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HomeMy WebLinkAboutProvisional Adoption of Ordinance No_ 1790, A22222_23 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Greg Sullivan, City Attorney Stacy Ulmen, City Clerk Chris Kukulski, City Manager SUBJECT: Provisional Adoption of Ordinance 1790: An Ordinance for the Recreation/Extension of the Downtown Business Improvement District. MEETING DATE: June 21, 2010 AGENDA ITEM TYPE: Action RECOMMENDATION: Should the Commission adopt Resolution 4263 after hearing and passing on all protests to the recreation/extension of the Bozeman Downtown Business Improvement District (the “District”) Staff recommends the Commission adopt Ordinance 1790 amending the Bozeman Municipal Code to implement the District. BACKGROUND: 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 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 1790 contains two primary components: (i) creation of the District’s Board of Trustees 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. We briefly discuss each in turn. This memorandum does not discuss all the components of the ordinance nor detail the precise administrative procedures. Please consult the ordinance. A. Amendments to Title 2, BMC: Establishment of the District’s Board of Trustees Section 1 of the Ordinance creates the District’s Board of Trustees and includes provisions related to the creation, powers and duties, appointment and terms of the Trustees, the creation and approval of the annual work plan and budget, compliance with the city’s Code of Ethics (Chpt. 2.01, BMC), and the requirement the District maintain separate liability insurance. 268 These provisions mirror those of the Tourism Business Improvement District created in 2009. Please note the ordinance continues the current terms of the positions of the Board of Trustees and does not require restarting of all terms. We recommend, however, the Commission reappoint all current members to complete the terms already in place after final adoption of this ordinance. B. Amendments to Title 3: Creation of the Bozeman Downtown Business Improvement District Program. The provisions of Section 2 of the Ordinance create the District, identify it will be administered by the Board of Trustees created in Title 2 (see above) and also establishes the boundaries of the District. This section also discusses the “general character of the services to be performed” and the method of levying the assessments including the cap on authorized increases discusses the work plan and budget and the protection of privacy and trade secret information. Finally, this section recognizes the District will be in place for 10 years – the longest time available under the statute. 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: The following was included in the Commission Memorandum from Resolution 4263 and is repeated here. The fiscal effects to the city of Bozeman government are nominal. The effects include staff time in the Finance Department administering the finances of the district and conducting 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 2009 totaled $114,000 and the Resolution calls for a limit on the total assessments for the District, if re-created, for 2010 to not exceed $114,000. This amount represents the entire budget for the District. The Resolution also caps the total assessments during the life of the District. Attachment: Ordinance 1790 Report compiled on: June 16th, 2010 269 ORDINANCE NO. 1790: Recreation/Extension of the Bozeman Downtown Business Improvement District Page 1 of 8 ORDINANCE NO. 1790 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING CHAPTERS 2.90 AND 3.22 OF THE BOZEMAN MUNICIPAL CODE TO RECREATE/EXTEND THE DOWNTOWN BUSINESS IMPROVEMENT DISTRICT WHEREAS, on June 21, 2009, the City Commission of the City of Bozeman adopted Resolution 4263, 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 4263, including those made in the adoption of Resolution 4256, a Resolution of Intent to recreate/extend the Bozeman Downtown Business Improvement District, 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 the Chapter 2.90, Bozeman Municipal Code, shall be amended as follows and any section within not amended herein shall remain in effect: Chapter 2.90 BUSINESS IMPROVEMENT DISTRICTS BOARDS OF TRUSTEES Sections: 270 ORDINANCE NO. 1790: Recreation/Extension of the Bozeman Downtown Business Improvement District Page 2 of 8 2.90.010 Purpose and Intent 2.90.020 Bozeman Tourism Business Improvement District Board of Trustees 2.90.030 Bozeman Downtown Business Improvement District Board of Trustees 2.90.030 Bozeman Downtown Business Improvement District Board A. Creation – Powers and Duties. The Bozeman 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 district powers, in conjunction with administration of the BDBID created pursuant to Chpt. 3.22 of this code: 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 Bozeman 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 Bozeman City Commission. 