Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
MINUTES - 03262002 - C26
TO: BOARD OF SUPERVISORS AS THE BOARD OF DIRECTORS,BLACKHAWK GEOLOGICAL HAZARD ABATEMENT DISTRICT DID FROM: MAURICE SHIU, PUBLIC WORKS DIRECTOR DATE: March 26,2002 SUBJECT: ACCEPT and APPROVE the FY 2001/2002 Program Budget for the Blackhawk Geological Hazard Abatement District, Danville area. (District III) (W05147) SPECIFIC REQUEST 7)OR RECOMMENDATION;(S)&BACKGROUND ANIS JUSTIFICATION 1. Recommended Actions: ACCEPTthe attached Proposed FY 2001/2002 Program Budget for the Blackhawk Geological Hazard Abatement District (GHAD) and AUTHORIZE the General Manager to Work with the District Treasurer and evaluate options related to the financing of GHAD operations in the future. II. Financial Impact No impact on the County General Fund. The Blackhawk GRAD is funded through revenues generated by County Service Area M-23. Continued onA#tachment:X SIGNATURE.'' COMMENDATION OF COUNTY ADMINISTRATOR _RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURES): ACTION OF BO ON March' 26, 2002 APPROVED AS RECOMMENDED IUL OTHER VOTE OF SUPERVISORS XX UNANIMOUS(ABSENT IV 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 on the date shown. ATTESTED: March 26 2002 sir sr JOHN SWEETEN,Clerk of the Board of Supervisors and G 1GipData\SpDist\Bgard Ordersi20021D3 Mazch\03-19-02-BO-Blackhawk GNAD:doc Orig.Div: Public Works(Special Disttricts):.. County Administrator Contact: Skip Epperly(313-2253) CC.• County Administrator Accounting Auditor-Controtler William R Gray $y----- � Deputy: SUBJECT: ACCEPT and APPROVE the FY 2001/2002 Program Budget for the Blackhawk Geological Hazard Abatement District, Danville area. (District 111)(WO5147) DATE: March 26, 2002 PAGE: 2 III. Reasons for Recommendation and Backeroand: The Contra Costa Board of Supervisorsformed the Blackhawk Geologic Hazard Abatement District (GHAD) in1986(Resolution 86/210)pursuant to the provisions of Section 26550 of the Public Resources Code. The Board of Supervisors serves as the Board of Directors of the GRAD. The GHAD receives it's funding through a transfer of a portion of County Service Area M-23 revenues under a Joint Exercise of Powers Agreement between the County and the'GHAD (Resolution No. 86/211). The Board of Directors appointed William R. Gray and Company,Inc.,Walnut Creek,California,to serve as General Manager of the District, effective April 1, 1998. William R. Gray and Company developed the attached program budget for the Blackhawk GHAD for FY 2001/2002. On August 7,2001,the Board of Supervisors, sitting as the Board of Directors of the Blackhawk GHAD, approved a line item budget for the District. An initial draft of the proposed 2001/2002 Program Budget was developed and circulated to interested parties in late September of 2001. GHAD staff subsequently became aware of a large landslide in the hillside above Conifer Terrace. Since the project is large and the repair will significantly impact GHAD reserves, the General Manager updated the proposed program budget to 1) reflect the Sequoia/Conifer Repair project and 2)'to reduce and/or defer previously anticipated expenditures in the Administrative and Preventative Maintenance portions of the budget. The proposed budget''indicates that the balance in the District's reserves account will be reduced to approximately$640,000 on June 30,2002. The General Manager is recommending that he be authorized to>> work with the District's Treasurer (the County Auditor-Controller) to identify options with respect to borrowing should that become necessary. The General Manager will advise the Board of Directors as to his findings and recommendations on this matter by March 31, 2002. The attached program budget details the various programs and activities of the CHAD. Also attached is supplemental information relating to the proposed program budget. Both are provided for the information of the Board of Directors and others. Copies of the proposed draft budget were circulated and opportunities to review it were provided to interested and concerned parties. IV. Consequences of Nea.tive Action; The GHAD would not have an approved program budget. Proposed FY 2001/2002 Program Budget Blackhawk Geologic Hazard Abatement District (GHAD) Prepared by William R. Gray and Company, Inc. GeneralManager for the Blackhawk GRAD Board of Directors On April 22, 1986, the Contra Costa County Board of Supervisors adopted three resolutions which resulted in the formation and funding of the Blackhawk Geologic Hazard'Abatement District(CHAD). Resolution No. 86/209 provided for the addition of geologic hazard«abatement extended services to County Service Area M-23'(Blackhawk`area). Resolution No. 86/210 approved formation of the Blackhawk GHAD pursuant to the provisions of Section 26550 of the Public Resources Code and appointed the Board of Supervisors to act as the Board of Directors of the GHAD. Resolution No. 86/211 approved'a Joint Exercise of Powers Agreement (JEPA) between the County and the CHAD,to among other things,provide for the funding of the GHAD by the transfer of a portion of CSA-M-23 revenues. On April 28, 1998, the Board of Directors appointed William R. Gray and Company, Inc., a California Corporation, as General Manager, effective April 1, 1998. William R. Gray and Company developed the attached program budget for the Blackhawk GHAD for FY 2001/2002. Note—this FY 2001102 Program Budget has been updated from prior drafts to reflect the fact that the District will be repairing a major landslide that was not anticipated when the original draft of the FY 200112002 budget was developed (SequoiafConifer Landslide repair project). Those elements of the budget that have significantly changed are shown in italics. William R.Gray and Company, Inc. Page 3 of 15 March 19,2002 General Manager Blackhawk Geological Hazard Abatement District Budget FY 2001/2002 Sources And Uses of Funds Table Estimated Beginning Fund Balance-.Tuly 1,2001 $1,996,527.71 Sources of Funds Contributions from M-23 $1,250,000.00 Interest on Investments $130,000.00 Other income $25,000.00 Total Sources of Funds $1,405,000.00 Total Available Funds $3,401,527.71 Uses of Funds Major Repair Program {Acct Code 23191 $2,325,000.00 Preventative Maintenance Program {Acct Code 22821 $200,040.00 Special Projects {Acct Code 24791 $88,000.00 Administration and PW {Acct Code 23 101 & {Acct Code 5011} $147,0W00 Total Uses of Funds $2,760,000.00 Estimated Reserve Available/Ending Fund Balance June 30,2002 $641,527.71 Projected Revenues - FY 2001/2002 Contra Costa County Service Area M-23. Contra Costa County formed County Service Area M-23(CSA M-23) in June of 1977 (Resolution No. 77/477)to perform a variety of maintenance related functions. Pursuant to its authority under the County Service Area Law, the County levied an ad valorem tax for CSA M-23 purposes based upon the assessed value of all real property located within CSA M-23. Revenues received from these levies are credited in the County treasury to the account of CSA M-23. In April of 1986,the Board extended the definition of maintenance services to be performed by M-23 to include geologic hazard abatement(Resolution No. 86/209). Also in April of 1986, the Board approved'a Joint Exercise of Powers Agreement(JEPA)between the GHAD and the County(Resolution No. 86/211), under which the County agreed to fund GRAD operations through a'transfer of so-called"surplus CSA M-23 revenues." As defined in the JEPA, "surplus revenues"include all CSA M-23 revenues after deductions for 1) drainage maintenance extended services within CSA M-23 (as defined) and 2) street lighting extended services within CSA M-23 (as defined). All remaining M-23 revenues are"to be transferred to the CHAD and deposited in such account or accounts as'[the Board of Directors of the] GHAD may specify-..." William R.Gray and Company, Inc. Page 4 of 15 March 19 2002 General Manager The Board of Directors of the GHAD (Board of Supervisors)''appointed the County Treasurer to act as the Treasurer of the Blackhawk GHAD (Resolution No. 86/3,69). The Contra Costa County Tax Collector estimates total CSA M-23 revenues for FY 2001/2002 to be $1,278,000.00. After deducting for Flood Control (drainage maintenance extended services), surplus CSA M-23 revenues projected to be available for GRAD operations for FY 2001/2002 are estimated at$1,250,000.00. Interest on Investments. As indicated above, the Treasurer deposits GRAD funds in a separate interest bearing GHAD account. Pursuant to the terms of the JEPA approved by Board Resolution. 86/21.1, all interest earned on funds is credited and retained by the GHAD and can not be deemed at any time to constitute funds credited to the treasury of Contra Costa County. The County Treasurer has advised that the estimated balance in the GHAD's reserve account, as of June 30, 2001, is at$1,996,527.71 (before any transfer of funds to cover projected FY 01/02 expenses) Revenue from interest on investments for FY 01/02 is estimated at $130,000.00. Other Income. From time to time,the Blackhawk GHAD enters into agreements with others for the completion of projects. In the FY 2001/2002 fiscal year,the GRAD anticipates at least one joint project under which a resident will make a$25,000.00 contribution toward the completion of a project. Therefore, other income is estimated at$25,000.00 for FY 2001/2002. Transfer to/froth Reserves. The balance in the CHAD reserve account, as of June 30,2001, was $1,996,527;71. As projected expenses in the proposed program budget will exceed anticipated revenues, funds will need to be transferred'from Reserves during FY 2001/2002. William R.Gray and Company, Inc. Page 5 of 15 March 19,2002 General Manager Blackhawk Geological Hazard Abatement District Proposed Budget Summary— FY 2001/2002' Major Repair Program Sequoial Conifer Monitoring Program 165,000.00 Sequoial Conifer Repair Project 1,900,000.00 Blackhawk Plaza 15,000.00 Kingswood Place II 55,000.00 Blackhawk Meadow Dr. II(joint project w/Property Owner) 90,000,00 Chestnut Place II 35,000.00 Eagle Ridge Drive 15,000.00 Allowance for new FY 01/02 projects 50,000.00 Total Major Repair Program $2,325,1100.00 84.3% Preventative Maintenance and Operation Program Administration 40,000.00 Operations program 15,000.00 Preventative Maintenance 145,000.00 Total Preventative Maintenance& Operation Program $200,000.00 7.2°l0 Special.Projects GHAD Association 1,500.00 Develop and Implement GIS'System 50,000.00 Management Audit and Reserve Study 25,500.00 Develop Standard Plans, Specs 1,500.00 Update Accounting&'Bookkeeping System 3,500.00 Review and Update Plan of Control "6,000.00 Total Special Projects $8&000. 