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HomeMy WebLinkAboutMINUTES - 08122003 - C.29 TO: BOARD OF SUPERVISORS AS THE BOARD OF DIRECTORS, WIEDEMANN RANCH GEOLOGICAL HAZARD ABATEMENT DISTRICT FROM: MAURICE SHIU, PUBLIC WORKS DIRECTOR DATE: August 12, 2003 SUBJECT: ACCEPT and APPROVE the Fiscal Year 2002/2003 Third Quarter Expense Report for the Wiedemann Ranch Geological Hazard Abatement District, San Ramon area. (District III) Project No. 7816-6X5511 SPECIFIC REQUEST(S)OR RI COMMENDATION(S)&BACKGROUND AND JUSTIFICATION I. Recommended Action: ACCEPT and APPROVE the Fiscal Year 2002/2003 Third Quarter Expense Report for the Wiedemann Ranch Geological Hazard Abatement District(GHAD). II. Fiscal Impact: No impact to the County General Fund. The Wiedemann Ranch GHAD is funded through assessments levied on properties within the boundaries of the District, and portions of the District's current expenditures are being reimbursed by the original developers of property within the boundaries of the District. III. Reasons for Recommendation and Background: On September 1, 1998, the Contra Costa Board of Supervisors, pursuant to the provisions of Section 26550 of the Public Resources Code, adopted Resolution No. 98/438 and formed the Wiedemann Ranch Geologic Hazard Abatement District. On April 11, 2000, the GHAD's Board of Directors and the Contra Costa County Board of Supervisors approved the annexation of the Presley Henry Ranch Development (City of San Raman Subdivision 8188) into the Wiedemann Ranch CHAD. The Board of Supervisors is the Board of Directors of the District. _j_,RECOMMENDATION OF COUNTY ADMINIST R RECOMMENDATION OF BOARD COMMITTE F'PROVE ,: THER ACTION OF BOA N AUG. 12, 2003 APPROVED AS RECOMMENDED xx OTHER VOTE OF SUPERVISORS XX UNANIMOUS(ABSENT NOTE } AYES, NOES: I hereby certify that this is a true and correct copy of an ABSENT: ABSTAIN: action taken and entered on the minutes of the Board of Supervisors acting as the CHAD Board on the date shown. KG:sr G:\GpData\SpDist\Board Orders\2003\08-1203 BO-(W)3rd Qtr Exp.Rep.doc ATTESTED: AUGUST 12, 2003 Originator: Public Works Department(Special Districts) JOHN SWEETEN,Clerk of the Wiedemann Ranch Contact: Skip Epperly,(313-2253) CHAD Board of Directors and Board Administrator cc, Assessor Auditor-Controller County Administrator County Counsel BY �' / Deputy Accounting Gray-Bowen Company CHAD File SUBJECT: ACCEPT and APPROVE the Fiscal Year 2002/2003 Third Quarter Expense Report for the Wiedemann Ranch Geological Hazard Abatement District, San Ramon area. (District III) Project No. 7816-6X5511 DATE: August 12, 2003 PAGE: -2- 111. Reasons for Recommendation and Background: Gray-Bowen and Company, Inc., General Manager of the District prepared and submitted the attached Expense Report for the third quarter of the 2002/03 fiscal year. Expenditures by the District during the third quarter of this fiscal year totaled $30,670.68. Of this amount, District staff anticipates that the original developers of the projects within the boundaries of the District (Wiedemann Ranch — Toll Brothers and Henry Ranch — William Lyon Homes) will reimburse a majority of these costs. Invoices are being prepared and will be forwarded as soon as they are ready. Expenditures under the District's Preventative Maintenance Program account for $6,839.14 or 22.3% of the total expended during the third quarter of this fiscal year. This amount reflects work related to the development of a comprehensive Preventative Maintenance Program (PMP) for the District as well as a reporting and monitoring program for the numerous piezometers, horizontal drains and other monitoring devices that have been installed within the boundaries of the District. Additionally, expenses under this category include inspection of facilities to be turned over to the District as well as the cleaning of a clogged storm drain line. Expenditures under the Administration portion of the budget account for $17,312.04 or 56.4% of the Districts' expenditures this past quarter. Expenditures under the Administrative portion of the District's budget significantly exceeded estimates that were prepared with development of the District's annual budget. For the most part, these extraordinary expenses related to work on issues associated with maintenance of and access to a habitat conservation area located to the rear of the Henry Ranch portion of the District. All of these charges are the responsibility of the original developer (William Lyon Homes) and they have been responsive to the District's requests for reimbursement of