OAKLAND AREA GEOLOGIC HAZARD ABATEMENT DISTRICT
BUDGET FOR FISCAL YEAR 2024/25
1630 San Pablo Avenue, Suite 200 Oakland, CA 94612 (510) 451-1255 Fax (888) 279-2698 www.engeo.com
May 22, 2024
Oakland Area Geologic Hazard Abatement District Board of Directors:
Chair Kevin Jenkins
Boardmember Rebecca Kaplan
Boardmember Dan Kalb
Boardmember Nikki Fortunato Bas
Boardmember Carroll Fife
Boardmember Janani Ramachandran
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 2024/25
Dear Chair Jenkins and Boardmembers:
Attached is the program budget for the Oakland Area Geologic Hazard Abatement District (GHAD) for Fiscal Year (FY) 2024/25. The proposed program budget is $ 19,953. The budget expenses break down into the following approximate percentages of the total expenses.
Administration – GHAD Manager ............................ 16 percent Administration - Outside Professional Services ....... 43 percent Preventive Maintenance and Operations ................ 42 percent Special Projects ................................ ........................ 0 percent Major Repair ................................ ............................. 0 percent
The budget anticipates FY 2024/25 revenue of $19,082. 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. 6964.002.023
Haley Ralston Eric Harrell
kv/hjr/eh/cb
6964.002.023
Oakland Area Geologic Hazard Abatement District May 22, 2024 BUDGET FOR FISCAL YEAR 2024/25 Page 1
Oakland Area Geologic Hazard Abatement District
Program Budget
Fiscal Year 2024/25
The following budget summarizes the anticipated revenue and expenditures for FY 2024/25 for the Oakland Area Geologic Hazard Abatement District (GHAD), which currently includes the Siena Hill, Kenilworth, and Oak Knoll developments. The Oakland Area GHAD was formed o n July 18, 2006, when the Oakland City Council adopted Resolution No. 80058. The Oakland Area GHAD was formed with Siena Hill development, which is a 32 -unit residential development ; however, only 10 residential units have been constructed to date. The Oakland Area GHAD has accepted GHAD responsibilities only within the 10 residential parcels in the Siena Hill development.
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 assume 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. With the approval of Resolution No. 2022-06 on July 5, 2022, the GHAD Board of Directors approved annexation of the Oak Knoll development into the Oakland Area GHAD ; 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 assume Plan of Control responsibilities within the Oak Knoll development would be in 2027.
The structure of the Oakland Area GHAD is shown below.
6964.002.023
Oakland Area Geologic Hazard Abatement District May 22, 2024 BUDGET FOR FISCAL YEAR 2024/25 Page 2
Currently, the GHAD has monitoring and maintenance responsibilities for 10 of the 32 residential parcels within the Siena Hill development (Table 1). Until accepted by the GHAD, monitoring and maintenance responsibilities described in the Plans of Control for the remaining parcels within the Siena Hill, Kenilworth, and Oak Knoll developments are the responsibility of the property owners.
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 real property assessments and return on investments of the GHAD’s reserves. The FY 2023/24 assessment levy was set at $1,430.32 per residential unit, adjusted up
2.88% from the 2022/23 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 2023/24 fiscal year , and submitted to the Alameda County Assessor’s Office , identifies 10 properties subject to the levy of the GHAD assessment. The total levy amount for the 2023/24 FY was $14,303.20.
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
6964.002.023
Oakland Area Geologic Hazard Abatement District May 22, 2024 BUDGET FOR FISCAL YEAR 2024/25 Page 3
FISCAL YEAR INDEX DATE
SAN FRANCISCO-
OAKLAND-
HAYWARD CPI
(June/June)
SIENA HILL
ANNUAL
ASSESSMENT
LIMIT
SIENA HILL
ASSESSMENT
LEVY
2021/2022 6/30/2021 3.15% $2,908.36 $1,301.78
2022/2023 6/30/2022 6.80% $3,106.09 $1,309.29
2023/2024 6/30/2023 2.88% $3,106.09 $1,430.32
2024/2025 6/30/2024 3%2 $3,195.522 $1,473.232
1Based on the approved Engineer’s Report dated August 31, 2006, and revised April 26, 2016. 2Estimate based on Consumers Price Index through April 2024 and approval by the Board of Directors.
Based on the CPI figures reported through April 2024, for budgeting purposes, we estimate a FY 2024/25 inflation rate adjustment of 3 percent. The a ctual CPI adjustment for the FY 2024/25 assessment limit will be based on the inflation rate through June 30, 202 4, for the past 12 months, as specified in the approved Engineer’s Report for the Siena Hill development.
