Chapter 16.10
LOCAL IMPROVEMENTS – ACQUISITION AND IMPROVEMENT PROCEDURE
Sections:
Article I. Investigation Proceedings
16.10.010 Preliminary hearing when proceedings not taken under State law.
16.10.020 Adoption of preliminary determinations by resolution – Information required.
16.10.040 Persons eligible to object to noncompliance with State law.
16.10.050 Final determination of necessity by resolution.
16.10.060 Proceedings for modifications and changes generally.
16.10.070 Application of article.
Article II. Proceeding UnderImprovement Act of 1911
16.10.090 Application to chapter.
16.10.100 Alternative method for collection of cash assessments – Generally.
16.10.110 Information required in resolution.
16.10.120 Filing of copy of resolution – Extension of taxes on tax roll.
16.10.130 Collection – Delinquency.
16.10.140 When due and to whom payable – Default.
Article III. Proceeding Under Street Opening Act of 1903
16.10.160 Application to chapter.
16.10.170 Proceedings for closing or abandoning streets, etc.
16.10.180 Designation of ordinance of intention – Notice of improvement.
16.10.190 Cash assessments or assessments under twenty-five dollars ($25.00).
Article IV. Proceeding Under Municipal Improvement Act of 1913
16.10.200 Application to chapter.
16.10.220 Issuance of bonds upon supplemental assessment.
16.10.230 Assessments – Payment.
16.10.240 Eminent domain proceedings.
16.10.250 Stipulations, offsets and references to referees.
16.10.270 Credit of surplus on assessment.
Article V. Parking Districts
16.10.280 "Parking place" defined.
16.10.290 Powers of City Council generally.
16.10.300 Improvement districts generally –Procedure for formation of same.
16.10.310 Acquisition of property.
16.10.320 Property owned by City.
16.10.330 Sale of property acquired for parking places.
16.10.340 Lease of property for parking places.
16.10.350 Utilization of surplus space for parking places.
16.10.360 Fees and rentals, etc., to be set by City Council.
16.10.370 Operation of parking places generally.
16.10.380 Annual assessment for maintenance of parking places.
16.10.400 Report – Hearing procedures –Disposition generally.
16.10.410 Collection of assessment.
16.10.450 Hearing and power of City Council generally – Order of annexation and effect of same.
Article VI. Maintenance Districts
16.10.460 New maintenance districts.
16.10.480 Applicable general law.
16.10.490 Alternative method for the levy of benefit assessments.
16.10.500 Applicability to maintenance districts formed prior to effective date hereof.
Article VII. Municipal Park Improvement Districts
16.10.560 Governed by Council.
16.10.590 Title to property – Assignment of contracts to district.
16.10.600 Statute applicability generally.
16.10.620 Acquisition or construction contracts – Combination with managing agency agreements.
16.10.640 Action by resolution.
16.10.650 Public convenience and necessity.
16.10.670 Issuance and sale of bonds.
16.10.680 Bond issuance – Division into series.
16.10.690 Determination of amount.
16.10.710 Loans to special fund.
16.10.740 Charges – Revision by agent.
16.10.760 Further bond security.
16.10.770 Disposition of surplus.
16.10.790 Managing agency agreements.
16.10.800 Validation of agreements.
16.10.810 Limitation of actions.
16.10.820 Judicial validation.
16.10.830 Applicability of Act and title.
16.10.840 Complete scheme of procedure.
16.10.850 Powers, limitations.
16.10.860 Inconsistency with other law.
16.10.870 Liberal construction.
16.10.880 Defect or omission validity of proceedings or bonds.
Article VIII. Santa Clara Downtown Business Improvement District
16.10.890 Resolution of intention, public hearing and findings.
16.10.910 Excluded business types.
16.10.920 Establishment of boundaries.
16.10.930 Establishment of district board of directors.
16.10.940 Establishment of benefit assessment.
16.10.950 Purpose and use of benefit assessments.
16.10.960 Exclusions from benefit assessment.
16.10.970 New businesses assessment waiver.
16.10.980 Collection of benefit assessment.
16.10.990 Voluntary contributions to district.
16.10.1000 Annual budget process.
16.10.1010 District proceeds do not offset City services.
16.10.1020 Disestablishment of the district.
Article IX. Santa Clara Tourism Improvement District
16.10.1110 Resolution of intention, public hearing and findings.
16.10.1130 Establishment of boundaries.
16.10.1140 Establishment of district advisory board.
16.10.1150 Establishment of benefit assessment.
16.10.1160 Purpose and use of benefit assessments.
16.10.1170 Exclusions from benefit assessment.
16.10.1180 New business assessment waiver.
16.10.1190 Submission of the benefit assessment.
16.10.1200 Administrative charge and out-of-pocket reimbursement to City.
16.10.1210 Voluntary contributions to district.
16.10.1220 Annual report process.
16.10.1230 Decisions regarding expenditure of funds.
16.10.1240 Disestablishment of the district.
Article I. Investigation Proceedings
16.10.010 Preliminary hearing when proceedings not taken under State law.
When it appears that the public convenience and necessity requires an acquisition or improvement and proceedings should be taken without complying with the provisions of the State Special Assessment Investigation, Limitation and Majority Protest Act of 1931, a public hearing shall be held on the question of the public convenience and necessity therefor which shall be called and notice of the time and place thereof shall be given in accordance with the provisions of this article. (Ord. 859. Formerly § 16-59).
Stat. Ref.: For State law as to Special Assessment Investigation, Limitation and Majority Protest Act of 1931, see Sts. & H.C.A. §§ 2800 to 3012.
16.10.020 Adoption of preliminary determinations by resolution – Information required.
A resolution of preliminary determination shall be adopted describing in general terms the proposed improvement or acquisition and setting a time and place when and where all persons interested may appear and show cause why the City
Council should not find and determine that the public convenience and necessity require the proposed acquisition or improvement without compliance with the State Special Assessment Investigation, Limitation and Majority Protest Act of 1931. (Ord. 859 § 202. Formerly § 16-60).
16.10.030 Notice and hearing.
The resolution provided for in the preceding section shall contain a notice of the time and place of hearing. A copy of the resolution shall be published in one or more issues of a newspaper published and circulated in the City and a copy shall be posted on or near the Council door or on a bulletin board in or adjacent to the City Hall. The posting and publication shall be had at least ten days before the date of hearing. The resolution may be consolidated with the resolution of intention and the notice may be incorporated in the notice of improvement. (Ord. 859 § 203. Formerly § 16-61).
16.10.040 Persons eligible to object to noncompliance with State law.
Any interested person may object to undertaking the proceedings without first complying with the provisions of the State Investigation Act mentioned in SCCC 16.10.010. (Ord. 859 § 204. Formerly § 16-62).
16.10.050 Final determination of necessity by resolution.
If no protests are made or when the protests shall have been heard and overruled, the City Council may adopt a resolution finding and determining that the public convenience and necessity require the proposed improvements or acquisitions and that the State Investigation Act shall not apply. The finding may be incorporated in the resolution ordering the improvement or acquisition.
The resolution determining the convenience and necessity shall be adopted by the affirmative vote of four-fifths of the members of the City Council and its findings and determinations shall be final and conclusive. (Ord. 859 §§ 205, 207. Formerly § 16-63).
16.10.060 Proceedings for modifications and changes generally.
When proceedings are had for a change and modification, the resolution of intention to change and modify shall be deemed a resolution of intention and the resolution ordering the changes and modifications shall be deemed a resolution ordering the improvement or acquisition as to the changes and modifications. (Ord. 859 § 206. Formerly § 16-64).
16.10.070 Application of article.
This article shall not apply to a proceeding which is excepted from the provisions of the State Special Assessment Investigation, Limitation and Majority Protest Act of 1931 or when the investigation proceedings have been avoided or taken pursuant to such act. (Ord. 859 § 208. Formerly § 16-65).
16.10.080 Finality.
Where proceedings for any improvements or acquisitions or any part thereof have been undertaken without compliance with the State Investigation Act mentioned in the preceding section or without proceedings under this article, proceedings may thereafter be had under this article with reference thereto and the order of the City Council determining convenience and necessity therein shall be final and conclusive. (Ord. 859. Formerly § 16-66).
Article II. Proceeding Under Improvement Act of 1911
Stat. Ref.: For State Improvement Act of 1911, see Sts. & H.C.A. §§ 5000 – 6794.
16.10.090 Application to chapter.
When proceedings are taken pursuant to this article the State Improvement Act of 1911 shall apply. (Ord. 859. Formerly § 16-67).
