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Home My Public Portal About20010101 - Agenda Packet - Board of Directors (BOD) (17) Midpeninsula Regional Open Space District Meeting 11-03 SPECIAL AND REGULAR MEETING BOARD OF DIRECTORS MIDPENINSULA REGIONAL OPEN SPACE DISTRICT AND MIDPENINSULA REGIONAL OPEN SPACE DISTRICT FINANCING AUTHORITY 330 Distel Circle Los Altos,California Wednesday,January 26, 2011 CLOSED SESSION MEETING OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT BEGINS AT 5:30 P.M. REGULAR MEETING OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT BEGINS AT 7:00 P.M. *SPECIAL MEETING OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT FINANCING AUTHORITY BEGINS AT 8:00 P.M. AGENDA SPECIAL MEETING 5:30 SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT— CLOSED SESSION ROLL CALL 1. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Significant exposure to litigation pursuant to subdivision(b)of Section 54956.9: One(1)potential case 2. CONFERENCE WITH LABOR NEGOTIATORS Agency designated representatives: Deborah Glasser-Kolly,General Manager Steve Abbors, Administrative Services Manager Kate Drayson, Human Resources Analyst Annetta Spiegel, Human Resources Technician Sonya Siebe,Operations Manager David Sanguinetti,and Accounting Specialist Bunny Congdon Employee Organization: Midpeninsula Regional Open Space District Field Employees' Association and Unrepresented Employees: Administrative,Office and Supervisory Employees REGULAR MEETING 7:00 REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT— PUBLIC SESSION ROLL CALL REPORT ON RETURN FROM CLOSED SESSION(The Board shall publicly state any reportable action taken in Closed Session pursuant to Government Code Section 54957.1) ORAL COMMUNICATIONS-PUBLIC SPECIAL ORDERS OF THE DAY Adoption of Resolution Honoring the Retirement of Pat O'Brien,General Manager of East Bay Regional Park District ADOPTION OF AGENDA 7:05 CONSENT CALENDAR 1. Approve Minutes of the Regular and Special Board Meetings—December 8, 2010 and December 9, 2010 2. Approve Revised Claims Report 3. Approve Written Communications—None 4. Annual Dedication Report—S. Sommer 5. Appointment of Regular and Alternate Representatives to the Ca1JP1A Board of Directors—S. Abbors 7:10 BOARD BUSINESS 6. Appointment of Standing and Ad Hoc Board of Directors Committee Members for Calendar Year 2011 — Board President 7. Appointment of District Representatives to the Governing Board of the Midpeninsula Regional Open Space District Financing Authority—Board President 8. Award of Contract to complete Remediation Design and perform Construction Oversight for the Remediation of Mercury Mine Waste at Hicks Flat within Sierra Azul Open Space Preserve—M. Baldzikowski 9. Legislative Program for FY2011-12—R.Jurgensen ADJOURNMENT TO MIDPENINSULA REGIONAL OPEN SPACE DISTRICT FINANCING AUTHORITY MEETING 8:00 SPECIAL MEETING OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT FINANCING AUTHORITY -PUBLIC SESSION 1. Confinnation of the Officers of the of the Midpeninsula Regional Open Space District Financing Authority for Calendar Year 2011 —S.Abbors 2. Acceptance of the Authority Controller's Annual Financial Report of the Midpeninsula Regional Open Space District Financing Authority—M. Foster 8:20 RECONVENE TO THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT-PUBLIC SESSION INFORMATIONAL REPORTS—Reports on compensable meetings attended. Brief reports or announcements concerning activities of District Directors and staff;opportunity to refer public or Board questions to staff for factual information;request staff to report back to the Board on a matter at a future meeting;or direct staff to place a matter on a future agenda. A. Committee Reports B. Staff Reports C. Director Reports ADJOURNMENT Times are estimated and items may appear earlier or later than listed.Agenda is subject to change of order. TO ADDRESS THEBOARD: The Chair will invite public comment on agenda items at the time each item is considered by the Board of Directors. You may address the Board concerning other matters(lit ring Oral Communications. Each speaker will ordinarily be limited to three minutes.Alternately,you may comment to the Board by a written communication, which the Board appreciates. Consent Calendar:All items on the Consent Calendar may be approved without discussion by one motion. Board members, the General Manager, and members of'the public may request that tin item be removed from the Consent Calendar during consideration of the Consent Calendar. In compliance with the Americans with Disabilities Act,if you need assistance to participate in this meeting,please contact the District Clerk at(650)691-1200. Notification 48 hours,prior to the meeting will enable the District to make reasonable arrangements to ensure accessibility to this meeting. Written materials relating to an item on this Agenda that are considered to be a public record and are distributed to Board members less than 72 hours prior to the meeting,will be available for public inspection at the District's Administrative Office located at 330 Distel Circle,Los Altos,California 94022. CERTIFICATION OF POSTING OF AGENDA [,Michelle Radcliffe,District Clerk for the Midpeninsula Regional Open Space District(MROSD),declare that the foregoing amended agenda for the Special and Regular Meeting of the MROSD Board of Directors and the Special Meeting of the District Financing Authority was posted and available for review on January 21,2011,at the Administrative Offices of MROSD,330 Distel Circle,Los Altos California,94022, The agenda is also available on the District's web site at http-,,www.ol)enspace org. Signed this 21 st day of January,at Los Altos,California. 11-�� Q.Y.9;%L District Clerk January 21,2011 Claims No. 11-02 Meeting 11-03 Date 1/26/11 Midpeninsula Regional Open Space District # Amount Name Description 14336 $18,937.88 Ascent Environmental CEQA/NEPA Document Preparation&Support For Mt. Umunhum Site Planning 14337 $7,720.79 *1 La Honda-Pescadero Unified School Tax Compensatory Fee-Coastside Protection Program District 14338 $7,549.66 Sol's Mobile Service Vehicle Maintenance&Repairs 14339 $6,710.15 Jakaby Engineering Engineering Services-Design&Oversight Of Methuselah Bridge And Initial Evaluation 14340 $5,214.06 Ecological Concerns Native Revegetation Maintenance&Monitoring-Skyline Ridge Tree Farm 14341 $5,056.10 Hertz Equipment Rental Equipment Rental-Excavator For Pulgas Ridge Tree Removal/ Roller Rental For Work At Montebello Road, Red Barn&Skyline Ridge Parking Lot 14342 $5,000.00 Hulberg&Associates Appraisal Services-Silva Property 14343 $4,277,66 Pacific Legacy Beatty Property Archeological Assessment 14344 $3,768.00 County Of Santa Clara-Registrar Of Costs To Fill Vacant Seats By Appointment For Wards 1,2&5 Voters 14345 $2,940.66 Pacific Legacy Bear Creek Stables Archeological Assessment 14346 $2,899.27 Patsons Media Group Printing Services-Fremont Older Trail Brochures 15000 Envelopes 14347 $2,829.87 "2 County Of San Mateo Fire Service Fee-Coastside Protection Program 14348 $2,650.00 MCB Remodeling Replace Main Window At Stevens Canyon Ranch House 14349 $2,238.75 Concern Employee Assistance Program Quarterly Fee 14350 $2,150.00 MCB Remodeling Ceiling Repair-Rental Residence 14351 $1,950.00 Cagwin&Dorward Sprinkler Repair-AO 14352 $1,540.82 Ergoworks Ergonomic Equipment&Desk 14353 $1,461.50 Liebert Cassidy Whitmore Legal Services-Labor Negotiations 14354 $1,286.25 Restoration Design Group Site Planning Services For Mt. Umunhum 14355 $1,260.00 Hazard Management Services Hazardous Materials Surveys&Updates At Mt. Umunhum 14356 $1,004.50 Timothy C. Best,CEG Road&Trail Inventory And Assessment-Sierra Azul 14357 $866.16 Americas Propane-Rental Residences 14358 $852.82 Kwik Key Lock&Safe Company Locks For Silva Property 14359 $792.06 Forestry Suppliers Chainsaw Packs&Accessories/GPS Cases 14360 $754.00 Statcomm Repair&Service Electric Gate At RSA 14361 $655.50 Global Steel Fabricators Hinges For Seasonal Puncheon At Thornewood 14362 $630.00 Hazard Management Services Lead&Asbestos Testing For Dyer Garage 14363 $613.99 Summit Uniforms Uniform Expenses 14364 $600.00 Heather Heights Road Association 2010 Road Dues 14365 $576.46 HSBC Business Solutions Impact Sockets 14366 $517.30 CMK Automotive Vehicle Maintenance&Repairs 14367 $502.99 Pape' Machinery Tractor Supplies 14368 $479.61 Reed&Graham Materials For Trail Turnpike At RSA 14369 $475.33 San Jose Water Company Water Service-RSA 14370 $465.00 Stevens Creek Quarry Drain Rock For Puncheon At RSA 14371 $310.00 Lenin ton Kirk Reimbursement-Mileage e 9 14372 $305.63 Priority 1 Public Safety Equipment Map Light Replacement&Connect Strobe Power Supply 14373 $293.93 California Water Service Company Water Service-Rental Residences,Windy Hill&FFO 14374 $264.39 Craftsmen Printing Printing Services-Business Cards 14375 $252,50 Ruiz,Ana Reimbursement-Cell Phone&Mileage j 14376 $240.35 Barron Park Supply Plumbing Supplies For FFO Restroom Repairs 14377 $225.00 Shelton Roofing Company Roof Repair-Rental Residence 14378 $187.67 Green Waste Garbage Service-SFO 14379 $185.00 "3 United States Postal Service Fee To Establish Business Reply Mail Account Page 1 of 2 Claims No. 11-02 Meeting 11-03 Date 1/26/11 Midpeninsula Regional Open Space District # Amount Name Description 14380 $180.04 Turf&industrial Equipment Company Tractor Supplies-Hydraulic Oil 14381 $175.13 Allied Waste Services Garbage Service-Rental Residences 14382 $173.31 Lampson Tractor Tractor Service&Repair 14383 $166.74 Great Printing&Copies Printing Services-El Sereno Brochure&Map 14384 $125.10 State Board Of Equalization Diesel Fuel Tax 14385 $119.00 Coastal Sierra Internet Service-SFO 14386 $100.00 Malone, Brian Reimbursement-Cell Phone 14387 $82,23 Graniterock Rock For Lower Windy Hill Parking Lot 14388 $81.60 West Payment Center Legal Research Fees 14389 $78.61 Orlandi Trailer Trailer Supplies 14390 $72.00 Andersen,Julie Reimbursement-Society Of American Foresters Membership 14391 $59.28 McKowan, Paul Reimbursement-Volunteer Supplies 14392 $55.00 Trailmaster Trail Counter Repair 14393 $54.99 Big Creek Lumber Concrete For No Parking Signs 14394 $53,15 G.P. Sports Oil&Filter For ATV 14395 $48.85 Tooland SFO Shop Tools 14396 $33.88 Cascade Fire Equipment Company Fire Pumper Supplies 14397 $28.41 Perez,Mike Reimbursement-Uniform Expense 14398 $25.25 Rayne Of San Jose Water Service-Fremont Older 14399 $19.25 ID Plus Name Tag For Employee 14400 $16.00 American Red Cross CPR Certifications 14401 $14.67 Royal Brass Field Supply 14402 $12.71 Madco Welding Supply 14403 $11.72 O'Reilly Auto Parts Vehicle Supplies 14404 $9.06 Los Altos Hardware Field Supplies 14405 $7.36 Grand Prix Brake Spring For ATV Total $101,294.95 `1 Urgent check issued 1/13/11 `2 Urgent check issued 1/13/11 '3 Urgent check issued 1/20/11 i i I Page 2 of 2 III Claims No. Meeting Date January 26, 2011 Revised Midpeninsula Regional Open Space District # Amount Name Description 1 $18,937.88 Ascent Environmental CEQA/NEPA Document Preparation&Support For Mt. Umunhum Site Planning 2 $7,720.79 "1 La Honda-Pescadero Unified School Tax Compensatory Fee-Coastside Protection Program District 3 $7,549.66 Sol's Mobile Service Vehicle Maintenance&Repairs 4 $6,710.15 Jakaby Engineering Engineering Services-Design&Oversight Of Methuselah Bridge And Initial Evaluation 5 $5,214.06 Ecological Concerns Native Revegetation Maintenance&Monitoring-Skyline Ridge Tree Farm 6 $5,056.10 Hertz Equipment Rental Equipment Rental-Excavator For Pulgas Ridge Tree Removal/ Roller Rental For Work At Montebello Road, Red Barn&Skyline Ridge Parking Lot 7 $5,000.00 Hulberg&Associates Appraisal Services-Silva Property 8 $4,277.66 Pacific Legacy Beatty Property Archeological Assessment 9 $3,768.00 County Of Santa Clara-Registrar Of Costs To Fill Vacant Seats By Appointment For Wards 1,2&5 Voters 10 $2,940.66 Pacific Legacy Bear Creek Stables Archeological Assessment 11 $2,899.27 Patsons Media Group Printing Services-Fremont Older Trail Brochures/5000 Envelopes 12 $2,829.87 '2 County Of San Mateo Fire Service Fee-Coastside Protection Program 13 $2,650.00 MCB Remodeling Replace Main Window At Stevens Canyon Ranch House 14 $2,238.75 Concern Employee Assistance Program Quarterly Fee 15 $2,150.00 MCB Remodeling Ceiling Repair-Rental Residence 16 $1,950.00 Cagwin&Dorward Sprinkler Repair-AO 17 $1,540.82 Ergoworks Ergonomic Equipment&Desk 18 $1,461.50 Liebert Cassidy Whitmore Legal Services-Labor Negotiations 19 $1,286.25 Restoration Design Group Site Planning Services For Mt. Umunhum 20 $1,260.00 Hazard Management Services Hazardous Materials Surveys&Updates At Mt. Umunhum 21 $1,004.50 Timothy C. Best,CEG Road&Trail Inventory And Assessment-Sierra Azul 22 $866.16 AmeriGas Propane-Rental Residences 23 $852.82 Kwik Key Lock&Safe Company Locks For Silva Property 24 $792.06 Forestry Suppliers Chainsaw Packs&Accessories/GPS Cases 25 $754.00 Statcomm Repair&Service Electric Gate At RSA 26 $655.50 Global Steel Fabricators Hinges For Seasonal Puncheon At Thornewood 27 $630.00 Hazard Management Services Lead&Asbestos Testing For Dyer Garage 28 $613.99 Summit Uniforms Uniform Expenses 29 $600.00 Heather Heights Road Association 2010 Road Dues 30 $576.46 HSBC Business Solutions Impact Sockets 31 $517.30 CMK Automotive Vehicle Maintenance&Repairs 32 $502.99 Pape' Machinery Tractor Supplies 33 $479.61 Reed&Graham Materials For Trail Turnpike At RSA 34 $475.33 San Jose Water Company Water Service-RSA 35 $465.00 Stevens Creek Quarry Drain Rock For Puncheon At RSA 36 $310.00 Lenington, Kirk Reimbursement-Mileage 37 $305.63 Priority 1 Public Safety Equipment Map Light Replacement&Connect Strobe Power Supply 38 $293.93 California Water Service Company Water Service-Rental Residences,Windy Hill&FFO 39 $264.39 Craftsmen Printing Printing Services-Business Cards 40 $252.50 Ruiz,Ana Reimbursement-Cell Phone&Mileage 41 $240.35 Barron Park Supply Plumbing Supplies For FFO Restroom Repairs 42 $225.00 Shelton Roofing Company Roof Repair-Rental Residence 43 $187.67 Green Waste Garbage Service-SFO 44 $185.00 "3 United States Postal Service Fee To Establish Business Reply Mail Account Pago 1 of 3 Claims No. Meeting Date January 26, 2011 Revised Midpeninsula Regional Open Space District # Amount Name Description 45 $180.04 Turf&Industrial Equipment Company Tractor Supplies-Hydraulic Oil 46 $175.13 Allied Waste Services Garbage Service-Rental Residences 47 $173.31 Lampson Tractor Tractor Service&Repair 48 $166.74 Great Printing &Copies Printing Services-El Sereno Brochure&Map 49 $125.10 State Board Of Equalization Diesel Fuel Tax 50 $119.00 Coastal Sierra Internet Service-SFO 51 $100.00 Malone, Brian Reimbursement-Cell Phone 52 $82.23 Graniterock Rock For Lower Windy Hill Parking Lot 53 $81.60 West Payment Center Legal Research Fees 54 $78.61 Orlandi Trailer Trailer Supplies 55 $72.00 Andersen, Julie Reimbursement-Society Of American Foresters Membership 56 $59.28 McKowan, Paul Reimbursement-Volunteer Supplies 57 $55.00 Trailmaster Trail Counter Repair 58 $54.99 Big Creek Lumber Concrete For No Parking Signs 59 $53.15 G.P. Sports Oil&Filter For ATV 60 $48.85 Tooland SFO Shop Tools 61 $33.88 Cascade Fire Equipment Company Fire Pumper Supplies 62 $28.41 Perez, Mike Reimbursement-Uniform Expense 63 $25.25 Rayne Of San Jose Water Service-Fremont Older 64 $19.25 ID Plus Name Tag For Employee 65 $16.00 American Red Cross CPR Certifications 66 $14.67 Royal Brass Field Supply 67 $12.71 Madco Welding Supply 68 $11.72 O'Reilly Auto Parts Vehicle Supplies 69 $9.06 Los Altos Hardware Field Supplies 70 $7.36 Grand Prix Brake Spring For ATV 71 R $4,800.00 Mountain Man Wood Company Removal Of Hazardous Trees At Coal Creek&Rental Residence 72 R $2,000.00 Conservation By Design Deposit-District Wide Interpretive Plan 73 R $1,449.90 '4 First National Bank Survey Monkey Subscription/San Francisco Chronicle E- Subscription/Newspaper Advertisements For Mt. Umunhum Meeting 74 R $1,435.74 "4 First National Bank Field Supplies/Supplies For SFO Area Water Systems/Five ATV Helmets/Battery Tender&Adaptors/Portable Restroom Trailer Supplies 75 R $1,341.80 Office Depot Office Supplies/Work Planners/Dry Erase Board/Copy Paper/ Cartridges For Label Maker/Business Card Scanner/Staplers- Electric&Manual 76 R $1,255.61 Inside Source Balance-Office Furniture&Shelving For Assistant General Council Office 77 R $1,087.03 Tooland Band Saw 78 R $1,000.00 Neofunds By Neopost Postage 79 R $923.00 "4 First National Bank Conferences&Training Expenses-OSHA Training/Labor Relations Training 80 R $841.83 -4 First National Bank Business Related Meals-Board Meetings/Mt. Umunhum Open House/ABC Meeting/Operations Meeting 81 R $840A6 '4 First National Bank Office Supplies/Label Maker&Labels/Intercom Phone Pager For SFO/Staff Recognition Photo&Framing/Staple Gun/Tab Dividers 82 R $630.96 "4 First National Bank Late Fees&Finance Charges-To Be Reversed On Next Months Statements 83 R $455.96 Monster Mechanical HVAC Service&Repairs-AO 84 R $440.11 '4 First National Bank Uniform Expenses Page 2 of 3 Claims No. Meeting Date January 26, 2011 Revised Midpeninsula Regional Open Space District # Amount Name Description 85 R $407.53 *4 First National Bank Computer Expenses/Docking Stations For Notebooks/Hard Drive/Computer Speakers/Network Cable/USB Flashdrive 86 R $391.00 Santa Clara Unified School District Transportation Assistance Program-Transportation For Spaces &Species Field Trip 87 R $383.03 Sears Tools For RSA 88 R $274.00 *4 First National Bank Membership Dues-California Invasive Plant Society/Society For Ecological Restoration/California Native Grass Association/The Wildlife Society/California Invasive Plant Council 89 R $265.49 Petty Cash Vehicle Mileage, Parking&Carwashes/Office Supplies-Copy Paper,Binders,Calendars/Membership Dues-Park Ranger Association Of California/Field Supplies/Volunteer Supplies 90 R $199.53 *4 First National Bank Volunteer/Docent Events&Supplies-Volunteer Recognition Event Raffle Gift/Outdoor Education Leader End Of Season Meeting Expenses 91 R $150.65 *4 First National Bank Internet For FFO/Email Service Provider For Sending Email Blasts 92 R $119.98 *4 First National Bank Satellite Battery Pack 93 R $110.31 Mission Trail Waste Systems Garbage Service-AO 94 R $110.00 California Society Of Municipal Annual Membership Fee Finance Officers 95 R $103.83 FedEx Shipping Charges 96 R $80,21 Staples Office Supplies-Label Protectors,Pens, Index Cards 97 R $76.46 The Workingman's Emporium Uniform Expense 98 R $58.39 Ison, Gloria Reimbursement-Retirement Gift For General Manager Of Santa Clara County Open Space Authority 99 R $50.00 *4 First National Bank Notice Of Exemption Filing Fee For Silva Property Total $122,577.76 *1 Urgent check issued 1/13/11 *2 Urgent check issued 1/13/11 *3 Urgent check issued 1/20/11 *4 Urgent check issued 1/7/11 The total amount for First National Bank is$7,763.69 Page 3 of 3 i Midpeninsula Regional • ' Open Space District R-11-12 Meeting 11-02 January 26, 2011 AGENDA ITEM 4 AGENDA ITEM Annual Dedication of Certain District Lands and Dedication Status Report GENERAL MANAGER'S RECOMMENDATION Adopt the attached Resolution dedicating interests in certain specified District lands for public open space purposes. SUMMARY Once each year, the Midpeninsula Regional Open Space District (District) selects certain properties and interests in land for dedication. Dedicated properties are, in effect, permanently protected. By so doing, the District voluntarily eliminates its ability to sell or otherwise convey those properties without voter consent, except under very narrow circumstances. These narrow statutory exceptions permit exchanges of dedicated land of equal or greater open space value not exceeding 40 acres in a calendar year, and the transfer of land to another government agency on Of the 59216 acres condition that the land continue to be protected as open space in perpetuity. , �hts that prevent these lands from being property rights g b the District 2 045 acres include ro �, p preservedy , p p Y dedicated, such as leases and management agreements, leaving 57,171 acres of marketable interests in land. Of this amount, 37,502 acres (66%) are dedicated and 19,669 acres (34%) are 7 approximately 1 118 ' ted. Upon adoption of the attached resolution dedicating app y , undedicated. P p additional acres as recommended in this report, 38,620 acres (68%) of marketable acres will be dedicated and 1.8,551 acres (32%) will be undedicated. DISCUSSION The distinction between dedicated and undedicated District land is best understood in the context of the District's enabling legislation, Public Resources Code Section 5540, which provides in part that"A district may not validly convey any interest in real property actually dedicated and used for park or open space, or both, purposes without the consent of a majority of voters..." Since the District's formation, its Board of Directors has, by adopted policy, followed the practice of expressly dedicating lands for open space purposes on an annual basis by Board resolution after receipt of an evaluation of the suitability of the lands for dedication at that time. Retaining certain lands in undedicated status affords maximum flexibility to proactively preserve threatened open space resources, negotiate real estate transactions, resolve encroachments and boundary disputes, undertake preserve planning, and enter into government funding partnerships. R-11-12 Page 2 In this way, the District preserves its creative ability to acquire land and assemble open space preserves in a manner that best serves the public, while avoiding unnecessary waste of public tax dollars. In accordance with the Board's Dedicated Lands Policy as last amended January 22, 1986 (see Report R-86-03), "Normally, undedicated lands within the District's boundaries will be held for future dedication to park or open space, or both purposes, but only after the necessary planning, boundary adjustments, provision for permanent access and other possible changes in configuration, which may involve the disposal or exchange of interests in all or portions of such lands, have been completed." Per the Dedicated Lands Policy, an Annual Report indicating the status of District lands as dedicated or undedicated is to be presented in December or January of each year, and formal dedications are made by the Board of Directors based on the recommendations put forth in the annual report. During the year, the Board's use and management planning process for each specific parcel or preserve includes a determination whether to indicate an intention to dedicate certain interests in land, such as fee title or easements. Note that although a motion of intent to dedicate might be adopted when the Preliminary Use and Management Plan for a new land purchase is approved, this does not mean that the property would necessarily be dedicated the following December, because it is usually prudent to wait until the Master Plan or Comprehensive Use and Management Plan for the entire Preserve is adopted or reviewed. Another factor to consider is whether a partner granting agency, such as the California Coastal Conservancy, has required the District to dedicate a grant funded property as a condition of a grant. Dedication Status Summary The attached Dedication Status Summary Report gives a summary of the current dedication status of District preserves. Only those parcels for which transactions have closed escrow and title has passed to the District on or before December 31, 2010 are included in the acreage totals. The interests in land that the District holds; i.e. fee title, easement, or other (lease, management agreement, etc), are listed for each category. Rights of first refusal and/or reversions to the District are not included. The District holds interests in 59,216 acres of land; made up of 54,350 acres in fee, and 4,866 acres in lesser interests. The District added 980 acres in fee and 252 acres of lesser interests since November 11, 2009. Recommended Dedications (see maps) The recommended dedications are a result of staff s site-specific analysis of issues, such as planning status, use, appropriate preserve boundary configuration, access and other relevant factors. As a result of this analysis, staff has concluded that it is appropriate to dedicate the following lands: Bear Creek Redwoods Open Space Preserve (OSP) With the recent purchase of the Holmes property, the lands suitable for open space conservation in the upper reaches of this preserve have been secured. The balance of the preserve is dedicated, with the exception of the former Hunt property which may need future lot reconfiguration. The former Presentation Center property