Copyright © 2022 by ENGEO Incorporated. This document
may not be reproduced in whole or in part by any means
whatsoever, nor may it be quoted or excerpted without the express written consent of ENGEO Incorporated.
HAYWARD SOMI DEVELOPMENT ANNEXATION
HAYWARD, ALAMEDA COUNTY, CALIFORNIA
ENGINEER’S REPORT
FOR HAYWARD SOMI DEVELOPMENT, TRACTS 8502 and 8614
SUBMITTED TO
Hayward SoMi, LLC
12647 Alcosta Boulevard, Suite 470
San Ramon, CA 94583
PREPARED BY
ENGEO Incorporated
January 6, 2022
PROJECT NO.
17479.000.000
ATTACHMENT 1
Hayward Geologic Hazard Abatement District Hayward SoMi Development Annexation 17479.000.000 Engineer’s Report
i of i January 6, 2022
TABLE OF CONTENTS
CERTIFICATION OF FILING .......................................................................................... 1 I. INTRODUCTION .................................................................................................... 3 II. BACKGROUND ..................................................................................................... 3 III. GEOLOGIC HAZARD ABATEMENT DISTRICT BOUNDARIES .......................... 3 IV. SERVICE LEVELS ................................................................................................. 3 V. DESCRIPTION OF THE IMPROVEMENTS MAINTAINED BY THE GHAD .......... 4 VI. ASSESSMENT METHOD ...................................................................................... 4 VII. ASSESSMENT - BUDGET ..................................................................................... 5 VIII. OWNER RESPONSIBILITIES ................................................................................ 6
EXHIBIT A – Legal Description and Plat
EXHIBIT B – Hayward GHAD Budget – Hayward SoMi Development Annexation
Hayward Geologic Hazard Abatement District Hayward SoMi Development Annexation 17479.000.000 Engineer’s Report
Page | 1 January 6, 2022
ENGINEER’S REPORT
HAYWARD
GEOLOGIC HAZARD ABATEMENT DISTRICT
HAYWARD SOMI DEVELOPMENT ANNEXATION
(Pursuant to the Public Resources Code of the State of California, Section 26500 et seq.)
CERTIFICATION OF FILING
The Geologic Hazard Abatement District (“ GHAD”) provides monitoring and maintenance of improvements related to geologic hazard management and other responsibilities as a landowner, within the Hayward SoMi Development portion of the Hayward GHAD. The GHAD also levies and collects assessments in order to perform its activities.
The GHAD responsibilities, which are the subject of this report, are defined as any activity that is necessary or incidental to the prevention, mitigation, abatement, or control of a geologic hazard, construction, maintenance, repair, or operation of improvement; or the issuance and servicing of bonds issued to finance any of the foregoing (Section 26505).
This report consists of seven parts, as follows:
I. INTRODUCTION
II. BACKGROUND
III. GEOLOGIC HAZARD ABATEMENT DISTRICT DIAGRAM
IV. SERVICE LEVELS
V. DESCRIPTION OF GHAD MAINTAINED IMPROVEMENTS
VI. ASSESSMENT METHOD
VII. ASSESSMENT LIMIT - BUDGET PROJECTION
Hayward Geologic Hazard Abatement District Hayward SoMi Development Annexation 17479.000.000 Engineer’s Report
Page | 2 January 6, 2022
The undersigned respectfully submits the enclosed Engineer’s Report.
Date: January 6, 2022 By: ENGEO Incorporated
_________________________________________, PE
Jeffrey A. Adams
I HEREBY CERTIFY that the enclosed Engineer’s Report was filed on the 18th day of January 2022.
_________________________________________
Patricia Curtin
Attorney and Clerk of the Board
Hayward Geologic Hazard Abatement District
Hayward, Alameda County, California
I HEREBY CERTIFY that the enclosed Engineer’s Report was approved and confirmed by the GHAD Board on the 18th day of January 2022.
_________________________________________
Eric Harrell
GHAD Manager
Hayward Geologic Hazard Abatement District
Hayward, Alameda County, California
Hayward Geologic Hazard Abatement District Hayward SoMi Development Annexation 17479.000.000 Engineer’s Report
Page | 3 January 6, 2022
ENGINEER’S REPORT
for
HAYWARD GEOLOGIC HAZARD ABATEMENT DISTRICT
HAYWARD SOMI DEVELOPMENT ANNEXATION
HAYWARD, ALAMEDA COUNTY, CALIFORNIA
for the
ESTABLISHMENT OF AN ASSESSMENT LIMIT
I. INTRODUCTION
The Hayward City Council formed the Hayward Geologic Hazard Abatement District (“GHAD” or “District”) on March 1, 2016 (Resolution No. 16 -030), under the authority of the California Public Resources Code, Division 17, Section 26500 et seq. The GHAD Board of Directors approved the annexation of the Hayward SoMi Development (“GHAD Annexation Area”) into the GHAD on November 16, 2021, with the approval of Resolution No. 21-03. The members of the Hayward City Council act as the Board of Directors of the GHAD.
