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03. Ordinance 1675 - Establishing Regulations of Tourism Business Improvement District - 1st ReadingAN ORDINANCE ESTABLISHING THE REGULATIONS OF THE KALISPELL TOURISM BUSINESS IMPROVEMENT DISTRICT, AUTHORIZING THE CITY ATTORNEY TO CODIFY THIS ORDINANCE AND DECLARING AN EFFECTIVE I! BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, AS FOLLOWS: SECTION 1. The Kalispell Tourism Business Improvement District created by Resolution on May 3, 2010, pursuant to Title 7 Chapter 12 Part 11, shall have a terra of ten (10) years. SECTION 2. The boundaries of the District shall be all parcels, tracts, lots and blocks within the corporate limits of the City of Kalispell where a five or more room hotel is located and providing overnight stays as a lodging facility for transient patrons as its business. This description currently identifies those properties set forth on Exhibit "A" attached hereto and incorporated fully herein by this reference. SECTION 3. Board of trustees -- appointment -- number -- lean of office. (1) The Mayor, with the approval of the City Council, shall appoint seven owners of property within the district to comprise the board of trustees of the district. (2) The director for the tourism business improvement district must be the executive director of a nonprofit convention and visitors bureau, as defined in MCA 15- 65-101. (3) The number of members of the board, once established, may be increased to up to seven members from time to time by subsequent resolutions of the City Council of the local government. A resolution to reduce board membership may not require resignation of any member prior to completion of his appointed term. (4) Three of the members who are first appointed must be designated to serve for terms of 1, 2, and 3 years, respectively, from the date of their appointments, and two must be designated to serve for terms of 4 years from the date of their appointments. For a seven -member commission, there must be two additional appointments for terns of 2 years and 3 years, respectively. (5) After initial appointment, members must be appointed for a term of office of 4 years, except that a vacancy occurring during a term must be filled for the unexpired term.. A member shall hold office until his successor has been appointed and qualified. SECTION 4. Organization of board of trustees -- no compensation. (1) The City Council shall designate which member of the board is to be the first chairman. when the office of chairman of the board becomes vacant thereafter, the board shall elect a chairman from among its members. The team of office as chairman of the board, unless otherwise prescribed by the City Council, must be for l calendar year or for that portion thereof remaining after each chairman is designated or elected. (2) Members may receive no compensation. SECTION 5. Removal of board member. A member of a board of trustees may be removed by the Mayor with the consent of the City Council. ECTION 6. Powers of board in administering district. The board in administering the business improvement district has all powers necessary to carry out the functions of the district contained in this ordinance creating it, including the power to: (1) sue and be sued, enter into contracts, and hire and terminate personnel needed for its purposes; (2) provide special police, maintenance, or cleaning personnel for the protection and enjoyment of the general public using the business district; (3) landscape and beautify public areas and to maintain those areas; (4) contract with the City Council to maintain, operate, or repair public parking facilities; (5) contract with the City Council to maintain streets, alleys, malls, bridges, ramps, tunnels, landscaping, and other public facilities as mutually agreed upon; (6) promote private investment and business expansion in the district; (7) provide for the management and administration of the affairs of the district; (8) 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 district; and (9) perform such other functions as are necessary to carry out the purposes of this part and to further the objectives of the district. SECTION 7. Annual budget and work plan -- approval -- procedure W-- tax. (1) At a time determined by the City Council, the board shall submit to the City Council for approval a work plan and budget for the ensuing fiscal year. (2) Following public notice that a work plan and budget have been submitted and that the City Council will levy an assessment to defray the cost of the work plan and budget, the City Council shall hold a public hearing on objections to the work plan and budget. After the hearing, the City Council may modify the work plan and budget as it considers necessary and appropriate. (3) After approval of the work plan and budget and to defray the cost thereof for the next fiscal year, the City Council shall by resolution levy an assessment upon all of the property in the district using as a basis one of the methods prescribed in MCA. 7-12- 1133. (4) A copy of the resolution shall be delivered to the treasurer of Flathead County to be placed on the tax roll and collected in the same manner as other taxes. SECTION 8. Assessment of costs -- area, lot, taxable valuation, and square footage options. (1) At the same time the board submits the annual budget and work plan to the City Council as provided in MCA 7-12-1132, the board shall also recommend to the City Council a method of levying an assessment on the property within the district which will best ensure that the assessment on each lot or parcel is equitable in proportion to the benefits to be received. (2) The City Council shall annually assess the entire cost of the district against the entire district using a method which best ensures that the assessment on each lot or parcel is equitable in proportion to the benefits to be received. In determining the method of assessment to be used, the City Council shall consider the recommendations of the board. (3) 1f a district is expanded, the land within the expanded area must be assessed as provided for in subsection (2) for the duration of the district. SECTION 9, city Council not to decrease public services. The City Council may not decrease the level of public services in the district existing prior to the creation of the district unless the services at the same time are decreased throughout the jurisdictional area of the City Council, nor may it transfer the financial burden of providing those services to the district. The City Council may not discriminate in the provision of publicly funded services between areas included in such district and areas not so included. SECTION 10. .Liability insurance required. The City Council may not approve the annual budget or the work plan submitted to it by the board unless the annual budget and the work plan provide for liability insurance coverage insuring the district, the board, and the City against legal liability for personal injury and property damage in an amount determined sufficient for that purpose by the City Council. SECTION 11, Obligations of district not obligations of city. An obligation or debt of any nature of the district is not an obligation or debt of the City and in no event is a debt or obligation of a district payable out of any funds or properties of the City. The debts and obligations of a district are payable solely from the funds and properties of the district. SECTION 12. This Ordinance shall be effective thirty (30) days from and after the date of its final passage and approval. PASSED AND APPROVED BY TIME CITY COUNCIL AND SIGNED BY THE MAYOR THIS 17th DAY OF MAY, Zo 10. Tarnmi Fi s her Mayor ATTEST: Theresa White City Clerk