HomeMy Public PortalAbout20070314 - Agenda Packet - Board of Directors (BOD) - 07-06 Regional Open Space
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
Meeting 07-06
REGULAR MEETING
BOARD OF DIRECTORS
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
7:30 p.m.
Wednesday, March 14, 2007
330 Distel Circle, Los Altos, California
Please Note: 7:30 p.m. Regular Meeting Start Time
AGENDA*
7:30 REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
ROLL CALL
ORAL COMMUNICATIONS-Public
ADOPTION OF AGENDA-K.Nitz
ADOPTION OF CONSENT CALENDAR-K.Nitz
WRITTEN COMMUNICATIONS
APPROVAL OF MINUTES
■ JANUARV 24,2007
BOARD BUSINESS
7:40* 1 Approval of Three-Year Implementation and Funding Plan for Improvement of District's Two-Way Radio
System;Authorization of Expenditures of$300,000 in Fiscal Year 2007-2008 for System—D.Topley
:10* 2 Controller's Report on the Proposed Fiscal Year 2007-2008 Budget—M. Foster
8:20* 3 Initial Presentation of the District's Budget for Fiscal Year 2007-2008; Final Report and Recommendations
of the Administration and Budget Committee will be Presented at the Regular Board Meeting of March 28,
2007 —S. Rice
8:50* 4 Adoption of Resolution Authorizing Purchase of the Smith Property in the Amount of$375,000 as an
Addition to Monte Bello Open Space Preserve(Santa Clara County Assessor's Parcel Number 351-12-043;
Adjacent to State Highway 35); Determination that the Recommended Actions are Categorically Exempt
from the California Environmental Quality ACT(CEQA);Adoption of Related Preliminary Use and
Management Plan and Statement of Intent to Dedicate— M. Williams
5 Authorizing the General Manager to Execute a Purchase Contract with the State Department of General
Services and Contract Dealerships for Nine Vehicles at a Total Cost Not to Exceed$350,000—D.Topley
REVISED CLAIMS
9:05* 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 matter at a future meeting;or direct staff
to place a matter on a future agenda.
9:20* ADJOURNMENT
Aeetin 07-06 Page 2
* Times are estimated and items may appear earlier or later than listed.Agenda is subject to change of order.
** TO ADDRESS TmE 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.
*** 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.
Regional Open Space _11 111;11116116
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
R-07-40
Meeting 07-06
March 14, 2007
AGENDAITEM 1
AGENDA ITEM
Two Way Radio System Plan for Improvement.
TI
GENERAL MANAGER'S RECOMME:L
1. Review consultant's cost analysis for implementation of a digital simulcast two-way
radio system in two,three and five-year timelines.
2. Approve the three-year funding plan and authorize expenditure in the amount of
$300,000 in Fiscal Year 2007-2008 contingent upon board approval of the 2007/2008
Fiscal Year budget.
3. Direct staff to complete the project within three to five years depending on the amount of
District staff time required and other factors including FCC licensing and cooperative
purchasing opportunities available.
BACKGROUND
At your January 29, 2007 meeting you accepted the consultant's report for implementation of a
digital simulcast two-way radio system for the District (R-07-1 0). At that meeting you requested
staff return with a detailed cost analysis to implement the system in a time period shorter than the
proposed five-year implementation period.
DISCUSSION
Staff instructed the consultant to provide a cost analysis for periods of two, three, and five years,
with two years being the shortest time period possible to implement the new system. The
consultant was instructed to include all costs including hardware, installation, site improvements,
annual recurring costs, project management, and the cost of retiring existing equipment before its
useful life.
The following information is based on the consultant's cost analysis report. The original estimate
for the five-year plan was $1,334,030. To accelerate the plan to a three-year project adds
$91,640; a two-year timeline will increase costs by $125,960 (see Chart below). These additional
costs include both increases for expenses such as retiring existing equipment early and increased
site lease and maintenance costs after the system is operational. This amount also reflects savings
achieved in project management and through inflation.
Another factor which plays into a shorter timeframe is the staff time needed to implement the
radio program. Going to a two or three-year program will increase the annual amount of staff
R-0740 Page 2
time required to manage the consultants, oversee the work, and purchase the required equipment.
Up to 25%of the Support Services Supervisor's time would be required, and other projects may
be impacted.
The total costs, including recurring cost over a five-year time period, is listed below. Also
included is the amount required for the first year of the three options.
5 Year
2 Year Timeline 3 Year Timeline Timeline
Non-Recurring Costs $ 1,093,710 $ 1,093,710 $ 1,093,710
Differential costs for shorter timeline $ -29,000 $ -27,000 N/A
Recurring Costs for over 5 years $ 395,280 $ 358,960 $ 240,320
TOTAL- Five Year Cost Is 1,459,9901 $ 1,425,670 $ 1,334,030
Cost for First Year(2007-08 FY) $317,060 $ 280,060 $ 157,940
The three-year-plan will get the system up and running faster while minimizing the cost of
retiring equipment early. Staff s goal will be to complete the new system within three years but
additional time may be required of up to five years depending on the amount of District staff
time required and such factors as FCC licensing and emerging cooperative purchasing
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opportunities available for radios and other equipment.
Therefore, the recommendation is to budget for completion of the program over three years and
attempt to complete it within that timeframe; recognizing, however, that the entire process may
take up to five years given the actual time constraints and circumstances in completing the
process.
Prepared by:
u
David Topley, Support Services Supervisor
Contact person:
Same as Above
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Regional Open Space
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
R-07-42
Meeting 07-06
March 14, 2007
AGENDA ITEM 2
AGENDA ITEM
Controller's Report on the Proposed Fiscal Year 2007-2008 Budget
DISCUSSION
The following cash flow projection shows the impact of the proposed fiscal year 2007-2008
budget on the District's cash position. The District will begin the new fiscal year with estimated
cash balances totaling $37.0 million. Approximately$1.4 million of this cash is not available to
meet operating needs as it represents the reserve requirements of the District's outstanding public
notes. Overall, projected income and available cash are adequate to cover budgeted debt service,
operating expenses, preserve development, reserve requirements, and up to $35 million of cash
for new land acquisition. No new public financing is assumed in this budget. As shown in the
attached monthly cash flow projection, no cash flow problems are anticipated.
ANNUAL CASH FLOW PROJECTION
FISCAL YEAR 2007-2008 BUDGET
($Thousands)
Estimated Beginning Cash Balance 36,983
Plus: Tax Revenue 23,714
Acquisition Grants 3,725
Development Grants 196
Interest Income 1,600
Rental Income 846
Other Income 250
Total Cash Income 30,331
Minus: Property Management Expense 134
Major Projects 1,617
Operating Expenses 12,318
Debt Service 7,418
Land Acquired 30,025
Total Cash Expenditures 51,512
Ending Cash Balance 15,802
R-07-42 Page 2
Income
I Tax Revenue is budgeted at$23.7 million(68% from Santa Clara County and 32% from
San Mateo County). This reflects the end of the two year tax shift to the state, ERAF 111,
which reduced District tax revenue by $580,000 in our fiscal 2007. The underlying
growth in secured property tax revenue has been strong for the last three years, averaging
over 7%per year. However, information from the assessor's office indicates that
residential values have tapered off and some assessment reductions are anticipated.
Accordingly, the proposed budget includes cautious forecast increases of 3.5% and 4% in
secured tax income in Santa Clara and San Mateo Counties, respectively. This slowing
was reflected in reduced supplemental tax receipts in fiscal 2007, and the budget assumes
continued decline in supplemental taxes in fiscal 2008. Unsecured taxes maintained their
rebound in Santa Clara County during fiscal 2007 and this is expected to continue in
fiscal 2008. However, unsecured taxes from our portion of San Mateo County declined
for the fifth consecutive year in fiscal 2007 and no rebound is predicted in fiscal 2008.
Overall, total District tax revenue is expected to be up 6% in the current tax year-3.2%
due to underlying growth in assessed valuations and 2.8% due to the end of ERAF III
2. Grant Income is projected at $3.9 million; $3.725 million for specific land acquisitions
and $196,000 for preserve development projects. Budgeted land acquisition grant income
includes $2.5 million of state funding and$1.2 million of county funds.
3. Interest Income is projected at$1.6 million, assuming average investment rates of 4.9%
on bond reserve funds and 5.2% on other funds.
4. Rental Income is projected at$846,000, up 1.6% from fiscal 2007.
5. Other Income is estimated at $250,000 for various reimbursements, fines, fees, cash
donations, and loan repayments.
Debt Capacity
At the end of March 2007, the District will have bonded indebtedness equal to approximately
51% of its debt limit. No new public or private debt financings are budgeted in fiscal 2008.
Debt Service
Debt service requirements for fiscal 2008 are $7.42 million. This represents an 8% increase over
fiscal 2007. Debt service represents 31%of estimated tax revenue—the same percentage as in
fiscal 2007 and well below the average of 36% in the prior six years. The currently scheduled
payments are detailed in the Debt Service Annual Claims List,to be presented at your regular
meeting on March 28, 2007.
Other Expenditures
1. Major Improvements: The budget includes $1.62 million for major development and
planning projects, including $300,000 for the first phase of the upgrade of the radio
R-07-42 Page 3
system. This compares to fiscal 2007 spending of approximately $1.2 million.
2. Property Management Expenses are budgeted at $134,000.
3. Operating Expenses are budgeted at $12.32 million, up about 13% from estimated fiscal
2007 spending. If the District spends 97% of its operating budget, as assumed in long
term financial plans, the annual increase would be about 10%. Budgeted operating
expenses represent 52% of projected tax revenue, up from 49% in fiscal 2007.
4. The budget assumes $30 million of Land Acquisitions, all for cash. No gifts of land are
budgeted.
Reserves
If all revenues, expenditures occur as budgeted,the District's cash balances would total $15.8
million at the end of the coming fiscal year, some $14 million more than needed to meet bond
reserve requirements.
Long-Term Cash Projections
Also attached is a ten-year cash flow projection covering the period through fiscal 2017. The
projection assumes no new debt issues. For fiscal 2008, the projection is the budget with the
exceptions that, based on experience, operating expenses are shown at 97% of budget and major
li project spending is shown at 90% of budget. Beyond fiscal 2008, the projection assumes 3%tax
revenue growth in fiscal 2009-2010 and then a rebound to 5%annual growth thereafter.
Operating expense growth is assumed at 6%per year in fiscal 2009-2010 and 7%/year thereafter.
In this projection, operating expenses as a percent of tax revenue increase from 50%of tax
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revenue in fiscal 2008 to 61 /o in fiscal 2417. This "No New Debt" ten-year model generates
in ash for new land acquisition, or $89 million including potential
74 million c approximately $ q g
grant income. If this is insufficient to meet District goals, the District could supplement its cash
position with up to $60 million of additional long-term debt. The issuance of$30 million of
notes in fiscal 2009 and another$30 million in fiscal 2012 would generate additional funds to
support land acquisitions for cash of approximately$117 million in this ten year period.