south of Highway 35 in Santa Cruz County was purchased with Coastal Conservancy assistance, and is subject to an offer to dedicate in the Conservancy's favor. Thus, staff recommends dedicating 135 acres of Bear R-11-12 Page 3 Creek Redwoods OSP, leaving only the Hunt property and several minor interests undedicated. Coal Creek Open Space Preserve As part of the MacFarlane/Beckey (Fogarty) settlement negotiations, the District agreed to dedicate this five acre parcel formerly held under conservation easement by the Peninsula Open Space Trust. Now that the lot line adjustment is complete, dedication is appropriate. Sierra Azul Open Space Preserve The dedicated lands in Sierra Azul OSP are primarily located in the Kennedy-Limekiln Area. In 2008, the District purchased the former Beatty property as an addition to the Kennedy- Limekiln Area with funding assistance from the Santa Clara County Parks Charter Fund. Santa Clara County holds a conservation easement on the property. Moreover, the former Beatty property is surrounded on three sides by public land managed as Lexington County Park, and on the other side by the San Jose Water Company lands. For all these reasons, dedication is appropriate. With the December 2010 purchases of the former Price and Eagle View properties, lands suitable for conservation in the lower Cathedral Oaks Area have been secured. Virtually all the land in the area is owned by the District or San Jose Water Company, with the exception of two small inholdings. Accordingly, staff recommends dedicating most of the District land in the area. Staff also recommends continuing to withhold the former Cothran and Hubenette properties to allow for encroachment resolution, staging area planning flexibility, and time to obtain the remaining fractional property interest. Recommendations for Later Dedication The majority of the District's undedicated land falls within the two open space preserves: 3,758 acres at La Honda Creek Open Space Preserve, and 13,064 acres at Sierra Azul Open Space Preserve (not including the 978 acres at Sierra Azul OSP recommended for dedication this year). Master Plans for these preserves were underway, but are now deferred. The Mt. Umunhurn cleanup and public access project could potentially affect dedication preferences in the Mt. Umunhurn Area of Sierra Azul OSP. Staff recommends deferring the remaining dedications until the timing of the preserve master plans has been clarified and until the Mt. Umunhum project is further developed. FISCAL IMPACT There are no costs associated with dedication. PUBLIC NOTICE Notice was provided pursuant to the Brown Act. No additional notice is necessary. CEQA COMPLIANCE No compliance is required as this action is not a project under CEQA. NEXT STEPS None R-11-12 Page 4 Attachments 1. Resolution 2. Dedication Status Summary Report 3. Maps Prepared by: Sandy Sommer, Senior Real Property Planner Contact person: Same as above Graphics prepared by: Alex Roa, GIS Intern, Technician RESOLUTION NO. I I-XX RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT DEDICATING INTERESTS IN CERTAIN DISTRICT LANDS FOR PUBLIC OPEN SPACE PURPOSES The Board of Directors of the Midpeninsula Regional Open Space District does hereby resolve as follows: Pursuant to Resolution No. 86-6, the Board of Directors does hereby dedicate for public open space purposes (pursuant to Public Resources Code Section 5540) the interests in land held by the District shown herein, except for density credits on such lands, if any. Board Approval Closing Property Open Space Preserve Grantor Date Date Acreage Interest Bear Creek Redwoods Holmes, Mildred 11/10/2010 11/18/2010 86.00 Fee Bear Creek Redwoods Presentation Center 7/9/2003 8/7/2003 48.99 Fee Bear Creek Redwoods Sampson, P. 11/17/2008 11/18/2008 0.20 Fee Coal Creek MacFarlane/Beckey 2/28/2007 3/31/2010 5.07 Fee Sierra Azul, Kennedy-Limekiln Area Beatty Trust 1/16/2008 4/18/2008 56.88 Fee Sierra AZLII,Cathedral Oaks Area Bean 11/8/1988 11/17/1988 40.00 Fee Sierra Azul,Cathedral Oaks Area Boehm 9/24/200') 10/3)1/2003 39.29 Fee Sierra Azul, Cathedral Oaks Area Curto 8/25/2004 9/30/2004 160.00 Fee Sierra Azul,Cathedral Oaks Area Delia Maggiore 1/16/2008 9/26/2008 1.00 Fee Sierra Azul,Cathedral Oaks Area Distefano 7/12/1989 7/27/1989 41.79 Fee Sierra Azul,Cathedral Oaks Area Eagleview 12/8/2010 12/28/2010 80.00 Fee Sierra Azul,Cathedral Oaks Area Faucher 6/10/1998 8/14/1998 833.52 Fee Sierra Azul,Cathedral Oaks Area Fidelity National Title 3/25/1987 2/21/1989 78.00 Fee Sierra AZL11,Cathedral Oaks Area General Convention 6/14/2000 8/31/2000 161.70 Fee Sierra Azul,Cathedral Oaks Area Price 12/8/2010 12/30/2010 24.00 Fee Sierra AM, Cathedral Oaks Area Santa Clara Co. (La ine) 8/12/2009 2/25/2010 41,70 Fee Sierra AM, Cathedral Oaks Area Sardi 10/14/1998 11/13/1998 13.10 Fee Sierra Azul, Cathedral Oaks Area Secret Springs WaterCo. 7/8/1987 8/7/1987 114.95 Fee Sierra AM, Cathedral Oaks Area Williams 8/9/2000 9/15/2000 41.75 Fee TOTAL 1,117.94 Dedication Status Summary Report _ue_asea-n,� 76o�Inb.- 041.1 Fee,Easements and Other Fee Acreage Easements on Private Land Easements on Public Land I------- I Manage- 1 tion Only Interest merit Intended _D_ i d.caled Pnded�,ca'l ed ed Dedicated de_Dedcalad FUnd.dcal-j Total Fbe�d FL�n dic�t Dedicated ndedicat- Pmse�e Intended Acres ed I i ,P� Acres ed Acres I Bear Creek Redwoods 1,219.96 211.73 1,431.69 1,219,96 209.80 209.49 1 OM 1.93 1.20 0.00 0.00 0.00 0.00 0.00 0,00 Briggs Creek 0.00 1.00 1.00 0.00 1.00 0.00 11 0.00 0.00 0.00 0.00 0.00 0.00 0.00!: 0.00 0.00 Coal Creek 502.11 6.27 508.381 502.11 5.07 5.07 0.00 Uo 0.00 0.00 U.00 0.00 0.001 0.00 1 1,20 Costanoan Way 0.00 0,00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Edgewood County Park 468.00 0.00 468.00 0.00 0.00 0.00 1 0.00 OM 0.00 468.00 0.00 0.00 0.001 0.00 0.00 El Corte de Madera Cre 2,812.79 180 2,816.591 2,812-79 3.80 0.00 0.00 0.00 0.00 0.00 0.00 OM 0.00i 0,00 1 0.00 El Sereno 1,392,95 21.67 1,414.62 1,392.83 20.63 0.00 0.12 0.35 0.00 0.00 0.00 0.00 0.001 0.00 0.69 Felton Station OM 4121 43.21 0.00 4121 0.00 0.00 0.00 000 0.00 0,00 0.00 0.001 0.00 0.00 1 Foothills 211.28 0.40 211.681 211.28 0.00 0.00 0.00 0.40 0.00 1 0.00 0,00 0.00 0.00 0.00 0.00 735.09 4,00 739M 735.09 0.00 0.00 0.00 4.00 0.00 0.00 0.00 0.00 0.00� 0.00 0.00 Fremont Older I G.G.N.R.A. OM 1,22716 1,227.261 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0�00 0.00 0.001 1,227.26 1 0.00 La Honda Creek 2,00114 3,757.91 5,759.651 2,001.57 3,757.91 3,690,70 OA7 0.00 OM 0.00 000 0.00 I 0.00! 0.00 I 0.00 Long Ridge 1,941.56 93.13 2,034.69 1,928.41 39.79 0.00 1 13.15 OM 0.00 0.00 0.00 0.00 39.33 0.00 14.01 Los Trancos 274.31 0.00 274.31 274,31 0.00 0.00 i 0.00 0.00 000 0.00 0.00 0,00 0.00 0,00 0.00 Miramontes Ridge 1 991:63 160.00 1,151.63 991.63 160.00 0.00 0.00 0.00 0.00 0.00 0,00 000 0,00 0.00 0.00 Monte Bello 3,030A0 193.07 3,223.47 3,030.40 73.90 0.00 0.00 24,90 24.90 0.00 0.00 0.00 85,371 0.00 8.90 Thursday,January 06,2011 Page 1 of 2 j g �i - - 1 'Lease and dontribu- Other -'Il Dedicated'� Manage i lion Only Interest Undedicat Total (Dedicated e Acreage Easements on Pnvate Land Easements on Pub Ic Land meet Fe ed I _ Undedicat-, Intendedti Dedicated Undedicat-I Intended Dedicated Undedicat- Intended 1 Easements and ter, e lief@5@N@ Acres � ad Acres i Acres ed ed i L ed 1 � `Moody Gulch 0.00 163.86 163.86 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00I 163.86 0.00 Picchetti 307.89 0.00 307,89 307.89 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.0011 0.00) 0.00 1 Pulgas Ridge 365,78 0.10 365.85 365.78 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.10 Purisima Creek 3,272.23 1,139.22 4,411.45 3,272.23 1.139.12 534.15 I 0.00 0.00 0.00 0.00 0.00 0.00 0.001, 0.00 0.10 i Rancho San Antonio 3,693,89 166.70 3,860.59 2,178.53 1.20 0.00 1 1,515.36 0.50 0.00 0.00 0.00 0.00 165.001'1 0.00 0.00 Ravenswood 371.67 1.45 373,12 273.67 0.00 0.00 0.00 1.45 0.00 0.00 0.00 0.00 98.00) 0.00 0.00 I, I Russian Ridge 2,915.83 221.69 3,137.52 2,915.83 118.19 0.39 0.00 0.00 0.00 0.00 0.00 0.00 97.50 0.00 6.00 Saratoga Gap 1,345.57 196.41 1,541.98 1,345.57 196.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 i Sierra Azui 4,403.73 14,041.96 18,445.71 3,963.31 13,776.15 1,723.78 68.42 30.44 20.25 1 372.00 0.00 0.00 234.16 0.00 1.24 i Skyline Ridge 2,132.50 10.00 2,142.50,1 2,051.53 10.00 0.00 80.97 0.00 0.00 0.00 0.00 0.00 0.00I 0.00 0.00 St.Joseph's Hill 267.64 2.50 270.14 173.64 0.00 0.00 94.00 2.50 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Steven's Creek Shorelin 54,74 0.00 54.74) 53.74 0.00 0.00 1.00 0,00 0.00 1 0.00 0.00 0.00 0.001 0.Oo 0.00 Teague Hill 623.76 2.38 62614 623.76 2.38 2.38 0.00 0,00 0.00 0.00 0.00 0.00 0.00 0.00 ) 0.00 ThorneWOod 153.51 13.26 166.77 148.96 3.26 0.00 4.55 10.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Tunitas Creek 707.48 0.00 707A8) 707.48 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Windy HIII 1,304.49 30.79 1,335.28 1,304.49 2.00 0.00 0.00 5.79 5.79 0.00 23.00 0.00 0.00 0.00 0.00 PL ,�� 1 37,502.52 21,713.79 69,216.31 134,786.78 19,663.81 6,166.96 1,777.74 82.26 62.14 840.00 23.00 0.00 719.36 1,391.12 32.24 MR Eftdas aa'W where"Interest Held By Mff Thursday,January 06,2011 Page 2 of 2 r •rs Area Lexington Res County Pa San Jose Water r Company • P Y Terra Azt� C I J 1 A ti Ua sA' { 5 'Nma Brd _ 1 l3 h R -- M1OW ti POSTIN - "�• I -r y i sla o _ r a � Ros n YO,> : 0 San Jose Wa er Co npany i f m p u f a _.. L Ralph',Y f 4 Sierra Azul Moualan —Cathedral Oaks Area nie San �" Water r wa -- Company Si rra Az I sA21' Oath ral Oaks ea 9 J r Property Proposed for Dedication: Sierra Azul Midpeninsula Regional MROSD r Management Open Space District =1 Watershed Land Conservation or Agricultural Other Protected Open Space ® Easement Agreement a January 2011 or Park Lands Nonprofit Land Other Public Agency Proposed Dedications Miles a 0 0.25 0.5 1 ociety ��et Palo Alto Foothills Park RPngsrorff ,do P off; / i • glgrl T�di/ •;bs •• SM 35061 \ avwr RR07 •• oaI --� ree 4owl \1 C.Ity Palo Alto3 __—__ a. _.. ��_ � •COOP f � Tr rso n Monte Visa - Bette Fan Andreas •Q�Fy Fault Tr it •• • • Mesons r � �'MBO+i "if 4r • U ti 01 r , Rid x , Property Proposed for Dedication: Coal Creek Midpeninsula Regional MROSD Management Open Space District Watershed Land Conservation or Agricultural - Other Protected Open Space ® Easement Agreement a January 2011 or Park Lands Nonprofit Land Other Public Agency Proposed Dedications Miles 0 0.2 0.4 0.8 Midpeninsula Regional • ' Open Space District R-11-02 Meeting 11-03 January 26, 2011 AGENDA ITEM 5 AGENDA ITEM Appointment of Regular and Alternate Representatives to the California Joint Powers Insurance Authority (CaIJPIA) Board of Directors. GENERAL MANAGER'S RECOMMENDATION Approve appointment of regular representative: President: Larry Hassett and alternate representatives: General Manager Steve Abbors and Administrative Services Manager Kate Drayson to the Ca1JPIA Board of Directors. SUMMARY The District joined the CaIJPIA in 2001 as a cost effective alternative to commercial insurance. This relationship has repeatedly proven to be a financial benefit to the District. At the beginning of every calendar year, the Board appoints regular and alternate representatives to serve as members of the CaIJPIA Board of Directors. The recommended appointments are for Calendar Year 2011. DISCUSSION Background The District joined the CaIJPIA risk pool in 2001 in order to help control the overall costs of risk management, proving extremely cost effective compared to commercial insurance. CaIJPIA, as authorized by its Joint Powers Agreement, operates as a membership organization with a current membership of over 120 organizations and municipalities with good loss experience and risk management efforts. The District pays reasonable premiums for its Liability Protection, Property Insurance, Pollution and Remediation Legal Liability, Crime Insurance, and Workers' Compensation programs. The Special Events/Tenant User Liability program, which provides coverage for specific events, and the Vendor/Contractors Liability program, which provides the contractor or vendor with insurance for specific contracts with the District, are both on a"pay as you go", as-needed basis. As a pool member, the District pays an annual contribution for the Liability and Workers' Compensation programs. Page 2 R-11-02 District Participation The Joint Powers Agreement establishing the California Joint Powers Insurance Authority states that in addition to one representative from the member agency's legislative body, there shall be -at least one alternative who shall be an officer or employee of the member." The alternate member(s) shall have the same authority as the regular member. If the Board President is unable to attend the annual CaIJPIA Board meeting in July or attend any other matter required by the CaIJPIA Joint Powers Agreement, the alternate would perform these functions in the President's place. In 2009, the Board of Directors approved designating the General Manager and Administrative Services Manager as the first and second alternates, respectively, in place of the Board President. Recently, however, the Risk Management function, previously located in the Administrative Services Department was split between the Legal Program and the Administrative Services Department. As a result of this re-organization, three alternates were recommended in 2010 (General Manager, General Counsel, and Interim Administrative Services Manager) until the Administrative Services Manager position was filled. In November 2010, the District filled the position of Administrative Services Manager and it is recommended that Kate Drayson be the second alternate representative to the CaIJPIA Board of Directors. According to the bylaws of the CaIJPIA, each year the Board of Directors must name the specific individual representatives. FISCAL IMPACT There are no unbudgeted fiscal impacts associated with the recommended action. PUBLIC NOTICE Public notice was provided per the Brown Act. No additional notice is required. CEQA COMPLIANCE This proposed action is not a project under the California Environmental Quality Act and no environmental review is required. NEXT STEPS If approved by the Board, staff will advise CaIJPIA of the names of the District CaIJPIA representative and two alternates. Prepared by: Michelle Radcliffe, District Clerk Contact person: Stephen E. Abbors, General Manager Midpeninsula Regional ! ' Open Space District R-11-13 Meeting 11-03 January 26, 2011 AGENDA ITEM 6 AGENDA ITEM Appointment of Standing and Ad Hoc Board of Directors Committee Members for Calendar Year 2011 PRESIDENT'S RECOMMENDATION :�Ow Approve the President's recommendations for appointments to the Board Standing and Ad Hoc Committees, appointments of Board representatives to other bodies, and termination of Ad Hoc Committees whose tasks have been completed as contained in this staff report, including the determination of compensation status for attendance at Board Committee meetings. SUMMARY Every year, the newly-elected Board President, with consent of the Board, appoints new members to each committee. The appointments for the committees listed in this report are for calendar year 2011. DISCUSSION The Board of Directors Rules of Procedure Sections 1.80 through 1.83 call for the President to appoint Board members to annual Standing and Ad Hoc Committees and to represent the District on outside bodies, with consent of the Board. The four (4) current Board Standing Committees are: 1. Administration and Budget Committee (ABC) 2. Legislative, Funding and Public Affairs Committee (LFPAC) 3. Use and Management Committee (U&M) 4. Real Property Committee Following the Board's Rules of Procedure, Director Pete Siemens (Board Treasurer) will be assigned as one of the three members of ABC. At the January 12, 2011 Board meeting, the Board President appointed Directors Siemens, Riffle and Kishimoto to ABC. R-1 1-13 Page 2 The six (6) Board Ad Hoc Committees from last year consist of: 1. Board Appointee Evaluation 2. Sierra Azul/Bear Creek Redwoods Master Plan 3. Facilities Maintenance 4. Cooley Landing 5. Strategic Plan 6. La Honda Master Plan Staff recommends that the La Honda Master Plan Ad Hoc Committee be terminated as Committee work required for the preparation of the master plan has been completed. Section 2.30 of the Board's Rules and Procedure states that all Standing Committees are compensable and compensability for attendance at Ad Hoc Committee meetings is determined on an annual basis by the Board. It is recommended that Board members be compensated for attendance at all Board Ad Hoc Committee meetings. It is further proposed that Board member attendance at the two outside bodies, the Bay Ridge Trail Council and California Joint Powers Insurance Authority (CaIJPIA), remain non-compensable. In accordance with California Public Resources Code,Section 5536 and Section 2.30 of the Board's Rules and Procedures, each Midpeninsula Regional Open Space District Board member may receive compensation in an amount not to exceed one hundred dollars ($100) per day for each attendance at a Board meeting and no Board member may receive more than five hundred dollars ($500) compensation in any one calendar month. Accordingly, with seven Board members the maximum the Board could receive pursuant to State law is $42,000 per year. The District's current budget for Board meeting compensation has been and remains $25,000 per year. The proposed committee assignments for 2011 are as follows: Standing Committees Administration and Budget: Legislative Funding and Public Affairs: • Pete Siemens • Nonette Hanko • Curt Riffle • Curt Riffle • Yoriko Kishimoto • Cecily Harris Use and Management: Real Property: • Jed Cyr • Jed Cyr • Yoriko Kishimoto • Pete Siemens • Cecily Harris • Nonette Hanko R-11-13 Page 3 Ad Hoe Committees Board Appointee Evaluation: Sierra Azul/Bear Creek Redwoods • Nonette Hanko • Jed Cyr • Curt Riffle • Pete Siemens • Larry Hassett • Cecily Harris Facilities Maintenance: Cooley Landing: • Jed Cyr • Jed Cyr • Pete Siemens • Nonette Hanko • Curt Riffle • Yoriko Kishimoto Strategic Plan: • Nonette Hanko • Curt Riffle • Cecily Harris The President looks forward to the Board's consideration and anticipated concurrence of the proposed appointments. FISCAL IMPACT There will be no new or incremental fiscal impact associated with this action. Board compensation for committee work is included in the annual budget and remains unchanged from the previous year. PUBLIC NOTICE Public Notice was provided pursuant to the requirements of the Brown Act. No further notice is required. CEQA COMPLIANCE This proposed action is not a project under the California Environmental Quality Act (CEQA) and no environmental review is required. NEXT STEPS Staff will prepare a new roster of Board Committee assignments for posting internally and on the District website. Prepared by: Michelle Radcliffe, District Clerk Contact person: Larry Hassett, Board President Midpeninsula Regional • ' Open Space District i � 1 R-11-01 Meeting 11-03 January 26, 2011 AGENDA ITEM 7 AGENDA ITEM Appointment of District Representatives to the Governing Board of the Midpeninsula Regional Open Space District Financing Authority for Calendar Year 2011 PRESIDENT'S RECOMMENDATION Approve appointment of Directors Pete Siemens, Curt Riffle, and Yoriko Kishimoto to serve on the Governing Board of the Midpeninsula Regional Open Space District Financing Authority ("Authority") for Calendar Year 2011. DISCUSSION The Governing Board of the Authority consists of five members. In accordance with the Joint Powers Agreement and its bylaws , the District's Board President shall automatically be the Chairperson of the Authority. Three members are to be members of the District's Board of Directors who are appointed by the Board President. The fifth member is the member of the Santa Clara County Board of Supervisors whose district encompasses the greatest territory of the Midpeninsula Regional Open Space District, and who is appointed to the Board of the Financing Authority by the Chairman of the Board of Supervisors. Supervisor Liz Kniss will remain as the fifth member through the remainder of her Supervisory term which expires at the end of 2012. FISCAL IMPACT There are no unbudgeted fiscal impacts associated with the recommended action. PUBLIC NOTICE Public notice was provided as required by the Brown Act. No additional notice is required. CEQA COMPLIANCE No compliance is required as this action is not a project under the California Environmental p q p J Quality Act (CEQA). R-11-01 Page 2 NEXT STEP Once the Board has approved the appointments, the District staff will prepare a new roster of Financing Authority Board Members for internal posting. Prepared by: Michelle Radcliffe, District Clerk Contact person: Larry Hassett, Board President s4: { Midpeninsula Regional ' Open Space District r � R-11-19 Meeting I 1-03 January 26, 2011 AGENDA ITEM 8 AGENDA ITEM Award of Contract with GEOCON Consultants, Inc., to complete Remediation Design and perform Construction Oversight for the Remediation of Mercury Mine Waste at Hicks Flat within Sierra Azul Open Space Preserve GENERAL MANAGER'S RECOMMENDATION Z%r Authorize the General Manager to enter into a professional services contract with GEOCON Consultants, Inc., for an amount not to exceed $107,500 as well as a contingency of$13,000 (12% of the contract) to complete the remedial design, develop required plans, and perform construction oversight for the remediation of mercury mine waste at Hicks Flat within Sierra Azul Open Space Preserve. SUMMARY Partnering with the Association of Bay Area Governments (ABAG), the District requested and was awarded $315,000 in grant funds from the State Water Resources Control Board under the Federal Clean Water Act Section 319(h) —Nonpoint Source Implementation Grant Program for the remediation of mercury mining waste rock at Hicks Flat. Midpeninsula Regional Open Space District's (District) Board of Directors authorized the acceptance of these grant funds at the meeting of July 28, 2010 (refer to Board report R-10-87). To begin the remediation project, staff recommends contracting with GEOCON Consultants, Inc., in an amount not to exceed $107,500 for professional services to complete the remediation design, develop required J he project is completed in technical and perform construction oversight to insure that t p � p plans, conformance with the required plans. Staff is also requesting a contingency in the amount of $13,000 (12%of the contract amount) to address unanticipated issues, such as problematic subsurface soil conditions, or additional work required by permitting agencies during project review. DISCUSSION District staff is proposing that the District remediate an estimated 2,700 cubic yards of mercury mining waste rock at Hicks Flat located in the Rancho de Guadalupe area of Sierra Azul Open Space Preserve. The District acquired the Rancho de Guadalupe property in 1995. This property lies within the New Almaden Mercury Mining District and was historically used as a waste rock disposal area for the Guadalupe Mines. R-1 1-19 Page 2 The site falls within the Guadalupe River Watershed, and is abutted on the southeast by Cherry Springs Creek and Hicks Creek, both tributaries to nearby Guadalupe Creek. Guadalupe Creek is identified as one of the mercury-impaired waterways within the watershed under Section 303(d) of the Clean Water Act and a component of the Guadalupe River Watershed Mercury Total Maximum Daily Load (TMDL) regulatory program. Detailed studies conducted between 1990 and 1995 indicate that the mining waste rock at the site contains elevated levels of total mercury. The creek sediment sampling results indicate that some of the waste rock has spilled into Hicks Creek from a steep embankment in the southeast portion of the site. The primary risk from this site to the Guadalupe River watershed is from erosion of these materials into Hicks Creek. Since sediment from Hicks Flat is entering Hicks Creek, which is a tributary to Guadalupe Creek, remediation of the known mercury source is of high priority. District staff proposes a remediation approach consistent with the erosion control measures presented by the Regional Water Quality Control Board (RWQCB) in their TMDL study, and has secured grant funding from the RWQCB to implement the project. A specific remedial design plan for this site must be developed and analyzed to inform the environmental review and permitting process. Staff anticipates the main elements of the cleanup and abatement proposed for this site may include: • Removing fill