HomeMy Public PortalAbout20201209 - Agenda Packet - Board of Directors (BOD) - 20-29
SPECIAL AND REGULAR MEETING
BOARD OF DIRECTORS OF THE
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
SPECIAL MEETING OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT FINANCING
AUTHORITY
Wednesday, December 9, 2020
Special Meeting starts at 5:00 PM*
Regular Meeting starts at 7:00 PM*
A G E N D A
Consistent with Governor Gavin Newsom's Executive Order N-29-20, the Governor has allowed local
legislative bodies to hold public meetings via teleconference and to make public meetings accessible
telephonically or otherwise electronically to all members of the public seeking to observe and to address the
local legislative body or state body to avoid public gatherings, and has suspended all contrary provisions of the
Brown Act.
THIS MEETING WILL BE VIA TELECONFERENCE ONLY
1. The meeting can be viewed in real-time at: https://openspace.zoom.us/j/81978403665 or listen to the meeting
by dialing (669) 900-6833 or (346) 248-7799 (Webinar ID 81978403665).
2. Members of the public may provide written comments by submitting a public comment form
at: https://www.openspace.org/public-comment
• Comments on matters not on the agenda must be submitted prior to the time the board president calls
for public comments.
• Comments on agenda items must be submitted prior to the time public comment on the agenda item is
closed.
• All comments shall be subject to the same rules as would otherwise govern speaker comments at the
board of directors meeting.
• Electronic comments on agenda may only be submitted via the public comment form. Comments via text
or social media (Facebook, Twitter, etc.) will not be accepted.
Any comments received after the deadline, will be provided to the Board after the meeting.
5:00 SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT
ROLL CALL
SPECIAL ORDERS OF THE DAY
Meeting 20-29
Rev. 1/3/20
• Presentation from San Mateo County Re: Unincorporated Area San Mateo County Active
Transportation Plan
1. Comprehensive Annual Financial Report Training
Staff Contact: Andrew Taylor, Finance Manager
General Manager’s Recommendation: Receive educational training from staff on the District’s
Comprehensive Annual Financial Report. No Board action required.
2. Annual Bond Disclosure Training for the Board of Directors, Members of the Disclosure
Working Group, and Contributors (R-20-141)
Staff Contact: Andrew Taylor, Finance Manager
General Manager’s Recommendation: Receive the annual training on Bond Disclosure obligations,
responsibilities, and potential liabilities. No Board action required.
ADJOURNMENT
7:00 REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT
ORAL COMMUNICATIONS
This portion of the agenda is for members of the public to comment on items not on the agenda;
however, the Brown Act (Open Meeting Law) does not allow action by the Board of Directors on items
not on the agenda. Individuals are limited to one comment during this section.
ADOPTION OF AGENDA
SPECIAL ORDER OF THE DAY
• Proclamation for California State Senator Jim Beall
CONSENT CALENDAR
All items on the Consent Calendar may be approved without discussion by one motion. Board members,
the General Manager, and members of the public may request that an item be removed from the Consent
Calendar during consideration of the Consent Calendar.
1. Approve November 18, 2020 Minutes
2. Claims Report
3. Increase of an Existing Half Time Position to a Full Time Position in the Legal Department
(R-20-153)
Staff Contact: Hilary Stevenson, General Counsel
General Manager’s Recommendation: Adopt a resolution amending the Budget and Action Plan for
Fiscal Year 2020-21 to increase the existing half-time position of Risk Management Analyst to a
full-time position in the Legal Department
4. Designation of the Oljon Trail in El Corte de Madera Open Space Preserve as part of the
regional Bay Area Ridge Trail (R-20-142)
Staff Contact: Arianna Nuri, Planner I, Planning
Rev. 1/3/20
General Manager’s Recommendation: Designate the existing Oljon Trail in El Corte de Madera
Creek Open Space Preserve as a new segment of the regional Bay Area Ridge Trail in accordance
with the intentions of the California State Coastal Conservancy-Bay Area Ridge Trail Partner
Grants
5. Application for Grant Funding from the Wildlife Conservation Board (R-20-144)
Staff Contact: Jordan McDaniel, Senior Grants and Procurement Technician, Administrative
Services
General Manager’s Recommendation: Adopt a resolution authorizing the General Manager to
submit an application for grant funding from the Wildlife Conservation Board and to negotiate a
grant funding agreement for $5,000,000 to support the planning and design of the Highway 17
Wildlife and Regional Trails Crossing Project.
6. Second Reading and Adoption of the Board Compensation Ordinance 20-02 (R-20-147)
Staff Contact: Hilary Stevenson, General Counsel
General Manager’s Recommendation:
1. Waive reading and adopt an Ordinance 20-02 increasing Board compensation from $100.00 to
$105.00 per meeting pursuant to Public Resources Code section 5536.
2. Amend Board Policy 6.06 to reflect the increase in compensation resulting from the Board
compensation ordinance.
BOARD BUSINESS
Public comment on agenda items at the time each item is considered by the Board of Directors. Written
public comments will be provided to the Board prior to the meeting and posted on the District’s website
at www.openspace.org. The names of all commenters will be read into the record.
7. Fiscal Year 2020 Annual Financial Report (R-20-145)
Staff Contact: Andrew Taylor, Finance Manager
General Manager’s Recommendation:
1. Review and accept the Fiscal Year 2019-20 (FY20) Annual Financial Report.
2. Adopt a resolution approving the transfer of a total of $3 million from the General Fund
Unassigned Fund balance to the Committed Fund for Future Acquisitions and Capital Projects.
3. Approve an updated Board Policy 3.08, Statement of Investment, to reflect a prior Board
proviso that was omitted from the prior update.
8. 50th Anniversary Celebration Preparations (R-20-148)
Staff Contact: Mike Kahn, Public Affairs Specialist II
General Manager’s Recommendation:
1. Review and provide input on the proposed scope of the 50th Anniversary Celebration plans.
2. Consider formation of an ad-hoc committee to provide continued involvement and timely
decisions as planning progresses.
INFORMATIONAL MEMORANDUM
• Cloverdale Coastal Ranch Land Conservation Opportunity: Annual Update
• Progress Report on Science Advisory Panel Work
• Update on the Electric Bicycle Pilot Implementation at Rancho San Antonio and Ravenswood Preserves
Rev. 1/3/20
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 information; request staff to report to the Board on a matter at a future meeting; or
direct staff to place a matter on a future agenda. Items in this category are for discussion and direction to
staff only. No final policy action will be taken by the Board.
Committee Reports
Staff Reports
Director Reports
ADJOURNMENT
Time Certain – To Be Heard No Earlier Than 8:30 P.M.
8:30 SPECIAL MEETING OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
FINANCING AUTHORITY
ROLL CALL
1. Acceptance of the Annual Financial Report of the Midpeninsula Regional Open Space District
Financing Authority for Fiscal Year Ending June 30, 2020 (R-20-146)
Staff Contact: Andrew Taylor, Finance Manager
Controller’s Recommendation: Accept the Annual Financial Report.
ADJOURNMENT
*Times are estimated and items may appear earlier or later than listed. Agenda is subject to change of order.
In compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting,
please contact the District Clerk at (650) 691-1200. Notification 48 hours prior to the meeting will enable the
District to make reasonable arrangements to ensure accessibility to this meeting.
Written materials relating to an item on this Agenda that are considered to be a public record and are distributed
to Board members less than 72 hours prior to the meeting, will be available for public inspection at the District’s
Administrative Office located at 330 Distel Circle, Los Altos, California 94022.
CERTIFICATION OF POSTING OF AGENDA
I, Jennifer Woodworth, District Clerk for the Midpeninsula Regional Open Space District (MROSD), declare that
the foregoing agenda for the special and regular meetings of the MROSD Board of Directors was posted and
available for review on December 4, 2020, at the Administrative Offices of MROSD, 330 Distel Circle, Los Altos
California, 94022. The agenda and any additional written materials are also available on the District’s web site at
http://www.openspace.org.
Jennifer Woodworth, MMC
District Clerk
R-20-141
Meeting 20-29
December 9, 2010
SPECIAL MEETING AGENDA ITEM 3
AGENDA ITEM
Annual Bond Disclosure Training for the Board of Directors, Members of the Disclosure
Working Group, and Contributors
GENERAL MANAGER’S RECOMMENDATION
Receive the annual training on Bond Disclosure obligations, responsibilities, and potential
liabilities. No Board action required.
SUMMARY
Board Policy 3.06 “Initial and Continuing Disclosures for Bond Issuances” requires annual
training on Bond Disclosure obligations, responsibilities, and potential liabilities of
Midpeninsula Regional Open Space District (District) staff and the Board of Directors (Board).
This item meets the Bond Disclosure training requirement under Board Policy 3.06.
DISCUSSION
The Board adopted Policy 3.06 “Initial and Continuing Disclosures Relating to Bond Issuances”
on April 1, 2015 and subsequently updated the language on March 22, 2017. This Board Policy
states that:
“Whenever the District makes statements or releases information relating to its finances
to the public that are reasonably expected to reach investors and the trading markets
(including, without limitation, all Listed Event Notices, statements in the audited
Financial Statements, and other financial reports and statements of the District), the
District is obligated to ensure that such statements and information are complete, true,
and accurate in all material respects.”
To ensure that the Board and key staff are fully aware and periodically reminded of the bond
disclosure requirements, including the obligation noted above, Article I, section 1.01 (C)
Training states:
The Disclosure Coordinator shall arrange for annual disclosure training conducted by
the District’s disclosure counsel with the assistance of the General Counsel, for the
Board of Directors members, the Disclosure Working Group, and Contributors. Such
training sessions shall include education on these Disclosure Procedures, the District’s
disclosure obligations under applicable federal and state securities laws, and the
disclosure responsibilities and potential liabilities of members of District staff and
members of the Board of Directors.
R-20-141 Page 2
On December 9, 2020, the District’s Disclosure Counsel, Jacquelynne Jennings from Schiff
Hardin, will provide the annual training to the Board, the Disclosure Working Group (General
Manager, Chief Financial Officer, Controller, and General Counsel), the Disclosure Coordinator
(Finance Manager), and Contributors.
FISCAL IMPACT
None.
BOARD COMMITTEE REVIEW
This agenda item was not previously reviewed by a Board Committee.
PUBLIC NOTICE
Notice was provided pursuant to the Brown Act. No additional notice is necessary.
CEQA COMPLIANCE
No compliance is required as this action is not a project under CEQA.
NEXT STEPS
The Bond Disclosure training is held annually, with the next training planned for the fall of 2021.
Attachments:
1. Board Policy 3.06 – Initial and Continuing Disclosures Relating to Bond Issuances
Responsible Manager:
Stefan Jaskulak, Chief Financial Officer
Prepared by:
Andrew Taylor, Finance Manager
Midpeninsula Regional Open Space District
Board Policy Manual
Initial and Continuing
Disclosures Relating to Bond
Issuances
Policy 3.06
Chapter 3 – Fiscal Management
Effective Date: 04/01/2015 Revised Date: 03/22/2017
Prior Versions: 04/01/2015
Attachments:
A – List of Disclosure Documents, to be Amended as Necessary
B – Listed Events
C –Template of Information to be included in the Staff Report Transmitting Official Statement by
General Manager to Board of Directors
Board Policy 3.06 Page 1 of 7
Purpose
Whenever the District makes statements or releases information relating to its finances to the public
that are reasonably expected to reach investors and the trading markets (including, without limitation,
all Listed Event Notices, statements in the audited Financial Statements, and other financial reports and
statements of the District), the District is obligated to ensure that such statements and information are
complete, true, and accurate in all material respects.
The disclosure policies and procedures contained herein (the “Disclosure Procedures”) of the
Midpeninsula Regional Open Space District (the “District”) are intended to ensure that the District’s
disclosure documents (the “Disclosure Documents”), as listed on Attachment A to these Disclosure
Procedures, are complete, true, and accurate in all material respects, and in compliance with applicable
federal and state securities laws.
Policy
Article I: Key Participants and Responsibilities
Section 1.01. Disclosure Working Group.
(A) Composition. By adoption of these Disclosure Procedures, the District hereby
establishes a disclosure working group (the “Disclosure Working Group”). The members of the
Disclosure Working Group shall be the following:
i. General Manager;
ii. Chief Financial Officer
iii. Controller; and
iv. General Counsel.
(B) Responsibilities. The Disclosure Working Group shall consult with the Financing Group
(as defined in Section 1.03) and other interested parties as necessary or helpful. The Disclosure Working
Group shall meet as often as necessary to fulfill its obligations, but not less than once per calendar year.
Members of the Disclosure Working Group may participate in meetings by telephone.
Attachment 1
Board Policy 3.06 Page 2 of 7
The Disclosure Working Group is responsible for:
i. Reviewing and approving all preliminary and final official statements, private
placement memoranda and remarketing memoranda relating to the District’s
securities, together with any supplements, for which a continuing disclosure
undertaking is required (each, an “Official Statement”) as further described in
Article II, before such documents are released to the public;
ii. Reviewing and approving the District’s Financial Statements (as defined and further
described in Section 3.02 below);
iii. Reviewing and approving any other Disclosure Documents before such documents
are released;
iv. Reviewing annually the District’s status and compliance with continuing disclosure
undertakings including filings of Disclosure Documents and compliance with these
Disclosure Procedures and the annual financial report as described in Article III
below;
v. Reviewing any other items referred to the Disclosure Working Group; and
vi. Evaluating the effectiveness of these Disclosure Procedures and approving changes
to these Disclosure Procedures as further described in Section 5.04 of this Policy.
(C) Determination of Disclosure Document Status. Whether or not a particular document or
other communication is a Disclosure Document shall be determined by the Disclosure Working Group.
At its initial meeting, the Disclosure Working Group shall establish a list of the District’s recurring
Disclosure Documents, which list shall be added to Attachment A to these Disclosure Procedures to the
extent such documents are not already contained therein. The Disclosure Working Group shall update
Attachment A to these Disclosure Procedures when appropriate.
(D) Review and Approval. Following receipt of a Disclosure Document from the disclosure
coordinator (the “Disclosure Coordinator”), the Disclosure Working Group shall review the Disclosure
Document for accuracy and compliance with federal and state securities laws, direct questions tof the
Disclosure Coordinator, and approve a substantially final form of the Disclosure Document, which
approval may be evidenced by an email transmitted to the Disclosure Coordinator by the General
Manager or his/her designee and a copy of which email shall be printed and maintained in the Deal File
described in Section 5.01, or by such other written evidence.
The Disclosure Coordinator shall consult with the District’s disclosure counsel to the extent the
Disclosure Coordinator considers appropriate to perform his or her responsibilities.
Section 1.02. Disclosure Coordinator.
(A) Appointment. The Finance Manager is appointed as the Disclosure Coordinator. If the
position of Finance Manager is vacant, the Chief Financial Officer, in consultation with the other
members of the Disclosure Working Group, shall select and appoint the Disclosure Coordinator.
(B) Responsibilities. The Disclosure Coordinator shall be responsible for:
Attachment 1
Board Policy 3.06 Page 3 of 7
i. Serving as a “point person” for personnel to communicate issues or information that
should be or may need to be included in any Disclosure Document, identifying
District personnel that will assist in preparing and reviewing the Disclosure
Documents (the “Contributors”);
ii. Reviewing annually all continuing disclosure undertakings, preparing a checklist of
updated information to be provided;
iii. Recommending changes to these Disclosure Procedures to the Disclosure Working
Group as deemed necessary or appropriate;
iv. Communicating with third parties, including coordination with outside consultants
assisting the District in preparing and disseminating Disclosure Documents to make
sure that assigned tasks are completed timely, and that the filings are accurate and
made timely;
v. Soliciting “material” information (as defined for purposes of federal securities law)
from District departments to prepare Disclosure Documents;
vi. Monitoring compliance by the District with these Disclosure Procedures, including
timely dissemination of the Annual Report and Listed Event filings, and maintaining
records documenting the District’s compliance with these Disclosure Procedures;
vii. Determining when Disclosure Documents are final and ready for review by the
Disclosure Working Group to the extent required by these Disclosure Procedures;
and
viii. Identifying District personnel that should receive disclosure training, and ensuring
compliance with training procedures described in Section 1.02(C).
The Disclosure Coordinator is authorized to file or cause to be filed the following documents
with the Municipal Securities Rulemaking Board (the “MSRB”), without prior review and approval of the
Disclosure Working Group, but only after prior review and approval from the Chief Financial Officer:
those Disclosure Documents that (i) the District is contractually obligated to file with the MSRB pursuant
to written undertakings as a result of the occurrence of a Listed Event (as defined in Attachment B), or
(ii) as a result of the failure to timely file the required annual financial report.
(C) Training. The Disclosure Coordinator shall arrange for annual disclosure training conducted
by the District’s disclosure counsel with the assistance of the General Counsel, for the Board of Directors
members, the Disclosure Working Group, and Contributors. Such training sessions shall include
education on these Disclosure Procedures, the District’s disclosure obligations under applicable federal
and state securities laws, and the disclosure responsibilities and potential liabilities of members of
District staff and members of the Board of Directors. Such training sessions may be conducted using a
recorded presentation.
Each member of the Board of Directors, and new members of the Finance Department shall be
required to participate in disclosure training as part of his or her new member orientation.
Section 1.03. Financing Group.
Attachment 1
Board Policy 3.06 Page 4 of 7
General. The General Manager or his/her designee shall identify a Financing Group (the
“Financing Group”) for each financing (the composition of which may differ for each financing), which
shall include, at a minimum, the following individuals:
i. Disclosure Working Group;
ii. Disclosure Coordinator;
iii. The District’s bond counsel and disclosure counsel;
iv. The District’s financial advisor (if any);
v. The District’s underwriter, placement agent, remarketing agent (as applicable);
vi. The District’s dissemination agent (if any);
vii. Such other such District staff as the General Manger or his/her designee determines
to be appropriate; and
viii. Such other consultants retained by the District as the General Manager or his/her
designee determines to be appropriate.
It is the District’s policy to establish continuing working relationships with professional advisors
with expertise in the area of public finance and federal securities laws applicable to the issuance of
securities by the District.
Article II: Review and Approval of Official Statements
Section 2.01. Responsibilities of Financing Group. The Financing Group shall prepare the Official
Statement
and confirm that the Official Statement: (a) has been reviewed and accurately states all
information relating to the District, (b) confirm that any information in the Official Statement other than
the information described in the previous clause (a) will be addressed by a closing certificate or opinion
by an appropriate person, (c) contains a description of any failures of the District during the last five yars
to comply with its continuing disclosure undertakings; and (d) is in substantially final form and is in a
form ready to be “substantially final” by the Board of Directors, as evidenced by a Certificate executed
and delivered by a member of the Financing Group pursuant to Rule 15c2-12, promulgated by the
Securities and Exchange Commission. The Financing Group shall have at least one all-hands meeting or
conference call to review the Official Statement.
Section 2.02. Responsibilities of General Counsel. The General Counsel (or a designee) shall review
the Official Statement and shall draft for the Official Statement descriptions of (i) any material current,
pending or threatened litigation, (ii) any material settlements or court orders and (iii) any other legal
issues that are material information for purposes of the Official Statement.
Section 2.03. Responsibilities of Controller and Chief Financial Officer. The Controller and Chief
Financial Officer shall review the Official Statement, identify any material difference in presentation of
financial information from the Financial Statements and ensure there are no misstatements or
Attachment 1
Board Policy 3.06 Page 5 of 7
omissions of material information in any sections that contain descriptions of information prepared by
the Controller and/or Chief Financial Officer or other Contributors or of relevance to the finances of the
District.
In addition, the Controller and/or Chief Financial Officer shall determine whether the District’s
then-available Financial Statements are appropriate to be included in the Official Statement and
whether to seek the consent of the District’s auditor to include the Financial Statements in the Official
Statement.
Section 2.04. Review by Disclosure Working Group. Following receipt of the Official Statement from
the Financing Group, the Disclosure Working Group shall evaluate the Official Statement for accuracy
and compliance with federal and state securities laws, and shall, have an opportunity to ask questions of
the Financing Group and of any Contributor or other person who reviewed or drafted any section of the
Official Statement. The Disclosure Working Group may direct or request revisions and/or may instruct
the Financing Group to solicit contributions from additional Contributors, as they deem necessary or
appropriate.
Section 2.05. Approval by Disclosure Working Group. Approval of the Official Statement by the
Disclosure Working Group shall be evidenced by delivery of the Official Statement to the General
Manager for docketing for a meeting of the Board of Directors as provided in Section 2.07.
Section 2.06. Submission of Official Statements to Board of Directors for Approval. As part of the
docketing process, the General Manager shall submit all Preliminary Official Statements to the Board of
Directors for approval using a staff report that includes the information in the template attached as
Attachment C to these Disclosure Procedures. The approval of an Official Statement by the Board of
Directors shall be docketed as a new business matter and shall not be approved as a consent item. The
Board of Directors shall undertake such review as deemed necessary, following consultation with the
Controller, to fulfill the responsibilities of the Board of Directors under applicable federal and state
securities laws. In this regard, the Controller shall consult with the District’s disclosure counsel to the
extent necessary.
Article III: Continuing Disclosure Filings
Section 3.01. Overview. Under the continuing disclosure undertakings the District has entered into in
connection with its debt offerings, the District is required each year to file Annual Reports with the
Electronic Municipal Market Access (“EMMA”) system maintained by the MSRB in accordance with such
undertakings. Such Annual Reports are required to include certain updated financial and operating
information, and the District’s audited financial statements.
The District is also required under its continuing disclosure undertakings to file notices of certain
events (as summarized in Attachment B to these Disclosure Prodcedures) with EMMA.
Section 3.02. Financial Statements. The Chief Financial Officer shall submit the District’s audited
financial statements (“Financial Statements”), as they are available, to the Disclosure Working Group.
The Disclosure Working Group shall review the audited Financial Statements according to these
Disclosure Procedures and, when reviewed and approved for disclosure, shall transmit the audited
Financial Statements to the Board of Directors.
Attachment 1
Board Policy 3.06 Page 6 of 7
If the District does not have audited Financial Statements available in time to file the Annual
Report, the Chief Financial Officer shall submit the District’s unaudited financial statements as provided
in each specific continuing disclosure undertaking.
Section 3.03. Annual Reports. The Disclosure Coordinator shall ensure that the preparation of the
District’s Annual Report shall commence in enough time so that they are filed no later than 210 days
following the end of the fiscal year of the District, or as otherwise required under each specific
continuing disclosure undertaking. Before any Annual Report is submitted to EMMA, the Disclosure
Coordinator shall review outstanding continuing disclosure undertakings, prepare a checklist of
information to be updated, supervise the preparation of the Annual Report, and confer with the
Disclosure Working Group as needed regarding the content and accuracy of any such report.
Section 3.04. Disclosure of Listed Events. Pursuant to Rule 15c2-12(b)(5)(i)(C), the District is obligated
to disclose to the MSRB notice of certain specified events with respect to the District’s securities (a
“Listed Event”). Each member of the Disclosure Working Group shall notify the other members of the
Disclosure Working Group if he or she becomes aware of the occurrence of any of the Listed Events
listed in the District’s continuing disclosure undertakings. The Disclosure Working Group may meet to
discuss the event and to determine, in consultation with disclosure counsel to the extent determined by
the Disclosure Coordinator, whether a filing is required or is otherwise desirable. If such a filing is
deemed necessary, the Disclosure Coordinator shall cause a notice of the Listed Event (a “Listed Event
Notice”) that complies with Rule 15c2-12 to be prepared, and the Disclosure Coordinator shall file or
cause to be filed the Listed Event Notice as required by Rule 15c2-12.
Article IV: Public Statements Regarding Financial Information
Section 4.01. Financial Information. Whenever the District makes statements or releases information
relating to its finances to the public that are reasonably expected to reach investors and the trading
markets (including, without limitation, all Listed Event Notices, statements in the audited Financial
Statements, and other financial reports and statements of the District), the District is obligated to
ensure that such statements and information are complete, true, and accurate in all material respects.
The Chief Financial Officer shall have primary responsibility for ensuring that such financial statements
and information are accurate and not misleading in any material respect.
Article V: Miscellaneous
Section 5.01. Documents to be Retained. The Disclosure Coordinator, working with the District Clerk
as needed, shall be responsible for retaining records demonstrating compliance with these Disclosure
Procedures. The Disclosure Coordinator shall retain an electronic or paper file (“Deal File”) for each
Annual Report and notice of Listed Events filed or caused to be filed by the District. Each Deal File shall
include final versions of Disclosure Documents, the transcript of proceedings prepared in connection
with the issuance of financial instruments. The Deal File shall be maintained in a central depository for a
period equal to the later of the date of maturity or defeasance of the securities referenced in the
Disclosure Document.
Section 5.02. Waivers. In addition to the General Manager’s authority to adopt an Administrative
Procedure to make this Board Policy more specific, any provision of this Board Policy or any related
administrative procedure may be waived at any time by the General Manager, with the written
confirmation to the members of the Disclosure Working Group. This authority to waive a provision of
this policy is triggered only if such waiver is necessary for timely and effective compliance with
disclosure laws. Any waivers made under this provision shall be reported to the Board of Directors, with
Attachment 1
Board Policy 3.06 Page 7 of 7
conforming revisions recommended for the Board’s consideration at the next update of this Board Policy
and no later than within three months of implementation of such waiver.
Attachment 1
Board Policy 3.06(a)
Board Policy 3.06
ATTACHMENT A
LIST OF DISCLOSURE DOCUMENTS, TO BE AMENDED AS NECESSARY
1. Preliminary and final official statements, private placement memoranda and remarketing
memoranda relating to the District’s securities, together with any supplements.
2. Financial Statements.
3. Filings made by the District with the Municipal Securities Rulemaking Board, whether made
pursuant to a continuing disclosure undertaking to which the District is a party or otherwise.
4. Press releases and other information distributed by or on behalf of the District for public
dissemination to the extent that such releases are reasonably expected, in the determination
of the Disclosure Working Group, to reach investors and the trading markets for municipal
securities.
5. Rating agency presentations.
6. Postings on the investor information section of the District’s website, if any.
7. Such portions of the District’s published adopted annual budget as the Disclosure Working
Group determines to be appropriate.
8. Any other communications that are reasonably expected, in the determination of the
Disclosure Working Group, to reach investors and the trading markets for municipal
securities.
Amendments:
[Date]
Attachment 1
Board Policy 3.06(b)
Board Policy 3.06
ATTACHMENT B
LISTED EVENTS
Occurrence of any of the following events require the District to make a filing on EMMA within ten
(10) business days of their occurrence:
1. principal and interest payment delinquencies
2. unscheduled draws on debt service reserves reflecting financial difficulty
3. unscheduled draws on credit enhancements reflecting financial difficulty
4. substitution of credit or liquidity providers, or their failure to perform
5. adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other events affecting
the tax-exempt status of the security
6. tender offers
7. defeasances
8. rating changes
9. bankruptcy, insolvency, receivership or similar event of the obligated person
The occurrence if any of the following events require the District to file a notice on EMMA within ten
(10 days after their occurrence, if they are determined to be material by the Disclosure Working Group:
1. non-payment related defaults
2. modifications to the rights of security holders
3. bond calls
4. release, substitution or sale of property securing repayments of the securities
5. the consummation of a merger, consolidation, or acquisition involving an obligated person or the
sale of all or substantially all of the assets of the obligated person, other than in the ordinary course
of business, the entry into a definitive agreement to undertake such an action or the termination of a
definitive agreement relating to any such actions, other than pursuant to its terms
6. appointment of a successor or additional trustee or the change of name of a trustee
Attachment 1
Board Policy 3.06(d)
Board Policy 3.06
ATTACHMENT C
Information to be Included in the Staff Report Transmitting
Official Statement by General Manager to Board of Directors
Transmittal staff report shall include, but is not limited to, the following information:
The attached Preliminary Official Statement has been reviewed and approved for transmittal to
the Board by the District’s Disclosure Working Group. The distribution of the Preliminary Official
Statement by the District is subject to federal securities laws, including the Securities Act of 1933 and the
Securities Exchange Act of 1934. These laws require the Preliminary Official Statement to include all facts
that would be material to an investor in the Obligations. Material information is information that there is
a substantial likelihood would have actual significance in the deliberations of the reasonable investor
when deciding whether to buy or sell the Obligations. If the Board of Directors concludes that the
Preliminary Official Statement includes all facts that would be material to an investor in the Obligations,
it must adopt a resolution that authorizes staff to execute a certificate to the effect that the Preliminary
Official Statement has been “deemed final.”
The Securities and Exchange Commission (the “SEC”), the agency with regulatory authority over
the District’s compliance with the federal securities laws, has issued guidance as to the duties of the
elected body with respect to its approval of the Preliminary Official Statement. In its “Report of
Investigation in the Matter of County of Orange, California as it Relates to the Conduct of the Members
of the Board of Supervisors” (Release No. 36761 / January 24, 1996) (the “Release”), the SEC stated that,
if a member of the elected body has knowledge of any facts or circumstances that an investor would want
to know about prior to investing in the Obligations, whether relating to their repayment, tax-exempt
status, undisclosed conflicts of interest with interested parties, or otherwise, he or she should endeavor
to discover whether such facts are adequately disclosed in the Preliminary Official Statement. In the
Release, the SEC stated that the steps that a member of the elected body take include becoming familiar
with the Preliminary Official Statement and questioning staff and consultants about the disclosure of such
facts.
Section 1. Purpose of Financing.
Section 2. Documents for Approval; Security for the Obligations.
Section 3. Risks Relating to Repayment and Tax-Exempt Status of the Obligations.
Section 4. Requested Approvals.
Attachment 1
November 18, 2020
Board Meeting 20-27
SPECIAL MEETING
BOARD OF DIRECTORS
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
Wednesday, November 4, 2020
The Board of Directors conducted this meeting in accordance with California Governor
Newsom’s Executive Order N-29-20. All Board members and staff participated via
teleconference.
DRAFT MINUTES
SPECIAL MEETING
President Holman called the special meeting of the Midpeninsula Regional Open Space District
to order at 5:00 p.m.
ROLL CALL
Members Present: Jed Cyr, Larry Hassett, Karen Holman, Zoe Kersteen-Tucker, Yoriko
Kishimoto, Curt Riffle, and Pete Siemens
Members Absent: None
Staff Present: General Manager Ana Ruiz, General Counsel Hilary Stevenson, Assistant
General Manager Brian Malone, Assistant General Manager Susanna
Chan, Chief Financial Officer Stefan Jaskulak, Public Affairs Manager
Kori Skinner, Public Affairs Specialist II Cydney Bieber
President Holman announced this meeting is being held in accordance with Governor Newsom’s
Executive Order allowing Board members to participate remotely. The District has done its best
to conduct a meeting where everyone has an opportunity to listen to the meeting and to provide
comment. The public has the opportunity to comment on the agenda, and the opportunity to
listen to this meeting through the internet or via telephone. This information can be found on the
meeting agenda, which was physically posted at the District’s Administrative Office, and on the
District website. President Holman described the process and protocols for the meeting.
1. Website Structural Upgrade and Design Refresh Project Update (R-20-132)
General Manager Ana Ruiz commented on the website upgrades possible using a new platform
that will allow for more functionality and graphics.
Public Affairs Manager Kori Skinner provided additional information on the ability of the new
website to improve functionality for mobile users and to follow best management practices.
Meeting 20-27 Page 2
Public Affairs Specialist II Cydney Bieber provided the staff presentation describing the
technological needs for the updated website to continue to allow for security updates. The
website was last updated in 2015, and the upgrades will allow for new interactive features and
graphics. Due to the high number of mobile users, the new website structure will be better
viewed on mobile devices. Ms. Bieber described the design process to represent potential site
users and interview website stakeholders. The website layout will be designed to meet the needs
of community members, create pathways to encourage exploration, and have an increased ability
to incorporate photos, graphics, and video. Ms. Bieber displayed various pages from the current
District website and explained how these will be updated in the upgraded website.
Director Kishimoto requested clarification regarding the search function for the District’s
website and whether the public will be able to search for Board meeting documents, meeting
minutes, etc.
District Clerk Jennifer Woodworth reported as a part of the records management program and
selection of an electronic document management system, past District records will be digitized
and accessible from the District’s website. The vendor for the electronic document management
system will be selected in early 2021, and following implementation of the document
management system staff will work to integrate the District’s records and ability to search the
records within the website.
Director Kishimoto inquired regarding including links to outside sites, such as trail reviews, from
the District’s website.
Public Affairs Manager Kori Skinner commented the District does not have a way to monitor
outside website to ensure the information is accurate, so the types of links that would be
provided are limited.
Director Riffle suggested linking to other partner organizations which may help users locate
open space areas to visit even when not a part of the District’s preserves.
Ms. Skinner reported the District created a page on the site related to regional open space options
to help guide visitors to various options for visiting open space.
President Holman suggested making this regional page more prominent on the District’s website.
President Holman inquired regarding the possibility of members of the public to opt into alerts
from the District, such if a preserve were closed due to an emergency.
Ms. Skinner stated this functionality is being included in the website to allow visitors to opt into
notifications, such as for public meetings, but currently it is not planned for public safety alerts.
Public comment opened at 5:57 p.m.
District Clerk Jennifer Woodworth reported no public comments were submitted for this item.
Public comment closed at 5:57 p.m.
No Board action required.
Meeting 20-27 Page 3
ADJOURNMENT
President Holman adjourned the special meeting of the Board of Directors of the Midpeninsula
Regional Open Space District at 5:58 p.m.
SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT – CLOSED SESSION
President Holman announced the Board would convene into closed session at 6:01 p.m.
District Clerk Jennifer Woodworth reported no public comments were submitted for the closed
session items.
ROLL CALL
Members Present: Jed Cyr, Larry Hassett, Karen Holman, Zoe Kersteen-Tucker, Yoriko
Kishimoto, Curt Riffle, and Pete Siemens
Members Absent: None
Staff Present: Human Resources Manager Candice Basnight and Outside Counsel Gary
Baum
1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION. Government Code
Section 54957(b)(1)
Title of Employee: General Counsel
General Manager
CONFERENCE WITH LABOR NEGOTIATORS. Government Code Section
54957.6
Agency designated representatives: Board Appointee Evaluation Committee (Directors Holman,
Riffle, and Siemens)
Unrepresented Employees: General Counsel
General Manager
2. PUBLIC EMPLOYEE PERFORMANCE EVALUATION. Government Code
Section 54957(b)(1)
Title of Employee: General Manager
ADJOURNMENT
President Holman adjourned the special meeting of the Board of Directors of the Midpeninsula
Regional Open Space District at 7:02 p.m.
SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT
President Holman called the special meeting of the Midpeninsula Regional Open Space District
to order at 7:14 p.m.
Meeting 20-27 Page 4
ROLL CALL
Members Present: Jed Cyr, Larry Hassett, Karen Holman, Zoe Kersteen-Tucker, Yoriko
Kishimoto, Curt Riffle, and Pete Siemens
Members Absent: None
Staff Present: General Manager Ana Ruiz, General Counsel Hilary Stevenson, Assistant
General Manager Brian Malone, Assistant General Manager Susanna
Chan, Chief Financial Officer Stefan Jaskulak, Budget & Analysis
Manager Mike Bower, Public Affairs Manager Kori Skinner, Public
Affairs Specialist II Leigh Ann Gessner, Natural Resources Manager Kirk
Lenington, Senior Resource Management Specialist Coty Sifuentes-
Winter, IPM Coordinator Tom Reyes, Grants Program Manager Deborah
Hirst, Land & Facilities Manager Brandon Stewart, Senior Property
Management Specialist Omar Smith, Engineering & Construction
Manager Jason Lin, Senior Capital Project Manager Tanisha Werner,
Chief Ranger Matt Anderson, Management Analyst II Deborah Bazar,
District Clerk Jennifer Woodworth announced this meeting is being held in accordance with
Governor Newsom’s Executive Order allowing Board members to participate remotely. The
District has done its best to conduct a meeting where everyone has an opportunity to listen to the
meeting and to provide comment. The public has the opportunity to comment on the agenda, and
the opportunity to listen to this meeting through the internet or via telephone. This information
can be found on the meeting agenda, which was physically posted at the District’s
Administrative Office, and on the District website. Ms. Woodworth described the process and
protocols for the meeting.
REPORT OUT OF CLOSED SESSION
President Holman stated there was no reportable action taken in closed session.
ORAL COMMUNICATIONS
Ms. Woodworth read the submitted public comments into the record.
John Kunz shared comments in support of allowing Class 1 e-bikes on District trails, at least for
senior citizens.
Keith Kelsen commented on a recent protest he organized in support of allowing e-bikes on
District trails and shared information gathered from those participating in the protest. Mr. Kelsen
stated the impact of e-bikes is similar to those of standard mountain bikes and encouraged the
District to open trails to e-bikes.
ADOPTION OF AGENDA
Motion: Director Riffle moved, and Director Cyr seconded the motion to adopt the agenda.
ROLL CALL VOTE: 7-0-0
Meeting 20-27 Page 5
SPECIAL ORDER OF THE DAY
• Introduction of Staff
o Cindy Chu, Risk Management Analyst
CONSENT CALENDAR
Public comment opened at 7:22 p.m.
District Clerk Jennifer Woodworth read the submitted public comments into the record.
Tom Calderwood shared comments in support of Item 5 regarding invasive species treatment. He
also stated more focus should be placed on removing non-native eucalyptus trees; replacing
removed invasive species with trees suitable to the locations; and involving District Advanced
Resource Management Stewards (ARMs) volunteers with habitat restoration.
Public comment closed at 7:23 p.m.
Director Siemens pulled Item 6 from the Consent Calendar.
Director Hassett requested clarification regarding Item 8 asking why the District is covering the
cost of the demolition and not the tenant.
General Counsel Hilary Stevenson stated the District’s property insurance applies and covers the
damage and then seeks reimbursement from the tenant’s insurance provider.
Motion: Director Kishimoto moved, and Director Cyr seconded the motion to approve the
Consent Calendar, except for Item 6.
ROLL CALL VOTE:7-0-0
1. Approve October 21, 2020 and November 4, 2020 Minutes
2. Approve Claims List
3. Quarter 1 Proposed Budget Amendments to the Fiscal Year ending June 30, 2021
(R-20-140)
General Manager’s Recommendation: Adopt a resolution approving the proposed Quarter 1
budget amendments for the fiscal year ending June 30, 2021.
4. Award of Contract to EDX Exhibits for the Administrative Office Interpretive
Elements Project (R-20-133)
General Manager’s Recommendation: Authorize the General Manager to enter into a contract with
EDX Exhibits for $78,000 for interpretive planning and design of new public interpretive elements
for the future Administrative Office at 5050 El Camino Real in Los Altos.
Meeting 20-27 Page 6
5. Award of Contract for District-Wide Habitat Enhancement through Invasive
Species Treatment (R-20-135)
General Manager’s Recommendation:
1. Authorize the General Manager to enter into a contract with Hanford ARC of Petaluma,
California in the amount of $275,000 for one year of invasive species management services.
2. Authorize the General Manager to extend the contract for three additional consecutive years,
if the program achieves specific success criteria, at an annual cost of up to $275,000 for a
total not-to-exceed contract amount of $1,100,000 over the four-year term.
6. Award of Contract with Applied Technology & Science for Planning Services,
Feasibility Assessment, and Preparation of Habitat Restoration Plans within the Irish
Ridge Area of Purisima Creek Redwoods Open Space Preserve (R-20-134)
General Manager’s Recommendation:
1. Authorize the General Manager to contract with Applied Technology & Science (ATS), to
provide Phase I environmental planning and biological consulting services to determine the
feasibility and maximum net natural resource benefits of restoring a section of Purisima
Creek Redwoods Open Space Preserve for a base contract amount of $42,037.
2. If the completion of the Phase I items in the base contract demonstrates high long-term net
natural resources benefits at a reasonable price for the planned restoration work, authorize the
General Manager to amend the contract to complete Phase II habitat restoration plans, for an
additional not-to-exceed amount of $57,230.
3. Authorize a 10% contingency for each Phase of work for a total amount of $9,927 ($4,204
for Phase I and $5,723 for Phase II) to cover unforeseen complexities or additional biological
survey needs, for a grand total contract amount not-to-exceed $109,194.
Item 6 was heard after the Consent Calendar.
Director Siemens inquired regarding the potential cost of providing work at the site to be
determined by the feasibility study.
Senior Resources Management Specialist Coty Sifuentes-Winter explained the feasibility study
will help ensure District funds are spent wisely to provide the best return on investment in
restoring the area.