Prepared by:
Michael L. Foster, Controller
Contact person:
Same as above
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MROSD MONTHLY CASH FLOW BUDGET 2007-2008
($Thousands) APR MAY JUNE JULY AUG SEP OCT NOV DEC JAN-MAR TOTAL
BEGINNING CASH 36,983 41,945 42,404 42,458 42,078 36,437 34,845 32,091 31,480 36,771 36,983
TAX REVENUE 6,300 100 2,285 150 60 1,050 30 1 2,250 7,800 3,689 23,714
DEVELOPMENT GRANTS 0 0 50 0 0 50 0 0 5o 46 196
INTEREST INCOME 50 125 250 50 125 250 40 115 230 365 1,600
OTHER INCOME 75 75 135 75 75 80 75 75 80 351 1,096
OPERATING REVENUE 6,425 300 2,720 275 260 1,430 145 2,440 8,160 4,451 26,606
OPERATING EXPENSES -950 -950 -950 -980 -980 -980 -1,010 -1,010 -1,010 -3,498 -12,318
PROPERTY MGMT -11 -11 -11 -11 -11 -11 -11 -11 -11 -35 -134
MAJOR IMPROVEMENTS -120 -120 -120 -120 -120 -130 -130 -130 -130 -497 .1,617
DEBT SERVICE -7 0 0 -7 -4,790 -51 -48 0 0 -2,515 .7,418
OPERATING CASH FLOW 5,337 -781 1,639 -843 -5,641 258 -1,054 1,289 7,009 -2,094 51119
DEBT ISSUES 0
LAND ACQUIRED 375 1,700 1,850 1,700 1,900 2,500 20,000 30,025
ACQUISITION GRANTS 1,240 115 463 782 1,125 3,725
GIFTS OF LAND 0
NET CASH FOR LAND 375 -1,240 1,585 -463 0 1,850 1,700 1 1,900 1,718 18,875 26,300
ENDING CASH 41,945 42,404 42,458 42,078 36,437 34,845 32,091 31,480 36,771 15,802 15,802
RESERVE FUNDS 1,393 1,393 1,393 1,393 1,393 1,393 1,393 1,393 1,393 1,393
NOTE FUNDS 4ju 41782 4.m 4 782 0 0 4 4 ZA02 0
AVAILABLE CASH . 35,7701 36,2291 36,283 1 35,903 1 35,044 1 33,452 1 30,698 1 30,087 1 32,976 1 14,409
0708MOCF 1 1:36 AM3/6/2007
MROSD 10 YEAR CASH FLOW PROJECTION
No New Debt TAX GROWTH.BUDGET IN 07-08, +3%IN 08-10, +5% THEREAFTER
($Thousands) EXPENSE GROWTH.BUDGET x 97%IN 07-08, +6%IN 08-10, +79/6 THEREAFTER
MAJOR PROJECTS: BUDGET x 905,6' IN 07-08, $1.9M in 09, $1.3M THEREAFTER
FISCAL YEAR: 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17
BEGINNING CASH 46,401 36 983 16,333 6,181 6,440 6,588 6,477 61797 6,477 6,619 6,494
TAX REVENUE 22,387 23,714 24,425 25,158 26,416 27,737 29,124 30,580 32,109 33,714 35,400
DEVELOP GRANTS 183 196 202 208 214 221 227 234 241 248 1 256
INTEREST INCOME 1900 1,600 900 500 350 350 350 350 350 350 350
OTHER INCOME 1,083 1,096 1,112 1,122 1,146 1,163 1.181 1.198 1 216 1 M 1,253
OPERATING REVENUES 25,553 26,606 26,640 26,995 28,126 29,471 30,882 32,362 33,916 35,547 37,259
OPERATING EXPENSES 10,874 11,948 12,665 13,425 14,365 15,370 16,446 17,597 18,829 20,147 21,557
Operating Exp/Tax Revenue 49% 50% 52% 53% 54% 55% 56% 58% 59% 60% 61%
PROPERTY MGMT 156 134 138 142 146 151 155 160 165 170 175
MAJOR PROJECTS 1,209 1,455 1 900 1,300 1,339 1,406 1,476 1,550 1,628 1,709 1,794
CURRENT DEBT SERVICE 6,884 7,418 7,588 7,819 8,078 9,054 8,884 8,425 8,652 9,146 9,767
NEW DEBT SERVICE 0 0 0 0 0 0 0 0 0 0
OPERATING SPENDING 19,123 20,956 22,2.91 22,686 23,928 25,981 26,962 27,733 29,274 31,172 33,294
OPERATING CASH FLOW 6,430 5,650 4,348 4,309 4,198 3,489 3,920 4,630 4,642 4,375 3,965
NOTE PROCEEDS (NET)
LAND ACQUIRED 37,130 30,025 22,000 4,500 4,500 4,000 4,000 51500 5,000 5,000 4,500
ACQUISITION GRANTS 3,075 3,725 7,500 450 450 400 400 550 500 500 450
GIFTS OF LAND 18,207 0 4 0 0 0 0 0 0 0 0
NET CASH FOR LAND 15,848 26,300 14,500 4,050 4,050 3,600 1 3,600 4,950 4,500 4,500 4,050
ENDING CASH 36,983 16,333 6,181 6,440 6,588 6,477 6,797 6,477 6,619 6,494 6,409
REQUIRED RESERVES 1,393 I'M 1 393 1.393 1.393 1.393 'm 1,393 1.393 11-M 1,393
AVAILABLE CASH 35,590 1 14,940 1 4,788 1 5,047 1 5,195 5,084 5,404 1 5,084 1 5,226 1 5,101 5,016
CUMM NEW LAND 0 30,025 1 52,025 1 56,525 1 61,025 65,025 1 69,025 1 74,S25 I 79,525 I 84,52S 89,025
CUMM CASH FOR NEW LAND 26,300 40,800 44,850 48,900 52,500 56,100 61,050 65,550 70,050 74,100
IOYRCF0708BUDnnd
11:38 AM3/6/2007
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Regional Open Space
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
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R-07-43
Meeting 07-06
March 14, 2007
AGENDA ITEM 3
AGENDA ITEM
Initial Presentation of the District's Budget for Fiscal Year 007-200$
GENERAL MANAGER'S RECOMMEND , N
Review the proposed District budget for the 2007-2008 fiscal year. T e final District budget for
the 2007-2008 fiscal year and the report and recommendations of the Administration and Budget
Committee will be presented at your March 28th Regular meeting for adoption.
DISCUSSION
Overview
This report presents the proposed budget for the 2007-2008 fiscal year that extends from April 1,
2007 through March 31, 2008. The proposed budget for the 2007-2008 fiscal year currently
totals $51,762,944 and breaks down as follows:
Land Purchases $30,275,000
Debt Service $7,418,089
Operating Expenses $12,318,405
Property Management $134,250
Public Access/Planning $1,032,200
Staff Facility Improvements $235,000
Other Special Projects $300,000
Coastside Protection 50,000
Total $51,762,944
The proposed $12,318,405 Operating Budget represents an 11% increase from the 2006-2007
Operating Budget. The increase in the Operating Budget expenses is primarily a result of
proposed increase in staff(four full time and one half time position), increased costs for benefits
as a result of a mandated PERS (Public Employee Retirement System) increase from the
previous year and a new five year agreement with employees, the permanent incorporation of
Coastal Protection Program costs into the operating budget for the first time and a new proposed
contract with the Santa Clara County Sheriff s Department for improved response time.
The budget for Salaries and Benefits reflects two new Equipment Mechanic Operators, a new
Planner I position in the Planning Department, a newly created Web Content Manager/Writer
position in the Public Affairs Department and the conversion of the two part time temporary
clerical positions for each of the field offices to permanent part time positions. Staff changes are
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R-07-43 Page 2
discussed in more detail in the individual department sections of this report. The budget also
includes a one-time sick leave conversion benefit for an employee retiring during this fiscal year.
Budget Growth Guideline for Operating Expenses
The Budget Growth Guideline for Operating Expenses generally provides for an average 7%
growth in an Operating Budget when tax revenue growth is estimated to be 5%or less. The
guideline also allows some limited growth in an Operating Budget beyond 7% when tax revenue
growth is estimated above 5% and the relationship between the Operating Budget and tax
revenue is below 50%. The existing definition of Operating Expenses includes salaries and
benefits, services and supplies, and fixed assets associated with the administration of the
District's five departments, and cost associated with land purchase such as appraisals, title
insurance, legal costs and site engineering. Expenditures for land purchases, property
management, special projects, capital improvements (including master planning) and the Coastal
Protection Program are considered outside operating expenses.
The 2007-2008 tax revenues are anticipated to increase to $23,714,000, a 5.9% increase over
2006-2007 tax revenues. The Operating Budget will be approximately 51.9% of the projected tax
revenue. The guideline requires that the relationship between the Operating Budget and tax
revenue be below 50%. Each year's actual budgetary expenditures; however, are typically 95%
of the original budget, which would then bring the 07/08 expenditures below the 50% guideline.
Staff recommended to the Administration and Budget Committee (ABC) an adjustment to the
7%guideline for this fiscal year due to the substantive changes for this year, as noted in this
report.
Budget Review Process
The 2006-2007 Administration and Budget Committee, composed of Directors Riffle (Chair),
Davey and Siemens, reviewed the proposed budget on the Board's behalf during five open,
publicly-noticed meetings in February and March. The Committee's work, included reviewing
the proposed 2007-2008 budgets by department and category expense groupings (as well as by
major projects and activities), the 2006-2007 projected expenditures, and the Budget Growth
Guideline for Operating Expenses and Board-suggested changes in the Action Plan. The
Committee members received and reviewed all the line item accounts included in each
department's proposed budget, the District-wide budget information for salaries and benefits, the
Operation's department equipment plan, property management and anticipated rental income, the
Capital Improvement Program budget, and the resource management budget breakdown in
Planning and Operations.
Controller Mike Foster met with the Committee on March 1, 2007 to present projected revenues,
debt service, and a District cash flow analysis. The Controller's report will be presented to the
Board separately at your March 14th Regular meeting. The Committee will meet on March 22,
2007, if necessary, to review proposed budget changes suggested by Board members at tonight's
meeting prior to the Board's final adoption on March 28, 2007.
Proposed Program Budgets
The following section of this report presents the 2007-2008 proposed budget by department to
facilitate your review. Attachment A of this report shows in detail the 2007-2008 proposed
budget broken down by department and major expenditure categories.
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R-07-43 Page 3
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1. REAL PROPERTY DEPARTMENT
06-07 Mid Year 06-07 Projected 07-08 Proposed
Budget Expenses Budget
Salaries & Benefits $564,128 565,247 526,984
Services & Supplies $63,300 53,890 104,035
Fixed Assets—Operating 0 0 0
Expenses
Property Management $156,522 156,433 134,250
Debt Service $6,884,000 6,615,654 7,418,089
Land (including costs associated $31,332,529 19,867,375 30,275,000
withpurchase)
Special Pro'ects 0 0
TOTAL $39,000,479 $27,258,599 $38,458,358
The 2007-2008 proposed budget for the Real Property Department is 38,458,358. Excluding debt
service payments, the Real Property Department budget is $31,040,269. The budget proposes
$30,000,000 for New Land Purchases. Controller Mike Foster forecasts that the amount
budgeted for new land purchases will be available in 2007-2008 for the purchase of land.
The Real Property Department's emphasis during 2007-2008 is to continue focusing efforts on
purchasing lands that fill in and complete the open space greenbelt, further expanding the
greenbelt into the Coastal Protection Area, aggressively seeking resolution to encroachment
problems, and completing several grant-funded land purchase projects at Purisima Creek
Redwoods Open Space Preserve and elsewhere.
The budget for Salaries and Benefits decreases slightly below the 2006-2007 adopted budget due
to the recent retirement of two employees with the one vacancy being filled for several months
with a part-time temporary employee. No other position changes are proposed for this
department, however, the Board did approve the change to the class specification of Real
Property Specialist in 2006/2007 to be more expansive in scope. The department now has two
Real Property Specialist positions as opposed to one Real Property Specialist and one Land
Protection Specialist.
The budget for Services and Supplies increased above the 2006-2007 adopted budget primarily
due to an anticipated increase in legal assistance needed to resolve real property rights disputes
on District lands and for preparing grant applications under voter-approved Proposition 84.
The Services and Supplies budget includes monies for appraisals, title research, surveys,
engineering studies, grant preparation, legal fees and environmental assessments related to
protecting the District's real property rights.
The budget for Fixed Assets relates to land purchase support such as appraisals, site engineering,
escrow fees, title insurance, and legal fees.
