The subdivider of any parcel or parcels of property shall construct improvements containing supplemental size, capacity, number, and length for the benefit of property not within the subdivision when determined to be necessary by the City Engineer. Such improvements shall be dedicated to the public. This Article is adopted pursuant to Government Code, Sections 66485 through 66487, inclusive.
When a subdivider is required to provide improvements of supplemental size, capacity, number or length that are in excess of the improvements necessary for the subdivision, and when such supplemental improvements benefit property not within the subdivision, then the City may, upon approval of the City Council, enter into a reimbursement agreement with the subdivider pursuant to this Article.
Prior to the execution of a reimbursement agreement pursuant to this Article, the City Engineer shall prepare and submit to the City Council a report describing in detail the property outside the subdivision which is benefited by the supplemental improvements required by the City, and recommending apportionment of the costs of such improvements based upon the benefit to such property outside the subdivision. The recommended apportionment of costs shall be made on the basis of frontage upon such improvements, acreage served by such improvements, or any other formula rationally related to actual benefit.
The City shall provide notice of the Engineer's report and recommend apportionment of costs as follows:
(a)
Notice shall be provided to the owners of all property identified in the Engineer's report as benefiting from the supplemental improvements, as determined on the last equalized assessment roll.
(b)
Said notice shall state:
(1)
That the owner's property has been identified as benefiting from the supplemental improvements;
(2)
The amount of costs apportioned to that owner's property by the Engineer's report;
(3)
That the City may collect from the owner the amount of costs finally apportioned to the owner's property;
(4)
That, unless the consent of all property owners identified as benefiting from the supplemental improvements is filed with the City, a public hearing will be held to determine the final apportionment of costs;
(5)
The time, date, and location of said hearing.
(c)
If all affected property owners file consent to the Engineer's apportionment of costs, no hearing shall be held and the apportionment of costs contained in the Engineer's report shall be final.
Prior to the execution of a reimbursement agreement, the City Council shall, unless consent of all affected property owners is filed with the City, hold a public hearing to determine benefits and apportion costs to each parcel of property outside the subdivision which benefits from the supplemental improvements. At said hearing, the City Council shall consider the Engineer's report, and may adopt the report's apportionment of benefits and costs, or the Council may adopt its own final apportionment of benefits and costs so long as said apportionment is rationally related to the benefits received by the benefiting properties.
Any reimbursement agreement entered into pursuant to this Article shall include the following provisions:
(a)
The City shall make reimbursement to the subdivider in an amount to be determined by the City. Said reimbursement shall be measured by the difference between the cost of improvements constructed for the subdivision developed by subdivider and the total cost of improvements constructed by subdivider.
(b)
City shall be obligated to make reimbursements to subdivider only when and as City obtains funds from benefiting property owners as such benefiting property owners improve their property.
(c)
Any funds paid by benefiting property owners to the City need not be paid by City to the subdivider until the limitations period has expired and no legal action has been filed for legal action to seek a refund of such funds paid under protest. In the event such court action is instituted, City shall not pay such funds to the subdivider until the court action is finally decided and the authority of the City to collect such charges has been sustained.
(d)
The City shall have the right to turn over to the subdivider the defense of any action by a benefiting property owner seeking refund of amounts paid under protest. If the subdivider fails to undertake the defense of the action at subdivider's own expense, the City may stipulate to a return of the funds to said benefiting property owner, and the City shall not be further obligated to subdivider as to any such funds so refunded. In the event a court action is maintained to prevent the City from collecting funds from benefiting property owners, the City shall have the right to turn over to subdivider the defense of that action, and subdivider shall agree to hold the City harmless from any and all liability thereunder. In the event the subdivider fails to undertake defense of the action at subdivider's sole expense, the City may stipulate to cease collecting such funds, or enter into any other settlement of the litigation acceptable to the City, and subdivider shall lose any right to reimbursement under the reimbursement agreement.
(e)
The reimbursement agreement shall provide for reimbursement of all funds without interest, unless the Council otherwise determines. Under no circumstances shall the City be deemed liable for any funds not collected from benefiting property owners.
In order to pay the costs provided for in the reimbursement agreement, the City may:
(a)
Collect from other persons, including public agencies, using such improvements for the benefit of real property not within the subdivision, a reasonable charge for such use.
(b)
Contribute to the subdivider that part of the cost of the improvements that is attributable to the benefit of real property outside the subdivision, upon a determination by the City that it is in the public interest so to do. The City shall thereafter levy a charge upon the real property benefited to reimburse itself for such cost, together with interest thereon, paid to the subdivider.
(c)
Establish and maintain local benefit districts for the levy and collection of such charge of costs from the property benefited.