2. Upon creation, there shall be seven (7) members of the Board of Trustees and there shall always be at least five (5) but not more than seven (7) members of 271 ORDINANCE NO. 1790: Recreation/Extension of the Bozeman Downtown Business Improvement District Page 3 of 8 the Board of Trustees for the BDBID, amendable from time to time by duly adopted resolution of the Bozeman City Commission. The terms of the initial seven members shall be as follows: three members to serve for terms of 1, 2, and 3 years, respectively, from the date of their appointments, two must be designated to serve for terms of 4 years from the date of their appointments. For a seven-member board of trustees, there must be two additional appointments for terms of 2 years and 3 years, respectively. 3. Notwithstanding 2.90.030.B.2 the existing terms of all current Board of Trustee positions shall continue uninterrupted. 4. Each board member shall hold office until his or her successor has been appointed and has qualified. 5. A board member shall receive no compensation for his or her service. Board members shall be entitled to previously authorized expenses, including travelling expenses, incurred in the discharge of his or her 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 Section 2.90.030.A and Chapter 3.22 of this code. 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, and Report/Recommendation on Levy. 1. Each year, at a date and in a format established by the Bozeman Finance Director, the Board of Trustees shall submit to the Bozeman 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 Bozeman City Commission, a work plan and budget for the 272 ORDINANCE NO. 1790: Recreation/Extension of the Bozeman Downtown Business Improvement District Page 4 of 8 ensuing fiscal year pursuant to the requirements of Title 7, Chpt. 12, Part 11, MCA. The Bozeman 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 Bozeman City Commission on a method of levying an assessment on the property within the BTBID pursuant to the requirements of Title 7, Chpt. 12, Part 11, MCA. If the method of assessment is to be different than that described in Sect. 3.22.020.E, the Commission must adopt an ordinance amending said section. 3. The work plan and budget shall comply with the provisions and procedures of Sect. 3.22.020.F. E. Duration. The Board of Trustees for the BDBID shall remain in effect as long as the BDBID remains in effect. F. Ethics Ordinance. All board activities and members are subject to all other provisions of this code, including Chpt. 2.01, 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 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, Chpt. 9, Part 1, MCA. 273 ORDINANCE NO. 1790: Recreation/Extension of the Bozeman Downtown Business Improvement District Page 5 of 8 Section 2 That Chapter 3.22 of the Bozeman Municipal Code shall be amended by adding a new Section 3.22.030: Chapter 3.22 Business Improvement District Programs Sections: 3.22.010 Purpose and Intent 3.22.020 Bozeman Tourism Business Improvement District Program 3.22.030 Bozeman Downtown Business Improvement District Program 3.22.030 Bozeman Downtown Business Improvement District Program. A. Creation of District. The Bozeman City Commission creates and establishes the Bozeman Downtown Business Improvement District (BDBID). B. District to be Administered by Board of Trustees. Pursuant to Sect. 2.90.030, 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 4263, adopted June 21, 2010. 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 Sect. 2.90.030.D, and as approved by the Bozeman City Commission. . 274 ORDINANCE NO. 1790: Recreation/Extension of the Bozeman Downtown Business Improvement District Page 6 of 8 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: 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. These assessment limitations may be exceeded with a favorable vote or petition by the owners of more than 60% of the area of the property in the BDBID. F. Work Plan and Budget The Board of Trustees for the BDBID shall annually prepare a work plan, audit, and budget and submit the same to the Bozeman 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 Sect. 3.22.030.E. G. Records/Trade Secrets/Privacy Pursuant to Montana 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 chapter 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 Bozeman City Attorney and incorporated into the bylaws. H. Duration of District The BDBID shall remain in effect for 10 years from the effective date of Ordinance 1790 unless otherwise extended or modified by the Bozeman City Commission. 275 ORDINANCE NO. 1790: Recreation/Extension of the Bozeman Downtown Business Improvement District Page 7 of 8 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. 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. 276 ORDINANCE NO. 1790: Recreation/Extension of the Bozeman Downtown Business Improvement District Page 8 of 8 Section 7 Effective Date. This ordinance shall be in full force and effect thirty (30) days after final adoption. PROVISIONALLY PASSED by the City Commission of the City of Bozeman, Montana, on first reading at a regular session held on the 21st of June, 2010. ______________________________ JEFFREY K. KRAUSS Mayor ATTEST: _____________________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: ______________________________ GREG SULLIVAN City Attorney 277