Chapter 3.33
ASSESSMENT DISTRICT ALTERNATIVE PROCEDURES

Sections:

3.33.005    Short Title.

3.33.010    Provisions Not Exclusive—Applicability of Laws—Conflicting Provisions.

3.33.020    Definitions.

3.33.030    Declaration of Policy.

3.33.040    Authority and Procedure.

3.33.050    Assessment of Possessory Interests.

3.33.060    Method of Collection—Alternative Methods.

3.33.070    Form of Bonds—Maturities.

3.33.080    Authority to Covenant to Secure Bonds.

3.33.090    Actions or Proceedings to Attack Assessments—Time for Perfection of Appeal.

3.33.005 Short Title.

This chapter shall be known as and may be cited as the “City of Newport Beach Assessment District Alternative Procedures Chapter.” (Ord. 2000-17 § 1 (part), 2000)

3.33.010 Provisions Not Exclusive—Applicability of Laws—Conflicting Provisions.

The provisions of this chapter are not exclusive. The power and authority conferred upon the City Council by the provisions of this chapter are in addition to and supplemental to the powers conferred by any other chapter of the City or law. The provisions of this chapter shall not affect or limit any other provisions of law authorizing or providing for the furnishing of public improvements or the raising of revenue for these purposes. The City may use the provisions of this chapter instead of any other method to finance part or all of the cost of providing the authorized kinds of public improvements. Additionally, the City Council may elect to follow the procedures now or hereafter provided by general law, including without limitation, the Act; provided, however, that whenever the City is acting pursuant to this chapter, the provisions of this chapter shall be controlling to the extent that they are in conflict with any of the provisions of such general law. (Ord. 2000-17 § 1 (part), 2000)

3.33.020 Definitions.

Unless the context otherwise requires, the definitions contained in this section shall govern the construction of this chapter, including all provisions incorporated into this chapter by reference.

“Act” means the Municipal Improvement Act of 1913, as amended (Streets and Highways Code Section 10000 and following).

“Bond” or “bonds” means any binding obligation to pay or repay a sum of money, including obligations in the form of bonds, certificates of participation, long-term leases, loans from government agencies, or loans from banks, other financial institutions, private businesses, or individuals, or long-term contracts.

“Bond Act” means the Improvement Bond Act of 1915 (the “Bond Act”), (California Streets and Highways Code Division 10, Part 1, Section 8500 and following).

“Engineer” means the City Engineer or any other person designated by the City Council for the purposes of this chapter, including any officer, board, or employee of the City or any private person or firm specially employed by the City as engineer for purposes of this chapter. Notwithstanding the foregoing, the engineer shall be a registered professional engineer as defined in California Government Code Section 53750(l).

“Implementation Act” means the Proposition 218 Omnibus Implementation Act, being Article 4.6 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (Section 53750 and following).

“Land,” “parcel,” “parcel of land,” “property,” or “subdivision” means real property in any form, including a possessory interest.

“Landowner,” “owner of land,” or “owner” means any person shown as the owner of land on the last equalized assessment roll or otherwise known to the city to be the owner of the land. The City Council has no obligation to obtain other information as to the ownership of the land, and its determination of ownership shall be final and conclusive for the purposes of this chapter.

“Possessory interest” means a leasehold interest in tax-exempt real property for a term of thirty-five (35) years or more (including renewal options). For purposes of this provision, “tax-exempt real property” means real property that is owned in fee by the governmental entity including, but not limited to, the Federal government, the State, County or City. (Ord. 2023-22 § 168, 2023; Ord. 2000-17 § 1 (part), 2000)

3.33.030 Declaration of Policy.

As an alternative to any other method permitted by law, it is declared to be the policy of the City to permit the financing of the acquisition and construction of certain public improvements and the maintenance, repair and replacement of certain public improvements, including the conversion of existing overhead electric, communication or other utility facilities to underground locations, by means of special assessment proceedings pursuant to the authorization and procedure set forth in this chapter. It is further declared to be the policy of the City when appropriate to levy the assessment of the costs of public improvements against long-term leasehold interests in property owned in fee by the City. (Ord. 2000-17 § 1 (part), 2000)

3.33.040 Authority and Procedure.

A.    Whenever the public interest and necessity so require, the City Council of the City may, acting under and pursuant to this chapter, in compliance with the Implementation Act, establish an assessment district as provided for in the Act, or as such Act may be amended from time to time.