We estimate that 10 residential units will be subject to assessment in FY 2024/25.
TABLE 3: Estimated Revenue
FY 2024/25 ESTIMATE
Assessed Residential Units 10
Assessments $14,732
Investment Income $4,350
Total Revenues $19,082
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 is based on a projection that at the beginning of the 2024/25 fiscal year (July 1, 2024), the cumulative reserve will be about $120,792, and about $119,921 at the end of the 2024/25 fiscal year (June 30, 2025).
For fiscal year 2024/25 (July 1, 2024, through June 30, 2025), the GHAD management payment limit is set at $9,000. 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
Administration $2,350
Budget Preparation $750
Scheduled Monitoring Events $4,300
Heavy Rainfall Monitoring Events $1,000 Slope Stabilization $4001
Erosion and Sediment Removal - Concrete Structures $2001 1Dependent on maintenance and/or repair activities by the GHAD during FY 202 4/25.
ENGEO payment limit is 20% of the total budget item.
The budget is divided into four categories , including Administration and Accounting, Preventive Maintenance and Operations, Special Projects, and Major Repair.
6964.002.023
Oakland Area Geologic Hazard Abatement District May 22, 2024 BUDGET FOR FISCAL YEAR 2024/25 Page 4
ADMINISTRATION AND ACCOUNTING
Administrative expenses include the general manager’s 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 comparison of the estimated expenditures for FY 2023/24, the approved budget for FY 2023/24, and the proposed budget through the end of FY 2024/25 is shown in Table 5.
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 improvements generally include the 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 2024/25 budget, special projects can include items such as geographic information system (GIS) development for GHAD-maintained improvements, website development and maintenance, and reserve studies to reevaluate the financial condition of the GHAD.
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 within the P reventive Maintenance and Operations category. For the purposes of this budget, we define major repairs as those estimated at over $100,000. There are no major repairs planned for FY 2024/25.
TABLE 5: Summary of Use of Funds
USE OF FUNDS
FY 2023/24
ESTIMATE*
FY 2023/24
BUDGET
FY 2024/25
PROPOSED
PERCENT
CHANGE FROM
FY 2023/24
Administration and Accounting
Administration and Accounting- GHAD
Manager $2,300 $2,300 $2,350 2.2%
Budget Preparation- GHAD Manager $750 $750 $750
Assessment Roll and Levy Update $1,000 $1,000 $1,000
Alameda County Assessor’s Fees $245 $245 $250
California Association of GHADs
Membership $103 $103 $103
GHAD Clerk $400 $400 $400
GHAD Treasurer $600 $700 $700
GHAD Legal Counsel $5,000 $5,000 $5,000
6964.002.023
Oakland Area Geologic Hazard Abatement District May 22, 2024 BUDGET FOR FISCAL YEAR 2024/25 Page 5
USE OF FUNDS
FY 2023/24
ESTIMATE*
FY 2023/24
BUDGET
FY 2024/25
PROPOSED
PERCENT
CHANGE FROM
FY 2023/24
Insurance – General Liability $500 $500 $500
Insurance – Directors and Officers $585 $600 $600
Subtotal $11,483 $11,598 $11,653 0.5%
Preventive Maintenance and Operations - Maintenance Contractor Slope Stabilization $1,000 $1,600 $1,600
Erosion Control including ditches $0 $800 $800
Subtotal $1,000 $2,400 $2,400 0.0%
Preventive Maintenance and Operations – GHAD Manager
Scheduled Monitoring Events $4,200 $4,200 $4,300 2.4%
Heavy Rainfall Monitoring Event $0 $1,000 $1,000
Slope Stabilization $0 $400 $400
Erosion Control including ditches $0 $200 $200
Subtotal $4,200 $5,200 $5,900 1.7%
Special Projects
Subtotal $0 $0 $0 0.0%
Major Repairs
Subtotal $0 $0 $0 0.0%
Total $16,683 $19,798 $19,953 0.8%
*FY2023/24 Estimate Includes Actual Expenses through April 30, 2024
TABLE 6: Summary of Proposed Fiscal Year 2024/25 Budget
BUDGET ITEM LABEL BUDGET
AMOUNT
PERCENT OF
TOTAL BUDGET
(FY 2024/25)
Administration and Accounting
Administration and Accounting- GHAD Manager $2,350
Budget Preparation/Annual Reporting- GHAD
Manager $750
Subtotal $3,100 15%
Assessment Roll and Levy Update Preparation $1,000
Alameda County Assessor’s Fees $250
California Association of GHADs Membership $103
GHAD Clerk $400
GHAD Treasurer $700
GHAD Legal Counsel $5,000
Insurance – General Liability $500