Debt Service for principal repayment and interest on the District's land contracts and note issues
is budgeted at $7,418,089 for the 2007-2008 fiscal year,which represents a 12 percent increase
from 2006-2007 as a result of the refinancing in 2006.
R-07-43 Page 4
The 2007-2008 proposed budget for the Property Management Program is $134,250, a decrease
from the 2006-2007 adopted budget due to less anticipated rental repairs than the prior year. The
2006/2007 budget included a significant road repair project at Russian Ridge Open Space
Preserve, roof replacement at Monte Bello Open Space Preserve, and a storm drain repair to the
tenant-occupied portion of the Distel Circle office building.
The program's proposed budget is divided into two major areas: 1) ongoing regular property
management activities, and 2) expenditures related to the District's administrative office
building. Operating Expenses for the portion of the Administration building occupied by the
District are included in the Administration budget.
Net income from the District's property management properties for fiscal year 2007-2008 is
projected at $711,898 (gross income of$846,148).
2. PLANNING DEPARTMENT
06-07 Mid Year 06-07 Projected 07-08 Proposed
Budget Expenses Budget
Salaries& Benefits $939,619 $907,848 $1,130,050
Services & Supplies $83,245 $52,102 $123,290
Services (Unanticipated) 0 0 0
Fixed Assets 0 0 0
Coastside Protection $224,300 $209,000 $50,000
Planning Projects $371,300 $259,924 $383,000
Staff Facilities $45,000 $15,000 $235,000
Public Facilities/FEMA $898,000 $703,100 $624,200
Unanticipated Capital $42,000 $22,303 $25,000
Improvements
TOTAL $2,603,464 $2,169,277 $2,570,540
The 2007-2008 proposed budget for the Planning Department is $2,570,540. The decrease in the
overall Planning budget is primarily the result of budget reductions for public access facilities.
The $335,000 Picchetti winery building seismic upgrade project was completed in FY 2006-
2007.
To simplify tracking and reporting, the Planning Department budget is divided into two sections:
Operating Budget, and Planning Projects and Capital Improvement Program Budget.
Operating Budget
The proposed Operating Budget of$1,253,340 reflects Salaries and Benefits and non-project-
related services and supplies necessary for the every day operational needs of the Department.
The increase in Salaries and Benefits is primarily due to annual salary increases, new benefits
noted in this report and the reinstatement of the Planner I position, which was replaced and
reclassified to a GIS Coordinator position during FY 2006-2007. The Planner I position will be
primarily responsible for managing public access improvement projects, conducting review of
proposed developments that could impact District preserves, seeking development and resource
grant funding, and assisting with the planning of new properties. This position will also improve
R-07-43 Page 5
the District's ability to participate in significant local and regional open space planning efforts to
ensure that the agency remains an active and effective stakeholder; such planning efforts include
the Skyline-Sanborn County Park Master Plan, the Bay Area Ridge Trail, the Juan Bautista de
Anza National Historic Trail, and future ridge-to-the-sea trail connections.
The increase in the Services and Supply budget of$40,045 is the result of a proposed $25,000
master contract for engineering services, increased resource agency permit fees, GIS server
backup and software upgrades, and various staff training including CEQA and management
training.
Planning Projects and Capital Improvement Program Budget
The proposed Planning Projects and Capital Improvement Program Budget of$1,267,200 is
separated into programs to reflect the projects associated with specific growth guidelines.
Programs include Planning Projects, Public Access Facilities, Unanticipated Capital
Improvement Projects, and Staff Facilities.
The $1,007,200 proposed budget for Public Access Facilities and Planning Projects is subject to
the $700,000 per year guideline averaged over a five-year period. When adjusted for grant
income, the proposed budget is slightly above the cap as shown in Attachment B.
The Planning Projects Program proposed budget of$383,000 includes the Sierra Azul/Bear
Creek Redwoods and La Honda Creek Master Plans, water quality monitoring at El Corte de
Madera Creek Open Space Preserve, development of a ponds management plan at Driscoll
Ranch, and conservation grazing plans at Tunitas Creek and La Honda Creek Open Space
Preserves.
The Public Access Facilities Program (capital improvements that address structural upgrades,
trails, roads, staging areas, signage and fencing, etc.) proposed budget of$624,200; includes
implementation of the fourth year of the Watershed Protection Program at El Corte de Madera
Creek Open Space Preserve, development of plans and specs for trail and stream crossing
and
improvements at Thornewood, Fremont Older and Russian Ridge Open Space Preserves
FEMA funded repairs at Coal Creek and Skyline Ridge Open Space Preserves. This program
also includes staging area planning and design at El Corte de Madera, Fremont Older and El
Sereno Open Space Preserves. Approximately $280,000 proposed for this program is grant-
funded.
The Unanticipated Capital Improvements Program includes budget allocations for demolitions,
site cleanups, barriers, signs, fencing, and other improvements that may be necessary for
properties that are acquired during the next fiscal year, or for emergency projects. Based upon
recent unanticipated project expenses, the proposed budget is $25,000.
The guideline for improvements to Staff Facilities limits this budget to an amount, that when
averaged over 10 years, is less than 3.5% of the District's Operating Budget. The proposed
$235,000 budget for the Staff Facilities Program includes funding to remodel the Skyline Field
Office, upgrade a ranch house at Driscoll Ranch for use as an employee residence, and
architectural services at the District administrative office to plan for future use of the tenant
space by District staff and evaluate the cost of adding solar power.
R-07-43 Page 6
This amount is well below the guideline. Attachment B also shows the staff facility budget
averages over the last five years.
The 2007-2008 proposed budget also includes $50,000 for the Coastside Protection Program to
cover legal fees associated with the Local Agency Formation Commission (LAFco) lawsuit. The
remaining Coastside costs are now included in Public Affairs.
3. OPERATIONS DEPARTMENT
06-07 Mid Year 06-07 Projected 07-08 Proposed
Budget Expenses Budget
Salaries & Benefits 4,641,504 4,598,959 5,074,116
Services & Supplies 1,581,087 1,573,404 1,736,680
Fixed Assets—Operating 331,000 331,000 463,000
Expenses
Subtotal 6,553,590 6,503,362 7,273,796
Fixed Assets—Non-Operating 0 0 300,000
Expenses
Total Operations Budget 1 6,553,590 1 6,503,362 $7,573,796
The 2007-2008 proposed budget for the Operations Department is $7,573,796. The priorities for
the Operations 2007-2008 budget are to continue to provide responsible stewardship of all
District lands by furnishing the public safety, maintenance, construction, and expanded resource
management activities that are necessary to protect and enhance the natural resources and ensure
safe and appropriate use of District lands.
The Salaries and Benefits budget includes the increases in benefits noted above and the addition
of. two full time Equipment Mechanic Operator positions; one half-time Training Coordinator
position; and the conversion of the two half-time temporary administrative support positions to
half-time regular positions at the field offices.
Each field office currently has one half-time temporary administrative support position, which
has proven to greatly improve efficiency by allowing field staff to spend additional time in the
field and providing consistent administrative support to the Area Superintendents. Having
consistent administrative support has proven beneficial to communications between the field
offices and the administrative office, and has improved customer service. It is therefore
recommended that these half-time positions become permanent.
The two additional Equipment Mechanic Operators are necessary to ensure that the small
equipment is regularly serviced and repaired, so that it can be utilized by field staff, and to
operate equipment to complete construction and trail maintenance projects as well as capital
improvement projects. Additional skilled heavy equipment operators are also necessary for trail
building, road repairs, road grading, major slide removal, and culvert repair.
The half-time Training Coordinator position is necessary because the time needed for arranging,
providing, scheduling and recording training has grown considerably. The growth is due to both
an increase in the number of staff who must be trained and also additional regulatory
R-07-43 Page 7
requirements for training, which must be provided. It has proven to be very inefficient to have
field staff at both offices trying to schedule training in lieu of working in the field.
The 2007-2008 proposed Services and Supplies budget is $1,736,680. This portion of the
Operations budget increased by $155,600 for a variety of factors including: (1) the inclusion of
property taxes associated with coastal acquisitions in the operating budget for a cost of$30,000,
(2) a contract with the Santa Clara County Sheriff's Department for a cost of$104,000 to
provide improved patrol services and safety at marijuana cleanup sites, and (3) increased
dispatching costs of$20,000 for this year.
Included in the Services and Supplies budget is the 2007-2008 proposed Resource Management
Program budget of$482,100, an increase of$61,500, which is 14.62% from the 2006-2007 mid-
year adopted budget. The key budget increase was for implementation of the Slender False
Broome project at Thornewood Open Space Preserve, and restoration of Alpine pond.
The Fixed Assets budget is $763,000 an increase of 63.76% over the 2006-2007 mid-year
adopted budget. This is due primarily to the inclusion of$300,000 for the first year of costs for a
major upgrade to the District's radio system, as described to the Board at your January 24, 2007
meeting and further detailed in a Board Report at this meeting of March 141h
The Fixed Assets budget also includes the purchase of six patrol vehicles and two specialized
maintenance vehicles as well as a replacement for the aging Suburban. The vehicle purchases are
necessary to replace existing vehicles and to provide for new staff members. The proposed
budget is consistent with the five-year capital equipment schedule (see Attachment Q.
R-07-43 Page 8
4. PUBLIC AFFAIRS DEPARTMENT
06-07 Mid Year 06-07 Projected 07-08 Proposed
Budget Expenses Budget
Salaries& Benefits 655,375 650,953 737,987
Services & 411,977 336,397 375,700
Supplies
Fixed Assets 0 0 0
Special Projects 800 0 0 1
TOTAL 1,068,152 987,350 1,113,687
The 2007-2008 budget for the Public Affairs department is $1,113,687. The Salaries and
Benefits budget increase is primarily the result of District-wide annual salary and benefit
increases and the addition of a new Web Content Manager/Writer. The District's website is a
major communication tool with our constituents. The staff time required to ensure the District
web site is current, and expands as needed, has increased to over 60% of a full-time person. In
addition, there is an increased need to write and place press releases, features, and op-eds to
inform constituents of District programs and successes. This critical outreach work would be
greatly enhanced by a portion of this position's time.
The Services and Supplies budget of$375,700 is a decrease from 2006/07 due to reduced writing
consultant expenses and because the survey of District constituents will be completed with
2006/07 fiscal year budgeted funds. Other Service and Supplies operating funds are budgeted
for ongoing volunteer, docent, and interpretive programs; publications, postage and contract
services.
$50,000 of the coastside budget, which was previously located in Planning, will be absorbed by
the Public Affairs Department in 2007/08. The Planning Department will continue to include
legal fees for the appellate proceedings in the LAFco lawsuit.
5. ADMINISTRATION DEPARTMENT
06-07 Mid Year '06-07 Projected 07-08 Proposed
Budget Expenses Budget
Salaries& Benefits 1,392,707 1,379,655 1,590,133
Services & Supplies 433,697 424,253 431,430
Fixed Assets—Operating 0 0 25,000
Expenses
TOTAL 1,826,404 1,803,908 1 2,046,563
The Salaries and Benefits category includes Board appointees'salaries of$376,833 (not
including an annual increase or incentive pay), $736,736 for the Administration Department
staff, and $25,000 for Director's fees. Also included in this fiscal year's budget is approximately
$150,000 in a one-time conversion of accrued sick leave to the General Manager at the time of
his expected retirement.
As the department responsible for supporting most District administrative activities,the Services
and Supplies budget includes funding for such basic items as: administrative office equipment
R-07-43 Page 9
leases, utilities and janitorial/outside maintenance services. The Services and Supplies budget
also includes the expenses for the auditor, payroll services, labor relations, and district-wide
information systems support. Since this is not an election year, no budget has been set for
election expenses.
Of special note for this fiscal year is the addition of a fixed asset, which is the recarpeting of the
Administrative Office.
