Chapter 3.40 MAINTENANCE DISTRICTS

This chapter is adopted for the purpose of providing an alternative procedure for levying assessments against property specially benefited by public improvements to fund the cost of operating and maintaining such improvements which complies with Article XIIIC of the California Constitution as set forth in Proposition 218, adopted by the voters at the general statewide election on November 5, 1996, and Senate Bill 919 signed by the Governor July 1, 1997. (Ord. 841 §1(part), 2005)

3.40.020 Definitions.

Unless the contrary is stated or clearly appears from the context, the following definitions shall govern the construction of the words and phrases used in this chapter:

“Assessment district” means an area containing all parcels that will receive a special benefit from public improvements as determined by the city council.

“City engineer” means such competent person designated or approved by the city council or city manager to perform the duties imposed on the city engineer by this chapter.

“Cost of operating and maintaining public improvements” means all costs of rent, repair, replacement, rehabilitation, fuel, power, electric current, care and supervision necessary to properly operate and maintain a permanent public improvement.

“Property owner” or “owner of property” means any person owning the fee title to a parcel of real property, or owning an interest in any portion of the fee title to a parcel of real property. In addition, the term “property owner” or “owner of real property” shall also include any person renting or leasing real property where such person is directly liable to pay any assessment levied pursuant to the provisions of this chapter.

“Special benefit” means a particular and distinct benefit over and above general benefits conferred on real property located in an assessment district or to the public at large. “Special benefit” does not include a general enhancement of property values. (Ord. 841 §1(part), 2005)

3.40.030 Manner of serving notices and other documents.

Any notice or other document required to be served on an owner of property pursuant to the provisions of this chapter shall be typed or printed in at least ten-point type, and shall be deemed served either when personally delivered to such person, or when deposited in the first class United States mail, postage prepaid, addressed to such person at his or her address as it appears on the last equalized assessment roll or supplemental roll of the county of lake, whichever is more current, or at his or her address as it appears on a notice of intention to file property owner petition where maintenance assessment district proceedings are being initiated by a property owner petition in the manner hereinafter provided by this chapter. Service by mail of a notice or other document in the manner provided for in this chapter shall be effective on the date of mailing, and any failure of any person to receive such notice or other document shall not affect the validity of the notice or other document. (Ord. 841 §1(part), 2005)

3.40.040 Initiation of assessment district proceedings by council resolution.

Proceedings to establish a maintenance assessment district pursuant to the provisions of this chapter may be commenced by the city council by adoption of a resolution of intention. Such resolution shall include a description of the proposed maintenance assessment district boundaries and a description of the public improvements to be maintained with assessment district revenues. In addition, such resolution shall direct the city engineer to promptly prepare a city engineer’s report on the proposed maintenance assessment district in the manner hereinafter required by this chapter. Immediately following the adoption of such resolution of intention, the city clerk shall forward a copy of same to the city engineer. (Ord. 841 §1(part), 2005)

3.40.050 Initiation of assessment district proceedings by property owner petition--Generally.

Proceedings to establish a maintenance assessment district pursuant to the provisions of this chapter may also be initiated by petition of the owner or owners of all the property specially benefited by the public improvements to be maintained with assessment district revenues in the manner hereinafter provided by this chapter. (Ord. 841 §1(part), 2005)

3.40.060 Initiation of assessment district proceedings by property owner petition--Notice of intention to file property owner petition.

Prior to filing a petition to establish a maintenance assessment district, the person or persons proposing to circulate and/or file such petition shall file a notice of intention to file a property owner petition with the city clerk. Such notice of intention shall include a description of the proposed assessment district boundaries, a description of the public improvements to be maintained with assessment district revenues, and the name, mailing address, e-mail address, if any, and the telephone number of the person or persons filing such notice. In addition, such notice shall be accompanied by a filing fee in an amount equal to the estimated costs of preparing and reviewing the engineer’s report required for the establishment of a maintenance assessment district in the manner provided for by this chapter, all as determined or calculated from the maintenance assessment district fee schedule adopted by resolution of the city council. Immediately following the filing of such notice of intention, the city clerk shall forward a copy of same to the city engineer. (Ord. 841 §1(part), 2005)

3.40.070 Initiation of assessment district proceedings by property owner petition--Execution and filing of petition.

A petition to establish a maintenance assessment district pursuant to the provisions of this chapter shall be executed by the person or persons owning all of the property or properties within the proposed boundaries of the assessment district and shall be filed in the office of the city clerk. In addition to requesting establishment of the maintenance assessment district, such petition shall describe the boundaries of the proposed assessment district, shall describe the public improvements to be maintained with assessment district revenues, shall set forth the total amount of the annual assessments necessary to maintain such improvements, shall describe the method by which such annual assessments will be apportioned according to estimated benefits among the various lots or parcels then located or thereafter established within the assessment district boundaries, all in, the manner provided for in the report of the city engineer, and shall be approved as to form by the city attorney.

