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San Ramon LogoGHAD Minutes title line

MINUTES OF THE
CITY OF SAN RAMON
GEOLOGIC HAZARD ABATEMENT DISTRICT NO. 1990-01 MEETING

April 23, 2013

A regular meeting of the City of San Ramon Geologic Hazard Abatement District No. 1990-01 was held on April 23, 2013 at 6:46 p.m. in the City Council Chamber at City Hall, 2222 Camino Ramon, Board Chair Clarkson presiding.
PRESENT:  Board Members Hudson, Livingstone, Perkins, O’Loane, and Chair Clarkson.
STAFF PRESENT:  City Manager Greg Rogers, Interim City Attorney Bob Saxe, District Engineer Robin Bartlett, and District Clerk Patricia Edwards.

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PLEDGE OF ALLEGIANCE

Members of Brownie Troop 30286 led those present in the pledge of allegiance.

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ANNOUNCEMENTS

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PUBLIC COMMENT

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APPROVAL OF MINUTES

(#5.1) Minutes of the June 12, 2012 meeting.

Vice Chair Hudson’s motion to approve the June 12, 2012 meeting minutes was seconded by Mbr. Livingstone and passed 4-0-0-1.  Mbr. Perkins abstained.

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CONSENT CALENDAR

(#6.1) Geologic Hazard Abatement District No. 1990-01 (GHAD) – Approve Fiscal Year 2013/14 Engineer’s Report and Updated Reserve Fund Study and Adopt Resolution GHAD No. 2013-001 – Resolution of Intention to Order Assessments for Fiscal Year 2013/14 for GHAD No. 1990-01 and Set a Public Hearing for May 28, 2013.

District Engineer Robin Bartlett provided the staff report.  The purpose of forming the GHAD is to provide a funding mechanism to prevent, mitigate, abate, or control a geologic hazard; and to mitigate or abate structural hazards that are partly or wholly caused by geologic hazards.  Because of the dry year, there was a limited amount of activity in 2012/13.  It is anticipated that the GHAD will accept properties totaling approximately 113 acres through 2013/14.

Mr. Bartlett stated that the overall budget is increasing from $607,000 to $658,000 as a result of the increase in land, shifts in mowing costs, and shifts in staff allocations.  The proposed new assessment rates for 2013/14 are $135.58 per residential unit and $0.0434 per square foot of commercial area.  This increase is a continuation of the policy established in 2006/07 which established an annual rate increase of 4% per year.  The current analysis indicates that the accumulation of reserve is essentially the same as projected in past years.  This is due to an ongoing lower than anticipated return on investments and conservative estimates on the need for work.   Reserves are expected to close at $6.8 million by the end of the year.  Looking at long term trends, the Finance Committee recommended that the GHAD continue its conservative policy.

Mbr. O’Loane questioned the 10% contingency for 2013-14.  He questioned what the rate of growth in the projection would be without the contingency.  He questioned the purpose of the contingency if reserves are available.  Mr. Bartlett responded that the contingency was included when the reserve fund was established and is kept as a continuity with past practice.  He explained that a great deal of judgment is involved in assigning various cost items.  The contingency applies an overall factor of safety into the estimates.  It could be eliminated but it adds continuity and staff tries to be consistent in its methodology.  Mr. Bartlett stated that the reserve serves two purposes.  It creates a pool of available money to respond to emergencies.  The GHAD was established prior to Prop 218 and has a hard cap on its assessments.  Assessments will not increase with inflation unless there is a Prop 218 vote.  The goal is to achieve a reserve which will create a self-funding GHAD in the long run.  Mbr. O’Loane asked if the reserves would grow faster without the contingency.  City Manager Greg Rogers stated that the contingency creates some operating flexibility and acts like an insurance fund.  Mr. Bartlett stated that the contingency is not withdrawn from the reserve and is used for projection purposes.  Mbr. Perkins noted that, if the contingency is not spent, it becomes part of the reserve.  It is a contingency against the ability to budget operating expenses going forward and events that need clean up.  Mr. Bartlett added that it is part of the general pattern to have sufficient funds available.

Mbr. Perkins’ motion to adopt Resolution GHAD 2013-001 was seconded by Vice Chair Hudson and passed 5-0.

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UNFINISHED BUSINESS

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NEW BUSINESS

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ADJOURNMENT

At 6:57 p.m., there being no further business, Board Chair Clarkson adjourned the meeting.

 

Signed:
Bill Clarkson, Board Chair
Patricia Edwards, District Clerk

Approved at the May 28, 2013 GHAD meeting 5-0.

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