San Jose Municipal Code Part 16 Maintenance Districts

This part shall be cited and referred to as the City of San José maintenance district procedure.

(Prior code § 2600.194; Ord. 19651.)

The procedures provided in the several sections hereof are alternative.

(Prior code § 2600.194.1; Ord. 19651.)

This part is not exclusive, but the resolution of intention in any proceedings under an act or general law may provide that such act or general law is supplemented by any portion or portions hereof.

(Prior code § 2600.194.2; Ord. 19651.)

The words "general law" or the word "act" shall mean an enactment of the Legislature of the state of California. Unless herein otherwise provided, said general law or act shall be as now or hereafter amended or codified.

(Prior code § 2600.194.3; Ord. 19651.)

The word "owner" shall mean all persons owning real property whose names and addresses appear on the last equalized assessment roll or who are known to the city clerk.

(Prior code § 2600.194.4; Ord. 19651.)

The provisions of this part shall be controlling over the provisions of any general law or act in conflict herewith in any proceedings hereunder.

(Prior code § 2600.194.5; Ord. 19651.)

This part is adopted pursuant to the municipal affairs provision of the Charter of this city. In proceedings pursuant to this part, which are a municipal affair, the general laws or acts referred to in this part are deemed a part hereof.

(Prior code § 2600.194.6; Ord. 19651.)

The city council may, in its resolution declaring its intention to order work done or improvements made, or it may, by separate resolution, declare its intention to order that the costs and expenses of maintaining and operating any or all public improvements of a local nature, including the cost of necessary repairs, replacements, fuel, power, electrical current, care, supervision, and any and all other items necessary for the proper maintenance and operation thereof, shall be assessed, either partly or wholly, upon such district as the city council shall determine will be benefited by the maintenance and operation of the public improvements proposed to be maintained; the amounts so assessed to be collected in the same manner and by the same county officers as the taxes for general city purposes are collected.

(Prior code § 2600.195; Ord. 19651.)

When the city council has declared its intention pursuant to Section 14.16.1870, the applicable provisions of chapter 26 of Part 3 of Division 7 of the Streets and Highways Code of the state of California, excepting Sections 5850 to 5853, inclusive, shall apply.

(Prior code § 2600.195.1; Ord. 19651.)

The city council may, in its resolution declaring its intention to order work done or improvements made, or it may, by separate resolution, declare its intention to order that costs and expenses of maintaining and operating any or all public improvements of a local nature, including the cost of necessary repairs, replacements, fuel, power, electrical current, care, supervision, and any and all other items necessary for the proper maintenance and operation thereof, shall be assessed either partly or wholly, upon such district as the city council shall determine will be benefited by the maintenance and operation of the public improvements proposed to be maintained; the amounts so assessed to be collected in the same manner and by the same county officers as the taxes for general city purposes are collected and the city council may in said resolution of intention or said separate resolution reserve the right to elect to award contract or contracts for maintaining and operating such public improvements by either negotiation or bidding or combination of both instead of by bid contract or contracts only in each of the years during which the district continues in existence, such election whether to proceed by bid or negotiation or combination for a particular year to be determined and exercised each year at the time the budget and assessment are adopted for the year in question and not at the time the right to elect is reserved.

(Prior code § 2600.196; Ords. 19651, 20145.)

The purpose of this section is to provide an alternative procedure by which the city council may provide for the payment of the whole or any part of the costs and expenses of maintaining and operating any public improvements which are local in nature, payable from annual benefit assessments apportioned among the several lots or parcels of property within the maintenance district established therefor, the nature and formula or formulae for which are to be determined in the proceedings in which jurisdiction is provided, and to provide an alternative procedure by which the city council may reserve the right to elect to award contract or contracts for maintaining and operating such public improvements by either negotiation or bidding or combination of both rather than by bid contract or contracts only in each of the years during which the district continues in existence, such election whether to proceed by bid or negotiation or combination for a particular year to be determined and exercised each year at the time the budget and assessment are adopted for the year in question and not at the time the right to elect is reserved.

(Prior code § 2600.196.1; Ords. 19651, 20145.)

