Maria O. Hart (Montana Bar No. 13155)PARSONS BEHLE k, LATIMER800 West Main Street, Suite 1300Boise, Idaho 83702Telephone: 208.562.4900Facsimile: 2 0 8 .562.4901mhart@parsonsbehle.com

Attorney for Plaintiff

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MONTANA KIGHTKKNTH JUDICIAL DISTRICTGALLATINCOUNTY

SALAD DAYS PRODUCTIONS, INC., d/b/aTHE PLAYMILL THEATRE,

Plaintiff,

Case No.

COMPLAINT

P/$5gddArd/ld /~ fdd~THE TOWN OF WEST YELLOWSTONE,

Defendant.

COMES NOW Plaintiff, Salad Days Productions, Inc., d/b/a the Playmill Theatre, by and

through its undersigned counsel of record, Parsons Behle & Latimer, and hereby alleges causes

of action against Defendant, the Town of West Yellowstone as follows:

PARTIES

1. Pl a i nt iff Salad Days Productions, Inc. is an Idaho corporation, doing business as

the Playmill Theatre ("the Playmill").

2. A t al l r e levant times hereto, the Playmill has been operating in West Yellowstone,

Gallatin County, Montana.

3. Defe n dant the Town of West Yellowstone ("the Town") is a subdivision of the

state of Montana.

COMPLAINT - 1

JURISDICTION AND VENUE

4. This C ourt has jurisdiction over the parties because the Town of West

Yellowstone is located in Gallatin County, and that is the county wherein the acts requiring relief

took place.

5. Ven ue is proper in this Court pursuant to Mont. Code Ann. $$ 25-2-118, 122 and

126.

GENERAL ALLEGATIONS

The Pla mill's Histo

6. The P l aymill has operated in West Yellowstone, Montana since 1964.

7. Sal ad Days Productions, Inc. purchased the Playmill Theatre in January 2005 and

has owned and operated it since that date. Roger and Heidi Merrill manage the Playmill.

8. The P laymill performs live musical theatre and other theatre every summer

between May and September. It sells tickets to the theatre performances as well as concessions-

style food, themed clothing, and other souvenir items.

Montana's Resort Tax Statute

9. Pur suant to Mont. Code Ann. $ 7-6-1501 et seq., certain designated municipalities

and geographic areas in Montana may enact a resort tax ordinance for the assessment and

collection of taxes associated with the tourism industry.

10. I n particular, Mont. Code Ann. $ 7-6-1503(2)(a) permits the taxing of "all goods

and services sold... within the resort communi o r are a" by s pecifically enumerated

establishments including hotels, motels, camping facilities, restaurants, bars, ski resorts, and

other recreational facilities. (Emphasis added). L ive theatres are not included in this list of

establishments for which all goods and services are subject to the resort tax.

COMPLAINT - 2

11. M o nt. Code Ann. $ 7-6-1503(2)(b) states "[e]stablishments that sell luxuries shall

collect a tax on such luxuries."

12. "Luxuries" are defined by Mont. Code Ann. $ 7-6-1501 as "any gift item, luxury

item, or other item normally sold to the public or to transient visitors or tourists."

13. R egarding a resort area's obligation to provide notice to businesses detailing the

goods and services subject to the resort tax, Mont. Code Ann. $ 7-6-1504(6)(a) states:

Before the resort tax question is submitted to the electorate of aresort community or a rea, the governing body o f the resortcommunity or the board of the county commissioners in the countyin which the resort area is located shall publish notice of the goodsand services subject to the resort tax.

14. M o nt . Code Ann. $ 7-6-1505(4)(a) further allows each resort area may pass an

administrative ordinance for the effective administration of the resort tax ordinance "which may

include further clarification and specificity in the categories of goods and services that are

subject to the resort tax consistent with 7-6-1503."

The Town's 2003 Resort Tax Ordinance

15. T h e Town enacted Ordinance No. 3.12.010 et seq., entitled "Resort Tax," in 1985.

The Town renewed Ordinance No. 3.12.010 et seq. in 2003 without any amendments (the "2003

Ordinance"). A true and correct copy of the 2003 Ordinance is attached hereto as Exhibit A.

16. The 2003 Ordinance, putatively enacted under the authority of Mont. Code Ann. $

7-6-1501 et seq., purports to impose a resort tax on the retail value of certain defined and

specified goods and services "sold within the Town." See 2.12.010 (emphasis added).

17. Se c t ion 3.12.020 of the 2003 Ordinance defines luxuries subject to the resort tax

"as set forth in MCA Section 7-6-1501."

18. Se c t ion 3.12.040 of the Ordinance further states:

COMPLAINT - 3

Luxuries shall be further defined to mean sporting goods, rentalson snowmobiles, automobiles, all-terrain vehicles, motorcycles,bicycles, skis, boats, campers, boat motors; recreational services,including float trips, guided trips and tours; all souvenir andlocalized items such as imprinted hats and T-shirts and curios; allnonfood items such as cleaning supplies, housewares (other thanhousehold appliances), automotive supplies and parts; ice; retailliquor, beer and wine, except that sold at state stores.

19. L iv e theatre tickets are not specified or included in the 2003 Ordinance's list of

luxury items.

20. In a dd i t ion, section 3.12.110 of the 2003 Ordinance grants the Town the authority

to conduct random audits of businesses to determine the accuracy of resort taxes paid and to

"determine[] a deficiency."

21. And , section 3.12.130 of the 2003 Ordinance exempts certain services from the

resort tax including "[a]11 nonrecreational labor, services and nonrecreational state licensed

profession and trades."

The Pla mill's Ticket Sales

22. T h e Playmill has paid to the Town all resort tax collected on all ticket sales as

well as food and souvenir sales which occurred within the Town at the Playmill box office, in

person or over the telephone.

23. I n 2005, the Playmill began selling tickets online to its live theatre performances.

24. T h e Playmill utilizes a third-party online vendor called Vendini to handle all

online ticket sales. Vendini is located and provides its activities from San Francisco, California.

Purchasers of the tickets are located throughout the United States and abroad.

25. The P laymill has never collected nor paid resort tax on any ticket sales which

occurred over the internet, as these sales were not made "within the Town."

COMPLAINT - 4

The 2007 Audit

26. De l l inger 8c Gallagher, CPA's, located in Manhatten, Montana ("Dellinger") is an

agent or employee of the Town authorized to conduct audits of resort tax payments to the Town.

27. In 2 007, pursuant to the Town's request, Dellinger conducted an audit of the

Playmill's resort tax payments for the preceding fiscal year. During this audit, Dellinger

requested and reviewed the Playmill's bank statements, internal financial records, tax returns,

spreadsheets, and other sales information, including all records for the Playmill's internet ticket

sales (the "2007 Audit").

28. U p on information and belief, Dellinger is directed to review all business records

and activities in light of the resort tax ordinance to determine whether a business is complying

with the ordinance or whether a violation has occurred. Dellinger makes recommendations to

the Town Council regarding all findings of compliance or non-compliance so the Town can

"determine a deficiency" or otherwise.

29. A ft e r reviewing the records and business activities of the Playmill for all items

and ticket sales, including both box off ice and online ticket sales, during the 2007 Audit,

Dellinger concluded that there existed uncertainty as to whether the 2003 Ordinance applied to

online ticket sales and as a result, did not recommend any action to the Town.

30. N ei t her Dellinger nor the Town assessed or required payment of the resort tax

relating to the online ticket sales, nor did the Town issue any finding of non-compliance to the

Playmill for failure to collect and remit the resort tax on online sales. Rather, the Town did not

provide any communication to the Playmill, written or otherwise, following the 2007 Audit.

COMPLAINT - 5

31. Acc o rdingly and in specific reliance on the absence of a directive from the Town

or Dellinger pursuant to the 2007 Audit, the Playmill continued to collect and remit to the Town

only those resort taxes associated with box office ticket sales made within the Town.

The 2014 Audit

32. In 2 0 14, the Town notified the Playmill that it was conducting an audit for the

2013 resort tax year, and again required the Playmill to provide bank statements, internal

financial records, tax returns, spreadsheets, and other sales information for the year 2013 to

Dellinger for review.

33. The P laymill provided all requested financial documents to Dellinger.

34. O n or about February 19, 2015, the Town sent a letter to the Playmill claiming

that the Playmill had underreported sales in the amount of $590,864.00, and therefore owed

$17,725.92 in resort tax. The letter asserts the underreported sales relate exclusively to online

ticket sales. A true and correct copy of the February 19, 2015 letter is attached hereto as Exhibit

The Pla mill's A eal to the Town

35. A ft e r receiving the February 19, 2015, letter from the Town, the Playmill filed an

appeal with the Town clerk, contesting the amount of resort tax claimed by the Town.

36. O n A pri l 7, 2015, the Playmill, through its manager Roger Merrill, appeared

before the Mayor and the Town Council at a council meeting to request information regarding

the Town's interpretation of the 2003 Ordinance and to request that the Town not impose the tax,

especially in light of the 2007 Audit findings. The Town Council deferred the interpretation of

the 2003 Ordinance to its legal counsel, Jane Mersen. A true and correct copy of the April 7,

2015 Town Council Meeting Minutes is attached hereto as Exhibit C.

COMPLAINT - 6

37. D u r ing the April 7, 2015 Town Council meeting, Ms. Mersen stated that the 2003

Ordinance needed to be updated, primarily because the 2003 Ordinance does not provide a

method for appealing the amount or imposition of resort tax, but rather only provides for a

method to appeal any penalties and interest imposed along with the resort tax.

38. On A p r i l 13, 2015, Ms. Mersen sent the Playmill a letter reiterating the Town's

position stating that online ticket sales for a theatrical performance are "a service" subject to the

resort tax and the "service... is a luxury under the definition in both the Town's ordinance and

also Section 7-6-1503, MCA." A t rue and correct copy of the April 13, 2015 letter is attached

hereto as Kxhibit D.

39. On A p r i l 17, 2015, the Town Clerk, Lanie Gospodorek, sent the Playmill a letter

stating that unless the Playmill remitted the tax payment or made arrangements for the same, the

Town would not renew the Playmill's business license for the 2015-16 license year. A true and

correct copy of the April 17, 2015 letter is attached hereto as Exhibit E.

The Town's 2015 Amendment of the Resort Tax Ordinance

40. O n A p r i l 21, 2015, the Town Council proposed amendments to the 2003

Ordinance setting forth certain revised and additional terms of its resort tax.

41. On M a y 5, 2015, the Town adopted Ordinance No. 258 ratifying the previously

proposed amendments to the Town's resort tax ordinance (the "2015 Ordinance"). A true and

correct copy of the 2015 Ordinance is attached hereto as Exhibit F.

42. The 2 0 1 5 O rdinance expands the definition of " l uxuries" to i nc lude "al l

attractions such as arcades, bowling centers, concerts, movie/theater tickets and all concession;

event and entertainment tickets (regardless of the method or location of purchase)."

COMPLAINT - 7

The Town's Refusal to Issue the Pla mill a Business License

43. O n May 15, 2015, the Playmill applied for a renewal of its business license, as

required by local ordinance, submitting payinent along with the application.

44. M s . Gospodorek informed the Playmill that the Town would not grant the

business license until the Playmill paid the resort tax claimed by the Town in its February 19,

2015 letter.

45. As of t h e date of this f i l ing, the Town has refused to renew the Playmill 's

business license on the grounds that the Playmill has outstanding resort tax payments due for the

2013 year.

46. In addition, the Town has designated the Playmill as a business automatically

subject to a (third) resort tax audit for the year 2014.

COUNT ONK(Deciaratory Judgment and Injunctive Relief)

47. T h e Playmill repeats and incorporates by reference each and every allegation set

forth in the preceding paragraphs.

48. A dispute has arisen between the Playmill and the Town concerning the

applicability and validity of the Town's interpretation of the 2003 Ordinance, which was the

operative ordinance during the 2007 Audit as to online ticket sales and all other ticket sales for

live theatre performances at the Playmill.

49. An a c tual and substantial legal controversy exists between the parties with respect

to whether the Town can (a) impose a resort tax on live theatre tickets absent express authority

pursuant to state statute or the applicable ordinance; (b) expand the definition of "luxuries" under

the 2003 Ordinance to include live theatre tickets without engaging in the legislative process; and

(c) impose a resort tax on live theatre tickets sold via the internet.

COMPLAINT - 8

50. The Town's 2015 actions amending and expanding the 2003 Ordinance in order

to add previously missing terms including a definition of "luxuries" which now expressly

includes live theatre tickets and a clarification that goods and services sold via the internet are

sold "within the Town" for purposes of the resort tax, provides a direct admission from the Town

that relevant terms at issue in this lawsuit were not clear and/or present in the 2003 Ordinance.

51. The Town's reliance upon the 2003 Ordinance as a basis for demanding payment

of resort taxes for online ticket sales or any live theatre tickets sales 'violates Montana law and

the Town's own ordinance. See Canbra Foods Ltd. V. Montana Dept. of Revenue, 278 Mont.

368, 373, 925 P.2d 855, 858-59 (1996) (holding that "It]ax statutes are to be strictly construed

against the taxing authorities and in favor of the taxpayer.").

52. Mont. Code Ann. $$ 27-8-201 and 27-9-202 gives this Court the power to declare

(1) the respective rights of the Playmill and the Town under the 2003 Ordinance and (2) the

validity of the 2003 Ordinance, particularly as applied to live theatre tickets and online ticket

sales.

53. Ac cordingly, the Court should determine by declaratory judgment that:

a. The Town's interpretation and enforcement of the 2003 Ordinance is illegal

pursuant to Montana statute and local ordinance;

b. Mont. Code Ann. $ 7-6-1501 et seq. does not impose a resort tax on l ive

theatre establishments;

c. Online ticket sales are not sales "within a resort community or area" under

Mont. Code Ann. $ 7-6-1503;

d. The Town's 2003 Ordinance does not impose a resort tax on l ive theatre

establishinents;

COMPLAINT - 9

e. The Town's 2003 Ordinance does not identify live theatre tickets as a luxury

which is subject to the resort tax;

f. Online ticket sales are not sales "within the Town" under the 2003 Ordinance;

and/or

g. The Town's collection of resort taxes from the Playmill for all l ive theatre

tickets violates the express terms of the taxing authority granted to the Town

pursuant to Montana statute and local ordinance.

54. I n addition to the declaratory relief requested, the Court should enjoin the Town

&om refusing to grant the Playmill the business licenses necessary and required for legal

business operations.

55. The Town conducted the 2007 Audit and did not assess any resort tax against the

Playmill for its online ticket sales. Upon completion of the 2007 Audit, the Town did not assert

a claim for payment of resort taxes for online ticket sales. Accordingly, the Town implicitly

concluded the Playmill correctly interpreted the 2003 Ordinance as not applying to online ticket

purchases.

56. The Playmill continued its practice of not collecting and remitting the resort tax in

reliance on the 2007 Audit which made no findings or adjustment for the Playmill's failure to

collect and remit the resort tax for online ticket sales.

57. T h e T own has reversed and materially altered its position regarding the

applicability of the 2003 Ordinance to the Playmill's online ticket sales, to the detriment and loss

of the Playmill.

COMPLAINT - 10

58. T h e Town should be estopped &om materially altering its own 2007 interpretation

of the 2003 Ordinance or seeking payment from the Playmill for online ticket sales prior to the

enactment of the 2015 Ordinance in May, 2015.

COUNT TWO(Bad Faith)

59. T h e Playmill repeats and incorporates by reference each and every allegation set

forth in the preceding paragraphs.

60. To t h e Playmill's detriment the Town has reversed the findings and position it

took during the 2007 Audit regarding the applicability of the 2003 Ordinance to the Playmill's

online ticket sales and has relied solely on its 2014 re-interpretation of the 2003 Ordinance to

support its demand for payment of resort taxes and refusal to issue a business license.

61. A s s t a ted herein, the Town has acted frivolously and without legal basis to

deprive the Playmill of the value of its ticket sales and has threatened to substantially interfere

with the Playmill's sole source of income by refusing to grant the business license necessary to

operate as a legal business in the Town.

62. B y demanding payment of a resort tax for online ticket sales and refusing to grant

the essential and necessary business license to the Playmill as leverage to force the Playmill to

submit to the Town's changed interpretation of its ordinance without due process of law, the

Town has acted with bad faith and with the specific intent to deprive the Playmill of the value of

its primary income source.

63. The T own has continually and repeatedly asserted positions that it knew or

reasonably should have known were lacking in legal basis under the 2003 Ordinance or Montana

statute.

