Monterey Municipal Code Div. 1 Generally

All words or phrases not otherwise defined in this Code, for the purposes of this Article, shall be as defined in or are commonly used in connection with the proceedings held pursuant to Division 7 of the Streets and Highways Code of the state.

The purpose of this Article is to establish a procedure for the creation and operation of special service districts. Special service districts will provide maintenance services peculiar to those districts, such as maintenance of greenbelt areas, landscaping on rights of way, maintenance of forest preserves and any similar service of special benefit to the residents of a particular area that are not normally provided, or not provided in the same degree to the remainder of the City. Special service districts may also be used for financing relatively small capital improvements and charging the district for the cost thereof by a special tax rather than creating bonded indebtedness.

A special service district shall be initiated by a petition, signed by the owners representing 10% or more of the assessed value of all land and improvements within the proposed district. Such petition shall be filed with the City Clerk. Such petition shall contain at least the following:

a.A general description of the proposed boundaries.

b.A general statement of the services to be performed or the improvements to be made.

c.The name and address of each property owner signing the petition and the property owned by each signatory.

d.The maximum tax rate to be charged if less than the maximum provided in this Article. If no maximum is stated, it shall be presumed that the petitioners consent to the maximum allowed by this Article.

e.The petition may specifically exclude services to be performed by the district.

Prior to action thereon by the City Council, a petition filed pursuant to this Article shall be referred to the Planning Commission for recommendation. The Planning Commission may recommend such conditions or changes as it deems advisable. If the Planning Commission does not act within forty-five (45) days from and after the matter is referred by the City Council, it shall be deemed to have approved the petition as submitted.

Prior to action thereon by the City Council, a petition filed pursuant to this Article shall be referred to the Public Works Director as defined in Section 38-11, who shall, within sixty (60) days of the date of such referral, make a written recommendation to the City Council. Such recommendation shall include at least the following:

a.A legal description of the district boundaries.

b.A map or plat of the district.

c.A recommendation on the advisability of forming the district, the proposed boundaries and the services to be made or improvements to be constructed.

d.An estimate of the annual cost of the services to be performed, including wages, supplies, materials, equipment and other pertinent costs; or if improvements are to be made, an estimate of the total cost of such improvements. Such estimates may include reserves for contingencies.

e.An estimate of the tax rate necessary to accomplish the service or improvement. (Ord. 3472 § 1, 2012; Ord. 3424 § 1, 2009)

If after receiving and reviewing a petition filed pursuant to this Article, and the recommendations thereto, the City Council determines that the public interest shall be best served by the formation of a district, it shall adopt a resolution of intention, hold a public hearing to receive protests and, provided there are insufficient protests, adopt an ordinance forming the district. The City Council may at any time prior to the adoption of the ordinance forming the district, abandon the proceedings by majority vote. Such abandonment shall not preclude the initiation of new proceedings at any time in the future.

The resolution of intention of the City Council pursuant to the preceding Section shall contain the following:

a.The boundaries of the district. Such boundaries may be described by reference to a map or plat on file in the office of the Public Works Director.

b.The services to be performed or improvement to be made.

c.The maximum tax rate to be charged and the date upon which such tax shall become effective.

d.The time and place of the public hearing thereon, and a statement that all persons wishing to protest shall do so, in writing, and file such protests with the City Clerk prior to the time of hearing.

e.The estimated formation costs to be charged to the district, if any. (Ord. 3472 § 1, 2012; Ord. 3424 § 1, 2009)

a. Public Hearing.One public hearing on a proposed district under this Article shall be held before the City Council. Such hearing may be continued from time to time. All persons wishing to speak for or against the proposed district shall be heard, subject to such reasonable regulations as the City Council or Mayor may impose.

b. Official protests.Only those protests filed, in writing, with the City Clerk prior to the end of the hearing shall be considered in calculating the majority protest. Each protest shall contain a description of the property sufficient to identify it and the signature of the owner. Where a parcel is owned by more than one person, other than a husband and wife, a protest of one owner shall be deemed a protest of his proportionate share only. Where a parcel is owned by a husband and wife, the signature of either spouse shall be presumed to be authorized by the other spouse and shall be deemed a protest of the entire parcel.

c. Majority protest.A majority protest shall be where official protests are filed by persons owning property representing a majority of the assessed value of the total district. Assessed value shall include both land and improvements. A majority protest shall automatically terminate the proceedings without further action of the City Council, and the City Council shall have no jurisdiction to proceed with the formation of the district. A majority protest shall not preclude the reinstitution of proceedings for formation of a district under the same terms and conditions.

d. Notice.The resolution of intention shall be published once in a newspaper of general circulation within the City at least ten (10) days prior to the public hearing. The City Clerk shall mail a copy of the resolution of intention to each owner of record within the proposed boundaries appearing on the last equalized assessment roll. Only one notice need be mailed to a person owning more than one parcel within the proposed district. Notices shall be deposited in the United States mail, properly addressed and postage prepaid, at least ten (10) days prior to the hearing. No notice, either published or mailed, shall be required for continued hearings.