costs. pull reimbursement is anticipated. Details of these expenditures are included in the attached report. IV. Consequences of Negative Action.: The quarterly expense report for CHAD operations would not be available to residents and others with an interest in the District. August 12, 2003 TO: Board of Directors FROM: Gray-Bowen and Company, Inc., General Manager Wiedemann Ranch Geologic Hazard Abatement District By: William R. Gray,President SUBJECT: Wiedemann Ranch GHAD, Third Quarter Expense Report, FY 2002/03 On September 1, 1998, the Contra Costa Board of Supervisors, pursuant to the provisions of Section 26550 of the Public Resources Code, adopted Resolution No. 98/438 and formed the Wiedemann Ranch Geologic Hazard Abatement District (GHAD). Wiedemann Ranch is a 371 unit residential development along the south side of Norris Canyon Road near Bollinger Canyon Road in the San Ramon area. Can April 11, 2000, the GHAD's Board of Directors and the Contra Costa County Board of Supervisors approved the annexation of the 100-unit Presley Henry Ranch Development (City of San Ramon Subdivision 8188) into the District. The Board of Supervisors is the Board of Directors of the District. Gray-Bowen and Company, Inc., General Manager,prepared this report, including the attached spreadsheets. This report is the representation of management and has not been audited, reviewed or compiled by an independent accountant. There may be classification and timing differences between these reports and the accounting records maintained by Contra Costa County; however, we believe that these differences, if any, are not material and would not significantly change these reports. The following is a summary of expenditures by the Weedemann Ranch GHAD during the third quarter of the 2002/03 fiscal year—January 1, 2003 through March 31, 2003: FY 200212003 Third Quarter Expenses Annual Y T-D%of Category Expense Year-to-Date Program Total Budget Budget Major Repair Program $0.00 $0.00 $0.00 I Preventative Maintenance Program $6,839.14 $19,387.03 $30,000.00 64.6% Special Projects $6,519.50 $13,819.00 $15,000.00 92.1 i Administration $17,312.04 $37,927.72 $20,000.00 189.6% Total Expense $30,670.68 $71,133.75 $65,000.00 109.4% Expenses. Expenditures for the third quarter of the 2002/03 fiscal year for the Wiedemann Ranch GHAD totaled $30,670.68. Details regarding expenditures by category are discussed below and shown in detail in the attached spreadsheets. 1. Major Repair Program. No funds were budgeted and there were no expenses under the District's Major Repair program. Under the District's adopted Plan of Control (POC), the original developers of the Wiedemann Ranch and Henry Ranch portions of the District are responsible for actions related to the prevention and/or repair of landslides August 12, 2003 Page 2 and/or potential landslides within the boundaries of the District until the date specified in the PDC. With the exception of an initial unit of the Wiedemann Ranch development, the original developers continue to be responsible for any and all major repair activities within the District. The District assumed responsibility for an initial phase of the Wiedemann Ranch project in the fail of 2002. There are currently no landslides or landslide repair projects within this portion of the District. 2. Preventative Maintenance Program. Expenditures under the District's Preventative Maintenance and Operations (PM) program for this quarter accounted for $6,839.14 or 22.3%of the total expenditures during the third quarter of the 2002/2003 fiscal year. Expenditures under this portion of the budget during this past quarter included work by GBC related to the development of a Preventative Maintenance and Operations Plan for the District. In addition, expenditures under this budget category included charges from the District's Maintenance Contractor (Dover Construction) to clean out a clogged storm drain line under Debris Clean up/Minor repair subcategory. 3. Special Projects. Expenditures tracked under the Special Projects portion of the District's budget accounted for $6,519.50 or 21.3% of total expenditures during the third quarter of the 2002/03 fiscal year. The majority of these charges relate to work with William Lyon Homes (the original developer of the Henry Ranch portion of the District) on issues related to a habitat conservation area located to the rear of the Henry Ranch portion of the District — see discussion below under Administration. As noted in our last report, District staff and consultants continue to be concerned that the habitat conservation ponds installed are not functioning as designed. 