How a special improvement district's association and board are set up

A. There may be a district association for each special improvement district established pursuant to this chapter as provided in the ordinance establishing the district. The district association shall be a nonprofit corporation in good standing and registered with the State of Hawaii and shall have one or more classes of membership, voting or nonvoting. The purpose of the district association shall be the carrying out of such activities as may be prescribed in the ordinance establishing the district. 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 who are owners of land be weighted in proportion to the assessment levied or to be levied against the parcels of land within the district and that members whose properties are exempt from the assessment be 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. Not less than a majority of the district board members shall represent fee simple owners, lessees of land, and tenants of commercial space within the district. The district board shall also include the following, all of whom shall serve as the incorporators of the association pursuant to the Hawaii Nonprofit Corporations Act: 1. The director of public works or the director's designated representative, who shall be a nonvoting member. 2. The director of finance 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. 4. 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, who shall be a voting member. C. The nonprofit corporation may be incorporated prior to the effective date of any district established pursuant to this chapter. D. In addition to such other powers as are conferred to it by law or this chapter, the district board may carry out the activities prescribed in the ordinance establishing the district, including but not limited to: 1. Determining the scope and specifications for the performance standards. 2. Awarding contracts for the supplemental services or for the management of operations of the district. 3. Entering into contracts for the planning, design, construction, and renovation of supplemental improvements. 4. Adopting the annual budget for the district. E. Any board or association established for the purposes of carrying out the management and activities described in this chapter shall not be deemed a government department or agency, or county, nor to be performing services on behalf of a government department, agency, or county. ( Ord. No. 4382, § 1, 2016 )