HomeMy WebLinkAbout02-27-1995 Item #5Agenda Item No. 5
CITY OF NEWPORT BEACH
Office of the City Manager
February 27, 1995
TO: Honorable Mayor and Members of the City Council
FROM: Kevin J. Murphy, City Manager
SUBJECT: CIOSA FINANCING DISTRICT
Wi' (HL CITY COUNCIL
CITY OF NEWPORT BEACH
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The City of Newport Beach has been requested by the Irvine
Company to initiate the formation of a Special Improvement District pursuant to
Section 3.32 of the Newport Beach Municipal Code. This section of the
Municipal Code was adopted on August 22, 1994 by Ordinance No. 94-40. This
Ordinance outlines the general provisions, definitions, powers and procedures to
create Special Improvement Districts and permits the issuance of special tax
bonds under the specified procedures and guidelines. The first step in creating a
Special Improvement District pursuant to the Municipal Code is the receipt of a
petition requesting the institution of proceedings for the establishment of a
Special Improvement District. Our Municipal Code outlines the various items
which must be contained within the petition, including the name of the petitioner,
the proceedings requested, the boundaries of the Special Improvement District,
the purpose of the Special Improvement District and that it be signed by not less
than 10% of the registered voters residing within the territory included within the
district or by owners of not less than 10% of the area of land proposed to be
included within the district.
Attached for your information is a correspondence from Tom
Redwitz, Vice President for Development Entitlement for The Irvine Company,
requesting by petition that the City create a Special Improvement District. The
City's special counsel, Greg Harrington of Jones Hall Hill & White, has reviewed
the proposed petition and has found that it conforms with the provisions of
Section 3.32 of the Newport Beach Municipal Code.
Following the City Council's consideration of the petition, the City
Council will next consider a Resolution of Intention to formally establish a Special
Improvement District. The Resolution of Intention would set a specific date for a
public hearing to consider the formation of the Improvement District. The hearing
can be held no earlier than thirty days from the date of the adoption of the
Resolution of Intention and no longer than sixty days after the adoption of the
Resolution. Prior to the hearing to consider the adoption of a Resolution forming
the District, the City Council must also adopt a Resolution of Intention to incur
bonded indebtedness and set a date for a future public hearing on incurring debt
which is fully secured by the private property within the District. There is no
pledge of City or income stream assets to secure future bonds or bond
{payments. Provided the City Council formally adopts after public hearing the
formation of the District and the Resolution incurring bonded indebtedness, a
special election would then be held with the landowner voting and the process
would be concluded by the City Council adoption of an ordinance ordering the
levy of special taxes against the property within the District's boundaries.
The City Council this evening is only receiving the petition for the
establishment of the CIOSA District and at your next meeting will be requested to
adopt a Resolution of Intention to establish the CIOSA Financing District. I have
attached the section of Chapter 3.32 which contains the provisions on the
establishment of Special Improvement Districts should you have a need to review
the language of our Municipal Code on this subject.
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THE IRVINE COMPANY
February 21, 1995
City of Newport Beach
3300 Newport Boulevard
Newport Beach, CA 92660
Attn : Kevin Murphy
City Manager
Subs: CIOSA Financing District
Dear Kevin:
Attached is the Petition To Create A Special Improvement District related
to the CIOSA parcels.
We are very pleased to take this first formal step to implement our agreement
with the city, which will derive significant road funding benefits to the
city with the development of our properties.
Sincerely,
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Tom Redwitz
Vice President
Development Entitlement
TR/sp
Enclosure
550 Newport Center Drive, Suite 350, P.O. Box 6370, Newport Beach, California 92658-6370
Phone: (714) 720-2332 FAX: (714) 720-2425
J
PETITION
TO CREATE A SPECIAL IMPROVEMENT DISTRICT
(Including Waiver)
City Council
City of Newport Beach
3300 Newport Boulevard
Newport Beach, California 92659
Members of the Council:
This is a petition to create a special improvement district, and with respect to related
matters, under the City of Newport Beach Special Improvement District Financing Code (the
"Code"), and the undersigned hereby states as follows:
1. Petitioner. This petition is submitted by The Irvine Company ("Petitioner"), as
the owner of the parcels of land identified below. By submitting this petition, Petitioner
warrants to the City of Newport Beach (the "City") that it is the owner of such land.