Prepared by:
Sally Rice, Assistant General Manager
Matt Freeman, Planning Manager
John Maciel, Operations Manager
Rudy Jurgensen, Public Affairs Manager
Michael Williams, Real Property Manager
L. Craig Britton, General Manager
Gordon Baillie, Management Analyst
Bunny Congdon, Sr. Accounting Specialist
Contact person:
Sally Rice, Assistant General Manager
Attachments:
A. Proposed 2007-2008 Budget
B. Proposed Capital Improvement Program Budget for FY 2007-2008
C. Capital Equipment Schedule, Operations Program
R Page 10
-07-43
Fiscal Year 2007-2008 Budget Summary B Department—Attachment A
2006-2007 2006-2007 2007-2008
Ado ted Bud et Projected Expenses Proposed Budget
Real Property
Salaries and Benefits 499,806 565,247 526,98
Services and Supplies 123,300 53,890 104,035
Fixed Assets 0
Property Management 157,772 156,433 134,25
Land and Debt 38,726,230 26,483,029 37,693,08
Special Projects 0
otal All Expenses 39,507,10 272258,59 38,458,35
Administration
Salaries and Benefits 1,355,927 1,379,655 1,590,133
Services and Supplies 467,703 424,253 431,43
Fixed Assets 0 0 25,00
otal All Expenses 1,823,630 1,803,900 2,046,563
Operations
�
Salaries and Benefits 4,505,427 4,598,959 5,074,11
Services and Supplies 1,449,687 1,573,404 1,736,68
Fixed Assets 331,000 331,000 763,00
Total,All Expenses 6,286,11 6,503,3631 7,573,79
Planning
Salaries and Benefits 898,633 907,848 1,130,05
Services and Supplies 78,645 52,102 123,290
Fixed Assets
oastside Protection 189,300 209,00 50,00
Planning Projects 410,300 259,924 383,00
Public Facilities/FEMA 983,500 725,403 649,20
Staff Facilities 95,000 15,00 235,00
Total,All Expenses 2,655,37 2,169,2771 2,570,54
Public Affairs
Salaries and Benefits 631,598 650,953 737,98
Services and Supplies 425,692 336,397 375,70
Fixed Assets 0
Special Projects 80
Total,All Expenses
1,058,09 987,350 1,113,68
otals All Departments 51 30,32 38,722,49 51,762,94
Attachment B
Capital Improvements and Planning Projects Budget Analysis
Public Access Improvements FY !! 1 11 . !
FY 2002103 FY 2003104 FY 2004105 FY 2005106 FY 2006107 FY 2007108
Actual Actual Actual Actual Projected Pro osed
Public Facilities $ 380,283 $ 378,653 $ 517,442 $ 658,959 $ 725,403 $ 604,200
FEMA Projects $ 78 517 $ 372,755 $ 219 351 $ - $ - $ 45,000
Gross CIP $ 458,800 $ 751,408 $ 736,793 $ 658,959 $ 725,403 $ 649,200
Grant Income CIP only) $ 55 718 $ (138,4191 $ (43,266) $ (16,147) $ (126,065) $ (225,560)
FEMA Income $ - $ (120,626) $ (192,675) $ - $ - $ 54,852
Other Income" $ (26,000) $ 17,000 $ - $ - $ - $ -
Ad'usted CIP $ 377,082 $ 475,363 $ 500,852 $ 642,812 $ 599,339 $ 368,788
Gross 5 Year CIP Average: $ 666,273 $ 704,353
Public Facilities:Trails and roads,staging areas,seismic upgrade,etc. Adjust.5 Year CIP Average: $ 519,090 $ 517,431
FEMA Projects: Storm repair projects
Adjusted CIP=Gross CIP-(Grant Income+FEMA Income)
'Other Income:Funds held in escrow,insurance payments,settlements(reimbursement from Santa Clara County for Bay Tree Project)
Public • • and PlanningProjects1 ! 1 1 1 • 1
FY 2002103 FY 2003-04 FY 2004105 FY 2005106 FY 2006107 FY 2007108
Actual Actual Actual Actual Projected Proposed
Public Facilities CIP $ 380,283 $ 378,653 $ 517,442 $ 658,959 $ 725,403 $ 604,200
FEMA Projects CIP $ 78,517 $ 372,755 $ 219,351 $ - $ - $ 45,000
Planning Projects" Contract Services $ 1,125 $ 53,108 $ 194,439 $ 204,613 $ 259,924 $ 383,000
Gross Total $ 459,925 $ 804,516 $ 931,232 $ 863,572 $ 985,327 $ 1,032,200
Grant Income CIP and Planning) $ 55,718 $ 138,419 $ 77,119 $ 16,147 $ 126,065 $ 225,560
FEMA Income $ - $ 120,626 $ 192,675 $ - $ - $ 54,852
Other Income- $ 26,000) $ 47,000) $ - $ - $ - $ -
Ad'usted Total $ 378,207 1 $ 498,472 1 $ 661,438 $ 847,425 $ 859,263 $ 751,788
** Includes Master Plans,Regional Resource Inventory,Road and Trail Inventory and Assessment,and Grazing Plans since these result in on-the-ground CIP projects.
"'Other Income:Funds held in escrow,insurance payments,settlements(reimbursement from Santa Clara County for Bay Tree Project,and Quentin Hancock Foundation grant
for Sierra Azul Master Plan)
Gross 5 Year Average FY02/03-FY 06/07 $ 808,914
Gross 5 Year Average FY03/04-FY 07/08 $ 923,369 Guideline: $700,000/Year Averaged over a
Adjust.5 Year Average FY02/03-FY 06/07 $ 648,961 5 year Period
Adjust.5 Year Average FY03104-FY 07/08 $ 723,677
5 Year Average Percentage of Adjusted
Budget Spent FY 2002/03-2006/07 64%
page 1 printed 3/8/2007
Attachment B
Capital Improvements and Planning Projects Budget Analysis
Staff and Administrative Facilities
FY 1998199 FY 1999100 FY 2000101 FY 2001102 FY 2002103
Actual Actual Actual Actual Actual
FFacilities,Field $ 23,329 $ 32,930 $ - $ 63,578 $ 32,764
I Facilities,Admin $ - $ 30,000 $ 49384 $ 279J21 $ 12,182
Total $ 23,329 $ 62,930 $ 49,384 $ 343,299 $ 44,946
FY 2003104 FY 200"5 FY 2005106 FY 2006107 FY 2007108
Actual Actual Actual Projected Proposed
Facilities, Field $ 361,948 $ 635,972 $ - $ 15,000 $ 155,000
lFacilities,Admin $ - $ - $ - $ - $ 80000
Total $ 361,948 $ 635,972 $ - $ 15,000 $ 235,000
Guideline:3.5%of District's Annual Operating Budget Averaged
over a 10 Year Period
10-Year
FY 2007108 Proposed District Operating Budget $ I2,314,586 Average: $ 177,181
3.5%= $ 431,011 5-Year
Average: $ 249,584
page 2 printed 3/8/2007
Attachment C
OPERATIONS EQUIPMENT PLAN
2006 -2012
(with current year expenditure)
Total includes fixed assets and supplies
March 9,2007
EQUIPMENT Actual Expenses Actual Expenses Proposed Expenses Future Expenses
................................. .......
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
Vehicles:
a)Replacement
Patrol (two) $70,000 (two) $74,000 (five) $175,000 (two) $75,000 (two) $80,000 (three) $120,000 (three) $120,000
Maintenance (two) $75,000 (one) $45,000 (two) $80,000 (two) $80,000
Administration done) $32,000 �one� $35,000
....................................................................................................................................................................... ....................................................... ------------ - .................... .............................................................................................................
b)New
Patrol (two) $75,000 (one) $32,000 (one) $38,000 (one) $40,000
Maintenance (two) $100,000 (one) $50,000 (one) $60,000 (two) $80,000 (two) $80,000
Administration one $30,000
Machinery and water truck $170,000 new tractor $80,000 equipment $100,000 equipment $100,000 equipment $100,000 equipment $100,000
Heavy tractor $70,000
Equipment trail equipment $35,000 trail equipment $35,000 trail equipment $35,000 trail equipment $40,000 trail equipment $40,000 trail equipment $40,000 trail equipment $40,000
ATV FFO $10,000 ATV $10,000 ATV SFO $I0,000
Misc.Equipment
a)Radios mobile,portable $6,000 $9,000
b)Fire pumpers(slide-on) (two) $28,000 (two) $28,000 (one) $17,500 (one) $17,500 (two) `e0
c Radio system $10,000
TOTALS $309,000 $331,000 $464,000 $405,500 $427,500 $420,000 $455,000
Seven year total: $2,812,000
Seven year average: $401,714
Regional Open Space
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
R-07-39
Meeting 07-06
March 14, 2007
AGENDA ITEM 4
AGENDA ITEM
Proposed Purchase of the Smith Property as an Addition to Monte Bello Open Space Preserve(Santa
Clara County Assessor's Parcel Number 351-12-043) N
GENERAL MANAGER'S RECOMMENDATION,
1. Determine that the recommended actions are categorically exempt from the California
Environmental Quality Act(CEQA)as set out in this report.
2. Adopt the attached Resolution authorizing purchase of the Smith property.
3. Tentatively adopt the Preliminary Use and Management Plan contained in this Report, including
naming portions of the Smith property as an addition to Monte Bello Open Space Preserve.
4. Indicate your intention to dedicate the Smith property as public open space at this time.
DESCRIPTION(see attached map)
The unimproved 8.72-acre Smith property is located adjacent to Skyline Boulevard (State Highway 35),
and is completely surrounded by Monte Bello and Skyline Ridge Open Space Preserves. Highly visible
from the ridge along Monte Bello Road,the property is one of several remaining private in-holdings
along the scenic road corridor south of Page Mill Road. The southernmost Skyline Ridge Open Space
Preserve tree farm area is found immediately across Skyline Boulevard. Canyon Trail, descending to
Stevens Creek along the San Andreas Fault Rift below, is approximately one-half mile to the east.
Besides being a valuable scenic preservation opportunity, the purchase of the property will provide for
protection of important watershed land and wildlife habitat.
From the high point at approximately 2,040 feet in elevation,the property slopes steeply downwards 250
feet toward the upper reaches of Stevens Creek to the northeast. As typifies the northeast-facing slope of
the Preserve,the plant communities consist of dense mixed evergreen forest, with small chaparral and
grassland openings.
The Smith property is a rectangular-shaped parcel located in the City of Palo Alto. A very small
triangular shaped portion of the property is located in San Mateo County. An interesting point of history
to note is that William Smith's late wife,Patricia Morell Smith,was the daughter of George Morell,the
founding publisher of the Palo Alto Times and a Stanford Trustee. In 1978,the District purchased
Morell's 694-acre Black Mountain Ranch from Stanford, a key piece of Monte Bello Open Space
Preserve that includes the Backpack Camp. Mr. Morell had donated the property to Stanford for
preservation in its natural state(see Report R-78-7). In 1998,the Smith family, wanting to acknowledge
the family history at the Backpack Camp site, funded the construction of one of the group campsites and
the installation of a sign commemorating Morell's activities(see Report R-98-68).
�
^
' R-07-39 Page
USE AND MANAGEMENT
Planning Considerations
The property is located within tile incorporated area of tile City of Palo Alto and is zoned OS (Open
Space), requiring |O'acrc minimum lot size huycd upon a slope density formula. 'file property in
comprised of one legal nonconforming parcel and has a potential density of one residential site.
Residential development of the property would be feasible due to the amount of frontage along Skyline
Boulevard and the gently sloping building site near the road.
The property is subject 1man Agricultural Preserve Contract in Palo A||u under the provisionyo[ihe
Land Conservation Act of |965 (Williamson Acn. Pursuant|o Government Code Section 5|2g|, tile
District has notified the State Department of Conservation of the proposed purchase of land within ail
agricultural preserve.
