San Bernardino Municipal Code Ch. 12.90 Establishment, Financing and Operation of Assessment Districts

(A) The Mayor and City Council find that, in order to provide an orderly procedure for the acquisition, construction, improvement, completion, repair, management, reconstruction, administration, maintenance, operation and disposition of public property, public places and public improvements; for the collecting of assessments to pay the cost thereof; for the making of contributions therefor; and for the making of covenants and agreements with the bondholders, if any, to secure payment of such bonds, if any, it is necessary that the city exercise the powers it has by virtue of being a home rule city and to provide such a procedure. The procedure provided for herein is to be an alternative to any others provided by, under or pursuant to the Charter, ordinances and code provisions of the city or the general laws of the state.

(B) In addition to matters specified elsewhere in this chapter, the city is authorized to utilize assessment financing alternatives, including, without limitation, the following:

(1) Acquire, by condemnation, purchase, gift, lease or any other means, property necessary or convenient for the improvement, including any property necessary or convenient for the opening, widening, straightening or extending of streets or alleys necessary or convenient for the improvement;

(2) Improve any public places or public property within the district by the construction thereon of any improvements necessary or convenient for the purpose of the district;

(3) Administer, maintain, operate or repair the improvement or provide therefor;

(4) Collect fees or charges to pay all or any part of the cost of improving, repairing, maintaining or operating the improvement and of acquiring and improving additional properties necessary to the improvement;

(5) Levy taxes and/or assessments to pay all or any part of the cost of improving, repairing, maintaining or operating the improvement and of acquiring and improving additional properties necessary to the improvement;

(6) Employ engineers, attorneys, financial consultants and other persons necessary or convenient for the doing of any act authorized by this chapter; and

(7) Do all acts and things necessary or convenient for the accomplishment of the purposes of this chapter.

(Ord. MC-150, passed 4-7-1982)

Within the limits of any City Landscape Maintenance Assessment District (hereinafter “Assessment District”) or upon any public improvement, facility or building located therein and owned or controlled by the city, it is unlawful for any person to:

(A) Play or practice golf or use golf clubs in any area not designated for such use;

(B) Operate any motor driven model airplane except in areas designated for such use;

(C) Operate or park any motor vehicle as defined in the California Vehicle Code within any Assessment District except upon areas designated for such use;

(D) Operate, drive or ride upon any bicycle, unicycle, tricycle, horse or any other animal in any Assessment District except in areas designated and posted specifically for such use;

(E) Leave any garbage, trash, cans, bottles, papers or other refuse elsewhere than in the receptacle provided therefor;

(F) Discharge or shoot any firearm, air gun, slingshot or bow and arrow except at places designated and posted specifically for such purposes;

(G) Dig, remove, destroy, injure, mutilate or cut any tree, plant, shrub, bloom or flower, or any portion thereof except a duly authorized city employee in the performance of his or her duty;

(H) Remove any wood, turf, grass, soil, rock, sand, gravel or landscape sprinkler system or any part thereof from any Assessment District except a duly authorized city employee in the performance of his or her duty;

(I) Cut, break, deface or disturb any rock, building, cage, pen, monument, sign, fence, structure, apparatus, equipment or property, or landscape sprinkler system or any part thereof except a duly authorized city employee in the performance of his or her duty;

(J) Light or maintain any fire unless such fire is lighted and maintained only in a stove or fire circle or place provided for such purpose;

(K) Throw rocks or waste matter in unauthorized places;

(L) Camp, lodge or tarry overnight unless there are set aside certain places for this purpose; the provisions of § 12.68.020 prohibiting any person to be or remain in any public park between the hours of 10:00 p.m. of any day to 6:00 a.m. of the next succeeding day is adopted herein by reference and made applicable to Assessment Districts; or

(M) Indulge in riotous, boisterous or indecent conduct; and no noisy, disorderly or offensive person shall be allowed within any Assessment District; the provisions of Chapter 9.32 prohibiting any person from drinking alcoholic beverages in a public place is adopted herein by reference.

(Ord. MC-981, passed 9-18-1986)

The provisions of this chapter are not exclusive. The Mayor and City Council shall have the power to provide other procedures or to follow district procedures now or hereafter provided by general law; provided, however, that whenever the city is acting pursuant to this chapter, the provisions of this chapter shall be controlling to the extent that they are in conflict with any of the provisions of said laws.

