2007 California Government Code Article 2. Proceedings To Create A Community Facilities District

CA Codes (gov:53318-53329.5)

53318.  Proceedings for the establishment of a community facilities
district may be instituted by the legislative body on its own
initiative and shall be instituted by the legislative body when any
of the following occurs:
   (a) A written request for the establishment of a district, signed
by two members of the legislative body, describing the boundaries of
the territory that is proposed for inclusion in the area and
specifying the type or types of facilities and services to be
financed by the district, is filed with the legislative body.
   (b) A petition requesting the institution of the proceedings
signed by the requisite number of registered voters, as specified in
subdivision (d) of Section 53319, describing the boundaries of the
territory that is proposed for inclusion in the area and specifying
the type or types of facilities and services to be financed by the
district, is filed with the clerk of the legislative body. The
petition may consist of any number of separate instruments, each of
which shall comply with all of the requirements of the petition,
except as to the number of signatures.
   (c) A petition requesting the institution of the proceedings
signed by landowners owning the requisite portion of the area of the
proposed district, as specified in subdivision (d) of Section 53319,
describing the boundaries of the territory that is proposed for
inclusion in the area and specifying the type or types of facilities
and services to be financed by the district, is filed with the clerk
of the legislative body.
   (d) The written request filed pursuant to subdivision (a) and the
petition filed pursuant to subdivision (b) are not required to be
acted upon until the payment of a fee in an amount that the
legislative body determines, within 45 days of receiving the request
or petition, is sufficient to compensate the legislative body for all
costs incurred in conducting proceedings to create a district
pursuant to this chapter. A petition filed pursuant to subdivision
(c) may not be acted upon until payment of a fee in an amount that
the legislative body determines, within 45 days of receiving the
petition, is sufficient to compensate the legislative body for all
costs incurred in conducting proceedings to create a district
pursuant to this chapter.


53318.5.  Notwithstanding any provision of Part 1 (commencing with
Section 56000) of Division 3, a local agency formation commission
shall have no power or duty to review and approve or disapprove a
proposal to create a community facilities district or a proposal to
annex territory to, or detach territory from, such district, pursuant
to this chapter.



53319.  A petition requesting the institution of proceedings for the
establishment of a community facilities district shall do all of the
following:
   (a) Request the legislative body to institute proceedings to
establish a community facilities district pursuant to this chapter.
   (b) Describe the boundaries of the territory that is proposed for
inclusion in the district.
   (c) State the type or types of facilities and services proposed to
be financed by the district, which may include proposals for any
additional information specified by Sections 53321, 53325.7, and
53345.
   (d) Be signed by not less than 10 percent of the registered voters
residing within the territory proposed to be included within the
district or by owners of not less than 10 percent of the area of land
proposed to be included within the district and not proposed to be
exempt from the special tax. If the legislative body finds that the
petition is signed by the requisite number of registered voters
residing within the territory proposed to be included within the
district or by the requisite number of owners of land proposed to be
included within the district, that finding shall be final and
conclusive.



53320.  Within 90 days after either a written request by two members
of the legislative body or a petition requesting the institution of
proceedings for the establishment of a community facilities district
is filed with the legislative body and the payment of any fee
required under subdivision (d) of Section 53318, the legislative body
shall adopt a resolution of intention to establish a community
facilities district in the form specified in Section 53321.



