Chapter 12.50
DESIGNATION OF AREAS OF BENEFIT
Sections:
12.50.020 Areas of benefit authorized.
12.50.040 Initiation of proceedings.
12.50.050 Resolution of intention.
12.50.090 Resolution establishing area of benefit.
12.50.100 Filing of map and recording of notice of assessment as lien.
12.50.120 Payment of benefit assessments.
12.50.130 Recordation of notice of pendency of sale or foreclosure.
12.50.140 Annual adjustment of facilities benefit assessments.
12.50.150 Consideration in lieu of assessment.
12.50.160 Termination of area of benefit.
12.50.170 Reimbursement and refund.
12.50.010 PURPOSE.
(a) The purpose of this chapter is to provide an additional means of financing capital improvements through investment of city funds and pro rata recovery of that investment from the owners of real property benefited by the improvement.
(b) The city of Santa Cruz, pursuant to the home rule provisions of Article II, Section 5, of the California Constitution, may make and enforce all ordinances and regulations with respect to municipal affairs.
(c) The city of Santa Cruz, pursuant to Article II, Section 7, of the California Constitution, may make and enforce all local ordinances not in conflict with general laws.
(d) The Santa Cruz city council finds and declares that the use of public funds to finance public facilities is a public necessity and a municipal affair.
(Ord. 84-48 § 1, 1984).
12.50.020 AREAS OF BENEFIT AUTHORIZED.
In order that the burdens of the cost of constructing public facilities may be borne by all of the lands benefited thereby, areas of benefit may be designated and facilities benefit assessments, as defined in Section 12.50.030, chargeable to and against such lands may be imposed in accordance with procedures set forth in this chapter.
(Ord. 84-48 § 1, 1984).
12.50.030 DEFINITIONS.
Unless the context requires otherwise, the definitions set forth in this section apply to the following terms as used in this chapter:
(a) “Advance” means amounts expended by the city or other governmental entity toward the cost of a public facilities project within or for the benefit of an area of benefit and for which the city shall be reimbursed from facilities benefit assessments;
(b) “Area(s) of benefit” means lands designated as receiving special benefits from the construction, acquisition, and improvement by a resolution of designation adopted by the city council pursuant to this chapter;
(c) “Building permit” means the permit required under the Uniform Building Code for the construction of any structure;
(d) “Capital improvement program” means a plan for the implementation and financing of public facilities projects including but not limited to a schedule for the commencement of construction, the estimated cost of construction and the payment and facilities benefits assessments;
(e) “Construction” means design, acquisition of property, administration of construction contracts, actual construction and incidental costs related thereto;
(f) “Contribution” means amounts expended by the city or other governmental entity toward the cost of a public facilities project in relation to the general benefit received by the city from construction of the public facilities project;
(g) “Cost(s)” means amounts spent or authorized to be spent in connection with the planning, financing, acquisition and development of a public facilities project including, without limitation, the costs of land, construction, engineering, administration, interest and transaction charges and legal and financial consulting fees;
(h) “Development” means the division of land, grading, or original construction of an improvement to real property, which division of land, grading, or construction is of the type normally associated with urban development as opposed to agricultural activity;
(i) “Facilities benefit assessment(s)” means the amounts collected under the terms of this chapter to provide funds for public facilities project(s) which will benefit designated areas of benefit;
(j) “Public facilities project” means any and all public improvements the need for which is directly or indirectly generated by development.
(Ord. 84-48 § 1, 1984).
