GHAD AGENDA PACKET - Laserfiche WebLink

Page 2 of 4 BACKGROUND Geologic Hazard Abatement Districts (GHADs) are authorized by California Public Resources Code §26500. Like any special tax assessment district, a GHAD assesses property owners for a benefit they receive that is special to them. In Pleasanton, property owners within the GHADs benefit from having the City monitor and repair landslides or similar geologic damage that may occur unexpectedly in their neighborhoods. The GHADs provide needed funding for the City to conduct annual inspections as well as annual maintenance of slope ditches and downstream drainage networks to lessen the likelihood of landslide occurrence. If a landslide should occur, reserve funds within the GHADs can offset the repair costs. In the absence of the GHADs, landslides could threaten homes and critical infrastructure within each neighborhood, with few viable funding options to mitigate the damage. GHADs are formed when a geotechnical investigation associated with the development of the neighborhood reveals hillside areas that are unsuitable for housing due to underlying geologic issues that are costly for a developer to address. These unsuitable areas are set aside as open spaces. The developer is then obligated to construct drainage infrastructure and similar features designed to lessen the likelihood of landslides and address the impact should a landslide occur. GHAD formation also requires a Plan of Control that identifies the drainage infrastructure to be monitored and maintained, and assigns expected costs for this work. The Plan of Control also recommends a reserve account funded by the developer to be used in the event damage occurs. The City Council has been designated as the Board of Directors for each GHAD and is responsible for oversight of GHAD funding to ensure assessments are only utilized as prescribed in the Plan of Control. The Board must also authorize annual assessment increases based on the Engineer’s Reports. Due to California Proposition 218, from November 1996, assessment increases must follow the escalation clause within each Plan of Control, limiting the increases to not more than two percent each year. DISCUSSION Annual GHAD assessments can be adjusted yearly according to the Construction Cost Index (CCI) for the San Francisco Bay Area as published by Engineering News Record (ENR), a nationwide construction trades magazine. Although the CCI was less than two percent during the past year (1.6 percent), staff recommend a two percent assessment increase for each GHAD to address several deferred maintenance items, since reserves have been depleted over time. The prior year (2024) assessment was capped at the 2 percent increase when the CCI index increase was 7.8 percent. Page 15 of 29