HAYWARD GEOLOGIC HAZARD ABATEMENT DISTRICT
PROGRAM BUDGET FOR FISCAL YEAR 2023/24
ATTACHMENT III
2010 Crow Canyon Place, Suite 250 San Ramon, CA 94583 (925) 866-9000 Fax (888) 279-2698 www.engeo.com
May 8, 2023
Hayward Geologic Hazard Abatement District Board of Directors Chair Mark Salinas
Boardmember Angela Andrews
Boardmember Ray Bonilla Jr.
Boardmember Dan Goldstein
Boardmember Julie Roche
Boardmember George Syrop
Boardmember Francisco Zermeño
Hayward Geologic Hazard Abatement District
777 B Street
Hayward, CA 94541
Subject: The Reserve (La Vista) Development
Hideaway (Ersted Property) Development
Hayward SoMi Development
Hayward Geologic Hazard Abatement District
Hayward, California
PROGRAM BUDGET FOR FISCAL YEAR 2023/24
Dear Chair Salinas and Boardmembers:
Attached is the program budget for the Hayward Geologic Hazard Abatement District (GHA D) for Fiscal Year (FY) 2023/24. The proposed program budget is $162,125. The budget expenses break down into the following amounts.
Major Repair ................................ ................................ ....... $0 Preventive Maintenance and Operations .................. $114,500 Special Projects ................................ ................................ .. $0 Administration ................................ ............................. $28,700 Additional - Outside Professional Services .................. $18,925
The budget anticipates FY 2023/24 revenue of $135,295 with an estimated decrease of $26,830 in the reserve fund. A summary of the expenses is shown on Table 3 , followed by a brief description of each budget item on the following pages.
If you have any questions regarding the contents of this letter, please contact us.
Sincerely,
Hayward Geologic Hazard Abatement District
ENGEO Incorporated, GHAD Manager
ENGEO Project No. 6671.002.022
Haley Ralston Eric Harrell
hjr/eh/ar
Hayward Geologic Hazard Abatement District Board of Directors 6671.002.022 Hayward Geologic Hazard Abatement District May 8, 2023
PROGRAM BUDGET FOR FISCAL YEAR 2023/24 Page 1
HAYWARD GEOLOGIC HAZARD ABATEMENT DISTRICT
PROPOSED PROGRAM BUDGET
FISCAL YEAR 2023/24
The following proposed program budget summarizes the anticipated revenues and expenditures for FY 2023/24 for the Hayward Geologic Hazard Abatement District (GHAD), which includes The Reserve ( formerly known as La Vista (Tract 7620)), Hideaway (formerly known as Ersted Property (Tract 8439)), and Hayward SoMi (Tracts 8605 and 8614) developments. The structure of the Hayward GHAD is shown below.
EXHIBIT 1: Hayward GHAD
The GHAD has accepted maintenance and monitoring responsibilities for the following parcels within the District for only The Reserve (La Vista) development as listed on Table 1. In addition, those parcels that are owned by the GHAD are identified. Maintenance, monitoring responsibilities, and ownership for the listed parcels were acc epted by resolution on February 25, 2020.
TABLE 1: Accepted Parcels within The Reserve Development ASSESSOR’S PARCEL NUMBER DESCRIPTION (Tract 7620) GHAD OWNERSHIP 83-477-4 Parcel C Yes
83-480-1 Parcel D Yes
83-478-1 Parcel E No
83-478-2 Parcel F No
83-478-3 Parcel G No
83-478-4 Parcel H No
83-478-5 Parcel I No
83-479-1 Parcel J No
Hayward Geologic Hazard Abatement District Board of Directors 6671.002.022 Hayward Geologic Hazard Abatement District May 8, 2023
PROGRAM BUDGET FOR FISCAL YEAR 2023/24 Page 2
ASSESSOR’S PARCEL NUMBER DESCRIPTION (Tract 7620) GHAD OWNERSHIP 83-479-2 Parcel K No
83-479-3 Parcel L No
83-479-4 Parcel M No
83-480-2 Parcel N Yes
83-478-6 Parcel O Yes
83-477-6 Parcel Q No
83-477-7 Parcel R No
83-478-7 Parcel S No
83-477-8 Parcel T No
83-480-3 Parcel U Yes
83-480-4 Parcel V Yes
83-75-2-15 Unsurveyed Remainder Yes
83-75-2-9 La Vista LP 2006-301610 Yes
83-75-2-11 La Vista LP 2007-408664 Yes
83-75-2-13 La Vista LP 2007-408664 Yes
83-125-1-18 La Vista LP 2007-408664 Yes
83-125-1-21 La Vista LP 2007-408664 Yes
83-477-1 Public Roads No
Various Residential Lots 1 through 179 No
Maintenance and monitoring responsibilities for the remaining pr operties within The Reserve development not listed above are the responsibility of the individual property owners . The parcels listed on Table 2 within The Reserve development have been offered to the GHAD but have not yet been accepted by the GHAD due to “punchlist” items that remain to be completed.
