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HomeMy WebLinkAboutBIL 055 Draft 01 2006-2008 ~~V or y ~'~y ~y COUNTY OF HAWAII STATE OF HAWAII .h.o,.M' BILL NO. ss ORDINANCE NO. AN ORDINANCE PROVIDING FOR THE ESTABLISHMENT OF THE KAILUA VILLAGE BUSINESS IMPROVEMENT DISTRICT NO. 1. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Purpose. The purpose of this ordinance is to provide for the making and financing of a Business Improvement District at Kailua Village, in the district of Kailua-Kona, Hawaii to provide for and finance supplemental services and improvements in Kailua Village as authorized by chapter 35, Hawaii County Code 1983 (2005 Edition, as amended) (hereafter "Hawaii County Code.") SECTION 2. Establishment of District No. 1. (a) In accordance with the provisions of chapter 35, Hawaii County Code, the Council finds as follows: (1) A Business Improvement District is hereby established pursuant to the provisions of chapter 35, Hawaii County Code and in accordance with the "Kailua Village Business Improvement District Plan" attached as Exhibit "A" to this Ordinance and incorporated as part of this Ordinance; (2) The name of the district shall be "The County of Hawaii Kailua Village Business Improvement District No. I"; (3) The initial term of the proposed district is for five yeazs, which shall be automatically renewed unless an ordinance of termination is adopted. Should an ordinance of termination be adopted, operations of the district shall cease; (4) The parcels of land to be assessed within the district are identified by tax key numbers and set forth on two separate lists designated "Zone 1"and "Zone 2," attached hereto as Exhibit "1" and Exhibit " 2," respectively; (5) The general boundary of the Business Improvement District is outlined in red on the map attached hereto as Exhibit " 3." On the attached map, the azea within the district comprising Zone 1 is shaded blue and the area within the district comprising Zone 2 is shaded green; (6) Supplemental services and improvements to be provided and financed by the district aze: A) Information and Public Safery,~ Information and Safety Officers; and B) Landscaping and Maintenance; Clean Sweep Crews. In the district's first operating year, it is proposed that approximately $590,956 will be expended for the supplemental services and improvements. It is also proposed that an additional $76,000 will be incurred as incidental expenses; (7) Proposed sources of funding for all supplemental services, district improvements and incidental expenses shall be through annual special assessments levied against each parcel of land in the district, donations and grants from private institutions, revenues from other sources in accordance with the law and, whenever the council deems necessary or appropriate pursuant to section 35-49, Hawaii County Code, through the issuance of bonds; (8) Incidental expenses to be paid from special assessments are costs of administration, legal fees, accounting, management, office space, office equipment and supplies and insurance; (9) Establishment of a service area within the district is not being proposed at this time; (10) The rate and method of apportionment pursuant to which the first year's special assessment is to be levied, is as follows: (A) For each parcel of land within Zone I, the rate of $1.75 for every $1,000 of "Assessed Value" of each pazcel of land, as indicated on the County of Hawaii Real Property Tax Assessment list prepared for the tax year corresponding with the applicable tax year. The rate of assessment applicable to each parcel of land in Zone 1 shall be called "Zone 1 Rate;" (B) For each parcel of land within Zone 2, the rate of thirty-three and one-third percent (33-1/3%) of Zone 1 Rate; and (C) For each parcel of land within Zone 1 and Zone 2 that contain a single-family residence or condominium apartment with a homeowner's exemption on file with the Hawaii County real property tax office, at the flat annual rate of $100. Pursuant to section 35-2Q Hawai`i County Code, the Council determines the rate and method of apportionment to be reasonable; (11) Pursuant to chapter 35-28, Hawaii County Code, upon request of the district board, the council may change the authorized supplemental 2 services and improvements, the supplemental services and improvements to be financed, the rate or method of apportionment of an assessment, or the boundaries of the district other than an annexation provided in article 5, or the council may require the levy of a new assessment. Such changes shall be approved by ordinance, pursuant to section 35-29, Hawaii County Code; and (12) Exemptions from special improvement district assessments aze set forth in section 46-80, Hawaii Revised Statutes. SECTION 3. District boazd report. Prior to the commencement of the second and each subsequent assessment yeaz, the district boazd shall prepare and submit a report to the council that shall include the anticipated surplus or deficit from the preceding assessment yeaz as well as any proposed new rate or method of assessment for the next assessment year. This report shall be due by the thirtieth day preceding the commencement of the next assessment yeaz. SECTION 4. Assessment account and report. (a) The director of finance shall deposit all moneys collected pursuant to the district assessment