A petition to establish a maintenance assessment district pursuant to the provisions of this chapter may also include a waiver of the right of the petitioner or petitioners to any notice of the protest hearing on the assessment district to be convened before the city council at the time and in the manner hereinafter required by this chapter, and may also authorize the city clerk, upon receipt of the petition, to record the petition as the vote of the petitioner or petitioners in favor of establishment of the assessment district at such protest hearing, all at the option of the petitioner or petitioners. (Ord. 841 §1(part), 2005)

3.40.080 Preparation of city engineer’s report.

Promptly following the adoption of a council resolution of intention to establish a maintenance assessment district, or promptly following the filing of a property owner notice of intention to file a petition to establish such an assessment district in the manner provided by this chapter, the city engineer shall prepare a report setting forth all of the following information:

A. A map of the proposed assessment district which shall indicate by a boundary line the extent of all property which will be specially benefited by the public improvements to be operated and maintained with annual assessment district revenues;

B. A detailed description of the type and location of the public improvements to be operated and maintained with such revenues;

C. The total annual assessments required to operate and maintain such public improvements, as well as the reasons for such assessments;

D. The method used to calculate the assessment against any lot or parcel of property within the boundaries of the assessment district according to such lot or parcel’s proportional benefit from such public improvements, as well as the annual assessment to be levied against any existing or proposed lot or parcel within the boundaries of the assessment district, calculated in accordance with such method of apportionment;

E. A statement of the method of calculating any increase in the amount of the total annual assessment as well as any increase in an annual assessment levied against a particular lot or parcel within the boundaries of the assessment district to account for inflation as hereinafter required by this chapter;

F. A statement that if the actual cost of operating and maintaining such public improvements during any year the assessment district remains in effect is less than the assessment levied for that year, the difference between the actual cost of operating and maintaining the public improvements and the assessment levied for that year shall be credited against the assessments levied during the next succeeding year in the manner hereinafter required by this chapter; and

G. The termination date of such assessment district if of limited duration, or a statement that the assessment district will continue from year to year until dissolved by the city council if the assessment district is not one of limited duration. (Ord. 841 §1(part), 2005)

3.40.090 Disposition of city engineer’s report--Proposed assessment district initiated by resolution of the city council.

Upon completion of the city engineer’s report on a proposed maintenance assessment district prepared in response to a resolution of intention to establish a maintenance district adopted by the city council, the city engineer shall file the original report with the city clerk who shall present copies of the report to the city council for its consideration at the time of the initial hearing on the maintenance assessment district, and make copies of the report available to any owner of property located within the boundaries of the proposed assessment district requesting same. (Ord. 841 §1(part), 2005)

3.40.100 Disposition of city engineer’s report--Proposed assessment district initiated by property owner petition.

Upon completion of the city engineer’s report on a proposed maintenance assessment district prepared in response to a notice of intention to file a petition for the establishment of a maintenance assessment district, the city engineer shall file the original report with the city clerk who shall promptly serve a copy or copies of the report on the person or persons who filed the notice of intention. If, following consideration of such report by the person or persons having filed the notice of intention, such persons proceed to file a petition to establish such assessment district, the city clerk shall present copies of the city engineer’s report to the city council at the time of the protest hearing on the proposed assessment district. (Ord. 841 §1(part), 2005)

3.40.110 Hearing on establishment of assessment district--Proposed assessment district initiated by resolution of the city council.

Immediately following receipt of the report of the city engineer on a proposed maintenance assessment district adopted by the city council, the city clerk shall schedule the matter for public hearings before the city council as follows:

A. The city clerk shall schedule the matter for an initial public hearing on the proposed assessment district before the city council no earlier than forty-five days nor later than ninety days after the receipt of such report and serve a notice of proposed assessment on each owner of property within the boundaries of the proposed assessment district in the manner hereinafter required by this chapter.

B. The city clerk shall also schedule the matter for a final protest hearing no earlier than seven days or later than forty-five days after the initial public hearing on the proposed assessment district conduced in the manner hereinafter required by this chapter. (Ord. 841 §1(part), 2005)

3.40.120 Hearing on establishment of assessment district--Proposed assessment district initiated by property owner petition.

