HomeMy WebLinkAboutCOM 0647.007 2002-2004 ~YVV Of N1
KONISHI ~~t~K. CONSTANCE R. hII~IU
Counn'Clrr'k •i Lrgi,rl~~tirr-lud6or
JAY ~-(ENDS
JVrf Of ~XY~'
r
Dr~un~ Counrn ClerA ~
County ofHnwni`i _
Offcce of the County Clerk ~ ~
3J.aupuniSfreet
Hiln, llumai'i 96720
elepbowr~: (b'03) 96/-5336 Facsimile (303J 961-3572
_J
hily .?004
ni
fO: Bobby Jean Leithead-Todd
Deputy Corporation Counsel
fKOM: Constance R. I<iriu~(~~'
Legislative Auditor
RE: Bill No. 380 relating to E3usiness Improvement Districts
QUTSTIONS
I . May the County adopt a business improvement district ordinance that enables a board or association crewed
pursuant to Chapter 46-80.5, HRS, to procw~e goods and services without comphing with the Smte
Procurement Code or applicable civil service laws?
3. If yes, does the language in E3ill No. 380, Section _-18 authorize the board or association to independently
procure goods and services without complying with the State Procurement Code or applicable ci~~il service
laws or would }'ou suggest clarifying language?
3. From an ed~ical or procurement standpoint, is there any law or rule that prohibits the council member of the
district within which file maja~ity of land in the business improvement district is located to be a eoting
member of the disn~ict board or association?
BACI:GROUND
In 1999, the State Legislature enacted Act 107, which stated, in par[, the following:
§46-80.5 Special improvement district.
°(a) ....The ordinance authorizing the creation of special improvement districts may permit the county to
provide for a board or association, established pursuant to chapter 4I4D, to provide management of the
special improvement district, and to carry out activities as may be prescribed by nc~ ordinance authorizing
the aeation of special improvement districts and the ordinance establishing the special improvement disc ict
?s permitted thereby...."
°(g) An~~ board or association established for the pw~poses of carrying out the activities described in this
section Shall not be deemed a governmental body. The board and association shall neither be deemed to be a
~rocernment department, agency, or a county nor to be performing services on behalfof a government
deparnnent_ agency, or county.'
Comm. No. 7
Hrnru!'i ("ounq~ is uri £yacrl (J/~~~or~tu~iti' Prm~id~r cmd Emplo7'er Ref. 10:
Ref. Uote
Draft bills and committee reports are attached for your information.
Bill No. 280, Section -18 was drafted kith the following language:
°(a) there shall be a district association for each business improvement district established pursuont to
the provisions of this chapter. "I~he district association shall be a nonprofit corporation and shall hay c
one or more lasses of membership, voting or nonvoting. The purpose of the association shall be the
carrying out (sic) [ofJ such activities as may be prescribed in the district plan. "The articles of
incorporation or bylaws of such association shall provide for voting representation of fee simple
owners and lessees of land within the district and may provide that the votes of members ~~ho are
owners of land be weighted in proportion to the assessment levied or to be levied against the parcels
of land ~ ithin the district and that members whose properties are exempt from the assessment are
nonvoting members.
(b) The district board shall be composed of representatives of fee simple owners, lessees of land, and
tenants of commercial space within the district; provided, however, that not less than a majority of
the district board members shall represent fee simple owners and lessees of land; and provided
fwther [hut tenants of commercial space within the district shall also be represented on the district
board. The district board shall also include the following, all of whom shall serve as the
incorporators of the association pursuant to the Hawaii Nonprofit Corporation Act:
(I) The director of the department of facilities maintenance or the director's designated
representative, who shall be a nonvoting member;
(2) The director of the department of budget and fiscal services or the director's designated
representative, who shall be a nonvoting member;
(3) The mayor or the mayor's designee, who shall be a voting member; and
(4) The council member of the district within which the majority of the land area within ~~hich
the district is located or the council member's designated representative, who shall be a
voting member.
The district association may be incorporated prior to the effective date of any disu~ict established
pursuant to this chapter.
{c) In addition to such other powers as are conferred to it by law or this chanter, the district board shall
have the uower to carry out the activities prescribed in the district plan, including but not limited to:
(I) Determining die scope and specifications for the perfom~ance standards;
(2) Lettin¢ contracts for the supplemental services or for die management of~erations of the
district;
(3) ~nterine into contracts for the development of plans, design, construction and/or renovation
ofsupulemental imurovements; and
(1) Adopting the annual budget for the district." (emphasis added)
A response in time for the July 12, ?004, Finance Committee agenda deadline or in advance of the.lul~ 22 Finance
Committee meeting would be appreciated. Since the Committee will be inviting people fi~om Oahu who are familiar
with the City and Counq~'s enabling ordinance and implementation, we are requesting an opinion prior to the
meerimz ro allow time for drafting possible amendments.
Thank you in advance for your prompt response.
att.
ce: I=inanee Committee Members