2005 California Streets and Highways Code Sections 5898.20-5898.32 Article 2. Creation of Contractual Assessment Program ..

5898.20.  (a) The legislative body of any city may determine that it
would be convenient and advantageous to designate an area within the
city, which may encompass the entire city or a lesser portion,
within which authorized city officials and property owners may enter
into contractual assessments and to make financing arrangements
pursuant to this chapter.
   (b) The legislative body shall make these determinations by
adopting a resolution indicating its intention to do so.  The
resolution of intention shall include a statement that the city
proposes to make contractual assessment financing available to
property owners, shall identify the kinds of public works which may
be financed, shall describe the boundaries of the area within which
contractual assessments may be entered into, and shall briefly
describe the proposed arrangements for financing the program.  The
resolution shall state that a public hearing should be held at which
interested persons may object to or inquire about the  proposed
program or any of its particulars, and shall state the time and place
of the hearing.  The resolution shall direct an appropriate city
official to prepare a report pursuant to Section 5898.22.
5898.22.  The report shall contain all of the following:
   (a) A map showing the boundaries of the territory within which
contractual assessments are proposed to be offered.
   (b) A draft contract specifying the terms and conditions that
would be agreed to by a property owner within the contractual
assessment area and the city.
   (c) A statement of city policies concerning contractual
assessments including all of the following:
   (1) Identification of types of facilities which may be financed
through the use of contractual assessments.
   (2) Identification of a city official authorized to enter into
contractual assessments on behalf of the city.
   (3) A maximum aggregate dollar amount of contractual assessments.
   (4) A method for setting requests from property owners for
financing through contractual assessments in priority order in the
event that requests appear likely to exceed the authorization amount.
   (d) A plan for raising a capital amount required to pay for work
performed pursuant to contractual assessments.  The plan may include
amounts to be advanced by the city through funds available to it from
any source.  The plan may include the sale of a bond or bonds or
other financing relationship pursuant to Section 5898.28.  The plan
shall include a statement of or method for determining the interest
rate and time period during which contracting property owners would
pay any assessment.  The plan shall provide for any reserve fund or
funds.  The plan shall provide for the apportionment of all or any
portion of the costs incidental to financing, administration, and
collection of the contractual assessment program among the consenting
property owners and the city.
5898.24.  A notice of the hearing shall be published pursuant to
Section 6066 of the Government Code, and the first publication shall
occur not later than 20 days before the date of the hearing.
5898.26.  At the time of the hearing, the report shall be summarized
and the legislative body shall afford all persons who are present an
opportunity to comment upon, object to, or present evidence with
regard to the proposed contractual assessment program, the extent of
the area proposed to be included within the program, the terms and
conditions of the draft contract, or the proposed financing
provisions.  At the conclusion of the hearing, the legislative body
may adopt a resolution confirming the report or may direct its
modification in any respect, and thereafter may adopt a resolution
confirming the report as modified, or the legislative body may
abandon the proceedings.  However, the legislative body may not
increase the area within which contractual assessments would be
offered without providing notice of the proposed increase in area
pursuant to Section 5808.24.  The hearing may be continued from time
to time not exceeding a total of 180 days.
5898.28.  A city may issue bonds pursuant to this chapter, the
principal and interest for which would be repaid by contractual
assessments.  A city may advance its own funds to finance work to be
repaid through contractual assessments, and may from time to time
sell bonds to reimburse itself for such advances.  A city may enter
into a relationship with an underwriter or financial institution that
would allow the sequential issuance of a series of bonds, each bond
being issued as the need arose to finance work to be repaid through
contractual assessments.  The interest rate of each bond may be
determined by an appropriate index, but shall be fixed at the time
each bond is issued.  Bond proceeds may be used to establish a
reserve fund, and to pay for expenses incidental to the issuance and
sale of the bonds.  Division 10 (commencing with Section 8500) shall
apply to any bonds issued pursuant to this section, insofar as that
division is not in conflict with this chapter.
5898.30.  Assessments levied pursuant to this chapter, and the
interest and any penalties thereon shall constitute a lien against
the lots and parcels of land on which they are made, until they are
paid.  Division 10 (commencing with Section 8500) applies to the levy
and collection of assessments levied pursuant to this chapter,
insofar as those provisions are not in conflict with the provisions
of this chapter, including, but not limited to, any penalties and
remedies and  lien priorities in the event of delinquency and
default.
5898.32.  The legislative body shall direct its clerk to record a
notice of the existence and amount of each contractual assessment
with the county recorder of the county in which the lot or parcel is
located.  The county recorder shall accept those filings and may
charge the clerk a fee for recording those documents pursuant to
Section 3116.  The failure of the clerk or recorder to perform the
filings shall not subject the local agency or any of its officers or
employees to civil liability.