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BACKGROUND At the meeting of May 20, 2014, the GRAD Board of Directors approved the Engineer's Report relating to each respective assessment district and scheduled a public hearing per the requirements of the Geologic Hazard Abatement District. GHAD - Purposes and Description Geologic Hazard Abatement Districts (GHADs) are State-authorized districts which can be formed for the purpose of prevention, mitigation, abatement or control of a geologic hazard. A "geologic hazard" is an actual or threatened landslide, land subsidence, soil erosion, or other natural or unnatural movement of land. The GHADs assess landowners for operation and maintenance of improvements covered under the GHADs. These assessments are collected at the same time and in the same manner as property taxes. The annual assessments can be adjusted each year by an index2 to compensate for inflation. The current index allows for an increase of two percent. The annual assessments were last adjusted for inflation in fiscal year 2013-14. Existing GHADs within the City of Pleasanton At the request of residential property developers, the City formed four GHADs: Oak Tree Farm, Moller Ranch, Laurel Creek Estates (The Preserve, Oak Hill Estates and Kolb Ranch Estates) and Lemoine Ranch Estates. The Oak Hill Estates subdivision and the Kolb Ranch Estates subdivision were both annexed into the Laurel Creek GRAD after the formation of the original district; those annexations occurred on August 1, 2000, and July 20, 2004, respectively. All of the four existing GHADs are located on the west side of Foothill Road and in areas where potential geologic hazards exist. THIS YEAR'S ASSESSMENTS Oak Tree Farm An Engineer's Report for the Oak Tree Farm GHAD has been prepared. It concludes that funding is needed for the following on-going special services for properties within this GHAD: cleaning of retention basins, site inspections, erosion stabilization, preparation of the Engineer's Report, and City administrative costs. This year, the parcel assessment has been increased two percent according to the index (to $292). With 42 properties within the GHAD, including the City-owned sanitary sewer pump station, this year's revenue budget will be $12,264. Currently, the Oak Tree Farm GRAD has a fund reserve of $63,425 as of April 24, 2014; this reserve is to be used to pay for landslide repair work, which the original Plan of Control estimated would be needed approximately every ten years. This reserve is slowly being replenished because over the last several years the majority of the reserve funds were used to complete erosion repairs along the fire trail within the covered area. Damage resulting from an earthquake is specifically exempted from coverage by the GHAD. 2 The index is the Engineer News Record Construction Code Index for the San Francisco Bay Area. Page 2 of 4