Whenever in this Chapter the words or phrases below are used, they shall have the respective meanings assigned to them in the following definitions:
"Service connection"
means the wires, conductors, transformers, insulators, cutouts, switches, communication circuits, appliances, attachments and/or appurtenances located on private property and necessary to supply electric, communication or similar or associated service to that property. "Service connection" also means the service connection identified in Section 13.04.100.
"Underground utility district" or "district"
means a district formed pursuant to Chapter 13.04 in the City within which poles, overhead wires, and associated overhead structures are prohibited.
"Utility"
includes all persons or entities supplying electric, communication or similar or associated service by means of electrical materials or devices.
(Ord. 672 § 1, 2013)
(a) 
The City Council may determine that it would be convenient and advantageous to permit authorized City officials and property owners to enter into voluntary contractual assessments to finance the cost of a service connection necessary to convert the property's utility services underground within an underground utility district.
(b) 
The City Council shall make these determinations by adopting a resolution indicating its intention to do so. The resolution of intention shall include a statement that the City proposes to make voluntary contractual assessment financing available to property owners, shall identify the kinds of improvements that may be financed, shall describe the boundaries of the current or proposed underground utility district within which voluntary contractual assessments may be entered into, and shall briefly describe the proposed arrangements for financing the program, including a brief description of criteria for determining the creditworthiness of a property owner and the priority and collection of such assessments. The resolution of intention shall state that it is in the public interest to finance the service connection to ensure all utility service within the district may be undergrounded. The resolution shall state that a public hearing should be held at which interested persons may object to or inquire about the proposed program or any of its particulars, and shall state the time and place of the hearing. The resolution shall direct an appropriate City official to prepare a report pursuant to Section 13.06.030 and to enter into consultations with the County Auditor's office or County Controller's office in order to reach agreement on what additional fees, if any, will be charged to the City for incorporating the proposed voluntary contractual assessments into the assessments of the general taxes of the City on real property, if applicable.
(Ord. 672 § 1, 2013)
The report required by Section 13.06.020 shall contain all of the following:
(a) 
A map showing the boundaries of the underground utility district within which voluntary contractual assessments are proposed to be offered.
(b) 
A draft contract specifying the terms and conditions that would be agreed to by a property owner within the voluntary contractual assessment area and the City.
(c) 
A statement of City policies concerning voluntary contractual assessments including all of the following:
(1) 
Statement that service connections may be financed through the use of contractual assessments;
(2) 
Identification of the City official authorized to enter into voluntary contractual assessments on behalf of the City;
(3) 
A maximum aggregate dollar amount of voluntary contractual assessments; and
(4) 
General background regarding this Chapter, the underground utility district, the proposed contractual assessment program and any other information as deemed reasonably necessary by the City.
(d) 
A plan for raising a capital amount required to pay for work performed pursuant to voluntary contractual assessments. The plan may include amounts to be advanced by the City through funds available to it from any source. The plan may include the sale of a bond or bonds or other financing relationship pursuant to Section 13.06.070. The plan shall include a statement of or method for determining the interest rate and time period during which contracting property owners would pay any assessment. The plan shall provide for any reserve fund or funds. The plan shall provide for the apportionment of all or any portion of the costs incidental to financing, administration, and collection of the voluntary contractual assessment program among the consenting property owners and the City.
(e) 
If the contractual assessments will be collected in the same manner as City property taxes, a report on the results of the consultations with the County Auditor's office or County Controller's office concerning the additional fees, if any, that will be charged to the City for incorporating the proposed voluntary contractual assessments into the assessments of the general taxes of the City on real property, and a plan for financing the payment of those fees.
(Ord. 672 § 1, 2013)
(a) 
The City Clerk shall publish notice of the hearing pursuant to Section 6066 of the Government Code, and the first publication shall occur not later than twenty (20) days before the date of the hearing.
