Ordinance 1986-14ORDINANCE NO. 86-14
AN ORDINANCE AMENDING CHAPTER 12A OF THE
CODE OF THE CITY OF GILROY BY ADDING
ARTICLE IV, DIVISIONS 1, 2 AND 3
THERETO RELATING TO MAINTENANCE DISTRICTS
The City Council of the City of Gilroy does ordain as
fellows:
Section 1. Article IV, Divisions 1, 2, and 3, inclusive,
are added to Chapter 12A of the Code of the City of Gilroy entitled
and to read as follows:
ARTICLE IV, MAINTENANCE DISTRICTS
Division 1. APPLICATION AND EFFECT
Sec. 12A.190. Short Title. This article may be cited and
referred to as the City of Gilroy Maintenance District Act.
Sec. 12A.191. Alternative Procedures. The procedures in
this article are alternative and shall not apply to or affect any
other provisions of law.
Sec. 12A.192. Article Not Exclusive. This article 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 part or parts hereof.
Sec. 12A.193. General Law. 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.
ORDINANCE NO. 86 - 14
In proceedings had pursuant to this article, the general
laws or acts referred to herein shall be deemed a part hereof.
Sec. 12A. 194. Owner. The word "owner" shall mean all
persons owning real property whose names and addresses appear as
such on the last equalized assessment roll or who are known to the
City Clerk of said City.
Sec. 12A. 195. Article Superior. The provisions of this
article shall be controlling over the provisions of any general law
or act in conflict herewith in any proceedings hereunder.
Division 2. GENERAL PROCEDURE
Sec. 12A. 196. Maintenance Districts. Whenever the City
Council determines that the costs and expenses of maintaining and
operating any or all public improvements of a local nature have not
been adequately financed and provided for, proceedings therefor may
be undertaken pursuant to this article.
Sec. 12A.197. Powers. The City Council may, in its
resolution declaring its intention to order work done or
improvements made or 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 said
Council shall determine'will be benefited by the maintenance and
operation of the public improvements proposed to be maintained;
-2-
the amounts so assessed to be collected in the same manner and by
the same officers as taxes for County purposes are collected.
Sec. 12A. 198. A~plicable General Law. When said Council
has declared its intention pursuant to Section 12A.197 hereof, 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; provided that all
documents required to be posted shall be posted on or near the
Council Chamber door or on any bulletin board in or adjacent to the
City Hall and in three (3) public places within the territory
proposed to be formed into a maintenance district or to be annexed
to an existing maintenance district.
Division 3. ALTERNATIVE METHOD FOR THE LEVY OF BENEFIT ASSESSMENTS
Sec. 12A. 199. Purpose. The purpose of this article 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 is to be determined in the
proceedings in which jurisdiction is provided for the use of such
alternative procedure.
Sec. 12A.200. Resolution of Intention. The resolution of
intention to order work done or improvements made or said separate
-3-
resolution, declared pursuant to Section 12A.197, 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 and the zones
of benefit, if any, to be established therefor. Said formula or
formulae may prescribe a maximum rate or amount of annual benefit
assessment to be levied for such purposes. Said resolution shall
direct the Director of Public Works to cause to be annually
prepared a budget for the costs and expenses of maintaining and
operating any or all of said improvements during the ensuing fiscal
year.
Sec. 12A. 201. Budget - Contents. The Director of Public
Works annually shall cause to be prepared a budget for the costs
and expenses of maintaining and operating any or all of said
improvements of a local nature during the ensuing fiscal year which
shall include the following:
(1) The gross amount required for the costs and expenses
of maintaining and operating said improvements;
(2) The surplus balance available at the end of the fiscal
year for such purpose~
(3) The amount, if any, to be contributed by the City or
from other sources to pay any part of said costs and
expenses;
(4) The amount, if any, to be repaid to the City for
funds advanced by it to pay deficits which occurred in
-4-
prior years; and
(5) The net balance of the amount necessary to pay said
costs and expenses.
Sec. 12A. 202. Annual Benefit Assessment. The amount
provided in Section 12A.201(5) hereof shall be raised by an annual
benefit assessment on all of the lots or parcels of property within
the maintenance district excepting therefrom any publicly owned lot
or parcel of land in use in the performance of a public function.