12.50.040 INITIATION OF PROCEEDINGS.
Upon the receipt of an application by a landowner or his designated agent, or on its own motion, the city council may initiate proceedings for the designation of an area of benefit by adopting a resolution stating its intention to do so. The city council shall refer the proposed public facilities project to the city manager and shall direct said city manager with the assistance of city agencies and, where appropriate, interested landowners to make and file with the city clerk a report in writing which shall contain:
(a) (i) An implementation program for future development; and/or (ii) a financing plan with respect to the proposed public facilities project;
(b) A general description of the proposed public facilities project;
(c) An estimate of the total cost of the public facilities project(s) based on the projected time for commencement and completion thereof in accordance with the capital improvement program;
(d) A capital improvement program establishing a schedule for the timing of construction of the public facilities project and the estimated costs therefor;
(e) A diagram showing the area of benefit to be designated and the boundaries and dimensions of the subdivision of land within the area of benefit;
(f) Preliminary information concerning the method pursuant to which the costs are proposed to be apportioned among the parcels within the area of benefit in proportion to the estimated benefits to be received by those parcels and a preliminary estimate of the amount of the facilities benefit assessments which will be charged to each such parcel;
(g) The amount of the contribution and/or advance, if any, which the city or other public entity will make toward the cost of the public facilities project(s).
(Ord. 84-48 § 1, 1984).
12.50.050 RESOLUTION OF INTENTION.
Upon receipt of the report described in Section 12.50.040, the city council may declare its intention to designate an area of benefit by adopting a resolution of intention which shall include the following:
(a) A definitive description of the specific public facilities project, the cost of which is proposed to be charged to the properties located within the area of benefit;
(b) A capital improvement program with respect to the public facilities project(s);
(c) The proposed boundaries of the area of benefit;
(d) Information concerning the method by which the costs are proposed to be apportioned among the parcels within the area of benefit and an estimate of the amount of the facilities benefit assessments which will be charged to each such parcel;
(e) The basis and methodology by which automatic annual increases in the facilities benefit assessment will be computed, assessed and levied, without the necessity for further proceeding pursuant to Section 12.50.140 if, in the discretion of the city council, such automatic annual increases are determined to be necessary;
(f) The amount of the contribution and/or advance, if any, which the city or other public entity will make toward the total cost; and
(g) The time and place at which the city council will hold a hearing to consider designation of the area of benefit.
(Ord. 84-48 § 1, 1984).
12.50.060 NOTICE OF HEARING.
Notice of the hearing shall be provided by a single publication of the resolution of intention in a newspaper of general circulation at least two weeks before the date set for the hearing and by mailing copies of the resolution of intention to the owners of the properties who may be assessed located within the proposed area of benefit at the address shown on the last equalized assessment roll, or as otherwise known to the city clerk; or by any other means which the city council finds reasonably calculated to apprise affected landowners of the hearing. The notice shall contain a statement of the time, place and purpose of the hearing on the resolution of intention and a statement of the total estimated cost of the proposed improvement, the amount of any contribution of work or labor and any portion of materials, supplies or equipment which is to be made by any local, state, or federal agency or authority, together with a statement that any person interested may file a protest as provided in Section 12.50.070. The notice shall also contain the name and telephone number of a city department designated to answer inquiries regarding the protest proceedings.
(Ord. 84-48 § 1, 1984).
12.50.070 PROTESTS.
At any time not later than the close of the public hearing, any owner of property within the proposed area of benefit who may be assessed may file a written protest against the public facilities project proposed to be undertaken, or against the extent of the area to be benefited by it, or against the facilities benefit assessments proposed to be levied within the area of benefit or against any or all of the foregoing. The protest must be in writing, signed by the protestor, and must contain a description of the property in which the signer is interested. The description must be sufficient to clearly identify the property. If the signer is not shown on the last equalized assessment roll as the owner of that property, the protest must contain or be accompanied by written evidence that the signer is the owner of the property. All such protests shall be delivered to the city clerk, and no other protests or objections shall be considered. Any protest may be withdrawn by the owner’s requesting the same, in writing, at any time prior to the conclusion of the public hearing.
(Ord. 84-48 § 1, 1984).