in an account for the district in the general trust fund. (b) The director of finance shall prepare and submit a report to the district boazd summarizing: (1) Assessments collected or that remain unpaid by parcel of land and landowner; (2) The amount of interest and penalties collected; (3) The amount of moneys paid out for district purposes; and (4) The amount of administrative expenses directly incurred in the collection of assessments which were deducted from the amounts collected. (c) The report shall be submitted to the district board prior to a date set pursuant to written agreement between the district board and the County. SECTION 5. Amendments to district plan. The Kailua Village Business Improvement District Plan shall not be amended except pursuant to chapter 35, Hawaii County Code. SECTION 6. The revisor of ordinances shall insert an annex at the end of chapter 35, Hawaii County Code, that lists the County of Hawaii Kailua Village Business Improvement District No. 1 and ordinance number established by this ordinance. This annex shall not be deemed to be pazt of the chapter. SECTION 7. If any provision of this ordinance, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are severable. 3 SECTION 8. This ordinance shall take effect upon its approval. INTRODUCED BY: (/1M-~ COUNCIL MEMBE , CO OF HAWAII Hawaii Date of Introduction: Date of Hearing: Date of ls` Reading: Date of 2nd Reading: Effective Date: REFERENCE: Comm. 183 4 KAILUA VILLAGE BUSINESS IMPROVEMENT DISTRICT PLAN 1. Mission Statement. The mission statement of the County of Hawaii Kailua Village Business Improvement District No. 1 is as follows: The County of Hawaii Kailua Village Business Improvement District No. 1 is dedicated to enhancing the quality of life in Kailua Village, which shall exemplify the quality of life throughout the Island of Hawaii, by providing businesses, residents, visitors and employees of Kailua Village with a safe, clean and enjoyable environment in which to live, work and play. The County of Hawaii Kailua Village Business Improvement District No. 1 shall work in partnership with government to develop and implement programs that promote the overall vitality of Kailua Village and the Island of Hawaii. 2. The District Association and District Boazd. The District Association established for the County of Hawaii Kailua Village Business Improvement District No. 1 ("District Association") will be a corporation organized as a nonprofit corporation under Chapter 414D-32, Hawaii Revised Statutes, as amended. The purposes for which this corporation is organized and its powers in connection therewith are exclusively for the development of the County of Hawaii Kailua Village Business Improvement District No. 1 and the furtherance of the Business Improvement District goals. The District Association will be organized for the purpose of selecting the Board of Directors of the District Association ("Board"), which will execute the responsibilities and activities prescribed in the Plan on behalf of the District Association. a) IRC 501 (c) 3 Status. The District Association will be organized exclusively for chazitable and educational purposes as specified in Section 501 (c) 3 of the Internal Revenue Code of 1954, as amended. b) District Board. The District Association shall be governed by the Boazd. The Board shall have a total of at least three but not more than 17 members, who shall be elected or appointed in accordance with the articles of incorporation of, and in the manner prescribed by the bylaws of, the District Association and as follows: i) There shall be 11 voting directors. ii) The voting directors shall represent the fee simple owners and lessees of land within the district along with the mayor (or mayor's designee). iii) 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 further that tenants of commercial space within the district shall also be represented on the district board. Exhibit "A" (Page 1 of 9) iv) The district board shall also include these nonvoting members: director of public works (or the director's designated representative), director of finance (or the director's designated representative) and the council member of the district within which the majority of the land area within which the district is located (or the council member's designated representative). 3. Supplemental Services. The following supplemental services are intended to be provided and financed by the District: (a) Information and Public Safety; Information & Safety Officers. The objective of providing a safe and enjoyable environment for businesses, residents and visitors of Kailua Village shall be attained through the presence of "Information & Safety Officers." i) The Information & Safety Officers are intended to supplement the security provided by the Hawaii County Police Depaztment (HPD) and that provided by private landowners. ii) The Information & Safety Officers will provide hospitality to all persons through Hawaii's tradition of Aloha, by furnishing information, answering questions, and offering assistance and a working knowledge of Hawaii's history and cultures. They will be County of Hawaii Kailua Village Business Improvement District No. 1 "customer service corps" and will act as "Ambassadors of Aloha." iii) The Information & Safety Officers will present a distinctive, uniformed