There is hereby vested in the Council the power to issue benefit assessment bonds within any district created pursuant to Chapter 16.10 SCCC or pursuant to any general law of the State.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.1)
The purpose of this article is to provide a procedure by which benefit assessment bonds may be issued to pay the whole or any part of the costs of any public improvements which are inherently local in nature, payable from annual benefit assessment levies apportioned among the several lots and parcels of land or real property within the district established therefor, in proportion to the estimated benefits to be received by said lots and parcels of land or real property, the nature and formula or formulae for which is to be determined in the proceeding in which jurisdiction is provided therefor.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.2)
The respective provisions of any article of Chapter 16.10 SCCC or of any general law of the State pursuant to which said proceedings are undertaken to the contrary notwithstanding, no assessment or diagram shall be made, heard, levied or recorded, nor shall any amount of annual benefit assessment levies proposed to be made pursuant hereto be or become payable prior to their levy as herein provided.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.3)
When the Council proposes to issue benefit assessment bonds pursuant to this article, it shall so declare in the resolution of intention pursuant to which the bonds are to be issued, the maximum term for which the bonds of any series of the issue may be issued, and the maximum rate of interest they may bear, and that bonds will be issued pursuant to this article.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.4)
In addition to the matters required by SCCC § 16.15.390, the resolution of intention shall contain a statement of the formula or formulae upon and by which annual benefit assessment levies for the payment of said bonds and the interest thereon will be apportioned according to benefits to be received among the several lots and parcels of land within the assessment district to be established therefor.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.5)
At the hearing provided for establishing the benefit assessment district pursuant to any article of Chapter 16.10 SCCC or of any general law of the State, property owners may protest against and be heard as to the proposed formula or formulae pursuant to which annual benefit assessment levies are to be apportioned among the several lots and parcels of land or real property within the district established therefor in proportion to the estimated benefits to be received by said lots and parcels of land or real property in the same manner, at the same time and with like legal effect, as provided for other protests in said proceedings.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.6)
At the hearing provided in SCCC § 16.15.400, the Council, of its own volition or in response to any protest made, heard or considered, may make such modifications in the formula or formulae as it determines may be necessary to adequately effect the apportionment of said annual benefit assessments in proportion to the estimated benefits to be received; for the purpose of making the same more fair and equitable; provided, however, that before making a final order in said matter 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 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 was published, at least ten days prior to said hearing.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.7)
At the initial hearing, or at the subsequent hearing on the modification of said formula or formulae, or at any meeting to which either shall have been adjourned, or at any meeting of the Council subsequent to the full hearing of said matter, with or without said matter having been submitted, the Council, by resolution, shall finally adopt a formula or formulae for the apportionment of benefits in said subsequent benefit assessment levies, which shall be that stated in the resolution of intention, or as modified, and its determination shall be final and conclusive against all persons excepting persons whose protests for grounds stated therein have been denied and who have brought action therefor within thirty (30) days following said determination, in the local superior court.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.8)
If, at any time following the final establishment of the formula or formulae for said subsequent benefit assessment levies, the Council shall, by resolution, determine that, by reasons of changed conditions or because of defects or insufficiencies therein disclosed by its application, an established formula or formulae does not equitably apportion said annual benefit assessments in proportion to the estimated benefits to be received the Council may, by resolution, so declare, stating the grounds therefor, and fix a time and place of hearing thereon.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.9)
A copy of the resolution provided in SCCC § 16.15.415 shall be published once a week for two successive weeks, the first of which shall be at least 14 days prior to the day of said proposed meeting, in the newspaper in which the resolution of intention or notice of improvement in said proceedings was published.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.10)
At the hearing provided in SCCC § 16.15.415, protest may be filed, heard and acted upon in the manner and with like effect provided in this article for the initial establishment and modification of said formula or formulae.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.11)
The benefit assessment bonds shall be of the form prescribed by resolution of the Council, shall be dated as the Council shall determine, shall be numbered consecutively, and shall be in registered form and serial in nature. They shall be payable on September 2nd of each year in such amount as the Council shall determine. The first maturity shall be not earlier than twelve (12) months after their date. The benefit assessment bonds may be made to mature on September 2nd over a period not to exceed forty (40) years from their date.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.12)
