The URL can be used to link to this page

Home My Public Portal About20010101 - Agenda Packet - Board of Directors (BOD) (2) Midpeninsula Regional ' Open Space District Meeting 10-19 SPECIAL AND REGULAR MEETING BOARD OF DIRECTORS MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Wednesday,August 11,2010 SPECIAL 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. 330 Distel Circle Los Altos,California AGENDA SPECIAL MEETING 5:30* ROLL CALL SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT— CLOSED SESSION 1. Conference with Legal Counsel—Anticipated Litigation—Significant Exposure to Litigation Pursuant to Subdivision(b)of California Government Code §54956.9—One Case 2. Closed Session:Public Employee Performance Evaluation Pursuant to Government Code Section 54957 Title of Employee:General Manager 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 ** ADOPTION OF AGENDA ** INTRODUCTION OF NEW STAFF:JOEL SILVERMAN 7:10* CONSENT CALENDAR 1. Approve Minutes of the Regular and Special Board Meeting of June 23,2010 2. Approve Revised Claims Report 3. Approve Written Communications—Response to P. McGuire&D. Sullivan 4. Accept the audited Basic Financial Statements and required communications and Memorandum on Internal Control from Maze and Associates regarding the District's audited financial statements for year ending March 31.2010—B.Congdon 7:20* BOARD BUSINESS 5. Calling of a Special Board Meeting for August 30,2010,and September 30,2010—M.Radcliffe 6. Informational presentation on the California giant salamander research—J. Silverman 7. Authorize the General Manager to execute a contract with Heyday Books in an amount not to exceed b Y 40 000 for ublishin including editing and design,distribution,and promotional sales of the District's publishing. g e forthcoming coffee table book—K.Britt 8. Authorize the General Manager to execute an amendment to the professional services contract with Koff& Associates,Inc., in an additional amount not to exceed$5,520 to complete a Benefits Study in conjunction with the Classification and Compensation Study—A. Spiegel 9. Accept the proposed Standing Committee meeting schedule and authorize implementation of the proposed meeting dates beginning in January 2011—M.Radcliffe 10. Presentation of the District's Budget Forecast of FY2011-12—L.Tottori 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 SPECIAL MEETING CLOSED SESSION RECONVENED(IF NECESSARY) REPORT ON RETURN FROM RECONVENED CLOSED SESSION(IF NECESSARY)(The Board shall publicly state any reportable action taken in Closed Session pursuant to Government Code Section 54957.1) ADJOURNMENT Times are estimated and items may appear earlier or later than listed.Agenda is subject to change of order. TO ADDRESS THE BOARD: 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 during 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 an 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 ACENDA 1,Michelle Radcliffe,District Clerk for the Midpeninsula Regional Open Space District(MROSD),declare that the foregoing agenda for the Regular and Special Meeting of the MROSD Board of Directors was posted and available for review on August 6,2010,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.opetispace.or . Signed this 6`h day of August,at Los Altos,California. District Clerk August 6,2010 �I I Claims No. 10-16 Meeting 10-19 Date 8/11/10 Revised Midpeninsula Regional Open Space District # Amount Name Description 13288 $25,000.00 Fresno Mobile Radio Radio License Fee 13289 $19,130.14 Northgate Environmental Management Environmental Consulting Services-Review U.S.Army Corps Of Engineers Work At Mt. Umunhum 13290 $14,725.00 Ascent Environmental CEQA/NEPA Strategy For Mt. Umumhum Remediation&Planning 13291 $13,762,50 Go Native District Wide Vegetation Management 13292 $11,922.63 LFR Levine Fricke Engineer&Design Services-ECDM Staging Area Project 13293 $10,000.00 *1 North American Title Company Deposit-Land Acquisition 13294 $9,992.23 The Wildlife Project Sensitive Species Surveys&Biological Monitoring 13295 $7,548.00 Liebert Cassidy Whitmore Legal Services-Personnel 13296 $5,775.00 Joseph Szabo Reimbursement-Slender False Brome Treatment 13297 $5,148.12 Ecological Concerns Two Months Native Revegetation Maintenance&Monitoring- Skyline Ridge Tree Farm 13298 $4,381.00 Pacific Ag. Rentals Equipment Rental-Tractor For Discing&Mowing 13299 $3,900.31 Metro Mobile Communications Radio Reprogram&Preventative Maintenance Service On District Radios 13300 $2,765.96 Sol's Mobile Service Vehicle Maintenance&Repairs 13301 $2,730.00 Julie White Reimbursement-Slender False Brome Treatment 13302 $2,633.10 *2 First National Bank Conferences&Training-Two Registrations For The Special District&Local Government Institute/Six Webinars Through Continuing Education Of The Bar /Wellness Program Seminar 13303 $2,421.39 Patsons Media Group Printing Services-Mt. Umunhum&South Skyline Trail Brochures /Business Cards 13304 $2,275.00 Econo Tree Service Hazardous Tree Removal At RSA&St.Joseph's Hill 13305 $2,092.54 *2 First National Bank Field Supplies/Tire Gauges/Mower Parts/Sunscreen/ Hazardous Area Signs/Pest Control Supplies For Annex/Black Mountain Restroom Supplies 13306 $1,861.00 San Francisco Bay Bird Observatory Nest Surveys At Monte Bello Burn Area 13307 $1,748.03 Golden West Collision Center Patrol Truck Body Repairs 13308 $1,746.97 *2 First National Bank Advertising, Subscriptions&Books-Advertising For"Kids In Nature"Event/Survey Monkey Monthly Subscription/Field Operation Guides/Classified Ad-Election Notification For Santa Clara County/Breeding Bird Atlas 13309 $1,634.77 The Ferguson Group Legislative Consultant-Lobbyist For Mt. Umunhum 13310 $1,497.00 Macro Corporation Black Mountain Microwave Study For Districts New Radio System 13311 $1,437.92 Langley Hill Quarry Base Rock For Russian Ridge&Windy Hill Road Repairs 13312 $1,400.00 *3 Lindsay Wasserman Emerson Deposit-Catering For Employee Recognition Event 13313 $1,370.79 *2 First National Bank Business Related Meals/Food For Board Meetings&Study Session/Docent Meetings/Catering For Mt. Umunhum Event 13314 $1,227.00 Greg's Trucking Service Rock Delivery For White Oaks Trail Work 13315 $1,190,00 Heath Lukatch Reimbursement-Slender False Brome Treatment 13316 $1,120.00 Tim Johnson Reimbursement-Slender False Brome Treatment 13317 $1,036.43 CMK Automotive Vehicle Maintenance&Repairs 13318 $1,000.00 Koff&Associates Classification&Compensation Study-Employee Orientations& Comparator And Benchmark Analysis 13319 $971.00 Firestone Complete Auto Care Tires 13320 $963.09 Office Team Office Temp-Receptionist/Administrative Assistant 13321 $900,00 Bay Area Ridge Trail Council Outreach Postcard Mailing For 5th Annual Bay Area Ridge Trail Cruz 13322 $853.27 *2 First National Bank Office Supplies/Computer Supplies/Computer Screen/Web Hosting/Dish Network Services/Computer Cables/FFO Internet/Battery Back-Up For Image Server/Memory Card Reader/Surge Protector 13323 $795.00 All Temp Refrigeration HVAC Repairs-FFO 13324 $770.00 Ron Haddix Reimbursement-Slender False Brome Treatment Page 1 of 4 Claims No. 10-16 Meeting 10-19 Date 8/11/10 Revised Midpeninsula Regional Open Space District # Amount Name Description 13325 $762.69 Clean Harbors Environmental Services Hazardous Waste Disposal-Oil,Gas&Paint 13326 $750.00 Aaron's Septic Tank Service Pumping Services-Purisima Creek Redwoods 13327 $700.00 Achim Moesta Reimbursement-Slender False Brome Treatment 13328 $700.00 Cupertino Medical Group Employee Medical Services 13329 $644.10 LFR Levine Fricke Construction Monitoring&Post Construction Engineering Checks-Skyline Ridge Tree Farm Restoration Project 13330 $630,00 Susan Kahn Reimbursement-Slender False Brome Treatment 13331 $552,00 Normal Data Contact Database Development 13332 $525.00 John Gilbert Reimbursement-Slender False Brome Treatment 13333 $460.00 Green Waste Debris Box-SFO 13334 $454.86 Pine Cone Lumber SFO Shop Supplies 13335 $450.00 Montgomery Highlands Association Annual Maintenance Fees 13336 $414.78 Petrotek Repair Fuel Pump-SFO 13337 $405.00 Shelterbelt Builders Pest Control Recommendation From Pest Control Advisor For Monte Bello Burn 13338 $350.00 "2 First National Bank Membership Dues-California Public Employers Labor Relations Association 13339 $334.09 United Site Services Sanitation Services-Mt. Umunhum Event 13340 $325.00 Normal Data Weed Database Development 13341 $312.22 California Water Service Company Water Service-AO,Windy Hill&Rental Residence 13342 $311.15 '2 First National Bank Uniform Expenses 13343 $301.70 Gardenland Power Equipment Field Supplies/Fuel Can Nozzles/Power Equipment Supplies 13344 $300.00 "4 Community United Methodist Church Room Rental Deposit&Fee For Board Meeting In September 13345 $290.00 San Jose Masonic Center Association Room Rental Fee For Mt. Umunhum Site Planning Meeting 13346 $280.00 Bruce Noble Reimbursement-Slender False Brome Treatment 13347 $276.87 Conoco Phillips Fuel 13348 $268.53 Goodco Press Printing Services-Change Shift Forms 13349 $239A7 The Workingman's Emporium Uniform Expenses 13350 $238.40 "2 First National Bank Rental Residence Expenses-Sewage Line Repair/Lock Repair 13351 $216.61 Orchard Supply Hardware Field Supplies 1 Materials For Rental Residence Deck Repairs I Key Lock Box/Flashlight/Dustpan/Filters For Shop Vac/ Plumbing Supplies 13352 $216.00 Liebert Cassidy Whitmore Legal Services&Advice 13353 $215.22 Craftsmen Printing Printing Services-Business Cards 13354 $200.00 '5 State Water Resources Control Board Permit Fee For ECDM Staging Area 13355 $195.00 `6 Board Of Equalization Sales&Use Tax-Book Sales 13356 $190.36 Costco Breakroom&Office Supplies-FFO 13357 $175.77 Cascade Fire Equipment Company Check Valve Assembly&Diaphragm Assembly For Fire Pump Primers 13358 $175.00 Darleen Barnes Reimbursement-Slender False Brome Treatment 13359 $174.79 Cartridge World Printer Cartridge 13360 $167,00 "2 First National Bank Carpet Cleaning-SFO 13361 $165.47 Recology Garbage Service-AO 13362 $161.93 Continuing Education Of The Bar Legal Updates&CD-California Easements&Boundaries 13363 $161.50 Del Rey Building Maintenance Janitorial Supplies-AO 13364 $154.44 State Board Of Equalization Diesel Fuel Tax 13365 $153.50 Gartside, Ellen Reimbursement-Mileage 13366 $150.00 PT Armor Uniform Expense 13367 $14114 Bay Area Air Quality Management Fuel Tank Permit-FFO District 13368 $130.00 Northern Energy Propane Tank Rental-FFO&Rental Residence 13369 $119.00 Coastal Sierra Internet Service-SFO Page 2 of 4 Claims No. 10-16 Meeting 10-19 Date 8/11/10 Revised Midpeninsula Regional Open Space District # Amount Name Description 13370 $115.00 Orkin Pest Control Services-Annex 13371 $113.09 Cupertino Bike Shop Patrol Bike Supplies&Repairs 13372 $106.76 Foster Brothers Lock&Key Services-Five Padlocks/Two Keys 13373 $105.00 Coblentz, Patch, Duffy&Bass Federal Trademark Of New District Logo-Continued Legal Assistance During Filing Review Process 13374 $105.00 Carolyn Krieg Reimbursement-Slender False Brome Treatment 13375 $97.77 Hammond,Tracy Reimbursement-Uniform Expense 13376 $72.27 FedEx Shipping Charges 13377 $72.26 Sunnyvale Ford Seat Belt Latch For Patrol Truck 13378 $60.79 Big Creek Lumber Concrete For Rental Residence Gate 13379 $60.09 Miller, Ken Reimbursement-Rack For Patrol Bike 13380 $60.00 Barresi,Chris Reimbursement-Cell Phone 13381 $55.96 `2 First National Bank Car Washes For District Vehicles 13382 $55.00 Protection One Fire Inspection&Monitoring-AO 13383 $51.96 Orlandi Trailer Trailer Lamps 13384 $48.28 Allen's Press Clipping Bureau Clipping Service 13385 $42,60 CSK Auto SFO Shop Supplies 13386 $40.00 Community United Methodist Church Extra Hour Room Rental For September Board Meeting 13387 $38.64 Fitzsimons, Renee Reimbursement-Volunteer&Docent Meeting Expenses 13388 $14.16 Beckman, Craig Reimbursement-Plumbing Supplies For Rental Residence Repairs 13389 $10.95 Recognition Specialties Name Tag For Employee 13390 $10,00 ID Plus Name Tag For Employee 13391 $7.75 United Parcel Service Parcel Shipping 13392 $4.77 Los Altos Hardware Plumbing Supplies 13393 R $9,198.86 Tannerhecht Architecture Architecture Services For The SFO Remodel&Shop Building Project 13394 R $5,874.00 Gatzman Consulting Services Agricultural Production Plan For Lobitos Ridge Property 13395 R $5,139.70 Overlook Road Maintenance Retroactive Annual Road Assessments-2006-2010 Association 13396 R $3,185.00 Nic Denko Reimbursement-Slender False Brome Treatment 13397 R $2,200.00 Timothy C. Best,CEG Erosion Inventory Of Potential Mercury Mining Sites-Rancho De Guadalupe 13398 R $1,563.20 Tadco Supply Janitorial Supplies 13399 R $1,190.00 David Gluss Reimbursement-Slender False Brome Treatment 13400 R $1,050.00 Gordon Von Richter Reimbursement-Slender False Brome Treatment 13401 R $799.28 Recology South Bay Wood&Metal Dumpster Service-FFO 13402 R $700.00 Aaron's Septic Tank Service Pumping Services-Deer Hollow Farm 13403 R $663.60 West Coast Rubber Recycling Recycling Services-Tire Disposal 13404 R $660.00 Palo Alto Medical Foundation Employee Medical Services 13405 R $586.96 Home Depot Field Supplies/Plumbing&Maintenance Supplies For RSA Restroom Repairs/Bench Grinder&Netting/Cement/ Window Blinds&Shades For Rental Residence/Plumbing Parts For Rental Residence/Pest Control Supplies/Irrigation Valves For FFO 13406 R $480.00 Rural Pig Management Pig Control Services 13407 R $455.00 Joe Androlowicz Reimbursement-Slender False Brome Treatment 13408 R $404.87 PIP Printing And Marketing Services Printing Of District Purchase Order Forms 13409 R $397.67 Summit Uniforms Uniform Expenses 13410 R $343.75 Ergo Vera Ergonomic Evaluations 13411 R $247.50 Staples Breakroom Supplies-AO 13412 R $222.26 Grainger Field Supplies-Air Hose&Universal Joint Sockets Page 3 of 4 Claims No. 10-16 Meeting 10-19 Date 8/11/10 Revised Midpeninsula Regional Open Space District # Amount Name Description 13413 R $194.22 Petty Cash Vehicle Mileage, Parking&Carwash/Field Supplies I Office Supplies/Records Shredding Services/Visitor Estimate Survey Supplies 13414 R $190.00 Sol's Mobile Service Vehicle Repairs&Service 13415 R $177.34 G&K Services Shop Towel Service 13416 R $17479 Cartridge World Printer Cartridge 13417 R $139.22 Bay Area News Group Classified Ad-San Mateo County Notice Of Election 13418 R $100.00 WildCare/Hungry Owl Project Owl Box For Lobitos Ridge 13419 R $60.59 Mountain View Garden Center Landscaping Supplies For Deer Hollow Farm 13420 R $50.00 San Mateo County Public Health Tick Testing 13421 R $20.40 Recognition Specialties Employee Name Badges Total $222,080.69 *1 Urgent check issued 8/3/10 *2 Urgent check issued 8/6/10 The total amount for First National Bank is$9,819.18 *3 Urgent check issued 8/3/10 *4 Urgent check issued 7/12/10 *5 Urgent check issued 7/28/10 *6 Urgent check issued 7129/10 Page 4 of 4 Claims No. 10-16 Meeting 10-19 Date 8/11/10 Midpeninsula Regional Open Space District # Amount Name Description 13288 $25,000.00 Fresno Mobile Radio Radio License Fee 13289 $19,130.14 Northgate Environmental Management Environmental Consulting Services-Review U.S.Army Corps Of Engineers Work At Mt. Umunhum 13290 $14,725.00 Ascent Environmental CEQA/NEPA Strategy For Mt. Umumhum Remediation&Planning 13291 $13,762.50 Go Native District Wide Vegetation Management 13292 $11,922.63 LFR Levine Fricke Engineer&Design Services-ECDM Staging Area Project 13293 $10,000.00 *1 North American Title Company Deposit-Land Acquisition 13294 $9,992.23 The Wildlife Project Sensitive Species Surveys&Biological Monitoring 13295 $7,548.00 Liebert Cassidy Whitmore Legal Services-Personnel 13296 $5,775,00 Joseph Szabo Reimbursement-Slender False Brome Treatment 13297 $5,148.12 Ecological Concerns Two Months Native Revegetation Maintenance&Monitoring- Skyline Ridge Tree Farm 13298 $4,381.00 Pacific Ag. Rentals Equipment Rental-Tractor For Discing&Mowing 13299 $3,900.31 Metro Mobile Communications Radio Reprogram&Preventative Maintenance Service On District Radios 13300 $2,765.96 Sol's Mobile Service Vehicle Maintenance&Repairs 13301 $2,730.00 Julie White Reimbursement-Slender False Brome Treatment 13302 $2,633.10 *2 First National Bank Conferences&Training-Two Registrations For The Special District&Local Government