Old Highlands Homeowners Association Pavement Project

Project Overview:

The area known as Old Highlands Homeowners Association (OHHA) in the Hayward hills just east of the California State University East Bay campus, was annexed to the City in 1963. Some roads in that area still remain as private streets. Upon annexation, property owners are typically required to upgrade all facilities to City standards, including City streets, sanitary sewers, water lines and so on.

In 1967, sewer and water improvements were made through an assessment district that was approved by property owners. However, the streets in the area, which were in poor condition even then, were not brought up to City standards upon annexation. In 1972, a second assessment district for street improvements was halted by a property owner lawsuit claiming that the cost of improvements was too high. As the area has developed, at least 171 of the 297 parcels have had Deferred Street Improvement Agreements (DIA) recorded against them requiring certain street improvement to be constructed by the owners when directed by the City. 

Project Scope: 

City Staff met with the OHHA Board of Directors and agreed on tentative terms that were presented to property owners at an OHHA neighborhood meeting on January 18, 2018.   

Staff have outlined agreement terms with the OHHA Board for maintenance of all public roads within the OHHA boundary.  Agreement terms for roadway maintenance consist of the following main points:

  • The roadways require full depth reconstruction.  This reconstruction effort, including design, legal and financial consultants, City inspection, survey and administration staff costs and roadway reconstruction, is estimated to cost $5 million to $6 million.
  • City will provide the initial funding for improvements from the Capital Improvement Program over a period of five to six years. The City will improve one or two streets each year.  The OHHA Board will set construction priorities.  They have selected Cotati and Tribune as the streets to be reconstructed during the first year of this program.
  • OHHA property owners will reimburse the City for 50% of the cost incurred to reconstruct each road within the OHHA neighborhood.  
  • OHHA property owners will approve a financing mechanism that guarantees this reimbursement over a 20-year period. There are approximately 296 parcels within the OHHA boundary.  Each parcel may be assessed approximately $670 (per the preliminary cost estimate) per year for the improvements.*
  • The roadway improvements are intended to include pavement reconstruction only.  Very minor improvements to eliminate roadway water ponding may also be included.
  • The roadway improvements will not include curb and gutter, rolled curbs, storm drain inlets, street lighting or sidewalks.
  • The roadway improvements will follow the existing roadway footprint.  The intent is to construct a 20-foot wide one-way street and a 24-foot wide two-way street, unless existing obstructions prevent this from being implemented.  In the case of obstructions, the roadway will be narrowed.
  • The City will only improve roadways that are 100% public right-of-way.  The City’s surveyor will identify street sections that are currently private property.  The City’s surveyor will create a plat/legal description for these roadway segments.  Property owners will cause these roadway segments to be dedicated to the City as public right-of-way. 
  • All existing deferred improvement agreements will be voided upon OHHA property owner’s approval of a financing mechanism.
  • The City will not begin any work, except development of an Engineer’s Report for the proposed financing mechanism, until financing is approved by the OHHA property owners.  The Engineer’s Report will include a rough estimate of anticipated costs only with appropriate contingencies. 
  • The OHHA Board is responsible for all communications necessary to convince property owners to approve the financing mechanism and to dedicate private street areas for public right-of-way.
  • When construction is complete, the City will perform future maintenance of the roadways with available City funds as is possible as part of the City Pavement Rehabilitation Program.
*It was originally estimated the cost per property owner was to be approximately $600 per year per property owner, however, the preliminary cost estimate indicated that due to increasing construction cost, the estimated cost per year per property owner was revised to $665.50.

An Engineer’s Report has been prepared by SCI Consulting Group (SCI).  The Engineer’s Report proposes a new assessment to fund the cost to repave the roadways within the proposed district boundaries. The report is can be found below under related documents.

Timeline:

If the assessment district is passed by the property owners, the pavement improvement on the first streets in OHHA will begin with the City’s Annual Pavement Project in the Spring of 2021.  Two or three streets each year will receive pavement treatment until all of the street in OHHA are completed.  This is anticipated to take five to six years.

For additional information, questions or concerns, please contact: Deputy Public Works Director, Kathy Garcia at (510) 583-4786 or kathy.garcia@hayward-ca.gov

Upcoming Meetings:

Related Documents:

Dec. 17, 2020 Final Ballot Mailing

This ballot is for the property owners of the parcel(s) identified below by Assessment Parcel Numbers (APN) and are located within the proposed Old Highlands Area Road Improvement Assessment District, in the City of Hayward.

Dec. 8, 2020 Hayward City Council Meeting:

Adopt Resolutions Initiating Proceedings Pursuant to Streets and Highways Code Sec. 1160 et seq., Providing Intention to Levy Assessments for FY 2022, Preliminarily Approving the Engineer’s Report and Providing for Notice of Prop. 218 Hearing for Old Highlands Pavement Improvements, and Adoption of a Resolution Adopting Prop. 218 Assessment Ballot Procedures

Oct. 10, 2020 Hayward City Council Meeting: 

Adopt a Resolution of Intention to Establish the Old Highlands Benefit Assessment District to Levy and Collect Assessments for Street Improvements; Ordering the Preparation of an Engineer’s Report; and Setting a Time and Place for Prop. 218 Hearing (Report from Public Works Director Ameri)