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HomeMy WebLinkAboutProvisional Adoption of Ordinance No. 1765 Creating a Tourism Business Improvement District Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Greg Sullivan, City Attorney Chris Kukulski, City Manager SUBJECT: Provisional Adoption of Ordinance 1765: An Ordinance of the City Commission of the City of Bozeman, Montana, Creating a Tourism Business Improvement District. MEETING DATE: July 27, 2009 AGENDA ITEM TYPE: Regular Agenda RECOMMENDATION: Provisionally adopt Ordinance 1765: An Ordinance of the City Commission of the City of Bozeman, Montana, Creating a Tourism Business Improvement District BACKGROUND: Over the past two months you have participated in the creation of a Tourism Business Improvement District. You previously adopted two resolutions to regarding this issue: Resolution 4172 (a Resolution of Intent) and Resolution 4182 (a final Resolution). Pursuant to Sect. 7-12-1121(1), MCA, you must also adopt an ordinance. Should you adopt the ordinance final adoption will be scheduled for August 10, 2009, at which time you are scheduled to appoint seven members to the Bozeman Tourism Business Improvement District Board of Trustees. If you give final approval on August 10th, the ordinance will go into effect on September 9, 2009. Tentatively, you will have a work plan and budget presented to you on September 14, 2009 for your consideration and adoption. Assessments will be levied upon the affected properties only after your adoption of the work plan and budget and decision to levy the assessments. Please note several important factors in the establishment of the ordinance: The powers and duties of the board of trustees are enumerated Section 2 of the ordinance under Sect. 2.92.020.A. Please ensure these powers are those you would like to vest the board of trustees with. The powers listed mirror those listed in Sect. 7-12-1131, MCA. In the staff memo supporting Resolution 4182, you were advised to pay particular attention to these powers. Please do so again. 70 The ordinance as drafted appoints seven members to the board of trustees. Sect. 7-12- 1111(1), MCA, allows you to appoint five or seven members. The ordinance creates new chapters within the Bozeman Municipal Code. The purpose of this structure is to ensure other business improvements districts, both existing and future, can be codified within the same chapter. FISCAL EFFECTS: As stated to the Commission in the staff memorandum prepared for your consideration at both the Resolution of Intent and final Resolution, the annual assessments for the district will be based on actual number of occupied room nights and is estimated to total $511,000 in the first year of assessment. As of the date of creation of the district, the BTBID will require each assessed property owner to record the occupied room nights at their hotel. This information will be accumulated on a fiscal year (July 1 - June 30) basis and then billed to each property owner the following October. Once collected, the city will remit assessment dollars to the Board to be used according to their Commission-approved annual work plan and budget. Sect. 7-12-1132, MCA. If the district is created according to the proposed timeline, the assessments will be first collected in November 2010. ALTERNATIVES: As suggested by the City Commission. Attachments: Ordinance 1765 Report compiled on: July 22, 2009 71 ORDINANCE NO. 1765: Creation of Bozeman Tourism Business Improvement District Page 1 of 11 ORDINANCE NO. 1765 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, CREATING A TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, on July 6, 2009, the City Commission of the City of Bozeman adopted Resolution 4182, creating the Bozeman Tourism Business Improvement District; and WHEREAS, 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 Tourism Business Improvement District; and WHEREAS, the recitals and findings made during adoption of Resolution 4182, including those made in the adoption of Resolution 4172, a Resolution of Intent to Create a Tourism 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 table of contents of Title 2 of the Bozeman Municipal Code be added to so that such table of contents shall read as follows: Title 2 ADMINISTRATION AND PERSONNEL Chapters: 2.01 Code of Ethics 2.04 City Commission 2.05 Acquisition and Transfer of City Property 2.06 Municipal Court 2.08 City Manager 2.10 Assistant City Manager 2.12 Administrative Departments Generally 2.16 City Attorney Department of Law 72 ORDINANCE NO. 1765: Creation of Bozeman Tourism Business Improvement District Page 2 of 11 2.20 Health Officer 2.30 