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The Board of Supervisors may elect to use the procedures set forth in California Streets and Highways Code Sections 36600 et seq. or may elect to use those procedures as modified herein by this Article, for the formation of property and business improvement districts and the levy of assessments that will fund activities and improvements that confer benefits on businesses, and/or on residential, commercial, or residential and commercial properties.
(a) Notwithstanding Streets and Highways Code Section 36621(a) or any other provision of state law to the contrary, the Board of Supervisors may initiate proceedings to establish a property and business improvement district upon receipt of a petition signed by property owners, business owners, or a combination of property owners and business owners in the proposed district who will pay at least 30 percent of the assessments proposed to be levied.
(1) The amount of assessments attributable to properties and businesses owned by the same owner that is in excess of 25 percent of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by the property owners or business owners who will pay the requisite 30 percent or more of the total amount of assessments proposed to be levied.
(2) Notwithstanding Streets and Highways Code Section 36623(b) or any other provision of state law to the contrary, where the Board of Supervisors initiates proceedings pursuant to this subsection (a) to levy assessments on businesses, the Board shall conduct the protest proceeding by ballot rather than by oral or written protests.
(b) Notwithstanding Streets and Highways Code Section 36622(h) or any other provision of state law to the contrary, the Board of Supervisors may form a district and levy assessments:
(1) For a maximum term of up to 15 years, or such longer term as is authorized by state law; or,
(2) For a maximum term of up to 40 years, if all or a portion of the assessments will be pledged or applied to pay any bond, financing lease (including any certificates of participation therein), or other similar obligations of the City. Such assessments may be pledged or applied to pay such obligations commencing when the assessments are levied, or such later date as the Board of Supervisors shall determine.
(c) Notwithstanding Streets and Highways Code Section 36632(c) or any other provision of state law to the contrary, the Board of Supervisors may:
(1) establish a district pursuant to this Article that encompasses properties zoned for residential use;
(2) levy assessments upon such properties; and
(3) fund improvements and activities that benefit such properties.
(d) Notwithstanding any provision of state law to the contrary, the Board of Supervisors may authorize a district formed pursuant to this Article to recover through assessments the costs incurred in forming the district, including but not limited to:
(1) The costs of preparation of the management district plan and engineer's report required by state law;
(2) The costs of circulating and submitting the petition to the Board of Supervisors seeking establishment of the district;
(3) The costs of printing, advertising and the giving of published, posted or mailed notices;
(4) The costs of engineering, consulting, legal or other professional services provided in proceedings under this Article or Streets and Highways Code Sections 36600 et seq.; and
(5) Costs of any ballot proceedings required by this Article 15 or other law for approval of a new or increased assessment.
In order to recover these costs, the management district plan required pursuant to Streets and Highways Code Section 36622 shall specify the formation costs eligible for recovery through assessments, the schedule for recovery of those costs, and the basis for determining the amount of the additional assessment for recovery of such costs, including the maximum amount of the additional assessment, expressed either as a dollar amount, or as a percentage of the underlying assessment.
(e) Notwithstanding Streets and Highways Code Section 36670 or any other provision of state law to the contrary, the Board of Supervisors may, by a supermajority vote of eight or more members, notice a hearing and initiate proceedings to disestablish for any reason a district formed after April 4, 2004. Where the Board of Supervisors seeks to disestablish a district in circumstances not authorized under Streets and Highways Code Section 36670, both the resolution of intention to disestablish the district and any final resolution to disestablish the district shall require a supermajority vote of no fewer than eight members.
(f) The Board of Supervisors, however, may not disestablish a district under Section 1511(e) or Streets and Highways Code Section 36670 or any other provision of law, where there are any outstanding bond, financing lease (including any certificates of participation therein), or other similar obligations of the City, payable from or secured by assessments levied within the district.
(g) Notwithstanding Streets and Highways Code Section 36640 or any other provision of state law to the contrary:
(1) The Board of Supervisors may, in the resolution to establish the district, determine and declare that any bond, financing lease (including any certificates of participation therein), or other similar obligations of the City, shall be issued to finance the estimated costs of some or all of the proposed improvements or activities described in such resolution, pursuant to the City Charter, City ordinances or state law, as the Board may determine; and
(2) The amount (including interest) of any City bond, financing lease (including any certificates of participation therein) or other similar obligations, may not exceed the estimated total of (A) revenues to be raised from the assessments over the term of the district, plus (B) such other monies, if any, to be available for such purpose, in each case determined as of the date such obligations are issued or incurred.
(h) The management district plan submitted for each proposed district to be funded under this Article shall ensure adequate representation on the governing body of the owners' association, of business owners located within the district who do not own, or have an ownership interest in, commercial property located within the district. Not less than 20 percent of voting members of the owners' association shall be such business owners. Where warranted by the circumstances in a proposed district, the Board of Supervisors may require that the management district plan provide a greater level of business owner representation. This subsection (h) shall not limit the authority of the Board of Supervisors to require the incorporation of any other item or matter into the management district plan under Streets and Highways Code Section 36622(l) or other applicable law.
(i) No fewer than 30 days after the Clerk of the Board receives a complete petition seeking formation of a district pursuant to this Article, the Clerk shall mail notice to all businesses located within the proposed district holding a current registration certificate issued by the Tax Collector. The notice shall be in English, Spanish and Cantonese, and shall inform the recipients:
(1) That a petition for formation of a property and business improvement district has been received;
(2) That if the district is formed, assessments will be levied against property and/or businesses in the district;
(3) That formation of the district is subject to the approval of the Board of Supervisors following public hearings and a ballot proceeding by owners of the property, businesses, or both, subject to the assessment; and,
(4) How recipients may obtain further information about the petition and proposed district.
(Added by Ord. 32-04; File No. 031609, App. 3/5/2004; amended by Ord. 268-06, File No. 061320, App. 10/31/2006; Ord. 239-12 , File No. 120963, App. 12/7/2012, Eff. 1/6/2013)
(Former Sec. 1511 added by Ord. 157-95, App. 5/12/95; renumbered as Sec. 1510 and amended by Ord. 32-04)