53321.  Proceedings for the establishment of a community facilities
district shall be instituted by the adoption of a resolution of
intention to establish the district which shall do all of the
following:
   (a) State that a community facilities district is proposed to be
established under the terms of this chapter and describe the
boundaries of the territory proposed for inclusion in the district,
which may be accomplished by reference to a map on file in the office
of the clerk, showing the proposed community facilities district.
The boundaries of the territory proposed for inclusion in the
district shall include the entirety of any parcel subject to taxation
by the proposed district.
   (b) State the name proposed for the district in substantially the
following form: "Community Facilities District No. ____."
   (c) Describe the public facilities and services proposed to be
financed by the district pursuant to this chapter. The description
may be general and may include alternatives and options, but it shall
be sufficiently informative to allow a taxpayer within the district
to understand what the funds of the district may be used to finance.
If the purchase of completed public facilities or the incurring of
incidental expenses is proposed, the resolution shall identify those
facilities or expenses. If facilities are proposed to be financed
through any financing plan, including, but not limited to, any lease,
lease-purchase, or installment-purchase arrangement, the resolution
shall briefly describe the proposed arrangement.
   (d) State that, except where funds are otherwise available, a
special tax sufficient to pay for all facilities and services,
secured by recordation of a continuing lien against all nonexempt
real property in the district, will be annually levied within the
area. The resolution shall specify the rate, method of apportionment,
and manner of collection of the special tax in sufficient detail to
allow each landowner or resident within the proposed district to
estimate the maximum amount that he or she will have to pay. The
legislative body may specify conditions under which the obligation to
pay the specified special tax may be prepaid and permanently
satisfied. The legislative body may specify conditions under which
the rate of the special tax may be permanently reduced in compliance
with the provisions of Section 53313.9.
   In the case of any special tax to pay for public facilities and to
be levied against any parcel used for private residential purposes,
(1) the maximum special tax shall be specified as a dollar amount
which shall be calculated and thereby established not later than the
date on which the parcel is first subject to the tax because of its
use for private residential purposes, which amount shall not be
increased over time except that it may be increased by an amount not
to exceed 2 percent per year, (2) the resolution shall specify a tax
year after which no further special tax subject to this sentence
shall be levied or collected, except that a special tax that was
lawfully levied in or before the final tax year and that remains
delinquent may be collected in subsequent years, and (3) the
resolution shall specify that under no circumstances will the special
tax levied in any fiscal year against any parcel subject to this
sentence be increased as a consequence of delinquency or default by
the owner or owners of any other parcel or parcels within the
district by more than 10 percent above the amount that would have
been levied in that fiscal year had there never been any such
delinquencies or defaults. For purposes of this paragraph, a parcel
shall be considered "used for private residential purposes" not later
than the date on which an occupancy permit for private residential
use is issued. Nothing in this paragraph is intended to prohibit the
legislative body from establishing different tax rates for different
categories of residential property, or from changing the dollar
amount of the special tax for the parcel if the size of the residence
is increased or if the size or use of the parcel is changed.
   (e) Fix a time and place for a public hearing on the establishment
of the district which shall be not less than 30 or more than 60 days
after the adoption of the resolution.
   (f) Describe any adjustment in property taxation to pay prior
indebtedness pursuant to Sections 53313.6 and 53313.7.
   (g) Describe the proposed voting procedure.
   The changes made to this section by Senate Bill 1464 of the
1991-92 Regular Session of the Legislature shall not apply to special
taxes levied by districts for which a resolution of formation was
adopted before January 1, 1993.


53321.5.  At the time of the adoption of the resolution of intention
to establish a community facilities district, the legislative body
shall direct each of its officers who is or will be responsible for
providing one or more of the proposed types of public facilities or
services to be financed by the district, if it is established, to
study the proposed district and, at or before the time of the
hearing, file a report with the legislative body containing a brief
description of the public facilities and services by type that will
in his or her opinion be required to adequately meet the needs of the
district and his or her estimate of the cost of providing those
public facilities and services. If the purchase of completed public
facilities or the payment of incidental expenses is proposed, the
legislative body shall direct its appropriate officer to estimate the
fair and reasonable cost of those facilities or incidental expenses.
If removal or remedial action for the cleanup of any hazardous
substance is proposed, the legislative body shall (a) direct its
responsible officer to prepare or cause to be prepared, a remedial
action plan based upon factors comparable to those described in
subdivision (d) of Section 25356.1 of the Health and Safety Code or
(b) determine, on the basis of the particular facts and
circumstances, that shall be comparable to those described in
subdivision (h) of Section 25356.1 of the Health and Safety Code,
that the remedial action plan is not required or (c) condition
financing of the removal or remedial action upon approval of a
remedial action plan pursuant to Section 25356.1 of the Health and
Safety Code. All of those reports shall be made a part of the record
of the hearing on the resolution of intention to establish the
district.