3.2% dministratio Legal Fees(County Counsel/>outside legal counsel) 24,000.00 Outside Services(Public Works,etc.) 23,400.00 Staffing/Administrative Support/Office Expense 100,000.00 Total Administration $147,000.00 5.3% TOTAL PROPOSED BUDGET $2,760,000.00 Projected Expenses - FY 2001/2002 Major Repair Program. As a result of the El Nino rains of 1998, the Blackhawk G-HAD was faced with significant storm related landslide and landslide related damages. Over$3.6 million has been expended over the past two construction seasons to repair the El'Nino landslides and a majority of the projects have been completed. The largest of the remaining El Nino landslides are listedindividually in the Major Repair Program portion of this program budget. All of the proposed Major Repairs are described in detail in Appendix A. As noted in the introduction, William R. Gray and Company, Inc., General Manger of the District significantly revised this William R.Grey and Company, Inc. Page 6 of 15 March 19,2002 General Manager budget to reflect the need to repair previouslyunknown landslide in the Sequoia Conifer Terrace area of the District. ' A thirty percent(30%) allowance has been included in the budgets for each project to cover the cost of project development, design,engineering(geotechnical and/or civil),contract administration, inspection, materials testing and other project related costs. The actual cost of engineering, administration and other contract related expenditures'will be cost applied to each project. In addition to funding for the repair of six(6) specific landslide repair projects, the FY 2001/2002 program budget includes an allowance of$50,000 for unanticipated landslides that might occur over this next winter. Any costs for Major Repair Projects in excess of the $2,325,000 projected budget may require an additional transfer from the GHAD budget and/or additional action by the Beard of Directors. It is the intent of the General Manager to transfer any funds''remaining in the Major Repair Program to the District's Preventative Maintenance and Operations program or to theGHAD's reserve account: Preventative Maintenance and Operations Proera . The Blackhawk GHAD's Preventative Maintenance and Operations'Program represents the second largest expenditure of GRAD funds with approximately over 8 percent of the FY 2001/2002 budget allocated to this program. As noted above, it is the intent of the General Manager to transfer any unexpended funds that remain in the Major Repair Program to the Preventative Maintenance Program. Operations. The Operations portion of the GHAD's Preventative Maintenance'and Operations Program, funds the ongoing operations of the GHAD and includes the following: ➢ Weather Station..The GHAD maintains a weather station to monitor storm activity and rainfall quantities. ➢ Aerial Photography and Photo''herpretation Progam. The GHAD maintains a historic collection of aerial photographs (black and white as well as infrared) for two purposes - to assist in the evaluation of landslide activity and, more significantly,for use in detection of landslides and/or potential landslides. ➢ Piezometer; Subdrain and Horizontal Drain Monitoring. As indicated above, a number of horizontal drains and related facilities were installed by the original developers of Blackhawk and/or the GHAD in conjunction with repair or preventative maintenance activities. This program provides funds to monitor the condition of the drains. Any necessary repair and/or replacement are handled under the GHAD's preventative maintenance program. ➢ Settlement and Distress=Monitoring. This program provides funds to monitor various settlement and/or distress monitoring devices that have been installed over the past few years by the CHAD Preventative Maintenance. The Preventative Maintenance Program is designed to prevent future landslides and includes funding for the GHAD to respond to and evaluate reports of landslides and/or potential landslides within Blackhawk, as well as the following programs: ➢ Miscellaneous Consumables. Funds:are included in the Preventative Maintenance program to reimburse expenditures for miscellaneous consumables(sand bags, William R.Gray and Company, Inc. Page 7 of 15 March 19,''2002 General Manager plastic, etc.) that may be required in responding to landslides and/or potential landslides. > B-58 Ditch Cleaning and Winterizing Program. Surface drainage from open space and other areas within Blackhawk is collected and discharged through a complex series of concrete lined ditches ("B-58"ditches). This program provides funds to clean and winterize this complex system. > B-58 Ditch Repair and Replacement Program. This program provides funds to repair and/or replace damaged or deteriorated B-58 ditches as required. > Debris Clean-up and Minor Repair Program. This program funds the GHAD's initial response to calls from residents and others reporting landslides and/or potential landslide activity. Sufficient funds are included in the proposed budget to cover the GHAD's initial response and minor repair work. > Horizontal Drain, Sub-Drain Maintenance and Replacement Program. A number of horizontal drains and related facilities were installed with the original development of Blackhawk and/or by the GHAD in conjunction with repair or preventative maintenance activities. This program provides funds to repair and/or replace damaged or deteriorated horizontal drains as required. > Irrigation./Pumps Maintenance. The District maintains a sump pump on property, owned by the Blackhawk Country Club that dewaters a keyway that was constructed by the original developer of Blackhawk. These funds are used to maintain the pump. In addition to funding of specific programs, funds are also included in this portion of the budget for administration of the Blackhawk GHAD's Preventative Maintenance and Operations Program. Special Proiects. This portion of the proposed FY 2001/2002 program budget includes funding for a number of special projects. For the most part, these are projects and/or programs proposed for funding in response to comments and/or concerns from members of the Board of Directors, the General Manager,homeowners and others interested in the operation of the GHAD. The proposed projects and/or programs are more fully described below: > GHAD Association. The Blackhawk GHAD has been working to encourage fori-nation of an association of GHAD's in California to improve, enhance and promote the effectiveness of GHAD's in California. This portion of the budget will provide funding for the GHAD participation in the newly formed California Association of GHADs. > Develop and Implement GIS System. Ther GHAD has been working to establish a Geographic Information System (GIS)to assist the GHAD management with tracking incidents, as well as facilities maintained and monitored by the GHAD. This program will continue implementation of this system. > Management Audit and Reserve Study. This allocation of funds will provide funding for a management audit and evaluation of current GHAD reserves. > Develop Standard Plans and Specifications. These funds will be used to begin development of standard plans and specifications for GHAD improvement contracts. The use of Standard Plans and Specifications will increase the efficiency of GHAD operations and should reduce project development costs on Major Repair projects. William R. Gray and Company, Inc. Page 8 of 15 March 19,2002 General Manager ➢ Update Accounting and Bookkeeping Systems. CHAD staff is continuing efforts to _ upgrade and/or automate the GHAD's accounting and bookkeeping systems. > Review and Update Plan of Control. This budget item will provide funding to update the GHAD's Plan of Control. The Plan of Control has not been updated since the GHAD was formed in 1986. Administration. This portion of the proposed FY 2001/2002 budget provides funding for overall administration of the CHAD. Support for the General Manager function as well as related expenses including, but not necessarily limited to, accounting and bookkeeping support services as well as office related expenses (rent,telephones, office equipment and supplies) are included in this portion of the budget. Also included in the Administrative portion of the budget is funding for Contra Costa County Public Works Department support services(as provided for in Resolution 86/372) as well as legal support from the Contra Costa County Counsel's Office. In addition, this portion of the FY 01/02 administrative budget includes funding for outside legal counsel as may be required. Items included in the administrative portion of the budget detailed in Appendix C. William R.Gray and Company, Inc. Page 9 of 15 March 19,2002 General Manager Appendix A Major,Repair Program Major Projects for the 2001 Construction Season The following is a listing(not in priority order) of projects currently proposed for repair by the Blackhawk CHAD. Those items that have been added and/or modified in scope since the initial draft of this proposed budget was developed are shown in italics. These projects are currently under detailed engineering review and/or designand are scheduled for repair during this fiscal year: SEQUOIAICONIEER TERRACE MONITORING PROGRAM. Although not a formal "repair project,"the General Manager has included this major study in the Major Repair Program to allow a more detailed tracking of support costs. A detailed geotechnical investigation is underway in the Homeowners Association maintained open space between Sequoia Terrace and Conifer Terrace'(see next item). It quite likely that the scope and limits of this study will be expanded to include area between Conifer Terrace and Redwood Drive. Estimated Cost- $165,000 SEOITOIAICOZVIFER TERRACE REPAIR PROTECT. In late September 2001, the above referenced geotechnical investigation uncovered a significant area of instability in the slope above Conifer Terrace. Upon recommendation of the District's Geotechnical Engineering Consultants, the District decided to proceed with the repair as a priority project. The Board of Directors awarded a contract for the repair on December 18, 2001 The project is a priority because up to twelve properties could be impacted if the slope should fail. ➢ Proposed Repair. The GHAD's geotechnical consultants recommended installation of ground anchors to increase the stability of the slope above Conifer Terrace. Estimated Cost to repair- $1,900,000 BLACKHAWK PLAZA. A small keystone style retaining wall failed in the spring of 1998 adjacent to the Blackhawk Plaza parking lot near the intersection of Blackhawk'Road and Camino Tassajara Road. Safety and emergency response measures were taken'immediately after the failure and remain in place. Repair has been a lower priority for the GHAD because of other priority projects and construction is being deferred to the fall of 2002 (the FY 2002/03''fiscal" year). William R.Gray and Company, Inc. Page 10 of 15 March 19,2002 General Manager "'➢ Fraposed Repair: The failed wall will be removed and repaired: Damage to the adjacent parking lot will also be repaired. This repair is proposed for construction during the FY 2002103 fiscal year. Estimated Cost to Repair- $85,000 FY2001102 Budget(PS&E development only) - $15,000 K17VGSWOOD PLACE Ir This landslide occurred in late summer or early fall of this year. The landslide damaged the rear yard of two homes on the west side ofKingswood Place. The proposed repair project may require permits from the California Department of Fish and Game. If the necessary permits can be acquired, the landslide will be repaired this winter. If not, the slide will be winterized and repaired next summer. ➢ Proposed Repair: A timber'retaining wall will be installed to prevent additional failures in the area. GHAD staff has been working with the California Department offish and Game who has tentatively approved the proposed repair concept. Estimated cost to repair $55,000 BLAACKIAWK MEADOW DRIVE II.`` This is a non-El Nino related landslide that occurred on the banks of Alamo creek,adjacent to an existing residence. The GRAD proposed and the affected property owner agreed to a jointly funded repair of the landslide. The schedule for completion is dependent upon regulatory agency permitting requirements.