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Home My WebLink AboutMINUTES - 06181996 - C9 TO: ` BOARD OF SUPERVISORS C'9 FROM: J. MICHAEL WALFORD, PUBLIC WORKS DIRECTOR / r DATE: JUNE 18, 1996 t SUBJECT: ACCEPT THE STATUS AND EXPENSE REPORT THROUGH THE THIRD QUARTER OF FISCAL YEAR 1995-96 BLACKHAWK GEOLOGIC HAZARD ABATEMENT DISTRICT, DANVILLE AREA. PROJECT NO. 4500-6X5147 Specific Request(s)or Recommendations)&Background&Justification I. Recommended Action: 1. ACCEPT the Blackhawk Geologic Hazard Abatement District (GHAD) Status and Expense Report through the third quarter of Fiscal Year 1995-96. 2. APPROVE the adjustment of the Fiscal Year 1995-96 budget to include expenses of repairs to numerous unanticipated landslides. 3. RECEIVE the report of the settlement of the Chinn and Wilson versus Blackhawk Corporation lawsuit. II. Financial Impact: There will be no impact to the County General Fund. III. Reasons for Recommendations and Background: 1. After the January rains, which followed last year's rains after a six-year drought, the GHAD was impacted by about a dozen landslides which needed repair during February, March and April. Three of these slides were threatening homes and several others also needed emergency attention. The budget line item for construction repairs has slightly exceeded (108%) of our annual budget. Unanticipated construction costs added significant costs in outside engineering consultation to design the repairs for these slides and other potential landslides. As a result, total costs through this quarter ($756,263.82) are approximately 97% of the total annual budget. C Continued on attachment: X Yes SIGNATURE: ' 77 RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON: U � 9 APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS UNANIMOUS (ABSENT ) AYES: NOES: ABSENT: ABSTAIN: SE:pe g:\EngSvc\SpDist\BO\BH GHAD 18.6 1 WOW Ow*that this le a true and correct an acion uko and entered on the m Copy Contact: Skip Epperly,(510)313-2253 Board of on the 8- .1nuEee Of the Orig.Div.: PW(Special Districts) cc: Auditor-Controller AMC Accounting PHIL eOra R.C fk of the board D. Nystrom,Nystrom Engineering �+ IAtdtthbtratW y Deputy BLACKHAWK GEOLOGIC HAZARD ABATEMENT DISTRICT STATUS AND EXPENSE REPORT JUNE 18, 1996 PAGE TWO III. Reasons for Recommendations and Background: (Continued) y 2. The requested adjustment, shown on the attached "Adjusted" Budget Report, dated May 17, page 1, involves the allocation of the originally anticipated "Reserve" fund contribution into the expense categories of "Repair & Maintenance, etc." and "Professional Engineering Consulting." There is a history of nine straight years of contributing to the "Reserve Fund," but at this time it is more prudent to budget that money for possible expenses for landslide repairs. In addition to the.requested reallocation of the proposed "Reserve" contribution, we have also recently reorganized our budget categories so that we may more accurately control and account for how the budget is spent. That reorganized budget separates the GHAD staff services in to six sub- categories of services and is attached as "Revised Budget Estimate" dated May 17, 1996, page 2. 