Office of the City Clerk 2.32 Department of Finance 2.36 Division of Recreation 2.40 Department of Public Safety 2.44 Department of Public Service 2.48 Department of Public Welfare 2.56 Library Board of Trustees 2.64 City County Planning Board 2.66 City Planning Board 2.72 City Employees 2.76 Cemetery 2.78 Bozeman Area Bicycle Advisory Board 280 Historic Preservation Advisory Board 2.84 Bozeman Beautification Advisory Board 2.88 Tax Increment Financing Industrial District Board 2.92 Bozeman Tree Advisory Board 2.90 Business Improvement Districts Boards of Trustees 2.96 Bozeman Senior Citizens Advisory Board 2.98 Quality Jobs and Living Wage Section 2 That there shall be added to Title 2 of the Bozeman Municipal Code, the following chapter: Chapter 2.90 BUSINESS IMPROVEMENT DISTRICTS BOARDS OF TRUSTEES Sections: 2.90.010 Purpose and Intent 2.90.020 Bozeman Tourism Business Improvement District Board of Trustees 2.90.010 Purpose and Intent The purpose and intent of this chapter is to provide for boards of trustees for the several business improvement districts within the City of Bozeman created pursuant to Title 7, Chpt. 12, Part 11, MCA. 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 Chapter 3.22 of this code. Each board of trustees is a public body and shall comply 73 ORDINANCE NO. 1765: Creation of Bozeman Tourism Business Improvement District Page 3 of 11 with all laws of the State of Montana regarding notice and opportunity to be heard, open meetings, public participation, and maintenance of public records. 2.90.020 Bozeman Tourism Business Improvement District Board A. Creation – Powers and Duties. The Bozeman City Commission creates the Bozeman Tourism Business Improvement District (BTIBD) Board of Trustees and authorizes the BTIBD Board of Trustees to exercise any of the following business improvement district powers, in conjunction with administration of the BTBID 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 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 chapter and to further the objectives of the BTBID; and 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 BTBID records and the protection of district members’ trade secrets to the extent allowable by Montana law. B. Members – Appointments and Terms. 1. All appointments to the BTBID 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 the Board of Trustees for the BTBID, 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: 74 ORDINANCE NO. 1765: Creation of Bozeman Tourism Business Improvement District Page 4 of 11 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. Each board member shall hold office until his or her successor has been appointed and has qualified. 4. 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. 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 BTIBD. 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 Section 2.90.020.A and Chapter 3.22 of this code. 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. 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. In addition, the board shall, at the same time, submit to the Bozeman City Commission, a work plan and budget for the ensuing fiscal year pursuant to the requirements of Title 7, 75 ORDINANCE NO. 1765: Creation of Bozeman Tourism Business Improvement District Page 5 of 11 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.F, 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.G. F. Duration. The Board of Trustees for the BTBID shall remain in effect as long as the BTBID remains in effect. G. Ethics Ordinance. All board activities and members are subject to all other provisions of this code, including Chpt. 2.01, 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, Chpt. 9, Part 1, MCA. (Ord. 1765, § 2, 2009). 76 ORDINANCE NO. 1765: Creation of Bozeman Tourism Business Improvement District Page 6 of 11 Section 3 That the table of contents of Title 3 of the Bozeman Municipal Code be added to so that such section shall read as follows: Title 3 REVENUE AND FINANCE Chapters: 3.04 Collection of Taxes 3.08 Transfer of Surplus Funds 3.12 Police Reserve Fund 3.16 Special Improvement District Revolving Fund 3.20 Tax Increment Financing Industrial District Program 3.22 3.24 Impact Fees Business Improvement District Programs 3.28 Advertisement Space on Municipal Property (Ord. 1765, § 3, 2009). Section 4 That there shall be added to Title 3 of the Bozeman Municipal Code, the following chapter: Chapter 3.22 Business Improvement District Programs Sections: 3.22.010 Purpose and Intent 3.22.020 Bozeman Tourism Business Improvement District Program 3.22.010 Purpose and Intent The purpose and intent of this chapter 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, Chpt. 12, Part 11, MCA. The districts shall be administered as provided by the boards of trustees for each district created pursuant to Chpt. 2.90 of this code. The purpose of a business improvement district is to serve a public use, promote the health, safety, prosperity, 77 ORDINANCE NO. 1765: Creation of Bozeman Tourism Business Improvement District Page 7 of 11 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. 