TABLE 2: Parcels not yet accepted within The Reserve Development ASSESSOR’S PARCEL NUMBER DESCRIPTION (Tract 7620) GHAD OWNERSHIP 83-477-2 Parcel A No
83-480-3 Parcel B Yes
83-477-5 Parcel P No
Within this budget, it is anticipated that during the 2023/24 fiscal year, Parcel B may be transferred to the Hayward GHAD and these expenses h ave been anticipated in FY 2023/24 budget estimates. Based on our discussions with the City of Hayward , construction on the Pa rk site (Parcel “A”) will start in early 2023 ; therefore, the future GHAD -maintained improvements on Parcel A may be offered for transfer in the 2023/24 fiscal year and GHAD expenses for monitoring and maintenance of these improvements are included in this budget.
Parcels within the Hideaway (Ersted) development will be eligible for transfer during the 2023/24 fiscal year, as eligibility occurs a minimum of 3 years after the issuance of the first residential building permit. The first residential per mit wa s issued on D ecember 18, 2020; therefore, transfer of responsibilities cannot occur earlier than December 2023. Additionally, no parcels within the Hayward SoMi development are yet eligible for transfer as eligibility occurs a minimum of 3 years afte r the issuance of the first residential building permit, which was during fiscal year 2021/2022.
Hayward Geologic Hazard Abatement District Board of Directors 6671.002.022 Hayward Geologic Hazard Abatement District May 8, 2023
PROGRAM BUDGET FOR FISCAL YEAR 2023/24 Page 3
The GHAD is funded through real property assessments. The initial assessment limit s were approved by the Board of Directors. The assessment limits are adjusted annually on June 30 to reflect the percentage change in the San Francisco -Oakland-Hayward Consumers Price Index (CPI) for All Urban Consumers.
The annual assessment limits are shown in Table 3.
TABLE 3: Actual CPI Adjustments and Assessment Limit for Residential Properties FISCAL
YEAR
INDEX
DATE
SAN
FRANCISCO-
OAKLAND-
HAYWARD
CPI (JUNE
/JUNE)
THE RESERVE
ANNUAL
ASSESSMENT
LIMIT AND
LEVY1
ERSTED
PROPERTY
ANNUAL
ASSESSMENT
LIMIT AND
LEVY1
HAYWARD
SOMI
TOWNHOMES
ANNUAL
ASSESSMENT
LIMIT AND
LEVY1
HAYWARD SOMI
CONDOMINIUMS
ANNUAL
ASSESSMENT
LIMIT AND
LEVY1
2016/2017 $1,502.00
2017/2018 6/30/2017 3.48% $1,554.30
2018/2019 6/30/2018 3.91% $1,615.03 $932.00
2019/2020 6/30/2019 3.22% $1,666.96 $961.96
2020/2021 6/30/2020 1.62% $1,693.90 $977.51
2021/2022 6/30/2021 3.16% $1,747.34 $1,008.35 $567.00 $454.00 2022/2023 6/30/2022 6.80% $1,866.142 $1,076.91 $605.55 $484.87 2023/2024 2/28/2023 5.0%3 $1,959.453 $1,130.753 $635.833 $509.113 1 If assessment limit is an odd number the annual levy is rounded down to nearest even cent. 2 For FY 2022/23 the assessment levy was suspended for The Reserve development only. 3 Assessment limit estimate based on Consumers Price Index through February 2023.