` r Proposed sed Repair: A concrete retaining wall will be installed to prevent additional failures in the area. CHAD staff has been working with the California Department of Fish and Game who has tentatively approved the proposed repair concept. Estimated Cost to Repair-' $90,000 (note—this amt.includes a$25,0000 contribution from the property owner) William R.Gray and Company, Inc. Page 11 of 15 March 19,2002 General Manager CHESTNUT PLACE II. This project involves the repair of failed area to the rear of a home.. ➢ Proposed Repair: The existing slope will be reconstructed to prevent additional a more catastrophic failure of the slope. Estimated Repair Cost- $35,000 EAGLE RIDGEDRIVE. This is an El Nino related landslide that occurred on the slope below the residences on Eagle Ridge Drive. A repair strategy has been developed and construction is proposed for the fall of 2001 or the spring of 2002. ➢ Proposed Repair: Remove and replace the failed area with engineered fill and install appropriate drainage. This repair is proposed for construction during the FY 2002103 fiscal year. Estimated Cost to Repair- $165,000 FY 2001102 Budget (PS&E development only)- $15,000 William R.Gray and Company, Inc. Page 12 of 15 March 19,;2002 General Manager ................. ....... Appendix B Detailed Expenditure Summary-Supplemental Information The followinglable is provided for the information of the Board of Directors and others and is not to be considered a part of the budget. The General Manager may reallocate funds within each of the major categories without prior approval of the Board. Major Repair Program Construction and repair Contracted Work $1,764,000.00 Landscaping repair/replacement 10,000.00 Materials and Supplies 15,000.00 Total Construction and Repair $1,789,000,00 Contract Administration Contract Administration $105,000.00 Inspection/Material Testing 109,000.00 Total Contract Administration $214,000.000 Project Development Engineering Civil Engineering $34,000.00 Geotechnical Engineering 155,000.00 Other professional support 10,000.00 Licenses and Permits 18,000/00 Outside Legal Services 18,000/00 Project Management/Oversight 97,000,00 Total Project Development $322,000.00 Total Major Repair Program 2,325,000.00 Preventative Maintenance&Operation Admin.Preventative Maintenance $40,000.00 Operations Weather station 1,000,00 Aerial photography 2,000.00 Piezometer,subdrain/horizontal drain monitor 8,000.00 Settlement/distress monitoring 4,000.00 Total Operations $15,000.00 Preventative Maintenance Program Miscellaneous consurnables-sand bags,etc $5,000.00 B-58 ditches'-clean&winterize 48,000.00 B-58 ditches,-repair&replace 52,000.00 Debris cleanup/minor repair 30,000.00 Horizontal drains/sub-drains-maintenance 8,000.00 Irrigation/Pumps—maintenance 2,000.00 Total Preventative Maintenance Program $145,000.00 Total Preventative Maintenance& Operation $200,000.00 William R. Gray and Company, Inc. Page 13 of 15 March 19,2002 General Manager Special Projects GAD Association $1,500.00 Develop and Implement GIS System $50,000.00 Management Audit&Reserve Study $25,500.00 Develop Standard Plans,Specs $1,500.00 Update Accounting&Bookkeeping System $3,500.00 Review and Update Plan of Control $6,000,00 Total Special Projects $88,000.00 Administration Legal Fees General Counsel(CC County Counsel) $12,000.00 Special Counsel 12,000.00 Total Legal Fees $24,000.00 Public Works Charges $23,000.00 Office Expenses Office Supplies $500.00 Postage and Delivery 2,500.00 Printing and Reproduction 2,500.00 Rent 1,000m Telephone 6,000.00 Total Office Expenses $12,500.00 Staffing/Administrative Support Accounting/Bookkeeping $8,000.00 Education&Training 0.00 General Manager Function 79,500.00 Total Staffing/Admin Support $87,500.00 Total Administration $147,000.00 TOTAL EXPENDITURES $2,760,300.00, .......... William R.Gray and Company, Inc. Page 14 of 15 March 19,2002 General Manager Appendix C Supplemental Information Related to Staffing, Administrative Support and Office Expenses The following information is provided for the benefit of the Board of Directors and others. This table contains estimates of professional and support services that will be required to support the proposed FY 01/02 program budget: Consultant/ Estimated Annual Budgets Totals Service Major Repair PM & Ops Special Administration Program Program Projects William R. Gray $250,000 $13,000 $22,000 $65,000 $350,000 &Company,Inc. Sands $65,000 $27,000 $12,000 $15,000 $119,000 Construction Geotechnical $180,000 $15,000 $3,000 $0.00 $198,000 Civil $35,000 $0.00 $0.00 $0.00 $35,000 Engineering Totals $530,000 $55,000 $37,000 $80,000 $702,000 L Quatter1yBdgctRcp777Z.L-.xpmsa FY 01-02TY01-02 iHGHAD PmgmmBudgot-F;;*.tLd. William R.Gray and Company, Inc. Page 15 of 15 March 19,2002 General Manager Hill !:!I Ilit Amp Poll T!l 15UNIIIiiiiIiII: oil SIR M g! Oil millolls Ii !III Rill 111i:!oR 'Mai l il,jRjS nil 11,11111 11,11111i 11 1; NMI Mali NO. MWI solooll 1 VON !i.sellems li Rwo poll NINE 95 MIN WS ly !�ii UN 'Noll I oil Haut ItttIi!iII!i goal! 111 Mgmii!i! log of one N MIUM MUM! 04111111 N 1.0i fir -Mi ji il. OHIO 11 MIMI millet III!!I Ilili!�� il� il NP 11: !:i illn I . Rug I ism, TRIl!ii:l mum Uzt "Mal gpigill Real �I�illllj BlasNI Saar Balt Milli Jt° tom}pr pr�grrngt fir the 112 Ft ttst,t 21 1 MR fill;Will Jill: slam MIMI �l�- NEIII 1311 W 1r u st f4h61:1 Mill Mill ...........U P matt was brnmttt will. "oil 11 iiilllliilljilli�06,60-hm"'s.i. Wit Nil all lijal 111110I dill 1 1 ills 11 1 1 MR am�il will 0"it log I 11 WHOM nil Rom 10005i! fill It nN110 In Mai TIP 1011i !Pliiilii!�:Iili dillilijil RiFl�l!l!liliiii SIR 1 1 A all .011111�1 4 MIMI!! 1, MMM111�11 I 11JI.Ili: 1111 HIM I It 11 Milli adapted lit �austse�ees eerus and im wall m 1 log": MIN l;iii Jim i� is Nicol Oil in in M I IS 1 Nil ill mommom 1 goo no e:i I I NO H 4 2 Walnut k BE lot WE 1 i will, 1 Ogg NQ oil, VIM on nn �:WWJSV�!i: 0 !!now fl all: As�li� q QWIAEINIEMn MAOUJIMIng nags 15 P111191"jim into! k: RIM Ilia S12 011ml Q11111111ij: — !:; MIN P -awl spy", laws, way mo *11 1110- 11 11JUR:ii b: not"Ji 0.1 W1 I i 111200.211 AQW: gyp 00 1- WX t the (fid cth ) dint I!RW vw-m! qW.WoMmo. my VIA& it big wal" NOW will TIMOR: j IRA, 11 MEN wild 011P muttmo,:i� xmmm!i;hillm Inn g : nc Chiu, twbt$ SSW Rips, MAN BONN "Itivivil 01 El MIT 11 CRUM! 11,1115M NSA$ 1118p;P& ii —,-HEPS gall ya i Ing: io! aim W." Rmg OWN M full goo to UNION I lip g"yq:allot gill, I pga g1ml A MIMI MIN mom!! !In it gJ15111 !Is ov, so not too I PEN As d-bad RIM IRWIN 1 111 111 K 111 "!�Ih MRS!:! Sect tiy: 6LA(:KHAWK; 925-736 8386', Feb-8-02 2:01PM; Page 1/2 x 4125 Blackhawk Plaza Circle, Suite 230, Danville, California 94506 Telephone: (925) 736-6440 Fax(925)736.-0428 � � E-mail Address:blckhwk@pacbell.net .{ M�' c1Kfv 4 GFf yy Y "fir, TO: Bill Gray x= v g xis # RX ";� FROM: Mark Goldberg k k}\ RE: Questions Pertaining to January, 2002 Revisions to Budget. ? 4 DATE: February 8,2002 tad {1�f :t We appreciate that you have taken the revised budget off of the Board of tf ¢P k Supervisors February 2654 calendar. This way all parties can review our open questions prior to submission. We commented the other day, and it is probably semantics, but the Updated (January 2002) Budget really is nothing more than a revised end of year projection sera F t based on actual costs known to date. We all have to answer for our actual income and expenses in comparison to budget. We just don't get to revise the budget three quarters of the way through the year. As promised at our meeting February 614, the following is a list of open questions G Y ,� that the Board and I have on the revised Budget materials. *fr xj 1. Can you,quantify the continuing high expenses due to El Nino. My peers r�y � in other similar areas do not appear to still be experiencing El Nino related r� �rw problems? Is there an underlying problem that we should be aware of`? 2' 2. $35,000 is set aside for Chestnut. Is this realistic now that we know there are two problems of creep on both sides of the major repair done 3 tf2 years ago? 3. What is the total to date spent in this fiscal year on the GIS/GPS system? y � Per our meeting we understand that no further funds will be spent this g j t 4 year due to the tenuous financial circumstances the GRAD could find hxvfR• _ itself in after completion of the Sequoia project. This item jumps from r . $12,000 to $50,000 in your new revised draft in a difficult financial year. } Is the system that crucial in a year when we have serious funding r < < problems? While not a financial question, we await your instructions on haw we can view the system as it is now. 4. We understand that no further GRAD funds will be spent on Professional Organizations until such time as the finances are in healthier shape, and that all other costs relating to Professional Organizations are funded out of William R. Gray and not the Blackhawk GHAT}. If William R-Gray > belongs to the Association of GHADS, what benefit is there to the k' Blaokhawk GRAf?to also be a member with its own expenses? EAG H h,I)TinenceskQuestions Pertaining to January,2002 Revisions to Budget s U-tf4 G:Ucr'tw, t'c'i e c'/Z Questions Pertaining to January,2002 Revisions to Budget. February 8,200 Page 2 5. It is impossible to compare past history with current financials. The reporting was done _ differently, so we aren't able to look at trends from the Neistrum days til now? Is there any way to report in a comparable format? For example as discussed February 6',the old figures in your prior reports do not account for preventive maintenance, but the figures since you became manager do. The report looks a bit skewed as we all know that there were extensive preventive measures before 1998. 6. A review of the Mid 2001 Draft (Titled Final Draft) is off$23,300 from the figures on your January 18'i` memo. The estimatedending fund balance on the Mid 2001 Final Draft: was $2,103,000. This memo says Prior Draft ending balance was$2.,185,527,All but' 300 of the difference is in a $23,000 reduction to Administration. While we are pleased to see a reduction in Administration,how is it that these figures differ by$23,000? 7. On the same note as item 6 above, How, in a year with $1,500,000 unexpected new expenses does your Administration cost drop from $213,000 down to $147,000. We are pleased to see the drop,but we can only assume that one of the figures is or was drastically wrong? 8. In your July 11, 2001 "Summary of BH CHAD Revenues and Expenditures" your estimated year end revenue as of 6/30101 was$1,996,527. "On page 3 of the February 5, 2002 Proposed Budget your year end estimated reserve balance, under the interest on Investments section drops to $1,882,082, but in the Transfer To/From Reserves for the same time is $1,996,527. We understand variances in year in projections, but we need clarity on which figure is oorreot for the year end balance. 9. Please provide the detail on overhead expenses bringing the Sequoia Conifer Project from the 1.3 million t the 1.9 million in the new Proposed Budget Summary. 