DATE:
February 7, 2023
TO:
Paul Buddenhagen, City Manager
FROM:
Bill Zenoni, Interim Finance Director
SUBJECT:
Reassessment of Bay Street-Shellmound Street Extension Assessment District:
Resolution Of The City Council Of The City Of Emeryville Directing The Recordation Of Addendums To Notices Of Reassessment For Certain Assessment Districts, And Directing The Disposition Of Surplus Funds Related To The City’s Bay Street-Shellmound Street Extension Assessment District An Ordinance Of The City Council Of The City Of Emeryville Repealing Article 2 Of Chapter 2 Of Title 3 (Bay-Shellmound Contingent Assessment Special Fund) Of The Emeryville Municipal Code
RECOMMENDATION
Staff recommends that the City Council:
Adopt the above-entitled resolution directing the recordation of addendums to notices of reassessment for certain assessment districts, and directing the disposition of surplus funds related to the City’s Bay Street-Shellmound Street Extension Assessment District; and Introduce and waive the first reading of an ordinance repealing Article 2 of Chapter 2 of Title 3 of the Emeryville Municipal Code.
BACKGROUND
The City Council, on March 18, 1993, passed an ordinance establishing Article 2 of Chapter 2 of Title 3 of the Emeryville Municipal Code providing for the creation, administration, and termination of the Bay-Shellmound Contingent Assessment Special Fund for the deposit of contingent assessments levied within the Bay Street-Shellmound Street Extension Assessment District.
On July 21, 1999, the Emeryville Public Financing Authority issued revenue bonds in the amount of $14,420,000 to acquire three outstanding series of bonds that had been issued by the City of Emeryville including West Emeryville Assessment District Limited Obligation Refunding Bonds, Bay-Shellmound Street Extension Assessment District Limited Obligation Refunding Bonds the Assessment District 1993-1 (East Baybridge Center) Limited Obligation Refunding Bonds.
Discussion
The 1999 Emeryville Public Financing Authority Revenue Bonds were paid in full in September 2021. There currently remains a balance $1.07 million of unexpended funds in the bond Redemption Fund, Reserve Fund and Contingent Assessment Fund. Staff has been working with bond counsel regarding the disposition of the remaining unexpended funds. It is recommended that the City Council authorize the establishment of a capital improvement fund to be used for public improvements or the maintenance of public improvements within the area for which the Bay Street-Shellmound bonds were issued, and that the City Council authorize the transfer of any unexpended funds from the bond Redemption Fund, Reserve Fund and Contingent Assessment Fund to this capital improvement fund.
In compliance with the requirements of Section 3114.3 of the Streets and Highways Code, the City must also record an addendum to the notice of reassessment which was recorded against the parcels within the assessment districts stating that the assessments have been paid in full and removing the parcel liens.
Since the 1999 bonds have been paid in full, the Bay-Shellmound Contingent Assessment Special Fund as provided in Article 2 of Chapter 2 of Title 3 of the Emeryville Municipal Code is no longer required and that section of the Municipal Code can now be repealed.
FISCAL IMPAct
Approval of the recommended action will provide funding for public improvements and maintenance of public improvements of benefit to the area within the Bay Street-Shellmound Street Extension Assessment District.
PREPARED BY: Bill Zenoni, Interim Finance Director
APPROVED AND FORWARDED TO THE
CITY COUNCIL OF THE CITY OF EMERYVILLE:
Paul Buddenhagen, City Manager
ATTACHMENTS
Draft Resolution
Exhibit A
Draft Ordinance
Bay Street-Shellmound Street Extension Assessment District City Council Meeting | February 7, 2023
City of Emeryville
CALIFORNIA
MEMORANDUM