The benefit assessment bonds may be issued in successive series, divisions or parts having different dates, terms and dates of maturity.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.13)
The bonds shall bear interest payable on March 2nd and September 2nd of each year. The first payment of interest shall become due on the interest payment date which is six months before the maturity of the first series of bonds, but if any portion of the interest is funded, the Council may specify that the first payment of interest shall become due on any earlier interest payment date following the date of the bonds. Interest shall be payable to the registered holders of the bonds as their names and addresses appeared on the records of the City or its registration agent on the fifteenth (15th) day preceding the interest payment date.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.14)
If, upon presentation at maturity, or if redeemable and duly called for redemption, payment of the benefit assessment bonds or any interest thereon is not made in full accordance with the indenture of issuance, said bonds shall continue to bear interest at the rate stated in the bonds until paid in full.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.15)
The benefit assessment bonds may be made subject to call and redemption prior to their fixed dates of maturity with or without a premium, all as shall be prescribed by the Council; provided, that no bond shall be subject to prior call unless it shall so state on its face.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.16)
The benefit assessment bonds shall be signed by the Director of Finance and the Clerk. However, the Council may by order authorize the use upon the bonds of an engraved, printed or lithographed signature of the Director of Finance and the Clerk in place of a signature by hand. It may also authorize the seal to be placed in a like manner on the bonds.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.17)
The proceeds of the bonds shall be deposited in an improvement fund which shall be created and maintained for each project. The moneys in said fund shall be used solely for the acquisition and construction of the improvements described in said proceedings, and the expenses incidental to said proceedings and the financing thereof, including legal or other fees incidental to or connected with the authorization, issuance and sale of the bonds, the cost of printing the bonds, and may include interest on the bonds during the estimated period of acquisition and construction.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.18)
A fund to be named "Bond Plan H, Series No. ________, Interest and Redemption Fund," or other designation sufficient to identify it, shall be created and maintained for each issue of bonds.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.19)
All moneys which shall have been pledged or contributed to the payment of the bonds and the interest thereon, and all annual benefit assessments levied therefor, shall be deposited in the redemption fund for such issue, shall constitute a trust fund therefor, and shall not be expended for any other purpose; provided, that if any moneys remain in the redemption fund after the payment of all the bonds and the interest thereon it shall be transferred to the City general fund, unless a maintenance, improvement or a service facilities district has been created for the improvements acquired and constructed from the proceeds of said bonds, in which event it shall be transferred to such fund, and be used for the objects and purposes thereof.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.20)
The City Manager shall annually cause to be prepared a budget for each bond issue hereunder which shall include the following:
(a)
The gross amount required to pay the principal of and interest on the bonds and any premiums on bonds to be called, before the proceeds of a second assessment levy will be available therefor;
(b)
The gross amount proposed to be raised for the maintenance and operation of the City improvements involved, and any capital additions, extensions, improvements or replacements therein, during the period provided in subsection (a) of this section;
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.21)
The amount provided in SCCC § 16.15.475(f), including provision for anticipated delinquencies, shall be raised by annual benefit assessments on all taxable lands or real properties within the assessment district, as provided in SCCC § 16.15.380 until all of the bonds and the interest to accrue thereon have been paid in full.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.22)
In each year that a balance is provided in the budget pursuant to SCCC § 16.15.475(f), the City Manager shall cause to be prepared annually a report for each bond issue hereunder, which shall, under appropriate headings, show the amounts to be provided in the annual budget pursuant to SCCC § 16.15.475 and by properly headed columns, show the County assessor's description of each lot or parcel of land or real property to be assessed, the amount of the levy applicable to said lot or parcel of land or real property, and such other information as will be necessary or useful in applying out the formula or formulae adopted by the Council for the particular issue of bonds to which said budget provisions apply.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.23)
When the report has been completed, it shall be endorsed by the City Manager in duplicate, and filed with the City Clerk on or before the first day of June.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.24)
If the formula or formulae adopted for an issue of bonds is sufficiently simple as to leave no discretion, it shall be reviewed by the Council and adopted and approved by resolution.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.25)
Said report shall come on regularly for hearing by the City Council at its regular meeting held on the first Tuesday of July each year.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.27)
