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HomeMy WebLinkAboutNS-2526 - Adopting Article XIX of Chapter 13 of Santa Ana Municipal Code Related to Maintenance Assessment District ProceduresORDINANCE NO. NS-2526 AN ORDINANCE OF THE COUNCIL OF THE CITY OF SANTA ANA ADOPTING ARTICLE XIX OF CHAPTER 13 OF THE SANTA ANA MUNICIPAL CODE. RELATED TO MAINTENANCE ASSESSMENT DISTRICT PROCEDURES THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: Losses of funds from the State of California have severely impacted the City's ability to maintain existing levels of services in many areas; Alternate revenues are necessary to maintain those levels of services while continuing to fund necessary services such as public safety; Adoption of a local benefit assessment procedures ordinance will permit the city to obtain property owner approval of new assessments for maintenance of various public services. Section 2. Article XIX is added to Chapter 13 of the Santa Ana Municipal Code to read in full as follows: CHAPTER 13, ARTICLE XlX-- MAINTENANCE ASSESSMENT DISTRICT PROCEDURES Section-13-171 Authority for enactment. This article is enacted by the city council pursuant to its powers as a charter city under Article XI of the California Constitution. Section 13-172 Purpose. The purpose of this article is to provide an alternative procedure in compliance with the provisions of California Constitution Articles ×IIID and implementing statutes, by which the city council may provide for payment of all or any part of the costs and expenses of maintaining and operating any permanent public improvements which are local in nature. Ordinance No. NS-2526 Page 1 of '12 Section 13-173 Alternative procedure. This article is alternative to other provisions of this code and to the general laws of the state. When the city council elects to proceed under this article, no other provisions of this code or of the general laws shall apply to the proceedings except as specifically otherwise stated in this article, or as may be required bythe California Constitution. The provisions of Division 4.5 (commencing with Section 3100) of the California Streets and Highways Code shall apply to proceedings conducted pursuant to this article. Section 13-174 Liberal construction. This article shall be construed liberally to effect its purpose. With respect to any proceeding conducted under this article, no error, irregularity or informality, and no neglect or omission of any city officer or employee, whlch does not directly affect the jurisdiction of the city council to order the work, shall void or invalidate such proceeding or any assessment or special tax for the cost of the work done there under. Section 13-175 Definitions. Unless the context otherwise requires, the following words and phrases as used in this article shall have the meanings set forth below: "Agency" means any local government as that term is defined in subdivision (b) of Section 1 of Article XIIIC of the California Constitution. "Assessment district" means the territory containing the lands to be specially assessed. "Clerk" means the Clerk of the Council for the City of Santa Ana. "City" means the City of Santa Ana. "County" means the county of Orange. "Director" means the Executive Director of Public Works agency, or designee. "District" means an assessment district. "Engineer" means the Director or designee. "Fiscal year" means the fiscal year of the city of Santa Ana. "Improvement" or "public improvement" means any public improvement of a permanent and local nature, including without limitation those described in this article and any improvement described in the Improvement Act of 1911, the Improvement Act of 1913 of the state of California, the Landscaping and Lighting Act of 1972, or the Benefit Assessment Act of 1982. Ordinance No. NS-2526 Page 2 of 12 "Maintenance services" means maintenance and operation expenses as defined in subdivision (f) of Section 2 of Article XIIID of the California Constitution. "Proceedings" shall have the meaning specified at Streets and Highways Code Section 3100 (k). Other terms used in this article shall have the meanings specified in Article XIIID of the California Constitution, and in Government Code Sections 53750 through 53753.5 and Streets and Highways Code Section 3100, as those sections may be amended or renumbered. Section 13-176 Description by reference to plan or ~ap filed and open to public inspection. Any resolution, notice, report, diagram, or assessment, or other document which is required to contain a description of the improvements to be maintained, the boundaries of the assessment district or any zones therein, or the lines and dimensions of any parcel of land, may refer to any plan or map which is on file with the clerk, the county auditor, or the county assessor, and which is open to pub_lic inspection. The plan or map referred to shall govern for all details of the description. Section 13-177 Applicable procedures. In forming an assessment district pursuant to this article, the city council, clerk and engineer shall employ the report preparation, notice, protest, hearing and balloting procedures specified in Article ×IIID of the California Constitution