Director Siemens expressed concern regarding the recommended approach to the project and the
recommendation of a 10% contingency for the contract.
Motion: Director Kishimoto moved, and Director Riffle seconded the motion to approve the
General Manager’s recommendation.
ROLL CALL VOTE:7-0-0
7. Application for Grant Funding from the California Department of Parks and
Recreation’s Proposition 68 Per Capita Grant Program (R-20-136)
General Manager’s Recommendation: Adopt a Resolution authorizing the General Manager to
submit an application for Proposition 68 Per Capita Program grant funding from the California
Meeting 20-27 Page 7
Department of Parks and Recreation and to negotiate a grant funding agreement(s) for
$1,214,590 in Per Capita funding.
8. Award of Contract to TKO General Engineering & Construction for Demolition of
Two Unoccupied, Fire Damaged Accessory Structures and Repair of a Retaining Wall at
895 La Honda Road, Woodside, CA 94026 in Thornewood Open Space Preserve (R-20-137)
General Manager’s Recommendation:
1. Approve the demolition of two fire damaged accessory structures and the replacement of a
retaining wall that sustained extensive fire damage at Thornewood Open Space Preserve and
determine that these actions are categorically exempt under CEQA.
2. Authorize the General Manager to enter into a contract with TKO General Engineering &
Construction, of Woodside, California to complete the structures demolition and retaining
wall repair for a base amount of $49,680.
3. Authorize a 15% contingency of $7,452 to be reserved for unanticipated issues, for a total
not-to-exceed contract amount of $57,132.
9. Award of Contract to Evaluate and Prepare Structural and Engineering Repairs
Options to Repurpose an Existing Structure as Ranger Housing at Sierra Azul Open Space
Preserve (R-20-126)
General Manager’s Recommendation:
1. Authorize the General Manager to enter into a contract with Wiss, Janney, Elstner
Associates, Inc., of Emeryville, California for a base contract amount of $67,500.
2. Authorize a 10% contingency of $6,750 to cover unforeseen conditions for a total contract
amount not-to-exceed $74,250.
BOARD BUSINESS / PUBLIC HEARING
10. Award of Contract with SWCA Environmental Consultants to provide
Environmental Planning, Design, and Technical Analysis for the Feasibility Studies and
Conceptual Designs of the Purisima-to-the-Sea Trail and Parking Area Project (R-20-129)
Senior Planner Gretchen Laustsen provided the staff presentation describing the conceptual trail
connection, described the proposed feasibility study and contract scope, and grant funding
available for the project.
Director Hassett praised the selection of SWCA for this contract due to their knowledge of the
area and reduction of greenhouse gas emissions because they are local.
Director Kishimoto suggested additional trail work could be completed by District staff.
Ms. Laustsen reported District staff will lay out the trail alignment from the parking lot, but due
to the compressed timeline, additional assistance will be needed from consultants to avoid
impacting District workloads.
Ms. Ruiz stated this portion of the work is also being funded by an external grant.
Director Riffle inquired regarding potential impact on agriculture in the area by introducing
public access.
Meeting 20-27 Page 8
Ms. Laustsen reported the study will directly address the effects of public access on agriculture.
Director Cyr stated introducing public access to the area may help visitors better understand the
importance of agriculture.
Director Siemens inquired regarding the conceptual trail alignment and its proximity to the
California Coastal Trail and parking area.
Ms. Laustsen stated that topography of the area and current uses prevent a direct connection to
the Coastal Trail and parking area, so connector trails and crossings will be needed.
Public comment opened at 8:10 p.m.
District Clerk Jennifer Woodworth read the submitted comments into the record.
Jim Sullivan commented in support of allowing bicycle riders to ride from Highway 35 to the
coast on dirt trails and asked the Board to allow bicycles on Irish Ridge Trail.
Ron Sturgeon opposed the project stating the California Coastal Conservancy’s trail alignment
did not cross South Cowell Ranch and instead crosses District property. Mr. Sturgeon opposed
the trail crossing the South Cowell Ranch due to its negative impact on the ranch.
Public comment closed at 8:12 p.m.
Ms. Ruiz stated the District’s policy allows for making regional trails multi-use trails, which the
Board may decide to consider now that the Irish Ridge Trail will be a regional trail.
Real Property Manager Mike Williams commented the trail alignment has not been determined,
and when the Coastal Conservancy considered the grant funding, the District and Peninsula Open
Space Trust had not yet purchased South Cowell Ranch.
Director Kersteen-Tucker spoke in support of considering making the connector trail a multi-use
trail. Director Kersteen-Tucker inquired how the stakeholders will be identified for the public
outreach process.
Ms. Laustsen stated staff will first identify public concerns, including trail use, traffic and safety
concerns, etc., and will then seek public input on these and other topics that may arise.
Director Riffle spoke in support of working with various user groups and also soliciting input
from residents on the coastside and bayside areas of the District.
President Holman suggested separate trails for hiking and cycling use.
Assistant General Manager Brian Malone stated trails can be designed for multi-use, and the
current site has existing constraints that may prevent building two trails.
President Holman commented on the need to balance the public’s interest in visiting the preserve
and the impact on the environment and inquired how this may be weighed at this site.
Meeting 20-27 Page 9
Planning Manager Jane Mark stated the Science Advisory Panel plans to study this topic to better
understand recreational uses and the effects on natural resources, which can inform the District’s
design of parking capacity.
Motion: Director Kersteen-Tucker moved, and Director Siemens seconded the motion to:
1. Authorize the General Manager to enter into a contract with SWCA Environmental
Consultants of Half Moon Bay, CA to complete the Feasibility Studies and Conceptual Designs
of the Purisima-to-the-Sea Trail and Parking Area Project for a base amount of $261,000.
2. Authorize an approximate 10% contingency of $26,000 to cover unforeseen tasks beyond
the current scope for a total not-to-exceed contract amount of $287,000.
ROLL CALL VOTE: 7-0-0
11. Radio System Assessment Report and Recommendations (R-20-110)
Mr. Malone commented on District staff’s recent work on the CZU fire and the importance of
the radio system to allow staff to properly perform their jobs, often in remote locations.
Management Analyst II Deborah Bazar described the District’s radio system, including radio
tower locations, and the radio system assessment report and finding. The District’s radio system
requires upgrading due to equipment reaching end of life, equipment that is outdated, and
coverage issues on District lands.
Greg Forrest with Forrest Telecom Engineering, Inc., further outlined the findings of the radio
system assessment report and provided recommendations needed to maintain a reliable and
operational radio system. Additional recommended actions will improve coverage and further
enhance performance and reliability.
Ms. Bazar described the costs for the required and recommended items.
The Board members requested and received clarification regarding various aspects of the
District’s radio system.
Director Siemens commented the analog administrative radio system is also outdated and should
be converted to a digital system when the patrol system is upgraded to a digital system.
Mr. Forrest stated he does not see a downside to upgrading the District’s administrative radio
system to a digital system.
Director Riffle inquired regarding the life of the proposed upgraded system.
Mr. Forrest reported the typical useful life of a system is approximately ten to fifteen years.
Members of the Board spoke in support of upgrading the administrative radio system to a digital
system.
President Holman inquired regarding the cost of software upgrades to the system and whether
they would be included in the purchase.
Meeting 20-27 Page 10
Mr. Forrest stated most manufacturers will include two to three years of firmware upgrades in
the purchase with options to purchase additional years of support.
President Holman asked staff to include the costs of technical support and firmware upgrades
when the contract returns for Board approval.
President Holman suggested the District’s old equipment be provided to another organization or
agency that would be able to use it rather than it being sold as surplus electrical equipment.
Public comment opened at 9:44 p.m.
District Clerk Jennifer Woodworth announced no public comments were submitted to be read
into the record.
Public comment closed at 9:44 p.m.
Motion: Director Siemens moved, and Director Cyr seconded the motion to direct the General
Manager to plan for the implementation of the Radio System upgrade and improvement
recommendations, as presented in the staff report and also include upgrade of the administrative
radio system to a digital system as part of the radio system upgrade, to improve coverage,
reliability, functionality, and compatibility with local emergency response agencies, as well as
address end-of-life concerns that affect the ongoing maintenance and use of the current system at
a total implementation cost over the next two fiscal years estimated at $2.51M.
Friendly Amendment: Director Kishimoto suggested modifying the motion to direct the
General Manager to plan for the implementation of the radio system upgrade because the project
budget will still need to be approved by the Board.
Directors Siemens and Cyr accepted the friendly amendment.
Friendly Amendment: President Holman suggested including direction to staff to provide
information, to the extent feasible, regarding anticipated maintenance costs following
implementation of the radio system upgrades and improvements.
Director Siemens declined to accept the friendly amendment.
Friendly Amendment: President Holman suggested including direction to staff to consider what
other options exist for the District’s current equipment, such as use by other agencies or
organizations, and present those options to the Board when the item returns for Board
consideration.
Directors Siemens and Cyr accepted the friendly amendment.
ROLL CALL VOTE: 7-0-0
12. First Reading of the Board Compensation Ordinance (R-20-139)
General Counsel Hilary Stevenson provided the staff presentation describing the history of Board
compensation and similar actions taken by other agencies. Ms. Stevenson outlined the
Meeting 20-27 Page 11
regulations and procedures required for this item, including publishing notice of the item twice in
a newspaper, holding a public hearing, and the ordinance going into effect sixty days after
adoption.
Director Siemens requested clarification regarding the classification of the Board members by
the IRS as employees and the impacts of that classification.
Ms. Stevenson stated this topic may be better discussed at the Board’s January meeting as part of
the annual discussion of the number of monthly meetings to be compensated.
Director Riffle stated the Board’s raise should be consistent with raises provided to staff, which
is 3%.
Director Hassett stated the Board’s compensation should be allowed to catch up to a reasonable
rate, after which the increase can be 3%.
Director Kersteen-Tucker stated the Board’s compensation may be an important incentive to help
support diversity of those serving on the Board and future Board members may rely on that
compensation to serve on the Board.
President Holman commented that compensation may make the option to serve a more viable
option for potential Board members to serve on the Board.
Director Kishimoto stated her support for increasing Board compensation by 5%, and at a later
date the Board may want to consider which meetings and events are compensable.
Public hearing opened at 10:11 p.m.
District Clerk Jennifer Woodworth announced no public comments were submitted to be read
into the record.
Public comment closed at 10:11 p.m.
Motion: Director Siemens moved, and Director Siemens seconded the motion to:
1. Waive reading and introduce an ordinance increasing Board compensation from $100.00 to
$105.00 per meeting pursuant to Public Resources Code section 5536.
2. Hold a public hearing on the proposed ordinance.
3. Direct the General Manager and General Counsel to prepare the ordinance for second reading
at the December 9, 2020 Board meeting.
ROLL CALL VOTE: 7-0-0
Director Hassett commented that the District could look at comparable agencies with similar
numbers of meetings per year to help determine the “market rate” of Board compensation.
INFORMATIONAL MEMORANDUM
• Administrative Office Project – Contractor Pre-Qualification Process
Meeting 20-27 Page 12
Director Hassett spoke in favor of using a local contractor for the project.
INFORMATIONAL REPORTS
A. Committee Reports
Director Kersteen-Tucker reported the Legislative, Funding, and Public Affairs Committee
(LFPAC) met yesterday to discuss the scope of the 50th Anniversary celebration and events and
the proposed funding agreements with the Umunhum Conservancy and Stephen C. Schott for
funding repairs of the Mt. Umunhum Radar Tower.
B. Staff Reports
District Clerk Jennifer Woodworth announced staff will be sending the Board members
information regarding required harassment prevention training and asked the Board members to
complete the training by January 31, 2021.
Mr. Malone provided an update on the LFPAC discussion regarding a donation by the Umunhum
Conservancy. Mr. Malone announced the Kennedy Trail at Sierra Azul will be closed on
Thanksgiving to discourage gathering by visitors for an annual bike ride that occurs, which is
inconsistent with current COVID-19 protocols.
Assistant General Manager Susanna Chan provided an update on the Rancho San Antonio
stakeholder meetings regarding the Rancho San Antonio multimodal study project.
Ms. Ruiz reported the Saratoga to the Skyline Trail grand opening video has been posted to the
City of Saratoga’s website and invited the Board to view the video.
C. Director Reports
Director Kishimoto announced she plans to pursue the special district delegate position on the
Santa Clara LAFCO Board of Directors and requested the Board’s support.
ADJOURNMENT
President Holman adjourned the special meeting of the Board of Directors of the Midpeninsula
Regional Open Space District at 10:37 p.m.
________________________________
Jennifer Woodworth, MMC
District Clerk
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
CLAIMS REPORT
MEETING # 20-29
MEETING DATE: December 09, 2020 Fiscal Year 19-20 EFT:57.86%
Fiscal Year 18-19 EFT:29.44%
Payment
Number
Payment
Type
Payment
Date
Notes Vendor No. and Name Invoice Description Payment Amount
2635 EFT 12/04/2020 12111 - Agbayani Construction Corporation South Area Field Office Renovation Project - October 2020 571,730.58
2617 EFT 11/27/2020 11998 - Hanford Applied Restoration & Conservation Mindego Ranch Ponds Enhancement Project - October 2020 258,087.24
2628 EFT 11/27/2020 11303 - Santa Clara County FireSafe Council Los Trancos Page Mill Road Eucalyptus Removal Project - 5/1/20 - 9/30/20 198,050.80
2588 EFT 11/20/2020 12086 - Coastwide Environmental Technologies, Inc.Alma Demolition and Abatement Project - September 2020 136,325.00
2638 EFT 12/04/2020 11457 - Andreini Brothers Inc ADA Barrier Removal Project thru 10/31/20 115,055.11
2623 EFT 11/27/2020 12146 - Paine Construction Inc.Repainting of Red Barn 47,000.00
2613 EFT 11/27/2020 11238 - CXT Incorporated ADA Barrier Removal Project CXT Vault Restrooms 41,437.00
2608 EFT 11/27/2020 *12052 - 4984 EL Camino LLC A02/A03/A04 Rent - December 2020 36,678.00
2599 EFT 11/20/2020 12013 - Rincon Consultants, Inc.Madonna Creek Ranch Remediation - 8/1/20 - 9/30/20 31,069.17
2627 EFT 11/27/2020 11432 - San Mateo County Resource Conserv. Dist.Santa Cruz Mountain Stewardship Network Payment 20-21 30,000.00
2652 EFT 12/04/2020 12020 - Panorama Environmental, Inc.CEQA: Prescribed Fire Program Development - October 2020 29,016.25
2654 EFT 12/04/2020 11523 - PGA Design, Inc.Alma Cultural Landscape Rehab Plan / Hawthorns Public Acess - thru October 2020 26,614.76
2598 EFT 11/20/2020 11241 - Questa Engineering Corp.Design and Permitting Work for BCR Phase II Trails - September 2020 23,787.50
2611 EFT 11/27/2020 11898 - Bay Area Tree Specialists Eucalyptus Removal near Sequoias (5)20,900.00
2642 EFT 12/04/2020 10546 - Ecological Concerns, Inc.Habitat Enhancements at Fremont Older & Picchetti Ranch - October 2020 18,751.90
81491 Check 11/13/2020 11772 - Ahern Rentals, Inc.Equipment Rentals - JD650 Dozer/Roller/Excavator - 9/21/20 - 10/27/20 18,179.30
81514 Check 11/27/2020 10463 - Dell Business Credit 6 monitors, 2 rugged laptops & 6 normal laptops 17,920.67
2616 EFT 11/27/2020 11593 - H.T. Harvey & Associates Alma College Bat Surveys - thru September 30, 2020 17,771.25
2610 EFT 11/27/2020 11470 - AECOM Technical Services Inc Hwy 17 Wildlife & Regional Trail Crossings & Trail Connections - 8/29/20 - 9/25/20 17,396.25
2620 EFT 11/27/2020 10064 - MCB Remodeling LLC Upgrades between Tenants at Mora B 17,250.00
2612 EFT 11/27/2020 10012 - Biosearch Environmental Consulting Bio On-Call, Task 3, Mindego Ponds Project - 8/1/20 - 10/31/20 14,455.10
2587 EFT 11/13/2020 *10216 - Valley Oil Company Fuel for District Vehicles 13,283.81
2629 EFT 11/27/2020 12142 - Shellco General Contractor Inc DHF White Barn Structural Stabilization Project - October 2020 11,875.00
2615 EFT 11/27/2020 10005 - Grassroots Ecology Cooley Landing Native Planting Additional Work - 7/1/20 - 10/30/20 10,412.44
2646 EFT 12/04/2020 11906 - Law Offices of Gary M. Baum Legal Counsel Services / Legal Services South Cowell - October 2020 10,118.50
2647 EFT 12/04/2020 10791 - LSA Associates, Inc.CEQA & Regulatory Permit/Alternatives Analysis RWQCB Permit/Architectural Monitoring 9,506.50
2582 EFT 11/13/2020 12107 - San Francisco Estuary Institute Science Advisory Panel - September 2020 8,928.18
2568 EFT 11/13/2020 11898 - Bay Area Tree Specialists Tree Service - Prune and Remove Tan Oaks (3) / IPM Eucalyptus Tree Removal (7)8,600.00
81529 Check 12/04/2020 11588 - RONALD SEEVER Construction - Livestock Fence - Mindego Lake Habitat Protection 8,350.00
2573 EFT 11/13/2020 11748 - Environmental & Energy Consulting State Legislative Consulting & Lobbying - October 2020 7,860.41
2619 EFT 11/27/2020 10452 - Ifland Survey Right-of -Way Survey Services for Alpine Road 7,510.00
81530 Check 12/04/2020 10102 - Shute, Mihaly & Weinberger LLP Wildland Fire Environmental Impact Report - August 2020 6,995.00
81492 Check 11/13/2020 11386 - Bob Murray & Associates L&F Manager Recruitment 6,651.35
2657 EFT 12/04/2020 12107 - San Francisco Estuary Institute Stevens Creek Shoreline Nature Study Area Feasibility Study - 8/1/20 - 9/30/20 6,535.89
2653 EFT 12/04/2020 11823 - Periscope Intermediate Corporation BidSync source hosted eProcurement solution - 11/28/20 - 11/27/21 6,489.00
2607 EFT 11/20/2020 12050 - Wiss, Janney, Elstner Associates, Inc.DHF White Barn Structural Stabilization - thru 9/27/30 6,338.75
2656 EFT 12/04/2020 10099 - San Francisco Bay Bird Observatory American Badger & Burrowing Owl Habitat Suitability Study - 9/1/20 - 10/31/20 6,253.30
2645 EFT 12/04/2020 11593 - H.T. Harvey & Associates Alma College Bat Relocation & Habitat Replacement thru 10/31/20 6,252.33
2584 EFT 11/13/2020 12117 - Signet Testing Laboratories, Inc.SAO Special Inspection Services - 8/31/20 - 9/11/20 6,161.58
2578 EFT 11/13/2020 10031 - Mills Design Updates to Measure AA poster/Covid-19 Safety Signs/Summer Newsletter/Preserve Signs 5,333.75
81525 Check 12/04/2020 10466 - BAY AREA RIDGE TRAIL COUNCIL 2020-2021 Bay Area Ridge Trail Council Membership 5,000.00
81503 Check 11/20/2020 12010 - Garcia and Associates DH Manure Structure - Archaeological Monitor - 2/26/20 - 7/24/20 4,926.50
2659 EFT 12/04/2020 12082 - Sicular Environmental Consulting La Honda Forest Management Plan - October 2020 4,904.21
2655 EFT 12/04/2020 10295 - Rhus Ridge Association Road Maintenance Agreement (RSA)4,852.48
2593 EFT 11/20/2020 11748 - Environmental & Energy Consulting Consulting & Lobbying - August 2020 4,110.41
2603 EFT 11/20/2020 11055 - Systems for Public Safety Backgrounds for Ranger Candidates 4,000.00
81517 Check 11/27/2020 11141 - Jarvis Fay & Gibson LLP Legal Services Rendered - October 2020 3,682.50
2648 EFT 12/04/2020 11617 - MIG, Inc.ADA Plan Update - 8/1/20 - 9/30/20 3,272.50
81515 Check 11/27/2020 11701 - Eric Gouldsberry Art Direction Design and Production of 2019-20 BOC Guide / PAFR/CAFR 3,262.50
2597 EFT 11/20/2020 *10211 - Public Policy Advocates 2020 Monthly Fee - Legislative Advocacy Services for October 2020 3,230.00
81532 Check 12/04/2020 *10309 - Verizon Wireless Wireless - 10/13/20 - 11/12/20 3,115.68
2572 EFT 11/13/2020 10032 - Del Rey Building Maintenance Janitorial Services for AO, SAO, SFO, FFO, CAO 3,020.00
2651 EFT 12/04/2020 12146 - Paine Construction Inc.Patch the roof on the Red Barn 2,999.00
81502 Check 11/20/2020 10027 - CRESCO EQUIPMENT RENTALS SA - Excavator rental for dumpsite clean-up - 10/7/20 - 10/15/20 2,902.68
2660 EFT 12/04/2020 10307 - The Sign Shop Custom & Standard Operation Signs - "No E Bike ", "Fire Lane" - SFO 2,894.00
Electronic funds transfer (EFT) for accounts payable disbursements to reduce check printing and mailing, increase payment
security, and ensure quicker receipt by vendors
page 1 of 9
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
CLAIMS REPORT
MEETING # 20-29
MEETING DATE: December 09, 2020 Fiscal Year 19-20 EFT:57.86%
Fiscal Year 18-19 EFT:29.44%
Payment
Number
Payment
Type
Payment
Date
Notes Vendor No. and Name Invoice Description Payment Amount
Electronic funds transfer (EFT) for accounts payable disbursements to reduce check printing and mailing, increase payment
security, and ensure quicker receipt by vendors
2649 EFT 12/04/2020 10031 - Mills Design Ads for HMB Farmers Market/RW Brochure/E-bike fact sheet 2,775.00
2570 EFT 11/13/2020 10022 - Concern Flat Quarterly Rate 10/01/20 - 12/31/20 2,541.50
81499 Check 11/20/2020 12131 - Bay Area Older Adults, Inc.Ravenswood Open Space Preserve Lunch & Learn - 10/8/20 2,500.00
81521 Check 11/27/2020 10472 - Sandra Sommer CA Riding & Hiking Trail Research & Summary Report Agreement #2 - October 2020 2,479.21
81526 Check 12/04/2020 12153 - California Sport Design LLC Storm Tech Face Masks & carbon filters 2,403.50
2618 EFT 11/27/2020 10222 - Herc Rentals, Inc.Rental of Road Rock Roller/Compactor (BCR) - 10/16/20 - 10/30/20 2,399.51
81512 Check 11/27/2020 11772 - Ahern Rentals, Inc.JD 210 Rental (BCR) - 10/15/20 - 11/12/20 2,392.29
2643 EFT 12/04/2020 10187 - Gardenland Power Equipment New Stihl Pole Pruner, chainsaws for CAO, fuel cans, bar oil & litter pick-up sticks 2,382.73
2606 EFT 11/20/2020 10146 - Tires On The Go Tire Replacement for M227, M33 2,327.00
2639 EFT 12/04/2020 *11799 - Aztec Leasing, Inc.Printer/copier leases - 6 machines - November 2020 2,326.07
2661 EFT 12/04/2020 11914 - W-TRANS BCR Multi-Use Trail Crossings Traffic Studies - October 2020 2,300.00
2636 EFT 12/04/2020 *10128 - American Tower Corporation Repeater Lease - November 2020 2,049.96
2624 EFT 11/27/2020 *10212 - Pinnacle Towers LLC Tower Rental Skeggs Point – November 2020 2,042.30
2622 EFT 11/27/2020 10641 - Overlook Road Maintenance Assn Overlook Road Maintenance Annual Dues (ES)1,949.00
2632 EFT 11/27/2020 10152 - Tadco Supply Janitorial Supplies (RSA&CP)1,793.32
2633 EFT 11/27/2020 11780 - Terry J Martin Associates New South Area Field Office Facility, Campbell - October 2020 1,640.00
2630 EFT 11/27/2020 10302 - Stevens Creek Quarry, Inc.Base Rock for Phase II Trails (BCR)1,639.80
81507 Check 11/20/2020 12138 - San Mateo County Public Works Tabachnik Lot - split 1,500.00
81513 Check 11/27/2020 10843 - City of Los Altos Sewer Service Charge - 1st/2nd Installment 1,458.44
2658 EFT 12/04/2020 10793 - Sherwood Design Engineers Plan Revisions to Address SMC BLDG Permit Comments - thru October 31, 2020 1,402.50
2590 EFT 11/20/2020 11989 - Conifer Creative, Inc.Professional Services - 2021 Wall Calendar - initial design templates, layout, images 1,325.00
2586 EFT 11/13/2020 10307 - The Sign Shop Custom Signs - OSP (20)1,324.79
2585 EFT 11/13/2020 10302 - Stevens Creek Quarry, Inc.Drain & Base Rock (RSA & BCR)1,241.82
2641 EFT 12/04/2020 11318 - Confluence Restoration BCR Plant Installation & Maintenance - October 2020 1,200.00
2631 EFT 11/27/2020 11055 - Systems for Public Safety Backgrounds for Ranger Candidates 1,150.00
81495 Check 11/13/2020 10935 - Rice Trucking - Soil Farm Water Delivery at Toto - (3)1,113.03
2571 EFT 11/13/2020 11318 - Confluence Restoration Alma /Webb Creek Plant Maintenance - September 2020 1,110.00
2626 EFT 11/27/2020 11479 - Rootid, LLC Website maintenance - retainer hours 8 1,080.00
81524 Check 12/04/2020 11772 - Ahern Rentals, Inc.Mini excavator Rental (SFO) 10/27/20 - 10/30/20 1,065.88
81498 Check 11/20/2020 11772 - Ahern Rentals, Inc.JD 210 Rental (BCR) - 10/8/20 - 10/15/20 1,030.08
2640 EFT 12/04/2020 11898 - Bay Area Tree Specialists Contingency - Eucalyptus tree stump removal near Sequoias (1)1,000.00
2634 EFT 12/04/2020 10001 - Aaron's Septic Tank Service Vault Pumpout - Northridge & Purisima Creek 990.00
2583 EFT 11/13/2020 10136 - San Jose Water Company Water Service (RSACP) - 2 accounts 926.46
2650 EFT 12/04/2020 11270 - Municipal Maintenance Equipment Inc.T27 Vehicle Parts 853.82
81516 Check 11/27/2020 11551 - Green Team of San Jose Garbage Service (RSA) 842.13
2601 EFT 11/20/2020 12117 - Signet Testing Laboratories, Inc.SAO Special Inspection Services 777.92
81528 Check 12/04/2020 10935 - Rice Trucking - Soil Farm Water Delivery at Toto - (2)742.02
2604 EFT 11/20/2020 10152 - Tadco Supply GP/RSACP Restroom Supplies 738.77
81500 Check 11/20/2020 *10454 - California Water Service-949 Water Service (FFO)712.78
2589 EFT 11/20/2020 11013 - Confidence UST Services, Inc.New Diesel Tank Nozzle (FFO)700.95
2579 EFT 11/13/2020 10271 - Orlandi Trailer Inc M236 Tow hitch & accessories / T07 Repairs 662.95
2621 EFT 11/27/2020 10073 - Normal Data Permit/Contact Databases - October 2020 640.00
2605 EFT 11/20/2020 11895 - Timmons Group Inc Work Order and Asset Management - thru 7/31/2020 630.00
2592 EFT 11/20/2020 11699 - Dakota Press Proof samples of newsletters & trail brochures (Qty 24) / Postcards 4 versions (Qty 2000)553.90
81522 Check 11/27/2020 10959 - State Water Resources Control Board Ravenswood Bay Trail (2 41C387949) Index No: 418477 509.00
2609 EFT 11/27/2020 10001 - Aaron's Septic Tank Service Sanitation Service (PuR)495.00
81493 Check 11/13/2020 10135 - Praxair Distribution Inc Welding Supplies (FFO)478.82
2600 EFT 11/20/2020 *10136 - San Jose Water Company Water Service (SAO-Cristich) 473.53
2602 EFT 11/20/2020 10302 - Stevens Creek Quarry, Inc.Base Rock (BCR)430.76
81523 Check 11/27/2020 11852 - Western Exterminator Co.Annex/Garage rodent control 426.50
81497 Check 11/20/2020 12090 - Action Towing Towing Service for M210 412.50
2580 EFT 11/13/2020 10253 - Peterson Tractor Co.T-21 Repairs 375.02
81505 Check 11/20/2020 10935 - Rice Trucking - Soil Farm Water Delivery at Toto - 10/2/20 371.01
81504 Check 11/20/2020 11957 - MATTOX, JANIS Reimburse Tenant for water filters at Bechtel 370.98
81511 Check 11/27/2020 *12041 - A T & T Mobility (FirstNet)EOC Emergency phones- November 2020 355.47
page 2 of 9
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
CLAIMS REPORT
MEETING # 20-29
MEETING DATE: December 09, 2020 Fiscal Year 19-20 EFT:57.86%
Fiscal Year 18-19 EFT:29.44%
Payment
Number
Payment
Type
Payment
Date
Notes Vendor No. and Name Invoice Description Payment Amount
Electronic funds transfer (EFT) for accounts payable disbursements to reduce check printing and mailing, increase payment
security, and ensure quicker receipt by vendors
81496 Check 11/13/2020 10324 - Rich Voss Trucking Inc Rock delivery trucking costs - SFO 350.00
2577 EFT 11/13/2020 12040 - JW Heating and Air Conditioning Repair Gas Heaters at Bergman Main 340.00
81501 Check 11/20/2020 10168 - Cintas Shop Towel Service (FFO & SFO)337.90
81519 Check 11/27/2020 10093 - Rene Hardoy AO Gardening Service 325.00
2574 EFT 11/13/2020 11151 - Fastenal Company Nuts & Bolts 312.59
81527 Check 12/04/2020 *11526 - Republic Services Monthly Garbage Service 16060 Skyline 299.04
2581 EFT 11/13/2020 12121 - Safety Management Consultation Services, Inc.Fall Protection Needs Assessment, Instruction, and Training 291.50
2569 EFT 11/13/2020 10328 - Brush Road Corporation Annual Road Maintenance Dues (BCR)280.00
2591 EFT 11/20/2020 11042 - County of Santa Clara Office of the Sheriff Live Scan - September 2020 276.00
81531 Check 12/04/2020 10338 - The Ed Jones Company, Inc Flat wallet badge - Lucas 270.06
81520 Check 11/27/2020 10182 - Royal Brass Inc T28 Hydraulic Parts / Parts for shop air compressor (FFO)264.07
2576 EFT 11/13/2020 10394 - Interstate Traffic Control Pro RSA/Rhus Ridge - sign parts & parking lot ground markers 260.02
2575 EFT 11/13/2020 10187 - Gardenland Power Equipment Stihl pole saw parts / chainsaw tools 211.94
81508 Check 11/20/2020 11671 - State Water Resources Control Board Renewal Fees for L031287 and L031288 200.00
81509 Check 11/20/2020 10201 - Turf & Industrial Equip. Co.P07 Repairs 192.53
2594 EFT 11/20/2020 12088 - GSL Fine Lithographers Business Card - 250 each of 5 Lots 189.87
2644 EFT 12/04/2020 12088 - GSL Fine Lithographers Business Card - 250 each of 5 Lots 189.87
81494 Check 11/13/2020 10176 - RE Borrmann's Steel Co Materials for Project (RSA)180.43
81518 Check 11/27/2020 11924 - Nomad Ecology Rare Plant Surveys for the Wildland Fire Resiliency Program 165.00
2625 EFT 11/27/2020 12060 - Preferred Alliance, Inc.11-20 Off-Site Participants Testing (13)134.68
2637 EFT 12/04/2020 10294 - AmeriGas - 0130 Propane at 16060 Skyline Blvd 99.42
2596 EFT 11/20/2020 10190 - MetroMobile Communications Radio Repair for M215 75.00
2595 EFT 11/20/2020 10119 - Kwik Key Lock & Safe Co Inc Mini Ex-Bobcat Door Keys 57.49
81510 Check 11/27/2020 11880 - A T & T (CALNET3)Mt. Um Safety Phone - 10/07/20 - 11/6/20 47.97
2614 EFT 11/27/2020 10169 - Foster Brothers Security Systems FFO - Keys 26.16
81506 Check 11/20/2020 11073 - SAN MATEO COUNTY CLERK RECORDER Conformed copy fees - PCR related 20.00
1,971,913.69
*Annual Claims
**Hawthorn Expenses
A### = Administrative Office Vehicle HC = Hendry's Creek P### = Patrol Vehicle SCNT = Stevens Creek Nature Trail
AO2, AO3, AO4 = Leased Office Space HR = Human Resources PCR = Purisima Creek Redwoods SCS = Stevens Creek Shoreline Nature Area
BCR = Bear Creek Redwoods IPM = Invasive Plant Maintenance PIC= Picchetti Ranch SFO = Skyline Field Office
CAO = Coastal Area Office ISM = Invasive Species Management PR = Pulgas Ridge SG = Saratoga Gap
CC = Coal Creek LH = La Honda Creek RR = Russian Ridge SJH = Saint Joseph's Hill
DHF = Dear Hollow Farm LR = Long Ridge RR/MIN = Russian Ridge - Mindego Hill SR= Skyline Ridge
ECdM = El Corte de Madera LT = Los Trancos RSA = Rancho San Antonio T### = Tractor or Trailer
ES = El Sereno M### = Maintenance Vehicle RV = Ravenswood TC = Tunitas Creek
FFO = Foothills Field Office MB = Monte Bello SA = Sierra Azul TH = Teague Hill
FOOSP = Fremont Older Open Space Pres.MR = Miramontes Ridge SAO = South Area Outpost TW = Thornewood
GP = General Preserve MSRB = Municipal Securities Rulemakin SAU = Mount Umunhum WH = Windy Hill
Abbreviations
page 3 of 9
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
CLAIMS REPORT Wells Fargo Credit Card - October 2020
MEETING # 20-29
MEETING DATE 12-09-20
GL Date Amount Description
11/9/2020 6,514.40 Rental of Climber Mower - 8/25/20 - 9/21/20
11/9/2020 4,275.00 Native plant for Russian Ridge
11/9/2020 3,610.44 Dell monitors x 12
11/9/2020 3,594.00 AB1825 Harassment Prevention Training Online - HR
11/9/2020 3,352.72 AutoDesk / AutoCAD Annual Subscription 10/2020 - 9/2021
11/9/2020 3,134.98 District phone service and SAO T1 internet - 9/16/20 - 10/15/20
11/9/2020 2,975.61 Vehicle Repair P101
11/9/2020 2,958.61 Debris Disposal from Clearing of Vegetation on the fire lines
11/9/2020 2,904.43 SFO equipment shed hopper pump wash
11/9/2020 2,546.22 2021 Midpen Calendar, 500 quantity
11/9/2020 2,526.30 Printing of Ordinance 20-01
11/9/2020 1,752.89 BCR Phase I encroachment permit fees + transaction fee
11/9/2020 1,655.00 Society for Human Resource Mgmt. DEI Classes - Basnight
11/9/2020 1,388.83 Construction screws, reflective tape, disposable gloves
11/9/2020 1,292.80 Redwood post for one way trail signs
11/9/2020 1,272.49 P116 Tire replacement
11/9/2020 1,250.00 Endnote software for NR department 1 yr 10/20 - 09/21
11/9/2020 1,209.40 Replacement of Fire shelters for fire crews - protective equip
11/9/2020 1,175.02 UPS battery supplies for FFO office and shop x 2
11/9/2020 939.72 AO Alarm Services - Protection One
11/9/2020 879.92 Side winder mower parts
11/9/2020 841.68 SFO Alarm Service - October 2020
11/9/2020 775.00 RWC Chamber of Commerce Progress Sem Reg - Kersteen-Tucker
11/9/2020 725.00 Nat'l Assoc Interpertation Conference / Cert Course - Smith
11/9/2020 700.00 SRE Years of Service $100 Amazon Gift Card - 7 employees
11/9/2020 666.15 SFO Equipment Shed
11/9/2020 659.59 Vehicle Repair M221
11/9/2020 650.00 Certified Interpretive Trainer Course - Tjosvold
11/9/2020 639.11 Uniform - OST Kandahar
11/9/2020 577.28 FOOSP - Sanitation Services - United Site Services
11/9/2020 557.82 SA/Kennedy Rd - Sanitation Services - United Site Services
11/9/2020 527.47 RSA/Rhus Ridge - Bike Rack for Parking Lot
11/9/2020 525.00 Internal Affairs Investigation Training - Perry
11/9/2020 477.41 Property research services - September 2020
11/9/2020 463.31 Restroom supplies
11/9/2020 459.90 Monthly Zoom Subscription for Board Meetings
11/9/2020 450.00 Web hosting - October 2020
11/9/2020 448.57 Sidewinder Mower parts
11/9/2020 448.36 ZERO repair
11/9/2020 434.18 SFO Tool cleaning
11/9/2020 425.00 SA-Mt Um - Rental of Pedestrian Canopy at Summit
11/9/2020 397.87 Sidewinder mower parts
11/9/2020 395.00 Nat'l Recreation & Park Assoc Virtual Annual Conference for GM
11/9/2020 388.29 Bear Creek Stable ADA Restroom Rental - September 2020
11/9/2020 388.29 Bear Creek Stable ADA Restroom Rental - October 2020
11/9/2020 388.29 Bear Creek Stable ADA restroom Rental - August 2020
11/9/2020 385.00 EMT Refresher Training - Perry
11/9/2020 385.00 EMT Refresher Training - Ingram
11/9/2020 381.49 T38 Winch Line for Chipper
11/9/2020 369.36 T38 Knives for Chipper
11/9/2020 363.17 SFO Recycle and garbage
11/9/2020 361.72 Lights for shop for LED upgrades
11/9/2020 361.00 Monthly rental for storage unit - October 2020
11/9/2020 350.00 Recruit Ad for Planner II - American Soc of Landscape Architects
11/9/2020 348.50 Trough near pen
11/9/2020 343.33 Programmer services-counter project using Visual Basic Language
11/9/2020 340.99 Restock of T-Posts
11/9/2020 336.00 Survey Monkey Subscription - 10/26/20 - 10/25/21
11/9/2020 320.50 Windy Hill eucalyptus removal CDFW project fee
11/9/2020 318.09 Herbicide
11/9/2020 310.57 Keyboard and mouse combos x 7
11/9/2020 306.30 Shop Supplies - tire inflation gun, cable ties, rachet strap
11/9/2020 300.00 Frames for preserve photos in AO lobby
11/9/2020 299.00 Job posting - Facilities Maintenance Spec. - Your member Careers
11/9/2020 295.00 Recruitment Ad for Planner II - American Planning Assoc.