COMPLAINT - 11

PRAYER FOR RELIKF

WHEREFORE, the Playmill prays for entry of judgment against the Town as follows:

1. Tha t judgment be entered in favor of Playrnill on all claims for relief raised

herein, specifically, that declaratory judgment be entered as follows:

a. The Town's interpretation and enforcement of the 2003 Ordinance is illegal

pursuant to Montana statute and local ordinance;

b. Mont. Code Ann. $ 7-6-1501 et seq. does not impose a resort tax on live

theatre establishments;

c. Online ticket sales are not sales "within a resort community or area" under

Mont. Code Ann. $ 7-6-1503;

d. The Town's 2003 Ordinance does not impose a resort tax on l ive theatre

establishments;

e. The Town's 2003 Ordinance does not identify live theatre tickets as a luxury

which is subject to the resort tax;

f. On l ine ticket sales are not sales "within the Town" under the 2003 Ordinance;

g. The Town's collection of resort taxes fiom the Playmill for all l ive theatre

tickets violates the express terms of the taxing authority granted to the Town

pursuant to Montana statute and local ordinance;

h. The Playmill does not have to pay the resort tax as demanded by the Town for

online ticket sales for the year 2013 in the amount of $17,725.92; and/or

i. The Town illegally assessed and collected resort taxes from the Playmill for

the its sales of ticket in the theatre box office of the Playmill since at least

2005, in an amount to be determined at trial; and/or

COMPLAINT - 12

2. The Town is estopped from refusing to renew the Playmill's business license

pending the Court's decision on the interpretation of the 2003 Ordinance as requested herein;

3. Dama ges in an amount to be determined at trial for resort taxes the Playmill

overpaid to the Town in relation to ticket sales made at the box office;

4. All c osts associated with briny'ng this suit pursuant to Mont. Code Ann. $$ 25-

10-101 and 27-9-311;

5. Atto rney's fees pursuant to Mont. Code Ann. $f 25-10-711 and 27-8-313;

6. For s uch other and further relief as the Court deems just and proper.

DATED THIS 2nd day of July, 2015.

PARSONS BEHLE <0 LATIMER

ByMaria O. Hart

Attorney for Plaintiff

COMPLAINT - 13

Exhibit A

Chapter 3.12 RESORT TAX Page 1 of6

Chapter 3.12RESORT TAX

Sections;3.12.0103.12.0203.12.0303 12 0403.12.0503 12.0603.12.0703.12.0803.12.0903.12 1003.12.1103.12.1203.12 1303.12.1403.12.1503.12.1603.12.1703.12.1803 12.190

3.12.010 Created-General provisions-Imposed

A. There is imposed. a resort tax on the retail value of all goods and services sold within the town bythe following establishments:

Created — General provisions-lmposed.Definitions.Imposed.Luxuries tax.Rate-Duration.Resort tax payment.Collection duties and responsibilities.Resort tax collection fee.Records and forms.Preservation of records.Random audit.Appeals.Exemptions.Use of tax moneys.Reduction of property tax levy.Property tax relief fund.Resort tax administration.Violation-Civil perialties.Violation-Criminal penalties.

1. Hotels, motels, and other lodging or camping facilities;

2. Restaurants, fast food stores, and other food service establishments;

3. Taverns, bars, nightclubs, lounges and other public establishments that serve beer, wine,liquor or other alcoholic beverages by the drink; and

4. Establishments that sell luxuries must collect a tax on such luxuries. (Ord. 211 $1. 2003;Ord. 112 g1, 1985)

3.12.020 Definitions

A. The terms "luxuries," "medical supplies," and "medicine" shall be defined as set forth in MCASection 7-6-1501.

B. All references to the "resort tax" and "tax" in this chapter shall refer to the resort tax passed bythe electorate of West Yellowstone and as enacted by the ordinance codified in this chaptei'. (Ord.211 g2, 2003; Ord. 113 g1, 1985; Ord. 112 ll2, 1985)

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.Chapter 3.12 RESORT TAX Page2of6

3.12.030 lmposed.

There is imposed a duty on each operator of any of the establishments mentioned in this chapter tocollect, upon sale, the tax imposed as set forth in this chapter. (Ord. 113 g2, 1985)

3.12.040 Luxuries tax

Each business subject to the tax shall collect the same on the retail value of all goods and servicessold within the town by the establishments set forth in Section 3.12.010. All luxuries shall be taxed,and luxuries shall mean any gift item, luxury item, or other item, or other itern normally sold to thepublic or to transient visitors or tourists; but the term does not include food purchased unprepared orunserved, medicine, rnedicai supplies and services, or any necessities of life. Luxuries shall be.furtherdefined to mean sporting goods, rentals on.snowmobiles, automobiles, all-terrain vehicles,motorcycles; bicycles; skls, boats; campers, boat motors:; i'ecreational services;-including float trips,.guided trips and tours; all souvenir.arid localized'items'such as;imprinted hats and T-shirts andcurios; all nonfood items such as/cleaning'supplies, ho'usewares (other than household appliances),automotive supplies and parts; ice retail liquor, beer and:wine,.except that sold at.state stores; (Ord.211 g3,2003; Ord. 113tJ12, 1985)

3.12.050 Rate-Durat ion.

A. The exact rate of the resort tax is three percent.

B. The duration of the resort tax as approved by the voters on November 5, 1985 is twenty yearsfrom its effective date. The.effective date of the resort tax is January 1, 1986.

C. The duration of the resort tax renewal as approved by the voters on November 5, 2002, is twentyyears from its effective date. The effective date of the resort tax renewal is January 1, 2006. {Ord. 211g4, 2003; Ord. 112 Q3, 4, 5, 1985)

3.12.060 Resort tax payment

The resort taxes collected by a business in any month are to be paid to the town on or before thetwentieth day of the following month, or if such day falls on a Saturday, Sunday or holiday, then onthe next business day. Resort tax payments sent by mail or private courier must be received by thetown on or before the twentieth day ofeachmonth, or if such day falis on a Saturday, Sunday orholiday, then on the next business day. (Ord. 224 $1, 2007: Ord. 219 $1, 2006: Ord. 113 g3, 1985)

3.12.070 Coilection duties and responsibi l it ies

A. The office responsible for receiving and accounts for the resort tax receipts is the town clerk andtreasurer.

B. The operations manager and his/her agents shall be responsible for enforcing the collection ofresort taxes and shall be responsible for overseeing the methods and procedures to be used inenforcing the collection of the resort taxes. (Ord. 172 $1, 1995: Ord. 113 Q4, 5, 1985)

3.12.080 Resort tax collection fee.

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Chapter 3.12 RESORT TAX Page3 of 6

Each collecting merchant shall be entitled to withhold two and one-half percent of the resort taxescollected to defray costs for'collecting the resort tax, providing that resort tax payments are timelymade in accordance with Section 3.12.060. The resort tax collection fee may be withheld by thebusiness at the time of paying the tax to the town. Failure to withhold the fee shall constitute waiverand forfeiture of the same. (Ord. 222 $1, 2007: Ord. 21S g2, 2006: Ord. 113 $7, 1985)

3.12.090 Records and forms

The town shall.provide each business that is required to collect resort tax.with the proper forms forreporting and making payment to the town. Resort tax payments to the town shall be tabulated andaccounted for on forms prescribed and furnished to the business by the town. The records and formsheld by the town shall be confidential, and shall not be open to inspection by the public unless soordered by a court of competent jurisdiction. Each business that is required to collect resort tax must'maintain adequate accounting records and pay the resort tax to the town on the forms provided bythe twentieth day of the following month. The accounting records maintained must be accurate,venTiable, and provide a reasonable audit trail. Failure to maintain adequate accounting recordsconstitutes a violation of this chapter. (Ord. 219 g3, 2006: Ord. 201 g1, 1999: Ord. 119 g1, 1986; Ord.113 58, 1985)

3.12.100 Preservation of records

Every business required to collect and pay resort tax shall keep and preserve for a period of not lessthan three years all records necessary to determine the accuracy of the taxes paid, and shall maketheserecords available for audit or inspection on its business premises at all re'asonable times. Anyaudit'or inspection shall be conducted in West Yellowstone on the premises of the business orestablishment collecting the resort tax or at such other location as the town may determine. (Ord. 21Sf4, 2006: Ord. 201 g2, 199S: Ord. 113 $10, 1985)

3.12.110 Random audit.

Periodic random audits shall be conducted under the direction of the mayor or his designatedrepresentative and all business operators shall cooperate in all respects in the conduct of the audits.Any random audit shall be for the previous calendar year, and shall be conducted in WestYellowstone on the premises of the business or establishment collecting the resort tax or at suchother location as the town may determine. If the audit determines a deficiency it will be at thediscretion of the town to audit the previous two years and require a follow up audit on the nextreporting year. Failure to cooperate in any audit or inspection of records, including the failure to makethe appropriate records available on the business premises in West Yellowstone, shafl constitute aviolation of the provisions of this chapter. (Ord. 201 g3, 1999: Ord. 113 g9, 1985)

3.12.120 Appeals

Any business may appeal to the town council any.assessment of penalty,or interest;.provided, thatnotice of appeal in writing is filed with the town clerk within thirty days of the serving or mailing of thedetermination of the amount of penalty and interest due. The town council shall on the nextimmediate regular town council meeting fix the time and place for hearing the appeal and the townclerk shall cause notice in writing to be personally served by a peace officer upon the operator; Thefindings and decision of the town council shall be final and conclusive and shall be served upon the

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Chapter 3.12 RESORT TAX Page 4 of 6

appellant in the manner prescribed for service of notice of hearing or by certified mail directed to thebusiness operator's last known address. Any amount found to be due shalt be immediately payableupon service of the findings and decision. (Ord. 113 g11, 1985)

3.12.130 Exemptions.

Notwithstanding Section 3.12.040, however, the following goods and services shall be exempt fromthe tax.

A. Utilities and utility services;

B. Medical supply services and medicine;

C. Wholesale merchandise for resale at retail or used in the purchaser's bdsiness as supplies;

D. Gasoline and other motor vehicle fuel;

E. Liquor sold at state liquor stores;

F. Propane and similar home fuels;

G. Automobiles, trucks, snowmobites, motorcycles, all-terrain vehicles, bicycles, boats, outboardmotors and chain saws;

H. Labor on automobiles, trucks, snowmobiles, motorcycles, all-terrain vehicles, bicycles, boats,outboard motors and chain saws;

. I: All nonrecreatiohal,labor, services.and nonre'creational,state'licensed professions.and trades;::

J. All payroll and business and labor costs;

K. Lumber, building supplies and tools, and other tools;

L. Household appliances;

M. Any hotel, rnotel, campground or other lodging facility occupancy, with respect to any person orpersons who occupy a room or a space for a period longer than thirty consecutive calendar days;provided, that such person certifies prior to occupancy that the occupancy will exceed thirtyconsecutive calendar days and does in fact exceed thirty consecutive calendar days;

. N. .AII sales of,goods from catalogs paid for from.outside of th'e boundaries of the town; that is;catalog sales of goods shail be.exempt.except,to.the extent that the goods ar'e'paid for and.the„„exchange,is made within.the.,bou'ndaries,of the town; (Ord. 117 H2, 3, 1986; Ord. 113 $13, 1985)

3.12.140 Use of tax moneys

A. The tax moneys derived from the resort tax may be appropriated by the town council for anyactivity, undertaking, or administrative service that the municipality is authorized by law to perform,including costs resulting frorn the imposition of the tax.

z:-' t

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Chapter 3.12 RESORT TAX Page5 of6

B. There is established a marketing and promotion (MAP) fund for the town. Two and one-halfperceht of the three percent resort tax c'ollected by the collecting merchant shall be dedicatedexclusively to the MAP fund, which fund shall'be used solely for the marketing and promotion of WestYellowstone and the surrounding area, as well as the associated costs of administering the fund, The.town council may appropriate additional resort tax receipts to the MAP fund.

C. The town council shall by resolution establish a board of not less than three nor more than sevenqualified persons to oversee the MAP fund. At least one member of this board shall be a sittingmember'of the town council or the council's designee. The board shall establish policies andprocedures for its operation and the general rnanagement of the fund in accordance with the council'sresolution establishing the board. The board shall also select individual marketing and promotionprojects and approve expenditure of funds for such projects, subject to approval by the town council..(Ord. 222 g2, 2007: Ord. 112 g6, 1985)

3.12.150 Reduction of property tax levy

Annually anticipated receipts from the resort tax must be applied to reduce the municipal property taxlevy for the fiscal year in an amount equal to five percent of the resort tax revenues derived during thepreceding fiscal year. (Ord. 112 $7, 1985)

3.12.160 Property tax relief fund

In the'.event the town receives more resort tax revenues than had been included in the annualmunicipal budg'et; it shall establish a mu'nicipal property tax relief fund, and all resort tax revenuesreceived in excess of the budget amount must be placed in the fund. The entire fund must be used toreplace municipal property taxes in the ensuing fiscal year. (Ord. 112 g8, '1985)

3.12.170 Resort tax administration

The town shall administer resort tax collections according to the following rules

A. Resort tax payments shall be made to the town finance office by the established deadline.

B. Failure to report or make resort tax payments by the payment deadline shall result in forfeiture ofthe resort tax collection fee for the month in which the payment is due.

O':.. Failure to pay resort tax before the end of the month in which the payment is due shall result inan administrative fee of either: (1) twenty-five dollars for businesses with gross sales of one thousandfive hundred dollars or less for the reported month; or (2) fifty dollars for businesses with gross salesin excess of one thousand five hundred dollars for the reported month, which shall be in addition toany civil penalties awarded to the town in a suit for collection of resort tax.

D. At the end of each subsequent month after the original payment is due, the town will assess anadditional administrative fee equal to ten percent of the sum of any delinquent resort tax andpenalties, which shall be assessed on the first business day of the subsequent month. This and alladministrative fees shall be assessed in addition to any civil penalties awarded to the town in a suitfor collection of resort tax.

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• .Chapter 3.12 RESORT TAX Page6of6

; E. . The,'town:rnay ievoke the busiriess license.of any person or business that violates any provisionof this chapter; The town may revoke a violator's.'business license either through the administrativeprocedure described in Chapter 5;04ior,"through a court order>oijjudgment in accordance,with Section

. 3.1'2.186. (Ord. 250 $1, 2010: Ord. 219 g5, 2006: Ord. 211 g5, 2003; Ord. 112 g9, 1985)

3.12.180 Vlolation-Civil penalties.

For failure to report taxes when due, failure to pay taxes when due, and other violations of thischapter, the town may seek the following penalties or remedies:

A. A court judgement in the amount of all unpaid resort taxes, including any unpaid administrativefees assessed under Section 3.12.170 and any resort tax collection fees forfeited in accordance withSection 3 12.080;

B. Interest at the rate of ten percent per annum on unpaid resort taxes or administrative fees fromthe due date or assessment date until paid;

C. A civil penalty in the amount of fifty percent of the unpaid resort taxes, which includes forfeitedresort tax collection fees, plus all costs and attorney's fees incurred by the town in any court action;

D. An order requiring the delinquent business to undergo a financial audit by the town or itsrepresentatives to determine the proper amount of resort taxes due, including payment by thebusiness of all audit costs and expenses incurred by the town or its representatives;

E. Revocation of the violator's town business license, either. throu'gh judicial order 'or the:administrative procedure described in Chapter 5.0'4;

F. Any other penalty, remedy or judicial relief to which the town is entitled. (Ord. 219 g6, 2006: Ord.207 g3, 2000: Ord. 113 g6. 1985)

3.12;190 Violation-Criminal penaltiesA'p'erson'.or-busin'ess violating"any provision of this chapter is guilty'of a misdemean'or and subject toa fine.not exceed.one thousand dollars.for each violation, or imprisonment'not to exceed.six monthsfor'each violation, oi both. (Ord. 219 g7, 2006)

The West Yellowstone Town Code ls current throughOrdinance 257, passed November 20, 2012.Disclaimer: The Town Clerk's Office has the official version of theWest Yellowstone Town Code. Users should contact the TownClerk's Office for ordinances passed subsequent to the ordinancecited above.

http://www.codepublishing.com/MT/WestYellowstone/html/westyellowstone03/WestYell... 5/14/2015

Kxhibit B

TOWN OF WEST YELLOWSTONEMaNTAN

Februa~ 19, 2015

Playmill TheatreBoger 4 He idi Merr i l l3825 E. 800 N.Rigby, ID 83442

RE- Resort Tax Audit

Dear Roger 8r, Heidi,

Attached you will find notes by the Auditors showing Sales subject to resort tax forthe year ended December 31, 2013 and sales reported to the Town of WYellowstone. The Gndings show that Playmill Theatre under repo sal e s by$590,864.00. As a result, Resort Tax was underpaid in the amou of $17,725.92.Ordinarily we would simply have your remit this amount on your ex t mont 'resort tax remittance. Oiven the amount due however, we understan t a t youmight need to make arrangements with the Town. Please contact the Town ofacesy Friday March 20, 2015 if such arrangements need to be made. Outstanding

resort tax usually precludes the issuance of a business license and therefore it isimperative that we hear from you before the start of the new business licenseseason.

Due to the nature of the under-reporting The Playmill Theatre will be included inthe audit for the tax year 2014 which is scheduled to be conducted the fall of 2015.

If you have any questions please contact the Town Office at (406) 646 7'195.

Sincer,

Sheii HoltzenTown of West Yellowstone

Playmill TheatreNotes to Schedule of Sales

Note 1 -Q asis of Accounhng

The schedul

accounting principles;

Note 2 - Reconciiiation of Sales

. for federalnera11 accepted.

ule of sales have been prepared on the accounting basis used by the Cornpanyincome tax p~rposes, which is a comprehensive basis of accounting,other than gene

~,,ofr1aThe followi g is a econciliation between s«s as ratre and e ort tax sales as they are defined un«

881,341Sales per the financial recordsfor the year ended December 31, 2013

Less exempt sales:

Sales subject to resort taxfor the year ended December 31, 2013

Sales reported to the Town of West Yellowstonefor the year ended December 31, 2013

(Over) under reported sales

881,341

290 477.