and in Government Code Sections 53750 through 53753.5 and Division 4..5 (commencing with Section 3100) of the Streets and Highways Code, as those sections may be amended or renumbered. Section 13-178 Boundary map--Resolution of intention. A. Prior to adoption by the city council of the resolution specified in subsection B of this section, the engineer shall file with the clerk the map required by Streets and Highways Code Section 3110. B. Whenever the city council determines to form an assessment district pursuant to this article, it shall adopt a resolution which: States the intention of the city council to form an assessment district pursuant to this article, and assigns a distinctive name or number to the proposed district; Generally describes the public improvements to be maintained, and the maintenance services to be provided by the' district; Ordinance No. NS-2526 Page 3 of 12 Describes the boundaries of the proposed district, which boundaries need not be contiguous; only land which is specially benefited may be included within the district; Directs the engineer to prepare, or cause to be prepared, and file an engineer's report as specified in this article.. Section 13-179 Inclusion within district of publicly owned parcels. Pursuant to California Constitution, Article XIIID, Section 4, subsection (a), parcels within a proposed district which are owned or used by the city, any agency, the state of California or the United States shall not be exempt from assessment unless, based upon clear and convincing evidence, the city council finds and determines that those publicly owned parcels in fact receive no special benefit. Section 13-180 Engineer's report. At the direction of the city council, the engineer shall prepare a report for the proposed maintenance district. The report shall comply in all respects with the provisions of California Constitution Article XIIID, sections 4(a), (b) and (c). In addition thereto, the report shall include the following: A. A description of the public improvements to be maintained. The description may be by reference to plans included in the report or filed with the report although separately bound; B. An estimate of the total cost of maintaining the improvements during the present or forthcoming fiscal year; C. A map or diagram prepared in accordance withthe provisions of Streets and Highways Code Section 3110, showing: 1. The exterior boundaries of the proposed assessment district, and the boundaries of any zones within the district, 2. The lines and dimensions of each parcel of land within the district. Each subdivision, including each separate condominium interest as defined in Section 783 of the California Civil Code, shall be given a separate number upon the diagram. The diagram may refer to the county assessor's maps for a detailed description of the lines and dimensions of any pamels, in which case those maps shall govern for all details concerning the lines and dimensions of the parcels. Each parcel shown on the diagram shall be labeled with a distinctive assessment number, which may be the county assessor's parcel number. The lines and dimensions of each parcel shall conform to the county assessor's parcel maps; or the diagram may consist of a copy of the county assessor's parcel maps. The diagram may consist of one or more sheets, and may be included in the report or filed with the report although separately bound; Ordinance No. NS-2526 Page 4 of 12 D. An assessment roll containing the assessment number of each parcel to be specially assessed, and the amount of each proposed assessment for the present or forthcoming fiscal year. If the county assessor's parcel number is not used as the assessment number, the assessment roll shall also contain the county assessor's parcel number, but only where in the judgment of the engineer the proposed district does not contain such a large number of parcels as to render this requirement infeasible or impractical; E. A detailed explanation, in compliance with the requirements of Article XIIID, Sections 4(a), (b) and (c) of the California Constitution, of the method or formula by which the engineer proposes to divide the cost of mainte~qance among the parcels to be specially assessed. For this purpose, the district may be divided into subareas or zones of benefit, the boundaries of which shall be shown on the diagram; F. A list of the names and addresses of all of the record owners of the parcels shown on the diagram and the assessment roll, as they appear on the last equalized secured property tax roll, or in the case of any agency, the state of California, or the United States, the representative of that public entity at the address of that entity known to the engineer. This information may be combined with that required under subsection D of this section. Section 13-181 Use of range of rates or amounts--Adjustment for inflation. In accordance with the provisions of Government Code Section 53739, as that section may be amended or renumbered, the engineer's report may specify that the assessment is to be based upon a range of rates or amounts, and may further include an adjustment pursuant to a clearly identified formula set forth in the