Petaluma Municipal Code Ch. 13.34 Public Improvement Benefit Districts

Unless otherwise expressly stated or unless the context so requires, terms used in this chapter are deLned as

follows:

A. "Approval of development" means, in cases where no subdivision is involved, the issuance of any necessary

development permits pursuant to city ordinances, regulations or state statutes or regulations, or, in the case of

subdivisions as deLned in the Subdivision Map Act (California Government Code Section 66410O) and the

Petaluma subdivision ordinance (Petaluma Municipal Code Title 20), approval of a Lnal map by the city council.

B. "Developer" means a sole proprietorship, limited or general partnership, joint venture, corporation or

combination of any of such entities, or any other legal entity engaged in the development of real property.

C. "Development" means the construction or installation of any improvements upon a parcel or parcels of real

property for which a permit or permission is required under the Petaluma zoning ordinance (Ordinance No. 1072

NCS, as amended, or any successor thereto), or the Petaluma building code, or any subdivision as deLned in the

Petaluma subdivision ordinance (Petaluma Municipal Code Title 20) and the Subdivision Map Act (California

Government Code Section 66410O).

D. "District" means a public improvement beneLt district as the same is deLned in this chapter.

E. "Improvement" means a public improvement which is found to be reasonably necessary in order to

accommodate new development or a combination of new and existing developments as projected by the

Petaluma general plan, and which would confer a substantially greater beneLt upon properties within a district

than upon the public as a whole.

F. "Owner" means a person or group of persons, general or limited partnership, joint venture, corporation, or a

combination of any of such entities or any other legal entity which possesses any estate or interest in real

property.

(Ord. 1977 NCS §1, 1995; Ord. 1303 NCS §1, 1978.)

The city may, from time to time as it is found necessary, establish public improvement beneLt districts in and

about an area served or to be served by necessary public improvements. Public improvement beneLt districts may

be established by resolution of the city council in areas where the city engineer Lnds that it is necessary to install a

major public improvement or improvements to service development within the district. (Ord. 1303 NCS §1, 1978.)

A. Prior to the establishment of a district, the council shall adopt a resolution of intention to establish such a

district, stating the proposed boundaries and the nature of the public improvements proposed to be Lnanced or

constructed from the proceeds of charges, or in the case of improvements previously constructed at city’s expense

or Petaluma community development commission’s expense the amount to be reimbursed from the proceeds of

charges which shall be imposed, and setting the matter for public hearing, which shall be not less than twenty

days after the adoption of said resolution of intention. The city clerk shall thereafter give notice of such hearing,

and shall notify each property owner within the boundaries of the proposed district of the public hearing not less

than ten days prior thereto by placing a copy of the notice of hearing and the resolution of intention in a sealed

envelope, postage fully prepaid, and depositing the same in the United States mail, addressed to the owners at

their last known address of record. Said notice shall be deemed given when mailed.

B. On the date set for public hearing, the council shall consider the establishment of the district, the total

estimated installation cost of the improvement constructed or proposed to be constructed, as set out in Section

13.34.040, and shall hear the comments of those property owners located within the proposed district who wish

to be heard. Thereafter, the council may adopt a resolution establishing such district, setting the boundaries, establishing the apportionment formula and total estimated cost of the improvements constructed or to be

constructed from the proceeds of charges in the district, including the cost of formation of the district, if it can

make the following Lndings.

1. The proposed district and the improvements funded thereby are necessary for the promotion of the

public health, safety and welfare, and will either beneLt the properties within the district to a substantially

greater degree than the property of the public generally or will be necessary as a mitigation measure to

lessen substantial environmental impacts caused by projected development in the district;

2. That the adopted apportionment formula will fairly apportion the beneLt within the district;

3. That imposition of the charges will not render any parcel substantially valueless for any private use.

C. If, at the public hearing, it is determined that the boundaries of the district should include properties outside

the boundaries speciLed in the original resolution of intention, the public hearing shall be continued for a period

of not less than twenty days and mailed notice as set out in subsection (A) of this section shall be given to the

owners of properties which are proposed to be so included, and at the continued public hearing, those property

owners shall be given the opportunity to be heard. The council may thereafter proceed to adopt a resolution

establishing the district as set out in subsection B of this section.

