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A. Prior to the establishment of a district, the council shall adopt a resolution of intention to establish such a district, stating the proposed boundaries and the nature of the public improvements proposed to be financed or constructed from the proceeds of charges, or in the case of improvements previously constructed at city’s expense or Petaluma community development commission’s expense the amount to be reimbursed from the proceeds of charges which shall be imposed, and setting the matter for public hearing, which shall be not less than twenty days after the adoption of said resolution of intention. The city clerk shall thereafter give notice of such hearing, and shall notify each property owner within the boundaries of the proposed district of the public hearing not less than ten days prior thereto by placing a copy of the notice of hearing and the resolution of intention in a sealed envelope, postage fully prepaid, and depositing the same in the United States mail, addressed to the owners at their last known address of record. Said notice shall be deemed given when mailed.

B. On the date set for public hearing, the council shall consider the establishment of the district, the total estimated installation cost of the improvement constructed or proposed to be constructed, as set out in Section 13.34.040, and shall hear the comments of those property owners located within the proposed district who wish to be heard. Thereafter, the council may adopt a resolution establishing such district, setting the boundaries, establishing the apportionment formula and total estimated cost of the improvements constructed or to be constructed from the proceeds of charges in the district, including the cost of formation of the district, if it can make the following findings.

1. The proposed district and the improvements funded thereby are necessary for the promotion of the public health, safety and welfare, and will either benefit the properties within the district to a substantially greater degree than the property of the public generally or will be necessary as a mitigation measure to lessen substantial environmental impacts caused by projected development in the district;

2. That the adopted apportionment formula will fairly apportion the benefit within the district;

3. That imposition of the charges will not render any parcel substantially valueless for any private use.

C. If, at the public hearing, it is determined that the boundaries of the district should include properties outside the boundaries specified in the original resolution of intention, the public hearing shall be continued for a period of not less than twenty days and mailed notice as set out in subsection (A) of this section shall be given to the owners of properties which are proposed to be so included, and at the continued public hearing, those property owners shall be given the opportunity to be heard. The council may thereafter proceed to adopt a resolution establishing the district as set out in subsection B of this section.

(Ord. 1977 NCS §§2-4, 1995; Ord. 1303 NCS §1 (part), 1978.)