The resolution of intention to order work done or improvements made or said separate resolution, declared pursuant to Section 14.16.1890, shall contain a statement of the formula or formulae upon and by which annual assessment levies for the payment of said costs and expenses will be apportioned according to benefits among the several lots or parcels of property within the maintenance district to be established therefor, and zones of benefit if required. Said resolution shall instruct the director of public works to annually prepare a budget.

(Prior code § 2600.196.2; Ord. 19651.)

The director of public works shall annually prepare a budget for the costs and expenses of maintaining and operating any or all of said public improvements of a local nature during the ensuing fiscal year which shall include the following:

A. The gross amount required for the costs and expenses of maintaining and operating said public improvements;

B. The balance which will be available in the assessment fund at the end of the current fiscal year for such purpose;

C. The amount, if any, to be contributed by the city to pay any part of said costs and expenses;

D. Amounts to be repaid to city for funds advanced by the city to pay deficits which occurred in prior years; and

E. The net balance which is the amount necessary to pay said costs and expenses.

(Prior code § 2600.196.3; Ord. 19651.)

When the budget has been completed by the director of public works, it shall be incorporated into a report which, in addition to the budget, sets forth the benefit formula or formulae, a description of each lot or parcel of property in the maintenance district, by description sufficient to identify the same, and the amount of assessment to be levied against each parcel. Said report shall be signed by the director of public works and filed with the city clerk. The city clerk shall place the matter on the agenda for a hearing by the city council.

(Prior code § 2600.196.4; Ord. 19651.)

The city clerk shall cause notice of hearing to be published once in a newspaper of general circulation in the city; to be mailed, postage prepaid, to all owners of property subject to the assessment; and to be posted on or near the council chamber door or any bulletin board in or adjacent to the City Hall. Said mailing, publication and posting shall be completed not less than ten days prior to such hearing.

(Prior code § 2600.196.5; Ord. 19651.)

The form of notice to be published and posted shall be substantially as follows:

NOTICE OF HEARING ON _________ MAINTENANCE DISTRICT

NOTICE IS HEREBY GIVEN that the director of public works has caused to be prepared and filed with the city clerk a report, in writing, which provides the basis for the benefit assessment for the following type(s) of maintenance and operation _________ to be borne by all lots or parcels of property within the existing district, or proposed maintenance District No. _________, more particularly described in Exhibit A hereto attached and by reference incorporated herein. Said report sets forth the amounts to be provided in the budget for maintenance and operation, a description of each lot or parcel of property in the maintenance district, by a description sufficient to identify the same, and the amount of assessment to be levied for the fiscal year 19________ through 19________ against each lot or parcel of property. Said report shall be open to public inspection.

Any interested owner objecting to (only items with X are subject to objection at this hearing):

• establishment of the district;

• boundaries of the district;

• fairness of the benefit formula or formulae;

• zones of benefit;

• the amount of the assessment on any lot or parcel of property owned by him/her:

• if applicable, reservation by city of right to elect whether to proceed each year by either negotiated or bid contract or contracts or combination of both instead of bid contract or contracts only;

may file with the city clerk at or before the hour fixed for hearing a protest, in writing, signed by him/her, describing the lot or parcel of property so that it may be identified, and stating the grounds of his/her protest, and may appear at said hearing and be heard in regard thereto.

Said report will be heard by the council at its meeting to be held on the _________ day of _________, 19________, at the hour of _________ o'clock _________.m. in the regular meeting place of said council, council chambers, City Hall, San José, California, at which time said council will examine said report and hear protests.

Notice prior to the final determination of the district shall indicate that the formation of the district, the boundaries of the district, the benefit formula and the amount of assessment, reservation of right to elect whether to proceed for each of the years during which the district continues in existence, either by bid or negotiated contract or contracts or combination thereof for operation and maintenance of the improvements, the cost of which is to be assessed wholly or partly upon the district, such election to be made each year at the time the budget and assessment are adopted and confirmed for the year in question and not at the time the right to elect is reserved, are subject to objection. In years thereafter, only the amount of assessment or changes in the formula or formulae are subject to objection and notice shall so indicate.

(Prior code § 2600.196.5; Ords. 19651, 20145.)