11/9/2020 285.00 Annual Int'l Institute of Municipal Clks Membership - Woodworth
11/9/2020 283.76 DHF - Supplies for Chicken Room Extension
11/9/2020 276.98 SA-Mt Um - Fencing Rental at Summit - United Site Services
11/9/2020 273.13 ZERO Cargo racks
11/9/2020 270.00 IRWA 2020 membership fees - Leong
11/9/2020 267.49 AO Water Service - CA Water
11/9/2020 264.48 M236/F550 - Supplies for New Vehicle
11/9/2020 259.72 M202 New Batteries
11/9/2020 254.89 Backflow preventer repair
11/9/2020 250.00 SRE Raffle Prizes - $25 gift cards - 10 employees
11/9/2020 249.26 DHF - More Supplies for Chicken Room
11/9/2020 249.14 UTV battery charger
11/9/2020 244.07 BCR Stables - Flexible Drainage Pipe
11/9/2020 240.28 BCR Phase I encroachment permit fees + transaction fee
11/9/2020 219.00 Annual Membership to Society Human Resource Mgmt - Basnight
11/9/2020 218.00 LexisNexis Online Subscription - October 2020
11/9/2020 211.93 M236 - Supplies
11/9/2020 211.65 Email Marketing - October 2020
11/9/2020 208.00 APWA Professional Membership Dues 2020-21 S.Reeves
11/9/2020 208.00 APWA Professional Membership Dues 2020-21 T.Werner
11/9/2020 207.46 Shipping fees - Midpen web store - October 2020
11/9/2020 202.63 DHF - Supplies for Chicken Room Extension
11/9/2020 200.00 Monthly subscriptions for remote admin tool - Logmein
11/9/2020 199.42 M214 Battery
11/9/2020 195.49 M31 Flat repair
11/9/2020 191.73 Hand sanitizer for restrooms
11/9/2020 191.50 Paint, Concrete and Supplies
11/9/2020 175.83 M213 - Supplies
11/9/2020 168.92 Sharp Copies - Printer Costs - 8-29-20 - 9-28-20
11/9/2020 164.87 Safety Helmet Order Cancelled - Credit Next Statement
11/9/2020 162.81 Supplies for M222
11/9/2020 158.03 Battery charger for AO vehicles
11/9/2020 157.64 Heavy duty grease gun, buckets, slim jim & universal file handle
11/9/2020 155.71 Water Service for Rentals - CA Water
11/9/2020 154.78 Thornewood secondary structure demolition legal classified ad
11/9/2020 151.15 Clinometer for Trail Layout
11/9/2020 151.10 Surge protectors and mouse pads
11/9/2020 150.00 Leave No Trace Education Membership - 10/6/20 - 10/5/21 - Storey
11/9/2020 148.60 Hand sanitizer dispensers
11/9/2020 147.60 Gloves for volunteers - 10 pairs
11/9/2020 145.00 Drivers License Medical Recertification Fee - employee
11/9/2020 145.00 Driver License medical recertification - employee
11/9/2020 141.93 Door lock replacement re-key style
11/9/2020 141.58 HIghway 17 stickers Q200
11/9/2020 140.14 Pens, write in the rain memo pads
11/9/2020 139.80 M207 - Side Lumber for Dump Bed
11/9/2020 139.12 Pin flags and wood plant stakes for Mt Um planting
11/9/2020 130.50 Materials for Welding and Shop
11/9/2020 128.90 Filing cabinet
11/9/2020 124.84 Hand sanitizer foam - SFO
11/9/2020 122.00 Hotel reservation for lead supervisor training - Mackessy
11/9/2020 120.71 Rain boots for NR Newt Survey and other field visits
11/9/2020 120.64 Poison oak soap
11/9/2020 113.42 Battery for Honda 500
11/9/2020 108.89 Parts for broken clay sewer pipe
11/9/2020 108.50 ADA sign brackets
11/9/2020 103.90 M207 Tool and Supplies
11/9/2020 100.00 SRE Years of Service $100 Amazon Gift Card - 1 employee
11/9/2020 100.00 SRE Years of Service $100 Amazon Gift Card - 1 employee
11/9/2020 99.42 Propane at 16060 Skyline Blvd
11/9/2020 99.00 CEQA Training - Management Analyst II - Shaw
11/9/2020 99.00 Cultural Resources Evaluation in CEQA Webinar - Leong
11/9/2020 99.00 CEQA Resources Evaluation Training for J.Mark
11/9/2020 99.00 CEQA Resources Evaluation Training for A. Peth
11/9/2020 99.00 AO Pest Control Service - 10/8
11/9/2020 97.92 Paper towels
11/9/2020 96.51 Water Service for Rentals - CA Water
11/9/2020 95.00 QSP License Renewal - Alexander
11/9/2020 94.48 Chain saw sharpening tool
11/9/2020 93.76 2020-2021 Property taxes for APN 510-48-001
11/9/2020 89.99 Hard Drive cloning software 3 licenses
11/9/2020 87.85 Oil change for A101
11/9/2020 87.30 Windshield Wipers
11/9/2020 84.32 RSA/Rhus Ridge - Parking Markers for Parking Lot
11/9/2020 84.05 DHF - Supplies for Fence Repair
11/9/2020 83.63 Trailer Hitch Parts
11/9/2020 83.56 Tire sealant and trailer hitch
11/9/2020 83.45 Clip nuts
11/9/2020 80.24 Sidewinder mower parts
11/9/2020 78.90 Concrete mix for Betsy Crowder Bench
11/9/2020 77.26 Water Service for Rentals - CA Water
11/9/2020 75.27 Chainsaw Bags and Arborist Throw Line
11/9/2020 75.00 LCW Webinar - changes to CA Family Rights Act - Wolfe
11/9/2020 75.00 MB Campsite pay phone
11/9/2020 74.29 Duty Belt - Miller
11/9/2020 72.74 Office Supplies - legal pads, white out, tape, binder clips
11/9/2020 65.68 Misc office supplies for onboarding new employees
11/9/2020 63.65 Monthly Shredding Services - September 2020
11/9/2020 63.33 Fabric/plastic boot covers used for contaminated Covid areas 1dz
11/9/2020 61.27 Supplies
11/9/2020 60.00 State of CA Dept of Pesticide Reg - Qualified Applicator Renewal
11/9/2020 59.01 Portable Filing System
11/9/2020 58.85 Wall mount for UPS battery for FFO shop
11/9/2020 54.85 RSA/Rhus Ridge - Rebar Spikes for Parking Bumpers
11/9/2020 54.60 M236 and M237 Vehicle Supplies
11/9/2020 54.52 Keys for HR office for Mindy
11/9/2020 54.11 Equipment for wildlife camera study
11/9/2020 54.04 Lower WH Parking Lot water
11/9/2020 53.64 Consultant services - programming for counter project
11/9/2020 53.52 Post hole digger
11/9/2020 53.45 M213 - Vehicle Supplies
11/9/2020 53.15 Size C batteries
11/9/2020 53.00 CEQA Notice of Exemption for Newt Mortality Study 9/24/20
11/9/2020 53.00 CEQA Notice of Exemption for New AO Design Review App 9/24/20
11/9/2020 52.32 Kick-off meeting with consultant - Coal Creek Fuel Break work
11/9/2020 52.28 Parts for Folger well
11/9/2020 51.65 MB Black Mountain Campground Utilities - City of Palo Alto
11/9/2020 51.43 Mailing of Tribal Outreach letters for CalFire VTP
11/9/2020 50.00 International Institute Municipal Clerks Webinar - Soria
11/9/2020 50.00 FFO backup internet service
11/9/2020 50.00 Public Notification System - Hubspot
11/9/2020 49.50 CEQA Cultural Resource Training - Hugg
11/9/2020 49.50 CEQA Cultural Resource Training - Casbara
11/9/2020 49.50 Online course CEQA Cultural Resources Evaluation - A.Nuri
11/9/2020 49.50 Cultural Resources Evaluation in CEQA for G. Laustsen
11/9/2020 49.50 Cultural Resources Evaluation in CEQA for - Borgesi
11/9/2020 49.50 Web Forms - October 2020
11/9/2020 49.50 Archaeology and CEQA training - Hebert
11/9/2020 49.49 Website site map creator + cross border fee
11/9/2020 49.00 Cultural Resources Evaluation in CEQA Webinar - Elish
11/9/2020 49.00 Social Media Posting - October 2020
11/9/2020 47.93 Motor-oil and Supplies
11/9/2020 46.92 Sign screws, spray paint
11/9/2020 46.16 Trailer tailgate pins
11/9/2020 43.46 BCR - Lumber/Materials
11/9/2020 42.30 Shipping Fees - Midpen web store items October 2020
11/9/2020 41.09 Angle grindercut off wheel
11/9/2020 40.31 Hand saw, hand broom, sign screw drivers
11/9/2020 39.00 Web PDF Viewer - October 2020
11/9/2020 37.00 Parts for folger well
11/9/2020 36.00 Gas Can
11/9/2020 35.89 Floor Mat for Computer Work Area Use - T.Hugg
11/9/2020 35.50 Caulk gun/adhesive for restroom repairs
11/9/2020 35.34 Drinking water
11/9/2020 34.25 Embroidered Midpen logo mens polo shirt for new Planner
11/9/2020 33.52 Trailer tailgate pins
11/9/2020 33.13 Waterproof case for iPad for Lead OST
11/9/2020 32.91 Shipping envelopes for webstore Q100
11/9/2020 32.67 DEF, fuel
11/9/2020 32.50 Mistaken personal charge - reimbursement sent to finance
11/9/2020 32.19 Programmer services-counter project using Visual Basic Language
11/9/2020 32.00 Mistaken personal charge to be reimbursed
11/9/2020 30.70 AO and FFO fiber
11/9/2020 30.36 ADA sign posts caps
11/9/2020 30.24 FOOSP - Water Conditioning Service - Rayne
11/9/2020 29.29 Web analytics software - October 2020
11/9/2020 29.20 Pizza for San Jose Conservation Corps. Crew
11/9/2020 29.00 Midpen Webstore - October 2020
11/9/2020 28.38 Trailer tailgate pins
11/9/2020 27.85 Emergency 12 volt light for AO1
11/9/2020 27.45 General office supplies for Planning Staff
11/9/2020 27.44 General office supplies for EC Staff
11/9/2020 27.24 SD card for camera
11/9/2020 25.00 Streaming software for virtual events
11/9/2020 24.99 Zapier - list signup management - October 2020 - Bieber
11/9/2020 22.88 Batteries for hand sanitizer
11/9/2020 21.80 Filing cabinet dividers
11/9/2020 20.62 M215 Windshield Wipers
11/9/2020 20.00 CAPIO Webinar - Storytelling: Telling Your Agencys Story - Lau
11/9/2020 20.00 Donuts for Crew on Staff Appreciation Day
11/9/2020 20.00 Training: UCD Managing Weeds in Grasslands etc.. - Winters
11/9/2020 19.65 Size AA batteries
11/9/2020 19.50 Black markers
11/9/2020 17.47 Water nozzle for M204
11/9/2020 17.45 Paper towels
11/9/2020 17.27 Office Door Sign for Brandon Stewart
11/9/2020 17.15 Keys for AO3 for Leslie Wright
11/9/2020 16.34 Office Supplies - colored post-its
11/9/2020 15.99 Forwarding of Midpen.org - 2020
11/9/2020 15.96 Ongoing monthly subscription - LA Times
11/9/2020 13.57 BCR Stables - Supplies for Flexible Drainage Pipe
11/9/2020 12.95 Design software - October 2020
11/9/2020 12.88 Clip nuts
11/9/2020 11.99 Monthly cost for BOD Dropbox account for Board Documents
11/9/2020 11.90 RSA/Rhus Ridge - Concrete Form Tube for Bike Rack
11/9/2020 11.50 AO3 Key Copies
11/9/2020 11.47 Brake fluid for M210
11/9/2020 11.00 Clip nuts
11/9/2020 9.29 Mistaken personal charge to be reimbursed
11/9/2020 8.72 Test purchase web store
11/9/2020 7.00 GIS Request Desk monthly subscription
11/9/2020 6.09 Drinking water for field Crew during heat advisory
11/9/2020 5.44 Gate pipe repairs - SFO
11/9/2020 5.44 Battery for Monte Bello Room remote control
11/9/2020 4.86 Water for equipment lower PC project
11/9/2020 4.49 Water supply for OSP visitors
11/9/2020 1.99 WFB anticipated credit for disputed fraud charge
11/9/2020 1.20 Facebook ad for virtual event promotion
11/9/2020 (8.72) Refund of test purchase web store
11/9/2020 (32.77) Partial refund for damage to cite filing cabinet
11/9/2020 (48.50) Credit - Cultural Resources Evaluation in CEQA Webinar - Leong
11/9/2020 (775.00) RWC Chamber of Commerce Progress Sem Reg Ref - Kersteen-Tucker
11/9/2020 (1,634.85) Reimbursed classes for D. Cowan due to broken arm
11/9/2020 (1,825.00) Refund-cancelled Diverse, Equitable, Inclusive Workplace Classes
11/9/2020 83,353.80 Wells Fargo Bank Credit Card October 2020
Rev. 1/3/18
R-20-20-153
Meeting 20-29
December 9, 2020
AGENDA ITEM 3
AGENDA ITEM
Increase of an Existing Half Time Position to a Full Time Position in the Legal Department
GENERAL MANAGER’S RECOMMENDATION
Adopt a resolution amending the Budget and Action Plan for Fiscal Year 2020-21 to increase the
existing half-time position of Risk Management Analyst to a full-time position in the Legal
Department
SUMMARY
The General Manager and General Counsel recommend increasing the Risk Management
Analyst position from a half-time position to a full-time position. This position will maintain the
risk management administration function in the Legal Department and reflect the growth in
workload since the initiation of the 2015 organizational restructuring to maintain a highly
efficient and effective risk management program for Midpeninsula Regional Open Space District
(District). If approved, staff would initiate recruitment as soon as possible. The budgeted cost
for this position in Fiscal Year 2020-21 (FY21) is $58,528 and the additional cost of increasing
the position to full-time is $59,225. While Board approval to permanently increase the position
from half-time to full-time is required, no budget adjustment is needed for FY21 because the
additional cost will be offset by savings in other areas of the current budget.
DISCUSSION
The District’s Budget and Action Plan for FY21 reflects the existing Legal Department staffing
level, which consists of three and one-half full time employees: General Counsel, Assistant
General Counsel, Executive Assistant/Legal Secretary, and a half-time Risk Management
Analyst. While District staffing levels have increased approximately 40% since 2013, the
staffing for the risk management coordination role has remained the same. There has been a
concurrent increase in the complexity and volume of work related to risk management.
Growth in the Legal Department and volume of risk management duties was not fully addressed
in the District’s 2015 Financial and Operational Sustainability Model (FOSM). With regard to
the staffing levels in the Legal Department, the relevant FOSM recommendation stated:
Recommendation 53: Maintain existing staffing levels within the General Counsel’s
Office; as workload expands with Measure AA implementation and the growth of
complex land acquisitions, evaluate opportunities for supplemental contracted and/or in-
house legal and risk management support over time.
R-20-153 Page 2
In recognition of the expanding need for attention to the risk management program, the
incumbent was reclassified from Risk Management Coordinator to Risk Management Analyst in
2019. The incumbent served half time in this role since 2008 and recently retired in October.
A variety of changes to the organization have increased the volume of work as well as the
required level of skill and diligence necessary to perform the risk management function. For
instance, there has been an increase in the number and complexity of contracts and associated
insurance coverages, the variety of District facilities requiring risk management coordination
(such as new commercial facilities, the corporation yard, and a greater variety of tenants in the
property management program). For the past several years, the incumbent also had the diligent
and consistent assistance of a very dedicated volunteer, who proved indispensable in helping to
catalog and file certificates of insurance and update the insurance database under the supervision
of the Risk Management Analyst.
Overall, the scope and volume of work under the responsibility of the half time Risk
Management Analyst (as currently assisted and augmented by volunteer work) has now reached
a level at which the position should be converted to a full-time position. Now is the appropriate
time to do so as the agency prepares to fill the recent vacancy.
The Risk Management Analyst’s role consists of: providing project management and
recordkeeping of first-party and third-party claims administration and reporting; serving as
liaison between the District and its risk pool (California Joint Powers Insurance Authority) and
associated insurance administrators; evaluating and maintaining evidence of insurance coverage
provided to the District and provided by the District to other entities; evaluating appropriate
coverages for contracts, leases, and permits; preparing underwriting reports; maintaining property
and asset catalogs; and compiling a variety of other reports to support the overall coordination
and administration of the risk management program District-wide.
Board Policy 3.04, Budget and Expenditure Authority, states the following with respect to the
budget: “The General Manager may not approve any expenditure that permanently increases the
District’s budget; any permanent budget increase must be approved by the Board… .” The same
policy states the following with respect to adding positions: “The General Manager may
authorize temporary positions, as needed, as long as expenses remain within the adopted budget.
The Board must approve the addition of any new permanent positions.”
The General Manager and General Counsel recommend that the Board approve the increase of
the Risk Management Analyst position to a full-time position, to ensure the continued quality
and appropriate administration of the District-wide risk management program.
FISCAL IMPACT
The annual cost for salary and benefits for increase from half-time to full-time position in FY21
is $59,225. Assuming that the position is filled during early 2021, it appears that there is
sufficient salary savings in the current fiscal year budget to cover early costs.
BOARD COMMITTEE REVIEW
There was no prior committee review of this item.
R-20-153 Page 3
PUBLIC NOTICE
Public notice was provided as required by the Brown Act.
CEQA COMPLIANCE
This item is not a project subject to the California Environmental Quality Act.
NEXT STEPS
Upon Board approval, staff will initiate the hiring process as soon as possible.
Attachment
1. Resolution Approving the Changes to the District Budget to reflect an increase from a
half-time to full-time Risk Management Analyst in the Legal Department
Responsible Department Head:
Hilary Stevenson, General Counsel
Stefan Jaskulak, Chief Financial Officer/Administrative Services Director
Prepared by:
Hilary Stevenson, General Counsel
Attachment 1
Resolutions/2020/20-__AmendFY21_RiskMgmtAnalyst 1
RESOLUTION NO. 20-__
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT AMENDING
THE FISCAL YEAR 2020-21 BUDGET TO INCREASE AN EXISTING
HALF TIME MANAGEMENT ANALYST POSITION IN THE LEGAL
DEPARTMENT TO A FULL TIME POSITION
WHEREAS, the Board of Directors (“Board”) adopted the Midpeninsula Regional Open
Space District Budget and Action Plan for Fiscal Year 2020-21 (“Budget”) via Resolution No.
20-18; and
WHEREAS, changes within the District, including an increase in staffing of
approximately 40% since 2013, and increasing demands related to the volume of risk
management coordination and heightened level of skill and diligence necessary to perform the
risk management function, warrant an increase of the existing half-time Management Analyst
position in the Legal Department to a full time position; and
WHEREAS, the General Manager and General Counsel recommend amending the
Budget to increase the existing half-time Management Analyst position in the Legal Department
to a full-time position to ensure the continued quality and appropriate administration of the
District-wide risk management program; and
WHEREAS, Board Policy 3.04, Budget and Expenditure Authority, requires that any
permanent increase to the District’s budget must be approved by the Board.
NOW, THEREFORE, the Board of Directors of Midpeninsula Regional Open Space
District does hereby resolve as follows:
1. The Budget and Action Plan for Fiscal Year 2020-21 shall be amended to increase the
half-time Management Analyst position in the Legal Department to a full-time
position.
2. Except as herein modified, the FY 2020-21 Budget and Action Plan, Resolution No.
20-18 as amended, shall remain in full force and effect.
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional
Open Space District on _____, 2020, at a regular meeting thereof, by the following vote:
* * * * * * * * * * * * * * * * * * * *
AYES:
NOES:
ABSTAIN:
ABSENT:
Attachment 1
Resolutions/2020/20-__AmendFY21_RiskMgmtAnalyst 2
ATTEST: APPROVED:
Jed Cyr, Secretary
Board of Directors
Karen Holman, President
Board of Directors
APPROVED AS TO FORM:
Hilary Stevenson, General Counsel
I, the District Clerk of the Midpeninsula Regional Open Space District, hereby certify
that the above is a true and correct copy of a resolution duly adopted by the Board of Directors
of the Midpeninsula Regional Open Space District by the above vote at a meeting thereof duly
held and called on the above day.
Jennifer Woodworth, District Clerk
Rev. 1/3/18
R-20-142
Meeting 20-29
December 9, 2020
AGENDA ITEM 4
AGENDA ITEM
Designation of the Oljon Trail in El Corte de Madera Open Space Preserve as part of the regional
Bay Area Ridge Trail
GENERAL MANAGER’S RECOMMENDATION
Designate the existing Oljon Trail in El Corte de Madera Creek Open Space Preserve as a new
segment of the regional Bay Area Ridge Trail in accordance with the intentions of the California
State Coastal Conservancy-Bay Area Ridge Trail Partner Grants
SUMMARY
The Midpeninsula Regional Open Space District (District) received grants in 2004 and 2011
from the California State Coastal Conservancy-Bay Area Ridge Trail Grant Program to
implement trail projects at El Corte de Madera Creek Open Space Preserve (Preserve)
(Resolution 04-39, Resolution 11-38). These funds were granted for the purpose of extending the
Bay Area Ridge Trail (Ridge Trail) in the Skyline region, a vision the District has shared since
1999. With the Oljon Trail at the Preserve completed and open to the public, the General
Manager recommends that the Board of Directors (Board) fulfill the original intent of the grants
by designating the 1.7-mile Oljon Trail as part of the regional Ridge Trail.
DISCUSSION
Located on the eastern side of the Preserve, the Oljon Trail spans 1.7 miles of multiuse
trail. It originates at the intersection of the Gordon Mill and Sierra Morena Trails, just south of
Skyline Boulevard near Bear Gulch Road. The trail descends for 0.4 miles before crossing the
Steam Donkey Trail and ultimately culminates at the Spring Board Trail intersection 1.3
miles further south (Attachment 1). At its northern extent, the Oljon Trail provides a critical
link to the broader Ridge Trail network in the Skyline region. Connecting to the Skyline Trail via
the Molder Trail, the Oljon Trail provides access to Huddart County Park and Purisima Creek
Redwoods Open Space Preserve to the north and Wunderlich County Park to the south
(Attachment 1).
The designation of the Oljon Trail as part of the regional Ridge Trail has been a goal of
the District for over twenty years. From its inception, the intent for this trail segment — referred
to as the “perimeter trail,” “Bear Gulch Trail,” “future/proposed Bay Area Ridge Trail,” and the
“Oljon Trail” throughout District records — has been in part to fill a critical gap in the Ridge
Trail (R-99-34, R-04-37, R-05-31, R-08-56, R-13-51). Board approval of the 2014 Open Space
Vision Plan Priority Action 4 and Measure AA (MAA) Portfolio 4 support the Ridge Trail vision
with El Corte de Madera Creek: Bike Trail and Water Quality Projects. This Vision Plan and
R-20-142 Page 2
MAA priority specifically calls out completing sections of the Ridge Trail: “Develop and carry
out plans for single-use biking/hiking trails, complete Ridge Trail gaps, and develop trail system
leading to parking area. Restore damaged trails for better water quality.”
In 2004, the District received a $31,000 grant from the California State Coastal Conservancy-
Bay Area Ridge Trail Grant Program in support of the El Corte de Madera Creek Open Space
Preserve Watershed Protection Program (R-04-37, R-05-31). The grant application states that the
grant’s purpose is to build a segment of Ridge Trail at the Preserve and depicts the trail segment
on an attached map. Furthermore, the grant resolution includes the following stipulation:
“WHEREAS, the project is compatible with the intention of the grant program to encourage
government agencies to plan new segments of the Bay Area Ridge Trail” (Attachment 2,
Resolution 04-39).
In 2009, the District prepared an Initial Study/Mitigated Negative Declaration (IS/MND) for
the El Corte de Madera Parking/Staging Area and Trail Project. The IS/MND includes the
completion of the “perimeter trail” and states the vision for this trail as a future segment of the
Ridge Trail. In 2010, the Board adopted the IS/MND alongside an amendment to the Preserve’s
Use and Management Plan (R-10-35). Both documents explicitly identify the trail
segment described in the Initial Study and previously referred to as the “perimeter trail” as
“future Bay Area Ridge Trail” both in text and on a map.
In 2011, the District received a $282,000 grant from the California State Coastal Conservancy-
Bay Area Ridge Trail to complete the trail construction and habitat restoration projects in the
Preserve (Attachment 3, Resolution 11-38, Agreement Number 11-096). The California State
Coastal Conservancy-Bay Area Ridge Trail Grant Program sought to encourage government
agencies and nonprofit organizations to plan, acquire, and construct new segments of the Ridge
Trail (R-11-116).
The Board approved the renaming of this trail segment as the Oljon Trail to honor the Ohlone
people in 2013 (R-13-51). The Skyline Field Crew finalized construction of the Oljon Trail
during the 2019-2020 fiscal year, and the trail was opened to the public in September of
2019. Designating the Oljon Trail as part of the regional Bay Area Ridge Trail will fulfill the
original vision for this trail, Vision Plan priority action, and Measure AA, and the intentions of
the Board-approved 2004 and 2011 California State Coastal Conservancy-Bay Area Ridge
Trail grants.
Project Support
The Bay Area Ridge Trail Council (Ridge Trail Council) continues to provide support for this
designation.
FISCAL IMPACT
The General Manager’s recommendation has no immediate fiscal impact. Ridge Trail
medallions, which have been provided free of charge from the Ridge Trail Council, will be
installed by Land and Facilities department staff.
R-20-142 Page 3
BOARD COMMITTEE REVIEW
This item was not previously reviewed by a Board committee. It is being brought directly to the
Board to fulfill a long-standing grant fund commitment.
PUBLIC NOTICE
Public notice was provided as required by the Brown Act. Members of the public on the El Corte
de Madera Creek Preserve interested parties list were also notified.
CEQA COMPLIANCE
While the designation of the Oljon Trail as a segment of the Ridge Trail is not a project subject
to the California Environmental Quality Act (CEQA), the construction of the Oljon Trail and its
designation as part of the Ridge Trail were previously identified and analyzed under the El Corte
de Madera Parking/Staging Area and Trail Project IS/MND (2010).
NEXT STEPS
Following Board approval of this designation, staff will implement the designation of the Oljon
Trail as a segment of the Bay Area Ridge Trail, including:
• Updating District maps and website;
• Installing Ridge Trail medallions on trail signposts; and
• Preparing an update for the Quarterly Newsletter.
Concurrently, the Ridge Trail Council will work to formally designate the Oljon Trail according
to their internal processes. Ridge Trail Council staff will draft a memo stating the trail’s
designation and multi-use status, as well as the District’s commitment to its long-term
stewardship. The Ridge Trail Council’s Executive Committee approved the Oljon Trail’s
designation at their November 12, 2020 meeting.
Attachment)
1. Map of the Oljon Trail and Regional Bay Area Ridge Trail
2. Resolution 04-39
3. Resolution 11-38
Responsible Department Head:
Jane Mark, AICP, Planning
Prepared by:
Arianna Nuri, Planner I, Planning
Graphics prepared by:
Fran Lopez Tapia, GIS Technician, IST
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Attachment 1
RESOLUTION NO. 04 - 39
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
APPROVING THE APPLICATION FOR A GRANT FROM
THE BAY AREA RIDGE TRAIL – COASTAL CONSERVANCY
PROPOSITION 40 GRANTS PROGRAM FOR
PLANNING AND DESIGN OF PUBLIC ACCESS IMPROVEMENTS AT
EL CORTE DE MADERA CREEK OPEN SPACE PRESERVE
_____________________________________________________________________________
WHEREAS, the voters of California passed Proposition 40, the 2.6 billion "California Clean
Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002", providing
matching funds to the State of California and its appointees for acquiring lands and developing
facilities for public outdoor recreation purposes; and
WHEREAS, the State Coastal Conservancy and the Bay Area Ridge Trail Council is
responsible for administration of the program within the State, setting up necessary rules and
procedures governing application by local agencies under the program; and
WHEREAS, said adopted procedures established by the State Coastal Conservancy and the
Bay Area Ridge Trail Council require the applicant to certify by resolution the approval of
applications, the acceptance of the grant if awarded, and execution of the grant contract and related
documents; and
WHEREAS, the project is compatible with the intention of the grant program to encourage
government agencies to plan new segments of the Bay Area Ridge Trail.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Midpeninsula
Regional Open Space District hereby:
Approves the filing of an application for Bay Area Ridge Trail Council – Coastal Conservancy
assistance; and
Certifies that said agency has matching funds from Midpeninsula Regional Open Space District’s
General Fund and can finance 100 percent of the project, half of which will be reimbursed; and
Certifies that the project is compatible with the land use plans of those jurisdictions immediately
surrounding the project; and
Appoints the General Manager as agent of the Midpeninsula Regional Open Space District to
conduct all negotiations and execute and submit all documents including, but not limited to,
applications, agreements, amendments, billing statements, and so on, which may be necessary for the
completion of the aforementioned project.
** * * * * * * * * * * * *
Attachment 2
Attachment 3
Attachment 3
Attachment 3
Rev. 1/3/18
R-20-144
Meeting 20-29
December 9, 2020
AGENDA ITEM 5
AGENDA ITEM
Application for Grant Funding from the Wildlife Conservation Board
GENERAL MANAGER’S RECOMMENDATION
Adopt a resolution authorizing the General Manager to submit an application for grant
funding from the Wildlife Conservation Board and to negotiate a grant funding agreement for
$5,000,000 to support the planning and design of the Highway 17 Wildlife and Regional Trails
Crossing Project.
SUMMARY
The General Manager recommends that the Midpeninsula Regional Open Space District
(District) adopt a resolution authorizing the General Manager to submit an application to the
Wildlife Conservation Board (WCB). This report provides a description of the state funds
available through the WCB and the approval process for use of the funds.
DISCUSSION
The Fiscal Year 2020-21 State Budget passed by the state legislature and signed by the Governor
on June 29, 2020 reappropriated $10,000,000 in funding to the WCB. The original $10 million
appropriation requested by Senator Beall was to support San Jose Water Company (SJWC) land
acquisitions. The Senator secured an expanded use of the funds at the time of reappropriation to
include a broader array of public benefits that align with the District’s mission. The September
30, 2020 Legislative Report to the Board (Attachment 1) noted, “This reappropriation did two
important things: first, it extended the encumbrance or expenditure deadline for the funds to June
30, 2025; and second, it expanded the eligibility of projects to include the acquisition, planning,
design, development, public access, rehabilitation, restoration, protection, and expansion of
wildlife corridors and open space, including projects to improve connectivity and reduce barriers
between habitat areas in the Upper Guadalupe, Los Gatos Creek, Saratoga Creek and adjacent
areas from the San Jose Water Company and other land owners.”
In late 2020, the District met with the WCB Executive Director to discuss priorities for use of the
funding, which will be administered by WCB through a non-competitive grant process. The
proposed use of $5 million of the funding will be for planning and design components of the
Highway 17 Wildlife and Regional Trails Crossing Project. The District must complete grant-
funded work by March 31, 2025 in order to submit for reimbursement prior to June 30, 2025.
R-20-144 Page 2
WCB requires a resolution from the District’s Board of Directors prior to reviewing the project
and potentially awarding funds at the February 2021 WCB Board meeting. The resolution
(Attachment 2) authorizes the General Manager or her designee to sign the application for WCB
funds and to execute a grant agreement for the funding.
FISCAL IMPACT
Upon review and approval by WCB, this funding opportunity would have a positive impact of up
to $5,000,000.
BOARD COMMITTEE REVIEW
This report was not previously reviewed by a committee.
PUBLIC NOTICE
Public notice was provided as required by the Brown Act.
CEQA COMPLIANCE
Submitting grant applications to secure funding is not subject to the California Environmental
Quality Act (CEQA). The WCB requires that grantees comply with CEQA and certify that the
CEQA analysis for any project encompasses all aspects of the work to be completed with grant
funds.
NEXT STEPS
If approved by the Board, District staff would complete a WCB grant application for the
Highway 17 Crossing Planning and Design Project and the General Manager would submit the
application to the WCB for consideration of a funding award at the February 2021 WCB Board
meeting. Upon review and approval by WCB, District staff would work with WCB staff to
develop a grant agreement for grant funding and the General Manager would execute the
agreement.
Attachments
1. Legislative Report to the Board – September 30, 2020.
2. Resolution authorizing the General Manager to submit an application for Wildlife
Conservation Board grant funding and to negotiate a grant funding agreement for
$5,000,000.
Responsible Department Head:
Stefan Jaskulak, Chief Financial Officer, Administrative Services
Prepared by:
Deborah Hirst, Grants Program Manager, Administrative Services
Contact person:
Jordan McDaniel, Senior Grants and Procurement Technician, Administrative Services
From: Environmental & Energy Consulting
To: Midpeninsula Regional Open Space District
Date: September 30, 2020
Re: EEC 2020 Post-Session Update
As the 2020 legislative session draws to a close, below is a summary of the current status of
Midpeninsula Regional Open Space District’s (Midpen) legislative and Budget priorities. As
a reminder, the California Budget deadline previously passed and all Fiscal Year 2020-2021
Budget conversations and decisions have concluded. The deadline for the Governor to sign
or veto bills was September 30th; therefore, the fate of all bills introduced in the 2020-2021
legislative session have been determined. All chaptered bills will go into effect on January
1st, 2021 unless they included an urgency clause.
California Budget: Conservation Priorities
Governor Newsom signed the FY 20-21 State Budget on June 29th. The final 2020 Budget
Act was a $202.1 billion spending plan to strengthen emergency response, protect public
health and safety, and promote economic recovery while closing a $54.3 billion budget
shortfall caused by the COVID-19 recession. Key takeaways of the final budget include:
o Retention of baseline funding for the Department of Fish and Wildlife and the
Department of Parks and Recreation;
o Retention of funding for the Habitat Conservation Funding;
o Inclusion of $4M for the Cutting the Green Tape Initiative at the California Natural
Resources Agency; and
o Reappropriation and expansion of the original $10M to the Wildlife Conservation
Board (WCB) to support San Jose Water Company (SJWC) land acquisitions.
Senator Beall secured a reappropriation and expansion of the $10M to the Wildlife
Conservation Board in the FY20-21 Budget. This reappropriation did two important things:
first, it extended the encumbrance or expenditure deadline for the funds to June 30, 2025;
and second, it expanded the eligibility of projects to include the acquisition, planning,
design, development, public access, rehabilitation, restoration, protection, and expansion of
wildlife corridors and open space, including projects to improve connectivity and reduce
barriers between habitat areas in the Upper Guadalupe, Los Gatos Creek, Saratoga Creek
and adjacent areas from the San Jose Water Company and other land owners. Midpen has
been working closely with WCB to coordinate the distribution of these funds, and most
immediately plans to use a portion of these funds to support the acquisition of the 182 El
Sereno acquisition from SJWC along with several components of the Highway 17 project.
Cap-and-Trade/Greenhouse Gas Reduction Fund
ATTACHMENT 1
Governor Newsom’s Greenhouse Gas Reduction Fund (GGRF) final proposal for the FY20-
21 Budget was significantly altered from previous proposals in response to COVID-19
impacts and the anticipated recession. Due to the anticipation of significantly reduced and
unstable Cap-and-Trade auction revenues, the Governor introduced a “pay-as-you-go” Cap-
and-Trade funding calculation that would establish quarterly appropriations from the
Greenhouse Gas Reduction Fund. His proposal also prioritized the following three
investments, which would need to be made whole prior to appropriating funds to any
additional priorities:
1) Forest Health and Fire
2) Air Quality
3) Safe Drinking Water
With this proposal, CalFire would receive funding for the Forest Health and Fire Prevention
programs. The Governor has expressed interest fuel load management as one of his
wildfire priorities to be addressed within this.
Ultimately, because Cap-and-Trade auction revenues were reported at very low numbers, it
resulted in the assumption that no new funds would be available for new appropriations.
The FY20-21 GGRF appropriations, including the three investments cited above, were
completely deferred until next year. We can assume the Governor's office will work off the
their proposal from May, but they have not said anything publicly.
Policy Measures
After an unconventional and chaotic legislative year, during which public officials and
stakeholders were faced with reacting to the unprecedented impacts of COVID-19 in real-
time, the outcomes of Midpen’s high priority bills that moved forward include:
•SB 1372 (Monning) Wildlife corridors and connectivity: Wildlife and Biodiversity
Protection and Movement Act of 2020
o Midpen Position: Support, Priority 1
o Outcome: Held in Committee
•AB 1788 (Bloom) Pesticides: use of second-generation anticoagulant rodenticides
o Midpen Position: Support, Priority 1
o Outcome: Signed
•AB 1190 (Irwin) Unmanned aircraft: state and local regulation: limitations
o Midpen Position: Opposed, Priority 1
o Outcome: Dead
•AB 3005 (R. Rivas) Leroy Anderson Dam and Reservoir: permitting, environmental
review, and public contracting
o Midpen Position: Support, Priority 2
o Outcome: Vetoed
•SB 940 (Beall) Housing Crisis Act of 2019: City of San Jose.
o Midpen Position: Support, Priority 2
o Outcome: Signed
ATTACHMENT 1
" S B 7 9 5 ( B e a l l ) E c o n o m i c d e v e l o p m e n t : h o u s i n g : w o r k f o r c e d e v e l o p m e n t : c l i m a t e
c h a n g e i n f r a s t r u c t u r e
o M i d p e n P o s i t i o n : S u p p o r t , P r i o r i t y 2
o O u t c o m e : D e a d
" A B 2 9 5 4 ( R i v a s ) C a l i f o r n i a G l o b a l W a r m i n g S o l u t i o n s A c t o f 2 0 0 6 : c l i m a t e g o a l :
n a t u r a l a n d w o r k i n g l a n d s
o M i d p e n P o s i t i o n : S u p p o r t , P r i o r i t y 2
o O u t c o m e : D e a d
" S B 1 4 4 8 ( B r a d f o r d ) F i r e p r e v e n t i o n : e l e c t r i c a l c o r p o r a t i o n s : w i l d f i r e m i t i g a t i o n
p l a n s : w o r k f o r c e d i v e r s i t y
o M i d p e n P o s i t i o n s : S u p p o r t , P r i o r i t y 2
o O u t c o m e : D e a d
S B 1 3 7 2 , a u t h o r e d b y S e n a t o r M o n n i n g , w a s i n t r o d u c e d b y i n p a r t n e r s h i p w i t h t h e W i l d l i f e
C o r r i d o r W o r k i n g G r o u p ( W C W G ) , w h o s e m e m b e r s h i p i n c l u d e s M i d p e n . T h e o v e r a l l g o a l o f
S B 1 3 7 2 w a s t o f a c i l i t a t e t h e m i g r a t i o n o f c r i t i c a l w i l d l i f e p o p u l a t i o n s b y i m p r o v i n g
c o o r d i n a t i o n b e t w e e n r e l e v a n t a g e n c i e s a n d e n s u r i n g w i l d l i f e c o r r i d o r s a r e i n t e g r a t e d i n t o
C a l T r a n s p r o j e c t s . C u r r e n t l y , C a l t r a n s r e c o g n i z e s p r o j e c t s w i t h i n a R e g i o n a l C o n s e r v a t i o n
I n v e s t m e n t S t r a t e g i e s ( R C I S ) , b u t b e c a u s e R C I S s a r e n o t s t a t e w i d e , m a n y p r o j e c t s a r e l e f t
o u t . S B 1 3 7 2 l o o k e d t o s o l v e t h i s b y d e v e l o p i n g a n a l t e r n a t i v e s t r a t e g y . U n f o r t u n a t e l y , d u e
t o t h e n a t u r e o f t h e 2 0 2 0 l e g i s l a t i v e e n v i r o n m e n t , a n d t h e r e s t r i c t i o n s p l a c e d o n t h e
l e g i s l a t u r e t o l i m i t t h e i r b i l l p a c k a g e s t o u r g e n t o r n o - c o s t b i l l s , S B 1 3 7 2 w a s h e l d i n
c o m m i t t e e . T h e W C W G i s c o m m i t t e d t o r e - i n t r o d u c i n g t h i s b i l l i n 2 0 2 1 a n d c o n t i n u i n g
c o n v e r s a t i o n s w i t h t h e r e l a t e d A g e n c i e s .
A B 1 7 8 8 , a u t h o r e d b y A s s e m b l y m e m b e r B l o o m , i s a t w o - y e a r b i l l t h a t w a s i n t r o d u c e d i n
2 0 1 9 . A B 1 7 8 8 w o u l d p l a c e r e s t r i c t i o n s o n t h e u s e o f s e c o n d g e n e r a t i o n a n t i - c o a g u l a n t
r o d e n t i c i d e s , w h i c h h a v e b e e n s h o w n t o b e f a t a l t o w i l d l i f e . T h i s b i l l w a s s u p p o r t e d b y t h e
A B 1 7 8 8 C o a l i t i o n w h o s e m e m b e r s h i p i n c l u d e s M i d p e n . A f t e r p a s s i n g o u t o f t h e l e g i s l a t u r e ,
A B 1 7 8 8 w a s p r e s e n t e d t o t h e G o v e r n o r o n O c t o b e r 4 t h . G o v e r n o r N e w s o m s i g n e d t h e b i l l
o n S e p t e m b e r 2 9 t h , a n d i t w i l l g o i n t o e f f e c t o n J a n u a r y 1 , 2 0 2 0 .
A B 1 1 9 0 , a u t h o r e d b y A s s e m b l y m e m b e r I r w i n , w a s i n t r o d u c e d i n 2 0 1 9 a n d w o u l d p r o v i d e
a f r a m e w o r k f o r l o c a l a g e n c i e s t o r e g u l a t e t h e u s e o f u n m a n n e d a i r c r a f t s y s t e m s a n d
p r o v i d e q u a l i f i e d i m m u n i t y t o l o c a l a g e n c i e s o p e r a t i n g d r o n e r e c r e a t i o n a r e a s . M i d p e n
t o o k a n o p p o s e p o s i t i o n t o t h i s b i l l b e c a u s e i t w o u l d r e s t r i c t M i d p e n s r i g h t s t o r e g u l a t e t h e
u s e o f p o t e n t i a l l y d e s t r u c t i v e d r o n e s o n M i d p e n p r o p e r t y . A f t e r m a n y c o n v e r s a t i o n s w e
w e r e a b l e t o s u c c e s s f u l l y b l o c k A B 1 1 9 0 f r o m m o v i n g d u r i n g t h e 2 0 1 9 - 2 0 2 0 l e g i s l a t i v e
s e s s i o n .
