Chico Municipal Code Art. X Establishment of Maintenance Districts

The council may utilize the provisions of Chapter 26 of Part 3 of Division 7 of the Streets and Highways Code of the state of California, excepting Sections 5850 to 5853, inclusive, as those provisions pertain to maintenance districts established by the legislative body of a city, or the council may utilize the provisions of this chapter. Use of the provisions of this chapter does not preclude the application of provisions of the general law not inconsistent herewith.

(Ord. 1586 §11 (part))

The council may, in its resolution declaring its intention to order work done or improvements made or acquired in proceedings for that purpose, or it may, by separate resolution in proceedings for the sole purpose of establishing a maintenance district, declare its intention to order that the costs and expenses of maintaining and operating specified 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 deemed reasonably necessary for the proper maintenance and operation thereof, shall be assessed either partly or wholly upon such property as the council shall determine will be benefitted by the maintenance and operation of the public improvements proposed to be maintained and operated; the amounts so assessed to be collected in the same manner and by the same county officers as the taxes for general city purposes are collected.

(Ord. 1586 §11 (part))

The purpose of this chapter is to provide an alternative procedure by which the council may provide funding for the whole or any part of the costs and expenses of maintaining and operating specified public improvements of a local nature, payable from annual benefit assessments to be apportioned among the several lots or parcels of property within the maintenance district established therefor in conformity with a method of apportionment which is to be determined in the proceedings in which jurisdiction is provided therefor.

(Ord. 1586 §11 (part))

The resolution of intention to order work done or improvements made or acquired or the separate resolution, if adopted pursuant to Section 3.80.460 of this chapter, shall contain a statement of the method by which such annual benefit assessments will be apportioned according to estimated benefits among the several lots or parcels of property within the maintenance district to be established therefor. The method of apportionment prescribed shall be such that its application shall constitute a ministerial act, not involving the exercise of discretion, and said method may prescribe a maximum rate of annual benefit assessment to be levied for such purpose. Such resolution of intention shall also set a time and place for a hearing on the establishment of a maintenance district and shall include a statement that all owners of property subject to the proposed assessment may protest or be heard at such hearing as to the establishment of the district, the boundaries thereof, the fairness of the method of apportioning costs and any other matter relating to the proposed assessment of or the administration of the assessment district.

(Ord. 1586 §11 (part))

No later than ten days prior to the date set for the hearing on the establishment of the assessment district, the clerk shall cause a notice of hearing to be published once in a newspaper of general circulation in the city and shall cause a copy of the resolution of intention adopted by the council as provided in Section 3.80.470 to be mailed, postage prepaid, to all owners of property subject to the proposed assessment, and to be posted as provided in this chapter.

(Ord. 1586 §11 (part), Ord. 1832)

The city clerk shall receive written protests, if any, and shall endorse on each protest the date and time it is filed with the city clerk. No protest received after the time fixed for hearing shall be timely, but the council may, in its discretion, consider untimely and oral objections.

(Ord. 1586 §11 (part))

In connection with the hearing provided for the establishment of the maintenance district, owners may protest or be heard as to the establishment of the district, and the boundaries thereof, the fairness of the method of apportioning costs and any other matter related to the proposed establishment of or the administration of the maintenance district.

(Ord. 1586 §11 (part))

At said hearing, the council may make modifications in the method of apportionment for the purpose of making the same more fair and equitable; provided, however, that if such modification is made, before making a final order in said matter it shall set said matter for hearing at a subsequent meeting of the 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 further hearing, by one publication in a newspaper of general circulation in the city, at least ten (10) days prior to said hearing. If the method of apportionment prescribes a maximum rate of annual benefit assessment and such modification consists solely of a decrease in such maximum rate of annual benefit assessment, the council may order such decrease by resolution, and no notice need be given and no hearing need be had thereon.

(Ord. 1586 §11 (part))

Following the close of hearing, if the council determines that either written or oral objections or protest against the payment of costs of maintenance and operation have been made by the owners of more than one-half of the area of the property in said maintenance district subject to benefit assessment, the proceedings shall be abandoned and no further proceedings shall be taken for a period of six months from the date of such determination of the council following the close of hearing, unless the protests are overruled by an affirmative vote of not less than two-thirds of the members of the council. The council may adjourn the hearing from time to time.