The form of mailed notice shall be substantially as hereinabove set forth, but shall also contain a description of the lot or parcel of property covered by the notice sufficient to identify it, and the amount of the proposed assessment against said lot or parcel of property as set forth in the report and, if applicable, shall contain a statement that the city council intends to reserve the right to elect to award contract or contracts for maintaining and operating the public improvements of a local nature, the costs of operation and maintenance of which are to be assessed either partly or wholly upon the district by either negotiation or bidding or combination thereof rather than by bid contract or contracts only, in each of the years during which the district continues in existence, such election to proceed by bid or negotiated contract or contracts or combination thereof to be determined and exercised each year at the time the budget and assessment are adopted for the year in question and not at the time the right to elect is reserved.

(Prior code § 2600.196.7; Ords. 19651, 20145.)

Affidavits or certificates of publication, posting and mailing shall be made and filed with the city clerk.

(Prior code § 2600.196.8; Ord. 19651.)

The city clerk shall receive written protests and shall endorse on each protest the date and time it is filed with him. No protest received after the time fixed for hearing shall be timely. Any written or oral protest not made at the time and in the manner provided herein shall be deemed to be waived voluntarily by any person who might have made such protest, and each person shall be deemed to have consented to the proposed assessment and any other act, determination, or proceeding on which protest could be made.

(Prior code § 2600.196.9; Ords. 19651, 20145.)

In connection with the hearing provided for the establishment of the maintenance district, owners may protest or object as provided in Section 14.16.1980 with regard to the establishment of the district, the boundaries thereof, the zones of benefit, the fairness of said benefit formula or formulae and the amounts of the assessments, and, if applicable, the reservation by city of right to elect to proceed each year either by negotiated or bid contract or contracts or combination thereof, instead of bid contract or contracts only. After a maintenance district has been established and finally determined, annual hearings will be limited to protest or objections to the amounts of the assessment or any change in the formula or formulae. The council may take and receive oral and documentary evidence pertaining to the matters contained in the report.

(Prior code § 2600.196.10; Ords. 19651, 20145.)

At annual hearing, the city council, of its own volition or in response to any protest or objection made, heard or considered, may make modifications in the district or the formula or formulae or in the amounts of the assessments for the purpose of making the same more fair and equitable; provided, however, that if modification is made which increases any assessment, or assesses additional property, before making a final determination as to such increased assessments or additional assessments, it shall set said matter for hearing at a subsequent meeting of said council, which it shall call or to which it may adjourn; provided, further, that it shall give notice of the time, place and purpose of said meeting, in accord with the notice procedure set forth in Section 14.16.1940.

(Prior code § 2600.196.11; Ords. 19651, 20145.)

If the city council finds that protests against the payment of costs of maintenance and operation are made by the owners of more than one-half of the area of the property in the proposed maintenance district, no further proceedings shall be taken for a period of six months from the date of the decision of the city council on the hearing, unless the protests are overruled by a affirmative vote of four-fifths of the members of the city council. The city council may adjourn the hearing from time to time.

(Prior code § 2600.196.12; Ord. 19651.)

At the initial hearing or at the subsequent hearing as herein provided or at any meeting to which either shall have been adjourned, or at any meeting of the city council subsequent to the full hearing of said matter, the city council may finally adopt the district, a formula or formulae for the apportionment of benefits in said annual assessment district, and determine whether to reserve the right to elect to proceed each year by negotiated or bid contract or contracts or combination thereof, rather than bid contract or contracts only, and if such reservation is made, exercise its election for a bid contract or contracts or combination for the first year, at the time the budget and assessment is approved for the said first year. For each year thereafter such election shall be made at the time the budget and assessment is approved for the year in question.

(Prior code § 2600.196.13; Ords. 19651, 20145.)

The officer designated by law to extend ad valorem property taxes upon the tax roll on which they are collected shall post to said tax roll the total amount of the benefit assessment levied and to be collected for said year on each lot or parcel of property within the maintenance district as set forth in said report. The amount so posted shall appear as a separate item on the tax bill.

(Prior code § 2600.196.14; Ord. 19651.)

