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HomeMy WebLinkAbout7.2 Geological Hazard Abatement Dist CITY CLERK File # D[I][l;][Q]-~[Q] AGENDA STATEMENT CITY COUNCIL MEETING DATE: March 20, 2007 SUBJECT: Presentation regarding Geologic Razard Abatement Districts and Potential Annexation of Additional Parcels Report Prepared by: Melissa Morton, Public Works Director ATTACHMENTS: None RECOMMENDATION: # Receive the presentation. FINANCIAL STATEMENT: There is no fiscal impact to the City of Dublin. DESCRIPTION: Pursuant to the City Council's direction at the December 5, 2006, Regular Council Meeting, this presentation will discuss the feasibility of annexing additional parcels to a pre-existing Geologic Razard Abatement District (GRAD) to allow property owners to make an informed decision whether to pursue a GRAD. Division 17 of the California Public Resources Code establishes legal standards for geologic hazard abatement district ("GRAD") formation, GRAD financing and the scope of GRAD authority (Section 26500 et seq.). California Public Resources Code S 26550.5 provides that proceedings for the formation of a new GRAD may be initiated by a petition signed by owners representing at least ten percent (10%) of the real property to be included within the proposed district. The same is true of properties to be annexed to a district. Under the Public Resources Code, the City Council must adopt a resolution setting a public hearing and noticing by mail the owners of real property to be included within the GRAD at least twenty (20) days before the date set for the hearing. Property owners may thereafter object in writing to the proposed formation ofa GRAD. If it appears at the hearing that the owners of more than 50 percent of the assessed valuation of property within the territory to be annexed object to the formation, the proceedings must be abandoned. At the COPY TO: Page 1 of2 ITEM NO. I. 2.. G:\AGENDA STATEMENTS, MISC\agst GHADs.doc close of the hearing, the City Council will decide whether or not to annex the additional parcels to the GRAD. After a GRAD is formed, the City Council must take additional steps to make the GRAD operational. Specifically, the City Council must then appoint members to act as the initial Board of Directors for the GRAD. The Board of Directors (Board) must subsequently pass a budget and levy an assessment. Levying the assessment requires two steps: (a) approval of the engineer's report and the initiation of the assessment ballot proceeding, and (b) a public hearing to tabulate the assessment ballots and approve or deny the assessment following the 45-day notice period required by Proposition 218. That selfsame Board will make the determination on whether an annexation to the existing GRAD will be considered. For the Board to consider potential annexation of additional parcels into a pre-existing GRAD, the group of parcels considering annexation would have to pay for the preparation of an engineer's report which included the following information: . Soils Report and Design Drawings used for the construction of the parcels . Additional soils investigation that would update the aforementioned report · Analysis that quantified potential risk and frequency of risk . Financial analysis that balanced yearly maintenance costs and reserve accumulation · Financial analysis that assessed the cost of joining the existing reserve pool Based on the information in the engineer's report, a potential annual assessment could be determined for the properties to be annexed. If the group of parcels decided to pursue the annexation, an annexation process could then be initiated. In addition, a finding with respect to Proposition 218 will need to be made to insure that the assessment is proportional to the benefit derived by the property owners. With all of the information included in the Engineer's Report, the finding should be easy to make. Assessments can be balanced to insure that this occurs, and in some cases, annexed properties are assessed differently than those in the original GRAD boundary. Further, where a substantial reserve exists, assessments for annexed properties can be set higher initially to insure annexed properties contribute to the reserve. GRADs exist at the same level as a State agency in legal hierarchy and, because of the emergency nature of the work conducted by the GRAD, are exempt from both LAFCO and CEQA. In this way, a GRAD can move swiftly to remediate land instability before it becomes a costly repair. In addition, GRADs have the ability to assess property owners consistent with a Plan of Control that assures that funds exist for routine maintenance and for reserve accumulation adequate to remediate land instability. GRADs can also enter into bonded indebtedness based on the GRAD's ability to assess properties to repay the debt. Staff recommends that the Council receive the presentation. Page 2 of2