16.10.100 Alternative method for collection of cash assessments – Generally.
As an alternative method for the collection of cash assessments or assessments of less than twenty-five dollars ($25.00) levied under the provisions of this article, the City Council may, and upon the written request of the contractor or his/her assigns must, by resolutions adopted at or before the first day of September, direct that such assessments be collected upon the tax roll upon which general taxes are collected for the City. (Ord. 859. Formerly § 16-68).
16.10.110 Information required in resolution.
The resolution provided for in SCCC 16.10.100 shall contain a description of the properties so assessed, the amount of such assessments, together with interest thereon from the date of filing the original list of unpaid assessments and at the rate of one percent per month to the next succeeding thirty-first day of December of the tax year for which such roll shall have been prepared and the total amounts of principal and interest on each property. (Ord. 859. Formerly § 16-69).
16.10.120 Filing of copy of resolution – Extension of taxes on tax roll.
A certified copy of the resolution provided for in SCCC 16.10.100 shall be delivered immediately to the officer designated by law to extend City taxes upon the tax roll on which they are collected.
Such officer shall extend upon such roll the total amounts of such assessments and interest. (Ord. 859; Ord. 1104. Formerly § 16-70).
16.10.130 Collection – Delinquency.
The amounts to be collected as provided in SCCC 16.10.100 shall be so collected at the same time and in the same manner as general municipal taxes are collected and be subject to the same penalties and interest and to the same procedure under foreclosure and sale in case of delinquency as provided for general municipal taxes, all of which laws for the levy, enforcement and collection of which are hereby made applicable to such special assessment taxes. (Ord. 859. Formerly § 16-71).
16.10.140 When due and to whom payable – Default.
The assessments and the interest provided for by SCCC 16.10.100 and entered on the rolls as provided in SCCC 16.10.120 shall become due and payable to the contractor or his/her assigns at the office of the City Treasurer on the second day of January next succeeding.
Upon default in payment, the lands so assessed shall be sold in the same manner in which real property in the City is sold for the nonpayment of general municipal taxes and be subject to redemption within one year from the date of such sale in the same manner as such real property is redeemed from such delinquent sale. Upon failure of such redemption, such property shall in like manner be sold or pass by deed to the City. The City shall not, however, be required to pay into the assessment fund any part of such delinquency until such property be redeemed or sold and money received therefor. (Ord. 859. Formerly § 16-72).
16.10.150 Resale of property purchased by City upon default – Disposition of property when not bid for at sale.
Upon receipt of the deed to property sold as provided in SCCC 16.10.140, the City shall offer and sell such property at public auction in the manner provided by law for the sale of its tax deeded property and the amount of such assessment and the penalties and interest thereon less the costs of such sale shall be paid to the contractor or his/her assigns.
In the event there shall have been no bidder offering the amount then due on such property at the sale provided for in the preceding section, such property may, at the City's election, be declared sold to the owner of such assessment and in like manner be deemed to him and such assessment ordered satisfied of record. (Ord. 859. Formerly § 16-73).
Article III. Proceeding Under Street Opening Act of 1903
Stat. Ref.: For State Street Opening Act of 1903, see Sts. & H.C.A. §§ 4000 to 4443.
16.10.160 Application to chapter.
When proceedings are taken pursuant to this article, the State Street Opening Act of 1903 shall apply. (Ord. 859. Formerly § 16-74).
16.10.170 Proceedings for closing or abandoning streets, etc.
Proceedings under the State Street Opening Act of 1903 may be for closing or abandoning any street or easement and the Council may therein determine that no assessment is necessary. (Ord. 859. Formerly § 16-75).
16.10.180 Designation of ordinance of intention – Notice of improvement.
The ordinance of intention shall be called a resolution.
The notice of improvement shall be so called and no map need be contained therein. (Ord. 859. Formerly § 16-76).
16.10.190 Cash assessments or assessments under twenty-five dollars ($25.00).
Cash assessments or assessments for less than twenty-five dollars ($25.00) may be collected as provided in the alternative procedure of SCCC 16.10.100. (Ord. 859. Formerly § 16-77).
Article IV. Proceeding Under Municipal Improvement Act of 1913
Stat. Ref.: For State Municipal Improvement Act of 1913, see Sts. & H.C.A. §§ 10000 to 10609.
16.10.200 Application to chapter.
When proceedings are taken pursuant to this article, the State Municipal Improvement Act of 1913 shall apply. (Ord. 859. Formerly § 16-78).
16.10.210 Hearing.
The hearing on the report need not be set for more than ten days beyond the day of setting. (Ord. 859. Formerly § 16-79).
16.10.220 Issuance of bonds upon supplemental assessment.
Bonds may be issued upon any supplemental assessment and more than one such assessment may be had. (Ord. 859. Formerly § 16-80).
16.10.230 Assessments – Payment.
The time provided for payment of assessments may be thirty (30) days.
Payment shall be made to the City Treasurer unless the City Council shall specify some other officer to whom payments are to be made. (Ord. 859 §§ 243, 244. Formerly § 16-81).
16.10.240 Eminent domain proceedings.
Proceedings in eminent domain may be exercised under the State Code of Civil Procedure. (Ord. 859 § 245. Formerly § 16-82).
16.10.250 Stipulations, offsets and references to referees.
Stipulations and proceedings thereon for judgment may be had as provided in the State Street Opening Act of 1903.
Awards and assessments may be offset, as provided in the State Street Opening Act of 1903.
Reference to referees may be had as provided in the State Street Opening Act of 1903. (Ord. 859 §§ 246 – 248. Formerly § 16-83).
16.10.260 Surplus.
If there is, or the City Council shall determine that there will be, a surplus in the construction fund, it may determine that said moneys may be used for any one or more of the following purposes:
(a) For transfer to the general fund of the City; provided, that the amount shall not exceed the lesser of one thousand dollars ($1,000.00) or five percent of the total amount expended from the construction fund;
(b) To reimburse the City for any contributions or advances to or for the construction fund that were not pledged in the resolution of intention;
(c) For the maintenance of the improvements or a specified part thereof; or
(d) As provided in SCCC 16.10.270. (Ord. 859 § 249; Ord. 1175 § 3, 11-7-67. Formerly § 16-84).
16.10.270 Credit of surplus on assessment.
As an alternative method of disposition, the surplus shall be refunded or credited to the parties assessed, as follows:
(a) Where the assessment or any installment has been paid in cash, the credit shall be returned in cash to the owner of the land upon which the assessment was levied, as such owner appears from the last equalized assessment roll at the time the refund is made;
(b) Where the assessment or any installment is unpaid, the credit shall be applied upon the assessment or the earliest unpaid installment of principal and interest; or
(c) When the assessment is ad valorem in nature and not fixed liens, the surplus shall be deposited in the bond interest and redemption fund. (Ord. 1175 § 4, 11-7-67. Formerly § 16-84.1).
Article V. Parking Districts
16.10.280 "Parking place" defined.
The term "parking place," as used in this article, shall include a parking lot, garage or subsurface structure, including the grading, paving, draining, sewering, lighting or otherwise improving of such lot and buildings and improvements necessary or convenient for the parking of motor vehicles, including parking meters and other equipment and facilities necessary or convenient therefor, together with provisions necessary or convenient for ingress to and egress from such places. (Ord. 859 § 260. Formerly § 16-85).
16.10.290 Powers of City Council generally.
There is hereby vested in the City Council the powers to acquire, construct, reconstruct, install, extend, enlarge, repair, improve, maintain and operate public automobile parking places within the city, to acquire by purchase, lease or eminent domain the lands and public rights-of-way necessary or convenient therefor, to acquire and construct public improvements and equipment and facilities necessary or convenient therefor and to levy assessments and issue bonds to pay for the cost of the whole or any part thereof and the expenses incidental thereto. (Ord. 859 § 261. Formerly § 16-86).
16.10.300 Improvement districts generally –Procedure for formation of same.
The whole or any portion of the City may be formed into an improvement or maintenance district and assessments may be levied upon and bonds may be issued against the properties therein for the purpose of paying for the costs of acquiring, constructing, reconstructing, installing, extending, enlarging, repairing, improving, maintaining and operating parking places and the expenses incidental thereto. Proceedings for the formation of such districts, levying such assessments and issuing such bonds shall be had as provided in this title. (Ord. 859 § 262. Formerly § 16-87).