(Ord. MC-150, passed 4-7-1982)

Unless the particular provision or the context otherwise requires, the definitions as contained in the Cal. Streets and Highways Code, §§ 5003 through 5024, inclusive, and § 22531 shall apply.

(Ord. MC-150, passed 4-7-1982)

(A) Findings required before ordering. Before ordering any acquisitions or improvements or both, or the creation of any district pursuant hereto, where the costs of said acquisitions or improvements, construction, completion, repair, management, reconstruction, administration, maintenance and/or operation are to be paid in whole or in part by special assessment or other special assessment taxes upon property, the Mayor and City Council shall find that the public convenience and necessity require such acquisitions, improvements, construction, completion, repair, management, reconstruction, administration, maintenance and/or operation in the manner provided in § 19, Article XVI of the California Constitution.

(B) Preliminary determination of necessity and intention to proceed. A resolution of preliminary determination of necessity and intention to proceed (hereinafter referred to as resolution of intention) shall be adopted describing in general terms, the following:

(1) The intention to proceed under this chapter;

(2) The proposed improvements, acquisition, construction, completion, repair, management, reconstruction, administration, maintenance and/or operation involved;

(3) The assessment financing alternative to be followed;

(4) The assessment benefit procedure to be followed;

(5) The estimated costs of such improvements, acquisition, construction, completion, repair, management, reconstruction, administration, maintenance or operation;

(6) The amount, based upon the estimated costs, to be assessed against each particular parcel. This requirement may be satisfied by referencing the engineer’s report;

(7) The maximum number of years such assessment shall be levied;

(8) The maximum amount of bonds, if any, to be issued to finance the proposed improvements or acquisitions;

(9) Whether any ongoing management, administration, maintenance or operation of the improvement will be required;

(10) That such resolution, together with a general description of the proposed improvement and a map showing the exterior boundaries of the proposed improvement district with relation to the territory immediately contiguous thereto and to the proposed improvement, is on file with the City Clerk and is available for inspection by any person or persons interested. This map shall govern for all details as to the extent of the proposed improvement district;

(11) The resolution shall also state the time and place for a hearing by the Mayor and City Council when and where any and all persons interested may appear and show cause, if any, why the Mayor and City Council should not find and determine that the public convenience and necessity require the formation of the proposed improvement district and the proposed acquisitions or improvements without compliance with the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (hereinafter referred to as the “Act”); on the question of the estimated cost; the amount of bonds to be issued, if any; and the intention of the Mayor and City Council to proceed; and

(12) The resolution shall also state that at the time and place specified in the resolution that any person interested will be heard; and, for the purpose of determining a majority protest, any holder of title to taxable real property within the proposed improvement district, acting individually or as part of a group, may file a protest. Any such protest must be filed in writing with the City Clerk, and shall include a description of the property in which the signer thereof is interested sufficient to identify the same. If the signers are not shown on the last equalized assessment roll as the owners of such property, such protest must be accompanied by written evidence that such signers are the owners of such property.

(C) Notice of hearing. Notice of hearing as set forth in the resolution shall be given as follows:

(1) By publishing a copy of the resolution of intention once at least 15 days prior to the time fixed for the hearing in a newspaper of general circulation published in the city;

(2) By posting a notice of the adoption of the resolution of intention on all open streets within the district at not more than 300 foot intervals, but not less than three in all, on each street so posted, at least 15 days before the time fixed for the hearing. No proceeding shall be held invalid for failure to post any street if this section has been substantially complied with. If the boundaries of the proposed assessment district include more than one-half square mile in area, posting requirements shall be satisfied by the City Clerk posting such notice conspicuously on or near the main door of the Council Chambers at least five days prior to the time fixed for the hearing. For such districts, no street posting shall be required;

(3) By mailing a notice of the adoption of said resolution of intention at least 15 days before the time fixed for the hearing to each holder of title to taxable real property within the proposed improvement district as such ownership is shown on the last equalized county assessment roll. The notices posted and mailed shall conform to the Cal. Streets and Highways Code, §§ 5193 and 5195, respectively. The City Clerk shall cause all the above notices to be given;

