Irvine Municipal Code Div. 9 Public Improvement Areas of Benefit

The City Council has heretofore established, by its Resolution No. 431, a policy concerning the installation of capital improvements which requires that certain capital improvements generally be constructed or financed by a land developer as a condition to the approval of his or her development. This division is intended to establish procedures for the implementation of that policy and, specifically, to provide a method whereby the burdens of installing such capital improvements which will benefit lands in addition to those being developed will be required to be borne by all of the lands so benefited.

(Code 1976, § VI.N-101; Ord. No. 167, § 1, 5-25-76)

In order that the burdens of capital improvements may be borne by all of the lands benefitted thereby, areas of benefit may be formed and fees chargeable to such lands may be imposed in accordance with procedures set forth herein.

(Code 1976, § VI.N-102; Ord. No. 167, § 2, 5-25-76)

Unless the context shall require otherwise, the definitions set forth in this section shall apply to the following terms as used in this division:

Capital improvements shall include any and all improvements directly or indirectly allocable to development in accordance with the criteria established in the aforesaid Resolution No. 431.

Construction includes design, acquisition of property, administration of construction contracts, and actual construction.

Development means a division of land, grading for which a permit is required, 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 activities.

(Code 1976, § VI.N-103; Ord. No. 167, § 3, 5-25-76)

Upon the receipt of an application by a landowner or developer, or on its own motion, the City Council may initiate proceedings for the formation of an area for benefit, the adjustment of the boundaries of an area for benefit, or annexations to an area of benefit by adopting a resolution stating its intentions to do so.

(Code 1976, § VI.N-104; Ord. No. 167, § 4, 5-25-76; Ord. No. 82-17, § 1, 12-14-82)

A. A resolution of intention adopted by the City Council to initiate proceedings for the formation of an area of benefit shall include the following:

1. A definitive description of the specific improvements, the cost of which is proposed to be charged to the properties located within the area of benefit;

2. The estimated total cost for the construction of said improvements;

3. The proposed boundaries of the area of benefit;

4. Preliminary information concerning the method pursuant to which the costs are proposed to be apportioned among the parcels within the area of benefit and a preliminary estimate of the amount which will be charged to each such parcel;

5. The amount of the contribution, if any, which the City or other public entity will make toward the total cost; and

6. The time and place at which the City Council will hold a hearing to consider the formation of the area of benefit.

B. A resolution of intention adopted by the City Council to adjust the boundaries of an existing area of benefit shall include the following:

1. A definitive description of the specific improvements, the cost of which is proposed to be charged to the properties located within the area of benefit as adjusted;

2. The estimated total cost for the construction of said improvements;

3. The proposed boundaries of the area of benefit as adjusted;

4. Preliminary information concerning the method pursuant to which the costs are proposed to be apportioned among the parcels within the area of benefit as adjusted and a preliminary estimate of the amount which will be charged to each such parcel;

5. The amount of the contribution, if any, which the City or other public entity will make toward the total cost;

6. The time and place at which the City Council will hold a hearing to consider the adjustment of the boundaries of the area of benefit.

C. A resolution of intention adopted by the City Council to initiate proceedings for the annexation of territory to an area of benefit shall include the following:

1. Definitive description of the specific improvements, the cost of which is proposed to be charged to the properties to be annexed to the area of benefit or to properties within the existing area of benefit to which annexation is proposed;

2. The estimated total cost for the construction of said improvements;

3. The proposed boundaries of the area to be annexed to the area of benefit;

4. Preliminary information concerning the method pursuant to which the costs are proposed to be apportioned among the parcels within the area of benefit and the territory to be annexed to the area of benefit and a preliminary estimate of the amount which will be charged to each such parcel;

5. The amount of the contribution, if any, which the City or other public entity will make toward the total cost;

6. The time and place at which the City Council will hold a hearing to consider the annexation of the territory to the area of benefit.

(Code 1976, § VI.N-105; Ord. No. 167, § 5, 5-25-76; Ord. No. 82-17, § 2, 12-14-82)

Notice of the hearing shall be provided by 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 located within the proposed area of benefit, the area affected by the proposed boundary adjustment, or the area proposed to be annexed to the area of benefit at the addresses shown on the last equalized assessment roll, or as otherwise known to the City Clerk.

(Code 1976, § VI.N-106; Ord. No. 167, § 6, 5-25-76; Ord. No. 82-17, § 3, 12-14-82)

At any time not later than the hour set for the public hearing, any owner of property within the proposed area of benefit, the area affected by the proposed boundary change, or the area proposed to be annexed to an area of benefit may file a written protest against the capital project proposed to be undertaken, or against the extent of the area to be benefited by it, or against the charges proposed to be levied within the proposed area of benefit, or against any or all of the foregoing. Such protest must be in writing and must contain a description of the property in which the signer thereof is interested sufficient to identify the same, and if the signer is not shown on the last equalized assessment roll as the owner of such property, must contain or be accompanied by written evidence that such 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.