Preliminary Use and Management PUmm for the Smith Property
The Preliminary Use and Management Plan will take effect ut the close of escrow and remain effective
until the plan is amended or a Comprehensive Use and Management Plan or Master Plan is prepared.
The property will be maintained in a natural condition and no changes to land use are anticipated. \[
changes to land use are proposed in the [uturc, tho plan would be subject to hu/1hcrcnvinonmcnio| review
and public input.
Public Access: Closed to public use ui this time.
Pxion|: Routinely patrol the property.
Signs: Install Preserve boundary signs where appropriate.
y4omc Name the 8]2-uunc property usail addition to Monte Bello Open Space Preserve.
Dedication: Indicate your intention to dedicate the property aa public open space. �
Site Safety Inspection: Preliminary site safety inspection has been conducted and there are noknown �
uufe|r hazards oil the site. �
�
C0QA COMPLIANCE
�
�
Project Description
The project consiotao[purchuoing|hc8,72-uurcSmi(hpoopertyumunuJdi|ionk` UhcMonUcBcUn ()ncn
Space Preserve and the concurrent adoption of a Preliminary Use and Management Plan. Ultimately, the
property will bu included iothe Comprehensive or Use and Management Plan or Master Plan for Monte
Bello Open Space Preserve. The land will bu permanently preserved msopen space and maintained in
natural condition.
C0QA Determination
� 'file District concludes that this project vviUnothuvcuxigni6cuo| cMeu( onihccnvironmooL It is
categorically exempt from CEQA (California Environmental Quality Act) under Sections 15316. 15317.
15325, anJ 15061 o[the CE()A Guidelines asfollows:
� Brc|knn |j3|6 exempts the acquisition of land in order io create ourkmifdhcsheisinunutuuJcondkion
i '
and dumanugonnen/pkmproposes inkcoode area inunuh/na| condition. The use and management plan
� specifies that the land will not be developed and will remain in mno1una| condition.
��
Page
� Section 153 17 exempts tile acceptance of fee interests in order to maintain the open space character of all
area. The District will acquire fee interest and maintain the open space character n[the area. No new
development ix proposed ua part o[{hixproject.
Section 15325 exempts transfers ofownership of interests in land in order to preserve open space. This
acquisition will transfer fee ownership to the District and ensure it will be preserved as public open space
by incorporating it into the Monte Bello Open Space Preserve. �
This purchase qualifies under three sections. The actions proposed in the Preliminary Use and
| Management Plan are also exempt under section |5U6l, os there iano possibility the actions may have u
�
significant effect on the environment.
14'RMS & CONDITIONS
The 8.72-acre Smith property is being purchased at a(50 percent) bargain sale price of$375,000, which
iak` hc paid in cash a{ tile close u[cscvow. The property has u fail-market value of$75O,O0O. confirmed
by an independent appraisal of the property. 'File property constitutes asingle building site in the City of
Palo Alto. Staff has conducted due diligence investigations and inspections of the property. Staff has �
contacted the City of Palo Alto to rcwiovv property records and files, and is satisfied that no underground �
� storage tanks, contamination or hazardous conditions exist on the property. �
BUDGET CONSIDERATIONS
2806-2007 Budget for New Land Purchases: �
New Land* $19,755,120
J,4��_th is year 19.323,474
Smith property 375,000
New [.and Purchase Budget Remaining $56,646
*Rc,
flects MiucYeur//uugc/Adjustment
Controller M. Foster was consulted oil this proposed purchase and has indicated that, considering cash �
flow and account balances, funds are available [or this property purchase. �
PUBLIC NOTIFICATION
Property owners of land located aJiuccni to or surrounding tile mu6icc| property have been mailed written
notices o[this proposed purchase.
Prepared by:
Sandra Sommer, Senior Kca| Property Planner `
K4ichuc| C. Williams, Real Property Manager
Contact Person:
� Michue| C. Williams, Real Property Manager
�
Map Prepared by:
Erica Simmons, P|anniugTcchnicinn
RESOLUTION 07-
RESOLUTION OFTHE BOARD OF DIRECTORS OF
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
AUTHORIZING ACCEPTANCE OF PURCHASE AGREEMENT,
AUTHORIZING GENERAL MANAGER OR OFFICER TO EXECUTE
CERTIFICATE OF ACCEPTANCE OF GRANT TO DISTRICT, AND
AUTHORIZING GENERAL MANAGER TO EXECUTE ANY AND
ALL, OTHER DOCUMENTS NECESSARY OR APPROPRIATE TO
CLOSING OF THE TRANSACTION (MONTE BELLO OPEN SPACE
PRESERVES— LANDS OF SMITH)
The Board of Directors ofMidpeninAlla Regional Open Space District does resolve as follows:
Section One. The Board ol'Directors ofMidpeninsula Regional Open Space District does hereby accept
the offer contained in that certain Purchase Agreement between WILLIAM I I. SMITH, as Trustee under
the William H. Smith Trust Agreement dated December 22, 1978 and MidpeninSUla Regional Open
Space District, a copy ol'which is attached hereto and by reference made a part hereof, and authorizes the
President or appropriate officers to execute the Agreement on behalf of the District to acquire the real
property described therein ("tile Smith Property").
Section Two. The General Manager or the President of the Board of Directors or other appropriate
officer is authorized to execute a Certificate of Acceptance on behall'of the District.
,Section Three. The General Manager of the District or the General Manager's designee shall cause to be
given appropriate notice of acceptance to the seller and to extend escrow if necessary. The General
Manager and General Counsel are further authorized to approve any technical revisions to the attached
Agreement and other transactional documents which do not involve any material change to any term of
the Agreement or other transactional documents, which are necessary or appropriate to the closing or
implementation of this transaction.
Section Four. The General Manager of the District is authorized to expend up to $2,000 to cover the cost
of title insurance, escrow fees, and other miscellaneous costs related to this transaction.
Section Five. The purpose of this Section is to enable the District to reimburse its general fund for the
cost ot'certain land acquisitions. The District wishes to finance certain of these real property acquisitions
and expects to use tax-exempt debt, such as bonds, but a tax-exempt financing is not cost justified for the
District unless the principal amount of the financing is large enough to justify the related financing costs.
Consequently, it is the District's practice to buy property with its general funds and, when a tax-exempt
financing is cost justified based on the aggregate value of acquisitions, to issue tax-exempt obligations to
reimburse itself for previous expenditures of general funds. These general funds are needed for operating
and other working capital needs of the District and are not intended to be used to finance property
acquisitions on a long-term basis.
U.S. Income 'Fax Regulation Section I.150-2 requires an issuer of tax-exempt debt to declare its intent to
use a portion of tax-exempt debt proceeds for reimbursement of expenditures prior to the payment of the
expenditures. Accordingly, the Board of Directors hereby declares its intent to issue tax-exempt
obligations in the maximum principal amount of$375,000 and to use a portion of the proceeds of the
obligations for reimbursement of District expenditures for acquisition of the Smith Property that are paid
before the date of issuance of the obligations.
l r��
L
ti�►
mith - ..-
rty-
y Acres
� 1
r �•
11 N ■ ■
Purchase Agreement Page 1
PURCHASE AGREEMENT- BARGAIN SALE
This Agreement is made and entered into by and between WILLIAM H. SMITH, as Trustee under the
William H. Smith Trust Agreement dated December 27, 1978 hereinafter called "Seller" and the
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT a Public District formed pursuant to Article 3
of Chapter 3 of Division 5 of the California Public Resources Code, hereinafter called "District."
RECITALS
WHEREAS, Seller is the owner of certain real property which has open space and
recreational value, located within an unincorporated area of the Counties of Santa Clara and San Mateo,
and being more particularly described within the body of this Agreement; and
WHEREAS, District was formed by voter initiative to solicit and receive conveyances of
real property by purchase, exchange, gift, or bargain purchase for public park, recreation, scenic and open
space purposes; and
WHEREAS, District desires to purchase said property for open space preservation and as
part of the ecological, recreational, and aesthetic resources of the midpeninsula area; and
WHEREAS, Seller wishes to sell and convey the entirety of said property to District, and
District wishes to purchase said property upon the terms and conditions set forth herein.
WHEREAS, Seller wishes to sell and convey said property to District, at a price below fair
market value, and District wishes to purchase said property upon the terms and conditions set forth herein.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises
and covenants herein contained, the parties hereto agree as follows:
1. Purchase and Sale. Seller agrees to sell to District and District agrees to purchase from
Seller, Seller's real property located within an the City of Palo Alto, County of Santa Clara and the
unincorporated area of the County of San Mateo, State of California, containing approximately eight and
seventy-two hundredths (8.72)acres, more or less, and commonly referred to as Santa Clara County
Assessor's Parcel Number 351-12-043 and a portion of which is located in San Mateo County. Said
property is further described in the Legal Description attached to Preliminary Report Number 57170065
from North American Title Company, a copy of said Preliminary Report attached hereto as Exhibit "A",
and incorporated herein by this reference. Said property is to be conveyed together with any easements,
rights of way, or rights of use which may be appurtenant or attributable to the aforesaid lands, and any and
all improvements attached or affixed thereto. All ofsaid real property and appurtenances shall hereinafter
be called the "Subject Property" or the "Property"
2. Purchase Price. The total purchase price ("Purchase Price") for the Property shall be
Three Hundred Seventy-five Thousand and No/100 Dollars($375,000.00), which shall be paid in cash at
the "Closing" as defined in Section 3 hereof
3. Escrow. Promptly upon execution of this Agreement, in accordance with Section 12
herein, an escrow shall be opened at North American Title Company, 497 N. Santa Cruz Avenue, Los
Gatos, CA 95030, (408) 399-4100 (Escrow number 57170065)or other title company acceptable to
District and Seller(hereinafter "Escrow Holder") through which the purchase and sale of the Property shall
Purchase Agreement Page 2
be consummated. A fully executed copy of this Agreement shall be deposited with Escrow Holder to serve
as escrow instructions to Escrow Holder; provided that the parties shall execute such additional
supplementary or custorary escrow instructions as Escrow Holder may reasonably require. This
Agreement may be amended or supplemented by explicit additional escrow instructions signed by the
parties, but the printed portion of such escrow instructions shall not supersede any inconsistent provisions
contained herein. Escrow Holder is hereby appointed and instructed to deliver, pursuant to the terms of
this Agreement, the documents and monies to be deposited into the escrow as herein provided, with the
following terms and conditions to apply to said escrow:
A. The time provided for in the escrow for the close thereof shall be on or before
March 30, 2007; provided, however,that the parties may, by written agreement, extend the time for
Closing. The term "Closing" as used herein shall be deemed to be the date when Escrow Holder causes the
Grant Deed (as defined below)to be recorded in the Office of the County Recorder of Santa Clara and San
Mateo County.
13. Seller and District shall, during the escrow period, execute any and all documents
and perform any and all acts reasonably necessary or appropriate to consummate the purchase and sale
Pursuant to the terms of this Agreement.
C. Seller shall deposit into the escrow on or before the Closing an executed and
recordable Grant Deed, covering the Property as described in said Exhibit "A".
D. Seller shall deposit into the escrow on or before the Closing an executed and
recordable Quitclaim Deed, covering the portion of the Property located in San Mateo County.
E. District shall deposit into the escrow, on or before the Closing:
(i) The required Certificate of Acceptance for the Grant Deed, duly executed
by District and to be dated as of the Closing;
(ii) District's check payable to Escrow Holder in the amount of Three
Hundred Seventy-four Thousand ($374,000.00) which is the balance of the Purchase Price of Three
Hundred Seventy-five Thousand and No/100 Dollars as specified in Section 2. The balance of$1,000.00
is paid into escrow in accordance with Section 12 of this Agreement.