report. Section 13-182 Filing and acceptance of engineer's report. Upon completion, the engineer's report shall be filed with the clerk for presentation to the city council. At the hearing for formation of the district, the city council may accept the report as submitted, modify the report and accept it as modified, or reject the report. Section 13-183 Notice of hearing. Notice of hearing on the engineer's report and the proposed assessment shall be provided by mail to each record owner in accordance with the provisions of California Constitution Article XlliD, Sections 4(c), (d) and (e) and Government Code Section 53753, as that section may be amended or renumbered. The hearing shall be held not sooner than forty-five (45) days from the date that the notice was mailed in accordance with the said provisions. The notice of hearing shall: A. Include a statement of the total amount of the proposed assessment to be charged to the district, the amount chargeable to the record owner's parcel, the duration Ordinance No. NS-2526 Page 5 of 12 of the payments, the reason for the assessment and the basis upon which the amount of the proposed assessment was calculated; B. Specify the date, time and location of the public hearing on the proposed assessment; C. Include, in a conspicuous place, a summary of the-procedures for the completion, return and tabulation of the assessment ballots required pursuant to subsection E of this section; D. Include a statement that the assessment shall not be imposed if the ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment, with ballots weighted according to the proportional financial obligation of the affected property; E. Include an assessment ballot that conforms to (he term of Government Code Section 53753(c) as that section may be amended or renumbered. Where appropriate, the ballot information may include a statement of the total number of ballots possible within the proposed district for purposes of weighting and counting of the ballots in accordance with the provisions of subsection (e) of Section 4 of Article XIIID of the California Constitution; F. Indicate the date of passage of the resolution of intention, and state that the city council intends to levy an annual special assessment on each parcel of land within the proposed district to pay the cost of maintenance of the public improvements; G. Generally describe the public improvements to be maintained, and the maintenance services to be provided by the district; H. Describe the location and boundaries of the district; I. State that the engineer's report is on file with the clerk and is open to public inspection; J. State that at the public hearing, the city council will hear all protests of record owners, and will accept testimony from any interested person, whether such person is an owner or not; K. State the name and telephone number of the city employee or department where questions about the proposed district will be received. Section 13-184 Procedures for completion, return and receipt of ballots. The following procedures shall apply to ballots mailed with the notice of hearing: A. Each assessment ballot shall include the printed and/or typed name of the signing person, and shall be signed by the record owner or an authorized representative. The clerk may employ reasonable procedures, including but not limited to those specified in Government Code Section 53753(e), as that section may be Ordinance No. NS-2526 Page 6 of 12 amended or renumbered, to establish the propriety of any signature or authority for signature. B. Each assessment ballot shall be mailed or otherwise delivered to the address indicated on the assessment ballot. C. Assessment ballots shall be received only at the address indicated on the assessment ballot, or at the site of the public hearing. D. Ballots which are not signed, or which are otherwise defective, or which were not delivered to the proper location, shall not be included -in the tabulation of a majority protest. Only officially distributed ballots will be accepted. Ballots and ballot forms shall not be duplicated. E. An assessment ballot may be submitted, changed, or withdrawn prior to the conclusion of the public testimony on the proposed assessment at the hearing. Section 13-185 Procedures at public hearing on proposed assessment. A. At the date, time and place stated in the notice of hearing mailed pursuant to Section 13-183 of this article, the city council shall conduct a public hearing upon the proposed assessment. At the public hearing, the city council shall consider all objections or protests, if any, to the proposed assessment. At the public hearing, any interested person shall be permitted to present written or oral testimony. The city council may continue the hearing from time to time. B. Following the public hearing, the clerk shall cause the assessment ballots to be weighted and tabulated in accordance with the provisions of Government Code Section 53753(e), as that section may be amended or renumbered. C. At a subsequent city council meeting, the clerk shall report the results of the tabulation, and the city council shall determine whether a majority protest exists pursuant to the provisions of