Institute/Six Webinars Through Continuing Education Of The Bar /Wellness Program Seminar 13303 $2,421.39 Patsons Media Group Printing Services-Mt. Umunhum&South Skyline Trail Brochures /Business Cards 13304 $2,275,00 Econo Tree Service Hazardous Tree Removal At RSA&St.Joseph's Hill 13305 $2,092.54 *2 First National Bank Field Supplies/Tire Gauges/Mower Parts/Sunscreen/ Hazardous Area Signs/Pest Control Supplies For Annex/Black Mountain Restroom Supplies 13306 $1,861.00 San Francisco Bay Bird Observatory Nest Surveys At Monte Bello Burn Area 13307 $1,748.03 Golden West Collision Center Patrol Truck Body Repairs 13308 $1,746.97 *2 First National Bank Advertising,Subscriptions&Books-Advertising For"Kids In Nature"Event/Survey Monkey Monthly Subscription/Field Operation Guides/Classified Ad-Election Notification For Santa Clara County/Breeding Bird Atlas 13309 $1,634,77 The Ferguson Group Legislative Consultant-Lobbyist For Mt. Umunhum 13310 $1,497.00 Macro Corporation Black Mountain Microwave Study For Districts New Radio System 13311 $1,437.92 Langley Hill Quarry Base Rock For Russian Ridge&Windy Hill Road Repairs 13312 $1,400.00 *3 Lindsay Wasserman Emerson Deposit-Catering For Employee Recognition Event 13313 $1,370.79 *2 First National Bank Business Related Meals/Food For Board Meetings&Study Session/Docent Meetings/Catering For Mt, Umunhum Event 13314 $1,227.00 Greg's Trucking Service Rock Delivery For White Oaks Trail Work 13315 $1,190.00 Heath Lukatch Reimbursement-Slender False Brome Treatment 13316 $1,120.00 Tim Johnson Reimbursement-Slender False Brome Treatment 13317 $1,036.43 CMK Automotive Vehicle Maintenance&Repairs 13318 $1,000.00 Koff&Associates Classification&Compensation Study-Employee Orientations& Comparator And Benchmark Analysis 13319 $971.00 Firestone Complete Auto Care Tires 13320 $963.09 Office Team Office Temp-Receptionist/Administrative Assistant 13321 $900.00 Bay Area Ridge Trail Council Outreach Postcard Mailing For 5th Annual Bay Area Ridge Trail Cruz 13322 $853.27 *2 First National Bank Office Supplies/Computer Supplies/Computer Screen/Web Hosting/Dish Network Services/Computer Cables/FFO Internet/Battery Back-Up For Image Server/Memory Card Reader/Surge Protector 13323 $795.00 All Temp Refrigeration HVAC Repairs-FFO 13324 $770.00 Ron Haddix Reimbursement-Slender False Brome Treatment Page 1 of 3 Claims No. 10-16 Meeting 10-19 Date 8/11/10 Midpeninsula Regional Open Space District # Amount Name Description 13325 $762.69 Clean Harbors Environmental Services Hazardous Waste Disposal-Oil, Gas&Paint 13326 $750.00 Aaron's Septic Tank Service Pumping Services-Purisima Creek Redwoods 13327 $700.00 Achim Moesta Reimbursement-Slender False Brome Treatment 13328 $700.00 Cupertino Medical Group Employee Medical Services 13329 $644.10 LFR Levine Fricke Construction Monitoring&Post Construction Engineering Checks-Skyline Ridge Tree Farm Restoration Project 13330 $630.00 Susan Kahn Reimbursement-Slender False Brome Treatment 13331 $552.00 Normal Data Contact Database Development 13332 $525.00 John Gilbert Reimbursement-Slender False Brome Treatment 13333 $460.00 Green Waste Debris Box-SFO 13334 $454.86 Pine Cone Lumber SFO Shop Supplies 13335 $450.00 Montgomery Highlands Association Annual Maintenance Fees 13336 $414.78 Petrotek Repair Fuel Pump-SFO 13337 $405.00 Shelterbelt Builders Pest Control Recommendation From Pest Control Advisor For Monte Bello Burn 13338 $350.00 '2 First National Bank Membership Dues-California Public Employers Labor Relations Association 13339 $334.09 United Site Services Sanitation Services-Mt. Umunhum Event 13340 $325.00 Normal Data Weed Database Development 13341 $312.22 California Water Service Company Water Service-AO,Windy Hill&Rental Residence 13342 $311,15 '2 First National Bank Uniform Expenses 13343 $301.70 Gardenland Power Equipment Field Supplies/Fuel Can Nozzles/Power Equipment Supplies 13344 $300.00 '4 Community United Methodist Church Room Rental Deposit&Fee For Board Meeting In September 13345 $290.00 San Jose Masonic Center Association Room Rental Fee For Mt. Umunhum Site Planning Meeting 13346 $280.00 Bruce Noble Reimbursement-Slender False Brome Treatment 13347 $276,87 Conoco Phillips Fuel 13348 $268.53 Goodco Press Printing Services-Change Shift Forms 13349 $239.47 The Workingman's Emporium Uniform Expenses 13350 $238.40 `2 First National Bank Rental Residence Expenses-Sewage Line Repair/Lock Repair 13351 $216.61 Orchard Supply Hardware Field Supplies/Materials For Rental Residence Deck Repairs/ Key Lock Box/Flashlight/Dustpan/Filters For Shop Vac/ Plumbing Supplies 13352 $216.00 Liebert Cassidy Whitmore Legal Services&Advice 13353 $215.22 Craftsmen Printing Printing Services-Business Cards 13354 $200.00 *5 State Water Resources Control Board Permit Fee For ECDM Staging Area 13355 $195.00 '6 Board Of Equalization Sales&Use Tax-Book Sales 13356 $190.36 Costco Breakroom&Office Supplies-FFO 13357 $175.77 Cascade Fire Equipment Company Check Valve Assembly&Diaphragm Assembly For Fire Pump Primers 13358 $175.00 Darleen Barnes Reimbursement-Slender False Brome Treatment 13359 $174.79 Cartridge World Printer Cartridge 13360 $167.00 `2 First National Bank Carpet Cleaning-SFO 13361 $165.47 Recology Garbage Service-AO 13362 $161.93 Continuing Education Of The Bar Legal Updates&CD-California Easements&Boundaries 13363 $161,50 Del Rey Building Maintenance Janitorial Supplies-AO 13364 $154.44 State Board Of Equalization Diesel Fuel Tax 13365 $153.50 Gartside, Ellen Reimbursement-Mileage 13366 $150.00 PT Armor Uniform Expense 13367 $141.74 Bay Area Air Quality Management Fuel Tank Permit-FFO District 13368 $130.00 Northern Energy Propane Tank Rental-FFO&Rental Residence 13369 $119.00 Coastal Sierra Internet Service-SFO Page 2 of 3 Claims No. 10-16 Meeting 10-19 Date 8/11/10 Midpeninsula Regional Open Space District # Amount Name Description 13370 $115.00 Orkin Pest Control Services-Annex 13371 $113.09 Cupertino Bike Shop Patrol Bike Supplies&Repairs 13372 $106.76 Foster Brothers Lock&Key Services-Five Padlocks/Two Keys 13373 $105.00 Coblentz, Patch, Duffy&Bass Federal Trademark Of New District Logo-Continued Legal Assistance During Filing Review Process 13374 $105.00 Carolyn Krieg Reimbursement-Slender False Brome Treatment 13375 $97.77 Hammond,Tracy Reimbursement-Uniform Expense 13376 $72.27 FedEx Shipping Charges 13377 $72.26 Sunnyvale Ford Seat Belt Latch For Patrol Truck 13378 $60.79 Big Creek Lumber Concrete For Rental Residence Gate 13379 $60.09 Miller, Ken Reimbursement-Rack For Patrol Bike 13380 $60.00 Barresi,Chris Reimbursement-Cell Phone 13381 $55.96 *2 First National Bank Car Washes For District Vehicles 13382 $55.00 Protection One Fire Inspection&Monitoring-AO 13383 $51.96 Orlandi Trailer Trailer Lamps 13384 $48.28 Allen's Press Clipping Bureau Clipping Service 13385 $42.60 CSK Auto SFO Shop Supplies 13386 $40.00 Community United Methodist Church Extra Hour Room Rental For September Board Meeting 13387 $38.64 Fitzsimons, Renee Reimbursement-Volunteer&Docent Meeting Expenses 13388 $14.16 Beckman,Craig Reimbursement-Plumbing Supplies For Rental Residence Repairs 13389 $10.95 Recognition Specialties Name Tag For Employee 13390 $10,00 ID Plus Name Tag For Employee 13391 $7,75 United Parcel Service Parcel Shipping 13392 $4.77 Los Altos Hardware Plumbing Supplies Total $185,612.48 *1 Urgent check issued 8/3/10 *2 Urgent check issued 8/6/10 The total amount for First National Bank is$9,819.18 *3 Urgent check issued 8/3/10 *4 Urgent check issued 7/12110 *5 Urgent check issued 7/28/10 *6 Urgent check issued 7/29/10 Page 3 of 3 Midpeninsula Regional Open Space District To: Board of Directors From: Stephen E. Abbors Date: August 11, 2010 Re: Written Communications GENERAL MANAGER Stephen F Abbof, Regional penSpace Midpeninsula Re.gional Open Space District BOARD OF DIRECTORS rete Sie,nef s M&,y Davey Jec Cyr Curt Hilfle Hinko Larry Hassett Ceci';y Harris August 12, 2010 Pat McGuire [mailto:patmcggsonic.net] RE: Wheelchair-Accessible Trails Opportunities Dear Pat McGuire, Thank you for your electronic communication dated July 16, 2010, in which you express a desire see an expansion of the Bay Area trail opportunities available to visitors in wheelchairs. As Stephen Abbors, the District's General Manager, has stated in a prior e-mail, your suggestion is very reasonable within the I 0-year planning horizon that you describe. In the next couple of years, at about the time the District completes a number of multi-year public access projects that are now underway, we would like to evaluate the scope and timing for an All Access Trails Project. We believe that this future project would help address many of the desires raised in your correspondence to help identify and improve wheelchair access opportunities on District Preserves. We appreciate your suggestions for grant funding and your willingness to volunteer your time to help in this effort. As you suggest, we would consult with members of the disabled community and would like to also include you in these future discussions. We look forward to establishing more low-intensity wheelchair access opportunities in our Preserves, which compared to City and County parks, provide for less developed visitor facilities like unpaved trails and gravel parking areas. The District appreciates your flexibility for an extended planning horizon, particularly in light of the current California economy and its impact on property taxes, which is our main source of revenue. Thank you again for sharing your ideas with us. Sincerely, Mary Davey, Board President cc: MROSD Board of Directors Stephen E. Abhors, General Manager All A ,'A A' -----Original Message----- From: patmcg@sonic.net[mailto:patmcg@sonic.net] Sent: Friday,July 16,2010 11:03 PM To: Ombudsperson; Vicky Gou Subject: 07/16/2010-patmcg@sonic.net-Contact Ombudsperson First Name: Pat Last Name: McGuire Phone Number: 650-851-8295 Email Address: patmcg@sonic.net Ward/Location: Portola Valley Comments: I regularly take for"walks"a friend who,due to a spinal injury,has no strength in his legs&a reduced amount in his arms. He is thus confined to a wheelchair but yearns to get outdoors,both to exercise his arms in pushing his chair along,and to experience the many pleasures of the Bay Area's environment. He is a Palo Altan. Over the few years that we have been searching for good places for these outings we have been sorely disappointed by how few attractive options there are: we began with his nbad sidewalks,but those were amazingly uneven/blocked/generally unusable. Next we moved to Open Space lands: some paths are just uneven gravel roads&trails,which require careful steering&are hard on his hands (Ravenswood). Some are paved but run alongside a freeway(eg Stevens Creek&Guadelupe Exp'wys). Where's the pleasure in strolling those horribly noisy corridors while trying to converse or observe nature? Some are theoretically paved but badly deteriorated(think Huddart Park's "accessible"trail. (Yes,OK, that's a county park) And some are so short as to be hardly worth the effort of getting him into&out of the car(Skyline& others) Over the next decade,couldn't MROSD consult with some wheel-chair-bound people who are fit enough to cover a mile-and-back, in identifying trails that could be tweaked just a little to make for pleasant"strolls" for them? .....Not too steep for them or their pushers, Smooth asphalt w/o missing sections, Long enough for a meaningful outing,Quiet, Shady,as everyone is working hard,and in Many parts of the MROSD territory, for both demographic coverage and variety. 1 see this as an excellent grant proposal if funds aren't readily available otherwise. And I will volunteer to help with the development process if people aren't available who have seen MROSD trails from the seat of a wheelchair. Please pass this E-Mail along to others at MROSD. I think we can all do better for these fellow residents, who by the way have mostly been major contributors to our society either before,or in spite of,their disabilities. GENERAL MANAGER 1,tPphc.!n I Abbor, Regional 0 penSpace I Midpeninsula Regional open Space District BOARD OF DIRECTORS Pete Siemens Mary Davey Jed Cyr Curl Willie Nonette IIAnko Larry Has"et". Cecily Harris August 12, 2010 Dear Mr. Sullivan, Thank you for your email of June 8, 2010, regarding your concern about the removal of the eucalyptus trees at Pulgas Ridge Open Space Preserve. The Midpeninsula Regional Open Space District Board of Directors is aware that the removal of eucalyptus trees from the preserve is controversial and can be an emotional issue for some. They are fast growing trees that provide wind protection, shade, and have a look and smell that many people enjoy. However, they are also invasive, can be structurally dangerous to visitors due to their propensity to drop branches on a regular basis, and represent an extreme fire danger to surrounding vegetation and developments. Locally they have been known to ignite, explode, and send embers into residential areas causing extensive loss. As such, the Board and Staff feel it is in the best interest of the resource and the District to remove the eucalyptus trees at Pulgas Ridge Open Space Preserve. A number of years ago, the District Board of Directors approved the gradual removal of eucalyptus trees from Pulgas Ridge Open Space Preserve, to give time for young native trees to begin to take their place. The District's Resource Management plan for restoration of this area includes their removal and replacement with plants native to this unique area. Recently, as we have gotten closer to their complete removal, we have been receiving e-mails concerning the loss of shade for the "Off Leash Dog Area" due to their removal and we are responding by holding an on-site meeting in September (a date is soon to be set) to listen to the concerns of the preserve uses and discuss possible solutions. We will make sure you are notified of this event. Sincerely, Mary Davey President Midpeninsula Regional Open Space District 330 listed Circle Los Altos,CA 9402) 1 oo,r)6C)1 1z00 650 r,()I 048z, I vvt-,vw c)perispace org I Anna Duon g From: sully103149@yahoo.com Sent: Tuesday, June 08,2010 10:46 AM Gener al Information BOA RD; Clerk•,Vick G ou•, To. Y Subject. 06/08/2010-sullyl03l49@yahoo.com -Contact Board Follow Up Flag: Follow up Flag Status: Red First Name: Danny Last Name: Sullivan Email Address: sully103149@yahoo.com Comments: I have benn running the trails of San Mateo County for over 35 years. Over the past six or running Pul as Ridge with my dog. We run our little loop and end up I've been g seven ears I g g Y at, what I call Euculyptus Flat. It saddens me to see these wonderful trees being cut down. I understand they are not native but they are so much apart of Californias history. I urge you to reconsider this decision. I can understand if they were in a residental area but they pose no threat to anyone and our so much a part of Pulgas. I will miss those wintry days perched on that flat listening to the wind filter though those giant trees. 1 Midpeninsula Regional • ' Open Space District R-10-93 Meeting 10-19 August 11, 2010 AGENDA ITEM 4 AGENDA ITEM Acceptance of the Audited Basic Financial Statements for the Year Ended March 31, 2010 and Memorandum on Internal Control and Requirements from Maze and Associates to Midpeninsula Regional Open Space District's Board of Directors. GENERAL MANAGER'S RECOMMENDATION eAr Accept the audited Basic Financial Statements and required communications and Memorandum on Internal Control from Maze and Associates regarding the District's audited financial statements for year ending March 31, 2010. SUMMARY In the opinion of the independent auditor, Maze and Associates, the District's financial statements fairly represent the financial position of the governmental activities and each major fund of the District as of March 31, 2010. DISCUSSION Maze and Associates conducted the audit in accordance with generally accepted auditing standards, which require obtaining reasonable assurance that the financial statements are free of material misstatement. An audit includes examining sample evidence supporting the amounts and disclosures in the financial statements and assesses the accounting principles used and the estimates made by District management. 