F. Seller shall pay the escrow fees, the CLTA Standard Policy of Title Insurance, if
required by District, and all recording costs and fees. All other costs or expenses not otherwise provided
for in this Agreement shall be apportioned or allocated between District and Seller in the manner
customary in Santa Clara County. All current property taxes on the Property shall be pro-rated through
escrow between District and Seller as of the Closing based upon the latest available tax information using
the customary escrow procedures.
G. Seller shall cause North American Title Company, or other title company
acceptable to District and Seller, to be prepared and committed to deliver to District, a CLTA Standard
Policy of Title Insurance, dated as of the Closing, insuring District in the amount of$750,000.00 for the
Property showing title to the Property vested in fee simple in District, subject only to: (i)current real
property taxes, (ii) title exceptions numbered 3 and 4 as listed in said preliminary report 5170065 Update
No. 1 dated February 21, 2007 (Exhibit A), and (iii)such additional title exceptions as may be approved in
writing by District prior to the Closing as determined by District in its sole and absolute discretion.
Purchase Agreement Page 3
H. Escrow Holder shall when all required funds and instruments have been
deposited into the escrow by the appropriate parties and when all other conditions to Closing have been
fulfilled cause the Grant Deed and attendant Certificate of Acceptance to be recorded in the Office of the
County Recorder of Santa Clara County. Upon the Closing, Escrow Holder shall cause to be delivered to
District the original of the policy of title insurance required herein, and to Seller Escrow Holder's check for
the full purchase price of the Subject Property(less Seller's portion of the expenses described in Section
3.E, and to District or Seller, as the case may be, all other documents or instruments which are to be
delivered to them. In the event the escrow terminates as provided herein, Escrow Holder shall return all
monies, documents or other things of value deposited in the escrow to the party depositing the same.
4. Rights and Liabilities of the Parties in the Event of Termination. In the event this
Agreement is terminated and escrow is canceled for any reason, all parties shall be excused from any
further obligations hereunder, except as otherwise provided herein. Upon any such termination of escrow,
all parties hereto shall be jointly and severally liable to Escrow Holder for payment of its title and escrow
cancellation charges(subject to rights of subrogation against any party whose fault may have caused such
termination of escrow), and each party expressly reserves any other rights and remedies which it may have
against any other party by reason of a wrongful termination or failure to close escrow.
5. Leases or Occupant of Premises. Seller warrants that there exist no oral or written leases
or rental agreements affecting all or any portion of the Subject Property. Seller further warrants and agrees
to hold District free and harmless and to reimburse District for any and all costs, liability, loss, damage or
expense, including costs for legal services, occasioned by reason of any such lease or rental agreement of
the Property being acquired by District, including, but not limited to, claims for relocation benefits and/or
payments pursuant to California Government Code Section 7260 et seq. Seller understands and agrees that
the provisions of this paragraph shall survive the close of escrow and recordation of any Grant Deed(s).
6. Seller's Representations and Warranties. For the purpose of consummating the sale and
purchase of the Property in accordance herewith, Seller makes the following representations and warranties
to District which shall survive close of escrow, each of which is material and is beingrelied u b
upon Y
District.
A. Authority. Seller has the full right, power and authority to enter into this
Agreement and to perform the transactions contemplated hereunder.
B. Valid and Binding Agreements. This Agreement and all other documents
delivered by Seller to District now or at the Closing have been or will be duly authorized and executed and
delivered by Seller and are legal, valid and binding obligations of Seller sufficient to convey to District the
Subject Property described therein, and are enforceable in accordance with their respective terms and do
not violate any provisions of any agreement to which Seller is a party or by which Seller may be bound or
any articles, bylaws or corporate resolutions of Seller.
C. Good Title. Seller has and at the Closing date shall have good, marketable and
indefeasible fee simple title to the Subject Property and the interests therein to be conveyed to District
hereunder, free and clear of all liens and encumbrances of any type whatsoever and free and clear of any
recorded or unrecorded option rights or purchase rights or any other right,title or interest held by any third
a except for the exceptions permitted under the express terns hereof, and Seller shall forever
party P P P P >
indemnifyand defend District from and against an claims made b an third a which are based upon
g Y Y Y party
P P
any inaccuracy in the foregoing representations.
7. Integrity of Property. Except as otherwise provided herein or by express written
permission granted by District, Seller shall not, between the time of Seller's execution hereof and the close
Purchase Agreement Page
of escrow, cause mallow any physical changes on the Property. Such changes shall include but not be
limited to grading, excavating o,other eudbmovingactivities, cutting or removing trees,shrubs, brush or
other vegetation,and damaging or demolition of improvements or structures on the Property.
8. Hazardous Waste.
A. Definitions. The term "Hazardous Wuutc," om used herein, means any substance,
material or other thing regulated by or pursuant to any federal, state or local environmental law by reason �
�
of its potential for hann to human health or the environment because of its flarnmability,toxicity, �
reactivity, corrosiveness or carcinogenicity. The teon "Hazardous Waste" a\aoinu|udem without limitation,
polychlorinated bipheoy|m, benzene, asbestos, petroleum, petroleum by-products, gas, gas liquids and lead,
The term "Env iron mental Law" as used bcn:in includes, without limitation, the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 e/seq.)and
the Resource Conservation and Recovery Act(42 U.S.C. Section 6901 «txoq.)
B. Representations and Warranties. For the purpose mf consummating the sale and
purchase of the Property, Seller makes the following representations and warranties to District, which shall
survive close o[escrow, each of which is material and ia being relied upon by District:
(i> To Seller, m knowledge the Property does not contain and has not
previously contained any Hazardous Waste or underground storage tanks, and no Hazardous Waste has
been or is being used, manufactured, handled,generated, stored,treated, discharged, present, buried or
disposed of on, under or about the Property, or transported to or from the Property, nor has Seller
undertaken, permitted, authorized or suffered any of the foregoing;
(ii) Seller has not received any notice and Seller has no actual knowledge that
any private person or governmental authority or administrative agency or any employee mr agent thereof
has determined, alleged or commenced or threatened to commence any litigation, or other proceedings,to
determine that there ieupresence, release, threat ofrelease, placement on, under orabout the Property, or
the use, nnumubsctun:` handling, generation, storage,treatment, discharge, burial ordisposal on, under or
about the Property, orthe transportation to or frorn the Property,of any Hazardous Waste, nor has Seller
received any communication frono any such person or governmental agency or authority concerning any
such matters.
C. |ndeIUli1y. Seller shall indemnifv` detend and hold harmless District brom and �
against and all claims` liabilities, losses,damages, and costs incurred or suffered by [)iuthut' including
without limitation,attorney, engineering and other professional or expert fees,tothe extent arising hnm
any breach of the warranties or representations contained herein
�
9. Waiver of Relocation Benefits and Statutory Compensation. Seller and District
understand and agree that Seller may he entitled to receive certain relocation benefits and the fair market
value of the Property described in Exhibit "A", as provided for by the Federal Uniform Relocation
Assistance and Real Property Acquisition Act of 1970(Public Law 91-646), the Uniform Relocation Act
Amendments of 1987 (Public Law 100-17, Title IV of the Surface Transportation and Uniform Relocation �
Assistance Act ofl987 (\Ul Statutes, 246-256)(42D.8.C. '4601 otxu@.), and the California Relocation �
Aauiutunoc Act, Government Code Section 7260 et seq. Seller hereby waives any and all czin\in8 and/or
future c|uimmorrights Seller may have toany relocation assistance, benefits, procedures, ur policies ux
provided in said |uwm or regulations adopted there under and ko any other compensation, except as
provided in this Agreement. Seller has been advised uutm the extent and availability o[such benefits,
�
' 9uroboae Agreement Page
procedures, notice periods, and assistance, and freely and knowingly waives such claims, rights and notice
periods except um set forth inthis Agreement, including the fair market value of said Property, appraisals
,
etc., as provided for by said Federal Law and any corresponding California Government Code Sections.
10. Charitable Contribution. District and Seller acknowledge and agree that Seller may seek u
tax benefit for the charitable contribution of the difference between the purchase price being paid by the
District and the Pnopeuy=e fair market value being donated to the District as part of this transaction.
District expresses no opinion as to whether Seller will receive any deduction for federal or state income tax �
�
purposes uu result of this txonmuctiun. Seller acknowledges and agrees that Seller is relying solely upon tile �
advice of its own attorneys, accountants and other professional advisors with respect to all such matters,
� and to the tax consequences of this Agreement ingeneral. Without limitation of the foregoing, ifsuch
� contribution im not deductible for federal and state incomne tax purposes, in whole orin part, such non-
deductibility ornon-trco1moentwi)| not relieve Seller of any of its obligations under this Agreement or
otherwise affect this Agreement in any way or require the payment of any additional or substitute
consideration by District for the purchase ofthe Subject Property or entitle Seller to any remedies against �
� District as u result thereof. District agrees to provide Su||c,
with an executed IRS Form 8283 as evidence of the Bargain 6u|e price accepted by Seller thereunder.
\ l. Miscellaneous Provisions.
A. Access for I nvesti gat ions. From,the date Seller delivers un executed copy ofthis
Puvobuxe Agreement to District and until the Closing, District and District's agents, lender, contractors,
engineers,consultants, �nnp|m��om, ouboontrux�omund od��rr�pr�a�nto1iv�m(�b�"DiabictPmdi�s``) mmoy,
� �
� upon the giving of reasonable advance written notice to Seller, enter upon the Property for the purpose of �
� inspecting,testing and evaluating the same; provided, however, that District may not perform any work on
the Property without Seller's prior written consent, which shall not be unreasonably withheld or delayed
and further provided that District shall give Seller a1 least 24 hours' prior notice o[each proposed entry hy
District. District shall indemnify, protect, defend and hold Seller free and borrn!ema from and against any �
and all claims, actions, causes of action, suits, proceedings, costs, expenses(ihc|uding, without limitation,
vcuyonub|e attorneys' fees and costs), liabilities, dumu&ea, and liens caused by the activities ofDistrict
Parties while upon the Property prior to the Closing; provided, however, the foregoing indemnity shall not
cover or include any o|oinno, dumogeeor liens resulting from District's discovery of any Hazardous Waste �
�
or other pre-existing adverse conditions pursuant to its inspections, testing or evaluation. District's �
inspections shall be at District's sole expense. District shall repair any dannuAe to the Property that may be
caused by the District Parties while on the Property performing its inspections.
B. Choice of Law. The internal laws ofthe State ofCalifornia, regardless ofany
choice of law principles, shall govern the validity of this Agreement, the construction of its terms and the
interpretation of the rights and duties nf the parties.
� .
C. lf either party hereto incurs any expense, including reasonable
� attorneys' fees, in connection with any action, proceeding orarbitration instituted by ocuaon of any default
or alleged default of the other party hereunder,tile party prevailing in such action or proceeding shall be
� entitled to recover fionn the other party reasonable expenses and attorneys' fees in the amount determined �
hy the Court, or arbitrator. in the case o[urhi|ru|ion, whether ur not such action, proceeding orarbitration
goes to final judgment. In the event of a settlement or final judgment in which neither party is awarded all �
of the relief prayed for, the prevailing party uydetermined by the Court, or arbitrator in the case of
arbitration,shall be entitled to recover from the other party reasonable expenses and attorneys' fees.
D. Amendment and Waiver. The parties hereto may by mutual written agreement
amend this Agreement in any respect. Any party hereto may in writing: (i) extend the time for the
' Purchase Agreement Page 6
� performance of any of the obligations of the other party; (iU waive any inaccuracies in representations and
warranties made by the other party contained in this Agreement min any documents delivered pursuant
hereto; (iii) waive compliance by tile other party with any of the covenants contained in this Agreement m
the performance of any obligations of the other party; or(iv)waive the fulfillment of any'condition that is
precedent to the performance by such party of any of its obligations under this Agreement. The General �
Manager is authorized to agree to an extension of tile tirne for tile performance of any obligations on the
�
part of District or Seller pursuant to this Agreement, and to take any actions and execute any documents
necessary or appropriate 1oclosing escrow and cumoplc1ing this conveyance, including execution ofany
documents which may allow Seller to accomplish a tax deferred exchange of property as permitted by law;
provided, however that the District shall not take title to any third party property other than the Subject
� Property. Any agreement on the part of any party for any such amendment, extension or waiver must be in
writing.