Government Code Se(~tion 53753(e). D. If a majority protest exists, the city council shall not impose or increase the assessment, as the case may be. Section 13-186 Formation of district. If a majority protest does not exist upon completion of the tabulation, the city council may adopt a resolution ordering the formation of the district, confirming the diagram and assessment, and establishing a district budget for the fiscal year or years referred to in the report. Adoption of this resolution shall constitute the levy of the confirmed assessment. For years following the fiscal year or years referred to in the report, the city Ordinance No. NS-2526 Page 7 of 12 council shall adopt an annual budget for the district in accordance with the provisions of this article. Section 13-187 Recordation. Upon levying the initial and any annual assessment as ~)rovided in this article, the city council shall direct the clerk to execute and record in the office of the county recorder, pursuant to the provisions of Streets and Highways Code Section 3114, the required assessment diagram and notice of assessment in substantially the form described in Section 3114 of the California Streets and Highways Code. The notice of assessment shall state the duration of the assessment. The assessment shall be a lien on the land upon which it is levied. This lien shall be paramount to all other liens, except prior assessments and taxes. Section 13-188 Adoption of annual district budget--Engineer's report.. Annual levy procedures. After formation of the district, the district budget shall be established annually by the city council, which may be done as a part of the regular budget approval process for the city as a whole. Where the maintenance services to.be provided are not anticipated to change in any substantial manner during an upcomin, g year, the city council may establish a multi-year budget and assessment and, in such case shall specify any reporting and other obligations imposed as conditions to allowing a multi-year budget and assessment. For the purpose of adoption of the annual district budget, the engineer shall annually prepare and file with the clerk a report containing the information specified in Section 13-180 of this article. In the event .that the city council accepts the report as submitted, or as modified, the city council shall take one of the following two actions: A. If the city council does not intend to increase the assessment, other than as permitted for inflation adjustment pursuant to Section 13-181 of this article, the city council may by resolution adopt the budget and levy the assessment for the fiscal year or years covered by the engineer's report. Adoption of this resolution shall constitute the levy of the confirmed assessment, and the clerk shall follow the procedures specified in Section 13-187 of this article. B. If the city council does intend to increase the assessment, all of the procedures specified in Sections 13-183 through 13-186 of this article shall apply and be followed. Upon completion of those procedures, if a majority protest does not exist, the city council may by resolution adopt the budget and levy the assessment for the fiscal year or years covered by the engineer's report. Adoption of this resolution shall constitute the levy of the confirmed assessment, and the clerk shall follow the procedures specified in Section 13-187 of this article. Ordinance No. NS-2526 Page 8 of 12 C. A surplus or a deficit in the district's account at the end of a fiscal year shall be carried over to the following fiscal year. Section 13-189 Changes to district. Subject to the requirement that all procedures required for formation of a district under this article are followed, and subject to compliance with the provisions of Streets and Highways Code Section 3113, if applicable to the change in question, the city council may make the following changes to a district, once formed: A. Annexation of land to the district. In this case, it shall only be necessary to apply the formation proceedings to the owners of the land to be annexed; B. Formation of a new zone of benefit within the district. Where, as part of the proceedings for formation of the district, the owners of land within the proposed new zone have given their prior consent to the formation of the new zone of benefit, it shall be unnecessary to apply the formation proceedings to the establishment of the new zone of benefit; C. An increase in the assessment on any parcel; D. A change in the method or formula by which the cost of maintenance is distributed among the parcels of land within the district; E. A material reduction in the scope of the public improvements to be maintained. F. Subject to compliance with the provisions of Streets and Highways Code Section 3113, where applicable to the change in question, all other changes, including without limitation dissolution of the district, consolidation of two or more districts, may be made without application of the formation proceedings, if there is no increase in the assessment on any parcel of land within the district, or any effect upon the method or formula by which the cost of the maintenance is distributed among the parcels