Title
Adopt a Resolution Declaring that the Procedures for the Dissolution of the San Leandro Hillside Geologic Hazard Abatement District Failed and Declaring that Liability Remains With the District.
Staffreport
EXECUTIVE SUMMARY
On November 17, 2025, the San Leandro Hillside Geologic Hazard Abatement District (GHAD) Board adopted Resolution No. 2025-002, ordering dissolution of the GHAD following a public hearing and opportunity for property owner objections and making the requisite legal findings in compliance with Public Resources Code (“PRC”) Section 26567.1 et. seq. The dissolution was based on the grounds that without funding or assets, the GHAD cannot continue.
Under State law, an order of dissolution is not effective unless, within 90 days after adoption of the resolution, approval of the owners of more than 50 percent of the assessed valuation of the real property in the district is obtained. (PRC § 26567.1(b).) The required level of owner approval was not obtained, thus dissolution fails as a matter of law.
The GHAD has not levied or collected assessments and continues to exist in form without assets. Accordingly, the GHAD remains an active entity, and all existing, ongoing and future duties, statutory obligations, and legal liabilities remain with the GHAD despite the lack of funding to perform those responsibilities. The proposed Resolution finds that the dissolution efforts have failed and declares that the GHAD liability remains with the District.
RECOMMENDATIONS
Staff, acting as an agent for the GHAD, recommend that the GHAD Board adopt Resolution No. 2026-001 GHAD, finding that dissolution efforts pursuant to Public Resources Code Section 26567.1(b) failed, confirming that the GHAD remains an active entity with all existing, ongoing and future duties, statutory obligations, and legal liabilities remaining with the GHAD, and directing staff to provide required notice of its status.
BACKGROUND
The San Leandro Hillside Geologic Hazard Abatement District (GHAD) was established on November 8, 2000, to administer repairs to a landslide that resulted from the 1998 El Niño storm and to conduct ongoing maintenance and monitoring for 26 privately owned lots on Hillside Drive in the Bay-O-Vista area. The GHAD was established in part to allow the District to receive state and federal disaster relief funds for slope repair and stabilization on private property. Specifically, the establishing resolution and the Plan of Control provide that the GHAD will be initially funded by the City under state and federal grants, but once “exhausted, reduced or eliminated in the future, the GHAD’s services will also be eliminated or diminished accordingly.” The GHAD received FEMA grant funds that were used to fund the landslide restoration project. Acting as the GHAD’s agent, the City oversaw the design and construction of the landslide restoration project, which was completed in 2001. Remaining GHAD funds were then used to maintain slope and drainage systems within the GHAD’s property limits.
During the winter storm of 2022, two slope areas within the GHAD boundary experienced additional erosion requiring temporary stabilization measures to prevent further damage. Completion of this work exhausted the GHAD’s remaining funds, its only asset. With no further funding available, the GHAD could no longer carry out its responsibilities.
On October 6, 2025, the GHAD Board adopted Resolution No. 2025-001 initiating the proceedings for the dissolution of the GHAD and set a Public Hearing for November 17, 2025. For the dissolution proceedings to proceed, not more than 50% of the property owners, weighted by assessed valuation of real property, could object to the dissolution of the GHAD.
At the November 17, 2025, Public Hearing, less than 50% of the property owners, weighted by the assessed valuation of real property, objected to the dissolution. Based upon this, and upon making the requisite legal findings, the GHAD Board adopted Resolution No. GHAD 2025-002 by unanimous vote, ordering dissolution of the GHAD, subject to approval by the owners of more than 50 percent of the assessed valuation of real property in the District.
DISCUsSION
Under the California Public Resources Code, when a GHAD Board of Directors consists of members of the city council/legislative body, the order to dissolve the GHAD is not effective unless written approval of more than 50% of the property owners - weighted by assessed property valuation - is obtained within 90 days following adoption of the resolution ordering the dissolution. (PRC § 26567.1(b).)
Following the adoption of the resolution ordering the dissolution of the GHAD, staff diligently executed all efforts to issue and collect confirmation and objection documents from the District’s property owners. After the 90-day period, less than 50 percent of the property owners, weighted by assessed valuation of real property within the District, were in favor of the dissolution. Because the statutory requirements for dissolution under Public Resources Code Section 26567.1(b) were not satisfied, dissolution failed as a matter of law. Thus, the GHAD remains an active entity, and all ongoing and future maintenance duties, statutory obligations, and legal liabilities remain with the GHAD - the law is clear that they do not revert or transfer to the City. The City of San Leandro bears no direct liability or duty to fund GHAD operations out of General Funds, retaining its status purely as an administrative agent.
The GHAD has no landowner contributions, no trust funds or other assets, liquid or otherwise, in any form.
Financial Impacts
None. The Resolution makes the findings under law that the required votes were not achieved to confirm the Board’s request for dissolution as required under state law. The GHAD will continue to exist without funding, and all ongoing and future maintenance duties, statutory obligations, and legal liabilities remain with the GHAD.
ATTACHMENTS
A: RESOLUTION NO. 2026-001 GHAD
B: GHAD Presentation
PREPARED BY: Dane Rodgers, Senior Engineer, Public Works - Engineering Division