10. In your February 5,2002 revision(page 9)you site Blackhwk Meadow Drive 11 as currently proposed for repair. In speaking with Bill, I find that this item was already completed prior to the distribution of your new documents. Please clarify 11. An item we discussed at our meeting, was our concern that Appendix C (page 13) accounts for $702,000 which is roughly 25% of the Total Use of Funds? To the private sector this seems exceedingly high. Please comment. co: Kathy Chiverton Maurice Shin Melissa Morton Blackhawk HOA Board of Directors EAG H A DTiseame-AQuest ions PaWhiM to lama y,2002 Revisions Eo,Budgd ........... Blackhawk GHAD Geologic Hazard Abatement District EB William R.Gray and Company, Inc, General Manager February 19, 2002 TO: Mark Goldberg,Blackhawk HOA FROM: William R. Gray and Company, Inc.,Ge2?Manager Blackhawk Geologic Hazard Abatement District By: William Gray, President SUBJECT: Response to February 8, 2002 memorandum regarding proposed FY 2001/02 Program Budget This is in response to your memorandum of February 8, 2002 regarding the proposed update to the Blackhawk Geologic Hazard Abatement District's(GHAD)Program Budget for the 2001/02 Fiscal Year. A proposed draft of the FY 2001/02 Program Budget was circulated to the Blackhawk HOA (and others) by memorandum dated January 18, 2002. Let me first acknowledge that, at your request, this matter was been removed from our Board of Directors (Board of Supervisors) agenda for consideration on February 26, 2002. At this point, I hope to be in a position to resubmit it for consideration sometime in March. As you correctly note in your memorandum,the Updated(January 2002)Program Budget is, for the most part, simply a revised year end projection based on information that has developed since the initial draft of the Program Budget was developed. As you are aware,our office developed and circulated a preliminary draft of a FY 2001/02 Program Budget in September of last year. To my knowledge, the Blackhawk HOA did not comment on the prior draft. It is important to note that there are no statutory requirements in GHAD law or policies adopted by the GHAD Board of Directors requiring development and circulation of a"Program Style Budget" such as the one that we prepared. Because the required"line item budget"(adopted by the Board in August)is somewhat confusing and difficult to understand, our office prepares a Program Style Budget to describe how the District is funded, to describe the day-to-day functions of the District and articulate how the available funds are to be expended. Mark,our intent in preparing an update to the program budget was to provide the GHAD Board of Directors as well as your Board and others with a more accurate picture of what is happening financially within the District. The extent and magnitude of the Sequoia/Conifer landslide was not know until late October. The District has been working to install a number of high capacity ground anchors in an attempt to prevent damage to a number of homes above the slide mass. The significant impact that this one project will have on the District's finances suggested that an update would be prudent. 1820 Bonanza Street, Suite 204 Walnut Creek, California 94596 (925)947-1966 FAX(925)947-3177 February 19 2002 Page 2 of 6 If you and/or your Board'would prefer that we withdraw the proposed update and continue to use the prior version of the Program'Budget, please let us know immediately. Many of the questions raised in your memorandum of February 8 would no longer apply and we could wait until publication of the FY 2001/02 Annual Report (in September or October)to provide'information on the:projected year-end fund balance. More financial information will be available at that time and we would be able to more accurately report on the financial impacts of the Sequoia/Conifer project as it should be complete by then. Let us know. Given that we are scheduled to meet with your Board on February 26,2002, we are providing the following in response to the questions in your memorandum: 1. Can you quantify the continuing high expenses due to El Nino? As of the end of the prior fiscal year on June 30, 2002,the Blackhawk GHAD had expended almost $4 million in the repair of what we have been classifying as El Nino related landslide'repairs. As we have discussed, our Geotechnical Engineer advises that the Blackhawk area experienced a:"100- year storm event" in February of 1998. The reason that we are still dealing with El Nino damage in 2002 is,more than anything, a result of the fact that we needed to prioritize the projects and spread the repairs over time to minimize the impact on GHAD finances. Our Geotechnical Engineering consultants advise that Blackhawk is located in a geologically challenging area and the number and magnitude of the landslides that resulted from the 1998 El Nino event were not unexpected. If the Sequoia/Conifer landslide is characterized'as an "El Nino"related landslide, the damage total from the 1998 El Nino Rains will approach$6 million. 2. $35,000 is set-aside for Chestnut. Is this realistic now that we know there are two problems of creep on both sides for the major repair done 3'/i years ago? The proposed budget reflects the currently anticipated cost of addressing a soil creep issue in the rear yard of a home at 59 Chestnut. We have not completed an analysis of the situation in the rear yard of 41 Chestnut and the proposed FY 2001/02 Program Budget does not include a specific allocation of funds to address this situation. If a repair project should become necessary, funds can included in the Districts Major Repair program for the 2002/03 fiscal year. If a repair should be required this year,the District could allocate funds from the reserve for unanticipated projects. Your question raises a much more complex question for theDistrictwith respect to situations such as this. Does the apparent existence of similar soil creep issues on both sides of a known landslide suggest existence of a more significant problem? How should the GHAD respond to situations such as this? This is a matter that we believe should be addressed during the update to the Districts Plan of Control. - 3. What is the total to date spent in this fiscal year on the GIS/GPS system? Per our meeting we understand that no additional funds are to be spent this year due to the tenuous'financial circumstances'the GHAD could find itself in after completion of the Sequoia project. This item,jumps from$12,000 to$50,000 in you new revised draft in a difficult financial year. Is the system that crucial in a year when we have serious funding problems? While not a financial question,we await your instructions on how we can view the system as it is now. The GIS/GPS system, which is a joint project of the February 19, 2002 Page 3 of 6 Blackhawk, Canyon Lakes and Weidemann Ranch GHAD's, will provide—for the first time —an accurate inventory and condition assessment of all GHAD maintained facilities (inclinometers, piezometers, horizontal drains, wells and drainage facilities). The current practice (which WRG inherited from the prior General Manager)of retaining contractors on an annual basis to inventory and assess the condition of GRAD maintained facilities is expensive and awkward. A preliminary evaluation of expenses through the end of December 2001 indicates that the District has expended approximately$26,500 on the GIS/GPS system so far this fiscal year. Of that amount,over$10,000 is for consultant support services (Farallon Geographies). While we have agreed to defer data collection activities in Blackhawk, data collection will continue in the Canyon Lakes GHAD. While charges to the Blackhawk GHAD will be reduced, we do not intend recommend to the GHAD Board that we stop work on the system. In our opinion, the data that will ultimately be available from the system will be critical to the efficient management of the Blackhawk GHAD and should ultimately result in cost savings to the District. Development and implementation of a GIS/GPS system should be a priority for the District. In the sprit of not incurring additional unnecessary additional costs, we are reluctant to task our consultant with modifying the GIS/GPS system to provide your Association direct access to it at this point. We can make available samples of the screens or, if you and/or members of your Board would like to visit our office in Walnut Creek, we would be happen arrange for an "on-line" demonstration. 4. We understand that no further GHAD funds will be spent on Professional Organizations until such a time as the finances are in healthier shape,and that all other costs relating to professional Organizations are funded our of William R. Gray and not the Blackhawk GHAD. If William R. Gray belongs to the Association of GHADs, what benefit is there to the Blackhawk GHAD to also be a member with its own expense? The newly formed California Association of GHAD's provides a forum for Geologic Hazard Abatement Districts throughout California to meet and exchange ideas and information about a variety of GHAD related topics. >>Subjects currently being discussed by the Board of Directors of the Association include—emergency response protocols; requirements and/or procedures to secure storm relief reimbursement from FEMA and/or OES; opportunities to secure insurance and/or self insure against major landslides; monitoring of proposed changes to GHAD law;requirements and/or options related reserve accounts; opportunities and/or options related to bonding or borrowing to finance GHAD improvements projects (cash, insurance, bonding,etc.)and day to day managerAent issues. The Bylaws of the Association provide for two different types of membership. Districts that belong to the Association have a vote. Associate members (such as William R. Gray and Company) are prohibited from voting on policy issues—proposed legislation, etc. Given the financial position of the District at this point,we do intend to minimize the Districts fiscal involvement in the Association,but we do believe the District should maintain its membership. The current situation that we are facing with respect to is a matter where the District could benefit considerably from membership. February 19,2002 Page 4 of 6' 5. It is nearly impossible to compare past history with current financials. The reporting was done differently,so we aren't able to took at trends from the Neistrum days'tit now? Is there any way to report in a.comparable format? For example as discussed February 6'h,the old figures in your prior reports do not account for preventative maintenance, but the figures since you became manger do. The report looks a bit skewedas we all know that there were extensive preventative measures before 199$? To our knowledge, the prior general manger never issued Program Style Budgets for the GHAD. This comment does not really relate to the proposed revisions to the Program Budget,but rather is'a comment on how WRG reported prior year expenditures on two spreadsheets that we made available to the HOA back in September of22000. These spreadsheets were prepared in conjunction with an effort to evaluate GHAD and CSA M-23 income and expenditures since formation of the District in 1986. The data was developed in cooperation with the County Public Works Department using records maintained by Contra Costa County. 'None of this information was available from the records of the former General Manager that were made available to us when we were appointed'General Manager of the District in April of 1998. Our findings from this effort were shared with the HOA because, for the first time, we could show annual revenue, total expenditures and end of year fund balances for the District since it was formed. We wanted you and your Board to have benefit of the information. Nystrom Engineering apparently only tracked expenditures in two categories—"Construction" and "Professional Services." He did not"cost apply" support costs to individual projects nor did he track"preventative maintenance"expenditures separately. Some of the reports that you showed us on February 6"' (published by Nystrom Engineering) appear to be expense reports. By separate memorandum, we are providing advance copies of Annual and Quarterly Expense Reports for the District. Because Nystrom Engineering did not cost apply support costs to the various programs or separately track expenditures for preventative maintenance,it is unfortunately not possible to compare anything other than total expenditures. We would be happy to work with,you and explore various ways of presenting the data that we have in our system(QuickBooks)to see if it might be possible to compare some types'of expenditures. The former General Manager did not utilize any form of computerized accounting or bookkeeping system,so there is not much'flexibility with respect to the old data. 6. While we are pleased to see a reduction in Administration,how is it that these figures differ by$23,000? The September draft of the proposed FY 2001/02 ProgramBudgetthat we have in our office;projected total Administrative Expenses for the year at$190,000. The updated draft that we circulated last month projects that Administrative expenses for the year will total $147,400—a reduction of$43,000. We are not sure where you get the $23,000 figure. Please let us know and we would be happy to respond. The bulk of this reduction of$43,000 is simply a reflection of the fact that actual charges to the District's "General Manager function"over the past six months (by both William R. Gray and Company and Sands Construction) are coming in much lower than we initially February 19, 2002 Page 5 of 6 projected. Previously proposed budget allocations for education and training($3,000), subscriptions and memberships($1,00€0 and travel ($4,500)have also been eliminated. 