$ 59 0 864

Sch D

Kxhibit C

Town of West YellowstoneTuesday, April 21, 2015

West Yellowstone Town Hall, 440 Yellowstone Avenue7:00 PM

TOWN COUNCIL MEETING AGENDA

April 14, 2015 Work Session 0o

Pledge of AllegiancePurchase OrdersTreasurer's Report/Securities Report mClaims ~Consent Agenda: Apri l 7, 2015 Work Session & Town Council Meeting ao

Business License Applications

Advisory Board Report(s)Operations Manager & Department Head ReportsAssignments ReportComment Period

Geyser Inn ~

• Public Comment• Council Comments

UNFINISHED BUSINESS

Proposal from Hebgen Basin Fire District to purchase the Emergency ServicesBuilding at 400 Yellowstone Avenue for $200,000 (Tabled 1/20/15)

NEW BUSINESS

Ordinance No. 258, Resort Tax, 1" Reading

Resolution No. 661, Public Records Request Policy

Recruitment Services Contract, Prothman Company

Executive Session with Town Attorney to discuss pending litigation, Closed to the Public

Correspondence/FYIMeeting Reminders

Discussion/Action a>

Discussion/Action m

Discuss>on/Acbon ao

Discussion/Action ~

Policy No. 16 {Abbreviated)Policy on Public Hearings and Conduct at Public Meetings

Pu I' earin u l i c MeetinA public hearing is a formal opportunity for citizens to give their views to the Town Council for considerationin its decision making process on a specific issue. At a minimum, a public hearing shall provide for submissionof both oral and written testimony for and against the action or matter at issue.

Oral CommunicationIt is the Council's goal that citizens resolve their complaints for service or regarding employees' performanceat the staff level. However, it is recognized that citizens inay from time to time believe it is necessary to speakto Town Council on matters of concern. Accordingly, Town Council expects any citizen to speak in a civilmanner, with due respect for the decorum of the meeting, and with due respect for all persons attending.

• No member of the public shall be heard until recognized by the presiding officer.• Public comments related to non-agenda items will only be heard during the Public Comment portion of

the meeting unless the issue is a Public Hearing. Public comments specifically related to an agenda itemwill be heard immediately prior to the Council taking up the item for deliberation.

• Speakers rnust state their naine for the record.• Any citizen requesting to speak shall limit him or herself to matters of fact regarding the issue of

• Comments should be limited to three (3) minutes unless prior approval by the presiding officer.• If a representative is elected to speak for a group, the presiding officer may approve an increased time

aflotment.• If a response from the Council or Board is requested by the speaker and cannot be made verbally at the

Council or Board meeting, the speaker's concerns should be addressed in writing within two weeks.• Personal attacks made publicly toward any citizen, council member, or town employees are not

allowed. Citizens are encouraged to bring their complaints regarding employee performance through thesupervisory chain of command.

concern.

Any member of the public interrupting Town Council proceedings, approaching the dais without permission,otherwise creating a disturbance, or failing to abide by these rules of procedure in addressing Town Council,shall be deemed to have disrupted a public meeting and, at the direction of the presiding officer, shall beremoved from the meeting room by Police'Department personnel or other agent designated by Town Council orOperations Manager.

General Town Council Meetin Information• Regular Town Council meetings are held at 7:00 PM on the first and third Tuesdays of each month at

the West Yellowstone Town Hall, 440 Yellowstone Avenue, West Yellowstone, Montana.• Presently, informal Town Council work sessions are held at 12 Noon on Tuesdays and occasionally on

other mornings and evenings. Work sessions also take place at the Town Hall located at 440Yellowstone Avenue.

• The schedule for Town Council meetings and work sessions is detailed on an agenda. The agenda is alist of business items to be considered at a meeting. Copies of agendas are available at the entrance tothe meeting room.

• Ag endas are published at least 4S hours prior to Town Council meetings and work sessions. Agendasare posted at the Town Offices and at the Post Office. In addition, agendas and packets are availableonline at the Town's website: www.townofwestyellowstone.com. Questions about the agenda may bedirected to the Town Clerk at 646-7795.

• Of fi c ial minutes of Town Council meetings are prepared and kept by the Town Clerk and are reviewedand approved by the Town Council. Copies of approved minutes are available at the Town Clerk'soffice or on the Town's website: www.townofwestyellowstone.com.

04/17/1512 (32(54

'IQWN OF WSST TELLONSIQNR Pagel 1 of 3Report ID( L160Cash Report

For the Accounting Periodl 3/15

saginning Trsnsf srsSalaaoa Reosivsd In

rransfers SndingDiebursed Out BalanceFund/Aooount

1000 General Fund101000 CASH101100 Investmeats - CD's101300 Investments -' Noney Narket Accou

101500 Investment-STIP103000 Petty Cash103100 Town Ofi'ice

103200 Petty Cash/WY Police Dept103400 Petty Cash-Recreation

Total Fund

598,883.560.00

158,9$1.13286. 12

0.000.000.000.00

758, 150. 81

299.990.000.000.000.000.000.000.00

299.99

159,398.710.00

200,000.00179,000.00

0.000.000.000.00

538,398.71

25$,624.11O.000.000.000.000,00O. 000. 00

258,624.11

1,170.27214,344.63529,041.86655,742.86

50.0050.0050.00

150.001,400,699.62

-179. 890. 46114,344 • 63570, 060.13$34,456.14

50.0050.0050.00

15D.DD1,439,271.64

2100 Local Option Taxation-Resort Tax101000 CASH101300 Investments - Noney Narket Accou101500 Investment-STIP102200 Bond Reserve Caeh Acct-104102215 STIP Investment-Rev Bond current101225 STIP Reserve Acct Town Hall 101

56,300.760.28

263,620.0011, 329.6276, 414. 32

135r 996. 31544,671,29

213, 113.290.00

130,000.000 19

11.0$7.2430.70

364 <231.42

O.DD0,000.000.000.000.00

278,46$.3S0.00

11,0'70.000.00

65 • 21$.470.00

354,756.85

0.000.000. 000.000.000.00

945.670.2$

3$1, 550. 0012, 329. $131,293.09

136,027.01S54, 145. 86Total Fuad

2101 Narketing 6 promotlone (NAP)101000 CASH101300 Investments - Noney Narket Accou101500 Investamnt-STIP

41, 070. 892,015,37

65,900.00109,9$6.26

3,872•000.300.00

3,$72.30

0. 00O.OD0.00

0. 000.000.00

9,904.250.000.00

9,904,25

36.038.642,015.61

65,900.00103,954.31Total Fuad

strict)2102 TSID (Tout'ism Suainese Ielprovelaent Di101DOO CASH

2111 Of f Street Parkiag11,580.00 0. 00 341.40 9,665.08 11,619.8910,052.37

101000 CASH101500 lnvestment-STIP

1,$20.766$,735.3370,556.09

0.0315.5115. 55

0. 000.00

0.000.00

0.000 • 00

I, $20.1968,750.8570(571. 64Total Fund

2210 Parks 4 Recreation5,737.36 1,700.0D 0.00 0.00 0.00 7,437.36101000 CASH

2211 Parks/Rec Donations - Teea Center5,15S.41 0.0$ 0. 00 0 00 0.00 5, 15$.491010DD CASH

2211 Parks - Volleyball Court3, $$1. 77 0.06 0.00 0.00 0.00 3.8$2.$3101000 CASH

2211 CCmlaunity Garden551 76 0.01 0.00 0.00 0.00 551.77101000 CASH

1214 Smoking Waters Day Camp -scholarehips2,360.31 0,04 0.00 0.00 0.00 2,360.35101000 CASH

1220 L(brary101000 CASH102130 Donations for Rxteneion Svcs Lib103000 Petty Cash

6,264.601,4S0.09

50.007,794.69

47,217,300.020.00

47,217.32

0. 000.000.00

0.000.000.00

16,568.19O.OD0.00

16,56$.29

36r 913 ' 611,4$0.11

50.0038,443.72Total Fu nd

2240 Cemetery101000 CASH101500 Investment -sTIp

5,211.846,$31.15

12,042.99

0.0$0.000.0$

0. 000. 00

0.000.00

0.000.00

5,211. 926,831.15

12,043.07Total Fund

Di/17/1512:32>54

IOMN OF MEST YELLGHSTOMS Psge> 2 ot IRepo'rt ID > L140Cash RepOrt

F or the Accounting Period: 3 / 15

SogianingSalanco ReceivadFund/Account In

Tsauatosa Tronetase SndingSslanoaDiebureed

2390 Dxug Forfeiture101000 CASH101500 Investment-6TIP

2,233.$427,858.$530,092.69

I•000•000.00

1,000.00

0. 000. 00

0. 001.000.001,000.00

1.000,000,00

3,000.00

231.$426,85$.8527>092.•9Total Fund

2392 CDSG-Local Source101000 CASH101500 Inveetmeat STIP

11,S05.1168, 822 .1280,628.49

175.1$0.00

175.18

0.000.00

0.000.00

0.000.00

11, 980. 954$, 822.1280,803.67Total Fund

2101 Cemetery Perpetual Care (7050)

101000 CASH101540 Inveetment-STIP

1,846.9535,924.8237>191.77

0.034.118 • li

0.000.00

D. 000.00

O.000•00

1,866.9$35,932.9337,799.91Total Fuod

2820 Gas Taa Appcrtionment101000 CASH101300 Investmenta - Noney Narket Ac101500 Investsent-STIP

9>092.9310,027.3645,005.•184,125. 90

2,487.041.48

li • 672,503.19

0. 000.000.00

0.000.000.00

O.DO0.000•00

11,579.9710.028.$465,020.2$86.629.09Totel Fuud

2850 911 smsrgency101000 CASH101500 Inveetsmnt-STIP

-10, 044.770•84

-10,043.93

D.DD0•00

0.000.00

D.DD0.00

l. 112.210.00

1,112.2'1

11. 157. 040.$4

11, 156.20Total Fund2917 Crlme Victime Assistance

101000 CASM3050 GO Sond

101000 CASH101300 Investments - Noney Narket Accou101500 Inveetment-STIP

20.053.67

90,494.07$4,223.4247,464.32

222, 381. 81

414 • 5412.4710 • 76

437. 71

0.00 0.00

0.000 000,00

0.00

0.00D.OD0.00

0.00

0.000.000.00

90, 908. 6184.235.8947,675.08

222,$19.58

20,053.61

Total Snnd4000 Capital Projects/Hquipment

101000 CASH101900 Investment -STIP

6. 70S • 4188,135.0594,S43.46

0.0$19. 9019. 98

0.000.00

0.000.00.

1.200.000.00

1,200.00

5,508.4 •SS, 154,95 .93,6$3:44Total Fund

4060 puhlic Horks Eguipment Replacemeu101000 CASH101500 Inveatamnt-STIP

1,255.75238. 01

1,•93.76

0.000.050.05

D. 000.00

0.000.00

0.000.00

1,255.15236.06

1, • 93.81'total Fund4010 Parkway Construction/Ntn

101300 Investments - Noney Narket101500 Investment"8?IP

Accou 2. 761. 654,058.296,819. 94

0 • 410.921.33

0.000.00

0. 000,00

0. 000.00

2,762.064,059.216. 821. 27Total Fund

4075 Street Conetruction /Maintenance244,214.2$ 55.58 0.00 0.00 0.00 246.269.86101500 Investment -STIP

5210 Mster Operating Fund1D1000 CASM101300 Inveatsmnts - Noney Narket1D1500 Investment-STIP102245 Replacaueut 6 Oepreciation Ra

Accou67,553.1110,027.36

182,193.24148,701.49408,477.40

17.525.701.48

41 • 1333.5&

11, 601.87

0.00D.DO0.000.00

0.000.000.000.00

9,899.640.000.000.00

9,899.84

75,178.9710,028.$4

182.234.3714$>737.25416, 179. • 3xotal Fund

04/17/1511i33c54

TOWH OF WEST YELLOWSTONE Fagec 3 ot 3Report IDc LlloCaeh Report

For the Accounting Pericdi 3 / 15

Transters TranatereFund/Account Reoeived Xn OutOfabursad

5220 Water Replacement Depreciation Fund101000 CASH101500 Investment-sTIP

11. 077,00111,839.23222,916.23

0.0047.5347,83

0. 000. 00

0.000.00

0.00 11, 0' 7 7 .000 • 00 111, 687. 06

222,964.06Total Fund5310 Sawer cperating Fund

101000 CASH101300 Investments - Iloney Narhet Accou101500 Investmsnt-STIP101510 Had Add construction-sTlp102245 Replaceaent 6 Depreciation Ent.

130,399.5464, Osl.36

365,999.7560, 487. 16

129, 921. 61750,892.62

41,535.369.49

50,082.6213.6629.32

91,670.45

1, 027 • 300.000•00o.oo0•00

1,027.30

50,000.000.000.000.000.00

So,ooo.oo

12, IC7.66O. 000. 00O.00O. 00

22,l67.66

100, • 94. 5464.O91.95

416,082.3760.501.02

129,950,93771, 122. 71Total Fund

5320 Sewsr Replacement oeqreciation Fund101000 CASH101500 Inveatment•STIP

322.00270,185.59270•507 59

0. 0060.9960.99

O.oo0.00

0. 000.00

0.00 312.000 .00 270, 24 6 . 58

270,568.58lotal Fund7010 Social Services/Help Fund

101000 CASH 1,079.41 0.00 0.00 329. 80 26, 61 4 . • I25,866.207195 Court Collections Trust Acct

101000 CASH 0.00 0.00 0.00 0 • 00 11, 80 C • 4911,806.4974 58 Court Surcharge HB17C

101000 CASH7467 HT Lacc Entorcument Academy (NLEA)

O. 00 0.00 0. 00 0 .00 15, 100. 0 015, 100. 00

101000 CASH 0.00 0.00 0. 00 14,984.00I • , 9 84 . 0 07465 publ)c oetender Fee

101000 CASH7469 City Court - Judge Srandis

0. 00 0. 00 0.00 O. 00 2, 461. 002,461. 00

101000 CASH7910 Payroll Fund

1,765.00 0.00 0.00 1,420•00 6,881.00C,$36.00

101000 CASH O. 00 197, 615. 99 232,271.86 0 00 -6,697.8727,960.007930 Claims Fund

101000 CASH 0.00 135r248.02 144,066•57 9,016.4617.835.01

Tatals 4,S01,810.32 1,303,193. ll 334, 191. 30 I,320,843.39 334, 191. 30 •,784,1CO.37

• ~ • Transtera In and Transters Out columns should match. There are a couple exceptfona to thisc 1) Canceled Electronic Checha and1) Payroll Jouznal vouchera that include local deductions set up with receipt accounting, please aee cash rsconciliatfon procedurein manual or call to r more details.

84/13/2815 86 :58 4866 464977 FIRST SECLIRITY BAM< PAGE 81/Bl

IFlreg Secll~ I

REPURCHASE CONFlRMATION

Treasurer's OfficeTown of West YellowstoneP.O. Box 1570.West Yellowstone, MT59758vla Fax: 646-7511

Tax IO Number: 81-0299400

REPURCHASE CONFIRbhATION

ABreement Number:Trade Date:

Settlement Oate:Maturlty Oate:

Repurchase Rate:

Current Balance:ued lnterest:

607229004/10/20154/10/20154/18/2015

0,036% tThe avarage invastrnent rtta for Bl-day T-BPls, adjusted weekly.)

$541,286.26$5.16

SECURITIES DESCRIPTlON

allatln County, MT SD 044Madison County, MT K-12 SDLake County, MT SD tttM

MarketCUSIP Rats Matu Par Value

36370NBL8 3.00' 6I15 I2016 $2 00,000 $202, 98955734RAZO 2.00% 7I1/2017 $376,000 ' $388,801509405872 2.00% 7l1 /2016 $300 ,000 $30 2 871

82 661

Fractional Interest in Securities': N4A

"Froctional Interest c ((Current Balance)/(Marlret Value)J 8'

This Repurchase Agreement ls not a deposltand is not covered by FDIC depositinsurence or the FDICTransaction Account Guaranty Program. In the event of a bank fallvre, the Town of M/est Yellowstone wlllbecome the owner of the Securltles, or obtalns o perfected securlty Interest in these Securitles.