Sec. 12A.203. Report. In each fiscal year in which a
balance is provided in the budget to be raised to pay costs and
expenses pursuant to Section 12A.201(5) hereof, the Director of
Public Works shall cause to be prepared a report, in writing, for
each maintenance district, which shall set forth the budget, the
formula or formulae for the annual assessment levy and, by properly
headed columns, show the following data as to each lot or parcel of
property within the maintenance district:
(a) A description of each lot or parcel of property
by a legal description, assessor's parcel number or other
description sufficient to identify the same;
(b) The amount of assessment to be levied against
each lot or parcel of property in accordance with the
formula or formulae; and
(c) Such other information as will be necessary or
useful in applying the formula or formulae adopted by the
City Council.
-5-
Sec. 12A. 204. Filing with City Clerk. When the report has
been completed and signed by the Director of Public Works, it shall
be filed with the City Clerk, who shall present it to the City
Council for its consideration.
Sec. 12A.205. Approval by City Council. The report shall
be considered by the City Council whereupon said Council may
approve the report as filed, or it may modify the report in any
particular and approve it as modified.
Sec. 12A.206. Hearing. Upon approval of the report by the
City Council pursuant to Section 12A. 205 hereof, said Council
shall, by resolution, appoint a time and place of hearing thereon.
Sec. 12A. 207. Notice. The City Clerk shall cause notice of
the hearing on the report to be given as follows: by mailing,
postage prepaid, to all owners of property subject to said
assessment to pay said costs of maintenance and operation; to be
published once in a newspaper of general circulation in the City;
and to be posted on or near the door of the Council Chambers or on
any bulletin board in or adjacent to the City Hall. Said mailing,
publication and posting shall be completed not less than ten (10)
days prior to such hearing.
Sec. 12A. 208. Hearing - Form of Notice to be Published
and Posted. The form of notice to be published and posted shall be
substantially as follows:
-6-
NOTICE OF HEARING
MAINTENANCE DISTRICT
NOTICE IS HEREBY GIVEN that the Director of Public
Works of the City of Gilroy 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 legal
description, assessor's parcel number or other description
sufficient to identify the same, and the amount of
assessment to be levied for the fiscal year 19 - 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)
formation 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;
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 protests, and may appear
at said hearing and be heard in regard thereto.
Said report will be heard by the City Council at its
meeting to be held on the day of ,
19 , at the hour of o-~ock .m. in the regular
meeting place of said Council, CounCil Chambers, City Hall,
7351 Rosanna Street, Gilroy, California, at which time said
Council will examine said report and hear protests.
-7-
Notice prior to the final establishment of the district
shall indicate that the formation of the district, the boundaries
of the district and of any zones of benefit, the benefit formula
and the amount of assessment are subject to protest. In years
thereafter, only the amount of assessment or changes in the formula
or formulae are subject to protest and the notice shall so
~ndicate.
Sec. 12A. 209. Hearing - Form of Notice to be Mailed. The
form of notice to be mailed shall be substantially as hereinabove
set forth, and 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.
If the City Council adopts the report, the requirement for
mailed notice shall not thereafter apply to hearings on reports
prepared in subsequent years for the annual benefit assessment and
notice by posting and publication as hereinafter provided shall be
adequate.
Sec. 12A. 210. Affidavits. Affidavits or certificates of
publication, posting and mailing shall be made and filed with the
City Clerk.
Sec. 12A. 211. Protests. Any and all protests must be in
writing, signed by the protestant, contain a description of the
property owned by him/her sufficient to identify the same, and
state the grounds of his/her protest. All written protests shall
be filed with the City Clerk at or before the time fixed for
-8-
hearing who shall endorse on each protest the date of its receipt,
and at the time appointed for the hearing shall present to the City
Council all such protests. All protests not made within the time
and in the manner herein provided shall be deemed to be waived
voluntarily by any person who might have made such protest and such
person shall be deemed to have consented to any act, determination,
or proceedings on which protest could have been made.
Sec. 12A.212. Hearing. In connection with the hearing
provided for the establishment of the maintenance district, owners
may protest as provided in Section 12A.211 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
amount of the assessments. After a maintenance district has been
established and finally determined, annual hearings will be limited
to protests of the amounts of the assessment or any change in the
formula or formulae. The City Council may take and receive oral
and documentary evidence pertaining to the matters contained in the
report.
Sec. 12A. 213. Initial Modification. At said hearing, the
City Council of its own volition or in response to any protest
made, heard or considered, may make modifications in the formula or
formulae for the purpose of making the same more fair and
equitable; provided, however, that before making a final
determination in said matter of modification 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
-9-
it shall give notice of the time, place and purpose of said
meeting, by one publication in the newspaper in which the original
resolution of intention or notice of improvement or notice of
hearing on the formation of the maintenance district Or notice of
hearing on the proposed~ annexation was published, at least ten (10)
days prior to said hearing. If the formula or formulae
modification consists solely of a decrease in such maximum rate or
amount of annual benefit assessment, said Council may order such
decrease by resolution and no hearing need be held thereon.
