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HomeMy WebLinkAboutItem 6.1 - 1498 Initiating Assessment Ballot Proceeding int Page 1 of 4 STAFF REPORT GEOLOGIC HAZARD ABATEMENT DISTRICT DATE: June 20, 2017 TO: Honorable President and Board of Directors FROM: Christopher L. Foss, GHAD District Manager SUBJECT: Resolution Initiating Assessment Ballot Proceedings and Expressing Intent to Order an Assessment to Pay for the Cost and Expenses of the Maintenance and Operations of the Improvements within the Tassajara Hills Development Annexation of the Fallon Crossing Geologic Hazard Abatement District (GHAD) Prepared by: Laurie Sucgang, Senior Civil Engineer, City of Dublin EXECUTIVE SUMMARY: The Board will consider adopting a Resolution initiating an assessment ballot proceeding for the Tassajara Hills Development annexation into the Fallon Crossing Geologic Hazard Abatement District (GHAD). If approved, a new assessment zone will be created to pay for GHAD activities in the Tassajara Hills Development. STAFF RECOMMENDATION: Adopt the Resolution Initiating an Assessment Ballot Proceeding and Expressing Intent to Order an Assessment to Pay for the Cost and Expenses of the Maintenance and Operations of the Improvements within the Tassajara Hills Annexation of the Fallon Crossing Geologic Hazard Abatement District. FINANCIAL IMPACT: Currently, revenue to fund the Fallon Crossing Geologic Hazard Abatement District (the GHAD) is generated through assessments on 106 residential lots within Chateau at Fallon Crossing development by CalAtlantic. The GHAD does not currently have a source of revenues to finance activities related to the area within Tassajara Hills development (formerly Moller Ranch) by Toll Brothers . Therefore, an assessment applicable to the Tassajara Hills area needs to be developed and implemented. The funds levied on the Tassajara Hills property will pay for the ongoing maintenance and operation of improvements within this portion of the GHAD, as well as contributing to the overall GHAD reserves. DESCRIPTION: On June 6, 2017, the Fallon Crossing GHAD Board of Directors adopted a Resolution Page 2 of 4 ordering the annexation of the Tassajara Hills development into the GHAD. The boundaries of the territory annexed to the GHAD and the boundaries of the Tassajara Hills development are the same. The GHAD will be responsible for the activities outlined in the Tassajara Hills Development Annexation Plan of Control, including maintenance and monitoring activities of slopes, debris benches, maintenance roads, trails, fencing, concrete-lined drainage ditches, subdrains, subdrain outlets, retaining walls, storm drain improvements, and the water quality and detention basins. There is currently no financing mechanism in place to pay for GHAD activities within the Tassajara Hills development. To establish a funding mechanism, the Board of Directors will go through a process to establish assessments based on an Engineer’s Report. The first assessment does not occur until the first fiscal year after a building permit has been issued for the property and the assessment can be added to the tax roll. Assessments can be added once per year and the data is required to be submitted to the County Assessor’s Office in August of each year. The adoption of the attached Resolution would initiate an assessment ballot proceeding for the Tassajara Hills development area. If approved, a new assessment zone will be created to pay for GHAD activities in th at area, via annual assessments that will generate $1,200 per single-family residential unit. The assessments would be adjusted annually based on the percentage change in the San Francisco -Oakland-San Jose Consumer Price Index for All Urban Consumers plus 0.5 percent. Properties would be assessed only after a building permit is issued for construction of a structure. Analysis California Public Resources Code, Section 26581, provides that, once a GHAD has been formed, it may annex territory utilizing the procedures for formation of a GHAD. California Public Resources Code Section 26550.5 provides that proceedings for the formation of a new GHAD may be initiated by a petition signed by the owners of at least ten percent (10%) of the real property to be included within the proposed district. On May 16, 2017, the Board of Directors was presented with a Petition for the annexation of Tassajara Hills into the GHAD. The Board adopted the Resolution accepting the Petition and setting a Public Hearing on the annexation. Notice of the Hearing was given pursuant to the provisions of Public Resources Code Sections 26564 through 26566. On June 6, 2017, the Public Hearing was held on the annexation of Tassajara Hills. A t the Hearing, the owners of more than 50 percent of the assessed valuation of property within the territory did not object to the