Operatlng Account InformationAccount Number:

Date:Balance;

Current Rate:Accrued Interest:

607228924/13/2015$9,565.54

$0.00

Money Market Account lnformationAccount Number:

Date:Balance:

Current Rate:Accrued Interest:

606062854/13/2015

$702,207.290.19%

$43.866.00%i

04/17/1515I5$I09

TOWN OP NEST IELLOWSTONEClaim Approval List

PageI 1 of 6RepOrt ID: AP100

For the Accouncing periodi • /15

.. . over speat expendicure

Claim vendor 6/Name/ Document 8/ Di sc 8

Line 8Cash

po 8 Fund org Acct object Proj Accountcheck Invoice 8/Inv Dare/Dascription

4079$ 155L Thyssenkrupp ElevaCor Corp3001754829 04/OL/15 elevator mainc-Povah

38$•273$$.17 • POVAW 1000 411155 350 101000

40791 246 Utilities Underground Location5035295 03/31/15 axcavation notifications

5035295 03/31/15 excavation notifications

20.0210.0110.01

NATERSEWER

430500 357 101000• 30600 357 101000

52105310

4 07 9'2 2$4$ Eaeting, Xauffman 8 Mersen, PC

bill spans services for 3 months04/D5/15 legal sarvices04/05/15 postage/copies04/05/15 phone/f ax04/05/15 travel

19,500.49

LEGALLEGALLEGALLEGAL

1000100010001000

• 11100411100411100411100

351S70345373

1010DO101000101000101000

19, 317.5080 • 41

3. 90• $.6$

40797 255$ Rebgea Basin Pire District

04/15/15 April 2015•5,563.00

45.563.00 1000 410400 357 101000FIRE

40798 146 Morrison-Maierle, Inc20843 04/07/15 po online backup20$44 04/07/15 Tova offices online backup20863 04/06/15 Netvork maint/support

707.5070.0060.00

577.50

1000 420160 399 1010001000 410510 356 1010001000 • 20160 39$ 10100D

DISPATFINADM

40799 154C Century Link OCC 48.'3348,23 f inadm 1000 410510 345 10100003/23/15 IOag diet Chg 40CvAC-7COO

40$0104/01/1504/01/1504/01/1504/Oi/15Oi/01/15

04/01/150 • /01/1504/01/1584/01/1504/01/1504/01/1504/01/1504/01/1504/01/1504/01/1504/01/1504/01/1504/01/1504/01/1504/01/15

1789 NEX Bank07 Pord Expedition C-545C3A06 Dodge Durango c-137410 Ford Crovn Vic 6-34157A0$ Ford Crcwn Vic C-143710 Pord Expeditica 6 •0000•611 Ford Expediticn • -21425A77 Intl Dumptruck78 chevy oueptruck7$ Autocar Dumptruck•5 Pard F-350140 G GraderCAT 936 Losder93 Dodge 4•58295 MObile 6vaeper97 Athey SveCper99 SS Snovblover00 Preightliner Dump 6-40700$Snovmohile01 Freighcliner Dump 6-54564Aoe Ford Pickup • - 1 450

1,132.1039.7789.05•5.6913.44

177,12307. 51

0.000.000.00

55.39119.29186.32

'IS. 400.000.000.000.000.000.00

87. 11

SSPOLICEFOLICEPOLICEPOLICEPOLICESTREETSTREETSTREETSTREETSTREETSTREETSTREETSTREETSTREETSTREETSTREETSTREETSTREETSTREET

450135•302004201004201004201004101004301004302004302004302004302DO4301DO• 30100430200430200430200430200420100430100430100

131231131231131'231231131231131231231131131131

131231131231131

1010001010081010001010001010001010001010DO101000101000101000101000101000101000101000101000101000101000101000101000101000

10001000100010081000LOOO1000100010001000100010001000 .1000100010001000LOOO10001000

04/17/1$Is>50110

TOWN OF WEST YELLOMSTOMEClaim Approval Lisr

lagei 2 of 6Raport ID: AP100

For the Aeeounting Periodi 4/1S

• •.. Over spent expenditure

Claim vendor 8/Name/ Document 8/ Disc 8line 8

CashPO 8 F und Org Aect Object Proj AceountCheck Invoice 8/Inv Date/Descriptlon

04/01/15 00 GNC Pickup 6-14$404/01/15 00 CAT 930H Loader04/01/1S 00 904$ MiniLoader

04/01/15 TNP Truek 8104/01/1S YNP Truck 8204/01/15 00 Ford Rseape (multi-use)04/01/15 14 Police Intercsptor

129.36391.92189.10

0.000.00

31.03139. 62

STREETSTREETSTREE1'STREETSTRSETDISPATPOLICE

1.000100010001000100010001000

430200430200430200•30200430200• 10510420100

231231231231231310231

101000101000101000101000101000101000101000

40$33 2613 Pirst Bankcard03/03/1S carrot Top, flags03/03/15 Carrot Top, flags03/09/15 Rossiter Elec, svltch, motor03/10/15 NF Gov online. regis Arnado

03/12/15 Home Depot, supplies, vac03/20/ls Home Depot, schlage csms

I .S80.0342 004

268. 12560 00

15. 0015$.91• 16. 00 •

POVAHTWNHAL

SEWERSLDINS

POVAHTRAILH

100010005310100010001000

4112$5411250•30600420531411255411256

220220369380366366

101000101000loloaa101000101000101000

40034 999as Departsmnt of Revenue

04/02/15 tax vithholding pmt penalty

270.00270.00~ FINADM 1000 410510 870 101000

• 0035 54 Soseman Daily Chzonicle

04/Ol/15 subscziption, Police Dept04/ol/ls subscrlption, Tovn Mall

451. 60220 Oo i

228. 00 i

ADMINDISPAT

1000 410210 333 loloao1000 420160 333 101000

40036 2601 chemnet Consortium. Inc.0203$ 03/24/15 random dzug test fea

35.0035.00 AOMIN 1000 410210 3S1 101000

40837 29aO Joel Feterson Appraisal, Inc.

715 04/03/15 ESS appzaisal2g500.00

2,500•00 101000ADMIN 1000 •1 0210 3SS

04/01/15 supplies04/01/15 supplies

04/01/15 credit

40030 135 Food Roundup 3. 393•592.67

-2.87

FINADMSEMERLEGIS

1000 410510 220 . 1010005310 430640 351 1010001000 410100 220 101000

40$39 1404 VS SANK3933017 03/25/15 paying agent fee. GO bond

350.00350.00 GO 30$0 4 90100 630 101000

40840 2140 MMIA MONTANA

315016 a4/oa/15 deductible zecover, A. Frank1,310.00

1,310.00 • I H8 1000 510330 512 101000

40041 1454 sozeman chroniele/Blg Sky12$9934 03/15/15 J. serger Retire ad

110.7S110.75 ADMIN 1000 410210 327 101000

01/17/1515<5 • ilo

TOWN OP WSST YELLOWSTDNS

Claim Approval ListPage> 3 of 6

Report ID: AP100Por the Accounting Periodi 4/15

• .. . Over speat expendicure

Claim Vendor 8/Name/ Docuamnt 5/Line 8

Disc 8 Cashpo 8 pund Org Acct ob3ecc Proj Accountcheck xnvoice 8/Inv Date/Description

10842 1331 west Yellovstone Foundation01/07/16 Sus funding, 2nd half PY 15

7,500.007,500.00 LEQIS 1000 410 100 870 ID1000

40813 40 Jerry's Enterprises03/13/15 mouse03/13/15 compucer accessories

65.9717. 9947.98

1000 420160 220 1010001000 420160 220 101000

OISPATDISPAT

1081• 1241 Saf eguard 321. 32321.32 DXSPAT 10OO 12O16O 22O 1OIOOD30579551 03/20/15 parking tickete

10815 2507 Silvertip Pharmacy

03/1$/15 Rx04/01/15 Rx04/03/15 Rx01/09/15 Rx

133.0050.0025.0D25.0033.00

HEIPWELPNELPRELP

7010701070107010

368358358358

1010001010001010001010DD

450135450135450135450135

40$46 1$9 NSE ANALYTICAL iAEORATORY 396.0019$.0D198.00

WATERWATER

5210 1 30500 357 1010005210 430500 357 101000

15020$4 02/16/15 vater samples150307$ 03/15/18 vacer samples

40847 2761 ND Supply Watervorks. Ltd. 183.521$3.52» SEWER 6310 430600 369 101000D172621 D4/08/15 sever eupply

40$4 • 2686 Waxie Sanitary Supply75206283 01/10/15 cuscodial supplies

$26.35$26.35 PARES 1000 160430 220 101000

40849 951 Sarnee 6 Noble 202.9113.4967. 9535•57$5•90

LIB 2220 215LIS 2220 215

LIB 2220 215LIS 2220 215

•60100460100460100160100

101000101000101000101000

2999434 04/01/15 books2999435 01/01/15 booke2997S19 03/28/1.5 books2997978 03/2$/15 books

40850 761 oeneral Distributing Co. 43.7113. 71 STREET 1000 430200 220 1D1000319110 03/31/15 compressed 02

40$51 151 Oallatin Councy WY TS/Compoet 435.75435.75 PARKS 1000 460430 534 1D100003/31/16 cransfer station charges

40$52 379 Energy Laboratoriee. Inc350460628 04/10/15 vasrevater eamples

297. 5019'7 • 50 SEWER 5310 430640 357 101000

04/17/1515PSSP10

TOMN OF MEST YELLOMSTONE

Claim Approval L is tPagei 4 of 6

RePort IDP AP100Por che Accounting Periodi 4/15

• .. . Over spenc expenditure

Claim vendor 5/Name/ Document S/Line 5

Disc 6 CashPo 8 Fund org Acct object Pro) AccountCheck Invoice 8/Inv Date/Description

• 0$53 2635 Jake'8 Autosotive and Tire131D9 04/10/15 maint, 0$ Crovn Vic

705.85705.$5 POLICE 1000 410100 361 101DOO

4085403/27/1503/27/1503/27/1503/27/1503/2'P/1503/27/1503/27/3503/27/1503/27/1503/27/1503/27/15

71 Mastmart Building Centersupplies•uppliessuppliessupplies•uppliessuppliessuppliessuppliessuppliessupplies• upplies

• >4•3 . 6 382.90•27.0914.9$

1 138.16 •550.9629.36•

1 401. • 1 •5.696.63

11. 94 •113.50

STRESTSTREET

SEMSRPOLICE

UPDl

10001000531010001000100010001000100010001000

43020043020043060041125$411252411250•112554 60430460430411256410100

36611022036622036622022036636C220

101000101000101000101000101000101000101000101000101DOO101000101000

PARKSPARKSTRAILLEGIS

40$55 2CSO Delfino Salinas

04/10/15 interpretation fees20. 00

20.00 COURT 1000 • 103CO 394 101DOO

40856 547 MY chasher of CossmrceNAP VIC 02/05/14 VC Staffing, FY 1012 avard

3.680.073,680.07 MAP 2101 • 10130 39$ 101000

40857 2$47 Nest Yellowatona Sled Dog Races

03/15/15 Yellovscone spec. 1015 purse03/25/15 advance

1,500.004,0OD.OO

-2,500.00MAP 2101 410130 398 101000MAP 1101 410138 39$ 101000

4o$5$ S33 Market Place03/31/15 supplies03/31/15 supplies

213. 98204.01

9•97LEGIS

RSC1000 410100 220 1010001000 460440 220 101000

40$59 171 Mcntana FOO4 Bank NetwerkAIV-0071 04/06/1S annual duesAOR-006$-1 04/0$/15 cosmodiciesAOR 0069-1 04/OS/15 commodities

331.2075.001$.75

137.45

HE1 P 7010 450135 220 101000MELP 'POlO 450135 220 101000HELP 7010 450135 220 101000

40$60 2882 De Lage Landen45310409 04 /11/15 copier payment, 2 monchs

311. 30311.30 LIB 2120 4C0100 39$ 101000

40861 2264 FIPRNING GLORY COFPSS 6 TEA

75419'p 04/0$/15 supplies15.00

15. 00 DISPAT 1000 420160 120 101000

04/17/1515fSof10

TONN OF WEST ISLLOESTONE

claim Apyroval ListPagei 5 of 6

Report ID: AP140For the Accountfng Pertodi 4/15

• ... Over spent expenditure

vendor 5/Nacc/ Document 8/Line 6

Disc 5 cashPO 5 pund Org Acct object proj AccountCheck Invoice 5/Inv Date/Descriytion

40861 2813 STAPLES Credit P l a n03/12/15 supplies03/12/1S supplies

427.6947.47

360.221000 410230 210 1010001000 420160 220 101000

JAILDISP

40863 2835 Corner Cenex 15. 7615.76 LEGIS 1000 410100 220 101000849 03/31/15 supplies

44864 1331 west Yellowstonc Foundation04/07/15 bus vouohers

3D. 0030.00 7410 • 50135 220 101000

4086S 29 Terrell's Office Machines Inc $2.%0%2.50 LIS 2220 460100 398 141000299545 04/01/15 maint contract, copier

40SSS 331 Allegra 77,9077. 90 FINADM 1000 410510 390 1D100022820'2 04/15/ls yerforate paper, hus licensee

40867 2707 MSQ Extension 890.00390.00250.002%0.00

FINADMFINADMPINADM

1000 410510 335 1010001000 41051 0. 33$ 1010001000 4105 10 335 1010DD

04/16/1% Institute regls. Holtren04/16/ls Institute regis, Gospodsrek

04/16/1% Institute regis. Roos

40868 1140 Sagebrush Floral • 0. 0040.00 REC 1000 460440 110 101000591431 04/07/15 flowers, dance recital

40869 2%14 Kathy Arnado 276.00176.00 SOCSER 1004 4 50135 370 10100044/17/1% motel + meals, Hissoula, Arnad

40870 2291 American ExpressAmason, phone accessoryCostco, wire racks 6 boxesCabela's, gift card, Dittmann

Xbix, console repair/replaceXhix, console repair/reylaceXhix, return. credit next mo.walmart, microwaveWild Nest, suppliesMslwarebytes, vi r us softwareMalwarebytes, virus software

2,777.6831. 74

549. 95 •500.00781. 22250.00410. 06116.7971.0724.9541. 90

DISPATDRDG

LEGISDISPATDISPATDISPATDISPAT

LEGISLI8LIS

1000239010001000100010001040100022201110

4 2oloa Eo a420141 220410100 2104 20160 361410160 369420160 362420160 220410100 120460100 2164601ao 216

1410001010401D1000101000101004101000141000101000101000101040

03/10/1%43/12/1503/13/1%43/13/1%03/13/1503/13/1%03/17/1543/17/1504/04/1504/04/ 1%

Total : 101 , 1 3 8 . 978 of Cla ims 4%

04/17/1515a55ilO

TOHN OF HSST YSLLOHSTOHE

Fund s|99nary ior claimePaget 6 09 6

Report Ipc ApllDpor the Accounting periodi 4/15

Fund/Account

1000 General Fund1010DO CASH

2101 Harheting 5 pzoaotione (HAP)101000 CASH

2320 Librazy101000 CASH

2390 nrug Forteiture101000 CASH

3050 GO Bond101000 CASH

5210 Hater operating Fund101000 CASH

5310 sewer operating Fund

592,556.50

55, 150.07

0549.95

535D.OO

6633.56

5406.01

101000 CASH7010 Social Services/Help Fund

101000 CASH

51,065.65

6494.20

Total < 5 101, 2 3$ • 97

WEST YELLOWSTONE TOWN COUNCILTown Council Meeting 4k Work Scssion

Aprll 7, 2015

COUNCIL MEMBERS PRESENT: Mayor Brad Schmier, Jerry Johnson, John Costello, ColcParker, Greg Forsythe

OTHERS PRESENT: Finance Dircctor Lanie Gospodarck, Assistant Pubiic ServicesSuperintcndent David Arnado, Social Services Assistant Kathi Arnad, Town Attorncy JaneMcrsen

The meeting is called to order by Mayor Brad Schmier at 7:00 PM in the West YellowstoncTown Hall, 440 Yellowstone Avenue, West Yellowstonc, Montana

Portions of thc meeting are being rccordcd.

The Trcasurcr's Rcport with corresponding banking transactions is on file at the Town Officesfor public rcvicw during regular business hours.

WORK SESSION

lvfayor Schmier calls thc meeting to order and explains that thc first itcm of discussion is theCollective Bargsining Agreement for the West Yellowstone Employecs Unit of thc MontanaPublic Employees Association. Schmicr asks Council Mcmbcr Johnson and Financc DiiectorLanie Gospodarc,k to describe thc agrcement and answer any questions from the Councll. Thcagrecment has becn approved by the Employces Unit and is on thc agenda for considcration bythe Council latcr this evening. Johnson explains the language changes madc to the section thataddresses the use of floated holidays. Other changcs were made in the agrcement that affecttaking vacation timc, pay out of sick leavc, steward release during work hours, probation,scniority, advance leave time requcsts, grievance process, unifonn provisions, health andwellncss, and compensation. Johnson and Gospodarck answcr multiple questions from theCouncil, Mayor Schmier points out that thc language about thc treadmill in thc bascment of theTown Hall may conflict with Pollcy No. 31. Johnson points out that tlds contract is only for twoyears, unlike thc prcvious contract that was for six years. He says that was easily agreed on andno one was happy about the fact that it took so long to ncgotiatc this contract. Johnson thanksevcryone that workcd on the agrcement for their time and efforts, hc also thanks Town AttorneyJane Merscn for her advice and guidancc through the process.

Mayor Schmier says they have two major employee recruitments underway, the OperationsManagcr and Social Services Director. Thc Council discusses the proposal thcy recentlyreccivcd fiom thc Prothman rccruiting firm, a firm out of Washington statc that specializes inrecruiting management positions fbr iocal governmcnts. The Prothman proposal offers toconduct the recruitment for $18,000 plus expcnscs. Schmier points out that othcr jurisdictions inthe rcgion lncluding Belgrade and Red Lodge have used this firm. Alter further discussion, theCouncil indicates th'at they would likc to procced with thc process and direct thc staff to rcquest aspccific contract for action by thc Council at the ncxt mceting.

Thc Council discusses thc job announccment, salary, and job description for the Social ScivicesDirector. Thc Council makes rccoinincndations for minor changes to the job description andMcrscn agrccs. The Council directs the staff to start advertising for the position.

The Council adjoums thc work scssion at 7:15 PM and the regular meeting starts at 7:30 PM.

