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HomeMy WebLinkAboutMINUTES - 06032014 - C.35RECOMMENDATION(S): ADOPT Wiedemann Ranch Geologic Hazard Abatement District (GHAD) Resolution No. 2014/01 adopting the GHAD budget for 2014/2015 fiscal year and updating GHAD Manager payment limit under Consulting Services Agreement, as recommended by the GHAD Attorney and General Manager. FISCAL IMPACT: The GHAD is funded 100% through assessments levied on properties within the GHAD. Therefore, there is no impact on the County General Fund. BACKGROUND: On September 1, 1998, the Contra Costa County Board of Supervisors adopted Resolution No. 98/438 approving the formation of the Wiedemann Ranch Geologic Hazard Abatement District (GHAD) and appointed itself to serve as the GHAD Board of Directors. The GHAD Board is requested to adopt budgets for the GHAD operations each fiscal year. The GHAD Board is being requested to adopt the fiscal year budget for 2014/2015 as prepared by the GHAD General Manager, ENGEO, Inc., which is attached to Resolution No. 2014/01. In addition, the GHAD Board is being requested to update the GHAD General Manager payment limits under the existing Consulting Services Agreement as required by that Agreement. The budget attached to Resolution No. 2014/01 identifies that limit at $95,600. CONSEQUENCE OF NEGATIVE ACTION: The GHAD will not be able to continue operation starting July 1, 2014 if the budget is not approved. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/03/2014 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Anagha Dandekar Clifford 510.834.1928 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: June 3, 2014 David Twa, County Administrator and Clerk of the Board of Supervisors By: Stacey M. Boyd, Deputy cc: C. 35 To:Wiedemann Ranch GHAD Board of Directors From:Patricia E. Curtin, GHAD Attorney and General Manager Date:June 3, 2014 Contra Costa County Subject:Wiedemann Ranch GHAD Resolution No. 2014/01 ATTACHMENTS Wiedemann Ranch Resolution No 2014/01 Wiedemann Ranch Exhibit A WIEDEMANN RANCH GEOLOGIC HAZARD ABATEMENT DISTRICT PROGRAM BUDGET FOR FISCAL YEAR 2014/2015 2010 Crow Canyon Place, Suite 250  San Ramon, CA 94583  (925) 866-9000  Fax (888) 279-2698 www.engeo.com May 20, 2014 Wiedemann Ranch GHAD Board of Directors Wiedemann Ranch Geologic Hazard Abatement District 651 Pine St. Room 107 Martinez, CA 94553 Subject: Wiedemann Ranch Geologic Hazard Abatement District Contra Costa County, California PROGRAM BUDGET FOR FISCAL YEAR 2014/2015 Dear Board Members: Attached is the program budget for the Wiedemann Ranch Geologic Hazard Abatement District (GHAD) for the Fiscal Year 2014/2015. The program budget as proposed is $187,883. The budget expenses break down into the following approximate percentages of the total receivables.  Major Repair ................................................................. 0 percent  Preventive Maintenance and Operations .................... 31 percent  Special Projects ............................................................. 3 percent  Administration and Accounting .................................... 7 percent  Additional - Outside Professional Services .................. 5 percent The budget anticipates a contribution of approximately $224,000 (54% of total receivables) to the reserve fund, which is estimated to reach approximately $2,985,000 on June 30, 2015. A summary of the expenses is shown on Table I followed by a brief description of each budget item on the following pages. If you have any questions regarding the contents of this letter, please contact us. Sincerely, Wiedemann Ranch Geologic Hazard Abatement District ENGEO Incorporated, General Manager ENGEO Project No. 3586.002.014 Eric Harrell Uri Eliahu eh/ue/ag Wiedemann Ranch GHAD Board of Directors 3586.002.014 Wiedemann Ranch Geologic Hazard Abatement District May 20, 2014 BUDGET FOR FISCAL YEAR 2014/2015 Page 1 Wiedemann Ranch Geologic Hazard Abatement District Program Budget Fiscal Year 2014/2015 The following budget summarizes the anticipated expenditures for fiscal year 2014/2015, for the Wiedemann Ranch Geologic Hazard Abatement District, which currently includes the Norris Canyon Estates and Henry Ranch developments. The fiscal year for the Wiedemann Ranch GHAD begins on July 1. The budget is divided into four categories including Major Repair, Preventive Maintenance and Operations, Special Projects, and Administration and