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BACKGROUND GHAD - Purpose and Description A GHAD is a property assessment district authorized by California Public Resources Code §26500 to conduct bi-annual geologic and storm drainage infrastructure monitoring, to perform annual maintenance, and to repair slope stabilization infrastructure, significant landslides, or other geologic movement should it occur within the District. The source of funding for the GHAD is an annual assessment from each property within the District. 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. These undevelopable areas within the property are set aside as open space with infrastructure constructed to lessen the likelihood of damage from soil movement. The infrastructure includes drainage ditches, pipelines, rip rap armoring, etc. The GHAD funds the operation, monitoring, maintenance, repair, and eventually replacement of this infrastructure. There are four GHADs within the City of Pleasanton, all located on the west side of Foothill Road (listed from north to south): Laurel Creek Estates (120 properties), Moller Ranch (100 properties), Lemoine Ranch Estates (12 properties), and Oak Tree Farm (42 properties). Similar to any special assessment district, GHADs assess property owners for a benefit they receive that is special to them. Formation of each GHAD established that the City Council would serve as the Board of Directors. The Board of Directors establishes annual assessments based upon "Plan of Control" documents created for each District. After establishment of each GHAD, annual assessments have been collected from property owners in the same manner as property taxes. The City utilizes the services of a consultant to provide observation, geographic information system (GIS) mapping, and recommendation services for each of the four GHADs. The consultant visits each GHAD at least twice per year, once in the fall (before winter rain) and once in the spring (after winter rain). The consultant documents the performance of slope stabilization infrastructure with photographs and written notes. This information is mapped and uploaded to a GIS computer database for convenient access and historical record keeping. If a significant problem is observed, then the consultant will provide specific recommendations to remedy the issue. The consultant is also available on-call should a major storm event cause damage that requires an engineering intervention. Proposition 218 Compliance All four of the GHADs were created prior to the passage of Proposition 218 in November of 1996 and have an escalation factor to compensate for inflation. The assessments fund geologic monitoring and related maintenance services that provide a special benefit to the properties within the GHADs but do not benefit the public at large. Page 2 of 3