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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: JULY 15, 2025
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: AUTHORIZATION FOR THE CITY MANAGER TO VOTE IN
FAVOR OF SANTIAGO GEOLOGIC HAZARD ABATEMENT
DISTRICT (SGHAD) ASSESSMENT
ATTACHMENT (Y/N): YES ITEM # 05
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, authorize the City Manager to cast a "Yes" vote on behalf of the City of Anaheim for the Santiago Geologic Hazard Abatement District (SGHAD) assessment to fund ongoing operations and maintenance of the landslide mitigation system, at the SGHAD public hearing scheduled for August 4, 2025.
DISCUSSION:
The SGHAD was established to manage and mitigate landslide risks in the area surrounding Serrano Avenue and Avenida De Santiago, following the 1993 Santiago Landslide. The SGHAD oversees a system of wells, pumps, drains, and monitors that have effectively stabilized the land and protected homes for over three decades.
SGHAD operations were funded for decades by settlement proceeds, but those funds ran out in 2022, and an assessment was proposed for property owners in the District.
The City participated in that assessment and was allocated twelve percent (12%) of the SGHAD’s operating costs.
On February 13, 2025, the SGHAD Board of Directors passed Resolution 2025/01, approving the Engineer’s Report dated February 13, 2025, and initiating the process for a new assessment to fund ongoing operations and maintenance of the landslide mitigation system. On March 19, 2025, the SGHAD Board passed Resolution 2025/02 approving revisions to the Notice of Intent to Order an Assessment and Ballot. The SGHAD held a public hearing on May 12, 2025 to count ballots for this assessment, which narrowly failed to pass. The primary reason many of the residents voted against the assessment was the perception that the City was not paying enough into the assessment and wanted a larger contribution from the City.
The City met with the SGHAD to explore options to increase the City’s assessment with two guiding principles: to benefit the City by reducing maintenance costs and not supplanting assessments of other property owners. It is anticipated that the City’s annual maintenance expenditures will be reduced if an annual minimum of at least $20,000 (annually adjusted by the CPI adjustment applied to all other assessments) from the assessment revenues is devoted to deferred maintenance of Authorization for the City Manager to Vote in Favor of Santiago Geologic Hazard Abatement District (SGHAD) Assessment July 15, 2025
the dewatering and monitoring facilities related to the Santiago landslide. In recognition of the benefit accruing to the City by the SGHAD committing to such annual expenditures on deferred maintenance, a 40% premium is applied to the City’s equivalent assessment factors which will continue so long as the SGHAD meets the commitment of expending at least that amount ($20,000 plus any CPI adjustments) on such deferred maintenance each year. Under this new assessment formula, the City’s assessment is increased to 17.75% of the SGHAD’s operating costs and the resident’s assessment will remain the same as the previous assessment.
The City of Anaheim owns no legal parcels within the District, which likely means that it has no legal obligation to be assessed. However, the City does own street easements within the SGHAD boundaries and has the option to voluntarily participate in the assessment to the extent it serves a public purpose. Casting a "Yes" vote aligns with the City's commitment to ensuring the safety and stability of the affected neighborhoods. Approval of the assessment will provide necessary funding for the continued operation and maintenance of the landslide mitigation infrastructure, thereby safeguarding residents and properties within the district.
The SGHAD regular session meeting and public hearing is scheduled for Monday, August 4, 2025 at 6 p.m. at the East Anaheim Community Center (8201 East Santa Ana Canyon Road, Anaheim, CA 92808). The votes will be counted at this meeting.
IMPACT ON BUDGET:
The proposed annual assessment includes a contribution from the City of Anaheim in the amount of $62,447.41 for the first year and would increase annually by the Consumer Price Index. Sufficient funding is available in the Public Works Department’s General Fund Budget.
Respectfully submitted,
Rudy Emami
Public Works Director
Attachments:
1. Notice of Intent and Sample Ballot
2. Engineer’s Report
3. Ballot