16.10.310 Acquisition of property.
The City may purchase, lease, obtain, option upon, acquire by gift, grant, bequest, devise, eminent domain or otherwise and hold, sell, lease, exchange, transfer, assign or otherwise dispose of any real or personal property within the city or any interest therein or improvement thereon. All such property shall be acquired and held in the name of the City. (Ord. 859 § 263. Formerly § 16-88).
16.10.320 Property owned by City.
City lands or property may be utilized for parking places. In such event, the resolution of intention shall describe the same and state the amount and manner of payment of compensation. In lieu thereof, the City Council may provide in such resolution that the compensation for such property shall be an amount to be fixed by the decision of two or three disinterested, competent appraisers to be appointed by the City Council. (Ord. 859 § 264. Formerly § 16-89).
16.10.330 Sale of property acquired for parking places.
The City Council may sell any property acquired for parking places which is not needed therefor. Any money received from such sale may be used for the acquisition, construction or improving of other parking places in such district. It may also be applied as a credit on any assessments levied for the acquisition of such property, in which case the provisions of SCCC 16.10.260 shall apply. (Ord. 859 § 265. Formerly § 16-90).
16.10.340 Lease of property for parking places.
When in the opinion of the City Council the public interest and economy will be served thereby, the City Council may lease one or more parking places and facilities. In so doing, the City Council may restrict or partially restrict their use to owners and tenants of real property in the district and classes of persons designated by such owners or tenants. (Ord. 859 § 266. Formerly § 16-91).
16.10.350 Utilization of surplus space for parking places.
Surplus space may be rented or devoted to commercial uses other than for the parking of automobiles when in the City Council's judgment it is necessary or convenient to conduct or permit such use in order to utilize properly the property as a parking space. Rentals received for such purposes shall be deposited in the improvement fund or in the operating fund or in the bond interest and redemption fund for such projects as the City Council shall determine. (Ord. 859 § 267. Formerly § 16-92).
16.10.360 Fees and rentals, etc., to be set by City Council.
The City Council may fix rentals, fees or other charges, for the properties, works and facilities of any parking place provided by this article. In so doing, the City Council may establish rates, charges or rentals for the owners and tenants of such properties and classes of persons designated by the owners or tenants which differ from and are less than the rates, charges and rentals charged other persons. (Ord. 859 § 268. Formerly § 16-93).
16.10.370 Operation of parking places generally.
Parking places may be maintained and operated and all or any costs and expenses thereof, including rent, repairs, replacement, fuel, power, electrical current, care, supervision and any other items necessary for the proper maintenance and operation thereof may be expended for that purpose. Included in such costs may be the cost of replacements, improvements and extensions to any parking place necessary or convenient for the proper operation thereof. (Ord. 859 § 269. Formerly § 16-94).
16.10.380 Annual assessment for maintenance of parking places.
An annual assessment may be levied upon the real property within the district established therefor for the purpose of maintaining and operating parking places. Such assessment shall be in an amount clearly sufficient to pay all costs and expenses of maintaining and operating such parking places then due or thereafter to accrue before the proceeds of another levy shall be available therefor. Such levy shall be apportioned among the properties within such district on the basis of the ad valorem value of such land as shown on the last equalized and secured utility tax rolls upon which City taxes are collected. (Ord. 859 § 270. Formerly § 16-95).
16.10.390 Annual report when operative costs paid by special levy – Information required – Hearing and notice.
When any part of the operative cost is to be paid by a special levy, the City Manager shall annually file with the City Clerk a written report stating in reasonable detail the estimated cost of maintenance and operation for which an assessment is to be levied in that year, including the cost of replacements, improvements and extensions to any parking place. It shall also state the rate of the levy to be made therefor. When such report shall have been preliminarily approved by the City Council, the Clerk shall give notice to interested persons that such report has been filed in his/her office and is open to inspection and of a time and place when such report will be heard by the City Council and an assessment ordered. Such notice may be by publication in a newspaper published in the City or by mail to the last assessees of the property at their addresses appearing in the last City tax roll or as known to the Clerk, at least ten days before the day set for hearing. (Ord. 859 § 271. Formerly § 16-96).
16.10.400 Report – Hearing procedures –Disposition generally.
The report provided in SCCC 16.10.390 shall be fully heard and may be altered, amended or supplemented by the City Council. When all objections have been heard and action taken with reference thereto, by their having been overruled or otherwise, such report shall be confirmed by resolution, of the City Council. Such levy shall become and remain a lien on the property described therein from the date it is confirmed until paid. (Ord. 859 § 272. Formerly § 16-97).
16.10.410 Collection of assessment.
The officer who collects the assessments shall compute and extend the amounts thereof in the next tax rolls on which City taxes are collected and it shall be collected in the same manner and be subject to the same penalties, costs and interest and may be redeemed and the property sold for nonpayment thereof and title shall pass to the purchaser in the same manner as provided for City taxes, except that the period of redemption shall be one year instead of five years. (Ord. 859 § 273. Formerly § 16-98).
16.10.420 Acquisition, construction and improvements of parking places – Advancement of funds and pledges, etc.
The City may advance funds for the acquisition, construction or improving of such parking places or for the maintenance and operation thereof and reimburse itself from the proceeds of any assessment subsequently levied for that purpose. It may also make contributions thereto from available funds.
The City Council may, at any time, make such pledges as it shall determine for the payment of the principal and interest of the bonds or for the maintenance and operation of the facilities acquired or to be acquired therewith or for adequate reserves, from the income and revenue of on and off-street parking facilities. (Ord. 859 §§ 274, 275. Formerly § 16-99).
16.10.430 Covenants.
The City Council may provide all proper and usual covenants for the proper security and payment of the principal and interest of the bonds. (Ord. 859 § 276. Formerly § 16-100).
16.10.440 Alteration or enlargement of parking districts – Generally – Resolution of intention and notice.
The boundaries of the parking district may be enlarged from time to time. The territory to be annexed shall be set forth in a resolution of intention to be adopted by the City Council, which shall give notice that such matter and all persons interested will be heard by the City Council at a time to be stated therein, at the regular meeting place of the City Council.
Such resolution shall be published twice in a newspaper of general circulation published in the City, the first of which shall be at least ten days before the date fixed for hearing. (Ord. 859 §§ 277, 278. Formerly § 16-101).
16.10.450 Hearing and power of City Council generally – Order of annexation and effect of same.
The hearing mentioned in the preceding section may be adjourned from time to time. At the hearing the City Council shall have power to determine whether or not the entire territory or only a portion thereof to be annexed will be benefited by being so annexed.
The City Council shall by resolution order the annexation of such territory, defining its boundaries therein. Its decision thereon shall be final and conclusive.
Thereafter the property annexed shall be subject to special levies for maintenance, operation and for any ad valorem bonds issued for the acquisition of construction of such improvements. (Ord. 859 §§ 279 – 281. Formerly § 16-102).
Article VI. Maintenance Districts
16.10.460 New maintenance districts.
Whenever the City Council determines that the costs and expenses of maintaining and operating any or all public improvements of a local nature have not been adequately financed and provided for, proceeding therefor may be undertaken pursuant to this article. (Ord. 1401 § 1, 4-8-80. Formerly § 16-102.01).
16.10.470 Council powers.
The City Council may, in its resolution declaring its intention to order work done or improvements made or by separate resolution, declare its intention to order that the costs and expenses of maintaining and operating any or all public improvements of a local nature, including the cost of necessary repairs, replacements, fuel, power, electrical current, care, supervision, and any and all other items necessary for the proper maintenance and operation thereof, shall be assessed, either partly or wholly, upon such district as the City Council shall determine will be benefited by the maintenance and operation of the public improvements proposed to be maintained; the amounts so assessed to be collected in the same manner and by the same officers as taxes for City purposes are collected. (Ord. 1401 § 1, 4-8-80. Formerly § 16-102.02).
16.10.480 Applicable general law.
When the City Council has declared its intention pursuant to SCCC 16.10.470, the applicable provisions of Division 7, Part 3, Chapter 26 (entitled "Maintenance Districts"), Section 5820 et seq. of the Streets and Highways Code of the State of California, excepting Sections 5850 to 5853, inclusive, shall apply; provided, that all documents required to be posted, shall be posted on or near the Council chamber door or on any bulletin board in or adjacent to the City Hall and in three public places within the territory proposed to be formed into a maintenance district or to be annexed to an existing maintenance district. (Ord. 1401 § 1, 4-8-80; Ord. 1494 § 1, 4-10-84. Formerly § 16-102.03).