The City Clerk shall cause notice of the hearing on the report to be given by two publications in a newspaper in the City, and by posting a copy of the notice on the bulletin board of the City Hall. The posting and first publication shall be at least ten days before the day fixed for hearing.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.28)
The notice shall be substantially as follows:
NOTICE OF HEARING (Project Title) |
NOTICE IS HEREBY GIVEN that the City Manager has caused to be prepared and filed with the City Clerk a report which provides the basis for levying benefit assessments on the properties within the assessment district created and established for the project cited above, and the amounts proposed to be levied for the fiscal year ________ upon the several lots and parcels of land or real property in the assessment district created to pay the principal and interest of the bonds issued for said project and to pay the costs of maintenance and operation, if any, of the improvements involved and any capital additions, extensions, improvements or replacements therein, which report is open to public inspection. |
Said report will be heard by the Council at its meeting to be held on the _______ day of ________, 20___, at the hour of _______ o'clock ___.M. in the regular meeting place of said Council, Council Chambers, City Hall, Santa Clara, California, at which time said Council will examine said report and hear all persons interested therein. |
Any interested owner, objecting to the amount of the assessment on any lot or parcel of land or real property owned by him, may file with the City Clerk at or before the hour fixed for hearing a protest, in writing, signed by him, describing the lot or parcel of land or real 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. |
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.29)
Affidavits or certificates of publication and posting of hearing shall be made and filed with the Clerk.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.30)
The Clerk shall endorse on each protest the date it is filed with him, and shall show whether said protest is filed prior to the hour fixed for hearing. No protest received after said hour shall be legal, but the Council may, at its discretion, consider said protests and hear the signers thereof.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.31)
At the time and place fixed for said hearing, or at any time to which said hearing is adjourned, the Council shall:
(a)
Hear all persons having an interest in any lot or parcel of land or real property within the district;
(b)
Hear all objections, protests or other written communications from any persons interested in any lot or parcel of land or real property within the district;
(c)
Take and receive oral and documentary evidence pertaining to the matters contained in the report;
(d)
Remedy and correct any error or informality in the report, and revise and correct any of the acts or determinations of the City Manager or of the person making said report as contained therein;
(e)
Amend, alter, modify, correct, approve and confirm said report and each of the benefit assessments therein.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.32)
All decisions and determinations of the Council, after notice and hearing as aforesaid, shall be final and conclusive upon all persons entitled to appeal as to all errors, informalities and irregularities which the Council might have avoided, or have remedied during the hearing on the report.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.33)
The report, approved pursuant to SCCC § 16.15.495 and § 16.15.530, together with the certificate of the Clerk as to the fact and date of approval by this Council, shall be delivered to the County Auditor on or before the first day of August of each year.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.34)
The County Auditor shall post to the County tax roll, in a column provided therefor, the total amount of the benefit assessment to be levied and collected for said year on each lot or parcel of land or real property within the assessment district.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.35)
Said benefit assessments shall be levied and collected upon the tax rolls upon which property taxes are collected. They shall be in addition to all other taxes, and shall be levied, entered and collected together with, and not separate from, property taxes, 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 property taxes, and all laws applicable to the levy, collection and enforcement of property taxes are applicable to said special benefit assessment levy, and the assessed real property, if sold for taxes, shall be subject to redemption within one year from the date of sale in the same manner as such real property is redeemed from the sale for property taxes and if not redeemed shall in like manner pass to the purchaser.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.36)
The Council may annually, at, or prior to, the time the levy is made, or at such other time as it determines, advance as a loan or contribution to the redemption fund of said bonds such amount or amounts as it may from time to time determine.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.37)
Public property, whether or not in use in the performance of a public function, shall be exempt from the levy of benefit assessments to service bonds of this article.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.38)
If any lot or parcel of land or real property is omitted from the tax roll for any year in which such levy is made, it shall be added at the end of the roll and assessed as contained in the report hereinafter provided. If any lot or parcel of land or real property is omitted in any such report, it shall be assessed for the omitted amount in the next year after said omission is discovered, and appropriate provision shall be made in the report for said year.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.39)