Accounting. As needed, the GHAD Manager may reallocate funds without additional Board approval. In general, the budget amounts listed are based on the Engineer’s Report approved by the Wiedemann Ranch GHAD Board of Directors in 2001. The budget amounts have been inflation adjusted to provide the estimates. The current Program Budget projects that at the beginning of the 2014/2015 fiscal year, the cumulative reserve will be about $2,760,000 and about $2,985,000 at the end of the 2014/2015 fiscal year. At $2,760,000, the cumulative reserve will be about $762,000 or 45% above the 2001 budget estimate for the end of the 2013/2014 fiscal year. To allow for an accurate comparison between the 2001 budget and the estimated cumulative reserve at the end of the 2013/2014 fiscal year, we added the estimated cost of a major repair to the 2001 budget. As shown in the 2001 budget, a major repair of approximately $1,296,000 was shown for the 2012/2013 FY and this event has not occurred. We attribute the additional reserve accumulation to a number of factors including: (1) The Wiedemann Ranch GHAD has acquired monitoring and maintenance responsibilities for all of Henry Ranch, Subdivision 7578 and portions of Subdivisions 7575, 7996, and 7998, but does not yet have maintenance and monitoring responsibilities for the remainder of the Norris Canyon Estates development, (2) five of the past eight winters have had below-average rainfall; therefore, there has been a reduced level of slope instability and erosion, (3) a large-scale repair (estimated at $1,000,000 in 2001 dollars every 10 years) has not been necessary within the GHAD-maintained areas and, (4) the budgets submitted and expenditures by the GHAD manager reflect the lower level of activity due to weather conditions and limited geographic responsibilities, thus allowing a higher percentage of the GHAD revenues to be applied to the reserve portion of the budget, while maintaining an appropriate monitoring and maintenance program. It should be noted that the National Oceanographic and Atmospheric Administration currently predicts a greater than 65% probability that an El Nino will develop which can result in higher intensity rainfall events, greater total rainfall, and therefore the possibility of increased GHAD hazard abatement activity during the upcoming winter seasons. The reserve portion of the budget allows for the funding toward these unpredictable, but potentially costly mitigation events. Wiedemann Ranch GHAD Board of Directors 3586.002.014 Wiedemann Ranch Geologic Hazard Abatement District May 20, 2014 BUDGET FOR FISCAL YEAR 2014/2015 Page 2 Special Condition 1(e) of the approved Consulting Services Agreement provides that a payment limit shall be determined each fiscal year by GHAD Board by resolution. For fiscal year 2014/2015 (July 1, 2014 through June 30, 2015), the payment limit is set at $95,600. The tasks included within the payment limit may include site monitoring events, transfer of monitoring and maintenance responsibilities, oversight of maintenance and repair projects, administration, accounting, assessment roll updates, and budget preparation. MAJOR REPAIR Included within the major repair category are those repair or improvement projects that are intermittent and, by their nature, do not fit within a scheduled maintenance program. Minor slope repair and erosion control items are generally funded within the Preventive Maintenance and Operations category. For the purposes of this budget, we define major repairs as those estimated at over $50,000. PREVENTIVE MAINTENANCE AND OPERATIONS Preventive maintenance and operations include professional services, slope stabilization services, and erosion protection within the District. Professional services include site monitoring events as scheduled in the GHAD Plan of Control. Slope stabilization and erosion protection responsibilities include the open space slopes and creek channels. GHAD-maintained improvements generally include the District’s slopes, concrete-lined drainage ditches, retaining walls, subsurface drainage facilities, monitoring instruments including settlement monitoring devices, storm drain facilities, and the creek channels. SPECIAL PROJECTS The Special Projects category allows the GHAD to budget for projects beneficial to the GHAD that are not included in one of the other three categories. ADMINISTRATION AND ACCOUNTING Administrative expenses include the