II. BACKGROUND
The Hayward Board of Directors approved the Plan of Control for the Hayward SoMi Development Annexation (“Plan of Control”) with the approval of Resolution No. 21 -03 on November 16, 2021 . The Plan of Control describes the GHAD’s responsibilities to permanently monitor and maintain GHAD improvements within the GHAD Annexation Area. This Engi neer’s Report describes the establishment of an assessment level to fund GHAD activities necessary or incidental to geologic hazard mitigation, abatement, and control.
III. GEOLOGIC HAZARD ABATEMENT DISTRICT BOUNDARIES
The boundaries for the GHAD Annexation Area are shown in the legal description and plat attached hereto as Exhibit A.
IV. SERVICE LEVELS
The GHAD’s activities are those that are necessary or incidental to the prevention, mitigation, abatement, or control of geologic hazards including constructio n, maintenance, repair, or operation of any improvement; and the issuance and servicing of bonds issued to finance any of the foregoing.
The GHAD provides for the administration and review of facilities within the budgeted limits, including the following services:
1. Oversight of GHAD operations, including reporting to the GHAD Board of Directors.
2. In conjunction with the Alameda County Assessor’s Office, setting the annual levy of assessments on the property tax rolls.
Hayward Geologic Hazard Abatement District Hayward SoMi Development Annexation 17479.000.000 Engineer’s Report
Page | 4 January 6, 2022
3. Engagement of technical profess ionals to perform the monitoring duties as described in the Plan of Control.
4. Performance of GHAD maintenance activities in accordance with the Plan of Control. These maintenance activities include:
The GHAD is responsible for general monitoring, maintena nce, and repair of the concrete-lined drainage ditches, storm drain inlets and outlets in open space, subdrain outlets, and risers within the GHAD Annexation Area.
Monitoring and maintenance of measurement devices, such as piezometers, inclinometers, and tiltmeters, if any, within the GHAD Annexation Area.
Maintenance of existing property line/boundary fencing on Parcel “B” in Tract 8502 and Parcels “C” and “E” in Tract 8614.
Maintenance of debris benches and/or catchment structures within GHAD Annexati on Area.
Maintenance of storm drain inlets, outfall s and pipelines within Parcels “B” in Tract 8502 and Parcels “C” and “E” in Tract 8614.
Maintenance of slopes within GHAD Annexation Area.
Vegetation control for fire suppression on Parcel “B” in Tract 8502 and Parcels “C” and “E” in Tract 8614.
5. Preparation of annual GHAD budgets for approval by the GHAD Board of Directors.
V. DESCRIPTION OF THE IMPROVEMENTS MAINTAINED BY
THE GHAD
The GHAD -maintained improvements are described in the Plan of Control. In general, these improvements include drainage systems, including concrete -lined ditches in developed areas and open space; open-space storm drain inlets and outlets; subdrains and outlets; and selected retaining walls.
VI. ASSESSMENT METHOD
The improvements and GHAD responsibilities described in Section V are distributed within the GHAD Annexation Area. The improvements described in this document will confer the following special benefits to the assessed parcels:
1. Protection from slope instability.
2. Protection from erosion due to uncontrolled surface water.
3. Protection of water quality.
4. Protection from wild land fires due to unmanaged vegetation.
Hayward Geologic Hazard Abatement District Hayward SoMi Development Annexation 17479.000.000 Engineer’s Report
Page | 5 January 6, 2022
The GHAD assessment is distributed among all residential and commercial property owners within the GHAD Annexation Area. The improvements and responsibilities listed in Section V provide specific benefits to the properties within the GHAD Annexation Area and the improvements are constructed for the benefit of those assessed and not the general public.
The GHAD Annexation Area consists of 123 townhomes and 66 condominiums, for a total of 189 residential units . In addition, approximately 8,049 square feet of commercial space and 2,773 square feet of Homeowner’s Association common area will be constructed with in the development. The total number of residential units and area of commercial space within the GHAD Annexation Area was considered in light of the annual GHAD Annexation Area budget in developing the annual assessment amount.
The Engineer hereby finds that the residential properties within the GHAD Annexation Area receive approximately equal special benefit from the work and improvements within the GHAD based on the average lot size divided by the number of units within each townhome and condominium bui ldings, respectively . As a result, the GHAD assessment for the GHAD Annexation Area is distributed among all owners of parcels as follows:
PRODUCT TYPE (SHOWING
AVERAGE LOT SIZE PER UNIT) ASSESSMENT RATIO NUMBER OF UNITS Townhome (1,683 sq. ft.) 1.0 123
Condominium (1,335 sq. ft.) 0.8 66
A financial analysis was performed to provide a framework for an operating budget for the on-going abatement, mitigation, prevention and control of geologic hazards within the GHAD Annexation Area. In preparation of the budget, several factors were considered including:
1. Site geology
2. Remedial grading
3. Proximity of geologic hazards to proposed residences
4. Improvements and structures
5. Site access considerations
6. Elements requiring routine maintenance, including:
Surface drainage facilities
Graded slopes
Retaining walls
Fire breaks
VII. ASSESSMENT - BUDGET
The purpose of this Engineer’s Report is to establish the assessment level and the apportionment of the assessment within the GHAD Annexation Area as required under Proposition 218. The annual budget in each subsequent fiscal year will apprise the GHAD Board of Directors of the estimated budget for the upcoming year.