All bonds issued and all benefit assessments levied and collected pursuant to the provisions of this article, shall by their issuance or levy be conclusive evidence of the regularity, validity and legal sufficiency of all proceedings, acts and determinations in anywise pertaining thereto, and after the same are issued no benefit assessment levied or collected for the purpose of paying the principal or interest on said bonds shall be held invalid or illegal, or set aside by reason of any error, informality, irregularity, omission or defect in said proceedings, not amounting to a want of due process of law.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.40)
No benefit assessment or benefit assessment bonds, or any order for their issuance, and no proceedings prior thereto, shall be held invalid by any court for any error, omission, irregularity, informality, or other defect in the same, where the resolution of intention has been published as herein provided.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.41)
No proceeding taken or had under this article shall be held to be invalid on the ground that the real property or a portion thereof, upon which the work or improvement or part thereof, is to be done or was done, has not been lawfully dedicated or acquired, provided the same has been lawfully dedicated or acquired, or an action for the acquisition thereof has been filed, or otherwise, at any time before judgment has been entered in any legal action or proceeding involving such issue.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.42)
All the decisions and determinations of the Council, upon notice and hearing as aforesaid, shall be final and conclusive upon all persons entitled to appeal under the provisions of this article, as to all errors, informalities, omissions, irregularities, and other defects, which the Council might have avoided, or might have remedied, during the progress of the proceedings, or which it can at that time remedy.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.43)
When any court of competent jurisdiction or the Council, of its own volition, determines that any contract purported to have been made, or any proceedings, steps or actions purported to have been taken, or any bond or bonds issued, or levy of benefit assessment made, under this article, is or are void, invalid, or unenforceable for any reason, or any court for any cause enjoins the issuance under this article, or the payment of any pledge or contribution, or the levy of any annual benefit assessment, or any other action or determination which might or will affect the prompt and orderly payment of any such bonds or the interest thereon as they shall accrue, said court or the Council shall also determine that new bonds shall be issued in the place thereof. In such event the Council shall cause a declaration to be filed which shall state the amount of any work performed, improvements made, acquisitions had, and the costs thereof and expenses incidental thereto, and the estimated cost of any future work improvements, acquisition and incidental costs and expenses. Jurisdiction therefor shall be had after notice published and posted and hearing had as provided in Article IV of Chapter 16.10 SCCC or of any general law of the State; provided, that there shall be no bar to said proceedings by reason of a majority or other protest against them.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.44)
If the invalidity is not in the bonds themselves or in the issuance thereof, the Council may so declare in the reassessment proceedings. In such event, the reauthorization proceedings shall constitute the proceedings providing the legal authority for the issuance of the outstanding bonds, and the redemption fund created in any reassessment proceedings shall constitute a trust fund for their payment.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.45)
If the invalidity is in the bonds themselves or in the issuance thereof, or if the Council so determines in the reassessment proceedings, new bonds shall be issued and exchanged for the outstanding bonds. The new bonds shall mature in the amounts and at the times provided for the outstanding bonds, as nearly as may be. If the Council so determines, it may assign different bonds and allot maturities as it deems equitable.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.46)
If any part of the outstanding bonds have matured or will mature before the time for providing for the servicing of the new bonds, or if interest has accrued or will so accrue, the Council may provide for the issuance of additional new bonds in the amount thereof and for their maturity. If the holders of said outstanding bonds, or any other holders of outstanding bonds have refused to accept exchange of bonds therefor, the Council shall sell additional bonds in the amount thereof, and deposit the proceeds in the redemption fund. Said outstanding bonds shall forthwith become due and payable without premium, and shall no longer bear interest.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.47)
The boundaries of such district may be enlarged from time to time. The territory to be annexed shall be set forth in a resolution of intention to be adopted by the Council, which shall give notice that said matter, and all persons interested, will be heard by the Council at a time to be stated therein, at the regular meeting place of the Council. Such resolution shall be published twice in a newspaper of general circulation published in the City, the first of which shall be at least ten days before the date fixed for hearing. The hearing may be adjourned from time to time. At the hearing the Council shall have power to determine whether or not the entire territory, or only a portion thereof, to be annexed will be benefited by being annexed. The Council shall by resolution order the annexation of such territory, defining its boundaries therein. Its decision thereon shall be final and conclusive. Thereafter the property annexed shall be subject to special levies for maintenance and operation and for any bonds issued for the acquisition or construction of said improvements.
(Ord. 1586 § 1, 5-24-1988; Formerly § 16-175.48)