materials located directly adjacent to Hicks Creek • Re-grading fill slopes and waste rock to prevent future erosion and establish stable drainage • Augmenting waste rock with suitable soils, if necessary, to support adequate re-vegetation Installing erosion control measures • Re-vegetating the site with native plant species Last year, the District partnered with ABAG and was subsequently awarded a $315,000 grant from the State Water Resources Control Board to clean-up and abate the mercury mining waste rock at Hicks Flat. Of these grant funds, ABAG will use $30,000 for grant administration and the District will use $285,000 to complete project design, CEQA review, permitting, project implementation, and project monitoring. This grant will enable the District to allocate resources in a timely manner to mitigate a known source of mercury contamination. RFQP for Rernediation Planning, Design, and Construction Oversight A Request for Qualifications and Proposals (RFQP) for Remediation Planning, Design, and Construction Oversight was released on November 12, 2010. The RFQP was issued directly to a list of environmental/engineering companies, to companies that had made specific inquiries about the project, and was posted on the District website for public review and response. A mandatory site visit was held on December 1, 2010, and ten (10) prospective companies attended, some of whom intended to present joint proposals as a team. The proposal submittal deadline was 5:00 p.m. on December 8, 2010. The proposals required submission of qualifications and experience as well as a separate sealed envelope with a completed fee and cost worksheet. A District staff review committee assessed the qualifications of each proposal, including the quality/approach of the proposal and overall team expertise. Based on the criteria outlined in the RFQP, staff has determined that GEOCON Consultants, Inc. submitted the proposal with the best R-11-19 Page 3 combination of expertise, staffing, and project approach, as well as a very competitive fee to provide the necessary remediation services. A total of four (4) proposals were received as shown below. The firms are listed based on their qualifications ranking: Firm Location GEOCON Consultants, Inc. Rancho Cordova and Livermore, CA Weiss Associates, CH2M Hill Mountain View and San Jose, CA Northgate Environmental , ESA i�W_A Oakland and San Francisco, CA Pristine Earth, Inc. Fremont, CA FISCAL IMPACT There is no unbudgeted fiscal impact from this recommended action. The $285,000 in grant funds awarded to the District will fund approximately three-fourths of the project. This is because the District is required to provide a 25% or$105,000 match, which will be met with staff time for project administration. Total project cost, including staff time, is estimated at $390,000. Sufficient funds are provided in the budget for FY2010-11 to begin the project. Future budgets will include an additional budget allocation for this project, which is expected to be completed in FY2012-13. PUBLIC NOTICE Notice has been provided as required by the Brown Act. No additional notice is required. CEQA COMPLIANCE Following completion of the preliminary remediation alternatives analysis and the preparation of the preferred remediation project design, the District will prepare and circulate the necessary CEQA documents. NEXT STEPS Upon Board authorization, the General Manager will execute a professional consulting services contract with GEOCON Consultants, Inc., in an amount not to exceed $107,500 for remediation design and construction oversight. Staff will retain $13,000 as a contingency in the event unanticipated issues arise during project design, permitting, and/or construction oversight. Prepared by: Matt Baldzikowski, Resource Planner 11 Contact person: Same as above Mid peninsula Regional ' Open Space District R-11-21 Meeting 11-03 January 26, 2011 AGENDA ITEM 9 AGENDA ITEM Acceptance of Report on the District's FY2009-10 Legislative Program and Adoption of FY2011- 12 Legislative Program GENERAL MANAGER'S RECOMMENDATIONS 1. Accept the FY2009-10 Legislative Program Report, as attached to this report. 2. Adopt the FY2011-12 Legislative Program, as attached to this report. 3. Authorize the Board President and General Manager to submit correspondence on behalf of the District to local, state and federal elected officials in support of, or in opposition to, pending legislation when the General Manager and General Counsel determine such positions to be in the best interest of the District in order to effectively carry out District business and accomplish the District purposes; provided that any such correspondence be copied to the full packet next agenda ket and all such correspondence is reported to Board of Directors as part of the g p the Legislative, Funding, and Public Affairs Committee on a periodic basis. DISCUSSION At the beginning of each two-year session of the California State legislature, staff prepares a draft Legislative Program outlining the District's legislative priorities for Board review and adoption. These priorities generally include protection of the District's percentage of property tax funding, possible development and/or sponsorship of new legislation, and monitoring and taking "support" or"oppose"positions on legislation that may have an impact on the District. Staff also prepares a report summarizing the District's progress on the past legislative program for Board review and acceptance. An evaluation of the last legislative session is attached together with the FY2011-12 draft Legislative Program. Staff discussed the FY2009-10 Legislative Program results and the proposed FY2011-12 Legislative Program with the Legislative, Funding, and Public Affairs Committee (LFPAC) at its January 11, 2011 meeting. The Committee approved both reports and they are being forwarded to the full Board with the Committee's recommendation for approval. Staff will work with LFPAC in the future to make further non-substantive format changes designed to make R-11-21 Page 2 the plan easier to review: initiatives might be put in a table format so that session results can be readily compared. The consulting agreement for legislative services in Sacramento with Ralph Heim, Public Policy Advocates, which had not increased since 1989, was adjusted last fiscal year to $28,000 annually from a consulting fee of$1,100.00 per month, plus a monthly expense allowance of$5 5.00. FISCAL IMPACT There are no unbudgeted fiscal impacts from the recommended action. PUBLIC NOTICE Public notice was provided per the Brown Act. No additional notice is required. CEQA COMPLIANCE This proposed action is not a project under the California Environmental Quality Act and no environmental review is required. NEXT STEPS If approved by the Board, staff will implement the District's FY2011-12 Legislative Program. Attachment: 1. Midpeninsula Regional Open Space District Legislative Program Report on the District's 2011-2012 Legislative Program and Review of 2009-2010 Legislative Program Prepared by: Rudy Jurgensen, Public Affairs Manager Contact person: Stephen E. Abbors, General Manager ATTACHMENT I Midpeninsula Regional Open Space District Legislative Program Results of 2009-2010 Legislative Session Goals for State Legislative Activity Local property tax funding. Goal statement Maintain and protect the District's current percentage share of the local property tax funding. Result Proposition IA, which won 84 percent support during the November 2, 2004 general election, has continued to protect local agencies such as the District-until 2009. In June 2009 a General Fund Budget Summary released by the Department of Finance proposed that the state borrow nearly$2 billion firomspecial districts, cities and counties by suspending Prop IA. In response to the slate government's plan, the District prepared a white paper and met with our legislators to urge them not to approve the suspension. Nevertheless, on July 24, 2009 the Governor issued a proclamation declaring that due to a severe state fiscal hardship, such a suspension is necessary; and the Legislature concurred, enacting tin urgency statute. The District didn't lose any funds, however, because we participated in the securitization program, a tool which allows an agency to sell future "receivables", such as the slate's constitutional obligation to repay local agencies for a ]A borrowing, in order to access the cash due from the receivables immediately. In the instance of'lhe Proposition ]A securitization, the California Statewide Communities Development Authority was authorized to purchase the receivables due to local agencies from the state as a result of the Proposition ]A borrowing. 7'he legislation for the Proposition ]A securitization authorized cities, counties, and special districts to sell their state repayment obligations to California Communities. In a simultaneous transaction, California Communities issued taxable bonds and remitted the cash proceeds to the participating local public agencies, such as the District. The legislation provides that local agencies participating in the securitization program receive 100%of their respective Proposition ]A receivables. Subdivision Map Act Goal statement Streamline District projects by establishing that property conveyances to and from regional open space and park districts for open space purposes are exempt from the Subdivision Map Act. Result In 200213, Sacramento legislative staff fib,fasked the District to make a good--faith effort on the local level be aff in the mid- fibre asking state legislation to the problem. AsaresultDistrictst 2000s worked out a verbal agreement with Santa Clara County and is currently working with the county lo,lbrmalize the agreement in writing. Simultaneously, staff is working with San Mateo County to streamline and improve the process when the District purchases aportion oJ'aparcel which results in a land division or necessitates a lot line adjustment. Since these good faith eff orts are currently ongoing, it is premature to ask a legislative solution in he s a e capital. General plan conformity Goal statement Facilitate the acquisition and preservation of public open space by streamlining the acquisition process. Result In the early 2000s District staff obtained a letter from Santa Clara County stating that the District's transactions conform to their general plan. In 200213 ,5acramento legislative staff told the District to make a good faith effort .fIb on the local level before asking for slate legislation to fix the problem. In San Mateo County, District staff is working this year on obtaining a letter similar to the one from Santa Clara County which would, however, not be applicable to agricultural lands in order to honor the wishes of our partners in the coasiside farming community. The letter we seek would formalize agreements on how we apply for lot line adjustments and how we approach General Plan Conformity. Water Quality Bond Act Goal statement Support a water bond act if one is placed on the 2010 ballot. Result The California Legislature voted on August 9, 2010 to pull the $11 billion water bond from November's ballot and delay it for two years, a move that came cis backers of the proposal became increasingly concerned about its prospects at the polls. Expand repayment of District notes to 30 years Goal statement Allow the District to repay its indebtedness (notes) over 30 years in order to bring the District's payment obligations closer in line with most public bonds, which typically have a due date of 30 years. 2 Result Since 2007 we have sought to introduce and pass a bill which would extend the time that the District has to repay its debt, in the form of promissory notes, to 30 years firom currently 20 years. We initially succeeded in introducing a bill and passing it in the California State Assembly but our effibris were thwarted in the Senate Local Government Committee where opposition from the committee's senior staff er has since that time prevented a bill from going .1brward At present we see no possibility to overcome this obstacle and will instead work on a long-term goal to obtain legislative approval. Review of timber harvesting plans Goal statement Work to ensure that the District is one of the agencies which review timber harvesting plans. Result The state took over timber harvesting plan reviews in the early 1980s and since that time only state agencies have been a part ql'the review panels with the exception ql'those counties that were on the panels bef ore the early 80s including San Mateo, Santa Clara and Santa Cruz. Our delegation pointed out to us that if the District were to gain a seat on these panels through legislation it would create a precedent and likely an avalanche Ql'similar requests, which is why our delegation discouraged usftom pursuing this course, especially since the District still has a strong voice through our county representatives. Integrate open space and recreational uses on Williamson Act lands Goal statement Pursue methods to streamline the process of integrating open space and recreational uses on Williamson Act lands at the County and State level and promote the compatibility of open space and recreational uses and conservation easements with Williamson Act contracts. Result The District wanted to partner.with the California Council of Land Trusts on a bill, but as the recession deepened and the state budget crisis intensified COLT warned us that the time was not ripe to pursue legislative solution. The District and COLT agreed to jointly pursue this goal when circumstances are better. Future District funding measure Goal statement Analyze the need for a future District funding measure to be submitted to the voters. Result Research was conducted and a presentation was given to LFPAC in November 2010. Committee members asked for some additions to be made and for the presentation to then be given to the full Board. 3 Review state legislation Goal statement Ensure that legislators understand the impact of proposed legislation on District constituents, the natural environment, and on the District itself. Results • Election recap: The November 2010 election saw California voters defeat Proposition 23, the Texas-oil- ,funded initiative to repeal the state's law to fight climate change against which the Board had publicly spoken out. Voters also defeated Prop 21 which would have increased vehicle license fees by$18 a year to fund state parks. Defying the national trend, California voters re-elected Democratic Senator Barbara Boxer, the entire District delegation in the House of Representatives and they elected a Democrat as Governor (Jerry Brown). Locally, Rich Gordon was elected to the State Assembly for the first time and Jerry Hill, Paul Fong and Jim Beall were reelected to the Assembly. • Opposed Assembly Bill 155 which would have required local governments, including special districts, to gain approval from the California Debt and Investment Advisory Commission (CD1AC) beJbre,filingf6r bankruptcy. The bill died • Worked to amend AB 979 which would have pre-empted the ability of park districts and other public agencies to prohibit hunting on publicly-owned lands. • Supported Assembly Constitutional Amendment 9 which would have changed the 213 vote requirement for cities, counties, and special districts to raise special taxes and issue general obligation bonds to a 55 percent voter threshold because the 213 requirement has stymied e z ef forts to maintain and improve local services and that are supported by sizeable majorities of voters. Unfortunately, the bill died in the Assembly Appropriations Committee. • Wrote to Governor Schwarzenegger to express our strong opposition to his proposal to eliminate General Fund support for California's stale park system. • Passed a Board resolution to support the State Parks and Wildlife Conservation Trust Fund Act of 2010 on the November ballot (Prop 2 1) which will give voters a chance to approve a vehicle license fee of$18fior all cars, motorcycles and recreational vehicles to create a dedicated and permanent funding source for the State Parks system and key wildlife habitats around the state. • Drafted a Board resolution to support the sale of Bay Area Special License Plates which was to have been issued by the California Department of Motor Vehicles upon receipt ol'7,500 paid pledges to benefit the San Francisco Bay Area Conservancy Program of the Coastal Conservancy with which the District works on conservation, habitat restoration, recreation, and other environmental projects. The license plate initiative was withdrawn and postponed due to lack of demand and the resultant shortage of paidpledges. • As a member ofCSDA 's legislative committee, participated in regular committee meetings in 4 Sacramento to discuss bills and determine which actions the association should take in support or opposition to legislation. • Withdrew support oJ'SB 211, Senator Simitian's bill to authorize the.formalion of an open space district in Santa Cruz County because language had been added to the bill that would have transferred all control over acquisitions of,properly within a 25-year urban growth area boundary to the City of Watsonville. We strongly believe that this amendment would have unduly interfered with the right of private property owners to sell property to whomever they wish. We also believe that other local jurisdictions within Santa Cruz and in future open space districts would similarly want to approve acquisitions of a district and that conserving needed open space would thus have been inappropriately politicized at the local level. In short, the proposed amendment would have torn apart the fabric of open space preservation and thrown its very future into doubt. The bill died and was subsequently "gutted and amended". • Advocated for AB1962. The measure clarified our ability to accept offers to dedicate. Existing law allows a city or a county to consent to the recording of an irrevocable offer to convey any interest in real property situated within the counly's or citys boundaries. This allows the local government to defer acceptance of the off er until planning,financing and regulatory requirements have been satisfied Unfortunately, that same mechanism is not available to the various open space districts throughout the stale, who are often tasked as the lead local public agency to fulfill the regional goals of resource conservation. AB1962 corrects this problem by providing open space districts with that same authority. • Obtained letters qf'support,from Senator Simitian and Assemblymember Ruskin to help fund a Concept Plan identifying the best alignment for a public trail easement, closing a critical gap in the San Francisco Bay Trailand linking existing sections Qf'the Bay Trail at the District's Ravenswood Open Space Preserve and University Avenue. Dedication of land (Riverside County case) Goal statement Obtain legislative solution in the event that the California Supreme Court upholds the Gerard Ste. Marie v. Riverside County Regional Park and Open Space District case. Result No legislative solution was necessary because the California Supreme Court reversed the judgment o the Court qfAppeal in the GerardSte. Marie v. Riverside County case in May 2009. .f i The Fourth District Court of Appeal had held that Section 5540 of the Public Resources Code (which states that an open space district can't convey land actually dedicated for open space purposes except by majority vote of*its constituents or concurrent resolution of the legislature) means that any land or interest in ,land acquired is automatically dedicated in perpetuity, without any need for an aff irmative act of dedication by the Board oj'Directors. This decision, which the California fornia Supreme Court overturned, would have negatively impacted the District's ability to plan its preserves, and the District's financing alternatives such as lease financing. Riverside 5 County sought review in the Supreme Court, which was granted. We and four other Districts had fileded an amicus brief in support of Riverside. Goals for Federal Legislative Activity Cleanup for the former Almaden Air Force Station Goal statement Seek Federal legislative assistance in securing funding for the cleanup of the former Almaden Air Force Station (AFS) at Mt. Umunhum in the Sierra Azul Open Space Preserve. Result The District obtained a federal allocation of$3.2 million in the FY 2010 Defense Appropriations Act for the cleanup of Mt. Umunhum. Land and Water Conservation Fund Goal statement Work with the new administration to ensure full funding of the stateside Land and Water Conservation Funds. Result The District wrote several letters in late 2009 to support a bill to fully fund the Land and Water Conservation Fund(LWCF) at the authorized annual level of$900 million. On July 30,for the first time in over a decade, the House of Representatives passed a bill to fully dedicate the Land and Water Conservation Fund at that level. Moffett Field Goal statement Support efforts to build levees in order to restore the salt ponds at Site 25 to tidal standard. Result We are continuing to support efforts by third parties who seek assistance from the Corps of Engineers to build levees in order to restore the salt ponds at Site 25 to tidal standard. Review Federal Legislation Goal statement Ensure that federal legislators understand the impact of proposed legislation on District constituents, the natural environment, and the District itself. 6 Results 0 The review is ongoing. 0 We wrote to US. Agriculture Secretary Vilsack to strengthen APHIS Q-3 7 screening of plant imports to prevent introduction of invasive species so that the Bay Area, and elsewhere, has to spend significantly fewer resources controlling invasive plants such as Slender False Brome, thistle and coyote brush. 7 Midpeninsula Regional Open Space District Legislative Program For 2011-2012 Legislative Session Goals for State Legislative Activity Local property tax funding. Goal statement Maintain and protect the District's current percentage share of the local property tax funding. Problem/o portunity description Proposition I A, which won 84 percent support during the November 2, 2004 general election, has continued to protect local agencies such as the District by requiring the state to pay back borrowed tax revenues within three years with interest and limiting such borrowings to twice in a ten-year period. The first borrowing occurred in 2010. Monitor the legislative process for proposals that seek to reduce the District's share of property taxes. Proposed action Work with the District's legislators to ensure they are aware of the impacts any further taking of the District's funding would have on the provision of services and on protecting the land. Water Quality Bond Act Goal statement Support a water bond act if one is placed on the 2012 ballot. Problem/opportunity description On November 7, 2006, 53.9 percent of voters passed Proposition 84, the 5.4 billion dollar"Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006". The District can apply for and benefit from grants made available through the Sustainable Communities and Climate Change Reduction chapter in Proposition 84 as well as grants available though the Statewide Park Act which awards funds for the creation of new parks and facilities. Proposed action After successful passage of the Water Quality Bond Act of 2006, support campaign if another Bond Act is placed on the 2012 ballot. 