CHAPTER 18
IMPROVEMENT AND SPECIAL DISTRICTS. Revised 11/11

Article 1.    Improvement Procedure Generally

§ 18-1    Improvements and property acquisition generally.

§ 18-2    Procedure in lieu of Special Assessment Investigation Limitation and Majority Protest Act of 1931; applicability of Article.

§ 18-3    Resolution of preliminary determination -- required; purpose.

§ 18-4    Same -- contents.

§ 18-5    Notice of hearing on proposed improvements.

§ 18-6    Filing of written objections.

§ 18-7    Resolution of convenience and necessity.

Article 2.    Special Service Districts

Division 1.    Generally

§ 18-8    Definitions

§ 18-9    Purpose of Article

§ 18-10    Filing and contents of initiating petition

§ 18-11    Action of Planning Commission

§ 18-12    Recommendation of Deputy City Manager of Plans and Public Works

§ 18-13    Action of City Council -- generally

§ 18-14    Same -- resolution of intention

§ 18-15    Same -- public hearing

§ 18-16    Ordinance of formation

§ 18-17    Same -- power and authority of City Council

§ 18-18    Establishment of special fund

§ 18-19    Maximum tax rate

§ 18-20    Annual tax levy

§ 18-21    Loans from general fund

§ 18-22    Certification of charges

§ 18-23    Amendments to districts

§ 18-24    Dissolution of districts

§ 18-25    Appointment of advisory committee

Division 2.    Skyline Service District No. 1.

§ 18-26    Established

§ 18-27    Boundaries and description

§ 18-28    Maximum tax rate

§ 18-29    Services provided

Article 3.    Installation of Underground Facilities.

§ 18-30    Definitions

§ 18-31    Applicability of Article

§ 18-32    Designation of underground utility districts

§ 18-33    Maintenance of aboveground facilities in underground utility districts prohibited

§ 18-34    Notice to affected property owners and utilities

§ 18-35    Granting of exceptions to requirements

§ 18-36    Responsibilities and obligations -- utilities

§ 18-37    Same -- property owners (Ord 3365; 11/05)

§ 18-38    Same -- City

§ 18-39    Extension of time limits in emergencies

§ 18-40    Violations and penalties

Article 4.    Monterey County Tourism Improvement District (Ord 3376; 10/06)

§ 18-41    Authority

§ 18-42    Definitions

§ 18-43    Area Established--Name

§ 18-44    Description of Boundaries

§ 18-45    Levy of Assessment--Use of Proceeds Revised 11/11

§ 18-46    Levy of Assessment--Amount Revised 11/11

§ 18-47    Annual Review of Assessments

§ 18-48    Imposition of Assessment

§ 18-49    Levy of Assessment--Use of Revenue--Authority

§ 18-50    Records

§ 18-51    Levy of Assessment--Collection, Delinquency, and Penalty

§ 18-52    Advisory Board

§ 18-53    Modification or Disestablishment of the District

§ 18-54    Administrative Fee

Article 5.    North Fremont Street Business Improvement District.

§ 18-55    District established.

§ 18-56    Boundaries.

§ 18-57    Tax levied.

§ 18-58    Services provided.

§ 18-59    State law compliance required.

Article 6.    Cannery Row Business Improvement District.

§ 18-60    District established.

§ 18-61    Boundaries.

§ 18-62    Tax levied.

§ 18-63    Services provided.

§ 18-64    State law compliance required.

ARTICLE 1.
IMPROVEMENT PROCEDURE GENERALLY

Sec. 18-1 Improvements and property acquisition generally

All public improvements of any nature and kind whatever and the acquisition of real property for the purpose of making such public improvements, when the cost thereof is to be assessed against properties benefited, except street closings where no assessment is to be levied, shall be done pursuant to the general laws of the state or this Code or any other ordinances of the City.

Sec. 18-2. Procedure in lieu of Special Assessment Investigation Limitation and Majority Protest Act of 1931; applicability of Article.

Whenever any proceedings shall be taken by the City for the construction of any public improvement, for the acquisition of any property for public use or for both, where the cost thereof is to be paid in whole or in part by a special assessment levied upon property, and it appears that public convenience and necessity require the improvement, and the necessary proceedings should be taken without complying with the provisions of the Special Assessment Investigation Limitation and Majority Protest Act of 1931, a public hearing shall be held on such question of public convenience and necessity and such hearing shall be called and notice of the time and place thereof shall be given in accordance with the provisions of this Article.

This Article shall not apply to any proceeding under any ordinance or general law of the state which does not require compliance with the Special Assessment Investigation Limitation and Majority Protest Act of 1931.

Sec. 18-3. Resolution of preliminary determination --required; purpose.

Before adopting any resolution or ordinance of intention, under or pursuant to any improvement procedure act of the state, a resolution of preliminary determination shall be adopted describing the proposed improvement or acquisition and setting a time and place when and where any persons interested may appear and show cause, if any they have, why the City Council should not find and determine that the public convenience and necessity require the proposed improvement without compliance to the Special Assessment Investigation Limitation and Majority Protest Act of 1931.

Sec. 18-4. Same -- contents.

The resolution required by Section 18-3 shall contain the date, hour and place of public hearing where protest shall be heard and notice that all persons interested may file written objections with the City Clerk prior to such time set for hearing, and may personally appear at such hearing. A general description shall be given of the improvement to be made or the property to be acquired and it shall set forth the state law or City regulation under which such improvement or acquisition is intended to be made.

