GHAD 051716 - Laserfiche WebLink

As noted above, the proposed assessments fund geologic monitoring and related maintenance services which provide a special benefit to the properties within the GHADs and do not benefit the public at large. In addition, the GHADs were formed by consent of all original property owners (the developers). Since these criteria have been satisfied, the GHAD assessments are allowed to be increased by the amount of the ENR index without being subject to a Prop. 218 vote of present property owners. PUBLIC COMMENT All property owners within each of the GHADs will be notified of the Board of Directors meeting on June 21, 2016, to set the assessment amounts for the upcoming tax year. They will be notified by postcard that this staff report is available on the City's website (in addition to the normal postcard noticing information). It is expected that the Board will receive some public comment at the meeting. However staff has already received some input from within the Laurel Creek Estates GHAD as outlined below: 1. Staff has heard comments that the Laurel Creek Estates should not be subject to annual assessments until the reserve has depleted to an amount similar to the other GHADs. As detailed above, Laurel Creek Estates GHAD has a fund reserve amount that is larger than any of the other districts. While staff is not recommending the Laurel Creek Estates assessment be increased this year, staff is recommending the assessment be continued. The reasoning for not recommending the ENR increase is as follows: Last year when assessments were set it was noted that every Special Assessment District in Pleasanton (GHADs and Landscape Lighting Maintenance Districts- LLMDs) were created prior to Proposition 218. While GHADs have a built-in ENR adjustment allowed, the LLMDs do not. In accordance with Proposition 218 LLMDs have not increased their annual assessment since their creation. The LLMDs are becoming underfunded for normal operation, and there is little to no reserve available in any LLMD reserve for capital costs. With the ENR adjustment, all the GHADs are able to fund their annual operation and maintenance costs, but as stated above the reserves in each GHAD may not cover repair of significant landslides or eventual replacement of slope stabilization infrastructure. Staff committed to the Board of Directors in the case of GHADs, and the City Council in the case of LLMDs, to review each of the district's scope of work, revenues and expenses, and make recommendations as to whether changes are necessary. Depending on the proposed changes, a Proposition 218 compliant vote might be necessary to increase assessments. Staff has begun the work of reviewing the districts. This past year staff began reviewing two of the LLMDs, but time has not allowed staff to do any work on the GHADs. Intuitively we know the reserve amount in three of the GHADs is low. In those GHADs we are recommending the ENR increase again this year. In the case of Laurel Creek Estates GHAD, it is staffs recommendation that the ENR increase not be applied until we have had the opportunity to fully evaluate the Laurel Creek Estates GHAD as directed. Page 5 of 6