OAKLAND AREA GEOLOGIC HAZARD ABATEMENT DISTRICT
BUDGET FOR FISCAL YEAR 2022/23
1630 San Pablo Avenue, Suite 200 Oakland, CA 94612 (510) 451-1255 Fax (888) 279-2698 www.engeo.com
June 7, 2022
Oakland Area Geologic Hazard Abatement District Board of Directors Chair Loren Taylor
Boardmember Rebecca Kaplan
Boardmember Dan Kalb
Boardmember Nikki Fortunato Bas
Boardmember Carroll Fife
Boardmember Sheng Thao
Boardmember Noel Gallo
Boardmember Treva Reid
Oakland Area Geologic Hazard Abatement District
Oakland City Hall
1 Frank Ogawa Place
Oakland, CA 94612
Subject: Oakland Area Geologic Hazard Abatement District Oakland, California
BUDGET FOR FISCAL YEAR 2022/23
Dear Chair Taylor and Boardmembers:
Attached is the program budget for the Oakland Area Geologic Hazard Abatement District (GHAD) for Fiscal Year (FY) 2022/23. The proposed program budget is $ 18,333. The budget expenses break down into the following approximate percentages of the total expenses.
Major Repair ................................ ............................. 0 percent Preventive Maintenance and Operations ................ 38 percent Special Projects ................................ ........................ 0 percent Administration and Accounting ................................ 16 percent Additional - Outside Professional Services .............. 46 percent
The budget anticipates FY 2022/23 revenue of $14,700. A summary of the expenses is shown in Table 6, followed by a brief description of each budget item on the following pages.
Sincerely,
Oakland Area Geologic Hazard Abatement District
ENGEO Incorporated, General Manager
1630 San Pablo Avenue, Suite 200
Oakland, CA 94612
ENGEO Project No. 6964.002.021
Haley Ralston Eric Harrell
hjr/eh/jf
Boardmembers 6964.002.021
Oakland Area Geologic Hazard Abatement District June 7, 2022 BUDGET FOR FISCAL YEAR 2022/23 Page 1
Oakland Area Geologic Hazard Abatement District
Program Budget
Fiscal Year 2022/23
The following budget summarizes the anticipated revenue and expenditures for FY 2022/23 for the Oakland Area Geologic Hazard Abatement District (GHAD), which currently includes the Siena Hill and Kenilworth developments. The Oakland Area GHAD was formed o n July 18, 2006, when the Oakland City Council adopted Resolution No. 80058. The 7-unit Kenilworth development was annexed into the Oakland Area GHAD on February 21, 2017 , by the GHAD Board of Directors with the adoption of Resolution No. 15 ; however , it does not currently receive GHAD services as Plan of Control responsibilities have not been transferred from the developer to the GHAD yet . It is anticipated that the earliest date the GHAD would acquire Plan of Control responsibilities for the Kenilworth development would be in 2027.
Under Condition of Approval No. 51 for the Oak Knoll development (Subdivision 8320), the City of Oakland required annexation of the Oak Knoll development into the existing Oakland Area GHAD. To satisfy thi s requirement, the developer of Oak Knoll has petitioned the Board of Directors of the Oakland Area GHAD to annex Oak Knoll into the exis ting Oakland Area GHAD.
It is anticipated that the earliest date the GHAD would acquire Plan of Control responsibilitie s within the Oak Knoll development would be in 2025.
The structure of the Oakland Area GHAD is shown below.
Currently, the GHAD has monitoring and maintenance responsibilities for 10 of the 32 residential parcels within the Siena Hill development (T able 1). Until accepted by the GHAD, monitoring and maintenance responsibilities described in the Plan s of Control for the remaining parcels within the Siena Hill development and the Kenilworth development are the responsibility of the property owner(s).