annexation and the Board of Directors thereafter adopted a Resolution approving the annexation of Tassajara Hills. To provide for the costs and expenses of maintaining and operating the Tassajara Hills improvements within the GHAD, as designated in the Tassajara Hills Development Plan of Control (Plan of Control) on file with the District Clerk, it is necessary to provide a reliable funding mechanism for those improvements. Public Resources Code Sections 26650 et seq. authorize, after a noticed public hearing, the levy and collection of assessments upon benefited property to pay for the maintenance and operation of District improvements. Page 3 of 4 Proposition 218 imposes additional requirements for the levy and collection of assessments, including the mailing of notice, balloting materials and instructions as specified in Government Code Section 53753 to each record owner of a parcel subj ect to the proposed assessment at least 45 days prior to a public hearing on the levy of the assessment. In addition, Proposition 218 requires the creation of an Engineer's Report that separates the special benefits provided to the properties to be assesse d from the general benefits to the public at large. An Engineer's Report for the Annexation of the Tassajara Hills Development into the Fallon Crossing Geologic Hazard Abatement District (Engineer's Report) has been prepared by Uri Eliahu, of ENGEO, Inc. The Engineer's Report separates the special benefits provided by the GHAD to property within Tassajara Hills from the general benefits conferred on the public at large, identifies the specially benefited parcels, sets forth the estimated budget, calculates the total assessment to be levied against each parcel of property, and provides a description of the method used in formulating the assessments. Notice and balloting materials will be mailed at least 45 days before the date and location set for a public hearing on the proposed assessment (Assessment Hearing). The notice will include the amount of the assessment proposed to be imposed on each parcel, the basis upon which the amount of the proposed assessment was calculated, the reason for the assessment, and the date, time and location of the Assessment Hearing. At the Assessment Hearing, the Board of Directors will consider all statements and all written protests made or filed by any interested person at or before the conclusion of the Assessment Hearing. The proposed Resolution sets the hearing for 7:00 p.m. on Tuesday, August 15, 2017. Upon the conclusion of the Assessment Hearing, the Board of Directors will determine whether a majority protest exists in accordance with Government Code Section 53753. Once tabulated, the assessment ballots will be weighted according to the proportional financial obligation of each affected property. If the Board of Directors determines that a majority protest does not exist at the conclusion of the Assessment Hearing, the Board of Directors may then adopt a resolution to levy the assessment for Tassajara Hills. NOTICING REQUIREMENTS/PUBLIC OUTREACH: A copy of the Staff Report was provided to Toll CA VIII, L.P., owner of the Tassajara Hills development. ATTACHMENTS: 1. Location Map - Tassajara Hills Development 2. Resolution - Initiating an Assessment Ballot Proceeding and Expressing Intent to Order an Assessment to Pay for the Cost and Expense of the Maintenance and Operations 3. Exhibit A to Resolution - Boundary of Property 4. Exhibit B to Resolution - Engineer's Report Page 4 of 4 5. Exhibit C to Resolution - Notice of Adoption of Resolution 6. Exhibit D to Resolution - Assessement Ballot and Ballot Instructions APN: 985 -1 -1 -1 K TAB AMRDDUBUN96588- Openin G000le Maps Parcel Information l Tax lnfmmafion Vices P dd,,,al CeUilz 7 r, o w 0 r F. f f moo I4 f II Page 1 of 3 FALLON CROSSING GHAD RESOLUTION NO. XX - 17 RESOLUTION OF THE BOARD OF DIRECTORS OF THE FALLON CROSSING GEOLOGIC HAZARD ABATEMENT DISTRICT * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * INITIATING AN ASSESSMENT BALLOT PROCEEDING AND EXPRESSING INTENT TO ORDER AN ASSESSMENT TO PAY FOR THE COST AND EXPENSES OF THE MAINTENANCE AND OPERATIONS OF IMPROVEMENTS WITHIN THE TASSAJARA HILLS ANNEXATION OF THE FALLON CROSSING GEOLOGIC HAZARD ABATEMENT DISTRICT WHEREAS, this Resolution is adopted pursuant to the provisions of Division 17 (Section 26500 et seq.) of the Public Resources Code, entitled "Geologic Hazard Abatement Districts"; and WHEREAS, on June 6, 2017, the Board of Directors of the Fallon Crossing Geologic Hazard Abatement District ("District") approved Resolution No. 3-17 which annexed the Tassajara Hills development ("Tassajara Hills") into the Fallon Crossing Geologic Hazard Abatement; and WHEREAS, the property within Tassajara Hills is identified in the map attached as Exhibit A, and the parcel to be assessed is identified