(4) At least 15 days before the time fixed for the hearing, the engineer shall record an Assessment District Boundary Map with the County Recorder, said map to conform to the requirements of Cal. Streets and Highways Code, § 3110;

(5) The Mayor and City Council may proceed without notice and hearing if, when considering passage of the resolution of intention, it is determined by at least a four-fifths affirmative vote thereof (as determined in division (D) below) that all of the owners of lots or land liable to be assessed or their bona fide agents, have signed and filled a petition requesting the formation of the district, indicate that they have no objections to the proposed work or work and acquisition and agree as to the extent of the district to be assessed and waive notice and hearing; and

(6) If the Mayor and City Council are proceeding pursuant to division (C)(5) above, the map required to be recorded, pursuant to division (C)(4) above, shall be recorded within five days after adoption of the resolution of intention.

(D) Majority protest. The Mayor and City Council shall set forth, in the resolution of intention, the basis by which a determination shall be made whether a majority protest exists; possible bases may include, but shall not be limited to, determination based on land area, assessed valuation of real property, assessed valuation of land only or the number of property owners or any other suitable determinant. At the time set for hearing protests, the Mayor and City Council shall proceed to hear and pass upon all protests so made and its decision shall be final and conclusive. The Mayor and City Council may adjourn the hearing, from time to time. Any such protest may be withdrawn by any owner making the same, either in writing at any time prior to the conclusion of said protest hearing or any adjournment thereof, or orally on the record during a hearing. If the Mayor and City Council find that the written protests are made by persons who represent more than 50% of the property to be assessed for the improvements, as determined on the basis of the determining factor announced in advance, and protests are not withdrawn so as to reduce the same to less than a majority, no further proceedings shall be taken for a period of one year from the date of the decision of the Mayor and City Council on the hearing, unless the protests are overruled by action of the Mayor and City Council. Action to overrule a majority protest shall require not less than a four-fifths affirmative vote of the Council members present and voting; for this purpose, five affirmative votes of six voting, or six affirmative votes of seven voting shall be required.

(Ord. MC-150, passed 4-7-1982; Ord. MC-349, passed 3-7-1984)

Statutory reference:

Special Assessment Investigation, Limitation and Majority Protest Act of 1931, see Cal. Streets and Highways Code, Division 4, §§ 2800 et seq.

(A) Generally. If, in the judgment of the Mayor and City Council, varying benefits will be derived by the different parcels of real property lying within the assessment district, the district may be divided into zones according to benefits.

(B) Number. The district may be divided into as many zones, up to the total number of parcels of real property in the district, as may be deemed necessary, and each zone shall be composed of and include all the real property within the district which will be benefitted in like manner.

(C) Resolution. When the district is to be divided into such zones, the resolution of intention shall so state.

(D) Designation. Each zone shall be designated by a different letter or number and shall be plainly shown on the map of the assessment district filed in the office of the City Clerk and referred to in the resolution of intention, either by separate boundaries, coloring or other convenient and graphic method, so that all persons interested may with accuracy ascertain within which zone any parcel of property is located.

(E) Plat. It shall be sufficient, in all cases where the improvement district is to be divided into such zones according to benefits, if the resolution of intention states that fact and refers to the map for the boundaries and all details concerning the zones.

(Ord. MC-150, passed 4-7-1982)

(A) Orders. Based on the evidence presented during any hearing, the Mayor and City Council may order changes in any of the matters provided in the resolution of intention, including changes in the improvements, the boundaries of the proposed assessment district and any zones therein and the proposed diagram map or the proposed assessment. The Mayor and City Council may, without further notice, order the exclusion of territory from the proposed district, but shall not order the inclusion of additional territory within the district except upon written request by a property owner for the inclusion of his or her property or upon the giving of mailed notice of hearing to property owners upon the question of the inclusion of their property in the district.

(B) Hearing. The hearing regarding majority protest shall be conducted as announced in the resolution of intention, and any protests shall be filed in the manner specified in § 12.90.040(B)(12).

(Ord. MC-150, passed 4-7-1982)

(A) If no protests are made, or if any protests shall have been heard and overruled, the Mayor and City Council may adopt a resolution finding and determining that the public convenience and necessity require the proposed improvements and/or acquisitions, management, administration, maintenance and/or operation. Such resolution shall be referred to as “resolution ordering work.” Such resolution shall determine that the Act shall not apply, shall order the work, shall direct the City Clerk to advertise for bids and shall specify that the contract will be awarded pursuant to the standard procedures used by the city in the award of public works contracts.

