12.16.090 Responsibility of property owner.

   (a)   All conduits, conductors and associated equipment necessary to receive electric, communication or similar associated services between service conductors or underground pipes or conduits of the supplying utilities and the service facilities to the building or structure being served shall be provided by the person owning, operating, leasing or renting the affected property subject to applicable rules, regulations and tariffs of the respective utilities on file with the California Public Utilities Commission and the utility rules and regulations of the city of Palo Alto.

   (b)   The underground service connection construction shall be accomplished within the time specified in Section 12.16.020 or if the time is not specified therein, within thirty days after the installation of the utilities facilities pursuant to the utility rules and regulations of the city of Palo Alto.

(Ord. 4908 § 6, 2006: Ord. 2231 (part), 1965: prior code § 37.209)

12.16.091 Financing service connection conversions.

   (a)   Whenever the conversion to underground locations of poles, overhead lines and associated overhead structures used in supplying electric, communication or similar associated service is, under established policies and procedures of the city to be financed entirely by the city within the area of the public rights-of-way within any proposed underground utility district, the cost of conversion to an underground location of the individual service connections on private property (hereinafter referred to as "service connection") may be accomplished in the manner hereinafter set forth in Sections 12.16.092 to 12.16.097, inclusive.

   (b)   Each affected residential or nonresidential property owner who elects to finance the cost of his service connection shall execute a loan agreement, which may be recorded, and any other document to secure his obligation to pay the city in accordance with this chapter. The affected owner shall prove to the city he holds legal title to the affected real property.

(Ord. 4908 § 7, 2006: Ord. 2527 § 1, 1969)

12.16.092 Notice of intention.

   (a)   At the time of the call of the public hearing on the formation of such an underground utility district, as required by Section 12.16.040, the council may authorize the city clerk, aided by the director of utilities, or his designee, to include in the notice of hearing to be mailed to all affected property owners, pursuant to Section 12.16.040, a statement to the effect that any affected owner has the option of paying the cost of converting his service connection to an underground location over a period of ten years with interest to be determined as provided by Section 12.16.096. The notice shall include the information set forth in Section 12.16.091(b).

   (b)   The notice shall be accompanied by an appropriate form by which the payment option specified in Section 12.16.096 may be exercised. The notice shall also set forth:

   (1)   The estimated cost of accomplishing the underground service connection construction, as determined by the director of utilities, or his designee, herein called the "base cost";

   (2)   An additional fixed amount per parcel, also to be determined by the director of utilities, or his designee, representing the cost of making the estimate, establishing the lien and other incidental administrative, legal and engineering expense involved in the proceedings, herein called the "incidental expense";

   (3)   The total amount of subdivision (1) plus subdivision (2), herein called the "special assessment"; and

   (4)   The fact that the city, upon exercise of the payment option and the accomplishment of the underground service connection construction as required by Section 12.16.090, will pay the base cost and incidental expense to the affected owner who accomplishes the underground service connection construction, subject to the payment of the amount of the special assessment as hereinafter provided.

(Ord. 4908 § 8, 2006: Ord. 2611 § 9, 1971: Ord. 2527 § 2, 1969)

12.16.093 Filing assessment list.

   (a)   After the formation of the underground utility district but before the accomplishment of the underground service connection construction, the council shall determine the properties the affected owners of which have exercised the option to pay the cost over a period of ten years and shall direct that the base cost and incidental expense shall be paid by the city subject to payment of the special assessment in the manner hereinafter set forth.

   (b)   A complete assessment roll or list of the affected properties subject to the payments over a period of ten years, identifying them and setting forth the respective amounts of the proposed special assessments, shall be prepared by the director of utilities, or his designee, and filed in the offices of the city clerk and the director of utilities and published and filed in the office of the county of Santa Clara assessor.

(Ord. 4908 § 9, 2006: Ord. 2611 § 10, 1971: Ord. 2527 § 3, 1969)

12.16.094 Payment of base cost - Establishment of special assessment lien.

   Upon completion (pursuant to Section 12.16.090) of the underground service connection construction on any parcel as to which the payment option has been exercised, the affected owner who accomplished the construction may file with the director of utilities, or his designee, a verified claim for the base cost and incidental expense. The claim shall be audited and paid in the manner provided by law.