Sec. 18-5. Notice of hearing on proposed improvements

Notice of hearing shall be given to the owners of the properties liable to be assessed to pay the cost and expense of the proposed improvement, which notice shall be given in the following manner:

(a)    A notice setting forth the time and place of the hearing of the public convenience and necessity shall be published twice in the official newspaper of the City at least ten (10) days before the date of such hearing. The first publication shall be before the date of such hearing and the second publication shall be not less than five (5) days before the hearing. The publication of such notice may be combined with that of the resolution of intention.

(b)    There shall be conspicuously posted along the line of the proposed public improvement and not more than three hundred (300) feet in distance apart, but not less than three in all, notices setting forth the time and place of such meeting. Such posting shall be completed at least ten (10)days before the day set for such hearing. Such notices shall be headed and be of a size and form required for a notice of hearing on resolution of intention, by the improvement act under which it is intended to proceed, and they shall briefly describe the proposed improvement. This notice of hearing may be combined with the notice of hearing on the resolution of intention.

Sec. 18-6. Filing of written objections

Any person interested, owning or having an interest in real property within the assessment district at or before the time fixed for a hearing pursuant to this Article may file with the City Clerk a written objection to undertaking the proceedings without first complying with the provisions of the Special Assessment Investigation Limitation and Majority Protest Act of 1931. Such objection shall bear the signature of the objector and contain a description of his property and a statement of the nature of his interest therein.

Sec. 18-7. Resolution of convenience and necessity.

If no protests are filed as provided in this Article, or when such protests have been heard and overruled, the City Council may adopt a resolution finding and determining that the public convenience and necessity require the proposed improvement or acquisitions and that the Special Assessment Investigation Limitation and Majority Protest Act of 1931 shall not apply. Such resolution shall be adopted by no less than four-fifths vote of the City Council and its findings and determinations shall be final and conclusive. Upon adoption of the resolution of convenience and necessity, the City Council shall immediately have jurisdiction to adopt a resolution of intention pursuant to the improvement act under which the improvements or acquisitions are to be made.

ARTICLE 2.
SPECIAL SERVICE DISTRICTS.

DIVISION 1.

GENERALLY.

Sec. 18-8. Definitions.

All words or phrases not otherwise defined in this Code, for the purposes of this Article, shall be as defined in or are commonly used in connection with the proceedings held pursuant to Division 7 of the Streets and Highways Code of the state.

Sec. 18-9. Purpose of Article.

The purpose of this Article is to establish a procedure for the creation and operation of special service districts. Special service districts will provide maintenance services peculiar to those districts, such as maintenance of greenbelt areas, landscaping on rights of way, maintenance of forest preserves and any similar service of special benefit to the residents of a particular area that are not normally provided, or not provided in the same degree to the remainder of the City. Special service districts may also be used for financing relatively small capital improvements and charging the district for the cost thereof by a special tax rather than creating bonded indebtedness.

Sec. 18-10. Filing and contents of initiating petition.

A special service district shall be initiated by a petition, signed by the owners representing 10% or more of the assessed value of all land and improvements within the proposed district. Such petition shall be filed with the City Clerk. Such petition shall contain at least the following:

(a)    A general description of the proposed boundaries.

(b)    A general statement of the services to be performed or the improvements to be made.

(c)    The name and address of each property owner signing the petition and the property owned by each signatory.

(d)    The maximum tax rate to be charged if less than the maximum provided in this Article. If no maximum is stated, it shall be presumed that the petitioners consent to the maximum allowed by this Article.

(e)    The petition may specifically exclude services to be performed by the district.

Sec. 18-11. Action of Planning Commission.

Prior to action thereon by the City Council, a petition filed pursuant to this Article shall be referred to the Planning Commission for recommendation. The Planning Commission may recommend such conditions or changes as it deems advisable. If the Planning Commission does not act within forty-five (45) days from and after the matter is referred by the City Council, it shall be deemed to have approved the petition as submitted.

Sec. 18-12. Recommendation of Deputy City Manager of Plans and Public Works.

Prior to action thereon by the City Council, a petition filed pursuant to this Article shall be referred to the Deputy City Manager of Plans and Public Works, who shall, within sixty (60) days of the date of such referral, make a written recommendation to the City Council. Such recommendation shall include at least the following:

(a)    A legal description of the district boundaries.

(b)    A map or plat of the district.

(c)    A recommendation on the advisability of forming the district, the proposed boundaries and the services to be made or improvements to be constructed.

(d)    An estimate of the annual cost of the services to be performed, including wages, supplies, materials, equipment and other pertinent costs; or if improvements are to be made, an estimate of the total cost of such improvements. Such estimates may include reserves for contingencies.

(e)    An estimate of the tax rate necessary to accomplish the service or improvement. (Ord. 3424 § 1, 2009)

Sec. 18-13. Action of City Council -- generally.

If after receiving and reviewing a petition filed pursuant to this Article, and the recommendations thereto, the City Council determines that the public interest shall be best served by the formation of a district, it shall adopt a resolution of intention, hold a public hearing to receive protests and, provided there are insufficient protests, adopt an ordinance forming the district. The City Council may at any time prior to the adoption of the ordinance forming the district, abandon the proceedings by majority vote. Such abandonment shall not preclude the initiation of new proceedings at any time in the future.

Sec. 18-14. Same -- resolution of intention.

The resolution of intention of the City Council pursuant to the preceding Section shall contain the following:

(a)    The boundaries of the district. Such boundaries may be described by reference to a map or plat on file in the office of the Deputy City Manager of Plans and Public Works.

(b)    The services to be performed or improvement to be made.

(c)    The maximum tax rate to be charged and the date upon which such tax shall become effective.