Sec. 12A. 214. Majority Protest. 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 subject to benefit assessment to pay said costs of
maintenance and operation in the proposed maintenance district, no
further proceedings shall be taken for a period of six months from
the date of the decision of said Council on the hearing, unless the
protests are overruled by an affirmative vote of four-fifths of the
members thereof. The City Council may adjourn the hearing from
time to time.
Sec. 12A.215. Final Determination. At the initial hearing
or at a 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, said
Council, by resolution, may finally adopt the district, a formula
or formulae for the apportionment of benefits in said annual
assessment levies, the budget and the amount of assessment and the
-10-
assessment. Annually thereafter, at the hearing or at any
subsequent hearing as herein provided or at any meeting of said
CoUncil subsequent to the full hearing of said matter, said Council
shall adopt a budget and the amount of assessment.
Sec. 12A. 216. SUbsequent Modification. If, at any time
following the final establishment of the formula or formulae for
said annual assessment levies, the City Council shall determine
that, by reason of changed conditions or because of defects or
insufficiencies therein disclosed by its application, the
established formula or formulae is, in any particular, inequitable
or unfair, or may be made more equitable and fair, said Council
may, by resolution, so declare, stating the reasons therefor, and
fix a time and place of hearing thereon.
Sec. 12A.217. Notice. The City Clerk shall cause a copy of
the resolution adopted by the City Council as provided in Section
12A. 216 hereof to be published once in the newspaper in which the
resolution of intention or notice of improvement or notice of
h~aring on the formation of the maintenance district or notice of
hearing on the proposed annexation in said proceedings was
published; to be mailed, postage prepaid, to all owners of property
in said maintenance district subject to benefit assessment to pay
said costs of maintenance and operation; and to be posted on or
near the door of the Council Chambers or on any bulletin board in
or adjacent to the City Hall. Said publication, mailing and
posting shall be completed not less than ten (10) days prior to
such hearing.
-11-
Sec. 12A. 218. Hearin$ and Determination. At the hearing
provided for in Section 12A. 216 hereof, protests may be filed,
heard and acted upon in the manner and with like effect provided in
Sections 12A. 211 through 12A. 215, inclusive, hereof.'
Sec. 12A.219. Conclusiveness. All decisions and
determinations of the City Council, on notice and hearing as
aforesaid, shall be final and conclusive upon all persons entitled
to appeal to it, as to all errors, informalities and irregularities
which said Council might have avoided, or have remedied during the
hearing on the report.
Sec. 12A. 220. Certificate and Filing. The report, together
with the certificate of the City Clerk as to the fact and date of
approval and adoption thereof by the City Council as provided in
Section 12A. 215 hereof shall forthwith be delivered to the County
Auditor of the County who shall thereafter deliver said report, as
adopted, to the officer designated by law to extend ad valorem
property taxes upon the tax roll on which they are collected.
Sec. 12A. 221. Benefit Assessments-Posting. 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.
Sec. 12A. 222. Method of Collection. The special benefit
assessments shall be collected upon the last secured tax roll upon
-12-
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.
Sec. 12A.223. Omitted Property. 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 said omission is discovered, and appropriate provisions
shall be made in the report for said year.
Sec. 12A. 224. Consolidated Hearing. The procedures
relating to the formation of a maintenance district or the
annexation to an existing maintenance district and the alternative
method for the levy of the annual benefit assessment hereunder may
be consolidated for hearing purposes.
Division 3. APPLICABILITY TO MAINTENANCE
DISTRICTS FORMED PRIOR TO
THE EFFECTIVE DATE HEREOF
Sec. 12A. 225. APplicability-Petition. The provisions of
Sections 12A.199 to 12A. 224, inclusive, (the alternative method for
-13-
the levy of benefit assessments) shall be applicable to maintenance
districts formed before the effective date hereof, irrespective of
the law pursuant to which said maintenance districts were formed,
if all of the owners of all of the lots or parce~ls 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 said Sections 12A.199
to 12A. 224, inclusive, hereof shall apply.
Sec. 12A.226. Applicability-City Council Action.
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 be made applicable to a
maintenance district formed prior to the effective date hereof.