General Manager duties related to the operation and administration of the GHAD. These include clerical and accounting functions. A summary of the proposed Fiscal Year 2014/2015 Budget is shown in Table I. TABLE I Summary of Proposed Fiscal Year 2014/2015 Budget Budget Item Label Budget Amount Percentage of Total Receivables Major Repairs Total $0 0% Wiedemann Ranch GHAD Board of Directors 3586.002.014 Wiedemann Ranch Geologic Hazard Abatement District May 20, 2014 BUDGET FOR FISCAL YEAR 2014/2015 Page 3 Budget Item Label Budget Amount Percentage of Total Receivables Preventive Maintenance and Operations Professional Services Scheduled Monitoring Events $18,000 Heavy Rainfall Monitoring Events $6,000 Transfer within Subdivisions 7575, 7996 and 7998 $15,000 Transfer within Subdivision 7575, 7996 and 7998 – Outside Services $10,000 Subtotal $49,000 Maintenance and Operations Concrete-Lined Drainage Ditches $8,000 Erosion Control including Creek Channels $45,000 Slope Stabilization $25,000 Subtotal $78,000 Preventive Maintenance and Operations Total $127,000 31% Special Projects Reserve Study $4,000 GPS/GIS Development $5,000 Web Site Maintenance and Updates $3,000 Total $12,000 3% Administration and Accounting General Manager Administration and Accounting $24,000 Annual Report and Budget Preparation $4,000 Subtotal $28,000 7% Outside Professional Services - Nontechnical Assessment Roll and Levy Update Preparation $4,000 Legal Counsel $7,000 Wiedemann Ranch GHAD Treasurer $7,200 Contra Costa County Assessor’s Fees $653 California Association of GHADs Membership $337 Insurance $500 Subtotal $19,690 5% Administration and Accounting Total $47,690 Wiedemann Ranch GHAD Board of Directors 3586.002.014 Wiedemann Ranch Geologic Hazard Abatement District May 20, 2014 BUDGET FOR FISCAL YEAR 2014/2015 Page 4 Budget Item Label Budget Amount Percentage of Total Receivables Proposed Expenditures Total $186,690 46% Estimated Receivables Estimated Balance (June 30, 2014) $2,761,553 2014/2015 Assessment Amount (Estimated) $380,920 Estimated Interest on Investments $29,520 Estimated Total Available Funds $3,171,993 Estimated Expenditures Major Projects $0 Preventive Maintenance and Operations $127,000 Special Projects $12,000 Administration, Accounting and Legal $47,690 Estimated Expenditures Total $186,690 Estimated Reserve/Fund Balance on June 30, 2015 $2,985,303 MAJOR REPAIRS PREVENTIVE MAINTENANCE AND OPERATIONS There are currently no ongoing major repair projects, and none are anticipated for the 2014/2015 fiscal year within the GHAD-maintained areas of the Wiedemann Ranch GHAD. Minor slope repair and erosion control items are generally funded within the Preventive Maintenance and Operations category. While no major repairs are ongoing at this time, by their nature, major repairs such as landslides are unpredictable and could occur during the 2014/2015 fiscal year. The reserve portion of the budget allows for funding toward these unpredictable events. Professional Services Scheduled Monitoring Events As provided in the Plan of Control, we have three scheduled monitoring events within the GHAD during each calendar year. Estimated budget $18,000 Wiedemann Ranch GHAD Board of Directors 3586.002.014 Wiedemann Ranch Geologic Hazard Abatement District May 20, 2014 BUDGET FOR FISCAL YEAR 2014/2015 Page 5 Heavy Rainfall Events We have budgeted for two heavy rainfall-monitoring events during the 2014/2015 winter season. Estimated budget $6,000 Transfer of Parcels within Subdivisions 7575, 7996 or 7998 to the GHAD In FY 2013/2014 the remainder of parcels within the Norris Canyon Estates development, not previously accepted by the Wiedemann Ranch GHAD were offered to the GHAD by the project developers. As provided in the Plan of Control, part of the ongoing transfer process is an inspection of the GHAD-maintained improvements. We have provided a budget estimate for the ongoing transfer process activities within the GHAD. Estimated budget $15,000 Transfer of Parcels within Subdivisions 7575, 7996 or 7998 to the GHAD (Outside Professional Services) As part of the ongoing transfer process, the GHAD has contracted with Darwin Myers of Darwin Myers Associates to provide for third-party review of the GHAD-maintained improvements prior to transfer. We have provided a budget estimate for the ongoing transfer process during the 2014/2015 fiscal year. Estimated budget $10,000 Maintenance and Operations