F u n d i n g M e a s u r e s
S e v e r a l l a r g e - s c a l e c o n s e r v a t i o n f u n d i n g m e a s u r e s w e r e a t t e m p t e d d u r i n g t h i s p a s t
l e g i s l a t i v e s e s s i o n a s a n o p p o r t u n i t y t o r e v i t a l i z e a n d s t i m u l a t e c o m m u n i t i e s s u f f e r i n g f r o m
t h e e c o n o m i c , h e a l t h a n d s a f e t y , a n d i n j u s t i c e s r e s u l t i n g f r o m C O V I D - 1 9 , w i l d f i r e s , a n d
c l i m a t e c h a n g e . U n f o r t u n a t e l y , b e c a u s e l e g i s l a t o r s w e r e f o r c e d t o r e s p o n d t o t h e e x t r e m e
A T T A C H M E N T 1
and unprecedented district impacts of these emergencies, coupled with the precarious
nature of the legislative process due to COVID-19, all of them ultimately failed to pass
during the 2019-2020 session.
Several 2020 state bond measures were introduced by legislative members, including SB
45 (Allen), AB 352 (E.Garcia), AB 1298 (Mullin), and AB 3256 (E.Garcia). Although strong
and sustained efforts were made by legislative leadership and stakeholders to place a bond
on the 2020 ballot as a critical economic stimulus tool, ultimately none of the bond
measures made it to the Governor’s desk, largely due to the compressed and volatile
legislative timeline.
When it became clear that it was unlikely that the legislature would approve a bond for the
November ballot the Assembly and Senate introduced a joint $100B Economic Stimulus
Plan. This plan would offer economic recovery without raising taxes through mechanisms
including Senator Hertzberg’s novel tax-incentive proposal. Unfortunately, the legislature
was also unable to fully entertain this proposal due to the impacts of the pandemic.
Immediately thereafter, as the legislative session was winding down, wildfires began
erupting throughout the state. Attention on an economic stimulus plan shifted to a wildfire
funding package and interested stakeholders across the state came together to develop
policy language. The package was eventually introduced as AB 1659 (Bloom). The bill was
introduced a few days before the last day of session, but its last-minute introduction led to
its failure to be heard on the Senate Floor.
ATTACHMENT 1
Resolutions/2020/20-XX_FundingWCB_Hwy17 1
RESOLUTION NO. 20-__
RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT APPROVING THE APPLICATION
FOR A WILDLIFE CONSERVATION BOARD GRANT FOR THE
HIGHWAY 17 CROSSINGS PLANNING AND DESIGN PROJECT
WHEREAS, funds were made available to the Wildlife Conservation Board (“WCB”)
for the enhancement or restoration of fish and wildlife habitat and for the development of public
access facilities for hunting, fishing or other wildlife-oriented recreational uses; and
WHEREAS, Midpeninsula Regional Open Space District (“District”) intends that the
Highway 17 Crossings Planning and Design Project will complete construction designs and
permits for a state highway regional trail overcrossing, wildlife corridor undercrossing, and up to
5.4 miles of related directional fencing; and
WHEREAS, the project will reduce vehicle-wildlife collisions and increase driver and
passenger safety on a key commuter route between Santa Cruz and Silicon Valley; and
WHEREAS, construction of the undercrossing will ensure habitat connectivity and safe
passage for wildlife, linking over 30,000 acres of habitat including four District open space
preserves, three Santa Clara County parks, and private watershed lands of San Jose Water
Company.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the
Midpeninsula Regional Open Space District hereby:
1. Approves the filing of an application for funding from the WCB.
2.Certifies the District will comply with all federal, state and local environmental, public
health, and other appropriate laws and regulations applicable to the project and will
obtain or will ensure that the other project partners obtain all appropriate permits
applicable to the project.
3. Further commits to the terms and conditions specified in the grant agreement.
4. Authorizes the General Manager or designee as a representative of the District to conduct
negotiations, execute, submit and sign all documents including but not limited to
applications, agreements, amendments, payment requests, and other documents which
may be necessary to administer grant funding for the proposed project.
* * * * * * * * * * * * * * * * * * *
ATTACHMENT 2
Resolutions/2020/20-XX_FundingWCB_Hwy17 2
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional
Open Space District on _______, 2020, at a regular meeting thereof, by the following roll call
vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
Jed Cyr, Secretary
Board of Directors
Karen Holman, President
Board of Directors
APPROVED AS TO FORM:
Hilary Stevenson, General Counsel
I, the District Clerk of the Midpeninsula Regional Open Space District, hereby certify
that the above is a true and correct copy of a resolution duly adopted by the Board of Directors
of the Midpeninsula Regional Open Space District by the above vote at a meeting thereof duly
held and called on the above day.
Jennifer Woodworth, District Clerk
R-20-147
Meeting No. 20-29
December 9, 2020
AGENDA ITEM 6
AGENDA ITEM
Second Reading and Adoption of the Board Compensation Ordinance 20-02
GENERAL MANAGER’S RECOMMENDATION
1. Waive reading and adopt an Ordinance 20-02 increasing Board compensation from $100.00
to $105.00 per meeting pursuant to Public Resources Code section 5536.
2. Amend Board Policy 6.06 to reflect the increase in compensation resulting from the Board
compensation ordinance.
SUMMARY
A recent change to the Midpeninsula Regional Open Space District’s (District) enabling
legislation allows the Board of Directors (Board) to increase the per meeting compensation for
Board members by an amount not to exceed 5% annually, by ordinance. This item consists of
the second reading and adoption of an ordinance increasing the per meeting compensation from
$100.00 to $105.00. The ordinance was reviewed by the Board of Directors (“Board”) during
first reading on November 18, 2020 (see report R-20-139) with no changes requested by the
Board or the public. Attachment 1 contains the final language of the ordinance proposed for
adoption. The proposed increases are expected to fall within the Board-approved Fiscal Year
2021 (FY21) budget.
DISCUSSION
Prior to January 1, 2019, California Public Resources Code section 5536 set the compensation
for Board members at $100 per meeting with a maximum of $500 or five meetings per month.
This level of Board compensation had not changed since 1984. Based on US inflation
calculators, the cumulative rate of inflation during this timeframe has been approximately 150%.
Although compensation has not changed in 34 years, the scope of Board member responsibilities
and the complexity of policy oversight has substantially grown:
•Since 1984, the District’s budget has grown from $13.9 million to $81 million.
•The District secured a substantial second funding source for capital projects in the form
of a $300 million general obligation bond passed by voters in 2014.
•Acres of land preserved by the District have grown from 18,300 acres to over 64,500 acres.
•The District now operates in three counties, including the San Mateo County coast, while
it previously had operated in only two counties and was limited in San Mateo County to
the southern bayside area.
R-20-147 Page 2
• The District’s constituent population grew from 570,000 to 770,000.
In June 2018, the District supported AB 2329 (Obernolte), the purpose of which was to provide
Board members with enhanced latitude in increasing the number of compensable meetings and
per meeting compensation amount. Assemblymember Obernolte expressed the intent of the
legislation as follows:
"This bill puts special districts on the same playing field. Many special districts are operated
with small boards of directors that work diligently to make their special district as useful to
the community as possible. This important work takes board members' time. Allowing
special districts to be allowed the same amount of meetings a month will help level the
playing field for those districts that currently have lower limits. Additionally, allowing
districts the authority to slightly adjust their compensation annually will help districts assess
for themselves what is fair and what their district can handle, rather than raising the
compensation statewide."
The new law, which took effect January 1, 2019, enables Board members to increase the number
of compensable meetings from five to six per month, and to increase the per meeting
compensation amount not to exceed 5% annually.
Increase in number of compensable meetings per month
In November 2017, the Board amended Board Policy 6.06 to expand the definition of
compensable meetings to include Board field trips to District project locations, trainings required
by State law, and celebratory ribbon cuttings for projects on District lands. The Board also
determined that briefings with staff on District projects, and Board member attendance at
meetings of outside agencies where the Board member is an appointed representative, would be
considered compensable. Due to the increase in projects requiring Board committee
consideration, the number of meetings requiring Board member attendance increased
approximately 40% from 2017 to 2018. During 2019, Board members typically attended
between five and nine compensable meetings per month with numerous months at six or more
meetings for individual Board members.
Due to the change in the law effective January 1, 2019, the Board adopted amendments to Board
Policy 6.06 Meeting Compensation, Reimbursement of Authorized Necessary Expenses for
Performance of Official Duties, and Adoption of Ethics Training Requirements Pursuant to
Government Code Section 53232 et seq. (AB1234) to allow Board members to be compensated
for up to six meetings per month, supported by written findings that more than five meetings per
month are necessary for the effective operation of the District. These findings are required to be
made annually. The findings were made again in January 2020 to allow Board members to be
compensated for up to six meetings per month.
Ordinance increasing the per meeting compensation from $100 to $105
In addition to increasing the number of compensable meetings, the amendments to Public
Resources Code section 5536 allow the District to adopt an ordinance increasing the per meeting
compensation by up to 5% annually. The ordinance must be adopted pursuant to the procedure
used by water districts (Water Code section 20200 et seq) that includes multiple opportunities for
the public to provide input through a public hearing and a petition process. The procedure for
adopting a compensation increase is:
R-20-147 Page 3
• Publish a notice of the public hearing in the local newspaper once per week for two
consecutive weeks.
• Hold a public hearing (first reading), and adopt the ordinance at a subsequent meeting
(second reading)
• Within 60 days after adoption, the public may petition for reconsideration of the
ordinance. In this case, the Board must reconsider the ordinance before enacting it.
In January 2019, the Board deferred its decision on the issue of the 5% increase to determine
whether other special districts were updating compensation in response to the recent legislation.
In July 2019, East Bay Regional Park District (another agency organized under PRC section
5500) adopted an ordinance increasing its per meeting Board compensation amount by 5%.
In January 2020, the Board directed the General Manager and General Counsel to prepare this
ordinance to increase the per meeting compensation from $100.00 to $105.00 in accordance with
state law. The new law specifies that the Board may increase its compensation not more than 5%
for each calendar year following the operative date of the last adjustment. General Counsel
recommends that the Board enact an increase as a “baseline” in response to the 2019 changes to
the law. The Board may consider enacting subsequent compensation increases provided that the
increase does not exceed 5% per calendar year.
On April 19, 2020, the Legislative, Funding and Public Affairs Committee considered other
changes to the Board policy to further define compensable meetings. These proposed
amendments to Board Policy 6.06 will be brought to the full Board for consideration in January
2021.
FISCAL IMPACT
The FY21 budget provides up to $42,000 for Board meeting compensation, and as of September
30, 2020 has $33,000 remaining for the current fiscal year. This amount should be sufficient to
compensate Board members for the remainder of the fiscal year and is contingent upon the
number of compensable meetings held per month. If it is later determined that additional funds
are required, a budget adjustment may be requested.
BOARD COMMITTEE REVIEW
The Board of Directors directed the General Manager and General Counsel to prepare this
compensation ordinance in January 2020. Additionally, at its April 19, 2020 meeting, the
Legislative, Funding, and Public Affairs Committee (LFPAC) discussed the topic of Board
compensation, including refining the definition of compensable meetings in Board Policy 6.06.
LFPAC approved forwarding a recommendation to the Board of Directors to refine language in
the Policy, which the Board will consider in January 2021.
PUBLIC NOTICE
Public notice of the Ordinance was published in the newspaper once a week for two weeks
leading up to the November 18, 2020 first reading of the ordinance, in accordance with Public
Resources Code section 5536 and Water Code section 20203. If adopted, the ordinance will be
published within 30 days of adoption in accordance with Public Resources Code section 5547.
R-20-147 Page 4
Public notice was also provided pursuant to the Brown Act.
CEQA COMPLIANCE
This item is not a project subject to the California Environmental Quality Act.
NEXT STEPS
If adopted, the ordinance will go into effect 60 days after adoption.
ATTACHMENTS:
1. Ordinance
2. Board Policy 6.06
Responsible Department Head:
Ana Ruiz, General Manager
Prepared by:
Hilary Stevenson, General Counsel
Ordinances/2020/20-02_BoardCompensation 1
ORDINANCE NO. 20-02
ORDINANCE OF THE BOARD OF DIRECTORS OF THE
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT INCREASING
THE COMPENSATION AMOUNT FOR BOARD MEMBER MEETING
ATTENDANCE TO $105 PER MEETING
WHEREAS, the Midpeninsula Regional Open Space District (“District”) is a special
district duly organized and existing under and pursuant to California Public Resources Code
section 5500 et seq.; and
WHEREAS, California Public Resources Code section 5536 sets forth the authority for
establishing compensation for members of the District’s Board of Directors (Board); and
WHEREAS, the current Board member compensation is one hundred dollars ($100) per
day for attendance at a meeting of the Board, up to a maximum of six (6) days per calendar
month; and
WHEREAS, the one hundred dollars ($100) per day amount has not been increased since
1984; and
WHEREAS, the size and complexity of the District has increased significantly since
1984, which in turn means that the responsibilities and time commitment for Board service is
greater than ever; and
WHEREAS, section 5536 was amended in 2018 to allow the Board of Directors, by
ordinance pursuant to the procedures set forth in California Water Code section 20200 et seq., to
increase the amount of compensation received for attending meetings of the Board; and
WHEREAS, California Water Code section 20202 provides that an increase in
compensation may not exceed an amount equal to five percent (5%) for each calendar year; and
WHEREAS, the Board desires to establish the amount of compensation by way of this
Ordinance in accordance with the provisions of state law; and
WHEREAS, in accordance with California Water Code section 20203 and California
Government Code section 6066, a public hearing was held on November 18, 2020, at 7:00 pm,
and a notice of said hearing was duly published in the newspaper once a week for two weeks
prior to the public hearing.
NOW THEREFORE, The Board of Directors of the Midpeninsula Regional Open
Space District does ordain as follows:
SECTION 1.
A. The Midpeninsula Regional Open Space District desires to compensate members of the
Board of Directors for attendance at its meetings, in accordance with California law and
Board policy.
Attachment 1
Ordinances/2020/20-02_BoardCompensation 2
B. The amount of compensation to be received by the Board of Directors for each day’s
attendance at a meeting of the Board shall be increased five percent (5%) from one
hundred dollars ($100) to one hundred and five dollars ($105) per day.
SECTION 2. Upon adoption of this Ordinance, Board Policy 6.06 (Meeting Compensation,
Reimbursement of Authorized Necessary Expenses for Performance of Official Duties, and
Adoption of Ethics Training Requirements Pursuant to Government Code Section 53232 et seq.
(AB 1234)) shall be amended to reflect this increase.
SECTION 3. This Ordinance shall be published once within thirty (30) days after adoption in a
newspaper of general circulation printed, published, and circulated in the Midpeninsula Regional
Open Space District.
SECTION 4. Pursuant to Water Code section 20204, this Ordinance shall become effective 60
days from the date of its adoption.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Adopted by the Midpeninsula Regional Open Space District Board of Directors on
_____, 2020, at a regular meeting thereof, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
Jed Cyr, Secretary
Board of Directors
Karen Holman, President
Board of Directors
APPROVED AS TO FORM:
Hilary Stevenson, General Counsel
I, the District Clerk of the Midpeninsula Regional Open Space District, hereby certify
that the above is a true and correct copy of an ordinance duly adopted by the Board of Directors
of the Midpeninsula Regional Open Space District by the above vote at a meeting thereof duly
held and called on the above day.
Jennifer Woodworth, District Clerk
Attachment 1
Midpeninsula Regional Open Space District
Board Policy Manual
Meeting Compensation,
Reimbursement of Authorized
Necessary Expenses for Performance
of Official Duties, and Adoption of
Ethics Training Requirements
Pursuant to Government Code Section
53232 et seq. (AB 1234)
Policy 6.06
Chapter 6 – General
Effective Date: 1/30/08 Revised Date: 1/9/19
Prior Versions: 11/13/13, 8/9/17
Board Policy 6.06 Page 1 of 5
A. COMPENSATION OF BOARD MEMBERS
1. Pursuant to Public Resources Code Sections 5536 and 5536.5, members of the
Board shall receive one hundred and five dollars ($100105.00) for each
attendance at a Board meeting. This amount shall be the maximum
compensation allowable to a board member on any given day. A Board meeting
includes a closed session of the board, regular and special meetings of the board,
field trips to district project locations, district public hearings, meetings of
standing and ad hoc committees, trainings required by State law, and ribbon
cuttings for projects on district lands. Regarding compensation for committee
meetings, only Board members who are members of the committee, or other
authorized substitutes appointed by the presiding officer, may be compensated
for attendance at the meeting.
2. Board members may be compensated for up to six meetings in a calendar
month.
3. Pursuant to Public Resources Code section 5536, the Board may adopt an
ordinance to increase the amount of compensation received for attendance at a
Board meeting. The increase may not exceed an amount equal to five percent for
each calendar year following the operative date of the last adjustment of the
compensation which is received when the ordinance is adopted. Adoption of such
an ordinance must comply with the procedure set forth in California Water Code
section 20200 et seq.
B. TRAVEL AND INCIDENTAL EXPENSES INCURRED WHILE PERFORMING AUTHORIZED
DISTRICT BUSINESS
1. Types of Occurrences and Meetings that Qualify for Expense Reimbursement. Board
Members are eligible for reimbursement for actual and necessary expenses incurred
in the performance of their authorized official duties as provided in Public Resources
Code Sections 5536 and 5536.5 and AB 1234 as follows:
Attachment 2
Board Policy 6.06 Page 2 of 5
a. Attendance at conferences in accordance with the Board’s “Budget
Guidelines for Conference Attendance”, or if the Board, on a case-by-case
basis, approves other conference attendance in advance, due to specific
business needs of the District.
b. Board authorized or General Manager requested, attendance at meetings
with nonprofit organizations, joint powers agencies, other government
agencies such as grant-funding agencies, District legislators or their staff,
local, state or federal representatives, and similar meetings, when such
attendance is necessary in order to effectively represent the District’s
position on a matter of District concern.
2. Government and Group Rates. Airlines, hotels, rental car companies, and other
businesses often make special rates available to government agencies or groups.
These rates are presumed to be the most economical and reasonable rates for
the purposes of this Policy and shall be obtained whenever available.
3. Transportation. Generally, travel to Board-authorized conferences or other
authorized travel between points within 150 miles of the District’s
Administrative Office by the Board Member’s private vehicle shall be at the
current rate established by the Internal Revenue Service. Travel exceeding 150
miles shall be at rates not exceeding the most economical rates of a public
carrier. Specific types of transportation expenses shall be reimbursed as follows:
a. Air Travel. Board Members may be reimbursed for the cost of a
roundtrip economy-class ticket, provided the amount of
reimbursement does not exceed the least expensive airfare that is
consistent with the Board Member’s reasonable scheduling constraints.
b. Personal Vehicle Travel. Board Members may be reimbursed for
expenses incurred in traveling by personal vehicle at the current
Internal Revenue Service mileage rate.
c. Car Rental Reimbursement. Where necessary when attending a
conference or other authorized travel, Board Members may be
reimbursed for the expense of a rental car, provided the amount of
reimbursement does not exceed the most economical and reasonable
rates available. When more than one Board Member attends the event,
Board Members shall share the rental car where feasible.
Conference and Travel Meals. Board Members may be reimbursed for meal expenses on a per
diem basis for meals consumed in conjunction with conference attendance or authorized travel.
The per diem rate for breakfast, lunch, and dinner shall be the daily per diem rate established
by the Federal Government General Services Administration (GSA) (www.gsa.gov/perdiem) for
the region where the conference/training is located. Where the conference/training site or
hotel includes meals in the cost of the registration, such meals shall not be included in the per
diem allowance unless dietary restrictions require obtaining meals from other sources. A
breakdown of allowable rates for breakfast, lunch, and dinner may be found on the GSA web
page (www.gsa.gov/mie).
Attachment 2
Board Policy 6.06 Page 3 of 5
The above limitations do not apply to meals at conferences or authorized travel at which a fixed
price meal is served as part of or during the event. In such a case, the actual cost of the meal
will be reimbursed.
If a meal is provided by a conference or included in the payment of the registration fee, Board
Members may not be reimbursed for meals purchased in lieu of or in addition to the provided
meal, unless it is infeasible for the Board Member to attend the meal due to the need to
conduct other District business.
1. Conference and Travel Lodging. The District will reimburse lodging expenses
when conference or other authorized travel reasonably requires an overnight
stay, provided the amount of the reimbursement does not exceed economical
and reasonable rates for lodging that meets the Board Member’s reasonable
scheduling and official business needs. For lodging in connection with a
conference, such lodging costs shall not exceed the maximum group rate
available through the conference or event sponsor, provided that the lodging at
the group rate is available to the Board Member at the time of booking. If the
conference rate is not available, the Board Member shall use comparable lodging
and may be reimbursed at a nightly rate not to exceed the maximum group rate
available through the conference.
2. Incidental Expense Reimbursement. Board Members may be reimbursed for
actual and necessary incidental expenses incurred in connection with authorized
conferences or travel. Such expenses may include reasonable and customary
gratuities, parking fees, taxi fares, public transportation costs, tolls, telephone
calls, internet, postage, facsimile charges, and similar incidental expense.
3. Conference Registration Fee Reimbursement. Board Members may be
reimbursed for the expense of an authorized conference registration fee as set
out in the Board’s “Budget Guidelines for Board Conference Attendance” or as
authorized by the Board on a case by case basis.
4. Other Expenses. All other actual and necessary expenses incurred in the
performance of official duties that are not listed in this Policy shall not be
reimbursed unless reimbursement is approved by the Board in advance of
incurring the expense.
5. Prohibited Expense Reimbursements. Board Members shall not be reimbursed
for expenses such as alcoholic beverages; spouse, domestic partner, or family
member expenses; entertainment expenses such as movie, theatre, or sporting
event fees; nor for fines for vehicle citations or damage to personal vehicles used
in the course of District business. Exceptions can be approved by the Board
when necessary to comply with the Americans with Disabilities Act or other
applicable law, such as the payment for a necessary caregiver or companion to
accompany a Board Member due to a qualifying disability.
Attachment 2
Board Policy 6.06 Page 4 of 5
C. CELL PHONE REIMBURSEMENT
The District shall reimburse Board Members for the use of their personal cellular phone to
conduct Board business, receive or make calls with constituents and communicate with District
management. The reimbursement shall be $32.50 per month. To be eligible for this
reimbursement, the Board Member shall need to submit a completed Cell Phone
Reimbursement Form to the District Clerk for processing.
Whether or not an employee’s cell phone charges are reimbursed by the District, any records of
District business conducted on a personal cell phone or other device (including photos,
voicemail, text, and electronic mail) must be made available to the District upon request,
including but not limited to when needed to comply with a Public Records Act request.
D. DOCUMENTATION FOR COMPENSATION AND REIMBURSEMENT
1. Documentation Requirements. The District shall provide Board Members with
expense report forms to be filed by the Member for reimbursement of actual and necessary
expenses which are authorized to be reimbursed under this Policy. The form shall be used to
document the expenses for which reimbursement is sought is proper under this Policy. The
District shall also provide a separate form to document compensable meetings.
a. Time for Filing Forms. Board Members must file expense report forms by the
end of the calendar month following the calendar month when the expense
was incurred in order to receive reimbursement. The expense report forms
shall be accompanied by itemized receipts for items documenting each
expense. Compensation forms shall also be filed by the end of the following
calendar month of the meeting for which compensation is sought. In the
event a Board Member is unable to file such forms by the end of the
following calendar month due to extenuating circumstances, such as his or
her absence from home or illness, the Board Member shall file such forms as
soon as feasible. In no event shall such forms be filed later than ninety (90)
days from the compensable meeting or incurring of the expense. If a Board
Members fails to file a timely reimbursement or compensation form, the
Board Members shall be ineligible to receive the requested payment.
b. Offset of Amounts Due the District. If a Board Member has reimbursable
expenses or compensation due from the District, and that Member owes any
amounts to the District, such amounts due shall be deducted from the
reimbursement or compensation otherwise due to the Board Member.
c. Public Records. All documents related to reimbursable expenses are
considered public records subject to disclosure under the California Public
Records Act.
2. Report to Board Regarding Compensable Activities. Board Members shall
provide brief reports on meetings attended for which compensation is provided by this Policy at
Attachment 2
Board Policy 6.06 Page 5 of 5
the next regular Board meeting attended by the Board Member. The report may be made
orally during Board Informational Reports, or in writing. If provided in writing, the Board
Member shall state at the meeting that he or she is submitting to the District Clerk a written
report of compensable meetings attended.
E. ETHICS TRAINING PURSUANT TO AB 1234
Each Board Member shall receive at least two hours of training in general ethics principles and
laws relevant to his or her public service every two years. The District shall annually provide
information on training alternatives available to Board Members to meet the requirements of
AB 1234. The District shall maintain documentation of the dates that Board Members received
this training and the entity that provided the training.
Attachment 2
R-20-145
Meeting 20-29
December 9, 2020
AGENDA ITEM 7
AGENDA ITEM
Fiscal Year 2020 Annual Financial Report
GENERAL MANAGER’S RECOMMENDATIONS
1. Review and accept the Fiscal Year 2019-20 (FY20) Annual Financial Report
2. Adopt a resolution approving the transfer of a total of $3 million from the General Fund
Unassigned Fund balance to the Committed for Future Acquisitions and Capital Projects
3. Approve an updated Board Policy 3.08, Statement of Investment, to reflect a prior Board
proviso that was omitted from the prior update.
SUMMARY
Fiscal Year ending June 30, 2020 (FY20) expenditures totaled $69.2 million, which is 10.3%
below the final adjusted budget of $77.2 million. The Board of Directors (Board) adopted the final
adjusted budget on May 13, 2020 (R-20-14). Revenue for FY20 totaled $65.8 million, or 0.9%
below the final projected revenue.
The Unassigned Fund balance is approximately $3.9 million more than the minimum fund balance
requirement of 30% of budgeted tax revenue. To ensure adequate funding for future acquisitions
and other capital projects, the General Manager and Controller recommend a total of $3 million
be transferred to the Committed Fund for Future Acquisitions and Capital Projects.
DISCUSSION
Revenues
The estimated General Fund revenue for FY20 was $55.9 million, and the actual amount received
as of June 30, 2020 was the same amount. In addition, Measure AA bond funds provided $8.0
million for capital improvement projects within the 25 portfolios.
R-20-145 Page 2
Table 1A – District Revenues by Fund
Expenditures
The District ended the year with total expenditures of $69.2 million, which is approximately $7.9
million or 10.3% below the final adjusted budget. Excluding capital expenditures and debt service,
total expenditures were $31.1 million, which is $4.6 million, or approximately 12.8% below the
final adjusted budget. The District’s FY20 total expenditures remained within the approved
budget. Expenditures by category are listed in Table 1B and by fund in Table 1C.
Table 1B– District Budget & Expenditures by Category
Table 1C – District Budget & Expenditures by Fund
Fund Balance
Before budget adjustments, the General Fund Unassigned Fund Balance increased by $3.6 million
from $16.5 million to $20.1 million. The District’s Fund Balance policy, as adopted by the Board
of Directors on October 26, 2016, states that the District is required to maintain a minimum
unassigned fund of 30% of budgeted tax revenues. The budgeted tax revenue for FY21 is
$53,487,274, requiring the District to maintain a minimum General Fund Unassigned Fund
Balance of $16,046,182.
DISTRICT REVENUES
(By Fund)
FY20 Adopted
Budget
FY20 Final
Adjusted
Budget
FY20 Year-End
Actuals
$ Change from
FY20 Final
Adjusted Budget
% Revenues of
FY20 Final
Adjusted
Budget
Fund 10 - General Fund Operating 55,969,335$ 55,889,335$ 55,920,439$ 31,104$ 100%
Fund 20 - Hawthorn Fund 39,000$ 39,000$ 66,905$ 27,905$ 172%
Fund 30 - Measure AA Capital 2,108,421$ 2,108,421$ 2,505,547$ 397,126$ 119%
Fund 40 - General Fund Capital -$ 1,960,000$ 1,980,364$ 20,364$ 101%
Fund 50 - Debt Service 6,309,350$ 6,385,350$ 5,314,639$ (1,070,711)$ 83%
TOTAL DISTRICT EXPENDITURES 64,426,106$ 66,382,106$ 65,787,894$ (594,212)$ 99%
DISTRICT EXPENDITURES
(All Fund)
FY20 Adopted
Budget
FY20 Final
Adjusted Budget
FY20
Year-End
Actuals
$ Change from
FY20 Final
Adjusted Budget
% Spent of FY20
Final Adjusted
Budget
Salaries and Benefits 25,821,535$ 25,867,535$ 23,615,953$ (2,251,582)$ 91%
Services and Supplies 11,746,210$ 10,160,745$ 7,828,976$ (2,331,769)$ 77%
Total Operating Expenditures 37,567,745$ 36,028,280$ 31,444,929$ (4,583,351)$ 87%
Capital/Fixed Asset Expenditures 19,570,545$ 23,469,452$ 20,101,473$ (3,367,979)$ 86%
Debt Service 17,669,563$ 17,669,563$ 17,669,563$ -$ 100%
Total Non-Operating Expenditures 37,240,108$ 41,139,015$ 37,771,036$ (3,367,979)$ 92%
TOTAL DISTRICT EXPENDITURES 74,807,853$ 77,167,295$ 69,215,965$ (7,951,330)$ 90%
DISTRICT EXPENDITURES
(By Fund)
FY20 Adopted
Budget
FY20 Final
Adjusted
Budget
FY20 Year-End
Actuals
$ Change from
FY20 Final
Adjusted Budget
% Spent of
FY20 Final
Adjusted
Budget
Fund 10 - General Fund Operating 37,003,848$ 35,529,522$ 31,056,198$ (4,473,324)$ 87%
Fund 20 - Hawthorn Fund 140,200$ 92,200$ 12,838$ (79,362)$ 14%
Fund 30 - Measure AA Capital 9,447,647$ 10,355,791$ 8,017,412$ (2,338,379)$ 77%
Fund 40 - General Fund Capital 10,546,595$ 13,520,219$ 12,459,954$ (1,060,265)$ 92%
Fund 50 - Debt Service 17,669,563$ 17,669,563$ 17,669,563$ -$ 100%
TOTAL DISTRICT EXPENDITURES 74,807,853$ 77,167,295$ 69,215,965$ (7,951,330)$ 90%
R-20-145 Page 3
The General Manager and Controller recommend a transfer of $3 million from the Unassigned
Fund Balance to the Committed for Future Acquisitions and Capital Projects. This transfer will
set aside additional reserve funds as the District continues to move forward with its intensive
program of non-MAA land acquisition and build out of facility and other infrastructure projects.
After the proposed transfers, the General Fund Unassigned Fund Balance will be $17.1 million,
which is $1.0 million above the required $16,046,182 (30% of FY21 projected property tax
revenues). A summary of the balances for all District funds (inclusive of the transfer) as of June
30, 2020 is shown in Table 2:
Table 2 – District Fund Balances (All Governmental Funds)
Operating Expenditures
Salaries and benefits ended the year at $23.2 million, or 8.7% below the final adjusted budget.
However, this does not include a $1.5 million contribution to the Section 115 Trust established as
an investment vehicle to make prepayments towards the District’s unfunded pension liability. For
accounting purposes this is transfer of cash and the expenditure is not recorded until the Section
115 funds are forwarded to CalPers. Salary savings were due to several vacancies during the
course of the fiscal year, particularly as hiring slowed due to the impact of the COVID-19
pandemic. Expenditures for Services and Supplies were $7.8 million or 22.2% below budget
primarily due to lower than budgeted spending in contract and outside services in most
departments, as well as maintenance expenses. In many instances, the decrease in spending was a
direct result of the impacts of COVID-19.
Fixed Assets and Capital Projects
Capital projects ended the year at $10.3 million, or approximately 24% below the final adjusted
budget. Capital project delays were associated with the following factors:
• Project stand-downs due to COVID-19 restrictions
• Staff vacancies
• Additional scope/tasks that extended the project schedule
• Difficulties securing quality contractors due to competitive construction market
Fund
Balance as of
6/30/2020 Transfer Balance -
proposed
Minimum
Required GF
Unassigned
Fund Balance
Balance Above
Minimum
Required
Nonspendable for prepaid expenditures 205,929$ 205,929$ N/A N/A
Restricted for debt service 4,813,811$ 4,813,811$ N/A N/A
Restricted for Measure AA Projects 32,301,379$ 32,301,379$ N/A N/A
Restricted for Hawthorn maintenance 1,464,150$ 1,464,150$ N/A N/A
Restricted for General Fund Capital Projects 6,843,580$ 6,843,580$ N/A N/A
Restricted for Pension 4,063,202$ 4,063,202$ N/A N/A
Committed for Equipment Replacement 3,000,000$ 3,000,000$ N/A N/A
Committed for Capital Maintenance & Repairs 5,000,000$ 5,000,000$ N/A N/A
Committed for Future Acquisitions & Capital Projects 3,000,000$ 3,000,000$ 6,000,000$ N/A N/A
Committed for Promissory Note 900,000$ 900,000$ N/A N/A
General Fund Infrastructure Reserve Fund 18,618,465$ 18,618,465$ N/A N/A
Assigned for ongoing capital projects 710,000$ 710,000$ N/A N/A
General Fund Unassigned Fund 19,978,717$ (3,000,000)$ 16,978,717$ 16,046,182$ 932,535$
100,899,233$ -$ 100,899,233$ 16,046,182$ 932,535$
R-20-145 Page 4
Land and Associated Costs
During the FY20, the District purchased and preserved approximately 542 acres of open space
land at a total cost of $9.2 million (net cost of $7.3 million after $2.0 million of grant funding) .
Highlights of land additions include:
• 540 acre Gordon Ridge Property (non-MAA), Tunitas Creek Preserve
• 1.7 acre Gallaway Property, El Corte de Madera Creek Preserve
Long-Term Debt and Debt Service
Debt service expenses in FY20 totaled $17.7 million, consisting of $9.1 million in principal, $8.6
million in interest. The total also includes $7.3 million for debt service on Measure AA General
Obligation bonds.
Past Budget Performance
Table 3 below presents a comparison of FY20 budget performance to the prior four fiscal years.
Overall budgeted expenditures have historically ranged between 86% and 99% of the actual
amounts.
Beginning in FY17, land acquisitions are funded through budget amendments at the time the
Board considers the purchase. The adopted approach reflects the opportunistic nature of land
purchases, which are not guaranteed until an offer is accepted, the purchase approved, and
escrow closed. This combined with improved focus on project delivery should lead to a more
predictable overall budget utilization rate over the longer term.
Table 3 – Past Performance
Hawthorn Fund
The FY20 expenditures from the Hawthorn Fund totaled $12,838, which is 86% below the final
adjusted budget of $92,200 (Table 4). Basic repairs and ongoing maintenance were completed in
FY20.
Table 4 – Hawthorn Fund Budget and Expenditures
DISTRICT EXPENDITURES FY16 FY17 FY18 FY19 FY20
Operating Expenses 98%94%90%90%87%
Strategic Plan/Vision Plan N/A N/A N/A N/A N/A
Capital (CAPEX)66%99%79%79%76%
Land & Assoc. Costs 71%101%92%92%96%
Property Management 74%N/A N/A N/A N/A
Debt Service 98%112%102%100%100%
Budget Category
FY20
Adopted
Budget
FY20
Final Adjusted
Budget
FY20 Year-
End Actuals
$ Change from
FY20 Final
Adjusted
Budget
% Spent of
FY20 Final
Adjusted
Budget
Operating Expenses 92,200$ 92,200$ 12,838$ (79,362)$ 14%
Capital Expenses 48,000$ -$ -$ -$ N/A
HAWTHORN TOTAL 140,200$ 92,200$ 12,838$ (79,362)$ 14%
R-20-145 Page 5
The Hawthorn Endowment Fund balance as of June 30, 2020 is $1.67 million.
FISCAL IMPACT
Approval of the proposed Fund Balance transfer results in a net-zero change to the General Fund,
decreasing the General Fund Unassigned Fund by $3 million and increasing the Committed for
Future Acquisitions & Capital Projects by the same by the same total of $3 million.
Table 5 – Proposed Fiscal Impact
BOARD COMMITTEE REVIEW
There was no prior Board Committee review for this agenda item.
PUBLIC NOTICE
Public notice was provided as required by the Brown Act. No additional notice is required.
CEQA COMPLIANCE
This item is not a project subject to the California Environmental Quality Act.
NEXT STEPS
With the Board’s acceptance of the audited financial statements, staff will proceed with final
submission of the Comprehensive Annual Financial Report (CAFR) to the Government Finance
Officers Association award program.
Attachments:
1. Annual Financial Report for the Fiscal Year Ending June 30, 2020
2. Resolution approving the transfer of funds into the Committed for Future Acquisitions &
Capital Projects
3. Revised Board Policy 3.08, Statement of Investment
Responsible Department Head:
Stefan Jaskulak, Chief Financial Officer/Director of Administrative Services
Prepared by: Andrew Taylor, Finance Manager
Fund
Balance as of
6/30/2020 Transfer Balance -
proposed
Minimum
Required GF
Unassigned
Fund Balance
Balance Above
Minimum
Required
General Fund Unassigned Fund 19,978,717$ (3,000,000)$ 16,978,717$ 16,046,182$ 932,535$
Committed for Future Acquistions & Capital Projects 3,000,000$ 3,000,000$ 6,000,000$ N/A N/A
Comprehensive Annual Financial Report
—————————————————————————————————————————————————————————
FISCAL YEAR ENDED JUNE 30, 2020
Headquarters in Los Altos, California
Attachment 1
Page Intentionally Left Blank
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2020
Midpeninsula Regional Open Space District
Prepared by:
Finance and Administrative Services
Page Intentionally Left Blank
Introductory Section
Page Intentionally Left Blank
TABLE OF CONTENTS
TITLE PAGE
INTRODUCTORY SECTION
Table of Contents ........................................................................................................................ 1
Transmittal Letter ........................................................................................................................ 3
Board of Directors & Management ............................................................................................. 9
Organizational Chart ................................................................................................................... 10
Regional Map .............................................................................................................................. 11
Achievement Award .................................................................................................................... 12
FINANCIAL SECTION
Independent Auditor’s Report ..................................................................................................... 14
Management’s Discussion and Analysis ..................................................................................... 18
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .............................................................................................. 28
Statement of Activities .................................................................................................. 29
Fund Financial Statements:
Balance Sheet – Governmental Funds ........................................................................... 32
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position ....................................................................................... 33
Statement of Revenues, Expenditures, and Changes
in Fund Balance – Governmental Funds ................................................................. 34
Reconciliation of Governmental Funds Statement of Revenues, Expenditures,
and Changes in Fund Balance to the Statement of Activities ................................. 35
Notes to the Basic Financial Statements .............................................................................. 38
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual (GAAP) - General Fund ......................................................................... 74
Schedule of Pension Plan Contributions ..................................................................................... 75
Schedule of Net Pension Liability Proportionate Shares ............................................................. 76
Schedule of Contributions for Postemployment Benefits ........................................................... 77
Schedule of Changes in Net OPEB Liability ............................................................................... 78
SUPPLEMENTARY INFORMATION
Schedule of Revenue, Expenditures and Changes in Fund Balance –
Budget and Actual (GAAP) - Measure AA Capital Projects Fund ...................................... 82
Schedule of Revenue, Expenditures and Changes in Fund Balance –
Budget and Actual (GAAP) - GF Capital Projects Fund ...................................................... 83
Schedule of Revenue, Expenditures and Changes in Fund Balance –
Budget and Actual (GAAP) - Debt Service Fund................................................................. 84
Measure AA Bond Program – Schedule of Program Expenditures ............................................. 85
Notes to Supplementary Information .......................................................................................... 86
STATISTICAL SECTION
Net Position ................................................................................................................................. 90
Changes in Net Position .............................................................................................................. 91
Fund Balances of Governmental Funds ...................................................................................... 92
Changes in Fund Balances of Governmental Funds .................................................................... 93
Assessed and Actual Value of Taxable Property ......................................................................... 94
Direct and Overlapping Property Tax Rates ................................................................................ 95
Principal Property Tax Payers ..................................................................................................... 96
Property Tax Levies and Collections .......................................................................................... 97
Ratios of General Bonded Debt Outstanding .............................................................................. 98
Ratios of Outstanding Debt ......................................................................................................... 99
Legal Debt Margin Information .................................................................................................. 100
Demographic and Economic Statistics ........................................................................................ 101
Principal Employers .................................................................................................................... 102
Full-time Equivalent District Government Employees by Function ........................................... 103
Capital Asset Statistics by Function ............................................................................................ 104
Operating Indicators by Function ................................................................................................ 105
OTHER INDEPENDENT AUDITOR’S REPORTS:
Independent Auditor’s Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ......................................... 108
Midpeninsula Regional Open Space District
330 Distel Circle
Los Altos, California 94022
December 2, 2020
Members of the Board of Directors and Midpen Constituents:
The Comprehensive Annual Financial Report (CAFR) of the Midpeninsula Regional Open Space District
(District) for the year ended June 30, 2020, is hereby submitted.
