§ 15A.1.



State law provides procedures to form property and business improvement districts and levy assessments (California Streets and Highways Code Sections 36600 et seq. ). This Article 15A provides authority for the City to augment and modify those state law procedures to provide services, improvements and activities, focused on landscaping, improvements and maintenance in Public Realm areas, by authorizing the Board of Supervisors to do any of the following in conjunction:


Reduce the percentage of petitions required from property owners in order to initiate formation;


Have the district encompass residential property, and to assess residential property, including parcels zoned solely for residential use;


Extend the term of the district to a maximum of 15 years, or such longer term as is authorized by state law;


Extend the term of the district to a maximum of 40 years, if all or a portion of the assessments will be pledged or applied to pay any bond, financing lease (including certificates of participation therein), or other similar obligations of the City;


Recover through assessments the costs incurred in formation of the district; and,


Disestablish a district upon a supermajority vote of the Board of Supervisors.

In addition, this Article augments and modifies state law by: requiring the Clerk of the Board of Supervisors to notify business owners in English, Cantonese and Spanish when a petition for district formation is received; and providing for representation by stakeholders who do not own property in the district (e.g., residents, business owners, neighborhood organizations) on the governing body of an owners’ nonprofit association that administers, implements or provides the services, improvements and activities specified in the management district plan.


Under this Article 15A, the Board of Supervisors may establish property and business improvement districts that focus on landscaping, improvements and maintenance in Public Realm areas, which may be financed through assessments apportioned among parcels of real property within such districts. It is the intent of this Article to provide a vehicle for financing services, activities and improvements that supplement and complement existing services and facilities. The Board of Supervisors may not establish any district or levy any assessment under this Article to replace or supplant existing City services. Nothing in this Article shall be construed as prohibiting the establishment of districts or levying of assessments to finance local capital improvements that are otherwise authorized under the City Charter, any other City ordinance, or state law.


(Added by Ord. 14-14 , File No. 130462, App. 2/14/2014, Eff. 3/16/2014)


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