2. Proceedings Requested. Petitioner hereby requests that the City Council of the
City institute proceedings under the Code to establish a special improvement district to be
'designated "City of Newport Beach Special Improvement District No. 95-1 (CIOSA)" (the
"Special Improvement District"), to levy special taxes in the Special Improvement District and
to authorize special tax bonds for the Special Improvement District in an amount of not to
exceed $29,000,000.
3. Boundaries of Special Improvement District. Petitioner hereby requests that the
territory to be included in the Special Improvement District consist of those parcels of land
identified in Exhibit A attached hereto and made a part hereof.
4. Purpose of Special Improvement District. Petitioner hereby requests that the
Special Improvement District be created, the special taxes be levied and the bonds be issued to
finance all or a part of the construction and acquisition of the public facilities and payment of
the costs identified in Exhibit B attached hereto and made a part hereof.
5. Election. Petitioner hereby requests that the special elections to be held under the
Code to authorize the special taxes, to authorize the issuance of the bonds and to establish an
appropriations limit for the Special Improvement District be consolidated into a single election
and that the election be conducted by the City and its officials, using mailed or hand -delivered
ballots and that such ballots be opened and canvassed and the results certified at the same
meeting of the City Council as the public hearings on the Special Improvement District under the
Code or as soon thereafter as possible.
6. Waivers. To expedite the completion of the proceedings for the Special
Improvement District, Petitioner hereby waives all notices of hearings (other than published
notices required under the Code) and all notices of election, all applicable waiting periods under
the Code for the election and all ballot analysis and arguments for the election.
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7. Mailing Address. The address of the Petitioner for receiving notices is: The Irvine
Company, 550 Newport Center Drive, Newport Beach, California 92660, Attention: Vice
President and General Counsel Land Development Group.
This petition is dated February 21, 1995.
-2-
The Irvine Company, a Mi higan
corporation
Its: UERNARDA. NIANISCAL,
Vice President and General Manage
B ct ` Coastal Community Builders,
By: n o he Irvine Company
Its: J. Thomas Sakai ` isia
Assistant Secretary
The Irvine Company
I
EXHIBIT A
CITY OF NEWPORT BEACH
SPECIAL IMPROVEMENT DISTRICT NO. 95-1
(CIOSA)
DESCRIPTION OF PROPERTY
The land that is the subject of the Petition, consisting of approximately 236 acres, is
depicted in the attached map and is identified as the following Orange County Assessor Parcel
Nos..
Castaways 117-801-12
Bayview Landing 440-132-06
440-132-08
Newporter North 440-132-21
440-132-24
San Diego Creek South 442-061-09
442-061-11
442-061-14
Corporate Plaza West 442-011-54
Newport Village 442-014-24
Block 800 442-262-04
PCH/MacArthur 442-014-28
442-272-03
442-272-04
Freeway Reservation 458-142-07
(g
CITY OF NEWPORT BEACH
SPECIAL IMPROVEMENT DISTRICT No. 95-1
(CIOSA)
MAP
UPPER
NEWPORT
RAY
SAN DIEGO —
CREEK SOUTH
UNI ITY DR.
NEWPORTER
NORTH
UPPER s�ti FREEWAY
CASTAWAYS RESERVATION
� pG
IiAYVIEW
a ING y��t
��s
800
CORPORATE -
PLAZA WEST
NEWPORT CENTER DR.
NEWPORT\
VILLAGE
PCH/
MACARTIIUR
EM-11BIT B
CITY OF NEWPORT BEACH
SPECIAL IMPROVEMENT DISTRICT NO. 95-1
(CIOSA)
DESCRIPTION OF FACILITIES
The facilities shown below are proposed to be financed by the City of Newport Beach
Special Improvement District No. 95-1 (CIOSA). The facilities shall include all costs of
engineering, design, planning and coordination incident thereto, together with the expenses
related to the issuance and sale of any special tax bonds, including underwriters' discount,
appraisals, reserve fund, capitalized interest, bond counsel, bond and official statement
printing and all other expenses related thereto. The facilities shall be constructed, whether or
not acquired in their completed states, pursuant to plans and specifications approved by the
City of Newport Beach and the officials thereof.
The planned public improvements include the construction of various street
improvements, including access roads, sidewalks, street widening, signal relocations, median
rework and landscaping, and storm drain facilities.