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 is the fourth year that the District has presented its financial statements under the reporting model required by Governmental Accounting Standards Board Statement No. 34 (GASB 34), Basic Financial Statements and Management Discussion and Analysis for State and Local Governments. In accepting these communications, the Board acknowledges that the General Manager will implement the recommendations contained therein. R-10-19 Page 2 FISCAL IMPACT There will be no fiscal impact from either preparation or acceptance of the Audited Basic Financial Statement since the services stated above were approved as part of the Administration Department's FY2010-11 budget. 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 STEP None. Attachment(s) 1. Memorandum on Internal Control and Required Communications 2. Financial Report Prepared by: Bunny Congdon, Senior Accounting Specialist Contact person: Mike Foster, Controller MIDPENINSULA,REGIONAL OPEN SPACE DISTRICT MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS FOR THE YEAR ENDED MARCH 31,2010 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT MEMORANDUM ON INTERNAL CONTROL AND REQUIRED COMMUNICATIONS For the Year Ended March 31,2010 Table of Contents Page Memorandum on Internal Control....................................................................................................I Schedule of Other Matters 3 RequiredCommunications.................................................................................................................5 Financial Statement Audit Assurance.....................................................................................5 Other Information Included with the Audited Financial Statements....................................5 AccountingPolicies.................................................................................................................5 Unusual Transactions,Controversial or Emerging Areas.....................................................5 Estimates 6 Disagreements with Management...........................................................................................6 Retention Issues 6 Difficulties 6 AuditAdjustments....................................................................................................................6 UncorrectedMisstatements.....................................................................................................6 MAZE & ASSOCIATES ACCOUNTANCY CORPORATION 3478 Buskirk Ave. - Suite 215 Pleasant Hill, California 94523 (925)930-0902 •FAX(925)930-0135 maze 0mazeassociates.com MEMORANDUM ON INTERNAL CONTROL www.mazeassociates.com May 28,2010 Board of Directors Midpeninsula Regional Open Space District Los Altos, California In planning and performing our audit of the financial statements of the Midpeninsula Regional Open Space District as of and for the year ended March 31, 2010, in accordance with auditing standards generally accepted in the United States of America, we considered the District's internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the effectiveness of the District's internal control. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses, as defined above. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we believe to be of potential benefit to the District. This communication is intended solely for the information and use of management, District Council, others within the organization, and agencies and pass-through entities requiring compliance with generally accepted governinent auditing standards, and is not intended to be and should not be used by anyone other than these specified parties. A Professional Corporation This Page Left Intentionally Blank MIDPENINSULA REGIONAL OPEN SPACE DISTRICT MEMORANDUM OF INTERNAL CONTROL SCHEDULE OF OTHER MATTERS 2010-01 Statement No. 54 - Fund Balance Reporting and Governmental Fund Type Definitions (Effective for fiscal 10/11) This Statement establishes fund balance classifications that comprise a hierarchy based primarily on the extent to which a government is bound to observe constraints imposed upon the use of the resources reported in governmental funds. The initial distinction that is made in reporting fund balance information is identifying amounts that are considered nonspendable, such as fund balance associated with inventories. This Statement also provides for additional classification as restricted, committed, assigned, and unassigned based on the relative strength of the constraints that control how specific amounts can be spent. The restricted fund balance category includes amounts that can be spent only for the specific purposes stipulated by constitution,external resource providers,or through enabling legislation. The committed fund balance classification includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision-making authority. Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed. Unassigned fund balance is the residual classification for the government's general fund and includes all spendable amounts not contained in the other classifications.In other funds,the unassigned classification should be used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. Governments are required to disclose information about the processes through which constraints are imposed on amounts in the committed and assigned classifications. Disclosure of the policies in the notes to the financial statements is required. This Statement also provides guidance for classifying stabilization amounts on the face of the balance sheet and requires disclosure of certain information about stabilization arrangements in the notes to the financial statements. The definitions of the general fund, special revenue fund type, capital projects fund type, debt service fund type, and permanent fund type are clarified by the provisions in this Statement. Interpretations of certain terms within the definition of the special revenue fund type have been provided and, for some governments, those interpretations may affect the activities they choose to report in those funds. The capital projects fund type definition also was clarified for better alignment with the needs of preparers and users. Definitions of other governmental fund types also have been modified for clarity and consistency. 3 1 _ r_ C � This Page Left Intentionally Blank C C C MAZE & ASSOCIATES ACCOUNTANCY CORPORATION 3478 Buskirk Ave. - Suite 215 Pleasant Hill, California 94523 (925)930-0902 -FAX(925)930-0135 REQUIRED COMMUNICATIONS maze@mazeassociates.com www.mazeassociates.com May 28, 2010 Board of Directors Midpeninsula,Regional Open Space District Los Altos, California We have audited the financial statements of the Midpeninsula.Regional Open Space District as of and for the year ended March 31, 2010, and have issued our report thereon dated May 28, 2010. Professional standards require that we advise you of the following matters relating to our audit. Financial Statement Audit Assurance: Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit in accordance with generally accepted auditing standards does not provide absolute assurance about, or guarantee the accuracy of, the financial statements. Because of the concept of reasonable assurance and because we did not perform a detailed examination of all transactions, there is an inherent risk that material errors, fraud, or illegal acts may exist and not be detected by us. Other Information Included with the Audited Financial Statements: Pursuant to professional standards, our responsibility as auditors for other information in documents containing the District's audited financial statements does not extend beyond the financial information identified in the audit report, and we are not required to perform any procedures to corroborate such other information. Our responsibility also includes communicating to you any information that we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements. This other information and the extent of our procedures is explained in our audit report. Accounting Policies: Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the District is included in Note I to the financial statements. There have been no initial selections of accounting policies and no changes in fiscal 2010. There have been no initial significant accounting policies or their application during f selections of accounting policies and no changes in significant accounting policies or their application during fiscal 2010. Unusual Transactions, Controversial or Emerging Areas: No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. There have been no initial selections of accounting policies and no changes in significant accounting policies or their application during fiscal 2010. A Professional Corporation iiilll 5 MIDI NSULA REGIONAL OPEN SPACE . rRICT r REQUIRED COMMUNICATIONS Estimates: Accounting estimates are an integral part of the financial statements prepared by management and are based on management's current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management's current judgments. The most sensitive accounting estimate affecting the financial statements is depreciation expense. Management's estimate of the useful lives of its capital assets is based on industry averages. We evaluated the key factors and assumptions used to develop the depreciation expense and determined that it is reasonable in relation to the basic financial statements taken as a whole. Disagreements with Management: For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter that could be significant to the District's financial statements or the auditor's report. No such disagreements arose during the course of the audit. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters. Retention Issues: We did not discuss any major issues with management regarding the application of accounting principles and auditing standards that resulted in a condition to our retention as the District's auditors. Difficulties: We encountered no serious difficulties in dealing with management relating to the performance of the audit. Audit Adjustments: For purposes of this communication, professional standards define an audit adjustment, whether or not recorded by the District, as a proposed correction of the financial statements that, in our judgment, may not have been detected except through the audit procedures performed. These adjustments may include those proposed by us but not recorded by the District that could potentially cause future financial statements to be materially misstated, even though we have concluded that the adjustments are not material to the current financial statements. We did not propose any audit adjustments that, in our judgment, could have a significant effect, either individually or in the aggregate, on the entity's financial reporting process. Uncorrected Misstatements: There were no uncorrected financial statement misstatements. This report is intended solely for the information and use of the audit committee Board of Directors and management and is not intended to be and should not be used by anyone other than these specified parties. 6 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,2010 PREPARED BY THE FINANCE DEPARTMENT I This Page Left Intentionally Blank i i MIDPENINSULA REGIONAL OPEN SPACE DISTRICT BASIC FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,2010 Table of Contents INDEPENDENTAUDITORS'REPORT............................................................................I...............I 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....I I 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 NOTESTO FINANCIAL STATEMENTS.......................................................................................15 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues,Expenditures and Changes in Fund Balances—Budget and Actual......40 This Page Left Intentionally Blank MAZE & ASSOCIATES ACCOUNTANCY CORPORATION 3478 Buskirk Ave. - Baits 1 5 Pleasant Hill, California 94523 (925)9 0-0902 .FAX(9.25) 930-0195 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 "strict. Our responsibility is to express an opinion on these financial statements based on our audit. District, p t5' )? 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. financial statements resent fain in all material respects, the financial position of the In our opinion, such funa P Y P 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. ge- May 28,2010 1 I This Page Left Intentionally Blank Management's Discussion and Analysis 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 com ponents:financial statements. The District's basic financial statements consist of three p onents• (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 Manage ment's 's Discussion and Analysis (MD&A) —for State and Local Governments, NET ASSETS Statement of Net Assets—March 31, 2010 and 2009 March 31 20 10 March 31 2009 Increase Assets: Current assets $ 32,690,558 $ 40,565,462 $- 7,874,904 Retiree Health Trust 1,666,561 1723,000 56,439 Capital ass ets 348 762.E 22 330,931,437 17,831,185 Total assets 3E3,119,741 373,219,t 99 9,899,842 842 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. net invest ment in capital 1 or of capital assets. The p This is the result of the District's inventory p 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 879296 $ 31843 3.6 139 $ , Grants and contributions 658,880 9,049,506 8,390,E 26 -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 Mindeg o 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 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, $1A 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 qf*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 n capital assets is $348.8 million, net of As of March 31, 2010, the District's investment i 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 tot 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 unarnortized 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°l0, below budget, services and supplies cast $0.4 million, or 1.1.6/o, less than 0 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 b 9.9 million m fiscal wo uid decrease $ complete any financings, the District's cash positiony 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 investme nts(Note 2 $20,964,120 C ) Restricted cash and investments(Note 2) 1,417,195 Receivables: 7,265,700 Taxes 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 1,472,385 Vehicles I 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 $256 959 457 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: 911,139 es for services(Note 7) 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 80,4 53 Miscellaneous 215,538 Total general revenues and transfers 27,926,585 Change in Net Assets 11,197,639 be 245,761,818 Net assets_ 5 , beginning g 24 Net assets-ending $256,959,457 See accompanying notes to financial statements 9 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT GOVERNMENTALFUNDS BALANCESHEET MARCH 31,2010 Total Governmental General Fund Debt Service Fund Funds iASSETS Cash and investments(Note 2) $20,964,120 $20,964,120 Receivables: Taxes 7,265,700 7,265,700 Interest 70,000 70,000 i 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 (N ) Total Assets $30,119,026 $1,417,195 $31,536,221 LIABILITIES i Accounts payable PY $703 526 $703,526 Accrued liabilities 220,576 220,576 Deposits payable 54,455 54,455 226,455 226,455 Deferred revenue(Note 3) 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 Unr eserved 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 348,762,622 therefore are not reported in the Governmental Funds. NOTES RECEIVABLE not available t o a for curre nt period expenditures and,therefore,are deferred Notes receivables are pay p P 5 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 658880 ,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 4,919,182 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) (7,829,306) 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. 