B.    Whenever the public interest and necessity so require, the City Council of the City may, acting under and pursuant to this chapter, authorize, issue, sell, and deliver assessment district bonds as provided for in the Bond Act, or as such act may be amended from time to time. (Ord. 2000-17 § 1 (part), 2000)

3.33.050 Assessment of Possessory Interests.

Assessments under this chapter may be levied against possessory interests in the same manner as assessments may be levied against other real property. Assessments levied against possessory interests may be collected in the same manner as assessments levied against other real property that are collected, including collection through judicial proceedings. (Ord. 2000-17 § 1 (part), 2000)

3.33.060 Method of Collection—Alternative Methods.

Unless an alternative method of collection of the assessments has been established as authorized by this section, the assessments levied pursuant to this chapter shall be collected at the same time and in the same manner as real property taxes are collected, and all laws providing for the collection and enforcement of real property taxes shall apply to the collection and enforcement of the assessments. The City Council in its discretion may, by resolution, establish an alternative method of collection of the assessments. Notwithstanding the foregoing, assessments levied pursuant to this chapter for which bonds are to be issued may be paid within thirty (30) days from the date of recording the assessment in the office of the Public Works Director. (Ord. 2023-22 § 169, 2023; Ord. 2000-17 § 1 (part), 2000)

3.33.070 Form of Bonds—Maturities.

Notwithstanding Sections 8650 and 8650.1 of the Bond Act, the City Council, in its discretion, may determine, either (A) in the Resolution of Intention describing the improvement work; or (B) thereafter in any manner not inconsistent with the Resolution of Intention as adopted, the denomination or denominations of the bonds, the maturity date or dates of the bonds, the place or places of payment of the principal of and interest on the bonds, and the form of the bonds. Unless provided otherwise by the City Council, the bonds shall be issued in series and the principal thereof shall be payable on the second day of September every year succeeding the first twelve (12) months after their date, until the whole is paid. The bonds shall bear interest at a rate not in excess of the maximum rate permitted by law from their date on all sums unpaid, until the whole of the principal sum is paid. (Ord. 2000-17 § 1 (part), 2000)

3.33.080 Authority to Covenant to Secure Bonds.

A.    Whenever bonds are to be sold and delivered under this chapter with respect to an assessment district, the City Council may, by resolution adopted prior to the sale and delivery of bonds, take any action the City Council deems appropriate to secure the timely payment of the principal of and interest on the bonds, including any one or more of the following:

1.    Covenant for the benefit of bondholders that the City shall not terminate any possessory interest subject to an assessment for which the bonds were sold; or

2.    Notwithstanding Section 8769 of the Bond Act, covenant for the benefit of bondholders to pay all or any portion of the principal of and interest on the bonds necessary because of delinquencies in the payment of one or more assessment installments or the inability to collect one or more assessment installments.

B.    When any amounts are paid by the City for the payment of the principal of and interest on bonds as a result of delinquent assessments, the delinquent assessments shall remain a charge against the property that was subject to the delinquent assessments. (Ord. 2023-22 § 170, 2023; Ord. 2000-17 § 1 (part), 2000)

3.33.090 Actions or Proceedings to Attack Assessments—Time for Perfection of Appeal.

Any action or proceeding to attack, review, set aside, void, or annul the levy of an assessment or an increase in assessment pursuant to this chapter shall be commenced within thirty (30) days after the assessment is approved by the City Council. Any appeal from a final judgment in that action or proceeding shall be perfected within thirty (30) days after the date of the judgment. (Ord. 2000-17 § 1 (part), 2000)