(b) 
Within each resolution of intention adopted pursuant to Section 13.06.020, the City Council shall designate an office, department, or bureau of the City that shall be responsible for annually preparing the current roll of assessment obligations by assessor's parcel number on property subject to a voluntary contractual assessment. The designated office, department, or bureau shall establish procedures to promptly respond to inquiries concerning current and future estimated liability for a voluntary contractual assessment. Neither the designated office, department, or bureau, nor the City, shall be liable if any estimate of future voluntary contractual assessment liability is inaccurate, nor for any failure of any seller to request notice pursuant to this Chapter or to provide the notice to a buyer.
(Ord. 672 § 1, 2013)
At the time of the hearing, the report shall be summarized and the City Council shall afford all persons who are present an opportunity to comment upon, object to, or present evidence with regard to the proposed contractual assessment program, the extent of the area proposed to be included within the program, the terms and conditions of the draft contract, or the proposed financing provisions. At the conclusion of the hearing, the City Council may adopt a resolution confirming the report or may direct its modification in any respect, and thereafter may adopt a resolution confirming the report as modified, or the City Council may abandon the proceedings. However, the legislative body may not increase the area within which contractual assessments would be offered without providing notice of the proposed increase in area pursuant to this Chapter. The hearing may be continued from time to time not exceeding a total of one hundred eighty (180) days.
(Ord. 672 § 1, 2013)
(a) 
The City Clerk shall record a copy of the instrument creating the voluntary contractual assessment with the County.
(b) 
For purposes of enabling sellers of real property subject to a voluntary contractual assessment to satisfy the notice requirements of Section 1102.6b of the Civil Code, the City shall also cause to be recorded in the office of the County Recorder, concurrently with the instrument creating the voluntary contractual assessment, a separate document that meets all of the following requirements:
(1) 
The title of the document shall be "Payment of Contractual Assessment Required" in at least fourteen (14) point boldface type;
(2) 
The document shall include all of the following information:
(i) 
The names of all current owners of the real property subject to the contractual assessment, and the legal description and the Assessor's parcel number for the affected real property,
(ii) 
The annual amount of the contractual assessment, as applicable,
(iii) 
The date or circumstances under which the contractual assessment expires, or a statement that the assessment is perpetual,
(iv) 
The purpose for which the funds from the contractual assessment will be used,
(v) 
The entity to which funds from the contractual assessment will be paid and specific contact information for that entity,
(vi) 
The signature of the authorized representative of the City to which funds from the contractual assessment will be paid.
(Ord. 672 § 1, 2013)
To the extent permitted by applicable law, the City may issue bonds pursuant to this Chapter, the principal and interest for which would be repaid by voluntary contractual assessments. The City may advance its own funds to finance work to be repaid through voluntary contractual assessments, and may from time to time sell bonds to reimburse itself for such advances. The City may enter into a relationship with an underwriter or financial institution that would allow the sequential issuance of a series of bonds, each bond being issued as the need arose to finance work to be repaid through voluntary contractual assessments. The interest rate of each bond may be determined by an appropriate index, but shall be fixed at the time each bond is issued. Bond proceeds may be used to establish a reserve fund, and to pay for expenses incidental to the issuance and sale of the bonds. Division 10 of the California Streets and Highways Code (commencing with Section 8500) shall apply to any bonds issued pursuant to this section, insofar as that division is not in conflict with this Chapter.
(Ord. 672 § 1, 2013)
Assessments levied pursuant to this Chapter, and the interest and any penalties thereon shall constitute a lien against the lots and parcels of land on which they are made, until they are paid. Unless the City agrees otherwise in any contractual assessment agreements with the owner, assessments shall be imposed and collected in the same manner as contractual assessments imposed pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (commencing with Section 5898.10). However, assessments levied pursuant to this Chapter shall not be entitled to the special lien priority provided under those provisions. Rather contractual assessments levied pursuant to this Chapter shall be considered private liens subject to the general laws, regulations and requirements governing lien priority.
(Ord. 672 § 1, 2013)