presence and will be identified as representatives of the County of Hawaii Kailua Village Business Improvement District No. 1. iv) The Information & Safety Officers will patrol throughout the County of Hawaii Kailua Village Business Improvement District No. 1. The Officers may be deployed primarily within the district's Zone 1 and, as and when appropriate, within Zone 2. Their visible, friendly presence is intended to aid in detemng unlawful activity. v) The Information & Safety Officers will be trained by the HPD and by qualified security officials in the hospitality industry and may patrol by foot, bicycle or motorized vehicle seven days a week. vi) The Information & Safety Officers may patrol publicly-owned azeas, such as public sidewalks and roadways, and portions of privately owned property. Exhibit "A" (Page 2 of 9) vii) The Information & Safety Officers will work through a communications network, which will include the HPD and private landowners. (b) Landscaping and Maintenance; Clean Sweep Crews. The objective of providing a safe and enjoyable environment for businesses, residents and visitors to Kailua Village shall be attained by creating a clean and attractive pedestrian environment through the work of "Clean Sweep Crews." i) The Clean Sweep Crews are intended to supplement the cleaning and maintenance of publicly-owned azeas and improvements within the District provided by the appropriate County or State department and of portions of privately owned properties within the District provided by private landowners. Best practices will be adopted to recycle redeemables. The Clean Sweep Crews may, in particular: I) power wash and power vacuum the sidewalks; 2) maintain the landscaping and planters, including water and prune trees, shrubs and groundcover; 3) pick up and dispose of litter, empty trash receptacles and redeem His recyclables within publicly-owned property; 4) remove graffiti; 5) clean vacant lots and park areas; 6) paint curbs and manually sweep curbs, gutters and sidewalks; 7) maintain street furniture; and 8) clean public restroom facilities. ii) The Clean Sweep Crews may operate around the clock seven days a week to supplement County and State cleaning and landscape maintenance services. The Clean Sweep Crews may be deployed primazily within County of Hawaii Kailua Village Business Improvement District No. 1 Zone 1 and, as and when appropriate, within Zone 2. iii) The Clean Sweep Crews will present a distinctive, uniformed presence, thus supplementing the Information & Safety Officers as "Ambassadors of Aloha" and identifying them as representatives of the County of Hawaii Kailua Village Business Improvement District No. 1. Exhibit "A" (Page 3 of 9) 3. Supplemental Improvements. The District Association may elect to further improve the District by undertaking special projects such as enhanced streetscape and/or landscape, wayfinding and signage, lighting, pedestrian pathways and surfaces, marketing, and special events. Associated expenses shall be paid with special assessments and other revenues including business improvement district bonds as provided for by Chapter 35 Article 7 of the Hawaii County Code. 4. Incidental Expenses. The incidental expenses of the District that shall be paid with special assessments and other revenues of the District include management and administration expenses, other operating support expenses, and expenses incurred by the Kona-Kohala Chamber of Commerce and County of Hawaii Kailua Village Business Improvement District No. 1 in the establishment of the District (including, without limitation, enabling legislation and this Plan.) 5. Budget• (a) Calendar Year. The County of Hawaii Kailua Village Business Improvement District No. 1 shall operate under a calendar year. A proposed Budget shall set forth the total amount proposed to be expended for such calendaz yeaz. (b) Budget for the First Calendar Year. The proposed Budget for the first calendar year is as follows. The Board shall, as soon as reasonably practicable after the commencement of the term of the District, adopt the actual Budget for the first calendar year, which shall not exceed the proposed Budget set forth below: REVENUES Assessments $586,956 Other Revenues $80,000 Total Revenues $666,956 EXPENSES Supplemental Services Public Space Management/Security $390,956 streetscape Cleaning & Maintenance $120,000 Public Improvements/Grants $80,000 Operating Support $76,000 Incidental Expenses Administration Legal Accounting Management Office Office Equipment Office Supplies/Services Insurance Exhibit "A" (Page 4 of 9) Total Expenses $666,956 c) Subsequent Calendar Year Budgets. The Board shall, at least sixty (60) days prior to the beginning of each calendar year (other than the first calendaz yeaz) adopt a Budget. Each Budget shall: i) reasonably itemize the purposes for which monies are proposed to be expended by the District Association; ii) specify the amount, if any, proposed to be expended by the District Association for debt service, if any; and iii) set forth the total amount proposed to be expended. (d) Expenditures No Greater than Collections and Surplus. The total annual expenditures in any calendaz year's Budget shall be no greater than the aggregate amount of all monies that the District Association proposes to collect for that calendar year