Chapter 8 ALTERNATIVE METHOD OF FINANCING PUBLIC IMPROVEMENTS AND COLLECTING SPECIAL ASSESSMENTS

CHAPTER 8
ALTERNATIVE METHOD OF FINANCING PUBLIC IMPROVEMENTS AND COLLECTING SPECIAL ASSESSMENTS

(Added by O-1960; O-1961)

78.1.1 PURPOSE OF CHAPTER.

The provisions of the Improvement Act of 1911 as contained in the Streets and Highways Code of the State of California are hereby incorporated in any proceedings undertaken under this Chapter insofar as they are consistent with the provisions of this Chapter.

78.1.2 DETERMINATION NOT TO ISSUE BONDS.

In connection with the work of improvement ordered under any provisions of the Improvement Act of 1911 the City Council may determine not to issue bonds to finance the construction of such work and in lieu thereof to pay the contractor performing such work out of public funds and to collect the assessments levied on property within the district by following the procedure set forth in this Chapter; provided, however, that any such payment shall be made from public funds on hand or funds which shall accrue from the income and revenue of the fiscal year in which the contract to perform such work is made.

78.1.3 RESOLUTION OF INTENTION.

When the City Council determines that bonds shall not be issued and the procedures of this Chapter shall be followed instead, it shall recite its determination in the Resolution of Intention to do the work.

78.1.4 INCIDENTAL EXPENSES.

a) The City (rather than the contractor) shall pay:

1) The cost of the incidental expenses including, but not limited to the cost of any acquisition as defined in Section 5023.1 of the State Streets and Highways Code as amended, and expenses incidental in connection with such acquisition; and

2) All other costs and expenses of the proceedings.

b) The City shall waive the payment thereof by the contractor.

c) The City Council may determine in the Resolution of Intention that all or any part of such costs and expenses shall be assessed against the district to which they relate.

78.1.5 NOTICE INVITING BIDS.

The notice inviting sealed proposals or bids, as required by Section 52.4.1. as amended, of the Streets and Highways Code, shall state 1) that the City shall pay the estimated cost of any acquisition and all other incidental expenses, 2) that the contractor shall not advance any of the costs of acquisition or any other incidental expenses, and 3) that the contractor shall be awarded a cash contract rather than the contract otherwise provided for in the Improvement Act of 1911.

78.1.6 CONSTRUCTION CONTRACT.

Any contract for the construction of the work of improvement or for furnishing materials, supplies or equipment shall include the provisions set forth in the Notice Inviting Bids and required by Section 78.1.5.

78.1.7 PERFORMANCE OF WORK BY CITY.

The City Council may determine that the work of improvement shall be done by the City by force account, in which event it shall recite such determination in the Resolution of Intention to do the work.

78.1.8 CITY TO PAY CONTRACTOR.

The City shall pay the contractor for performing the work in accordance with the provisions of the contract therefor. Except for extra work, no contribution by the City shall be paid to the contractor above such contract price.

78.1.9 WARRANT ISSUED TO TREASURER.

The warrant attached to the assessment shall be issued to the City Treasurer. The City Treasurer shall collect assessments in accordance with the provisions of this Chapter and of the Improvement Act of 1911.

78.1.10 NOTICE OF ASSESSMENTS.

After the warrant, diagram and assessment have been recorded, the City Treasurer shall mail postage prepaid to each owner of property described in the assessment, at his last known address as appears on the tax rolls, a post card or letter notifying him 1) of the amount of the assessment, 2) of the rate of interest thereon, if any, 3) if interest is charged, that if such sum is paid during the period commencing on the date of recordation and terminating thirty (30) days thereafter then no interest shall be charged upon said assessment, 4) of the events set forth in Section 78.1.11. upon the happening of which the assessment shall become due, and 5) of the owners right of prepayment. The failure of the City Treasurer to mail the card or letter or the failure of the property owner to receive it shall not affect the validity of any penalty or invalidate any act or proceeding.

78.1.11 UNPAID LIST.

After the termination of said thirty (30) day period, the City Treasurer shall file a statement of all such assessments remaining unpaid on such date and he shall attach such unpaid list to the assessment book immediately following the recordation of the assessment.

78.1.12 SEMIANNUAL PAYMENTS.

a) After the City Treasurer files his list of unpaid assessments, the principal of each unpaid assessment, together with any interest thereon, shall become due and payable to the Treasurer in twenty (20) equal semiannual installments.

b) The first semiannual installment shall be due and payable on April l5th next succeeding March 1st or October 15th next succeeding September 1st, as the case may be, next following the filing of the list of unpaid assessments. The following installment payments shall each be payable on each 15th day of April and October thereafter.