12.50.080 HEARING.
At the time and place established in the resolution of intention, the city council shall hear and consider protests filed against the proposed public facilities project, the extent of the area of benefit, the amount of the facilities benefit assessments proposed to be levied within the area of benefit, or any or all of the foregoing. The hearing may be continued from time to time. If within the time when protest may be filed, there is filed with the city clerk a written protest by the owners of more than one-half of the area of the property proposed to be included within the area of benefit, and if sufficient protests are not withdrawn so as to reduce the area represented to less than one-half, then the proposed proceedings shall be abandoned unless the protests are overruled by an affirmative vote of four-fifths of the members of the city council. The city council shall not overrule a majority protest unless it finds that the public health, safety, or general welfare require that provision be made for the installation of the proposed public facilities project(s). In the event a majority protest is not withdrawn or overruled, the city council shall not, for one year from the filing of that written protest, commence or carry on any proceedings for the same public facilities project under the provisions of this chapter. If any majority protest which is not withdrawn or overruled is directed against only a portion of the public facilities project, then all further proceedings under the provisions of this chapter to construct that portion of the public facilities project so protested against shall be barred for a period of one year; but the city council shall not be barred from commencing new proceedings, not including any part of the public facilities project so protested against. Nothing in this section shall prohibit the city council within a one-year period, from commencing and carrying on new proceedings for the construction of a portion of the public facilities project so protested against if it finds, by the affirmative vote of four-fifths of its members, that the owners of more than one-half of the area of the property to be benefited are in favor of going forward with such portion of the public facilities project.
(Ord. 84-48 § 1, 1984).
12.50.090 RESOLUTION ESTABLISHING AREA OF BENEFIT.
At the conclusion of the hearing, and provided there is no majority protest or a majority protest is overruled, the city council may adopt a resolution ordering designation of the area of benefit and the establishment of the amount of the facilities benefit assessment against each parcel within the area of benefit. The resolution shall include the following:
(a) A definitive description of the public facilities project(s), the cost of which is to be charged to the properties located within the area of benefit;
(b) A capital improvement program with respect to the public facilities project;
(c) The boundaries of the area of benefit;
(d) The method by which the costs are to be apportioned among the parcels within the area of benefit and the amount of the facilities benefit assessments which will be charged to each such parcel;
(e) The basis and method by which automatic annual increases in the facilities benefit assessment will be computed, assessed and levied, without the necessity for further proceeding pursuant to Section 12.50.140, if, in the discretion of the city council, such automatic annual increases are determined to be necessary;
(f) The amount of the contribution and/or advance, if any, which the city or other public entity will make toward the total cost.
(Ord. 84-48 § 1, 1984).
12.50.100 FILING OF MAP AND RECORDING OF NOTICE OF ASSESSMENT AS LIEN.
(a) After the adoption by the city council of a resolution designating the area of benefit, the city engineer shall prepare a map of the boundaries of the area of benefit based on said resolution and file same with the city clerk. The map shall be labeled substantially as follows:
“(here insert name or number of area of benefit), Area of Benefit, City of Santa Cruz, Santa Cruz County, State of California.”
The map shall also contain legends reading substantially as follows:
(1) Filed in the office of the City Clerk this _____ day of ___________ , 19__.
________________________
City Clerk, City of Santa Cruz
(2) Facilities benefit assessments were levied by the City Council on the lots, pieces and parcels of land shown on this diagram. Said assessments were levied on ______, 19___; the diagram and the assessment roll were recorded in the office of the City Clerk of said city on _____, 19___. Reference is made to the assessment roll recorded in the office of the City Clerk for the exact amount of each facilities benefit assessment levied against each parcel of land shown on this diagram.
________________________
City Clerk, City of Santa Cruz
(3) Filed on ______, 19___, at ____ o’clock __.m. in Book _____ of Maps of Assessment Districts in the office of the County Recorder of the County of Santa Cruz, State of California.
__________________________________
County Recorder of County of Santa Cruz
The clerk shall file a copy of the diagram referred to in this subparagraph in the office of the County Recorder of Santa Cruz upon payment of the filing fee.
(b) After recording the assessment and diagram in the clerk’s office and after filing the diagram with the county recorder, the city clerk shall execute and record a notice of assessment in the office of the county recorder of Santa Cruz. Such notice of assessment shall be in substantially the following form:
NOTICE OF ASSESSMENT
Pursuant to the requirements of Santa Cruz Municipal Code Chapter 12.50, the City Clerk of the City of Santa Cruz, State of California, hereby gives notice that a diagram and assessment were recorded in the office of the City Clerk relating to the following described property:
(The real property in the Area of Benefit may be described by: (a) stating its exterior boundaries; (b) giving its description according to any official or recorded map, or (c) referring to the diagram filed in accordance with paragraph (a) of this section and the book and page number in the office of the County Recorder of the filed plat or map.)
