San Jose Municipal Code Part 10 Assessment Readjustment and Bond Refunding

The readjustment of assessments and the refunding of bonds heretofore or hereafter issued under any act now or hereafter adopted for the acquisition or construction of public improvements by special assessment upon the lands benefited, or under this chapter; the acquisition, surrender, purchase and cancellation of any such bonds in that connection; the issuance and sale or trading of refunding bonds to represent such readjusted assessments; the levy of said readjusted assessment or reassessment, for the payment of such refunding bonds, and the enforcement and collection of the lien thereof; and the manner of making contributions of public funds to assist in such refunding, shall be done according to the procedure provided therefor in and by this part of this chapter.

(Prior code § 2600.85.)

Wherever reference is made in the said act to any of the provisions of the Improvement Act of 1911, then the said provisions shall be deemed to be those referred to in Parts 2 and 4 through 7 of this chapter.

(Prior code § 2600.88.)

The proceedings for the acquisition and cancellation of said issued bonds, the issuance and payment of assessment readjustment bonds, the making of said assessments for the costs of acquiring same, the levy and collection of said assessments, and the redemption of lost or otherwise unobtainable bonds to be acquired and cancelled, shall be had and taken according to the procedure set forth in Sections 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19 and 21 of that certain act of the Legislature of the state approved July 6, 1935, designated therein and commonly known as "Assessment Readjustment Act of 1935," as the said act was in effect on January 1, 1936; provided, however, that the notice referred to in Section 4 shall be entitled "Notice of Assessment Readjustment and Bond Refunding," and that said resolution of intention may provide that said bonds shall bear interest at a rate not to exceed seven percent; and excepting as herein otherwise provided.

(Prior code § 2600.87.)

Whenever in the opinion of the city council the public interest, convenience or necessity requires the acquisition and cancellation of any such bonds so issued, said city council is authorized and empowered to order, under the provisions of this part, the acquisition and cancellation of any such bonds so issued. The city council may in its discretion make appropriations from the general fund, or from any funds available for said purpose, for any and all of the purposes set forth herein. Unless otherwise limited by the context of this chapter, the term "bonds" as used herein shall include bonds and their respective coupons.

(Prior code § 2600.86.)

No further action shall be taken upon any proposal or proposals mentioned in Section 6 of said act unless the same and the plan therein provided is signed or approved in writing by the holders of seventy-five percent of the outstanding bonds. Such proposal or proposals shall also provide for payment to be made of all bonds, the holders of which do not sign or approve same, in the manner provided in said act, and may provide for the whole of or the augmenting of such fund by the sale of such refunding bonds or a portion thereof.

(Prior code § 2600.89.)

In addition to the grounds of appeals stated in Section 6 of said act, the property owners and all persons interested may also protest in writing against any or all proposal or proposals theretofore filed therein, or to any matter or thing therein contained, and the city council shall have like power to and with like effect may order the bondholders who have signed said proposal or proposals to remedy, correct, alter or modify same.

(Prior code § 2600.90.)

When no appeal is taken or when the orders and determinations of city council in regard thereto have been complied with, it shall thereupon confirm one of said proposals. Its confirmation of the proposal and of the assessment and diagram as provided in Section 6 of said act is hereby declared to be preliminary in its nature.

(Prior code § 2600.91.)

Before the city council shall have acquired jurisdiction to finally confirm the proceedings, including the diagram, assessment and proposal, or to proceed further in such proceedings and to issue assessment readjustment bonds as provided in Section 7 of said act, there shall first be filed with the city clerk in said matter written consents and approvals of said assessment readjustment and bond refunding proceedings, including the diagram, assessment and proposal as preliminarily confirmed by the city council, and consenting to the completing of same and to the readjustment of assessments and the refunding of bonds in accordance therewith, signed by the owners of over one-half the area of lands in the district or districts being readjusted and refunded, and in the district created therefor. There shall also be filed with said city clerk like written consents and approvals signed by seventy-five percent or more of the owners of the outstanding bonds to be exchanged or paid.

(Prior code § 2600.92.)

Said written consents, when signed by the property owners, shall contain a description of the property or properties within the district owned by them, and when signed by the bondholders shall contain the series and number of the bond owned by them, and among other things shall consent and agree that any contract or contractual relations existing between the property owners of such district and the owners or holders of the outstanding bonds may be amended, modified, changed, terminated, abrogated or otherwise altered, to the extent and in the manner proposed and as preliminarily confirmed by the city council, and shall consent to accept, ratify, approve and confirm the said proposal, the diagram and assessment, and all proceedings had in regard to the readjustment of said assessments and the refunding of said bonds, and the proceedings proposed to be taken in regard thereto; and shall contain a waiver of any and all objections to any and all irregularities, errors or informalities in said proceedings pursuant to said resolution of intention and to each and every step therein, including any objections to the jurisdiction of the city council in said proceeding, or to the constitutionality of this chapter or to any act or provision of any act of the Legislature of the state referred to herein and applicable thereto; and shall authorize the city and its respective officers to complete said proceedings in accordance therewith.