ACTION TAKEN

I) Mot ion carried to approvc the claims which total $71,131.74. (Forsythe, Parker)

2) Mot ion carried to approvc the Consent Agends, which includes thc minutes of thc March17, 2015 Town Council Meeting and March 31, 2015 Town Council Work Scssion.(Forsythe, Parkcr)

April 7,20I5Toivn Council Mectingiulinutcs, Pagc 2

3) Mot i on carricd to approvc thc rcqucst Irom Ramona Stubblefield to waive the resort taxbond for the Euro Cafd based on a satisfactory payment history at her other busincss,Sercnity Bistro. (Parker, Johnson)

temi of four ycars. (Costello, Johnson)

Trustees for four-ycar terms. (Johnson, Parker)

4) iMotion carried to reappoint Vickie.l3arta to the Parks <Ik Recreation Advisory Board for.a

5) hl o t ion carried to rcappoint Jeremy Roberson and John Stallings to the Tourism Board of

6) iblotion carricd to approvc and ratil'y the Collcctive Bargaining Agreetnent with theMPEA Employees Unit, elTectivc through July 3I, 2016. (Johnson, Parker)

Public Camntcnt PcriodNo public commcnt is rcccivcd.

Council Comments

Ycllowstonc.

Council lvlcmbcr John Costello rcports that he rccently aucndcd a mceting at the Forest Serviccabout the Ibturc ofihc smokcjumper base in West Yellowstone. His interpretation ol the.situation is that tliey will be okay in thc short-term but the long-term plans do not lookpromising. Council mcmbcr Parker agrces and says that they will have an operational basc thisyear, which is bcnclicial for lighting forest fires and protecting the Town. WY News EditorJeremy Wcbcr adds that thc presentation hc ivas sent outlined six options for thc future ol'thebase, most of which werc morc cost-elTcctive than rehabilitating thc basc here in West

Forsythc says hc itas a couple of issucs he wants.to bring up. I.le says that he thinks they shouldstill pursuc installing a timcclock system, e'spccialfy conside'ring tlie agrccment they expeci toapprovc.this cvening. I-le says he also wants to make' sure thcy follow.up on the suggestedchanges to the resort tax ordinancd that came about as a result of the appebl by. Glenn Hales onbehalf of the Ycllowstone Imax Thcater. He also says that hc a'ppreciates thg daily update cmails'fi'om thc 'staff'of thc Tow'n OAicc, but acknowledges those takc time and perhaps they don't needan update cvery day. I-Ic sugg>ests three times a week for the weeks they don't have a mectingand nvice a week for the weeks thal they do. Schmier asks Mersen about the public recordsrequest policy. Mersen says that shc fonvardcd sonie examples to the Counc'il previously andsays that shc can work on dralling a policy.

, DISCUSSIOiq'

) lvl ayor Schmicr cxplains that Roger ivlcrrill, on behalfof'the Playmill Tlieater, has

tax audit. <Mcrrill addresses thc Council and explains that when.they purchased thcPlaymill Theater in 2005, they rcscarched the resort tax ordinancc and dctcrmincd thaionline salcs of theater tickets are not subjcct to the resort tax; I-le says that the ordinanccwas adoptcd over thirty years ago and has only becn updated sporadically. I-Ie asscrtsthat his business was auditcd in 2007 and found to bc in compliance so.hc does notunderstand why his onlinc ticket salcs arc.now considcrcd taxable. Schmicr rcsponds that ..the inl'ormation tliat luis b«cn providcd indicates that th«y did hot complctc the audit in;2007 pttd thcrcforc-cannoi bc considcinl to be in.compliance. Ide asks lvlcrrill ivhat hc isusking from the Town. Mcrrill sayshc ivould likcclarilicationin theordinancc. Hi'. Saystliat ihc closest cxamplc in thc ordinance is catalog salcs, which are dccmcd to be liolttaxahlc bccausc the goods are shippcd outsidc of town. I-Ic says that a theaicr tickct isneither a g>ood ur scrvicc but actually a limited license. Johnson claiilics thai they docollcct thc tax on tickeis sold over the phone or at the tickct office, but they bclicvc thatan inicrnct triuisaction is an entirely dilferent thing and Merrill agrecs. Schinicr says thatsincc this is an orctinancc, the Council docs not havc thc authority to waive it and dct'crsto 'I'oivn Aitomcy Jane ivlerscn. Ivlcrscn says that shc has responded to ivlr. iVlcrrill<sattorney and agrees that thcy do nced to updatc thc ordinance, bui says it is hcr opinion

requested an audiencc bclorc thc Town Council to discuss tlic rcsults'ofhis rcccnt reson

April 7, 2015Town Council MeetingMinutes, Page 3

'thai purchasina a.ticl;ct over tlie iiiternci is'mcrcly'a prc-paymeni-foi the cxperience.i'riIVcst.Yelloivstone and therefore is subject to the tax .-

appreciates their elforts. Johnson asks the rest ol'ihe Council if thcy w'ould likc them tomove fonvard with negotiating thc collective bargaining agreement with the Policc unit.1 he Council agiees and designatcs Johnson and Gospodarek to proceed with thatncgotiation,

6) Cos tello says that hc would likc to crcdit both sidcs for working on this agreement and

A) Adv i sory. Board Reports: Coimcil Member Cola Parkbrrcport's that the Planiiing Board

reports that he talked to Glen Loomis.who has closcly been monitoring klousc Hill 262.The bill is inde'finitely frogen biit the majority leadcr from Dillon has the option olbringiiig it back to the t1oor for'another vote. Loomis is optimistic that this is a realpossibility.

Guay about the two appraisab thcy arc waiting for. ChicfofPolice Scott Neivell reportsthat Officer Kearncy is doing vcry wcll and hc is working with thc Operations Managerto draA an offer of employmeni for a sccond agrcemem. He says that remodeling isgoing well.at the Policc Dcpartment. Mayor Schmier asks about the agreement withGallatin County.Shcriff Ddpartment is going and il'thcy will be able to release theCounty deputies from that.obLigation in the near future. Neivell says that Officer Couitisis on vacaiion right now but as soon as hc returns he thinks thcy will be able to cover allof thcir shifts and no lo'nger require thcir assistancc.by the timc the summer season takes.,Social Services.Assistant Kathi Arnado says that things are going vvell in hcr departmcntand slie is getting assistancc Irom Public Services io pick up food. They will, however,lose the assistancc of Frank Bdzold as a voluriti:cr on the 17'" of thc month. FinanceDirector Lanie Gospodarek says that shc'is starting to work on budgct prcparation.Schmier notes that the sewer fund is ovcrdraw'n. Gospodarek says that they did notanticipate the substantial increase in the elcctric hills for the new blowers at the lagoonsand that line is over budget. Assistant Public Serviccs Superintendent Dave Arnado saysthat they are nearly finished wiih thc carpet projcct at thc Povah'Center and will be ablcto focus on finishing at the Policc station. 1-lc indipatcs hc iviB also talk to represcntativesfrom DOT.about the Canyon Street project tomorrovv.

has bccn mccting regularly dnd is making progrcss on the Grosvth Policy. Johnson

B) Oc p artment Head Reports: Schmier reports on behalt'of Operations Manager Becky

CORRESPONDENCE/FYI

Dated March 11, 20'15, the West Yellowstonc Brownic Troop ivrites io express a concern andimpr'ovement suggestion for thc playground at Pioncer Paih:. Dated March 23; 2015, GayleGifford, CEO of the Montana Foodbank Network, ivrites to announce that the MarketPlacegroccry store and volunteer Frank Bczold are being recognizcd by the hiontana First Lady LisaBullock at the State Capitol on Friday, April 17, 2015.

The mecting is adjourned..(8:)5 PM)

ivlayor

ATTEST:

Town Clcrk

WEST YELLOWSTONE TOWN COUNCILWork SessionApril I4, 20IS

COUNCIL MEMBERS PRESENT: Mayor Brad Schmier, Jerry Johnson, Grcg Forsythe, ColeParker, John Costello

OTHERS PRESENT: Finance Director Lanie Gospodarek, Public Services SuperintendentJames Pattcrson, Town Attorney Jane Mersen, Jercmy Weber-Editor, West Yellowstone Ncws,Hclene Rightenour

The mecting is called to ordcr by Mayor Brad Schmier at 6:00 PM in the West YcllowstoneTown Hall, 440 Yellowstonc Avenue, Wcst Yellowstone, Montana

Public Comment PeriodPierre Martineau introduces Kirsten Goldstein, a Vista Volunteer who will be conducting ahousing study here in West Yellowstone.

Council CommentsCouncil Member Parker mentions that he is getting a lot of emails that appear to be junk but hccan't seem to delete them. Patterson says that he can help him with the problem.

The first topic of discussion is the current Resort Tax Ordinance and proposed changes andclarifications to the ordinance. Town Anomey Jane Mersen points out that the potential changesare highlightcd in red. The group begins to work thmugh the ordinance and discuss the proposedchanges. They agree to clarify the types of lodging facilities that must tax their accommodationsand include "vacation rentals." They also discuss whether a bonlc of liquor sold at a bar shouldbe taxed. Bottlcs ofliquorsold at State Liquorstorcs are not taxed. Merscn indicates that shewill look into whether it is appropriate to tax a bottle sold at a bar. The group also discussesincluding languagc in the ordinance that clarifies that tax-exempt organizations must collect thetax, but visitors with taxwxempt status must also pay the tax. Mersen says that this ordinanceoutlines who cotlects the tax and what is taxed, but does not necessarily addrcss who must paythe tax. She says that shc will work on some language they can include in the ordinance that alsoclarifics that tax-cxempt status individuals/organizations must also pay thc tax. The Councildiscusses the section that defines what items are taxcd and agrees to the proposed clarificationsand additional Ianguage. The Council discusses whether items such as tanning passes, carwashcs, gumball machines, and non-souvenir clothing should be taxed. Johnson suggests thatrather than focusing on what thcy should tax, they should focus on what is not taxable as that is ashorter list. Thc Council discusses minor changes to the random audit process. There is alsodiscussion about property tax relief. Finance Director Lanic Gospodarek explains that if resotttax collcctions exceed the budgeted amount, that money is put dircctly into the General Fund tooffset any necessary property mill levy. The Council discusses the penalty structure at length.The current proposal is to reduce the 10% pcnalty per month to 3% on outstanding tax andpenalties, in addition to the $25 or $50 fee for not paying by the end of the month. Businessesthat pay by the 20 of the subscquent month are permitted to kecp 2.5% of the 3% tax as anadministrative fee, but payments receivcd afler the 20 must include that 2.54/o in the payment.Multiple penalty structures are discussed and there is general agreeinent to remove "penalties"from the sentence that outlines that 3% interest will be charged per month on the amount ofdciinquent tax. The group also briefly discusses the civil penalties that inay be awarded by acourt for delinquent tax. Mayor Schmier thanks cvcryone for their participation and cxplainsthat a new drafl will bc prepared with the changes discussed this evening.

The next item of discussion is a Public Records Request process and guidelines for responding tosuch requests. The Council has had opportunity io review multiple policies fiom othermunicipalities. Town Attomey Jane Mersen has prepared a draft policy for the Council toreview, based on common approaches by other municipalities. The Council discuss~s the feeschedule and makes recommendations. Merscn indicates that shc will take their comments intoconsideration and prepare a new draft.

The Council discusses the recruitment of a new Operations Manager. The Council has beenconsidering contracting the recruitment process through a professional firm and has been looking

April l4, 20I 5Town Council Work SessionMinutcs, Pagc 2

specifically at the Piothman Company. Prothman has run recruitments in Red Lodge andBelgrade in the recent past and the estimated fee plus expenses is expected to run close to$25,000. Johnson says that he looked into a couple other companies that offer the samc serviccand thc cost would be expccted to be about the same. Hc says that hc has talked to SlavinManagement Consultants and will request a contract and more information about thcir servicc.Town Clerk Liz Roos says she will contact Prothman to find out if they arc willing to make a 2-year guarantec on their service and what thcir placement track record is. Thc Council agiecs thatthey would like to movc forward with this process at thc rcgular Council Mceting ncxl week.

The mecting is adjourned. (8:25 PM)

Mayor

ATTEST:

Town Clcrk

Town of West YellowstoneBusiness License Application

Business Name: 4~ge ~~ ZnApplicant: 4r ' i

Mailing Address: -- PP'

Physical Address of Business: I 0.% S < l ~ + 4 ' I '-Phone Number: PO " QP — . 5 Fax Number.Email Address: 7" P2 2 - " -m~Website: /AIWN - < YA — a0 . M ~

Signature of Property Owner of R ecord: /f

Contact Person:

S ubdivision: C Y I Z2. ! P~ lg' -Block: Lot: 0

Zoning District, please mark one:Q B-3 Central Business District (Old Town)gf B-4 Expanded Business District (Grizzly Park)Q E-2 Entertainment District (Grizzly Park)

Q PUD Planned Unit Development (Grizzly Park)Q Residential Districts,' HomeOccupations Only (Mad Add)

g New Business P Transfer of OwnershipQ Change of Location Q Name Change

• Is this business licensed by the State of Montana7 g Yes 0 No• Appropriate City/County/Health Dept approvals (if applicable) g'Yes 0 No (please attach)• If this business is located in Grizzly Park, has the business been approved by the Grizzly

Park Architectural Committee (GPAC)7 j5 Yes 0 NoType of Business Please explain in detail the following: number of units, seating capacity, etc.Contractors should ist trailers and equipment and where these items will be stored.

t. 7 2 3' ~ z 5 •

Business License Fee: $ & yResort Tax Bond: S I2|~

g~/S ignature of Appli t

Signature of ApplicantTotal Amount Due: — c'Date

FOR OFFICE USE OisILYDate Approved by Town Council

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g GU ILFDRD RAND. ARC HITECTHE GEYSER INN i I i , «jg

Sam lo

From:Sent:TotCc:Sub)ect:

Lewis, Shane «Shane.Lewisogallatin.mt.gov»Wednesday, April 15, 2015 7:48 AM'samlesinotech-usa.com'Lewis, ShaneProvisional approval to open and operate Geyser lnn, Located at101 South Electric,West Yelfowstone

April 15, 2015

Geyser innAttn: Sam Lo and Philip ZangP.O. Box 298West Yeilowstone, MT 59758

Rf: Provisional approval to open and operate Geyser lnn, Located at 101 South flectric, West Yellowstone.

Facility has provisional approval to open and operate untfl next scheduled trip to West Yellowstone, which isthe 13~ thru the 15~ of IVla Y 2015. Fac)lity will be contacted for pre-openlng inspectlon and llcensure at thistfme.

If I may be of assistance or should you have any questions, please contact me at 582-3120.

G. Shane Lewls, Ph.0., R.S.fnvironmentai Health SetvicesGeliatin CIty-County Health Department215 W. Mendenhall, Room 108Boteman, MT 59715(406) 582-3120(406) 582-3128 faxshane.lewis aaatin o

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7honks for not printing electronlc medioeottrtopteytnsrry Nottrst Jhe m/armatton tontoinrd tn shis metsopr is kpoity nrhtk ped and ron/htentbtsn/ormotton tntended only/m'the osr a/thr tndlrhtantmentity named ohosr. sithe modrr a/tlhs messope ts not thc Inscndcd redpknt. or the amntoyce or opcnl restnmspdc to dettrrr h lo the tntendrd rertpknt. yao arc hcrchy noti/lad thot any rckosr, disscminolion,dktrthotkn, or ropyinp o/thk rommankotian k strktiy prohihhcd t/yoohoso rcrcired thts rommonkotion In crro, otrosc notr/y the aothor hnmrsentety hy reoiylnp so ttds mcssape onddekte the oriplnol mrssopr.

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-- F>~HEBGEN BASIN FIRE DISTR'ICT

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P.O. Box 15084- West Yellow'stone, MT59758Statlon1 Station 2

10 S. Faithful 20 Tem Lane'WEST TEt L'0%stottE,' Mr' West Yellowstone, MT59758 West Yellowstone, MT59758Ii ' Statton'3

10 Denny Creek RoadWest Yellovr~tone, MT.-59758

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.P406-646-9094 ~ 406-646-9090 fax

Resolution 12-1-14A RESOLUTION OF INTENT FOR TIIE PURPOSE OF PURCIIASING THE EMERGENCYSL'RVICES BUILDING FROIiI THE TOWN OF WEST YELLOWSTONE.