53322.  (a) The clerk of the legislative body shall publish a notice
of the hearing pursuant to Section 6061 in a newspaper of general
circulation published in the area of the proposed district.
Publication shall be complete at least seven days prior to the date
of the hearing.
   (b) The notice shall contain all of the following information:
   (1) The text or a summary of the resolution of intention to
establish the district which may refer to documents on file in the
office of the clerk for detail.
   (2) The time and place of the hearing on the establishment of the
district.
   (3) A statement that at the hearing the testimony of all
interested persons or taxpayers for or against the establishment of
the district, the extent of the district, or the furnishing of
specified types of public facilities or services will be heard.  The
notice shall also describe, in summary, the effect of protests made
by registered voters or landowners against the establishment of the
district, the extent of the district, the furnishing of a specified
type of facilities or services, or a specified special tax, as
provided in Section 53324.
   (4) A description of the proposed voting procedure.




53322.4.  The clerk of the legislative body may also give notice of
the hearing by first-class mail to each registered voter and to each
landowner within the proposed district. This notice shall contain the
same information as is required to be contained in the notice
published pursuant to Section 53322.



53323.  At the hearing, protests against the establishment of the
district, the extent of the district, or the furnishing of specified
types of public facilities or services within the district may be
made orally or in writing by any interested person. Any protests
pertaining to the regularity or sufficiency of the proceedings shall
be in writing and shall clearly set forth the irregularities and
defects to which objection is made. Any written protest not
personally presented by the author of that protest at the hearing
shall be filed with the clerk of the legislative body at or before
the time fixed for the hearing. The legislative body may waive any
irregularities in the form or content of any written protest and at
the hearing may correct minor defects in the proceedings. Written
protests may be withdrawn in writing at any time before the
conclusion of the hearing.



53324.  If 50 percent or more of the registered voters, or six
registered voters, whichever is more, residing within the territory
proposed to be included in the district, or the owners of one-half or
more of the area of the land in the territory proposed to be
included in the district and not exempt from the special tax, file
written protests against the establishment of the district, and
protests are not withdrawn so as to reduce the value of the protests
to less than a majority, no further proceedings to create the
specified community facilities district or to authorize the specified
special tax shall be taken for a period of one year from the date of
the decision of the legislative body.
   If the majority protests of the registered voters or of the
landowners are only against the furnishing of a specified type or
types of facilities or services within the district, or against
levying a specified special tax, those types of facilities or
services or the specified special tax shall be eliminated from the
resolution of formation.



53325.  The hearing may be continued from time to time, but shall be
completed within 30 days, except that if the legislative body finds
that the complexity of the proposed district or the need for public
participation requires additional time, the hearing may be continued
from time to time for a period not to exceed six months. The
legislative body may modify the resolution of intention by
eliminating proposed facilities or services, or by changing the rate
or method of apportionment of the proposed special tax so as to
reduce the maximum special tax for all or a portion of the owners of
property within the proposed district, or by removing territory from
the proposed district. Any modifications shall be made by action of
the legislative body at the public hearing. If the legislative body
proposes to modify the resolution of intention in a way that will
increase the probable special tax to be paid by the owner of any lot
or parcel, it shall direct that a report be prepared that includes a
brief analysis of the impact of the proposed modifications on the
probable special tax to be paid by the owners of lots or parcels in
the district, and shall receive and consider the report before
approving the modifications or any resolution of formation that
includes those modifications. The legislative body shall not modify
the resolution of intention to increase the maximum special tax or to
add territory to the proposed district. At the conclusion of the
hearing, the legislative body may abandon the proposed establishment
of the community facilities district or may, after passing upon all
protests, determine to proceed with establishing the district.