(Ord. 1586 §11 (part))

At the initial hearing or at the subsequent hearing on the modification of the method of apportionment as herein provided or at any meeting to which either shall have been adjourned, or at any meeting of the council subsequent to the close of hearing on said matter, with or without said matter having been submitted, unless the proceedings have been abandoned due to a majority protest as provided by Section 3.80.520, the council shall adopt by resolution a method of apportionment of said annual benefit assessments, which shall be that stated in the resolution of intention, or said separate resolution, or as modified, and its determination shall be final and conclusive against all persons.

(Ord. 1586 §11 (part))

At any time following the establishment of a maintenance district or districts in the manner provided by this chapter, the city council may modify such district or districts either by changing the boundaries of a district, by changing the type or scope of the maintenance work to be performed within a district, by changing the method of apportioning the costs of maintenance work to be performed within a district among the various lots or parcels within the district, and/or by merging two or more districts into one district.

(Ord. 1586 §11 (part), Ord. 1916 §1)

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

(Ord. 1586 §11 (part), Ord. 1916 §2)

Proceedings to modify a maintenance district or districts established by the city council in the manner provided by this chapter shall be conducted in the manner provided by this chapter for the initial establishment of a maintenance district, except that where the proposed modification consists entirely of a change in a district's boundaries by reason of the inclusion of additional lots and parcels within the district's boundaries, and such boundary change will result in a decrease in the assessment of those lots and parcels already included within the district's boundaries by reason of the fact that the cost of maintenance district work will be spread over a larger number of lots and parcels, the city clerk will not be required to cause a copy of the resolution of intention adopted by the city council in the manner provided for by Section 3.80.550 nor the notice of hearing required by Section 3.80.480 to be mailed to the owners of those lots and parcels already included within the district's boundaries.

(Ord. 1586 §11 (part), Ord. 1916 §3)

At any time following the establishment of a maintenance district in the manner hereinbefore provided by this chapter the city council may dissolve such district. Proceedings to dissolve a maintenance district or districts shall be initiated by the city council by adoption of a resolution of intention to dissolve such district or districts. In such resolution of intention, the city council shall identify the maintenance district being dissolved, shall set forth the reasons for the dissolution and shall set forth the date, time and place for a hearing at which any owner of property within such district may object to such dissolution. At least ten days prior to the date of a hearing on the dissolution of a maintenance district, the city clerk shall cause notice of the hearing to be published once in a newspaper of general circulation in the city and shall cause a copy of the resolution of intention to be served by mail on all owners of property within such district.

If, at the conclusion of the hearing on the proposed dissolution of a maintenance district the city council determines to proceed with such dissolution, the council shall adopt a resolution ordering such district dissolved.

(Ord. 2043 §1)

On or before April 1st of each year following the establishment of one or more maintenance districts under this chapter, the public works director shall prepare, or cause to be prepared, a report for each district that includes:

A. A maintenance district budget which includes a brief description of the public improvements being operated and maintained with district funds, a brief description of the method adopted by the city council to apportion the costs and expenses of operating and maintaining such improvements among the various lots and parcels within the district's boundaries, and a current estimate of the district revenues which would be required in order to pay the annual costs and expenses of maintaining and operating the public improvements to be funded by such revenues, as calculated from the following:

1. All of the anticipated costs and expenses of operating and maintaining such improvements during the ensuing fiscal year, commencing July 1st;

2. Plus any portion of the anticipated costs and expenses of operating and maintaining such improvements during the current fiscal year, ending June 30th, which will exceed district revenues from assessments levied during the current fiscal year;

3. Less any portion of district revenues from assessments levied during the current fiscal year which will exceed the cost of operating and maintaining such improvements during the current fiscal year.

B. The maximum assessment for the district and each parcel within the district, as established by the assessment amount as determined in the 1996/1997 fiscal year.