16.10.490 Alternative method for the levy of benefit assessments.
(a) Purpose. The purpose of this section is to provide an alternative procedure by which the City Council may provide for the payment of the whole or any part of the costs and expenses of maintaining and operating any public improvements which are local in nature, payable from annual benefit assessments apportioned among the several lots or parcels of property within the maintenance district established therefor, the nature and formula or formulae for which is to be determined in the proceedings in which jurisdiction is provided for the use of such alternative procedure.
(b) Resolution of Intention. The resolution of intention to order work done or improvements made or said separate resolution shall contain a statement of the formula or formulae upon and by which annual assessment levies for the payment of said costs and expenses will be apportioned according to benefits among the several lots or parcels of property within the maintenance district and the zones of benefit, if any, to be established therefor. Said formula or formulae may prescribe a maximum rate or amount of annual benefit assessment to be levied for such purposes.
(c) Written Protests and Oral Objections. In connection with the hearing provided for in the establishment of the maintenance district, and the zones of benefit, if any, or the annexation of territory to an existing maintenance district, or to the initial modification in said formula or formulae as hereinafter provided, owners may file written protests and make oral objections to said formula or formulae in the same manner, at the same time and with like legal effect as provided for other protests and oral objections in Division 7, Part 3, Chapter 26 (entitled "Maintenance Districts"), Section 5820 et seq. of said Streets and Highways Code.
(d) Initial Modification. At said hearing, the City Council, of its own volition or in response to any protest made, heard or considered, may make modifications in the formula or formulae for the purpose of making the same more fair and equitable; provided, however, that before making a final determination in said matter of modification it shall set said matter for hearing at a subsequent meeting of said City Council, which it shall call or to which it may adjourn; provided further, that it shall give notice of the time, place and purpose of said meeting by one publication in the newspaper in which the original resolution of intention or notice of improvement or notice of hearing on the formation of the maintenance district or notice of hearing on the proposed annexation was published, at least ten days prior to said hearing. If the formula or formulae modification consists solely of a decrease in such maximum rate or amount of annual benefit assessment, the City Council may order such decrease by resolution and no hearing need be held thereon.
(e) Majority Protest. If the City Council finds that protests are made by the owners of more than one-half of the area of the property in said maintenance district subject to benefit assessment to pay said costs of maintenance and operation, no further proceedings shall be taken for a period of six months from the date of the decision of the City Council on the hearing, unless the protests are overruled by an affirmative vote of four-fifths of the members of the City Council.
(f) Final Determination. At the initial hearing or at a subsequent hearing on the modification of said formula or formulae as herein provided or at any meeting to which either shall have been adjourned, or at any meeting of the City Council subsequent to the full hearing of said matter, with or without said matter having been submitted, the City Council, by resolution, shall finally adopt a formula or formulae for the apportionment of benefits in said annual assessment levies, which shall be that stated in the resolution of intention, or said separate resolution, or as modified, and its decision and determination shall be final and conclusive against all persons entitled to appeal to it as to all errors, informalities or irregularities which the City Council might have avoided or have remedied.
(g) Subsequent Modification. If, at any time following the final establishment of the formula or formulae for said annual assessment levies, the City Council shall by resolution determine that, by reason of changed conditions or because of defects or insufficiencies therein disclosed by its application, the established formula or formulae is, in any particular, inequitable or unfair, or may be made more equitable and fair, the City Council may, by resolution so declare, stating the reasons therefor, and fix a time and place of hearing thereon.
(h) Notice. The City Clerk shall cause a copy of the resolution adopted by the City Council as provided in subsection (g) of this section to be published once in the newspaper in which the resolution of intention or notice of improvement or notice of hearing on the formation of the maintenance district or notice of hearing on the proposed annexation in said proceedings was published, to be mailed, postage prepaid, to all owners of property in said maintenance district subject to benefit assessment to pay said costs of maintenance and operation, and to be posted on or near the Council chamber door or any bulletin board in or adjacent to the City Hall. Said publication, mailing and posting shall be completed not less than ten days prior to such hearing.
(i) Hearing and Determination. At the hearing provided for in subsection (g) of this section, protests may be filed, heard and acted upon in the manner and with the like effect provided in subsections (c), (d), (e) and (f) of this section.
(j) Budget – Contents. The City Manager shall annually cause to be prepared a budget for the costs and expenses of maintaining and operating any or all of said improvements of a local nature during the ensuing fiscal year which shall include the following:
(1) The gross amount required for the costs and expenses of maintaining and operating said improvements;
(2) The surplus balance available at the end of the fiscal year for such purpose;
(3) The amount, if any, to be contributed by the City to pay any part of said costs and expenses;
(4) The amount, if any, to be repaid to the City for funds advanced by the City to pay deficits which occurred in prior years; and
(5) The balance of the amount necessary to pay said costs and expenses.
(k) Annual Benefit Assessment. The amount provided in subsection (j)(5) of this section shall be raised by an annual benefit assessment on all of the lots or parcels of property within the maintenance district.
(l) Report. In each fiscal year in which a balance is provided in the budget to be raised to pay said costs and expenses pursuant to subsection (j)(5) of this section, the Director of Public Works, City Engineer or Director of Streets and Automotive Services of said City shall cause to be prepared a report, in writing, for each maintenance district, which shall set forth the budget, the formula or formulae for the annual assessment levy and by properly headed columns, show the following data as to each lot or parcel of property within the maintenance district:
(1) A description of each lot or parcel of property by a legal description, assessor's parcel number or other description sufficient to identify the same;
(2) The amount of assessment to be levied against each lot or parcel of property in accordance with the formula or formulae; and
(3) Such other information as will be necessary or useful in applying the formula or formulae adopted by the City Council.
(m) Filing with City Clerk. When the report has been completed by said Director of Public Works, City Engineer or Director of Streets and Automotive Services, it shall be signed by them and filed with the City Clerk on or before June 1st of each year. Upon receipt of the report, the City Clerk shall present it to the City Council for its consideration.
(n) Approval by City Council. The report shall be reviewed by the City Council and said City Council may approve the report, as filed, or it may modify the report in any particular and approve it as modified.
(o) Hearing. Upon approval of the report by the City Council pursuant to subsection (n) of this section, the City Council shall, by resolution, appoint a time and place of hearing thereon.
(p) Notice. The City Clerk shall cause notice of the hearing on the report to be given by mailing, postage prepaid, to all owners of property subject to said assessment to pay said costs of maintenance and operation; to be published once in a newspaper of general circulation in the City; and to be posted on or near the Council chamber door or any bulletin board in or adjacent to the City Hall. Said mailing, publication and posting shall be completed not less than ten days prior to such hearing.
The form of notice to be published and posted shall be substantially as follows:
NOTICE OF HEARING ON
_______ MAINTENANCE DISTRICT
Notice is hereby given that the Director of Public Works, City Engineer or Director of Streets and Automotive Services has caused to be prepared and filed with the City Clerk a report, in writing, which provides the basis for the levy of benefit assessments for the costs of maintenance and operation on all lots or parcels of property within said maintenance district. Said report sets forth the amounts to be provided in the budget for maintenance and operation, a description of each lot or parcel of property in the maintenance district, by a legal description, assessor's parcel number or other description sufficient to identify the same, and the amount of assessment to be levied for the fiscal year 20___ – 20___ against each lot or parcel of property. Said report is open to public inspection.
Said report will be heard by the Council at its meeting to be held on the ________ day of ________, 20___, at the hour of ________ o'clock _.M. in the regular meeting place of said Council, Council Chambers, City Hall, Santa Clara, California, at which time said Council will examine said report and hear all persons interested therein.
Any interested owner, objecting to the amount of the assessment on any lot or parcel of property owned by him, may file with the City Clerk at or before the hour fixed for hearing a protest, in writing, signed by him, describing the lot or parcel of property so that it may be identified, and stating the grounds of his/her protest, and may appear at said hearing and be heard in regard thereto.
The form of mailed notice shall be substantially as hereinabove set forth, and shall also contain a description of the lot or parcel of property covered by the notice sufficient to identify it, and the amount of the proposed assessment against said lot or parcel of property as set forth in the report.
If the City Council adopts the report, the requirement for mailed notice shall not thereafter apply to hearings on reports prepared in subsequent years for the annual benefit assessment and notice by posting any publication as herein provided shall be adequate.