3. Last fall, the GHAD was brought into a lawsuit through a cross-complaint in regard to earthwork and building damage due to an alleged landslide in the Silver Oaks area. The Court ordered mediation sessions from which a settlement agreement was reached by all parties. Our District's share of the settlement was a $20,000 contribution to an approximately $80,000 retaining wall, a $2,500 contribution to the costs of its design engineering and the supervision of its construction. These obligations will be included in next year's budget, so there are no additional costs to the District in Fiscal Year 1995-96. IV. Consequences of Negative Action: The quarterly report will not be accepted as required by original formation of the GHAD. BLACKHAWK GEOLOGIC HAZARD ABATEMENT DISTRICT BUDGET REPORT FY'95—'96 (Adjusted) May 17, 1996 ADJUSTED BUDGET BUDGET JULY'95-'96 ADJUSTMENTS JULY'95-'96 A. PROJECTED INCOME 1. Annual Revenue Via CSA M-23 $780,000.00 $780,000.00 2. Estimated Interest Earnings $90,000.00 $90,000.00 TOTAL INCOME $870,000.00 $870,000.00 B. PROJECTED EXPENSES 1. General Manager $76,000.00 $76,000.00 2. District Geologist and Assistant Geologist $87,000.00 $87,000.00 3. Support services(e.g.,office space,office equipment,office staff vehicles) $0.00 ` 4. a)Repair,Maintenance and Improvements(as per $380,000.00 $31,500.00 $411,500.00 approved Repair,Maintenance and Improvement Program) b)Construction Administration $70,000.00 $70,000.00 5. Legal,Accounting and Insurance $40,000.00 $40,000.00 6. Professional Soils&Geotechnical Consulting $75,500.00 $75,500.00 7. Professional Civil Engineering and Environmental Consulting $45,000.00 $55,000.00 $100,000.00 8. County Staff Services $10,000.00 $10,000.00 TOTAL EXPENSES $783,500.00 $86,500.00 $870,000.00 9. Reserve" $86,500.00 ($86,500.00) $0.00 TOTAL BUDGET $870,000.00 $0.00 $870,000.00 Included in items 1,2 and 4(b). Not including GHAD Reserve Savings Account. BLACKHAWK GEOLOGIC HAZARD ABATEMENT DISTRICT BUDGET ESTIMATE FY'95—'96 (Revised) May 17, 1996 BUDGET JULY'95-'96 A. PROJECTED INCOME 1. Annual Revenue Via CSA M-23 $780,000.00 2. Estimated Interest Earnings $W000.00 TOTAL INCOME: $870,000.00 B. PROJECTED EXPENSES 1. Construction Costs a. Repair,Maintenance&Improvements(as per approved $411,500.00 Repair,Maintenance&Improvement Program) b. Construction Supervision District Staff $100,000.00 c. Contract Administration District Staff $35,000.00 2. Professional Soils and Geotechnical Costs a. District Staff $20,000.00 b. Outside Consulting $75,500.00 3. Professional Civil Engineering Costs $100,000.00 4. Legal Costs a. Outside Consulting and Representation $40,000.00 b. District Staff ' $28,000.00 5. Accounting Costs District Staff $40,000.00 6. Miscellaneous Administrative Costs (HOA,FEMA, PR,etc.) District Staff $10,000.00 7. County Staff Service Costs $10,000.00 TOTAL EXPENSES $870,000.00 Reserve'* $0.00 TOTAL BUDGET $870,000.00 ' DISTRICT STAFF SHALL INCLUDE: General Manager $76,000.00 District Geologist $87,000.00 Construction Administrator $70,000.00 " Not including GHAD reserve savings account. -z _ GORDON, DeFRAGA, WATROUS & PEZZAGLIA A Law Corporation ATTORNEY-CLIENT COMMUNICATION Allan DeFraga CLOSED SESSION LEGAL RECOMMENDATIONS Gregory D.Rueb Thomas A. Watrous James A.Pezzaglia CONFIDENTIAL George R.Gordon Timothy J. Ryan (1910-1993) Peter D. LangleyMailing Address: Richard S.Bruno MEMORANDUM P.O.Box 630 Bruce C.Paltenyhi b4—fo^Q, rA 94553 TO: BOARD OF SUPERVISORS, COUNTY ADMINISTRATOR FROM: TIMOTHY J. RYAN, ES(� DATE: April 4, 1996, �� RE: Wilson, et al. v. Blackhawk Geologic Hazard Abatement District TRIAL DATE: June 17, 1996 RECOMMENDATION: Authorize settlement contribution of $22,500 toward construction of retaining wall. FACTUAL BACKGROUND: This is a property damage case involving