by an assessor's parcel number; and WHEREAS, in order to defray the costs and expenses of maintaining and operating the District improvements within Tassajara Hills, as designated in the Plan of Control for the Fallon Crossing Geologic Hazard Abatement District Tassajara Hills Development Annexation ("Plan of Control") on file with the District Clerk, it will be necessary to provi de a reliable source of funding to the District; and WHEREAS, Public Resources Code Sections 26650 et seq. authorize, after a noticed public hearing, the levy and collection of an assessment upo n benefited property within the District to pay for the maintenance and operation of District improvements; and WHEREAS, California Government Code Sections 53750 et seq. (which implement California Constitution Article XIID, known as Proposition 21 8), and Government Code Section 53739 impose additional requirements for the levy and collection of assessments, including the mailing of notice including balloting materials and instructions a s specified in Section 53753 to each record owner of a parcel subject to the proposed assessment at le ast 45 days prior to a public hearing on the levy of the assessment; and WHEREAS, an Engineer's Report for Tassajara Hills, attached as Exhibit B ("Engineer's Report"), has been prepared by a registered professional eng ineer certified by the State of California; and WHEREAS, the Engineer's Report separates the special benefits provided by the District to property within Tassajara Hills from general benefits conferred on the public at large, identifies the specially benefited parcels, and sets forth the estimated bud get, the total assessment to be levied against each parcel of property within Tassajara Hills, and provides a description of the method used in formulating the assessments; and WHEREAS, the levy of an assessment for District activities within Tassajara Hills is in the best interests of the citizens of Dublin. Page 2 of 3 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Fallon Crossing Geologic Hazard Abatement District that: Section 1. Findings and Determinations The Board of Directors hereby finds and determines that the above recitals are true and correct and have served as the basis, in part, for the findings and actions of the District set forth below. Section 2. Direction 1. The Board of Directors hereby declares its intention, consistent with the require ments of Public Resources Code Sections 26650 et seq., Article XI IID of the California Constitution, Government Code Sections 53739 and 53750 et seq., and Elections Code Section 4000, to order that the costs and expenses of District improvements, described in detail in the Engineer's Report, shall be assessed against the property within Tassajara Hills which is benefited by the District. 2. The Board of Directors further declares its intention to assess against the property within Tassajara Hills, for the 2017-2018 fiscal year and for subsequent years, the assessment amounts apportioned in accordance with the Engineer's Report. 3. The assessments noted in Section 2 shall be adjusted for inflation annually by the percentage change utilizing the San Francisco-Oakland-San Jose Consumer Price Index – All Urban Consumers for the month of December plus one -half percent (0.5%). The first adjustment shall occur based on the December 2017 index. 4. Each year the adjusted rate described in Section 3 s hall be the maximum rate unless amended in accordance with California law. 5. The adjusted assessment rate as described in Section 3 shall be used to levy assessments of eligible properties on the subsequent July 1st (For example December 2017 adjusted rates are used for Fiscal Year 2017-2018 levies; December 2018 adjusted rates are used for Fiscal Year 2018-2019 levies; and so on). 6. Each of the parcels in the property identified in Exhibit A will receive a particular and distinct special benefit in the form of District facilities and services which are over and above the general benefits received by the general public at large. The Di strict's activities include (a) monitoring, repair and maintenance of natural and excavated slopes and surfa ce drainage facilities to prevent certain geologic hazards, and (b) may include temporary and permanent mitigation, repairs and improvement measures to abate or control geologic hazards. These special benefits are described in detail in the Plan of Control on file with the Distric t Clerk. 