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W WI LLDAN Financial S6rviGgS B. Mitigation and Monitoring Mitigation of the Heron Bay project was accomplished by construction of wetlands, tidal wetlands, and upland or high ground for wildlife habitat. In order to verify that the habitat is healthy and in order to identify maintenance requirements a monitoring report is prepared annually. For Fiscal Year 2013/14 a monitoring report will be prepared by a consultant and funded by the District. C. District Reserve Fund A Maintenance Reserve Fund is maintained by the District in the amount of $300,000 to fund capital improvements and unexpected or emergency repairs. There have not been any withdrawals from the reserve fund this past fiscal year and none are anticipated for the coming fiscal year. D. Capital Improvement Projects Levee Maintenance 2014-15 The nature of the levees that protect the Heron Bay marshland is such that they require periodic maintenance; specifically, the heavy stone rip rap that prevents erosion shifts, settles, or washes away and needs to be replaced. This work is most efficiently done by an outside contractor in large quantities. In fiscal year 2009-10 the Heron Bay Levee Maintenance account was established. Provided that there are funds available, the District will contribute to the account each year. The District has contributed $350,000 towards the maintenance of the levee, which appears sufficient to address areas of the levee City staff has identified that need to be repaired. Any unused funds will be returned to the District. City staff through a consultant is in the process of obtaining permits from various regulatory agencies in preparation of constructing the levee sections identified for repair. At the same time, City staff has started preparing the construction documents for the repair. Upon the issuance of the necessary permits, City staff on behalf of the District will bid and contract for the construction of the repairs. Based on past experience from the last levee repair, in the same general vicinity, and without any unforeseen delays, it is anticipated that construction window to be allowed by the permitting agencies will be sometime in late Summer into early Fall of 2014. Entryway Landscape The landscape at the entrance to the development along Lewelling Blvd, between Wicks Blvd and the roundabout will be scheduled for rehabilitation/replacement in Fiscal Year 2013-14, as part of the overall improvement to the Entryway to Heron Bay District. City Staff is working with Stopwaste.org to investigate the possibility of receiving grant funds to offset portions of the landscape upgrade, with the intent of utilizing Bay Friendly Landscape Guidelines. City of San Leandro Heron Bay Maintenance Assessment District No. 96-3 Page 5