Exhibit B -1
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ARTICLE III
PROCEEDINGS TO CREATE A SPECIAL IMPROVEMENT
DISTRICT
Section 301. Institution of proceeding; request; petition, fee. Proceedings for the
establishment of a special improvement district may be instituted by the City Council on its
own initiative and shall be instituted by the City Council when any of the following occurs:
(a) A written request for the establishment of a special improvement district,
signed by two members of the City Council, describing the boundaries of the territory
which is proposed for inclusion in the area and specifying the type or types of
facilities and services to be financed by the district, is filed with the City Council.
(b) A petition requesting the institution of the proceedings signed by the
requisite number of registered voters, as specified in subdivision (d) of Section 303, is
filed with the Clerk. The petition may consist of any number of separate
instruments, each of which shall comply with all of the requirements of the petition,
except as to the number of signatures.
(c) A petition requesting the institution of the proceedings signed by
landowners owning the requisite portion of the area of the proposed district, as
specified in subdivision (d) of Section 303, is filed with the Clerk.
(d) The written request filed pursuant to subdivision (a) and the petitions
filed pursuant to subdivisions (b) and (c) shall be accompanied by the payment of a
fee in an amount which the City Council determines is sufficient to compensate the
City Council for all costs incurred in conducting proceedings to create a district
pursuant to this Code.
Section 302. Prohibition of LAFCO from review, approval or disapproval of creation
of or annexation or detachment of territory from a district. Notwithstanding any provision
of Part 1 (commencing with Section 56000) of Division 3 of the California Government
Code, a local agency formation commission shall have no power or duty to review and
approve or disapprove a proposal to create a special improvement district or a proposal to
annex territory to, or detach territory from, such district, pursuant to this Code.
Section 303. Petition; contents, findings as to requisite number of signers. A petition
requesting the institution of proceedings for the establishment of a special improvement
district shall do all of the following:
(a) Request the City Council to institute proceedings to establish a special
improvement district pursuant to this Code.
(b) Describe the boundaries of the territory which is proposed for inclusion in
the district.
(c) State the type or types of facilities and services to be financed by the
district.
(d) Be signed by not less than 10 percent of the registered voters residing
within the territory proposed to be included within the district or by owners of not
less than 10 percent of the area of land proposed to be included within the district. If
the City Council finds that the petition is signed by the requisite number of registered
voters residing within the territory proposed to be included within the district or by
the requisite number of owners of land proposed to be included within the district,
that finding shall be final and conclusive.
Section 304. Resolution of intention to establish district; time for adoption. Within
90 days after either a written request by two members of the City Council or a petition
requesting the institution of proceedings for the establishment of a special improvement
district is filed with the City Council, it shall adopt a resolution of intention to establish a
special improvement district in the form specified in Section 305.
Section 305. Resolution of intention to establish special improvement district;
contents. Proceedings for the establishment of a special improvement district shall be
instituted by the adoption of a resolution of intention to establish the district which shall do
all of the following:
(a) State that a special improvement district is proposed to be established
under the terms of this Code and describe the boundaries of the territory proposed
for inclusion in the district, which may be accomplished by reference to a map on file
in the office of the Clerk, showing the proposed special improvement district. The
boundaries of the territory proposed for inclusion in the district shall include the
entirety of any parcel subject to taxation by the proposed district.
(b) State the name proposed for the district in substantially the following
form: "City of Newport Beach Special Improvement District No.
(c) Describe the public facilities and services proposed to be financed by the
district pursuant to this Code. The description may be general and may include
alternatives and options, but it shall be sufficiently informative to allow a taxpayer
within the district to understand what the funds of the district may be used to
finance. If the purchase of completed public facilities or the incurring of incidental
expenses is proposed, the resolution shall identify those facilities or expenses. If
facilities are proposed to be financed through any financing plan, including, but not
limited to, any lease, lease -purchase, or installment -purchase arrangement, the
resolution shall briefly describe the proposed arrangement.
(d) State that, except where funds are otherwise available, a special tax
sufficient to pay for all facilities and services, secured by recordation of a continuing
lien against all nonexempt real property in the district, will be annually levied
within the area. The resolution shall specify the rate, method of apportionment, and
manner of collection of the special tax in sufficient detail to allow each landowner or
resident within the proposed district to estimate the maximum amount that he or
she will have to pay. The City Council may specify conditions under which the
obligation to pay the specified special tax may be prepaid and permanently satisfied.