Based on the estimated expenses for on -going operations, and allowing for larger (approximately $300,000) geologic events at 20-year intervals and accumulation of a reserve of $1,310,000 by 2061 (Fiscal Year 2021/2022 dollars ), a budget was prepared for the purpose of estimating initial assessment levels (Exhibit B).
Hayward Geologic Hazard Abatement District Hayward SoMi Development Annexation 17479.000.000 Engineer’s Report
Page | 6 January 6, 2022
The Engineer recommends an annual assessment li mit for the GHAD Annexation Area of $567 per single -residential townhome unit and $454 per single -residential condominium unit (Fiscal Year 2021/2022 dollars). The proposed initial assessment level will be automatically adjusted annually on June 30 to refl ect the percentage change in the San Francisco -Oakland- San Jose Consumers Price Index for All Urban Consumers. The Engineer also recommends an annual assessment limit of $0.25 per square foot of commercial space. The planned habitable non-residential sp ace (approximately 2,773 square feet) intended for common area is not subject to an assessment. The residential and commercial space assessments are to be levied in conjunction with the issuance of a building permit for the assessed parcel.
While the assump tions and estimated expenses listed in Exhibit B were used to determine the assessment levels for the GHAD Annexation Area, they do not represent the actual budget for any one year of the GHAD’s operation, since assessment of the individual parcels will be based on the issuance of building permits, which will occur over a number of years. In addition, the Engineer anticipates that the projected expense amounts will be reached over time and that these amounts will be inflation-adjusted in the year that the expenses occur.
Pursuant to the schedule set forth in Section 6.4 of the Plan of Control for the Hayward SoMi Development, the GHAD reserve at the time of transfer must have a minimum of $107,000. In addition, all 189 residential units shall be subject to the levy of the GHAD assessment. The minimum reserve amount represents the estimated total assessments that will be collected from within the Hayward SoMi Development during the period the Owner is responsible for all GHAD activities. The reserve amount re quirement may be satisfied by including remaining cash and receivables from the Alameda County Tax Collector during the period that the Owner of the Hayward SoMi Development is responsible for performing the GHAD activities. Additional funds may be require d of the developer in order to satisfy the above -stated minimum reserve requirement and shall be provided to the Hayward GHAD prior to its acceptance of the monitoring and maintenance responsibilities within the Hayward SoMi Development.
VIII. OWNER RESPONSIBILITIES
Hayward SoMi, LLC (“Owner”) is responsible for managing and maintaining the GHAD Annexation Area until the GHAD accepts responsibility for the GHAD Improvements as set forth in the Plan of Control. In addition, the Owner is responsible for funding a ny necessary GHAD functions or business undertaken for the GHAD Annexation Area that the GHAD Officers or Board of Directors determine are necessary before the GHAD accepts the GHAD Improvements. If the Owner fails to fund all or a portion of these costs, the costs shall be covered by the funds generated by and for the GHAD Annexation Area (i.e., through the assessment) and the Owner shall be required to reimburse the GHAD for such costs before the GHAD can accept monitoring and maintenance responsibilities for the GHAD Improvements.
The GHAD may utilize funds generated by or for the GHAD Annexation Area to conduct any necessary GHAD functions or business for the GHAD Annexation Area required before the GHAD accepts the GHAD improvements. Such functions and business can include periodic reporting to the GHAD Board of Directors and work performed by GHAD Officers to verify the GHAD is implemented in accordance with the Plan of Control and GHAD Law.
EXHIBIT A
LEGAL DESCRIPTION AND PLAT
EXHIBIT B
BUDGET – January 6, 2022
17479.000.000
January 6, 2022
Hayward Geologic Hazard Abatement District – Hayward SoMi Development Annexation
Budget – January 6, 2022
ASSUMPTIONS
Total No. of Residential Units- Actual 189
Equivalent Assessment Units 175.8
Annual Assessment per Townhome Unit (FY 2021/2022) $567 Annual Assessment per Condominium Unit (FY 2021/2022) $454 Approximate Total Habitable Commercial Building Area (square feet) 8,049 Annual Assessment per Habitable Commercial (square feet) $0.25 Annual Adjustment in Assessment (estimated) 2.25%
Inflation (estimated) 2.25%
Investment Earnings (estimated) 4.5%
Frequency of Large-Scale Repair (years) 20
Cost of Large-Scale Repair (current $) $300,000
ESTIMATED ANNUAL EXPENSES IN 2021/2022 DOLLARS
Administration (Manager, Treasurer, Clerk, and Legal Counsel) $16,000 Outside Administration Services, Membership, and Insurance $3,699 Monitoring Activities $3,825
Maintenance and Operation $15,170
Capital Improvements $26,549
Major Repair (Annualized) $ 15,000
Miscellaneous & Contingency (10%) $6,524
Reserve $14,959
TOTAL
$101,726
www.engeo.com