Notice is further given that upon the recording of this Notice in the office of the County Recorder, the several facilities benefit assessments assessed on the lots, pieces, and parcels shown on the filed diagram shall become a lien upon the lots or portions of lots assessed, respectively.
(c) From the date of the recording of the notice of assessment in accordance with the provisions of subsection (b) of this section, all persons shall be deemed to have notice of the contents of such assessment. Immediately upon such recording in the office of the county recorder each of the assessments shall be a lien upon the property against which it is made.
(d) In its discretion, and for good cause shown, the city council may, upon terms and conditions prescribed by the city council in its resolution designating area of benefit or thereafter, allow the lien of the facilities benefit assessment to become junior and subordinate to the lien of deed(s) of trust executed by landowners to secure loans to finance the construction of improvements on the property within the area of benefit.
(Ord. 84-48 § 1, 1984).
12.50.110 USE OF CITY FUNDS.
The city council may, by resolution, advance city funds to finance construction of any public facility authorized by this chapter. In adopting such a resolution, the council must find that:
(a) Unnecessary delay in construction would result from collecting the facilities benefit assessments prior to commencing construction;
(b) Adequate provision has been made in the capital improvement plan for repaying the city’s expenditure from anticipated facilities benefit assessments;
(c) The procedures required in this chapter for levying facilities benefit assessments will have been satisfied prior to the expenditure of any city funds advanced by the resolution.
When city funds are advanced to finance all or part of the expense of the public facility, the amount advanced, excluding any city contribution, shall be reimbursed from the facilities benefit assessments fund required by Section 12.50.120.
(Ord. 84-48 § 1, 1984).
12.50.120 PAYMENT OF BENEFIT ASSESSMENTS.
After the adoption by the city council of its resolution designating the area of benefit, no building permits shall be issued for development on any land included within the area of benefit unless and until the facilities benefit assessments established by the resolution for such lands have been paid. The facilities benefit assessment shall be paid by the landowner upon the issuance of building permit(s) for development or at such time as the capital improvement program for the area of benefit in which the assessed land is located calls for the commencement of construction of the public facilities project, whichever occurs first. In the event that a landowner desires to proceed with development of a portion of the landowner’s property, based on a phased development program, which is subject to a lien for the total amount of facilities benefit assessments as provided in this chapter, the landowner may obtain building permits for the development phase after paying a portion of the facilities benefit assessments and making provision for payment of the remainder of the facilities benefit assessments to the satisfaction of the city manager. Money received by the city as payment of the facilities benefit assessments shall be deposited in a special fund established for the area of benefit and shall thereafter be expended solely for the purpose for which it was assessed and levied. Upon payment of the facilities benefit assessments as provided in this chapter, the lien which attaches pursuant to Section 12.50.100 shall be discharged. In the event the partial payment is made based on a phased construction program, the city shall release the portion of the property for which building permits have been issued and payment made from the lien of the facilities benefit assessment.
(Ord. 84-48 § 1, 1984).
12.50.130 RECORDATION OF NOTICE OF PENDENCY OF SALE OR FORECLOSURE.
Where there is a delinquency in payment of the facilities benefit assessments as required by Section 12.50.120, the city may initiate foreclosure proceedings in accordance with the procedures set forth in this section and in any and all applicable state and local laws. If a sale or foreclosure is commenced, notice of the pendency of such sale or foreclosure shall be recorded with the county recorder of Santa Cruz County not later than ten days after commencing an action or proceeding in any court to foreclose the lien of such assessment. The notice of pendency shall state that the city of Santa Cruz has commenced a sale or foreclosure, as the case may be, and shall refer to and identify such sale or foreclosure and shall describe the property affected thereby. The city shall be entitled to recover the cost of recordation of any such notice of pendency in any sale or foreclosure resulting from such delinquency and provision therefor shall be made in any notice, order or judgment authorizing or providing for such sale or foreclosure. The judgment shall include costs of suit and attorney’s fees.