3.22.020 Bozeman Tourism Business Improvement District Program. A. Creation of District. The Bozeman City Commission creates and establishes the Bozeman Tourism Business Improvement District (BTBID). B. Specific Purpose of District. In addition to the purposes enumerated in Sect. 3.22.010, the purposes of the BTBID are to aid in tourism, promotion, and marketing within the BTBID. C. District to be Administered by Board of Trustees. Pursuant to Sect. 2.90.020, 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 of Bozeman’s corporate limits. As the corporate boundaries of the City of Bozeman 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 Sect. 3.22.020.D.1, it is acknowledged 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 (10) 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 78 ORDINANCE NO. 1765: Creation of Bozeman Tourism Business Improvement District Page 8 of 11 breakfast establishments, hostels, and other similar uses, structures, or portions thereof with ten (10) or more rooms. 3. Any facility meeting the requirements of Sect. 3.22.020.D.2 that begins service within the city limits of the City of Bozeman after the effective date of Ordinance 1765 shall be subject to the requirements of this chapter. In such a case, the facility will automatically become subject to the jurisdiction of the BTBID and subject to the assessments described in Sect. 3.22.020.G, below. This provision shall also apply to any property or portion thereof annexed into the City of Bozeman after the effective date of Ordinance 1765 whether such property or portion thereof contains an existing facility meeting the requirements of Sect. 3.22.020.D.2 or whether a facility meeting the requirements of Sect. 3.22.020.D.2 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 promotion within the City of Bozeman as specified in the BTBID annual work plan and budget, as required by Sect. 2.90.020.E, and as approved by the Bozeman City Commission. The services shall be designed to, among others, benefit local tourism and lodging businesses within the City of Bozeman 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 Bozeman City Commission shall annually assess the entire cost of the BTBID against the BTBID in the amount of one dollar ($1.00) per occupied room night. The properties to be assessed shall be those meeting the requirements of Sect. 3.22.020.D.2. The assessments described herein shall be subject to the provisions of Chpt. 3.04 of this code. 79 ORDINANCE NO. 1765: Creation of Bozeman Tourism Business Improvement District Page 9 of 11 G. 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 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. 3.22.020.F. H. Records/Trade Secrets Pursuant to Montana 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 chapter 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 any valid trade secrets. These procedures shall be approved by the Bozeman City Attorney and incorporated into the bylaws. I. Duration of District The BTBID shall remain in effect for 10 years from the effective date of Ordinance 1765 unless otherwise extended or modified by the Bozeman City Commission. (Ord. 1765, § 5, 2009). Section 5 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. 80 ORDINANCE NO. 1765: Creation of Bozeman Tourism Business Improvement District Page 10 of 11 Section 6 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 7 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 8 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 27th of July, 2009. ____________________________________ KAAREN JACOBSON, Mayor ATTEST: _______________________________ STACY ULMEN City Clerk 81 ORDINANCE NO. 1765: Creation of Bozeman Tourism Business Improvement District Page 11 of 11 APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney FINALLY PASSED, ADOPTED AND APPROVED by the City Commission of the City of Bozeman, Montana on second reading at a regular session thereof held on the ____ day of August, 2009. The effective date of this ordinance is September __, 2009. _________________________________ KAAREN JACOBSON, Mayor ATTEST: _______________________________ STACY ULMEN City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 82