(Ord. 1977 NCS §§2-4, 1995; Ord. 1303 NCS §1, 1978.)

After the establishment of a district, applicants desiring to develop real property in the district shall, in addition to

any other fees imposed by city ordinance, regulation or state law, pay a charge based on acreage, and, where

appropriate, on frontage which shall be established as to amount by establishing the total estimated installation

cost of the public improvements to be constructed, including the costs of formation of the district, at the

estimated time of construction, and by apportioning the estimated total cost according to the beneLts received,

based upon total acreage and, where appropriate, frontage beneLt. The apportionment formula and amount of

charges shall be established by the city council in the resolution creating the district after considering the

recommendations of the city engineer and the director of planning as to fair apportionment of the beneLts

received by each area within the district, and of the public hearing on the matter. The determination of the beneLt

formula, as Lnally established by the city council, shall be Lnal. Alternately, in the event of improvement

constructed at city or Petaluma community development commission’s expense, the charge shall be the actual

cost of improvements plus a Lfteen percent engineering fee. (Ord. 1977 NCS §5, 1995; Ord. 1303 NCS §l, 1978.)

From and after the eOective date of a resolution establishing a district as set out in this chapter, any applicant

desiring to subdivide or otherwise develop real property within the district shall pay a charge based upon the adopted apportionment formula and the total cost set out in this chapter to the city. Said charge shall be paid

prior to the approval of development, and approval of the development shall not be given until the charges have

been received. (Ord. 1303 NCS §1, 1978.)

Upon the establishment of a public improvement beneLt district as set out in this chapter, the city Lnance director

shall establish a separate fund or in the case of city or Petaluma community development commission’s

constructed improvements, reimburse the existing fund from which resources were drawn into which all such

charges received are paid. Said funds shall be for the exclusive payment of costs and charges associated with the

construction of the improvements identiLed as the subject of the district. If any funds remain at such time as the

improvements for which the district was formed are completed and said funds are not necessary for future

maintenance of the facility, such funds, without interest, shall be returned to the then owners of the private

property within the district by applying the apportionment formula for the district to the real property of each

owner. In the future event that the improvements are not constructed within a period of ten years from the date

of the establishment of the district, funds without interest shall be returned to the then owners of the properties

which were required to contribute to said funds pursuant to the apportionment formula adopted for the district,

unless the council by resolution extends the terms of the beneLt district as provided in Section 13.34.050. (Ord.

1977 NCS §5, 1995; Ord. 1303 NCS §1, 1978.)

If, after a period of ten years, a work of improvement for which the beneLt district was formed is not commenced,

the city council may by resolution extend the beneLt district for a period not to exceed Lve years, if it Lnds that

less than seventy-Lve percent of the undeveloped land area in the district at the time it was formed has not been

developed and charged the beneLt fee applicable to the district. The city council may continue to extend the

beneLt district in each instance for a period of Lve years, if it makes such Lnding upon substantial evidence at the

time of the extension. In no event shall the amount of charges applicable to real property already approved for

development within the district be increased as a result of an extension of the beneLt district. (Ord. 1303 NCS §1,

1978.)

A. After the establishment of a district, the council may, after complying with the notice and hearing

requirements of Section 13.34.030, increase the amount of charges applicable to properties within the district,

based upon the original apportionment formula, if they Lnd that due to factors of inMation the actual or estimated

total installation cost of the public facility has increased by more than twenty percent.

B. Where the amount of charges within the district is increased pursuant to subsection A of this section, no such

increase shall be applied to any parcel or parcels or portions thereof where such charges have been paid by or on

behalf of the owner or owners thereof at or before the time of adoption of the notice of intention by the city

council. Any parcels developed after the adoption of the notice of intention shall be charged at the increased rate

subsequently adopted. Nothing shall prevent an owner of real property within the district from paying charges

prior to development in order to prevent future increases in charges.

(Ord. 1303 NCS §1, 1978.)