4. Administration. Expenditures under the Administrative portion of the District's budget accounted for $17,312.04 or 56.4% of the District's expenditures for the third quarter of the 2002/03 fiscal year. The bulk of these expenditures relate to the "General Manager Function." For the most part, charges to this category include charges by GBC for overall administration of the District. Charges by GBC during this past quarter relate to the following two items: a. Reviewing and inventorying improvements within the Wiedemann Ranch portion of the district that is to be maintained by the District. District staff has been working with the original developer (Toll Brothers) to develop a "punch list" of minor deficiencies that will need to be corrected before the District can assume responsibility for maintenance. The developer has been cooperative in this effort and District staff anticipates all of the deficiencies will be corrected. As noted above, the District will seek reimbursement from the developer for a majority of the costs incurred in this effort. August 12, 2003 Page 3 b. As noted above, under Special Projects, District staff and legal counsel have been working with William Lyon Homes on a number of issues associated with access to and long-term maintenance of a wildlife habitat area associated with the original Henry Ranch development. Since the District will ultimately be responsible for maintenance of the habitat area (under the District's adopted Flan of Control), District staff has been working to address these issues with the developer (William. Lyon Homes, Inc.), their legal counsel, the City of San Ramon and concerned residents. All costs incurred by the District in dealing with these issues are the responsibility of the developer and the District will be seeking reimbursement. While expenditures in this category exceeded the District's initial budget estimates, District staff anticipates that most of the charges will ultimately be reimbursed by the original developers under the terms of the District's adopted Plan of Control. Also included under Administration are administrative support expenses incurred by the Contra Costa County Public Works Department in their role as liaison to the Board of Supervisors (sitting as the Board of Directors of the District). These expenses are reimbursable by the District under the provisions of a Joint Exercise Powers Agreement (JEPA) that was approved by the Board of Directors on January 21, 2003 (Resolution #2003/36). The Contra Costa County Public Works Department recently advised that the figures that they provided for inclusion in the Second Quarter understated their actual expenditures. Therefore the figures provided in this report somewhat overstate actual expenditures by Public Works during this past quarter. Significant portions of the Districts expenditures during this past quarter are the ultimate responsibility of the original developers — Toll Brothers (Wiedemann Ranch) and William Lyon Homes (Henry Ranch). Invoices are being developed and will be forwarded within the next few weeks. The annual expense report will include information on the amount of reimbursements invoiced and/or received. At the request of both developers, District staff is in the process of modifying its accounting and bookkeeping systems to facilitate segmenting expenses for the two portions of the District (Wiedemann Ranch and Henry Ranch). Effective with the expense report for the first quarter of the 2003/04 fiscal year, expense reports will segment income and expenditures for the Henry Ranch and Wiedemann Ranch portions of the District. If you have any questions or would like any additional information,please do not hesitate to call. WRG/nc G:\GrpData\spDist\Board Orders\2003\08-12-03 BO-(L)3rd Qtr Exp.Rep.(attach 1).doc Attachments Wiedemann Manch CHAD 2002/2003 Fiscal Year-3rd Quarter report January 1,2003 through March 31,2003 Administration-Expenses TOTAL Administration Legal Fees Special Counsel 2,448.25 Total Legal Fees 2,448.25 Office Expense Rent 9.15 Telephone 58.07 Total Office Expense 67.22 Outside Services Public Works Dept 4,097.22 Total Outside Services 4,097.22 Staffing/Admin Support Accounting/Bookkeeping 3,812.00 Education&Training 562.35 General Manager Function 6,308.50 Subscriptions,memberships 16.50 Total Staffing/Admin Support 10,699.35 Total Administration 17,312.04 Gray-Bowen and Company,Inc. See Wiedemann Ranch CHAD 3rd Quarter Report-FY 200212003 General Manager,Wiedemann Ranch CHAD Dated August 12,2003