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OAK KNOLL DEVELOPMENT ANNEXATION
OAKLAND, CALIFORNIA
ENGINEER’S REPORT
FOR OAK KNOLL DEVELOPMENT
SUBMITTED TO
Oakland Area Geologic Hazard Abatement District
1 Frank H. Ogawa Plaza
Oakland, CA 94612
PREPARED BY
ENGEO Incorporated
April 3, 2024
PROJECT NO.
5750.300.000
Oakland Area Geologic Hazard Abatement District Oak Knoll Development Annexation 5750.300.000 Engineer’s Report
i of i April 3, 2024
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 AND OPEN SPACE MAINTAINED BY THE GHAD ............................................................................................................... 4 VI. ASSESSMENT METHOD ...................................................................................... 4 VII. ASSESSMENT – BUDGET .................................................................................... 5 VIII. OWNER RESPONSIBILITIES ................................................................................ 6 EXHIBIT A – Plat and Legal Description
EXHIBIT B – Oakland Area GHAD Budget – Oak Knoll Development Annexation
Oakland Area Geologic Hazard Abatement District Oak Knoll Development Annexation 5750.300.000 Engineer’s Report
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ENGINEER’S REPORT
OAKLAND AREA GEOLOGIC HAZARD ABATEMENT DISTRICT
OAK KNOLL DEVELOPMENT ANNEXATION
(Pursuant to the Public Resources Code of the State of California, Section 26500 et seq.)
CERTIFICATION OF FILING
It is anticipated that the Oakland Area Geologic Hazard Abatement District (“GHAD”) will provide monitoring and maintenance of improvements related to geologic hazard management and other responsibilities as a landowner, within the Oak Knoll development portion of the GHAD. The GHAD would levy and collect 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 ( Public Resources Code 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 Oak Knoll Development Annexation 5750.300.000 Engineer’s Report
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The undersigned respectfully submits the enclosed Engineer’s Report.
Date: April 3, 2024 By: ENGEO Incorporated
_________________________________________, PE
Jeffrey A. Adams
Oakland Area Geologic Hazard Abatement District Oak Knoll Development Annexation 5750.300.000 Engineer’s Report
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ENGINEER’S REPORT
for
OAKLAND AREA GEOLOGIC HAZARD ABATEMENT DISTRICT
OAK KNOLL DEVELOPMENT ANNEXATION
OAKLAND, ALAMEDA COUNTY, CALIFORNIA
for the
ESTABLISHMENT OF AN ASSESSMENT LIMIT
I. INTRODUCTION
The Oakland City Council formed the Oakland Area Geologic Hazard Abatement District (“GHAD” or “District”) on July 18, 2006 (Resolution No. 80058 ), under the authority of the California Public Resources Code, Division 17, Section 26500 et seq. (“GHAD Law”). The members of the Oakland City Cou ncil appointed themselves to act as the GHAD Board of Directors. The GHAD Board of Directors accepted a petition signed by Oak Knoll Venture Acquisition, LLC as owner of the GHAD Annexation Area (“Owner”, including successors) for annexation of the Oak Knoll development (“GHAD Annexation Area”) into the GHAD on June 7, 2022, through its approval of GHAD Resolution No. 22-02.
II. BACKGROUND
The GHAD Board of Directors accepted the Plan of Control for the Oak Knoll Development Annexation (“Plan of Control”) with the approval of Resolution No. 22-06 on July 5, 2022. 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 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 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 levy of assessments on the property tax rolls for those properties within the GHAD Annexation Area.
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3. Engagement of technical professionals to perform the monitoring duties as described in the Plan of Control.
4. Performance of GHAD activities in accordance with the Plan of Control. These activities include:
• General maintenance of the surface drainage improvements. The GHAD is responsible for general monitoring, maintenance, and repair of the concrete -lined drainage ditches, storm drain inlets and outlets in open space, subdrain outlets, and risers. • Monitoring and maintenance of detention basin/water quality basins. • Monitoring and maintenance of measurement devices, such as piezometers, inclinometers, and tiltmeters, if any.
• Maintenance of gates, fencing, and signage within the GHAD-owned Parcels. • Monitoring of slopes and creek banks for erosion, landslide, and related slope instability. • Vegetation control for fire suppression on GHAD-owned Parcels. • General maintenance including litter and graffiti removal on GHAD-owned Parcels. • Monitoring, maintenance, and repair of slopes for erosion, landslide, and related slope instability within the GHAD Annexation area.
5. Preparation of annual GHAD budgets for approval by the GHAD Board of Directors.
6. Coordination with GHAD officers (i.e., Treasurer, Clerk, Manager, Attorney) to administer the GHAD in accordance with GHAD Law (Public Resources Code § 26500 et seq.).
V. DESCRIPTION OF THE IMPROVEMENTS AND OPEN SPACE
MAINTAINED BY THE GHAD
The anticipated GHAD-maintained improvements and open space are described in the Plan of Control. In general, these improvements include drainage systems, including concrete -lined ditches in developed areas and open space, detention basins , open-space storm drain inlets and outlets , subdrains and outlets , selected retaining walls , and debris benches/catchment structures.