7. The Board of Directors has reviewed and approves the Engineer's Report attached hereto as Exhibit B. The Engineer's Report identifies the special benefit conferred on the entire District and each parcel that will be subject to the assessment and separates that special benefit from the general benefit conferred on the public at large. Such special benefit derived from the District is proportional to and no greater than the reasonab le cost of the special benefits conferred. The assessment does n ot exceed the reasonable cost of the proportional special benefit conferred. Page 3 of 3 8. Notice is hereby given of a public hearing ("Hearing ") on August 15, 2017, at the hour of 7:00p.m., at 100 Civic Plaza, Dublin, CA 94568. The Hea ring will be on the question of the levy and collection of the District assessment for Tassajara Hills ("Assessment") for the 2017- 2018 fiscal year, and for each future year based upon the percen tage change in the San Francisco-Oakland-San Jose Consumer Price Index – All Urban Consumers plus one-half percent (0.5%). At the Hearing, the Board of Directors will consider all statements and all written protests made or filed by any interested person at or before the conclusion of the Hearing concerning the improvements, assessment zones within the District, the proposed diagram, the proposed Assessment and the engineer's estimate of the cost of the improvements. During the course or upon the conclusion of the Hearing, the Board of Directors may order changes in any of the matters provided in the Engineer's Report. Upon conclusion of the Public Hearing, the Board of Directors shall determine whether a majority protest exists in accordance with California Government Code Section 53753. In tabulating the Assessment ballots, the Assessment ballots shall be weighed according to the proportional financial obligation of the affected property. If the Board of Directors determines that a majority protest does not exist, the Board of Directors may take action to levy the Assessment. 9. District Staff is hereby directed to mail a notice of the Hearing and proposed assessment, attached as Exhibit C ("Notice"), to the record owner of the parcel within Tassajara Hills announcing that ballots will be canvassed and a hearing conducted on August 15, 2017, and for each future year following the levy of the Assessment. The Assessment Ballot and Ballot Instructions, attached as Exhibit D, shall be attached to the Notice. 10. The District Engineer, or his designee, is hereby designated as the person to answer inquiries regarding any proceedings and other matters related to the levy of the District Assessment within Tassajara Hills, and may be contacted during regular business hours at (925)-833-6630. Section 3. Certification The District Clerk shall certify the adoption of this Resolution. Section 4. Effective Date This Resolution shall take effect immediately upon adoption . PASSED, APPROVED AND ADOPTED this 20th day of June, 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ President ATTEST: _________________________________ District Clerk EXHIBIT "B" LEGAL DESCRIPTION ALL THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF DUBLIN, COUNTY OF ALAMEDA, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: BEING A PORTION OF THE LAND AS DESCRIBED IN THE DEED TO RICHEY TRUST, ET AL, RECORDED ON NOVEMBER 09, 2001 IN DOCUMENT NUMBER 2001440482, OFFICIAL RECORDS OF ALAMEDA COUNTY, LYING SOUTH OF THE ALAMEDA AND CONTRA COSTA COUNTY LINE, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SECTION 21, TOWNSHIP 2 SOUTH, RANGE 1 EAST, MOUNT DIABLO BASE AND MERIDIAN; THENCE ALONG THE SOUTHERN LINE OF SAID SECTION 21, NORTH 89°20'13" WEST, 1866.14 FEET TO THE MOST EASTERN CORNER OF SAID PARCEL 2; THENCE LEAVING SAID SOUTHERN LINE AND ALONG THE SOUTHEASTERN LINE OF SAID PARCEL 2, SOUTH 31°01'01" WEST, 953.28 FEET; THENCE SOUTH 33°22'51" WEST, 92.98 FEET TO THE EASTERLY LINE OF COUNTY ROAD NO. 2568 (TASSAJARA ROAD); THENCE LEAVING SAID SOUTHEASTERN LINE, ALONG SAID CENTER LINE NORTH 13°02'45" WEST, 165.79 FEET TO A CURVE TO THE LEFT HAVING A RADIUS OF 833.00 FEET, A DELTA OF 26°03'30"; THENCE ALONG SAID CURVE AN ARC LENGTH OF 378.85 FEET; THENCE NORTH 39°06'15" WEST, 637.44 FEET TO A CURVE TO THE RIGHT HAVING A RADIUS OF 767.00 FEET, A DELTA OF 45°10'30"; THENCE ALONG SAID CURVE AN ARC LENGTH OF 604.74 FEET; THENCE NORTH 06°04'15" EAST, 99.53 FEET TO THE ALAMEDA/CONTRA COSTA COUNTY LINE; THENCE ALONG SAID COUNTY LINE, NORTH 73°50'31" EAST, 6067.92 FEET; THENCE LEAVING SAID COUNTY LINE, SOUTH 01°07'46" WEST, 2503.12 FEET TO THE SOUTHERN LINE OF SECTION 22, TOWNSHIP 2 SOUTH, RANGE 1 EAST, MOUNT DIABLO BASE AND MERIDIAN; THENCE ALONG LAST SAID LINE, NORTH 89°20'57" WEST, 2609.11 FEET TO THE POINT OF BEGINNING. APN.: 985-0001-001-01 END OF DESCRIPTION ENGINEER’S REPORT FALLON CROSSING GEOLOGIC HAZARD ABATEMENT DISTRICT TASSAJARA HILLS DEVELOPMENT DUBLIN, CALIFORNIA Prepared by: ENGEO Incorporated May 30, 2017 Project No: 5661.002.000 5661.002.000 May 30, 2017 TABLE OF CONTENTS Page CERTIFICATION OF FILING ...................................................................................................1 I. INTRODUCTION ................................................................................................................3 II. BACKGROUND ...................................................................................................................3 III. GEOLOGIC HAZARD ABATEMENT DISTRICT BOUNDARIES .............................3 IV. SERVICE LEVELS .............................................................................................................3 V. DESCRIPTION OF IMPROVEMENTS MAINTAINED BY THE GHAD ..................4 VI. ASSESSMENT METHOD ..................................................................................................5 VII. ASSESSMENT- BUDGET ..................................................................................................6 VIII. DEVELOPER RESPONSIBILITIES ................................................................................6 EXHIBIT A – Legal Description and Plat EXHIBIT B – Fallon Crossing GHAD Budget – Tassajara Hills Development EXHIBIT C – 10-year GHAD Budget 5661.002.000 May 30, 2017 -1- ENGINEER’S REPORT Fallon Crossing GEOLOGIC HAZARD ABATEMENT DISTRICT TASSAJARA HILLS DEVELOPMENT ANNEXATION (Pursuant to the Public Resources Code of the State of California, Section 26500 et seq.) CERTIFICATION OF FILING The Geologic Hazard Abatement District (“GHAD”) provides monitoring and maintenance of improvements related to geologic hazard management and other responsibilities as a landowner, within the Tassajara Hills Development portion of the Fallon Crossing GHAD and levies, and collects assessments in order to perform its activities. The improvements, which are the subject of this report, are defined as any activity 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 eight parts, as follows: I. INTRODUCTION II. BACKGROUND III. GEOLOGIC HAZARD ABATEMENT DISTRICT BOUNDARIES IV. SERVICE LEVELS V. DESCRIPTION OF GHAD MAINTAINED IMPROVEMENTS VI. ASSESSMENT METHOD VII. ASSESSMENT LIMIT - BUDGET PROJECTION VIII. DEVELOPER RESPONSIBILITIES 5661.002.000 May 30, 2017 -2- The undersigned respectfully submits the enclosed Engineer’s Report. Date: May 30, 2017 By: ENGEO Incorporated _________________________________________, GE Uri Eliahu I HEREBY CERTIFY that the enclosed Engineer’s Report was approved and confirmed by the GHAD Board on the __ day of ________ 2017. _________________________________________ David Haubert Chair of the Board Fallon Crossing Geologic Hazard Abatement District Dublin, California 5661.002.000 May 30, 2017 -3- ENGINEER’S REPORT for FALLON CROSSING GEOLOGIC HAZARD ABATEMENT DISTRICT TASSAJARA HILLS DEVELOPMENT DUBLIN, CALIFORNIA for the ESTABLISHMENT OF AN ASSESSMENT LIMIT I. INTRODUCTION The Dublin City Council formed the Fallon Crossing Geologic Hazard Abatement District (“GHAD” or “District”) on August 16, 2011, with approval of Resolution 147-11, under authority of the California Public Resources Code (Division 17, commencing with Section 26500). Included within the District were 106 single-family residences and adjacent open spaces within the Fallon Crossing development (Tract 7617). The Dublin City Council members act as the Board of Directors of the Fallon Crossing GHAD. II. BACKGROUND The developer of the Tassajara Hills development (“Site”) previously prepared the Fallon Crossing GHAD Plan of Control (“Plan of Control”) for the Tassajara Hills Development under separate cover. The Plan of Control describes the GHAD’s responsibilities to permanently monitor and maintain GHAD improvements within the Site. 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 legal description and plat 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. 5661.002.000 May 30, 2017 -4- 2. In conjunction with the County Assessor’s Office, setting the annual levying of assessments on the property tax rolls. 3. Engagement of technical professionals to perform the monitoring duties as described in the Plan of Control. 4. Performance of GHAD maintenance activities in accordance with the Plan of Control. These maintenance activities and areas include:  Developer or GHAD-constructed retaining walls, including repair if structural integrity of a wall or adjacent structure(s) is threatened  Water detention, bioretention cells, and vegetated bio-swales facility maintenance, including access road  Slopes  Debris benches  Emergency vehicle access (EVA) and maintenance roads  Lined and unlined drainage ditches in developed areas and open space  Vegetation control within open space  Storm drain system improvements  Subdrains and subdrain outlets  Fuel management for fire suppression  Fencing  Mitigation swales  Slope and subdrain maintenance within GHAD easements. 5. The GHAD will also have maintenance, monitoring and repair responsibilities for slopes, which will include natural, reconstructed or partially reconstructed landslides. 