Whercas, the Hebgen Basin Fire District (HBFD) and the Town of West Yellowstone (Town)have an Interlocal Agreement that defines the use and maintenance of the Emergency ServicesBui!din~JFire (ESB) Station l; and

Whereas, the Town has vacated the ESB and HBFD is using the entire building including theformer Town offices; and

Whereas, the HBFD has a need and desire to perform substantial maintenance on the building;

Whereas, under the Interlocal Agreement both IIBFD and the Town have a responsibility formaintenance and.care of the building; and it may be mutually agreeable and desirable to liaveIIBFD as the owner,of the building and solely responsible.for its maintenance;.and

Whereas, the HBFD has a desire to purchase the ESB and the Board of Trustees is authorized inMCA 7-33-2105 to make purchases and own real property;

Now 'l.'herefore Be It Resolved;

The Board of Trustees having found: that the purchase of the ESB is in the best interest of theHBFD and the community; it is the intent of the Board of Trustees. to authorize $200,000 for thepurchase of the ESB plus 50% of closing costs and appropriate fees. The purchase is contingenton an agreeable Memorandum of Understanding for the lease of the underlying property wherethe ESB is built.

j

* /i". ' /iSigned / ' >I < ' i~ f +-Robert Godwin — — Board Chairman

from the desk of:Joel PetersonAppraisal lnc.1910 N 22"' AveSuite 2Bozernan, MT 59718

April 8, 2015

Ms. Liz RoosTown ClerkTown of West YellowstonePO Box 569West Yellowstone, MT 59758eroos@townofwestyellowstone.com

Re: 400 Yellowstone Avenue, West Yellowstone, MT 597S8 - Emergency Services Building

Dear Ms. Roos:

Pursuant to your request, I have visited and appraised the real property located at 400Yellowstone Avenue in West Yellowstone, MT. The date of the property visit was March 30, 2015, whichis also the effective date of this appraisal. Ownership is in the name of the Town Of West Yellowstone.

The subject property at 400 Yellowstone Avenue is a 8,000 square foot comrnercial building thatfunctions as the Emergency Services Building and is situated on a 2.966 acre lot 7,S00 square foot lot.The subject functions as the operational base for the local fire district In West Yellowstone and theHebgen Basin. West Yellowstone, MT is a gateway community to Yellowstone Natlonal Park.

The property right being appraised is the leasedhold interest in the building. The buildlng onlywill be valued and the site will not be included in the value. The intended user of this summary report isthe owner for determining the fair market value of the property for accounting purposes and thepossible sale to the Fire District.

My valuation is based on the consideration of market data derived from recent building sales inthe area, as well as from a cost approach to value. This appraisal conforms to the Uniform Standards ofProfessional Appraisal Practice (USPAP), Standards 1 and 2, and is reported in a summary format.

lt is my conclusion that as of the effective date of the appraisal, March 30, 2015, the "as is"market value of the leasehold interest of subject property as a value in use is $533,000.

Respectfully submitted,

Joel PetersonMT Certified General Ap'pralser ¹163Expires 03/31/2016

L

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1 from Yellowstone Avenue

400 Yellowstone, West Yellowstone, MT Joel Peterson Appralsal, Inc.

ORDINANCE No. 258

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF WESTYELLOWSTONE, MONTANA REVISING THE WEST YELLOWSTONEMUNICIPAL CODE TO REVISE THE RESORT TAX ORDINANCEAMENDING SECTION 3.12.

WHEREAS, the Town Council of the Town of West Yellowstone has enacted a ResortTax Ordinance pursuant to $7-6-1502 et. seq, MCA; and

WHEREAS, the Town Council ofthe Town of West Yellowstone believes that changesand updates to that ordinance are in order for the benefit and well being of the citizens of theTown of West Yellowstone; and

WHEREAS, the Town Council has consider the proposed amendments to the Town Codeat a public meeting on April 21, 2015 and at a public hearing on , andallowed for public comment at both; and

WHEREAS, after due consideration, the Town Council of the Town of WestYellowstone desires to adopt the changes proposed and discussed:

NOW THEREFORE, BE IT ORDAINED by the Town Council of the Town of WestYellowstone that the amendments that are set out on the attached Exhibit A, which effectivelyamend the municipal code of the Town of West Yellowstone, more specifically Sections3.12.010 through 3.12.190 as set out on the attached exhibit:

Section 1: See attached Exhibit A

Section 2: REPEALER: A ll o rdinances and parts of ordinances in conflict withprovisions of this ordinance, except as provided above, are hereby amended or repealed.

Section 3: EFFECTIVE DATE: This ordinance shall be in full force and effect thirty(30) days after final adoption by the Town Council of the Town of West Yellowstone.

Section 4: SEVERABILITY: If any portion of this ordinance or the applicationtherefore to any person or circumstance is held invalid, such invalidity shall not affect otherprovisions of this ordinance which may be given effect without the invalid provisions orapplication and, to this end, the provisions of this ordinance are declared to be severable.

PASSED BY the Town Council and approved by the Mayor of the Town of WestYellowstone, Montana, this day of 2015.

MayorATTEST:

Town Clerk/Treasurer

3.12.010 Created-General provisions-lmyosed.

A. There is imposed a resort tax on the retail value of all goods and services sold within the town, regardless

of the method or manner of the transaction, by the following businesses, groups or organizations:

1. Hotels, motels, condominiums, vacation rentals, cabins and any other nightly or weekly

lodging or camping facilities;

2. Restaurants, fast food stores, convenience stores, and other food service establishments;

3. Tavems, bars, nightclubs, lounges and other public establishments that serve beer, wine,liquor or other alcoholic beverages by the drink;

4. Groups, organizations, or temporary vendors, with or without tax exempt status;

S. Any business that selts luxuries as defined in 3.12.040 below.

Businesses or organizations that sell luxuries must collect a tax on such luxuries.

3.12.020 Definitions.

A. The terms "luxuries,™medical supplies," and "medicine" shall be defined as set forth in MCA Section 7-S-1501 and as set forth in more detail below.

B. All references to the "resort tax" and "tax" in this chapter shall refer to the resort tax passed by theelectorate of West Yellowstone and as enacted by the ordinance codified in this chapter.

3.12.030 Imyosed.

There is imposed a duty on each operator of any of the establishments mentioned in this chapter to collect,upon sale, the tax imposed as set forth in this chapter on all customers, regardless of state or federal tax

status, with the only exceptions being those set out in rt 3.12.130.

3.12.040 Luxuries tax

Each business, group or organization subject to the tax shall collect the same on the retail value of all goodsand sewices sold within the town by the estabttshments set forth in Section ~32 0 tb. Att luxuries shallbetaxed.

Luxuries shall include but not be limited to:

a.) any glft Item, luxury item or service, or other item, or other item normally sold to the public or totransient visitors or tourists; but the term does not include food purchased unprepared or unserved, medlctne,

medical supplies and servlces, or any necessities of life.

b.) sporting goods or the rental thereof,

c. ) rentals on or for the followlng snowmobiles, automobiles, all-terrain vehictes, motorcydes,blcycies, skls, boats, campers, boat motors;

d. ) recreational lessons and recreational services, including float trips, guided trips, skiing, fishingtrips, hunting trips, backcountry dining trips, other outfitter trips; horseback riding; golfing, rock climbing, cycling,

rafting, canoeing, kayaking, dog sleddlng and ballooning, tours and other attractions;

e. ) all souvenir and localized items such as imprinted hats and T-shiits and curios; all nonfood items

such as cleaning supplies, housewares (other than household appliances), automotive supplies and parts; ice;retail liquor, beer and wine, except that sold at state stores.

f. ) all attractions such as arcades, bowling centers, concerts, movie/theater tickets and allconcessions; event and entertainment tlckets (regardless of the method or location of purchase), cover

charges, rodeo tlckets, voluntary recreational activities such as golfing, swimming, skiing, tanning beds • andother voluntary recreatlonal daily tlckets and season passes.

3.12.050 Rate-Duration.

A. The exact rate of Ihe resort tax is three percent.

B. The duration of the resort tax as approved by the voters on November 5, 1985 is twenty years from its

effective date. The effective date of the resort tax is January 1, 1S86,

C. The duration of the resort tax renewal as approved by the voters on November 5, 2002, is twenty yearsfrom its effective date. The effective date of the resort tax renewal ls January 1, 2006.

3.12.060 Resort tax payment.

The resort taxes collected by a business in any month are to be paid to the town on or before the twentieth dayof the following month, or if such day falls on a Saturday, Sunday or holiday, then on the next business day.

Resort tax payments sent by mail or private courier must be received by the town on or before the twentiethday of each month, or if such day falls on a Saturday, Sunday or holiday, then on the next business day.

3.12.070 Collection dutles and responsibilities.

A. The oNce responslble for receiving and accounts for the resort tax receipts is the town derk and treasurer.

B. The operatlons manager and his/her agents shall be responsible for enforcing the collection of resort taxesand shall be responsible for overseeing the methods and procedures to be used in enforcing the coilection of

the resort taxes.

3.12 080 Resort tax collection fee.

Each coNecting merchant shall be entitled to withhold two and one-half percent of the resort taxes collected to

defray costs for collecting the resort tax, providing that resort tax payments are timely made In accordance with

Section 3.12.060. The resort tax collection fee may be withheid by the business at the lime of paying the tax tothe town. Failure to wilhhold the fee shall constitute waiver and forfeiture of the same.

3.12.090 Records and forms.

The town shall provide each business that is required to collect resort tax with the proper forms for reportingand making payment to the town. Resort tax payments to the town shall be tabulated and accounted for on

forms prescribed and furnished to the business by the town. The records and forms held by the town shall beconttdential, and shall not be open to inspect/on by the public unless so ordered by a court of competent

jurisdiction. Each business that is required to collect resort tax must maintain adequate accounting records andpay the resort tax to the town on the forms provided by the twentieth day of the following month. Theaccountlng records maintalned must be accurate, verifiable, snd provide a reasonable audlt trail. Failure to

maintain adequate accounting records constitutes a violation of this chapter.

3.12.100 Preservatlon of records.

Every business required to collect and pay resort tax shall keep and preserve for a period of not less than three

years all records necessary to determine the accuracy of the taxes paid, and shall make these records

available for audit or inspection on its business premises at all reasonable times. Any audit or inspection shall

be conducted in West Yellowstone on the premises of the business or establishment collecting the resort tax orat such other location as the town may determine.

3.12.110 Random audit.

Periodic random audlts shall be conducted under the direction of the mayor, operations manager or adesignated representative and all business operators shall cooperate in ali respects in the conduct of theaudits. Any random audit shall be for the previous calendar year, and shall be conducted in West Yellowstone

on the premises of the business or establlshment collecting the resort tax or at such other location as the town

may determine. If the audit determines a deflciency it wlll be at the discretion of the town to audlt the previoustwo years and require a follow up audit on the next reporting year. Payments and or arrangements for paymentof the amount determined as outstanding resort tax owed must be paid or arranged within thirty (30) days of the

date of the notification of the audit results. Failure to cooperate in any audlt or inspection of records, includingthe failure to make the appropriata records available withln fourteen (14) calendar days of the auditor's

scheduled audits in West Yellowstone, may result in an automatic non-renewal of the business Itcense for thesubsequent business iicense year and shall constitute a violation of the provisions of thls chapter,

3.12.120 Appeals.

Any business may appeal to the town council any assessment of penalty or interest; provided, that notice of

appeal in writing is filed with the town cierk within thirty days of the seniing or mailing of the determinatlon of

the amount of penalty and interest due. The town council shall on the next immediate regular town counctlmeeting fix the tirne and place for hearing the appeal and the town cterk shall cause notice ln witting to be

personally served by a peace officer upon the operator. The flndings and decision of the town council shall befinal and conclusive and shail be served upon the appellant in the manner prescribed for service of notice of

hearing or by certified mail directed to the business operator's last known address. Any amount found to be due

shall be immediately payable upon service of the findlngs and dectsion.

3.12.130 Exemptions

Notwithstanding Section 3.12.040, however, the following goods and seivlces shall be exempt from the tax:

A. Utilitles and utility services;

B. Medical supply services and medicine;

C. Wholesale merchandise for resale at retail or used In the pwchaser's business as supplles;

D. Gasoline and other motor vehicle fuei;

E. Liquor sold at state liquor stores;

F. Propane and similar home fuels;

G. Sales of automobiles, trucks, snowmobiles, motorcycles, all-terrain vehicles, bicycles, skis, boats,outboard motors and chain saws;

H. Labor on automobiles, trucks, snowmoblles, motorcycles, all-terrain vehicles, bicycles, boats, outboard

motors and chain saws;

I. All non-recreattonal labor, servlces and non-recreational state licensed professions and trades;

J. All payroll and business and labor costs;

K. Lumber, building supplies and tools, and other tools;

L. Household appliances;

M. Any hotel, motel, campground or other lodging facility occupancy, with respect to any person or personswho occupy a room or a space for a period longer than thirty consecutive calendar days; provided, that such

person certlfies prior to occupancy that the occupancy will exceed thirty consecutive caiendar days and does infact exceed thirty consecutive calendar days;

N. All sales of goods from catalogs paid for from outside of the boundarles of the town; that is, catalog sales

of goods shall be exernpt except to the extent that the goods are paid for and the exchange is made within theboundaries of the town. This exemption does not apply to any purchases made over the Internel or over the

telephone or by any other electronic means for any goods, services or other luxuries.

3.12.140 Use of tax moneys.

A The tax moneys derlved from the resort tax may be appropriated by the town council for any activity,

undertaking, or administrative service that the munlcipality is authortzed by law to perform, including costs

resulting from the imposition of the tax.

B. There Is established a marketing and promotion (MAP) fund for the town. Two and one-half percent of the

three percent resort tax collected by the collecting merchant shall be dedicated exclusively to the MAP fund,which fund shall be used solely for the marketing and promotion of West Yellowstone and the surroundlng

area, as well as the associated costs of administering the fund. The town council may appropriate additional

resort tax receipts to the MAP fund.

C. The town council shall by resolution establish a board of not less than three or more than seven qualifiedpersons to oversee the MAP fund. At least one member of this board shail be a sitting member of the towncouncil or the council's designee. The board shall establish policies and procedures for its operation and the

general management of the fund In accordance with the council's resolution establishing the board. The board

shall also select Individual marketing and promotion projects and approve expenditure of funds for such

projects, subject to approval by the town council.

3.12;150 Reduction of property tax Ievy.

Annually anticipated receipts from the resort tax must be applied to reduce the municipal piopeity tax levy for

the fiscal year in an amount equal to five percent of the resort tax revenues derived during the preceding fiscal

year.

3.12.160 Property tax rellef fund.

ln the event the town receives more resort tax revenues than had been included in the annual municipalbudget, it shall establsh a municipal property tax relief fund, and all resort tax revenues received in excess of

the budget amount must be placed in the fund. The entire fund must be used to replace municipal property

taxes in the ensuing fiscal year.

3.12.170 Resort tax administration.

The town shall admlnister resort tax collections according to the following rules;

A. Resort tax payments shall be made to the town finance office by the established deadline.

B. Fallure to report or make resort tax payments by the payment deadline shall result in forfeiture of the resorttax collection fee for the month in which the payment is due.

C. Fallure to pay resort tax before the end of the month in which the payrnent is due shall result in an

administratlve fee of either: (1) twenty-five dollars for businesses with gross sales of one thousand five hundreddollars or less for the reported month; or (2) fifty dollars for businesses with gross sales in excess of onethousand rive hundred dollars for the reported month, which sha!I be in addition to any civil penalfies awarded

to the town in a suit for collection of resort tax.

D. At the end of each subsequent rnonth after the original paymenl is due. the town wlll assess interest at therate of three percent (3%) of any delinquent resort tax, which shall be assessed on the first business day of the

subsequent month and on the first day of each month thereafter until the total amounl due, inciuding theadministrative fee, is paid in full. This and all administrative fees shall be assessed in additlon to any civllpenalties awarded to the town in a suit for collection of resort tax.

E. The town may revoke the business license of any person or business that violates any provision of this

chapter. The town may revoke a violator's business Ilcense either through the administrative proceduredescribed in chapter 504 or thrcugh a court order oriudgtuent irl acconfanca wtth setnton ~3t 2 t 0.

3.12.180 Vlolation-Civil~enalties.

For failure to report taxes when due, failure to pay taxes when due, and other violations of thls chapter, thetown may seek the following penalties or remedies:

A. A court judgement in the amount of all unpaid resort taxes, lncludlng any unpaid administrative fees

assessed under Seclion~3t70 and any resorl tas collection fees forfeited in accordancewlthSectlon 3.12.080;

8. Interest at the rate of ten percent (10'/0) per annurn on unpaid resort taxes or admlnistrative fees from thedue date or assessment date until paid;

C. A civil penalty in the amount of fifty percent (50'/0) of the unpaid resort taxes, which includes forfeited

resort tax collection fees, plus all costs and attomey's fees incurred by the town in any court action;

D. An order requiring the delinquent business to undergo a ftnanclal audit by the town or its representatives todetermine the proper amount of resort taxes due, including payment by the business of all audit costs and

expenses incurred by the town or its representatives;

E. Revocation of the vlolator's town business license, either through judicial order or the administrativeprocedure described in Chapter 5.04

F. Any other penalty, remedy or judicial relief to which the town is entitled.

3.12.190 Violation-Criminal penalties.

A person or business violating any provision of this chapter is guilty of a misdemeanor and subject to a fine not

exceed one thousand doilars for each violation, or imprisonment not to exceed six months for each violation, orboth.