78.1.13 ACCELERATION OF PAYMENT.

Notwithstanding the provisions of Section 78.1.12., the entire amount of the unpaid principal and interest shall become due and payable to the City Treasurer on the happening of any of the following events:

a) The assessment lot is 1) improved by the construction thereon of any building or structure, or 2) is improved within any twelve (12) month period by the construction of alteration or additions having a valuation (as prescribed in the Building Code of the City for the determination of the amount of building permit fees) in the aggregate of more than twenty-five (25) percent of the valuation (as similarly determined) of the improvements located thereon at the beginning of such twelve (12) month period.

b) The use of the assessed lot is changed pursuant to any zoning ordinance, variance, use permit or otherwise.

c) The assessed lot is subdivided or otherwise divided into two (2) or more parcels.

d) The assessed lot is sold.

78.1.14 ACCEPTANCE OF INTEREST PAYMENTS ALONE.

The City Treasurer may accept payments of installments of interest unaccompanied by payments of installments of principal which are due.

78.1.15 INTEREST.

The City Council may determine in the Resolution of Intention that the principal payment shall bear interest at a rate which shall not exceed six (6) percent per annum from the date the City Treasurer files his list of unpaid assessments to the date of payment of the unpaid assessment. The interest shall accrue on an annual basis until paid. No interest shall be charged on unpaid interest.

78.1.16 OPTIONAL PREPAYMENT.

The principal amount of any assessment, together with an interest due thereon, may be paid prior to the due date.

78.1.17 DELINQUENCY PENALTY.

If the principal of the unpaid assessment or of any interest thereon is not paid on the due date, the City Treasurer shall after the close of business on the due date add to the principal or interest so delinquent a penalty of one (1) percent of the total amount of such delinquency and at the beginning of the business on the first day of each succeeding month until such delinquent payment and all payments thereon are fully paid, he shall add an additional penalty of one (1) percent of the amount of such delinquency. The City Treasurer shall collect penalties with and as part of the delinquent payment.

78.1.18 NOTICE OF PAYMENT DUE.

At least fifteen (15) days before each respective 15th day of April and October, until the assessment is paid in full, the City Treasurer shall mail, postage prepaid, to each owner of property described in the assessment, at his last known address, as appears upon the tax rolls current at the time of mailing a postal card notifying him of the amount due and the date when payment is due from him on the assessment and stating that the payment is subject to penalty if not paid on or prior to the due date, the failure of the City Treasurer to mail the card or the failure of the property owner to receive it shall not affect the validity of any penalty or invalidate any act or proceeding.

78.1.19 PRIORITY OF LIEN.

The assessment shall be a lien upon the property affected thereby with a priority as fixed in Section 53.7.3 of the Streets and Highways Code until the assessment shall be fully paid, but which lien shall in no event continue beyond four (4) years after the said ten (10) year period. Except as herein provided, the lien shall be perfected in accordance with Division 4.5 of the State Streets and Highways Code, as amended.

78.1.20 DEFAULT AND SALE FOR DELINQUENCY.

Whenever payment upon either the principal or the interest of any payment due hereunder is not made when the same is due, the Treasurer shall proceed to advertise and sell the lot or parcel of land and such unredeemed property shall be conveyed by deed and the validity of such sale and deed may be contested in accordance with the provisions of Chapters 6, 8 and 9, Part 5, Division 7 of the State Streets and Highways Code, as amended, the same as if said Chapters had been incorporated herein in full.

78.1.21 REDEMPTION OF DELINQUENT PROPERTY.

The delinquent property so sold may be redeemed in accordance with the provisions of Chapter 7, Part 5, Division 7 of the State Streets and Highways Code as amended, the same as if said Chapter had been incorporated herein in full.

78.1.22 CONCLUSIVENESS OF PROCEEDINGS.

a) The curative clauses, statutes of limitation and validating acts as set forth in the 1911 Act shall be applicable to proceedings carried out under the provisions of this Chapter, including, but not limited to, Sections 5368 and 5369 of the Streets and Highways Code.

b) The warrant by its issuance to the City Treasurer shall be conclusive evidence of the regularity of all proceedings under this Chapter leading up to such issuance.

78.1.23 INCORPORATION OF 1911 ACT.

Except as provided in this Chapter, all of the provisions of the Improvement Act of 1911, as previously and as subsequently amended by the Legislature, are incorporated by reference the same as if set forth in full herein.