Immediately following receipt of a petition to establish a maintenance assessment district executed and filed in the manner required by this chapter, the city clerk shall ordinarily cause the matter to be scheduled for a protest hearing before the city council at the first regular meeting of the city council occurring not less than forty-five days following the filing of such petition. However, if the petition to establish the maintenance assessment district includes a waiver of the right of the petitioner or petitioners to any notice of such protest hearing, and authorized the city clerk to record the petition as the vote of the petitioner or petitioners in favor of the assessment district, the city clerk shall cause the matter to be scheduled for a protest hearing before the city council as soon as practical. (Ord. 841 §1(part), 2005)

3.40.130 Notice of proposed assessment and hearing on proposed assessment.

At the time of setting a hearing or hearings on the establishment of a maintenance assessment district in the manner required by this chapter, the city clerk shall serve each owner of property within the boundaries of the proposed assessment district with a written notice of proposed assessment. Such notice shall set forth the date, time, and place of such hearing or hearings, and shall include all of the following information bearing on the proposed maintenance assessment district and proceedings to establish such assessment district:

A. A map of the assessment district;

B. A description of the type and location of all of the public improvements to be operated and maintained with annual assessment district revenues;

C. The total annual assessment chargeable to the entire district as well as the reasons for such assessment;

D. A statement of the method used to calculate the annual assessment against any lot or parcel of property within the boundaries of the assessment district according to such lot or parcel’s proportional benefit from such public improvements, as well as the annual assessment to be levied against each and every existing or proposed lot or parcel within the boundaries of the assessment district, calculated in accordance with such method of apportionment;

H. An explanation of the right of each property owner within the boundaries of the proposed assessment district to cast a ballot in favor of or against such assessment district, a summary of the procedures applicable to the completion and return of ballots, the last day for returning ballots, a description of the manner in which ballots will be weighted and tabulated, and a statement that if, after the ballots are weighted and tabulated in the manner described therein, a majority of the ballots submitted in opposition to the proposed assessment district exceeds the ballots submitted in favor of the pro posed assessment district, proceedings on the proposed assessment district will be abandoned. (Ord. 841 §1(part), 2005)

3.40.140 Preparation and distribution of assessment district ballots.

At the time of setting a hearing or hearings on the establishment of a maintenance assessment district in the manner required by this chapter, the city clerk shall also serve each owner of property within the boundaries of the proposed assessment district with an assessment district ballot. Such ballot shall include a place where a property owner may set forth his or her name, reasonable identification of the lot or parcel within the boundaries of the proposed assessment district that is owned by such person, and such person’s vote in favor of or in opposition to the proposed assessment district. Along with such ballot, the city clerk shall serve each owner of property within the boundaries of the proposed assessment district with a ballot envelope containing the address where such ballot may be mailed or personally delivered to the city clerk for tabulation. (Ord. 841 §1(part), 2005)

3.40.150 Return of ballots.

All ballots cast by an owner of property within the boundaries of a proposed maintenance assessment district must be received by the city clerk no later than the conclusion of the protest hearing thereon, regardless of whether such ballot is personally returned to the city clerk or returned to the city clerk by mail. Any ballot delivered to the city clerk after such date or time shall be deemed invalid. (Ord. 841 §1(part), 2005)

3.40.160 Tabulation and certification of ballot results.

Upon receipt of a ballot cast by the owner of property within the boundaries of a proposed assessment district, the city clerk shall determine the weight of such ballot based on a proportion equal to the ratio between the amount of the proposed annual assessment to be borne by the owner of the property casting such ballot and the total amount of the proposed annual assessments to be borne by all owners of property within the boundaries of the proposed assessment district. At the conclusion of the protest hearing, the city clerk shall tabulate the total vote cast in favor of the proposed assessment district and those cast against the proposed assessment district after weighting such ballots in the manner hereinbefore provided by this section, and shall certify the results of such tabulation in writing to the city council. (Ord. 841 §1(part), 2005)

3.40.170 Conduct of initial hearing on proposed assessment district initiated by resolution of the city council.

At the initial hearing, on a proposed maintenance assessment district initiated by resolution of the city council, the city council shall receive and consider the city engineer’s report on the proposed assessment district, as well as all comments on such report or any other matter relevant to the establishment of the proposed assessment district made by the owners within the boundaries of the proposed assessment district. At the conclusion of the hearing, the city council shall either approve the city engineer’s report as presented, approve the city engineer’s report with such modifications to such report as the city council determines to be necessary in order to comply with the requirements of law, or abandon further proceedings on the proposed maintenance assessment district if the council determines that the district cannot be established in a manner that complies with the requirements of law or that establishment of the assessment district is not otherwise warranted.