7. How,in a year with$1,500,000 unexpected new expenses does your administration cost drop from$213,000 down to$147,000? See answer number 5 above. For the most part, charges to the Administrative portion of the District's budget by William R. Gray and Company and;Sands Construction represent charges to what we refer to as the"General Manager" function. These are charges that cannot be"cost;applied" to Major Repair Projects,Preventative Maintenance and Operations or Special Projects. & We understand variances in year projections,but we need clarity on which figure is correct for the year-end balance[$1,996,527 or$1,882,082?]. The estimated beginning fund balance for the 2001/02 fiscal year(June 30, 2001 is$1,996,527.71 based on information provided by the County Public Works Department. We're not sure where the $1,8$2,082 figure comes from—'let us know and we will try to clarify the difference. It is important to note that the number that you will see as the"Estimated Ending Fund Balance (Reserves'Available)--June 30, 2001" in the FY 2000/01 Annual Report ($1,921,004.21) is different that`.`Beginning Fund Balance--July 1, 2001" that is shown in the Proposed Program Budget($1,996,527.71). The reason for this difference relates to the fact that the Annual Report (as well as the quarterly expense reports) utilize data that was generated by our office(using QuickBooks). As noted in the Annual and Quarterly reports, there are classification and timing differences between these reports and reports developed by the County Auditor-Controller for the Public Warks Department. William R. Gray and Company utilizes the most current information available from the County Auditor-Controller for the Estimated Beginning of Year Fund Balance in the Program Budget to provide the most accurate projections. 9. Please provide the detail on overhead expenses bringing the Sequoia/Confer project from the$1.3'million to the$1.9 million in the new Proposed Budget Summary. The GRAD Board of Directors authorized award of a$1.343 million contract to Drill Tech of Antioch, California for the repair of the landslide on December 18,2001. The Board authorized issuance of Contract Change Orders of up to$134,300—if necessary. The total construction cost is therefore currently estimated at$1.477 million. The Program Budget includes a thirty percent(30%) allowance to account for preliminary and final design,project development,contract administration,inspection and testing services. $1.477'million plus 30%equals$1.921 million. We rounded down to$1.9 million for budget purposes. Please understand that the$1.9 million figure is just an estimate—after the project is complete and we close out the contract with Drill Tech, we will be able determine the final cost to the District. 10. In your February 5,2002 revision (page 9)you site Blackhawk Meadow Drive 11 as currently proposed for repair. In speaking with Bill, I find that this item was already completed prior to the distribution of your new documents. Please clarify. The project has been completed and we are in the process of closing out the contract. The revisions in this budget simply reflect that we have more current and more accurate information. February 19, 2002 Page 6 of 6 11. An item we discussed at our meeting,was our concern that Appendix C(page 13) accounts for$702,000 which is roughly 25% of the Total Use of Funds. To the private sector this seems exceedingly high. Please comment. Appendix C is.a summary of charges by the District's three major consultants—WRG, Sand and ENGEO. These charges represent work by the Districts three major vendors on a wide variety of tasks— administrative; accounting,engineering, inspection, special studies, incident responses, accounting and bookkeeping. I'm not sure what point you are trying to make with your comment. We'll try to answer any specific questions when we meet with your Board next week. I hope that this information is helpful and responsive to your questions: WRGfeg attachment cc: GHAD Director Donna Gerber, attn: Kathy Chverton Maurice Shiu,Public Works Director, Contra Costa Count Melissa Morton,Contra Costa Public Works Department' FADATA\GHAD GIeMiackhawk\GenerallCarrrespondence\Response to HOA 2:8.02 memo doc IF e 19 02 Q1 • 58p` Blackhawk MQFl 925-736-0428 p. l 4125 8iackhawk Plaza Circle,Suite 230, Danville,California 94506 Telephone: (925)736-6440;Fax(925) 735-0428 E-mail Address. bloMwkQ'Pachelt net TO: Bill Gray Board of Directors FROM: Mark Goldberg Wtkbxei Marrthl President RE: Board Meeting Materials G.Walter Tints DATE: February19,2002 Vice President Linda Applert e Tice President, Bill: Community Mations G"e 1:..'Triano h-easurer Thank you for delivering the documents this moming. This gives me plenty of Lin"KrsUlk time to review the items and distribute them to my Board this week in preparation Secretary of our meeting with you February 26th at 4 pm:. There are a few items you asked for clarification on and I will try to do that now. There are also a few questions i still have which I'ask your clarification on. 1. As to your comment about an unsolicited proposal for the Waterfall,you are incorrect You specifically asked me to obtain this for you as a result of the dredging and silt removal work. It may not have been solicited by you directly, but you did request my assistance in obtaining their recommendation. 2. On the indemnification issues,I have left this in the hands ofour attorney, Dave Larsen. Both Counsel'and our insurance carriers have concerns about the supposed required indemnification. While counsel previously advised us that the current watered down version was okay, they never were thrilled with it. The first drafts included, much broader indemnifications which we did not sign. Secondly,Maurice Shiutold both Mike Marchi and I face to face that it was not a requirement. Management 3. As to your comments about the drains,they are a bit cavalier. No one to date has been able to provide us with the documentation necessary for us Mairk A.GaidbM to analyze if we have any responsibility forthe drains and if so which ones ""POUMV and what our responsibilities are. Ifthis documentation exists we would Community Manager welcome'it. P*WiA*=ChUw Nee Assistaru MamWer mietk"IK cv4dween ' Community Services Director EAG H A DUtesponse to February 19th Submittals'from WRG.wpd Feta 19 ill 01 : 58P Blackhawk HOR 925-736-0428 P- 2 Bill Gray February 19,2002 Page 2 Contrary to your comments on page 6,we will still expect your interpretation of drain inspections as you are the experts,not the Association. Again if you can provide us with some documentation to analyze what,if any,is our responsibility,we will then have a basis for discussion. The problem never arose out ofthe comments on the drain conditions,but rather disputed and contrary information from your staff when the issuefirst came up and then more importantly misinformation from your staff when'you tossed it hark to us for the second time. You, in fact, agreed to do the TV and provide us with a report if you found'any problems. We too would like this all cleared'up. 4. For clarification'on the CHAD Board ofDirectors when met with the Blackhawk Board,you emphatically told them more than once(when asked)that the time had passed where they could petition to have a member Board replace the Board of Supervisors. 5. As far as the program budget memo,we are not asking you to withdraw the proposed update. What we would like to be sure of is that all of our questions are answered,and submitted along with your budget.. 6. As for the GIS/GPS system,my request was to see it in your office. You offered to have us on line in my office which sounded great,but wasn't our request. If we can see the system in your office,I am sure some of my Board and I would find it interesting. 7. On page 4, comment # 6 (Response to February 8 ..) you ask for clarification on the $23,000; Attached are copies taken from you 1/18102 memo and your Sources and Uses of Funds Table. The first has a total of$190,000 for Administration. The latter has a total of $2,13,000 and this was the earlier document. 8. On page 5, comment## 8 (Response to February 8 ...)you ask for clarification on the year end.balances. Your 2/5!02 document(page 3 of 13)says that tate County Treasurer estimates the balance to be $1,882,082.04 but both of your other documents use the $1,996,300. Copies of all are attached, 9. Finally and maybe most important is your;memo-of February 19',on the"Status of Update to Blackhawk Plan of Control". What seems to me to be overtly missing is a full meeting with my Board only on the Plan of Control,and hopefully for you,a consensus before it is provided to the public. This was promised by you and by Supervisor Gerber's office. To date we haven't even seen a revision with the items you and l worked on last year,and this was supposed to ready for that meeting several months ago. We still don't have a revision with the items you and 1 worked on early last year. It is certainly more work than can be accomplished on February2e,considering the number of items we have to cover. Asking the CHAD Board to adopt anything before the Association has an opportunity to hopefully work out any wrinkles with you is absolutely contradictory to your earlier pronuses. I applaud your plans for the public=forums but holding those prior to reaching a consensus with my Dowd'will do no cane any good. EAG 14 A DXPAsponse'to February 19th Submittals from WRG.wpd Feb 18 'o2 X1'1 : Sop H l ackhautk F tlFt _ 935-736-0428 P, 3 Bill Gray February 19,2002 Page 3 I appreciate the sample from Wiedemann Ranch. This document is more than my Board will be able to review and digest prior to our meeting, but will most likely be helpful to you in your presentation. I will definitely have it available for the meeting. We look forward to our meeting,February 20h,and the Board has set aside one hour(4:00pm -5:00 pm). They have called their meeting one hour earlier than normal so that my Board of Directors has ample time to meet with you. If additional time is necessary we may able to extend the time a bit. cc: Board of Directors Kathy Chiverton, Supervisor Donna Gerber's Office Maurice Shin Melissa Morton E.