1 51890788.1/513854.0001
OAKLAND AREA
GEOLOGIC HAZARD ABATEMENT DISTRICT
TO: Oakland Area GHAD
Board of Directors
FROM: GHAD Manager, ENGEO Incorporated, Haley Ralston
GHAD Attorney, Fennemore LLP, Amara Morrison
DATE: June 3, 2025
SUBJECT: Oakland Area GHAD Annual Budget for Fiscal Year 2025/26
RECOMMENDATION(S):
ADOPT Oakland Area GHAD Resolution 2025-01: 1) Adopting the Annual GHAD Budget for Fiscal Year 2025/26; 2) Updating the Consumer Price Index Annual Reference Month to December; and 3) Updating GHAD Manager Payment Limits Under the Existing Consulting Services Agreement.
FISCAL IMPACT:
The Oakland Area Geologic Hazard Abatement District (GHAD) is funded 100% through assessments levied on properties within the GHAD and is a separate legal entity from the City of Oakland, therefore the GHAD’s operations have no fiscal impact on the City of Oakland General Fund. For Fiscal Year (FY) 2025/26 the GHAD anticipates assessment income of $14,766 from the 10 residential properties (Siena Hill development) currently subject to a levy within the GHAD with total revenue of $19,766 including investment income. Expenses for FY 2025/26 are estimated at $20,123. The current budget projects that, at the beginning of FY 2025/26 (July 1, 2025), the cumulative reserve will be approximately $123,797 and approximately $123,441 at the end of FY 2025/26 (June 30, 2026).
BACKGROUND:
On July 18, 2006, the Oakland City Council adopted Resolution 80058 approving the formation of the GHAD and appointed itself to serve as the GHAD Board of Directors.
The GHAD Board of Directors approved monitoring and maintenance by the GHAD on the 10 constructed residential lots with the adoption of Resolution 16/01 on September 20, 2016. The GHAD has the maintenance responsibilities as outlined below. Inspection and maintenance of slopes.
Inspection and maintenance of lined ditches.
Monitoring and maintenance of measurement devices, such as piezometers, inclinometers, and tiltmeters.
Inspection and maintenance of retaining walls.
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Inspection and maintenance of surface water quality treatment and detention facilities within the development.
The Siena Hill development is the only area receiving GHAD services. The Kenilworth development was annexed into the Oakland Area GHAD on February 21, 2017; however, GHAD responsibilities as described in the Plan of Control for the Kenilworth development have not been transferred to the GHAD yet; therefore, the development does not currently receive GHAD services. Parcels within the Kenilworth development will be eligible for transfer of Plan of Control responsibilities a minimum of 3 years after the issuance of the last residential building permit.
Since residential construction has not yet started within the Kenilworth development, the earliest the development could receive GHAD services is 2028.
Under Condition of Approval No. 51 for the Oak Knoll development, the City of Oakland required annexation of the Oak Knoll development into the existing Oakland Area GHAD. On July 5, 2022, the GHAD Board of Directors approved annexation of the Oak Knoll development into the GHAD; however, the Oak Knoll development does not currently receive GHAD services as Plan of Control responsibilities have not been transferred from the developer to the GHAD yet and the earliest this could occur is 2028.
The GHAD Board is being requested to adopt the budget for FY 2025/26 as prepared by the GHAD Manager, ENGEO Incorporated. The budget is attached to Resolution No. 2025-01 as Exhibit A. In addition, the GHAD Board is being requested to update the annual Consumer Price Index reference month to December and to update the GHAD Manager payment limits under the existing Consulting Services Agreement as required by that Agreement. The budget identifies that limit as $9,165.
CONSEQUENCE OF NEGATIVE ACTION:
The GHAD will not be able to continue operation if the budget is not approved.