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 $11,1 97,63 9 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 an Mateo County eastern portions of San were annexed to the District. The portion of the northern tip of Santa Cruz County in 1992. In September District annexed a small p p , 2004 the District completed the Coastside Protection Program, which extended the District boundaries to the Pacific Ocean in San Mateo County, from the so uthern borders of Pacifica to the San Mateo/Santa Cruz County line. B. Reporting Entity e ted accoun ting these basic financial statements present As required b generally accepted g q Yg Y P 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 to fund the financing assistance to the District e ofproviding farmed for the sole purpose g 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 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 i 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 revenues including all taxes are resented as general revenues. program g � P 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 funds,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 en percent of their fund-type total and five percent of the grand eq ual to expenditures/expenses tYP q P 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: _ fund of the District. It is used to account General Fund The General Fund is the general operating 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 revenues are collected within six days to be sixty s after year-end. Expenditures are available if the Y 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 J � are reported as iacquisitions the extent they have matured. Governmental capital asset p end expenditures c itures in governmental funds. Proceeds of governmental long-term debt and acquisitions uisitio ns 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 ' Board of Directors adopts an annual operating budget for the District as a whole, The Districts p P _ 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) I. Cash and Cash E � 4 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 by Santa Clara and San Mateo Counties and a portion is distributed to the District. The District recognizes property ytoxes as revenu e in the fiscal year of levy. K. Debt Discount and Issuance Costs 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. I. Proposition IA Under the provisions of Proposition 1A 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 fir market value District's case, fair value equals a , 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 p 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 I 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 percentages and maturities are not exceeded. The table below also identifies certain 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 $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: $1 323 U.S.Fed Agency Federal A enc Secu rities 591 1,323,591 Funds(U.S. Secu rities) 93,604 93,604 Money Market Mutual (U ) 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 LAFF 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 g Y 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 I"of each month and late if not paid by the 10`", 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) 2,218,316 Total capital assets not being depreciated 320,838,199 $18,175,786 ($1,010,096) 338,003,889 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: p 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. 24 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 10-15 20% 16-20 25% 21 or more 30% 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 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 ' Not es 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%,due 4/212023 $1,500,000 $1,500,000 $1,500,000 Daloia Land Contract Promissory Note 6.25%,due 10/10l2017 240,000 164,948 ($14,738) I50,210 $15,681 2005 Refunding 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%,due 4/1/2031 29,663,021 23,383,021 (1,205,000) 22,178,021 1,340,000 2004 Revenue Bonds 2.00-5.40%,due 9/1/2034 31,900,010 31,600,010 (200,000) 31,400,010 250,000 2007 Series A Revenue Refunding Bonds 4.00-5.00%,due 9/1/2027 52,415,000 52,415,000 52,415,000 2007 Series B-T Taxable Revenue Refmding Bonds,5,15%,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 refmding (4,220,128) 319,273 (3,900,855) 319,273 Total revenue bonds 120,763,031 108,916,762 (2,471,736) 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 10,114,824 1,355,684 11,470,508 Total debt S127,133,031 $124,951,534 $1,355,684 ($2,636 474) $123,67Q 144 $3,563,945 26 MII?PENINSULA 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 District entered into a $1 500 000 promissory note with the Hunt Living he Distr rY On April 1, 2003, t p 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 I and September 1. Principal payments on the Current Interest Bonds Ca 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 e s B-T $52,415,000 of 2007 Servos A Revenue Refunding Bonds and $6785000 of 2007 Seri 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. Bonds is 5 2 415 000 and the At March 31 2010 the outstandingbalance of 2007 Series A $ , outstanding 2007 Series B-T Bonds is$3,690,000 and the remaining balance of the defeased debt was$17,764,207. 28 ail 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 California Public Employees Retirement System (CALPERS) an agent multiple employer defined 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 1 Benefit vestingschedule 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 as a level percentage of the related total payroll cost. Normal n is expressedp Yr hire to date of retirementp S benefit cost under this method is the level amount the District must pay annually to fund 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 are also used to compute the actuarial accrued liability.requirements p 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 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Notes to the Financial Statements March 31,2010 NOTE S—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: 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. i 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(PEMHCA) Benefit District pays retiree premiums up to: $300 per month effective 1/1/2007 $350 per month effective 1/l/2009 Surviving Spouse _Retirement plan election Continuation -Same benefit continues to surviving spouse Dental,Vision and ILife - 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 sub Y J accrued liabili ty is B unfunded actuarial 'ct s OPEtY estimates are male abou t the future. The District's 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 Ca1PERS, and is managed by an appointed board not under the control of the District Board. This Trust is not considered a Y component unit b 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 actua rial value of plan assets is increasing or decreasing over time relative to the actuarial accrued s.Trend data from the actuarial studies is resented below: liability for benefit P Overfunded Overfunded (Underfunded) Entry Age (Underfunded) Actuarial Actuarial Actuarial Actuarial Actuarial. Liability as Valuation Value of Ac crued 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%) ° 2 000 6.8% 2 fo 5 77 126. 7 94 000 > 3/31/2010 $1,894,000 1,50Q000 3 � 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 i � I 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 members' roll. Costs of covered claims above$5,000,000 are currently paid by pa yroll.y 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 onpayroll. t between 100 000 and $2 000,000 per claim are pooled based !I retention level. Coss $ � 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 I' participates in the Pollution and Remediation Legal al Insurance: The District Env�r�Environmental p 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 drai ns owned b the District. Coverage is on a claims-made basis. There is a $50,000 s g Y deductible. The CAL JPIA has a limit of$50,000,000 for the 3-year period from July 1, 2008 10 IA has a 000 limit during the3-year through Jul 1 2011. Each member of the CAL JP $ 000 $ Y term of the policy. Property Insurance: The District participates in the all-risk property program of the CAL JPIA, _ This insuran ce is underwritten b ' k coverage for real and personal roe Y which provides all-risk g p property.rtY• 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 P Y J J aid annually and are not subject to retroactive adjustments. 35 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. R 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 regardless rdless of fund. Net he District's assets over all its liabilities, t is the exces sofalltg Net Assets Assets are 1 e 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 the outstanding balance District's capital ass ets, less represented b the current net book value of the p g p Y 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 1 conditions of agreements with outside parties, governmental regulations, la ws,, 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 I 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. B. 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 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 Midpeninsula Regional Open Space District R-10-97 Meeting 10-19 August 11, 2010 AGENDA ITEM 5 AGENDA ITEM Calling of Special Board Meetings for August 30, 2010, and September 30, 2010. GENERAL, MANAGER'S RECOMMENDATION Ar The General Manager recommends calling two Special Board Meetings to discuss and consider Board business regarding Mount Umunhum in order to meet the Federal government's timelines in obligating fiends before the end of the Federal Fiscal Year 2009-2010 (August 30, 2010) and Fiscal Year 2010-11 (September 30, 2011). DISCUSSION At the Special Board Meeting requested to be scheduled on August 30, 2010, the Board will discuss and consider approval of the necessary steps to begin Phase I of the remediation and site- planning for Mt. Umunhum. This will include approval of the California Environmental Quality Act and related environmental documents and a permit to enter authorizing the Army Corps of Engineer's contractor to enter the site to undertake remediation work. Due to the strict guidelines set by the Federal government to obligate federal funds appropriated for this project , the Board will need to take these actions prior to the end of the Federal fiscal year on September 30, 2010. With the Board's calendar already impacted with various meetings, tours and events, August 30"' is the only feasible time to schedule this Special Meeting. At the Special Board meeting requested to be scheduled on September 30, 2010, the District will hold an informational public workshop regarding the Mount Umunhum project in order to begin gathering input from the public. Because a majority of the Board of Directors are anticipated to be attending, the informational public workshop must be noticed as a Special Board Meeting to be compliant with the Brown Act. This date for this informational public workshop is also required in order to insure the project continues to move forward in a manner that can meet federal appropriation timelines for the 2010-11 Federal fiscal year. FISCAL IMPACT There are no unbudgeted fiscal impacts from calling a Special Meeting of the Board of the Directors. i R-10-97 Page 2 PUBLIC NOTICE Public notice was provided as required by the Brown Act. No additional notice is required. CEQA COMPLIANCE This is not a project under the California Environmental Quality Act and no environmental review is required. NEXT STEP The next step is to notice the Special Meetings in compliance with the Brown Act. Prepared by: Michelle Radcliffe, District Clerk Contact person: Same as above. i i i Midpeninsula Regional Open Space District R-10-92 Meeting 10-19 August 11, 2010 AGENDA ITEM 6 AGENDA ITEM Informational Presentation on the California Giant Salamander Research. GENERAL MANAGER'S RECOMMENDATION Receive an informational presentation on the California giant salamander research. SUMMARY Researchers at Sonoma State University studied the genetic diversity of California giant salamanders within District preserves and other sites across the species' range. The preliminary results of the research indicate that the California giant salamander population in south San Francisco Bay may be genetically distinct compared to those from north of the bay. DISCUSSION Professor Derek Girman and Graduate Research Assistant Briana Callahan from Sonoma State University conducted research on the genetic diversity of California giant salamander (Dicamptodon ensatus), a California endemic species sensitive to sedimentation and habitat fragmentation within its limited coastal range. The researchers used non-lethal techniques to collect genetic material from salamanders found at El Corte de Madera, Monte Bello, Long Ridge, Russian Ridge, Purisima Creek Redwoods, Coal Creek and Sierra Azul Open Space Preserves. The research team will present their findings and discuss the potential for future research within the District. FISCAL IMPACT There is no fiscal impact associated with this presentation. The District granted $4,425 to the project in FY2009-10 and $427 in FY2010-11 as part of the Resource Management Grant Program and this grant project has been completed. PUBLIC NOTICE Public notice was provided as required by the Brown Act and persons on the Resource Management list were notified. R-10-92 Page 2 CEQA COMPLIANCE This item is a research project and therefore not a project subject to the California Environmental Quality Act. NEXT STEP Staff will continue working with Sonoma State University to facilitate further research regarding the status of California giant salamander within District preserves. Prepared by: Joel Silverman, Resource Specialist I Contact person: Same as above. Mid peninsula Regional Open Space District � II R-10-86 Meeting 10-19 August 11, 2010 ' AGENDA ITEM 7 AGENDA ITEM Authorization to Execute a Contract with Heyday Books for Production, Distribution, and Promotion of the District's 401n Anniversary Coffee Table Book I LEGISLATIVE,VE FUND ING AND PUBLIC AFFAIRS COMMITTEE'S RECOMMENDATION Authorize the General Manager to execute a contract with Heyday Books, in an amount not to exceed $40,000, for publishing, including editing and design, distribution, and promotional sales of the District's forthcoming coffee table book. SUMMARY At its July 1, 2010 meeting, the Legislative, Funding, and Public Affairs Committee (LFPAC) recommended executing a contract with Berkeley-based Heyday Books for production, rn r coffee table book . The r motion of the Districts 40 anniver a ion and o �distribution, p Y Committee's recommendation is being forwarded to the full Board of Directors for approval. DISCUSSION At the District's Board of Directors meeting on September 9, 2009 (see Report R-09-106), the Board approved the concept for a coffee table book as a key component to celebrate the District's 40`" anniversary and directed staff to move forward with implementation of the project. As such staff conducted a public Request for Proposal process for production, distribution, and promotion of an anniversary edition coffee table book. The Request for Proposal (RFP)was distributed to a bid list of 34 potential publishing firms. The RFP was also advertised in the Los Gatos Weekly and the Palo Alto Weekly. In addition, a Notice to Prospective Bidders was mailed � to the bid list extending the proposal deadline by three weeks to try to generate additional interest and proposal submittals. Staff also made follow-up phone calls to prospective bidders. Staff received two proposals as a result of the process and presented a recommendation for a publisher to LFPAC, which was unanimously approved at the committee's July 1, 2010 meeting. LFPAC recommends to the full Board of Directors that the District contract with Heyday Books of Berkeley, California in an amount not to exceed $40,000 to provide the publishing, distribution, and promotional services for the District's 401' Anniversary Coffee Table book. R-10-86 Page 2 These services will include front and back cover design, page design, typesetting, proofreading, printing, and binding of 2,000 copies