8 Expand repayment of District notes to 30 years Goal statement Allow the District to repay its indebtedness (notes) over 30 years in order to bring the District's payment obligations closer in line with most public bonds, which typically have a due date of 30 years. Problem/opportunity description If the District were able to repay its debt over 30 years instead of 20 years it would expand the debt available and allow the agency to better carry out its core mission by purchasing more land to acquire and preserve a regional greenbelt of open space preserves. Increased purchases of open space are a benefit that would outweigh the higher interest the District would pay over time. During the last session the District received substantial resistance from Senate staff who argued that such a change should require a two-thirds vote of the people. Since 2007 we have sought to introduce and pass a bill but at present we see no possibility to overcome this obstacle but, instead, there is an opportunity to work on a long-term goal to obtain legislative approval. Proposed action Work to implement a long-term goal of creating and passing a bill to change the District's enabling legislation by amending Public Resources Code Sec. 5544.2 to allow 30 years for repayment of district indebtedness. Initial contacts with legislators and committee staff have already been made. Integrate open space and recreational uses on Williamson Act lands Goal statement Pursue methods to streamline the process of integrating open space and recreational uses on Williamson Act lands at the County and State level and promote the compatibility of open space and recreational uses and conservation easements with Williamson Act contracts. Problem/opportunity description The District, like many other agencies, owns land subject to old and antiquated Williamson Act contracts which state that open space and recreational uses are not consistent. These older contracts were written prior to modern amendments made to the Williamson Act but they nevertheless remain in effect. As a result, it can be difficult to integrate open space and recreational uses with our contracts. For example, for even a minor addition such as a parking lot, the District, under the old Williamson contracts, has to obtain a permit from the county (called a "Compatible Use Determination"). This amounts to a waste of time and money because the modern Williamson Act states that open space and recreational uses are compatible. Proposed action Work with cities and counties to integrate open space and recreational uses on open space lands Linder the Williamson Act and partner with the California Council of Land Trusts and other 5500 Districts to pursue a legislative solution. However, because the economic situation in California remains fragile and recovery is predicted to be slow, it is hard to say how successful a drive to resolve this issue will be during the 2011-2012 session. 9 Subdivision Map Act Goal statement Streamline District projects by establishing that property conveyances to and from regional open space and park districts for open space purposes are exempt from the Subdivision Map Act. Problem/opportunity description The District would like to exempt regional park and open space districts from provisions of the Subdivision Map Act which add an unnecessary layer of bureaucracy to the purchase of open space by specifying that land uses must first be submitted to the local planning agency for review before it acquires real property. This is because the primary purpose of the Map Act is to regulate the design of development but special districts can only buy land for park and open space purposes upon which there will be no development so that there is no need for the regulation of subdivision design Proposed action As directed by Sacramento legislative staff, make a good-faith effort on the local level and work to formalize a verbal agreement with Santa Clara County in writing and by working with San Mateo County to streamline and improve the process when the District purchases a portion of a parcel which results in a land division or necessitates a lot line adjustment. If efforts fail, work on a legislative solution in the state's capital by developing a bill to amend Government Code Section 66412 of the Government Code to clearly establish that property conveyances to and from regional open space and park districts solely for open space purposes are exempt from the Subdivision Map Act. To this end, add the following section to the Government Code: 66412.4. This division shall not apply to conveyances of land or interests in land, to or from a regional park and open space district established pursuant to Article 3 (commencing with Section 5500) of Chapter 3 of Division 5 of the Public Resources Code, when the conveyances are solely for the purposes of open space preservation. General plan conformity Goal statement Facilitate the acquisition and preservation of public open space by streamlining the acquisition process. Problem/opportunity description Prior to acquiring real property, a local agency such as the District must submit the proposal to the applicable county or city planning agency which then has 40 days to provide a report that the proposal conforms to the applicable general plan. The District is technically allowed to ignore the ruling it gets back, but in some counties the simple act of inquiring and getting an answer back delays the purchase process by weeks and adds an extra public notice cycle. This can be a problem because real estate transactions regularly need to occur as promptly as possible or the purchase opportunity may be lost to a private buyer. We would like to change the law by seeking an exemption because this statute can significantly interfere with the preservation of open space, yet serves no useful purpose since the statutory purpose of open space districts is the 10 acquisition and preservation of open space. Development on such lands is by definition minor and any development would still be subject to the full regulatory processes of the city and county in which the land is located, even with the exemption we are proposing below. Proposed action As directed by Sacramento legislative staff, make a good-faith effort on the local level by obtaining a letter from San Mateo County that is similar to the one obtained from Santa Clara County, stating that the District's transactions conform to the county's general plan—with the exception that transactions affecting agricultural lands will not be affected in order to honor the wishes of the District's partners in the coastside farming community. If efforts fail, work on a legislative solution in the state's capital by seeking a narrow exemption to Government Code Section 65402(c) for regional park and open space districts by amending the last sentence of this statute to read as follows (add language that's in italics): "Local agency does not include the state, or county, or a city, or a regional park and open space district established pursuant to Division 5, Chapter 3, of the Public Resources Code." Future District funding measure Goal statement Begin laying the groundwork for a future District funding measure to be submitted to the voters. Problem/opportunity description In order to ensure the long-term success of the District, if LFPAC and the Board determine that a funding measure should be brought before the voters, District staff could begin laying the groundwork for a measure by conducting studies and outreach to constituents. Proposed action Carry out activities that lay the groundwork for a future District funding measure to be submitted to the voters. Review State Legislation Goal statement Ensure that legislators understand the impact of proposed legislation on District constituents, the natural environment, and on the District itself. Problem/opportunity description During each legislative session bills are forwarded that would have a negative impact on the District just as there are bills whose effects would be positive. In each case the District needs to take a position opposing or supporting bills. Proposed action Review state legislation and support, oppose, or seek amendments to those bills that impact the District. Goals for Federal Legislative Activity Cleanup for the former Almaden Air Force Station Goal statement Seek Federal legislative assistance in securing funding for the cleanup of the former Almaden Air Force Station (AFS) at Mt. Umunhum in the Sierra Azul Open Space Preserve. Problem/opportunity description Continue to work with the District's congressional delegation to obtain additional federal funding to help with the cleanup. Proposed action Seek federal legislative assistance in securing funding for the cleanup of the former Almaden Air Force Station. The likelihood of success has diminished this year because Republicans, who won a majority of the House last November, have vowed to eliminate funding directed by individual members of Congress. Land and Water Conservation Fund Goal statement Work with the administration to ensure full funding of the stateside Land and Water Conservation Funds. Problem/opportunity description The Land and Water Conservation Fund (LWCF) Act designated that a portion of receipts from offshore oil and gas leases be placed into a fund annually for state and local conservation, as well as for the protection of our national treasures such as parks, forest and wildlife areas. LWCF is authorized at $900 million annually, a level that has been met only twice during the program's 40-year history. On July 30, 2010 for the first time in over a decade, the House of Representatives passed a bill to fully dedicate the Land and Water Conservation Fund at its authorized level of$900 million a year. However, a few days before Christmas Arizona Sen. John McCain blocked passage of the Great Outdoors Act of 2010, which contained legislation on LWCF, after the removal of his own proposal to promote a land exchange in Arizona to allow a new copper mine. Proposed action Any bill will likely face an uphill battle in the next Congress when there will be a Republican-controlled House and a slimmer Democratic majority in the Senate, which is why we need to continue our work with the administration and the federal legislature to ensure full funding of the LWCF. Review Federal Legislation Goal statement Ensure that federal legislators understand the impact of proposed legislation on District constituents, the natural environment, and the District itself. 12 i Problem/opportunity description During each federal legislative session bills may be forwarded that would have a negative impact on the District just as there are bills whose effects would be positive. In each case the District should take a"support" or"oppose" position. Proposed action Review specific pieces of Federal legislation and support, oppose, or seek amendments to those bills that impact the District. 13 f ' Midpeninsula Regional ' I Open Space District R-11-15 Meeting 11-03 January 26, 2011 AUTHORITY MEETING AGENDA ITEM 1 AGENDA ITEM Confirmation of the Officers of the of the Midpeninsula Regional Open Space District Financing Authority for Calendar Year 2011 CHAIRPERSON'S RECOMMENDATION Confirm that the Officers of the Midpeninsula Regional Open Space District Financing Authority ("Authority") for Calendar Year 2011 are: 1) Larry Hassett, Chairperson; 2)Pete Siemens, Treasurer; 3) Stephen E. Abbors, Executive Director; 4) Mike Foster, Controller; and 5) Michelle Radcliffe, Secretary. DISCUSSION Section 2.5 of the Bylaws of the Finance Authority adopted in 1996 specifies that the officers of the Finance Authority shall be confirmed at the first meeting of the Finance Authority held each calendar year. Therefore it is in order that the members of the Finance Authority confirm its officers as set out in the Executive Director's recommendation. Article 1I of the Bylaws provides that the Chairperson of the Authority shall be the Board President; the Treasurer of the Authority shall be the Board Treasurer, the Controller of the Authority shall be the Controller of the District; and the Secretary of the Authority shall be the District Clerk. In addition, Section 4(D)(5) of the Joint Powers Agreement ("Agreement") by and between the Midpeninsula Regional Open Space District and the County of Santa Clara executed on May 1, 1996 that formed the Authority, states that"The(Governing) Board shall have the power to appoint such other officers and employees as it may deem necessary and to retain independent counsel, consultants, accountants and other professionals necessary in the exercise of its powers". Since its formation in 1996, the Authority Board has appointed the District's General Manager to serve in the Office of the Executive Director of the Authority. Accordingly, it is the Chairperson's recommendation that Stephen E. Abbors, the District's General Manager, be appointed as the Executive Director of the Financing Authority for Calendar Year 2011. FISCAL IMPACT There are no unbudgeted fiscal impacts associated with the recommended action. R-11-15 Page 2 PUBLIC NOTICE Public notice was provided as required by the Brown Act. No additional notice is required. CEQA COMPLIANCE No environmental review is required as the recommended action is not a project under CEQA. NEXT STEP Once the Authority Board has approved the appointments, the District staff will prepare a new roster of Finance Authority representatives for internal posting. Prepared by: Stephen E. Abbors, Executive Director Contact person: Larry Hassett, Authority Chairperson Midpeninsula Regional Open Space District R-11-07 Meeting 11-03 January 26, 2011 AUTHORITY MEETING AGENDA ITEM 2 AGENDA ITEM Acceptance of the Controller's Annual Financial Report of the Midpeninsula Regional Open Space District Financing Authority CONTROLLER'S RECOMMENDATIONS The Controller of the Authority recommends that the Board accept the Annual Financial Report of the Midpeninsula Regional Open Space District Financing Authority("Authority"). DISCUSSION Controller's Report In May 1996, the District and Santa Clara County established the Authority with the purpose of providing financing assistance to the District to fund acquisition of land to preserve and use as open space and to finance public capital improvements. Accordingly, the District and the Authority are accounted as one blended unit for financial statement purposes. On May 28, 2010, the District's independent auditors, Maze& Associates, issued its report on the District's financial statements for the fiscal year ended March 31, 2010. This report is attached. Through March 2010, the District had sold five series of Financing Authority notes, with a total par value of$179 million. No Financing Authority notes were sold in fiscal 2010. A summary of the five financings is shown below. Excluding the 2007 Notes which raised no new money and only refinanced existing Financing Authority notes, the District had issued $120 million (net) of Financing Authority notes, funding $57 million of new land acquisitions and repaying $60 million of prior public and private debt, which had been issued at higher interest rates and for shorter maturities. Par Amount TIC(*) Purpose 1996 Notes $29.9 M 6.25% $11 M Land +pay-off 1988 Notes 1999-1 Notes $29.7 M 5.26% $2 1 M Land +pay-off 1992 Notes 1999-2 Notes $28.4 M 5.93% $15M Land +pay-off 1990 Notes R-11-07 Page 2 2004 Notes $31.9 M 4.99% $1 OM Land +pay-off 1993 COPS 2007 Notes $59.2 M 4.57% Pay-off 1996 & 1999-2 Notes (*) TIC=total interest cost, including all costs of issuance Three Financing Authority note issues remain outstanding, with a total outstanding balance of $121.2 million at March 31, 2010. This represents 95% of the District's total outstanding debt balance. The average total interest cost of the outstanding Financing Authority notes is 4.87%. A summary of the activity on the Financing Authority notes in fiscal 2010 is shown below. During the 2010 fiscal year, $2.79 million of principal was repaid, $4.63 million of interest was paid, and$1.36 million of accretion was accrued. Accretion arises from the portion of notes sold as capital appreciation bonds (CABs). CABs are like zero-coupon bonds; they do not pay interest, instead they accrete each year to reflect the growing principal value to be paid at maturity. The purpose of CABs is to lengthen the average life of the debt. The 1999-1 Notes include $13.9 million of CABs while the 2004 Notes have $1.3 million. Balance Principal Balance Interest Paid (millions) March 2009 Paid Accretion March 2010 in FY10 1999-1 Notes $33.08 $1.21 $1.26 $33.13 $0.40 2004 Notes $32.02 $0.20 $0.10 $31.92 $1.42 2007 Notes $57.44 $1.39 $0.00 $56.11 $2.82 $122.53 $2.79 $1.36 $121.16 $4.63 FISCAL IMPACT There are no unbudgeted fiscal impacts associated with the recommended action. PUBLIC NOTICE Notice was provided pursuant to the Brown Act. No additional notice is necessary. CEQA COMPLIANCE No compliance is required as this action is not a project under the California Environmental Quality Act(CEQA). R-11-07 Page 3 NEXT STEPS None. Attachment 1. District's Financial Statements for the fiscal year ended March 31, 2010. Prepared by: Michael Foster, Controller Contact person: Same as above. MIDPENINSULA REGIONAL OPEN SPACE DISTRICT BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,2010 PREPARED BY THE FINANCE DEPARTMENT This Page Left Intentionally Blank MIDPENINSULA REGIONAL OPEN SPACE DISTRICT BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,2010 Table of Contents INDEPENDENT AUDITORS'REPORT............................................................................................1 MANAGEMENT'S DISCUSSION AND ANALYSIS......................................................................3 BASIC FINANCIAL STATEMENTS Statementof Net Assets.....................................................................................................................8 Statementof Activities........................................................................................................................9 BalanceSheet....................................................................................................................................10 Reconciliation of the Governmental Funds—Balance Sheet with the Statement of Net Assets....11 Statement of Revenues,Expenditures and Changes in Fund Balances........................................12 Reconciliation of the Net Change in Fund Balances—Total Governmental Funds with the Statementof Activities............................................................................................................13 NOTES TO FINANCIAL STATEMENTS.......................................................................................15 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues,Expenditures and Changes in Fund Balances—Budget and Actual......40 r-- j ' This Page Left Intentionally Blank I i MAZE & ASSOCIATES ACCOUNTANCY CORPORATION 3478 Buskirk Ave. - Suite 215 Pleasant Will, California 94523 (925)930-0902 -FAX(925)930-0135 maze@)mazeassociates.com www.mazeassociates.com INDEPENDENT AUDITORS'REPORT Board of Directors Midpeninsula Regional Open Space District Los Altos,California We have audited the accompanying financial statements of the governmental activities and each major fund of the Midpeninsula Regional Open Space District, as of March 31, 2010, and for the year then ended, as listed in the Table of Contents.These financial statements are the responsibility of the management of the District. Our responsibility is to express an opinion on these financial statements based on our audit We conducted our audit in accordance with generally accepted auditing standards in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining on a test basis evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, such financial statements present fairly in all material respects,the financial position of the governmental activities and each major fund of the Midpeninsula Regional Open Space District as of March 31,2010, and the respective changes in the financial position thereof for the year then ended in conformity with generally accepted accounting principles in the United States of America. Management's Discussion and Analysis is required by the Governmental Accounting Standards Board, but is not part of the basic financial statements.We have applied certain limited procedures to this information, principally inquiries of management regarding the methods of measurement and presentation of this information,but we did not audit this information and we express no opinion on it. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The required supplemental information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements of Midpeninsula Regional Open Space District. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and,in our opinion,is fairly stated in all material respects in relation to the basic financial statements taken as a whole. 9(- May 28,2010 A Professional Corporation This Page Left Intentionally Blank Management's Discussion and Analysis i This section of the Midpeninsula Regional Open Space District's (the District) basic financial statements presents a narrative overview and analysis of the District's financial activities for the fiscal year ended March 31, 2010. We encourage readers to consider the information presented here in conjunction with our basic financial statements. FINANCIAL HIGHLIGHTS Property tax revenue growth was stronger than originally expected in fiscal 2010, increasing by about 4.9%, compared to property tax growth of 6.4% in fiscal 2009 and 3.6% in fiscal 2008. Revenue growth slowed significantly in the Santa Clara County portion of the District, from 8.0%in fiscal 2009 to 3.1%in fiscal 2010. However,this was offset by higher growth in the San Mateo County portion, from 3.0% in fiscal 2009 to 8.5% in fiscal 2010. The District receives approximately two-thirds of its tax revenue from Santa Clara County and one-third from San Mateo County. Based on information from the county assessors,the District is expecting that tax revenue in fiscal 2011 will be slightly less than in fiscal 2010. The District added $16.6 million of land in fiscal 2010. The three largest purchases, totaling $10.8 million, were additions to the Purisima Creek Redwoods Open Space Preserve and key links in the completion of the Purisima-to-the Sea project. Given the State budget crisis, grants for land acquisition were scarce in fiscal 2010, with only $500,000 obtained. However, the District succeeded in obtaining $2.3 million of gifts of land, mostly additions to the San Antonio and Monte Bello Open Space Preserves. Net of grants and gifts, the District used $13.8 million of cash for land purchases in fiscal 2010, down from $18.7 million in fiscal 2009. The District added $27.9 million and$1.6 million of land in fiscal 2009 and 2008,respectively. District expenditures were again within annual budget. Excluding the purchase price of new properties and debt service, total District spending, $14.4 million, was $1.4 million, or 9%, below budget and up 2.6%over fiscal 2009. The assets of the District exceeded liabilities at the close of the 2010 fiscal year by $257.0 million (net assets). Of this amount, $225.1 million is invested in capital assets, net of related debt, $1.4 million is restricted by the terms of existing District debt, and the remaining $30.5 million is unrestricted. About 43% of the unrestricted balance is projected to be used for land acquisition in fiscal 2010 as the approved budget for fiscal 2010 forecasts land purchases totaling $15.0 million, or$12.5 million net of associated grant income. The District's total net assets increased by $11.2 million in fiscal 2010, as general and program revenues exceeded program expenditures. Program expenditures were within budget. The District's total long-term debt obligations declined by$1.3 million to $123.7 million. 3 OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the District's basic financial statements. The District's basic financial statements consist of three components: (1) government-wide financial statements; (2) fund financial statements and (3) notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. This is the third year the District has presented its financial statements under the new reporting model required by the Governmental Accounting Standards Board Statement No. 34 (GASB 34), Basic Financial Statements—and Management's Discussion and Analysis (MD&A) —for State and Local Governments. NET ASSETS Statement of Net Assets—March 31, 2010 and 2009 March 31, 2010 March 31, 2009 Increase Assets: Current assets $ 32,690,558 $ 40,565,462 $- 7,874,904 Retiree Health Trust 1,666,561 1,723,000 - 56,439 Capital assets 348,762,622 330,931,437 17,831,185 Total assets 383,119,741 373,219,899 9,899,842 Liabilities: Accounts payable and other liabilities 2,489,540 2,506,547 - 17,007 Long-term debt 123,670.744 124,951,534 - 1,280,790 Total liabilities 126,160,284 127,458,081 - 1,297,797 Net assets: Invested in capital assets, net of related debt 225,091,878 205,979,903 19,111,975 Restricted 1,417,195 1,405,211 11,984 Unrestricted 30,450,384 _ 38,376,704 - 7,926,320 Total net assets $256,959,457 $ 245,761,818 $11,197,639 Analysis of Net Assets The District's assets at the close of this fiscal year are$257.0 million more than its liabilities. This is the result of the District's inventory of capital assets. The net investment in capital assets, $225.1 million, consists primarily of the District's approximately 59,000 acres of land in 26 open space preserves protected for public enjoyment. The investment in capital assets is offset by long-term debt obligations on promissory notes and lease revenue bonds. The net assets subject to external restrictions are composed of $1.4 million for debt service. Unrestricted net assets are used to finance additional land acquisition projects. The District's budget for fiscal year 2010 includes $12.5 million for land acquisitions, net of related grant income. 