(d)    The time and place of the public hearing thereon, and a statement that all persons wishing to protest shall do so, in writing, and file such protests with the City Clerk prior to the time of hearing.

(e)    The estimated formation costs to be charged to the district, if any. (Ord. 3424 § 1, 2009)

Sec. 18-15. Same -- public hearing.

(a)    Public Hearing. One public hearing on a proposed district under this Article shall be held before the City Council. Such hearing may be continued from time to time. All persons wishing to speak for or against the proposed district shall be heard, subject to such reasonable regulations as the City Council or Mayor may impose.

(b)    Official protests. Only those protests filed, in writing, with the City Clerk prior to the end of the hearing shall be considered in calculating the majority protest. Each protest shall contain a description of the property sufficient to identify it and the signature of the owner. Where a parcel is owned by more than one person, other than a husband and wife, a protest of one owner shall be deemed a protest of his proportionate share only. Where a parcel is owned by a husband and wife, the signature of either spouse shall be presumed to be authorized by the other spouse and shall be deemed a protest of the entire parcel.

(c)    Majority protest. A majority protest shall be where official protests are filed by persons owning property representing a majority of the assessed value of the total district. Assessed value shall include both land and improvements. A majority protest shall automatically terminate the proceedings without further action of the City Council, and the City Council shall have no jurisdiction to proceed with the formation of the district. A majority protest shall not preclude the reinstitution of proceedings for formation of a district under the same terms and conditions.

(d)    Notice. The resolution of intention shall be published once in a newspaper of general circulation within the City at least ten (10) days prior to the public hearing. The City Clerk shall mail a copy of the resolution of intention to each owner of record within the proposed boundaries appearing on the last equalized assessment roll. Only one notice need be mailed to a person owning more than one parcel within the proposed district. Notices shall be deposited in the United States mail, properly addressed and postage prepaid, at least ten (10) days prior to the hearing. No notice, either published or mailed, shall be required for continued hearings.

Sec. 18-16. Ordinance of formation.

If no majority protest is filed, the City Council may adopt an ordinance establishing a special service district pursuant to this Article. Such ordinance shall contain the following:

(a)    A description of the boundaries of the district. Such description shall be sufficient if it refers to a map or plat on file in the office of the Deputy City Manager of Plans and Public Works.

(b)    A description of the services to be performed or the improvements to be constructed.

(c)    A description of any services that cannot be performed, if any limitation is placed thereon in the petition.

(d)    The duration of the district. If no duration is set, the district shall continue until dissolved pursuant to this Article.

(e)    The maximum tax rate to be imposed and the date on which such tax shall commence.

(f)    The total cost to be charged for forming the district, if such cost is to become a charge against the district. (Ord. 3424 § 1, 2009)

Sec. 18-17. Same -- power and authority of City Council.

On any proceeding to form, amend or dissolve any special service district, the

City Council shall have the following powers:

(a)    To change the boundaries; provided, that no property not included in the resolution of intention shall be included in the district unless the owners thereof file written consent to such inclusion with the City Clerk.

(b)    To abandon the proceedings by motion at any time prior to the adoption of the ordinance establishing the district.

(c)    To hear and determine the validity of all protests.

Sec. 18-18. Establishment of special fund.

The Finance Director shall, when a special service district is formed, establish a special fund bearing the name of the district. All taxes collected shall be credited to such fund and all costs charged against such fund.

Sec. 18-19. Maximum tax rate.

(a)    For a special service district formed for the purpose of providing services, the maximum tax rate shall be $.10 per $100 of assessed valuation of land and improvements; provided, that the ordinance forming the district may establish a lesser maximum tax rate which shall be controlling over this provision.

(b)    For a special service district formed for the purpose of constructing capital improvements, the maximum tax rate shall be $.35 per $100 of assessed valuation of land and improvements. Such amount may not be charged for more than five (5)consecutive years.

(c)    In all events, the City Council may not in any one year assess a tax rate for any parcel of property in excess of any maximum amount established by Charter or general law.

Sec. 18-20. Annual tax levy.

(a)    Services. Annually, the City Council shall establish the tax rate for a special service district formed for the purpose of providing services in the same manner and at the same time as the general City tax rate. The amount of such tax shall be the amount estimated to be necessary to perform the services for the ensuing year, plus any deficit from previous operations, plus any amount deemed necessary as a reserve for contingencies; provided, that the rate may not exceed the maximum rate as established in this Article.

(b)    Improvements. Annually, the City Council shall establish a tax rate for a special service district formed for the purpose of constructing capital improvements in the same manner and at the same time as the general City tax rate; provided, that such rate shall not exceed the maximum limits established in this Article. The amount

estimated to be collected in any one year shall not exceed, when added to any amount previously collected, the total amount necessary to repay any previous expenditures to the district fund, or the amount necessary to pay the estimated cost of the proposed improvement.

Sec. 18-21. Loans from general fund.

(a)    Services. The City Council may, from time to time, transfer from the general funds such amounts as are necessary to make up any deficits occurring in the district funds. Such deficit shall be repaid from the taxes collected in the year as provided in the preceding Section.

(b)    Improvements. The City Council may, at any time after the formation of a district for the construction of improvements, transfer sufficient money to construct the improvement. Such transfer of funds shall be considered a loan at no interest and shall be repaid as provided in subsection (a) above of this Section.

Sec. 18-22. Certification of charges.

All charges to a special service district fund shall be at actual cost. Whenever work is performed for such district by City personnel, the Deputy City Manager of Plans and Public Works shall prepare a certified bill of costs. Such bill shall include all actual wages, including employer contributions, cost of supplies and materials and may include a charge for the use of City equipment at a cost not to exceed its fair rental value. (Ord. 3424 § 1, 2009)

Sec. 18-23. Amendments to district.