(Prior code § 2600.93.)

From and after said preliminary confirmation, the city council shall have continuing jurisdiction until and after the filing of said written consents and approvals as above provided, to finally confirm said proposal, assessment and diagram, and all proceedings had and taken pursuant to said resolution of intention. At such meeting, the city council shall adopt a resolution of final confirmation which shall find and determine that written consents have been so filed in the office of the city clerk as above provided, and shall order the refunding of said bonds in the manner herein and in said proposal provided. The validity, sufficiency and genuineness of said consents, and each thereof, and the finding and declaration of the legislative body thereon, shall be final and conclusive, unless action to test the validity thereof, or to attack or set aside or annul the same, is commenced as provided in Section 19 of said refunding act.

(Prior code § 2600.94.)

Such refunding bonds shall be issued under Plan A, B or C of Parts 5 through 7 of this chapter together, with the applicable provisions of Part 4 thereof, and the resolution of intention therefor shall designate under which plan said refunding bonds are proposed to be issued. When such bonds are to be issued pursuant to Plan A, and upon the assessment therefor being confirmed and recorded, proceedings shall be had for the issuance, payment and enforcement of said bonds, and the levy and collection of assessments therefor in accordance with the procedure provided in said Plan A, provided, however, that the proposal in said proceeding may provide for the collection of assessments under twenty-five dollars in the manner provided in said Plan A or may provide for the issuance of bonds thereon without regard to the amount thereof, which remain unpaid upon the expiration of thirty days after the recordation of said assessment. When such bonds are to be issued pursuant to Plan B, then such bonds shall be issued, paid and enforced in the manner provided in said Plan B. When such bonds are to be issued pursuant to Plan C, then such bonds shall be issued, paid and enforced in the manner provided in Plan C.

(Prior code § 2600.95.)

When such bonds are to be issued pursuant to Plans A or B of Parts 4 through 7 of this chapter, then, upon the final confirmation of said assessment and diagram, proceedings shall be had in the following order:

A. The city clerk shall attach to the assessment and diagram a certified copy of the resolution of final confirmation of same, which certificate shall state the date of adoption of said resolution;

B. The city clerk shall cause to be, and the superintendent of streets shall, record the said assessment and diagram in the office of said superintendent of streets;

C. The superintendent of streets, during the ensuing thirty days, shall demand of the owners of property within the assessment district and receive payment of their several assessments;

D. The city treasurer shall create a special fund in which shall be deposited all moneys collected on said assessment;

E. Forthwith upon the expiration of said thirty-day period, the superintendent of streets shall make a statement of payments received, and attach the same at the end of the record of the assessment and diagram.

F. Outstanding bonds and coupons of consenting or other bondholders may be acquired and cancelled, from time to time, from the money collected upon the readjustment assessment, in accordance with the plan therefor as approved. When the plan of payment or exchange has been consummated, and provision has been completed for payment of the bonds of nonconsenting bondholders, then all remaining outstanding bonds so acquired, and all unpaid assessments levied to pay the principal or interest thereof, and all penalties, costs and interest thereon, shall be cancelled by the proper officers, and the district or districts created for the payment of same shall be deemed dissolved.

(Prior code §§ 2600.96 - 2600.102.)

A. When such bonds are to be issued pursuant to Plan C of Parts 4 through 7 of this chapter, then, upon the filing of the proposal, proceedings shall be had in the following order:

1. The city engineer, or person designated by the council so to do, shall prepare and file with the city clerk a report showing the amount necessary to consummate the plan of acquiring and cancelling said issued bonds in accordance with said proposal, and the costs and expenses incidental thereto;

2. The city clerk shall fix a time for hearing on issuance of bonds, and give notice thereof;

3. The council shall on said hearing, determine the amount and order the issuance of bonds;

4. All said things shall be done substantially in the manner and with like effect, as provided in the applicable provisions of Section 14.16.1030.

B. Upon the issuance of said bonds, the same shall be sold or exchanged and the plan of acquiring and cancelling outstanding bonds consummated, substantially in the manner herein provided in Section 14.16.1430 of this part.

(Prior code § 2600.103.)

No bondholder shall provide in his proposal for the whole of, or the augmenting of, a fund to be used in the refunding of said bonds, by the sale of such refunding bonds or a portion thereof. The city council shall have the power to sell said refunding bonds or any part thereof as provided in the proposal as confirmed, or as may be subsequently required, and use the proceeds thereof to purchase said bonds to be exchanged or paid, or any part thereof, or to make all payments of principal and interest thereafter maturing on the bonds the holders of which do not sign such proposal or thereafter surrender their bonds as in said act provided.

(Prior code § 2600.104.)

There is hereby declared to exist within the city the emergency described in Section 23 of said act which emergency declarations are incorporated herein by reference thereto. As to all bonds issued prior to the effective date of the ordinance codified in this chapter, this part is deemed adopted in accordance with said emergency provisions As to all bonds issued subsequent to the effective date of Ordinance No. 2527, the provisions of this part shall be deemed to be a part of the contract thereof.

(Prior code § 2600.105.)