To: Board of Directors
From: Wiedemann Ranch Geological Hazard Abatement District
Report Title: Wiedemann Ranch GHAD Resolution No. 2025/01
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT Wiedemann Ranch GHAD Resolution No. 2025/01 adopting the GHAD budget for Fiscal Year 2025/2026, updating the GHAD Manager payment limit pursuant to the Consulting Services Agreement, and updating the annual Consumer Price Index reference month to December for all assessed properties in the GHAD.
FISCAL IMPACT:
The GHAD is funded 100% through real property assessments levied on properties within the GHAD.
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 Resolution Nos. 2000/166 and 2000/167.
• Elworthy Ranch in Danville on 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 approval of Resolution 2016/01.
• Magee Preserve (Subdivision 9291) in Danville on July 13, 2021, with the approval of Resolution 2021/03.
The Magee Preserve development was annexed into the Wiedemann Ranch GHAD, with an approved assessment, but currently receives no services from the GHAD. The Magee Preserve development will be eligible to transfer GHAD-related Plan of Control Responsibilities in late 2026 at the earliest.
As part of the preparation for the GHAD’s FY 2025/26 budget, the GHAD Manager reviewed the current GHAD reserves. The GHAD is ahead of its target rate of reserve accumulation forecast estimate in the approved Engineer’s Reports for the Norris Canyon Estates, Henry Ranch, Elworthy Ranch, and Red Hawk developments, therefore GHAD Staff is recommending an assessment levy less than the assessment limit for the Norris Canyon Estates, Henry Ranch, Elworthy Ranch, and Red Hawk developments only for FY 2025/26, and prepared a budget that reflects a lower assessment levy for FY 2025/26.
Staff is providing this recommendation based on the following conditions.
• Unencumbered reserve funds collected from within the GHAD exceed the rate of target reserve accumulation estimated in the approved Engineer’s Report or unencumbered reserve funds collected from a development exceed the target reserve.
• Reserve funds collected from within GHAD exceed the dollar amount estimated for a large-scale repair
• Plan of Control responsibilities have been transferred from the developer to the GHAD.
As provided in the approved Engineers’ Reports, the assessment limits in each of the four developments (Norris Canyon Estates, Henry Ranch, Elworthy Ranch, and Red Hawk) will continue to be adjusted for inflation annually. The proposed assessment levies for the Norris Canyon Estates, Henry Ranch, Elworthy Ranch, and Red Hawk developments for FY 2025/26 will be $690.20, $668.27, $1,157.77, and $1,941.36, respectively. This action would not preclude the GHAD Board from increasing or decreasing the levy of the assessment up to the inflation-adjusted assessment limit in the future.
The Magee Preserve development has not yet met the above conditions relating to the reserve, therefore the residential parcels within the Magee Preserve development will be assessed at the inflation-adjusted assessment limit of $2,857.74 per single-family residence for FY 2025/26.
The assessment levy 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 provided in the Engineer's Report.
The GHAD Board adopts a budget for GHAD operations each fiscal year. The GHAD Board is being requested to adopt the Fiscal Year 2025/2026 budget of $403,125 as prepared by the GHAD Manager and update the GHAD Manager payment limits under the existing Consulting Services Agreement to $145,560 as referenced in the attached Resolution No. 2025/01.
In addition, the GHAD Board is being requested to change the Consumer Price Index (CPI) reference month in each of the Engineer’s Reports for the development projects included in the GHAD to December. This will allow the annual assessment for all properties in the GHAD to be increased per the CPI on the same month each year and allow an exact assessment amount to be determined for each property during the budget preparation instead of waiting for the CPI to be published mid-year.
CONSEQUENCE OF NEGATIVE ACTION:
The GHAD will not be able to continue operation starting July 1, 2025, if the budget is not approved.