The city council shall consider the application and/or petition of the proponents of a proposed underground utility districts, provided such application and/or petition complies with the city's then-current policies and procedures for the formation of underground utility districts. If the city council approves the formation, it shall adopt a resolution of initiation and direct the city engineer to prepare the required, Proposition 218-compliant Engineer's Report identifying the special benefits the proposed undergrounding project confers to the properties. The Engineer's Report shall determine the precise assessment amount on each property within the proposed district based upon the specific special benefit conferred upon each parcel, taking into account administrative, design, and construction costs quoted by the participating utility companies as well as financing costs, making allowances for cost overruns.
The city council shall consider the Engineer's Report and may approve it by resolution. In such event, the city council shall direct the city clerk to mail assessment ballots to all affected property owners, along with a notice of public hearing, as required by Proposition 218. The ballots shall be printed in such a way as to allow affected property owners to indicate their support for, or opposition to, the proposed assessment. Property owners shall have 45 days to return the ballots, which shall be opened and tabulated at the noticed public hearing.
If a majority (50% + 1) of the returned assessment ballots are in favor of the project, as weighted by each assessment amount, the city council will approve a resolution forming the assessment district. Otherwise, the assessment district is not formed. Regardless of whether a property owner voted to approve the formation of the assessment district, upon such formation all owners of property within the newly formed assessment district must make arrangements to pay their assigned portion of the assessment. Property owners may, within 30 days, pay all or a portion of their assessment as calculated in the Engineer's Report and approved by a majority of the returned assessment ballots. Property owners who fail to pay the full amount within 30 days shall be liable for any unpaid amount via bond and a lien on the assessed property. Regardless of whether a property owner, voted to approve the formation of the assessment district, the property owner, and their successors or assigns, is responsible for all costs of the private connection between the assessed real property and the resulting underground utility system, when available.
(Ord. 2104, 1/9/2025; Ord. 2125, 2/11/2026)