C. A schedule of maintenance district assessments which sets forth the following information in columnar form:

1. The assessor's parcel number or numbers for each lot or parcel within the boundaries of such district;

2. The name and address of the current owner or owners of each such lot or parcel, as determined from the last equalized assessment roll of the County of Butte;

3. The assessment which was levied against each such lot or parcel during the current fiscal year;

4. The assessment to be levied against each such lot or parcel during the ensuing fiscal year in order for the lot or parcel to contribute its share of the current estimate of district revenues required to pay the annual costs and expenses of operating and maintaining the public improvements to be funded by such revenues, as determined from the budget prepared by the public works director pursuant to subsection A and the method of apportionment approved by the city council at the time it established the district;

5. The amount, if any, to be added to the assessment levied against each such lot or parcel as and for the county's administrative fee for collecting the assessment; and

6. The total assessment to be levied against each such lot or parcel, as determined from the assessment levied against the lot or parcel in order for the lot or parcel to contribute its share of the annual costs and expenses of operating and maintaining the public improvements to be funded by such district, plus the county administrative fee.

D. A statement which sets forth the following information for each maintenance district:

1. The total assessment which was levied on all of the lots and parcels within such district pursuant to the provisions of this chapter during the current fiscal year in order to pay all of the costs and expenses of operating and maintaining the public improvements being funded with revenues from assessments levied within the district during the current fiscal year;

2. The current estimate of maintenance district revenues which will be required in order to pay the costs and expenses of operating and maintaining the public improvements to be funded with district revenues during the ensuing fiscal year, as set forth in the budget prepared for the district pursuant to subsection A.

(Ord. 1586 §11 (part), Ord. 2043 §2, Ord. 2197 §1, Ord. 2364 §66, Ord. 2439 §28)

A. Upon completion of the annual report, the public works director shall cause a notice to be mailed to each property owner within all of those districts in which the amount proposed to be levied in the ensuing fiscal year exceeds the amount levied during the current fiscal year. Such notice shall set forth the information in 3.80.570 A, as contained in the annual report, the amount levied against the property during the current year, the amount to be levied in the ensuing year and the maximum assessment established in fiscal year 1996/1997.

B. Any amount proposed to be levied which exceeds the maximum assessment established for that district in the 1996/1997 fiscal year, may not be levied unless and until such increase is approved pursuant to the procedures set forth in Chapter 3.81 of this code.

(Ord. 1586 §11 (part), Ord. 2043 §3, Ord. 2197 §2, Ord. 2364 §67, Ord. 2439 §29)

The public works director shall file a copy of each annual report prepared under Section 3.80.570 with the county auditor and the city finance director by August 15 of each year.

(Ord. 1586 §11 (part), Ord. 2043 §10, Ord. 2197 §4, Ord. 2364 §68, Ord. 2439 §30)

Upon receipt of a copy of the annual report , the county auditor shall cause the maintenance district assessments set forth in the report to be added to the secured tax roll of the County of Butte. Thereafter, all such maintenance district assessments shall be paid and collected in the same manner and at the same time as the general taxes of the county on real property are paid and collected, and such assessments shall become delinquent at the same time and bear the same proportionate penalties and interest after delinquency as do the general taxes of the county on real property.

(Ord. 1586 §11 (part), Ord. 2043 §12, Ord. 2197 §5, Ord. 2364 §69)

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 fiscal year after such omission is discovered, and appropriate provision shall be made in the report for said fiscal year.

(Ord. 1586 §11 (part))

If, at the time of issuing a permit or approving any other entitlement pursuant to the provisions of this code which authorizes the development or use of real property, the council, city board or commission, or city officer or employee issuing or approving the permit or other entitlement finds that public improvements have or will be constructed within the public rights of way, public parks, or other public ways and places which will specially benefit such property or the use thereof, the council, city board or commission, or city officer or employee issuing such permit or approving such entitlement may condition the permit or entitlement on the owner of such property waiving the right to administratively protest the formation of a maintenance district and the right to file a legal action seeking to set aside the formation of such district and/or the levy of an assessment on a lot or parcel within the district for the purpose of operating and maintaining such improvements, either pursuant to the provisions of this chapter or the general laws of the State of California.

(Ord. 2043 §13, Ord. 2268)