6. Preparation of annual GHAD budgets for approval by the GHAD Board of Directors. V. DESCRIPTION OF IMPROVEMENTS MAINTAINED BY THE GHAD The GHAD-maintained improvements are described in the Plan of Control. In general, these improvements include water quality facilities; drainage systems, including lined and unlined ditches in developed areas and open space; open-space storm drain inlets and outlets; subdrains and outlets; retaining walls; access roadways; and habitat features. 5661.002.000 May 30, 2017 -5- 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. 4. Protection from wild land fires associated with unmanaged vegetation. 5. Protection of habitat features within the deed restricted parcels. 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. As listed above and in Section 2.3 of the Plan of Control, the GHAD will monitor and maintain drainage facilities on the adjacent parcel. Although this area is outside the GHAD boundary, the maintenance of these facilities (including drainage pipes, slopes and mitigation swales, storm drains, and concrete-lined drainage ditches) is necessary to reduce the potential for uncontrolled stormwater infiltration, erosion, and other potential geologic hazards that could affect properties and improvements within the GHAD Annexation Area. Single-family residential lots are assessed as one unit. The Site consists of 370 single-family residences. The total number of residential units within the Site was considered in light of the annual GHAD Annexation Area budget in developing the annual assessment amount. The Engineer hereby finds that residential properties within the GHAD Annexation Area receive substantially equal special benefit. A financial analysis was performed to provide a framework for an operating budget for the on-going abatement, mitigation, prevention and control of geologic hazards within the GHAD Annexation Area. In preparation of the budget, several factors were considered including:  Site geology  Remedial grading  Proximity of geologic hazards to proposed residences  Improvements or structures  Site access considerations  Elements Requiring Routine Maintenance, including: 1. Surface Drainage Facilities 2. Graded Slopes 3. Retaining Walls 4. Detention Basin Facilities 5. Fire Breaks 6. Habitat Features 5661.002.000 May 30, 2017 -6- 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 $1,100,000, adjusted in subsequent years for inflation) geologic events at 10-year intervals, a budget was prepared for the purpose of estimating initial assessment levels (Exhibit B). The Engineer recommends an annual assessment limit for the Tassajara Hills portion of the Fallon Crossing GHAD of $1,200 per detached single-residential unit (Fiscal Year 2016/17 dollars). The proposed initial assessment level will be automatically adjusted annually on December 1 to reflect the percentage change in the San Francisco-Oakland-San Jose Consumers Price Index plus 0.5 percent for All Urban Consumers. The initial levy for the Tassajara Hills development should be set to $1,200 per single-family unit. The 10-year budget (Exhibit C) assumes a 2-percent inflation rate. While the assumptions, estimated expenses, and reserve 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 1 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 Funding and Acceptance of Responsibility by the District (Exhibit E within the Plan of Control), the GHAD reserve at the time of transfer will be approximately $350,000. Additionally, a minimum of 250 residences will be subject to the levy of the assessment at the time of transfer. Funds collected and remaining from the levy of assessments during the period that the developer is responsible for performing monitoring and maintenance activities shall be applied to meet the required GHAD reserve amount. In addition, receivables from the Alameda County Tax Collector will be included to meet the minimum reserve amount. VIII. DEVELOPER RESPONSIBILITIES The developer of the Site is responsible for managing and maintaining the Tassajara Hills portion of the Fallon Crossing GHAD until the GHAD accepts responsibility for the GHAD Improvements as set forth in the Plan of Control. In addition, the developer is responsible for funding any necessary GHAD functions or business undertaken for the Tassajara Hills portion of the Fallon Crossing GHAD that the GHAD Officers or Board of Directors determine are necessary before the GHAD accepts the GHAD Improvements. If the developer fails to fund all or a portion of these costs, these costs shall be covered by the funds generated by and for the 5661.002.000 May 30, 2017 -7- Tassajara Hills portion of the Fallon Crossing GHAD (i.e., through the assessment) and the developer 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 Tassajara Hills development to conduct any necessary GHAD functions or business for the Tassajara Hills portion of the Fallon Crossing GHAD 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. 