The boundaries, maximum tax rate, work to be performed or other matter stated in an ordinance forming a special service district may be amended by the same procedure as provided in this Article for the formation of districts. All persons owning property within the district boundaries, as proposed to be amended, shall have the right of protest.

Sec. 18-24. Dissolution of districts.

(a)    Service districts. Districts formed for the purpose of rendering services may be dissolved at any time by the procedure provided in this Article for the formation thereof; provided, that the City Council may initiate proceedings on its own motion, in which case no petition shall be required. Upon dissolution, the City Council may, and the ordinance dissolving the district may, provide that the tax rate shall be levied for a sufficient period of time necessary to repay any deficit in the district fund at the time of dissolution.

(b)    Improvement districts. Districts formed for the purpose of constructing improvements shall be automatically terminated as follows:

When work has been performed and the cost thereof collected. Such dissolution shall be done by resolution of the City Council, without notice.

(c)    Disposition of funds. When a district is dissolved, any amount remaining in the district fund shall be transferred to the general funds of the City. Any deficit shall be a proper charge against the City and may, in the City Council’s discretion, be paid from general funds.

Sec. 18-25. Appointment of advisory committee.

The City Council may establish an advisory committee within any special service district. Such committee shall be advisory only and shall have no power of management of the district. Such committee shall be established by resolution of the City Council. Such resolution shall establish the number of members, the duties of the committee and other pertinent regulations. Such committee shall be composed of residents or property owners of the district.

The City Council may recognize any duly formed and organized property owners association as the advisory committee.

DIVISION 2.

SKYLINE SERVICE DISTRICT NO. 1

Sec. 18-26. Established.

There is hereby established a special service district pursuant to this Chapter, in accordance with the terms and conditions of this Division, to be known as “Skyline Service District No. 1.”

Sec. 18-27. Boundaries and description.

The boundaries of Skyline Service District No. 1 shall be as shown on that certain map filed for record in the office of the Deputy City Manager of Plans and Public Works on December 15, 1964. (Ord. 3424 § 1, 2009)

Sec. 18-28. Maximum tax rate.

The maximum tax rate that may be levied in Skyline Service District No. 1 shall be $.10 for each $100 of assessed value of all property, real and personal, and all improvements within the district, which tax rate shall commence on the first Monday of March, 1966.

Sec. 18-29. Services provided.

The service to be performed under this Division shall be the maintenance of all publicly-owned greenbelt areas and all landscaped areas within publicly owned greenbelt areas and all landscaped areas within public rights of way; provided, that the City shall not be required to provide any service which exceeds in cost the funds collected from Skyline Service District No. 1 in any one fiscal year, and the City shall not be relieved of its obligation to perform services to the district which are normal and customary in other residential areas of the City. The term “maintenance” as used in this Section shall include planting, replanting, trimming and removal of trees and shrubs; watering, spraying and fertilization; cost of labor, plants and materials used; removal of trash and refuse; repair of decorative and retaining walls; cost of City equipment operation; cost of maintaining a water system to landscaped areas; and all other costs reasonable or necessary to carry out the maintenance of greenbelt and landscaped areas.

ARTICLE 3.
INSTALLATION OF UNDERGROUND FACILITIES.

Sec. 18-30. Definitions.

For the purposes of this Article, the following words and phrases shall have the meanings respectively ascribed to them by this Section:

Poles and overhead wires and associated overhead structures. Poles, towers, supports, wires, conductors, guys, stubs, platforms, crossarms, braces, transformers, insulators, cutouts, switches, communication circuits, appliances, attachments and appurtenances located above-ground, upon, along, across or over the streets, alleys and ways of the City, and used or useful in supplying electric, communication or similar or associated service.

Public utilities commission. The Public Utilities Commission of the state.

Underground utility district. An area in the City within which poles and overhead wires and associated overhead structures are prohibited by an ordinance adopted pursuant to the provisions of this Article.

Utility. All persons or entities supplying electric, communication or similar or associated service by means of electrical materials or devices.

Sec. 18-31. Applicability of Article.

This Article shall not apply to the following types of facilities:

(a)    Poles used exclusively for police and fire alarm boxes or any similar municipal equipment installed under the supervision and to the satisfaction of the City Engineer.

(b)    Poles and overhead wires and associated overhead structures used exclusively for street lighting.

(c)    Wires (exclusive of supporting structures) crossing any portion of an underground utility district from which overhead wires have been prohibited, or connecting to buildings on the perimeter of such portion, when such wires originate in an area from which poles and associated overhead structures are not prohibited.

(d)    Overhead wires attached to the exterior surface of a building by means of a bracket or other fixture and extending from one location on the building to another location on the same building or to an adjacent building without crossing any public street.

(e)    Radio and television antennae, their associated equipment and supporting structures, used by a utility for furnishing communication services.

(f)    Service terminals in pedestals aboveground, used to distribute electric or communication service in underground systems.

Sec. 18-32. Designation of underground utility districts.

The City Council may, from time to time, call public hearings to ascertain whether the public necessity, health or safety requires the removal of poles and overhead wires and associated overhead structures from the public streets, alleys or ways, within designated areas of the City, and requires the underground installation of wires and facilities for supplying electric, communication or similar or associated service. The City Clerk shall notify all affected property owners and utilities by mail of the time and place of such hearings, at least thirty (30) days prior to the date thereof. If after any such public hearing the City Council finds that the public necessity, health or safety requires such removal and such underground installation within any such area, the City Council shall, by ordinance, declare such area an underground utility district. Such ordinance shall include a description of the area comprising such district and shall fix the time within which such poles and overhead wires and associated overhead structures shall be removed and within which affected property owners shall be ready to receive underground service. The City Council shall allow a reasonable time for such removal, having due regard for the availability of necessary labor, materials and equipment for such removal and for the installation of such underground facilities as may be occasioned thereby.