RESOLUTION NO. 661

A RESOLUTION OF THE TOWN OF WEST YELLOWSTONEESTABLISHING A FEE SCHEDULE FOR PUBLIC RECORDS SEARCHES AND

COPYING AND A FEE SCHEDULE FOR COPIES AND RESEARCH OFELECTRONIC PUBLIC RECORD INFORMATION AND ESTABLISHING A

PRODECURE FOR REQUSTING PUBLIC RECORDS AND FOR MPLEMENTAIONAND COLLECTION OF THE FEE SCHEDULE

WHEREAS, Section 7-1-4144, Montana Code Annotated (MCA) ensures that any person shallbe allowed access to appropriate public records consistent with the provisions of the MontanaConstitution while allowing for the governing body to impose reasonable fees for copies ofaccessible records; and,

WHEREAS, Section 2-6-110, MCA provides that access to public records ensured by theMontana Constitution and Section 7-1-4144, MCA is extended to electronic information and thatfees may be charged to cover directed expenses for procuring or transferring the electronicinformation; and,

WHEREAS, Subsection 7-1-4123(7), MCA empowers municipalities to impose a specialassessment reasonably related to the cost of any special service or special benefit provided by themunicipality or impose a fee for the provision of a service; and

WHEREAS, a public meeting was held on this matter on the 21" day of April, 2015, at 7:00p.m. in the Town Council Chambers at 440 Yellowstone Avenue in West Yellowstone, Montana.

NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWNOF WEST YELLOWSTONE, MONTANA, that the following procedures and fees be appliedin responding to requests for public records:

l. A ll r equests for public records shall be subject to this policy.

2. Req uest forms are to be completed for any non-routine public information recordsthat are pulled for review or copying. The form serves several functions: (1) to give theTown a comprehensive understanding of the types of information being requested; (2) tofacilitate making it available on the Internet or adding it to the list of routine publicrecords requests for which fees are not charged; (3) to be able to contact the requester if arequest cannot be filled right away; and (4) to provide a receipt for money collected.

3. A ll r equest forms submitted must be signed by the Department Head (or his/herdesignee) for the respective department. This shall constitute authorization for departmentalstaff to fill the request.

4. The Town Clerk's Office shall be the Office of Record for completed Records RequestForms. All request forms should be forwarded to the Town Clerk upon completion andresponse to the request.

It should be noted on the form what documents/files were reviewed or copied and thecharges, if any, that were charged.

Once a request for records has been received, it will be responded to in a timely fashion, butat least within twenty (20) business days. The Town will respond to any request to inspectrecords with an effort to allow viewing at the time of the request.

Departments are not required to obtain a person's name and contact information in filling arequest for public records. If a departrnent cannot fill a request right away, it should try to getthe name and contact inforination of the requester to contact them when the request has beenfilled and is ready. Department heads or their designees have discretion to require paymentbefore or after service is provided.

Blank request forms should be available in all offices to avoid sending citizens between

NO NE% DOCUMENT OR RECORD will be created to respond to a records request.Applicable records may be made available for requester to compile his/her own data.

10. Any request, which. does not refer to an "identifiable" public record, shall not be processeduntil the requester provides further information. It shall be the responsibility of thedepartment receiving the request to notify requester that further information is requiredbefore the request can be processed and to attempt to get that information so the request canbe processed in a timely manner.

11. StaQ'shall make copies of Town records during normal office hours. For security reasons andto avoid unreasonable disruption of operations, copying facilities will not be available for useby the public.

12. Computer or electronic records will be made available pursuant to $'2-6-110, M.C.A. (Seedetails under Fees/Charges). Staff shall notify'requester of the hourly rate that will becharged under this section BEFORE proceeding with processing the request, therebyallowing requester the right to cancel request. The hourly rate shall be $ ' p erhour.[ This would be the hourly rate for an IT person to make an electronic search-]

13. This resolution does not supersede any rules of evidence or rules governing the production ofinformation or documentation in the course of litigation; or the rules governing confidentialcriminal justice information.

offices and facilities.

DEFINITIONS:

Public Records. '7-1-4144 M.C.A.

(1) "Except as provided in subsection (2), all records and other written materials in thepossession of a municipality shall be available for inspection and reproduction byany person during normal office hours. The governing body may impose reasonablefees for providing copies of public records.

(2) Personal records, medical records, and other records that relate to matters in whichthe right to individual privacy exceeds the merits of public disclosure shall not beavailable to the public unless the person they concern requests they be made public.

(3) Except as provided by law and as determined by the chief law enforcementadministrator, law enforcement records that relate to matters in which the right toindividual privacy or law enforcement security exceeds the merits of publicdisclosure shall not be available to the public."

Public Records. 2-6-202 M.C.A.

(1)(a) "Public records" includes any paper, correspondence, form, book, photograph,microfilm, magnetic tape, computer storage media, map, drawing, or other document,including copies of the record required by law to be kept as part of the oKcial record,regardless of physical form or characteristics, that has been made or received by a stateagency to document the transaction of official business; is a public writing of a stateagency pursuant to 2-6-101(2)(a); is designated by the State Records Committee forretention pursuant to this part; and all other records or documents required by law to befiled with or kept by any agency of the State of Montana.(b) The term includes electronic mail sent or received in connection with the transactionof official business.(c) The term does not include any paper, correspondence, form, book, photograph,microfilm, magnetic tape, computer storage media, map, drawing, or other type ofdocument that is for reference purposes only, a preliminary draft, a telephone messageslip, a routing slip, part of a stock of publications or of preprinted forms, or a supersededpublication. (This applies to the City as a political subdivision of the State of Montana.)

Records of Officers 0 en to Public Ins ection. 2-6-104 M.C.A.

Except as provided in $27-18-111, MCA and $42-6-101, MCA, the public records andother matters, except records that are constitutionally protected from disclosure, in theoffice of any officer are at all times during office hours open to the inspection of anyperson.

Removal of Public Records. 2-6-105 M.C.A.

Any record, transcript of which is admissible in evidence, must not be removed from theoffice where it is kept, except upon the order of a court or judge in cases where theinspection of the record is shown to be essential to the just determination of the cause or

proceeding pending or where the court is held in the same building with such office.

Prohibition on Distributio or Sale of Mailin Lists. 2 - 6 -109 M.C.A.

(1) "Except as provided in subsections (3) through (9), in order to protect the privacy ofthose who deal with state and local government: (a) an agency may not distribute or sellfor use as a mailing list any list of persons without first securing the permission of thoseon the list; and (b) a list of persons prepared by the agency may not be used as a mailinglist except by the agency or another agency without first securing the permission of those

(2) As used in this section, "agency" means any board, bureau, commission, department,division, authority, or officer of the state or a local government.

(3) Except as provided in $ 30-9<03, M.C.A., this section does not prevent an individualfrom compiling a mailing list by examination of original documents or applications thatare otherwise open to public inspection.

on the list.

Routine Public Information

Material that is prepared for the public and is made available to them on a regular basis. Thisis often prepared for promotional or advisory reasons and prepared in mass quantities forgeneral distribution with the intent of mass distribution. NO REQUEST FORM ISREQUIRED for these materials. Examples: Town Charter, Town Commission Agendas,Board and Commission Agendas,, Brochures, Pamphlets, Applications, and Blank BidPackets.

on-Routine Public Inform tion

Material prepared in the regular course of Town business (i.e. regular departmental businessrecords) that the public requests to view or have copied. These records document regularbusiness transachons by each department and are not prepared for mass distribution. THEREQUEST FORM MUST BE COMPLETED identifying the record provided and signed bythe department head or his/her designee before responding to the request.

NOTE: If a particular item of information is not contained in the departmental list(s) or if thedepartinent is unsure as to whether such information is required to have a request form 'completed, contact the Town Clerk's Office OR have a request form completed;

because of potential privacy concerns, contact the Town Attorney's Office.If a department is unsure as to whether the information can be released to the public

If a department has received a ruling from the Town Attorney's Office regarding a certaintype of record created and maintained by the department, the department shall continue to usethat directive for that record until notified otherwise.

various stages of completion. Drafts should be stamped "DRAFT" and if copies are provided toDue to the nature of change in municipal government, "drafts" often represent work in

the requester, the requester should be advised that the document is NOT final and subject tochanges.

That the following uniform fee schedule for retrieval and copying of public records is herebyadopted:

PUBLIC RECORDS - No Search Re uired Print Media:

Standard size u to 11" x 17"

Up to 10 pages printed or copied:

More than 10 pages printed or copied:

Nonstandard size over 11" x 17":

No charge.

$0.15 per page for every page over 10.

Actual charges assessed by third party to producenonstandard size documents.

PUBLIC RECORD SEARCH - Exce t Criminal Case Defendants: This is for searches thatcan only be accomplished by a Town employee where searches by the general public are notpossible because the initial search must start with information that is contained in electronicformat that is only accessible by authorized Town employees, i.e. city court and police.

Electronic search for up to 5 records, printing up to $5.00 per search for up to 5 records10 pages of electronically stored documents, andcertification:

Search, retrieval, and copying of original documentsstored in a location that is not accessible to the public(up to 10 pages):

For copies requiring printing or copying of more than $0.1 5 per page10 pages:

A defendant in a pending criminal action or the defendant's attorney may obtain copies ofdocuments regarding the case at no cost, either for searching, copying, or printing from the TownAttomey's office.

$10.00 per search per name or reportnurnber per date

ACCIDENT REPORTS if not confidential criminal 'ustice information Print MediaConfidential Per 61-7-114 MCA with exce tions:

Cost of research and copying:

Cost of mailing (if required):

$5.00 per report

$1.00 per report

REPORTS CONTAINING BOTH CONFI EN IAL AND PUBLIC INFORMATION~ rint Medis:

Each record or report up to 5 pages

Copying rnore than 5 pages in report

$1.00 per report

$1.00 plus $0.15 per page beyond the first 5 pages

PUBLIC RECORDS on- ri n t Media:

Charges per $2-6-110, MCA:

(I) the Town's actual cost of purchasing the electronic media used for transferring data, if theperson requesting the information does not provide the media; and

(2) expenses incurred by the Town for providing on-line computer access to the personrequesting access; and

'(3) other outwf-pocket expenses directly associated with the request for information, includingthe retrieval or production of electronic mail; and

(4) hourly rate for the current fiscal year for the average wage of a Town employee classified asa deputy town clerk and a town clerk for each hour, or fraction of an hour, after one-halfhour ofcopying service has been provided.

ADDITIONAL CHARGES:

Binding or notebook binder:binder

Certified copy:records

Reimbursement of actual cost for the binding or

$1.00 per record plus copying costs for public

PASSED BY THE TONN COUNCIL AND APPROVED BY THE MAYOR this

day of 2015.

Mayor

Council Member Council Member

Council Member Council Member

ATTEST:

By:TOWN CLERK

April 9, 2015

Mr. Brad SchmierMayorTown of West Yellowstone440 Yellowstone AvenuePO Box 1570West Yellowstone, MT 59758

Dear Mayor Schmier:

Thank you for your confidence in Prothman to assist the Town of West Yellowstone in the,recruitment for its next Operations Manager. The following represents a scope of work for thissearch and associated professional fees and expenses.

SCOPE OF SERYICES

Project ReviewThe first step will be to review the following topics:

Review the scope of work and project scheduleIdentify the geographic scope of the search (Iocal, regional or national)Review the compensation package and decide if a salary survey is neededIdentify key stakeholders

information Gathering and ResearchOur goal is to thoroughly understand the values and culture of the Town of WestYellowstone, as well as the preferred qualifications you desire in your next OperationsManager. We will travel to West Yellowstone and:

Meet with the Mayor & CouncilMeet with Department Directors & Staff as directedMeet with community & business stakeholders as directedHold a community meeting (If deslred)Review all documents related to the position

Position Profile OeveloprnentWe will develop a profile of your ideal candidate. Once the Position Profile is written andapproved, it will serve as the foundation for our determination of a candidate's "fit" within theorganization and community. Profiles include the following:

A descrlption of the ideal candidate's qualifications• Years of related experience and education required• Ideal personality traits and work habitsOrganization-specific information• Description of the organization, position and key responsibilities• Priorities and challenges facing the organizationCommunlty-speclfic information• Overview of the region• Description of the environment and quality of life detailsCompensation package detailsInformation on how to apply

206.368.0050 o 371 NE Gilman Slvd., Suite 350 issaquah, WA 98027 o www.prothman.com

Recruitrnent and Advertising StrategyWe recognize that often the best candldates are not actively looking for a new position-thisis the person we want to reach and recruit. We have an aggressive recruitment strategywhich involves the following:

Print and Internet-based Ads placed nationally in professional pubiications,journals and on related websites.Direct Nlall Recrultment Brochures sent directly to hundreds of hlghly qualifiedcity management professionals who are not actively searchlng.Dlrect Contact Calls placed directly to city management professionals we know.Postlng the Positlon Profile on the Prothman website, which receivesthousands of hits per month.

Candidate ScreeningOnce the application deadline has passed, we will conduct an extensive candidate reviewdesigned to gather detailed information on the leading candidates. The screening processhas 4 key steps:

1) Appllcation Revlew: Using the Position Profile as our guide, we wiiI screen thecandidates for qualiflcatlons based on the r esumes, applications, andsupplemental questions (to determine a candidate's writing skills, analyticalabilities and communication style), After the initial screening, we take the yes'sand maybe's and compiete a second screening where we take a much deeperlook'into the training, work history and qualifications of each candidate.

2) Personal lntervlews: We will conduct in-depth videoconference or in-personintervlews with the top 8 to 15 candidates. During the interviews, we ask thetechnical questions to gauge their competency, and just as importantly, wedesign our interviews to measure the candidate's fit within your organization.

3) Internet Publlcatlon Background Search: We conduct an internet publicationsearch on all semifinalist candldates prior to their interviews. If we find anythingout of the ordinary, we discuss this during the initial interview and bring thisinformation to you.

4) Work Sesslon: We will prepare a detailed summary report which includes eachcandidate's application materlais and the results of the personal interviews andpublication search. We can travel to West Yellowstone or, to save money, wecan meet vla phone conference and advise you of the candidates meeting thequalifications, our knowledge of them, and their strengths and weaknessesrelative to fft within your organization. We will give you our recommendationsand theri work with you to identify the top 4 to 6 candidates to invite to the finalinterviews. We will discuss the planning and design of the final interview processduring this meeting.

Final Interview ProcessThe design of the final interviews is an integral component towards making sure that allstakeholders have the opportunity to leam as much as possible about each candidate.

Elements of the design process Include:• Deciding on the Structure of the lntervlews

We will tailor the interview process to fit your needs. It may involve usingvarious interview panels (which can include community stakeholders), anevening reception or just one-on-one interviews with the decision makers.

• Deciding on Candldate Travel ExpensesWe will help you identify which expenses your organization wishes to cover.

• References

Offender Check

• Identifying Intervlew Panel Participants & Panel FacllltatorsWe will work with you to identify the participants of different interview panelsto ensure that all stakeholders identNed have been represented.

Background ChecksPrior to the Anal interviews, we will conduct a background check on each of thefinalist candidates. Background checks include the following:

We conduct 3-5 reference checks on each candidate. We ask each candidateto provide names of their supervisors, subordinates and peers for the lastseveral years. From this list we will have personal conversations with theindividuals who have direct knowledge of the candidate's work andrnanagement styte.

• Ed ucatlon Verificatlon, Criminal HIstory, Driving Record and Sex

We contract with Sterling for all driving record, education verification, criminalhistory, and sex offender checks. We will conduct a criminal history, drivingrecord and sex offender check on each candidate in the states in which.they

Flnal Interview Binders

have worked.Candidate Travel CoordinationFor those candidates who will be travellng to the final interviews, we.work withthe candidates to organize the most cost effective travel arrangements.

We wlll provide Final lnterview Binders. They are the tool that keeps the finalinterview process organized and ensures that all interviewers are "on the samepage" when it comes to evaluating each candidate.

+ Final Interviews with CandldatesNe wlll t ravel to West Yellowstone and facltitate the interviews. Theinterview process usually begins with a morning briefing where schedule andprocess will be discussed with all those involved in the interviews. Eachcandklate wiII then go through a series of one hour interview sessions, with an

Panelists 4 Decision Makers Debrlef: After the interviews are complete, wewill facilitate a debrief with all panel participants where the panel facilitators willreport their panel's view of the strengths and weaknesses of each candidateinterviewed. The decision makers will also have an opportunity to ask panelistsquestions.Candidate Evaluatlon Session: After the debrief we will facilitate the evaluationprocess, help the decision makers come to consensus, discuss next steps, andorganize any additional candidate referencing or research if needed.

+ Facilitate Employment Agreement: Once the top candidate has been selected,we wlll offer any assistance needed in developing a letter of offer and negotiatingterms of the employment agreement.

Warranty

Repeat the Recruitment: Should a top candidate not be chosen, we will repeatthe recruitment with no additional professional fee.

hour break for lunch.

FEE, EXPENSES 5, GUARANTEE

Professional FeeThe fee for conducting an Operations Manager recruitment with a one-year guarantee is$18,000, plus expenses. The professional fee covers all Prothman consultant and staff timerequired to conduct the recruitment. This includes all correspondence and on-site meetings withthe client, writing and placing the recruitment ads, development of the candidate profile, creatingand sending invitation letters, reviewing resumes, coordinating and conducting semiTinalistinterviews, coordinating and attending finalist interviews, coordinating candidate travel,professional reference checks on the finalist candidates and all other search related tasksrequired to successfully complete the recruitment.

ExpensesExpenses vary depending on the design of the recruitment. We work diligently to keepexpenses at a minimum and keep records of all expenditures. The Town of West Yellowstonewill be responsible for reimbursing expenses Prothman incurs on your behalf. Expense itemsinclude but are not limited to:

Newspaper, trade journal, websites and other advertisingDirect mail announcements

+ Final Interview Binders, printing of mqteriats, and delivery expensesConsultant travel: airfare, rental car, lodging, travel timeBackground checks performed by SterlingAny dient-required licenses, fees or taxesCandidate travel expenses vary depending on the number of candidates, how far thecandidates travel, length of stay, if spouses are included, etc. We will coordinate andforward to your organization the candidates' travel receipts for direct relmbursement to thecandidates.