(q) Hearing – Determination Final. The City Council shall hold the hearing at the time and place specified in the resolution and in any order continuing the hearing. During the course of, or upon the conclusion of the hearing, the City Council may order changes in any of the matters provided in the report. Upon the conclusion of said hearing, the City Council may adopt a resolution confirming the report, either as originally submitted or as changed by it.
All decisions and determinations of the City Council, on notice and hearing as aforesaid, shall be final and conclusive upon all persons entitled to appeal to it, as to all errors, informalities and irregularities which the City Council might have avoided, or have remedied during the hearing on the report.
(r) Certification and Filing. The report, together with the certificate of the City Clerk as to the fact and date of approval and adoption thereof by the City Council as provided in subsection (q) of this section shall forthwith be delivered to the Director of Finance of said City, who shall thereafter deliver said report, as adopted, to the officer designated by law to extend ad valorem property taxes upon the tax roll on which they are collected.
(s) Benefit Assessments, Posting. The officer designated by law to extend ad valorem property taxes upon the tax roll on which they are collected shall post to said tax roll the total amount of the benefit assessment levied and to be collected for said year on each lot or parcel of property within the maintenance district as set forth in said report. The amount so posted shall appear as a separate item on the tax bill.
(t) Method of Collection. The special benefit assessments shall be collected upon the last equalized secured and utility tax rolls upon which said ad valorem property taxes are collected. They shall be in addition to all of said ad valorem property taxes, and shall be collected together with, and not separate therefrom, and enforced in the same manner and by the same persons and at the same time and with the same penalties and interest as are said ad valorem property taxes. All laws applicable to the collection and enforcement of said ad valorem property taxes shall be applicable to said special benefit assessment levy, and the assessed lot or parcel of property, if sold for taxes, shall be subject to redemption in the same manner as such real property is redeemed from the sale for ad valorem property taxes, and if not redeemed, shall in like manner pass to the purchaser.
(u) Omitted Property. If any property within the maintenance district is erroneously omitted in any such report, said property shall be assessed for the omitted amount in the next year after said omission is discovered, and appropriate provisions shall be made in the report for said year.
(v) Consolidated Hearing. The procedures relating to the formation of a maintenance district or the annexation to an existing maintenance district and the alternative method for the levy of the annual benefit assessment hereunder may be consolidated for hearing purposes. (Ord. 1401 § 1, 4-8-80; Ord. 1494 § 2, 4-10-84; Ord. 1772 §§ 2, 3, 4, 8-20-02. Formerly § 16-102.04).
16.10.500 Applicability to maintenance districts formed prior to effective date hereof.
(a) Applicability – Petition. The provisions of SCCC 16.10.490 relating to the alternative method for the levy of benefit assessments shall be applicable to maintenance districts formed before the effective date hereof, regardless of the law pursuant to which said maintenance districts were formed, if all of the owners of all of the lots or parcels of property subject to benefit assessment to pay said costs of maintenance and operation request, in writing, that the alternative method for the levy of the benefit assessment as provided in SCCC 16.10.490 shall apply.
(b) Applicability – City Council Action. The City Council may, by separate resolution, declare its intention to order that the alternative method for the levy of the benefit assessment as herein provided be made applicable to maintenance districts formed prior to the effective date hereof and shall fix therein a time and place for a hearing thereon.
(c) Hearing – Notice. Notice of said hearing shall be given by the City Clerk, who shall cause a copy of said resolution of intention to be mailed, postage prepaid, to the owners of any lot or parcel of property subject to a benefit assessment to pay said costs of maintenance and operation as herein provided, to be published once in a newspaper of general circulation in the City, and to be posted on or near the Council chamber door or any bulletin board in or adjacent to the City Hall. Said mailing, publication and posting shall be completed not less than ten days prior to such hearing.
(d) Protests. At any time not later than the hour fixed for the hearing of objections in the resolution of intention, the owner of any lot or parcel of property subject to assessment in said maintenance district to pay the costs of said maintenance and operation may make written protest thereto.
(e) Hearing. The City Council shall hear and pass upon all protests thereto, and its decision thereon, expressed by resolution, shall be final and conclusive.
(f) Majority Protest. If the City Council finds that protests thereto are made by the owners of more than one-half of the area of the property in said maintenance district subject to benefit assessment to pay said costs of maintenance and operation, no further proceedings shall be taken for a period of six months from the date of the decision of the City Council on the hearing, unless the protests are overruled by an affirmative vote of four-fifths of the members of the City Council. The City Council may adjourn the hearing from time to time.
(g) Consolidated Hearing. The procedures under SCCC 16.10.490 relating to the alternative method for the levy of benefit assessments may be consolidated for hearing purposes with the procedures under this section. (Ord. 1401 § 1, 4-8-80. Formerly § 16-102.05).
16.10.510 Severability.
It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this article hereby adopted are severable, and if any phrase, clause, sentence, paragraph or section of this article hereby adopted shall be declared unconstitutional or otherwise invalid by the valid judgment or decree of a court of competent jurisdiction, such unconstitutionality or invalidity shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this article hereby adopted. (Ord. 1401 § 1, 4-8-80. Formerly § 16-102.06).
16.10.520 Effective date.
This article shall take effect and be in force thirty (30) days after its final adoption, and before such final adoption, it shall be published as required by the Charter of said City. (Ord. 1401 § 1, 4-8-80. Formerly § 16-102.07).
Article VII. Municipal Park
Improvement Districts
16.10.530 Title.
This article may be cited as the "Santa Clara Municipal Park Improvement District Ordinance." (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.1).
16.10.540 Purposes.
Any portion of the City may be formed into a municipal park improvement district for the purpose of creating an indebtedness, to be represented by bonds of the district, the proceeds from the sale of which shall be used for the acquisition or construction of any public park improvement or work authorized herein, and for the further purpose of owning, managing, maintaining and operating any such public park improvement or work.
"Improvement" or "work" whether used singly or in combination mean and include any work or improvement for public park or amusement or recreational purposes, including, but not limited to, buildings, motor vehicle parking facilities, lakes, streams, bridges, landscaping, and planting improvements, together with the acquisition of property necessary and convenient therefor, as well as the acquisition, construction, reconstruction, addition to, improvement, enlargement and repair of all or any part of such work or improvement, including roads, utilities, sewers, drains and other work or improvements appurtenant or related thereto. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.2).
16.10.550 Public body.
Any district formed under this article is a public body, corporate and politic, separate and distinct from the City, and not an administrative arm of the Council, exercising public and essential governmental functions, has perpetual succession, and has and may exercise the powers enumerated in this article, those necessarily implied therefrom and such other powers as the Council may hereafter provide. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.3).
16.10.560 Governed by Council.
Any district formed under this article shall be governed by the Council acting as governing body of the district. All rules of proceedings applicable to the Council acting as such, except as herein otherwise expressly provided, shall apply to the Council acting as governing body of district. (Ord. 1264 § 1, 8-1-7. Formerly § 16-102.4).
16.10.570 Other officers.
All other officers of the City are ex-officio district officers; provided, that the Council may appoint other qualified persons to any district office at any time. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.5).
16.10.580 Employees.
The Council may, at any time, appoint or employ, fix the compensation of, and prescribe the authorities and duties of other officers, employees, attorneys, architects, engineers and other consultants necessary or convenient for the business of the district. The Council may delegate the employment of employees, architects and engineers to a managing agent by contract pursuant to SCCC 16.10.790. All personnel appointed or employed under the authority of SCCC 16.10.570 and this section shall be officers, employees or independent contractors, as the case may be, of the district and not of the City. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.6).
16.10.590 Title to property – Assignment of contracts to district.
Title to any property acquired by any district or by the City on behalf of any district shall be vested in the district. Any property or rights acquired by the City on behalf of any district prior to its formation shall be deemed to be the property of such district and title thereto shall vest in the district upon its formation. Any contracts negotiated on behalf of any district prior to its formation shall be assigned to such district upon its formation. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.7).
16.10.600 Statute applicability generally.
Except as otherwise provided in this article, Article 6 commencing with Section 5350, of Chapter 2 of Division 5 of the Public Resources Code, shall apply. Said statute is hereinafter referred to as "the Act." (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.8).
16.10.610 Indebtedness.
Any district formed under this article shall have the power, in addition to the power to issue bonds as provided in the Act and this article, to borrow money, incur indebtedness and issue evidences of such indebtedness, and to refund or retire any indebtedness or lien against the district or its property. Such power shall be exercised by resolution of the Council acting as governing body of the district; the sources of funds to repay the indebtedness shall be set forth in said resolution. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.8.1).