Sec. 18-33. Maintenance of aboveground facilities in underground utility districts prohibited.

Whenever the City Council, by ordinance, declares an area of the City an underground utility district, as provided in this Article, no person or utility shall maintain any pole, overhead wire or associated overhead structure on any public street, alley or way within such district after the date when such overhead facilities are required to be removed.

Sec. 18-34. Notice to affected property owners and utilities.

Within ten days after passage of an ordinance pursuant to this Article, the City Clerk shall notify all affected utilities and all persons owning real property within the underground utility district described in such ordinance of the adoption thereof. The City Clerk shall further notify such property owners of the necessity that if they or any person occupying such property desire to continue to receive electric, communication or other similar or associated service, they or such occupant shall provide all necessary facility changes on their premises so as to receive such service from the lines of the supplying utilities at a new location, subject to applicable rules, regulations and tariffs of the respective utilities on file with the Public Utility Commission and to the requirements of state law and City ordinances.

Notification shall be made by mailing a copy of such ordinance, together with a copy of this Article, to the affected utilities and to affected property owners as such are shown on the last equalized tax roll of the City.

Sec. 18-35. Granting of exceptions to requirements.

The City Council may, in any ordinance enacted pursuant to this Article, grant special permission, on such terms as the City Council may deem appropriate, in cases of emergency or unusual circumstances, without discrimination as to any person or utility, to erect, construct, install, maintain, use or operate poles and overhead wires and associated overhead structures, notwithstanding any other provisions of this Article.

Sec. 18-36. Responsibilities and obligations --utilities.

If underground construction is necessary to provide utility service within the area affected by any ordinance enacted pursuant to this Article, the supplying utility shall furnish that portion of the conduits, conductors and associated equipment required to be furnished by it under its applicable rules, regulations and tariffs on file with the Public Utilities Commission. Underground construction by the utility shall be accomplished in accordance with the rules and regulations authorized by the Public Utilities Commission, and shall be completed within the time for removal of overhead facilities specified in the ordinance enacted pursuant to this Article.

Sec. 18-37. Same -- property owners.

(a)    All underground construction and conduits, conductors and associated equipment necessary to receive utility service between the service terminals of the supplying utility and the service facilities in the building or structure being served shall be provided by the person owning such property, subject to applicable rules, regulations and tariffs of the respective utilities on file with the Public Utilities Commission. If not accomplished by any person within the time provided for in the ordinance adopted pursuant to this Article, the City Engineer shall give notice, in writing, to the person in possession of such premises, and a notice, in writing, to the owner thereof, to provide the required underground facilities within ten (10) days after receipt of such notice.

(b)    Notice pursuant to this Section may be given either by personal service or by mail. In case of service by mail, the notice shall be deposited in the United States mail in a sealed envelope with postage prepaid, addressed to the person in possession of such premises at such premises, and the notice shall be addressed to the owner thereof as such owner’s name appears, and shall be addressed to such owner’s last known address as the same appears, on the last equalized assessment roll of the county, and when no address appears, to General Delivery, City of Monterey, California. If notice is given by mail, such notice shall be deemed to have been received by the person to whom it has been sent within 48 hours after the mailing thereof. If notice is given by mail to either the owner or occupant of such premises, the City Engineer shall, within 48 hours after the mailing thereof, cause a copy thereof, printed on a card not less than eight inches by ten inches in size, to be posted in a conspicuous place on such premises.

(c)    The notice given pursuant to this Section shall particularly specify what work is required to be done, and shall state that if such work is not completed within 30 days after receipt of such notice, the City Engineer will provide such required underground facilities, in which case the cost and expense thereof will be assessed against the property benefited and become a lien upon such property.

(d)    If upon the expiration of the 30-day period specified in this Section, the required underground facilities have not been provided, the City Engineer shall forthwith proceed to do the work; provided, that if such premises are unoccupied and no electric or communication services are being furnished thereto, the City Engineer may, in lieu of providing the required underground facilities, order the disconnection of all existing connections used for furnishing electric and communication services to such premises. Upon completion of the work by the City Engineer, he shall file a written report with the City Council setting forth the fact that the required underground facilities have been provided and cost thereof, together with a legal description of the property against which such cost is to be assessed. The City Council shall thereupon fix a time and place for hearing protests against the assessment of the cost of such work upon such premises, which time shall be not less than ten (10) days thereafter.

(e)    The City Engineer shall forthwith, upon the time for hearing such protests having been fixed, give a notice, in writing, to the person in possession of such premises, and a notice, in writing, to the owner thereof, in the manner provided in this Section for the giving of the notice to provide the required underground facilities, of such report of the time and place that the City Council will pass upon such report of the City Engineer and will hear protests against such assessment. Such notice shall also set forth the amount of the proposed assessment.

(f)    Upon the date and hour set for the hearing of protests, the City Council shall hear and consider the report and all protests, if there by any, and then proceed to affirm, modify or reject the assessment.

(g)    If any assessment is not paid within 5 days after its confirmation by the City Council, the obligation may constitute a lien or, in the alternative, a special assessment against the property on which the violation occurred. The lien or special assessment shall be imposed as provided in Article 3 of Chapter 1 of the Monterey City Code, Sections 1-12 through 1-12.3 inclusive. (Ord 3365; 11/05)

Sec. 18-38. Same -- City.