(Code 1976, § VI.N-107; Ord. No. 167, § 7, 5-25-76; Ord. No. 82-17, § 4, 12-14-82)

At the time and place established in the resolution of intention, the City Council shall hear and consider protests filed against the proposed capital improvement, the extent of the area of benefit, the amount of the charges proposed to be levied within said area of benefit, or any or all of the foregoing. The hearing may be continued from time-to-time. If within the time when protests 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 said 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 shall find that the public health, safety, or general welfare require that immediate provision be made for the installation of the improvement(s) described in the notice. 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 improvement or acquisition under the provisions of this division. If any majority protest which is not withdrawn or overruled is directed against only a portion of the improvement, then all further proceedings under the provisions of this division to construct that portion of the improvement 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 improvement or acquisitions so protested against. Nothing in this section shall prohibit the City Council, within such one-year period, from commencing and carrying on new proceedings for the construction of a portion of the improvement 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 improvement or acquisition.

(Code 1976, § VI.N-108; Ord. No. 167, § 8, 5-25-76)

A. At the conclusion of the hearing, and provided there is no protest by owners of over one-half of the area of the land included in the area of benefit, the City Council may adopt a resolution ordering the formation of the area of benefit, the adjustment of the boundary of the area of benefit, or the annexation of territory to an area of benefit. Said resolutions shall include the following:

1. A statement of the improvements to be constructed;

2. The total actual or estimated cost of said improvements;

3. A description of the area of benefit;

4. The portion of the total costs of the improvements which will be borne by each of the properties located within the area of benefit established or revised by boundary changes or annexation;

5. The amount of the contribution, if any, which the City will make towards the construction of the improvement.

B. Notice of the adoption of the resolution of formation, adjustment or annexations shall be provided in the same manner as set forth hereinabove for the resolution of intention.

(Code 1976, § VI.N-109; Ord. No. 167, § 9, 5-25-76; Ord. No. 82-17, § 5, 12-14-82)

After the adoption by the City Council of a resolution forming an area of benefit, adjusting the boundary of an area of benefit, or annexing territory to an area of benefit, no development shall be permitted on any land included within the area of benefit unless and until the proportional share of the fees established by the resolution of formation, adjustment or annexation, for such lands have been paid or provision has been made for such payment to the satisfaction of the City Manager. Money received by the City as payment of such fees shall be deposited in a special fund established for the area of benefit and shall thereafter be expended solely for the construction or reimbursement for construction of the improvement or to reimburse the City for the costs of constructing the improvement.

(Code 1976, § VI.N-110; Ord. No. 167, § 10, 5-25-76; Ord. No. 82-17, § 6, 12-14-82)

The City Council may, annually after the adoption of the resolution of formation, cause an adjustment to be made in the fees established by said resolution. Such adjustments may reflect increases or decreases in the estimated cost of the proposed capital improvements, as reflected in the consumer price index, or in such other indices as the City Council may deem appropriate for this purpose. Such 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. However, in no case shall a modification, the effect of which would be to increase the fee payable, be made applicable to lands for which the fees established by the resolution of formation have been paid.

(Code 1976, § VI.N-111; Ord. No. 167, § 11, 5-25-76)

The provisions of Section 6-9-111 hereof to the contrary notwithstanding, upon application by a developer, the City Council may accept consideration in lieu of fees required pursuant to this division, provided:

A. The City Council, upon recommendation of the Director of Public Works, finds that the substitute consideration proposed has a value equal to or greater than such fees; and

B. The substitute consideration is in a form acceptable to the City Council.

(Code 1976, § VI.N-112; Ord. No. 167, § 12, 5-25-76)

In the event the City Council agrees to accept consideration in lieu of fees, the value of which is greater than the amount of the otherwise applicable fees, the Council shall enter into an agreement with a developer pursuant to which said developer may be reimbursed for the amount by which the value of the consideration exceeds the amount of the otherwise applicable fees. The agreement shall set forth the amount to be reimbursed, and the time and manner in which payment thereof will be made; however, such payments shall be made only from revenues paid to the special fund created for the area of benefit.

(Code 1976, § VI.N-113; Ord. No. 167, § 13, 5-25-76)

Upon the receipt of an application by a landowner or developer, 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 to do so. 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 capital improvement for which the area was originally formed will not be required in the reasonably foreseeable future, or that the installation of said capital improvement may be financed more effectively by another method, the City Council may adopt a resolution declaring the area of benefit terminated. Upon the termination of the area of benefit, the money remaining in the special fund established in connection therewith shall be returned to those persons who had made payment thereof in proportion to the amount of their payments.

(Code 1976, § VI.N-114; Ord. No. 167, § 14, 5-25-76)

This division 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 hereof shall not be construed to limit the power of the City Council to utilize any other method, authorized by law, for accomplishing this purpose.

(Code 1976, § VI.N-115; Ord. No. 167, § 15, 5-25-76)