E. Rif4hts Cumulative. Each and all of the various rights, powers and remedies uftile �
parties shall be considered to beoumu|a1ivewith and in addition Un any other rights, powers and ruonudice �
which the parties may have at law or in equity in the event of the breach of any of the terms of this �
� Agreement The exercise orpartial exercise of any right` power orremedy ahu|| neither constitute the �
�
exclusive election thereof nor the waiver of any other right, power or remedy available to such party. �
� F. Notices. Whenever any party hereto desires orim required to give any notice,
demand, or request with respect to this Agreement(or any Exhibit hereto), each such communication shall
be in writing and shall be deemed to have been validly served, given or delivered at the tirne stated below �
�
if deposited in the United States mail, registered or certified and return receipt requested, with proper
postage prepaid, or if delivered by Federal Express oc other private messenger, courier or other delivery �
service or sent by facsimile transmission by telex,ie\eoopy, telegraph or cable or other similar electronic
medium, addressed uy indicated umfollows: �
� 8cUcc William B. Smith
P.O. Box 230
Carmel, CA93g23
Telephone: (831) 625-3972
Fax (031) 625-3972
District: Midpcninsu|u Regional Open Space District
330 Dim0u| Circle
Los /\|¢m" CA 94022 �
Attn: L. Craig Britton, General Manager
� Telephone: (650) 691-1200
FAX: (050)641-0485
lf sent 6vtelegraph, facsimile copy orcable, oconfinned copy ofsuch telegraphic, facsimile or cabled �
notice shall promptly be sent by mail (in the manner provided above) to the addressee. Service of any such �
communication made only by rnail shall be deemed complete on the date of actual delivery as indicated by �
� the addressee's registry orcertification receipt oru1the expiration of tile third (3vd) business day after the
date of mailing, whichever io earlier intime. Either party hereto may from time to time, hy notice in
writing served upon the other party as aforesaid,designate adifferent mailing address or different person �
to which such notices or demands are thereafter tu be addressed or delivered. Nothing contained in this
Agreement shall excuse either party from giving oral notice to the other when prompt notification io
appropriate, but any oral notice given shall not satisfy the requirement ofwritten notice as provided in this
Section. �
�
. �
Purchase Agreement Page 7
G. Severability. If any of the provisions of this Agreement are held to be void or
unenforceable by or as a result of a determination of any court of competent jurisdiction,the decision of
which is binding upon the parties, the parties agree that such determination shall not result in the nullity or
unenforceability of the remaining portions of this Agreement. The parties further agree to replace such
void or unenforceable provisions which will achieve, to the extent possible,the economic, business and
other purposes of the void or unenforceable provisions.
H. Counterparts. This Agreement may be executed in separate counterparts, each of
which shall be deemed as an original, and when executed, separately or together, shall constitute a single
original instrument, effective in the same manner as if the parties had executed one and the same
instrument.
I. Waiver. No waiver of any term, provision or condition of this Agreement,
whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or be construed as, a
further or continuing waiver of any such term, provision or condition or as a waiver of any other term,
provision or condition of this Agreement.
J. Entire Agreement. This Agreement is intended by the parties to be the final
expression of their agreement; it embodies the entire agreement and understanding between the parties
hereto; it constitutes a complete and exclusive statement of the terms and conditions thereof, and it
supersedes any and all prior correspondence, conversations, negotiations, agreements or understandings
relating to the same subject matter.
K. Time of Essence. Time is of the essence of each provision of this Agreement in
which time is an element.
L. Survival of Covenants. All covenants of District or Seller which are expressly
intended hereunder to be performed in whole or in part after the Closing, and all representations and
warranties by either party to the other, shall survive the Closing and be binding upon and inure to the
benefit of the respective parties hereto and their respective heirs,successors and permitted assigns.
M. Assignment. Except as expressly permitted herein, neither party to this
Agreement shall assign its rights or obligations under this Agreement to any third party without the prior
written approval of the other party.
N. Further Documents and Acts. Each of the parties hereto agrees to execute and
deliver such further documents and perform such other acts as may be reasonably necessary or appropriate
to consummate and carry into effect the transactions described and contemplated under this Agreement.
O. Binding on Successors and Assigns. This Agreement and all of its terms,
conditions and covenants are intended to be fully effective and binding, to the extent permitted by law, on
the successors and permitted assigns of the parties hereto,
P. Broker's Commission. District shall not be responsible for any real estate
commission or other related costs or fees in this transaction. Seller agrees to and does hereby indemnify
and hold District harmless from and against any and all costs, liabilities, losses, damages, claims,causes of
action or proceedings which may result from any broker, agent or finder, licensed or otherwise, claiming
through, under or by reason of the conduct of Seller in connection with this transaction.
Purchase Agreement Page 8
Q. Captions. Captions are provided herein for convenience only and they form no
part of this Agreement and are not to serve as a basis for interpretation or construction of this Agreement,
nor as evidence of the intention of the parties hereto.
R. Pronoun References. In this Agreement, if it be appropriate, the use of the
singular shall include the plural, and the plural shall include the singular, and the use of any gender shall
include all other genders as appropriate.
S. Arbitration of Disputes. If a dispute arises out of or relates to this Agreement or
the performance or breach thereof, the parties agree first to participate in non-binding mediation in order to
resolve their dispute. If the parties are unable to resolve their dispute through mediation,or if there is any
remaining unresolved controversy or claim subsequent to mediation, any remaining unresolved controversy
or claim shall be settled by binding arbitration. The parties shall jointly select one arbitrator who shall be a
retired or former judge of the Superior Court of California. The arbitration shall be conducted in
accordance with the rules set forth in California Code of Civil Procedure Sections 1280 et. seq. including
the right of discovery. Hearings shall be held in Santa Clara County, California. If the parties are unable
to agree upon an arbitrator,the arbitration shall be conducted by Judicial Arbitration and Mediation
Services, Inc ("JAMS"). in accordance with the rules thereof. If arbitration is required to resolve a dispute,
it shall in all cases be final and binding.
NOTICE: BY INITIALING IN THE SPACE BELOW,YOU ARE AGREEING TO HAVE ANY
DISPUTE ARISING FROM THE MATTERS INCLUDED IN THE"ARBITRATION OF
DISPUTES" PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY
CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO
HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE
SPACE BELOW, YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO APPEAL UNLESS
THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE"ARBITRATION OF DISPUTES"
PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS
PROVISION,YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF
THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS
ARBITRATION PROVISION IS VOLUNTARY.
WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT
DISPUTES ARISING FROM THE MATTER INCLUDED IN THE"ARBITRATION OF
DISPUTES" PROVISION TO NEUTRAL ARBITRATION.
SELLER INITIAL J I�X DISTRICT INITIAL
�-
12. Acceptance. Provided that this Agreement is executed by Seller and delivered to District
on or before February 23, 2007, District shall have until midnight March 14, 2007 to accept and execute
this Agreement, and during said period this instrument shall constitute an irrevocable offer by Seller to sell
and convey the Property to District for the consideration and under the terms and conditions herein set
forth. Said offer shall remain irrevocable during this period without the necessity of execution and
acceptance of this Purchase Agreement by District. As consideration for said irrevocable offer, District has
paid into escrow and Seller acknowledges receipt of the sum of One Thousand Dollars and No/I 00
($1,000.00), which shall be applied to the Purchase Price as set forth in Section 2 hereof.
Provided that this Agreement is accepted by District, this transaction shall close as soon as practicable in
accordance with the terms and conditions set forth herein.
Purchase Agreement Page 9
IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be executed
by their duly authorized officers to be effective as of the date of final execution by District in accordance
with the terms hereof.
DISTRICT: SELLER:
MIDPENINSULA REGIONAL OPEN
SPACE DISTRICT
APPROVED AND ACCEPTED:
u Z�"t
President, Board of Directors William H. Smith,Trustee under the William H.
Smith Trust dated December 27, 1978
�&-
Date Date
ATTEST:
District Clerk
Date:
ACCEPTED FOR RECOMMENDATION
C- U.
Michael C. Williams, Real Property Manager
APPROVED AS TO FORM:
Susan M. Schectman, General Counsel
RE ED OR A AL:
L. Craig Bri , eneral Manager
Regional Open Space
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
R-07-38
Meeting 07-06
March 14, 2007
AGENDA ITEM 5
AGENDAITEM
Authorization to Purchase Nine Vehicles at a Total Cost Not to Exceed $350,000.
GENERAL MANAGER'S RECOMMENDAM—N
Authorize the General Manager to execute a purchase
ase contract with the State Department
of General Services and contract dealerships for 9 vehicles at a total cost not to exceed
$350,000.
DISCUSSION
The District's five-year capital equipment schedule provides for five replacement patrol vehicles,
one additional patrol vehicle, two additional maintenance vehicles, plus one replacement
administrative vehicle in fiscal year 2007-2008. Purchase orders for vehicles acquired through
the State of California Department of General Services (DGS) must be placed prior to the
manufacturer's cut-off dates in early 2007. The District's ability to purchase vehicles through
DGS provides a significant cost savings and greatly reduces the amount of staff time that would
otherwise be required if the District conducted a separate bid process.
The five replacement patrol vehicles will retire patrol vehicles that have reached, or are
approaching the 70,000-mile mark. These retired patrol vehicles will be reassigned to
maintenance crews. These reassigned patrol vehicles will replace maintenance vehicles that have
an excess of 100,000 miles, which will be sold at public auction. The one additional patrol
vehicle is for the ranger positions filled in fiscal year 2006/07. The administrative vehicle will
replace a 17-year-old Suburban, which has experienced reliability problems, and is no longer
cost-effective to keep in the fleet.
Staff is requesting authorization to purchase the vehicles before the 2007-2008 fiscal year budget
is approved because cut-off dates require orders to be placed prior to final approval of the budget.
The Administration and Budget Committee supports the purchase of nine vehicles, which was
included in the initial presentation of FY 2007-08 budget at their February 27, 2007 meeting.