Boardmembers 6964.002.021
Oakland Area Geologic Hazard Abatement District June 7, 2022 BUDGET FOR FISCAL YEAR 2022/23 Page 2
TABLE 1: Parcels Accepted by the Oakland Area GHAD for Plan of Control Monitoring and Maintenance Responsibilities
NUMBER STREET
64 Siena Drive
67 Siena Drive
68 Siena Drive
71 Siena Drive
72 Siena Drive
75 Siena Drive
76 Siena Drive
79 Siena Drive
80 Siena Drive
84 Siena Drive
The GHAD is funded through rea l property assessments and return on investments of the GHAD’s reserves. The FY 2021/22 assessment levy was set at $ 1,301.78 per residential unit adjusted up 3.15% from the 2020/21 assessment level. The assessment limit annual adjustment is based on the 2006 Engineer’s Report using the San Francisco-Oakland-Hayward Consumer Price Index (CPI). The final asses sment roll prepared for the 202 1/22 fiscal year and submitted to the Alameda County Ass essor’s Office identifies 10 properties subject to the levy of the GHAD assessment. The total levy amount for the 2021/22 FY was $13,017.80.
TABLE 2: Actual CPI Adjustments and Assessment Limit for Residential Properties
FISCAL YEAR INDEX DATE
SAN FRANCISCO-
OAKLAND-
HAYWARD CPI
(JUNE/JUNE)
SIENA HILL
ANNUAL
ASSESSMENT
LIMIT
SIENA HILL
ASSESSMENT
LEVY
2006/2007 $2,632.00 $2,632.00
2007/2008 6/30/2008 3.38% $2,720.95 $2,720.94
2008/2009 6/30/2008 4.19% $2,834.99 $2,834.98
2009/2010 6/30/2009 0.23% $2,841.43 $2,841.42
2010/2011 6/30/2010 1.07% $2,871.87 $2,871.86
2011/2012 6/30/2011 2.43% $2,941.57 $2,941.56
2012/2013 6/30/2012 2.64% $3,019.13 $3,019.12
2013/2014 6/30/2013 2.56% $3,096.29 $3,096.28
2014/2015 6/30/2014 3.00% $3,189.22 $3,189.22
2015/2016 6/30/2015 2.29% $3,262.24 $3,262.24
2016/2017 6/30/2016 2.67% $2,500.001 $1,119.001
2017/2018 6/30/2017 3.48% $2,587.04 $1,157.96
2018/2019 6/30/2018 3.91% $2,688.14 $1,203.20
2019/2020 6/30/2019 3.22% $2,774.57 $1,241.96
2020/2021 6/30/2020 1.62% $2,819.41 $1,261.96
2021/2022 6/30/2021 3.15% $2,980.36 $1,301.78
1Based on the approved Engineer’s Report dated August 31, 2006 and revised April 26, 2016.
Boardmembers 6964.002.021
Oakland Area Geologic Hazard Abatement District June 7, 2022 BUDGET FOR FISCAL YEAR 2022/23 Page 3
Based on the CPI figures reported through February 2022, for budgeting purposes, we estimate a FY 2022/23 inflation rate adjustment of 5 percent. The a ctual CPI adjustment for the FY 2022/23 assessment limit will be based on the inflation rate through June 30, 202 2, for the past 12 months as specified in the approved Engineer’s Report for the Sien a Hill development.
We estimate that 10 residential units will be subject to assessment in the FY 2022/23.
TABLE 3: Estimated Revenue
FY 2022/23 ESTIMATE
Assessed Residential Units 10
Assessments $13,670
Investment Income $1,030
Total Revenues $14,700
The budget amounts listed are based on the Engineer’s Report approved by the Oakland Area GHAD Board of Directors in 2016. The budget amounts have been inflation adjusted to provide the listed budget estimates. The current Program Budget projects that at the beginning of the 2022/23 fiscal year (July 1, 2022), the cumulative reserve will be about $120,532 and about $116,899 at the end of the 2022/23 fiscal year (June 30, 2023).
For fiscal year 2022/23 (July 1, 2022, through June 30, 2023), the GHAD management payment limit is set at $ 7,500. The tasks included within the payment limit may include site monitoring events, report preparation, oversight of maintenance and repair projects, administration, accounting, and assessment roll updates.
TABLE 4: Payment Limit
TASK AMOUNT
Scheduled Monitoring Events $4,000
Erosion and Sediment Removal - Concrete Structures $2001 Slope Stabilization $4001
Administration and Accounting $2,200
Budget Preparation $700
1Dependent on maintenance and/or repair activities by the GHAD during FY 2022/23.
ENGEO payment limit is 20% of the total budget item.
The budget is divided into four categories , including Major Repair, Preventive Maintenance and Operations, Special Projects, and Administration and Accounting.
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 erosion control items are generally funded wit hin the Preventive Maintenance and Operations category. For the purposes of this budget , we define major repairs as those estimated at over $25,000.
