GHAD AGENDA PACKET 6-16-26 - Laserfiche WebLink

Page 2 of 4 Moller Ranch Water Fund (420) $139 $0 Oak Tree Farm Sewer Fund (430) $0 $369 Total Appropriations $1,039 $369 BACKGROUND Geologic Hazard Abatement Districts (GHADs) are authorized under California Public Resources Code section 26500. Like other special tax assessment districts, a GHAD levies assessments on property owners for a special benefit received. In Pleasanton, properties within the GHAD boundaries benefit from City monitoring and repair of landslides and other geologic damage that may unexpectedly occur in their neighborhoods. The GHADs provide funding for annual inspections and maintenance of slope ditches and downstream drainage networks to reduce the likelihood of landslides. If a landslide occurs, reserve funds within the GHADs can help offset repair costs. Without the GHADs, landslides could threaten homes and critical infrastructure within each neighborhood, with limited funding options available to mitigate the damage. GHADs are formed when a geotechnical investigation associated with neighborhood development identifies hillside areas as unsuitable for housing due to underlying geologic conditions that would be costly for a developer to address. These areas are then set aside as open space. The developer is required to construct drainage infrastructure and related improvements designed to reduce the likelihood of landslides and address the impact should a landslide occur. Formation of a GHAD also requires a Plan of Control that identifies the drainage infrastructure to be monitored and maintained and estimates the cost of that work. The Plan of Control also recommends the establishment of a reserve account, funded by the developer, to be used if damage occurs. The City Council serves as the Board of Directors for each GHAD and is responsible for overseeing district funding to ensure assessments are used only as prescribed in the Plan of Control. The Board must also authorize annual assessment increases based on the Engineer’s Reports. Under California Proposition 218, approved by voters in November 1996, assessment increases must follow the escalation clause in each Plan of Control and are limited to no more than two percent each year. DISCUSSION Annual assessments may be adjusted each year based on the Construction Cost Index (CCI) for the San Francisco Bay Area, as published by Engineering News-Record (ENR), a nationwide construction industry publication. Staff recommends a two percent increase for each GHAD. The table below identifies: (A) the number of parcels within each GHAD subject to assessment; (B) the proposed assessment amount for the coming year; (C) the projected total revenue; (D) the anticipated operating expenses; (E) the excess revenue to be deposited into reserve accounts; and (F) the total current fund reserve. Page 5 of 19