4 Changes in Net Assets—Fiscal Years Ending March 31, 2010 and 2009 Fiscal 2010 Fiscal 2009 Increase % Increase Revenues: Program revenue: Charges for services $ 911,139 $ 879,296 $ 31,843 3.6 Grants and contributions 658,880 9,049,506 -8,390,626 -92.7 General revenue: General property tax 27,630,594 26,350,722 1,279,872 4.9 Investment income 80,453 1,228,471 - 1,148,018 -93.5 Other 2,474,038 488,273 1,985,765 406.7 Total Revenues 31,755,104 37,996,268 -6,241,164 -16.4 Expenses 20,557,465 19,816,783 740,682 3.7 Change in net assets 11,197,639 18,179,485 -6,981,846 -38.4 Analysis of Change in Net Assets For the year ended March 31, 2010, the District's net assets increased by $11.2 million. The increase in overall expenses was due to planned increases in salaries, benefits, services and supplies. Salaries and benefits represented 49%of expenses compared to 47% in fiscal 2009. Salaries and benefits increased 8.6% over the prior fiscal year. This increase was principally due to a filling vacant positions and lower staff turnover. Service and supply expense declined by 2.6%, largely due to the lack of election expense in fiscal 2010. Interest charges decreased slightly due to the impact of scheduled principal repayments. Program revenues include rental income, grants and cash donations. Grant income is mostly tied to acquisitions of specific parcels of land. Given the state budget crisis, grants for land acquisition were scarce in fiscal 2010, with only $500,000 obtained. However, the District succeeded in obtaining $2.3 million of gifts of land, mostly additions to the San Antonio and Monte Bello Open Space Preserves. Grant income was relatively high in fiscal 2009 due to the acquisition of the Mindego Ranch property, for which the District received $8.1 million of grant funding. Rental income increased by 3.6%. Tax revenue increased by 4.9% in fiscal 2010 compared to growth of 6.4% in fiscal 2009. Revenue growth slowed significantly in the Santa Clara County portion of the District, from 8.0% in fiscal 2009 to 3.1% in fiscal 2010. However, this was offset by higher growth in the San Mateo County portion, from 3.0% in fiscal 2009 to 8.5% in fiscal 2010. The District receives approximately two-thirds of its tax revenue from Santa Clara County and one-third from San Mateo County. 5 GENERAL FUND The General Fund balance sheet includes all District accounts except for debt and capital p P assets. At March 31, 2010,the General Fund had a fund balance of$28.9 million, down$7.7 million from the prior year-end. This decrease was the result of spending cash to complete land purchases. All but $0.1 million of this fund balance is unreserved and designated for future land acquisitions, including $12.5 million budgeted for land purchases in fiscal year 2011, net of associated grant funding. DEBT SERVICE FUND The only asset in the Debt Service Fund, $1.4 million, is a reserve fund required by the terms of the District's 2004 Revenue Bonds. The funds are held by the bond trustee and will be used to make the final debt service payment on this issue. The District receives the interest earned on this reserve fund, and this is shown on the Statement of Revenues, Expenditures and Changes in Fund Balance--Governmental Funds. Total debt service in fiscal year 2010 was $7.82 million, consisting of$2.90 million of principal and$4.92 million of interest. CAPITAL ASSETS As of March 31, 2010, the District's investment in capital assets is $348.8 million, net of accumulated depreciation. The District added $16.6 million of land in fiscal year 2010, representing 93% of the total increase in capital assets, and has committed $2.2 million of its fund balance for various uncompleted capital projects included in construction in progress. Additional information on the District's capital assets can be found in Note 4 in the Notes to the Basic Financial Statements. LONG-TERM DEBT As of March 31, 2010, the District's long-term debt includes $1.7 million of subordinated notes issued to sellers in District land purchase transactions, $111.0 million of Authority revenue bonds sold to the public in 1999, 2004, and 2007, $4.1 million of Refunding Promissory Notes sold to the public in 2005, and $7.8 million of accreted interest, unamortized premium and unamortized loss on refunding. The Authority bonds and Refunding notes were originally rated AAA by Moody's and Standard & Poor's based on municipal bond insurance policies purchased from Ambac Assurance Corporation and MBIA. Due to increased loss projections from mortgage-related risk exposures, these insurance companies no longer carry AAA ratings. The latest ratings of these insurers, by Moody's, are Caa2 for Ambac (3/26/10) and Baal for MBIA (6/25/09). The District's last stand-alone credit rating was AA- from Standard & Poor's in November 2006. Additional information on the District's long-term obligations can be found in Note 6 in the Notes to the Basic Financial Statements. 6 BUDGETARY PERFORMANCE The Budgetary Comparison Schedule—General Fund shows how the District financial results compared to the original budget adopted in March 2009 and the final budget adjusted in December 2009. Total District revenue in fiscal 2010 was $1.0 million, or 3.1%, over budget, due primarily to gifts of land. Tax revenue was within 0.1% of the final budget. Grant income was below budget due to delay in completing certain land purchase transactions. Interest income was under budget due to continued reduction in interest rates and a correction of over-estimated interest accruals from prior years. Excluding land purchase transactions and debt service, fiscal year 2010 expenditures were approximately$1.4 million, or 8.8%, below the final budget. Salaries and benefits were $0.2 million, or 2.2%, below budget, services and supplies cost $0.4 million, or 11.6%, less than budget, and non-land capital spending was $0.8 million, or 37.0%, under budget. This overall operating expense budget performance, 91% of budget, was within the normal range of recent years (89%to 94% of budget). ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The Board of Directors adopted the District's budget for fiscal year 2011 on March 24, 2010. This budget assumes very low growth in property tax revenue, about 0.8%, due to downward reassessments and slow turnover of residential property in both Santa Clara and San Mateo County portions of the District, and to the impact of the negative change in the state consumer price index. The latest reports from the county assessors on July 1, 2010 indicate that the fiscal 2011 property tax revenue within District boundaries will likely decrease by about 0.1 percent. This would yield fiscal 2011 tax revenue of about$300,000 below budget. The total land acquisition budget is $15.0 million in fiscal 2011, partially covered by $2.5 million of associated acquisition-related grant income. Debt service requirements are $8.1 million. If all revenues and expenditures occur as budgeted and the District does not complete any financings, the District's cash position would decrease by $9.9 million in fiscal year 2011. The District is currently pursuing potential land acquisition projects which would use up all undesignated reserves within three years. ADDITIONAL FINANCIAL INFORMATION This financial report is designed to provide a general overview of the District's finances for all those with an interest in the District's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the District Clerk, 330 Distel Circle, Los Altos, CA 94022. 7 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT STATEMENT OF NET ASSETS MARCH 31,2010 ASSETS Cash and investments(Note 2) $20,964,120 Restricted cash and investments(Note 2) 1,417,195 Receivables: Taxes 7,265,700 Interest 70,000 Grant 506,899 Deposit 1,060,771 Rent 10,398 Prepaid expense 14,683 Notes receivable(Note 3) 226,455 Deferred charges 1,154,337 Net OPEB Asset(Note 9) 1,666,561 Capital assets(Note 4): Nondepreciable Land 335,785,573 Construction in progress 2,218,316 Depreciable,net of accumulated depreciation Structures and improvements 5,677,962 Infrastructure 2,922,571 Equipment 685,815 Vehicles 1,472,385 Total Assets 383,119,741 LIABILITIES Accounts payable 703,526 Accrued liabilities 220,576 Deposits payable 54,455 Interest payable 398,531 Compensated absences(Note 5): Due in one year 104,783 Due in more than one year 1,007,669 Long-term debt(Note 6): Due in one year 3,563,945 Due in more than one year 120,106,799 Total Liabilities 126,160,284 NET ASSETS(Note 11): Investment in capital assets,net of related debt 225,091,878 Restricted for debt service 1,417,195 Unrestricted 30,450,384 Total Net Assets $256,959x457 See accompanying notes to financial statements 8 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT STATEMENT OF ACTIVITIES FOR THE YEAR ENDED MARCH 31,2010 Program expenses: General government Salaries $7,378,799 Benefits 2,717,166 Directors 25,300 Service and supplies 3,133,120 Depreciation(Note 4) 714,805 Interest 6,207,538 Loss on refunding of debt 380,737 Total program expenses 20,557,465 Program revenues: Charges for services(Note 7) 911,139 Capital grants and operating contributions 658,880 Land donation 2,258,500 Total program revenues 3,828,519 Net program expenses 16,728,946 General revenues: Property tax increment 27,630,594 Use of money and property 80,453 Miscellaneous 215,538 Total general revenues and transfers 27,926,585 Change in Net Assets 11,197,639 Net assets-beginning 245,761,818 Net assets-ending $256,959,457 See accompanying notes to financial statements 9 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT GOVERNMENTAL FUNDS BALANCESHEET MARCH 31,2010 Total Governmental General Fund Debt Service Fund Funds ASSETS Cash and investments(Note 2) $20,964,120 $20,964,120 Receivables: Taxes 7,265,700 7,265,700 Interest 70,000 70,000 Grant 506,899 506,899 Deposit 1,060,771 1,060,771 Rent 10,398 10,398 Prepaid expense 14,683 14,683 Restricted cash and investments(Note 2) $1,417,195 1,417,195 Notes receivable(Note 3) 226,455 226,455 Total Assets $30,119,026 $1,417,195 $31,536,221 LIABILITIES Accounts payable $703,526 $703,526 Accrued liabilities 220,576 220,576 Deposits payable 54,455 54,455 Deferred revenue(Note 3) 226,455 226,455 Total Liabilities 1,205,012 1,205,012 FUND BALANCES Reserved for: Debt service $1,417,195 $1,417,195 Encumbrances $579,446 579,446 Unreserved,designated for: Budgeted land acquisition 15,656,500 15,656,500 Unreserved 12,678,068 12,678,068 Total fund balance 28,914,014 1,417,195 30,331,209 Total liabilities and fund balance $30,119,026 $1,417,195 $31,536,221 See accompanying notes to financial statements 10 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Reconciliation of the GOVERNMENTAL FUNDS--BALANCE SHEET with the STATEMENT OF NET ASSETS FOR THE YEAR ENDED MARCH 31,2010 Total fund balances reported on the governmental funds balance sheet $30,331,209 Amounts reported for Governmental Activities in the Statement of Net Assets are different from those reported in the Governmental Funds above because of the following: CAPITAL ASSETS Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental Funds. 348,762,622 NOTES RECEIVABLE Notes receivables are not available to pay for current period expenditures and,therefore,are deferred on the modified accrual basis in the balance sheet of government funds 226,455 DEFERRED CHARGES Bond issuance costs are expended in governmental funds when paid,however,they are capitalized and amortized over the life of the corresponding bonds for purposes of the statement of net assets 1,154,337 LONG-TERM LIABILITIES The liabilities below are not due and payable in the current period and therefore are not reported in the Funds: Long-term debt (123,670,744) Accrued interest payable (398,531) Compensated absences (1,112,452) Net OPEB Asset Net OPEB Asset is not available to pay for current period expenditures and,therefore,are deferred on the modified accrual basis in the balance sheet of government funds 1,666,561 NET ASSETS OF GOVERNMENTAL ACTIVITIES $256,959,457 See accompanying notes to financial statements 11 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT GOVERNMENTAL FUNDS STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED MARCH 31,2010 Total Governmental General Fund Debt Service Fund Funds REVENUES Property taxes $27,630,594 $27,630,594 Grant income 658,880 658,880 Investment income 78,855 $1,598 80,453 Property management(Note 7) 911,139 911,139 Other income 223,923 223,923 Land Donation 2,258,500 2,258,500 Total Revenues 31,761,891 1,598 31,763,489 EXPENDITURES Current: Salaries 7,274,016 7,274,016 Benefits 2,660,727 2,660,727 Directors 25,300 25,300 Services and supplies 3,109,803 3,109,803 Capital outlay: New land purchases 17,242,551 17,242,551 Land acquisition support costs 247,052 247,052 Structures and improvements 609,115 609,115 Equipment 294,789 294,789 Vehicles 162,709 162,709 Debt service: Principal 2,899,738 2,899,738 Interest and fiscal charges 4,919,192 4,919,182 Total Expenditures 31,626,062 7,818,920 39,444,982 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 135,829 (7,817,322) (7,681,493) OTHER FINANCING SOURCES(USES) Transfers in 7,829,306 7,829,306 Transfers(out) (7,829,306) (7,829,306) Total Other Financing Sources(Uses) (7,929,306) 7,829,306 NET CHANGE IN FUND BALANCES (7,693,477) 11,984 (7,681,493) Fund balances at beginning of year 36,607,491 1,405,211 38,012,702 Fund balances at end of year $28,914,014 $1,417,195 $30,331,209 See accompanying notes to financial statements 12 M MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Reconciliation of the NET CHANGE IN FUND BALANCES-TOTAL GOVERNMENTAL FUNDS with the STATEMENT OF ACTIVITIES FOR THE YEAR ENDED MARCH 31,2010 The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues,Expenditures and Changes in Fund Balance,which measures only changes in current assets and current liabilities on the modified accrual basis,with the Change in Net Assets of Governmental Activities reported in the Statement of Activities,which is prepared on the full accrual basis. NET CHANGE IN FUND BALANCES-TOTAL GOVERNMENTAL FUNDS ($7,681,493) Amounts reported for governmental activities in the Statement of Activities are different because of the following: CAPITAL ASSETS TRANSACTIONS Governmental Funds report capital outlays as expenditures.However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense. The capital outlay expenditures are therefore added back to fund balance 18,556,216 Loss from the retirement of capital assets are deducted from the fund balance (104,887) Depreciation expense is deducted from the fund balance (620,144) NOTES RECEIVABLE Repayment of notes receivable is reported as revenue in governmental funds,and thus,has the effect of increasing fund balance because current financial resources have been received. However,the loan payments reduce the receivables in the statement of net assets and do not generate revenue in the statement of activities. (8,385) Payment that was not collectible at year end (13,091) LONG-TERM DEBT PROCEEDS AND PAYMENTS Repayment of bond principal is an expenditure in the governmental funds,but in the Statement of Net Assets the repayment reduces long-term liabilities. Accreted interest on capital appreciation bonds (1,355,684) Repayment of debt principal is added back to fund balance 2,899,738 Change in accrued interest payable 11,319 Amortization of bond premium 56,009 Amortization of loss on refunding (319,273) Amortization of deferred amounts (61,464) ACCRUAL OF NON-CURRENT ITEMS The amounts below included in the Statement of Activities do not provide or(require)the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds(net change): Compensated absences (104,783) Net OPEB Asset (56,439) CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $11,197,639 See accompanying notes to financial statements 13 i This Page Left Intentionally Blank MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. General The Midpeninsula Regional Open Space District(the District)was formed in 1972 to acquire and preserve public open space land in northern and western portions of Santa Clara County. In June 1976, the southern and eastern portions of San Mateo County were annexed to the District. The District annexed a small portion of the northern tip of Santa Cruz County in 1992. In September 2004, the District completed the Coastside Protection Program, which extended the District boundaries to the Pacific Ocean in San Mateo County, from the southern borders of Pacifica to the San Mateo/Santa Cruz County line. B. Reporting Entity As required by generally accepted accounting principles,these basic financial statements present Midpeninsula Regional Open Space District and its component unit. The component unit discussed in the following paragraph is included in the District's reporting entity because of the significance of their operational or financial relationships with the District. Blended Component Unit - The District and the County of Santa Clara entered into a joint exercise of powers agreement dated May 1, 1996, creating the Midpeninsula Regional Open Space District Financing Authority(the Authority), pursuant to the California Government Code. The District is financially accountable for the Authority, as it appoints a voting majority of the governing board; is able to impose its will in the Authority; and the Authority provides specific financial benefits to, and imposes specific financial burdens on,the District. The Authority was formed for the sole purpose of providing financing assistance to the District to fund the acquisition of land to preserve and use as open space. As such,the Authority is an integral part of the District, and accordingly, all of the Authority's activity is blended within the accompanying debt service fund. C. Basis of Presentation The District's Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial j reporting standards followed by governmental entities in the United States of America. These Statements require that the financial statements described below be presented. Government-wide Statements: The Statement of Net Assets and the Statement of Activities display information about the primary government (the District) and its component unit. These statements include the financial activities of the overall District government. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. 15 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the District's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program and(c)fees,grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes,are presented as general revenues. Fund Financial Statements: The fund financial statements provide information about the District's funds, including blended component units. Separate statements for each fund category governmental and fiduciary—are presented. The emphasis of fund financial statements is on major individual governmental fiords,each of which is displayed in a separate column. D. Major Funds Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The District may also select other funds it believes should be presented as major funds. The District reported all of its funds as major governmental funds in the accompanying financial statements: General Fund-The General Fund is the general operating fund of the District. It is used to account for all financial resources. The major revenue sources for this Fund are property taxes, grant revenues and interest income. Expenditures are made for public safety and other operating expenditures. Debt Service Fund—The Debt Service Fund is used to account for accumulation of resources for, and the payment of long-term debt principal, interest and related costs. Resources are provided by General Fund transfers and interest income on unspent funds. E. Basis of Accounting The government-wide financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting.Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred,regardless of when the related cash flows take place. 16 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available. The District considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year-end. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources. Non-exchange transactions,in which the District gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis,revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. The District may fund programs with a combination of cost-reimbursement grants and general revenues. Thus, both restricted and unrestricted net assets may be available to finance program expenditures. The District's policy is to first apply restricted grant resources to such programs, followed by general revenues,if necessary. F. Budgets and Budgetary Accounting The District's Board of Directors adopts an annual operating budget for the District as a whole, which includes both its General and Debt Service Funds on or before March 31, for the ensuing fiscal year. The Board of Directors may amend the budget by resolution during the fiscal year. The legal level of control,the level at which expenditures may not legally exceed the budget, is at the category level. Encumbrances are recorded as reservations of fund balance since they do not constitute expenditures or liabilities. All unencumbered appropriations lapse at the end of the fiscal year. G. Use of Estimates The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly,actual results could differ from those estimates. H. Compensated Absences The total amount of liability for compensated absences is reflected in the basic financial statements. See Note 5 for additional information regarding compensated absences. 17 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(Continued) L Cash and Cash Equivalents For purposes of the statement of cash flows the District defines cash and cash equivalents to include all cash and temporary investments with original maturities of three months or less from the date of acquisition. J. Property Taxes Property taxes are levied b Santa Clara and San Mateo Counties and a portion is distributed to P rtY Y the District. The District recognizes property taxes as revenue in the fiscal year of levy. S. Debt Discount and Issuance Costs i Debt discount and issuance costs are capitalized as an offset to long-term debt and amortized using the effective interest method over the life of the related debt. Issuance costs for the District's tax-exempt commercial paper short-term borrowings are expensed as incurred. j L. Proposition lA Under the provisions of Proposition I and as part of the fiscal year 2009-10 budget package passed by the California State legislature on July 28,2009,the State of California borrowed 8% of property tax revenue, including those property taxes associated with the in-lieu motor vehicle license fees, triple flip in lieu sales taxes, and supplemental property taxes, apportioned to the District. The State is required to repay the $2,177,515 it borrowed from the District, plus interest,by June 30,2013. This borrowing by the State of California was recognized as a receivable in the accompanying financial statements. Under the modified accrual basis of accounting,the borrowed tax revenues are not permitted to be recognized as revenue in the governmental fund financial statements until the tax revenues are received from the State of California,which is not expected until fiscal year 2012-13. In the government-wide financial statements, the tax revenues were recognized in the fiscal year for which they were levied(fiscal year 2009-10). 18 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 2—CASH AND INVESTMENTS A. Policies The District and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments,or by an electronic entry registering the owner in the records of the institution issuing the security,called the book entry system. In order to maximize security, the District employs the Trust Department of a bank as the custodian of all District managed investments,regardless of their form. California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110%of the District's cash on deposit or first trust deed mortgage notes with a value of 150%of the District's cash on deposit as collateral for these deposits. Under California Law this collateral is held in an investment pool by an independent financial institution in the District's name and places the District ahead of general creditors of the institution pledging the collateral The District's investments are carried at fair value, as required by generally accepted accounting principles.The District adjusts the carrying value of its investments to reflect their fair value at each fiscal year end,and it includes the effects of these adjustments in income for that fiscal year. In the District's case, fair value equals fair market value, since all District's investments are readily marketable. B. Classification Cash and investments are classified in the financial statements as shown below,based on whether or not their use is restricted. 