To: Board of Directors
From: Wiedemann Ranch Geological Hazard Abatement District
Report Title: Wiedemann Ranch GHAD Resolution No. 2024/01
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT Wiedemann Ranch GHAD Resolution 2024/01 authorizing an assessment levy less than the assessment limit for the Norris Canyon Estates, Henry Ranch, Elworthy Ranch, and Red Hawk developments for FY 2024/2025, adopting the GHAD budget for Fiscal Year (FY) 2024/2025 and updating the GHAD Manager payment limit pursuant to the Consulting Services Agreement.
FISCAL IMPACT:
100% Wiedemann Ranch Geological Hazard Abatement District Funds.
BACKGROUND:
On September 1, 1998, the Contra Costa County Board of Supervisors adopted Resolution 98/438 approving the formation of the Wiedemann Ranch Geologic Hazard Abatement District (GHAD) which included the Norris Canyon Estates development and appointed itself to serve as the GHAD Board of Directors.
Four developments have been annexed into the Wiedemann Ranch GHAD since its formation in 1998. These include:
• Henry Ranch (Subdivision 8118) in San Ramon on April 11, 2000, with the adoption of Resolutions 2000/166 and 2000/167
• Elworthy Ranch (Subdivision 9009) in Danville o n July 29, 2014, with the adoption of Resolution 2014/03
• Red Hawk (formerly Podva Property) (Subdivision 9309) in Danville on January 19, 2016, with the adoption of Resolution 2016/01
• Magee Preserve (Subdivision 9291) in Danville on July 13, 2021, with the adoption of Resolution 2021/03
The Magee Preserve development was annexed into the Wiedemann Ranch GHAD and has an approved assessment, but currently receives no services from the GHAD. The Magee Preserve development will be eligible to transfer of GHAD-related Plan of Control responsibilities in 2026 at the earliest.
As part of the preparation for the Wiedemann Ranch GHAD’s FY 2024/2025 budget, the GHAD Manager reviewed the current GHAD reserves. The GHAD has exceeded its target reserve rate of accumulation forecast estimates in the approved 1998, 2001, 2014, and 2016 Engineer’s Reports for the Norris Canyon Estates, Henry Ranch, Elworthy Ranch, and Red Hawk developments within the Wiedemann Ranch GHAD. We recommend levying an amount less than the assessment limit to cover annual maintenance and operations for the GHAD for FY 2024/2025 for properties within the Norris Canyon Estates (NCE), Henry Ranch (HR), Elworthy Ranch, and Red Hawk developments based on these developments having met the following conditions.
• Unencumbered reserve funds collected from the developments within Wiedemann Ranch GHAD exceed the target reserve amount estimated in the approved Engineer’s Reports for the development.
• Reserve funds collected from each development within Wiedemann Ranch GHAD exceed the dollar amount estimated for a large-scale repair.
• Plan of Control responsibilities within each development have been transferred from the developer to the GHAD.
For each development within the GHAD that has met the above conditions, we recommend a levy that is 54% of the inflation adjusted assessment limit for FY 2024/2025. With an inflation estimate of 3% used in the budget the approximate levy amounts are shown in Table 1. The actual FY 2024/2025 levy for residences within each development will be calculated to reflect the actual percentage change in the San Francisco-Oakland-Hayward CPI for All Urban Consumers for June 2023 through June 2024.
As provided in the approved Engineer’s Reports, the assessment limits for all the developments within the Wiedemann Ranch GHAD will continue to be adjusted for inflation annually. The proposed levy amount for FY 2024/2025 does not preclude the GHAD Board in the future from increasing or decreasing the levy of the assessment up to the inflation adjusted assessment limit. This determination is made by the GHAD Board each year in approving the annual budget for the GHAD. As long as the GHAD Board levies future assessments in accordance with the Engineer’s Report, a vote of property owners is not required; a vote is only required if the assessment limit is increased beyond that allowed in the Engineer’s Reports.
