At the hearing the board may adopt a resolution proposing modifications relating to any or all of the following:

1. (a) Modification of the boundaries of the territory to be annexed;
2. (b) The addition to the territory proposed to be annexed of lands of which in its opinion will be benefited by being annexed to said improvement district;
3. (c) The exclusion from the territory to be annexed of any lands described in the resolution of intention which in its opinion will not be benefited by being annexed to said improvement district; or

4. (d) The terms and conditions set forth in the resolution of intention or if none the board may adopt terms and conditions.

   Said resolution proposing modification shall describe the proposed modifications and shall fix a time and place for a hearing by the board thereon. The board shall not order any modifications except after publication of the resolution proposing said modifications as provided in Section 36417.