distress to two residential townhome units in the Silver Oak Townhome development in Blackhawk. The plaintiffs have sued the lot developer, Blackhawk Corporation; townhome developer, DeBene, Inc.; and cement contractor, Conco. The Blackhawk Geologic Hazard Abatement District (District) has also been brought into the case. The claim against the District is twofold: first, that a landslide exists on the slope behind the plaintiffs' units,which is serving as a cause of the distress to their residences; second, remedial work performed,in part,by the District at these units several years ago was done negligently and is now serving as a cause of the distress. The District was created in 1986 for the purpose of preventing and repairing landslides in Blackhawk. In 1992, the District investigated this site, and cooperated with the Blackhawk Corporation in installing a restraining wall at the rear of a neighboring unit. In addition, Blackhawk Corporation performed foundation repairs to the plaintiffs' units at that time. It is claimed that this work was done negligently. EXPOSURE: Assuming liability, the plaintiffs could recover as much as $300,000, including claimed costs associated with a proposed retaining wall and foundation work. A tentative settlement was recently reached whereby Blackhawk Corporation has agreed to purchase the plaintiffs' units and resell them after certain remedial work has been done. The settlement contributions from the defendants are as follows: Blackhawk Corporation - $580,000; DeBene, Inc. - $45,000; Conco - $10,000. The Blackhawk Corporation has also agreed to fund the installation of a large retaining wall behind the plaintiffs' units in order to prevent any further lateral movement attributable to either soil creep or landslide activity. The estimated cost of this wall is $100,000+. The District has agreed to contribute $20,000 toward construction of the wall and $2,500 toward further soil and structural engineering work on the project, for a total contribution of$22,500. The District will also assume responsibility for future maintenance of the wall as part of its maintenance responsibilities for other similar landslide retaining walls within Blackhawk. ATTORNEY CLIENT PRIVILEGED MATERIAL 611 Las Juntas Street, P. O. Box 630, Martinez, California 94553 •- Telephone (510) 228-1400 Facsimile (510) 228-3644 BLACKHAWK GEOLOGIC HAZARD ABATEMENT DISTRICT li BUDGET REPORT FY '95-'96 May 1,1996 BUDGET ESTIMATED EXPENSES JULY'95-'96 JULY'95-MAR'96 A. PROJECTED INCOME 1. Annual Revenue Via CSA M-23 $780,000.00 2. Estimated Interest Earnings $90,000.00 TOTAL INCOME: $870,000.00 B. PROJECTED EXPENSES 1. Construction Costs a. Repair,Maintenance&Improvements(as per approved $380,000.00 $386,802.47 Repair,Maintenance&Improvement Program) b. Construction Supervision District Staff $100,000.00 $81,087.00 c. Contract Administration District Staff $35,000.00 $20,571.00 2. Professional Soils and Geotechnical Costs a. District Staff $20,000.00 $23,248.00 b. Outside Consulting $75,500.00 $62,360.55 3. Professional Civil Engineering Costs $45,000.00 $92,942.28 4. Legal Costs a. Outside Consulting and Representation $40,000.00 $32,098.52 b. District Staff $28,000.00 $21,477.00 5. Accounting Costs District Staff ' $40,000.00 $27,732.00 6. Miscellaneous Administrative Costs (HOA,FEMA, PR,etc.) District Staff $10,000.00 $7,945.00 7. County Staff Service Costs $10.000.00 $0.00 TOTAL EXPENSES $783,500.00 $756,263.82 Reserve $86,500.00 TOTAL BUDGET $870,000.00 ' DISTRICT STAFF SUMMARY General Manager $76,000.00 District Geologist $87,000.00 Construction Administrator $70,000.00 *' Not including GHAD reserve savings account. BLACKHAWK GEOLOGIC HAZARD ABATEMENT DISTRICT REPAIR AND IMPROVEMENT PROJECTS 1995-1996 FISCAL YEAR - Third Quarter Totals D� Est. Budget Actual Cost Category (FY'95/'96) (July-Mar.) Slope Stabilization 1. Corrective Grading $ 74,000.00 $ 155,939.31 2. Revegetation 10,000.00 6,207.30 3. Slope Erosion Protection 20,000.00 48,152.65 4. Retaining or Pin Walls 35,000.00 14,909.84 Surface Drainage Improvements 5. Maint. B-58 Drain Syst. 19,000.00 19,152.42 6. Const. B-58 Drain. Syst. 26,000.00 9,638.65 7, Storm Drain Maintenance 21,000.00 27,007.16 8. Erosion/Runoff Cont. Devices 45,000.00 6,801.42 Subsurface Drainage 9. Subdrain Insp. and Maint. 17,000.00 7,461.27 10. Horiz. Drain Insp. and Maint. 11,000.00 1,460.96 11. Drilling Horiz. Drains 60,000.00 47,120.64 Repair of Existing Improvements 12. Insp. and Repair of Drain Struct. 12,500.00 0.00 13. Other Construction Projects 7,000.00 42.950.85 TOTAL $ 357,500.00 $ 386,802.47 108% l BLACKHAWK GEOLOGIC HAZARD ABATEMENT DISTRICT BUDGET REPORT FY'95—'96 (Adjusted) May 16, 1996 ADJUSTED BUDGET BUDGET JULY'95-'96 ADJUSTMENTS JULY'95-'96 A. PROJECTED INCOME 1. Annual Revenue Via CSA M-23 $780,000.00 $780,000.00 2. Estimated Interest Earnings $90,000.00 $90.000.00 TOTAL INCOME $870,000.00 $870,000.00 B. PROJECTED EXPENSES 1. General Manager $41,000.00 $35,000.00 $76,000.00 2. District Geologist and Assistant Geologist $122,000.00 ($35,000.00) $87,000.00 3. Support services(e.g.,office space,office equipment,office staff vehicles) $0.00 ` 4. a)Repair,Maintenance and Improvements(as per $357,500.00 $22,500.00 $380,000.00 approved Repair,Maintenance and Improvement Program) b)Construction Administration $70,000.00 $70,000.00 5. Legal,Accounting and Insurance $40,000.00 $40,000.00 6. Professional Soils&Geotechnical Consulting $98,000.00 ($22,500.00) $75,500.00 7. Professional Civil Engineering and Environmental Consulting $45,000.00 $45,000.00 8. County Staff Services $10,000.00 $10,000.00 TOTAL EXPENSES $783,500.00 $0.00 $783,500.00 9. Reserve" $86,500.00 $86,500.00 TOTAL BUDGET $870,000.00 $0.00 $870,000.00 • Included in items 1,2 and 4(b). " Not including GHAD Reserve Savings Account. BLACKHAWK GEOLOGIC HAZARD ABATEMENT DISTRICT ogBUDGET ESTIMATE FY'95-'96 (Revised) May 16, 1996 BUDGET JULY'95-'96 A. PROJECTED INCOME 1. Annual Revenue Via CSA M-23 $780,000.00 2. Estimated Interest Earnings $90,000.00 TOTAL INCOME: $870,000.00 B. PROJECTED EXPENSES 1. Construction Costs a. Repair,Maintenance&Improvements(as per approved $380,000.00 Repair,Maintenance&Improvement Program) b. Construction Supervision District Staff $100,000.00 c. Contract Administration District Staff $35,000.00 2. Professional Soils and Geotechnical Costs a. District Staff $20,000.00 b. Outside Consulting $75,500.00 3. Professional Civil Engineering Costs $45,000.00 4. Legal Costs a. Outside Consulting and Representation $40,000.00 b. District Staff ` $28,000.00 5. Accounting Costs District Staff $40,000.00 6. Miscellaneous Administrative Costs (HOA, FEMA,PR,etc.) District Staff ` $10,000.00 7. County Staff Service Costs $10,000.00 TOTAL EXPENSES $783,500.00 Reserve*` $86,500.00 TOTAL BUDGET $870,000.00 DISTRICT STAFF SUMMARY General Manager $76,000.00 District Geologist $87,000.00 Construction Administrator $70,000.00 Not including GHAD reserve savings account. -z -