In the case of any special tax to pay for public facilities and to be levied against
any parcel used for private residential purposes, (1) the maximum special tax shall
be specified as a dollar amount which shall be calculated and thereby established not
later than the date on which the parcel is first subject to the tax because of its use for
private residential purposes, which amount shall not be increased over time except
that it may be increased by an amount not to exceed 2 percent per year, (2) the
resolution shall specify a tax year after which no further special tax subject to this
sentence shall be levied or collected, and (3) the resolution shall specify that under
no circumstances will the special tax levied against any parcel subject to this sentence
be increased as a consequence of delinquency or default by the owner of any other
parcel or parcels within the district by more than 10 percent. For purposes of this
paragraph, a parcel shall be considered "used for private residential purposes" not
later than the date on which an occupancy permit for private residential use is
issued. Nothing in this paragraph is intended to prohibit the City Council from
establishing different tax rates for different categories of residential property, or from
changing the dollar amount of the special tax for the parcel if the size of the
residence is increased or if the size or use of the parcel is changed.
(e) Fix a time and place for a public hearing on the establishment of the
district which shall not be less than 30 or more than 60 days after the adoption of the
resolution.
(f) Describe any adjustment in property taxation to pay prior indebtedness I
pursuant to Sections 207 and 208.
(g) Describe the proposed voting procedure. 1 I /
Section 306. Reports and estimate of costs by responsible officers; remedial action
plan for cleanup of hazardous substance; inclusion in record of hearing. At the time of the
adoption of the resolution of intention to establish a special improvement district, the City
Council shall direct each of its officers who is or will be responsible for providing one or
more of the proposed types of public facilities or services to be financed by the district, if it is
established, to study the proposed district and, at or before the time of the hearing, file a
report with the City Council containing a brief description of the public facilities and
services by type which will in his or her opinion be required to adequately meet the needs of
the district and his or her estimate of the cost of providing those public facilities and
services. If the purchase of completed public facilities or the payment of incidental expenses
is proposed, the City Council shall direct its appropriate officer to estimate the fair and
reasonable cost of those facilities or incidental expenses. If removal or remedial action for
the cleanup of any hazardous substance is proposed, the City Council shall (a) direct its
responsible officer to prepare or cause to be prepared, a remedial action plan based upon
factors comparable to those described in subdivision (c) of Section 25356.1 of the California
Health and Safety Code or (b) determine, on the basis of the particular facts and
circumstances, which shall be comparable to those described in subdivision (g) of Section
25356.1 of the California Health and Safety Code, that the remedial action is not required.
All of those reports shall be made a part of the record of the hearing on the resolution of
intention to establish the district.
Section 307. Notice of hearing. (a) The Clerk shall publish a notice of the hearing
pursuant to Section 6061 of the California Government Code in a newspaper of general
circulation published in the area of the proposed district. Publication shall be complete at
least seven days prior to the date of the hearing.
(b) The notice shall contain all of the following information:
(1) The text or a summary of the resolution of intention to establish the
district which may refer to documents on file in the office of the Clerk for detail.
(2) The time and place of the hearing on the establishment of the district.
(3) A statement that at the hearing the testimony of all interested persons or
taxpayers for or against the establishment of the district, the extent of the district, or
the furnishing of specified types of public facilities or services will be heard. The
notice shall also describe, in summary, the effect of protests made by registered voters
or landowners against the establishment of the district, the extent of the district, the
furnishing of a specified type of facilities or services, or a specified special tax, as
provided in Section 310.
(4) A description of the proposed voting procedure.
Section 308. Notice of hearing by mail to registered voters and landowners within
proposed district. The Clerk may also give notice of the hearing by first-class mail to each
registered voter and to each landowner within the proposed district. This notice shall be
mailed at least 15 days before the hearing and shall contain the same information as is
required to be contained in the notice published, pursuant to Section 307.
Section 309. Protests; interested persons or taxpayer. At the hearing, protests against
the establishment of the district, the extent of the district, or the furnishing of specified types
of public facilities or services within the district may be made orally or in writing by any
interested persons or taxpayer. Any protests pertaining to the regularity or sufficiency of the
proceedings shall be in writing and shall clearly set forth the irregularities and defects to
which objection is made. All written protests shall be filed with the Clerk on or before the
time fixed for the hearing. The City Council may waive any irregularities in the form or
content of any written protest and at the hearing may correct minor defects in the
proceedings. Written protests may be withdrawn in writing at any time before the
conclusion of the hearing.