\O H A U\R P--to February 1%Submiftis from WRG.wpd Feb .19 Ell 01 : 59p B l ackhaw,k HOA 925-796-0428 Blackhawk Geological Hazard Abatement District 5 h,(i� Budget FY 2001/2002 � u 5076 1 4q Sources And Uses of Funds 'Table � Beginning Fund Balance-Juy 1,20111 $1,996,31.00 Sources of Funds Contributions from M-23 $1,250,00100 Interest on Investments $130,00).00 t3dw income 325 ).00 Tonal Sources of Funds /YW doa Total Available Funds Uses of Funds Major Repair Program (Acct Code 23191 $700,00).00 Preventative Maintenance Program (Acct Code 2282) $250,00).00 Special Projects (Acct Cade 2479) S75,*.00" Administration and PW (Acct Code 2310) & (Acct Conde 5011) $21313 .001 .00 Miscellaneous charges $ Tonal fM of Funds $1,238 .00 � Reserve AvaftblefflAdmted Ending Fund Balance June 30,2002 $2,138, �00 Projected Revenues- FY 200112002 Contra Ctrs aw a :.ntI§er +e Area M-23 The County oaf Contra Costa formed County S vice Area M-23 (CSA M-23) in June of 1977 (Resolution No. 77/477) to perform a varie y of maintenance related functions. Pursuant to its authority under the County Service Area La .,the County levies an ad valorem tax for CSA M-23 purposes based upon the assessed value of al realJe`�t property lusted within CSA M-23. Revenues received from these levies are credited in the Cc unty treasury to the account of CSA M-23 In April of 1986,the Board extended the definition of maintenance services to be performed by 1 -23 to include geologic hazard abatement(Resolution No. 861209). Also in April of 1986,the Bard approved a Joint Exercise of Powers Agreement (1EPA) between tate GRAD and the County (Resolution No. 86/211) under which the County agreed to fund GHAD operations throe h a transfer of so-called"surplus CSA M-23 revenues.." As defined in the 3EPA, "surplus seven is include all CSA M-23 revenues after deductions for 1) drainage maintenance extended se ices within CSA M-23 (as defined) and 2) street fighting extended services within CSA M-2 (as defined). All remaining M-23 revenues are"tor be transferred to the GAD and deposited in uch account or accounts as(the Board of Directors of the) GRAD may specify..." The Board of Directors of the GHAD(Board of Supervisors)appointed the County Treasurer t ,act as the Treasurer of the Blackhawk GHAD(Resolution No. 86/369). i i Page 2 Feb 19 02 01 s 59p Blackhawk HCiffi 925-736-0428 P. S Blackhawk GHAD Geologic Hazard Abatement District €'d WiNisam R.Gray and Con%any,Inc. Ganerel Manager � January 18,2002 t T4: (See attached Distribution List) FROM: William R Gray and Company,Inc.,General Manager i Blackhawk Geologic Hazard Abatement District By: William R.Gray,President SUBJECT: Blackhawk Geologic Hazard Abatement District(GHA ) Enclosed with this memorandum is a proposed draft of the FY 2001/02 Program Budget lietailing the various programs and activities of the GHAD during the year. In August of last year, the Board of Supervisors,sitting as the Board of Directors of the Blackhawk GRAD,,approved a tine item budget for the District. An initial draft of the p-oposed 2001/2002 program Budget had been developed and circulated in tate September of 2001 . The CHAD subsequently became aware of'a large landslide in the hillside above Conifer Te ace. Since the project is large and the repair will significantly impact CHAD reserves,the dt program budget was updated to 1)reflect the Sequoia/Conifer Repair project and 2)to€:duce and/or defer previously anticipated expenditures in the Administrative and Preventative Maintenance portions of the budget. The following is a comparison of proposed expenditures under the previous and current drafts of the proposed'budget: Sources n,„o200 1Prior Draft Current D t ft, Beginning fund balance (7/1/2001) 1 f f4 304f $1,996,527.71 $1,996,527,71 Anticipated income(ail sources) t''iOSv40d 1,405,000.00 1,405,000 .00 Total Available 3 X61,34) is $31,401,527,71 $ ,401 $277'1 Uses Major Repairs 7V el, oocr $700,000.00 $2.-325,00000 Preventive Maintenance xse" 000 250,000.00 200,00000 Special projects S,o ad 75".00 88,00000 Administration 3, 0,00 19040M.00 147.000100 3t�v Total uses 4?p 3,o $1,215,000.00 $2,760,00000 Estimated ending fund balance(6/30/2002) $2,186,527.71 $641,S27-71 < 216 3, o vo 1820 Bonanza Street,Suite 204 Walnut Creek,California 94596 (925)947-1W FAX(925)9471.3177 Feb 19 02 02: 00p B eckh'awk 'HOS 925-736-0428 p.6 The Contra Costa County Tax Collector estimates total CSA M-23 revenues for FY 2001/2002 to be$1,,278,000.00.'' After deducting for Flood Control(drainage maintenance extended services), surplus CSA M-23 revenues projected to be available for GRAD operations for FY 2001/2002 are estimated at$1,250,000.00. Interest on Investments. As indicated above, the Treasurer deposits GHAD funds in a separate interest bearing GHAD account. Pursuant to the terms of the,TBPA approved by Board Resolution 86/211, all interest earned on funds is credited and retained by the CHAD and can not be deemed at any to constitute funds credited to the treasury of Contra Costa County. The County Treasurer has advised that the estimated balance in the GHAD's reserve account,;;as of June 30,2001,is at$1,882,082.04 (before any transfer of funds to cover projected FY 01/02° expenses).' Revenue from interest on investments for FY 01/02 is estimated at$130,000.00. Other Income. From time to time, the Blackhawk GHAD enters into agreements with others for the completion of projects. In the FY 2001/2002''fiscal year, the CHAD anticipates at least one joint project under which a resident will make a$25,000.00 contribution toward the completion of a project. Therefore, other income is estimated at$25,000.00 for FY 2001/2002. Transfer to/from Reserves. The balance in the GHAD reserve account,as of June 30. 2001, was $1,996,527.7'1. As projected expenses in the proposed program budget will exceed anticipated revenues, funds will need to be transferred from Reserves during FY 2001/2002. d5y Yrr.� go16d f'cr` wilham R.Gray and C,omMy,Inc. Page 3 of 13 February 5,2002 CVAWn i Manager Blackhawk GHAD Geologic Hazard Abatement District Eg WiWiam R. Gray and CornpenY, Inc.General-Manager February 20, 2002 Mark Goldberg,Community Manager Blackhawk Homeowner's Association 4125 Blackhawk Plaza Circle, Suite 230 Danville, CA 94506 Dear Mark, Thank you for your letter of February 19,2002. 1 appreciate the information you provided to clarify your concerns with these issues. We will be prepared to discuss any or all of these items when we meet with your Board next week. I want to assure you and your Board that it is our intent to meet with you and your Board to review an actual draft of the proposed update Plan of Control well before it's presentedto either the GHAD Board or to the public. We would very much like to develop a consensus with your Board before it is released as a final draft. The division of responsibility for maintenance of drainage facilities is clearly one issue that we need to discuss(and hopefully agree upon) well before the document is finalized and released for public comment. I would like you and your Board to be in a position to support our recommendations when they are finally presented to the GHAD Board for adoption. If we need to adjust the schedule, we can do that at our meeting next week. I would hope that our discussion next Tuesday could focus primarily on our proposed Work Program for the BlackhawkGHAD—which includes development of an update to the Plan of Control. The proposed Work Program should be considered a draft at this point. We would very much like to develop a consensus with your Board on a priority list of projects/issues to be addressed by our office as well as a mutually acceptable'schedule. If we can agree on what needs to be done and when it will be done, we will have accomplished quite a bit. We look forward to meeting with your Board next Tuesday, February 26`x. Very Truly Yours, William R.Gray and Company, Inc.,General Manager Blackhawk Geolo 'c H Abatement District By: William R.Gray President WRG/kg cc: Kathy Chiverton,Supervisor Donna Gerber's Office Maurice Shiu,Contra Costa County Public Works Director Melissa Morton,Contra Costa'County Public Works F:U7 filta�B wk s Lo 9-0:St. ��3�onanzaMke ,.ul �arn`�rei3�c°, f�#i o nla 6 596 (925)947-1966 FAX(926)947-3177 Sent, By: E3LACKHAWK, 6�5 736 6386, Mar-8-02 4.57PM; Page 1/9 4125 Blackhawk Plaza Circle, Suite 230, Danville,C Cfbmia 94506 Telephone. (925)736-6440:Fax()25)736-04249 E-mail Address:'blektm kQpacbeknet March K,2002 acrd Of-'b-ftly taut Bill Cray ' �rande�r Biackhawk GRAD 1820 Bonanza Street, Suite 204 Walnut Creek,CA 94596 Vecc:I�,e�dr+�r t4dA;A*j RE- Blackhawk Program Budget(FY 01-02) rice.t'tstdsrrs, COMM +#,ty marrans Tear Bill: r e sorer Please thank Karen for providing us with the March 19'copy ofthe Propo•ed FY I;ictOKr ltt (01-02)Program Budget. in review it appears to be the same document that we secrr�ary. received dated Februtary 5'''. Tfthere are any changes that 1 missed in my review todd y, please highlight them and forward another copy to me. We originally submitted an extensive list vf'questions'in our February 8''''memo which you promptly responded to 'in your February 19th letter. Our correspondence was distributed to my Board of Directors prior to ine ' .l;with you February 2e 'T'here were still a few open items that you P'quired clarification on which l sent to you in a memo dated February 19 (copy attached). i would appreciate if you would address items 7 and 9 'on my February 19tH memo. Other than the above two items above,we have only two more comments that we think should be answered and included in your notes that are submitto i to the GRAD Board of Directors. 1. At,our meeting with Kathy Chivertc n at Supervisor tbei—'s office last month, you agreed' that no more funds 11 om the Blackhawk GHATS would be spent this fiscal year on the IS/GPS system. This was in direct response to my query_qs to ,shy the . figure had jwnpcd'from $12,000 to $50,000 since your l tit draft budget, particularly in a year where the CHAD co Id run dangerously close to nutting out of fonds. Contrary to hat you ' agreed to in our meeting with lets. Chivefton, your Febn ary I(Y Ca tm u �ldii 9*f memo says you,: will "defelr data collection acti ties in V» -Kqft Ulackhawk'. But you also say"White charges to the 131 "-khawk iststm rlldt CrHAD will'be reduced,'we do not intend to recommer d to the GRAD Board that we stop work on the system" This is n direct Crsr►ltt VWY%RvkesDtrectto contradiction to 'your statement when you said more Blackhawk GHAT)fiends would be spent this year on the system. seat,, #3yBLA€;lCttAW&; 925 736 8386; Mar-8-02 4.57PM, Page 219 Bill Gray Blackhawk GHAL7 March 8,2002 Page 2' We'would'also appreciate an exact figure of how much of the Blackhawk' HAD iun(Is have been spent to date in this fiscal year on the system.. 2. The other itern we feel strongly about is that your work on the proposed revision to the Plan of Control has already taken way too long. At this paint we feel that it should be held in abeyance until such time as the management ofthe GRAD h been resolved. We ask that these comments along with our prior correspondence be included in your submi als to the Blackhawk Beard of Supervisors. We also took forward to your responses to these la it few items,prior to this item actually reaching the Board of Supervisors for their vete.. Sincerely, lv4.a k A.Goldberg,,tr"TMOO,PC;AM(& Community Manager cc: Mauric u swu Melissa Morton John .sweeten Kathy Chiverton Mike Marchi SettL by: tit AC:KhtAtNK; 925 736 8386; Mar-8-02 4.57PNl; Page 3/9 �r 3 4125 1518+1(hawk PlaZa Circle,Suite 230, Dawiie,; miS$45M Telephone:;(926)736-6440;Fox($ 5)736-0428 r E-mail Addtcss: b1cm ac eN net i Tt7; Bill Gray Board of Il#it'+ceteuru FROM- Mark Goldberg. Michad mambi pratAIN RE. Board Meeting Materials G.WAUWTtW DATE: February 19,2002 Vi"P*Sment Dada Ap kwo rim P>tiar*nt Bill: ecrr" ry mairx G*wV't-Trig Treasm"r Thank you for delivering the documents this morning. This gives me pl of LIW&XMik time to roview the items and distribute them to my Board this week in prqu ration sac„rrar of our meeting with you February 26th at 4 pm. There are a few items you asked for clarification on,and I will try to do th :now. There are also a few questions I still have which I ask your clarification n. As to your comment about an unsolicited proposal for the Waterf 1,you are incorrect:. You spe oifically asked cite to obtain this for you as result of the dredging and silt removal work. It may not have been soli by you directly', but'you did request my assistance in obtairr'tiu . their recommendation. 