A 3% charge will be added to all expenses which reflects Prothman's City of Issaquah andWashington State B80 tax obligations. Professional fees are billed in three equal installmentsthroughout the recrultment. Expenses are billed monthly.

GUARANTEEOur record of success in placing highly qualiTied candidates provides that Prothman willguarantee with a full recruitment that if the selected finalist is terminated or resigns within oneyear from the employment date, we will conduct a replacement search with no additionalprofessional fee.

CANCELLATIONYou have the right to cancel the search at any time. Your only obligation would be the fees andexpenses incurred prior to cancellation.

Accepted by:

TOWN OF WEST YELLOWSTONE

Brad SchmierMayor

P TH I I I

44Gr ProthmanPresident

A ril S 2015DateDate

IWAN

Kxhibit D

A T T O R N S Y S

7I6 SOIJrH 2&h A~ SUlT E IOISOZEMA?4 MONFANA S9718

TELa (406) 5~383 HQG(406) S87 7871P ~ ldanehhalnmec

JOHNhL KAUI~NJANE MHiZENOBNMS I MUNSONULIA RTVRIuzz.SHEiuNE 11 I HtNANDO

KENr M XASIINGWILi2AM K HANSON

April 13, 2015

Town Council MembersTown of West YellowstoneP.O. Box 1570West Yellowstone, Montana 59758

RE: Resort Tax on Internet Sales

Greetings,

On April 7, 2015, the Playmill Theater presented its objection to having to collect a resort tax onInternet ticket sales. I had previously written to the Theater's attomey with my interpretation ofthe Resort Tax application to the Theater's Intemet ticket sales. Following the presentation, theTown Council requested that I advise the Council as to the applicability of the Resort Taxordinance on such sales.

In this instant case, the Theater claims that since the ticket is sold over the Internet and thetransaction does not occur "within the limits of the Town", that the sale is not subject to resoittax collection. I disagree. The ticket is not the item being "sold". The ticket is merely a receiptevidencing payment so that the ticket holder can attend a theatrical performance that is performedwithin the limits of the Town, The service being sold is the theatrical performance, not theticket. If the Town were to accept the Theater's interpretation, every business in town could setup transactions to occur via the Internet, thereby bypassing the resort tax altogether. Such aninterpretation would obfuscate the purpose of the resort tax, which is to help the Town offset thecosts associated with millions of tourists visiting the Town each year.

Whether a ticket is sold over the Internet, over the phone or in person is irrelevant. What isrelevant for puiposes of the applicability of the resort tax is where the person is located whenthey attend the show for which the ticket was purchased, which is within the Town. The Theateris providing a service tp the ticket holder, which is a luxury under the definition in both theTown's ordinance and also Section 7-6-1503, MCA, as "any item normally sold to the public orto transient visitors or tourists,,' Further, such performances are not exempt in accordance with3.12.130 of the Town Code.

sitate to contact me.If you have any questions about this matter, do ttot hesita

Sincerely,

Mersenest Yellowstone Town Attorney

Kxhibit K

' • <i .- '

TOVyN PF ~KST YELLOWSTONEMOÃIAN

April 17, 2015

business license year.

A

days of the date of this letter.

Playmill TheatreRoger 8t; Heidi Merri l l3825 E. 800 N.Rigby, ID 83442

RE: Resort Tax Audit

Dear Roger 8z Heidi,

Attached you will Gnd the legal opinion provided by the Town's Legal Counsel asrequested (on your behal o by the Town Council at the April 7'" town councilmeeting..

The opinion states that 'whether the ticket is sold over the Internet, over the phoneor in person is irrelevant' and that 'such performances [of the Playmill Theatre] arenot exempt in accordance with 3.12.130 of the Town Code.'

In accordance with this opinion, the Town Gnds the Playmill Theatre still owing$17,725.92 in resort tax. Please remit your tax payment or. make arrangements forpayment with the Finance Office of the Town of West Yellowstone within thirty (30)

Please also be advised that unless payment has been received or arrangements havebeen made, your business license will not be renewed for the upcoming 2015 16

If you have any questions regarding this matter, please contact the Town Office at(406) 646-7795.

Sinc'e.re

Lanie GospodarekFinance DirectorTown of West Yellowstone

". Pt'II

P.O. Box 1570 West Yellowstone, Montana 59758 (406) 646-7795 ~ax (4o 646-7511.I

Exhibit F

ORDINANCE No. 258

AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF WESTYELLOWSTONK, MONTANA REVISING THE WEST YELLOWSTONEMUNICIPAL CODE TO REVISK THK RESORT TAX ORDINANCEAMENDING SECTION 3.12.

WHEREAS, the Town'Council of the Town of West Yellowstone has enacted a Resort TaxOrdinance pursuant to P-6-1502 et. seq, MCA; and

WHEREAS, the Town Council of the Town of West Yellowstone believes that changesand updates to that ordinance are in order for the benefit and well being of the citizens of the Townof West Yellowstone; and

WHEREAS, the Town Council has consider the proposed amendments to the Town Codeat a public meeting on April 21, 2015 and at a public hearing on May 5, 2015, and allowed forpublic comment at both; and

WHEREAS, after due consideration, the Town Council of the Town of West Yellowstonedesires to adopt the changes proposed and discussed:

Yellowstone that the amendments that are set out on the attached Exhibit A, which effectivelyamend the municipal code of the Town of West Yellowstone, more specifically Sections 3.12.010through 3.12.190 as set out on the attached exhibit:

NOW THEREFORE, BE IT ORDAINED by the Towii Council of the Town of West

Section 1: See attached Exhibit A

Section 2: REPEALKR: All ordinances and parts of ordinances in conflict withprovisions of this ordinance, except as provided above, are hereby amended or repealed.

Section 3: EFFECTIVE DATE: This ordinance shall be in full force and effect thirty (30)days after final adoption by the Town Council of the Town of West Yellowstone.

Section 4: SEVERABILITY: If any portion of this ordinance or the application thereforeto any person or circumstance is held invalid, such invalidity shall not affect other provisions ofthis ordinance which may be given effect without the invalid provisions or application and, to thisend, the provisions of this ordinance are declared to be severable.

PASSED BY the Town Council and approved by the Mayor of the Town of WestYellowstone, Montana, this G da y of 2015.

May

Co Council mb

Council Me er ouncil M r

Town Clerk

3.12.010 Created — General provisions-Imposed

A. There ls imposed a resort tax on the retail value of all goods and services sold or provided by businesses,

groups or organizations located within the town, regardless of the method or manner of the transaction, by the

following:

1. Hotels, motels, condominiums, vacation rentals, cabins and any other nightly or weekly

lodging or camping facilities;

2. Restaurants, fast food stores, convenience stores, and other food service establishments;

3. Taverns, bars, nightclubs, lounges and other public establishments that serve beer, wine,

liquor or other alcoholic beverages by the drink;

4. Gr oups, organizations, or temporary vendors, with or without tax exempt status;

5, An y business that sells luxuries as defined in 3.12.040 below.

Businesses or organizations that sell luxuries must collect a tax on such luxuries.

3.12.020 Definitions.

A. The terins "luxuries," "medical supplies," and "medicine" shall be defined as set forth in MCA.Section

rat-taot and as setforthinmoredetail below.

B. All references to the "resort tax" andetax" in this chapter shall refer to the resort tax passed by the electorate

of West Yellowstone and as enacted by the ordinance codified in this chapter.

3.12.030 Imposed

There is imposed a duty on each operator of any of the establishments mentioned in this chapter to collect, upon

sale, the tax imposed as set forth in this chapter on all customers, regardless of state or federal tax status, withthe only exceptions being those set out in g 3.12.130.

3.12.040 Luxuries tax.

Each business, group or organization subject to the tax shall collect the same on the retail value of ali goods andservices sold within the town by the establishments set forth in Section 3.12.010. All luxuries shall be taxed.

"Luxuries" shall inciude but not be limited to:

a.) any gift item, luxury item or service, or other itern, or other item normally sold to the public or to

transient vlsitors or tourlsts; but the term does not include unprepared food, medicine, medical supplies and

services, or any necessities of life.

b.) sporting goods or the rental thereof,

c. ) rentals on or for the following snowmobiles, automobiles, all-terrain vehicles, motorcycies, bicycles,

skis, boats, campers, boat motors;

d. ) recreational lessons and recreational services, including float trips, guided trips, skiing, fishing tdips,hunting trips, backcountry dining trips, other outfitter trips; horseback riding; golfing, rock climbing, cycling,

rafting, canoeing, kayaking, dog sledding and ballooning, tours and other attractions;

e. ) all souvenir and localized items such as imprinted hats and T-shirts and curios; all nonfood items

such as, housewares (other than household appliances), automotive supplies and parts; ice; retail liquor, beer

and wine,.except that sold at state stores.

f. ) all attractlons such as arcades, bowling centers, concerts, movie/theater tickets and all

concessions; event and entertainment tickets (regardless of the method or location of purchase), cover

charges, rodeo tickets, voluntary recreational activities such as golfing, swimming, skiing, tanning beds, and

other voluntary recreational daily tickets and season passes.

g.) any other goods or services not exempt by tl3.12.130 below.

3.12.0SO Rate-Durat ion.

A. The exact rate of the resort tax is three percent.

B. The duration of the resort tax as approved by the voters on November 5, 1985 is twenty years from its

effective date. The effective date of the resort tax is January 1, 1986.

C. The duration of the resort tax renewal as approved by the voters on November 5, 2002, is twenty years from

its effective date. The effective date of the resort tax renewal is January 1, 2006.

3.12.060 Resort tax payrnent.

The resort taxes collected by a business in any month are to be paid to the town on or before the twentieth day of

the following month, or if such day falls on a Saturday, Sunday or holiday, then on the next business day. Resort

tax payments sent by mail or private courier must be received by the town on or before the twentieth day of each

month, or if such day falls on a Saturday, Sunday or holiday, then on the next business day.

3.12.0?0 Collectlon duties and responsibilities

A. The office responsible for receiving and accounts for the resort tax receipts is the town clerk and treasurer.

B. The operations manager and his/her agents shail be responsibie for enforcing the collection of resort taxes

and shall be responsible for overseeing the methods and procedures to be used in enforcing the collection of the

resort taxes.

3.12.080 Resort tax collection fee.

Each collecting merchant shall be entitled to withhold two and one-half percent of the resort taxes collected to

defray costs for collecting the resort tax, providing that resort tax payments are timeiy made in accordance with

Section 3.12.060. The resort tax collection fee may be withheld by the business at the time of paying the tax to the

town. Failure to withhold the fee shall constitute waiver and forfeiture of the same.

3.12.090 Records and forrns.

The town shall provide each business that is required to collect resort tax with the proper forms for reporting and

making payment to the town. Resort tax payments to the town shall be tabulated and accounted for on forms

prescribed and furnished to the business by the town. The records and forms held by the town shall beconfidential, and shall not be open to inspection by the pubiic unless so ordered by a court of competent

jurisdiction. Each business that is required to collect resort tax must maintain adequate accounting records and

pay the resort tax to the town on the forms provided by the twentieth day of the following month. The accounting

records maintained must be accurate, verifiable, and provide a reasonable audit trail. Failure to maintain

adequate accounting records constitutes a violation of this chapter.

3.12.100 Preservation of records.

Every business required to collect and pay resort tax shall keep and preserve for a period of not less than three

years all records necessary to deterrnine the accuracy of the taxes paid, and shall make these records available

for audit or inspection on its business premises at all reasonable times. Any audit or inspection shall be

conducted in West Yellowstone on the premises of the business or establishment collecting the resort tax or at

such other location as the town may determine.

3.12.110 Random audit

Periodic random audits shall be conducted under the direction of the mayor, operations manager or a designated

representative and all business operators shall cooperate in afl respects in the conduct of the audits. Any random

audit shall be for the previous calendar year, and shall be conducted in West Yellowstone on the prernises of the

business or establishment collecting the resort tax or at such other location as the town may determine. If the

audit deterrnines a deficiency it wiil be at the discretion of the town to audit the previous two years and require a

follow up audit on the next reporting year. Payments and or arrangements for payment of the amount determined

as outstanding resort tax owed rnust be paid or arranged within thirty (30) days of the date of the notification of the

audit results Failure to cooperate in any audit or inspection of records, including the failure to make the

appropriate records available within fourteen (14) caiendar days of the auditor's scheduled audits in West

Yellowstone, may result in an automatic non-renewal of the business license for the subsequent business license

year and shall constitute a violation of the provisions of this chapter.

3.12.120 Appeals.

Any business may appeal to the town council any assessment of penalty or interest; provided, that notice of

appeal in writing is filed with the town clerk within thirty days of the serving or mailing of the determination of the

arnount of penalty and interest due. The town council shaH on the next immediate regular town oouncil meeting fix

the time and place for hearing the appeal and the town clerk shall cause notice in writing to be personally served

by a peace officer upon the operator. The findings and decision of the town councii shall be final and conclusive

and shaH be served upon the appellant in the manner prescribed for service of notice of hearing or by certified

mail directed to the business operator's last known address. Any amount found to be due shall be immediately

payable upon service of the findings and decision.

3.12.130 Exemptions

Notwithstanding Section 3.12.040, however, the foliowing goods and services shall be exempt from the tax:

A. Utilities and utility services;

B. Medical supply services and medicine;

C. Wholesale merchandise for resale at retail or used in the purchaser's business as supplies;

D. Gasoline and other motor vehicle fuel;

E. Liquor sold at state liquor stores;

F. Propane and similar home fuels;

G. Sales of automobiles, trucks, snowmobiles, motorcycles, all-terrain vehicles, bicycles, skis, boats, outboard

motors and chain saws;

H. Labor on automobiles, trucks, snowrnobiles, motorcycles, all-terrain vehicles, bicycles, boats, outboard

motors and chain saws;

I. All non-recreational labor, services and non-recreational state licensed professions and trades;

J. All payroll and business and labor costs;

K. Lumber, building supplies and tools, and other tools;

L. Household appliances;

M. Any hotel, motel, campground or other lodging facility occupancy, with respect to any person or persons

who occupy a room or a space for a period longer than thirty consecutive calendar days; provided, that such

person certifles prior to occupancy that the occupancy will exceed thirty consecutive calendar days and does in

fact exceed thirty consecutive caiendar days;

N. A i l sales of goods from businesses via the Internet, catalog or telephone that are shipped out of town and

the purchaser never enters the boundaries of the town shall be exempt. Any goods, services or Iuxuries that are

sold by any means and that will either be obtained, consurned, or enjoyed within the town are not exempt.

Further, the services described in 3.12.040 above and sold by a business located within the town but consumed

or enjoyed outside the boundaries of the Town are not exempt, regardless of the method of payment.

3.12.140 Use of tax moneys.

A. The tax moneys derived from the resort tax may be appropriated by the town councii for any activity,

undertaking, or administrative service that the municipality is authorized by iaw to perform, including costs

resulting from the imposition of the tax.

B. There is established a marketing and promotion (MAP) fund for the town. Two and one-half percent of the

three percent resort tax collected by the collecting merchant shall be dedicated exclusively to the MAP fund,

which fund shall be used solely for the marketing and promotion of West Yellowstone and the surrounding area,

as well as the associated costs of administering the fund. The town council may appropriate additional resort tax

receipts to the MAP fund.

C. The town council shall by resolution establish a board of not less than three or more than seven qualified

persons to oversee the MAP fund. At least one member of this board shall be a sitting member of the town council

or the council's designee. The board shall establish policies and procedures for its operation and the general

management of the fund in accordance with the council's resoiution establishlng the board. The board shall also

select individual marketing and promotion projects and approve expenditure of funds for such projects, subject to

approval by the town council,

3.42.150 Reduction of property tax levy.

Annually anticipated receipts from the resort tax must be applied to reduce the municipal property tax levy for the

fiscal year in an amount equal to five percent of the resort tax revenues derived during the preceding fiscal year.

3.12.160 Property tax relief fund.

In the event the town receives more resort tax revenues than had been included in the annual municipal budget,

it shall establish a municipal property tax relief fund, and aii resort tax revenues received in excess of the budget

amount rnust be placed in the fund. The entire fund must be used to replace municipal property taxes in the

ensuing fiscal year.

3.12.170 Resort tax administration

The town shall administer resort tax collections according to the following rules:

A. Resort tax payments shall be made to the town finance office by the established deadline.

B. Failure to report or make resort tax payments by the payment deadline shall result in forfeiture of the resort

tax collection fee for the month in which the payment is due.

C. Failure to pay resort tax before the end of the month in which the payment is due shall result in an

administrative fee'of either: (1) twenty-five doIIars for businesses with gross sales of one thousand five hundred

dollars or less for the reported month; or (2) fifty dollars for businesses with gross sales in excess of one thousand

five hundred dollars for the reported month, which shall be in addition to any civil penalties awarded to the town in

a suit for collection of resort tax.

D, At the end of each subsequent month after the original payment is due, the town will assess interest at therate of three percent (3%) of any delinquent resort tax, which shall be assessed on the first business day of the

subsequent month and on the first day of each month thereafter until the total amount due, including the