If no majority protest is filed, the City Council may adopt an ordinance establishing a special service district pursuant to this Article. Such ordinance shall contain the following:

a.A description of the boundaries of the district. Such description shall be sufficient if it refers to a map or plat on file in the office of the Public Works Director.

b.A description of the services to be performed or the improvements to be constructed.

c.A description of any services that cannot be performed, if any limitation is placed thereon in the petition.

d.The duration of the district. If no duration is set, the district shall continue until dissolved pursuant to this Article.

e.The maximum tax rate to be imposed and the date on which such tax shall commence.

f.The total cost to be charged for forming the district, if such cost is to become a charge against the district. (Ord. 3472 § 1, 2012; Ord. 3424 § 1, 2009)

On any proceeding to form, amend or dissolve any special service district, the City Council shall have the following powers:

a.To change the boundaries; provided, that no property not included in the resolution of intention shall be included in the district unless the owners thereof file written consent to such inclusion with the City Clerk.

b.To abandon the proceedings by motion at any time prior to the adoption of the ordinance establishing the district.

c.To hear and determine the validity of all protests.

The Finance Director shall, when a special service district is formed, establish a special fund bearing the name of the district. All taxes collected shall be credited to such fund and all costs charged against such fund.

a.For a special service district formed for the purpose of providing services, the maximum tax rate shall be $.10 per $100 of assessed valuation of land and improvements; provided, that the ordinance forming the district may establish a lesser maximum tax rate which shall be controlling over this provision.

b.For a special service district formed for the purpose of constructing capital improvements, the maximum tax rate shall be $.35 per $100 of assessed valuation of land and improvements. Such amount may not be charged for more than five (5) consecutive years.

c.In all events, the City Council may not in any one year assess a tax rate for any parcel of property in excess of any maximum amount established by Charter or general law.

a. Services.Annually, the City Council shall establish the tax rate for a special service district formed for the purpose of providing services in the same manner and at the same time as the general City tax rate. The amount of such tax shall be the amount estimated to be necessary to perform the services for the ensuing year, plus any deficit from previous operations, plus any amount deemed necessary as a reserve for contingencies; provided, that the rate may not exceed the maximum rate as established in this Article.

b. Improvements.Annually, the City Council shall establish a tax rate for a special service district formed for the purpose of constructing capital improvements in the same manner and at the same time as the general City tax rate; provided, that such rate shall not exceed the maximum limits established in this Article. The amount estimated to be collected in any one year shall not exceed, when added to any amount previously collected, the total amount necessary to repay any previous expenditures to the district fund, or the amount necessary to pay the estimated cost of the proposed improvement.

a. Services.The City Council may, from time to time, transfer from the general funds such amounts as are necessary to make up any deficits occurring in the district funds. Such deficit shall be repaid from the taxes collected in the year as provided in the preceding Section.

b. Improvements.The City Council may, at any time after the formation of a district for the construction of improvements, transfer sufficient money to construct the improvement. Such transfer of funds shall be considered a loan at no interest and shall be repaid as provided in subsection (a) above of this Section.

All charges to a special service district fund shall be at actual cost. Whenever work is performed for such district by City personnel, the Public Works Director shall prepare a certified bill of costs. Such bill shall include all actual wages, including employer contributions, cost of supplies and materials and may include a charge for the use of City equipment at a cost not to exceed its fair rental value. (Ord. 3472 § 1, 2012; Ord. 3424 § 1, 2009)

The boundaries, maximum tax rate, work to be performed or other matter stated in an ordinance forming a special service district may be amended by the same procedure as provided in this Article for the formation of districts. All persons owning property within the district boundaries, as proposed to be amended, shall have the right of protest.

a. Service districts.Districts formed for the purpose of rendering services may be dissolved at any time by the procedure provided in this Article for the formation thereof; provided, that the City Council may initiate proceedings on its own motion, in which case no petition shall be required. Upon dissolution, the City Council may, and the ordinance dissolving the district may, provide that the tax rate shall be levied for a sufficient period of time necessary to repay any deficit in the district fund at the time of dissolution.

b. Improvement districts.Districts formed for the purpose of constructing improvements shall be automatically terminated as follows:

When work has been performed and the cost thereof collected. Such dissolution shall be done by resolution of the City Council, without notice.

c. Disposition of funds.When a district is dissolved, any amount remaining in the district fund shall be transferred to the general funds of the City. Any deficit shall be a proper charge against the City and may, in the City Council’s discretion, be paid from general funds.

The City Council may establish an advisory committee within any special service district. Such committee shall be advisory only and shall have no power of management of the district. Such committee shall be established by resolution of the City Council. Such resolution shall establish the number of members, the duties of the committee and other pertinent regulations. Such committee shall be composed of residents or property owners of the district.

The City Council may recognize any duly formed and organized property owners association as the advisory committee.