The CAFR has been prepared by the Finance Department in compliance with the principles and standards
for financial reporting promulgated by the Governmental Accounting Standards Board (GASB). The
CAFR consists of District management’s representations concerning the finances of the District and District
management assumes full responsibility for completeness, accuracy of data, and fairness of presentation,
including all footnotes and disclosures. Management believes the data presented are accurate in all material
respects and that they are presented in a manner designed to fairly set forth the financial position and results
of operations of the District.
The District’s accounting records for governmental operations are maintained on a modified accrual basis,
with the revenues being recorded when both measurable and available, and expenditures being recorded
when the services or goods are received, and the liabilities are incurred.
District management has established a comprehensive framework of internal controls designed both to
protect the District’s assets from loss, theft, or misuse; and to compile sufficiently reliable information for
the preparation of the District’s financial statements in conformity with generally accepted accounting
principles. Because the cost of internal controls should not outweigh their benefits, the District’s designed
its controls to provide reasonable, but not absolute, assurance that the financial statements will be free from
material misstatement. The CAFR has been audited by the independent certified public accounting firm of
Chavan & Associates, LLP. The independent certified public accounting firm has issued an unmodified
opinion on the District’s financial statements for the year ended June 30, 2020.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report
and provides a narrative introduction, overview, and analysis of the financial statements. This letter of
transmittal serves as a complement to the MD&A and should be read in conjunction with it.
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT PROFILE
The Midpeninsula Regional Open Space District (the “District”) was formed in 1972 to acquire and
preserve public open space land in northern and western portions of the County of Santa Clara. In June
1976, the southern and eastern portions of the County of San Mateo were annexed to the District. The
District annexed three parcels located in the northern tip of Santa Cruz County in 1992, but the 1% ad
valorem property tax is not levied on this land for the benefit of the District. In September 2004, the District
completed the Coastside Protection Program, which extended the District boundaries to the Pacific Ocean
in the County of San Mateo County, from the southern borders of the City of Pacifica to the San
Mateo/Santa Cruz County line.
The District encompasses over 550 square miles of land located in the County of Santa Clara
(approximately 200 square miles), the County of San Mateo (approximately 350 square miles) and the
County of Santa Cruz County (approximately 2.6 square miles). The Counties of Santa Clara and San Mateo
are referred to together as the “Counties.”, and approximately 770,000 people live within the boundaries of
the District.
The District has preserved nearly 65,000 acres of public land and manages 26 open space preserves within
its mission to acquire and preserve a regional greenbelt of open space land in perpetuity, protect and
restore the natural environment, and provide opportunities for ecologically sensitive public enjoyment and
education.
A seven-member Board of Directors (Board), elected by individual ward, establishes policies for the
District. Specifically, the Board sets general operating objectives for the District, authorized debt issuance,
monitors financial and long-range planning, establishes policies governing conditions of employment, and
sets policies to protect and enhance the natural and cultural resources of the District. Members of the Board
of Directors are elected for staggered four-year terms. The Board appoints a General Manager to serve as
the District’s chief executive officer. The General Manager provides direction and leadership to all District
departments; and ensures that all District policies are implemented.
The District is a legally separate and fiscally independent entity from other government agencies which
may also provide governmental services within the same geographic area. The CAFR includes all funds of
the District. There are no separate or legal entities or component units include in the financial statements
of the District. The District has a blended component unit included in the financial statements of the
District. In 1996, the District and Santa Clara County established the Midpeninsula Regional Open Space
District Financing Authority (Authority) to help the District finance improvements by buying land and
building facilities in cooperation with the District. The President of the District’s Board of Directors is also
the Chairperson of the Authority. Three District directors and a Supervisor from Santa Clara County are
also on the Authority Board. In effect, the Authority operates in tandem with the District.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is, perhaps best understood when considered from
the broader perspective of the environment in which the District operates.
State and Regional Economy
At the end of 2019, Beacon Economics projected further solid growth in the California economy for 2020
with the northern California region continuing to outpace other parts of the nation with gains in the
technology sector. This forecast was tempered by the region’s continuing issue with housing affordability
and full employment.
However, this forecast changed with the onset of the COVID-19 pandemic when Governor Newsom
declared a state of emergency on March 4, 2020, followed by an executive order directing all Californians
to stay home except for essential employment or shopping for essential needs. The County health officers
of both San Mateo and Santa Clara ordered residents to shelter-in-place as of March 16, 2020.
The updated UCLA Anderson Forecast released in June 2020 showed the expectation for a severe downturn
in economic activity by the fourth quarter of 2020, with U.S. GDP slowing by 8.6% as compared to the
fourth quarter of 2019. The national unemployment rate is expected to be 10%, with full recovery not
expected until 2023. Given California’s large proportion of tourism and trans-Pacific transportation, the
forecast showed the state’s unemployment rate rising to 14.6% by the end of the second quarter as it sheds
2.2 million payroll jobs.
In its most recent report for Fall 2019, Beacon Economics report shows that job growth in the South Bay
area continues to expand a rate much higher than the state average, with the flagship technology sector
recording 3.7% job growth from August 2018 to August 2019 as compared to 1.8% for the state as a whole.
The two main challenges to the Bay area economy remain housing affordability and the lack of investment
in aging infrastructure that is being further strained by population and job growth.
The District’s boundaries encompass a large swath of the Silicon Valley, which continues to be to world’s
premier location for the technology industry with a long culture of entrepreneurship and innovation. The
District typically derives nearly 90 percent of its total revenues from property taxes, with two-thirds of its
general fund property tax revenue from Santa Clara County and one-third from San Mateo County.
The real estate market in the both San Mateo and Santa Clara counties continue to demonstrate strong
demand in both the residential and commercial sectors. For fiscal year 2020-21, the Santa Clara County
Assessor’s Office showed that the assessment roll increased by 6.87 percent, to a total of $551.5 billion.
Similarly, San Mateo County reported that the total value of assessed properties increased by 7.02 percent
for FY 2020-21 to a record $255.1 billion. Total assessments within the District’s boundaries increased by
9.3 percent for FY 2019-20. Over the past 10 years, the District’s general fund property tax revenues have
increased by an annual average of over 9 percent.
In a report released for September 2020 by the California Association of Realtors, residential prices showed
a year-on-year increase of 20.6 percent in San Mateo County and 14.5 percent in Santa Clara County.
While the assessed value continues to grow in both counties, each of the assessor offices remains concerned
about the well-publicized affordability issues in the Bay Area. The impact of the recent voter-approved
Proposition 19 allowing to keep their existing tax base under certain circumstances, remains to be seen.
While the COVID-19 pandemic does not appear to have a negative impact on residential property,
commercial development activity and valuations may face headwinds in the coming years as work from
home practices become the norm.
According to the Federal Reserve Bank of St. Louis, personal income levels as of 2017 (the most recent
year for which county data is available) show per capita income of $98,032 for Santa Clara and $113,410
for San Mateo, which are significantly above $60,156 for the State and $51,869 for the nation.
In face of the continuing COVID-19 pandemic, the District is continuing to develop prudent spending plans,
providing it with the financial resources to deal with a potential recession. The aforementioned housing
affordability crisis and tight labor market continue to present challenges for hiring and retention of
employees. Construction costs for capital projects are still increasing at more rapid pace than general
inflation and the construction labor market remains very tight. The District is continuing its to increase its
profile with the contractor community with greater outreach.
Major Initiatives
In the 2019-20 Fiscal year the District’s achieved the completion of major projects and actions including
the following:
Continued major progress of Phase 2 public access projects at Bear Creek Redwoods Preserve
including:
•Completion of a new restroom facility, adjustments to the new ADA-accessible loop trail, and
feasibility analysis/preliminary design work for further trails.
•Completed improvements to Mud Lake by replacing the spillway and outlet, installation of
storm water swale improvements and replacement of storm water culverts which will protect
Bear Creek Road from flooding and pond habitats.
Completed Phase 3 and 4 of the new Oljon Trail connecting Steam Donkey to the Springboard Trail,
at El Corte de Madera Preserve.
Substantially completed the new 0.6-mile segment of the San Francisco Bay Trail with construction of
a new boardwalk and bridge across sensitive bayland wetlands. This closes a critical regional trail gap
at Ravenswood Preserve, creating 80 miles of continuous Bay Trail access.
Completed the third and final year of a stream gauge and sediment study at El Corte de Madera Creek
Preserve to assess the effectiveness or erosion reduction projects with the aim of improving fishery
streams.
Constructed a bridge and completed revegetation work along the Stevens Creek Nature Trail in Monte
Bello Preserve.
Continued work to prevent and prepare for wildland fires in response to the increasing fire threat in
California. Released a notice of EIR preparation on the developing Wildland Fire Resiliency Program
and received approval for the removal of fire-prone eucalyptus trees at Los Trancos Preserve.
Made significant progress to bring new Midpen office facilities online for improved administrative
functions and delivery of projects and services. This included both the new South Area Field Office
and the District’s new Administrative Headquarters.
Purchased 542.6 acres of open space lands valued at $12.668 million, including:
•The 540-acre Gordon Ridge property as an addition to Tunitas Creek Preserve to support
watershed preservation and conservation grazing.
•The 1.7-acre Gallaway property as an addition to El Corte de Madera Creek Preserve.
•The District also received a gift of 240 acres from the Giusti Family Trust as an addition to
•Purisima Creek Redwood Preserve.
Relevant Financial Policies
Budget Policy
The District follow best practices in budgeting, including: assessment of constituent needs, development
of long range plans, adherence to budget preparation and adoption procedures, monitoring of performance,
and adjustment of budget as required. The District budget is divided into four categories: Operating
Budget, Capital Budget, Land and Associated Costs, and Debt Service. The budget is prepared and adopted
on a cash-basis, whereas the annual financial statements are prepared on a modified accrual basis. The
budget can be amended during the year, in accordance with the Board Budget and Expenditure Policy which
states that increases to any of the four budget categories must be approved by the Board.
Investment Policy
The District’s Investment Policy is adopted annually, in accordance with State law. The policy provides
guidance and direction for the prudent investment of District funds to safeguard the principal of invested
funds and achieve a return on funds while ensuring the liquidity needs of the District. The ultimate goal is
to maximize the efficiency of the District’s cash management system, and to enhance the economic status
of the District, while protecting its pooled cash.
The investment of funds is governed by the California Government Code Section 53601 et seq., and by
California Government Code Section 53630 et seq. Funds on deposit in banks must be federally insured
or collateralized in accordance with the provisions of California Government Code Section 53630 et seq.
Fund Balance Policy
The Board of Directors adopted the Fund Balance Policy in 2014, and updated the Policy in 2016 to achieve
the following goals: provide adequate funding to meet the District’s short-term and long-term plans;
provide funds for unforeseen expenditures related to emergencies such as natural disasters; strengthen the
District’s financial stability against present and future uncertainties such as economic downturns and
revenue shortfalls; and maintain an investment-grade bond rating. This policy has been developed with the
counsel of the District’s independent auditors, to meet the requirements of GASB 54.
The components of the District fund balances are as follows:
•Non-Spendable fund balance includes amounts that cannot be spent either because they are not in
spendable form, e.g. prepaid insurance, or because of legal or contractual constraints. At all times,
the District shall hold fund balance equal to the sum of its non-spendable assets.
•Restricted fund balance includes amounts that are constrained for specific purposes which are
externally imposed by constitutional provisions, enabling legislation, creditors, or contracts.
•Committed fund balance includes amounts that are constrained for specific purposes that are
internally imposed by the District Board of Directors. Funds spent from committed funds shall be
reimbursed from the general fund within two years.
•Assigned fund balance includes amounts that are intended to be used for specific purposes that are
neither restricted nor committed. Such amounts may be assigned by the General Manager if
authorized by the Board of Directors to make such designations. Projects to be funded by assigned
funds require the approval of the General Manager. Funds spent from assigned funds shall be
reimbursed from the general fund within two years.
•Unassigned fund balance includes amounts within the general fund which have not been classified
within the above categories. The Board shall designate the minimum amount of unassigned fund
balance which is to be held in reserve in consideration of unanticipated events that could adversely
affect the financial condition of the District and potentially jeopardize the continuation of necessary
public services. The current minimum unassigned fund balance is 30% of the Budgeted General
Fund Tax Revenue.
Debt Management Policy
The Board of Directors adopted a debt management policy on July 12, 2017. The stated purpose of the
Debt Management Policy is to establish the overall parameters for issuing, structuring and administering
the debt of the District in compliance with applicable federal and State securities laws. The Debt
Management Policy was developed in conjunction with the procedures for Initial and Continuing
Disclosure Relating to Bond Issuances, with the latter ensuring that statements or releases of information
to the public and investors relating to the finances of the District are complete, true and accurate in all
material respects.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement to the District for its Comprehensive Annual Financial Report for the Fiscal
Year Ended June 30, 2019. This was the third year that the District received this prestigious national award.
The Certificate of Achievement is the highest form of recognition in governmental accounting and financial
reporting. To receive the award, the District must publish a Comprehensive Annual Financial Report that
is easily readable and efficiently organized, and the contents of the report must conform to program
standards and satisfy generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for one year. We believe that
our current report continues to conform to the Certificate requirements, and we are submitting it to the
GFOA for another award of the certificate.
ACKNOWLEDGEMENTS
The preparation of this Comprehensive Annual Financial Report could not have been completed without
the efforts and contributions of its staff, as well as other departments across the District. Management also
wishes to acknowledge the invaluable assistance of Chavan & Associates, the District’s independent
auditors who contributed to the preparation of this Comprehensive Annual Financial Report.
Lastly, we wish to acknowledge the District’s Board of Directors for their continued interest in support of
the District’s effort to improve and strengthen its financial operations and reporting.
Respectfully submitted,
/s/Stefan Jaskulak /s/ Ana Maria Ruiz
Stefan Jaskulak Ana Maria Ruiz
Chief Financial Officer/ General Manager
Director of Administrative Services
Board of Directors & Management
EXECUTIVE MANAGEMENT
Ana María Ruiz–General Manager
Hilary Stevenson–General Counsel
Mike Foster–Controller
Susanna Chan–Assistant General Manager/Project Planning and Delivery
Brian Malone–Assistant General Manager/Visitor and Field Services
Stefan Jaskulak–Chief Financial Officer/Director of Administrative Services
Mission Statement——————————————————————————––––––––––––——————————————————————————————
The mission of the Midpeninsula Regional Open Space District is to acquire and preserve a
regional greenbelt of open space land in perpetuity, protect and restore the natural environment,
and provide opportunities for ecologically sensitive public enjoyment and education.
District Wards Left to right: Zoe Kersteen-Tucker, Curt Riffle, Yoriko Kishimoto, Jed Cyr, Karen
Holman, Larry Hassett, Pete Siemens.
——————————————————————————––––––––––––————————————————————————————————
Pete Siemens Ward 1: Cupertino, Los Gatos, Monte Sereno, Saratoga——————————————————————————––––––––––––————————————————————————————————
Yoriko Kishimoto–Board Treasurer Ward 2: Cupertino, Los Altos, Los Altos Hills, Palo Alto, Stanford, Sunnyvale ——————————————————————————––––––––––––————————————————————————————————
Jed Cyr–Board Secretary Ward 3: Sunnyvale ——————————————————————————––––––––––––————————————————————————————————
Curt Riffle–Board Vice President Ward 4: Los Altos, Mountain View ——————————————————————————––––––––––––————————————————————————————————
Karen Holman–Board President Ward 5: East Palo Alto, Menlo Park, Palo Alto, Stanford——————————————————————————––––––––––––————————————————————————————————
Larry Hassett Ward 6: Atherton, La Honda, Loma Mar, Menlo Park, Pescadero,
Portola Valley, Redwood City, San Gregorio, Woodside——————————————————————————––––––––––––————————————————————————————————
Zoe Kersteen-Tucker Ward 7: El Granada, Half Moon Bay, Montara, Moss Beach, Princeton,
Redwood City, San Carlos, Woodside——————————————————————————––––––––––––————————————————————————————————
Organizational Chart
Midpen At-A-Glance
Public
Board of
Directors ControllerGeneral
Counsel
General
Manager
Public Affairs
Department
Executive Assistant/
Deputy District Clerk
District Clerk/Assistant
to the General Manager
Visitor and Field Services
Assistant General Manager
Finance and Administrative
Services
CFO-Director of
Administrative Services
Project Planning and Delivery
Assistant General Manager
Visitor
Services
Department
Land and
Facilities
Department
Natural
Resources
Department
Planning
Department
Real
Property
Department
Engineering
and
Construction
Department
Budget and
Analysis
Department
Information
Systems and
Technology
Department
Finance
Department
Human
Resources
Department
Founded in 1972 Nearly 65,000
Acres Preserved
245 Miles of Trails 26 Preserves
182 Full-Time
Employees
Over 2 Million
Visitors Per Year
$81.2 Million
Budget
770,000
Residents
Regional Map
Achievement Award
Financial Section
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
of the Midpeninsula Regional Open Space District
Los Altos, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each
major fund for Midpeninsula Regional Open Space District (the District), as of and for the year ended
June 30, 2020, and the related notes to the financial statements, which collectively comprise the
District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
The District’s management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the District’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the District’s internal control. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the District, as of
June 30, 2020, and the respective changes in financial position and for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information for the general fund,
schedule of pension plan contributions, schedule of net pension liability proportionate share, schedule
of contributions for postemployment benefits, and schedule of changes in net OPEB liability, as listed
in the table of contents, be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the District’s basic financial statements. The introductory section, budgetary
comparison information for the capital projects funds and the debt service fund, the schedule of
program expenditures for the Measure AA Bond Program, and the statistical sections are presented
for purposes of additional analysis and are not a required part of the basic financial statements.
The schedule of program expenditures for the Measure AA Bond Program is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the schedule of program expenditures for the Measure AA
Bond Program is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
The introductory section, budgetary comparison information for the capital projects funds and the
debt service fund, and statistical sections included have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion
or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December
1, 2020 on our consideration of the District’s internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the District’s internal
control over financial reporting and compliance.
December 1, 2020
San Jose, California
Management’s Discussion and Analysis
INTRODUCTION
The purpose of the Management’s Discussion and Analysis (MD&A) is to present a discussion and analysis of the
District’s financial performance during the year ended on June 30, 2020. This report will (1) focus on significant
financial issues, (2) provide an overview of the District’s financial activity, (3) identify changes in the District’s
financial position, (4) identify any individual fund issues or concerns, and (5) provide descriptions of significant asset
and debt activity. This information, presented in conjunction with the annual Basic Financial Statements, is intended to
provide a comprehensive understanding of the District’s operations and financial standing.
Required Components of the Annual Financial Report
OVERVIEW AND USE OF THE FINANCIAL STATEMENTS
This annual report consists of a series of basic financial statements and notes. The statements are organized so the
reader can understand the District as an entire operating entity by providing an increasingly detailed look at specific
financial activities.
The Statement of Net Position and Statement of Activities is comprised of the government-wide financial statements
and provides information about the activities of the District as a whole, presenting both an aggregate view of the
District’s finances as well as a longer-term view of those finances. Fund Financial Statements provide the next level of
detail. For governmental funds, these statements reflect how services were financed in the short-term as well as what
remains for future spending. The Basic Financial Statements also include notes that explain some of the information in
the financial statements and provide more detailed data.
The full annual financial report is a product of three separate parts: the basic financial statements, supplementary
information, and this section, the Management’s Discussion and Analysis. The three sections together provide a
comprehensive financial overview of the District. The basic financials are comprised of two kinds of statements that
present financial information from different perspectives, government-wide and fund statements.
Government-wide financial statements, which comprise the first two statements, provide both short-term and long-
term information about the District’s overall financial position.
Individual parts of the District, which are reported as fund financial statements, focus on reporting the District’s
operations in more detail. These fund financial statements comprise the remaining statements.
Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
�� N o t e s t o t h e f i n a n c i a l s t a t e m e n t s , p r o v i d e m o r e d e t a i l e d d a t a a n d p r o v i d e e x p l a n a t i o n s t o s o m e o f t h e i n f o r m a t i o n
i n t h e s t a t e m e n t s . T h e r e q u i r e d s u p p l e m e n t a r y i n f o r m a t i o n s e c t i o n p r o v i d e s f u r t h e r e x p l a n a t i o n s a n d a d d i t i o n a l
s u p p o r t f o r t h e f i n a n c i a l s t a t e m e n t s .
G O V E R N M E N T - W I D E F I N A N C I A L S T A T E M E N T S - S T A T E M E N T O F N E T P O S I T I O N A N D T H E S T A T E M E N T O F
A C T I V I T I E S
T h e v i e w o f t h e D i s t r i c t a s a w h o l e l o o k s a t a l l f i n a n c i a l t r a n s a c t i o n s a n d a s k s t h e q u e s t i o n , H o w d i d w e d o f i n a n c i a l l y
d u r i n g t h e f i s c a l y e a r 1 8 9 9 - 2 0 2 0 . T h e S t a t e m e n t o f N e t P o s i t i o n a n d t h e S t a t e m e n t o f A c t i v i t i e s a n s w e r s t h i s q u e s t i o n .
T h e s e s t a t e m e n t s i n c l u d e a l l a s s e t s a n d l i a b i l i t i e s u s i n g t h e a c c r u a l b a s i s o f a c c o u n t i n g s i m i l a r t o t h e a c c o u n t i n g
p r a c t i c e s u s e d b y m o s t p r i v a t e - s e c t o r c o m p a n i e s . T h i s b a s i s o f a c c o u n t i n g t a k e s i n t o a c c o u n t a l l o f t h e c u r r e n t y e a r
r e v e n u e s a n d e x p e n s e s r e g a r d l e s s o f w h e n c a s h i s r e c e i v e d o r p a i d .
T h e s e t w o s t a t e m e n t s r e p o r t t h e D i s t r i c t s n e t p o s i t i o n a n d c h a n g e s i n n e t p o s i t i o n . T h i s c h a n g e i n n e t p o s i t i o n i s
i m p o r t a n t b e c a u s e i t t e l l s t h e r e a d e r t h a t , f o r t h e D i s t r i c t a s a w h o l e , w h e t h e r t h e f i n a n c i a l p o s i t i o n o f t h e D i s t r i c t h a s
i m p r o v e d o r d i m i n i s h e d . T h e c a u s e s o f t h i s c h a n g e m a y b e t h e r e s u l t o f m a n y f a c t o r s , s o m e f i n a n c i a l , a n d s o m e n o t .
N o n - f i n a n c i a l f a c t o r s i n c l u d e t h e D i s t r i c t s p r o p e r t y t a x b a s e , c u r r e n t p r o p e r t y t a x l a w s i n C a l i f o r n i a r e s t r i c t i n g r e v e n u e
g r o w t h , f a c i l i t y c o n d i t i o n s a n d o t h e r f a c t o r s .
I n t h e S t a t e m e n t o f N e t P o s i t i o n a n d t h e S t a t e m e n t o f A c t i v i t i e s , t h e D i s t r i c t r e p o r t s g o v e r n m e n t a l a c t i v i t i e s w h i c h
r e f l e c t t h e D i s t r i c t s p r o g r a m s a n d s e r v i c e s . T h e D i s t r i c t d o e s n o t h a v e a n y b u s i n e s s t y p e a c t i v i t i e s .
F I N A N C I A L H I G H L I G H T S
A s t h e o v e r a l l e c o n o m y c o n t i n u e d t o g r o w t h r o u g h o u t t h e S i l i c o n V a l l e y , t h e D i s t r i c t w i t n e s s e d f u r t h e r s t r o n g g r o w t h
i n t h e a s s e s s e d v a l u a t i o n o f b o t h s e c u r e d a n d u n s e c u r e d p r o p e r t y w i t h i n i t s b o u n d a r i e s . T h e 2 0 1 9 - 2 0 a s s e s s e d
v a l u a t i o n r e p o r t s r e l e a s e d i n A u g u s t 2 0 1 9 s h o w e d D i s t r i c t - w i d e a s s e s s e d v a l u e s i n c r e a s i n g b y 9 . 3 % ( 6 . 3 % i n S a n t a
C l a r a a n d 1 6 . 7 % i n S a n M a t e o ) . T h e D i s t r i c t r e c e i v e d 6 7 % o f i t s t a x r e v e n u e f r o m S a n t a C l a r a C o u n t y a n d 3 3 % f r o m
S a n M a t e o C o u n t y .
O t h e r f i n a n c i a l h i g h l i g h t s i n c l u d e d :
" T a x r e v e n u e r e l a t e d t o t h e G O b o n d s a m o u n t e d t o $ 5 . 2 m i l l i o n .
" P u r c h a s e d $ 2 3 . 2 m i l l i o n i n l a n d a n d a s s o c i a t e d s t r u c t u r e s f u n d e d t h r o u g h c a s h p a y m e n t s a n d g r a n t s .
" T h e D i s t r i c t r e c o r d e d d e f e r r e d o u t f l o w s o f r e s o u r c e s o f $ 1 3 , 2 7 2 , 7 5 9 a n d d e f e r r e d i n f l o w s o f r e s o u r c e s o f
$ 1 , 7 8 6 , 4 4 7 a s r e q u i r e d b y G A S B 6 8 a n d G A S B 7 5 f o r p e n s i o n a n d o t h e r p o s t e m p l o y m e n t b e n e f i t a c c o u n t i n g
a n d r e p o r t i n g . D e f e r r e d o u t f l o w s o f r e s o u r c e s a r e t e c h n i c a l l y n o t a s s e t s b u t i n c r e a s e t h e S t a t e m e n t o f N e t
P o s i t i o n s i m i l a r t o a n a s s e t a n d d e f e r r e d i n f l o w s o f r e s o u r c e s a r e t e c h n i c a l l y n o t l i a b i l i t i e s b u t d e c r e a s e t h e
S t a t e m e n t o f N e t P o s i t i o n s i m i l a r t o l i a b i l i t i e s . S e e N o t e 1 i n t h e n o t e s t o f i n a n c i a l s t a t e m e n t s f o r a d e f i n i t i o n .
" T h e D i s t r i c t s S e c t i o n 1 1 5 i r r e v o c a b l e t r u s t f o r p e n s i o n l i a b i l i t i e s h e l d w i t h t h e P u b l i c A g e n c y R e t i r e m e n t
S e r v i c e s ( P A R S ) h a s a v a l u e o f $ 4 , 0 6 3 , 2 0 2 a t y e a r e n d .
" F u l l y f u n d e d t h e D i s t r i c t s o t h e r p o s t e m p l o y m e n t b e n e f i t s p l a n a c c o r d i n g t o t h e a c t u a r i a l l y d e t e r m i n e d
c o n t r i b u t i o n f o r c u r r e n t y e a r , a s n o t e d i n t h e s c h e d u l e o f c o n t r i b u t i o n f o r p o s t e m p l o y m e n t b e n e f i t s .
T h e a s s e t s o f t h e D i s t r i c t e x c e e d e d l i a b i l i t i e s a t t h e c l o s e o f t h e 2 0 2 0 f i s c a l y e a r b y $ 3 9 2 m i l l i o n . O f t h i s t o t a l n e t
p o s i t i o n , $ 3 7 1 m i l l i o n , o r 9 5 % , w a s t h e D i s t r i c t s n e t i n v e s t m e n t i n c a p i t a l a s s e t s ( c a p i t a l a s s e t s n e t o f r e l a t e d d e b t ) .
REPORTING THE DISTRICT’S MOST SIGNIFICANT FUNDS
Fund Financial Statements
Fund financial reports provide detailed information about the District’s major funds. The District uses one operating
fund, the General Fund, to account for a multitude of financial transactions, two capital project funds to account for
capital projects, and one debt service fund to account for debt service payments.
Governmental Funds
The General Fund is a governmental fund type and is reported using an accounting method called modified accrual
accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental
fund statements provide a detailed short-term view of the District’s general government operations and the basic
services it provides. Governmental fund information helps determine whether there are more or fewer financial
resources that can be spent in the future to finance educational programs. The relationship (or differences) between
governmental activities (reported in the Statement of Net position and the Statement of Activities) and governmental
funds is reconciled in the financial statements.
THE DISTRICT AS A WHOLE
Recall that the Statement of Net Position provides the perspective of the District as a whole. Table 1 provides a
summary of the District’s net position as compared to last period:
Percentage
2020 2019 Change Change
Assets
Current Assets 105,437,703$ 108,643,304$ (3,205,601)$ -2.95%
Other Noncurrent Assets 488,551 562,532 (73,981) -13.15%
Capital Assets 526,101,317 504,559,409 21,541,908 4.27%
Total Assets 632,027,571$ 613,765,245$ 18,262,326$ 2.98%
Total Deferred Outflows of Resources 13,272,759$ 14,826,493$ (1,553,734)$ -10.48%
Liabilities
Current Liabilities 16,110,600$ 16,695,948$ (585,348)$ -3.51%
Noncurrent Liabilities 235,321,577 243,049,767 (7,728,190) -3.18%
Total Liabilities 251,432,177$ 259,745,715$ (8,313,538)$ -3.20%
Total Deferred Inflows of Resources 1,786,447$ 1,471,865$ 314,582$ 21.37%
Net Position
Net Investment in Capital Assets 371,186,303$ 351,151,768$ 20,034,535$ 5.71%
Restricted 6,277,961 8,207,641 (1,929,680) -23.51%
Unrestricted 14,617,442 8,014,749 6,602,693 82.38%
Total Net Position 392,081,706$ 367,374,158$ 24,707,548$ 6.73%
Table 1 - Summary of Statement of Net Position
Total net position increased by $24.7 million, as revenues exceeded expenses. Current assets decreased mainly due to
the use of cash and investments to pay for capital outlay and retirement of long-term debt. Capital assets increased by
$21.5 million mostly from the purchase of land and related infrastructure. Principal payments on outstanding bonds and
promissory notes were the main reason for the $7.7 million decrease in noncurrent liabilities.
Table 2 shows the changes in net position for 2020 as compared to period 1899.
Percentage
2020 2019 Change Change
Revenues
Program revenues 5,948,662$ 3,442,075$ 2,506,587$ 72.82%
General revenues:
Property taxes 57,250,664 54,395,054 2,855,610 5.25%
Investment earnings 2,307,193 3,627,639 (1,320,446) -36.40%
Miscellaneous 1,556,894 1,874,272 (317,378) -16.93%
Total Revenues 67,063,413 63,339,040 3,724,373 5.88%
Program Expenses
Land preservation 32,482,326 34,304,215 (1,821,889) -5.31%
Interest 9,873,539 10,448,784 (575,245) -5.51%
Total Expenses 42,355,865 44,752,999 (2,397,134) -5.36%
Change in Net Position 24,707,548 18,586,041 6,121,507 32.94%
Beginning Net Position 367,374,158 348,788,117 18,586,041 5.33%
Ending Net Position 392,081,706$ 367,374,158$ 24,707,548$ 6.73%
Table 2 - Summary of Changes in Net Position
There was an increase in change in net position by $24.7 million, as revenues exceeded expenses.
THE DISTRICT’S FUND BALANCE
Table 3 provides an analysis of the District’s fund balances and the total change in fund balances from the prior year.
Measure AA Debt
General Capital GF Capital Service Percentage
Fund Projects Fund Projects Fund Fund Total 2019 Change
Nonspendable for prepaid expenditure 205,929$ -$ -$ -$ 205,929$ 185,984$ 11%
Restricted for debt service - - - 4,813,811 4,813,811 6,775,924 -29%
Restricted for Measure AA Projects - 32,301,379 - - 32,301,379 37,944,253 -15%
Restricted for Hawthorn maintenance 1,464,150 - - - 1,464,150 1,431,717 2%
Restricted for capital projects - - 6,843,580 - 6,843,580 8,254,539 -17%
Restricted for pension 4,063,202 - - - 4,063,202 2,531,030 61%
Committed for infrastructure 18,618,465 - - - 18,618,465 17,688,465 5%
Committed for equipment replacement 3,000,000 - - - 3,000,000 3,000,000 0%
Committed for capital maintenance 5,000,000 - - - 5,000,000 5,000,000 0%
Committed for future acquisitions
and capital projects 6,000,000 - - - 6,000,000 3,000,000 100%
Committed for promissory note 900,000 - - - 900,000 600,000 50%
Assigned for ongoing projects 710,000 - - - 710,000 1,400,000 -49%
Unassigned 16,978,717 - - - 16,978,717 16,515,392 3%
Total Fund Balance 56,940,463$ 32,301,379$ 6,843,580$ 4,813,811$ 100,899,233$ 104,327,304$ -3%
Table 3 - Summary of Fund Balance (All Governmental Funds)
2020
In accordance with the District’s thirty-year strategic plan, the Board of Directors committed an additional $3 million in
2020 for future acquisitions and capital projects. This was an increase to its existing reserves for infrastructure,
equipment replacement, and capital maintenance. See Note 1 in the notes to the basic financial statements of the audit
report for a description of each commitment.
The fund balances restricted for debt service, measure AA projects, and capital projects decreased by 29%, 15%, and
17%, respectively due to District expended more out of these funds during the year ended June 30, 2020. The fund
balance restricted for pension increased by 61% as District reserved more for future pension payments. The fund
balance committed for promissory notes increased by 50% as District reserved more for future promissory note
payments. The fund balance assigned for ongoing projects decreased by 49% since District expended more out of this
fund for ongoing projects during the year ended June 30, 2020.
GENERAL FUND BUDGETING HIGHLIGHTS
The District’s budget is prepared according to California law and in the modified accrual basis of accounting.
During the course of 2020, the District revised its General Fund budget, which resulted in an decrease in budgeted
expenditures of $1.5 million from the original to final budget. The revenue was revised from $56.0 million to $55.9
million due to decrease in grant revenue. A summary of the original and final budget is presented below:
Percent
Original Budget Final Budget Change Change
Revenues
Property taxes 51,863,000$ 51,883,000$ 20,000$ 0.04%
Grant revenues 488,300 388,300 (100,000) -20.48%
Property management 1,078,000 1,078,000 - 0.00%
Investment earnings 2,099,878 2,099,878 - 0.00%
Other revenues 479,157 479,157 - 0.00%
Total Revenues 56,008,335 55,928,335 (80,000) -0.14%
Expenditures
Salaries and employee benefits 25,349,838 25,460,977 111,139 0.44%
Services and supplies 11,746,210 10,160,745 (1,585,465) -15.60%
Capital outlay 48,000 - (48,000) -100.00%
Total Expenses 37,144,048 35,621,722 (1,522,326) -4.27%
Net Change in Fund Balance 18,864,287$ 20,306,613$ 1,442,326$ 7.65%
Table 4 - Summary of Original to Final Budgets
CAPITAL ASSETS
Table 5 shows 2020 capital asset balances as compared to 1899.
Percentage
2020 2019 Change Change
Land 450,098,759$ 437,763,645$ 12,335,114$ 2.82%
Construction-in-Progress 17,313,507 16,193,374 1,120,133 6.92%
Structure and Improvements 19,118,187 18,059,730 1,058,457 5.86%
Infrastructure 37,093,321 29,542,214 7,551,107 25.56%
Equipment 1,092,107 1,113,614 (21,507) -1.93%
Vehicles 1,385,436 1,886,832 (501,396) -26.57%
Total Capital Assets - Net 526,101,317$ 504,559,409$ 21,541,908$ 4.27%
Table 5 - Summary of Capital Assets Net of Depreciation
Additional detail and information on capital asset activity is described in the notes to the financial statements, note 5.
LONG TERM LIABILITIES
Table 6 summarizes the changes in long-term liabilities from 2020 to 1899.
Percentage
2020 2019 Change Change
Promissory Notes 37,938,606$ 38,899,934$ (961,328)$ -2.47%
Bonds 190,555,234 199,505,576 (8,950,342) -4.49%
Net Pension Liability 11,828,627 10,412,478 1,416,149 13.60%
Net OPEB Liability 1,500,844 1,862,277 (361,433) -19.41%
Compensated Absences 2,777,151 2,368,387 408,764 17.26%
Total Long-term Liabilities 244,600,462$ 253,048,652$ (8,448,190)$ -3.34%
Table 6 - Summary of Long-term Liabilities
Additional detail and information on long-term liabilities activity is described in the notes to the financial statements,
note 6.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The Board of Directors adopted the District’s budget for fiscal year 2020-21 on June 24, 2020. This budget assumes
$65.2 million in revenues and a growth in general fund property tax income of 3.8% over the prior year’s adopted
budget. This budget funds $27.7 million of capital spending, of which $10.2 million is expected to qualify for
reimbursement from Measure AA GO bond funds. General Fund operating expenditures are budgeted at $35.0 million,
a 7.0% decrease over the prior year’s adopted budget. Debt service is budgeted at $16.6 million, with $6.0 million
related to the Measure AA general obligation bonds. If all revenues, expenditures (including debt service) occur as
budgeted, the District’s overall cash balances would increase by approximately $0.8 million.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, parents, participants, investors and creditors with a
general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives.
Questions concerning any of the information provided in this report or requests for additional financial information
should be addressed to the Administrative Office, Midpeninsula Regional Open Space District, 330 Distel Circle, Los
Altos, California 94022.
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Basic Financial Statements
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GOVERNMENT-WIDE STATEMENTS
Statement of Net Position and Statement of Activities
The Statement of Net Position and the Statement of Activities summarize the entire District’s financial activities
and financial position.They are prepared on the same basis as is used by most businesses,which means they
include all the District’s assets and all its liabilities,as well as all its revenues and expenses.This is known as the
full accrual basis.The effect of all of the District’s transactions is taken into account,regardless of whether or
when cash changes hands, but all material internal transactions between District funds have been eliminated.
The Statement of Net Position reports the difference between the District’s total assets and the District’s total
liabilities,including all the District’s capital assets and all its long-term debt.The Statement of Net Position
presents information in a way that focuses the reader on the composition of the District’s net position,by
subtracting total liabilities from total assets.
The Statement of Net Position summarizes the financial position of all of the District’s Governmental Activities
in a single column.The District’s Governmental Activities include the activities of its General Fund,along with
all its Special Revenue Funds, Capital Projects Funds, and Debt Service Funds.
The Statement of Activities reports increases and decreases in the District’s net position.It is also prepared on
the full accrual basis,which means it includes all the District’s revenues and all its expenses,regardless of when
cash changes hands.This differs from the “modified accrual”basis used in the Fund financial statements,which
reflect only current assets, current liabilities, available revenues and measurable expenditures.
The Statement of Activities presents the District’s expenses first,listed by program.Program revenues –that is,
revenues which are generated directly by these programs -are then deducted from program expenses to arrive at
the net expense of each governmental program.The District’s general revenues are then listed in the
Governmental Activities and the Change in Net Position is computed and reconciled with the Statement of Net
Position.
Both these Statements include the financial activities of the District and the Midpeninsula Regional Open Space
District Financing Authority.This entity is legally separate but is a component unit of the District because it is
controlled by the District, which is financially accountable for the Authority’s activities.