within the district. Section 13-190 City council determination. The city council may provide for collection of the assessment by the city through city accounting procedures established for that purpose, or for collection by the county of Orange through the office of the county auditor. Section 13-191 Collection by the County of Orange In the event that the city council directs that the assessment be collected on behalf of the city by the county auditor, the clerk shall file with the county auditor a certified copy of the assessment and diagram, with a request that the assessments be posted to the county roll for general property taxes. This filing shall occur on or before August 1st of Ordinance No. NS-2526 Page 9 of 12 the fiscal year in which the assessments are to be collected, or such later date as may be approved by the county. The assessments shall be collected at the same time and in the same manner as general property taxes and all laws providing for the collection and enforcement of such property taxes shall apply to the collection and enforcement of the assessments. After deduction of the collection charges of the county auditor, the net amount of the assessments collected shall be remitted t0 the city for the account of the district. Section 13-192 Collection by the city. In the event that the city council directs that the assessment be collected by the city, the clerk shall file the adopted diagram with the city finance director who shall, within thirty (30) days thereafter, cause all of the owners subject to .the assessment to be billed by mail for the amounts shown on the adopted diagram and assessment. Payment of the assessments shall be due no later than thirty (30) days after the date on which the bills are mailed. Any assessment or portion thereof not paid within this period shall be deemed delinquent and shall be subject to a penalty for delinquency in the amount of ten (10) percent of the delinquent amount plus one and one-half percent of the delinquent amount for each thirty (30) days or portion thereof of delinquency. In the event of delinquency, the finance director may initiate collection proceedings by filing a report of delinquent assessments with the city council. Upon receipt of this report, the council shall fix a time, date and place for a hearing on the report and any protests or objections thereto. Notice of the hearing shall be mailed to the record owner of the delinquent property not less than ten (10) days prior to the date of the hearing. At the hearing, the city council shall consider the report and any objections thereto. The city council may accept the report as submitted, modify the report and accept it as modified, or reject the report. The decision of the city council on the report shall be final and conclusive. Upon confirmation of the report, the finance director shall be authorized to refer the city's claim in the amount of the delinquent assessment plus any applicable penalties and interest to the county auditor with a request that this amount be posted to the county roll for general property taxes and collected in the manner described in Section 13-191 of this article. Section 13-193 Contest of validity. The validity of any assessment or special tax levied under this article shall not be contested in any action or proceeding unless the action or proceeding is commenced within thirty (30) days after the assessment or tax is levied by the city council. Section 13-194 Work of maintenance. The maintenance of the public improvements may be performed by city forces and/or by one or more contractors retained by the city. The letting of contracts for maintenance Ordinance No. NS-2526 Page 10 of 12 shall be conducted in the manner authorized for letting of general city contracts of the same nature. If maintenance is to be performed by city forces, the account of the district shall be charged for direct and indirect costs, supervision and administration in accordance with normal and reasonable accounting standards and procedures. Section 13-195 Consolidation of procedures. Procedures for the formation of a district pursuant to this article may be consolidated with procedures for the construction or acquisition of the public improvements pursuant to any other provision of this code or pursuant to any law of the state of California including without limitation the Municipal Improvemerrt Act of 1911, the Municipal Improvement Act of 1913, the Landscaping and Lighting Act of 1972, and other similar statutes. Section 3. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. ADOPTED this 5th day of May, 2003 M~ MaYor By: / M: , Attorney Ordinance No. NS-2526 Page 11 of 12 AYES: NOES: ABSENT: ABSTAIN: Councilmembers: Councilmembers: Councilmembers: Councilmembers: Alvarezl Christy, Garcia, PulidOl Solorio (5) Franklin (1) Bist (1) None (0) CERTIFICATE OF ATTESTATION AND.ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS 2526 to be the original ordinance adopted by the City Council of the City of Santa Ana on May 5, 2003, and that said ordinance was published in accordance with the Charter of the City of Santa Aha. ~,/,,J~ Date: ,--~,~3/Z?:~ City of Santa Ana // Ordinance No. NS-2526 Page 12 of 12