53325.1.  (a) If the legislative body determines to establish the
district, it shall adopt a resolution of formation establishing the
district. The resolution of formation shall contain all of the
information required to be included in the resolution of intention to
establish the district specified in Section 53321. If a special tax
is proposed to be levied in the district to pay for any facilities or
services and the special tax has not been eliminated by majority
protest pursuant to Section 53324, the resolution shall:
   (1) State that the proposed special tax to be levied within the
district has not been precluded by majority protest pursuant to
Section 53324.
   (2) Identify any facilities or services proposed to be funded with
the special tax.
   (3) Set forth the name, address, and telephone number of the
office, department, or bureau that will be responsible for preparing
annually a current roll of special tax levy obligations by assessor's
parcel number and that will be responsible for estimating future
special tax levies pursuant to Section 53340.2.
   (4) State that upon recordation of a notice of special tax lien
pursuant to Section 3114.5 of the Streets and Highways Code, a
continuing lien to secure each levy of the special tax shall attach
to all nonexempt real property in the district and this lien shall
continue in force and effect until the special tax obligation is
prepaid and permanently satisfied and the lien canceled in accordance
with law or until collection of the tax by the legislative body
ceases.
   (5) Set forth the county of recordation and the book and page in
the Book of Maps of Assessments and Community Facilities Districts in
the county recorder's office where the boundary map of the proposed
community facilities district has been recorded pursuant to Sections
3111 and 3113 of the Streets and Highways Code.
   (b) In the resolution of formation adopted pursuant to subdivision
(a), the legislative body shall determine whether all proceedings
were valid and in conformity with the requirements of this chapter.
If the legislative body determines that all proceedings were valid
and in conformity with the requirements of this chapter, it shall
make a finding to that effect and that finding shall be final and
conclusive.


53325.3.  A tax imposed pursuant to this chapter is a special tax
and not a special assessment, and there is no requirement that the
tax be apportioned on the basis of benefit to any property.  However,
a special tax levied pursuant to this chapter may be on or based on
a benefit received by parcels of real property, the cost of making
facilities or authorized services available to each parcel, or some
other reasonable basis as determined by the legislative body.



53325.5.  (a) A community facilities district may include areas of
territory that are not contiguous.
   (b) In establishing the boundaries of the district, the
legislative body may alter the exterior boundaries of the district to
include less territory than that described in the notice of the
hearing but it may not include any territory not described in the
notice of the hearing.


53325.6.  Land devoted primarily to agricultural, timber, or
livestock uses and being used for the commercial production of
agricultural, timber, or livestock products may be included in a
community facilities district only if such land is contiguous to
other land which is included within the described exterior boundaries
of the community facilities district, and only if the legislative
body finds that the land will be benefited by any of the types of
public facilities and services proposed to be provided within the
district.  The land may, however, be included in the community
facilities district, if the owner requests its inclusion.




53325.7.  The legislative body may submit a proposition to establish
or change the appropriations limit, as defined by subdivision (h) of
Section 8 of Article XIIIB of the California Constitution, of a
community facilities district to the qualified electors of a proposed
or established district. The proposition establishing or changing
the appropriations limit shall become effective if approved by the
qualified electors voting on the proposition and shall be adjusted
for changes in the per capita personal income in the state and
changes in populations, as defined by subdivisions (b) and (c) of
Section 7901, except that the change in population may be estimated
by the legislative body in the absence of an estimate by the
Department of Finance, and in accordance with Section 1 of Article
XIIIB of the California Constitution. For purposes of adjusting for
changes in population, the population of the district shall be deemed
to be at least one person during each calendar year.