(B) The resolution ordering work shall be adopted by the affirmative vote of not less than four-fifths of the members of the City Council voting thereon, as in § 12.90.040, and any findings and determination so adopted shall be final and conclusive.

(C) (1) Whenever the total amount bid by the lowest responsible bidder, plus the estimated amount of incidental costs exceed, by more than 15%, the engineer’s estimate of cost, as stated in the resolution of intention, the Mayor and City Council shall be consulted before further action is taken. The Mayor and City Council may thereupon order any one of the following:

(a) Re-advertise for proposals or bids for the performance of the work as in the first instance, without further proceedings;

(b) Terminate the proceedings; or

(c) 1. Notify the property owners within the district by mail of such increase and seek guidance from affected property owners.

2. Each affected property owner will be asked to express a preference as to:

a. Accepting the bid as submitted;

b. Rejecting the bid and re-advertising; and

c. Terminating the proceedings.

(2) If the proceedings are taken pursuant to division (C)(1)(c)1. above, existence of a majority protest as earlier provided for will be determined; if such majority protest is determined to exist, the Mayor and City Council shall utilize the procedures of § 12.90.040(D) herein, and proceed in accordance therewith.

(Ord. MC-150, passed 4-7-1982)

(A) The Mayor and City Council shall determine which of various financing alternatives shall be utilized.

(B) Alternatives available include the following.

(1) The improvement and/or acquisition may be pre-funded by the city and the assessment levied, collected and enforced in the same manner, at the same time, and with the same penalties and interest, as in the case of taxes levied for the city, to secure repayment to the city of said pre-funding.

(2) Bonds may be issued to finance the improvement and/or acquisition and the assessment may be levied, collected and enforced in the same manner, at the same time and with the same penalties and interest, as in the case of taxes levied for the city, to pay the premium and interest, if any, due on said bonds. If this assessment financing alternative is used, the city may retain bond counsel to provide the details of the issuance and repayment of said bonds.

(3) Bonds may be issued before contracting or obtaining options for the purchase of land, property or rights-of-way to be acquired, if any, or obtaining a judgment in eminent domain for the acquisition thereof.

(4) The financing for maintenance, repair, management, reconstruction, administration or operation of the district, if any, shall be included in the assessment roll for the improvement and/or acquisition, if any, and shall be the total cost for such maintenance, repair, management, reconstruction, administration or operation as estimated by the engineer for each fiscal year in which the assessment is to be levied and collected.

(5) The provisions of the Cal. Streets and Highways Code, §§ 8800 to 8809, inclusive, shall apply to assessments levied hereunder.

(Ord. MC-150, passed 4-7-1982)

(A) Assessment. After the adoption of the resolution ordering work, the engineer shall proceed to estimate as to all lots and parcels of land within the assessment district, as shown by the diagram map, the benefits arising from such work, and to be received by each such lot or parcel of land. He or she shall thereupon prepare an assessment roll for submission to the Mayor and City Council for confirmation, by resolution, which assesses upon and against the lands in the assessment district the total amount of the costs and expenses of such work and/or the cost of management administration, maintenance or operation of the improvement, if any, for the first year or for the term of the assessment. Such roll shall assess the total sum upon the several lots or parcels of land in the assessment district benefitted thereby, in proportion to the estimated benefits to be received by each of the several lots or parcels of land within the district or within each zone included in the district, if any.

(B) Method of determining the assessment benefit. The method of determining the assessment benefit to be received by each of the said several lots or parcels of land within the district and/or zone shall be set forth in the resolution of intention, which may include, but shall not be limited to, land area, assessed valuation of real property, assessed valuation of land only or number of lots or parcels.

(C) Assessment computation. The annual assessment provided for in this section shall be computed on the basis of the formula set forth in the resolution of intention originally adopted or as modified by subsequent change and modification or other proceedings conducted pursuant to this chapter or any other law, and the limitations upon the rate or period thereof provided in the Act (as defined in § 12.90.040(B)(11)) shall not apply. If the assessed value of any parcel of property does not appear on the tax roll, an estimated assessed value of such parcel shall be made by the Director of Development Services in consultation with the County Assessor, and such estimate shall, for purposes of such ad valorem assessment, be considered the assessed value of such parcel.