The special benefit assessments shall be collected upon the last secured tax roll upon which said ad valorem property taxes are collected. They shall be in addition to all of said ad valorem property taxes, and shall be collected together with, and not separate therefrom, and enforced in the same manner and by the same persons and at the same time and with the same penalties and interest as are said ad valorem property taxes. All laws applicable to the collection and enforcement of said ad valorem property taxes shall be applicable to said special benefit assessment levy, and the assessed lot or parcel of property, if sold for taxes, shall be subject to redemption in the same manner as such real property is redeemed from the sale for ad valorem property taxes, and if not redeemed, shall in like manner pass to the purchaser.

(Prior code § 2600.196.15; Ord. 19651.)

If any property within the maintenance district is erroneously omitted in any such report, said property shall be assessed for the omitted amount in the next year after such omission is discovered.

(Prior code § 2600.196.16; Ord. 19651.)

The provisions of Sections 14.16.1890 through 14.16.2050 shall be applicable to maintenance districts formed before the effective date hereof, regardless of the law pursuant to which said maintenance districts were formed, if all of the owners of all of the lots or parcels of property subject to benefit assessment to pay said costs of maintenance and operation request, in writing, that the alternative method for the levy of the benefit assessment as provided in Sections 14.16.1890 through 14.16.2050 hereof shall apply and/or if the city council wishes, that, as provided in Sections 14.16.1890 through 14.16.2050 hereof, the reservation of rights to elect whether to proceed either by bid or negotiated contract or contracts or combination rather than by bid contract or contracts only shall apply.

(Prior code § 2600.197; Ords. 19651, 20145.)

Alternatively, the city council may, by separate resolution, declare its intention to order that the method for the levy of the benefit assessment as herein provided and/or the intention to reserve rights (if the city council wishes to reserve such rights) to elect whether to proceed either by bid or negotiated contract or contracts or combination rather than by bid only, such determination and election to be made for each year at the time the budget and assessment is approved for the year in question, be made applicable to a maintenance district formed prior to the effective date hereof.

(Prior code § 2600.197.1; Ords. 19651, 20145.)

The resolution of intention to apply the alternative method for the levy of the benefit assessment and/or the intention to reserve rights (if the city council wishes to reserve such rights) to elect whether to proceed either by bid or negotiated contract or contracts or combination rather than by bid only, such determination and election to be made for each year at the time the budget and assessment is approved for the year in question as provided in Sections 14.16.1890 through 14.16.2050 hereof, declared pursuant to Section 14.16.2070, shall contain a statement of the formula or formulae upon and by which annual assessment levies for the payment of said costs and expenses will be apportioned according to benefits among the several lots or parcels of property within said maintenance district and/or a statement of the intention to reserve rights (if the city council wishes to reserve such rights) to elect whether to proceed either by bid or negotiated contract or contracts or combination rather than by bid only, such determination and election to be made for each year at the time the budget and assessment is approved for the year in question. Said resolution shall instruct the director of public works to annually prepare a budget in accord with Section 14.16.1920 and Section 14.16.1930 above.

(Prior code § 2600.197.2; Ords. 19651, 20145.)

The city clerk shall receive the budget and place the matter on the agenda for a hearing by the city council. A notice of hearing shall be published once in a newspaper of general circulation in the city; shall be mailed, postage prepaid, to all owners of property subject to the assessment and shall be posted on or near the council chamber door or any bulletin board in or adjacent to the City Hall. Said mailing, publication and posting shall be completed not less than ten days prior to such hearing.

(Prior code § 2600.197.3; Ord. 19651.)

The form of notice to be published and posted shall be substantially as follows:

NOTICE OF HEARING ON _________ MAINTENANCE DISTRICT

NOTICE IS HEREBY GIVEN that the director of public works has caused to be prepared and filed with the city clerk a report, in writing, which provides the basis for the benefit assessment for the following type(s) of maintenance and operation _________ to be borne by all lots or parcels of property within the existing district, or proposed maintenance District No. _________, more particularly described in Exhibit A hereto attached and by reference incorporated herein. Said report sets forth the amounts to be provided in the budget for maintenance and operation, a description of each lot or parcel of property in the maintenance district, by a description sufficient to identify the same, and the amount of assessment to be levied for the fiscal year 19________ through 19________ against each lot or parcel of property. Said report shall be open to public inspection.