Sec. 12A. 227. Resolution of Intention. The resolution of
intention to apply the alternative method for the levy of the
benefit assessment as provided in Sections 12A.199 to 12A.224,
inclusive, hereof, declared pursuant to Section 12A.226, 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 the zones
and benefits, if any. Said formula or formulae may prescribe a
maximum rate of amount of annual benefit assessment to be levied
for such purposes. Said resolution Shall direct the Director of
Public Works annually to cause to be prepared a budget and report
in accordance with Sections 12A. 201, 12A. 202 and 12A. 203,
-14-
inclusive, hereof, which report shall be signed by him, filed with
the City Clerk, presented to the City Council and approved by said
Council in accordance with Sections 12A. 204 and 12A.205 hereof.
Sec. 12A. 228. Hearing. Upon approval of ~the report by the
City Council pursuant to Section 12A. 205 hereof, said Council
shall, by resolution, appoint a time and place of hearing thereon
and the City Clerk shall cause notice of the hearing on said report
to be given in the time, form and manner provided in Section
12A. 207 hereof.
Sec. 12A.229. Hearing-Notice-Form. 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 of the City of Gilroy, 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 - 19 against each lot or parcel of
property. Said report shall be open to public inspection.
-15-
Any interested owner objecting to: (Only
items with X are subject to objection at this
hearing)
use of the alternative method of benefit
assessment;
zones of benefit;
fairness of benefit formula or formulae;
the amount of the assessment on any lot or
parcel of property owned by him/her;
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 City Council at its
meeting to be held on the day of , 19 ,
at the hour of ~clock .m., in the regul-~r
meeting place of said Council, Counc-i-~Chambers, City Hall,
7351Rosanna Street, Gilroy, California, at which time said
Council will examine said report and hear protests.
Sec. 12A.230. Hearing-Form of Mailed Notice. The form of
notice to be mailed 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.
Sec. 12A.231. Affidavits. Affidavits or certificates of
publication, posting and mailing shall be made and filed with the
City Clerk.
Sec. 12A.232. Hearing Protests. Owners may protest or
object in the manner, at the time, and with the same force and
effect as provided in Section 12A. 211 hereof with regard to use of
the alternative method for the levy of the benefit assessment as
-16-
provided in Sections 12A.199 to 12A. 224, inclusive, hereof as well
as the fairness of the formula or formulae and the amount of the
assessment. The City Council may take and receive oral and
documentary evidence pertaining to the matters contained in the
report.
Sec. 12A.233. Majority Protest. If the City Council finds
that protests thereto are made by the owners of more than one-half
of the area of the property subject to benefit assessment to pay
said costs of maintenance and operation in said maintenance
district to the use of the alternative method, no further
proceedings shall be taken for a period of six months from the date
of the decision of said Council on the hearing, unless the protests
are overruled by an affirmative vote of four-fifths of the members
thereof. The City Council may adjourn the hearing from time to
time.
Sec. 12A. 234. Final Determination. Subsequent to the final
hearing of said matter, the City Council, by resolution, may
finally adopt the alternative method of benefit assessment, a
formula or formulae for the apportionment of benefits in said
annual assessment levies, the budget and the amount of assessment
and the assessment.
Sec. 12A.235. Application of Sections 12A.199 to 12A.224,
inclusive. The procedures under Sections 12A.199 to 12A. 224,
inclusive, hereof relating to the alternative method for the levy
of benefit assessment apply equally to Sections 12A. 225 to 12A. 234,
-17-
inclusive, except as to matters specifically otherwise provided for
herein.
Section 2. It is hereby declared to be the intention of the
City Council that the sections, paragraphs, sentences, clauses and
phrases of this article are severable, and if any phrase, clause,
sentence, paragraph or section of this article shall be declared
unconstitutional or otherwise invalid by the valid judgment or
decree of a court of competent jurisdiction, such
unconstitutionality or invalidity shall not affect any of the
remaining phrases, clauses, sentences, paragraphs and sections of
this article.
-18-
The foregoing ordinance was regularly introduced at a
regular meeting of the City Council of the City of Gilroy held on
the 18th day of August , 1986, and thereafter duly adopted by
said Council at a regular meeting held on the 2nd day of
September , 1986, at which meeting a quorum was present, by the
following vote:
AYES, Councilmembers: ALBERT, GAGE, KLOECKER, MUSSALLEM,
PALMERLEE, VALDEZ and HUGHAN.
NOES, Councilmembers: None
ABSENT, Councilmembers: None
APPROVED:
/s/ ROBERTA H. HUGHAN
Mayor
ATTEST:
/ ANN~ E. 'STEI~~T~~
City Clerk
(SEAL)
ORDINANCE NO. 86 - 14
-19-