CHAPTER 9.
ASSESSMENT DISTRICTS

Sections:

Article 1.    Property and Business Improvement Districts

3-9.101    Purpose

3-9.102    Emeryville Procedural and Substantive Augmentation of State Law Requirements Governing Property and Business Improvement Districts

3-9.103    Severability

Article 1.    Property and Business Improvement Districts

3-9.101 Purpose.

(a)    State law provides procedures to form property and business improvement districts. This article provides authority for the City to invoke those State procedures and, in addition, to apply those procedures to residential property that would not be covered were the City to follow the State law exclusively. This article incorporates the State law and then specifies how the City Council may choose to augment the State law provisions by choosing to: (1) reduce the percentage of petitions required from owners in order to initiate formation and allow the City Council to initiate formation by adoption of a resolution; (2) extend the term of the district to a maximum of fifteen (15) years, unless a longer term is authorized by State law; (3) have the district encompass and assess residential property; (4) specifically affirm that shuttle bus services constitute an activity that may benefit businesses or real property in a district; or (5) authorize the district to recover through assessments the costs incurred in its formation. In addition, this article augments State law by authorizing the City Council to disestablish a district upon a supermajority vote of the Council.

(b)    Through proceedings under this article, the City Council may establish property and business improvement districts and may finance enhancements through annual assessments apportioned among parcels of real property within such districts. It is the intent of this article to provide a vehicle for financing enhancements which supplement and complement existing services. District formation and assessment proceedings may not be initiated under this article to finance replacing or supplanting existing City services. Nothing herein shall be construed as prohibiting the establishment of districts to finance local capital improvements under any other ordinance or any other law of the State of California.

(Sec. 1 (part), Ord. 15-003, eff. May 7, 2015)

3-9.102 Emeryville Procedural and Substantive Augmentation of State Law Requirements Governing Property and Business Improvement Districts.

(a)    In forming assessment districts that will fund improvements and services that confer special benefit on businesses, residential, commercial or residential and commercial property, the City Council may elect to use the procedures set forth in California Streets and Highways Code Section 36600 et seq., or may elect to use those procedures as modified herein. The City Council shall be bound by, and comply with, the applicable State law governing the formation of property and business improvement and maintenance districts in all other respects not inconsistent with this article when forming an assessment district to fund improvements and services that provide special benefits to businesses, commercial and/or residential property.

(b)    Notwithstanding Streets and Highways Code Section 36621(a) or any other provision of State law, the City Council may initiate proceedings to establish a property and business improvement district by adoption of a resolution on its own motion at a regular or special meeting, or upon receipt of a petition signed by property owners, business owners, or a combination of property owners and business owners in the proposed district who will pay at least thirty percent (30%) of the assessments proposed to be levied. The amount of assessment attributable to property and businesses owned by the same owner that is in excess of forty percent (40%) of the amount of all assessments proposed to be levied shall not be included in determining whether the petition is signed by the property owners, business owners, or combination of property owners and business owners, as the case may be, who will pay the requisite percentage of assessments. Where the City Council initiates proceedings pursuant to this subsection, the City Council shall conduct a protest ballot proceeding in accordance with Article XIII(D) of the California Constitution notwithstanding any language to the contrary in Streets and Highways Code Section 36623.

(c)    Notwithstanding Streets and Highways Code Section 36622(h) or any other provision of State law, the City Council may form a district authorized to levy assessments for a maximum term of up to fifteen (15) years, except where a longer term is authorized by State law.

(d)    Notwithstanding Streets and Highways Code Section 36632(c) or any other provision of State law, the City Council may establish an assessment district pursuant to this article that encompasses, and levies assessments upon, and funds improvements and services that specially benefit properties zoned for residential use.

(e)    Notwithstanding Streets and Highways Code Section 36606 or any other provision of State law, activities that may benefit businesses or real property in a district include the provision of shuttle bus services.

(f)    The City Council may authorize an assessment district formed pursuant to this article to recover through assessments the costs incurred in forming the district, including:

(1)    The costs of preparation of the management plan and engineer’s report required by State law;

(2)    The cost of circulating and submitting the petition to the City Council seeking establishment of the district;

(3)    The costs of printing, advertising and the giving of published, posted or mailed notices;

(4)    Compensation of any engineer or attorney employed to render services in proceedings under this article or Streets and Highways Code Section 36600 et seq.; and

(5)    Costs associated with any ballot proceedings required by law for approval of a new or increased assessment.

If the district will be authorized to recover these costs, the management plan required pursuant to Streets and Highways Code Section 36622 shall specify the formation costs eligible for recovery through assessments, the schedule for recovery of those costs, and the basis for determining the amount of the additional assessment for recovery of costs, including the maximum amount of the additional assessment, expressed either as a dollar amount, or as a percentage of the underlying assessment.

(g)    Notwithstanding Streets and Highways Code Section 36670 or any other provision of State law, the City Council may, by a supermajority vote of four (4) or more members, notice a hearing and initiate proceedings to disestablish for any reason a district formed after the effective date of the ordinance codified in this section. Where the City Council seeks to disestablish a district in circumstances not authorized under Streets and Highways Code Section 36670, both the resolution of intention to disestablish the district and any final resolution to disestablish the district shall be subject to a supermajority vote of four (4) or more members. This subsection shall not be applicable where the district has outstanding bonded indebtedness.

(Sec. 1 (part), Ord. 15-003, eff. May 7, 2015)

3-9.103 Severability.

If any provision of this article or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect any other provision or such other application of such provision which can be given effect without such provision or application, and to this end the provisions of this article are declared to be severable.

(Sec. 1 (part), Ord. 15-003, eff. May 7, 2015)