(D) Subsequent year assessments. Except as otherwise provided by the issuance of bonds, the cost for the improvement and/or acquisition or management, administration, maintenance or operation of the improvement, if any, for any subsequent fiscal year during which an assessment is to be levied and collected within the assessment district pursuant to this chapter, shall be accomplished by preparing an assessment roll for submission to the Mayor and City Council for confirmation by resolution for each fiscal year in which the assessment is to be levied and collected, and shall constitute the levy of an assessment for the fiscal year referred to in the assessment. When a bond issue funds the costs involved, such assessments shall be levied and collected as specified in the bond authorizing resolution or ordinance.

(Ord. MC-150, passed 4-7-1982; Ord. MC-1027, passed 9-9-1998)

(A) Prior to or at the time of the adoption of the resolution of intention, the engineer shall file a report with the City Clerk. When the report is filed with the City Clerk, the City Clerk shall present it to the Mayor and City Council for consideration. The Mayor and City Council may modify it in any respect. The report, as modified, shall stand as the report for the purpose of all subsequent proceedings except that it may be confirmed, modified or corrected as provided in this chapter.

(B) The report shall be made available to the public for inspection and shall include, but shall not be limited to, the following:

(1) A description of the type of improvement and/or acquisition;

(2) An estimate of the cost of the improvement, including incidental costs, and/or the cost of the acquisition, if any, and the annual costs of management, administration, maintenance or operation of the improvement, if any;

(3) A plat map indicating thereon the boundaries of the proposed assessment district; and

(4) A proposed assessment roll showing the estimated individual assessments to be assessed against each parcel within the district for each year an assessment is to be levied and collected within the district.

(Ord. MC-150, passed 4-7-1982)

The following general provisions shall apply to all proceedings taken hereunder.

(A) City initiation. The city may prepare a report, adopt a resolution of intention, form an assessment district or take any other action to provide the improvement and/or acquisition, construction, completion, repair, management, reconstruction, administration, maintenance or operation, without any petition therefor.

(B) Contributions. Notwithstanding any other provision in this chapter, the Mayor and City Council may provide for a contribution or contributions by the city of part of the costs and expenses of the work or may accept and provide for contribution toward the cost and expenses of any work done under this chapter, from any funds made available for the purpose of the district by any local, state or national agency or authority, or from any other person or entity, and it shall not be necessary to set forth or give notice of such contribution in the resolution of intention or in any other proceedings under this chapter. Such notice may be given in the discretion of the Mayor and City Council.

(C) Lapse of time. It shall not be necessary for any specified time to elapse between the performance of acts except as otherwise required by this chapter.

(D) Resolution sufficient. The Mayor and City Council may act, by resolution, where an ordinance is specified by general law.

(E) Assessment upon public property. Whenever proceedings are to be undertaken in accordance with this chapter, the Mayor and City Council may provide, in the resolution of intention, that any real property belonging to any county, city, public agency, school board, educational, penal or reform institution or institution for the feebleminded or the insane shall be assessed in accordance with the provisions of the Cal. Streets and Highways Code, §§ 5300 through 5325, inclusive.

(F) Termination upon determination of no benefit. If the Mayor and City Council find and determine that the area proposed to constitute the assessment district will not be benefitted thereby, the Mayor and City Council shall terminate the proceedings.

(G) Effective date; effect of determinations in resolution; limitation on actions. From and after the date the Mayor and City Council adopt the resolution of intention, the area named therein shall constitute the assessment district within the city bearing the name set forth in the resolution. The determinations made in the resolution forming the assessment district shall be final and conclusive. No action or proceeding to attack, review, set aside or void the resolution, or any of the proceedings, acts or determinations theretofore taken, done or made pursuant to this chapter, shall be maintained by any person unless such action or proceeding is commenced within 30 days after the adoption of such resolution. Thereafter, all such actions or proceedings, and any defense of invalidity of such resolution or of such proceedings, acts or determinations, are forever barred.