16.10.620 Acquisition or construction contracts – Combination with managing agency agreements.
Any work or improvement and any subsequent addition thereto or enlargement thereof may be acquired by a district by purchase, condemnation or otherwise upon its completion. As an alternative, any such work, improvement, addition or enlargement may be constructed by the district by contract, through a managing agent or otherwise. Such contracts may be made by negotiation without regard to Sections 5365 and 5366 of the Act, and said sections shall not apply. Such contracts shall be contracts of the district and not of the City. If the Council determines that it is necessary, in order that maximum public use, benefit and enjoyment can be derived from any municipal park acquired or constructed pursuant to this article, that the functions of design, construction, operation, management and maintenance be integrated and combined by contract with a specially trained and experienced person, firm or corporation, who will act as agent for the district, so that the park will be designed, constructed, operated, managed and maintained in an efficient and economical manner, by and with coordinated, uniform and safe means and methods, and in accordance with the highest standards of quality and taste, then the district may contract with the same person, firm or corporation to perform all of said functions, provided such contracting agent meets all of the foregoing criteria. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.9).
16.10.630 Exceptions.
No petition shall be required to initiate the proceedings and no election shall be required to authorize the bonds. Section 5351, Subdivision (d) of Section 5352, and Sections 5357, 5358 and 5359 of the Act shall not apply. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.10).
16.10.640 Action by resolution.
All Council action required may be by resolution. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.11).
16.10.650 Public convenience and necessity.
Unless the proceeding has been excepted from the provisions of Division 4 (entitled "The Special Assessment Investigation, Limitation and Majority Protest Act of 1931"), Section 2800 et seq. of the Streets and Highways Code, or proceedings avoided, waived, or taken thereunder, the Council shall take proceedings pursuant to Article I of this chapter. The resolution required by SCCC 16.10.020 may be consolidated with the resolution or ordinance of intention and the notice required by SCCC 16.10.030 may be incorporated in the notice required by the Act. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.12).
16.10.660 Notice by mail.
Notice of the hearing on the formation of the district shall also be given by mail pursuant to SCCC 16.05.250. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.13).
16.10.670 Issuance and sale of bonds.
The bonds may be issued and sold as the Council determines and directs, at public or private sale, at or below their par value and at a rate of interest not to exceed the rate determined by the Council in the resolution providing for the issuance thereof. The bonds shall be payable at the times and in the amounts determined by the Council in said resolution and the limitations of Section 5361 of the Act shall not apply. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.14).
16.10.680 Bond issuance – Division into series.
The Council may divide the principal amount of any issue into two or more series and fix different dates for the bonds of each series. The bonds of one series may be made payable at different times from those of any other series. The maturity of each series shall comply with this article. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.15).
16.10.690 Determination of amount.
In determining the amount of bonds to be issued, the Council may include all of the following:
(a) All costs and expenses and estimated costs and expenses incidental to or connected with the acquisition, construction, improving, or financing of the improvement, including the cost of any environmental impact or other studies, filings or reports required by law.
(b) All engineering, inspection, legal, and fiscal agent's fees, expenses in connection with the formation of the district, costs of the issuance of the bonds, bond reserve funds and working capital, and bond interest estimated to accrue during the construction period and for a period of not to exceed twenty-four (24) months after completion of construction. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.16).
16.10.700 Deficiency bonds.
If the proceeds of the bonds for any reason are less than the cost of the improvement or work authorized in the proceedings, additional bonds may be issued and sold to provide for the amount of the deficit, but not to exceed the amount necessary to complete the works according to the original plans and specifications. Such deficiency bonds shall be deemed to be the same in all respects as the original issue, and shall be entitled to payment, without preference or priority over the bonds first issued, and shall be disposed of in like manner. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.17).
16.10.710 Loans to special fund.
To expedite the conduct of proceedings and the making of any acquisition or improvement authorized by this article, the Council may, at any time, transfer into a special fund designated by the name of the improvement proceeding, out of any available funds of the City, such sums as it deems necessary. The sums so transferred are a loan to the special fund, and shall be repaid out of the proceeds of the district bonds provided for in this article. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.18).
16.10.720 Tax base.
The tax provided in Section 5364 of the Act may be levied upon all taxable land, land and improvements, or all taxable property, as set forth in the resolution of intention. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.19).
16.10.730 Charges.
The Council may prescribe, revise and collect charges for the services, facilities or products of the improvement or work, or for the use thereof, including, without limiting the generality of the foregoing, charges for admission thereto. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.20).
16.10.740 Charges – Revision by agent.
Any managing agent appointed pursuant to SCCC 16.10.790 may be granted the authority by the Council to revise such charges subject to such standards and controls as may be established by the Council in the managing agency agreement for the adequate protection of the public interest. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.21).
16.10.750 Pledge of revenues.
Revenues derived under SCCC 16.10.730 and 16.10.740 may be pledged to the payment and security of the bonds pursuant to Article 4, commencing with Section 53500, of Chapter 3, Part 1, Division 2, Title 5 of the Government Code of the State of California. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.22).
16.10.760 Further bond security.
District bonds may be further secured by a deed of trust or other appropriate encumbrance on the improvement or work financed with the bond proceeds. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.23).
16.10.770 Disposition of surplus.
Any revenues remaining after full satisfaction of all requirements of any district bond indenture and any other district agreements and obligations shall be transferred to the general fund of the City. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.24).
16.10.780 Refunding.
Any bonds authorized and issued under this article may be refunded, in whole or in part, by proceedings under the Special Assessment and Bond Refunding Act of 1939 or under Article IV of this chapter with bonds under Chapter 16.15 SCCC or under any other refunding law available at the time of the refunding proceedings. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.25).
16.10.790 Managing agency agreements.
Whenever the Council determines that the management and operation of any improvement authorized hereunder is so complex and specialized as to require that it be accomplished by specially qualified persons, it may make and enter into managing agency agreements with competent persons, firms, or corporations specially trained and experienced to render such services, subject to retention of such controls over rates and use of the improvement as are necessary or desirable to assure its operation as a public municipal park improvement. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.26).
16.10.800 Validation of agreements.
Any and all contracts, stipulations or agreements made by the City on behalf of any district for the acquisition of any lands, easements, rights or property and for the design, construction, operation, management and/or maintenance of any improvements made prior to the effective date of the ordinance adding this article to the Code are hereby ratified, approved, confirmed, validated and declared legally effective. This shall include all acts and proceedings of the Council and of any person, public officer, board or agency heretofore done or taken in connection with said contracts, agreements or stipulations. All such contracts, agreements or stipulations heretofore made and hereafter carried out and completed in accordance with their terms shall be legal, valid and binding contracts of the district identified therein. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.27).
16.10.810 Limitation of actions.
No action, suit, or proceeding attacking or otherwise questioning the validity of any district formed under this article or of any bonds authorized hereunder or of any acts and proceedings of the Council or other City or district officials in connection therewith shall be brought unless such action, suit or proceeding is commenced within thirty (30) days after the date of adoption of the resolution or ordinance ordering the formation of the district. No action, suit or proceeding attacking or otherwise questioning the validity of any contract or agreement for the acquisition or construction of any improvement or work under SCCC 16.10.620 or for management services under SCCC 16.10.790 shall be brought unless such action, suit or proceeding is commenced within thirty (30) days after the action of the Council authorizing execution of any such contract or agreement on behalf of the City or district; provided, however, that if any such contract or agreement is authorized to be and is executed prior to the formation of the district, any such action, suit or proceeding may be commenced at any time prior to the expiration of thirty (30) days from the date of adoption of the resolution or ordinance ordering the formation of the district. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.28).
16.10.820 Judicial validation.
At any time before the expiration of the limitation period established by SCCC 16.10.810, an action may be brought pursuant to Section 53511 of the Government Code and Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure to determine the validity of the district and the bonds authorized therefor and the means and sources of payment of the principal and interest thereof, and of any contracts or agreements for acquisition or construction of improvement or work under SCCC 16.10.620 or for management services under SCCC 16.10.790 theretofore authorized, including without limitation the legality and validity of all acts and proceedings theretofore taken in connection with such district, bonds, contracts or agreements. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.29).
16.10.830 Applicability of Act and title.
Except as herein otherwise expressly provided, the provisions of the Act and of this title shall apply. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.30).
16.10.840 Complete scheme of procedure.
The Council declares and finds that the Act, this article, and the Santa Clara Improvement Procedure Code constitute a complete scheme of procedure and full authority for the specific purposes set forth in SCCC 16.10.540. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.31).