The City shall remove its police and fire alarm circuits or any similar municipal equipment at its own expense from all poles required to be removed under this Article in ample time to enable the owner or user of such poles to remove the same within the time specified in the ordinance enacted pursuant to this Article.

Sec. 18-39. Extension of time limits in emergencies.

In the event that any act required by this Article or by an ordinance adopted pursuant to this Article cannot be performed within the time provided on account of shortage of materials, war, restraint by public authorities, strikes, labor disturbances or any other circumstances beyond the control of the actor, then the time within which such act will be accomplished shall be extended for a period equivalent to the time of such limitation.

Sec. 18-40. Violations and penalties.

No person shall erect, construct, place, keep, maintain, continue, employ or operate any pole or overhead wire or associated overhead structure on any public street, alley or way within an underground utility district, or neglect to take down and remove any such pole, overhead wire or associated overhead structure within the time designated in an ordinance adopted pursuant to this Article. Each consecutive 15-day period during which the failure to comply with the provisions of this Article shall continue shall constitute a separate offense.

ARTICLE 4.
Monterey County Tourism Improvement District (Ord 3376; 10/06)

Sec. 18-41. Authority.

Pursuant to the Parking and Business Area Law of 1989, California Streets and Highways Code Sections 36500 et seq. (the “Act”), a business improvement area designated as the “Monterey County Tourism Improvement District” (the “District”) is hereby created and established. The lodging businesses within the boundaries of the District established by this ordinance shall be subject to any amendments of the Parking and Business Improvement Area Law of 1989.

Sec. 18-42. Definitions.

For the purposes of this Article, the following words and phrases shall have the meanings respectively ascribed to them by this Section:

“Act” shall mean the Business and Improvement Area Law of 1989, California Streets and Highways Code Sections 36500 to 36551, as amended.

“Administrative fee” shall mean a fee equal to one percent (1%), which the City of Monterey is entitled to retain from the assessments they collect within their boundaries.

“Advisory board” shall mean the advisory board appointed by the Monterey City Council, pursuant to this Article.

“Assessment” shall mean the levy imposed by this Article for the purpose of providing services, activities and programs promoting tourism in the District.

“Business and Improvement Area Law of 1989" shall mean the provisions of California Streets and Highways Code Sections 36500 to 36551, as amended.

“City” shall mean the City of Monterey.

“Cities” shall mean, collectively, as the context may require, all of the cities participating in the MCTID which include the Cities of Monterey, Marina, Carmel by the Sea, Sand City, Del Rey Oaks, Seaside, Salinas, and Soledad.

“City Council” shall mean the City Council of the City of Monterey.

“County” shall mean the County of Monterey.

“District” shall mean the Monterey County Tourism Improvement District created by this Article and as delineated in Section 18-44.

“Full Service” shall mean full-service lodging business properties with food & beverage revenues as defined by Smith Travel Research.

“Limited Service” shall mean limited-service lodging business properties without food & beverage revenues as defined by Smith Travel Research.

“Lodging Business” shall mean any building, portion of any building, or group of buildings in which there are guest rooms or suites, including housekeeping units for transient guests, where lodging with or without meals is provided. This definition includes hotels, motels, and bed and breakfasts. This definition excludes Vacation Time-Share Facilities.

“Occupied” shall mean the use or possession, or the right to the use or possession, of any room or portion thereof in any lodging business facility for dwelling, lodging or sleeping purposes.

“Operator” shall mean the person who is proprietor of the lodging business facility, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, manager or any other capacity. Where the operator performs through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this Article and shall have the same duties and liabilities as his principal. Compliance with the provisions of this Article by either the principal or the managing agent shall be considered to be compliance by both.

“Monterey County Tourism Improvement District” shall mean that area created by this Article as a business improvement area pursuant to the Parking and Business Improvement Area Law of 1989.

Sec. 18-43. Area Established--Name

There is hereby established a parking and business improvement area which shall be known as the “Monterey County Tourism Improvement District,” hereinafter for brevity and convenience sometimes referred to as “MCTID.”

Sec. 18-44. Description of Boundaries.

The boundaries of the MCTID shall be the boundaries of the unincorporated area of the County of Monterey, the City of Monterey, the City of Marina, the City of Carmel by the Sea, Sand City, the City of Del Rey Oaks, the City of Seaside, the City of Salinas, and the City of Soledad.

Sec. 18-45. Levy of Assessment--Use of Proceeds. Revised 11/11

The improvements and activities to be provided in the MCTID will be funded by the levy of the assessments. The City Council hereby finds that the lodging businesses within the MCTID will be benefited by the improvements and activities funded by the assessments to be levied. The revenue from the levy of assessments within MCTID shall not be used to provide improvements or activities outside the MCTID or for any purpose other than the purposes specified in the Resolution of Intention. The proceeds from the MCTID assessment, as hereinafter provided, shall be used to administer marketing programs to promote the County of Monterey as a tourism destination and to fund projects, programs, and activities that benefit lodging businesses within the boundaries of the district. The revenue from the higher assessment collected from lodging businesses in the City of Salinas shall be utilized for local tourism marketing programs for the City of Salinas. (Ord. 3467 § 2, 2011)