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 and related hazards.
2. Protection from erosion due to uncontrolled surface water.
3. Protection of water quality.
4. Protection from wild land fires due to unmanaged vegetation.
The development in the GHAD Annexation Area consists of residential uses (single -family detached homes or “SFDs”, garden -court homes, townhouses, and condomin iums) and habitable non-residential uses (i.e., neighborhood commercial, civic/commercial, and retail). The improvements and responsibilities listed in Section V provide specific benefits to the properties Oakland Area Geologic Hazard Abatement District Oak Knoll Development Annexation 5750.300.000 Engineer’s Report
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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 SFDs, garden-court homes, townhomes, and condominium unit s, as well as habitable non-residential buildings, which include a community center and a retail center. The total number and average representative lot size/allocation for the residences, as well as the area of habitable space in the habitable non-residential buildings, were considered in light of the annual GHAD Annexation Area budget in developing the annual assessment amount.
The engineer hereby finds that the properties within the GHAD Annexation Area receive approximately equal special benefit from the work and improvements within the GHAD , scaled based on a representative average lot size allocated to the number of units within residential structure and the area of habitable space in the habitable non -residential buildings, respectively.
As a result, the GHAD assessment for the GHAD Annexation Area is distributed among residential units, as presented in Table VII-1, and habitable non-residential buildings. 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:
1. Site geology
2. Remedial grading
3. Proximity of geologic hazards to proposed residences and facilities
4. Improvements and structures
5. Site access considerations
6. Elements requiring routine maintenance, including:
• Surface drainage facilities
• Graded slopes
• Retaining walls
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.
A budget was prepared for the purpose of estimating initial assessment levels b ased on the estimated expenses for ongoing operations, allowing for larger (approximately $600,000) geologic events at 15-year intervals , and accumulation of a reserve of $ 3,579,551 by 2064 (Fiscal Year 2023/2024 dollars) (Exhibit B).
The engineer recommends an annual assessment limit for the GHAD Annexation Area of $920 per residential equivalent unit (Fiscal Year 2023/2024 dollars), which is assigned to the largest single -family home type. Other resi dential unit types are assigned a fractional assessment of this limit, based on an assigned assessment ratio. The assessment ratios and recommended assessment per residential type are presented in Table VII-1. The engineer recommends an annual assessment limit for the GHAD Annexation Area of $0.10 per square foot (SF) for habitable non -residential buildings , which represents a rough areal equivalent of the residential equivalent assessment value (Fiscal Year 2023/2024 dollars).
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TABLE VII-1: Recommended Assessments by Residential Unit Type
RESIDENTIAL TYPE NUMBER OF
UNITS
ASSESSMENT
RATIO
EQUIVALENT
NUMBER OF
UNITS
ANNUAL
ASSESSMENT
LIMIT
Townhome 112 0.35 39 $322
Garden Court 76 0.50 38 $460
Alley SFD 79 0.40 32 $368
SFD - 2,744 Avg. (<4K) 126 0.40 50 $368
SFD - 5,152 Avg. (4K to 6K) 93 0.70 65 $644
SFD - 7,018 (>6K) 72 1.00 72 $920
Condominium 325 0.35 114 $322
TOTAL 883 410
The initial assessment level will be automatically adjusted annually on April 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 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 Oak Knoll development, the GHAD reserve amount at the time of transfer will be a minimum of $491,498.
In addition, all residential units and habitable non -residential buildings 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 Oak Knoll development during the period Owner is responsible for all GHAD activities. The reserve amount may be satisfied by including remaining cash and receivables from the Alameda County Tax Collector during the period that Owner is responsible for performing the GHAD activities. Additional funds may be required of Owner 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 anticipated responsibilities within the GHAD Annexation Area.
VIII. OWNER RESPONSIBILITIES
Owner is responsible for managing and maintaining the GHAD improvements within 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 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 Owner shall be required to reimburse the GHAD for such costs before the GHAD can accept monitoring and maintenance responsibilities for the GHAD Improvements.
Oakland Area Geologic Hazard Abatement District Oak Knoll Development Annexation 5750.300.000 Engineer’s Report
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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 – APRIL 3, 2024
5750.300.000
April 3, 2024
Oakland Area Geologic Hazard Abatement District – Oak Knoll Development Annexation
Budget – April 3, 2024
ASSUMPTIONS
Total No. of Residential Units (Equivalent Units) 410
Annual Assessment per Residential Unit (Equivalent Units) (FY 2022/2023) $920 Annual Assessment per SF Habitable Non-Residential (FY 2022/2023) $0.10 Annual Adjustment in Assessment (estimated) 2.6%
Inflation (estimated) 2.6%
Investment Earnings (estimated) 5%
Frequency of Large-Scale Repair (years) 15
Cost of Large-Scale Repair (current $) $600,000
ESTIMATED ANNUAL EXPENSES IN 2022/2023 DOLLARS
Administration and Accounting $65,215
Monitoring Activities $20,900
Maintenance and Operation $116,023
Capital Improvements $69,590
Major Repair (Annualized) $40,000
Miscellaneous & Contingency (10%) $31,173
TOTAL $342,901
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