For FY 2022/23, all 179 residential parcels within The Reserve development, all 59 residential parcels in the H ideaway deve lopment, and 43 of 189 res idential units in the Hayward SoMi development were subject to the levy of a GHAD assessment. Parcels are subject to the levy starting the first fiscal year following iss uance of a building permit. As discussed below, an assessment was not levied on residential parcels within The Reserve development in FY 2022/23, as minimum account balance and other conditions were met for this development. The final assessment roll prepared for the 2022/23 fiscal year and submitted to the Alameda County Assessor’s Office identifie d 60 parcels subject to the levy of the GHAD assessment. T he total levy amount for the 2022/23 FY was $87,041.46.
Based on the San Francisco-Oakland-Hayward CPI data reported through February 2023, for budgeting purposes, we hav e estimated a FY 2023/24 annual inflation rate adjustment of 5 percent. We estimate that 116 residential units will be subject to asse ssment in FY 2023/24.
Parcels a re subject to the levy s tarting the first fiscal year following issuance of a building permit.
As shown on Graph 1 below, in FY 2022/2023 the GHAD has exceeded the target reserve rate of accumulation forecast in the approved 2016 Engineer’s Report for The Reserve development.
The excess revenue is primarily due to lower expenses than anticipated, as discussed below. In general, we have, and may in the future , recommend an annual assessment levy amount less than the assessment limit if the following conditions are met.
• Unencumbered reserve funds collected from within a development e xceed the target reserve amount estimated in the approved Engineer’ s Report or unencumbered reserve funds collected from a development exceed the target reserve.
Hayward Geologic Hazard Abatement District Board of Directors 6671.002.022 Hayward Geologic Hazard Abatement District May 8, 2023
PROGRAM BUDGET FOR FISCAL YEAR 2023/24 Page 4
• Reserve funds collected from within a development exceed the dollar amount estimated for a large-scale repair.
• Plan of Control responsibilities have been transferred from the developer to the GHAD.
As the above conditions have been met for T he Reserve d evelopment, the budget prepared provides that the residential parcel levy be suspended for FY 2023/24. F iscal Year 2023/24 levies for the Hideaway and SoMi Hayward Developments would still be imposed at the assessment limit.
The GHAD Treasurer has estimated that dividend and interest income for FY 2023/24 should be approximately 2 to 3 percent above the rate of inflation . For budgeting purposes, we have assumed the lower estimate ( 2 percent) when estimating dividend and interest income. The GHAD Treasure r mai ntains an estimate that the long -term infl ation rate will average approximately 2 to 2½ percent, but in FY 2023/24 may be above this level. We have assumed an inflation rate of 5 percent for esti mating total revenues in Table 4, based on CPI published through April 2023.
TABLE 4: Estimated Revenue
FY 2023/24 LEVY/REVENUE
ESTIMATE
Residential Units (The Reserve) 0
Residential Units (Hideaway) 59
Residential Units (Hayward SoMi) 57
Assessment Revenue $100,295
Investment Income $35,000
Total Revenues $135,295
The budget is divided into fou r categories including Major Repair , Preventive Maintenance and Operations, Special Projects , and Administration and Accounting. As needed, the GHAD Manager, in its discretion, may reallocate funds within the b udget. A description of each of the categories is provided below. In general, the budget amounts listed are based on the Engineer’s Reports approved by the Hayward GHAD Board of Directors in 20 16 for The Reser ve development and in 20 19 f or the Hideaway development . The budget amounts have been inflation adjusted to provide the estimates.
MAJOR REPAIR
Included within the major repair category are those repair or improvement projects that are intermittent and, by their nature, do not fit within a scheduled maintenance program. Minor slope repair and er osion control items are generally funded within the Preventive Maintenance and Operations category. For the purp oses of this budget, we define major repairs as those estimated at over $50,000.
There are currently no major repair projects anticipated in th e FY 2023/24 budget within the GHAD-maintained areas of the Hayward GHAD. The reserve portion of the budget allo ws for funding toward these unpredictable events.