2. 4n the indemnification issues,I have left this in the ids ofour a i rney, Dave t,arseq. Both Con nsel and our insurance carriers'have errs about the supposed required indemtufrcation. While counsel pre erns advised us that the current watered down version was okay, th never were thrilled with it. The first drafts included much reader' indemnifications which we did not sign, Secondly,Maurice Shiu t ;d both Mike Marchi and I face to face that it was not a requirement i manageut"Ut 3• As to your comments about the drains.,they ire a bit cavalier. N A one to date has been able to provide us with the documentation neces for us Mork A4*Uaars to analyze if we have any responsibility for the drains and iflso W1140 ones O ;st ,� and what our responsibilities are. Ifth s documentation exists, would welcome it. PosbowMew N* .enk"M it!'4,o ftvr Mkh*O.S lot Cory Sarvde.-�s�Nrrcrar EAG 1i A L'».Ragpottae to Februwy'14ib Svbca tW* WR€i.wpd' sent b y. oLAUKHAWK; 025 736 8388 Mar-8-02 4.58PM; Page 4/9 Bill Grray February 19,2002,, , Page 2 } Contrary to your c€nunents on gage 6 we will still expect your interpretation of drain ins ions as you etre the experts,not the Association. Again if you can provide us with some docum on to aEnstyzc what,if any,is our respornsibility,we will then have a basis for discussion. Ile p l�tn never arose out ofthe comments on the strain conditions,but rather disputes(wWcontrary i .on from your staff when the issue first came up and then more importantly misinfotmarion fico your staff when you tossed it back to us for the second time. You, in inti, agreed to do the and provide us with a report if you found any problems We too would like this all cleared up. 4. For clarification on the GHA 3 Board of Directors,when met with the Black wk Boap 1,you emphatically told them more than once(when asked)that the time had passed wh they could petition to have a member Board replace the Board of Supervisors.. 5. As far as the program budget memo,we are not asking you to withdraw the proposed What we would like to be sure of is that all of our questions am answered,and su 'tted along with your budget.. 6. As for the CAIS/GPS system,my request was to see it in your office, You offered to h ive us on litre in my office which sounded Wit,but wasn't our request. If we can see the ystem in your office,I am sure some of my Board and I would find it'interesting. 7. On page 4, comment #'`b (Response to February 8 ...) you ask for clarification 'm the $23,000. Attached are copies taken from you 1/18/02 memo and your S=amrshaula ses+cfFunds'("able. The first has at tote]cif 5190,Uf30 for Administration. 'I'tse: ' tel'of 5213,000 and this was tate earlier document. S. On page 5,comment#8 (Response to F bruaiy-8 ...)you ask for clarification on t year end balances. Your 2151(}2 document(page 3 of t 3)says that the:County Treasurer cs `mates the balance to be $1,882,082.04 but both of your other documents use the S1 ,300. Copies of all are attached. Finally and maybe most Important is your memo of February l 9t",on the"Status oJpdate to Blackhawk Plan of Control". What seems to me to be overtly missing is a full reefing with my Beard only on the Pian of Control,and hopefully for you,a consensus be it is provided to the public. This was promised'by you and by Supervisor Gerber's o , . To date we haven't even seen at revision with the items you and I worked on test year, W this was supposed to ready for that meeting several months ago. We still'don't have;a vision with the items you and`I worked on only last year. It is certainly more work thu 'can be accoranplished on February 26h considering;the number of items we have to cover.; lAsking the GHAT?Board to adopt anything before the Association has an opportunity to pefutly' work'out any wrinkles with you is absolutely contradictory to your earlier p�romi'' s. I applaud your plans for the public forums but bolding those prior to reaching a esus' with my Board will do no one any good. EAG HA D\KOPOM*to F�ro.ty 19th subMittits `wtt(J.-O E t Seri[ by: bLAGKHAWK; 925 736 8386; Mar-8-02 4.58PM; page 519 Bill Gray February 19, 2002 Page 3 1 I' r 1 appreciate the sample from Wiedemann Ranch. This document is more than my Bo will be able to review and digest prior to our mecting, but will most likely be helpful to in your presentation. i will definitely have it available'for the meeting. r_ We look forward to our meeting,February 26*,and the Board has set aside one hour(4:00pm 5:00 pm). They have called their meeting one hour earlier than nommal so that my Board of Di has ample time to rneet with you Ifadditional time is Necessary we may be able to extend the first a bit. cc. Board of Directors Kathy Ch verton, Supervisor Donna Gerber's Office Maurice Shia Melissa Morton 1 s r r i r r r EAG H A Mrspow to t=A,,wy 196 5.*Wt%g. = wItG.wpd Seat BY: BLACKHAWK, 925 736 8386; Mar-8-02 4.58PM, Page 819 Blldd�awk Geological Hazard. Abatement Dista VO, 0411 Budget FY 2001f2002 15 10,r! Sources And Uses of Funds Table veil RegbMW9 Fund Balatme-July L.2001 $1.996.3 f10 Sourcm of Funds Corin atim horn M-23 S1.250. ' '.00 latema on lavesunam 5130. +.00 Odwr bloome 525. Tatd Sources of FWq& TeW Avallabie Funds 3YDt 0 0 Lases of Fauda Msjor air Program (Acct Code 2319 5700. y.00 Pr6VaA&ive Maintenance PrOgran► {Acct Code 22821 $250. 1.00 SPWW Projeett (A=Code 2479} $75. i30 Admin sbVion and PW (AW Code 23101 di'(Acct Code 30111 $213. .00 Mau s ehargtis 5 00 Tont!Uses of FU"s sl .413 � Reserve AvailablOWNfirrutted Ending Fund Baln=*Juane 341,2002 S21tS8 +vs ProjeoAd Revenues- FY 2001/2M2 Contra Gqsft,Counft&emjSS Arm M-23 JU County of Contra Costa fanned County � Ce Area M-23 (CSA. M-23) in Juneof 1977 (Resolution No. 77/477) to perform a Varil 4Y of 'x� maintenance related functions. Pursuant to its authority under the County Service Area La , the County levies an ad valorem tax for CSA M-23 purposebased upon the assessed value of tial ��►� Prosy tocatcd widdri'CSA M-23.' Revenues received from these levies are credited in the C Munty treasury to the account of CSA M-23. C In April of 1986.the Beard extended the definition of maintenance services to be perrfonned b' 1-23 to include"geologic hazard abatement(Resolution No $6!209). Also in April of 1986, the bard' approved a joint Exercise of Powers Aunt (MA) between the CHAD and the ty (Resolution No. g6/11 1), under which the County egg to fund GRAD operations dftm lh a transfer of so-called"'surplus CSA M-23'revenues" As defined in the"A."su pla re include all CSA M-23''revenues after deductions for:1) drainage maintcnanc a eactcnded ices wig CSA M-23 (as defined) and 2) strut lighting extended services within CSA M (as defined). All remaining M-23 mvccwes am"to be transferred to the GLAD and deposited *uch account or accounts as#the Boardof Directors of the] GRAD may specify..." � The$oosd of Directors of the GHAD(Board of Supervisors)'appointed the County Tr a t+act as the Treasurer of the'Blar khawk G13AD(Resolution No. W369) , i Page 2` i Sent, by* 8LACKHAWK, 9 5 736 8388 Mar-8*02* 5 4:59PM; Page 7/9 . i Blackh awk GHAT �:ulttgitc Hazard Abatement District January 18, 2002 TO: (See attachedDistribution List) FROM: William'R.Gray and Company. Inc.,General:Manager Blackhawk Geologic Hazard Abatement District , By. William R.[tray. President SUBJECT: Blacichawk Geologic Hazard Abatement District(GHAD) Enciose:d with this memorandum is a proposed draft of the FY 2001102 Program Budgel lietailing the various programs and activities of the GRAD during the,Year. In August of last year.the Board of Supervisors,sitting as the Board of Directors of the j Blaekhawk GHAD.approved a line item budget for the District. An initial draft of the j�aposed 2001/2002 Program Budget had been developed and circulated in late September of2 1. The CHAD subsequently became,aware of a large laridslidG in the hillside above Coniferl, � max. Since the project is large and the repair will significantly impact GHAD reserves, the t Program budget was updated'to l}reflect the Sequoia/Conifer Repair project and 2)to t we andlor defer!previously anticipated expenditures in the Administrative and Peen€ati Maintenance portions of the budget, t The following is a comparison of'proposed expenditures under the previous and cumn 1drafts of the proposed budget: ` Prv . a Sources —"`'-.... Prior Draft Current E ft Beginning fund balance (filll2001) 1 I 1906 $1,996,527.71 51,996,5 ,11 Anticipated income(all sources) t►S v oo 1,405,00000 1.405, .O Total Available3 ��' �� � $3,4111,52?'-7I $3,401,5 4171` Uses Major Repairs 70 0, Poo $700AM.00 $2,325. .. Preventive Maintenance X S'O. O 250,00000 200,10 PIOO Special Projects � '� 75,00000 9$, 0 Administration a*v 190,1)0000 147., 100 TZ usca ,ZIP 3-WO $1,215 -00 $2,y6Q, #lit Estlazated ending fund balance W3012002) $2,186,527.71 St�1 i7!.? ' .r.►' .�,yys.� ,��„ �k!eS�, is oes � d�'t5►J�r�+�✓rkJ'3�- cam/'y i 1820 bonanza Street.Suite 204 WeInut Creek.CaNRwr"945N (925)947-19W FAX(925) 71-3177 Sett L oy. C$LA4-;KMAWK p 35 736 83861 Mar-a-02 4.59PM, 8 Page 9 g 1 The Contra Costa County Tax Collector estimates total CSA M-23 revenues for FY 2001 2to be 51278,00000. After deducting for Flood Control(drainap maintananee extended 'ccs), surplus CSA M-23 revenues projected to be availatge for GHAD operations for BY 2001 002' are estimated at$1,250.000,00. ;nIrrest on lnvesUmnts. As indicated above,the Trmurer deposits CHAD funds in a b ;paste interest ring CHAD account. Pursuant to the tetras of the JBPA approved by Burd Resolution Mi 1.all interest earned an funds is credited and retained by the GHAD an can not be deemed at any time to constitute fonds credited to the treasury of Contra Costa Count The County Treasurer has advised that the estimated balance in the GHAU's reserve acc unt,as of June 30. 2001,is at$1,882,082.04(before any tea for of funds to cover prc jecud FY' 1/02 expenses). Revenue from interest on investments for FY 01/02 is estimated at$130,000 t?ther 1MM& Brom time to time, the Blackhawk C HAD►enters into agreements with hers for the completion of projects. In the FY 2001/2002 fiscal year,the CHAD anticipates at t t one joint project under which a resident will make a$25,000=0contributions toward the co Iction of a project. Therefore, other income is estimated at$25,000.00 for FY200112002. Transfer toflr+�tr�,Re er�v+es. The`balance in the CHAD reserve account,as of June 30, 001, ....�.- .,..,...g..�......, ....-.....,.. was$1,996..527.71. As projected expenses in the proposed program budget will ex anticipated revcnues. funds will need to be transferred from Reserves during'FY 2001 2 7 -,-14a f cJ` 7 h�`J t?" fed d r, ,r I i I #t# t i r r i wstitm R.Ckq*rA Company.Inc. hSt 3 or t3 4nuty 5.2002 1 aGta L WY, ,a�Hi,rit1AW; 3 Mar-B-132 4,59PMr _. Page 9/9 Blitek mwk GeologicalHerd Abaternent Disftict � Budget FY 2001/2002 � i i Sources And Uses of FundsTable Beglaning Fund Balance- July'l.2001 S 1.996.52, 1 Souit s of Funds Contrt►uticieis ham art-23 s t...so. .00 lat==(on Investments $13 , .tom ©aw income S25- .00 Total Sour of Funds S 1.403, .tM? Total AV411ahle Funds $3,401,5 .7I Uses of Funds Major ft"ir Progrom (Acct Code 23 t9) $2,325. .00 Piwvoitadve M`3ainteriance Pro rom Ilett Code 2292) $200. .rK} S,pccr`.at Profcces (AW Code 24791 188. .00 AdInint irareon and Ptiv (Acct Code x3101& (Acct Code 50 l I l ,/ 3147, .00 Irk f-'7►s�s, .?!' .Ott O rs 7 A F T Total Uns of Funds S2,7 O.00 Reserve Ava lla#hlefEstimated Ending Fund Balance June 30,2442 $641 Z7.71' Projected Revenuers - FY 2001/2002 Contra osta urrty Service Area M•23- Contra Costa County formed County Sergi a Area M-23 (CSA M'-23) in June of 1977 (Resolution No. 77/477)to perform a variety of mai chance related functions. Pursuant to its authority under the County Services Arca Law. the Co ty levied an ad valorem tax for CSA►.M•23 purposes based upon the assessed value of all ul , property located within CSA M•23. Revenues received from these levies me credited i the County trcusury to the account of CSA M-23. In April of 1'996, the Board extended tate definition of maintenance services to be pc rf by M-23 to include geologic hazard abatement(Resolution No. 86/209). Also in April 0 9 .the Board approval a Joint Exercise`ref Powers Agreement GEPA)between the GHAU a t#t County (ResolutionNo. 