Insurance – Directors and Officers $600
Subtotal $8,553 43%
TOTAL $11,653 58%
Maintenance and Operations- Maintenance
Contractor
Slope Stabilization $1,600
Erosion Control Including Concrete Structures $800
6964.002.023
Oakland Area Geologic Hazard Abatement District May 22, 2024 BUDGET FOR FISCAL YEAR 2024/25 Page 6
BUDGET ITEM LABEL BUDGET
AMOUNT
PERCENT OF
TOTAL BUDGET
(FY 2024/25)
Subtotal $2,400
Scheduled Monitoring Events – GHAD Manager
Open Space Scheduled Monitoring Events $4,300
Heavy Rainfall Monitoring Event $1,000
Slope Stabilization $400
Erosion Control Including Concrete Structures $200
Subtotal $5,900
TOTAL $8,300 42%
Special Projects TOTAL $0 0%
Major Projects TOTAL $0 0%
ESTIMATED EXPENDITURES TOTAL $20,548
ESTIMATED RECEIVABLES
Beginning Balance
Balance (July 1, 2023) $118,257
Estimated FY 2023/24 Revenue
Assessment Revenue $14,303
Investment Revenue $4,915
Estimated 2023/24 Expenses
Estimated Expenses through June 30, 2024 $16,683
ESTIMATED RESERVE ON JUNE 30, 2024 $120,792
Estimated 2024/25 Revenue
Estimated Assessment Revenue $14,732
Estimated Investment Revenue $4,350
Estimated 2024/25 Expenses
Expenses through June 30, 2025 $19,953
ESTIMATED RESERVE ON JUNE 30, 2025 $119,921
Below is a more detailed description of each item listed in the budget tables above.
ADMINISTRATION AND ACCOUNTING
Administration
Administrative expenses include the general manager’s 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.
Annual Report and Budget Preparation
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.
6964.002.023
Oakland Area Geologic Hazard Abatement District May 22, 2024 BUDGET FOR FISCAL YEAR 2024/25 Page 7
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.
Alameda County Assessor’s Fees
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.
Association Membership
The GHAD maintains membership in the California Association of GHADs.
GHAD Clerk
This budget item accounts for fees to provide clerical staffing and support services for the GHAD Board of Directors and to keep and provide interested parties with accurate records and documents relative to Board actions.
GHAD Treasurer
This budget item accounts for fees related to treasurer services, investment of the GHAD reserve funds, and processing of accounts payable.
GHAD Attorney
This budget item allows the GHAD to seek review and comment from GHAD counsel for the District.
General Liability Insurance
The GHAD maintains general liability insurance for open-space areas within the District.
Directors and Officers Insurance
The GHAD maintains directors and officers insurance for the Board of Directors.
PREVENTIVE MAINTENANCE AND OPERATIONS
Maintenance and Operations
Slope Stabilization
This is for minor repairs, including slope instability, which may occur during the 2024/25 fiscal year. Purchase of emergency stabilization supplies will be included within this budget item.
6964.002.023
Oakland Area Geologic Hazard Abatement District May 22, 2024 BUDGET FOR FISCAL YEAR 2024/25 Page 8
Erosion Control including Drainage Ditches
Anticipated tasks under this budget item include the repair of slope erosion and maintenance of concrete-lined drainage ditches within the accepted lots.
Professional Services
Scheduled Monitoring Events
As provided in the Plan of Control, there are two scheduled monitoring events within the GHAD during each calendar year.
Heavy Rainfall Monitoring Events
As described in the Plan of Control, a heavy rainfall event qualifies as precipitation amounts totaling more than 2 inches within a 24 -hour period. We have budgeted for one heavy rainfall monitoring event in the 2024/25 fiscal year.
SPECIAL PROJECTS
There are currently no ongoing special projects, and none are anticipated for the 2024/25 fiscal year within the GHAD-maintained areas of the Oakland Area GHAD.
MAJOR REPAIRS
There are currently no ongoing major repair projects, and none are anticipated for the 2024/25 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 Maintenance and Operations category. While no major repairs are ongoing at this time, by their n ature, major repairs, such as landslides, are unpredictable and could occur during the 2024/25 fiscal year. The reserve portion of the budget allows for funding toward these unpredictable events.