Martinez Municipal Code Ch. 13.30 Benefit Districts

Whenever the City Council desires to establish a benefit district to pay for the costs of construction or acquisition of public improvements, the City Council may form a district by proceeding in accordance with this chapter.

(Ord. 1165 § 1, 1991)

The provisions of this chapter are alternative to any other provisions of this municipal code or of the laws of the State of California for accomplishing the purpose of this chapter.

(Ord. 1165 § 1, 1991)

The purpose of this chapter is to provide for the establishment of a special development assessment on land that benefits from public improvements which have been constructed by, for or at the behest of the City but which lands have not been assessed for such improvements.

(Ord. 1165 § 1, 1991)

As used in this chapter, the following words and phrases shall have the following meanings unless the context otherwise requires:

A.

"Benefit district"

means one or more parcels of land for which Development Approvals will be granted only after payment of Special Development Assessments.

B.

"Development"

means the subdivision of a parcel of land into two or more parcels, the construction thereon of improvements and any of the acts, events or conditions described in Government Code Section 65927, and as it may be amended from time to time. "Development" shall not include improvements that by rules and regulations promulgated hereunder the City Council finds to be of a minor or insubstantial nature.

C.

"Development approval"

means an approval by the City precedent to Development, or to the sale or occupancy of a parcel on which Development has occurred. A Development Approval may include, without limitation, rezoning of land, approval of a tentative or final subdivision map or parcel map, approval of a development agreement, approval of connection to the City's water distribution facilities, or issuance of a building or occupancy permit. The Development Approval that applies to a Benefit District will be determined by the City Council when the Benefit District is formed.

D.

"Special development assessment" or "assessment"

means an assessment payable to the City as a precondition to a Development Approval within a Benefit District. The amount of the assessment will be determined by the City Council when the Benefit District is formed.

(Ord. 1165 § 1, 1991)

Whenever the City Council desires to form a Benefit District hereunder it must initiate said formation by adopting its resolution of intention to form a Benefit District. The resolution of intention shall:

A. Identify the general boundaries of the proposed Benefit District and provide a general description of the improvements which have or will be constructed.

B. State, with reasons therefor, that certain parcels of land generally described and shown on a preliminary Benefit District diagram benefit from the district improvements but are not assessed at the time of formation of the benefit district.

C. State the intention of the City Council to form a Benefit District and to establish a Special Development Assessment for the land therein.

D. Designate a Benefit District Engineer and direct the Engineer to prepare a Benefit District report.

(Ord. 1165 § 1, 1991)

The Benefit District report shall contain:

A. A description of each parcel of land proposed to be included in the Benefit District. Any parcel may be described by its county assessor's parcel number as listed on the last equalized tax assessment roll or on current records of the County Assessor.

B. The amount of the proposed Special Development Assessment for each parcel. The amount of the Assessment shall include all costs incurred in forming the District and in complying with this chapter. The Special Development Assessment shall be proportional to the estimated benefit to each parcel from the district improvements.

C. The Development Approval for which payment of the Special Development Assessment is preconditioned.

D. The time period within which the Special Development Assessment will be collected shall not exceed fifteen (15) years from the establishment of the fee as set by the Benefit District report, unless a longer period is specified in the report.

E. The formula or method by which benefits within the Benefit District are estimated. The method shall be based in proportion to estimated benefit to be received by each of the parcels in the Benefit District from the district improvements.

F. The terms which the Special Development Assessment will be escalated over time, if escalation of the Assessment is proposed. The Assessment may be escalated in one of the following ways:

1. An annual increment of interest may be added to the Assessment, at an uncompounded rate not exceeding the net effective rate earned by the City on the cash it invests for the same year.

2. The Assessment may be increased annually in proportion to a published index of construction costs applicable to improvements such as those in the district.

G. The manner in which the Special Development Assessment will be disbursed when collected. The Assessment may be disbursed in one or more of the following ways, and may change over time:

1. Disbursement to the general fund or a designated special fund of the City.

2. Disbursement to the district improvement fund, for use or distribution as provided by law.

3. Disbursement to owners within the assessment district in accordance with reimbursement or development agreements.

(Ord. 1165 § 1, 1991)

The Benefit District report shall be presented to the City Council. The City Council may accept the report, return the report for modification, or modify the report itself and accept it as modified. The Council shall call a public hearing on the report, to be held no sooner than twenty (20) days after its acceptance, at a regular, adjourned or special meeting of the Council. Any Council decision to accept the report under this Section shall be preliminary and subject to final decision of the Council taken in accordance with Section 13.30.270.

(Ord. 1165 § 1, 1991)

Not later than fifteen (15) days before the public hearing, the City Clerk shall give notice of the hearing by first-class U.S. Mail, postage prepaid (or if directed by the City Council, by certified or registered mail) to each owner of land within the proposed Benefit District as the owner's name and address appear on the last equalized county tax assessment roll or on current records of the County Assessor. Failure of any owner to receive the notice shall not affect the validity of proceedings under this chapter.