2010 Cash and cash equivalents,available for District operation $34,637 Investments,available for District operation 20,929,483 Restricted cash and investments 1,417,195 Total Cash and Investments $22,381,315 The District's cash and investments consist of the following at March 31: 2010 Cash on hand $800 Deposits 33,837 Investments 22,346,678 Total Cash and Investments $22,381,315 19 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 2—CASH AND INVESTMENTS(Continued) C- Investments Authorized by the California Government Code and the District's Investment Policy The District's Investment Policy and the California Government Code allow the District to invest in the following, provided the credit ratings of the issuers are acceptable to the District and approved es and maturities are not exceeded. The table below also identifies certain PP percentages g provisions of the California Government Code or the District's Investment Policy where it is more restrictive: Maximum Minimum Maximum Maximum Remaining Credit Percentage Investment Authorized Investment Type Maturity Quality of Portfolio In One Issuer U.S.Treasury Obligations 5 years N/A No Limit No Limit U.S.Agency Securities 5 years N/A No Limit No Limit j $40 million per California Local Agency Investment Fund Upon Demand N/A account N/A Negotiable Certificates of Deposit 5 years N/A 30% No Limit Bankers Acceptances 180 days N/A 40% 30% Commercial Paper 270 days A 25% 10% Repurchase Agreements 1 year N/A No Limit No Limit Reverse Repurchase Agreements 92 days N/A 20% No Limit Medium Term Notes 5 years A 30% No Limit Money Market and Mutual Funds N/A Highest Category 20% 10% D. Investments Authorized by Debt Agreements The District must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the District fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with District resolutions,bond indentures or State statutes.At March 31,2010,the bond indentures provided no advice about investing the bonds and contain no limitations for maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type. E. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally, the longer the maturity of an investment,the greater the sensitivity of its fair value changes in market interest rates. The District generally manages its interest rate risk by holding investments to maturity. 20 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 2—CASH AND INVESTMENTS(Continued) Information about the sensitivity of the fair values of the District's investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the District's investments by maturity or earliest call date: 12 Months More than Investment Type or less 25 Months Total Held by District: California Local Agency Investment Fund $7,549,885 $7,549,885 Santa Clara County Pool 13,379,598 13,379,598 Held by Trustees: U.S.Federal Agency Securities $1,323,591 1,323,591 Money Market Mutual Funds(U.S. Securities) 93,604 93,604 Total Investments $21,023,087 $1,323,591 $22,346,678 The District is a participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.The District reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The balance is available for withdrawal on demand, and is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligations,mortgage-backed securities,other asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies, government-sponsored enterprises, United States Treasury Notes and Bills,and corporations. At March 31,2010,these investments matured in an average of 213 days. The fair value of the District's investment in the pool is reported at amounts based on the District's pro-rata share of the fair value provided by the County Treasurer for the entire portfolio (in relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the accounting records maintained by the County Treasurer, which is recorded on the amortized costs basis. Santa Clara County Pool funds were available for withdrawal on demand and matured in an average of 300 days at March 31,2010. 21 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 2—CASH AND INVESTMENTS(Continued) F. Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of March 31,2010, for each investment type as provided by Moody's investment rating system. Investment Type Aaa Total Held by Trustees: U.S.Federal Agency Securities $1,323,591 $1,323,591 Money Market Mutual Funds(U.S. Securities 93,604 93,604 Totals $1,417,195 Not rated: California Local Agency Investment Fund 7,549,885 Santa Clara County Pool 13,379,598 Total Investments $22,346,678 G. Concentration Risk Investments in any one issuer, other than U.S. Treasury securities, mutual funds, and external investment pools, that represent 5 percent or more of total District portfolio Entity-wide investments,are as follows at March 31,2010: Investments Reporting Type Investment Amount Federal Home Loan Mortgage Corp. U.S.Federal Agency Securities $1,323,591 H. Restricted Cash and Investments The District has the following restrictions on cash and investments: Restricted for Debt Service - The District has moneys held by Bank of New York as trustee, pledged to the payment or security of its outstanding bond issues. All transactions associated with debt service are administered by the Bank. The cash and investment amounts were $1,417,195 at March 31,2010. 22 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 3—NOTES RECEIVABLE On December 17, 1997,the District sold the title to and possession of a 50-year fee determinable estate 10-acre parcel near the Skyline Ridge Open Space Preserve. The District financed the purchase in the amount of$288,800 over 25 years at a rate of 10%per annum. Monthly principal and interest payments of$2,634 are due on the ls`of each month and late if not paid by the 10`h, with the final payment scheduled December 1,2022. The outstanding balance at March 31,2010 was$226,455. On March 31, 2003, the District entered into an agreement with Graphic Arts Center Publishing Company(The Company), in which the Company would pay royalties to the District for the sales of their books. In 2007, the Company filed for Chapter 11 bankruptcy, in which the U.S. Bankruptcy court ruled that the District will be paid back in full plus interest over the 5 year period that began in spring 2007. The royalties due to the District total $15,305 over 5 years with an interest rate of 8.25% per annum. Monthly principal and interest payments of$375 are due with the final payment scheduled to be received in February 2012. The outstanding balance at March 31,2010,was$13,091,however,the management determined this amount is not collectible at year end. NOTE 4—CAPITAL ASSETS Capital assets are recorded at the time of purchase and are capitalized at cost. The District capitalizes as part of the asset cost, any significant interest incurred during the construction phase of the asset. Depreciation is provided using the straight-line method for assets other than land. Estimated useful lives are as follows: Structures and improvements 10 to 30 years Infrastructure 30 to 40 years Equipment 5 to 20 years Vehicles 10 to 20 years 23 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 4—CAPITAL ASSETS Continued Changes in capital assets accounts are summarized below: Balance at Additions& Retirements& Balance at March 31,2009 Transfers Transfers March 31,2010 Capital assets not being depreciated: Land $319,200,973 $17,489,600 ($905,000) $335,785,573 Construction in Progress 1,637,226 686,186 (105,096) 2,219,316 Total capital assets not being depreciated 320,838,199 $18,175,786 ($1,010,096) 338,003,889 I j Capital assets being depreciated: Structures and improvements 10,908,518 $905,001 11,813,519 Infrastructure 3,658,690 99,444 3,758,134 Equipment 1,086,525 219,265 ($50,677) 1,255,113 Vehicles 2,322,230 161,161 (48,555) 2,434,836 Total capital assets being depreciated: 17,975,963 $1,384,871 ($99,232) 19,261,602 Less accumulated depreciation for: Structures and improvements 5,771,901 $363,656 6,135,557 Infrastructure 729,775 105,788 835,563 Equipment 543,677 76,298 ($50,677) 569,298 Vehicles 837,372 169,063 (43,984) 962,451 Total accumulated depreciation 7,882,725 $714,805 ($94,661) 8,502,869 Net capital assets being depreciated 10,093,238 10,758,733 Total capital assets,net $330,931,437 $348,762,622 Adjustments made were based on a physical inventory of capital assets at March 31,2010. Construction in progress represents construction of structure and improvements and infrastructure not yet placed in service at March 31,2010. At March 31, 2010, the District had made commitments of approximately $2.1 million for construction work,legal and consulting fees,and purchases of supplies and equipment. I I 24 i MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 5—ACCRUED COMPENSATED ABSENCES In accordance with the District's memorandum of understanding with various employee groups, employees accrue fifteen days of vacation during the first nine years of service, twenty days between service years ten and fourteen, twenty-one days between service years fifteen and nineteen, twenty-three days between service years twenty and twenty-four, and twenty-five days after twenty-five years of service. An employee may accumulate vacation time earned to a maximum of two times the amount of his/her annual vacation time. Full-time employees accrue twelve days of sick leave annually from the date of employment. An employee may accumulate sick leave time earned on an unlimited basis. Upon resignation, separation from service, or retirement from District employment, workers in good standing with ten or more years of District employment shall receive a cash payment of the equivalent cash value of accrued sick leave as follows: Percentage of equivalent cash value of accrued Years of Employment sick leave I 10-15 20% 16-20 25% 21 or more 30% I An employee hired before August 9, 2006, who retires from the District shall receive a cash payment of the percentage of equivalent cash value or accrued sick leave based on years of employment as described above, and apply the remainder of the equivalent cash value toward his/her cost of retiree medical plan premiums and/or other qualified medical expenses. Upon retirement,the amount qualified and designated for retiree medical costs shall be deposited in the Retiree Health Savings (RHS)plan, set up by the District. The cost for maintaining the retiree's RHS account and the annual fee for the reimbursement process of qualified medical expenses will be paid for by the retiree. An employee hired on or after August 9, 2006, who retires from the District may elect to receive j only a cash payment of the percentage of equivalent cash value of accrued sick leave based on years of employment as described above. In all cases the equivalent cash value of accrued sick leave will be based on current rate of pay as of the date of separation from District employment. The District accrues for all salary-related items in the government-wide statements for which they are liable to make a payment directly and incrementally associated with payments made for compensated absences on termination. Compensated absences were $1,112,452 as of March 31, 2010. 25 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 5—ACCRUED COMPENSATED ABSENCES(Continued) The changes in compensated absences were as follows: Governmental Activities Beginning Balance,at March 31,2009 $1,007,669 Additions 104,783 Payments made during fiscal year Ending Balance,at March 31,2010 $1,112,452 Current Portion $104,783 NOTE 6—LONG-TERM DEBT A. Current Year Transactions and Balances Original Amount Issue Balance Balance due within Amount March 31.2009 Additions Retirements March 31,2010 one year Promissory Notes Hunt Living Trust Promissory Note 5.00-5.50°/a,due 4/2/2023 $1,500,000 S1,500,000 $1,500,000 Daloia Land Contract Promissory Note 6.25°/a due 10/10/2017 240,000 164,948 ($14,738) 150,210 $15,691 2005 Refimding Promissory Notes 3.25-5.00%,due 4/1/2015 4,630,000 4,255,000 (150,000) 4,105,000 160,000 Total promissory notes 6,370,000 5,919,948 (164,738) 5,755,210 175,681 Revenue Bonds 1999 Lease Revenue Bonds 3.70-5.40"/u,due 4/1/2031 29,663,021 23,383,021 (1,205,000) 22,178,021 1,340,000 2004 Revenue Bonds 2.00-5.408/a,due 9/1/2034 31,900,010 31,600,010 (200,000) 31,400,010 250,000 2007 Series A Revenue Refimding Bonds 4.00-5.00%,due 9/1/2027 52,415,000 52,415,000 52,415,000 2007 Series B-T Taxable Revenue Refunding Bonds,5.15016,due 9/1/2012 6,785,000 5,020,000 (1,330,000) 3,690,000 1,535,000 Unamortized premium 718,859 (56,009) 662,850 (56,009) Unamortized loss on refunding (4,220,128) 319,273 (3,900,855) — 319,273 Total revenue bonds 120,763,031 108,916,762 (2,47I,736) 106,445,026 3,388,264 Accreted Interest 1999 Revenue Bonds Accretion 9.694,655 $1,260,324 10,954,979 2004 Lease Revenue Bonds Accretion 420,169 95,360 515,529 Total Accretion 10,114,924 1,355,684 11,470,508 Total debt $1271133,031 5124,951,534 $1,355684 (52,636,474) 5123,670,744 $3,563,945 26 i I DIIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 6—LONG-TERM DEBT{Continued) B. Promissory Notes Hunt Living Trust Promissory Note On April 1, 2003, the District entered into a $1,500,000 promissory note with the Hunt Living Trust as part of a lease and management agreement.The note is due in full on April 1, 2023 and bears interest at 5.5% semi-annually through April 1, 2013 and 5.0% per annum until the maturity, or prior redemption, of the note. At March 31, 2010, the outstanding balance due on the note was$1,500,000. Land Purchase Contract Promissory Notes During fiscal years ending 1989, 2000, and 2003 the District entered into three land purchase contract promissory notes in the amounts of $100,000, $192,000, and $240,000, respectively. The promissory notes bear interest at fixed rates from 6.0% to 7.0% and mature at different intervals through October 10, 2017. At March 31,2010,two notes were paid off,the outstanding balance of the Daloia Land Contract note amounted to$150,210. 2005 Refunding Promissory Note On June 30, 2005, the District issued $4,630,000 of 2005 Refunding Promissory Notes for the purpose of refunding all of its outstanding 1995 Promissory Notes. The 2005 notes bear interest rates from 3.25% to 5.00%. Principal and interest rates are due semi-annually on March 1 and September 1. At March 31,2010,the outstanding balance was$4,105,000. C. Revenue Bonds 1999 Lease Revenue Bonds On January 20, 1999 the Authority, on behalf of the District, issued $29,663,021 of 1999 Lease Revenue Bonds for the purpose of acquiring land to preserve and use as open space, purchase a reserve fund surety policy, and pay bond issue costs. The bonds consist of Current Interest and Capital Appreciation Bonds. The Current Interest Bonds bear interest at 3.7% to 5.4% and are due semi-annually on March 1 and September 1. The Capital Appreciation Bonds accrete interest at 5.2%to 5.4% and compound semi-annually on March 1 and September 1. Principal payments on the Current Interest Bonds are due annually September 1. Principal payments on the Capital Appreciation Bonds are payable at maturity beginning March, 2016. At March 31, 2010, the outstanding balance of these bonds was$33,133,000. 27 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 6—LONG-TERM DEBT(Continued) 2004 Revenue Bonds On January 20, 2004, the Authority on behalf of the District, issued $31,900,010 of 2004 Revenue Bonds for the purpose of acquiring land to preserve and use as open space, repay a portion of a 1995 Promissory Note, purchase a reserve fund surety policy, and pay bond issue costs. The bonds consist of Current Interest and Capital Appreciation Bonds. The Current Interest Bonds bear interest at 2.0% to 5.4% and are due semi-annually on March 1 and September 1. The Capital Appreciation Bonds accrete interest at 5.2% to 5.4% and compound semi-annually on March 1 and September 1. Principal payments on the Current Interest Bonds are due annually September 1. Principal payments on the Capital Appreciation Bonds are payable at maturity beginning March,2020. At March 31,2010,the outstanding balance of these bonds was$31,915,539. 2007 Series A Revenue Refunding Bonds and Series B-T Taxable Revenue Refunding Bonds On December 15,2006 the District issued six series of promissory notes(2007 District Notes)for the purpose of refunding its 1996 Project Lease, 1996 Promissory Notes, 1999 Project Lease,and 1999 Promissory Notes. On December 15, 2006 the Authority, on behalf of the District, issued $52,415,000 of 2007 Series A Revenue Refunding Bonds and $6,785,000 of 2007 Series B-T Taxable Revenue Refunding Bonds for the purpose defeasing the aggregate purchase price of the 2007 District Notes. The Series A bonds bear interest from 4.0%to 5.0% and Series B-T bonds bear interest at 5.15%. Interest for both series A and B-T are due semi-annually on March 1 and September 1. Principal payments for the Series A bonds begin September, 2012 and are due annually,thereafter. Principal payments for the Series B-T bonds are due annually on September 1. At March 31, 2010 the outstanding balance of 2007 Series A Bonds is $52,415,000 and the outstanding 2007 Series B-T Bonds is$3,690,000 and the remaining balance of the defeased debt was$17,764,207. 28 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 6—LONG-TERM DEBT(Continued) D. Debt Service Requirements Annual debt service requirements are shown below for all long-term debt: For The Year Promissory Notes Ending March 31 Principal Interest Total 2011 $175,681 $277,866 $453,547 2012 796,684 254,163 1,050,847 2013 827,752 220,431 1,048,183 2014 1,163,888 173,758 1,337,646 2015 1,230,096 109,925 1,340,021 2016-2020 61,109 643,476 704,585 2021-2024 1,500,000 262,500 1,762,500 Total payments due $5,755,210 $1,942,119 $7,697,329 For The Year Revenue Bonds Ending March 31 Principal Accreted Interest Interest Total 2011 $3,125,000 $4,499,536 $7,624,536 2012 3,660,000 4,343,129 8,003,129 2013 3,660,000 4,175,407 7,835,407 2014 3,065,000 4,026,021 7,091,021 2015 3,430,000 3,881,522 7,311,522 2016-2020 23,938,159 $2,839,815 17,017,217 43,795,191 2021-2025 14,991,442 8,370,413 12,808,060 36,169,915 2026-2030 39,508,264 17,263,988 6,572,561 63,344,813 2031-2035 14,305,166 4,066,778 1,796,375 20,168,319 Less unaccreted interest (11,470,508) (11,470,508) Total payment due $109,683,031 $21,070,486 $59,119,828 $189,873,345 Plus: unamortized premiums 662,850 Minus: unamortized loss on refundings (3,900,855) Total carrying amount $106,445,026 E. Debt Repayment All debt is payable from limited ad valorem property taxes levied on all taxable property within the District. 29 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 7—RENTAL INCOME The District leases (rents) certain land and structures to others under operating leases with terms generally on a month-to-month basis. Rental income of$911,139 was received during the year ended March 31,2010. NOTE 8—RETIREMENT PLAN A. Pension Plan All permanent District employees are eligible to participate in the pension plan offered by CALPERS an agent multiple employer defined California Public Employees Retirement System (CALPERS) g p benefit pension plan which acts as a common investment and administrative agent for its participating member employers. CALPERS provides retirement and disability benefits, annual cost of living adjustments and death benefits to plan members,who must be public employees and beneficiaries. The District's employees participate in the Miscellaneous (non safety) Employee Plan. Benefit provisions under the Plan are established by State statute and District resolution. Benefits are based on years of credited service, equal to one year of full time employment. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CALPERS;the District must contribute these amounts. The Plans'provisions and benefits in effect at March 31,2010,are summarized as follows: Miscellaneous Benefit vesting schedule 5 years service Benefit payments Monthly for life Retirement Age 50 Monthly benefits,as a%of annual salary 2.0-2.5% Required employee contribution rates 8.0% Required employer contribution rates 12.498% CALPERS determines contribution requirements using a modification of the Entry Age Normal Method. Under this method, the District's total normal benefit cost for each employee from date of hire to date of retirement is expressed as a level percentage of the related total payroll cost. Normal benefit cost under this method is the level amount the District must pay annually to fimd an employee's projected retirement benefit. This level percentage of payroll method is used to amortize any unfunded actuarial liabilities. The actuarial assumptions used to compute contribution requirements are also used to compute the actuarial accrued liability. The District does not have a net pension obligation since it pays these actuarially required contributions bi-weekly. CALPERS uses the market related value method of valuing the Plan's assets. An investment rate of return of 7.75%is assumed, including inflation at 3.0%. Annual salary increases are assumed to vary by duration of service. Changes in liability due to plan amendments, changes in actuarial assumptions, or changes in actuarial methods are amortized as a level percentage of payroll on a closed basis over twenty years. Investment gains and losses are accumulated as they are realized and ten percent of the net balance is amortized annually. 30 i i I MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 8—RETIREMENT PLAN(Continued) As required by new State law, effective July 1, 2005, the District's Miscellaneous Plan was terminated, and the employees in the plan were required by CALPERS to join new State-wide pools. One of the conditions of entry to these pools was that the District true-up any unfunded liabilities in the former Plans, either by paying cash or by increasing its future contribution rates through a Side Fund offered by CALPERS. The District satisfied its Miscellaneous Plan's unfunded liability of$2,510,958 by agreeing to contribute that amount to the Side Fund through an addition to its normal contribution rates over the next 21 years. The required contributions representing annual pension cost,for the year ended June 30 were as follows: Annual Percentage of Net Fiscal Year Pension Cost APC Pension Ending (APC) Contributed Obligation 3/10/2010 $1,269,386 100% - 3/10/2009 1,115,702 100% - 3/10/2008 1,104,388 100% - The latest available actuarial values of the above State-wide pools (which differs from market value) and funding progress were set forth as follow. The information presented below relates to the State-wide pools as a whole,of which the District is one of the participating employers: I ............ Actuarial Unfunded Unfunded Annual (Overfunded) Valuation Accrued Value of (Overfunded) Funded Covered Liability as% Date Liability Assets Liability Ratio Payroll of Payroll 2006 $912,988,585 $787,758,909 $125,229,676 86.28% $200,320,145 62.51% 2007 1,315,454,361 1,149,247,298 166,207,063 87.37% 289,090,187 57.49% 2008 1,537,909,933 1,337,707,835 200,202,098 86.98% 333,307,600 60.07% Audited annual financial statements are available from CALPERS at P.O. Box 942709, Sacramento, CA 94229-2709. 31 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 9—OTHER POST EMPLOYMENT BENEFITS During fiscal year 2009, the District implemented the provisions of Governmental Accounting Standards Board Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This Statement establishes uniform financial reporting standards for employers providing postemployment benefits other than pensions(OPEB). The provisions of this statement are applied prospectively and do affect prior years financial statements. Required disclosures are presented below. The District joined the California Employers' Retiree Benefit Trust (CERBT), an agent multiple- employer plan administered by CALPERS, consisting of an aggregation of single-employer plans. District Board authorized a deposit of$1,900,000 with CERBT on June 5, 2008, to begin funding its OPEB liability. By Board resolution and through agreements with its labor unit,the District provides certain health care benefits for retired employees (spouse and dependents are not included) under third-party insurance plans. A summary of eligibility and retiree contribution requirements are shown below by bargaining unit: Eligibility -Service or disability retirement from the District -Age 50 and 5 years of service -Continue participation in Public Employees Medical and Hospital Care Act EMHCA Benefit District pays retiree premiums up to: $300 per month effective 1/1/2007 $350 per month effective l/1/2009 Surviving Spouse _Retirement plan election Continuation -Same benefit continues to surviving spouse Dental,Vision and None As of March 31, 2010, approximately 94 active employees were eligible to receive retirement health care benefits. 