Section 310. Written protest, further proceedings to create district; elimination of
special tax or types of facilities or services from resolution of formation. If 50 percent or
more of the registered voters, or six registered voters, whichever is more, residing within
the territory proposed to be included in the district, or the owners of one-half or more of the
area of the land in the territory proposed to be included in the district and not exempt from
the special tax, file written protests against the establishment of the district, and protests are
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not withdrawn so as to reduce the value of the protests to less than a majority, no further
proceedings to create the specified special improvement district or to levy the specified
special tax shall be taken for a period of one year from the date of the decision of the City
Council.
If the majority protests of the registered voters or of the landowners are only against
the furnishing of a specified type or types of facilities or services within the district, or
against levying a specified special tax, those types of facilities or services or the specified
special tax shall be eliminated from the resolution of formation.
Section 311. Hearing; continuances; time limitation; exception; modification of
resolution of intention; determination to abandon or proceed with establishment of district.
The hearing may be continued from time to time, but shall be completed within 30 days,
except that if the City Council finds that the complexity of the proposed district or the need
for public participation requires additional time, the hearing may be continued from time to
time for a period not to exceed six months. The City Council may modify the resolution of
intention by eliminating proposed facilities or services, or by changing the rate or method of
apportionment of the proposed special tax so as to reduce the maximum special tax for all or
a portion of the owners of property within the proposed district, or by removing territory
from the proposed district. Any modifications shall be made by action of the City Council at
the public hearing. If the City Council proposes to modify the resolution of intention in a
way that will increase the probable special tax to be paid by the owners of any lot or parcel, it
shall direct that a report be prepared that includes a brief analysis of the impact of the
proposed modifications on the probable special tax to be paid by the owners of lots or parcels
in the district, and shall receive and consider the report before approving the modifications
or any resolution of formation which includes those modifications. At the conclusion of
the hearing, the City Council may abandon the proposed establishment of the special
improvement district or may, after passing upon all protests, determine to proceed with
establishing the district.
Section 312. Adoption of resolution of formation establishing district; contents;
finding concerning validity and conformity of prior proceedings. (a) If the City Council
determines to establish the district, it shall adopt a resolution of formation establishing the
district. The resolution of formation shall contain all of the information required to be
included in the resolution of intention to establish the district specified in Section 305. If a
special tax is proposed to be levied in the district to pay for any facilities or services and the
special tax has not been eliminated by majority protest pursuant to Section 310, the
resolution shall:
(1) State that the proposed special tax to be levied within the district has not
been precluded by majority protest pursuant to Section 310.
(2) Identify any facilities or services proposed to be funded with the special
tax.
(3) Set forth the name, address, and telephone number of the office,
department, or bureau which will be responsible for preparing annually a current
roll of special tax levy obligations by assessor's parcel number and which will be
responsible for estimating future special tax levies pursuant to Section 602.
(4) State that upon recordation of a notice of special tax lien pursuant to
Section 3114.5 of the California Streets and Highways Code, a continuing lien to
secure each levy of the special tax shall attach to all nonexempt real property in the
district and this lien shall continue in force and effect until the special tax obligation
is prepaid and permanently satisfied and the lien canceled in accordance with law or
until collection of the tax by the City ceases.
(5) Set forth the county of recordation and the book and page in the Book of
Maps of Assessments and Community Facilities Districts in the county recorder's
office where the boundary map of the proposed special improvement district has
been recorded pursuant to Sections 3111 and 3113 of the California Streets and
Highways Code.
(b) In the resolution of formation adopted pursuant to subdivision (a), the City
Council shall determine whether all proceedings were valid and in conformity with the
requirements of this Code. If the City Council determines that all proceedings were valid
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and in conformity with the requirements of this Code, it shall make a finding to that effect
and that finding shall be final and conclusive.
Section 313. Special tax; basis for apportionment. A tax imposed pursuant to this
Code is a special tax and not a special assessment, and there is no requirement that the tax be
apportioned on the basis of benefit to any property. However, a special tax levied pursuant
to this Code may be on or based on benefit received by parcels of real property, the cost of
making facilities or authorized services available to each parcel, or other reasonable basis as
determined by the City Council. A special tax apportioned on any of these bases shall not be
construed to be on or based upon the ownership of real property.
Section 314. Noncontiguous areas; alteration of boundaries. (a) A special
improvement district may include areas of territory that are not contiguous.