Assets
Current assets:
Cash and investments 104,639,305$
Accounts receivable:
Interest 214,097
Other 362,854
Taxes receivable 221
Other current assets 221,226
Total current assets 105,437,703
Noncurrent assets:
Notes receivable 74,509
Unamortized issuance costs 414,042
Non-depreciable capital assets 467,412,266
Capital assets, net of depreciation 58,689,051
Total noncurrent assets 526,589,868
Total Assets 632,027,571$
Deferred Outflows of Resources
OPEB adjustments 638,539$
Pension adjustments 4,083,643
Deferred loss on early retirement of long-term debt 8,550,577
Total Deferred Outflows of Resources 13,272,759$
Liabilities
Current liabilities:
Accounts payable 2,616,408$
Deposits payable 177,135
Payroll and other liabilities 1,744,926
Accrued interest 2,293,246
Current portion of long-term liabilities 9,278,885
Total current liabilities 16,110,600
Noncurrent liabilities:
Long-term liabilities - net of current portion 235,321,577
Total Liabilities 251,432,177$
Deferred Inflows of Resources
OPEB adjustments 215,779$
Pension adjustments 1,570,668
Total Deferred Inflows of Resources 1,786,447$
Net Position
Net investment in capital assets 371,186,303$
Restricted for:
Debt service 4,813,811
Hawthorne maintenance 1,464,150
Total restricted 6,277,961
Unrestricted 14,617,442
Total Net Position 392,081,706$
Midpeninsula Regional Open Space District
Statement of Net Position
June 30, 2020
The notes to the financial statements are an integral part of this statement.
Net (Expense)
Capital Revenue and
Charges for Grants and Changes in
Expenses Services Contributions Net Position
Governmental activities:
Land preservation 32,482,326$ 2,655,179$ 3,293,483$ (26,533,664)$
Interest and fiscal charges 9,873,539 - - (9,873,539)
Total governmental activities 42,355,865$ 2,655,179$ 3,293,483$ (36,407,203)
General revenues and special item:
Property taxes 57,250,664
Investment earnings 2,307,193
Other revenues 1,565,738
Special item - loss on disposal of capital assets (8,844)
Total general revenues and special item 61,114,751
Change in net position 24,707,548
Net position beginning 367,374,158
Net position ending 392,081,706$
Midpeninsula Regional Open Space District
Statement of Activities
For the Fiscal Year Ended June 30, 2020
Program Revenues
The notes to the financial statements are an integral part of this statement.
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Fund Title Fund Description
General Fund The fund is the general operating fund of the District. It is used to
account for all financial resources. The major revenue sources for
this fund are property taxes, grant revenues and interest income.
Expenditures are made for land preservation and other operating
expenditures.
Measure AA Capital Projects Fund This fund is used to account for resources from bond proceeds and
expenditures for capital projects related to the Measure AA GO
Bond.
GF Capital Projects Fund This fund is used to account for expenditures for capital projects not
related to any other capital projects funds.
Debt Service Fund This fund is used to account for accumulation of resources for, and
the payment of long-term debt principal, interest and related costs.
Resources are provided by General Fund transfers and interest
income on unspent funds.
FUND FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the District in fiscal year 2020.
Measure AA GF Capital Debt Total
General Capital Projects Service Governmental
Fund Projects Fund Fund Fund Funds
Assets
Cash and investments 59,060,612$ 33,044,310$ 7,720,572$ 4,813,811$ 104,639,305$
Receivables:
Interest 214,097 - - - 214,097
Other 362,854 - - - 362,854
Taxes receivable 221 - - - 221
Other current assets 221,226 - - - 221,226
Due from other funds 9,308,458 9,702,604 - - 19,011,062
Notes receivable 74,509 - - - 74,509
Total Assets 69,241,977$ 42,746,914$ 7,720,572$ 4,813,811$ 124,523,274$
Liabilities
Liabilities:
Accounts payable 913,498$ 1,137,077$ 565,833$ -$ 2,616,408$
Deposits payable 177,135 - - - 177,135
Due to other funds 9,391,445 9,308,458 311,159 - 19,011,062
Payroll and other liabilities 1,744,926 - - - 1,744,926
Total Liabilities 12,227,004 10,445,535 876,992 - 23,549,531
Deferred Inflows of Resources
Unavailable revenues 74,510 - - - 74,510
Fund Balance
Nonspendable:
Prepaid expenditures 205,929 - - - 205,929
Restricted for:
Debt service - - - 4,813,811 4,813,811
Measure AA capital projects - 32,301,379 - - 32,301,379
Hawthorn maintenance 1,464,150 - - - 1,464,150
Capital projects - - 6,843,580 - 6,843,580
Pension 4,063,202 - - - 4,063,202
Committed for:
Infrastructure 18,618,465 - - - 18,618,465
Equipment replacement 3,000,000 - - - 3,000,000
Capital maintenance 5,000,000 - - - 5,000,000
Future acquisitions and capital
projects 6,000,000 - - - 6,000,000
Promissory note 900,000 - - - 900,000
Assigned for:
Ongoing Projects 710,000 - - - 710,000
Unassigned 16,978,717 - - - 16,978,717
Total Fund Balance 56,940,463 32,301,379 6,843,580 4,813,811 100,899,233
Total Liabilities, Deferred Inflows
of Resources, and Fund Balance 69,241,977$ 42,746,914$ 7,720,572$ 4,813,811$ 124,523,274$
Balance Sheet
Midpeninsula Regional Open Space District
June 30, 2020
Governmental Funds
The notes to the financial statements are an integral part of this statement.
Total fund balance - governmental funds 100,899,233$
Amounts reported in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not
reported as assets in governmental funds.
Capital assets at cost 549,421,628$
Accumulated depreciation (23,320,311) 526,101,317
Principal on notes receivables are recorded as unearned revenue in the funds, which upon
collection is a current financial resource. In the government-wide financial statements,
repayment of the principal amount does not generate revenue in the statement of activities;
therefore, unearned revenue is not recorded.74,510
The difference between OPEB plan assumptions and estimates versus actuals are not included in the
plan's actuarial study until the next fiscal year and are reported as deferred outflows or
inflows of resources in the statement of net position.422,760
The difference between pension plan assumptions and estimates versus actuals are not included in the
plan's actuarial study until the next fiscal year and are reported as deferred outflows or
inflows of resources in the statement of net position.2,512,975
Interest payable on long-term debt does not require the use of current financial resources and,
therefore, is not reported in the governmental funds.(2,293,246)
Discounts and premiums related to bond issues are recorded as other financing
sources and uses in the fund financial statements but are recorded as assets or liabilities
and amortized over the life of the bond in the statement of net position:
Premium 24,263,367$
Issuance cost (414,042) (23,849,325)
Deferred loss on early retirement of long-term debt is recorded in the Statement of Net Position as a deferred
outflow of resources and amortized on a straight line basis over the original life of the defeased bond.8,550,577
Long-term liabilities are not due and payable in the current year and therefore are not reported
as liabilities in the funds. Long-term liabilities at year-end consists of:
Bonds 171,260,000$
Net pension liability 11,828,627
Promissory notes 32,970,473
Compensated absences 2,777,151
Net OPEB liability 1,500,844 (220,337,095)
Total net position - governmental activities 392,081,706$
Midpeninsula Regional Open Space District
Balance Sheet to the Statement of Net Position
June 30, 2020
Reconciliation of the Governmental Funds
The notes to the financial statements are an integral part of this statement.
Measure AA GF Capital Debt Total
General Capital Projects Service Governmental
Fund Projects Fund Fund Fund Funds
Revenues:
Property taxes 52,024,342$ -$ -$ 5,226,322$ 57,250,664$
Grant income 31,396 1,498,087 1,764,000 - 3,293,483
Property management 2,655,179 - - - 2,655,179
Investment earnings 1,014,726 1,007,460 216,363 88,317 2,326,866
Other revenues 261,702 - - - 261,702
Total revenues 55,987,345 2,505,547 1,980,363 5,314,639 65,787,894
Expenditures:
Current:
Land preservation:
Salaries and employee benefits 23,240,060 375,893 - - 23,615,953
Services and supplies 7,828,976 - - - 7,828,976
Capital outlay - 7,641,519 12,459,954 - 20,101,473
Debt service:
Principal - - - 9,115,000 9,115,000
Interest - - - 8,554,563 8,554,563
Total expenditures 31,069,036 8,017,412 12,459,954 17,669,563 69,215,965
Excess (deficiency) of revenues
over (under) expenditures 24,918,309 (5,511,865) (10,479,591) (12,354,924) (3,428,071)
Other financing sources (uses):
Transfers in 889,920 - 9,827,543 10,392,811 21,110,274
Transfers out (20,220,354) - (889,920) - (21,110,274)
Total other financing sources (uses) (19,330,434) - 8,937,623 10,392,811 -
Net changes in fund balance 5,587,875 (5,511,865) (1,541,968) (1,962,113) (3,428,071)
Fund balance beginning 51,352,588 37,944,253 8,254,539 6,775,924 104,327,304
Prior period adjustment - (131,009) 131,009 - -
Fund balance beginning - as adjusted 51,352,588 37,813,244 8,385,548 6,775,924 104,327,304
Fund balance ending 56,940,463$ 32,301,379$ 6,843,580$ 4,813,811$ 100,899,233$
Midpeninsula Regional Open Space District
Statement of Revenues, Expenditures and Changes in Fund Balance
Governmental Funds
For the Fiscal Year Ended June 30, 2020
The notes to the financial statements are an integral part of this statement.
Total net change in fund balance - governmental funds (3,428,071)$
Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the
cost of those assets is allocated over their estimated useful lives as depreciation expense.
Expenditures capitalized as capital assets 24,674,628$
Depreciation expense (3,123,880)
Loss on disposal of capital asset (8,844) 21,541,904
Repayment of notes receivable is reported as revenue in the governmental funds because financial resources
were received and available during the fiscal year. In the statement of net position, the payment reduces
the principal balance of notes receivable and does not generate revenue in the statement of activities.(19,673)
Accreted interest on capital appreciation bonds is not recorded in the governmental funds but is required
to be recorded under the accrual basis of accounting in the government wide financial statements.(507,362)
The governmental funds report debt proceeds as an other financing source, while repayment of debt principal is
reported as an expenditure. Interest is recognized as an expenditure in the governmental funds when it is due.
The net effect of these differences in the treatment of long-term debt and related items is as follows:
Repayment of bond principal 7,830,000
Repayment of promissory notes principal 1,285,000 9,115,000
Deferred loss on early retirement of long-term debt is amortized over the life of the debt in the statement of
activities. Amortization expense is not reported in the governmental funds.(845,123)
Prepaid issuance costs, discounts and premiums related to bond issues are recorded as other financing
sources and uses in the fund financial statements but are recorded as assets or liabilities
and amortized over the life of the bond in the statement of net position:
Amortization of issuance costs and premiums - net 1,249,724
In the Statement of Activities, compensated absences are measured by the amount earned during the year. In
governmental funds, however, expenditures for those items are measured by the amount of financial
resources used (essentially the amounts paid). This year, vacation earned exceeded the amounts used.(408,764)
In governmental funds, actual contributions to pension and OPEB plans are reported as expenditures in the
year incurred. However, in the government-wide statement of activities, only the current year pension
and OPEB expense as noted in the plans' valuation reports is reported as an expense, as adjusted for
deferred inflows and outflows of resources.(2,077,906)
Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds
because interest is recognized as an expenditure in the funds when it is due and thus requires the use of
current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest
accrues, regardless of when it is due.87,819
Change in net position of governmental activities 24,707,548$
Midpeninsula Regional Open Space District
Statement of Revenues, Expenditures and Changes in Fund Balance
For the Fiscal Year Ended June 30, 2020
Reconciliation of the Governmental Funds
to the Statement of Activities
The notes to the financial statements are an integral part of this statement.
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Notes to Financial Statements
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
A. General
The Midpeninsula Regional Open Space District (the District) was formed in 1972 to acquire and
preserve public open space land in northern and western portions of Santa Clara County. In June
1976, the southern and eastern portions of San Mateo County were annexed to the District. The
District annexed a small portion of the northern tip of Santa Cruz County in 1992. In September 2004,
the District completed the Coastside Protection Program, which extended the District boundaries to
the Pacific Ocean in San Mateo County, from the southern borders of Pacifica to the San Mateo/Santa
Cruz County line.
B. Accounting Principles
The accounting policies of the District conform to generally accepted accounting principles as
prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of
Certified Public Accountants (AICPA).
C. Reporting Entity
As required by generally accepted accounting principles, these basic financial statements present the
Midpeninsula Regional Open Space District and its component unit. The component unit discussed in
the following paragraph is included in the District's reporting entity because of the significance of
their operational or financial relationships with the District.
Blended Component Unit. The District and the County of Santa Clara entered into a joint exercise
of powers agreement dated May 1, 1996, creating the Midpeninsula Regional Open Space District
Financing Authority (the Authority), pursuant to the California Government Code. The District is
financially accountable for the Authority, as it appoints a voting majority of the governing board; is
able to impose its will in the Authority; and the Authority provides specific financial benefits to, and
imposes specific financial burdens on, the District. The Authority was formed for the sole purpose of
providing financing assistance to the District to fund the acquisition of land to preserve and use as
open space. As such, the Authority is an integral part of the District, and accordingly, all of the
Authority's activity is blended within the accompanying debt service fund.
D. Basis of Presentation
Government-wide Financial Statements:
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the activities of the District. The Statement of Net Position
reports all assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net
position.
The government-wide statements are prepared using the economic resources measurement focus. This
approach differs from the manner in which governmental fund financial statements are prepared.
Governmental fund financial statements, therefore, include the reconciliation with brief explanations
to better identify the relationship between the government wide statements and the statements for the
governmental funds.
The government-wide statement of activities presents a comparison between direct expenses and
program revenues for each function or program of the District’s governmental activities. Direct
expenses are those that are specifically associated with a service, program, or department and are
therefore clearly identifiable to a particular function. The District does not allocate indirect expenses
to functions in the statement of activities. Program revenues include charges paid by the recipients of
goods or services offered by a program, as well as grants and contributions that are restricted to
meeting the operational or capital requirements of a particular program. Revenues that are not
classified as program revenues are presented as general revenues of the District, with certain
exceptions. The comparison of direct expenses with program revenues identifies the extent to which
each governmental function is self-financing or draws from the general revenues of the District.
Fund Financial Statements:
Fund financial statements report detailed information about the District. The accounting and financial
treatment applied to a fund is determined by its measurement focus. All governmental funds are
accounted for using a flow of current financial resources measurement focus. With this measurement
focus, only current assets, deferred outflows, current liabilities and deferred inflows are generally
included on the balance sheet. The Statement of Revenues, Expenditures, and Changes in Fund
Balance for these funds present increases (i.e., revenues and other financing sources) and decreases
(i.e., expenditures and other financing uses) in net current assets.
E. Basis of Accounting
Basis of accounting refers to when revenues and expenditures are recognized in the accounts and
reported in the financial statements. Government-wide financial statements are prepared using the
accrual basis of accounting. Governmental funds use the modified accrual basis of accounting.
Revenues - Exchange and Non-exchange Transactions:
Revenue resulting from exchange transactions, in which each party gives and receives essentially
equal value, is recorded under the accrual basis when the exchange takes place. On a modified accrual
basis, revenue is recorded in the fiscal period in which the resources are measurable and become
available. “Available” means the resources will be collected within the current fiscal period or are
expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal
period. For the District, “available” means collectible within the current period or within 90 days after
period-end.
Non-exchange transactions, in which the District receives value without directly giving equal value in
return, include property taxes, grants, and entitlements. Under the accrual basis, revenue from
property taxes is recognized in the fiscal period for which the taxes are levied. Revenue from grants
and entitlements is recognized in the fiscal period in which all eligibility requirements have been
satisfied. Eligibility requirements include timing requirements, which specify the period when the
resources are to be used or the fiscal period when use is first permitted; matching requirements, in
which the District must provide local resources to be used for a specific purpose; and expenditure
requirements, in which the resources are provided to the District on a reimbursement basis. Under the
modified accrual basis, revenue from non-exchange transactions must also be available before it can
be recognized.
Deferred Outflows/Deferred Inflows:
A deferred outflow of resources is defined as a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expenses/expenditure) until then.
A deferred inflow of resources is defined as an acquisition of net position that applies to a future
period(s) and so will not be recognized as an inflow of resources (revenues) until that time.
When applicable, unamortized portions of the gain and loss on refunding debt are reported as deferred
inflows and deferred outflows of resources, respectively. Deferred outflows and inflows of resources
are reported for the changes related to benefit plans. In addition, when an asset is recorded in
governmental fund financial statements but the revenue is not available, a deferred inflow of
resources is reported until such time as the revenue becomes available.
Unearned Revenue:
Unearned revenue arises when assets (such as cash) are received before revenue recognition criteria
have been satisfied. Grants and entitlements received before eligibility requirements (such as
qualified expenditures) are met are recorded as liabilities from unearned revenue.
Unavailable Revenue:
In the governmental fund financial statements, receivables associated with non-exchange transactions
that will not be collected within the availability period have been recorded as deferred inflows of
resources as unavailable revenue.
Expenses/Expenditures:
On the accrual basis of accounting, expenses are recognized at the time a liability is incurred. On the
modified accrual basis of accounting, expenditures are generally recognized in the accounting period
in which the related fund liability is incurred, as under the accrual basis of accounting. However,
under the modified accrual basis of accounting, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Allocations of cost, such as depreciation and amortization, are not recognized in the governmental
funds. When both restricted and unrestricted resources are available for use, it is the District’s policy
to use restricted resources first, then unrestricted resources as they are needed.
F. Fund Accounting
The accounts of the District are organized into four funds with a separate set of self-balancing
accounts that comprise of the District’s assets, deferred outflows, liabilities, deferred inflows, fund
balance, revenues, and expenditures. The District resources are allocated to and accounted for in
individual funds based upon the purpose for which they are to be spent and the means by which
spending activities are controlled.
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses
equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is
always a major fund. The District may also select other funds it believes should be presented as major
funds.
The District reported all of its funds as major governmental funds in the accompanying financial
statements:
General Fund. The General Fund is the general operating fund of the District. It is used to account
for all financial resources. The major revenue sources for this fund are property taxes, grant revenues
and interest income. Expenditures are made for land preservation and other operating expenditures.
Measure AA Capital Projects Fund. The Measure AA Capital Projects Fund is used to account for
resources from bond proceeds and expenditures for capital projects related to the Measure AA GO
Bond.
GF Capital Projects Fund. GF Capital Projects Fund is used to account for expenditures for capital
projects not related to any other capital projects funds.
Debt Service Fund. The Debt Service Fund is used to account for accumulation of resources for, and
the payment of long-term debt principal, interest and related costs. Resources are provided by tax
revenue, General Fund transfers, and interest income on unspent funds.
G. Budgets and Budgetary Accounting
The District's Board of Directors adopts an annual operating budget for the District by major fund, on
or before June 30, for the ensuing fiscal period. The Board of Directors may amend the budget by
resolution during the fiscal period. The legal level of control, the level at which expenditures may not
legally exceed the budget, is at the category level.
H. Assets, Liabilities, and Equity
1. Cash and Cash Equivalents
The District’s cash deposits are considered to be cash on hand and cash in banks. Cash and Cash
Equivalents are generally considered short-term, highly liquid investments with a maturity of
three months or less from the purchase date.
2. Investments
Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value
Measurement and Application. Accordingly, the change in fair value of investments is recognized
as an increase or decrease to investment assets and investment income. Fair value is defined as
the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction. In determining this amount, three valuation techniques are available:
• Market approach - This approach uses prices generated for identical or similar assets or
liabilities. The most common example is an investment in a public security traded in an
active exchange such as the NYSE.
• Cost approach - This technique determines the amount required to replace the current
asset. This approach may be ideal for valuing donations of capital assets or historical
treasures.
" I n c o m e a p p r o a c h - T h i s a p p r o a c h c o n v e r t s f u t u r e a m o u n t s ( s u c h a s c a s h f l o w s ) i n t o a
c u r r e n t d i s c o u n t e d a m o u n t .
E a c h o f t h e s e v a l u a t i o n t e c h n i q u e s r e q u i r e s i n p u t s t o c a l c u l a t e a f a i r v a l u e . O b s e r v a b l e i n p u t s
h a v e b e e n m a x i m i z e d i n f a i r v a l u e m e a s u r e s , a n d u n o b s e r v a b l e i n p u t s h a v e b e e n m i n i m i z e d .
3 . P r e p a i d E x p e n d i t u r e s
T h e D i s t r i c t h a s t h e o p t i o n o f r e p o r t i n g e x p e n d i t u r e s i n g o v e r n m e n t a l f u n d s f o r p r e p a i d i t e m s
e i t h e r w h e n p u r c h a s e d o r d u r i n g t h e b e n e f i t i n g p e r i o d . T h e D i s t r i c t h a s c h o s e n t o r e p o r t t h e
e x p e n d i t u r e d u r i n g t h e b e n e f i t i n g p e r i o d .
4 . C a p i t a l A s s e t s
C a p i t a l a s s e t s , w h i c h i n c l u d e l a n d , b u i l d i n g s a n d i m p r o v e m e n t s , f u r n i t u r e , e q u i p m e n t , a n d
c o n s t r u c t i o n i n p r o g r e s s , a r e r e p o r t e d i n t h e g o v e r n m e n t - w i d e f i n a n c i a l s t a t e m e n t s . C a p i t a l a s s e t s
a r e v a l u e d a t c o s t w h e n h i s t o r i c a l r e c o r d s a r e a v a i l a b l e a n d a t a n e s t i m a t e d h i s t o r i c a l c o s t w h e n
n o h i s t o r i c a l r e c o r d s e x i s t . D o n a t e d c a p i t a l a s s e t s a r e v a l u e d a t t h e i r a c q u i s i t i o n v a l u e a t t h e t i m e
o f a c q u i s i t i o n p l u s a n c i l l a r y c h a r g e s , i f a n y . D o n a t e d w o r k s o f a r t a n d s i m i l a r i t e m s a n d c a p i t a l
a s s e t s r e c e i v e d i n s e r v i c e c o n c e s s i o n a r r a n g e m e n t s a r e r e p o r t e d a t a c q u i s i t i o n v a l u e . T h e D i s t r i c t
u t i l i z e s a c a p i t a l i z a t i o n t h r e s h o l d o f $ 1 f o r l a n d , $ 2 5 , 0 0 0 f o r e q u i p m e n t , f i x t u r e s a n d v e h i c l e s ,
$ 5 0 , 0 0 0 f o r i n f r a s t r u c t u r e , i m p r o v e m e n t s , b u i l d i n g s a n d s t r u c t u r e s .
P r o j e c t s u n d e r c o n s t r u c t i o n a r e r e c o r d e d a t c o s t a s c o n s t r u c t i o n i n p r o g r e s s a n d t r a n s f e r r e d t o t h e
a p p r o p r i a t e a s s e t a c c o u n t w h e n s u b s t a n t i a l l y c o m p l e t e . C o s t s o f m a j o r i m p r o v e m e n t s a n d
r e h a b i l i t a t i o n o f b u i l d i n g s a r e c a p i t a l i z e d . R e p a i r a n d m a i n t e n a n c e c o s t s a r e c h a r g e d t o e x p e n s e
w h e n i n c u r r e d . E q u i p m e n t d i s p o s e d o f , o r n o l o n g e r r e q u i r e d f o r i t s e x i s t i n g u s e , i s r e m o v e d f r o m
t h e r e c o r d s a t a c t u a l o r e s t i m a t e d h i s t o r i c a l c o s t , n e t o f a c c u m u l a t e d d e p r e c i a t i o n .
A l l c a p i t a l a s s e t s , e x c e p t l a n d a n d c o n s t r u c t i o n i n p r o g r e s s , a r e d e p r e c i a t e d u s i n g t h e s t r a i g h t - l i n e
m e t h o d o v e r t h e f o l l o w i n g e s t i m a t e d u s e f u l l i v e s :
A s s e t s Y e a r s
S t r u c t u r e s / I m p r o v e m e n t s 5 0
P u b l i c A c c e s s I n f r a s t r u c t u r e 2 0 - 5 0
E q u i p m e n t / F i x t u r e s 5 - 2 0
V e h i c l e s 5
S o f t w a r e 5 - 1 0
5 . C o m p e n s a t e d A b s e n c e s
I n a c c o r d a n c e w i t h t h e D i s t r i c t ' s m e m o r a n d u m o f u n d e r s t a n d i n g w i t h v a r i o u s e m p l o y e e g r o u p s ,
e m p l o y e e s a c c r u e f i f t e e n d a y s o f v a c a t i o n d u r i n g t h e f i r s t n i n e y e a r s o f s e r v i c e , t w e n t y d a y s
b e t w e e n s e r v i c e y e a r s 1 0 a n d f o u r t e e n , t w e n t y - o n e d a y s b e t w e e n s e r v i c e y e a r s f i f t e e n a n d
n i n e t e e n , t w e n t y - t h r e e d a y s b e t w e e n s e r v i c e y e a r s t w e n t y a n d t w e n t y - f o u r , a n d t w e n t y - f i v e d a y s
a f t e r t w e n t y - f i v e y e a r s o f s e r v i c e . A n e m p l o y e e m a y a c c u m u l a t e v a c a t i o n t i m e e a r n e d t o a
m a x i m u m o f t w o t i m e s t h e a m o u n t o f h i s / h e r a n n u a l v a c a t i o n a c c r u a l .
Full-time employees accrue twelve days of sick leave: annually from the date of employment. An
employee may accumulate sick leave time earned on an unlimited basis. Upon resignation,
separation from service, or retirement from District employment, workers in good standing with
ten or more years of District employment shall receive a cash payment of the equivalent cash
value of accrued sick leave as follows:
Percentage of equivalent
cash value of accrued
Years of Employment sick leave
15-20 20%
16-20 25%
21 or more 30%
An employee hired before June 30, 2006, who retires from the District shall receive a cash
payment of the percentage of equivalent cash value of accrued sick leave based on years of
employment as described above, and apply the remainder of the equivalent cash value toward
his/her cost of retiree medical plan premiums and/or other qualified medical expenses. Upon
retirement, the amount qualified and designated for retiree medical costs shall be deposited in the
Retiree Health Savings (RHS) plan, set up by the District. The cost for maintaining the retiree's
RHS account and the annual fee for the reimbursement process of qualified medical expenses will
be paid for by the retiree.
An employee hired on or after July 1, 2006, who retires from the District may elect to receive
only a cash payment of the percentage of equivalent cash value of accrued sick leave based on
years of employment as described above. In all cases the equivalent cash value of accrued sick
leave will be based on current rate of pay as of the date of separation from District employment.
The District accrues for all salary-related items in the government-wide statements for which they
are liable to make a payment directly and incrementally associated with payments made for
compensated absences on termination. Compensated absences are liquidated by the fund that has
recorded the related liability. The long-term portion of governmental activities compensated
absences is liquidated primarily by the General Fund.
6. Long-Term/Noncurrent Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the Statement of Net Position.
7. Debt Discount and Issuance Costs
Debt discounts, premiums, and prepaid issuance costs are capitalized as an offset to long-term
debt and amortized using the straight line method over the life of the related debt. Issuance costs
for the District's tax-exempt commercial paper short-term borrowings are expensed as incurred.
8.Fund Balance Classifications
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and
Governmental Fund Type Definitions, the District classifies governmental fund balances as
follows:
•Nonspendable fund balance includes amounts that cannot be spent either because it is not in
spendable form or because of legal or contractual constraints.
•Restricted fund balance includes amounts that are constrained for specific purposes which are
externally imposed by providers, such as creditors or amounts constrained due to
constitutional provisions or enabling legislation.
•Committed fund balances includes amounts that are constrained for specific purposes that are
internally imposed by the government through formal action of the highest level of decision
making authority and does not lapse at period-end. Committed fund balances were imposed
by the District’s Board of Directors resolution. Any changes to committed fund balance
requires the approval of two-thirds of the Board.
Committed fund balances were imposed by the District’s Board of Directors as follows:
o Infrastructure: $18.6 million; projected minimum requirement for expansion of field
and office facilities over the next five years.
o Equipment Replacement: $3 million; projected requirement for equipment and
vehicle replacement based on the amount of accumulated depreciation recorded on
capital assets in service.
o Capital maintenance: $5 million; amounts com44mitted to reserve for future capital
repairs and maintenance.
o Future acquisitions and capital projects: $6 million; amounts committed to reserve for
future capital acquisitions and projects.
o Promissory Note: $0.9 million; amounts committed to payment of promissory note.
•Assigned fund balance includes amounts that are intended to be used for specific purposes
that are neither considered restricted or committed. Fund balance may be assigned by the
General Manager, pursuant to Board Policy 3.07, if authorized by the Board of Directors to
make such designations. At June 30, 2020, the District had assigned $710,000 in fund balance
for ongoing projects.
•Unassigned fund balance includes positive amounts within the general fund which has not
been classified within the above-mentioned categories and negative fund balances in other
governmental funds.
The District uses restricted/committed amounts to be spent first when both restricted and
unrestricted fund balance is available unless there are legal documents/contracts that prohibit
doing this, such as a grant agreement requiring dollar for dollar spending. Additionally, the
District would first use committed, then assigned, and lastly unassigned amounts of unrestricted
fund balance when expenditures are made.
9. Net Position
Net position represents the difference between assets, deferred outflows of resources, liabilities
and deferred inflows of resources. Net investment in capital assets consists of capital assets, net
of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the
acquisition, construction or improvement of those assets. In addition, deferred outflows of
resources and deferred inflows of resources that are attributable to the acquisition, construction,
or improvement of those assets or related debt also are included in the net investment in capital
assets component of net position. Net position is reported as restricted when there are limitations
imposed on its use either through the enabling legislation adopted by the District or through
external restrictions imposed by creditors, grantors, laws or regulations of other governments.
The District applies restricted resources when an expense is incurred for purposes for which both
restricted and unrestricted net position is available.
Unrestricted net position reflect amounts that are not subject to any donor-imposed restrictions.
This class also includes restricted contributions whose donor-imposed restrictions were met
during the fiscal period. A deficit unrestricted net position may result when significant cash
balances restricted for capital projects exist. Once the projects are completed, the restriction on
these assets are released and converted to capital assets.
10. Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the
District’s California Public Employees’ Retirement System (CalPERS) plan and additions
to/deductions from the plan’s fiduciary net position have been determined on the same basis as
they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of
GASB Statement No. 27 (GASB Statement No. 68) requires that the reported results pertain to
liability and asset information within certain defined timeframes. For this report, the following
time frames were used:
Valuation Date (VD) ....................................... June 30, 2018
Measurement Date (MD) ................................ June 30, 2019
Measurement Period (MP) .............................. July 1, 2018 to June 30, 2019
11. Other Postemployment Benefits Oher Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred
inflows of resources, and OPEB expense, information about the fiduciary net position of the
District’s Retiree Benefits Plan (the OPEB Plan) and additions to/deductions are based on the
when they are due and payable in accordance with the benefit terms for the measurement period
included in the OPEB plan’s actuarial reports. Investments are reported at fair value, except for
money market investments and participating interest-earning investment contracts that have a
maturity at the time of purchase of one year or less, which are reported at cost.
Valuation Date June 30, 2019
Measurement Date June 30, 2019
Measurement Period July 1, 2018 to June 30, 2019
12. Property Taxes
The District receives property tax revenue from Santa Clara and San Mateo Counties (the
Counties). The Counties are responsible for assessing, collecting and distributing property taxes
in accordance with state law. Secured property taxes are recorded as revenue when apportioned,
in the fiscal period of the levy. The counties apportion secured property tax revenue in
accordance with the alternate method of distribution prescribed by Section 4705 of the California
Revenue and Taxation Code. This alternate method provides for crediting each applicable fund
with its total secured taxes upon completion of the secured tax roll - approximately October 1 of
each year. Taxes are levied annually on July 1st, and one-half are due by November 1st and one-
half by February 1st. Taxes are delinquent after December 10th and April 10th, respectively.
Supplemental property taxes are levied on a pro-rata basis when changes in assessed valuation
occur due to the completion of construction or sales transactions. Liens on real property are
established on January 15th for the ensuing fiscal period.
On June 30, 1993, the Board of Supervisors adopted the "Teeter" method of property tax
allocation. This method allocates property taxes based on the total property tax billed. At year-
end, the Counties advances cash to each taxing jurisdiction equal to its current year delinquent
taxes. Once the delinquent taxes are collected, the revenue from penalties and interest remains
with each County and is used to pay the interest cost of borrowing the cash used for the advances.
13. Accounting Estimates
The presentation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
I. Upcoming Accounting and Reporting Changes
GASB Statement No. 84, Fiduciary Activities
The objective of this Statement is to improve guidance regarding the identification of fiduciary
activities for accounting and financial reporting purposes and how those activities should be reported.
This Statement establishes criteria for identifying fiduciary activities of all state and local
governments. The focus of the criteria generally is on (1) whether a government is controlling the
assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists.
Separate criteria are included to identify fiduciary component units and postemployment benefit
arrangements that are fiduciary activities. The requirements of this Statement are effective for
financial statements for periods beginning after December 15, 2018 but have been delayed to periods
beginning after December 15, 2019, pursuant to GASB Statement No. 95. Earlier application is
encouraged. The District doesn’t believe this statement will have a significant impact on the District’s
financial statements.
GASB issued Statement No. 87, Leases
The objective of this statement is to better meet the information needs of financial statement users by
improving accounting and financial reporting for leases by governments. This statement increases the
usefulness of governments’ financial statements by requiring recognition of certain lease assets and
liabilities for leases that previously were classified as operating leases and recognized as inflows of
resources or outflows of resources based on the payment provisions of the contract. It establishes a
single model for lease accounting based on the foundational principle that leases are financings of the
right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability
and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a
deferred inflow of resources, thereby enhancing the relevance and consistency of information about
governments’ leasing activities. The requirements of this Statement are effective for financial
statements for periods beginning after December 15, 2019 but have been delayed to periods beginning
after December 15, 2021, pursuant to GASB Statement No. 95. Earlier application is encouraged. The
District is in the process of determining the impact this Statement will have on the financial
statements.
GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of the
Construction Period
This Statement addresses interest costs incurred before the end of a construction period be recognized
as an expense in the period in which the cost is incurred for financial statements prepared using the
economic resources measurement focus. As a result, interest cost incurred before the end of a
construction period will not be included in the historical cost of a capital asset reported in a business-
type activity or enterprise fund. The requirements of this Statement were initially to be effective for
financial statements for periods beginning after December 15, 2019 but have been delayed to periods
beginning after December 15, 2020, pursuant to GASB Statement No. 95. Earlier application is
encouraged. The District doesn’t believe this statement will have a significant impact on the District’s
financial statements.
GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statements No. 14
and No. 61
The objectives of this Statement are to improve the consistency and comparability of reporting a
government’s majority equity interest in a legally separate organization and to improve the relevance
of financial statement information for certain component units. This Statement also requires that a
component unit in which a government has 100 percent equity interest account for its assets, deferred
outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the
government acquired a 100 percent equity interest in the component unit. The requirements of this
Statement were initially to be effective for financial statements for periods beginning after December
15, 2018, but have been delayed to periods beginning after December 15, 2019, pursuant to GASB
Statement No. 95. The requirements should be applied retroactively, except for the provisions related
to (1) reporting a majority equity interest in a component unit and (2) reporting a component unit if
the government acquires a 100 percent equity interest. Those provisions should be applied on a
prospective basis. The District doesn’t believe this statement will have a significant impact on the
District’s financial statements.
GASB Statement No. 91, Conduit Debt Obligations
The objectives of this Statement are to provide a single method of reporting conduit debt obligations
by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers,
(2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This
Statement also clarifies the existing definition of a conduit debt obligation; establishing that a conduit
debt obligation is not a liability of the issuer; establishing standards for accounting and financial
reporting of additional commitment and voluntary commitments extended by issuers and
arrangements associated with the debt obligations; and improving required note disclosures. The
requirements of this Statement were initially to be effective for financial statements for periods
beginning after December 15, 2020 but have been delayed to periods beginning after December 15,
2021, pursuant to GASB Statement No. 95. Earlier application is encouraged. The District doesn’t
believe this statement will have a significant impact on the District’s financial statements.
GASB Statement No. 92, Omnibus 2020
The objectives of this Statement are to enhance comparability in accounting and financial reporting
and to improve the consistency of authoritative literature by addressing practice issues that have been
identified during implementation and application of certain GASB Statements. This Statement
establishes accounting and financial reporting requirements for specific issues related to leases, intra-
entity transfers of assets, postemployment benefits, government acquisitions, risk financing and
insurance-related activities of public entity risk pools, fair value measurements, and derivative
instruments. The requirements of this Statement apply to the financial statements of all state and local
governments. The requirements of this Statement were initially to be effective for financial statements
for periods beginning after June 15, 2020 but have been delayed to periods beginning after June 15,
2021, pursuant to GASB Statement No. 95. Earlier application is encouraged. The District does not
believe this statement will have a significant impact on the District’s financial statements.
GASB Statement No. 93, Replacement of Interbank Offered Rates
This Statement establishes accounting and financial reporting requirements related to the replacement
of IBORs in hedging derivative instruments and leases. It also identifies appropriate benchmark
interest rates for hedging derivative instruments. The requirements of this Statement apply to the
financial statements of all state and local governments. The requirements of this Statement apply to
the financial statements of all state and local governments. The requirements of this Statement were
initially to be effective for financial statements for periods beginning after June 15, 2020 but have
been delayed to periods beginning after June 15, 2021, pursuant to GASB Statement No. 95. Earlier
application is encouraged. The District does not believe this statement will have a significant impact
on the District’s financial statements.
GASB Statement No. 94, Public-Private Partnerships and Public-Public Partnerships and
Availability Payment Arrangements
The primary objective of this Statement is to improve financial reporting by addressing issues related
to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP
is an arrangement in which a government (the transferor) contracts with an operator (a governmental
or nongovernmental entity) to provide public services by conveying control of the right to operate or
use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a
period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a
service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which
(1) the operator collects and is compensated by fees from third parties; (2) the transferor determines
or has the ability to modify or approve which services the operator is required to provide, to whom
the operator is required to provide the services, and the prices or rates that can be charged for the
services; and (3) the transferor is entitled to significant residual interest in the service utility of the
underlying PPP asset at the end of the arrangement. This Statement also provides guidance for
accounting and financial reporting for availability payment arrangements (APAs). As defined in this
Statement, an APA is an arrangement in which a government compensates an operator for services
that may include designing, constructing, financing, maintaining, or operating an underlying
nonfinancial asset for a period of time in an exchange or exchange-like transaction. The requirements
of this Statement are to be effective for financial statements for periods beginning after June 15, 2022.
Earlier application is encouraged. The District does not believe this statement will have a significant
impact on the District’s financial statements.
NOTE 2 - CASH AND INVESTMENTS
Summary of Cash and Investments
The following summarizes deposits as of June 30, 2020:
Cash and
Cash Equivalents
Available
Cash and Investments for Operations Restricted Total
Cash Deposits:
Cash in Banks 1,033,881$ 48,810$ 1,082,691$
Cash with Fiscal Agent - 4,062,851 4,062,851
Petty Cash 1,091 - 1,091
Total Cash Deposits 1,034,972 4,111,661 5,146,633
Investments:
California Local Agency Investment Fund 6,697,753 - 6,697,753
CalTRUST - 1,671,245 1,671,245
Brokerage Accounts/Cash with Fiscal Agents 11,013,890 40,769,369 51,783,259
Santa Clara County Pool 34,530,740 4,809,675 39,340,415
Total Investments 52,242,383 47,250,289 99,492,672
Total Cash and Investments 53,277,355$ 51,361,950$ 104,639,305$
Cash in Banks
Cash balances in banks are insured up to $250,000 per insured bank by the Federal Deposit Insurance
Corporation ("FDIC"). The District’s accounts are held with various banks. As of June 30, 2020, the
District’s bank balances exceeded FDIC coverage by $1,044,181.
Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques above. This hierarchy has three
levels:
• Level 1 inputs are quoted prices in active markets for identical assets or liabilities.
• Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical
or similar assets or liabilities in markets that are not active, or other than quoted prices that are
not observable
• Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.
The District has the following investments with recurring fair value measurements as of June 30, 2020:
12 Months 13 - 24 25 - 60 More Than
Rating Fair Value or Less Months Months 60 Months
Money Market Accounts n/a 8,484,426$ n/a 8,484,426$ -$ -$ -$ 8.53%
Municipal Bonds AAA/A-9,518,348 Level 2 7,036,204 1,862,806 - 619,338 9.57%
Corp/Gov Bonds AAA/A-31,177,588 Level 1 27,339,627 3,837,961 - - 31.36%
LAIF n/a 6,730,658 Level 2 6,730,658 - - - 6.77%
CalTrust A+f 1,671,245 Level 2 - - 1,671,245 - 1.68%
Santa Clara County Pool n/a 39,340,415 Level 2 21,302,411 6,139,634 11,898,370 - 39.57%
U.S. Obligations AA+/A-2,503,435 Level 1 2,503,435 - - - 2.52%
Total Investments 99,426,115$ 73,396,761$ 11,840,401$ 13,569,615$ 619,338$ 100.00%
Concen-
trationsInvestment Type
Input
Level
Maturities
Cash in Santa Clara County Treasury
Santa Clara County is a fiscal agent of the District. The fair value of the District's investment in the
county pool is reported at amounts based on the District's pro-rata share of the fair value provided by the
County Treasurer for the entire portfolio (in relation to the amortized cost of the portfolio). The balance
available for withdrawal is based on the accounting records maintained by the County Treasurer, which is
recorded on the amortized costs basis. Santa Clara County investment pool funds were available for
withdrawal on demand and had an average maturity date of less than one year. All cash and investments
are stated at fair value. Pooled investment earnings are allocated monthly based on the average cash and
investment balances of the various funds of the County.