5661.002.000 May 30, 2017 EXHIBIT A Legal Description and Plat to Accompany Legal Description N39°06'15"W 637.44' BNDY R=833.00' Δ=26°03'30" L=378.85 BNDY N13°02'45"W 165.79' BNDY N89°20'13"W 1866.14' BNDY N8 9 ° 2 0 ' 5 7 " W 2 6 0 9 . 1 1 ' B N D Y N1°07'46"E 2503.12' BNDY N 7 3 ° 5 0 ' 3 1 " E 6 0 6 7 . 9 2 ' B N D Y N31°01'01"E 953.28' BNDY N33°22'51"E 92.98' BNDY TAS S A J A R A R O A D P.O.B. R=767.00' Δ=45°10'30" L=604.74 BNDY N6°04'15"E 99.53' BNDY 22 21 27 28 T. 2 S . , R . 1 E . , M. D . B . & M . 5661.002.000 May 30, 2017 EXHIBIT B Fallon Crossing GHAD Budget Tassajara Hills Development 5661.002.000 May 30, 2017 Fallon Crossing Geologic Hazard Abatement District Tassajara Hills Development Budget ASSUMPTIONS Total No. of Single Family Residential Units 370 Annual Assessment per Unit (FY 2017 $) $1,200 Annual Adjustment in Assessment (estimated) 2.5% Inflation (estimated) 2.0% Investment Earnings (estimated) 3.5% Frequency of Large-Scale Repair (years) 10 Cost of Large-Scale Repair (current $) $1,100,000 ESTIMATED ANNUAL EXPENSES IN FY 2017 DOLLARS Administration and Accounting Basin Monitoring Program GHAD Monitoring Program Creek Bank Maintenance/Erosion Protection EVA/Fire Road Maintenance and Resurfacing Sediment/Debris Removal from Concrete Ditches Mitigation Swales Fence Maintenance/Fire Suppression Biofiltration Maintenance Detention Basin Maintenance Slope Stabilization (incl. minor landsliding) Subdrain/Outfall Maintenance V-Ditch Replacement (Annualized) Open Space Pipelines (Annualized) Retaining Wall Replacement (Annualized) Fence Replacement (Annualized) Gravel EVA/Fire Road (Annualized) Major Repair (Annualized) Miscellaneous/Contingency (10%) Total $30,636 $12,500 $12,500 $30,000 $3,533 $5,011 $15,996 $19,596 $2,013 $33,264 $30,000 $2,300 $6,681 $5,973 $1,100 $8,890 $15,077 $110,000 $34,507 $379,577 5661.002.000 May 30, 2017 EXHIBIT C 10-year GHAD Budget EX H I B I T C Ta s s a j a r a H i l l s - F a l l o n C r o s s i n g G e o l o g i c H a z a r d A b a t e m e n t D i st r i c t Es t i m a t e d B u d g e t - M a y 2 0 1 7 YE A R 2 0 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 20 2 4 20 2 5 20 2 6 20 2 7 C u m u l a t i v e N o . o f U n i t s 9 1 0 2 2 1 8 3 1 5 3 7 0 3 7 0 3 7 0 3 7 0 3 7 0 3 7 0 3 7 0 A. I N C O M E A s s e s s m e n t 1 0 , 8 0 0 1 2 5 , 4 6 0 2 7 4 , 8 4 4 4 0 7 , 0 6 5 4 9 0 , 0 9 3 5 0 2 , 3 4 5 5 1 4 , 9 0 4 5 2 7 , 7 7 6 5 4 0 , 9 7 1 5 5 4 , 4 9 5 5 6 8 , 3 5 8 B. P R O J E C T E D E X P E N S E S 1 . A d m i n i s t r a t i o n a n d A c c o u n t i n g 1 5 , 3 1 8 1 5 , 6 2 4 3 1 , 8 7 4 3 2 , 5 1 1 3 3 , 1 6 1 3 3 , 8 2 5 3 4 , 5 0 1 3 5 , 1 9 1 3 5 , 8 9 5 3 6 , 6 1 3 3 7 , 3 4 5 C o u n t y F e e s 2 5 7 3 3 4 4 3 2 5 1 9 5 7 5 5 8 6 5 9 8 6 1 0 6 2 2 6 3 5 6 4 8 2 . C o n s u l t a n t s ( P r o f . S e r v i c e s ) - - 2 6 , 0 1 0 2 6 , 5 3 0 2 7 , 0 6 1 2 7 , 6 0 2 2 8 , 1 5 4 2 8 , 7 1 7 2 9 , 2 9 1 2 9 , 8 7 7 3 0 , 4 7 5 3 . M a i n t e n a n c e & O p e r a t i o n - - 6 8 , 4 7 9 1 0 0 , 9 2 8 1 2 0 , 9 2 2 1 2 3 , 3 4 0 1 2 5 , 8 0 7 1 2 8 , 3 2 3 1 3 0 , 8 9 0 1 3 3 , 5 0 7 1 3 6 , 1 7 8 4 . S l o p e S t a b i l i z a t i o n ( M & O ) - - 1 8 , 3 9 0 2 7 , 1 0 4 3 2 , 4 7 3 3 3 , 1 2 2 3 3 , 7 8 5 3 4 , 4 6 1 3 5 , 1 5 0 3 5 , 8 5 3 3 6 , 5 7 0 5 . C a p i t a l I m p r o v e m e n t s - - 2 3 , 1 2 3 3 4 , 0 7 9 4 0 , 8 3 0 4 1 , 6 4 7 4 2 , 4 8 0 4 3 , 3 3 0 4 4 , 1 9 6 4 5 , 0 8 0 4 5 , 9 8 2 6 . R e p a i r - - - - - - - - - - 1 , 3 4 0 , 8 9 4 7 . M i s c E x p e n s e s - - 2 1 , 1 5 3 3 1 , 1 7 6 3 7 , 3 5 1 3 8 , 0 9 9 3 8 , 8 6 0 3 9 , 6 3 8 4 0 , 4 3 0 4 1 , 2 3 9 4 2 , 0 6 4 8 . D e b t S e r v i c e - - - - - - - - - - - S U B T O T A L - E X P E N S E S 1 5 , 5 7 5 1 5 , 9 5 8 1 8 9 , 4 6 0 2 5 2 , 8 4 8 2 9 2 , 3 7 4 2 9 8 , 2 2 1 3 0 4 , 1 8 6 3 1 0 , 2 6 9 3 1 6 , 4 7 5 3 2 2 , 8 0 4 1 , 6 7 0 , 1 5 4 R E S E R V E 2 2 5 1 0 9 , 5 0 2 8 5 , 3 8 3 1 5 4 , 2 1 7 1 9 7 , 7 1 9 2 0 4 , 1 2 4 2 1 0 , 7 1 8 2 1 7 , 5 0 7 2 2 4 , 4 9 6 2 3 1 , 6 9 1 ( 1 , 1 0 1 , 7 9 7 ) E A R N I N G S 8 8 3 , 8 4 1 6 , 9 6 4 1 2 , 6 0 5 1 9 , 9 6 7 2 7 , 8 1 0 3 6 , 1 5 8 4 5 , 0 3 6 5 4 , 4 7 0 6 4 , 4 8 6 CU M U L A T I V E R E S E R V E 23 3 1 0 9 , 7 4 3 1 9 8 , 9 6 7 3 6 0 , 1 4 7 5 7 0 , 4 7 2 7 9 4 , 5 6 2 1 , 0 3 3 , 0 9 0 1 , 2 8 6 , 7 5 5 1 , 5 5 6 , 2 8 8 1 , 8 4 2 , 4 4 9 8 0 5 , 1 3 8 1 o f 1 5661.002.001 5/30/2017 NOTICE OF ADOPTION OF RESOLUTION BY THE BOARD OF DIRECTORS OF THE FALLON CROSSING GEOLOGIC HAZARD ABATEMENT DISTRICT On June 6, 2017, the Fallon Crossing Geologic Hazard Abatement District Board of Directors adopted Resolution No. 3-17, approving and ordering the annexation of the Tassajara Hills development into the Fallon Crossing Geologic Hazard Abatement District (GHAD). This