Chapter 14 — COMMUNITY BENEFIT DISTRICTS

This chapter may be cited as the "Downey Community Benefit District Procedural Ordinance." (Added by Ord. 15-1346, adopted 10-27-15)

This chapter is adopted pursuant to Section 400 of the City Charter, which provides that except as prohibited by the State Constitution or restricted by the City Charter, the City shall have all powers and privileges that may be exercised by a charter city. (Added by Ord. 15-1346, adopted 10-27-15)

This chapter provides a procedure for the establishment of assessment districts that is separate from, and alternative to, other procedures under State or municipal law. This chapter does not prohibit the City Council from establishing an assessment district or conducting proceedings for such district under any other procedure authorized by law. (Added by Ord. 15-1346, adopted 10-27-15)

The City Council may establish a Community Benefit District and levy assessments in connection with such a District pursuant to this chapter. (Added by Ord. 15-1346, adopted 10-27-15)

This chapter incorporates the Property and Business District Law of 1994 (Streets and Highways Code Section 36600 et seq.), which is referred to in this chapter as the "PBID Law." In connection with such incorporation, all references in the PBID Law to a "District" or a "Property and Business District" shall be interpreted as references to a Community Benefit District. Except where a provision of the PBID law is inconsistent with a provision of this chapter, all provisions of the PBID law shall apply to the establishment and operation of any Community Benefit District established pursuant to this chapter. In the event of a conflict between the provisions of this chapter and those of the PBID Law, the provisions in this chapter shall prevail. (Added by Ord. 15-1346, adopted 10-27-15)

Notwithstanding the requirements of Section 36632 of the PBID Law, any parcel of real property, regardless of the zoning of such parcel, may be included in a Community Benefit District and subject to an assessment in connection therewith, so long as such parcel specially benefits from the services and improvements funded by that District. (Added by Ord. 15-1346, adopted 10-27-15)

Only assessments against real property may be levied in connection with a Community Benefit District.

(Added by Ord. 15-1346, adopted 10-27-15)

In lieu of the requirements of Section 36621(a) of the PBID Law, the City Council may initiate proceedings to form a Community Benefit District upon the submission of a written petition, signed by property owners in the proposed district who will pay more than 30% of the assessments proposed to be levied in connection with such district. The amount of assessment attributable to property owned by the same property owner that is in excess of 20% of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property owners who will pay more than 30% of the total amount of assessments proposed to be levied.

(Added by Ord. 15-1346, adopted 10-27-15)

If so provided in the engineer's report for a Community Benefit District, the assessment levied in connection with such a District may include amounts sufficient to recover the costs incurred in forming the District, including:

• (a) The costs of preparation of the management plan and engineer's report required by State law; and

• (b) The cost of preparing, circulating and submitting the petition to the City Council seeking establishment of the District; and

• (c) The costs of printing, advertising and the giving of published, posted or mailed notices; and

• (d) Compensation of any consultant, engineer or attorney employed to render services in proceedings under this chapter or the PBID Law; and

• (e) Costs incurred by the City for public hearings, notices, ballots and other proceedings required by law for approval of a new or increased assessment.

The engineer's report shall specify the formation costs eligible for recovery through assessments, the schedule for recovery of those costs, and the basis for determining the amount of the additional assessment for recovery of costs, including the maximum amount of the additional assessment, expressed either as a dollar amount, or as a percentage of the underlying assessment.

(Added by Ord. 15-1346, adopted 10-27-15)

The City Council may, in the resolution of intention for a Community Benefit District, provide that if the District is established, funds may be advanced from the City's general fund to permit the operation of the District prior to the City's collection of the assessment. Such advance shall occur only after the establishment of the District, and no advance shall be made if the District is not established. Any such advance may not exceed the total anticipated assessment proceeds for the first year of the assessment. Any such advance must be recovered from assessment proceeds as provided in the Resolution of Intention, along with interest calculated at a rate set forth in the Resolution of Intention. The duration of any such advance shall not exceed five years. (Added by Ord. 15-1346, adopted 10-27-15)

The duration of a new Community Benefit District shall be no greater than specified in the Resolution of Intention for the District, and shall in no event be in excess of 20 years. This section is intended to supplant any shorter limitation set forth in the PBID Law on the duration of assessments levied in connection with an assessment district. (Added by Ord. 15-1346, adopted 10-27-15)

A Community Benefit District may be renewed for a period of not to exceed 20 additional years by following the procedures set forth in the PBID Law. (Added by Ord. 15-1346, adopted 10-27-15)

The City Council may, on its own initiative, at any time, adopt a resolution of intention to disestablish a Community Benefit District and shall adopt such a resolution if, during the annual 30 day period set forth in Section 36670(a)(2) of the PBID Law, the City Council receives a written petition requesting disestablishment signed by property owners who pay more than 30% of the assessments levied in connection with the district. This section provides alternative method for the initiation of proceedings to disestablish a Community Benefit District and shall not be interpreted to preempt the existence of other methods set forth in Section 36670 of the PBID Law. A resolution of intention adopted pursuant to this section shall have the same effect, and trigger the same notice and hearing requirements, as a resolution of intention otherwise adopted pursuant to Section 36670 of the PBID Law. (Added by Ord. 15-1346, adopted 10-27-15)

As provided under Section 36633 of the PBID Law, the validity of an assessment levied under this chapter shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment.

(Added by Ord. 15-1346, adopted 10-27-15)