Boardmembers 6964.002.021
Oakland Area Geologic Hazard Abatement District June 7, 2022 BUDGET FOR FISCAL YEAR 2022/23 Page 4
PREVENTIVE MAINTENANCE AND OPERATIONS
Preventive maintenance and operations include slope stabilization , erosion protection , and professional services within the District. Professional services include site-monitoring events as scheduled in the GHAD Plan of Control. Slope stabilization and erosion protection responsibilities include the open space slopes. GHAD-maintained i mprovements generally include the District’s slopes, concrete -lined drainage ditches, retaining walls, subsurface drainage facilities, and storm drain facilities.
SPECIAL PROJECTS
The Special Projects category allows the GHAD to budget for projects beneficial to the GHAD that are not included in one of the other three categories. Although not proposed in the FY 2022/23 budget, special projects can include items such as global positioning system (GPS)/geographic information system (GIS) deve lopment for GHAD maintained improvements; website development and maintenance; and reserve studies to reevaluate the financial condition of the GHAD.
ADMINISTRATION AND ACCOUNTING
Administrative expenses include the General Manager duties related to the operation and administration of the GHAD . The administrative budget category includes tasks of the General Manager, clerical, and accounting staff.
A summary of the proposed budget through the end of FY 2022/23 is shown in Table 5.
Boardmembers 6964.002.021
Oakland Area Geologic Hazard Abatement District June 7, 2022 BUDGET FOR FISCAL YEAR 2022/23 Page 5
TABLE 5: Summary of Use of Funds
USE OF FUNDS
FY 2021/22
ESTIMATE*
FY 2021/22
BUDGET
FY 2022/23
PROPOSED
PERCENT
CHANGE FROM
FY 2021/22
Major Repairs
Subtotal $0 $0 $0 0.0%
Preventive Maintenance and Operations - Professional Services Scheduled Monitoring Events $4,000 $3,000 $4,000
Heavy Rainfall Monitoring Event $0 $1,000 $0
Subtotal $4,000 $4,000 $4,000 0.0%
Preventive Maintenance and Operations - Maintenance and Operations Erosion Control including Ditches $0 $1,000 $1,000
Slope Stabilization $0 $2,000 $2,000
Subtotal $0 $3,000 $3,000 0.0%
Special Projects
Subtotal $0 $0 $0 0.0%
Administration and Accounting – GHAD Manager
Administration and Accounting $2,200 $2,200 $2,200
Budget Preparation $700 $700 $700
Subtotal $2,900 $2,900 $2,900 0.0%
Administration and Accounting – Outside Professional Services Assessment Roll and Levy Update $1,000 $1,000 $1,000
Legal Counsel $5,000 $5,000 $5,000
Treasurer $350 $650 $600
Clerk $200 $400 $400
Alameda County Assessor’s Fees $222 $215 $230
California Association of GHADs Membership $103 $103 $103 Insurance – Directors and Officers $585 $600 $600
Insurance – General Liability $500 $500 $500
Subtotal $7,960 $8,468 $8,433 -0.3%
Total $14,860 $18,368 $18,333 -0.2%
*FY2021/22 Estimate Includes Actual Expenses through April 20, 2022
Boardmembers 6964.002.021
Oakland Area Geologic Hazard Abatement District June 7, 2022 BUDGET FOR FISCAL YEAR 2022/23 Page 6
TABLE 6: Summary of Proposed Fiscal Year 2022/23 Budget
BUDGET ITEM LABEL BUDGET AMOUNT
PERCENT OF
TOTAL BUDGET
(FY 2022/23)
Major Projects TOTAL $0 0%
Scheduled Monitoring Events
Open Space Scheduled Monitoring Events $4,000
Subtotal $4,000
Maintenance and Operations
Erosion Control Including Concrete Structures $1,000
Slope Stabilization $2,000
Subtotal $3,000
TOTAL $7,000 38%
Special Projects
TOTAL $0 0%
Administration and Accounting
Administration and Accounting $2,200
Budget Preparation/Annual Reporting $700
Subtotal $2,900 16%
Assessment Roll and Levy Update Preparation $1,000
Legal Counsel $5,000
Treasurer $600
Clerk $400
Alameda County Assessor’s Fees $230
California Association of GHADs Membership $103
Insurance – Directors and Officers $600
Insurance – General Liability $500
Subtotal $8,433 46%
TOTAL $11,333
ESTIMATED EXPENDITURES TOTAL $18,333 100%
ESTIMATED RECEIVABLES
Beginning Balance
Balance (July 1, 2021) $121,186
Estimated FY 2021/22 Revenue
Assessment Revenue $13,018
Investment Revenue $1,188