of the book. Heyday Books will also provide distribution, promotional, and sales services for the book. The District will receive 500 copies of the book upon its publication in summer 2012. Heyday Books will be responsible for the promotion and r sales of the remaining 1,500 copies of the book. As the District sells its inventory of 500 books, it will recoup some of the project costs, up to $12,475, which assumes selling all 500 books at the retail price of$24.95. As a result, the total project investment would be $27,525, which is slightly below the amount anticipated ($28,200) for this Key Project as noted in the Public Affairs FY2010-11 Action Plan. With the Board's authorization for the General Manager to enter into this contract, $13,333 wdl ' his Heyday Books services. T aid this fiscal year as the first of three equal installments for Hey y be q p Y will require a mid-year budget adjustment of$10,133 for FY2010-11 in the Public Affairs department's budget. Public Affairs did not budget the entire amount because the contract amount could not be anticipated at the beginning of the current fiscal year as a publisher had not been selected. The remaining two payments, totaling approximately $13,333 each, would be paid from funds to be appropriated with the Board's approval in the FY2011-12 and FY2012-13 Public Affairs department budgets. LFPAC has reviewed several samples of Heyday Books' published work and found Heyday Books' samples impressive and of the highest professional and artistic quality, ensuring the District's coffee table book will be of the highest quality at a competitive cost. In addition, Heyday Books' marketing and publicity approach—sales of books are a core competency and the District's book will be incorporated into Heyday Books' highly evolved and successful sales program—indicates the District's book will be successfully promoted by Heyday Books. The District's coffee table book will be featured in Heyday Books' seasonal catalog, their full color print catalog, and online, will be marketed to independent bookstores, retail chains, wholesalers, and local outlets such as Costco and recreational stores, and will be promoted through the media, book reviews, book readings, and trade conferences. Staff and LFPAC recommend the Board authorize the General Manager to execute a contract with Heyday Books, in an amount not to exceed $40,000, for publishing, distribution, and promotional services and sales of the District's forthcoming coffee table book. FISCAL IMPACT A small portion of funding for the District's 401" anniversary coffee table book—$3,200—has been included in the Public Affairs FY2010-11 budget. A mid-year budget adjustment of $10,133 would be made for payment of the first installment upon signing of the contract. $13,333 would each be budgeted in the FY2011-12 and FY2012-13 budgets for the remaining two installments. PUBLIC NOTICE Public notice was provided as required by the Brown Act. No additional notice is required. CEQ A COMPLIANCE This proposed action is not a project under the California Environmental Quality Act and no environmental review is required. R-10-86 Page 3 NEXT STEPS Once Board approval is obtained, a contract for production, distribution, and promotion of the c Districts 40n anniversary coffee table book will be executed with Heyday Books, and Public Affairs staff will continue to implement the book project production tasks scheduled for FY2010-11 and will schedule the tasks as appropriate for the upcoming FY2011-12 and FY2012-2013. Prepared by: Kristi Britt, Public Affairs Specialist Contact person: Kristi Britt, Public Affairs Specialist Midpeninsula Regional Open Space District R-10-90 Meeting 10-19 August 11, 2010 AGENDA ITEM 8 AGENDA ITEM Authorization for the General Manager to Amend the Professional Services Contract with Koff & Associates, Inc., in an Additional Amount Not to Exceed $5,520, to Complete a Benefits Study in Conjunction with the Classification and Compensation Study. GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to execute an amendment to the professional services contract with Koff& Associates, Inc., in an additional amount not to exceed $5,520 to complete a Benefits Study in conjunction with the Classification and Compensation Study. SUMMARY The current Memorandum of Agreement with the District Field Employees Association requires the District to complete a comprehensive salary survey to determine market placement of the bargaining unit classifications prior to March 31, 2011. At its meeting of June 9, 2010, the Board approved a professional services contract for a District-wide classification and compensation study. In response to peak workload that exceeds Administration staff capacity due to multiple high priority, non-deferrable projects, the General Manager recommends that the contract be amended to include a survey of employment benefits in the study. DISCUSSION Background The current professional services contract with Koff& Associates is for a classification and compensation study that includes benchmarking base salary and PERS compensation. The District currently belongs to BAERS (Bay Area Employee Relations Service) via a Joint Powers Agreement established in 2008 (see Board Report R-08-102) and had originally planned obtain the additional benefits information through the BAERS website utilizing District Human Resources staff to perform the required research. However, concurrent commitments by Human Resources staff to manage the subject Class and Compensation Survey, Interest Based- Bargaining 'Training, Contract Negotiations, Financial Information System RFP and mid-year Budget and Action Plan have absorbed all available staff time during this period. Koff& Associates, which is already under contract, is in the best position to complete this work efficiently in conjunction with the Classification and Compensation Study. Additionally, both R-10-90 Page 2 the Field Employees Association and several members of the Board of Directors had previously expressed an interest in having a total benefits analysis included in the Class and Compensation Study. FISCAL IMPACT On June 9, 2010, the Board authorized the General Manager to execute a professional services contract with Koff& Associates for a Classification and Compensation Study in the amount of $43,560 (see Report R-10-73). The cost to also provide a benefits study is $5,520, for a total contract amount not to exceed $49,080. This unbudgeted expense will be funded by reallocating funds within the Administration Department. 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 CEQA. NEXT STEP Upon Board authorization, the General Manager will enter into a contract amendment with Koff &Associates, Inc., who shall be given Notice to Proceed with a Benefits Study in conjunction with Phase 1: Classification Study and Phase 2: Compensation Study. Prepared by: Annetta Spiegel, Acting Administration & Human Resources Manager Contact person: Same as Above Midpeninsula Regional • ' Open Space District R-10-89 Meeting 10-19 August 11, 2010 AGENDA ITEM 9 AGENDA ITEM Presentation of the Proposed Standing Committee Meeting Schedule. GENERAL MANAGER'S RECOMMENDATION Accept the proposed Standing Committee meeting schedule and authorize implementation of the proposed Standing Committee meeting dates beginning in January 2011. SUMMARY As an Action Plan item for FY2010-11, the District Clerk's Office was requested to provide a clear and consistent process for Standing Committees (see Report 10-42). Included in this Action Plan item is the task of finding a monthly standing date and time to hold Standing Committee meetings. By accepting the proposed dates, the Board members will have a designated day and time set aside every month to hold such committee meetings. A Standing Committee meeting schedule also provides staff with a consistent schedule to follow and standardizes the packet process with both Board and Committee meetings. DISCUSSION Standing Committees The District currently has four(4) Standing Committees that meet to discuss various topics of District business. Historically, these Committees have not met on a regular schedule and so the entire Committee process is subject to the vagaries of Board and staff availability - often on short notice—in a dynamic work environment. As a result, the Committee process has become unnecessarily cumbersome. Some of the drawbacks of the current situation include: • Inefficient use of staff time as alternative dates are sought; • Repeated schedule changes requested of Board members; • Attendance at many evening and late Friday meetings by both Board and staff to accommodate an already filled workweek; • Compressed time for Board review Committee materials; • Absence of key Board and staff at Committee meetings when time critical items must go forward and no schedule alternative can be found. I R-10-89 Page 2 By establishing a schedule of Standing Committee meeting dates for the year, coordination requirements between and among staff and the Board is minimized and materials required for informed policy decisions can be consistently provided to the Board with adequate time for review. The proposed meeting dates are as follows: Standing Committees Real Property First Tuesday 1:00—4:30 p.m. Use and Management Second Tuesday 1:00 —4:30 p.m. Legislative, Funding and Public Third Tuesday 1:00 —4:30 p.m. Affairs Administration and Budget Exempt from this meeting schedule. Background There are numerous factors that need to be considered when scheduling a Committee meeting. Those factors include: • Board availability • Project timelines • Staff workload • Committee location Board Availability A key factor that must be considered when scheduling a Committee meeting is Board availability. Since the District's Board of Directors are not full-time District employees, their availability is not an integral part of the normal District work day. By establishing a set schedule, the Board of Directors and staff will have the ability to dedicate time specifically to prepare for and attend Committee meetings. Having an established standing meeting schedule in place also provides the public with a schedule of Committee meetings and gives future Board candidates a guideline of Committee meeting dates to set a reasonable expectation of participation. Project Timelines The District is currently undergoing several projects that require a firm timeline to be followed. . By having an established meeting schedule, staff is able to map out a future project's timeline with the Committee's meeting schedule already in consideration. Stqf.1'Workload Another important factor to consider when scheduling a Committee meeting is District staff s workload. Due to Brown Act requirements, generally the meeting agenda is required to be posted and agenda materials must be made available at least 24 hours prior to a special Committee meeting. This requirement does not take into consideration the preparation and review deadlines that staff needs to observe to ensure the agenda and meeting materials are reviewed before the 24-hour Brown Act deadline. By having Committee meetings held on Tuesdays, staff will closely follow the Board packet process timeline of Regular Board meetings (which are held the second and fourth Wednesday of the month). By updating the Board packet process to include Committee meetings, the review and distribution of agendas, reports and other materials will be standardized and more efficient. R-10-89 Page 3 By holding Committee meetings from 1:00 p.m. to 4:30 p.m., the meeting times are within the District's normal business hours of 8:30 a.m. to 5:00 p.m. This allows staff to conduct work within the District's core hours, minimizing overtime accrual by non-exempt staff. This also sends the message to staff that the Board and management acknowledges the current workload of priorities. the District and encourages staff to balance work/lifep Committee Location The last factor considered in scheduling Committee meetings is the location of the meeting. Tours are essential to most Committees (for example, Real Property) and when scheduling Committee meetings, staff must take into consideration travel time, the time of day, and the season. Holding Committee meetings during the 1:00 p.m. to 4:30 p.m. timeframe takes those parameters into consideration. There is generally enough sunlight during these hours to view a property year round, except during stormy weather. Also, reserving 3 j/2 hours for a meeting provides enough time for traveling to and back from the meeting location. Exception There is one Committee that is proposed to be exempt from the recommended established meeting dates: the Administration and Budget Committee (ABC). ABC is a unique Committee as meetings are driven by the District's budget and action plan. Because of the nature of the ABC's work, holding meetings once month is not workable; ABC meetings usually come in two or three clusters during the year which require back-to-back meetings over a period of a week or two. Another reason for its exemption from the standing meeting schedule is that ABC currently has meetings scheduled through April 2011 for work pertaining to FY2010-11 and FY2011-12. It is important to note that having an established meeting schedule does not exclude the Board and/or staff from scheduling additional meetings if needed. A special Committee meeting can still be scheduled in addition to the monthly established meeting. It is also important to note that having an established meeting schedule does not preclude the Committee or staff from determining that a future Committee meeting is not needed. i Lastly, the General Manager proposes to implement the established Standing Committee meeting schedule in January 2011. There are projects that are currently underway that have timelines previously in place for 2010. (for example, FY2011-12 budget). If this established meeting schedule were to be implemented in 2010, the project timelines that have already been scheduled would need to be changed to ensure they fit into the established meeting schedule. This can potentially delay projects and create inconveniences for the Board by having to re-arrange pre- planned schedules on short notice. At present, the 2010 Committee assignments are based on the availability of the Board members. To implement the established meeting schedule in 2010, Board members would not have ample notice to arrange their schedules to attend Committee meetings. By implementing the proposed meeting schedule in January 2011, the Board will have been given enough notice to check their schedules and hold times for Committee meetings. Also, since Committee assignments change every January, implementation in January 2011 allows the Board President to assign Board members to the Committee that best fits the Board members' availability. Ad Hoc Committees Page 4 R-10-89 The Board has several Ad Hoc Committees assigned to complete a specific task. Ad Hoc Committees will not have a fixed meeting schedule due to the need for flexibility and the task- oriented, temporary nature of such Committees. For convenience of the Board and staff and for some of the reasons discussed earlier in this report, staff will attempt to schedule Ad Hoc Committee meetings on the following days and times where feasible. The actual meeting date and time will be decided on a case by case basis by staff working with the Committee members' scheduling needs: Ad Hoc Committees Cooley Landing Second Tuesday 1:00—4:30 p.m. Facilities Improvement Third Tuesday 1:00—4:30 p.m. Sierra Azul/Bear Creek Fourth Tuesday 1:00—4:30 p.m. Redwoods Strategic Plan Fourth Tuesday 1:00—4:30 p.m. Board Appointee Evaluation Committee work has concluded,- there may be an implementation task. La Honda Master Plan Committee work has concluded. FISCAL IMPACT There is no specific fiscal impact associated with this proposed meeting schedule. However, implementation of the proposed Board Standing Committee meeting schedule is expected to reduce an increment of overtime costs. PUBLIC NOTICE Public notice was provided as required by the Brown Act. No additional notice is required. CEQA COMPLIANCE This agenda item is not a project and