16.10.850 Powers, limitations.
The powers conferred by this article are in addition to, and the limitations imposed by this article do not affect, the powers conferred by any other law. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.32).
16.10.860 Inconsistency with other law.
If this article is inconsistent or in conflict with any other law, this article is controlling. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.33).
16.10.870 Liberal construction.
This article shall be liberally construed to promote its objects and purposes. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.34).
16.10.880 Defect or omission validity of proceedings or bonds.
If the jurisdiction of the Council to order the proposed act is not affected, the defect or omission of the Council or of any officers of the district or the City in proceedings under this article does not invalidate the proceedings or bonds issued under this article. (Ord. 1264 § 1, 8-1-72. Formerly § 16-102.35).
Article VIII. Santa Clara Downtown Business Improvement District
16.10.890 Resolution of intention, public hearing and findings.
The recitals hereof, which set forth facts regarding the adoption of the ordinance codified in this article, the conduct of public hearings and certain findings of the City Council, are true and correct and incorporated herein by reference. (Ord. 1740 § 2, 10-5-99).
16.10.900 Definitions.
In order to distinguish between district businesses and for the purpose of calculating and applying the amount of assessments owed, the following definitions shall apply:
(a) "Billing period" shall refer to the calendar year.
(b) "Calendar year" means January 1st to, and including, December 31st of the same year.
(c) "Financial" means banks, savings and loans, credit unions, etc.
(d) "Lodging" businesses include inns, hotels, motels, RV Parks and other similar businesses.
(e) "Professional" includes attorneys, architects, accountants, engineers, surveyors, physicians, dentists, optometrists, chiropractors and others in a medical/health service field, consultants, real estate brokers, financial advisors, laboratories (including dental and optical), hearing aid services, artists and designers.
(f) "Restaurant" businesses include cafes, eating establishments, sandwich shops, dinner houses, restaurants and fast food services and other similar businesses.
(g) "Retail businesses" include all businesses not covered by other definitions set out in this section, at least fifty percent (50%) of whose gross income is derived from "retail sales" as that term is defined under the California Sales and Use Tax Law. The fact that a substantial part of its business consists of sales other than retail sales does not exclude said business from this classification so long as such other business component does not account for more than fifty percent (50%) of said business' gross income.
(h) "Service" businesses include general office, news and advertising media, printers, photographers, personal care facilities and outlets, entertainment uses, service stations, repairing and servicing businesses, renting and leasing businesses, utilities, vending machine businesses, household finance companies, and other similar businesses not otherwise included in subsections (a), (b), (c), (e), or (f) of this section. (Ord. 1740 § 2, 10-5-99).
16.10.910 Excluded business types.
The following business types are excluded from participating in the district:
(a) Residential uses;
(b) Nonprofit organizations;
(c) Schools;
(d) Governmental uses;
(e) Apartment rentals;
(f) Pre-school and day care facilities;
(g) Hospitals;
(h) Business uses in residential homes. (Ord. 1740 § 2, 10-5-99).
16.10.920 Establishment of boundaries.
A parking and business improvement district is hereby established pursuant to the Parking and Business Improvement Area Law of 1989, Streets and Highways Code Section 36500 et seq. The boundaries of the district and the benefit zones within the district shall be as set forth on Exhibit "A," attached hereto and incorporated herein by reference. The district shall be known as the "Santa Clara Downtown Business Improvement District" (the "district"). (Ord. 1740 § 2, 10-5-99).
16.10.930 Establishment of district board of directors.
There shall be a board of directors of the district ("board") to administer the affairs of the district. Said board shall consist of businesses within the district. Within the board there shall be a president, vice-president, secretary and treasurer elected by the membership, and such other officers as deemed necessary by the board. Such other officers shall be appointed by the board of directors at their discretion. All voting within the district regarding election of board members and any actions regarding the normal and routine conducting of district business shall be based on one vote per assessed dollar, and said business must be current in payment of their district assessment(s) to participate in such votes. (Ord. 1740 § 2, 10-5-99).
16.10.940 Establishment of benefit assessment.
All businesses, trades, and professions located within the district boundaries shown on Exhibit "A" shall, commencing January 1, 2000, pay an annual benefit assessment to the district in the following amounts:
|
Type of Business |
Zone A |
Zone B |
|
Retailers and restaurants |
$150.00 (1-3 emp.) $225.00 (4-6 emp.) $300.00 (7+) |
$ 75.00 $112.50 $150.00 |
|
Service businesses |
$150.00 (1-3 emp.) $250.00 (4+ emp.) |
$ 75.00 $125.00 |
|
Professional businesses |
$100.00 |
$ 75.00 |
|
Financial institutions |
$500.00 |
$500.00 |
|
Lodging, per complex (bed/breakfast)
(Hotels, motels) |
$150.00
$200.00 |
$150.00
$200.00 |
Note: Retail, restaurant and service businesses will be charged based upon the number of employees, either full-time or the equivalent made up of multiples of part-time employees. (Ord. 1740 § 2, 10-5-99).
16.10.950 Purpose and use of benefit assessments.
The types of improvements and activities proposed to be funded by the levy of assessments on businesses in the district, including but not limited to the following:
(a) Promotion of public events which benefit businesses in the area and which take place on or in public places within the area;
(b) Furnishing of music in any public place in the area;
(c) Promotion of tourism within the area; and
(d) Activities which benefit businesses located and operating in the area, including but not limited to commercial shopping and promotional programs.
The assessment levied hereunder must be used for the purpose specified in this article and the proceeds shall not be used for any other purpose. (Ord. 1740 § 2, 10-5-99).
16.10.960 Exclusions from benefit assessment.
No person or business in the district shall be required to pay an assessment based on:
(a) A residential use of the property; or
(b) A nonprofit organization as defined by Section 501(C)(3) or (C)(6) of the Internal Revenue Service Code. (Ord. 1740 § 2, 10-5-99).
16.10.970 New businesses assessment waiver.
Any new business established within the district shall not be required to pay an assessment for the billing period during which said business is initiated. The business will have been considered initiated on the date of issuance of the business tax certificate. This waiver shall not apply to an existing business that has changed ownership or location within the district. (Ord. 1740 § 2, 10-5-99).
16.10.980 Collection of benefit assessment.
(a) The benefit assessment authorized by this article for Santa Clara businesses shall be billed and collected each calendar year and due on January 1st for that calendar year. City will bill and collect the assessments, at no charge to the district and forward all funds collected to the district within thirty (30) days of said collections.
(b) Late payment penalties shall be applied to businesses that do not provide their respective assessment payments on the dates provided for herein at a rate of ten percent per month. At such time as late payment penalties equate to fifty percent (50%) of the total annual assessment, action shall be taken to recover said delinquent assessments. Costs of this recovery shall be borne by the business owing the assessment and late penalties. (Ord. 1740 § 2, 10-5-99).
16.10.990 Voluntary contributions to district.
Contributions from businesses outside the district boundaries shall be permitted on a voluntary basis. The boundary of the district shall not be modified as a result of the contribution, nor shall said contributing business be considered a member of the district for voting or other purposes. However, said business making a voluntary contribution may be entitled to participate in the programs of the district upon a finding by the board of directors that the district derives a benefit from said business' participation in the program. (Ord. 1740 § 2, 10-5-99).
16.10.1000 Annual budget process.
Pursuant to the California Streets and Highways Code, Sections 36533, 36534, 36535, it shall be necessary for the board to present an annual budget for City Council review and approval prior to the beginning of each fiscal year. (Ord. 1740 § 2, 10-5-99).
16.10.1010 District proceeds do not offset City services.
City specifically finds and declares that the funds derived from the district shall not be used to offset or diminish current maintenance, capital improvement programs, including but not limited to, public property and sidewalk cleaning, street cleaning and maintenance, tree maintenance, restroom cleaning and maintenance. The City declares its intent to provide at least the same level and standard of maintenance and repair of public property within the district as are available from year to year. (Ord. 1740 § 2, 10-5-99).
16.10.1020 Disestablishment of the district.
Proceeding to disestablish the district shall be initiated by the City Council following the procedures set forth in the California Streets and Highways Code, Section 36550. In the event of disestablishment of the district, remaining revenues of the district shall be refunded to paying business owners as set forth in the California Streets and Highways Code, Section 36551. (Ord. 1740 § 2, 10-5-99).