California Local Agency Investment Fund
The District is a participant in the Local Agency investment Fund (LAIF) that is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The
District reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as
the value of the pool share. The balance is available for withdrawal on demand, and is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in
LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other
asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies,
government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30,
2020, these investments had an average maturity date of less than one year.
Investment Trust of California
The District is a participant in the Investment Trust of California (CalTRUST) which is a California joint
powers authority that has been established by its members pursuant to an agreement. The California
Government Code provides that Public Agencies may purchase shares of beneficial interest issues by a
joint powers authority, such as CalTRUST, organized pursuant to the Section 6500 of the Act. The
District reports its investment in CalTRUST at the fair value amount provided by CalTRUST. The
District participates in the Medium-Term Fund with CalTRUST. The balance in this Medium-Term Fund
is available for withdrawal once a week (on Wednesdays), and is based on the net asset value per share on
the Wednesday of each week. Included in CalTRUST's investment portfolio for the Medium-Term Fund
are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans
to certain state funds, and floating rate securities issued by federal agencies, government-sponsored
enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2020, these investments
had an average maturity date of 2 to 5 years.
Investments Authorized by Debt Agreements
The District must maintain required amounts of cash and investments with trustees or fiscal agents under
the terms of certain debt issues. These funds are used if the District fails to meet its obligations under
these debt issues.
Restricted for Debt Service
As of June 30, 2020, the District had $4,149 held by Zions bank as trustee, pledged to the payment or
security of its outstanding bond issues. The District also had $4,809,675 held by the County during the
period which was pledged to the payment or security of its outstanding bonds. All transactions associated
with debt service were administered by the Bank or County.
Restricted for Hawthorne Property Maintenance
On November 10, 2011, the District received the gift of the 79-acre Hawthorne property, in Portola
Valley, California, and an endowment of $2,018,445 to manage the property in perpetuity. The cash
balance restricted for this purpose at June 30, 2020 was $1,671,245.
Restricted for Measure AA Bond Projects
As of June 30, 2020, the District had $33,044,310 held by Zions bank as trustee, pledged to specific
projects related to the acquisition of property to protect and preserve natural open space lands,
constructions of public access improvements and recreation and capital enhancements to open space lands
to restore disturbed natural areas back to their original condition and function.
Restricted for Staffing Facilities
As of June 30, 2020, the District had $7,720,572 held by Zions bank as trustee, pledged to finance portion
of the cost of acquiring and improving staffing facilities for use by the District.
Restricted for Historic Picchetti Reserve
As of June 30, 2020, the District had $48,810 held with Wells Fargo, pledged for upkeep on the Picchetti
Ranch brick winery building and farm complex.
Restricted Cash with Fiscal Agent
For the year ended June 30, 2020, the District had a balance of $4,063,202 in a Public Agency Retirement
Services (PARS) Pension Rate Stabilization Program (PRSP) 115 irrevocable trust for pensions.
Participating agencies maintain oversight of investment management and control over the risk tolerance
level. Assets in the plan can be accessed to offset unexpected rate increases or be used as a rainy day fund
related to their pension plan (CalPERS). These assets are not dedicated to providing plan benefits to plan
participants and are not directly used to pay benefits until such time as the District transfers the funds
from the PARS trust to the pension plan (CalPERS). The trust restricts the use of the assets to be used
solely for pension related expenses.
Policies and Practices
The District's Investment Policy and the California Government Code allow the District to invest in the
following, provided the credit ratings of the issuers are acceptable to the District and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of the
California Government Code or the District's Investment Policy where it is more restrictive:
Authorized Investment Type
Maximum
Remaining
Maturity
Maximum Percentage of
Portfolio
Maximum
Investment
in one Issuer
Medium Term Notes 5 years
30%No Limit
Money Market and Mutual Funds N/A 20%10%
U.S. Treasury Obligations 5 years
No Limit No Limit
Federal Agency Securities 5 years
No Limit No Limit
Banker's Acceptance 180 days 40%30%
Commercial Paper 270 days 25%10%
Negotiable Certificates of Deposit 5 years 30%No Limit
Repurchase Agreements 1 year No Limit No Limit
Reverse Repurchase Agreements 92 days 20%No Limit
Local Agency Investment Fund (LAIF)N/A $40 million per account No Limit
a) Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to the changes in market interest rates. The District manages its exposure to interest rate
risk by investing in the Santa Clara County investment pool and LAIF, which had fair values of
approximately $9 billion and $101 billion, respectively as of June 30, 2020, and diversifying its
investments, as noted above, through the utilization of brokers.
b) Credit Risk
Credit risk is the risk of loss due to the failure of the security issuer. This is measured by the
assignment of a rating by a nationally recognized statistical rating organization. The investment with
the County’s investment pool is governed by the County’s general investment policy. The County’s
investments in 2020 included U.S. government securities or obligations explicitly guaranteed by the
U.S. government that are not considered to have credit risk exposure. See the schedule above for a
summary of the District’s ratings by investment type.
c) Custodial Credit Risk – Deposits
Custodial credit risk is the risk that in the event of a bank failure, the District’s deposits may not be
returned to it. The District does not have a policy for custodial credit risk for deposits. However, the
California Government code requires that a financial institution secure deposits made by State or
local governmental units by pledging securities in an undivided collateral pool held by a depository
regulated under State law (unless so waived by the governmental unit). The market value of the
pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited
by the public agencies. California law also allows financial institutions to secure public deposits by
pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits
and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105
percent of the secured deposits.
d) Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investor’s holdings in
a single issuer. The District’s investment in the County’s commingled pool is diversified by the
County Treasurer by limiting the percentage of the portfolio that can be invested in any one issuer’s
name. Investments in U.S. Treasuries, U.S. Agency securities explicitly backed by the U.S., and
mutual and pooled funds are not subject to this limitation.
More than 5% of the County’s commingled pooled investments are invested with the Federal
National Mortgage Association, Federal Home Loan Bank, Federal Home Loan Mortgage
Corporation, and Federal Farm Credit Bank.
NOTE 3 - INTERFUND TRANSACTIONS
Interfund Receivables and Payables
Interfund transactions are reported as loans or transfers. The District utilizes interfund transactions to
account for funding received by the General Fund which is then distributed to the other funds for special
uses, such as payment of debt or capital project and to supplement other funding sources. Loans are
reported as interfund receivables and payables, as appropriate, and are subject to elimination upon
consolidation.
The following interfund loans were outstanding at fiscal year end June 30, 2020:
Fund
Due from
Other Funds
Due to
Other Funds
General Fund 9,308,458$ 9,391,445$
Meas ure AA Capital Projects Fund 9,702,604 9,308,458
GF Capital Projects Fund - 311,159
Total 19,011,062$ 19,011,062$
At June 30, 2020, interfund transfers consisted of the following:
Fund Transfer In Transfer Out
General Fund 889,920$ 20,220,354$
GF Capital Projects Fund 9,827,543 889,920
Debt Service Fund 10,392,811 -
Total 21,110,274$ 21,110,274$
NOTE 4 - NOTES RECEIVABLE
On December 17, 1997, the District sold the title to and possession of a 50-year fee determinable estate
10-acre parcel near the Skyline Ridge Open Space Preserve. The District financed the purchase in the
amount of $288,800 over 25 years at a rate of 10% per annum. Monthly principal and interest payments
of $2,634 are due on the 1st of each month and late if not paid by the 10th, with the final payment
scheduled December 1, 2022. The outstanding balance at June 30, 2020 was $74,509.
NOTE 5 - CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the period ended June 30, 2020 is shown below:
Balance Deletion s/Balance
Capital Assets June 30, 2019 Additions Adjustments June 30, 2020
Non-depreciable:
Land 437,763,645$ 12,885,114$ (550,000)$ 450,098,759$
Construction in Progress 16,193,374 10,966,455 (9,846,322) 17,313,507
Total Non-Depreciable 453,957,019 23,851,569 (10,396,322) 467,412,266
Depreciable:
Structure and Improvements 28,204,751 1,374,750 550,000 30,129,501
Infrastructure 34,798,646 8,978,747 - 43,777,393
Equipment 2,652,783 161,159 - 2,813,942
Vehicles 5,240,790 154,727 (106,991) 5,288,526
Total Depreciable 70,896,970 10,669,383 443,009 82,009,362
Less Accumulated Depreciation for:
Structure and Improvements (10,145,021) (866,293) - (11,011,314)
Infrastructure (5,256,432) (1,427,640) - (6,684,072)
Equipment (1,539,169) (182,666) - (1,721,835)
Vehicles (3,353,958) (647,280) 98,148 (3,903,090)
Total Accumulated Depreciation (20,294,580) (3,123,879) 98,148 (23,320,311)
Total Depreciable Capital Assets - Net 50,602,390 7,545,504 541,157 58,689,051
Total Capital Assets - Net 504,559,409$ 31,397,073$ (9,855,165)$ 526,101,317$
NOTE 6 - LONG-TERM LIABILITIES
The following is a summary of the changes in long-term liabilities for the period ended June 30, 2020:
Beginning Ending Due Within
Long-term Liabilities Balance Additions Deductions Balance One Year
Promissory Notes (Direct Borrowings):
Current Interest 24,239,999$ -$ 1,285,000$ 22,954,999$ 1,370,000$
Capital Appreciation 6,580,602 - - 6,580,602 -
Accreted interest 2,927,510 507,362 - 3,434,872 -
Unamortized Premium 5,151,823 - 183,690 4,968,133 -
Subtotal Promissory Notes 38,899,934 507,362 1,468,690 37,938,606 1,370,000
Bonds:
Current Interest 179,090,000 - 7,830,000 171,260,000 7,025,000
Unamortized Bond Premium 20,415,576 - 1,120,342 19,295,234 -
Subtotal Bonds 199,505,576 - 8,950,342 190,555,234 7,025,000
Net Pension Liability 10,412,478 8,696,336 7,280,187 11,828,627 -
Net OPEB Liability 1,862,277 1,163,653 1,525,086 1,500,844 -
Compensated Absences 2,368,387 732,284 323,520 2,777,151 883,885
Total Long-term Liabilities 253,048,652$ 11,099,635$ 19,547,825$ 244,600,462$ 9,278,885$
Compensated absences, other postemployment benefits and pension liabilities are paid by the fund for
which the employee worked, which included General Fund and MAA Capital Projects Funds.
Promissory Notes
Hunt Living Trust Promissory Note
On April 1, 2003, the District entered into a $1,500,000 promissory note with the Hunt Living Trust as
part of a lease and management agreement. The note is due in full on April 1, 2023 and bears interest at
5.5% semi-annually through April 1, 2013 and 5.0% per annum until the maturity, or prior redemption, of
the note.
2012 Refunding Promissory Notes
On January 19, 2012, the District advance refunded $34,652,643 in 1999 lease revenue bonds by issuing
$31,264,707 in promissory notes. The 2012 notes bear interest rates ranging from 2.00% to 6.04%. The
notes are a blend of current interest and capital appreciation notes maturing through 2042. The net
proceeds of $33,295,663 (after payment of $278,683 in underwriting fees, insurance, and other issuance
costs and a premium of $2,309,638) were used to purchase U.S government securities. Those securities
were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments
on the 1999 Series bonds. As a result, the 1999 Series bonds are considered to be defeased and the
liability for those bonds has been removed from the long-term debt in the financial statements. The 2012
Refunding Promissory Notes were partially defeased during fiscal year 2018 with issuance of the 2017
Refunding Bond as noted below. The notes are secured by limited ad valorem property taxes levied upon
all taxable property in the District.
2015 Refunding Promissory Notes
On January 22, 2015, the District advance refunded $29,986,962 in 2004 Revenue Bonds by issuing
$28,578,500 in promissory notes. The 2015 notes bear interest rates ranging from 2.00% to 5.00%. The
notes are current interest notes maturing through 2035. The net proceeds of $28,325,491 (after payment of
$253,009 in underwriting fees, insurance, and other issuance costs and a premium of $4,948,500) were
used to purchase U.S government securities. Those securities were deposited in an irrevocable trust with
an escrow agent to provide for all future debt service payments on the 2004 Revenue Bonds. As a result,
the 2004 Revenue Bonds are considered to be defeased and the liability for those bonds has been removed
from the long-term debt in the financial statements. The notes are secured by limited ad valorem property
taxes levied upon all taxable property in the District.
Revenue and General Obligation Bonds
2011 Revenue Bonds
On May 19, 2011, the Authority, on behalf of the District, issued $20,500,000 of 2011 Revenue Bonds for
the purpose of acquiring land to preserve and use as open space and pay bond issue and related costs. The
Bonds are not general obligations. Each period, the District will appropriate revenues-mainly limited
properly tax collections that Santa Clara County and San Mateo County allocate to the District – to pay its
obligations under a Lease Agreement for use and occupancy of District land in addition to other District
debt and lease obligations unrelated to this financing. The Current Interest Bonds bear interest at 2.0% to
6.0% and are due semi-annually on March 1 and September 1. Principal payments on the Current Interest
Bonds are due annually September 1. This Bond was partially defeased during fiscal year 2017 with
issuance of the 2016 Refunding Series A and B Green Bonds as noted below. There is no remedy to the
District for default beyond the security provided in the indenture and debt reserves established.
2015A and 2015B General Obligation Bonds
On July 29, 2015, the District issued $40,000,000 of 2015A general obligation bonds and $5,000,000 of
2015B federally taxable general obligation bonds to finance certain projects authorized by voters. The
bonds bear interest from 1.5% to 5% and are due semi-annually on March 1 and September 1. The bonds
were issued at a premium of $2,559,224 with an underwriter’s discount of $107,599 and issuance costs of
$170,000. The bonds are secured by ad valorem property taxes levied by the District. There is no remedy
to the District for default beyond the security provided in the indenture and debt reserves established.
2016A and 2016B Refunding Green Bonds
On September 8, 2016 the District issued $54,490,000 of 2016 Refunding Series A and $2,920,000 of
2016 Refunding Series B Green Bonds for the purpose of refunding its outstanding obligations under the
2007 Series A Revenue Refunding Bonds and prepay a portion of its obligations under the 2011 Lease
Revenue Bonds. As a result, the 2007 Series A Revenue Refunding Bonds and the 2011 Lease Revenue
Bonds are considered to be defeased and the liability for those bonds has been removed from the
government-wide financial statement of net position.
The refunding resulted in a difference between the reacquisition price and the net carrying amount of the
old debt of $5,032,161, which is reported as a deferred outflow on the government-wide statement of net
position. This difference, reported in the accompanying financial statements as a deduction from bonds
payable, is being charged to operations through fiscal year 2036 using the straight-line method. The
District completed the refunding to obtain an economic gain (difference between the present value of the
old and the new debt service payments) of $12,694,440.
The 2016 Refunding Green Bonds Series A bears interest from 2.0% to 5.0% and the Series B bears
interest of 0.73%. Interest for both Series A and B are due semi-annually on March 1 and September 1.
Principal payments for Series A began September 2017 and are due annually thereafter until September
2036. Series B has only one principal payment in September 2017. The bonds are secured by the
District’s share of the general 1% ad valorem property tax levied in the District. There is no remedy to the
District for default beyond the security provided in the indenture and debt reserves established.
2017 Series A Refunding Green Bonds
On December 13, 2017 the District issued $25,025,000 of 2017 Refunding Green Bonds for the purpose
of partially refunding its outstanding obligations under the 2012 Refunding Promissory Notes. The
proceeds of the 2017 Refunding Green Bonds, together with $676,232 of other District funds, were used
to defease and redeem $11,605,000 principal amount of the District’s outstanding 2012 Current Interest
Notes and $8,894,106 initial principal of the District’s outstanding 2012 Capital Appreciation Notes,
collectively, the 2012 Refunding Promissory Notes. The amounts defeased have been removed from the
government-wide financial statement of net position.
The refunding resulted in a difference between the reacquisition price and the net carrying amount of the
old debt of $4,113,597, which is reported as a deferred outflow on the government-wide statement of net
position. This difference, reported in the accompanying financial statements as a deduction from bonds
payable, is being charged to operations through fiscal year 2033 using the straight-line method. The
District completed the refunding to obtain an economic gain (difference between the present value of the
old and the new debt service payments) of $8,882,524.
The 2017 Refunding Green Bonds bears interest from 3.125% to 5.0%. Interest is due semi-annually on
March 1 and September 1. Principal payments begin September 2025 and are due annually thereafter until
September 2037. The bonds are secured by the District’s share of the general 1% ad valorem property tax
levied in the District. There is no remedy to the District for default beyond the security provided in the
indenture and debt reserves established.
2017 Series B Parity Bonds
On December 13, 2017, the District issued $11,220,000 of 2017 parity bonds to finance portion of the
cost of acquiring and improving staffing facilities for use by the District. The bonds bear interest of 5%
and are due semi-annually on June 30 and December 30. The bonds were issued at a premium of
$1,413,434 and issuance costs of $133,434. The bonds are secured by the District’s share of the general
1% ad valorem property tax levied in the District. There is no remedy to the District for default beyond
the security provided in the indenture and debt reserves established.
2018 General Obligation Bonds
On February 1, 2018, the District issued $50,000,000 of 2018 general obligation bonds to finance 25
projects specified in Measure AA. The bonds bear interest from 2% to 5% and are due semi-annually on
March 1 and September 1. The bonds were issued at a premium of $3,691,291 with an issuance costs of
$455,462. The bonds are secured by the District’s share of the general 1% ad valorem property tax levied
in the District. There is no remedy to the District for default beyond the security provided in the indenture
and debt reserves established.
The following schedule summarizes the District’s outstanding promissory notes and bonds as of June 30,
2020:
Original Beginning Ending
Long Term Debt Issue Balance Additions Retirements Balance
Promissory Notes (Direct Borrowings):
Hunt Note 1,500,000$ 1,500,000$ -$ -$ 1,500,000$
2012 Refunding Note Current Int.15,790,000 1,729,999 - 410,000 1,319,999
2012 Refunding Note Cap Apprec.15,474,708 6,580,602 - - 6,580,602
2015 Refunding Note 23,630,000 21,010,000 - 875,000 20,135,000
Subtotal Promissory Notes 56,394,708 30,820,601 - 1,285,000 29,535,601
Bonds:
2011 Lease Revenue 20,500,000 750,000 - 215,000 535,000
2015A General Obligation Bonds 40,000,000 40,000,000 - - 40,000,000
2015B General Obligation Bonds 5,000,000 2,460,000 - 905,000 1,555,000
2016 Refunding Bonds 57,410,000 50,435,000 - 3,025,000 47,410,000
2017 Refunding Bonds 25,025,000 25,025,000 - - 25,025,000
2017 Parity Bonds 11,220,000 10,420,000 - 940,000 9,480,000
2018 General Obligation Bonds 50,000,000 50,000,000 - 2,745,000 47,255,000
Subtotal Bonds 209,155,000 179,090,000 - 7,830,000 171,260,000
Accreted Interest:
2012 Refunding Note 2,927,510 507,362 - 3,434,872
Subtotal Accreted Interest 2,927,510 507,362 - 3,434,872
Unamortized Bond Premium 25,567,399 - 1,304,032 24,263,367
Total Long Term Debt 265,549,708$ 238,405,510$ 507,362$ 10,419,032$ 228,493,840$
The promissory notes future debt service requirements as of June 30, 2020 were as follows:
Year Ending June 30,Principal
Remaining
Accretion Interest Total
2021 1,370,000$ -$ 1,084,025$ 2,454,025$
2022 1,445,000 - 1,029,625 2,474,625
2023 3,040,000 - 963,950 4,003,950
2024 1,170,000 - 825,750 1,995,750
2025 1,225,000 - 765,875 1,990,875
2026-2030 7,507,418 - 2,814,875 10,322,293
2031-2035 13,778,183 6,328,738 927,250 21,034,171
2036-2040 - 2,190,790 - 2,190,790
Total Debt Service 29,535,601$ 8,519,528$ 8,411,350$ 46,466,479$
The bonds future debt service requirements as of June 30, 2020 were as follows:
Year Ending June 30,Principal
Remaining
Accretion Interest Total
2021 7,025,000$ -$ 7,161,901$ 14,186,901$
2022 6,675,000 - 6,895,263 13,570,263
2023 6,990,000 - 6,589,537 13,579,537
2024 7,375,000 - 6,239,763 13,614,763
2025 7,780,000 - 5,865,663 13,645,663
2026-2030 39,265,000 - 23,247,577 62,512,577
2031-2035 24,405,000 - 16,590,233 40,995,233
2036-2040 37,695,000 - 9,736,138 47,431,138
2041-2045 21,580,000 - 4,720,000 26,300,000
2046-2050 12,470,000 - 867,000 13,337,000
Total Debt Service 171,260,000$ -$ 87,913,075$ 259,173,075$
Amortization of the deferred loss on early retirement of long-term debt for the fiscal period ended June
30, 2020 was as follows:
Beginning Balance 9,395,702$
Amortization (845,125)
Ending Balance 8,550,577$
NOTE 7 - RENTAL INCOME
The District rents certain land and structures to other entities under operating leases with terms generally
on a month-to-month basis. Rental income of $2,275,834 was received during the period ended June 30,
2020.
NOTE 8 - CALPERS PENSION PLAN
Pension Plan
General Information about the Pension Plans
Plan Description - The District provides benefits to eligible employees through cost-sharing multiple
employer defined benefit pension plans (the Plan(s)) administered by the California Public Employees’
Retirement System (CalPERS). Members of the Plan include all permanent employees working full-time.
Benefit provisions under the Plans are established by State statute and District resolution. CalPERS issues
publicly available reports that include a full description of the pension plans regarding benefit provisions,
assumptions and membership information that can be found on the CalPERS website.
Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full-time employment. Members with
five years of total service are eligible to retire at age 55 with statutorily reduced benefits. All members are
eligible for non-industrial disability benefits after 10 years of service. The death benefit is the Optional
Settlement 2W Death Benefit. The cost of living adjustments for the Plan are applied as specified by the
Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2020, are summarized as follows:
Tier 1 PEPRA
Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 Years 5 Years
Benefit payments Monthly for Life Monthly for Life
Retirement age 55 62
Monthly benefits as a % of eligible compensation 2.0% to 2.5%2.00%
Required employee contribution rates 8.000%6.750%
Required employer contribution rates 11.432%6.985%
Miscellaneous
Employees Covered – At June 30, 2020, the following employees were covered by the benefit terms for
the Plan:
Miscellaneous
Active 154
Transferred 55
Separated 73
Retired 81
Total 363
Contributions - Section 20814(c) of the California Public Employees’ Retirement Law requires that the
employer contribution rates for all public employers be determined on an annual basis by the actuary and
shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the
Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined
rate is the estimated amount necessary to finance the costs of benefits earned by employees during the
year, with an additional amount to finance any unfunded accrued liability. The District is required to
contribute the difference between the actuarially determined rate and the contribution rate of employees.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2020, the District reported net pension liabilities for its proportionate shares of the net
pension liability as follows:
Miscellaneous
Proportionate Share
of Net Pension
Liability/(Asset)
$ 11,828,627
The District’s net pension liability for the Plan is measured as the proportionate share of the net pension
liability. The net pension liability of the Plan is measured as of June 30, 1899, and the total pension
liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation
as of June 30, 1899 using standard procedures. The District’s proportion of the net pension liability was
based on a projection of the District’s long-term share of contributions into the pension plan relative to
the projected contributions of all participating employers, as actuarially determined. The District’s
proportionate share of the net pension liability for the Plan as of fiscal years June 30, 1899 and 2020 was
as follows:
Miscellaneous
Proportion - June 30, 2019 0.27629%
Proportion - June 30, 2020 0.29538%
Change - Increase/(Decrease)0.01910%
For the fiscal year ended June 30, 2020, the District recognized pension expense of $3,818,097. At fiscal
year June 30, 2020, the District reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred
Outflows of
Resou rces
Deferred
Inflows of
Resources
Changes of Assumptions 564,044$ 199,949$
Differences between Expected and Actual Experience 821,548 63,653
Differences between Projected and Actual Investment Earnings - 206,801
Differences between Employer's Contributions and
Proportionate Share of Contributions 131,657 1,042,638
Change in Employer's Proportion 1,032,142 57,627
Pension Contributions Made Subsequent to Measurement Date 1,534,253 -
Total 4,083,643$ 1,570,668$
The District reported $1,534,253 as deferred outflows of resources related to contributions subsequent to
the measurement date that will be recognized as a reduction of the net pension liability in the year ended
June 30, 2021.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
1,017,319$
(64,915)
(15,469)
41,788
-
-
978,723$
Deferred
Outflows/
(Inflows) of
Resources
Fiscal Year
Ending June 30:
Thereafter
Total
2022
2023
2024
2025
2021
Actuarial Assumptions - The total pension liabilities in the June 30, 1899 actuarial valuations were
determined using the following actuarial assumptions:
Valuation Date June 30, 2018
Measurement Date June 30, 2019
Actuarial Cost Method Entry-Age Normal
Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Infla t ion 2.50%
Payroll Growth 2.75%
Projected Salary Increase (1)
Investment Rate of Return 7.15% (2)
Mortality (3)
(1) Varies by entry age and service
(2) Net of pension plan investment expenses, including inflation
(3) Derived using CalPERS' membership data for all funds
Discount Rate - The discount rate used to measure the total pension liability was 7.15 percent for each
Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate
for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be
different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out
of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond
rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be applied to
all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a
detailed report that can be obtained from the CalPERS’ website.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations as well as the expected pension fund cash flows. Using historical
returns of all the funds’ asset classes, expected compound returns were calculated over the short-term
(first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected
nominal returns for both short-term and long-term, the present value of benefits was calculated for each
fund. The expected rate of return was set by calculating the rounded single equivalent expected return
that arrived at the same present value of benefits for cash flows as the one calculated using both short-
term and long-term returns. The expected rate of return was then set equivalent to the single equivalent
rate calculated above and adjusted to account for assumed administrative expenses.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset
allocation.
Assumed
Asset Real Return Real Return
Asset Class (a)Allocation Years 1 - 10 (b)Years 11+ (c)
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Sensitive 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(a) In the System's CAFR, Fixed Income is included in Global Debt Securities; Liquidity
Liquidity is included in Short-term Investments; Inflation Assets are included in both
Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.0% used for this period.
(c) An expected inflation of 2.92% used for this period.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
- The following presents the District’s proportionate share of the net pension liability for the Plan,
calculated using the discount rate for the Plan, as well as what the District’s proportionate share of the net
pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-
percentage point higher than the current rate:
Miscellaneous
1% Decrease 6.15%
Net Pension Liability 21,676,810$
Current 7.15%
Net Pension Liability 11,828,627$
1% Increase 8.15%
Net Pension Liability 3,699,648$
Pension Plan Fiduciary Net Position - Detailed information about each pension plan’s fiduciary net
position is available in the separately issued CalPERS financial reports.
PARS Section 115 Trust - During fiscal year 2017-18, the District established a Section 115 Trust Fund
for Pension Costs with Public Agency Retirement Services (PARS). The amount in this trust is not
included as part of the District's net pension liability calculation.
NOTE 9 - POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Plan Description - The District joined the California Employers' Retiree Benefit Trust (CERBT), an
agent multiple-employer defined benefit postemployment healthcare plan administered by CalPERS. See
eligibility requirements below. Retiree benefit continues to surviving spouse if retiree elects survivor
annuity under CalPERS retirement plan. The OPEB plan’s audited financial statements are available at
https://www.calpers.ca.gov/docs/forms-publications/gasb-75-schedule-changes-fiduciary-net-position-
2017.pdf.
Benefits Provided - The following is a summary of the plan benefits provided:
Eligibility:Retire directly from the District under CalPER (age 50 and 5
years of service)
Continue participation in PEMHCA
Retiree Medical Benefit:District pays retiree medical premiums up to:
- $300/month effective 1/1/07
- $350/month effective 1/1/09
Must be at least equal to statutory PEMHCA minimum
($122 in 2015, $125 in 2016)
PEMHCA Administrative Fee:District pays CalPERS administrative fees (0.32% of
premiums for 2015/16)
Surviving Spouse Continuation:Retiree beneift continues to surviving spouse if retiree elects
survivor annuity under CalPERS retirement plan
Minimum Age:Retirement under CalPERS
Employees Covered by Benefit Terms - At June 30, 2019 (the valuation date), the benefit terms
covered the following employees:
Active employees 156
Inactive employees 40
Total employees 196
Contributions - The District makes contributions based on an actuarially determined rate and are
approved by the authority of the District’s Board. Total contributions during the year were $572,539.
Total contributions included in the measurement period were $670,768. The actuarially determined
contribution for the measurement period was $643,000. The District’s contributions were 3.79% of
covered payroll during the measurement period June 30, 2019 (reporting period June 30, 2020).
Employees are not required to contribute to the plan.
Actuarial Assumptions - The following summarized the actuarial assumptions for the OPEB plan
included in this fiscal year:
Valuation Date:June 30, 2019
Measurement Date:June 30, 2019
Actuarial Cost Method:Entry age normal, level precentage of payroll
Amortization Period:7.5 years
Asset Valuation Method:Investment gains and loses spread over 5-year rolling period
Actuarial Assumptions:
Discount Rate 6.75%
General Inflation 2.75%
Payroll Increases Aggregate - 3%
Merit - CalPERS 1997-2015 experience study
Medical Trend Non-medicare - 7.25% for 2021, decreasing to an ultimate
rate of 4.0% in 2076 and later years
Medicare - 6.3% for 2021, decreasing to an ultimate rate
of 4.0% in 2076 and later years
PEMHCA Minimum Increases 4.25%
Mortality, Retirement,
Disability, Termination CalPERS 1997-2015 experience study
Mortality Improvement Post-retirement mortality projected fully generational with
Society of Actuaries Scale MP-2019
Healthcare Participation for
Future Retirees
Currently covered: 90%
Currently waived: 60%
Discount Rate - The projection of cash flows used to determine the discount rate assumed that the
District contribution will be made at rates equal to the actuarially determined contribution rates. Based on
those assumptions, the OPEB plan's fiduciary net position was projected to cover all future OPEB
payments. Therefore, the discount rate was set to be equal to the long-term expected rate of return which
was applied to all periods of projected benefit payments to determine the total OPEB liability.
Long-Term Expected Rate of Return - The long-term expected rate of return on OPEB plan
investments was determined using a building-block method in which expected future real rates of return
(expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding expected
inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Asset Class
Percentage of
Portfolio
Long-Term
Expected Rate of
Return
Global Equity 59% 4.82%
Fixed Income 25% 1.47%
TIPS 5% 1.29%
Commodities 3% 0.84%
REITs 8% 3.76%
Total 100%
Net OPEB Liability - The District's net OPEB liability was measured as of June 30, 2019 (measurement
date), and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial
valuation as of June 30, 2019 (valuation date) for the fiscal year ended June 30, 2020 (reporting date).
The following summarizes the changes in the net OPEB liability during the year ended June 30, 2020, for
the measurement date of June 30, 2019:
Fiscal Year Ended June 30, 2020
(Measurement Date June 30, 2019)
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability (Asset)
Balance at June 30,2019 5,631,356$ 3,769,079$ 1,862,277$
Service cost 330,788 - 330,788
In terest in Total OPEB Liability 397,289 - 397,289
Employer contributions - 670,768 (670,768)
Balance of diff between actual and exp experience (156,450) - (156,450)
Balance of changes in assumptions (30,520) - (30,520)
Actual investment income - 232,579 (232,579)
Administrative expenses - (807) 807
Benefit payments (152,768) (152,768) -
Net changes 388,339 749,772 (361,433)
Balance at June 30, 2020 6,019,695$ 4,518,851$ 1,500,844$
Covered Employee Payroll 16,838,000$
Total OPEB Liability as a % of Covered Employee Payroll 35.75%
Plan Fid. Net Position as a % of Total OPEB Liability 75.07%
Service Cost as a % of Covered Employee Payroll 1.96%
Net OPEB Liability as a % of Covered Employee Payroll 8.91%
Deferred Inflows and Outflows of Resources - At June 30, 2020, the District reported deferred
outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between actual and expected experience -$ 141,407$
Difference between actual and expected earnings - 46,787
Change in assumptions - 27,585
OPEB contribution subsequent to measurement date 638,539 -
Totals 638,539$ 215,779$
Of the total amount reported as deferred outflows of resources related to OPEB, $638,539 resulting from
District contributions subsequent to the measurement date and before the end of the fiscal year will be
included as a reduction of the net OPEB liability in the year ended June 30, 2021.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense as follows:
Year Ended June 30,
2021 (41,894)$
2022 (41,894)
2023 (21,294)
2024 (13,618)
2025 (17,978)
Thereafter (79,101)
Total (215,779)$
OPEB Expense - The following summarizes the OPEB expense by source during the year ended June
30, 2020, for the measurement date of June 30, 2019:
Service cost 330,788$
Interest in TOL 397,289
Expected investment income (254,386)
Difference between actual and expected experience (15,043)
Difference between actual and expected earnings (23,916)
Change in assumptions (2,935)
Administrative expenses 807
OPEB Expense 432,604$
The following summarizes changes in the net OPEB liability as reconciled to OPEB expense during the
year ended June 30, 2020, for the measurement date of June 30, 2019:
1,500,844$
(1,862,277)
(361,433)
Changes in deferred inflows 123,269
Employer contributions and implict subsidy 670,768
OPEB Expense 432,604$
Net OPEB liability ending
Net OPEB liability begining
Change in net OPEB liability
Sensitivity to Changes in the Discount Rate - The net OPEB liability of the District, as well as what the
District's net OPEB liability would be if it were calculated using a discount rate that is one percentage
point lower or one percentage point higher, is as follows:
(1% Decrease )6.75%(1% Increase )
Net OPEB Liability (Asset)2,393,070$ 1,500,844$ 774,353$
Discount Rate
Sensitivity to Changes in the Healthcare Cost Trend Rates - The net OPEB liability of the District, as
well as what the District's net OPEB liability would be if it were calculated using healthcare cost trend
rates that are one percentage point lower or one percentage point higher than current healthcare cost trend
rates, is as follows:
(1% Decrease )4.25%(1% Increase )
Net OPEB Liability (Asset)1,247,285$ 1,500,844$ 1,852,525$
Trend Rate
NOTE 10 - JOINT VENTURES (JOINT POWERS AGREEMENTS)
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; injuries to employees; and natural disasters. Prior to July 1, 2002, the District managed and
financed these risks by purchasing commercial insurance. On July 1, 2002, the District joined the
California Joint Powers Insurance Authority (CAL JPIA). CAL JPIA is composed of 119 California
public entities and is organized under a joint powers agreement pursuant to California Government Code
Section 6500 et seq. The purpose of CAL JPIA is to arrange and administer programs for the pooling of
self-insurance losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased
insurance for property and other coverages. CAL JPIA's pool began covering claims of its members in
1978. Each member government has an elected official as its representative on the Board of Directors.
The Board operates through a nine-member Executive Committee.
During the past three fiscal periods, none of the programs of protection have had settlements or judgments
that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured
liability coverage from coverage in the prior period.
Self-Insurance Programs of the CAL JPIA
General and Automobile Liability
Each government member pays a primary deposit to cover estimated losses for a fiscal year (claims year).
General liability (GL) coverage includes bodily injury, personal injury, or property damage to a third
party resulting from a member activity. The GL program also provides automobile liability coverage. Six
months after the close of a fiscal period, outstanding claims are valued. A retrospective deposit
computation is then made for each open claims year. Costs are spread to members as follows: the first
$30,000 to $750,000 are pooled based on member's share of costs under $30,000; costs in excess of
$750,000 are shared by the members based upon each individual member's payroll. Costs of covered
claims above $5,000,000 are currently paid by reinsurance. The protection for each member is
$50,000,000 per occurrence, up to $50,000,000.
Worker's Compensation
The District also participates in the Worker's Compensation program administered by CAL JPIA. Pool
deposits and retrospective adjustments are valued in a manner similar to the General Liability pool. The
District is charged for the first $50,000 of each claim. Costs from $50,000 to $100,000 per claim are
pooled based on the member's losses under its retention level. Costs between $100,000 and $2,000,000
per claim are pooled based on payroll. Costs from $2,000,000 to $5,000,000 are paid by excess insurance
purchased by CAL JPIA. The excess insurance provides coverage to statutory limits.
Purchased Insurance
Environmental Insurance
The District participates in the Pollution and Remediation Legal Liability Program, which is available
through CAL JPIA. The policy provides coverage for both first and third party damages, including certain
types of cleanups; fuel spill or hazmat incidents; member listed non-owned disposal sites; above ground
and underground storage tanks; and for sudden and gradual pollution at or from property, streets, sanitary
sewer trunk lines and storm drain outfalls owned by the District. Coverage is on a claims-made basis.
There is a $50,000 deductible. CAL JPIA has a limit of $50,000,000 for the three-year coverage period.
The current coverage period is July 2017 through July 1, 2020. Each member of CAL JPIA has a
$10,000,000 aggregate limit during the three-year period. The current coverage period is July 2017
through July 1, 2020.
Property Insurance
The District participates in the All-Risk property program of CAL JPIA which includes all-risk coverage
for real and personal property (such as scheduled buildings, office furniture, equipment, vehicles, etc).
This insurance is underwritten by several insurance companies. Property is currently insured according to
a schedule of covered property submitted by the District to CAL JPIA. The All-Risk deductible is $5,000
per occurrence; $1,000 for non-emergency vehicles. Premiums for the coverage are paid annually and are
not subject to retroactive adjustments.
Boiler & Machinery Insurance
The District participates in the optional coverage for boiler and machinery, which is purchased separately
under the property program. Coverage is for physical damage for sudden and accidental breakdown of
boilers and machinery, and electrical injury. There is a $5,000 per accident or occurrence deductible.
Crime Insurance
The District participates in the crime program of CAL JPIA in the amount of $1,000,000 per claim, with a
$2,500 per occurrence deductible. Insurance provides coverage for employee dishonesty, failure to
faithfully perform duties, forgery, counterfeiting, theft, robbery, burglary, and computer fraud. Premiums
are paid annually and are not subject to retroactive adjustments.
Special Event Tenant User Liability Insurance
The District participates in the special events program of CAL JPIA which provides liability insurance
when District premises are used for special events. The insurance premium is paid by the tenant user to
the District according to a schedule. The District then pays the insurance arranged through CAL JPIA.
There is no deductible and the District is added as additional insured. Liability limits are purchased in $1
million per occurrence increments.
Vendors/Contractors Program
General liability coverage with or without professional liability is offered through CAL JPIA to
vendors/contractors who otherwise could not meet the District’s minimum insurance requirement: $1
million per occurrence, $2 million in aggregate.
Cyber Liability Program
The cyber liability program is partially covered under the liability program, and partially held through a
stand-alone coverage program. Cyber liability provides coverage for both first- and third-party claims.
First party coverage includes privacy, regulatory claims, security breach response, business income loss,
dependent business income loss, digital asset restoration costs, and cyber-extortion threats, while third-
party coverage includes privacy liability, network security liability, and multimedia liability. Members
work directly with the reinsurer to investigate and respond to claims. There is a $1 million per occurrence
limit of coverage, $1 million aggregate limit per policy period per member, and a $10 million aggregate
limit of coverage for all members per policy period.
NOTE 11 - COMMITMENTS AND CONTINGENCIES
Litigation
The District may be exposed to various claims and litigation during the normal course of business.
However, management believes there were no matters that would have a material adverse effect on the
District’s financial position or results of operations as of June 30, 2020.
Commitments
As of June 30, 2020, the District had remaining commitments of $20,617,862 towards construction and
other contracts. These commitments are not liabilities of the District’s until services or goods have been
rendered/received. The expected date of completion is between June 2020 and December 2099.
