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1. Focus on Prevention. Through the development and implementation of a Plan of Control, a CHAD acts to prevent damage resulting from earth movement by identifying and monitoring potential geologic hazards and undertaking improvements as appropriate. 2. Ability to Respond to Unforeseen Events. When unforeseen hazards arise, GHADs, as existing agencies, are in place with the technical and organizational resources and funding capability needed to respond quickly and effectively. 3. Improved Method of Collecting Assessments. GHADs are authorized to collect assessments along with the general property tax. This avoids requiring separate collection by a private entity, such as a homeowners' association. 4. Concerns Over Liability Less Likely to Discourage Needed Actions. In addition, under state law (Government code sections 865 et seq.), GHADs are given a degree of immunity from liability for actions they undertake. The State Legislature intended that this provision encourage local public entities to take remedial action to abate earth movement. Procedure to Create GHADs The basic steps for formation are: 1. The applicant or local agency prepares a Plan of Control. The Plan of Control must be attached to the formation petition and, thus, is before the public and the legislative body throughout the decision making process. The Plan of Control must be prepared by a certificated engineering geologist and describe geologic hazards, their location, the affected areas, and a plan for prevention, mitigation, abatement and control of these hazards. The Plan of Control serves as a "general plan" for the CHAD and addresses the GHAD's ongoing activities, including the monitoring of geologic conditions, identification of geologic hazards, construction of needed improvements, and the maintenance, repair, and replacement of facilities. 2. The legislative body must adopt a resolution declaring that it will be subject to the statutory provisions for initiating formation proceedings. 3. A petition signed by the owners of at least 10 percent of the property within the proposed CHAD is presented to the legislative body. 4. The legislative body sets a hearing with notice to property owners within the CHAD area. Property owners within the proposed GHAD may object to formation. If it appears that owners of greater than 50 percent of the assessed valuation of the GRAD area object, the legislative body must abandon the formation proceedings. Page 3 of 7