Concrete-Lined Drainage Ditches This budget item is to provide for the removal of vegetation and cleaning of concrete-lined drainage ditches within the Henry Ranch and Norris Canyon Estates developments (Subdivision 7578). Currently, this includes approximately 11,500 lineal feet of ditch cleaning. These services have been contracted through the 2013/2014 fiscal year. Estimated budget $8,000 Erosion Control Anticipated tasks under this budget item include the repair of slope or creek erosion and removal of debris from creek channel culverts. Cleaning and vegetation management of the Henry Ranch Detention Basin will be a task within this budget item. Estimated budget $45,000 Slope Stabilization This is for minor repairs, including slope instability or erosion, which may occur during the 2014/2015 fiscal year. Purchase of emergency stabilization supplies will be included within this budget item. Estimated budget $25,000 Wiedemann Ranch GHAD Board of Directors 3586.002.014 Wiedemann Ranch Geologic Hazard Abatement District May 20, 2014 BUDGET FOR FISCAL YEAR 2014/2015 Page 6 SPECIAL PROJECTS Global Positioning System (GPS)/Geographic Information System (GIS) Development To provide for a more efficient system to capture, store, update, manipulate, analyze, and display information pertaining to GHAD assets (including, but not limited to, subdrains, landslides, drainage facilities, cuts, fills, or slopes), the GHAD has provided a budget item to continue development of a GIS database. The database would facilitate and streamline the tracking of location, maintenance, and repair activities pertaining to GHAD assets and automate the communication of this information to affected parties. We anticipate this first phase of GIS database development would include transition of available and pertinent information to an electronic format suitable for GIS deployment, and as necessary, field-verification with GPS surveys. Estimated budget $5,000 Web Site Maintenance and Updates To allow for greater access to information about the Wiedemann Ranch GHAD, the GHAD has provided a budget item to update and maintain the existing website launched during the 2013/2014 fiscal year. Estimated budget $3,000 Reserve Study During fiscal year 2014/15, a reserve study will be developed based on the levels of expenditure expected to address future maintenance responsibilities, and accumulation the appropriate long-term reserves to address larger geologic events. Estimated budget $4,000 ADMINISTRATION AND ACCOUNTING Administration Administrative expenses include the General Manager duties related to the operation and administration of the GHAD. The budget estimate for the accounting and administrative services are derived from the original GHAD budget used to prepare the GHAD’s Engineer’s Report. Estimated budget $24,000 Annual Report and Budget Preparation This budget provides for the preparation of the annual report and budget. The budget estimate for the accounting and administrative services are derived from the original GHAD budget used to prepare the GHAD’s Engineer’s Report. Estimated budget $4,000 Wiedemann Ranch GHAD Board of Directors 3586.002.014 Wiedemann Ranch Geologic Hazard Abatement District May 20, 2014 BUDGET FOR FISCAL YEAR 2014/2015 Page 7 Assessment Roll and Levy Update This budget item allows for preparation of the assessment roll for the District and the updated levy based on the Consumer Price Index adjustment. Estimated budget $4,000 Legal Counsel This budget item allows the GHAD to secure legal counsel for the District as provided under Resolution 2008/01 adopted on November 18, 2008. The duties of the legal counsel may include but not be limited to preparation or review of contracts, grant deeds, right of entry and board resolutions. Estimated budget $7,000 Treasurer This budget item accounts for fees related to investment of the GHAD reserve funds and processing of accounts payable. This budget item allows the GHAD to hire a treasurer for the District as provided under Resolution 2008/01 adopted on November 18, 2008. Estimated cost $7,200 Contra County Assessor’s Fees This budget item allows for fees from the Contra County Assessor’s Office. Estimated cost $653 Association Membership The GHAD maintains membership in the California Association of GHADs. Estimated cost $337 Insurance The GHAD maintains general liability insurance for open space areas within the District. Estimated cost $500