Hayward Geologic Hazard Abatement District Board of Directors 6671.002.022 Hayward Geologic Hazard Abatement District May 8, 2023
PROGRAM BUDGET FOR FISCAL YEAR 2023/24 Page 5
PREVENTIVE MAINTENANCE AND OPERATIONS
Preventive maintenance and operations include slope st abilization services, erosion protection, and professional services within the District. Professional services i nclude site -monitoring events as specified in the GHAD Plan of Control. Slope stabilization and erosion protection responsibilities include the open-space slopes and drainage swales. GHAD-maintained improvements generally include detention and water -quality basins, maintenance roads, concrete-lined drainage ditches, retaining walls, subsurface drainage facilities, storm drain facilities, trails, and debris benches.
SPECIAL PROJECTS
The Special Projects category allows the GHAD to budget for projects beneficial to the GHAD that do not fit into one of the other three categories. Although not proposed in the FY 2023/24 budget, special projects can include items such as global positioning system (GPS)/geographic information system (GIS) development for GH AD-maintained improvements; website development and maintenance; and reserve studies to re-evaluate the financial condition of the GHAD.
There are cu rrently no special proje cts an ticipated in the FY 2023/24 budget within the GHAD-maintained areas of the Hayward GHAD.
ADMINISTRATION AND ACCOUNTING
This category includes a dministrative expenses for tasks of the G HAD Manager, clerical and accounting staff related to the operat ion and administration of the GHAD . The budget amounts listed are based on the Engineers’ Reports approved by the Hayward GHAD Board of Directors in 2016 for The Reserve (La Vista) development and in 2019 for the Hideaway (Ersted Property) development. The budget amounts have been inflation adjusted to provide the listed budget estimates.
Hayward Geologic Hazard Abatement District Board of Directors 6671.002.022 Hayward Geologic Hazard Abatement District May 8, 2023
PROGRAM BUDGET FOR FISCAL YEAR 2023/24 Page 6
TABLE 5: Summary of Proposed Fiscal Year 2023/24 Budget
BUDGET ITEM
FY
2022/2023
BUDGET
FY
2022/2023
ESTIMATED1
FY
2023/24
FORECAST
PERCENT OF
TOTAL
EXPENDITURES
(FY 2023/24)
MAJOR REPAIRS
Total $0 0%
PREVENTIVE MAINTENANCE AND OPERATIONS
Professional Services
Open Space Scheduled Monitoring Events $9,000 $9,000 $10,500 Heavy Rainfall Monitoring Events $1,000 $1,942 $2,000
Detention Basin Scheduled Monitoring Events $2,000 $2,000 $2,000 Detention Basin Heavy Rainfall Monitoring Event $1,000 $965 $1,000 Subtotal $13,000 $13,907 $15,500 9%
Maintenance and Operations
Sediment Removal - Concrete Structures $9,000 $9,300 $10,000 Water Quality/Detention Basin Facilities $10,000 $5,800 $10,000 Trail and Fence Maintenance $3,000 $600 $6,000
Slope, Erosion Repairs, and Minor Repairs $23,000 $9,203 $38,000 Vegetation Control $18,000 $14,100 $20,000
Subdrain Outlets $18,000 $10,939 $5,000
Conservation Easement Activities $10,000 $0 $10,000
Subtotal $91,000 $49,942 $99,000 61%
Preventive Maintenance and Operations Total $104,000 $63,849 $114,500
SPECIAL PROJECTS
Total $0 $0 $0 0%
ADMINISTRATION – GHAD MANAGER
Administration $21,400 $21,400 $25,500
Annual Report and Budget Preparation $2,400 $2,400 $3,200 Subtotal $23,400 $23,400 $28,700 18%
Professional Services - Nontechnical
Assessment Roll and Levy Update Preparation $1,750 $1,750 $1,750 GHAD Attorney $7,000 $7,000 $7,000
GHAD Treasurer $5,000 $2,600 $5,000
GHAD Clerk $1,500 $1,500 $1,500
Alameda County Assessor’s Fees $1,400 $1,400 $2,000
California Association of GHADs Membership $170 $169 $175 Insurance $1,350 $1,500 $1,500
Subtotal $18,170 $15,919 $18,925 12%
Administration and Accounting Total $41,570 $39,319 $47,625 TOTAL PROPOSED EXPENDITURES $145,570 $103,168 $162,125 100%