(b) In establishing the boundaries of the district, the City Council may alter the
exterior boundaries of the district to include less territory than that described in the notice of
the hearing but it may not include any territory not described in the notice of the hearing.
Section 315. Establishment or changing appropriations limit, election on
proposition; adjustment. The City Council may submit a proposition to establish or change
the appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the
California Constitution, of a special improvement district to the qualified electors of a
proposed or established district. The proposition establishing or changing the
appropriations limit shall become effective if approved by the qualified electors voting on
the proposition and shall be adjusted for changes in the cost of living and changes in
populations, as defined by subdivisions (b) and (c) of Section 7901 of the California Revenue
and Taxation Code, except that the change in population may be estimated by the City
Council in the absence of an estimate by the Department of Finance, and in accordance with
Section 1 of Article XIII B of the California Constitution. For purposes of adjusting for
changes in population, the population of the district shall be deemed to be at least one
person during each calendar year.
Section 316. Special tax levy; election; voter qualifications; ballots. (a) The City
Council shall then submit the levy of any special taxes to the qualified electors of the
proposed special improvement district subject to the levy or to the qualified electors of the
territory to be annexed by the special improvement district subject to the levy in the next
general election or in a special election to be held, notwithstanding any other requirement,
including any requirement that elections be held on specified dates, contained in the
California Elections Code, at least 90 days, but not more than 180 days, following the
adoption of the resolution of formation. The City Council shall provide the resolution of
formation, a certified map of sufficient scale and clarity to show the boundaries of the
district, and a sufficient description to allow the election official to determine the
boundaries of the district to the official conducting the election within three business days
after the adoption of the resolution of formation. Assessor's parcel numbers for the land
within the district shall be included if it is a landowner election or the district does not
conform to an existing district's boundaries and if requested by the official conducting the
election. If the election is to be held less than 125 days following the adoption of the
resolution of formation, the concurrence of .the election official conducting the election
shall be required. However, any time limit specified by this section or requirement
pertaining to the conduct of the election, including any time limit or requirement
applicable to any election conducted pursuant to Article VI, may be waived with the
unanimous consent of the qualified electors of the proposed district and the concurrence of
the election official conducting the election. '
(b) Except as otherwise provided in subdivision (c), if at least 12 persons, who need
not necessarily be the same 12 persons, have been registered to vote within the territory of
the proposed special improvement district for each of the 90 days preceding the close of the
protest hearing, the vote shall be by the registered voters of the proposed district, with each
voter having one vote. Otherwise, the vote shall be by the landowners of the proposed
district and each landowner who is the owner of record at the close of the protest hearing, or
the authorized representative thereof, shall have one vote for each acre or portion of an
acre of land that he or she owns within the proposed special improvement district. The
number of votes to be voted by a particular landowner shall be specified on the ballot
provided to that landowner.
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(c) If the proposed special tax will not be apportioned in any tax year on any portion
of property in residential use in that tax year, as determined by the City Council, the City
Council may provide that the vote shall be by the landowners of the proposed district
whose property would be subject to the tax if it were levied at the time of the election. Each
of these landowners shall have one vote for each acre, or portion thereof, that the
landowner owns within the proposed district which would be subject to the proposed tax if
it were levied at the time of the election.
(d) Ballots for the special election authorized by subdivision (a) may be distributed to
qualified electors by mail with return postage prepaid or by personal service by the election
official. The official conducting the election may certify the proper mailing of ballots by an
affidavit, which shall constitute conclusive proof of mailing in the absence of fraud. The
voted ballots shall be returned to the election officer conducting the election not later than
the hour specified in the resolution calling the election. However, if all the qualified voters
have voted, the election may be closed with the concurrence of the official conducting the
election.
Section 317. Election laws governing; ballot materials. (a) Except as otherwise
provided in this Code, the provisions of law regulating elections of the City, insofar as they
may be applicable, shall govern all elections conducted pursuant to this Code. Except as
provided in subdivision (b), there shall be prepared and included in the ballot material
provided to each voter, an impartial analysis pursuant to Section 5011 of the California
Elections Code, and arguments and rebuttals, if any, pursuant to Sections 5012 to 5016,
inclusive, and 5025 of the California Elections Code.
(b) If the vote is to be by the landowners of the proposed district, analysis and
arguments may be waived with the unanimous consent of all the landowners and shall be
so stated in the order for the election.
