(1) The legislative authority may modify the boundaries of a parking and business improvement area by ordinance, adopted after a hearing before the legislative authority. The legislative authority may modify an area either by expanding or reducing the existing boundaries. If the modification to the boundaries is to expand existing boundaries, the expansion area must be adjacent to an existing boundary. A modification to an existing boundary may occur no more than once per year and may not affect an area with a projected assessment fee greater than ten percent of the current assessment role for the existing area. If the modification of an area results in the boundary being expanded, the assessments for the new area shall be established pursuant to RCW 35.87A.080 and 35.87A.090 and any other applicable provision of this chapter.

(2) The legislative authority shall adopt a resolution of intention to modify the boundaries of an area at least fifteen days prior to the hearing required in subsection (1) of this section. The resolution shall specify the proposed modification and shall give the time and place of the hearing. Notice of the hearing shall be made in accordance with RCW 35.87A.050.