from all funding sources permitted under this Plan and any surplus from the previous calendar year. (e) Compliance with Budget. The District Association shall make no expenditure other than in accordance with and pursuant to: (i) a Budget which has been approved by the Board; and (ii) the provisions of law and this Plan, if any, providing for the satisfaction of outstanding obligations of the District Association. (f) Modifications to Budget. The Boazd may revise the line items within any Budget; provided, however, that debt service obligations for the subject calendaz year shall be satisfied. If, in any calendar year, the revenues and surplus of the District are not equal to or greater than, in the aggregate, the amount required to cover the expenditures for that calendar year, the Board may choose not to implement any or all of the non-debt service expenditures set forth in the Budget. (g) Reimbursement ofAdvances. The District Association may enter into an agreement to receive advanced funds prior to the receipt by the District Association of the first calendaz year's assessments. Terms shall be determined by the Board. Nothing in this Plan shall preclude the Boazd from approving Budgets that contain expenditures to reimburse for funds advanced to establish the County of Hawaii Kailua Village Business Improvement District No. I. (h) Financial Records. i) The District Board shall maintain financial records regarding the operation and the contracts for supplemental services and improvements. Exhibit "A" (Page 5 of 9) ii) The District Board shall make such financial records available to the general public during regulaz business hours upon reasonable notice to the District Board. 6. Sources of Fundins. (a) Generally. The proposed sources of funding for all (i) supplemental services, (ii) district improvements and (iii) incidental expenses of the County of Hawaii Business Improvement District No. 1 contemplated in this Plan, shall be the sources of funding described in this section. Subject to requirements of law, the Boazd may apply all monies derived from any sources of funding permitted herein towazd funding any expenditure permitted under this Plan. (b) Assessments. (i) Except when funds are otherwise available and except to the extent exempted by law of this Plan, a special assessment sufficient to pay for the costs of the supplemental services and incidental expenses will be azmually levied against each pazcel of land in the District. Such assessments shall be called the "Assessments." (ii) The Assessment for each pazcel of land in the District for the first calendar year shall be based on the following rates and method of apportionment: 1) For each parcel of land within County of Hawaii Kailua Village Business Improvement District No. 1 Zone 1, at the rate of $1.75 for every $1,000 of "Assessed Value" of each such pazcel of land, as indicated on the County's real property tax assessment list prepared for the tax year corresponding with the applicable calendar yeaz. "Assessed Value" means the gross value of a pazcel of land assessed by the real property tax office of Hawaii County, including the assessed value of any improvements on that pazcel of land. The rate of assessment applicable to each parcel of land in County of Hawaii Kailua Village Business Improvement District No. 1 Zone 1 shall be called "Zone 1 Rate." 2) For each pazcel of land within County of Hawaii Kailua Village Business Improvement District No. 1 Zone 2, at the rate of thirty- three and one-third percent (33-1/3%) of Zone 1 Rate. 3) For each parcel of land within County of Hawaii Kailua Village Business Improvement District No. 1 Zones 1 and 2 that contain a single family residence or condominium apartment with a homeowner's exemption on file with the Hawaii County real property tax office, at the flat annual rate of $100. Exhibit "A" (Page 6 of 9) (iii) The Assessments for subsequent calendar years shall be made in accordance with the Section 35-21 of the Hawaii County Code. (iv) The following parcels of land shall not be assessed under this Plan: 1) Parcels of land owned by the United States or the State of Hawaii; provided, however, that property and leases of government property subject to real property taxation under Section 19-84, 19- 85 and 19-86 of the Hawaii County Code shall be assessed under this Plan. 2) Parcels of land that are exempt from the payment of real property taxes under Section 19-77 of the Hawaii County Code because of use for charitable purposes, but only so long as such pazcels aze exempt from the payment of real property taxes. 