53326.  (a) The legislative body shall then submit the levy of any
special taxes to the qualified electors of the proposed community
facilities district or to the qualified electors of the territory to
be annexed by the community facilities district in the next general
election or in a special election to be held, notwithstanding any
other requirement, including any requirement that elections be held
on specified dates, contained in the Elections Code, at least 90
days, but not more than 180 days, following the adoption of the
resolution of formation. The legislative body shall provide the
resolution of formation, the resolution deeming it necessary to incur
bonded indebtedness, if one is adopted, a certified map of
sufficient scale and clarity to show the boundaries of the district,
and a sufficient description to allow the election official to
determine the boundaries of the district to the official conducting
the election within three business days after the adoption of the
resolution of formation. Assessor's parcel numbers for the land
within the district shall be included if it is a landowner election
or the district does not conform to an existing district's boundaries
and if requested by the official conducting the election. If the
election is to be held less than 125 days following the adoption of
the resolution of formation, the concurrence of the election official
conducting the election shall be required. However, any time limit
specified by this section or requirement pertaining to the conduct of
the election, including any time limit or requirement applicable to
any election conducted pursuant to Article 5 (commencing with Section
53345), may be waived with the unanimous consent of the qualified
electors of the proposed district and the concurrence of the election
official conducting the election.
   (b) Except as otherwise provided in subdivision (c), if at least
12 persons, who need not necessarily be the same 12 persons, have
been registered to vote within the territory of the proposed
community facilities district for each of the 90 days preceding the
close of the protest hearing, the vote shall be by the registered
voters of the proposed district, with each voter having one vote.
Otherwise, the vote shall be by the landowners of the proposed
district and each person who is the owner of land at the close of the
protest hearing, or the authorized representative thereof, shall
have one vote for each acre or portion of an acre of land that he or
she owns within the proposed community facilities district not exempt
from the special tax. Ballots shall be executed by an owner of a
parcel, or by a representative of an owner lawfully appointed to
represent the owner for purposes of the election. Each person casting
a ballot assigned to a parcel of property who is not the owner of
that property must present written evidence to the local agency of
that person's authority to act for the owner for the election before
casting the ballot. If more than one of the record owners of an
identified parcel submits or wishes to submit a ballot, the votes
attributable to the parcel shall be allocated to ballots for each
owner in proportion to their respective record ownership interest,
rounded to the nearest one-tenth of a vote, or, if the ownership
interests are not shown on the record, as established to the
satisfaction of the local agency, the votes attributable to the
parcel shall be allocated according to the ownership interests shown
by documentation submitted by those record owners. If no document is
submitted, the votes shall be allocated equally among the parcel's
owners requesting ballots. If the appointment of the representative
to cast the ballot was made as part of the transaction by which the
current owners acquired the property, or if the appointment appoints
a former owner, or anyone affiliated in any way with a former owner
of the property, the written appointment must be signed by all of the
owners, and include a statement signed by all of the owners
substantially in the form contained in Section 53341.5. The
appointment is not valid if the ballot measure seeks to authorize
facilities, services, or special taxes in excess of those shown on
the statement. The appointment of a representative to act for
property for a single specified landowner election under this chapter
shall not constitute a violation of any law prohibiting the
impersonation of voters or the inducement to vote in a particular
fashion. The number of votes to be voted by a particular landowner
shall be specified on the ballot provided to that landowner. If the
vote is by landowners pursuant to this subdivision, the legislative
body shall determine that any facilities or services financed by the
district are necessary to meet increased demands placed upon local
agencies as the result of development or rehabilitation occurring in
the district.
   (c) If the proposed special tax will not be apportioned in any tax
year on any portion of property in residential use in that tax year,
as determined by the legislative body, the legislative body may
provide that the vote shall be by the landowners of the proposed
district whose property would be subject to the tax if it were levied
at the time of the election. Each of these landowners shall have one
vote for each acre, or portion thereof, that the landowner owns
within the proposed district that would be subject to the proposed
tax if it were levied at the time of the election.
   (d) Ballots for the special election authorized by subdivision (a)
may be distributed to qualified electors by mail with return postage
prepaid or by personal service by the election official. The
official conducting the election may certify the proper mailing of
ballots by an affidavit, that shall constitute conclusive proof of
mailing in the absence of fraud. The voted ballots shall be returned
to the election officer conducting the election not later than the
hour specified in the resolution calling the election. However, if
all the qualified voters have voted, the election may be closed with
the concurrence of the official conducting the election.




53327.  (a) Except as otherwise provided in this chapter, the
provisions of law regulating elections of the local agency that calls
an election pursuant to this chapter, insofar as they may be
applicable, shall govern all elections conducted pursuant to this
chapter. Except as provided in subdivision (b), there shall be
prepared and included in the ballot material provided to each voter
an impartial analysis pursuant to Section 9160, 9280, or 9500 of the
Elections Code, and arguments and rebuttals, if any, pursuant to
Sections 9162 to 9167, inclusive, and 9190 of the Elections Code or
pursuant to Sections 9281 to 9287, inclusive, and 9295 of the
Elections Code, or pursuant to Sections 9501 to 9507, inclusive, of
the Elections Code, or pursuant to other provisions of law applicable
to other special districts as appropriate.
   (b) If the vote is to be by the landowners of the proposed
district, analysis and arguments may be waived with the unanimous
consent of all the landowners and shall be so stated in the order for
the election. When the vote is to be by the landowners of the
proposed district, the legislative body of the local agency may
authorize an official of the local agency to conduct the election,
including preparation of analysis and compilation of arguments.




