of any facility subject to this division, the board of trustees shall adopt procedures for creation and maintenance of records of the BTBID and procedures for balancing the right of the public to access to said records with the interest of the member entities' right to maintain the confidentiality of 131 Page 10 of 13 any valid trade secrets. These procedures shall be approved by the city attorney and incorporated into the bylaws. I. Duration of district. The BTBID shall remain in effect for ten years from the effective date of the ordinance from which this section is derived unless otherwise extended or modified by the city commission. Sec. 2.06.1470. - Bozeman Downtown Business Improvement District program. A. Creation of district. The city commission creates and establishes the Bozeman Downtown Business Improvement District (BDBID) for 2020-2030. B. District to be administered by board of trustees. Pursuant to section 2.05.1970, the affairs of the BDBID are to be administered by the BDBID board of trustees. C. Limits and boundaries of district. The properties of the BDBID shall include those within the boundaries as described in section 3 of Resolution No. 42635141, adopted June 21, 2010August 11, 2020. D. General character of the services to be performed. The services to be performed by the BDBID shall include the funding of all uses and projects within the BDBID as specified in the annual work plan and budget, as required by section 2.05.1970.D, and as approved by the city commission. E. Assessments. Each lot or parcel of land, including the improvements on the lot or parcel, shall be assessed for that part of the whole cost of the district that its taxable valuation bears to the total taxable valuation of the property of the BDBID and shall be as follows: described in Resolution No. 5141. 1. For the first three fiscal years (2011-2013) of the BDBID, the total property owner assessment shall not exceed $114,000.00; 2. For the fourth through seventh fiscal years (2014-2017), the assessment shall not exceed $120,000.00; and 3. For the eighth through tenth years (2018-2020), the assessment shall not exceed $126,000.00. As described in Resolution No. 5141, the annual assessment rate shall not exceed $0.03 per dollar of taxable value for the duration of the BDBID. These assessment limitations 132 Page 11 of 13 in Resolution No. 5141 may be exceeded with a favorable vote or petition by the owners of more than 60 percent of the area of the property in the BDBID. F. Work plan, budget and financial report. 1. The board of trustees shall prepare a financial report in compliance with title 2, chapter 7, part 5, of Montana Code Annotated (MCA 2-7-501 et seq.). 2. The board of trustees for the BDBID shall annually prepare a work plan, and budget and submit the same to the city commission. The commission shall provide notice work plan and budget have been submitted and shall hold a public hearing on objections to the work plan and budget and may modify the work plan and budget as it considers necessary and appropriate. Upon approval of the work plan and budget the commission shall levy the assessments as described in subsection E of this section. G. Records/trade secrets/privacy. Pursuant to state law, the public shall have reasonable access to the records of the BDBID. To ensure there is sufficient protection of the trade secrets or privacy of any property owner subject to this division, the board of trustees shall adopt procedures for creation and maintenance of records of the BDBID and procedures for balancing the right of the public to access to said records with the interest of the property owner's right to privacy or to maintain the confidentiality of any valid trade secrets. These procedures shall be approved by the city attorney and incorporated into the bylaws. H. Duration of district. The BDBID shall remain in effect for ten years from the effective date of the ordinance from which this section is derived unless otherwise extended or modified by the city commission. Section 3 Repealer. All provisions of the ordinances of the City of Bozeman in conflict with the provisions of this ordinance are, and the same are hereby, repealed and all other provisions of the ordinances of the City of Bozeman not in conflict with the provisions of this ordinance shall remain in full force and effect. 133 Page 12 of 13 Section 4 Savings Provision. This ordinance does not affect the rights and duties that matured, penalties that were incurred or proceedings that were begun before the effective date of this ordinance. Section 5 Severability. That should any sentence, paragraph, subdivision, clause, phrase or section of this ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this ordinance as a whole, or any part or provision thereof, other than the part so decided to be invalid, illegal or unconstitutional, and shall not affect the validity of the Bozeman Municipal Code as a whole. Section 6 Codification Instruction. The provisions of Sections 1 and 2 shall be codified as appropriate in Titles 2 and 3 of the Bozeman Municipal Code. Section 7 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. 134 Page 13 of 13 PROVISIONALLY ADOPTED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 11th day of August, 2020. ______________________________ CHRIS MEHL Mayor ATTEST: _____________________________________ MIKE MAAS City Clerk FINALLY PASSED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the _______of __________________, 2020. ______________________________ CHRIS MEHL Mayor ATTEST: _____________________________________ MIKE MAAS City Clerk APPROVED AS TO FORM: ______________________________ GREG SULLIVAN City Attorney 135