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The legislative body determines within 60 days of the close of the formation <br />hearing whether to order formation. <br /> <br />If the legislative body orders formation, it must also select an initial Board of <br />Directors for the GHAD. The legislative body may choose either to select five <br />landowners from the GHAD area, or seat itself on the initial GHAD Board. <br /> <br />Existing GHADs within the City of Pleasanton <br /> <br />Following the steps set forth above, the City has formed four GHADs: Oak Tree Farm <br />subdivision, Moiler Ranch subdivision, Laurel Creek Estates (The Preserve, Oak Hill Estates <br />and Kolb Ranch Estates) and Lemoine Ranch Estates. The Oak Hill Estates subdivision and <br />the Kolb Ranch Estates subdivision were both annexed into the Laurel Creek GHAD after the <br />formation of the original district; those annexations occurred on August 1, 2000 and July 20, <br />2004 respectively. All of the four existing GHADs are located on the west side of Foothill <br />Road and in areas where potential geologic hazards exist. The City Council has appointed <br />itself as the Board of Directors for each GHAD and appointed the Finance Director, City <br />Clerk, City Attorney and Public Works Director as officers of each District. <br /> <br />Post GHAD Formation Procedures/Effects of Proposition 218 <br /> <br />After the GHAD is formed, the Council/Board must take a number of steps before it becomes <br />operational, including passing a budget and levying an assessment. Before levying the <br />assessment, the Board must adopt a resolution declaring its intention to order that the cost and <br />expenses of maintaining and operating the district shall be assessed against the properties <br />benefiting thereby. The resolution is to contain a report setting forth the yearly estimated <br />budget, the proposed assessments to be levied, and a description of the method used in <br />formulating the assessments. <br /> <br />After the resolution is adopted, a notice is mailed to all property owners advising them of the <br />contents of the resolution and advising them of the time, date and place of the public hearing <br />when their protests can be heard. At the public hearing, the Board considers any protests and <br />makes any revisions to the proposed assessments. The Board may then confirm the <br />assessments and order the levy and collection of the assessments. <br /> <br />Proposition 218, enacted in the November 1996 general election, makes it more procedurally <br />complex, in certain situations, to levy the assessment. Generally speaking, after Proposition <br />218, property owners within an assessment district such as a GHAD must be given an <br />opportunity to vote on the annual assessment. A majority of those actually voting must vote in <br />favor of the assessment to levy it. For example, if only eleven (out of 100) property owners <br />voted, six votes could defeat the assessment. Because of this annual uncertainty, staff has <br />SR:05:171 <br />Page 5 of 9 <br /> <br /> <br />