Petaluma Municipal Code Ch. 13.35 Benefit Districts Related to Assessment Districts

Whenever the city council has formed, or is considering the formation of, a special assessment district for the

construction or acquisition of public improvements, the city council may form a related beneLt district by

proceeding in accordance with this chapter. (Ord. 1826 NCS §1, 1990.)

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. 1826 NCS §1, 1990.)

The purpose of this chapter is to provide for the establishment of a special development assessment on land that

beneLts from the improvements of a special assessment district but that is not assessed. (Ord. 1826 NCS §1,

1990.)

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

otherwise requires:

A. "BeneLt 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, or the construction

thereon of improvements. Development shall not include improvements that the city council Lnds to be of a

minor or insubstantial nature.

C. "Development approval" means an approval by the city precedent to development, or to 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 Lnal subdivision map or parcel map, approval of a development agreement or

issuance of a building or occupancy permit. The development approval that applies to a beneLt district will be

determined by the city council when the beneLt district is formed.

D. "Special development assessment" means an assessment payable to the city as a precondition to a

development approval within a beneLt district. The amount of the assessment will be determined by the city

council when the beneLt district is formed.

(Ord. 1826 NCS §1, 1990.)

Whenever the city council has formed, or is considering forming, a special assessment district, the city council may

adopt its resolution of intention to form a beneLt district related to the existing or proposed assessment district.

The resolution of intention shall:

A. Identify, by name, number or general description of improvements, the proposed or existing assessment

district to which the beneLt district relates.

B. State that certain parcels of land (which need not be identiLed in the resolution) beneLt from the assessment

district improvements but are not assessed or proposed to be assessed.

C. State the intention of the city council to form a beneLt district related to the assessment district and to

establish a special development assessment for the land therein.

D. Direct the city engineer (or other city staO member or consultant) to prepare a beneLt district report.

(Ord. 1826 NCS §1, 1990.)

The beneLt district report shall contain:

A. A description of each parcel of land proposed to be included in the beneLt 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 special development

assessment shall be proportional to the estimated beneLt to each parcel from the assessment district

improvements.

C. The development approval for which payment of the special development assessment is a precondition.

D. The time period within which the special development assessment will be collected shall not exceed Lfteen

years from the establishment of the fee as set by the beneLt district report, unless a longer period is speciLed in

the report.

E. The formula or method by which beneLts within the beneLt district are estimated. The method shall be based

in proportion to estimated beneLt to be received by each of the parcels in the beneLt district from the assessment

district improvements.

F. The terms by 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 eOective rate on bonds of the assessment district 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 assessment 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 assessment 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. 1826 NCS §1, 1990.)

The beneLt district report shall be presented to the city council, which may accept the report, return the report for

modiLcation, or modify the report itself and accept it as modiLed. The council shall call a public hearing on the

report, to be held not sooner that twenty days after its acceptance, at a regular, adjourned or special meeting of

the council. (Ord. 1826 NCS §1, 1990.)

Not later than Lfteen days before the public hearing, the city clerk shall give notice of the hearing by Lrst-class U.S.

Mail, postage prepaid (or if directed by the city council, by certiLed or registered mail) to each owner of land within

the proposed beneLt 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

aOect the validity of proceedings under this chapter. (Ord. 1826 NCS §1, 1990.)

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 beneLts.

C. The amount 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 Lle with the city clerk and is open for public inspection.

G. The name and telephone number of a city staO member or department or city consultant where the owner

may address questions.

(Ord. 1826 NCS §1, 1990.)

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. 1826 NCS §1, 1990.)

After the hearing, the city council may reject the report and abandon proceedings to form the beneLt district, may

approve the report as Lled, or may modify and approve the report. The city council shall not increase the initial

special development assessment in the report on Lle without the written consent of the aOected owner unless it

Lrst holds a hearing on the increase after ten day notice by mail to the aOected owner. If the city council approves

the report, it shall adopt a resolution forming the beneLt district and establishing the special development

assessment in the amounts and under the terms set forth in the report. (Ord. 1826 NCS §1, 1990.)

After establishment of the special development assessment, the city clerk shall record a notice in the oNce of the

County Recorder of the County of Sonoma, in substantially the following form:

NOTICE OF SPECIAL DEVELOPMENT FEE

NOTICE IS HEREBY GIVEN that the City Council of the City of Petaluma, Sonoma 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 the Development Approval]. The Special

Development Assessment aOects the following described land lying within BeneLt District No. _____ of

the City:

[Here describe the land within the BeneLt District by metes and bounds, by deed reference or by

reference to a recorded map]

The Special Development Assessment represents beneLt to the described land from public

improvements as set forth in the report for BeneLt District No. _______, which report is on Lle in the oNce

of the City Clerk of the City of Petaluma and is hereby referred to for the amounts of the Special

Development Assessments and for all other details of the BeneLt District. The Special Development

Assessment shall not be imposed after [here insert termination date].

DATED:_____ _____________

City Clerk

The city clerk shall mail a copy of the notice to each owner of land within the beneLt district. (Ord. 1826 NCS §l,

1990.)

On its own motion or on the application of any owner of land within the beneLt 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 beneLt 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 beneLt district, except that the

amount of the assessment may be escalated over time as described in the approved beneLt district report. (Ord.

1826 NCS §1, 1990.)

No development approval shall be granted by the appropriate city oNcer or department until the city Lnance

oNcer has certiLed that the special development assessment has been paid for the aOected parcel. The Lnance

oNcer shall maintain a separate account for each beneLt district and shall collect and disburse the special

development assessments in accordance with the approved beneLt district report. The Lnance oNcer may include

in the collection an administrative charge, not to exceed one percent of the assessment, to reimburse the city for

its reasonable expenses in the administration of the beneLt district. (Ord. 1826 NCS §1, 1990.)

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 the payment. (Ord. 1826 NCS §1, 1990.)

If less than an entire parcel of land in the beneLt district is proposed for development, the owner of the parcel

may apply to the oNce of the city manager for a division of the special development assessment. The city manager

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 beneLt district was formed. The owner may appeal the decision of

the city manager to the city council and shall be aOorded a hearing before the city council for this purpose. (Ord.

1826 NCS §1, 1990.)