32 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 9—OTHER POST EMPLOYMENT BENEFITS(Continued) A. Funding Policy and Actuarial Assumptions The annual required contribution (ARC) was determined as part of a March 31, 2010, actuarial valuation using the entry age normal actuarial cost method. This is a projected benefit cost method, which takes into account those benefits that are expected to be earned in the future as well as those already accrued. The actuarial assumptions included(a)7.75%investment rate of return,(b)3.25% projected annual salary increase,and(c)3.0%health inflation increases. The actuarial methods and assumptions used include techniques that smooth the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Actuarial calculations reflect a long-term perspective and actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to revision at least biannually as results are compared to past expectations and new estimates are made about the future. The District's OPEB unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll using a 29 year amortization period. In accordance with the District's budget, the ARC is to be funded through out the year as a percentage of payroll. Concurrent with implementing Statement No.45,the District Board passed a resolution to participate in the California Employers Retirees Benefit Trust (CERBT), an irrevocable trust established to fund OPEB. CERBT is administrated by CalPERS,and is managed by an appointed board not under the control of the District Board. This Trust is not considered a component unit by the District and has been excluded from these financial statements. Separately issued financial statements for CERBT may be obtained from CALPERS at P.O. Box 942709, Sacramento,CA 94229-2709. B. Funding Progress and Funded Status Generally accepted accounting principles permits contributions to be treated as OPEB assets and deducted from the Actuarial Accrued Liability (AAL) when such contributions are placed in an irrevocable trust or equivalent arrangement. During the fiscal year 2010, the District made contribution in excess of the ARC and amortized its net OPEB obligation as presented below: Annual required contribution $19,000 Interest on net OPEB asset (133,533) Adjustment to annual required contribution 170,972 Annual OPEB cost 56,439 Net OPEB Asset at March 31,2009 1,723,000 Net OPEB Asset at March 31,2010 $1,666,561 33 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 9—OTHER POST EMPLOYMENT BENEFITS(Continued) The Plan's annual required contributions and actual contributions for fiscal years ended March 31, 2009 and 2010 are set forth below: Percentage Annual Actual of Annual Net OPEB Fiscal Year OPEB Cost Contribution OPEB Cost Asset 3/31/2009 $177,000 $1,900,000 1073% $1,723,000 3/31/2010 56,439 $0 0% 1,666,561 The Schedule of Funding Progress presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.Trend data from the actuarial studies is presented below: Overfunded Overfunded (Underfunded) Entry Age (Underfunded) Actuarial Actuarial Actuarial Actuarial Actuarial Liability as Valuation Value of Accrued Accrued Funded Covered Percentage of Date Assets Liability Liability Ratio Payroll Covered Payroll 3/31/2008 $1,078,000 ($1,078,000) 0.00% $5,590,000 (19.3%) 3/31/2010 $1,894,000 1,500,000 394,000 126.27% 5,772,000 6.8% NOTE 10—RISK MANAGEMENT A. Coverage The District is exposed to various risks of loss related to torts; theft of,damage to, and destruction of assets; injuries to employees: and natural disasters. Prior to July 1, 2002, the District managed and financed these risks by purchasing commercial insurance. On July 1, 2002,the District joined the California Joint Powers Insurance Authority(CAL JPIA). The CAL JPIA is composed of 119 California public entities and is organized under a joint powers agreement pursuant to California Government Code Section 6500 et seq. The purpose of the CAL JPIA is to arrange and administer programs for the pooling of self-insurance losses,to purchase excess insurance or reinsurance, and to arrange for group-purchased insurance for property and other coverages. The CAL JPIA's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a 9-member Executive Committee. During the past three fiscal years, none of the programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. 34 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 10—RISK MANAGEMENT(Continued) Self-Insurance Programs of the CAL JPIA General and Automobile Liability: Each member government pays a primary deposit to cover estimated losses for a fiscal year(claims year). General liability coverage includes bodily injury, personal injury, or property damage to a third party resulting from a member activity. The GL program also provides automobile liability coverage. Six months after the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Costs are spread to members as follows: the first $30,000 of each occurrence is charged directly to the member; costs from $30,000 to $750,000 are pooled based on member's share of costs under $30,000; costs in excess of$750,000 are shared by the members based upon each individual member's payroll. Costs of covered claims above$5,000,000 are currently paid by reinsurance. The protection for each member is$50,000,000 per occurrence,up to$50,000,000. Worker's Compensation: The District also participates in the worker's compensation pool administered by the CAL JPIA. Pool deposits and retrospective adjustments are valued in a manner similar to the General Liability pool. The District is charged for the first $50,000 of each claim. Costs from $50,000 to $100,000 per claim are pooled based on the member's losses under its retention level. Costs between $100,000 and $2,000,000 per claim are pooled based on payroll. Costs from $2,000,000 to $5,000,000 are paid by excess insurance purchased by the CAL JPIA. The excess insurance provides coverage to statutory limits. Purchased Insurance Environmental Insurance: The District participates in the Pollution and Remediation Legal Liability Program, which is available through the CAL JPIA. The policy provides coverage for both first and third party damage, including sudden and gradual pollution of property, streets, and storm drains owned by the District. Coverage is on a claims-made basis. There is a $50,000 deductible. The CAL JPIA has a limit of$50,000,000 for the 3-year period from July 1, 2008 through July 1, 2011. Each member of the CAL JPIA has a $10,000,000 limit during the 3-year term of the policy. Property Insurance: The District participates in the all-risk property program of the CAL JPIA, which provides all-risk coverage for real and personal property. This insurance is underwritten by several insurance companies. The property is currently insured according to a schedule of covered property submitted by the District to the CAL JPIA. There is a $5,000 per loss deductible. Premiums for the coverage are paid annually and are not subject to retroactive adjustments. Boiler & Machinery Insurance: The District participates in the boiler and machinery, which is purchased separately from All Risk. Coverage is for physical damage for sudden and accidental breakdown of boilers and machinery, and electrical injury. There is a $5,000 per accident or occurrence deductible;properties on property schedule are covered. Crime Insurance: The District participates in the crime program of the CAL JPIA in the amount of $1,000,000 per claim, with a $2,500 per claim deductible. Insurance provides coverage for employee dishonesty, failure to faithfully perform duties, forgery, counterfeiting, theft, robbery, burglary,and computer fraud. The fidelity coverage is provided through CAL JPIA. Premiums are paid annually and are not subject to retroactive adjustments. I I 35 I MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 10—RISK MANAGEMENT(Continued) Special Event Tenant User Liability Insurance: The District participates in the special events program of the CAL JPIA. The District protects itself by requiring tenant users of certain property to purchase tenant user liability insurance for certain activities on District property. The insurance premium is paid by the tenant user to the District according to a schedule. The District then pays the insurance arranged through CAL JPIA. There is no deductible and the member is added as additional insured. Liability limits are purchased in$1 million per occurrence increments. B. Liability for Uninsured Claims The District's liability for uninsured claims was estimated by management based on prior years claims experience and was computed as follows as of March 31,2010: Amount Unpaid claims,beginning of fiscal year $150,000 Incurred claims 0 Claim payments 50,000 Unpaid claims,end of fiscal year $100,000 NOTE 11—NET ASSETS Net Assets is the excess of all the District's assets over all its liabilities, regardless of fund. Net Assets are divided into three captions under GASB Statement 34. These captions apply only to Net Assets,which is determined only at the District-wide level,and are described below: Invested in Capital Assets, net of related debt describes the portion of Net Assets which is represented by the current net book value of the District's capital assets,less the outstanding balance of any debt issued to finance these assets. Restricted describes the portion of Net Assets which is restricted as to use by the terms and conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which the District cannot unilaterally alter. Unrestricted describes the portion of Net Assets which is not restricted to use. 36 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE 12—COMMITMENTS AND CONTINGENCIES A. Commitments During May 2000, the District and the County of Santa Clara (the County) entered into an agreement whereby the District would operate and manage the Rancho San Antonio County Park (the Park). The Park encompasses 165 acres owned by the County and serves as a gateway facility to the District's Rancho Santa Antonio Open Space Preserve (the Preserve). The Preserve includes the Deer Hollow Farm, a homestead and educational center operated by the City of Mountain View. Under the agreement,the District agreed to manage the Park for a term of ten years to ensure that Deer Hollow Farm receives funding for operations of no less than $50,000 per year. In return,the County contributed $1,500,000 to the District for the purpose of acquiring open space. R Contingent Liabilities The District has entered into numerous agreements, has properties that will require environmental remediation, and is named in certain claims and litigations. In the opinion of management, after consultation with counsel, the liability, if any, resulting there from will not have a material effect on the District's financial position. 37 i This Page Left Intentionally Blank REQUIRED SUPPLEMENTARY INFORMATION i i i MIDPENINSULA REGIONAL OPEN SPACE DISTRICT GENERAL FUND SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL FOR THE YEAR ENDED MARCH 31,2010 Budgeted Amounts Variance Positive Original Final Actual (Negative) REVENUES Property taxes $26,660,000 $27,610,000 $27,630,594 $20,594 Grant income 1,863,000 1,363,000 658,880 (704,120) Investment income 510,000 450,000 78,855 (371,145) Property management-rents 896,000 896,000 911,139 15,139 Other income 235,000 485,000 223,923 (261,077) Land Donation 2,258,500 2,258,500 Total Revenues 30,164,000 30,804,000 31,761,891 957,891 EXPENDITURES Current: Salaries 7,260,441 7,419,042 7,274,016 145,026 Benefits 2,713,165 2,725,110 2,660,727 64,383 Directors 25,000 25,000 25,300 (300) Services and supplies 3,611,361 3,520,712 3,109,803 410,909 Capital outlay: New land purchases 20,000,000 20,100,000 17,242,551 2,857,449 Land acquisition support costs 378,775 278,775 247,052 31,723 Structures and improvements 1,755,160 1,063,900 609,115 454,785 Equipment 1,208,400 572,900 294,789 278,111 Vehicles 170,000 170,000 162,709 7,291 Total Expenditures 37,122,302 35,875,439 31,626,062 4,249,377 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (6,958,302) (5,071,439) 135,829 5,207,268 OTHER FINANCING SOURCES(USES) Transfers(out) (7,829,306) (7,829,306) Total Other Financing Sources(Uses) (7,829,306) (7,829,306) NET CHANGE IN FUND BALANCES ($6,958,302) ($5,071,439) (7,693,477) ($2,622,038) Fund balance at beginning of year 36,607,491 Fund balance at end of year $28,914,014 40 L t Midpeninsula Regional • ' Open Space District To: Board of Directors From: Stephen E. Abbors Date: January 21, 2011 Re: FYIs GENERAL MANAGER Stephen F Abhors Regional OpenSpace 1 Midpeninsula Regional Open Space District BOARD OF DIRECTORS Pete Siemens January 14, 2011 Yoriko Kishimoto jed Cyr Curt Riffle Jeremy Dennis Nonette Hanko Fiscal Officer for San Mateo County Fire I-airy Bassett 555 County Center Cechy Harris Redwood City, CA 94063-1662 Re: Agreement Between San Mateo County and Midpeninsula Regional Open Space District (District) — Report of Purchases and Semi-Annual Installment of Fire Services Fee Dear Mr. Dennis: On behalf of the District, I am forwarding the Fire Services Fee Payment Schedule (Schedule) and payment resulting from the District's property purchases within San Mateo County (County) in the District's Coastside Protection Area, as outlined in the March 2004 Agreement (copy attached). The District and County entered into the contractual Agreement for the provision of fire-related services to District lands in the Coastside Protection Area that are not currently provided within the State Responsibility. Area by the California Department of Forestry and Fire Protection(Cal Fire). According to the Agreement, the District will, in exchange for the County's fire services, compensate the County by means of a Fire Services Fee. The District has purchased one property within the District Coastside Protection Area since its last report to you on July 2010. This property is the 14.25-acre Bergman property (APN 080-330-080), purchased on November 29, 2010. This property currently has tenants which will pay possessory interest tax; therefore, no service fee will be due from the District to County so long as the alternative tax is assessed in accordance with Section 5d of that Agreement. In accordance with the Agreement, please find enclosed the Fire Service Fee of$2,829.87 for the January 2011 installment covering the properties identified on the attached Schedule. If you have any questions regarding this letter or the attached schedule, please contact me directly at (650) 691-1200 Ext. 542 or by email at mwilliams@openspace.org. Sincerely, Michael C. Williams, Real Property Manager cc: Midpeninsula Regional Open Space District Board of Directors Stephen E. Abbors, General Manager David S. Boesch, County Manager Carol Mondino, Senior Appraiser Enclosure: Fire Service Fee Payment Schedule Check V 33o Di stel Circle Los Altos,CA 94022 i 65o69i i2oo 1 65o 69t 0485 ww\N openspace ofg I i:4D GENERAL MANAGER Stephen E Abbors Regional penSpace I Midpeninsula Regional Open Space District BOARD OF DIRECTORS Pete Siemens Yoriko January 14, 2011 Jed Cy Kishimoto i curt Riffle La Honda Pescadero Unified School District Nonette Hanko Larry Ha�wtt P.O. Box 189 (ecily Harris Pescadero, CA 94060 Attn: Amy Wooliever, Superintendent Re: Agreement Between La Honda Pescadero Unified School District (LHPUSD) and Midpeninsula Regional Open Space District (District)—Report of Purchase and Semi-Annual Installment of Tax Compensatory Fee Dear Superintendent Wooliever: On behalf of the District, I am forwarding the Tax Compensatory Fee Payment Schedule (Schedule) and payment resulting from District property purchases within the LHPUSD boundary and the District's Coastside Protection Area, as outlined in the March 2004 Agreement. The Agreement requires the District to make Tax Compensatory Fee payments to LHPUSD in two semi- annual installments on January Is' and July IS' of each calendar year for any lands purchases completed by the District within the LHPUSD boundary. The District has purchased one property within the District Coastside Protection Area since its last report to you on July 2, 2010. This property is the 14.25-acre Bergman property (APN 080-330-080), purchased on November 29, 2010. Because this property will be subject to a County Possessory Interest Tax for private residential tenants in the future, this property will receive a credit for such taxes collected by LHPUSD in accordance with Section 5(t) of the Agreement. In accordance with the Agreement, please find enclosed the LHPUSD Tax Compensatory of$7,720.79 for the January 2011 installment covering the properties identified on the attached Schedule. If you have any questions regarding this letter or the attached payment schedule, please contact me directly at (650) 691-1200 Ext. 542 or by email at mwilliams@openspace.org. Sincerely, /�A�C CjQ9, Michael C. Williams, Real Property Manager MCWJc cc: Midpeninsula Regional Open Space District Board of Directors Stephen E. Abbors, General Manager Carol Mondino, Senior Appraiser Enclosure: LHPUSD Tax Compensatory Fee payment Schedule Check 33o Distel Circle Los Altos,CA 94022 � 65o69i aaoo 65o 691 043S vvww Openspace orr, GENERALMANAGER Regional Stephen E.Abbors 0 penSpace I Midpeninsula Regional Open Space District BOARD OF DIRECTORS Pete Siemens Jed Cyr Curt Riffle Larry Hassett Cecily Harris Planning Commissioners Town of Portola Valley Portola Valley, CA 94028 Re: Conditional Use Permit Application X7D-1 69 for Additional Floor Area and Impervious Surface Area on a 229-acre parcel, located at 555 Portola Road, Spring Ridge LLC(Neely/Myers) Dear Commissioners: On behalf of Midpeninsula Regional Open Space District(District), I would like to submit the following comments regarding the proposed amendment to the Conditional Use Permit(CUP) for the property at 555 Portola Road, located adjacent to Windy Hill Open Space Preserve. As a neighbor of the project site who is concerned about aesthetic and natural resource impacts of new development, we would like to submit the following comments for the Planning Commission's consideration Previously Stated Concerns in a letter dated December 15, 2010, the District stated its concerns about the proposed agricultural building and the overall impacts of such a widely spaced development proposal for the property.These concerns are still valid,and we would like to reiterate our concerns with the full development proposal (including the artist's studio, barn, and agricultural building)as we have previously stated them. Proposed Cabana and Greenhouse Buildings VVe agree with Town staff(as laid out |n the December 8, 2O1O staff report) that the proposed cabana and greenhouse buildings appear consistent vv|ththe Tovvn'sQenem| plan, and they are � des|8nedtu � � minimize their potential impact on the environment and on the visitor experience at Windy Hill OSP. Although the cabana will be visible from the Spring Ridge Trail in Windy Hill OSP, its earth-tone colors and � materials appear appropriate to the site. We would prefer more clustered development and believe building site closer to the residence would be more appropriate, but vve acknowledge that the cabana and greenhouse buildings would bean acceptable level of development for the property. However, the Negative Declaration and |n{da| Study (N[NS) for the proposed project should include a more detailed analysis of the geologic and water quality |nnpscty of road improvements necessary for this project, especially on the stretch leading from the residence to the greenhouse, since this section will require the most improvements and lies partially on geologically unstable ground. Concerns Regarding the Full Extent mftheApplicant's Proposal � � It is our understanding that the application prepared by Town staff for the Planning Commission's consideration does not contain the full extent of the Applicant's proposal, but only includes the cabana and greenhouse buildings. In response, the Applicant requested that the Planning Commission consider their full � proposal (the cabana, greenhouse, artist's studio, barn, and agricultural building). The Applicant also indicated that they would consider a Development Agreement to identify and constrain future development of the property aLa later date. |L |s the District's belief that theP|anning Commissionshould not approve the | a3oo|s,e|Circle ms Altos,[^g40zz 1 "as0001.00n | ,6sr6910485 I wwvvnpenspace.u,m | - full extent of the Applicant's proposal without requiring guarantees for permanent open space protection at the time of approval. If the Planning Commission does approve the full proposal, it should include strict restrictions on future development and use of the property |n the form ofa Development Agreement. For example, the Planning Commission may consider placing a conservation easement on the remainder of the property that is not developed. This would ensure the preservation of the property's natural environment and aesthetic values, especially given its connectivity to a large, protected public open space preserve and the scenic views it provides to many other vantage points in the Town o/Porto}aValley. We appreciate the opportunity toreview this project and thank you for your time in reviewing this letter. If � you have any questions regarding this letter, please contact me at 650 691-1200. Sincerely, � Erica Simmons, Open Space Planner| [>n behalf uf Ana Ruiz, Planning Manager ES/a r/jb cc Leslie Lambert, Planning Manager,Town ofPodn|aValley � Stephen /\bbmm, General Manager, k4RO6D °riMROSD Board ofDirectors Ana Ruiz, Planning Manager, k4K[}SO Nr Midpeninsula Regional • ' Open Space District M 1 To: Board of Directors From: Stephen E. Abbors Date: January 26, 2011 Re: Late FYIs i ' Midpeninsula Regional Memorandum Open Space District DATE: January 26, 2011 MEMO TO: MROSD Board of Directors THROUGH: Stephen E. Abbors, General Manager FROM: Gordon Baillie SUBJECT: Monthly Enforcement Activities Reports: August—November, 2010 Please find attached the Monthly Enforcement Activities Reports for August through November, 2010. Unfortunately, the production of these reports was delayed due to work on other key projects including completion of. the Rancho San Antonio County Park Agreement, the Deer Hollow Farm Agreement, and the Maintenance Operations Manual. TO: General Manager FROM.