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KENILWORTH DEVELOPMENT ANNEXATION
OAKLAND, ALAMEDA COUNTY, CALIFORNIA
ENGINEER’S REPORT
FOR KENILWORTH DEVELOPMENT
SUBMITTED TO
Sven Khatri and Poppy Crum
5801 Scarborough Drive
Oakland, CA 94611
PREPARED BY
ENGEO Incorporated
March 31, 2022
PROJECT NO.
5410.001.000
Oakland Area Geologic Hazard Abatement District Kenilworth Development Annexation 5410.001.000 Engineer’s Report
i of i March 31, 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 – Oakland Area GHAD Budget – Kenilworth Development Annexation
Oakland Area Geologic Hazard Abatement District Kenilworth Development Annexation 5410.001.000 Engineer’s Report
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ENGINEER’S REPORT
OAKLAND AREA
GEOLOGIC HAZARD ABATEMENT DISTRICT
KENILWORTH DEVELOPMENT ANNEXATION
(Pursuant to the Public Resources Code of the State of California, Section 26500 et seq.)
CERTIFICATION OF FILING
The Geologic Hazard Abatement Dis trict (“ GHAD”) provides monitoring and maintenance of improvements related to geologic hazard management and other responsibilities as a landowner, within the Kenilworth Development portion of the Oakland Area GHAD. The GHAD also levies and collect s assessments on properties within the GHAD 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
Oakland Area Geologic Hazard Abatement District Kenilworth Development Annexation 5410.001.000 Engineer’s Report
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The undersigned respectfully submits the enclosed Engineer’s Report.
Date: March 31, 2022 By: ENGEO Incorporated
_________________________________________, PE
Uri Eliahu
I HEREBY CERTIFY that the enclosed Engineer’s Report was filed on the 19th day of April 2022.
_________________________________________
Patricia Curtin
Attorney and Clerk of the Board
Oakland Area Geologic Hazard Abatement District
Oakland, Alameda County, California
I HEREBY CERTIFY that the enclosed Engineer’s Report was approved and confirmed by the GHAD Board on the 19th day of April 2022.
_________________________________________
Eric Harrell
GHAD Manager
Oakland Area Geologic Hazard Abatement District
Oakland, Alameda County, California
Oakland Area Geologic Hazard Abatement District Kenilworth Development Annexation 5410.001.000 Engineer’s Report
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ENGINEER’S REPORT
for
OAKLAND AREA GEOLOGIC HAZARD ABATEMENT DISTRICT
KENILWORTH DEVELOPMENT ANNEXATION
OAKLAND, ALAMEDA COUNTY, CALIFORNIA
for the
ESTABLISHMENT OF AN ASSESSMENT LIMIT
I. INTRODUCTION
The Oakland City Council adopted Resolution 80058 C. M. S. on July 18, 2006, approving the formation of the Oa kland Area GHAD under the authority of the California Public Resources Code, Division 17, Section 26500 et seq . On February 21, 2017, the Oakland Area GHAD Board of Directors passed Resolution No. 15 approving annexation of the Kenilworth Development (“GHAD Annexation Area”) into the Oakland Area GHAD. The members of the Oakland City Council act as the Board of Directors of the GHAD.
II. BACKGROUND
The Oakland Area GHAD Board of Directors approved the Plan of Control for the Kenilworth Development Annexation (“Plan of Control”) with the approval of Resolution No. 15 on February 21, 2017. The Plan of Control describes the GHAD’s responsibilities to permanently monitor and maintain GHAD improvements within the GHAD Annexation Area. This Engineer’s Report describ es the establishment of an assessment 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 plat and legal description 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 construction, 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 levying of assessments on the property tax rolls.
Oakland Area Geologic Hazard Abatement District Kenilworth Development Annexation 5410.001.000 Engineer’s Report
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3. Engagement of technical professionals to perform the mo nitoring duties as described in the Plan of Control.
4. Performance of GHAD maintenance activities in accordance with the Plan of Control. These maintenance activities within the GHAD Annexation Area include:
• Monitoring, maintenance, and repair of the concr ete-lined drainage ditches, storm drain inlets, subdrain outlets, and risers.
• Maintenance of retaining wall and appurtenant drainage improvements associated with Kenilworth Road.
• Maintenance of slopes for erosion and geologic hazard abatement.
• 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; concrete-lined ditches; 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
The GHAD assessment is distributed among all residential 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 seven single-family residences. The total number of residential units 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 each of the residential properties within the GHAD Annexation Area will receive approximately equal special benefit from the work and improvements within the GHAD. As a result, the GHAD assessment for the GHAD Annexation Area is distributed equally among all owners of parcels.
A financial analysis was performed to provide a framework for an operating budget for the ongoing abatement, mitigation, prevention , and control of geologic hazards within the GHAD Annexation Area. In preparation of the budget, several factors were considered including:
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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 $100,000) geologic events at 20-year intervals and the accumulation of a reserve of $1 36,000 by 2062 (Fiscal Year 2022/2023 dollars), a budget was prepared for the purpose of estimating initial assessment levels (Exhibit B).
The Engineer recommends an annual assessment limit for the GHAD Annexation Area of $5,364 per single -family residential unit (Fiscal Year 2022/2023 dollars). The proposed initial assessment level is intended to be automatically adjusted annually on June 30 to reflect the percentage change in the San Francisco -Oakland-Hayward Consumers Price Index for All Urban Consumers. The assessments are to be levied in conjunction with the issuance of a building permit for the assessed parcel.
While the assumptions 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 indivi dual 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 Appendix D of the Plan of Control for the Kenilworth Development, the GHAD reserve at the time of transfer must have a minimum of $11,500. In addition, all 7 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 Kenilworth Development during the period the Owner is responsible for all GHAD activities. The reserve amount requirement may be satisfied by including remaining cash and receivables from the Alameda County Tax Collector during the period that the Owner of the Kenilworth Development is responsible for performing the GHAD activities. Additional funds may be required of the developer in order to satisfy the above-stated minimum reserve requirement and shall be provided to the Oakland Area GHAD prior to its acceptance of the monitoring and maintenance responsibilities within the Kenilworth Development.
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VIII. OWNER RESPONSIBILITIES
The Property Owner (“ 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 any 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., t hrough 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
PLAT AND LEGAL DESCRIPTION
EXHIBIT B
BUDGET – March 31, 2022
5410.001.000
March 31, 2022
Oakland Area Geologic Hazard Abatement District – Kenilworth Development Annexation
Budget – March 31, 2022
ASSUMPTIONS
Total No. of Residential Units
7 Annual Assessment per Single-Family Residential Unit (FY 2022/2023)
$5,364
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 $) $100,000
ESTIMATED ANNUAL EXPENSES IN 2022/2023 DOLLARS
Administration (Manager, Treasurer, Clerk, and Legal Counsel) $6,650 Outside Administration Services, Membership, and Insurance $1,375 Monitoring Activities $4,500
Maintenance and Operation $6,962
Capital Improvements $8,051
Major Repair (Annualized) $5,000
Miscellaneous & Contingency (5%) $1,377
Reserve $4,137
TOTAL
$38,052
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