Hayward Geologic Hazard Abatement District Board of Directors 6671.002.022 Hayward Geologic Hazard Abatement District May 8, 2023
PROGRAM BUDGET FOR FISCAL YEAR 2023/24 Page 7
BUDGET ITEM
FY
2022/2023
BUDGET
FY
2022/2023
ESTIMATED1
FY
2023/24
FORECAST
PERCENT OF
TOTAL
EXPENDITURES
(FY 2023/24)
ESTIMATED REVENUE
Beginning Balance
Balance (June 30, 2022) $993,768
Estimated FY 2022/23 Revenue
Assessment Income $87,041
Investment Income $21,548
Estimated Expenses 2022/23
Estimated Expenses
through 6/30/2023 $102,622
ESTIMATED RESERVE
ON JUNE 30, 2023 $999,735
Estimated 2023/24 Revenue
Estimated FY 2023/24
Assessment $100,295
Estimated FY 2023/24
Investment Income $35,000
Estimated 2023/24
Expenses
Estimated Expenses
through June 30, 2024 $162,125
ESTIMATED RESERVE
ON JUNE 30, 2024 $972,905
For FY 2023/24, the payment limit for the GHAD Manager, ENGEO, is set at $62,000. The tasks included withi n the payment limit may include oversight of maintenance and repair projects, administration, and monitoring events, as summarized in Table 6.
TABLE 6: Payment Limit
TASK AMOUNT
Scheduled and Heavy Rainfall Monitoring Events $15,500
Slope Stabilization and Erosion Repairs1 $7,600
Water Quality Detention Basin Maintenance1 $2,000
Trail and Fence Maintenance1 $1,200
Sediment Removal - Concrete Structures1 $2,000
Vegetation Control1 $4,000
Subdrain Outlets $1,000
Administration $25,500
Budget Preparation $3,200
TOTAL $62,000
1 Dependent on maintenance and/or repair activities by the GHAD during FY 2023/24. The GHAD Manager, ENGEO, payment limit is 20% of the total budget item.
Hayward Geologic Hazard Abatement District Board of Directors 6671.002.022 Hayward Geologic Hazard Abatement District May 8, 2023
PROGRAM BUDGET FOR FISCAL YEAR 2023/24 Page 8
As shown on the graph below, the forecast cumulative reserve is above the amount estimated in the 2016 Engineer’s Reports and is estimated to reach approximately $ 10,000,000 by 2056.
The GHAD reserve is intended to fund unanticipated expenses that may occur.
GRAPH 1: Forecast and Actual Cumulative Reserve
MAJOR REPAIRS
There are currently no major repair projects anticipated in the FY 2023/24 budget within the GHAD-maintained areas of the Hayward GHAD. While no major repairs are ongoing a t this time, by their nature, major repairs , such as landslides , are unpredictable a nd could occur during FY 2023/24. The reserve portion of the budget allow s for th e funding toward these unpredictable events.
PREVENTIVE MAINTENANCE AND OPERATIONS
Professional Services
Open Space Scheduled Monitoring Events
As provided in the Plan of Control, there are two scheduled monitoring events within the GHAD that will occur during each calendar year.
Estimated Budget: $10,500
Hayward Geologic Hazard Abatement District Board of Directors 6671.002.022 Hayward Geologic Hazard Abatement District May 8, 2023
PROGRAM BUDGET FOR FISCAL YEAR 2023/24 Page 9
Open Space Heavy Rainfall Events
We have budgeted for one heavy rainfall-monitoring event during the 2023/24 winter season. In the initial Engineer’s Report, we anticipated that a heavy rainfall-monitoring event would be needed on average once every two years.
Estimated Budget: $2,000
Water Quality/Detention Basin Scheduled Monitoring Events As provided in the Plan of Con trol, there are two scheduled monitoring events within the GHAD that will occur d uring each calendar year . The GHAD has not yet acquired detention basin monitoring or maintenance on Parcel A and does not expect to do so during the 2023/24 FY.
Estimated Budget: $2,000
Water Quality/Detention Basin Heavy Rainfall Events
We have budgeted for one heavy rainfall-monitoring event during the 2023/24 winter season. In the initial En gineer’s Report, we anticipated that a heavy rainfall-monitoring event would be needed, on average, once every two years.