- Gordon Baillie Monthly Field Activity Summary Report Between 81112010 And 813112010 CITE WARNING JCR KNOWN TOTALS TOTALS DISTRICT VIOLATIONS VIOLATIONS ENFORCEMENT 146 Bicycle Citations&JCRs Issued 58 Bicycle after hours 5 1 0 0 6 Closed area-bicycle 0 1 0 0 1 Parking Citations Issued 33 Helmet required 8 2 0 0 10 All Written Warnings Issued 49 Trail use speed limit 3 5 0 0 8 Police Assistance 6 Closed Area Enter temporary/regular closed area 1 1 0 0 2 LAW ENFORCEMENT 54 Dog Law Enforcement 54 Dog in prohibited area 4 8 0 0 12 Leash -required Do 13 7 0 0 20 q 9 Other ACCIDENTS/INCIDENTS 15 After hours 19 23 0 0 42 Fire Incident 2 Alcoholic beverages-beer/wine only 2 0 0 0 2 Medical-Bicycle Accident 7 Smoking-undesignated area 1 0 0 0 1 Permit Medical-Hiking/Running Accident 2 Failure to comply with permit conditions 0 1 0 0 1 Medical-Other First Aid 3 Unpermitted Large/Destructive Event 0 1 0 0 1 Vehicle Accident 1 DISTRICT TOTAL 56 50 0 0 106 CITE WARNING JCR KNOWN TOTALS NON DISTRICT VIOLATIONS VIOLATIONS MUTUAL AID 8 1 Bicycle Minor bicycling without helmet 2 0 0 0 2 Fire Incident 1 NON DISTRICT TOTAL 2 0 0 0 2 Landing Zone Only-District Land 1 GRAND TOTAL 58 50 0 0 108 Law Enforcement 1 *JCR Juvenile Contact Report Monday,January 10,2011 Page I of 4 BARKING VIOLATIONS E WARNING TOTALS Medical-Bicycle Accident 3 DISTRICT 32 0 32 Vehicle Accident 1 Prohibited Areas(Nondesignated area) 3 0 3 Prohibited Areas(Blocking traffic) 2 0 2 Prohibited Areas (Blocking gate) 3 0 3 Prohibited Areas(After hours) 24 0 24 PARKING VIOLATIONS CITE WARNING TOTALS NON DISTRICT 1 0 1 Parking in violation of sign Use for violati 1 0 1 33 0 33 DATE OCCURRENCES OF SPECIAL INTEREST Aug 01 While hiking,a visitor developed severe leg cramps. She was assessed by San Mateo County Fire and Rangers: 1 IR 1OS172 transported to a hospital by ambulance. Preserve Purisima Creek Redwoods Location Northridge Lot Aug 03 Three visitors with alcohol in their possession were observed by District staff inside the preserve. Rangers: 2 IR IOS173 Alcohol had also been given to a minor. None of the individuals had valid driver's licenses with them. No record of their drivers' licenses could be found when records were checked through radio communications. One individual stated he had driven his father's car,without permission, and without a valid driver's license. Two of the individuals were cited, and all three were released to take a taxi home. Preserve Monte Bello Location Stevens Creek Nature Trail Aug 06 A small wildland fire ocurred along side of Pheasant Creek Road. Fire personnel responded(including a Rangers: 3 IR 1OF246 CAL FIRE helicopter)and extinguished the fire. District rangers controlled traffic and investigated the Police: 1 scene. Preserve Sierra Azul Location by Pheasant Creek Aug 07 A mountain bicyclist lost control of her bike and fell, injuring her left forearm and wrist. She was Rangers: 2 IR 10S174 assessed by CAL FIRE and transported by ambulance to her personal vehicle. Preserve Long Ridge Location Long Ridge Road Aug 07 Three subjects were riding mountain bikes together in the preserve. Two were stopped and one received Rangers: 1 IR 1OF251 a warning for a trail speed use violation. A third rider failed to stop when ordered to do so, and was recorded on radar riding at a speed of 27 MPH. Preserve St.Joseph's Hill Location Aug 08 A car was being driven westbound on Highway 9 when the driver experienced difficulties with it's Rangers: 2 MA 1OS175 acceleration. The driver pulled off to the side of the road, saw something dripping from the engine and suddenly flames appeared from under the hood,which quickly engulfed the whole vehicle. District rangers arrived on the scene and took protective actions. No one was injured in the incident. Preserve Location Hwy. 9, 1/2 mile east of Hwy. 35(Saratoga side of the ridge) Aug 13 A person was observed releasing a rattlesnake near the Fault Trail. He stated that he had caught the Rangers: 1 IR 10S180 snake at his home. He was given a verbal warning and educated on why it is not appropriate to relocate wildlife in District preserves. Preserve Los Trancos Location Near the Interpretive(Fault)Trail Monday,January 10,2011 Page 2 of'4 Aug 14 A neighbor reported hearing shot- '-the area of the lower flank of Mindego Hill, be' •Mindego Lake. Rangers: 1 IR 10S205 The following day a dead deer H ind on the neighbor's property. The deer hi !n shot in the head. Preserve Russian Ridge Location Below Mindego Lake Aug 16 District Staff discovered both signboards at gate RR01 had been extensively spray painted (tagged)with Rangers: 3 IR 1OS184 black paint. The plexiglass cover on both signboards had to be replaced. Preserve Russian Ridge Location RR01 signboards Aug 24 A fire occurred approximately 30 feet off Pheasant Road in the Rancho De Guadalupe Area at a Rangers: 2 IR 1OF271 locatiation known as"dumpers corner',which has a notorious history of illegal garbage dumping. The fire burned approximately 300 feet up a gully shaded by bay trees and was extinguished by fire suppression personnel. Preserve Sierra Azul-Rancho de Guadalupe Location Pheasant Road Aug 25 During a Boy Scout sponsored ride, a juvenile bike rider fell and broke his arm. A District ranger was Rangers: 4 MA 1OS200 first on scene and began treatment on an open fracture and with help from additional staff. The patient was transported to an ambulance, and then to a local hospital. Preserve Location Grizzly Flat Trail, Upper Stevens Creek Co. Park Aug 25 Active marijuana cultivation was located by San Mateo County Sheriff during a flyover earlier in the Rangers: 1 IR 1OS199 month. District staff assisted by showing access to the area. Approximately 1,634 plants were Police: 1 confiscated. District staff will coordinate with the Sheriff Office for the cleanup. Preserve Windy Hill Location Site accessed from Middle Rd.water tank facility Aug 26 Verbal altercations occurred involving inappropriate comments between a dog walker and a bicyclist. Rangers: 1 IR 1OF272 The dog walker said altercations between dog walkers and bicyclists on the preserve were ongoing and escalating. Preserve St. Joseph's Hill Location Aug 26 A woman reported that a man had been acting suspiciously by staring at her, and asking her for a ride. Rangers: 1 IR 1OF277 She ignored the individual and left the area,and called to report the incident. Preserve Pulgas Ridge Location Parking lot Aug 26 A vehicle accident with injuries occurred in the Rancho San Antonio County Park parking lot. District Rangers: 2 AR 1OF273 rangers began paitent care, and requested both law enforcement and medical response. Both patients Police: 3 were evaluated and released by Santa Clara County Fire paramedics. Preserve Rancho San Antonio County Park Location Aug 28 A mountain bike rider lost control and injured his collar bone after hitting a rock in the trail. The patient Rangers: 1 IR 1OS202 was assessed by CAL FIRE,and refused medical transportation. Preserve Saratoga Gap Location Saratoga Gap Trail Monday,January 10,2011 Page 3 of 4 DATE ADALISM DETAIL Aug 04 White tagging. VL Preserve Ravenswood Location Sign board Aug 05 Black tagging. VL Preserve Ravenswood Location Sign board Aug 07 Graffiti on signboard VL Preserve Russian Ridge Location Parking lot Aug 14 No dogs sign on regulation sign board badly scratched. VL Preserve Sierra Azul Location SA08 Aug 14 White tagging on gate point. VL Preserve Sierra Azul Location SA08 Aug 16 Bullet holes in bald Mtn. Reg. sign. VL Preserve Sierra Azul Location SA07 Aug 16 Both plexiglas signboards tagged with large black graffiti signs. VL Preserve Russian Ridge Location parking lot Aug 18 Tagging inside restroom. VL Preserve Pulgas Ridge Location Restroom Aug 23 District rangers discovered unknown person(s) had cut a sheep's gate on Page Mill Rd. and a vehicle had possibly IR i0S194 entered the preserve. Preserve Los Trancos Location Sheep's gate along Page Mill Rd. Aug 29 No bike sign at top of trail was taken. VL Preserve Fremont Older Location Parker Ranch Monday,January 10,2011 Page 4 of 4 TO: General Manager FROM: Gordon Baillie Monthly Field Activity Summary Report Between 91112010 And 913012010 CITE WARNING JCR KNOWN TOTALS TOTALS DISTRICT VIOLATIONS VIOLATIONS ENFORCEMENT 156 Bicycle Citations&JCRs Issued 53 Bicycle after hours 1 0 0 0 1 Closed area-bicycle 5 3 0 0 g Parking Citations Issued 43 Helmet required 13 7 0 0 20 All Written Warnings Issued 57 Trail use speed limit 2 1 0 0 3 Police Assistance 3 Closed Area Enter sensitive/hazardous closed area 0 4 0 0 4 LAW ENFORCEMENT 38 Enter temporary/regular closed area o 1 0 0 1 Law Enforcement 38 Dog Dog in prohibited area 2 7 0 0 9 Leash required-Dog 5 5 0 0 10 ACCIDENTS/INCIDENTS 4 Other Medical-Bicycle Accident 1 After hours 16 21 0 0 37 Medical-Hiking/Running Accident 2 Smoking-undesignated area 4 0 0 0 4 Vehicles prohibited 0 1 0 0 1 Search&Rescue 1 Permit Failure to comply with permit conditions 0 3 0 0 3 MUTUAL AID 11 Permit Required 0 2 0 0 2 1 DISTRICT TOTAL 48 55 0 0 103 Act of Nature 1 CITE WARNING JCR KNOWN TOTALS NON DISTRICT VIOLATIONS VIOLATIONS Fire Incident 2 Other Law Enforcement 1 Littering 2 0 0 0 2 Lost Person Search 1 Trespass 0 0 0 0 0 NON DISTRICT TOTAL 2 0 0 p 2 Medical-Bicycle Accident 2 Medical-Motorcycle Accident 1 GRAND TOTAL 50 55 0 0 105 *JCR Juvenile Contact Report Monday,January 10,2011 Page I of 3 PARKING VIOLATIONS E WARNING TOTALS Vehicle Accident 2 DISTRICT 39 2 41 Disabled Parking: Permit Required unpa 1 0 1 Prohibited Areas(Signed) 3 0 3 Prohibited Areas(Nondesignated area) 1 2 3 Prohibited Areas(Blocking gate) 1 0 1 Prohibited Areas(After hours) 33 0 33 PARKING VIOLATIONS CITE WARNING TOTALS NON DISTRICT 4 1 5 Disabled Parking—Paved/Marked. 1 1 2 No parking after hours 1 0 1 Parking—State Highway 2 0 2 43 3 46 DATE OCCURRENCES OF SPECIAL INTEREST Sep 01 District staff started a search and rescue process when a coach became concerned when six high Rangers: 5 IR 1OF284 school team runners did not return from a run. The missing runners were located and reunited with their Police: 2 coach. Preserve Rancho San Antonio Location 3 found @ DHF, 3 found on PG&E Trail Sep 03 A District ranger located and cited three juveniles who were trying to hide by trespassing on McQueen's Rangers: 3 IR 1OF289 Ridge, adjacent to the former Alamden Air Force Base. The subjects all admitted to being on the base. One of the individuals stated he had taken some rope from the base as a souvenier. Preserve Sierra Azul-Mt. Umunhum Location Air Force Base Sep 04 One subject was stopped and cited for an after hours bicycle violation. The subject was equiped with a Rangers: 1 IR 1OF290 head lamp, and stated that he"rides Kennedy Trail at night once in awhile". Preserve Sierra Azul-Kennedy-Limekiln Area Location Kennedy Trail Sep 04 A subject was interviewed by a District ranger for possibly dumping waste on District land. The subject Rangers: 3 IR 1OF288 was not cited and was released. The debris is believed to have been dumped by contractors working at a private residence on Loma Chiquita road. Preserve Sierra Azul-Mt. Umunhum Location Loma Prieta Road Sep 05 Mountain View Communications relayed information from California State Parks of a group of missing Rangers: 4 MA 10S207 hikers from Portola Redwood State Park. District staff located two adults and eight children at the bottom of Slate Creek Road/Bicentennial Trail. One child had slight heat exhaustion. He was treated on scene by District staff and released to his parents by Cal Fire. Preserve Location Portola State Park @ Slate Creek/Bicentennial Sep 06 An attempted break in occurred at the former Sherril property. The renter contacted a resident District Rangers: 2 IR 10S208 ranger to inform her of the situation. Police: 5 The resident District ranger had already contacted Palo Alto Police because she had been woken when by someone trying to break into her District residence. When the District ranger had turned the outside floodlights she had seen a person with a flashlight walking toward the barn and tree farm. Five Palo Alto Police units responded, and searched the area with District rangers. They were unable to locate a suspect. Preserve Monte Bello Location Rental Residence Monday,January 10,2011 Page 2 o0 Sep 08 A District resident-ranger was av ned by sirens in the South Skyline Area, and- -nned for Rangers: 2 MA 1OS209 emergency traffic. A structure f i extended into a wildland fire in the Portola its area. District Staff responded and cancelled after confirming that no District Land was involved. A long time Portola Heights resident lost his home in the fire. Preserve Location Long Ridge Road, Portola Heights Area Sep 21 Santa Clara Sheriffs responded to a suspicious death. The area was investigated and the victims body Rangers: 2 IR 1OF306 was removed by the Santa Clara County Coroner's office. Police: 3 Preserve Bear Creek Redwoods Location BC05 Sep 24 Four juveniles were observed smoking and in possession of acicoholic beverages. They were cited for Rangers: 2 IR 10S224 smoking,the alcohol was confiscated, and they were released. Preserve Russian Ridge Location Disk line overlooking the Vista Point Sep 25 A bicycle accident occurred in St. Joseph's Hill. The patient was evaluated and released by Santa Clara Rangers: 1 AR 1OF309 County Fire paramedics. The patient was transported to his vehicle by a District ranger. Preserve St.Joseph's Hill Location Novitiate Trail Sep 28 A running injury occurred, and the patient was treated by Santa Clara County Fire paramedics and Rangers: 3 AR 1OF312 transported to her vehicle and released. Preserve Rancho San Antonio Location Baytree Cutover Trail Sep 29 An unknown suspect ignited a large box of matches on Cristo Rey Drive. Fire response was requested. Rangers: 1 MA 1OF314 District rangers were first on scene, determined there was no threat to vegetation, monitored the scene, and waited for the fire to burn out. Santa Clara County Fire took a report. Preserve Location Cristo Rey Drive Sep 29 "Area Closed"signs were vandalized after they were installed by District staff to close off illegal trail Rangers: 1 IR 1OS227 access that had been mowed without permission from a neighbor's property to a small hilltop on District land. Preserve Coal Creek Location CC03 DATE VANDALISM DETAIL Sep 20 Inside of restroom badly tagged. VL Preserve Sierra Azul Location SA06 Sep 21 Cut in the fence and one window smashed open. VL Preserve Bear Creek Redwoods Location College buildings Sep 25 Graffiti in restroom. VL Preserve Monte Bello Location Black Mountain campground Sep 26 At gate CM04-1/2 the mountain lion sign was stolen. VL Preserve El Corte de Madera Creek Location Monday,January 10,2011 Page 3 of 3 TO: General Manager FROM: Gordon Baillie Monthly Field Activity Summary Report Between 101112010 And 1013112010 CITE WARNING JCR KNOWN TOTALS TOTALS DISTRICT VIOLATIONS VIOLATIONS ENFORCEMENT 98 Bicycle Citations&JCRs Issued 37 Bicycle after hours 0 1 0 0 1 Closed area-bicycle 3 0 0 0 3 Parking Citations Issued 26 Helmet required 4 0 0 0 4 All Written Warnings Issued 30 Trail use speed limit 0 6 0 0 6 Police Assistance 5 Closed Area Climb in Designated Areas only 2 0 0 0 2 LAW ENFORCEMENT 37 Enter sensitive/hazardous closed area 3 0 0 0 3 Enter temporary/regular closed area 0 3 0 0 3 Law Enforcement 37 Dog Dog in prohibited area 2 3 0 0 5 ACCIDENTS/INCIDENTS 11 Leash required-Dog 12 4 0 0 16 Fire Incident 1 Other Lost Person Search 1 After hours 4 7 0 0 11 Nudity prohibited 1 0 0 0 1 Medical -Bicycle Accident 6 Smoking-undesignated area 3 1 0 0 4 Medical-Hiking/Running Accident 1 Vehicles prohibited 1 1 0 0 2 Medical-Other First Aid 1 Permit Failure to comply with permit conditions 0 1 0 0 1 Vehicle Accident 1 Permit Required 0 1 0 0 1 Weapons MUTUAL AID 5 Possession of/discharging weapon 1 0 0 0 1 Act of Nature 1 DISTRICT TOTAL 36 28 0 0 64 Fire Incident 1 CITE WARNING JCR KNOWN TOTALS NON DISTRICT VIOLATIONS VIOLATIONS Vehicle Accident 3 Bicycle Bicycle on designated trails 1 0 0 0 1 Dog Pets/dogs on 6 foot leash or radio collar/voice 0 1 0 0 1 Other Possession of Marijuana-<an ounce 1 0 0 0 1 NON DISTRICT TOTAL 2 1 0 0 3 GRAND TOTAL 38 29 0 0 67 "JCR Juvenile Contact Report Monday,January 10,2011 Page I of 3 PARKING VIOLATIONS E WARNING TOTALS DISTRICT 22 2 24 Disabled Parking: Permit Required unpa 1 1 2 Prohibited Areas(Red curb) 1 0 1 Prohibited Areas(Permit only) 3 0 3 Prohibited Areas(Nondesignated area) 1 1 2 Prohibited Areas(Blocking gate) 2 0 2 Prohibited Areas(After hours) 13 0 13 Take up more than one marked parking s 1 0 1 PARKING VIOLATIONS CITE WARNING TOTALS NON DISTRICT 3 0 3 Disabled Parking—Paved/Marked. 1 0 1 No parking 1 0 1 Parking in undesignated area 1 0 1 25 2 27 DATE OCCURRENCES OF SPECIAL INTEREST Oct 02 District staff was first on scene of a vehicle versus bicycle collision. Staff provided primary patient Rangers: 1 MA 10S229 assessment, and traffic control. The bicycle was under the tire of a dump truck, and the patient was on Police: 1 the side of the road complaining of shoulder and hip pain. Cal Fire and California Highway Patrol arrived and took over the scene. Preserve Off District Lands-Skyline Location Alpine Rd. approx. 1.5 miles west of Portola State Park Rd. Oct 02 A hiker suffered possible heat exhaustion while hiking. She was treated on scene by Palo Alto Fire, and Rangers: 4 IR 10S230 transported to hospital by ambulance for further evaluation. Preserve Monte Bello Location White Oak Trail Oct 08 A model airplane caught fire in Rancho San Antonio County Park and was extinguished with no threat to Rangers: 1 IR 1OF322 vegetation. Preserve Rancho San Antonio County Park Location Oct 11 A woman called Mountain View Communications to report that her husband overdue from a hike. District Rangers: 1 IR 1 OF325 Rangers responded and located the husband. He stated that he was delayed because of leg cramps. Preserve Rancho San Antonio Location Oct 13 District staff discovered a covered vehicle on District Land along with miscellaneous garbage. The Rangers: 2 IR 10S237 neighboring private structure has a history of encroachment onto the preserve. A rope fence was taken down,which had been erected as a solution to past tresspass. Preserve Teague Hill Location District land adjacent to 885 Patrol Rd.,Woodside Oct 13 District staff and the resident of a District rental unit heard a single gunshot on Monte Bello side of the Rangers: 3 IR 10S235 Skyline Ridge tree farm, in the area of an employee residence. Palo Alto Police were notified, but were Police: 2 unable to locate the shooter after a thorough search of the surrounding area. Preserve Monte Bello Location Near former Sherrill residence Mond' ,January 10,2011 Page 2 of 3 Oct 16 ' District staff responded with ligh* -I siren after receiving a request from Californi- lztate Parks to Rangers: 2 IR 10S239 backup a ranger in Portola Red Tate Parks where he had two subjects with illegally climbing police: 2 in the park. The subjects were L and released. Preserve Long Ridge Location LR13 Oct 18 A naked runner was contacted by a District ranger after the runner was seen running in view of Highway Rangers: 3 IR 10S242 35. He stated that he thought it was OK to be naked in open space. He was told to put on clothes, cited, and released. Preserve Skyline Ridge Location Equestrial lot,just inside pipe gate Oct 22 While on patrol, a Distict ranger found 13 plastic bags of garbage dumped the parking lot. East Palo Rangers: 1 IR 1OF335 Alto Public Works was notified and the garbage was removed. Preserve Ravenswood Location Bay Road, parking lot Oct 23 While on bike patrol in the preserve, a District ranger observed hikers smoking marijuana on the trail. Rangers: 1 IR 10S244 They were cited for smoking during high fire danger and warned for the marijuana. Preserve Monte Bello Location Skid Road Trail Oct 27 District rangers discovered an illegal trail off Highway 9 on the former Foster/Girdner property. A Rangers: 2 IR 1OS248 possible associated vehicle was run for registration. The rangers went on foot patrol in the area and found sections of the illegal trail still under construction. They were unable to locate the owner of the vehicle or anyone else possibly associated with the illegal trail construction. Preserve Saratoga Gap Location 1/4 mi north of Redwood Gulch Rd. in a closed area of SG OSP in the Foster Oct 31 A visitor riding her bike uphill when she was bitten by a dog on leash. She described the dog as a Rangers: 2 IR 1OF343 Collie/Shepard mix, rust and black colored and overweight. She said the dog did not initially display any signs of aggression but was sniffing her leg when it suddenly bit her, breaking the skin and putting a hole in her pants. Rangers were unable to locate the dog after searching the area.They put out a"Be on the Lookout"to surrounding pulbic agencies and San Jose Animal Control Preserve St.Joseph's Hill Location near the intersection with Flume DATE VANDALISM DETAIL Oct 02 New tagging on the inside of the restroom door. VL Preserve Sierra Azul Location SA06 Oct 21 New bench has etched in writing. VL Preserve St.Joseph's Hill Locationhilltop Oct 23 While on patrol, ranger discovered graffiti in preserve. Unknown person had used blue survey paint and painted"smiley IR 1OF336 faces"on the trail and trees, approximately 30 painted faces. Preserve Pulgas Ridge Location&Polly Geraci Trail Monday,January 10,2011 Page 3 oJ'3 TO: General Manager FROM: Gordon Baillie Monthly Field Activity Summary Report Between 111112010 And 1113012010 CITE WARNING JCR KNOWN TOTALS TOTALS DISTRICT VIOLATIONS VIOLATIONS ENFORCEMENT 139 Bicycle Citations&JCRs Issued 40 Bicycle after hours 0 2 0 0 2 Parking Citations Issued 52 Helmet required 4 1 0 0 5 Trail use speed limit 2 3 0 0 5 All Written Warnings Issued 42 Closed Area Police Assistance 5 Enter sensitive/hazardous closed area 4 2 0 0 6 Enter temporary/regular closed area 3 7 0 0 10 LAW ENFORCEMENT 36 Dog Law Enforcement 36 Dog in prohibited area 5 3 0 0 8 Leash required-Dog 12 9 0 0 21 Other ACCIDENTS/INCIDENTS 4 After hours 5 3 0 0 8 Medical -Bicycle Accident 1 Damaging/removing plants 0 1 0 0 1 Medical-Hiking/Running Accident 3 Harvesting/planting without permission 0 3 0 0 3 Operating model craft 0 2 0 0 2 Skating, Scooters, Coasting, Sledding prohibit 0 1 0 0 1 MUTUAL AID 4 Vehicles prohibited 0 2 0 0 2 Law Enforcement 1 Weapons Vehicle Accident 3 Possession of/discharging paint ball gun, BB 4 0 0 0 4 DISTRICT TOTAL 39 39 0 0 78 CITE WARNING JCR KNOWN TOTALS NON DISTRICT VIOLATIONS VIOLATIONS Other Entering, remaining after hours 1 0 0 0 1 NON DISTRICT TOTAL 1 0 0 0 1 GRAND TOTAL 40 39 0 0 79 'JCR Juvenile Contact Report Page I of 3 Monday,January 10,2011 PARKING VIOLATIONS E WARNING TOTALS DISTRICT 50 3 53 Prohibited Areas(Signed) 2 0 2 Prohibited Areas(Red curb) 1 0 1 Prohibited Areas(On hiking trail) 1 0 1 Prohibited Areas(On fire trail) 1 2 3 Prohibited Areas(Nondesignated area) 5 0 5 Prohibited Areas(Blocking gate) 2 0 2 Prohibited Areas(After hours) 37 1 38 Take up more than one marked parking s 1 0 1 PARKING VIOLATIONS CITE WARNING TOTALS NON DISTRICT 2 1 3 Disabled Parking—Paved/Marked. 0 1 1 No parking 2 0 2 52 4 56 DATE OCCURRENCES OF SPECIAL INTEREST Nov 06 A runner fell into a tree, injured both wrists, hit her face,and possibly lost consciousness. District staff Rangers: 4 IR 10S254 were first on scene and provided medical care to the patient. The victim was transported to the Skyline Ridge parking lot where CAL FIRE paramedics treated her. The patient was airlifted to hospital. Preserve Skyline Ridge Location Chestnut Orchard Nov 13 Four subjects were contacted on the Mount Umunhum Air Base and cited for violation of a"Hazardous Rangers: 2 IR 1OF354 Closed Area". Preserve Sierra Azul Location Former Almaden Air Force Base(Mt. Umunhum) Nov 13 Four subjects were stopped and cited for possesion and discharging of paint ball guns. Rangers: 3 IR 1OF353 Preserve Sierra Azul Location Nov 14 Two motorcyclists were shot with pellets while driving along Highwayy 35 in front of the North Ridge Rangers: 1 MA 1OS271 Parking lot. The victims suffered minor injuries to the hand and knee. San Mateo Sheriff took two male Police: 1 juveniles into custody, along with two pellet guns. Preserve Off District Lands-Skyline Location Hwy. 35 near Purisima Creek OSP Nov 20 A District ranger discovered an unpermitted road bicycling event on District property. The organizers Rangers: 1 IR 1OF360 were contacted and admitted they had originally applied for a permit for the use of Umunhum Road to the top of Mt. Umunhum and had been denied. The organizers said that they believed, based upon communication with District staff,that if the event were halted at the Resident gate(SA08)on Mt. Umunhum Road, no District permit would be required, because no District roads would be used. Both subjects didn't realize that what they assumed were public roads were actually entirely on District lands. The organizers also felt that signage at the bottom of Mt. Unumhum Road was ambiguous. Both organizers were issued verbal warnings and released. Preserve Sierra Azul Location Monday,January 10,2011 Page 2 of 3 Nov 25 * District and Palo Alto Rangers rr ded with Palo Alto Fire and Medics to a bicyr"-`who had crashed Rangers: 2 lR lOS267 on Canyon Trail, and was suffe m a 3"circular wound on his thigh. The ps vas transported by ground ambulance to hospita. Preserve Monte Bello Location Canyon Trail Nov 30 District staff discovered approximately 25 trees along Portola Road, on District Land just north of the Rangers: 2 IR IOS270 entrance to the Portola Road Parking Lot,which had been illegally topped. Believing it was done to improve the view of the private residence on the east side of the road,the Skyline Area Superintendent contacted the property owner as well as the staff of the Town of Portola Valley. Thus far, he has been unable to get anyone to take responsibility for the topping of the trees. Preserve Windy Hill Location Along Portola Valley rd. DATE VANDALISM DETAIL Nov 02 Dumping. VL Preserve Ravenswood Location Near power line crossing Nov 11 Graffiti on 6x6 boundary sign. VL Preserve Windy Hill Location Equestrial stile @ WH01 Nov 25 Graffiti. VL Preserve Sierra Azul Location Split rail @ SA07 Monday,January 10,2011 Page 3 qf'3