86t2t 1).under which the County agreed to fund GH.AD ope Jonas through a transfer of so-called"surplus CSA Mf-23 revenues" As defined in the JI P ,"siiuplus revenues"include all CSA, -23 revenues after deductions for l)drainage rnaime:n a+ended` services within CSA M-23 (as defined)and 2)street lighting extended services with' CSA M-23> (as defined). All remaining M-23 revenues are"to be transferred to the GHAD arta ited in such Account or accounts as IthG Spud of Directors of the}GHAD may specify..," The Bond of Directors of the GHA►D(Beed ofSupervisors)appointed the County firer to act as the:Treasum of the Btactchawlt 011AD(Resolution No. SW369). i Williamit.Gray VA cosy.Inc: PW�of i s �i S.ono t Blackhawk"GHAD Geologic Hazard Abatement District ®William R. Gray and Company,Inc. General Manager March 14, 2002 Mark Goldberg,Community Manager Blackhawk Homeowner's Association 4125 Blackhawk Plaza Circle, Suite 230' Danville,CA 94506 Dear Mark, This is in response to your letter of March 8,2002 in which you asked that we provide additional information with respect to items 7 and$ in your memorandum of February 19`h. Both of these matters'relate to discrepancies in estimates provided in prior drafts of the proposed Program Budget, transmittal memorandums prepared by our office and the program budget as currently proposed. As discussed in our memorandum dated February 19, 2002, our intent in preparing an update to the Program Budget was to provide the,CHAD Board of Directors as well as your Board and others with a more accurate picture of what is happening financially within the District. The extent and magnitude of the Sequoia/Conifer landslide repair project was not known'until late October and the significant impact that this one project is having,on the District's finances suggested that an update to the proposed Program Budget would be prudent and appropriate. You indicated that you concurred with this decision in your memorandum of February 191h. For the most part, the differences in the figures reflect the fact that better information was available when the updated draft'was prepared. The figures in the Proposed Budget being presented to the Board on March 26, 2002 reflect the best estimates available at the time the document was submitted. The estimate for Administrative charges for fiscal year 20€11/02 is $147,000 and the most recent estimate from the County Treasurer(provided through Public Warks)for the beginning of year fund balance in the Blackhawk GRAD account is $1,996,527.21. Your letter also asked for additional clarification as to expenditures related to the District's Geographic Information System(GIS). Following our meeting on February bah, we stopped all WRG and Sands work on the system(primarily data collection) and have not authorized any new work by the District's GIS consultant(Farallon Geographies)on the Blackhawk portion of the system. Since the system is a joint project of three agencies(the Blackhawk,Canyon Lakes and Wiedemann Ranch GHADs), the Blackhawk'GHAD is obligated to a share 45%of Farall€an's charges for data updates,web hosting fees,etc. through the end of the 2001/02 fiscal year. For the month of January,the Blackhawk GHAD's share of these costs was$2,505.55 (all consultant support—no WRG or Sands charges). Since all work on the system was stopped effective February Oh,the GHAD's obligations for February 2002 through June 2002 will be limited to 45 percent of the$1,000 per month web hosting fee or$450 per month. 1820 Bonanza Street,Suite 204 Walnut Creek,California 94596 (925)947-1966 FAX(925)947-3177 ...........Z March 14, 2002 Page 2 of 2 Expenditures through the end of December 2001 for the GIS/GPS system totaled approximately $26,500. We now estimate that charges to the Blackhawk CHAD for work on the GIS/GPS systems will total less than$32,000 for the entire 2001/02 fiscal year. Your request that we stop work on the update to the Plan of Control is noted. ENGEO has been tasked with development a draftdocument that we had hoped to be in a position to share with you and your Board within the next 30 to 60 days. Since the work has already been authorized, we do not think it would be appropriate to recommend any changes in the proposed Program Budget. I hope this information is helpful. If you have any questions or would like any additional information, please do not hesitate to write or call. I will provide our Board of Directors with copies of your correspondence as well as our responses prior to their scheduled March 26, 2002 meeting. Very Truly Yours, William R. Gray and Company, Inc., General Manager Blackhawk Geologic Ha d Abatement District By: William R. Gray 77 President WRG/kg cc: Blackhawk GHAD Director Donna Gerber, attn: Kathy Chiverton John Sweeten,County Administrator Maurice Shiu, Contra Costa County Public Works Director Melissa Morton, Contra Costa County Public Works G-.\Btackhawk\csonerar\correspondencc\Response to HOA 3-8-02 Itr.doc ............ Blackhawk GHAD Geologic Hazard Abatement District ®William R. Gray and Company.Inc. General Manager January 18, 2002 T4 (See attached Distribution List) FROM: William R. Gray and Company, Inc., General Manager Blackhawk Geologic Hazard Abatement District By: William R. Gray, President SUBJECT: Blackhawk Geologic Hazard Abatement District (GHAD) Enclosed with this memorandum is a proposed draft of the FY 2001/02 Program Budget detailing the various programs and activities of the GRAD during the year. In August of last year,the Board of Supervisors, sitting as the Board of Directors of the;, Blackhawk CHAD,approved a line item budget for the District. An initial draft of the proposed 2001/2002 Program Budget had been developed and circulated in late September of 2001. The GHAD subsequently became aware of a large landslide in the hillside above Conifer Terrace. Since the project is large and the repair will significantly impact CHAD reserves, the draft program budget was updated to 1)reflect the Sequoia/Conifer Repair project and 2) to reduce and/or defer previously anticipated expenditures in the Administrative and Preventative Maintenance;portions of the budget. The following is a comparison of proposed expenditures under the previous and current drafts of the proposedbudget: Sources Prior Draft Current Draft Beginning fund balance(7/1/2001) $1,996,527.71 $1,996,527.71 Anticipated income (all sources) 1,405,000.00 1,405,000.00 Total Available ' $3,401,527.71 $3,401,527.711 Uses Major Repairs $700,000.00 $2,325;000.00 Preventive Maintenance 254,000.00 200,000.00 Special Projects 75,000.00 88,000.00''' Administration 194,000.00 147,000.00 Total Uses $1,215,000.00 $2,760,000.00 Estimated ending fund balance(6/30/2002) $2,186,527.71 $641,527.71` 1820 Bonanza Street,Suite 204 Walnut Creek,California 94596 (925)947-1966 FAX(925)947-3177 ..........m ..................... January 18,2002 Page 2 of 2 As you can see from the chart, funding of projects under the District's Major Repair portion of the budget has increased significantly. This is due primarily to the addition of the Sequoia/ Conifer Repair project as well as two other smaller projects that the District has become aware of in the past few months. As proposed, construction on two of the District's proposed Major Repair projects(the Blackhawk Plaza wall repair and the Eagle Ridge Landslide Repair project) will be deferred to the FY 2002/03 year. It is important to note that while the proposed budget would defer construction of these two projects to the next fiscal year, funds to complete development of contract Plans,Specifications and Estimates (PS&E)has been retained in this budget proposal. Actual work on the projects would likely begin in late summer/early fall of this calendar year. The engineer's estimates for some of the other Major Repair Projects have been updated to reflect current cost estimates. In an attempt to mitigate some of the impact on CHAD reserves, relatively significant reductions are proposed under the Preventative Maintenance and Administrative portions of the budget. While we had hoped to be in a position this year to expand work under Preventative Maintenance Program, that effort will be deferred to at least the next fiscal year. Expenditures under the Special Projects portion of the budget would rise slightly under this proposal to reflect continued work on development of the Districts GIS/GPS program. This will also allow us to complete an inventory and evaluation of the various GRAD maintained facilities(B-58 ditches, piezometers, horizontal drains,etc.),which will allow us to refine the Districts' Preventative Maintenance program for the 2002/2003 fiscal year. As you will note, the proposed budget indicates that the balance in the District's reserves account will be reduced to approximately$640,000 on June 30, 2002. Our office will be recommending to the Board of Directors that we be authorized to work with the District's Treasurer(the County Auditor-Controller)to identify options with respect to borrowing should that become necessary to respond to an emergency before the reserves are restored to a more appropriate level. We are committed to working with representatives of the Blackhawk community on this matter and hope to be in a position to advise the Board of Directors as to our findings and recommendations on this issue by April 30,2002. The Board of Directors will consider the proposed FY 2001/02 Program Budget at one of their regularly scheduled meetings in February(the 12'h or the 26th). Please forward any comments, suggestions or concerns with respect to this proposed budget to our office and we will make sure that the Board is aware of them when they consider this proposal. We would be happy to meet with you, your Board or others with an interest in the GHAD and it's programs to review the proposed budget and/or address any concerns you might have with the proposal. If you have any questions or would like any additional information,please do not hesitate to call our office at(925)947-1966. enclosure cc: Board of Directors Maurice Shiu, Contra Costa Public Works Director FADATMOHAD filesFblackhawk\Adndoistration\AnnuaI and Quarterly Budget Rxporu\Budget-Expeuses FY 01-02uransnit draft budget for review.doc Blackhawk GHAD Geologic Hazard Abatement District ®William R. Gray and Company. Inc. Genera!Manager March 4 2002 Mr. Mark Goldberg Community Manager 4125 Blackhawk Plaza Circle, Suite 230 Danville,CA 94506 Dear Mark, Pursuant to your request at East weeks meeting with Bill Gray,enclosed is the Blackhawk Program Budget (FY 01-02)'that will be presented to the GHAD Beard of Directors on March 19 2002. Please don't hesitate to call if you have any questions. Very truly yours, William R. Gray and Company, Inc.,GeneralManager Blackhawk Geologic Hazard Abatement District "Karen 'Gleeson Project'Coordinator KG/ enclosure cc: Mike Sands, Sands Construction Company F:ADATA\GHAD files\Blwkhawk4Administration\Amnaf and Quarterly Budget RepotuNBudget-Expenses FY 01-=Trawtnit Program Budget to Mark 1820 Bonanza Street, Suite 204` Walnut Creek,California 94596 (925)947-1966 FAX(925)947-3177