(Ord. 1165 § 1, 1991)

The notice of hearing shall state:

A. That the City Council has received a report proposing a Special Development Assessment for the land of the owner.

B. A general description of the assessment district improvements from which the owner's land benefits.

C. The total amount and the amount applicable to each owner's land of the proposed Special Development Assessment, and the conditions under which the Assessment will be payable.

D. The time and place of the hearing.

E. That any owner or owner's representative may appear at the hearing to protest or comment on the report orally or in writing or both.

F. That the report is on file with the City Clerk and is open for public inspection.

G. The name and telephone number of the Benefit District Engineer to whom the owner may address questions.

(Ord. 1165 § 1, 1991)

At the hearing, the City Council shall consider all protests and comments, oral and written, by any interested person. The hearing may be continued from time to time. After the hearing, the City Council may continue its consideration of the report from time to time.

(Ord. 1165 § 1, 1991)

A. After the hearing, the City Council may reject the report and abandon proceedings to form the Benefit District, may approve the report as filed, or may modify and approve the report. If the City Council approves the report, it shall adopt a resolution forming the Benefit District and establishing the Special Development Assessment in the amounts and under the terms set forth in the report.

B. After adoption of said resolution, and except for escalations approved in the report, the City Council shall not increase the initial Special Development Assessment in the report on file without the written consent of the affected owner unless it first holds a hearing on the increase after 10-day notice by mail to the affected owner.

(Ord. 1165 § 1, 1991)

After establishment of the Special Development Assessment, the City Clerk shall record a notice in the office of the County Recorder of the County of Contra Costa in substantially the following form:

NOTICE OF SPECIAL DEVELOPMENT FEE NOTICE IS HEREBY GIVEN that the City Council of the City of Martinez, Contra Costa County, California, has established a Special Development Assessment to be paid to the City, in addition to all other fees, charges, taxes and assessments, as a condition to __ [here state Director of Development Approval] __. The Special Development Assessment affects the following described land lying within Benefit District No. _____ of the City. [Here describe the land within the Benefit District by metes and bounds, by deed reference or by reference to a recorded map] The Special Development Assessment represents benefit to the described land from public improvements as set forth in the report for Benefit District No. _____, which report is on file in the office of the City Clerk of the City of Martinez and is hereby referred to for the amounts of the Special Development Assessment and for all other details of the Benefit District. The Special Development Assessment shall not be imposed after __ [here insert termination date] __.

The City Clerk shall mail a copy of the notice to each owner of land within the Benefit District.

(Ord. 1165 § 1, 1991)

On its own motion or on the application of any owner of land within the Benefit District, the City Council may eliminate or reduce the special development assessment for any parcel, on the ground that the assessment was incorrectly calculated, that changed conditions have reduced or eliminated the benefit on which the assessment was based, or that the parcel has come under the ownership of a public agency. The City Council may increase the amount of the assessment for a parcel only by proceeding as for the formation of a Benefit District, except that the amount of the assessment may be escalated over time as described in the approved Benefit District report.

(Ord. 1165 § 1, 1991)

No development approval shall be granted by the appropriate City officer or department until the City Finance Officer has certified that the special development assessment has been paid for the affected parcel. The Finance Officer shall maintain a separate account for each Benefit District and shall collect and disburse the special development assessments in accordance with the approved Benefit District report. The Finance Officer may include in the collection an administrative charge, not to exceed 1% of the Assessment, to reimburse the City for its reasonable expenses in the administration of the Benefit District.

(Ord. 1165 § 1, 1991)

The special development assessment may be paid at any time before it is due, in the amount that would apply if the assessment were due on the date of payment.

(Ord. 1165 § 1, 1991)

In the event a land owner within the district's boundaries seeks and obtains development approval before the Benefit District is formed, and at the time of said approval paid to the City an estimated amount to be applied toward the applicable special development assessment, the amount paid shall operate to reduce the affected land's assessment pro tanto. If the amount so paid exceeds the special development assessment applicable to the affected parcel, the difference shall be refunded to the person who paid the estimate within 120 days after the formation of the district, or as otherwise provided by agreement. If the amount paid is less than the special development assessment, then the person who paid the estimate and/or the owner of the land at the time of the formation of the district shall pay the difference to the City within 120 days after the district's formation, or under such terms as may be agreed upon by the persons liable therefor and the City. If no such agreement has been or can be reached, the unpaid amount shall operate as a lien against the affected parcel, which may be foreclosed in accordance with the law.

(Ord. 1165 § 1, 1991)

If less than an entire parcel of land in the Benefit District is proposed for Development, the owner of the parcel may apply to the office of the Public Services Director for a division of the special development assessment. The Public Services Director shall thereupon divide the assessment into parts corresponding to the assessments which would have been levied if the parcel had been divided at the time the Benefit District was formed. The owner may appeal the decision of the Public Services Director to the City Council and shall be afforded a hearing before the City Council for this purpose.

(Ord. 1165 § 1, 1991)