If, at the conclusion of such hearing, the city council determines to modify any provision of the city engineer’s report bearing on the reasons for the proposed maintenance assessment district, the total amount of the annual assessment chargeable to the entire assessment district, the method used to calculate the annual assessment against any lot or parcel of property within the boundaries of the assessment district, the amount of the assessment levied against any lot or parcel within the assessment district, or the duration of the assessment district, the city clerk shall promptly cause notice of such modification to be served on each owner of property within the assessment district affected by such modification prior to the protest hearing on the assessment district. Similarly, if at the conclusion of such hearing, the city council determines to abandon further proceedings on the proposed maintenance assessment district, the city clerk shall promptly serve notice thereof on all property owners within the boundaries of the proposed assessment district. (Ord. 841 §1(part), 2005)

3.40.180 Conduct of protest hearing--Proposed assessment district initiated by resolution of the city council.

At the protest hearing on a proposed maintenance assessment district initiated by resolution of the city council, the city council shall receive copies of all ballots for and against the assessment district and the city clerk’s tabulation of such ballots. In addition, the council shall hear further comments from the owners of property within the boundaries of any proposed maintenance assessment district on any matter bearing on the establishment of the proposed assessment district or the administration thereof. (Ord. 841 §1(part), 2005)

3.40.190 Conduct of protest hearing--Proposed assessment district initiated by property owner.

At the protest hearing on a proposed maintenance assessment district initiated by a property owner petition, the city council shall receive the city engineer’s report, the property owner’s petition requesting formation of the assessment district, all ballots for and against the assessment district and the city clerk’s tabulation of such ballots. In addition, the council may, but shall not be required to, hear the comments made by an owner of property within the boundaries of the proposed maintenance assessment district bearing on the establishment of the assessment district or the administration thereof. (Ord. 841 §1(part), 2005)

3.40.200 Conduct of protest hearing--Final determination.

If, at the conclusion of the protest hearing, the city council finds that the votes cast by property owners within the boundaries of the proposed maintenance assessment district in favor of the assessment district exceed the votes cast by property owners against the assessment district when weighted in the manner required by this chapter, and, in addition, finds that establishment of the district otherwise complies with the requirements of law and is warranted, the city council shall adopt a resolution approving and establishing the assessment district, and such findings shall be final and conclusive as to all persons. If, on the other hand, the city council finds either that the votes cast by property owners within the boundaries of the proposed maintenance assessment district against the assessment district exceed the votes cast by property owners in favor of the assessment district when weighted in the manner required by this chapter, that establishment of the assessment district does not comply with the requirements of law, or that establishment of the assessment district is otherwise not warranted, the city council shall, by motion, abandon further proceedings on the assessment district. (Ord. 841 §1(part), 2005)

3.40.210 Recordation of notice of assessment.

Upon adoption of a resolution approving the establishment of a maintenance assessment district pursuant to the provisions of this chapter, the city clerk shall provide a notice of the assessment, substantially in the form provided for by subsection A through F of Section 3.40.130 of this chapter to be recorded in the office of the Lake County recorder whereupon all persons shall be deemed to have notice of the establishment of the assessment district. (Ord. 841 §1(part), 2005)

3.40.220 Assessment district modification--Generally.

At any time following the establishment of a maintenance assessment district in the manner provided by this chapter, the city council may modify such assessment district either by changing the boundaries of the assessment district, by changing the type or scope of public improvements to be operated and maintained with annual assessment district revenues, or by changing the method of apportioning the costs of operating and maintaining such improvements among the various lots and parcels within the boundaries of the assessment district. (Ord. 841 §1(part), 2005)

3.40.230 Assessment district modifications--Initiation of modification proceedings.

Proceedings to modify a maintenance assessment district following establishment of the assessment district in the manner provided by this chapter shall be initiated by the city council by the adoption of a resolution of intention to make such modification. In such resolution, the city council shall identify the maintenance assessment district being modified, shall describe, with particularity, the nature of the modification, shall set a time and place for a hearing on the modification, and shall include a statement that all owners of property which are or will be included within the boundaries of the modified assessment district may protest or otherwise be heard on the modification. (Ord. 841 §1(part), 2005)

3.40.240 Assessment district modifications--Conduct of modification proceedings.

Proceedings to modify a maintenance assessment district established by the city council in the manner provided by this chapter shall be conducted in the same manner provided by this chapter for the initial establishment of an assessment district following adoption by the city council of a resolution of intention to establish the assessment district. (Ord. 841 §1(part), 2005)

