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5. Authorize the City Manager to execute a contract amendment with the City's GHAD <br /> consultant, ENGEO Incorporated. <br /> FINANCIAL STATEMENT <br /> The assessments provide revenue for the operation of each GHAD. A small portion of <br /> the revenue comes from the City. The City pays for two parcels within the Laurel Creek <br /> assessment ($866), one parcel within the Moller Ranch District ($132), and one parcel <br /> within the Oak Tree Farm District assessment ($355) as the City owns parcels of land <br /> within these districts. These parcels contain public facilities, such as water tanks and <br /> pump stations. The City's cost to administer the four GHADs is funded by the <br /> assessments. <br /> BACKGROUND <br /> GHAD - Purposes and Description <br /> Geologic Hazard Abatement Districts (GHADs) are authorized by California Public <br /> Resources Code §26500. Like any special assessment district, a GHAD assesses <br /> property owners for a benefit they receive that is special to them. GHADs are formed to <br /> prevent, mitigate, abate or control a geologic hazard within the district. A "geologic <br /> hazard" is an actual or threatened landslide, land subsidence, soil erosion, or other <br /> movement of land. Earthquake damage is exempted from coverage by the GHAD. <br /> GHADs are formed when a geotechnical investigation at the time of land subdivision <br /> reveals areas within the development that are unsuitable for housing or other structures <br /> due to evidence of prior or potential earth movement. These undevelopable areas within <br /> the project are set aside as open spaces. The developer is then obligated to construct <br /> infrastructure designed to lessen the likelihood that earth movement will occur or to <br /> minimize damage to developed areas should earth movement occur. The infrastructure <br /> often includes slope stabilization measures such as drainage ditches, pipe networks, <br /> and hillside armoring. The GHAD is the funding mechanism to operate, monitor, <br /> maintain, repair, and eventually replace this infrastructure or to address soil movement. <br /> The City Council has been designated as the Board of Directors for each GHAD. The <br /> developers, as authorized by the Board of Directors, established initial assessments <br /> based upon the "Plan of Control" documents created for each GHAD. The Plan of <br /> Control documents utilized each development's original construction plans as the basis <br /> for the monitoring, maintenance, and repair plan. The developers deposited funding into <br /> a reserve as "seed money" for eventual capital replacement needs. After the <br /> establishment of each GHAD, annual assessments have been collected from property <br /> owners at the same time and in the same manner as property taxes. <br /> Page 2 of 4 <br />