Prepared by:
David Topley, Support Services Supervisor
Contact person:
Same as above
Claims No. 07-05
Meeting 07-06
Date 3/14/07
Midpeninsula Regional Open Space District
# Amount Name Description
6500 $950.00 Aaron's Septic Tank Service Pumping Services-Rancho San Antonio
6501 $175.63 ADT Security Services Alarm Service-SFO
6502 $44.56 Allen's Press Clipping Bureau Clipping Service
6503 $141.05 Allied Waste Services Garbage Service
6504 $372,46 ANG Newspapers Advertisement-Coast Meeting Announcement
6505 $145.16 AT&T Telephone Service-AO, FFO&SFO Alarm Service-
FFO
6506 $341.33 Beck's Shoes Inc. Uniform Shoes
6507 $718.37 Brim Tractor Company, Inc. Tractor Accessories
6508 $9,000.00 California Conservation Corps Fish Habitat Stream Surveys
6509 $125.00 California Native Plant Society Trail Signs
6510 $27.43 California Water Service Company Water Service-Windy Hill
6511 $283.49 Cascade Fire Equipment Company Field Supplies
6512 $759.92 Citation Press Printing Services-Photo Press Proof
6513 $928.84 City Of Mountain View Vehicle Repairs
6514 $892.85 CMK Automotive Inc. Vehicle Maintenance&Repairs
6515 $119.00 Coastal Sierra, Inc. Internet Service-SFO
6516 $15.00 Compasspoint Registration Fee-Excel Workshop
6517 $111.95 Consolidated Electrical Distributors Propane Tank Materials-Ranger Residence
6518 $632.55 Costco Office&Field Supplies
6519 $1,261.79 Del Woods Consulting Services-Land Purchase Projects
6520 $41.62 Downing, Brendan Reimbursement-Training Expenses
6521 $580.00 Ergo Vera Ergonomic Evaluations
6522 $5,100,00 First American Real Estate Solutions Metroscan Services
6523 $12.54 Foster Brothers Lock&Key Services
6524 $382.08 Gardenland Power Equipment Field Supplies
6525 $278.46 Grainger, Inc. Field Supplies
6526 $190.22 Green Waste Recovery, Inc. Garbage&Recycle Service-SFO
6527 $2,305.48 Home Depot Field Supplies&Equipment
6528 $17,00 ID Plus, Inc. Name Tags
6529 $536.11 Indoff Incorporated Ergonomic Chair
6530 $224.40 Jobs Available, Inc. Recruitment Ad-GIS Coordinator&OSP 11
6531 $2,398,20 LA Consulting Consulting Services-Land Management Cost Evaluation
&Efficiency Study
6532 $337.79 Lausten,Tom Reimbursement-Uniform Expense
6533 $624.00 Liebert Cassidy Whitmore Legal Services
6534 $148.34 Life Assist First Aid Supplies
6535 $1,134.90 Los Altos Garbage Company Dumpster Service&Debris Box-FFO Garbage Service
AO
6536 $171.54 Madco Field Supplies
6537 $139.96 Malone, Brian Reimbursement-Uniform Expense
6538 $32.48 Neal, Holden Reimbursement-Uniform Expense
6539 $1,840.25 Noble Tractor, Inc. Tractor Accessories
6540 $1,552.50 Normal Data Database Consulting
6541 $374,000.00 ## North American Title Company Land Acquisition-Smith Property
6542 $992.34 Orchard Supply Hardware Field Equipment&Supplies
6543 $20,507.65 Patsons Media Group Printing Services-Brochures,Trail Guides&Spring
Newsletter
6544 $40.01 Peninsula Digital Imaging Copy Services
6545 $713,64 Petrotek Gas Pump Service&Repairs-SFO
6546 $325.00 *1 Petty Cash Replenish Petty Cash
Page 1 of 2
Claims No. 07-05
Meeting 07-06
Date 3/14/07
Midpeninsula Regional Open Space District
# Amount Name Description
6547 $2,355A5 Post Haste Direct Mail Services Mail House Services
6548 $100.60 Premiere Global Services Fax Broadcast Services
6549 $65,00 R.H.F. Inc. Radar System Recertification
6550 $150.00 Ranee Ruble Freelance Writer For Media Projects
6551 $46.25 Rayne Of San Jose Water Conditioning Service
6552 $876.83 Reed&Graham, Inc. Terracell-Incerpi Residence Driveway
6553 $135.80 Reed,Steve Reimbursement-Uniform Expense
6554 $18.33 Robert's Hardware Field Supplies
6555 $1,710,68 Roy's Repair Service Vehicle Repairs&Service
6556 $206.48 Safety Kleen Solvent Tank Supplies-SFO
6557 $510.00 San Jose State University Foundation Supervisor Training
6558 $383,63 San Jose Water Company Water Service
6559 $243.00 *2 Santa Clara County Planning Office Demolition Permit-Stevens Canyon Caretaker Residence
6560 $5,505.02 Shute, Mihaly&Weinberger LLP Legal Services-Coastal Annexation Litigation
6561 $75.85 Sierra Office Supply Office Supplies
6562 $180.05 Staywell First Aid Training Materials
6563 $268.84 Stevens Creek Quarry Base Rock-Dusky Footed Woodrat Trail
6564 $230.04 Summit Uniforms Uniform Expenses
6565 $1,082.89 Tadco Supply Janitorial Supplies
6566 $158.05 The Workingman's Emporium Uniform Expenses
6567 $324.00 Toastmasters International Membership Dues
6568 $1,346.30 Trucker Huss Legal Services
6569 $37.28 United Parcel Service Parcel Shipping
6570 $902.82 United Rentals Highway Technologies Trail Signs&U Channel Stakes
6571 $190.46 United Site Services, Inc. Sanitation Services-FFO
Total $448,776.54
*1 Urgent Check Issued 3/6/07
*2 Urgent Check Issued 3/2/07
## In The Event Agenda Item Is
Not Approved,This Claim Will
Not Be Processed
Page 2 of 2
Regional Open Space
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
March 15, 2007
DRAFTRESPONSE
PREPARED BY STAFF
FOR BOARD CONSIDERATIOly
r Cooley Landing
Dear Mayor Woods:
Thank you for your January 28, 2007 letter outlining the City of East Palo Alto's
admirable vision for Cooley Landing. Please be assured that the Mid peninsula Regional
Open Space District is an enthusiastic, willing partner in realizing an appropriate, lo-
intensity project for both our lands. I have directed Craig Britton, our General Manager,
to prioritize initiating contact with Alvin James, the City Manager, to set up a meeting
between City and District staff to discuss the next steps and the process as a whole.
In the spirit of collaboration,
Kenneth C. Nitz, President
Board of Directors
KCN:sgs:ak
cc: MROSD Board of Directors
Craig Britton, General Manager
o� �As r pq`O
City of East Palo Alto
"PORAtE FEB02 07
January 28, 2007
Kenneth C. Nitz
President, Board of Directors
Midpeninsula Regional Open Space District
330 Distel Circle
Los Altos, CA 94022
Re: City of East Palo Alto Vision for Cooley Landing
Dear Mr. Nitz:
The City of East Palo Alto has a vision for future use of Cooley Landing as an educational and
open space resource for East Palo Alto residents and others. As you are aware, both your agency
and the City own portions of this important resource. Therefore, the City's ability to realize its
vision depends on establishing a strong partnership with the Midpeninsula Regional Open Space
District. City and District staffs have been working cooperatively since 2004 to define a
conceptual vision for the Cooley Landing site that could serve as a basis of an implementation
strategy that will result in making it a reality. In order to facilitate further cooperative efforts
between the City and the District to achieve the City's vision, I would like to describe the City's
concept for Cooley Landing to you as it has evolved to this point in time.
In December, 2004, the City's consultants (Cypress Environmental and Callander & Associates)
prepared conceptual drawings depicting potential uses at Cooley Landing. The City received
grant funds from the Packard Foundation specifically for the preparation of the drawings.
The list of potential uses serving as a partial basis for the concept drawings was initially
generated by East Palo Alto residents and elected officials during a Special City Council study
session regarding Cooley Landing. The effort to define the list was initially framed by City
Council guidance which expressed a desire that future use of the site be limited to low intensity
recreational or educational uses. It was refined with input from key stakeholders, including
District staff, for the purpose of achieving consensus regarding stakeholders' support concerning
potential uses and/or activities at the site.
The concept drawings were prepared with the following assumptions, which are also described in
the memo attached to the concept drawings:
• Some type of nature/interpretive center would be the primary use. The intent is to
reuse/renovate the existing boatworks building to the extent possible.
• Other environmental recreational uses, such as fishing and a kayak launch, would also
occur on the site as secondary uses.
• The site would serve the general public of East Palo Alto.
2415 University Ave East Palo Alto California 94303 Tel: 650/ 853-3100 Fax: 650/ 853-3115
• Additional parking would be needed, but may be reduced in relation to City parking
standards in order to retain open space.
• The historical significance of the site as the birthplace of San Mateo County's first city,
Ravenswood, is an important element in site design. Retaining the dredge as a historical
resource is strongly desired.
• Some amount of open space at the southwestern end of the site should be preserved as
habitat for potential endangered species.
In addition, it was made clear that the concept drawings were contingent on further site analysis,
environmental review, and community support.
Three concept drawings were prepared, representing a range of intensities of use at the site:
• Concept A: Primary uses limited to the former boatworks building and adjoining
pavement area of the site, with low intensity secondary uses (e.g., kayak launch, fishing,
picnicking) located adjacent but beyond the building/pavement area.
• Concept B: Primary uses limited to the former boatworks building, the dredge, the
adjoining pavement area and the open space area between the boatworks building and the
dredge. Some low intensity secondary uses are located beyond this area.
• Concept C: Uses are located throughout the site.
These concept drawings are attached for your review.
On May 25, 2005, the City Council held a special study session to get community input on the
concept drawings. Following the opportunity for community members to provide input, the City
Council indicated their collective agreement that Concept C was too intense, and that
Councilmembers were comfortable with a conceptual design that ranged from Concept A to
Concept B. It is important to note that the same Council that conducted the May special study
session is still in place.
The Council's intentions for future use of Cooley Landing are further reflected in the February
21, 2006 City Council resolution accepting the deed to the center portion of Cooley Landing
from the Peninsula Open Space Trust (POST). The resolution and deed are attached. The deed
includes the following language:
Limitation on Environmental Use: The use of the Property shall be limited to activities involving
environmental education and/or passive recreational activities, nature study, enjoyment of views,
natural habitat and environmental protection and related uses.No industrial or residential use of or
activity on the Property shall be permitted, except for a caretaker living on the premises. Limited
commercial activity directly related to the permitted use of the Property (e.g., small-scale visitor
snack service, educational bookstore, guided tours) shall be permitted. Any and all use of the
Property shall be consistent with the preservation of the Property's scenic and natural character.
No activity or use that degrades or is likely to degrade the scenic and natural character of the
Property shall be permitted.
Using a $200,000 grant received from the US Environmental Protection Agency, the City is now
engaged in conducting environmental and related studies at Cooley Landing that will further
inform the design and development plans for the site. These studies include environmental
sampling, biological and historical assessments of site resources, and geotechnical and structural
2
assessments. We discussed these studies wit
h th our staff seve
ral times over the past summer and
we signed a permit to enter District property to conduct non-invasive studies.
g p P P Y
During our discussions with your staff about the studies at Cooley Landing, we were advised of
the December, 2005 consent decree entered into by the District related to restoration of natural
resources damages in the Guadalupe River watershed that potentially affects activities at the
Cooley Landing site. The City has had preliminary conversations with the US Fish and Wildlife
Service regarding the consent decree and the City's proposal for Cooley Landing. We would like
the opportunity to further discuss the City's vision for Cooley Landing in the context of the
consent decree with the District and the Fish and Wildlife Service.
As evidenced b the Councils actions and the it y City's s commitment of over $225,000 in grants
and additional technical support for Cooley Landing so far, the City is strongly committed to the
creation of an amenity at Cooley Landing that will not only serve the open space, historical
education, and recreational needs of our residents and the broader public, but that will preserve
the ecological importance of this environmentally sensitive location as well.
In closing, may I again emphasize my belief that a collaboration with the District that involves
use of District property at Cooley Landing and the dredge is critical to achieving the vision
outlined above. The City Council, staff, and I collectively look forward to working
cooperatively with you and continuing our collaborative effort with District staff toward
realization of an appropriate vision for Cooley Landing that will result in another outstanding
environmental and recreational resource for the public that we both serve. I have asked Alvin
James, our City Manager to contact Craig Britton, your General Manager regarding the
possibility of scheduling a meeting with your staff and representatives of the US Fish and
Wildlife Service and perhaps a presentation of our Cooley Landing Proposal to the District
Board. Thank you for your consideration.
Sincerely,
David E. Woods
Mayor
cc: Nonette G. Hanko, Ward 5 Representative, Midpeninsula Regional Open Space
District
Craig Britton, General Manager, Midpeninsula Regional Open Space District
Janet Whitlock, US Fish & Wildlife Service
Attachments
1. Conceptual drawings
2. Council resolution and deed accepting Cooley Landing property from POST
3