Section 318. Election by mail ballot. (a) If the election is to be conducted by mail
ballot, the election official conducting the election shall provide ballots and election
materials pursuant to subdivision (d) of Section 316 and Section 317, together with all
supplies and instructions necessary for the use and return of the ballot.
(b) The identification envelope for return of mail ballots used in landowner
elections shall contain the following:
(1) The name of the landowner.
(2) The address of the landowner.
(3) A declaration, under penalty of perjury, stating that the voter is the
owner of record or the authorized representative of the landowner entitled to vote
and is the person whose name appears on the identification envelope.
(4) The printed name and signature of the voter.
(5) The address of the voter.
(6) The date of signing and place of execution of the declaration described
in paragraph (3).
(7) A notice that the envelope contains an official ballot and is to be
opened only by the canvassing board.
Section 319. Special tax levy. After the canvass of returns of any election pursuant to
Section 316, the City Council may levy any special tax as specified in the resolution of
formation adopted pursuant to subdivision (a) of Section 312 within the territory of the
district if two-thirds of the votes cast upon the question of levying the tax are in favor of
levying that tax.
Section 320. Recordation and notice of special tax lien; site of record. Upon a
determination by the City Council that the requisite two-thirds of votes cast in an election
held pursuant to Section 316 are in favor of levying the special tax, the Clerk shall record
the notice of special tax lien provided for in Section 3114.5 of the California Streets and
Highways Code, whereupon the lien of the special tax shall attach as provided in Section
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3115.5 of the California Streets and Highways Code. The notice of special tax lien shall be
recorded in the office of the county recorder in each county in which any portion of the
district is located.
Section 321. Application of Streets and Highway Code with respect to special taxes;
filings. Division 4.5 (commencing with Section 3100) of the California Streets and
Highways Code applies with respect to any proceedings undertaken pursuant to this Code.
This Code is a "principal act" as that term is defined in Section 3100 of the California Streets
and Highways Code.
Section 322. Special tax levy; effect of failure to receive approval by two-thirds of
voters. After the canvass of returns of any election conducted pursuant to Section 316, the
City Council shall take no further action with respect to levying the specified special tax
within the special improvement district for one year from the date of the election if the
question of levying that specified special tax fails to receive approval by two-thirds of the
votes cast upon the question.
Section 323. Owners not required to present sealed proposals or bids; election not to
perform work; contract with original bidder. (a) The owners of three-fourths of the area of
lands taxed or liable to be taxed, or their agents (who shall declare under penalty of perjury
that they are such owners or agents), shall not be required to present sealed proposals or bids
when the City Council calls for bids preparatory to letting a contract or contracts to do work
financed pursuant to this Code, but may, within 10 days after the publication of the notice of
the award of the contract, elect to perform the work and enter into a written contract to do
the whole work at prices not exceeding the prices specified in the bid of the bidder to whom
the contract was awarded, and all work done under the contract shall be subject to any
regulations as may be prescribed by the City Council.
(b) If the owners elect not to perform the work and not to enter into a written
contract for that work within 10 days of publication of the notice of the award of the
contract, or to commence the work within 15 days after the date of the written contract
entered into between the owners and the City, and to continue that work with diligence to
completion, as determined by the City Council, a contract shall be entered into by the City
with the original bidder to whom the contract was awarded at the prices specified in his or
her bid.
(c) If, in the opinion of the City Council, the public interest will not be served by
allowing the property owners to enter into a contract in accordance with subdivision (a), the
City Council may so provide in the resolution of intention adopted pursuant to Section 305.
ARTICLE IV
EXTENSION OF AUTHORIZED FACILITIES AND
SERVICES AND CHANGES IN SPECIAL TAXES
Section 401. Types of facilities and services financed. Upon the establishment of a
special improvement district, only the public facilities and services as described in the
resolution of formation may be financed by the district under the authority of this Code,
except as provided in this article.
Section 402. Buyers of certain residential property; induced waiver of right to
petition or take other action prohibited Under no circumstances shall any buyer or
prospective buyer of any completed structure for which a certificate of occupancy for private
residential use has been issued which is located within any district formed pursuant to this
Code be asked, required, or otherwise induced to waive any right to petition or take any
other action authorized pursuant to this article. No contract, agreement or covenant shall
be binding with respect to such a waiver.
Section 403. Special tax, levy and apportionment; cessation of tax and lien. Upon
approval of a special tax pursuant to Article III, the special tax may be levied only at the rate
and may be apportioned only in the manner specified in the resolution of formation, except
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