Sec. 18-46. Levy of Assessment--Amount. Revised 11/11

The MCTID includes all lodging businesses within the boundaries described in Section 18-44. The assessment shall be levied on all lodging businesses, existing and future, within the MCTID boundaries as follows: in the Cities of Monterey, Marina, Carmel by the Sea, Sand City, Del Rey Oaks, Seaside and Soledad the assessment shall be $2.00 per occupied room per night for full service lodging businesses and $1.00 per occupied room per night for limited service lodging businesses, and in the City of Salinas the assessment shall be $2.50 per occupied room per night for full service lodging businesses and $1.50 per occupied room per night for limited service lodging businesses. Limited and full service shall be as defined by Smith Travel Research. Except where funds are otherwise available, an assessment will be levied annually to pay for the improvements and activities within the area. New hotels within the boundaries of the MCTID will not be exempt from the levy of assessment pursuant to Section 36531 of the Act. Pursuant to the transient occupancy tax ordinances of the County, and the Cities assessments pursuant to the MCTID shall not be included in gross room rental revenue for purpose of determining the amount of transient occupancy tax. (Ord. 3467 § 2, 2011)

Sec. 18-47. Annual Review of Assessments.

All of the assessments imposed pursuant to this Article shall be reviewed by the City Council annually, based upon the annual reports prepared by the advisory board appointed pursuant to this Article and Sections 36530 and 36533 of the California Streets and Highways Code.

Sec. 18-48. Imposition of Assessment.

The assessment imposed by this Article is levied upon the operators of lodging businesses within the District, and the operator of each hotel shall be solely responsible for paying all assessments when due.

Sec. 18-49. Levy of Assessment--Use of revenue--Authority.

The Monterey County Convention and Visitors Bureau, a nonprofit corporation, acting through its board of directors is designated as the MCTID advisory board for the sole purposes of advising the City Council and making recommendations concerning the operation and extent of the MCTID and the methods and ways the revenue derived from the assessment imposed by this chapter shall be used within the scope of the purposes set forth in Section 18-45, and to incur obligations against the funds derived from the assessment only according to policy guidelines the City Council from time to time may establish and direct and to perform only such other powers and duties as the Council from time to time may determine and direct. The City Council shall annually approve a budget which shall include a program of activities intended to carry out the purposes set forth in Section 18-45, accompanied with an estimate of expenditures.

Sec. 18-50. Records.

It shall be the duty of every operator of a lodging business liable for the payment to the applicable cities or the county of any assessment imposed by this Article to keep and preserve, for a period of three years all records as may be necessary to determine the amount of such assessment as he may have been liable for the payment to the applicable cities or the county, which records the applicable cities or the county shall have the right to inspect at a reasonable time and following twenty-four (24) hour prior written notice. The City shall have the right to audit these records at all reasonable time and following twenty-four (24) hour prior written notice.

Sec. 18-51. Levy of Assessment--Collection, Delinquency, and Penalty.

The collection of the assessment imposed by this Article shall be made on an annual basis and shall be collected monthly, quarterly, or bi-monthly from lodging businesses within the boundaries of the District as determined by each jurisdiction. The collection of the assessment shall be collected by each jurisdiction at the same time and in the same manner as transient occupancy tax collections. Each operator shall, on or before the last day of each monthly, quarterly, or bi-monthly reporting period as appropriate, make a report to the Finance Director on forms provided by cities and county, of the amount of assessment due for that reporting period. The report and amount become delinquent the day after they are due. The full amount of the assessment calculated shall be remitted to the Finance Director at the time the return is filed. The Finance Director may establish shorter reporting or remitting periods for any operator and may require additional information in any return. Returns and payments are due immediately upon cessation of business for any reason. Each return shall contain a declaration under penalty of perjury, executed by the operator or its authorized agent, that, to the best of the declarant’s knowledge, the statements in the return are true, correct and complete.

Any operator who fails to remit any assessment imposed by this chapter by the due date shall pay a penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment.

Any operator who fails to remit any delinquent remittance within thirty (30) days shall pay a second delinquency penalty of ten percent (10%) of the amount of the assessment in addition to the amount of the assessment and the ten percent (10%) penalty first imposed.

If an operator fails to remit any delinquent remittance within sixty (60) days the cities and county may file a complaint. In addition to penalties imposed, any lodging business that fails to remit any assessment shall pay interest at the rate of one percent (1%) per month or fraction thereof on the amount of the assessment, exclusive of penalties, from the date on which the assessment first became delinquent, until paid.

If the Finance Director determines that the nonpayment of any remittance due under this chapter is due to fraud, a penalty of twenty-five percent (25%) of the amount of the assessment shall be added thereto in addition to the penalties stated above.

Every penalty imposed and such interest as accrues under the provisions of this section shall become a part of the assessment required to be paid by this Article.

Sec. 18-52. Advisory Board.

An advisory board shall be appointed to advise the City of Monterey on the amount of the District’s assessments and on the programs and activities to be funded by the assessments. Members of the advisory board shall be the same as the members of the Monterey County Convention and Visitors Bureau board of directors.

Sec. 18-53. Modification or Disestablishment of the District.

The City Council, by ordinance, may modify the provisions of this Article and may disestablish the District, after adopting a resolution of intention to such effect. Such resolution shall describe the proposed change or changes, or indicate that it is proposed to disestablish the area, and shall state the time and place of a hearing to be held by the City Council to consider the proposed action.

If the operators of lodging businesses which pay fifty (50) percent or more of the assessments in the District file a petition with the City Clerk requesting the City Council to adopt a resolution of intention to modify or disestablish the district, the City Council shall adopt such resolution and act upon it as required by law. Signatures on such petition shall be those of a duly authorized representative of the operators of lodging businesses in the District.