(Ord. 84-48 § 1, 1984).
12.50.140 ANNUAL ADJUSTMENT OF FACILITIES BENEFIT ASSESSMENTS.
The city council may, annually after the adoption of the resolution designating the area of benefit and subject to the requirements set forth in Sections 12.50.040 through 12.50.100, cause an adjustment to be made in the facilities benefit assessments established by the resolution. The process for making material adjustments shall be the same as those followed in imposing the initial assessment where the adjustment does not result in an increase in the assessment or in a material change in the project; however, it may be made by resolution without public hearing or protest procedure. The adjustments may reflect increases or decreases in the actual cost of the public facilities project or if the public facilities project has not yet been constructed then the estimated cost of the proposed capital improvements as reflected in changes in the scope of the public facilities project or any other indices as the city council may deem appropriate for this purpose. The modifications may also reflect changes in the improvements proposed to be constructed as well as the availability, or lack thereof of other funds with which to construct the capital improvements.
(Ord. 84-48 § 1, 1984).
12.50.150 CONSIDERATION IN LIEU OF ASSESSMENT.
The provisions of Section 12.50.120 to the contrary notwithstanding, upon application by the landowner or his authorized agent, the city council may accept consideration in lieu of the facilities benefit assessments required pursuant to this chapter, provided the city council, upon recommendation of the city manager, finds that the substitute consideration proposed: (1) has a value equal to or greater than such facilities benefit assessments; (2) is in a form acceptable to the city council; and (3) is within the scope of the public facilities project. The city council may accept consideration in lieu of the facilities benefit assessments required pursuant to this chapter where the city council finds that the substitute consideration proposed is less than the value of such facilities benefit assessment after payment of an amount equal to the difference between the value of the substitute consideration as determined by the city council and the amount of such facilities benefit assessments.
(Ord. 84-48 § 1, 1984).
12.50.160 TERMINATION OF AREA OF BENEFIT.
Upon receipt of an application by a landowner or his designated agent, or on its own motion, the city council may initiate proceedings for the termination of an area of benefit by adopting a resolution stating its intention. The resolution of intention shall state the time and place at which the city council will hold a hearing to consider such termination. If, at the conclusion of such hearing, the city council finds and determines that the public facilities project for which the area was originally formed will not be required in the reasonably foreseeable future; or that the installation of said public facilities project may be financed more effectively by another method, the city council may adopt a resolution declaring the area of benefit terminated.
(Ord. 84-48 § 1, 1984).
12.50.170 REIMBURSEMENT AND REFUND.
(a) In the event of an annual adjustment of assessment as provided by Section 12.50.140, which reduces the facilities benefit assessment, amounts in the special fund which are no longer required shall be refunded to the current owner(s) of the property as shown on the last equalized assessment roll in proportion to the amount of the original payments.
(b) In the event the city council agrees to accept consideration in lieu of facilities benefit assessments as provided by Section 12.50.150, the value of which the city council finds is greater than the amount of the otherwise applicable facilities benefit assessments, the council may enter into an agreement with a developer pursuant to which said developer may be reimbursed for the amount of the otherwise applicable facilities benefit assessments. The agreement shall set forth the amount to be reimbursed, and the time and manner in which payments shall be made only from revenues paid into the special fund created for the area of benefit.
(c) Upon termination of an area of benefit as provided by Section 12.50.160, any money remaining in the special fund established in connection therewith shall be refunded to the current owner(s) of the property as shown on the last equalized assessment roll in proportion to the amount of the original payments.
(Ord. 84-48 § 1, 1984).
12.50.180 ALTERNATIVE METHOD.
This chapter is intended to establish an alternative method for the spreading of the costs of certain public improvements against the lands which will be benefited thereby, and the provisions of this chapter shall not be construed to limit the power of the city council to use any other method for accomplishing this purpose but shall be in addition to any other requirements which the city council is authorized to impose as a condition to approving new development pursuant to state and local laws.
(Ord. 84-48 § 1, 1984).