Any interested owner objecting to (only items with X are subject to objection at this hearing):

• establishment of the district;

• boundaries of the district;

• fairness of the benefit formula or formulae;

• zones of benefit;

• the amount of the assessment on any lot or parcel of property owned by him)her:

• if applicable, reservation by city of right to elect whether to proceed each year by either negotiated or bid contract or contracts or combination of both instead of bid contract or contracts only;

may file with the city clerk at or before the hour fixed for hearing a protest, in writing, signed by him/her, describing the lot or parcel of property so that it may be identified, and stating the grounds of his/her protest, and may appear at said hearing and be heard in regard thereto.

Said report will be heard by the council at its meeting to be held on the _________ day of _________, 19________, at the hour of _________ o'clock _________.m. in the regular meeting place of said council, council chambers, City Hall, San José, California, at which time said council will examine said report and hear protests.

If the city council intends to reserve the right to elect whether to award contract or contracts for maintenance and operation of the public improvements of a local nature, the costs of which are to be assessed either partly or wholly upon the district each year by either negotiated or bid contract or contracts or combination of both instead of bid contract only, such determination to and election to be made for each year at the time the budget and assessment is approved for the year in question, the notice shall so indicate.

(Prior code § 2600.197.4; Ords. 19651, 20145.)

The form of mailed notice shall be substantially as hereinabove set forth, but shall also contain a description of the lot or parcel of property covered by the notice sufficient to identify it, and the amount of the proposed assessment against said lot or parcel of property as set forth in the report.

(Prior code § 2600.197.5; Ord. 19651.)

Affidavits or certificates of publication, posting and mailing shall be made and filed with the city clerk.

(Prior code § 2600.197.6; Ord. 19651.)

Owners may protest or object as provided in Section 14.16.1980 with regard to use of the alternative method for the levy of the benefit assessment as provided in Sections 14.16.1890 through 14.16.2050 hereof as well as the fairness of the formula or formulae and the amount of the assessment, as well as the reservation of rights (if proposed to be reserved) to elect whether to proceed each year by either negotiated or bid contract or contracts or combination of both instead of bid contract only, such determination and election to be made for each year at the time the budget and assessment is approved for the year in question. The council may take and receive oral and documentary evidence pertaining to the matters contained in the report.

(Prior code § 2600.197.7; Ords. 19651, 20145.)

If the city council finds that protests thereto are made by the owners of more than one-half of the area of the property in said maintenance district to the use of the alternative method, and/or the reservation of rights (if proposed to be reserved by the city council) to elect whether to proceed each year by either negotiated or bid contract or contracts or combination of both instead of bid contract only, such determination and election to be made for each year at the time the budget and assessment is approved for the year in question, no further proceedings using the alternative method or employing reservation of rights shall be taken for a period of six months from the date of the decision of the city council on the hearing, unless the protests are overruled by an affirmative vote of four-fifths of the members of the city council. The city council may adjourn the hearing from time to time.

(Prior code § 2600.197.8; Ords. 19651, 20145.)

In the event that the city council proposes to reserve rights to elect whether to proceed each year by negotiated or bid contract or contracts or combination of both instead of bid contract only in a maintenance district formed prior to the effective date of this Part 16 to which the levy of a benefit district has previously been made applicable by Sections 14.16.1870 through 14.16.1880 or Sections 14.16.1890 through 14.16.2050 hereof, the resolution of intention, the notice mentioned in sections 14.16.1930 and 14.16.1940 shall refer only to the reservation of rights, and the protest shall be limited to such reservation of rights, and the previously approved alternative method of benefit assessment shall in no way be affected by the proposed reservation of rights or protest thereto.

(Ord. 20145.)

The procedures under Sections 14.16.1890 through 14.16.2050 hereof relating to the alternative method for the levy of benefit assessment and reservation of rights apply equally to Sections 14.16.2060 through 14.16.2150 except as to matters specifically otherwise provided for herein.

(Prior code § 2600.197.9; Ords. 19651, 20145.)