is not subject to the California Environmental Quality Act. NEXT STEPS Once the proposed establish Standing Committee meeting dates have been approved, the next steps are to update the Board packet process to include Board Standing Committees. The District Clerk will also provide an informational training to staff on the updated packet process and implementation of the established schedule for Standing Committees. This meeting schedule will commence in January 2011. Prepared by: Michelle Radcliffe, District Clerk Contact person: Same as above Midpeninsula Regional ' Open Space District R-10-96 Meeting 10-19 August 11, 2010 AGENDA ITEM 10 AGENDA ITEM Approval of the Administration and Budget Committee Recommendations for its Fiscal Year (FY) 2010-2011 Action Items and Presentation of the District's FY2011-12 Budget Forecast. ADMINISTRATION AND BUDGET COMMITTEE RECOMMENDATIONS 1. Approve the Committee's recommendation to accrue $60,000 per year for future election costs; 2. Approve the Controller's Recommended Operating Expense Guideline of 52% for FY2011-12; 3. Defer the Review of the Capital Improvement Project(CIP) Guidelines at the Midyear Review in October 2010; 4. Receive the Presentation of the District's FY2011-12 Budget Forecast. SUMMARY The Administration and Budget Committee (Committee) met on July 22, 2010, and subsequently on July 27, 2010 to consider staff recommendations in response to action items approved by the Board at their March 24, 2010 meeting regarding the budgeting for future election costs, adjustments to the Operating Expense Guideline and updating the Capital Improvement Guideline. The Committee then received the Controller's analysis, which detailed a decrease in revised District Property Tax Revenue Projections for both FY2010-11 and FY2011-12. To meet District obligations in light of the unstable economy and rising costs, the staff presented the FY2011-12 forecast, which tested the Operating Budget under 0%and 2.5% Cost of Living Adjustment (COLA) scenarios, and also described the major factors driving increases in the salaries and benefits expenses. Each of the District's five departments presented their assumptions and major planning considerations in developing the budget forecast. As a result, the District is better prepared to move forward and make informed budgetary choices in the coming year. R-10-96 Page 2 DISCUSSION Administration and Budget Committee Recommendations On July 22, 2010, the Administration and Budget Committee (Committee) reviewed the three action items assigned to the Committee at the March 24, 2010 Board meeting. The Committee made the following recommendations: Review cif Election Costs Treatment The Committee recommends that future election costs, which are periodic and material expenses, be rep an Operating Expense to be accrued anaqWly. The budget issue is that election costs have risen substantially and can increasingly affect the Operating budget every other year, restricting the ability of the District to complete its work. Directors have four-year terms ending every other even year. The maximum number of wards that are open during an election year is four. Should all four of the Directors' seats be contested, District election costs would currently exceed $400,000 in a single year, thus impacting the Operating budget and the ability of the District to financially execute on its plans and commitments during that year. To avoid this periodic budget impact, the Committee recommends an annual accrual of$60,000 per year starting in FY2010-12 up to a maximum of$400,000 to fund future election costs. Staff consulted with the District's Independent Auditors Maze and Associates, who concur with this approach. Review of'Operating Expense Guidelines The Committee recommends accepting the Controller's Operating Expense Guideline of 52% of projected property tax revenue for FY2011-12. The District Controller discussed and presented revised District tax revenue projections for both FY201 0-11 and FY2011-12. Tax revenue projections decreased $338,000, a 1.2% drop for FY2010-11 from the FY2010-11 Adopted budget, and decreased $510,000, a 1.4% drop for FY2011-12 from the May 26, 2010 projection. This drop in property tax revenue growth reflects the continued economic recession affecting property values, which is the District's main revenue source of revenue in both Santa Clara and San Mateo counties. The Operating Expense guideline tracks Operating Expenses as a percentage of projected tax revenue. The District has adopted aligning the Operating Expense growth with the revenue growth as a conservative budget approach during slow revenue growth years. This is consistent with prior years where the District adopted this Operating Expense guideline. For the FY2010-11, 50% was determined to be the correct percentage for an Operating Expense Guideline. For FY2011-12, the District Controller revised this guideline upwards to 52% based on the most current projections. Due to the long-term uncertainty of the economy, the percentage of tax revenue guideline for Operating Expenses is the prudent approach. The District's model of cautious spending is a significant reason why the District remains fiscally strong. For FY2011-12, the Controller's projected revenue forecast is $27,750,000. By using the 52%tax revenue guideline and assuming 97% spending target, the resulting Operating Expense spending limit computes to $14,900,000. This recommended 52% Operating Expense Guideline will be further discussed in the FY2011-12 forecast sections of this report. R-10-96 Page 3 Evaluate and recommend possible changes to the CIP guideline The Committee recommends accepting Staff s recommendation to review the Capital Improvement Proiect(CIP) Guideline at the Midyear Review in October 2010. The current CIP Guideline may need updating, and therefore staff needs time to research and make the appropriate recommendations. District Forecast for FY2011-12 Purpose of Forecast In view of the unsettled economic conditions and the confluence of the required Class and Compensation Study, renegotiation of the Memorandum of Agreement with the District Field Employees Association (FEA), and a new debt financing anticipated to be scheduled for December 2010, the General Manager asked staff to forecast projected expenditures for the coming fiscal year to prepare the District to make sound financial decisions. This is the first time the District has developed a formal budget"forecast" that looks out nearly two years and the information developed through this process will be used to inform spending decisions going forward. The District has a history of being well managed and will continue to do so as it plans ahead for rising District expenses while revenue growth is expected to be flat or negative. Forecast Process The Controller presented a revised FY2010-11 Tax Revenue Projection for the District, which showed a drop in revenue of$3 3 8,000 (1.2%) from the prior FY20 10-11 adopted budget. In addition, the Controller's updated FY2011-12 Tax Revenue Forecast also showed a drop in revenue of$510,000 (1.8% drop) from the May 2010 Projection. While overall property tax increased an average of 6.8% per year over the last 10 years (FY2000-01 through FY2009-10), this increase does not reflect either the current economy or the projected drop in revenues for FY201 0-11 and FY2011-12. Each Department then completed a"bottoms-up" FY2011-12 forecast by major expense category. The department managers provided estimates on future projects and the operating expenses needed to run their respective departments. The departments assumed a flat headcount, full staffing levels and the filling of three open positions (Assistant General Manager, Administration Services Manager and a Public Affairs Intern). The District's total full-time equivalent(FTE) employees are forecasted to be 108.5 FTEs of the total 119 District employees (full-time and part-time) employed (see following chart). FY 2011-12 FORECAST HEADCOUNT (in FTEs, Full-time Equivalents) Dept. Full-Time Part-Time Interns Total Administration 16.0 1.0 0.5 17.5 Operations 55.0 7.5 0.5 63.0 Planning 14.0 0.5 14.5 Public Affairs 8.0 0.5 8.5 Real Property 5.0 5. Total 98.0 8.5 2.0 108.5 R-10-96 Page 4 Operating Budget for FY2011-12 As noted above in the discussion under Review of Operating Expense Guideline, the District's Operating Expense Limit for FY2011-12 is projected at $14,900,000. The District defines "Operating Expenses within the Guidelines"to include: salaries and benefits, services and supplies, and fixed assets associated with the administration of the five departments. Excluded in this guideline is land and associated costs, debt service, property management and capital improvement projects. Scenarios The FY2011-12 budget forecast models two scenarios. The first applies a 0% COLA and the second applies the current year negotiated COLA of 2.5%. These two COLA scenarios, represented in the two following charts, were used to test the budget's response to rising costs, many of which are outside of District control. The scenarios are considered a reasonable basis upon which to test budget impact as they reflect the current 2.5% District COLA compared to 0% COLA. 1. Operating Forecast at 0% Cola: (Operating Spend Limit: $14,900,000) Budget Analysis 2011-12 %Change 2009-2010 Forecasted from 10-11 %Change Actual 2010-11 (@ 0.0% Adopted from 09-10 Expenses Adopted Cola) Budget Actuals Salaries+Benefits 1,189,378 1,3842711--- 1,428,705 3.18%---20.12% Services+Supplies 38,712 51,750 63,095 21.92% 62.99% SUBTOTAL,Operating Expenses 1,228,089 1,436,461 1,491,799 3.85% 21.47% =Salaries+Benefits 5,733,170 6,107,851 6,287,-310 2.94% 9.67% S services+Supplies 752A:�p 1,699,3.77_1,769,126 4.10% 0.95% Fixed--Fed Assets 311,321 336,310 372,310 10.70% 19.59% SUBTOTAL,Operating Expenses 7,797,026 8,143,538 8,428,746 3.50% 8.10% ISalaries+Benefits 783,580 829,167 868,879 4.79% 10.89% MMM��Sem,es I Supplies 329,722 354,348 375,898 6.08% 14M% SUBTOTAL,Operating Expenses 1,113,302 1,183,515 1,244,777 5.18% 11.81% WSalaries+Benefits 535,132 586,947 633,519 7,93% 18.39% Services I Supplies 107,561 167,840 139,000 -17.18% 29.23% SUBTOTAL,Operating Expenses 642,692 754,787 772,519 2.35% 20.20% ISalaries+Benefits 1,710,892 2,058,645 2,194,109 —6.58% 28.24% Services+Supplies 534,579 682,814 627,857 -8.05% 17.45% 7SUBTMOTALOperating Expenses 2,246,472 2,741,469 2,821,966 2.94% 25.67% 7---5`pa`rat ng Budget 13,026,681 14,259,760 14,769,807 3.61% 13.31% Salaries and Benefits 9,952,151 10,967,321 11,412,522 4.06% 14.67% Services and Supplies 2,763,109 2,956,129 2,974,975 0.64%--7.67% Fixed Assets 336,310 372,310 10.70% 19.59% 3 ------Subtotal(Operating'gT'wi) -------i—1T026,58ir"i4,i99,i66r R-10-96 Page 5 IL Operating Forecast at 2.5% Cola: (Operating Spend Limit: $14,900,000) Budget Analysis 2011-12 %Change 2009-2010 Forecasted from 10-11 %Change Actual 2010-11 (@2.5% Adopted from 09-10 Expenses Adopted Cola) Budget Actuals Salaries+Benefits 1,189,378 1,384,711 1,463,956 - 5.72% 23.09% — _. _- -- Services+Supplies 38,712 51,750 63,095 21.92% 62.99% SUBTOTAL,Operating Expenses 1,228,089 1,436,461 1,527,061 6.31% 24.34% Salaries+ Benefits 5.733,170 6,107,851 6,409,824 4.94% 11.80% Services+Supplies — 1,752,535 1,699,377 1,769,126 4.10% 0.95% Fixed Assets 311,321 336,310 372,310 10.70% 19.59% SUBTOTAL,Operating Expenses t7,797,026 8,143,538 8,551,260 5.01% 9.67% Salaries+Benefits 83,580 829,167 888,037 7.10% 13.33% Services+Supplies 29,722 354,348 375,898 6.08% 14,00% SUBTOTAL,Operating Expenses 13,302 1,183,515 1,263,935 6.79% 13.53% Salares+ nefits 35,132 586,947 647,959 10,39% 21.08% Services+Supplies 107,561 167,840 139,000 17,18% �29.23% SUBTOTAL,Operating Expenses 642,692 754,787 786,958 4.26% 22.45% Salaries+Benefits 1,710,892 2,058,645 2.241,724 8.89% 31.03% services+supplies 534,579 682,814 627,857 -8,05% 17-45% SUBTOTAL,Operating Expenses 2,245,472 2,741,459 2,869,581 4.67% 27.79% peratmg Budget 13,026,5811 14,259,760 14,998,784 5.18% 16.14% Salaries and Benefits 9,952,151 10,967,321 11,651,499 6.24% 17.08% Services and Supplies 2,763,109 2,956,129 2,974,975 0.64% 7.67 ° 311,321 336,310 372,310 _ 10.70°!° _ 19.59% _ _Fixed_As_sets ___ __ _ _ _ _ _ _ _ _ __ ._ _ _ Subtotal(Operating Budget} 13,026,561 14,259,760 14,998,784 '5.18% Forecast Results The projected Services and Supplies expenses represent approximately 20%of the total Operating Budget, while the projected Salaries and Benefits expenses represents approximately 77.5% of the total Operating budget. The analysis below shows why the annual operations budget target of $14,900,000 is very sensitive to small increases in Salaries and Benefits budget components. Total Services and Supplies The total services and supplies budget is projected to be $2,974,975. This is a minimal increase of 0.64%over the FY2010-11 adopted budget of$2,956,129 and represents approximately 20% of the operating expenses (19.8% at 0% COLA and 20.2% at 2.5% COLA). This reflects strong fiscal discipline within the departments. Total Salaries and Benefits The total salaries and benefits budget is projected to be $11,412,522 at 0% COLA and $11,651,499 at 2.5% COLA. This is the major expense category of the operating budget and accounts for 77.3% to 77.7%of the operating budget, depending on the COLA applied. At 0% COLA, the Salaries and Benefits total is $445,201 or 4.06% over FY2010-11 Adopted Budget. The Total Operating Budget is $140 193 below the operating budget spending limit of $14 900 000 set by the Controller. R-10-96 Page 6 At 2.5% COLA, the Salaries and Benefits total is $684,178 or 6.24% over FY2010-11 Adopted Budget. The Total Operating Budget is $98 784 above the operating budget spending limit of $14 900 000 set by the Controller Analysis Cost Drivers The Services and Supplies spending forecast is flat compared to the previous year. However, the projected Salaries and Benefits category of spending will drive the operating expenses beyond the $14,900,000 target established by the Controller if fiscal discipline is not maintained. Even though a flat headcount that was assumed for the forecast, Salaries and Benefits expenses increased, due to the fol lowing factors:ctors: 1. Annual salary increases of five points and 1% longevity increases for eligible employees; 2. Increased CalPERs retirement rate and CaIPERs medical insurance costs; 3. Workers Compensation Insurance increase of I 1%; 4. Unemployment Insurance increase of 19%; 5. Continued increase in eligible employees taking vacation cash out(up to 40 hours per year); 6. Increase in the percentage of Seasonal Open Space Technicians (SOSTs) returning to the District to work who are in PERS. Variation in Health Benefits In addition, the District's health benefits offered to employees is another variable cost driver. The District offers medical, dental and vision benefits to eligible employees. The costs to the District for these benefits range significantly: from an employee who waives all health benefits to an employee who claims him/herself and full family. The range in cost to the District is approximately $4,200 to $18,000 per employee per year: 1. Employee (waives): Medical/Dental/Vision: $ 4.2K/year 2. Employee (Claims 1): Medical/Dental/Vision: $ 8.5K/year 3. Employee (Claims 2): Medical/DentalNision: $14.OK/year 4. Employee (Claims 3): Medical/Dental/Vision: $18.OK/year For the current fiscal year, 16% of the District's employees are waiving health benefits, 29% are claiming one dependent, 16% are claiming two dependents, and 24% are claiming three dependents. Approximately 15% of District employees are not eligible for health benefits and Board appointees are not reflected due to their separately contracted benefits. An employee's personal and family needs and health coverage needs can change anytime, along with the cost to this District. This is especially true during the current economic downturn where spouses employed outside the District may lose their jobs and medical benefits. There can be a cost increase or cost decrease to the District. For example, if ten employees changed from waiving all health benefits to claiming their full family benefits, that would result in a cost