(Ord. 4908 § 10, 2006: Ord. 2527 § 4, 1969)

12.16.095 Notice - Lien.

   (a)   Concurrently with such payment on which the affected property owner will pay over a period of ten years, the director of utilities, or his designee, consistent with Section 12.16.093(b), shall publish and file the assessment roll or list in the office of the county of Santa Clara assessor with respect to the payments over a period of ten years or record a notice of assessment in the office of the county of Santa Clara recorder in substantially the following form:

NOTICE OF ASSESSMENT

   Pursuant to the requirements of Sections 12.16.091 to 12.16.097, inclusive, of the Palo Alto Municipal Code, the undersigned director of utilities, or his designee, hereby gives notice of a special assessment in the amount of $ _________ against the following described property: [Insert description]   Notice is further given that the special assessment shall become a lien upon the property described herein upon the filing of the assessment roll or list and the recording of this notice in the office of the county of Santa Clara assessor.

The City of Palo Alto

By:      _____________________________

      Director of Utilities

Dated:   _____________________________

   (b)   The notice of assessment shall set forth the name of the owner of record, the property address, the assessor's parcel number, the legal description of the affected property, and a certification by the director of utilities that the service connection cost has been paid by the city on behalf of the owner of the described affected property against which the lien is filed or recorded. Such lien shall remain a lien until a full release and discharge is made pursuant to the provision of this chapter.

   (c)   Upon the filing of the assessment roll or the recordation of the notice of assessment set forth in Section 12.16.095(a) and (b), the amount of the special assessment shall constitute a lien on the parcel of property described in the notice for the amount of such assessment until paid, with the same priority as special assessment liens established pursuant to Title 13 of this code. All remedies available for the enforcement and collection of liens established under Title 13 shall apply to liens established under this chapter.

(Ord. 4908 § 11, 2006: Ord. 2527 § 5, 1969)

12.16.096 Collection and payment.

   The affected property owner shall pay the assessment and interest to the city in accordance with paragraph (a).

   (a)   The principal amount of each of the assessments shall, upon filing or recordation, become payable in equal annual installments over a period of ten years as set forth in the notice provided for in Section 12.16.092, with interest computed at a rate equal to three-quarters of one percent in excess of the rate shown in the New York Bond Buyer Index of Municipal Bond Average Yields for twenty year bonds for the week next preceding the day on which the underground utility district is ordered formed. The amounts of principal and interest payable on each assessment shall be set forth in the records of the director of utilities and transmitted to the county of Santa Clara assessor. The amounts shown on the director of utilities' record against the respective parcels of land shall be entered on the next tax roll upon which general city taxes are to be collected. Thereafter, such amounts shall be collected at the same time, and in the same manner, as general city taxes are collected, and shall be subject to the same interest and penalties, and the same procedure and sale in case of delinquencies. All laws applicable to the levy, collection and enforcement of city taxes are hereby made applicable to such assessment installments and interest.

(Ord. 4908 § 12, 2006: Ord. 2527 § 6, 1969)

12.16.097 Funding of unpaid assessments.

   The council may, at any time, provide for the issuance of and sell bonds to represent the unpaid principal amounts of any special assessments levied under this chapter under any of the bond plans set forth in Title 13.

(Ord. 2527 § 7, 1969)

12.16.100 Action on noncompliance.

   (a)   In the event the person owning, operating, leasing or renting the affected property does not comply with the provisions of Section 12.16.090 within the time specified therein the director of utilities, or his designee, shall have the authority to order the disconnection and removal of poles, overhead lines and associated overhead structures supplying utility service to the affected property and the utility shall not be thereafter required to provide service to such premises until the owner, tenant or occupant makes the necessary changes.

   (b)   Noncompliance by any person owning, operating, leasing or renting the affected property with the provisions of Section 12.16.090 shall constitute a misdemeanor. Until such time as notice is given pursuant to the provisions of Section 12.16.080 the utility shall not be in violation of this chapter, or any ordinance enacted pursuant to the provisions of Section 12.16.040 in continuing to maintain overhead facilities necessary to serve such person during the period of such noncompliance and such reasonable time thereafter as may be necessary to remove those facilities.

(Ord. 4908 § 13, 2006: Ord. 2231 (part), 1965: prior code § 37.210)