(H) Disposition of property. The Mayor and City Council, subject to the provisions of the City Charter, may determine that any parcel of property acquired from the proceeds of the assessment district or any improvements, extensions or replacements thereof or additions thereto are no longer needed for the purpose of the assessment district or such facilities may be otherwise better provided. Subject to the provisions of the City Charter and restrictions in the resolution providing for the issuance of any outstanding bonds, if any, relating to the facilities involved, the property may thereafter be sold, leased or otherwise disposed of, either during or after the term of the assessment or bonds and the proceeds placed in a fund as designated by the Mayor and City Council and used for the benefit of the assessment district.

(I) Assessment roll. Except as otherwise provided by the issuance of bonds, the assessment roll shall state the amount to be assessed upon each lot or parcel of land within the district and shall refer to said lots or parcels of land by their respective County Assessor’s parcel number as shown on the last equalized county assessment roll, and shall refer to the fiscal year to which it applies, and shall, upon its confirmation, be filed in the office of the Director of Development Services. When a bond issue funds the costs involved, such assessment roll procedures as are provided for in the bond-authorizing resolution or ordinance shall prevail.

(J) Assessment diagram map.

(1) Prior to the confirmation of the assessment roll by the Mayor and City Council, the Engineer shall file with the City Clerk and the Director of Development Services an assessment diagram map. Upon the confirmation of the assessment roll, the City Clerk shall record a notice of assessment, as provided in Cal. Streets and Highways Code, § 3114. Whereupon the said assessment shall attach as a lien upon the property assessed, as provided in Cal. Streets and Highways Code, § 3115. A copy of the notice of assessment so recorded shall be published pursuant to the Cal. Gov’t Code, § 6066. Notice of the recording of said assessment shall be given pursuant to the provisions of Cal. Streets and Highways Code, § 10404(a), (b) and (c) only.

(2) The diagram map shall show the following:

(a) The exterior boundaries of the assessment district;

(b) The boundaries of any zones within the district; and

(c) The lines and dimensions of each lot or parcel of land within the district and the relative location of the same to the work to be done. Each lot or parcel shall be identified by a distinctive number or letter.

1. The lines and dimensions of each lot or parcel of land shown on the diagram map shall conform to those shown on the County’s Assessor’s maps for the fiscal year in which the diagram map is prepared. The diagram map may refer to the County Assessor’s maps for a detailed description of the lines and dimensions of any lots or parcels, in which case, those maps shall govern for all details concerning the lines and dimensions of such lots or parcels.

2. Any changes in the lines and dimensions of any lot or parcel of land shown on the diagram map so filed with the City Clerk due to any lot splits or subdivisions which may occur in subsequent years need not be changed on the diagram map; however, such changes shall be reflected in the assessment roll for each subsequent year.

(K) Dissolution of assessment district. Upon completion of the term for the collection of assessments within the district as set forth in the resolution of intention, the confirmation and collection of the final assessment, or upon adoption of a resolution dissolving the district, the district shall automatically dissolve and shall no longer be binding upon the property within the district.

(L) District not exclusive. The formation of an assessment district pursuant to this chapter within any area of the city shall not be exclusive. The Mayor and City Council shall have the authority to create any number of districts within the same area, subject to the provisions of this chapter.

(Ord. MC-150, passed 4-7-1982; Ord. MC-1027, passed 9-9-1998)

The owner of or any person interested in any lot or parcel of land upon which an assessment for construction has been levied under the terms of this chapter may, at any time before commencement of proceedings for sale, pay off the assessment and discharge the land involved from the lien of the assessment. The discharge may be had by paying to the Treasurer the unpaid principal sum of the assessment, with interest thereon (if any) up to the next succeeding July 1. As used in this section, UNPAID PRINCIPAL SUM means those installments of principal that are due to be paid at future dates through the term of the assessment. This provision shall not apply to any maintenance assessment.

(Ord. MC-150, passed 4-7-1982)

Any change of work, boundaries of assessment district, amounts of assessments or proceedings taken pursuant to this chapter after the hearing of protests on the resolution of intention shall be conducted under the provisions of Cal. Streets and Highways Code, §§ 10350 through 10358.

(Ord. MC-150, passed 4-7-1982)

Any person, firm or corporation violating or causing the violation of any provision of § 12.90.015 is guilty of an infraction or a misdemeanor, which, upon conviction thereof, is punishable in accordance with the provisions of § 1.12.010.

(Ord. MC-981, passed 9-18-1996)