Estimated 2021/22 Expenses
Estimated Expenses $14,860
ESTIMATED RESERVE ON JUNE 30, 2022 $120,532
Estimated 2022/23 Revenue
Estimated FY 2022/23 Assessment $13,670
Estimated FY 2022/23 Investment Income $1,030
Estimated 2022/23 Expenses
Expenses through June 30, 2023 $18,333
ESTIMATED RESERVE ON JUNE 30, 2023 $116,899
Boardmembers 6964.002.021
Oakland Area Geologic Hazard Abatement District June 7, 2022 BUDGET FOR FISCAL YEAR 2022/23 Page 7
MAJOR REPAIRS (MAJOR)
There are currently no ongoing major repair projects and none are anticipated for the 2022/23 fiscal year within the GHAD-maintained areas of the Oakland Area GHAD. Minor slope repair and erosion control items are generally funded within the Preventive M aintenance and Operations category. While no major repairs are ongoing at this time, by their nature, major repairs such as landslides are unpredictable and could occur during the 2022/23 fiscal year. The reserve portion of the budget allows for funding toward these unpredictable events.
PREVENTIVE MAINTENANCE AND OPERATIONS (PREVM&O)
Professional Services
Scheduled Monitoring Events (SCMON)
As provided in the Plan of Control, there are two scheduled monitoring events within the GHAD during each calendar year. Estimated budget $4,000
Maintenance and Operations
Erosion Control (ERCON)
Anticipated tasks under this budget item include the repair of slope erosion and maintenance of concrete-lined drainage ditches within the accepted lots. Estimated budget $1,000
Slope Stabilization (SLOPE)
This is for minor repairs, including slope instability , which may occur during the 2022/23 fiscal year. Purchase of emergency stabilization supplies will be included within this budget item.
Estimated budget $2,000
SPECIAL PROJECTS (SPEPROJ)
There are currently no ongoing special projects, and none are anticipated for the 2022/23 fiscal year within the GHAD-maintained areas of the Oakland Area GHAD.
ADMINISTRATION AND ACCOUNTING (ADMIN)
Administration (ADACC)
Administrative expenses include the General Manager duties related to the operation and administration of the GHAD. The budget estimate for the accounting and administrative services is derived from the original GHAD budget used to prepare the GHAD Engineer’s Report.
Estimated budget $2,200
Annual Report and Budget Preparation (BDGET)
This budget provides for the preparation of the annual report and budget. The budget estimate for the accounting and administrative services is derived from the original GHAD budget used to prepare the GHAD Engineer’s Report. Estimated budget $700
Boardmembers 6964.002.021
Oakland Area Geologic Hazard Abatement District June 7, 2022 BUDGET FOR FISCAL YEAR 2022/23 Page 8
Assessment Roll and Levy Update (ASSESS)
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 $1,000
GHAD Attorney (LEGAL)
This budget item allows the GHAD to seek review and comment from GHAD counsel for the District. Estimated budget $5,000
GHAD Treasurer (TREAS)
This budget item accounts for fees related to treasurer services, investment of the GHAD reserve funds, and processing of accounts payable. Estimated budget $600
GHAD Clerk (CLERK)
This budget item accounts for fees to provide clerical staffing and support service s for the GHAD Board of Directors and to k eep and provide interested parties with accurate records and documents relative to Board actions. Estimated budget $400
Alameda County Assessor’s Fees (ALAAS)
This budget item accounts for commission charged by the Alameda County Assessor’s Office (currently 1.7 percent of total annual assessment amount) for collection of assessments within the Oakland Area GHAD. Estimated budget $230
Association Membership (CGHAD)
The GHAD maintains membership in the California Association of GHADs.
Estimated budget $103
Directors and Officers Insurance (INSUR)
The GHAD maintains directors and officers insurance for the Board of Directors.
Estimated budget $600
General Liability Insurance (INSURGL)
The GHAD maintains general liability insurance for open space areas within the District.
Estimated budget $500