Chapter 4. Governance of California Streets And Highways Code >> Division 18. >> Part 8. >> Chapter 4.
Notwithstanding any other provision of this part, an owners'
association shall comply with the Ralph M. Brown Act (Chapter 9
(commencing with Section 54950) of Part 1 of Division 2 of Title 5 of
the Government Code), at all times when matters within the subject
matter of the district are heard, discussed, or deliberated, and with
the California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code), for
all documents relating to activities of the district.
(a) The owners' association shall cause to be prepared a
report for each fiscal year, except the first year, for which
assessments are to be levied and collected to pay the costs of the
improvements and activities described in the report. The owners'
association's first report shall be due after the first year of
operation of the district. The report may propose changes, including,
but not limited to, the boundaries of the district or any benefit
zones within the district, the basis and method of levying the
assessments, and any changes in the classification of property,
including any categories of business, if a classification is used.
(b) The report shall be filed with the clerk and shall refer to
the district by name, specify the fiscal year to which the report
applies, and, with respect to that fiscal year, shall contain all of
the following information:
(1) Any proposed changes in the boundaries of the district or in
any benefit zones or classification of property or businesses within
the district.
(2) The improvements and activities to be provided for that fiscal
year.
(3) An estimate of the cost of providing the improvements and the
activities for that fiscal year.
(4) The method and basis of levying the assessment in sufficient
detail to allow each real property or business owner, as appropriate,
to estimate the amount of the assessment to be levied against his or
her property or business for that fiscal year.
(5) The amount of any surplus or deficit revenues to be carried
over from a previous fiscal year.
(6) The amount of any contributions to be made from sources other
than assessments levied pursuant to this part.
(c) The city council may approve the report as filed by the owners'
association or may modify any particular contained in the report and
approve it as modified. Any modification shall be made pursuant to
Sections 36734 and 36735.
(d) The city council shall not approve a change in the basis and
method of levying assessments that would impair an authorized or
executed contract to be paid from the revenues derived from the levy
of assessments, including any commitment to pay principal and
interest on any bonds issued on behalf of the district.
The management district plan may, but is not required to,
state that an owners' association will provide the improvements or
activities described in the management district plan. If the
management district plan designates an owners' association, the city
shall contract with the designated nonprofit corporation to provide
services.
(a) Any district previously established whose term has
expired, may be renewed by following the procedures for establishment
as provided in this chapter.
(b) Upon renewal, any remaining revenues derived from the levy of
assessments, or any revenues derived from the sale of assets acquired
with the revenues, shall be transferred to the renewed district. If
the renewed district includes additional parcels or businesses not
included in the prior district, the remaining revenues shall be spent
to benefit only the parcels or the businesses in the prior district.
If the renewed district does not include parcels or the businesses
included in the prior district, the remaining revenues attributable
to these parcels shall be refunded to the owners of these parcels or
businesses.
(c) Upon renewal, a district shall have a term not to exceed 10
years. There is no requirement that the boundaries, assessments,
improvements, or activities of a renewed district be the same as the
original or prior district.
(a) Any district established or extended pursuant to the
provisions of this part, where there is no indebtedness, outstanding
and unpaid, incurred to accomplish any of the purposes of the
district, may be disestablished by resolution by the city council in
either of the following circumstances:
(1) If the city council finds there has been a misappropriation of
funds, malfeasance, or a violation of law in connection with the
management of the district, it shall notice a hearing on
disestablishment.
(2) During the operation of the district, there shall be a 30-day
period each year in which assessees may request disestablishment of
the district. The first such period shall begin one year after the
date of establishment of the district and shall continue for 30 days.
The next such 30-day period shall begin two years after the date of
the establishment of the district. Each successive year of operation
of the district shall have such a 30-day period. Upon the written
petition of the owners of real property or of businesses in the area
who pay 50 percent or more of the assessments levied, the city
council shall pass a resolution of intention to disestablish the
district. The city council shall give notice of the public hearing on
the proposed disestablishment.
(b) The city council shall adopt a resolution of intention to
disestablish the district prior to the public hearing required by
this section. The resolution shall state the reason for the
disestablishment, shall state the time and place of the public
hearing, and shall contain a proposal to dispose of any assets
acquired with the revenues of the assessments levied within the
district. The notice of the hearing on the proposed disestablishment
required by this section shall be given by mail to the property owner
of each parcel or to the owner of each business subject to
assessment in the district, as appropriate. The city shall conduct
the public hearing not less than 30 days after mailing the notice to
the property or business owners. The public hearing shall be held not
more than 60 days after the adoption of the resolution of intention.
(a) Upon the disestablishment of a district, any remaining
revenues, after all outstanding debts are paid, derived from the levy
of assessments, or derived from the sale of assets acquired with the
revenues, or from bond reserve or construction funds, shall be
refunded to the owners of the property or businesses then located and
operating within the district in which assessments were levied by
applying the same method and basis that was used to calculate the
assessments levied in the fiscal year in which the district is
disestablished. All outstanding assessment revenue collected after
disestablishment shall be spent on improvements and activities
specified in the management district plan.
(b) If the disestablishment occurs before an assessment is levied
for the fiscal year, the method and basis that was used to calculate
the assessments levied in the immediate prior fiscal year shall be
used to calculate the amount of any refund.