GEOLOGIC HAZARD ABATEMENT DISTRICT

FINANCIAL STATEMENT Funding of these GHADs will have a minimal financial impact on the City. Due to Proposition 218, the City now pays for two parcels within the Laurel Creek Estates District (total of $800), one parcel within the Moller Ranch District ($122), and one parcel within the Oak Tree Farm District ($328) as the City owns parcels of land within these Districts. These parcels contain public facilities such as water tanks and pump stations. Staff administration costs for these Districts will continue to be funded by the assessments. BACKGROUND GHAD - Purposes and Description Geologic Hazard Abatement Districts (GHADs) are authorized by California Public Resources Code §26500, and are 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. Movement or damage to land due to an earthquake is specifically exempted from coverage by the GHAD. GHADs are formed when a geotechnical investigation at the time of development reveals land areas within the property that are unsuitable for housing or other structures due to evidence of prior earth movement or the potential for future earth movement. These undevelopable areas within the property are set aside as open space. In these open spaces, based upon the findings of the geotechnical investigation, the developer constructs infrastructure designed to lessen the likelihood that earth movement will occur, and to minimize damage to developed areas should earth movement occur. The infrastructure often includes slope stabilization measures such as drainage ditches, pipelines, rip rap armoring, etc. The CHAD is the funding mechanism to operate, monitor, maintain, repair, and eventually replace the slope stabilization infrastructure, and to repair soil movement or landslides should they occur. A GHAD, like any special assessment district, is designed to assess property owners for a benefit they receive that is special to them. The developers, in conjunction with the City, created each of the GHADs to operate, monitor, maintain, repair and eventually replace the slope stabilization infrastructure they built as part of their respective housing developments. The developers also dedicated in fee title, all the open space to the City, or in some cases to the HOA, and established that the City Council would serve as the Board of Directors of each CHAD. The developers and the Board of Directors established the initial assessments based upon "Plan of Control" documents created for each District. The Plan of Control documents utilized each development's original construction plans as the basis for the repair and maintenance plan. The developers also deposited funding into a reserve as "seed money" for eventual capital replacement needs. After establishment of the GHAD, annual assessments have been collected from property owners at the same time and in the same manner as property taxes. Page 2 of 5