3.40.250 Dissolution of assessment district.

At any time following the establishment of a maintenance assessment district in the manner hereinbefore provided by this chapter, the city council may dissolve such district. Proceedings to dissolve a maintenance assessment district shall be initiated by the city council by adoption of a resolution of intention to dissolve the assessment district. In such resolution of intention, the city council shall identify the maintenance assessment district being dissolved, shall set forth the reasons for the dissolution, and shall set forth the date, time, and place for a hearing at which any owner of property within such district may object to such dissolution. At least ten days prior to the date of a hearing on the dissolution of a maintenance assessment district, the city clerk shall serve a notice of the hearing on each owner of property within the boundaries of the assessment district. If at the conclusion of the hearing on the proposed dissolution of a maintenance assessment district, the city council determines that dissolution of the assessment district is warranted, the council shall adopt a resolution ordering the assessment district dissolved. (Ord. 841 §1(part), 2005)

3.40.260 Adjustment to annual assessments based on increases in consumer price index.

If, on the first day of the city fiscal year commencing on July 1st following the establishment of a maintenance assessment district in the manner provided in this chapter, and on the first day of each fiscal year thereafter that the assessment district remains in effect, there is an increase in the cost of operating and maintaining the public improvements to be funded with assessment district revenues, as measured by an increase in the consumer price index during such period of time, then the total annual assessment levied against all properties within the assessment district, as well as the proportional annual assessment levied against each lot or parcel within the boundaries of the assessment district shall also be increased in proportion to the increase in such costs.

The determination of whether there has been an increase in such costs and the amount of the increase in such assessments which is proportional to the increase in such costs shall be made by the public works superintendent and shall be based exclusively on the percentage increase during such period of time in the consumer price index published by the Federal Bureau of Labor Statistics of all Urban Consumers--U.S. Cities Average (all items) or such other measure employed by the U.S. Department of Labor Statistics in lieu of such consumer price index which measures the cost of living in U.S. cities. (Ord. 841 §1(part), 2005)

3.40.270 Credits against annual assessments based on prior year maintenance costs.

If, on the first day of the city fiscal year commencing on July 1st following the establishment of a maintenance assessment district in the manner provided by this chapter, and on the first day of each fiscal year thereafter that the assessment district remains in effect, the total annual assessment levied during the preceding fiscal year exceeded the actual cost of operating and maintaining the public improvements to be funded with assessment district revenues during such preceding fiscal year, then the total annual assessment levied against property within the assessment district during the ensuing fiscal year shall be reduced by a credit equal to the difference between the total annual assessment levied during the preceding fiscal year and the actual cost of operating and maintaining the public improvements to be funded with assessment district revenues during such preceding fiscal year.

In particular, the total annual assessment levied against all property within the maintenance assessment district shall be reduced during the ensuing fiscal year, and only during the ensuing fiscal year, by an amount equal to the difference between the total annual assessment levied during the preceding fiscal year and the total cost of operating and maintaining the public improvements to be funded with assessment district revenues during such preceding fiscal year, and the annual assessment levied against each individual lot or parcel within the boundaries of the assessment district shall be reduced during the ensuing fiscal year, and only during such ensuing fiscal year, by a portion of such amount which is calculated by the public works superintendent using the method of apportionment set forth in the city engineer’s report as approved by the city council at the time the district was established. (Ord. 841 §1(part), 2005)

3.40.280 Preparation of annual register of maintenance district assessments.

On July 1st of each year following the establishment of a maintenance assessment district pursuant to the provisions of this chapter or as soon thereafter as practical, the public works superintendent shall prepare a register of all assessments having been levied within an assessment district established pursuant to the provisions of this chapter. Such register shall identify each maintenance assessment district established pursuant to the provisions of this chapter by its number or other designation, and shall set forth the assessor’s parcel number of every lot or parcel of real property within the boundaries of each such assessment district, the name and address of the owner or owners of such lot or parcel if required by the Lake County auditor, and the amount of the annual assessment levied against such lot or parcel during the current tax year as adjusted for inflation and prior year credits in the manner required by this chapter. Upon completion of such register, the public works superintendent shall file same with the Lake County auditor with a request that the assessments be added to the secured tax roll for the current fiscal year. (Ord. 841 §1(part), 2005)

3.40.290 Collection of maintenance district assessments on secured tax roll.

Upon receipt of the annual register of maintenance district assessments prepared by the public works superintendent in the manner required by this chapter, the Lake County auditor shall cause the maintenance district assessments set forth in the annual register to be added to the secured tax roll of the county. Thereafter, all such maintenance district assessments shall be paid and collected in the same manner and at the same time as the general taxes of the county on real property are paid and collected, and such assessments shall become delinquent at the same time and bear the same proportionate penalties and interest after delinquency as do the general taxes of the county on real property. (Ord. 841 §1(part), 2005)