increase to the District of approximately $140,000. A cost reduction to the District would occur if the reverse occurred. R-10-96 Page 7 Additional Budget Considerations Salary and Benefits cost to the District continue to rise in absolute dollars and rise as a percentage e din of property tax revenue. Thus, it is critical to observe the Controller recommended spending cap or guideline of 52/ of property tax revenue for Oper ating expenses. enses. The District continues to follow the Coverage Ratio Guideline to provide the required $2 million to financing used to purchase land and other capital expenditures. In FY2010-11, service future debt f g p p . . it is anticipated that the District will borrow$22 million to fund new land acquisition and this cost of debt increase in FY2011-12 will be $2.1 million over the FY2010-11 Adopted Budget. It is important to note that the District cannot forecast the unknown variables. Items not in the FY2011-12 forecast include: Unfunded future liability payment to California Joint Powers Insurance Agency (CJPIA) of$716K Starting July 1, 2013, the District will be required to repay approximately $70K-$90K per year over 10 years to maintain CJPIA. While this is outside the current forecast, is a material liability of the District and should be considered in decisions affecting Operating Expenses. Coverage of Employee Dependents Beginning on January 1, 2011, the District will be required to extend health care coverage to employee dependents up to age 26. Currently, this coverage only covers employee dependents through age 23. This is a requirement under the recently adopted Federal Health Care Reform legislation. The fiscal impact of this extended coverage will not be known until October 8, 2011, when the employee sign-up period closes. FISCAL IMPACT The fiscal impacts of the recommendations and other information in this report are the subject of this Board Report and are explained herein. PUBLIC NOTICE Public notice was provided as required by 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 STEP The next step is to use the information contained in this report to inform preparation of the FY2010-11- Midyear Budget. Attachments: 1. Exhibit 1: FY2011-12 Forecast @ 0% COLA 2. Exhibit 2: FY2011-12 Forecast cr 2.5% COLA R-10-96 Page 8 Prepared by: Lynn Tottori, Senior Management Analyst Elaina Cuzick, Real Property Specialist Gordon Baillie, Management Analyst, Operations Anna Duong, Deputy District Clerk Kristi Britt, Public Affairs Specialist Meredith Manning, Senior Planner Kirk Lennington, Senior Resource Planner David Sanguinetti, Operations Manager Ana Ruiz, Planning Manager Mike Williams, Real Property Manager Rudy Jurgensen, Public Affairs Manager Bunny Congdon, Senior Accounting Specialist Annetta Spiegel, Acting Administration and Human Resources Manager Sue Schectman, General Counsel Mike Foster, Controller Steve Abbors, General Manager Administrative and Budget Committee: Curt Riffle, Chair Pete Siemens Jed Cyr Contact Person: Lynn Tottori, Senior Management Analyst EXHIBIT 1 Budget Analysis,Operating and Non-Operating Expenses Budget Analysis 2011-12 %Change 2009-2010 Forecasted from 10-11 %Change Actual 2010-11 (@ 0.0% Adopted from 09-10 Expenses Adopted Cola) Budget Actuals HONNO _Progr_am_32 Salaries+Benefits 1,189,378 1,384,711 1,428,705 3.18% 20.12% Program 32 Services+Supplies 38,712 51,750 63,095 21.92% 62.99% SUBTOTAL,Operating Expenses 1,228,089 1,436,461 1,491,799 3.85% 21.47% Program 32 Fixed Assets 6 295 0 0 -100,00% Program 37 Coastside/Mt.Umunuhum 8,518 425,278 273,843 -35.61% 3114.86% Program 36 Planning Projects 203,028 353,000 321,000 -9.07% 58.11% Program 35 Staff Facilities 314,131 507,000 1,190,000 134.71% 278.82% _ Program 34 Public Facilities/FEMA 260,620 1,181,000 2,244,000 90.01% 761.02% Program 38 Unanticipated CIP 15,058 25,000 25,000 0.00% 66.03% TOTAL,All Expenses 2,035,739 3,927,739 5,545,642 41.19% 172.41% Salaries+Benefits 5,733,170 6,107,851 6,287,310 2.94% 9,67% Services+Supplies _ 1,752,535 1,699,377 1,769,126 4.10% 0.95% Fixed Assets 311,321 336,310 372,310 10.70% 19.59%° SUBTOTAL,Operating Expenses 7,797,026 8,143,538 8,428,746 3.50% 8.10% (Special Projects 86,826 1,601,000 1,695,000 5,87% 1852.17% TOTAL,All Expenses 7,883,852 9,744,5381 10,123,746 3.89% 28.41% Salaries+Benefits 783,580 829,167 868,879 4.79% 10.89% Services+Supplies 329,722 354,348 375,898 6.08% 14.00% SUBTOTAL,Operating Expenses 1,113,302 1,183,515 1,244,777 5.18% 11.81% TOTAL,All Expenses 1,113,302 1,183,515 1,244,777 5.18% 11.81% Salaries+Benefits 535,132 586,947 633,519 7.93% 18.39% Services+Supplies 107,561 167,840 139,000 -17.18% 29.23% SUBTOTAL,Operating Expenses 642,692 754,787 772,519 2.35% 20.20% Property management 143,665 178,554 189,326 6.03% 31.78% Debt 7,818,920 8,078,081 10,190,000 26.14% 30.32% Land+Ass.Costs 17,489,603 15,656,500 15,507,000 -0.95% -11.34% TOTAL,All Ex enses 26,094,880 24,667,922 26,658,845 8.07% 2.16% Salaries+Benefits 1,710,892 2,058,645 2,194,109 6.58% 28.24% Services+Supplies 534,579 682,814 627,857 -8,05% 17.45% SUBTOTAL,Operating Expenses 2,245,472 2,741,459 2,821,966 2.94% 25.67% (Fixed Assets 71,736 50,000 120,000 140,00% 67,28% TOTAL,All Expenses 2,317,208 2,791,459 2,941,966 5.39% 26.96% i Operating Budget 13,026,581 14,259,760 14,759,807 3.51% 13.31°!0 -- Property Management 143,665 178,554 189,326 6.03% 31.78% Unanticipated CIP 15,058 25,000 25,000 0.00% 66.03% Public Access Facilities 260,620 1,181,000 2,244,000 90.01% 761.02% Staff Facilities 314,131 507,000 1,190,000 134.71% 278.82% Planning Projects 203,028 353,000 321,000 -9.07% 58.11% Coastside/Mt.Umunhum 8,518 425,278 273,843 -35.61% 3114.86% Special Projects 164,858 1,651,000 1,815,000 9.93% 1000.95% Amount outside of Operating Budget 1,109,878 4,320,832 61058,169 40.21% 445.84% Salaries and Benefits 9,952,151 10,967,321 11,412,522 4.D6% 14.67% Services and Supplies 2,763,109 2,956,129 2,974,975 0.64% 7,67% Fixed Assets 311,321 336,310 372,310 _ 10.70% _ _ 19.59% ...................................Subtotal(Operating Budget) _ _ _ _13,02_6_581 14,259_760 -14,759,807 -.-3.51% -.- 13.31% _ --:.Total Outside Operating Budget- -.1,109 878 4,320_832 -�6,058,169 -.40.21% _.-445.84% Subtotal(Full Operating Budget) . _ _ _ 14,136,459 18,580_592 20,817.976 _ 12.04% -.-�47.26% ------.- ------ ---- Debt 7,818,920 _8,078,081 10,190,000 26.14% 30.32% _.-•---�---- �. _ _ _S_ubtotai(Inclu_des Debt)_ _ _ - _ _ _ _.- _21,95_5,37_9 _26,658,673 _31,0_07,9_76 -. 16.31% ---41.23% Land+Assoc.Costs 17,489,603 15,656,500 15,507,000 0.95% 11.34% District Budget Total 39,444.981 42,315,173 46,514,9761 9.93%1 17.92% 8/6/2010 9:15 AM EXHIBIT 2 Budget Analysis,Operating and Non-Operating Expenses Budget Analysis 2009-2010 2011-12 %Change from %Change Actual 2010-11 Forecasted 10-11 Adopted from 09-10 Expenses Adopted (@2.5%Cola) Budget Actuals Program 32 Salaries+Benefits 1,189,378 1,384,711 1,463,956 5.72% 23.09% Program 32 Services+Supplies 38,712 51,750 63,095 21.92% 62.99% SUBTOTAL,Operating Expenses 1,228,089 1,436,461 1,527,051 6.31°% 24.34% Pro ram 32 Fixed Assets 6,295 0 0 -100.00% _ Program 37 __ Coastside/Mt.Umunuhum 8,518 425,278 273,843 _ -35.61% _ 3114.86% Pro ram 36 Planning Projects — 203,028 353,000 321,000 -9.07% 58.1_1% Pr ram N Staff Facilities 314,131 507,000 1,190,000 134.71% 278.82% Pro ram 34 Public Facilities/FEMA 260,620 1181,000 2,244,000 90.01%—761.02% Program 38 Unanticipated CIP 15,058 25,000 25,000 0.00% 66.03% TOTAL,All Expenses 2,035,739 3.927.739 5,580,893 42.09% 174.15% �::I'aries+ Benefits 5,733,170 6,107,851 6,409,824 4.94% 11.80% ices+Supplies---- 1,752,535 1,699,377 1,769,126 4.10% Fixed Assets 311,321 336,310 372,310 10.70% 19.5 0 SUBTOTAL,Operating Expenses 7,797,026 8,143,538 8,551,260 5.01% 9.67% Special Projects 86,826 1,601,000 1,695,000 5.87% 1852.17% TOTAL,All Expenses 7,883,852 9,744,538 10,246,260 5.150/0 29.97% Salaries+Benefits 783,580 829,167 888,037 _ 7.10% — 13.33% Services+Supplies 329,722 354,348 375,898 6.08% 14,00% SUBTOTAL,Operating Expenses 1,113,302 1,183,515 1,263,935 6.79% 13.53% TOTAL,All Expenses 1,113,302 1,183,515 1,263,935 6.79% 13.53% Bloom Salaries+Benefits 535,132 586,947 647,959 10.39% 21.08% Services+Supplies 107,561 167,840 139,000 17.18% 29.23 Fixed Assets SUBTOTAL,Operating Expenses 642,692 754,787 786,958 4.26% 22.45% Property Management 143,665 178,554 189,326 6.03% 31.78% -- Debt 7,818,920 8,078,081 10,190,000 26.14% 30.32% Land+Ass.Costs 17,489,6031 15,656,500 15,507,000 -0.95% -11.34% TOTAL,All Expenses 26,094,8801 24,667,922 26,673,284 8.13% 2.22% Salaries+Benefits 1,710,892 2,058,645 2,241,724 8.89% 31.03% Services+Supplies 534,579 682,814 627,857 -8.05% 17.45% SUBTOTAL,Operating Expenses 2,245,472 2,741,459 2,869,581 4.67% 27.79% ( IFixedAssets 71,736 50,000 120,000 140.00% 67.28% TOTAL,All Expenses 2,317,208 2,791,459 2,989,581 7.10% 29.02% Operating Budget 13,026,581 14,259,760 14,998,784 5.18% 15.14% Propel Mana _ant 143,665 178,554 189,326 6.03% 31.78% Unanticipated CIP 15,058 25,000 25,000 0.00% 66.03% —._— —_ — - Public Access Facilities 260,620 1181,000 2,244,000 9001% 76102% Staff Facilities 314,131 507,000 1,190000 134.71% 27882% Planning Projects 203,028 353,000 321000 -9.07% 58 11/o Coastside/Mt Umunhum 8,518 425,278 273,843 -35.61% 3114 86% Special Projects 164,858 1,651,000 1,815,000 9.93% 1000.95% Amount outside of Operating Budget 1,109,8781 4,320,832 6,058,169 40.21% 445.84% Salaries and Benefits 9,952,151 10 967,321 11,651,499 6.24% 17 08°/ Services and Supplies 2,763,109 2,956,129 2,974,975 0.64% 7.67% T......................Fixe_d Assets_ _ — 311,321 336,310 372,310 — — — 10.7_0% — _19.59_°/ _ _ _ Subtotal(Operating Budget) _ _ _ _ _ -13,026_581 —14,259.760 — 14,998,784 --- — _5.1_8% ----15.14% — — — —I— — — Total OutsideOperatinq8udget- _1,109_878 — 4,320,832 -- _60_58,169 -------40.21% -- 445.84% Subtotal(Full_Operating_Budget) 14,136_459 /8,580.592 -- 21:056,953 _-13.33% --_48.95_%0 — — --- — Debt' 7,818,920 -8,07$,0$1 -10,1_90,000 -2_6.1_4% - 3_0.32_% -----------I--- - -- - ------------------------------------ Subtotal - - -- - - - --- _ _ _ _ _ (in_cludes Debt)_ _ _ — _ _ _ — _21,955,379 26,6_58,673 --_31,2_46,9_53 — ----17.2_1% ---42.32_% land+Assoc.Costs 17,489,603 15,656,500 15,507,000 0.95% -11.34% District Budget Total 39,444,981 42'315,1731 46,753,953 10.49% 18.53% Debl'. (FV11-12): Reflects Interest on New Debt service of S22,24M taken in 1212010 7/16/2010 Midpeninsula Regional • ' Open Space District To: Board of Directors From: Stephen E. Abbors Date: August 3, 2010 Re: FYIs TMi i GENERAL MANAGER 1 Stephen E.Ahbors Regional OpenSpaee Midpeninsula Regional Open Space District BOARD OF DIRECTORS Pete Siemens Mary Davey Jed Cyr Curt Riffle Nonette Hanko Larry Hassett July 29, 2010 Cecily Harris Santa Clara County Planning Commission 70 West Hedding Street East Wing, 7th Floor San Jose, CA 95110 RE: Wozniak Expanded Winery Use Permit, Architecture and Site Approval—Comments on Mitigated Negative Declaration and Initial Study Dear Commissioners: On behalf of the Midpeninsula Regional Open Space District, I would like to submit the following comments regarding the proposed Use Permit and Architecture and Site Approval for an expanded winery at 21435 Summit Road in unincorporated Santa Clara County adjacent to the District's Bear Creek Redwoods Open Space Preserve (OSP). These comments pertain to the adequacy of the Mitigated Negative Declaration prepared for this project under the California Environmental Quality Act CE A and other p J Q Y ( Q ) project-related issues. This Use Permit would authorize 28 events per year between May 1 st and September 30th for a maximum of 100 guests and 8 staff members for wine tasting, wedding receptions, and other events. The project would also entail the following improvements to P p J g P accommodate this expanded use: 62 new parking spaces with access driveway improvements, demolition of a temporary bathroom trailer and replacement with a permanent 676 square foot bathroom facility, septic system, and water system. The District owns and manages approximately 60,000 acres of public open s ace land on the San Francisco Bay peninsula, including Bear Creek Redwoods OSP, which is approximately 1,345 acres, and located immediately adjacent to the proposed project site. The District's mission is: To acquire and preserve a regional greenbelt of open space land in perpetuity;protect and restore the natural environment; and provide opportunities for ecologically sensitive public enjoyment and education. As an immediate neighbor of the project site greatly concerned about the potential project impacts on Bear Creek Redwoods OSP, we respectfully request that the Planning Commission consider the following comments during its project and CEQA review: 33o Distel Circle Los Altos,CA 94022 j 65o 692.1200 1 6So 691.048S ( www openspace org Comments-Wozniak Expanded Winery Use Permit,Architecture And Site Approval Page 2 July 29,2010 i Williamson Act The project site is subject to an existing Williamson Act Contract. On July 19, 2007, the County issued a Compatible Use Determination (CUD) for expanded winery use. However, the CUD noted that the specific winery expansion project had not yet been defined, and future parking and other improvements which may be proposed as part of the Use Permit were not included in the CUD's analysis. In 2007, the County noted that more than 42,175 square feet of the parcel had been developed. (Several existing improvements, such as a playground, solar panels, shed, and leach field were not included in the calculation.) This area was below the maximum allowed development area of 10% of the property, or 1.4 acres (60,984 square feet). The CUD states that additional development, such as parking, may require the preparation of a new CUD. The plans for this project include substantial new hardscape development, including 62 paved parking spaces, access driveway improvements, and a new septic and water system. These additions could bring the developed area of the parcel above 60,984 square feet. However, the plans and the initial study do not include a calculation of the anticipated total developed area on the parcel once these improvements have been constructed. Without this information, it cannot be conclusively determined whether this Use Permit complies with the Williamson Act contract, since the total development may exceed the 10% maximum area allowed for compatible use under the County's Williamson Act Guidelines. Therefore, we request that the County re-evaluate the 2007 CUD, in light of the current project proposal, to ensure Williamson Act compliance. Defensible Space In the project file, the County fire marshal's recommendations call for 100 feet of defensible space clearing around the existing structures on the site. However, two of the existing structures are located within 100 feet of property boundary with Bear Creek Redwoods Open Space Preserve. Therefore, the recommendations should be for defensible space clearing 100 feet around structures or up to the property boundary, whichever comes first. To clear vegetation on District land, neighboring property owners must apply to the District for a Defensible Space Permit Pp Y P Noise Impacts Because visitors often come to our preserves in search of a calm, natural experience, the District is particularly concerned about the potential noise impacts of this project. The barn, pond, and redwood grove where wine tasting and reception events are proposed are all directly adjacent to District land, located less than 30 feet away from the property boundary with Bear Creek Redwoods OSP. In a recent site visit, District staff noted that sound travels very well in this area, and one can clearly hear normal speech and other sounds from at least 300 feet away from the property line inside the Preserve. Outdoor, amplified sound proposed as part of the expanded winery use permit would be significantly louder and travel farther into the Preserve than the modest everyday noises District staff was easily able to hear. i i Comments-Wozniak Expanded Winery Use Permit,Architecture And Site Approval Page 3 July 29,2010 Although this Preserve is currently only open to visitors by permit, the District