To: Board of Directors
From: Wendt Ranch Geological Hazard Abatement District
Report Title: Wendt Ranch GHAD Resolution No. 2024/01 (Annual Budget)
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT Wendt Ranch GHAD (“GHAD”) Resolution No. 2024/01 adopting an assessment levy less than the assessment limit for FY 2024/2025 for Wendt Ranch, Alamo Creek, and Intervening (Monterosso) developments within the GHAD, adopting the GHAD budget for Fiscal Year 2024/2025, and updating the GHAD Manager payment limit pursuant to the Consulting Services Agreement as recommended by the GHAD Manager.
FISCAL IMPACT:
100% Wendt Ranch Geological Hazard Abatement District Funds.
BACKGROUND:
On February 12, 2002, the Contra Costa County Board of Supervisors adopted Resolution 2002/59 approving the formation of the Wendt Ranch Geologic Hazard Abatement District
(“GHAD”) and appointed itself to serve as the GHAD Board of Directors. On July 15, 2005, the GHAD Board of Directors (“Board”) adopted Resolution 2005/437 approving the annexation of the Alamo Creek and Monterosso developments into the GHAD. The most recent annexation occurred on August 3, 2021 with the Board’s adoption of Resolution 2021/03, which approved the annexation of the Somerset development into the GHAD.
As part of the preparation for the GHAD’s FY 2024/2025 budget, the GHAD Manager reviewed the current GHAD reserves. As the GHAD has exceeded its target reserve rate of accumulation forecast estimate in the approved 2002 and 2005 Engineer’s Reports for the Wendt Ranch, Alamo Creek, and Monterosso developments within the GHAD, staff is recommending an assessment levy less than the assessment limit for the Wendt Ranch, Alamo Creek, and Monterosso developments only for FY 2024/2025, and prepared a budget that reflects a lower assessment levy for FY 2024/2025.The GHAD Board on June 13, 2023 adopted an assessment levy less than the assessment limit for FY 2023/2024 (levied $383.08/ single family unit).
Staff is providing this recommendation based on the following conditions:
• Unencumbered reserve funds collected from within GHAD exceed the target reserve amount estimated in the approved 2002 and 2005 Engineer’s Report; and
• Reserve funds collected from within GHAD exceed the dollar amount estimated for a large-scale repair.
As provided in the approved Engineers’ Reports, the assessment limits in each of the three developments (Alamo Creek, Monterosso, and Wendt Ranch) will continue to be adjusted for inflation annually. The proposed assessment levy is $366.84 per single family residence for FY 2024/2025 for the Wendt Ranch, Alamo Creek, and Monterosso developments. 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.
On November 28, 2023, the GHAD Board adopted Resolution 2023/06 authorizing the levy of the assessment for GHAD responsibilities within the Somerset development. All residential properties within the Somerset development are expected to be subject to the levy of the GHAD assessment beginning in FY 2024/2025. To date, the GHAD has not accepted any Plan of Control responsibilities for the Somerset development; however, it is anticipated that the Somerset development will transfer Plan of Control responsibilities to the GHAD in FY 202420/25. The budget prepared for FY 2024/25 allows for expenses related to the Somerset development for Fiscal Year 2024/2025.
The Somerset development has not yet met the above conditions relating to the reserve, therefore the residential parcels within the Somerset development will be assessed at the inflation-adjusted assessment limit for FY 2024/2025.
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 Reports.
The GHAD Board is requested to adopt a budget for the GHAD operations each fiscal year. The GHAD Board is requested to adopt the Fiscal Year 2024/2025 budget of $483,132 as prepared by the GHAD Manager, which is attached to Resolution No. 2024/01, and to approve an assessment levy less than the assessment limit. In addition, the GHAD Board is 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 $163,950.
CONSEQUENCE OF NEGATIVE ACTION:
The GHAD will not be able to continue to operate 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 Fiscal Year 2024/2025 annual budget, updating GHAD Manager payment limits under the existing consulting services agreement, and approving an assessment levy less than the assessment limit for Fiscal Year 2024/2025 for the Wendt Ranch, Alamo Creek, and Monterosso developments within the Wendt Ranch GHAD.
WHEREAS, on February 12, 2002, the Contra Costa County Board of Supervisors adopted Resolution 2002/59 approving the formation of the Wendt Ranch Geologic Hazard Abatement District (GHAD) and appointed itself to serve as the GHAD Board of Directors.
WHEREAS, on July 15, 2005, the GHAD Board of Directors adopted Resolution 2005/437 approving the annexation of the Alamo Creek and Intervening Properties (Monterosso) developments into the GHAD.
WHEREAS, on August 3, 2021, the GHAD Board of Directors adopted Resolution
2021/03 approving the annexation of the Somerset development into the GHAD.
WHEREAS, the GHAD Board of Directors desires to adopt the budget for Fiscal Year 2024/2025 prepared by the GHAD Manager, ENGEO Incorporated for $483,132, attached hereto as Exhibit A, and to approve an assessment levy of $366.84 per single family residence for Fiscal Year 2024/2025 for the Wendt Ranch, Alamo Creek, and Monterosso developments, and to levy the inflation adjusted assessment limit for residences within the Somerset development.
WHEREAS, all residential properties in the Somerset development will be subject to the inflation adjusted assessment limit for FY 2024/2025.
WHEREAS, pursuant to Resolution No. 2013/02, the GHAD Board approved and updated the consultant services agreement with ENGEO, Inc., to act as Manager for the GHAD. This Agreement, in Section 1(c), 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 at $163,950.
NOW, THEREFORE, BE IT RESOLVED
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1. The GHAD Board approves the GHAD budget of $483,132 for the Fiscal Year 2024/25 attached as Exhibit A and incorporated herein by this reference and further approves an assessment levy less than the assessment limit of $366.84 per single family residence for Fiscal Year 2024/2025 for the Wendt Ranch, Alamo Creek, and Monterosso developments only within the GHAD; the assessment amount for Somerset properties remains at the inflation-adjusted assessment limit for FY 2024/25.
2. The GHAD Board adopts the payment limit for the GHAD Manager services at $163,950 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.