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BACKGROUND <br />At the meeting of May 20, 2008, the City Council approved the Engineer's Report <br />relating to each respective assessment district and scheduled a public hearing per the <br />requirements of the Geologic Hazard Abatement District (GRAD). <br />GRAD -Purposes and Description <br />Geologic Hazard Abatement Districts (GHADs) are districts formed specifically to <br />address geologic concerns. A GRAD may be formed for the purpose of prevention, <br />mitigation, abatement or control of a geologic hazard; also for mitigation or abatement of <br />structural hazards that are partly or wholly caused by geologic hazards. A "geologic <br />hazard" is broadly defined as an actual or threatened landslide, land subsidence, soil <br />erosion, or any other natural or unnatural movement of land or earth. However, <br />damage that is the result of an earthquake or fault movement is specifically exempted <br />from coverage by the GRAD, in part because the assessments to include protection <br />from land movement due to earthquake would be prohibitively high. Accordingly, <br />residents should not consider the existence of a GRAD as a substitute for earthquake <br />insurance. <br />To the extent open space, including City-owned open space, is included in GRAD <br />boundaries, the GRAD would only respond to geologic hazards in the open space that <br />are threatening improvements benefiting the private property owners paying the <br />assessments. Therefore, for example, the GRAD would not respond to a landslide in <br />the middle of an open space area that is not a threat to adjacent improvements: The <br />natural landslide condition would be allowed to remain in the open space area without <br />remediation. <br />A GRAD is a political subdivision of the State and is not an agency or instrumentality of <br />a local agency. A GRAD may acquire, construct, operate, manage or maintain <br />improvements on public or private lands and may exercise the power of eminent <br />domain. A GRAD may include lands in more than one local agency (city or county) and <br />the lands may be publicly or privately owned. The lands comprising the GRAD need not <br />be contiguous so long as all are specifically benefited by the proposed construction to <br />be undertaken by the GRAD. In addition, land may be annexed to an existing GRAD. <br />A GRAD is authorized to finance improvements through the Improvement Act of 1911, <br />the Municipal Improvement Act of 1913, and the Improvement Bond Act of 1915. A <br />GRAD may also accept financial or other assistance from any public or private source <br />and may borrow funds from a local agency, and the state and federal governments. <br />A GRAD may assess landowners for operation and maintenance of improvements <br />acquired or constructed under the GRAD law. These assessments, which attach as <br />liens on property, may be collected at the same time and in the same manner as <br />general taxes on real property. <br />Page 2 of 7 <br />