In the event the resolution proposes to modify any of the provisions of this Article, including changes in the existing assessments or in the existing boundaries of the District, such proceedings shall terminate if protest is made by the operators of lodging businesses which pay fifty (50) percent or more of the assessments in the District, or in the District as it is proposed to be enlarged.

In the event the resolution proposes disestablishment of the District, the City Council shall disestablish the District; unless at such hearing, protest against disestablishment is made by the operators of lodging businesses paying fifty (50) percent or more of the assessments in the District.

Sec. 18-54. Administrative Fee.

Each of the cities and the county shall be entitled to charge an amount equal to one percent (1%) of the assessments collected from operators of lodging businesses within their respective boundaries to defer the administrative costs incurred for the

operation of the District. All assessments, less the aforementioned administrative fee, shall be transferred to the Monterey County Convention and Visitors Bureau (“MCCVB”) within thirty (30) days following collection of the assessment by the applicable cities and the county.

ARTICLE 5.
NORTH FREMONT STREET BUSINESS IMPROVEMENT DISTRICT. (Ord. 3333, 11/03)

Sec. 18-55. District established.

The City Council hereby establishes a business improvement area to be known as the North Fremont Street Business Improvement District. (Ord. 3333 § 4, 2003)

Sec. 18-56. Boundaries.

The boundaries of said North Fremont Street Business Improvement District are shown on Map 1 in this section which is made a part of this article and is described below:

Starting at the corner of Garden Road and North Fremont Street and proceeding east to the City limit, the North Fremont Street Business Improvement District includes all parcels abutting North Fremont Street. Individual parcels not fronting North Fremont Street, but included in the business improvement district area, include: 645 Casanova Avenue (APN: 013-151-019); 351 Kolb Street (APN: 013132-015); 345 Kolb Street (APN: 013-132-016), and 575 Hannon Avenue (APN: 013-132-017).

(Ord. 3333 § 5, 2003)

Sec. 18-57. Tax levied.

All businesses in the district shall be subject to an annual tax in the amount equivalent to twenty-five percent (25%) of the annual business license tax for each business located within the proposed district, up to a maximum assessment of $500 per business. Businesses which are lawfully exempt from business license taxation shall be requested to voluntarily make equitable contributions. These fees shall be assessed and collected annually as part of the City’s business license renewal process. (Ord. 3333 § 6, 2003)

Sec. 18-58. Services provided.

The following improvements and activities within the district shall be funded by the levy of assessments described in Section 18-57:

(a)    Promotion of public events within the area and undertaking of various promotional activities to benefit businesses within the business improvement district.

(b)    Funding of public improvements and decorations to improve the physical appearance and attractiveness of the area.

(c)    Administration of the North Monterey Business Association, undertaking of other promotional activities and special events which benefit the area, as well as other permitted uses for such funds as set forth in the Parking and Business Improvement Area Law of 1989.

The revenue from the levy of assessments within the district shall not be used to provide improvements or activities outside the area or for any purpose other than those specified in the Resolution of Intent No. 03-129 C.S., adopted by the City Council on the 7th day of October 2003. (Ord. 3333 § 7, 2003)

Sec. 18-59. State law compliance required.

Businesses in the North Fremont Street Business Improvement District established by this article shall be subject to any amendments to the Parking and Business Improvement Area Law of 1989 (at Streets and Highways Code Section 36500 et seq.). (Ord. 3333 § 8, 2003)

ARTICLE 6.
CANNERY ROW BUSINESS IMPROVEMENT DISTRICT. (Ord. 3343, 7/04)

Sec. 18-60. District established.

The City Council hereby establishes a business improvement district to be known as the Cannery Row Business Improvement District. (Ord. 3343 § 4, 2004)

Sec. 18-61. Boundaries.

The boundaries of said Cannery Row Business Improvement District are shown on Map 1 in this section which is made a part of this article and is described below:

Starting at the corner of the Monterey Peninsula Recreation Trail and entrance to the Coast Guard Pier, the Cannery Row Business Improvement District includes the properties between the recreation trail and Monterey Bay up to the intersection of Drake Avenue and the recreation trail. At Drake Avenue, the Cannery Row Business Improvement District continues to the City’s western boundary and includes all properties abutting Wave Street and all properties to the Monterey Bay.

(Ord. 3343 § 5, 2004)

Sec. 18-62. Tax levied.

All businesses in the district shall be subject to an annual assessment in the amount equivalent to a one hundred percent (100%) surcharge to the business license fee of each business up to a maximum of $5,000 (except for professional services). For businesses classified as professional services, the assessment shall be twenty-five percent (25%) surcharge to the business license fee up to a maximum of $500 per fiscal year. These fees shall be assessed and collected annually at the beginning of each City fiscal year. (Ord. 3343 § 6, 2004)

Sec. 18-63. Services provided.

The following improvements and activities within the district shall be funded by the levy of assessments described In Section 18-62:

(a)    Improve traffic and parking in Cannery Row;

(b)    Improve streetscape cleanliness (such as improved trash service, sidewalk cleaning, etc.);

(c)    Improve the physical appearance and attractiveness of the area;

(d)    Improve the area’s economic vitality;

(e)    Advocate Cannery Row Business Improvement District projects and interests;

(f)    Improve public safety services;

(g)    Administration of the Cannery Row Business Improvement District, as well as other permitted uses for such funds as set forth in the Parking and Business Improvement Area Law of 1989. (Ord. 3343 § 7, 2004)

Sec. 18-64. State law compliance required.

Businesses in the Cannery Row Business Improvement District established by this article shall be subject to any amendments to the Parking and Business Improvement Area Law of 1989 (at Streets and Highways Code Section 36500 et seq.). (Ord. 3343 § 8, 2004)