formation was described in the petition dated April 17, 2017 and in the GHAD Plan of Control dated May 30, 2017. These actions were taken in accordance with Public Resources Code Sections 26500 et seq. for the purpose of the prevention, mitigation, abatement and control of certain geologic hazards. NOTICE IS HEREBY GIVEN that, on June 20, 2017, the Fallon Crossing GHAD Board adopted Resolution X-17 declaring its intention to impose an assessment on GHAD property within the Tassajara Hills development and fixing a public hearing to consider adoption of this assessment to finance this portion of the GHAD. The total yearly estimated budget for the financing of the Tassajara Hills portion of the Fallon Crossing GHAD as set forth in the Engineer's Report is $379,577. If the assessment is adopted, it is anticipated that the following assessments amounts will apply within the Tassajara Hills portion of the GHAD in fiscal year 2017dollars. Single Family Residential Units 370 Annual Assessment per Unit (FY 2017 $) $1,200 If the assessment is adopted, the rates identified in this notice will be adjusted annually based upon the percentage change in the San Francisco -Oakland-San Jose Consumer Price Index – All Urban Consumers plus 0.5 percent. If adopted, the assessment will remain in effect indefinitely unless it is modified or rescinded by the Fallon Crossing Geologic Hazard Abatement District Board of Directors. The attached Engineer's Report for the GHAD was prepared by a registered engineer, certified in the State of California, and describ es in detail the reason for the assessment and the basis upon which the amounts of the proposed assessments were calculated. The Engineer's Report specifically sets forth the yearly estimated budget, the total assessment that will be chargeable to the Tassajara Hills portion of the Fallon Crossing GHAD, the proposed estimated assessments to be levied each year against each parcel of property, and a description of the method used in formulating the estimated assessment. A copy of the Engineer's Report is included as Attachment A and is also available for inspection at the office of the Fallon Crossing GHAD Clerk, 100 Civic Plaza, Dublin, CA 94568. The GHAD Board will conduct a public hearing on August 15, 2017, at 7:00p.m., in the City of Dublin City Council Chambers, 100 Civic Plaza, Dublin, California, to consider imposition of the proposed assessment. This paragraph provides the procedure for returning and tabulating the ballots. A copy of this Notice of Adoption of Resolution, a sealable ballot and the Engineer's Report has been sent to the property owner that is within the Tassajara Hills development within the Fallon Crossing GHAD. The ballot may be completed and mailed or hand delivered to the Fallon Crossing GHAD Clerk, Attention: Ms. Caroline Soto, 100 Civic Plaza, Dublin, CA 94568, or may be submitted at the public hearing. You may submit, withdraw, or change your ballot at any time prior to the conclusion of the testimony on the proposed assessment at the public hearing. At the public hearing, the GHAD Clerk will deliver the sealed ballots to the GHAD Board. The ballots will remain sealed until they are tabulated. The GHAD Board will then close the public hearing and consider all protests against the proposed assessment. After the GHAD Board closes the public hearing, the GHAD Clerk, or some other impartial person not having a vested interest in the outcome of the proposed assessment, will tabulate the ballots submitted and not withdrawn, in support of or in opposition to the proposed assessment. The GHAD Board shall not impose the assessment if there is a majority protest. A majority protest exists if, upon conclusion of the Hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. In tabulating the ballots, the ballots shall be weighted according to the proportional financial obligation of the affected property. Inquiries regarding the proposed assessment may be made by mail to: Fallon Crossing GHAD Clerk, Attention: Ms. Caroline Soto, 100 Civic Plaza, Dublin, CA 94568 or by phone at (925) 833-6650. Ballot Identification of Parcel: Assessor’s Parcel Number 985-0001-001-01 Record Owner: Toll CA VIII, L.P. ____________ Yes, I approve the proposed annual benefit assessment described in the attached Notice on the property described by the parcel number identified in this Ballot. ____________ No, I do not approve the proposed annual benefit assessment described in the attached Notice on the property described by the parcel number identified in this Ballot. _____________________________ Signature of Record Owner or Authorized Representative of the above identified parcel Mail or deliver sealed Ballot to: Clerk of the Board of Directors Ms. Caroline Soto Fallon Crossing Geologic Hazard Abatement District 100 Civic Plaza Dublin, CA 94568