anticipates opening the Preserve to the general public without requiring a permit in the future. As art f o the Draft Bear reek Redwoods/ Sierra Azul p C S e Open Space Preserves Master Plan, the District plans to provide a network of trails throughout the Preserve including the p p � g II area of the Preserve near the proposed extended winery use permit area. Since weekends are the District's highest visitor use periods, noise from weekend events at the project site would have a significant adverse impact on the Preserve's visitors. The noise study prepared by Rosen Goldberg Der& Lewitz, dated July 30, 2008, and the supplemental study dated June 16, 2010, focus solely on noise levels along the property boundary at Summit Road and do not present any data or analysis regarding the noise impacts that the proposed project will have on the adjacent Preserve. Therefore, in order to have an adequate CEQA document, it is imperative that the County require a supplemental study that adequately analyzes potential project noise impacts to Bear Creek Redwoods OSP. In the absence of such a study, the current mitigated negative declaration is manifestly inadequate. We also request that the project be altered to prohibit outdoor amplified sound, as we believe its impact cannot be mitigated to insignificant levels. Impacts to Recreation The District is concerned that this project may have a number of significant impacts on District land and will impact present and future recreational resources. As mentioned above, the noise generated during events will diminish visitors' experiences in Bear Creek Redwoods OSP. In addition, this project increases the potential for unauthorized and illegal use of District lands. The project as currently proposed will gather large groups of people on an area directly adjacent to Bear Creek Redwoods OSP, which is currently open by permit only. The pond, redwood grove, and barn where events would be located are all located within 30 feet of the property boundary. Winery and event guests to the project site may be tempted to trespass onto District lands. It is also very likely that guests will easily enter the Preserve without realizing it. In addition to concerns of trespassing, winery visitors who do enter our Preserve may violate other District ordinances, such as those that prevent smoking or littering. This would have other adverse impacts on the Preserve, such as an increased fire risk and degradation of the natural environment. Increased trespassing and violation of District ordinances would also create an increased demand for District patrol and enforcement activities, which would have an adverse impact on the District's limited staff resources. Before the County considers approval of this project, we request additional mitigation measures to prevent trespassing, such as construction of a rustic, split rail fence on the applicant's property boundary with the Preserve with adequate signage to clearly delineate the property boundary and discourage trespassing. We are concerned that this project, as currently proposed, will have adverse noise and recreational impacts that are inappropriate given its location in a remote, minimally developed area bordering an open space preserve. Therefore, we ask the Santa Clara County Planning Commission to continue this item to a later meeting and revisit the environmental review to fully and adequately analyze the project's impacts, incorporating additional mitigation measures such as those requested above. i Comments- Wozniak Expanded Winery Use Permit,Architecture And Site Approval Page 4 July 29,2010 We appreciate the opportunity to provide comments on this project, and thank you for your consideration. Should you have any questions,please feel free to contact me at the District, (650) 691-1200. Sincerely, r r _ Kirk Lenin on, Acting Planning Manager KL:es:jb Cc: Steve Abbors, General Manager, MROSD MROSD Board of Directors I From: Craig Dremann- Redwood City Seed Company[Craig@astreet.com] Sent: Friday, July 30, 2010 11:02 AM To: Michelle Radcliffe Cc: craig@astreet.com; matt.brown@cnt.sccgov.org; Mike.Jarske@fire.ca.gov Subject: Bunchgrass and wildflower fire insurance? Dear Mid-peninsula Regional open Space District Board, Your clerk recently sent me an email with a list of burns that have been conducted at the District Preserves, and lists the agencies financially responsible for any damages caused by those burns. I also received an example of the typical Burn Permit to Enter, which outlines in Clause 7, Insurance---that your agency is supposed to have insurance to cover: not less than $5, 000, 000 per occurrence for bodily injury and $1, 000,000 per occurrence for property damage. According to the District, either CAL FIRE or Santa Clara County Fire are responsible for any property damage for the following burns : Preserve Date Year Acres Lead Agency Rancho de Guadalupe June, 1997 9 Santa Clara County Fire Russian Ridge August, 1998 80 CAL FIRE Fire Rancho de Guadalupe June, 1999 9 Santa Clara County Russian Ridge July, 1999 145 CAL FIRE Russian Ridge October, 2002 65 CAL FIRE Rancho de Guadalupe June, 2003 9 Santa Clara County Fire Rancho de Guadalupe July, 2004 9 Santa Clara County Fire Russian Ridge July, 2007 120 CAL FIRE Rancho de Guadalupe June, 2009 30 Santa Clara County Fire Russian Ridge July, 2009 144 CAL FIRE Rancho de Guadalupe June, 2010 30 Santa Clara County Fire Unfortunately, the cumulative fire damages to the native wildflowers and native bunchgrass habitats on the 100+ acres at the north end of the Russian Ridge preserve alone, total $10 million dollars, or about $10, 000 per acre to mitigate the fire damages. $10, 000 per acre is the estimated costs to replant the wildflower and native bunchgrass habitats, to get them back to pre-burn levels of coverage, and to eradicate the weeds that have been spread by the fires. Some of the weeds spread by the fires at Russian Ridge, have been wild oats, Harding grass, yellow star thistle and the Italian thistle, and you can see details at http://www.ecoseeds.com/invent.html. Since the entire Russian Ridge preserve total mitigation costs may exceed $20 million dollars, I have sent emails to both CAL FIRE and Santa Clara County fire (and emailed copies to the District) , to ask if they have sufficient insurance to cover the measurable native bunchgrass and wildflower resource damages that have occurred so far? STIPULATIONS. An agreement made between parties, to see which issues are still in contention, to come to an agreement about certain facts and issues. Can the District stipulate to the following: 1. ) Stipulate that native wildflower fields and native bunchgrass habitats are considered by the State Department of Fish and Game, as among the rarest and most endangered plant communities in California, in terms of the tiny percentage of existing relicts in 2010, compared to their state-wide coverage in pre-European times? (e.g. Todd Keeler-Wolf, California Natural Diversity Database, 916-324-6857) . 2 . ) Stipulate that Russian Ridge is one of northern California's best remaining example of 1 wildflower fields and bunchgrass habitat, one of California's rarest and most endangered plant community? (e.g. The 2000 District's $300, 000 report that your consultant Paul Kephart wrote about in GRASSLANDS journal in his June 2001 article, "Resource Management Demonstration at Russian Ridge Preserve.") 3 . ) Stipulate that all of the burns conducted on your District' s preserves, were done without an EIR under CEQA, and that a pre-burn checklist is not a substitute for an EIR? 4 . ) Stipulate that your agency, when giving CAL FIRE and Santa Clara County permits to burn your preserves, they agreed they would cover all potential property damages caused by any burn they conducted? 5. ) Stipulate that any measurable or cumulative damages to the native bunchgra ss habitat and wildflower fields, constitute property damages? 6. ) Stipulate that CAL FIRE or Santa Clara County fire are liable for all mitigation costs, to bring back each of the Preserves that were burned, to their pre-burn wildflower and native grass percentage of cover, and to bear the total costs of eradicating the weeds that have grown in after the fires? 7. ) Stipulate that if it is determined that fire damages to the bunch grass and wildflower fields at the two preserves totals tens of millions of dollars in damages, and either CAL FIRE or Santa Clara County fire are unwilling or unable to cover those costs, that the District is prepared and has the financial ability to cover the total mitigation costs? I look forward to your reply. Sincerely, Craig Dremann (650) 325-7333 Box 609, Redwood City, CA 94064 2 i i f • Midpeninsula Regional ' Open Space District To: Board of Directors From: Stephen E. Abbors Date: August 11, 2010 Re. Late FYI P. Petereit From: Mike Williams Sent: Friday, Auggust 06, 2010 2:49 PM To d etereit22@ hotmail .com p Radcliffe; Anna Duon Steve Abbors• Michelle g CC: BOARD; St , Subject: District Response to your Email Dear Ms. Petereit: I am following up on Director Cyr's e-mail response to you on 7uly 28th. My name is Mike Williams and I am the District's Real Property Manager. As Director Cyr indicated, the District buys rural lands from willing sellers. These lands are generally outside of city limits and within the District's boundary or sphere of influence. The District seeks to connect existing open space Preserves with other public and non-profit park and open space lands in northern Santa Clara County, southern San Mateo County and bordering areas of the Santa Cruz Mountains in Santa Cruz County. The District also looks to provide regional trail corridors, habitat and resource connections between public and non-profit open space and park lands. I have attached a link to the District's Basic Policy which covers the District's mission and strategic purpose in more detail . If you have additional questions, please feel free to contact me directly by telephone at (650) 691-1200 Ext. 542 or y email at mwilliams@openspace.org. Thank you for your interest in the District. sincerely, Michael Williams Real Property Manager Michael Williams Real Property Manager mwilliams@openspace.org Midpeninsula Re ional open space District 330 Distel Circle, Los Altos, CA 94022 P: (650) 691-1200 - F: (650) 691-0485 Page 1 GENERAL MANAGER Stephen E Abhors Regional 0penSpace I Midpeninsula Regional Open Space District BOARD OF DIRECTORS Pete Siemens Mary Davey Jed Cyr Curt Riffle Nonette Hanko Larry Hassett August 11, 2010 Ceciiy Harris The Honorable Mike Honda United States House of Representatives 1713 Longworth House Office Building Washington, DC 20515 RE: FY2010 Defense Appropriations for Remediation and Cleanup of the Former Almaden Air Force Station Dear Congressman Honda: As you know, the District has been working with the United States Army Corps of Engineers (Corps) and with David Witschi from the Office of Economic Adjustment (OEA) to ensure that we meet the September 30, 2010 deadline for obligating all of the funds you secured as part of the FY2010 Defense Appropriations Act. With that date just around the corner I wanted to provide you with an update on the project. On, August 9 we initiated a call with representatives from the Corps' Sacramento office and with Mr. Witschi because we are concerned that not all of the pieces are in place that will allow the Corps to complete their internal processes required to obligate the funds before September 30, the end of the fiscal year. I explained to all present that the District's goal has been and is to cost effectively remediate the site using the federal appropriation with the Corps as our partner. I will briefly discuss our concerns in more detail before describing the two-part plan on which all participants agreed to ensure the congressional appropriation is obligated. The following is a brief overview of the open questions and outstanding issues that create uncertainties for some of the project's critical path items. All of these uncertainties must be resolved, as described below, for the funds to be obligated and the project to proceed with the Corps as currently envisioned. Will the request for proposal (RFP) be released in time? It is not yet clear when the RFP, (defined under the contracting mechanism for this project as a Performance Work Statement or PWS), will be released and, therefore how much time bidders will actually have to review the project. In order for there to be sufficient time to allow bidders to evaluate the project, the PWS needs to go out by August 13. The Corps 33o Distel Circle Los Altos,CA 94022 ( 6So 691-1200 6So 691048S vvww openspace org III believes this date is possible, but can't give any guarantees. Our concern is if bidders have insufficient time for review,project costs will increase substantially, thus jeopardizing our ability to complete the remediation and demolition aspects of this project. Will the Right of Entry (ROE) permit be completed in time? The Corps is required to have an ROE in place before it can award the contract, and thereby obligate the funds. Despite the coordinated development of a detailed schedule in May and June, a previously unknown requirement from the Corps' Real Estate division first surfaced last week. The Corps did provide the District with a generic example of this document on August 10. In our meeting on August 9, the Corps' Real Estate division was not able to comment on the specific ROE requirements for this project, nor could they commit to the amount of time their attorneys would need to review and approve the ROE. In addition, the Real Estate division could not ascertain whether ROEs would have to be obtained from neighboring properties for which the District has easement rights. They indicated that should this be deemed necessary, it could be a major obstacle for them. We shared with the Corps our serious concern that the resolution of these questions may not come in time. Will the Corps complete the NEPA environmental document? The Corps is in the process of preparing a Categorical Exclusion which needs to be signed before the funds can be obligated. If no new issues or obstacles emerge, the Corps believes this important milestone can be completed within the required timeframe. Will the Corps and the District complete the Project Management Plan (PMP)? This is the formal mechanism that both the Corps and the District have agreed will establish the working relationship between the parties to enable the work to be completed on District lands. In parallel with the ROE, this document must be completed and signed off by all parties before the funds can be obligated. Currently, this document is in rough draft. Both the District and the Corps are editing the PMP with the understanding that this document must be fully approved by all parties no later than September 10. At this juncture, it is unclear whether all parties will reach agreement by September 10. In light of these uncertainties, the participants agreed on the following two-step plan: 1. The Corps and the District will work to successfully resolve the issues described above such that the project can proceed as currently envisioned. OEA has notified us that resolution of all outstanding issues must be in place no later than September 10, 2010, if the funds are to be obligated by September 30, 2010. If on September 10, 2010 it is clear that the Corps and the District have not reached resolution on all outstanding issues or that any uncertainty remains on critical path items, then: 2. OEA will recover the funds that were transferred to the Corps and the District will revise its grant application. The funds would then be awarded directly to the District, thereby obligating the funds and providing a five-year window within which they can be expended to achieve project goals. The District looks forward to completing the cleanup work and protecting the unique environment on top of Mt. Umunhum and again, we thank you for making this project possible. Please contact me at(650) 691-1200 if you have any questions. Sincerely, Stephen E. Abbors General Manager Cc:Steven Saepoff Chief, Military and Environmental Projects Branch U. S. Army Corps of Engineers