53327.5.  (a) If the election is to be conducted by mail ballot, the
election official conducting the election shall provide ballots and
election materials pursuant to subdivision (d) of Section 53326 and
Section 53327, together with all supplies and instructions necessary
for the use and return of the ballot.
   (b) The identification envelope for return of mail ballots used in
landowner elections shall contain the following:
   (1) The name of the landowner.
   (2) The address of the landowner.
   (3) A declaration, under penalty of perjury, stating that the
voter is the owner of record or the authorized representative of the
landowner entitled to vote and is the person whose name appears on
the identification envelope.
   (4) The printed name and signature of the voter.
   (5) The address of the voter.
   (6) The date of signing and place of execution of the declaration
described in paragraph (3).
   (7) A notice that the envelope contains an official ballot and is
to be opened only by the canvassing board.




53328.  After the canvass of returns of any election pursuant to
Section 53326, the legislative body may, pursuant to Section 53340,
levy any special tax as specified in the resolution of formation
adopted pursuant to subdivision (a) of Section 53325.1 within the
territory of the district if two-thirds of the votes cast upon the
question of levying the tax are in favor of levying that tax.



53328.3.  Upon a determination by the legislative body that the
requisite two-thirds of votes cast in an election held pursuant to
Section 53326 are in favor of levying the special tax, the clerk of
the legislative body shall, within 15 days of a landowner election or
within 90 days of a registered voter election, record the notice of
special tax lien provided for in Section 3114.5 of the Streets and
Highways Code, whereupon the lien of the special tax shall attach as
provided in Section 3115.5 of the Streets and Highways Code. The
notice of special tax lien shall be recorded in the office of the
county recorder in each county that any portion of the district is
located.


53328.5.  Division 4.5 (commencing with Section 3100) of the Streets
and Highways Code applies with respect to any  proceedings
undertaken pursuant to this chapter.  This chapter is a "principal
act" as that term is defined in Section 3100 of the Streets and
Highways Code.  In all cases in which special taxes have been
approved by the qualified electors pursuant to this chapter prior to
January 1, 1989, the legislative body may direct the clerk of the
legislative body to impose a lien for the special tax on nonexempt
real property within the district by performing the filings required
by Division 4.5 (commencing with Section 3100) of the Streets and
Highways Code, and the county recorder shall accept those filings and
may charge the clerk a fee for recording and indexing those
documents pursuant to Section 3116 of the Streets and Highways Code.
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.


53329.  After the canvass of returns of any election conducted
pursuant to Section 53326, the legislative body shall take no further
action with respect to authorizing the specified special tax within
the community facilities district for one year from the date of the
election if the question of authorizing that specified special tax
fails to receive approval by two-thirds of the votes cast upon the
question.



53329.5.  (a) The owners of three-fourths of the area of lands taxed
or liable to be taxed, or their agents (who shall declare under
penalty of perjury that they are such owners or agents), shall not be
required to present sealed proposals or bids when the legislative
body calls for bids preparatory to letting a contract or contracts to
do work financed pursuant to this chapter, but may, within 10 days
after  the publication of the notice of the award of the contract,
elect to perform the work and enter into a written contract to do the
whole work at prices not exceeding the prices specified in the bid
of the bidder to whom the contract was awarded, and all work done
under the contract shall be subject to any regulations as may be
prescribed by the legislative body.
   (b) If the owners elect not to perform the work and not to enter
into a written contract for that work within 10 days of publication
of the notice of the award of the contract, or to commence the work
within 15 days after the date of the written contract entered into
between the owners and the legislative body, and to continue that
work with diligence to completion, as determined by the legislative
body, a contract shall be entered into by the legislative body with
the original bidder to whom the contract was awarded at the prices
specified in his or her bid.
   (c) If, in the opinion of the legislative body, the public
interest will not be served by allowing the property owners to enter
into a contract in accordance with subdivision (a), the legislative
body may so provide in the resolution of intention adopted pursuant
to Section 53321.