Estimated Budget: $1,000
Maintenance and Operations
Sediment Removal - Concrete Structures
This budget item is to provide for the annual removal of vegetation, cleaning, sealing, and minor repair of concrete-lined drainage ditches within The Reserve development.
Estimated Budget: $10,000
Water Quality/Detention Basin Facilities
The budget item allows for ongoing maintenance activities , as described in the operations and maintenance manual.
Estimated Budget: $10,000
Trail and Fence Maintenance
This budget item includes gravel -surfaced road maintena nce, trail maintenance, and fence repairs, which may occur during the 2023/24 fiscal year.
Estimated Budget: $6,000
Slope Stabilization, Erosion, and Minor Repairs
This is fo r unanticipated minor repairs, including slope instability or erosion, which may occur during FY 2023/24.
Estimated Budget: $38,000
Vegetation Control – Open Space
This budget item includes annual firebreak mowing and litter removal, which will occur during FY 2023/24. This budget item has been increased to allow for a second cutting of fire breaks, as needed.
Estimated Budget: $20,000
Hayward Geologic Hazard Abatement District Board of Directors 6671.002.022 Hayward Geologic Hazard Abatement District May 8, 2023
PROGRAM BUDGET FOR FISCAL YEAR 2023/24 Page 10
Subdrain Maintenance
This budget item allows for construction of subdrain markers and outfall structures to facilitate future monitoring and maintenance of the subdrain outlets , which are critical to sl ope stability within The Reserve development. This item was included in the Request for Pro posals scope of services and is a one-time expense.
Estimated Budget: $5,000
Conservation Easement Activities
This budget item includes activities that may be need ed in relation to the City of Hayward Conservation Easement or East Bay Regional Park Distri ct Conservation Easement in FY 2023/24.
Estimated Budget: $10,000
SPECIAL PROJECTS
There are currently no special projects anticipated in the FY 2023/24 budget wi thin the GHAD-maintained areas of the Hayward GHAD.
ADMINISTRATION AND ACCOUNTING
GHAD Manager
Administration
Administrative expenses include the G HAD Manager duties relate d to t he operation and administration of the GHAD. The budget estimate for administrative services is derived from the original GHAD budget used to prepare the GHADs Engineer’s Report.
Estimated Budget: $25,500
Budget Preparation
This budget provides for the preparation of the annual report and budget.
Estimated Budget: $3,200
Outside Professional Services – Nontechnical
Legal Counsel
This budget item allows the GHAD to fund legal counsel for the District . The Board appointed Wendel Rosen to serve as the GHAD Attorney on September 13, 2016 , with the approval of Resolution No. 16 -002. The duties of the legal counsel may include , but not be limited to , transfer documentation, preparation or review of contrac ts, grant deeds, right of entry, and board resolutions.
Estimated Budget: $7,000
Treasurer
This budget item accounts for fees related to the GHAD Treasurer and the investment manager functions. The Board appointed the GHAD Treasurer on September 13, 2016, with the approval of Resolution No. 16-002 and authorized a change in the GHAD Treasurer designation to GHAD Treasurer, Inc. on February 25, 2020, with the approval of Resolution 20-02.
Estimated Budget: $5,000
Hayward Geologic Hazard Abatement District Board of Directors 6671.002.022 Hayward Geologic Hazard Abatement District May 8, 2023
PROGRAM BUDGET FOR FISCAL YEAR 2023/24 Page 11
Clerk
This budget item allows the GHAD to fund clerk services for the District. The Board appoi nted Wendel Rosen to serve as the GHAD Clerk on September 13, 2016 , with the ap proval of Resolution No. 16-002.
Estimated Budget: $1,500
Assessment Roll and Levy Update
This budget item allows for preparation of the assessment roll for the District and the updated levy based on the Consumer Price Index adjustment.
Estimated Budget: $1,750
Alameda County Assessor’s Fees
This budget item accounts for fees from the Alameda County Assessor’s Office.
Estimated Budget: $2,000
California Association of GHADs Membership
The GHAD maintains membership in the California Association of GHADs.
Estimated Budget: $175
Insurance
The GHAD maintains general liability insurance for open space areas within the District.
Estimated Budget: $1,500