Article IX. Santa Clara Tourism Improvement District
16.10.1110 Resolution of intention, public hearing and findings.
The recitals of the adopting ordinance, which set forth facts regarding the adoption of Council Resolution(s), the conduct of public hearings and certain findings of the City Council, are true and correct and incorporated herein by reference. (Ord. 1797 § 1, 12-14-04).
16.10.1120 Definitions.
For the purpose of calculating and applying the amount of assessments owed, the following definitions shall apply:
(a) "The Act" refers to the authority under which this article is enacted. The authority for a tourism improvement district is Part 6 (entitled "Parking and Business Improvement Area Law of 1989" – commencing with Section 36500) of Division 18 (entitled "Parking") of the California Streets and Highways Code.
(b) The "advisory board" is appointed by the City Council, pursuant to Section 36530 of the Act, to manage the affairs of the district.
(c) "Billing period" shall refer to the following fiscal quarters:
(1) First quarter: July, August, September;
(2) Second quarter: October, November, December;
(3) Third quarter: January, February, March; and
(4) Fourth quarter: April, May, June.
(d) "Fiscal year" means July 1st to and including June 30th of the following year. (Ord. 1797 § 1, 12-14-04).
16.10.1130 Establishment of boundaries.
A tourism improvement district is hereby established pursuant to the Act. The boundaries of the district and the benefit zones within the district shall be as set forth on Exhibit A, which was attached to Resolution No. 7176, and is incorporated herein by reference. [Resolution No. 7176 declared the intention of the City Council to establish a tourism improvement district.] That map depicts the initial district. The district shall be known as the "Santa Clara Tourism Improvement District" (the "district"). From time to time, amendments to the boundaries of the initial district map may be made by resolution of the City Council pursuant to the provisions of Chapter 3 (entitled "Assessments" – Section 36530 et seq.) and Chapter 4 (entitled "Modification of Boundaries, Assessments, Improvements, or Activities" – Section 36540 et seq.) of the Act. Amendments to Exhibit A will contain, on the face of Exhibit A, the number of the amending resolution and date of adoption. (Ord. 1797 § 1, 12-14-04).
16.10.1140 Establishment of district advisory board.
There shall be an advisory board of the district to administer the affairs of the district. Said advisory board shall be constituted of representatives of businesses within the district. Within the advisory board there shall be a president, vice-president, secretary and treasurer elected by the membership, and such other officers as deemed necessary by the advisory board. At their discretion, other officers may be appointed by the advisory board. All voting within the district regarding the election of advisory board officers and any actions regarding the normal and routine conduct of district business shall be based on one vote per assessed dollar, and said business must be current in payment of their district assessment(s) to participate in such votes. (Ord. 1797 § 1, 12-14-04).
16.10.1150 Establishment of benefit assessment.
All hotel properties located within the district boundaries shown on Exhibit A, as amended from time to time, shall, on Monday, February 14, 2005, commence collection of a benefit assessment from hotel guests based on the payment of one dollar ($1.00) per room per occupied night. (Ord. 1797 § 1, 12-14-04).
16.10.1160 Purpose and use of benefit assessments.
The activities to be provided to the district will be funded by the levy of the assessments. A partial listing of the types of improvements and activities proposed to be funded by the levy of assessments on businesses in the district includes, but is not limited to:
(a) Sponsorship of an aggressive and colorful marketing campaign developed to attract additional travelers and tourists.
(b) Sponsorship of aggressive marketing efforts to attract additional conventions.
(c) Possibly sponsor the services of a consulting firm to prepare a travel/tourism marketing study and plan for the purpose of determining where to focus marketing funds and what market(s) to target as well as what specific marketing programs might be most effective.
(d) Possibly sponsor print ads in Sunset, Via and other similar travel publications.
(e) Possibly sponsor a creative and colorful outdoor advertising campaign.
(f) Possibly sponsor a commercial marketing campaign to attract specific cultural groups.
(g) Sponsor administrative costs of program development and implementation. The City Council finds that businesses within the district will be benefited by the above-referenced activities funded by the proposed assessment, as amended from time to time. (Ord. 1797 § 1, 12-14-04).
16.10.1170 Exclusions from benefit assessment.
No person or business shall be required to pay an assessment based on: (a) a residential use of the property within the district, or (b) a nonprofit organization as defined by Section 501(c)(3) or (c)(6) of the Internal Revenue Code (26 U.S.C.A.) located within the district. Various other businesses located within the district boundaries, but deemed not to be directly benefited from a tourism and convention stimulation program, may also be exempted. (Ord. 1797 § 1, 12-14-04).
16.10.1180 New business assessment waiver.
Any new business subject to the assessment established within the district shall not be required to pay an assessment for the billing period (the fiscal quarter) in which said business is initiated. The business will be considered initiated on the date of issuance of a City business license. This waiver shall not apply to an existing business that has changed ownership or location within the district. City agrees to supply the district with timely information regarding new businesses initiated within the district. (Ord. 1797 § 1, 12-14-04).
16.10.1190 Submission of the benefit assessment.
Santa Clara businesses located and benefited by the district shall commence submitting to the City the assessment monies collected from their guests during the initial fiscal quarter by April 14, 2005 (for the third fiscal quarter), and thereafter by the tenth business day of the month following the last day of a designated fiscal quarter [i.e., the payment for the fourth fiscal quarter ending June 30, 2005, is due by July 14, 2005]. The assessment funds and the accounting information backup for the funds shall be submitted to the City in accordance with this schedule. The City will forward to the district the funds (without interest) received from the participant businesses within thirty (30) days of the funds being submitted to the City. (Ord. 1797 § 1, 12-14-04).
16.10.1200 Administrative charge and out-of-pocket reimbursement to City.
There will be a City administrative charge. The City's administrative charge will initially be seven hundred fifty dollars ($750.00) per fiscal quarter (three thousand dollars [$3,000.00] per fiscal year) for processing the assessment submissions. In addition, the City shall be reimbursed for any of its out-of-pocket expenses (i.e., mailing, newspaper notices, etc.). The administrative charge will be reviewed annually as part of the annual report submitted by the advisory board to the City. The administrative charge and out-of-pocket reimbursement will be made quarterly as a deduction from the assessment funds the City will forward to the district quarterly. (Ord. 1797 § 1, 12-14-04).
16.10.1210 Voluntary contributions to district.
Contributions to the district will be permitted on a voluntary basis. The boundary of the district shall not be modified as a result of the contribution, nor shall said contributing business be considered a member of the district for voting or other purposes. However, said business making a voluntary contribution may be entitled to participate in the programs of the district upon a finding by the advisory board that the district derives a benefit from said business' participation in the program. (Ord. 1797 § 1, 12-14-04).
16.10.1220 Annual report process.
Pursuant to provisions of Section 36533 of the Act, it shall be necessary for the advisory board to present an annual report for City Council review and approval prior to the beginning of each fiscal year, as defined hereinabove. The annual report shall be submitted by April 1st of each year commencing April 1, 2006. Among the reasons for the submission of the annual report is to comply with provisions regarding public notice and hearing prior to establishing the benefit assessments for the following fiscal year pursuant to Sections 36534 and 35535 of the Act. Submission of a district budget is one of the mandated components of the annual report. (Ord. 1797 § 1, 12-14-04).
16.10.1230 Decisions regarding expenditure of funds.
Decisions regarding the expenditure of funds will be made pursuant to Chapter 3 (entitled "Assessments" – Section 36530 et seq.) and Chapter 4 (entitled "Modification of Boundaries, Assessments, Improvements, or Activities" – Section 36540 et seq.) of the Act. (Ord. 1797 § 1, 12-14-04).
16.10.1240 Disestablishment of the district.
Proceeding to disestablish the district shall be initiated by the City Council following the presentation of a petition to the City Council signed by district business owners paying fifty percent (50%) or more of the total assessments levied in the last four completed fiscal quarters. Proceedings to disestablish the district shall follow the procedures set forth in the Act. The City Council shall disestablish the district if, following the public hearing prescribed in Section 36550(b), written protests are not withdrawn as to reduce the protests below the fifty percent (50%) level. In the event of disestablishment of the district, there may be surplus funds remaining. It would be difficult to return the funds to the individual guests who had paid the assessment. Consequently, the surplus funds, if any, are to be donated to bona fide charitable, educational, civic, religious or similar tax-exempt, nonprofit organization(s). The designation of recipient organization(s) and the amount to be donated will be at the discretion of the advisory board. (Ord. 1797 § 1, 12-14-04).