On June 13, 2023, pursuant to Resolution 2023/03, the GHAD Board authorized an assessment levy less than the assessment amount for FY 2023/2024 for the Norris Canyon Estates, Henry Ranch, Elworthy Ranch and Red Hawk developments.
The GHAD Board is requested to adopt a budget for the GHAD’s maintenance and operations each fiscal year. The GHAD Board is being requested to adopt the fiscal year budget for 2024/2025 as prepared by the GHAD Manager which is attached to Resolution No. 2024/01. In addition, the GHAD Board is being requested to update the GHAD Manager payment limits under the existing Consulting Services Agreement as required by that Agreement. The budget attached to Resolution No. 2024/01 identifies that limit as $385,090.
CONSEQUENCE OF NEGATIVE ACTION:
The GHAD will not be able to continue operation starting July 1, 2024 if the budget is not approved.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
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IN THE MATTER OF Adopting 2024/2025 annual budget, updating GHAD Manager payment limits under the existing consulting services agreement, and authorizing an assessment levy less than the assessment limit for Fiscal Year 2024/2025 for the Norris Canyon Estates, Henry Ranch, Elworthy Ranch, and Red Hawk developments.
WHEREAS, on September 1, 1998, the Contra Costa County Board of Supervisors adopted Resolution 98/438 approving the formation of the Wiedemann Ranch Geologic Hazard Abatement District (GHAD) and appointed itself to serve as the GHAD Board of Directors.
WHEREAS, on April 11, 2000, the Wiedemann Ranch GHAD Board of Directors adopted Resolutions 2000/166 and 2000/167 approving annexation of the Henry Ranch development into the Wiedemann Ranch GHAD.
WHEREAS, on July 29, 2014, the Wiedemann Ranch GHAD Board of Directors adopted Resolution 2014/03 approving annexation of the Elworthy Ranch development into the Wiedemann Ranch GHAD.
WHEREAS, on January 19, 2016, the Wiedemann Ranch GHAD Board of Directors adopted Resolution 2014/01 approving annexation of the Red Hawk (formerly Podva) development into the Wiedemann Ranch GHAD.
WHEREAS, on July 13, 2021, the Wiedemann Ranch GHAD Board of Directors adopted Resolution 2021/03 approving annexation of the Magee Preserve development into the Wiedemann Ranch GHAD.
WHEREAS, the GHAD Board of Directors desires to adopt the budget for the Fiscal Year 2024/2025 prepared by the GHAD Manager, ENGEO Inc., attached hereto as Exhibit A and to approve a levy that is 54% of the inflation adjusted assessment limit for FY 2024/2025 for the Norris Canyon Estates, Henry Ranch, Elworthy Ranch, and Red Hawk developments, and levy the inflation adjusted assessment limit for the Magee Ranch development.
WHEREAS, on May 19, 2009, pursuant to Resolution No. 2009/03, the GHAD Board approved the consultant services agreement with ENGEO Inc., to act as Manager for the GHAD. This Agreement, in section 1(e), requires the GHAD Board to determine by resolution each Fiscal Year the payment limits for GHAD Manager services. The budget attached in Exhibit A identifies this limit as $385,090.
NOW, THEREFORE, BE IT RESOLVED
1. The GHAD Board approves the GHAD budget for Fiscal Year 2024/25 of $1,802,710 attached as Exhibit A and incorporated herein by this reference and approve an assessment levy at 54 percent of the assessment limit for Fiscal Year 2024/25 for the Norris Canyon Estates, Henry Ranch, Elworthy Ranch, and Red Hawk developments, and the inflation adjusted assessment limit for the Magee Preserve development.
2. The GHAD Board adopts the payment limit for the GHAD Manager services at $385,090 for Fiscal Year 2024/2025 as set forth in Exhibit A and incorporates this payment limit into the consulting services agreement.
3. The recitals are incorporated herein by this reference.
This Resolution shall become effective immediately upon its passage and adoption.
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