3) Parcels of land that are exempt from the payment of real property taxes as set forth in Hawaii Revised Statutes Chapter 239, but only so long as such parcels are exempt from the payment of real property taxes. (c) Notice of Assessment. The County, through its Department of Finance, will notify landowners of the Assessment in accordance with Section 35-25 of the Hawaii County Code. After the first calendar year's notice of Assessment, notices of Assessment will be given annually as of a date to be agreed upon by the County, through its Director of Finance; provided, however, that such date shall be no later than sixty (60) days prior to the commencement of each calendar yeaz. (d) Assessment Payment and Collection. The County, through its Department of Finance, shall collect and deposit Assessments in accordance with Section 35-23 of the Hawaii County Code. (e) Assessment Lien. The Assessment levied on a pazcel of land and the applicable penalty, interest and costs of collection shall be a lien against the land and improvements of the pazcel of land. If any Assessment is not paid when due, the County, through its Department of Finance, may foreclose the lien of assessment in accordance with Section 35-24 of the Hawaii County Code. (f) Donations. The Boazd, on behalf of the District Association, may accept grants and donations from private institutions, the County, other public entities, individuals, and other not-for-profit organizations. (g) Other. The District Association may obtain revenues from any other sources of funding not heretofore mentioned in accordance with law. Exhibit "A" (Page 7 of 9) (h) Bonds. Bonds may be considered to finance supplemental improvements within the District in accordance with Section 35-49 of the Hawaii County Code. 7. Base Line Service Agreement (a) The District shall supplement the Base Line Services provided by the county within the District and, except as specified in this Section, the county shall continue those Services within the District at no less than the levels provided on July O1, 2006. (b) The County Administration and Board shall execute a Base Line Services agreement which shall include at least the following: (i) An identification of the County services provided within Kailua Village during the fiscal year 2006-2007 which are to be "Base Line Services" subject to this Section and the agreement; (ii) A description of the levels of the Base Line Services to be provided on July O1, 2006, which shall be deemed incorporated by reference in this Plan; (iii) A pledge by the County that the Base Line Services shall not be decreased to levels below those to be provided on July O1, 2006, except as authorized under subsection (d); (iv) A pledge by the District Association to fund and provide the supplemental services specified in this District Plan; and (v) A statement that the County shall have the exclusive authority to determine the following: that a change of delivery method of a Base Line Service is consistent with subsection c), that a decrease of the level of a Base Line Service is consistent with subsection (d), or that a Base Line Service should be increased is consistent with subsection (e). c) The County may change the method of delivering a Base Line Service to promote efficiency or effectiveness. Any such change shall not affect the level and basic thrust and intent of the Base Line Service and shall be made only after the County has notified the Boazd in writing of such proposed adjustment and has discussed the same with the Board. (d) The County may decrease the level of a Base Line Service within the District when also decreasing the level of the comparable service in the County as a whole. The proportion of decrease of the Base Line Service within the District shall be no greater than the proportion of decrease of the comparable service in the County as a whole. Exhibit "A" (Page 8 of 9) The County may also decrease the level of a Base Line Service within the District when necessary due to an emergency, but shall restore the Service to the level before the emergency as soon as possible. (e) Any increase in the County as a whole of the level of a service comparable to a Base Line Service within the District shall be matched with an increase in such Service within the District, in proportion to the increase of the compazable service in the County as a whole. 8. Base Line Plus Services. In addition to the Base Line Services, and in support of the District Association's mission statement, the County will provide "Base Line Plus Services" as follows, at no chazge to the District Association: (a) The County's Department of Finance shall, on behalf of and for the District Association, (i) levy and collect the Assessments and disburse the Assessments to the District Association, and (ii) enforce and foreclose on the lien of the Assessments in such manner and at such times agreed to by the County and the Board in writing. (b) The HPD will provide training to the Information & Safety Officers so that they may perform their roles as professionally, safely, and efficiently as possible in cooperation with the HPD. 9. Indemnification and Insurance. (a) The District Association shall indemnify, defend, and hold harmless the County and its officers and employees against any claim azising out of an act or omission of the District Association or its Board, directors, officers, employees, contractors, or agents in executing this Plan or otherwise performing the duties of the District. (b) The District Association shall also obtain and maintain in force insurance against liability azising out of an act or omission of the District Association or its Boazd, directors, officers, or employees in executing this Plan or otherwise performing the duties of the District. The Board shall have the authority to determine what level of insurance coverage is sufficient for the District Association. This subsection shall not be construed as preventing the District Association from obtaining and maintaining in force other classes or types of insurance. Exhibit "A" (Page 9 of 9)