NOTE 12 – SUBSEQUENT EVENTS
Management has evaluated all subsequent events from the statement of financial position date of June 30,
2020, through the date the financial statements were available to be issued, December 1, 2020. Beginning
in March 2020, the United States economy began suffering adverse effects from the COVID 19 Virus
Crisis ("CV19 Crisis"). As of the date of issuance of the financial statements, the District had not yet
suffered material adverse impact from the CV19 Crisis. However, the future impact of the CV19 Crisis on
the District cannot be reasonably estimated. There were no other material subsequent events that required
recognition or additional disclosure in the financial statements.
Required Supplementary Information
Page Intentionally Left Blank
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY SCHEDULES
This schedule presents a comparison of the original budget, final budget and actual revenues and expenditures
for General Fund. The schedule presents the difference between the final budget and actuals.
PENSION SCHEDULES
These schedules present information that shows the District's proportionate share of the pension liability in the
cost sharing pools, actuarial information, and contributions. The proportionate share information is useful in
determining the District's liability on relation to all other entities in the pool.
POSTEMPLOYMENT BENEFIT SCHEDULES
These schedules present information that shows the District's total other postemployment benefits (OPEB), plan
fiduciary net position, and contributions related to retiree healthcare benefits provided by the District.
Variance with
Final Budget
Actual Positive -
Original Final (GAAP Basis) (Negative)
Revenues:
Property taxes 51,863,000$ 51,883,000$ 52,024,342$ 141,342$
Grant income 488,300 388,300 31,396 (356,904)
Property management 1,078,000 1,078,000 2,655,179 1,577,179
Investment earnings 2,099,878 2,099,878 1,014,726 (1,085,152)
Other revenues 479,157 479,157 261,702 (217,455)
Total revenues 56,008,335 55,928,335 55,987,345 59,010
Expenditures:
Current
Salaries and employee benefits 25,349,838 25,460,977 23,240,060 2,220,917
Services and supplies 11,746,210 10,160,745 7,828,976 2,331,769
Capital outlay 48,000 - - -
Total expenditures 37,144,048 35,621,722 31,069,036 4,552,686
Excess (deficiency) of revenues
over (under) expenditures 18,864,287 20,306,613 24,918,309 4,611,696
Other financing sources (uses):
Transfers in - - 889,920 889,920
Transfers out (18,071,600) (18,071,600) (20,220,354) (2,148,754)
Total other financing sources (uses)(18,071,600) (18,071,600) (19,330,434) (1,258,834)
Net change in fund balance 792,687 2,235,013 5,587,875 3,352,862
Fund balance beginning 51,352,588 51,352,588 51,352,588 -
Fund balance ending 52,145,275$ 53,587,601$ 56,940,463$ 3,352,862$
The District employs budget control by object codes and by individual appropriation accounts. Budgets are prepared on the
modified accrual basis of accounting in accordance with accounting principles generally accepted in the United States of
America as prescribed by the Governmental Accounting Standards Board. The budgets are revised during the year by the
Board of Directors to provide for revised priorities. Expenditures cannot legally exceed appropriations by major object code.
The originally adopted and final revised budgets for the General Fund are presented as Required Supplementary Information.
The basis of budgeting is the same as GAAP. Transfers out exceeded budget as noted above because of the transfer to GF
Capital Projects Fund for the District's capital projects and debt service payments.
Budgeted Amounts
Midpeninsula Regional Open Space District
Budget to Actual (GAAP)
For the Fiscal Year Ended June 30, 2020
Schedule of Revenues, Expenditures and Changes in Fund Balance
General Fund
Miscellaneous Plan
Plan Measurement Date 2014 2015 2016 2017 2018 2019
Fiscal Year Ended 2015 2016 2017 2018 2019 2020
Contractually Required Contributions 1,461,069$ 1,358,520$ 1,514,352$ 1,763,650$ 1,358,184$ 1,534,253$
Contributions in Relation to Contractually
Required Contributions 1,343,244 4,788,977 2,529,862 1,783,789 1,358,206 1,534,253
Contribution Deficiency (Excess)117,825$ (3,430,457)$ (1,015,510)$ (20,139)$ (22)$ -$
Covered Payroll 8,994,979$ 9,862,578$ 11,834,150$ 12,802,887$ 15,311,826$ 16,297,634$
Contributions as a % of Covered Payroll 14.93% 48.56% 21.38% 13.93% 8.87% 9.41%
Notes to Schedule:
Valuation Date: June 30, 2018
Assumptions Used: Entry Age Method used for Actuarial Cost Method
Level Percentage of Payroll and Direct Rate Smoothing
3.8 Years Remaining Amortization Period
Inflation Assumed at 2.5%
Investment Rate of Returns set at 7.15%
Fiscal year 2015 was the first year of implementation, therefore only six years are shown.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65%
to 7.15% in fiscal year 2018.
The CalPERS mortality assumptions was adjusted in fiscal year 2019.
Midpeninsula Regional Open Space District
Schedule of Pension Plan Contributions
June 30, 2020
CalPERS mortality table based on CalPERS' experience and include 15 years of projected ongoing mortality improvement
using 90 percent of Scale MP 2016 published by the Society of Actuaries
Miscellaneous Plan
Plan Measurement Date 2014 2015 2016 2017 2018 2019
Fiscal Year Ended 2015 2016 2017 2018 2019 2020
Proportion of Net
Pension Liability 0.39847% 0.41627% 0.29137% 0.27962% 0.27629% 0.29538%
Proportionate Share of
Net Pension Liability 9,848,203$ 11,420,126$ 10,121,906$ 11,022,824$ 10,412,478$ 11,828,627$
Covered Payroll 8,448,635$ 8,994,979$ 9,862,578$ 11,834,150$ 12,802,887$ 15,311,826$
Proportionate Share of NPL
as a % of Covered Payroll 116.57% 126.96% 102.63% 93.14% 81.33% 77.25%
Plan's Fiduciary Net Position
as a % of the TPL 81.15% 79.23% 80.93% 82.04% 84.37% 83.84%
Fiscal year 2015 was the first year of implementation, therefore only six years are shown.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65%
to 7.15% in fiscal year 2018.
The CalPERS mortality assumptions was adjusted in fiscal year 2019.
June 30, 2020
Schedule of Net Pension Liability Proportionate Shares
Midpeninsula Regional Open Space District
Fiscal Year Ended 2018 2019 2020
Actuarially determined contribution (ADC) 609,000$ 624,000$ 643,000$
Less: actual contribution in relation to ADC (412,000) (670,768) (638,539)
Contribution deficiency (excess) 197,000$ (46,768)$ 4,461$
Covered employee payroll 12,802,887$ 13,550,000$ 16,838,000$
Contributions as a % of covered employee payroll 3.22% 4.95% 3.79%
Notes to Schedule:
Assumptions and Methods
Valuation Date:
Measurement Date:
Actuarial Cost Method:
Amortization Period:
Asset Valuation Method:
Actuarial Assumptions:
Discount Rate
General Inflation
Payroll Increases
Medical Trend
PEMHCA Minimum Increases
Mortality, Retirement, Disability, Termination
Mortality Improvement
Healthcare Participation for Future Retirees
Other Notes
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year
in which contributions are reported.
The discount rate decreased from 7.0% to 6.5% in fiscal year 2019
Midpeninsula Regional Open Space District
Schedule of Contributions for Postemployment Benefits
June 30, 2020
There were no changes in benefit terms or trend rates
Mortality improvement scale was updated to Scale MP-2019 from MP-2017 in fiscal year 2020
GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available if
less than ten years are available. GASB 75 was adopted as of June 30, 2018.
PPACA excise tax was repealed 12/20/19. Since this is after the June 30, 2019 measurement date, the excise tax
is included in the June 30, 2019 Total OPEB Liability (TOL).
4.25%
CalPERS 1997-2015 experience study
Post-retirement mortality projected fully generational
with Society of Actuaries Scale MP-2019
Currently covered: 90%
Currently waived: 60%
June 30, 2019
June 30, 2019
Entry age normal, level precentage of payroll
7.5 years
Investment gains and loses spread over 5-year rolling period
6.75%
2.75%
Aggregate - 3%
Merit - CalPERS 1997-2015 experience study
Non-medicare - 7.5% for 2019, decreasing to an
ultimate rate of 4.0% in 2076 and later years
Medicare - 6.5% for 2019, decreasing to an
ultimate rate of 4.0% in 2076 and later years
Fiscal Year Ended 2018 2019 2020
Total OPEB liability
Service cost 313,000$ 321,153$ 330,788$
Interest 326,000 361,203 397,289
Differences between expected and actual experience - - (156,450)
Changes of assumptions - - (30,520)
Benefit payments (113,000) (162,000) (152,768)
Net change in Total OPEB Liability 526,000 520,356 388,339
Total OPEB Liability - beginning 4,585,000 5,111,000 5,631,356
Total OPEB Liability - ending 5,111,000$ 5,631,356$ 6,019,695$
Plan fiduciary net position
Employer contributions 513,000$ 412,000$ 670,768$
Net investment income 287,000 259,143 232,579
Benefit payments (113,000) (162,000) (152,768)
Administrative expense (1,000) (6,064) (807)
Net change in plan fiduciary net position 686,000 503,079 749,772
Plan fiduciary net position - beginning 2,580,000 3,266,000 3,769,079
Plan fiduciary net position - ending 3,266,000$ 3,769,079$ 4,518,851$
Net OPEB liability (asset)1,845,000$ 1,862,277$ 1,500,844$
Plan fiduciary net position as a percentage of the
total OPEB liability 63.90% 66.93% 75.07%
Covered Employee Payroll 11,834,150$ 12,802,887$ 13,550,000$
Net OPEB liability as a percentage of covered employee payroll 15.59% 14.55% 11.08%
Total OPEB liability as a percentage of covered employee payroll 43.19% 43.99% 44.43%
Other Notes
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal
year in which contributions are reported.
Midpeninsula Regional Open Space District
Schedule of Changes in Net OPEB Liability
June 30, 2020
GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available
if less than ten years are available. GASB 75 was adopted as of June 30, 2018.
There were no changes in benefit terms or trend rates
PPACA excise tax was repealed 12/20/19. Since this is after the June 30, 2019 measurement date, the excise
tax is included in the June 30, 2019 Total OPEB Liability (TOL).
Mortality improvement scale was updated to Scale MP-2019 from MP-2017 in fiscal year 2020
The discount rate decreased from 7.0% to 6.5% in fiscal year 2019.
Supplementary Information
Page Intentionally Left Blank
SUPPLEMENTARY INFORMATION
BUDGETARY SCHEDULES
These schedules present comparisons of the original budget, final budget and actual revenues and expenditures
for major capital project funds and debt service funds. These schedules presents the difference between the final
budget and actuals.
BOND PROGRAM EXPENDITURES
This schedule presents the program expenditures for the Measure AA Bond Program for the current year and the
in total since the inception of the program.
Variance with
Final Budget
Actual Positive -
Original Final (GAAP Basis) (Negative)
Revenues:
Grant income 2,108,421$ 2,108,421$ 1,498,087$ (610,334)$
Investment earnings - - 1,007,460 1,007,460
Total revenues 2,108,421 2,108,421 2,505,547 397,126
Expenditures:
Current
Salaries and employee benefits 471,697 406,558 375,893 30,665
Capital outlay 8,975,950 9,949,233 7,641,519 2,307,714
Total expenditures 9,447,647 10,355,791 8,017,412 2,338,379
Excess (deficiency) of revenues
over (under) expenditures (7,339,226) (8,247,370) (5,511,865) 2,735,505
Net change in fund balance (7,339,226) (8,247,370) (5,511,865) 2,735,505
Fund balance beginning 37,944,253 37,944,253 37,944,253 -
Prior period adjustment - - (131,009) (131,009)
Fund balance beginning - as adjusted 37,944,253 37,944,253 37,813,244 131,009
Fund balance ending 30,605,027$ 29,696,883$ 32,301,379$ 2,604,496$
Budgeted Amounts
Midpeninsula Regional Open Space District
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual (GAAP)
Measure AA Capital Projects Fund
For the Fiscal Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive -
Original Final (GAAP Basis) (Negative)
Revenues:
Grant income -$ 1,960,000$ 1,764,000$ (196,000)$
Investment earnings - - 216,363 216,363
Total revenues - 1,960,000 1,980,363 20,363
Expenditures:
Capital outlay 10,546,595 13,520,219 12,459,954 1,060,265
Total expenditures 10,546,595 13,520,219 12,459,954 1,060,265
Excess (deficiency) of revenues
over (under) expenditures (10,546,595) (11,560,219) (10,479,591) 1,080,628
Other financing sources (uses):
Transfers in 7,775,425 7,775,425 9,827,543 2,052,118
Transfers out - - (889,920) (889,920)
Total other financing sources (uses)7,775,425 7,775,425 8,937,623 1,162,198
Net change in fund balance (2,771,170) (3,784,794) (1,541,968) 2,242,826
Fund balance beginning 8,254,539 8,254,539 8,254,539 -
Prior period adjustment - - 131,009 131,009
Fund balance beginning - as adjusted 8,254,539 8,254,539 8,385,548 131,009
Fund balance ending 5,483,369$ 4,469,745$ 6,843,580$ 2,373,835$
Budgeted Amounts
Midpeninsula Regional Open Space District
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual (GAAP)
GF Capital Projects Fund
For the Fiscal Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive -
Original Final (GAAP Basis) (Negative)
Revenues:
Property taxes 5,435,350$ 5,435,350$ 5,226,322$ (209,028)$
Investment earnings 874,000 950,000 88,317 (861,683)
Total revenues 6,309,350 6,385,350 5,314,639 (1,070,711)
Expenditures:
Debt service:
Principal 17,669,563 17,669,563 9,115,000 8,554,563
Interest - - 8,554,563 (8,554,563)
Total expenditures 17,669,563 17,669,563 17,669,563 -
Excess (deficiency) of revenues
over (under) expenditures (11,360,213) (11,284,213) (12,354,924) (1,070,711)
Other financing sources (uses):
Transfers in 10,397,375 10,397,375 10,392,811 (4,564)
Total other financing sources (uses)10,397,375 10,397,375 10,392,811 (4,564)
Net change in fund balance (962,838) (886,838) (1,962,113) (1,075,275)
Fund balance beginning 6,775,924 6,775,924 6,775,924 -
Fund balance ending 5,813,086$ 5,889,086$ 4,813,811$ (1,075,275)$
Budgeted Amounts
Midpeninsula Regional Open Space District
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual (GAAP)
Debt Service Fund
For the Fiscal Year Ended June 30, 2020
Expenditures Expenditures
from from
July 1, 2019 Inception
Project through through
No. Project Description June 30, 2020 June 30, 2020
AA02 Regional: Bayfront Habitat Protection & Public Access Partnerships 4,304,545$ 6,351,216$
AA03 Purisima Creek Redwoods: Purisma-to Sea Trail, Watershed & Grazing 28,089 1,298,765
AA04 El Corte de Madera Creek: Bike Trail & Water Quality Projects 117,749 1,004,617
AA05 La Honda Creek - Upper Recreation Area 35,017 2,463,776
AA06 Hawthorn Public Access Improvements 4,647 31,249
AA07 Driscoll Ranch Public Access, Wildlife Protection & Grazing 144,070 12,305,504
AA08 La Honda/Russian Ridge: Upper San Gregorio Watershed - 2,153,910
AA09 Russian Ridge: Public Recreation, Grazing & Wildlife Protection 75,089 394,556
AA10 Coal Creek: Reopen Alpine Road for Trail Use 179,219 345,341
AA11 Rancho San Antonio: Interpretive Improvements, Refurbishing 132,064 165,328
AA15 Regional: Redwood Protection & Salmon Fishery Conservation 42,499 3,075,549
AA17 Regional: Complete Upper Stevens Creek Trail 331,108 2,386,441
AA18 South Bay Foothills: Saratoga-to-Sea Trail & Wildlife Corridor 599,539 734,398 *
AA19 El Sereno Dog Park & Connections (715) 479,527
AA20 South Bay Foothills: Wildlife Passage/Ridge Trail Improvements 180,412 570,615
AA21 Bear Creek Redwoods: Public Recreation & Interpretive Projects 1,654,798 9,930,484
AA22 Sierra Azul: Cathedral Oaks Public Access & Conservation Projects 148,021 1,225,916
AA23 Sierra Azul: Mt Umunhum Public Access & Interpretation Projects 41,261 22,975,703
AA24 Sierra Azul: Rancho de Guadalupe Family Recreation - 1,591,996
AA25 Sierra Azul: Loma Prieta Area Public Access, Regional Trails/Habitat Projects - 410,150
Total MAA Bond Project Expenditures 8,017,412 69,895,041
Reimbursements from Grants, Contributions, and Other Funds (1,498,087) (4,813,700)
Total MAA Bond Project Expenditures - Net Reimbursements 6,519,325$ 65,081,341$
Midpeninsula Regional Open Space District
Measure AA Bond Program
Schedule of Program Expenditures
June 30, 2020
* In the fiscal year ended June 30, 2020, the District transferred prior period expenditures for the Saratoga to the
Sea Project from the GF Capital Projects Fund.
NOTE 1 - BACKGROUND
Measure AA is a $300 million general obligation bond approved in June 2014 by over two-thirds of
Midpen voters. Proceeds from bonds, which will be sold in a series over approximately the next 20-30
years, will be used to:
• Protect natural open space lands
• Open preserves or areas of preserves that are currently closed
• Construct public access improvements such as new trails and staging areas
• Restore and enhance open space land, which includes forests, streams, watersheds, and coastal
ranch areas.
On July 29, 2015, the District issued $40,000,000 of 2015A general obligation bonds and $5,000,000 of
2015B federally taxable general obligation bonds to finance certain projects authorized by voters. The
bonds bear interest from 1.5% to 5% and are due semi-annually on March 1 and September 1. The bonds
were issued at a premium of $2,559,224 with an underwriter’s discount of $107,599 and issuance costs of
$170,000.
On February 1, 2018, the District issued $50,000,000 of 2018 general obligation bonds to finance 25
projects specified in Measure AA. The bonds bear interest from 2% to 5% and are due semi-annually on
March 1 and September 1. The bonds were issued at a premium of $3,691,291 with an issuance costs of
$455,462.
Land acquisition is the first step to open space conservation. The Vision Plan identified 50,000 acres of
open space land that, when conserved, would significantly improve wildlife conditions, wetlands,
watersheds, creeks, sensitive plant communities and healthy outdoor recreation. As of June 30, 2020, the
District has acquired and / or preserved over 1,700 acres of land with $24 million in funding support from
Measure AA Funds.
NOTE 2 - OVERISGHT COMMITTEE
The Oversight Committee is essential to implementing Measure AA and will consist of seven at-large
members who reside within the District. The Committee convenes at least once a year and reviews annual
Measure AA expenditures and Midpen’s Annual Audit and Accountability report. Each year, the
Committee’s findings will be presented to the Board at a public meeting and will be posted on the
District’s website.
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basis of accounting utilized in preparation of this report may differ from accounting principles
generally accepted in the United States of America. Accordingly, the accompanying program statement is
not intended to present the financial position and the results of operations in conformity with accounting
principles generally accepted in the United States of America. Expenditures incurred with Measure AA
Bond proceeds are recorded on a modified accrual basis of accounting. Under the modified accrual basis
of accounting, revenue is recognized when it is measurable and available. Similarly, expenses are
recognized when they are incurred, not when they are paid.
Statistical Information
Page Intentionally Left Blank
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
Sources
These schedules contain service and infrastructure data to help the reader understand how the information in the District’s financial report relates
to the services the District provides and the activities it performs:
1. Full-Time Equivalent Employees by Function
2. Capital Asset Statistics by Function
3. Operating Indicators by Function
Unless otherwise noted, the information in these schedules is derived from the Annual Financial Reports for the relevant year.
STATISTICAL SECTION
This part of the District’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the
information in the financial statements,note disclosures,and required supplementary information says about the District’s overall financial
health. In contrast to the financial section, the statistical section information is not subject to independent audit.
These schedules contain trend information to help the reader understand how the District’s financial performance and well being have changed
over time:
1. Net Position
2. Changes in Net Position
3. Fund Balances of Governmental Funds
4. Changes in Fund Balances of Governmental Funds
These schedules contain information in relation to the District’s property tax assessments:
1. Assessed and Actual Value of Taxable Property
2. Direct and Overlapping Property Tax Rates
3. Pricipal Property Tax Payers
4. Property Tax Levies and Collections
These schedules present information to help the reader assess the affordability of the District’s current levels of outstanding debt and the District’s
ability to issue additional debt in the future:
1. Ratios of General Bonded Debt Outstanding
2. Ratios of Outstanding Debt by Type
3. Legal Debt Margin Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the District’s financial
activities take place:
1. Demographic and Economic Statistics
2. Principal Employers
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Governmental activities
Net investment in capital assets 236,546$ 245,393$ 259,638$ 268,869$ 278,611$ 276,395$ 308,601$ 312,121$ 351,152$ 371,186$
Restricted 1,408 1,568 2,731 4,327 2,566 5,786 4,571 7,252 8,207 6,277
Unrestricted 28,142 42,738 36,919 37,951 39,948 39,280 23,831 29,415 8,015 14,617
Total Net Position 266,096$ 289,699$ 299,288$ 311,147$ 321,125$ 321,461$ 337,003$ 348,788$ 367,374$ 392,080$
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Net Position
(amounts expressed in thousands)
Last Ten Fiscal Years
(accrual basis of accounting)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Expenses
Governmental activities
Land preservation 13,768$ 14,312$ 19,338$ 17,930$ 19,478$ 26,080$ 21,783$ 28,910$ 34,304$ 32,482$
Interest and fiscal charges 6,739 7,483 7,273 7,163 7,202 9,752 8,327 8,193 10,449 9,874
Depreciation 882 806 840 1,095 1,232 1,311 1,585 2,399 - -
Loss on refunding of debt - - - - - - - - - -
Total governmental activities expenses 21,389 22,601 27,451 26,188 27,912 37,143 31,695 39,502 44,753 42,356
Program Revenues
Governmental Activities
Charges for Services 1,241 1,320 1,381 1,422 1,437 1,636 1,479 1,576 2,360 2,655
Grants and Contributions 1,393 1,453 913 1,901 953 1,194 651 1,613 1,082 3,293
Land donations 17 13,928 3,890 - - - - - - -
Total governmental activities program revenues 2,651 16,701 6,184 3,323 2,390 2,830 2,130 3,189 3,442 5,948
Net (expense)/revenue - governmental activities (18,738) (5,900) (21,267) (22,865) (25,522) (34,313) (29,565) (36,313) (41,311) (36,408)
General Revenues and Other Changes in Net Position
Governmental Activities
Property taxes 27,269 28,737 30,270 32,433 35,082 44,980 43,861 47,798 54,395 57,251
Investment earnings 294 375 288 138 202 648 463 1,045 3,648 2,307
Use of money and property - - - - - - - - - -
Miscellaneous 311 394 298 182 216 810 784 1,153 1,557
Total governmental activities 27,874 29,506 30,856 32,753 35,500 46,438 45,108 49,996 58,043 61,115
Change in Net Position
Governmental activities 9,136 23,606 9,589 9,888 9,978 12,125 15,543 13,683 18,586 24,708
Prior period adjustments - - - 1,971 - (11,790) - (1,898) - -
Total Changes in Net Position 9,136$ 23,606$ 9,589$ 11,859$ 9,978$ 335$ 15,543$ 11,785$ 18,586$ 24,708$
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General fund
Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Unreserved, designated in - - - - - - - - - -
Unreserved, reported in - - - - - - - - - -
Nonspendable - - - - - - 55 36 186 206
Restricted 731 - - 1,702 1,702 1,971 1,971 1,467 1,432 5,527
Committed - - - - 20,400 35,400 35,400 55,300 29,288 30,518
Assigned - - - 5,000 - - - - 1,400 710
Unassigned 26,156 41,782 37,513 34,453 21,330 16,848 23,872 16,306 16,515 19,979
Total General Fund 26,887$ 41,782$ 37,513$ 41,155$ 43,432$ 54,219$ 61,298$ 73,109$ 48,821$ 56,940$
All other governmental funds
Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Restricted 1,408 1,568 1,634 1,621 - 26,894 9,539 59,304 52,975 43,959
Total all other governmental funds 1,408$ 1,568$ 1,634$ 1,621$ -$ 26,894$ 9,539$ 59,304$ 52,975$ 43,959$
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
The District has implemented GASB 54 effective fiscal year ending March 31, 2011.
This Statement establishes new categories for reporting fund balance and revises the definitions for governmental fund types.
The District opted not to change the previous years' data.
(modified accrual basis of accounting)
(amounts expressed in thousands)
Midpeninsula Regional Open Space District
Fund Balances of Governmental Funds
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
REVENUES
Property taxes 27,269$ 28,737$ 30,270$ 32,433$ 35,082$ 44,980$ 43,861$ 47,798$ 54,395$ 57,251$
Grant income 1,393 1,453 913 1,901 953 1,194 651 1,613 1,082 3,293
Property management 955 1,320 1,381 1,422 1,438 1,636 1,479 1,576 2,360 2,655
Investment earnings 294 375 288 150 216 666 480 1,064 3,649 2,327
Other 551 240 146 145 241 644 609 348 641 262
Land donation 17 13,928 - - - - - - - -
TOTAL REVENUE 30,479 46,053 32,998 36,051 37,930 49,120 47,080 52,399 62,127 65,788
EXPENDITURES
Land Preservation 13,682 13,996 18,713 17,303 18,272 28,965 25,807 28,226 29,186 31,445
Capital outlay 11,596 27,190 9,611 8,231 8,445 18,901 19,961 16,440 45,356 20,101
Debt service:
Principal and advance refunding escrow 3,301 4,457 2,843 2,999 3,145 4,367 5,193 6,392 6,480 9,115
Interest and fiscal charges 4,786 5,355 6,034 5,859 5,749 6,478 7,190 6,597 9,191 8,555
TOTAL EXPENDITURES 33,365 50,998 37,201 34,392 35,611 58,711 58,152 57,655 90,213 69,216
EXCESS (DEFICIT) OF REVENUES
OVER EXPENDITURES (2,886) (4,945) (4,203) 1,659 2,319 (9,591) (11,072) (5,256) (28,086) (3,428)
OTHER FINANCING SOURCES AND USES
Transfers in 7,974 9,827 8,877 8,858 8,894 12,146 15,839 9,409 49,929 21,110
Transfers out (7,974) (9,827) (8,877) (8,858) (8,894) (12,146) (15,839) (9,409) (49,929) (21,110)
Other sources 850 20,000 - - - - - - - -
Payment to refunded bond escrow agent - - - - - - (68,187) (27,660) - -
Issuance of refunding debt - - - - - - 57,410 25,025 - -
Advance refunding of revenue bonds - - - - (29,987) - - - - -
Issuance of debt - - - - 28,325 45,000 - 61,220 - -
Premium from debt issuances - - - - - 2,282 11,564 8,246 - -
TOTAL OTHER FINANCING SOURCES (USES)850 20,000 - - (1,662) 47,282 787 66,831 - -
SPECIAL ITEM
OPEB Funding - - - - - - - - - -
NET CHANGES IN FUND BALANCES (2,036)$ 15,055$ (4,203)$ 1,659$ 657$ 37,691$ (10,285)$ 61,575$ (28,086)$ (3,428)$
Capitalized capital outlay expenditures 11,596 27,190 9,611 8,231 8,445 18,901 19,961 16,440 45,356 20,101
Debt Service as a percentage of noncapital expenditures 59.11% 70.11% 47.44% 51.19% 48.68% 37.44% 47.99% 46.02% 53.69% 56.19%
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year Secured State Board Unsecured
Total before Rdv.
Increment
Total after Rdv.
Increment Total Direct Tax Rate
2011 108,672,177 5,138 6,448,241 115,125,556 110,403,735 1.00%
2012 110,480,451 5,192 6,843,137 117,328,780 112,337,379 1.00%
2013 115,665,767 5,192 7,574,405 123,245,364 117,796,453 1.00%
2014 125,816,313 5,192 8,032,680 133,854,185 128,261,360 1.00%
2015 134,293,819 3,616 8,134,278 142,431,713 136,364,266 1.00%
2016 148,710,117 3,616 8,236,861 156,950,594 151,221,560 1.00%
2017 161,457,837 3,616 8,664,927 170,126,380 163,586,434 1.00%
2018 174,219,310 3,616 9,773,726 183,996,652 177,153,795 1.00%
2019 188,007,378 8,646 10,266,764 198,282,788 191,359,437 1.00%
2020 201,019,887 8,646 9,814,574 210,843,107 203,359,598 1.00%
Fiscal Year Secured State Board Unsecured
Total before Rdv.
Increment
Total after Rdv.
Increment Total Direct Tax Rate
2011 51,197,326 6,653 2,006,682 53,210,661 49,373,928 1.00%
2012 51,670,521 2,465 1,952,159 53,625,145 49,913,049 1.00%
2013 53,793,234 2,465 1,948,563 55,744,262 51,977,724 1.00%
2014 57,513,572 2,336 2,180,554 59,696,462 55,714,674 1.00%
2015 60,798,837 2,343 2,087,353 62,888,533 58,641,318 1.00%
2016 66,177,633 3,086 2,363,781 68,544,500 63,519,108 1.00%
2017 72,017,698 3,085 2,640,434 74,661,217 68,354,025 1.00%
2018 78,506,564 3,085 2,996,701 81,506,350 73,565,159 1.00%
2019 85,236,395 2,658 2,756,478 87,995,531 79,176,299 1.00%
2020 99,187,975 3,219 2,894,481 102,085,675 92,428,172 1.00%
Source: California Municipal Statistics, Inc
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
County of San Mateo
Midpeninsula Regional Open Space District
Assessed and Actual Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
County of Santa Clara
Fiscal Year
General Property
Tax Levy
Other
Overlapping
Governments
Open Space
District Total
General Property
Tax Levy
Other
Overlapping
Governments
Open Space
District Total
2011 1.00000 0.14951 - 1.14951 1.00000 0.07530 - 1.07530
2012 1.00000 0.15060 - 1.15060 1.00000 0.08120 - 1.08120
2013 1.00000 0.18750 - 1.18750 1.00000 0.08060 - 1.08060
2014 1.00000 0.18740 - 1.18740 1.00000 0.07470 - 1.07470
2015 1.00000 0.18304 - 1.18304 1.00000 0.08530 - 1.08530
2016 4 1.00000 0.17807 0.00080 1.17887 1.00000 0.08420 0.00080 1.08500
2017 1.00000 0.17160 0.00060 1.17220 1.00000 0.10990 0.00060 1.11050
2018 1.00000 0.18133 0.00090 1.18223 1.00000 0.10300 0.00090 1.10390
2019 1.00000 0.17126 0.00180 1.17306 1.00000 0.09240 0.00180 1.09420
2020 1.00000 0.18202 0.00160 1.18362 1.00000 0.10020 0.00160 1.10180
Source: FY 2019-20 Tax Rate Books for San Mateo and Santa Clara Counties
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
1 Due to the District’s size and that it is located in two counties (County of Santa Cruz excluded), there is no tax rate area that represents the typical
total tax rate for the District. The above tax rate areas are the largest in terms of assessed valuation for each County’s portion of the District.
2 The 2019-20 assessed valuation of Tax Rate Area (TRA) 6-001 is $32,480,806.925 which is 10.38 % of the District’s total assessed valuation.
3 The 2019-20 assessed valuation of TRA 9-001 is $10,868,501,012 which is 3.47% of the District’s total assessed valuation.
4 Fiscal Year 2015-16 was the first year in which ad valorem property taxes authorized by Measure AA were levied.
Midpeninsula Regional Open Space District
Property Tax Rates
Direct and Overlapping1 Property Tax Rates
Last Ten Fiscal Years
County of Santa Clara (Tax Rate Area 6-001) 2 County of San Mateo (Tax Rate Area 9-001) 3
Taxpayer
Taxable Assessed
Valuation Rank
Percentage of
Total Assessed
Valuation
Taxable Assessed
Valuation Rank
Percentage of
Total Assessed
Valuation
Board of Trustees, Leland Stanford Jr. University 7,172,848$ 1 2.39%4,901,194$ 1 3.07%
Google Inc.6,644,929 2 2.21%434,468 9 0.27%
Campus Holdings Inc. 3,570,308 3 1.19%**
Hibscus Properties LLC 1,326,840 4 0.44%**
Sobrato Interests 1,157,587 5 0.39%**
Apple Computer Inc. 1,134,606 6 0.38%690,518 2 0.43%
Facebook Inc.920,644 7 0.31%**
Lockheed Missiles and Space Co. Inc.915,535 8 0.30%564,312 4 0.35%
CW SPE LLC 756,467 9 0.25%**
Yahoo Holdings Inc.669,497 10 0.22%476,573 7 0.30%
Oracle Corp. 647,034 11 0.22%567,172 3 0.35%
Menlo & Juniper Networks LLC 623,437 12 0.21%**
Richard T. Spieker, Trustee 606,726 13 0.20%**
Applied Materials Inc.588,404 14 0.20%361,679 10 0.23%
Intuitive Surgical Inc.535,896 15 0.18%**
Peninsula Innovation Partnersh LLC 491,710 16 0.16%**
Woodland Park Property Owner LLC 419,212 17 0.14%**
441 Real Estate LLC 414,814 18 0.14%**
Network Appliance Inc. 394,921 19 0.13%533,962 5 0.33%
LinkedIn Corporation 393,656 20 0.13%**
VII Pac Shores Investors LLC **485,618 6 0.30%
Arden Realty LP **255,201 16 0.16%
HCP Life Science REIT Inc.**315,451 12 0.20%
Wells REIT II-University Circle LP **310,197 13 0.19%
SPF Mathilda LLC **276,782 14 0.17%
Silicon Valley CA I LLC **254,274 17 0.16%
Redus Woodland LLC **276,516 15 0.17%
Slough Redwood City LLC **244,474 20 0.15%
MT SPE LLC **249,945 19 0.16%
Hewlett Packard Co.**434,763 8 0.27%
Symantec Corporation **252,481 10 0.16%
Sun Microsystems Inc. **328,708 11 0.21%
Total 29,385,071$ 9.79%12,214,288$ 7.64%
* Information not available
Source: California Municipal Statistics, Inc.
Midpeninsula Regional Open Space District
Principal Property Tax Payers
Current Year and Nine Years Ago
(amounts expressed in thousands)
Fiscal Year 2011Fiscal Year 2020
Fiscal Year
Santa Clara County
Taxes Levied
San Mateo County
Taxes Levied
Santa Clara County
Collections
% of County
Levy
San Mateo County
Collections
% of County
Levy
2016 1,186,363$ 527,932$ 1,177,636$ 99.3% 524,982$ 99.4%
2017 968,301 431,711 962,730 99.4% 429,436 99.5%
2018 1,558,456 705,842 1,553,773 99.7% 701,923 99.4%
2019 3,365,744 1,532,834 3,348,991 99.5% 1,524,259 99.4%
2020 3,215,052 1,591,352 3,195,317 99.4% 1,577,126 99.1%
Source: California Municipal Statistics, Inc.
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
1 District's general obligation bond debt service levy. Prior years are not available. Levy began in FY2015-16
CollectionsLevy 1
Midpeninsula Regional Open Space District
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Year
General
Obligation Bonds
Debt Service
Monies Available Total
Taxable Assessed
Value
Percentage of
Taxable AV 1 Per Capita 2
2011 - - - 159,777,663 0.000% 0.00
2012 - - - 162,250,428 0.000% 0.00
2013 - - - 169,774,177 0.000% 0.00
2014 - - - 183,976,034 0.000% 0.00
2015 - - - 195,005,584 0.000% 0.00
2016 45,000 3,116 41,884 214,740,668 0.020% 15.56
2017 44,225 2,194 42,031 231,940,459 0.018% 15.53
2018 104,570 5,785 98,785 250,718,954 0.039% 36.32
2019 102,880 6,776 96,104 270,535,736 0.036% 35.22
2020 88,810 4,814 83,996 295,787,770 0.028% *
* Information not available
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
1 See the Schedule of Assessed and Actual Value of Taxable Property for property value data.
2 Population data can be found in the Schedule of Demographic and Economic Statistics.
Midpeninsula Regional Open Space District
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(amounts expressed in thousands, except per-capita amount)
Fiscal Year
General
Obligation
Bonds
Lease
Revenue
Bonds Refunding Bonds Bond Premiums Notes Payable Total
Taxable Assessed
Value (AV)
Percentage of
Taxable AV
Percentage
of Personal
Income Per Capita
2011 - 64,995 50,988 607 6,429 123,019 159,777,663 0.077% 0.102% 840.82
2012 - 51,947 49,179 2,515 36,898 140,539 162,250,428 0.087% 0.105% 873.73
2013 - 51,568 47,994 2,351 37,039 138,952 169,774,177 0.082% 0.102% 865.00
2014 - 51,021 50,665 2,188 36,285 140,159 183,976,034 0.076% 0.094% 811.01
2015 - 20,385 49,935 6,973 59,271 136,564 195,005,584 0.070% 0.083% 723.35
2016 45,000 20,290 47,300 9,087 58,698 180,375 214,740,668 0.084% 0.101% 903.18
2017 44,225 1,080 57,410 20,475 58,761 181,951 231,940,459 0.078% 0.094% 836.30
2018 104,570 930 78,870 26,839 34,466 245,675 250,718,954 0.098% 0.118% 1,048.69
2019 102,880 750 75,460 25,567 33,749 238,406 270,535,736 0.088%**
2020 98,290 535 72,435 24,263 32,971 228,494 295,787,770 0.077%**
* Information not available
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
(1) Details regarding the District's outstanding debt can be found in the notes to the financial statements.
(2) Refer to the Demographics Statistics for personal income and population data.
Ratios of Outstanding Debt
Last Ten Fiscal Years
Midpeninsula Regional Open Space District
(amounts expressed in thousands, except per-capita amount)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Assessed Valuation:
Assessed value subject to debt levy 159,777,663$ 162,250,428$ 169,774,177$ 183,976,034$ 195,005,584$ 214,740,668$ 231,940,459$ 250,718,954$ 270,535,736$ 295,787,770$
Total assessed valuation 159,777,663 162,250,428 169,774,177 183,976,034 195,005,584 214,740,668 231,940,459 250,718,954 270,535,736 295,787,770
Debt Applicable to Limitation:
Total debt 6,429 36,898 37,039 36,285 59,271 58,698 58,761 34,466 33,749 32,971
Less: amount available for repayment - - - - - 3,116 2,194 5,785 6,776 4,814
Total debt applicable to limitation 6,429 36,898 37,039 36,285 59,271 55,582 56,567 28,681 26,973 28,157
Legal Debt Margin:
Bonded debt limit (15% AV)23,966,649 24,337,564 25,466,127 27,596,405 29,250,838 32,211,100 34,791,069 37,607,843 40,580,360 44,368,166
Debt applicable to limitation 6,429 36,898 37,039 36,285 59,271 55,582 56,567 28,681 26,973 28,157
Legal debt margin 23,960,220$ 24,300,666$ 25,429,088$ 27,560,120$ 29,191,567$ 32,155,518$ 34,734,502$ 37,579,162$ 40,553,387$ 44,340,009$
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Under California Government Code Section 61126 (b) the Midpeninsula Regional Open Space District shall not incur bonded
indebtedness that exceeds 15% of the total assessed property value.
Midpeninsula Regional Open Space District
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year Population
1
Personal Income 2
(in millions)
Per Capita
Personal Income 2
Median
Age 3
School
Enrollment 4
County Unemployment
Rate 5
2011 1,805,767 120,376 66,406 36.0 266,256 9.6%
2012 1,832,983 133,912 72,792 36.2 270,109 8.2%
2013 1,860,687 136,176 72,927 36.4 273,701 6.8%
2014 1,882,230 149,650 79,055 36.6 276,175 5.2%
2015 1,906,511 165,265 86,188 36.8 276,689 4.3%
2016 1,925,306 178,496 92,505 36.8 274,948 3.9%
2017 1,936,052 193,680 100,177 37.0 273,264 3.4%
2018 1,947,798 209,020 107,877 37.2 271,400 2.9%
2019 1,954,286 ** 37.4 267,224 2.9%
2020 1,961,969 *** 263,449 10.7%
Calendar Year Population
1
Personal Income 2
(in millions)
Per Capita
Personal Income 2
Median
Age 3
School
Enrollment 4
County Unemployment
Rate 5
2011 727,319 58,201 79,903 39.4 92,097 7.9%
2012 736,760 65,113 88,058 39.6 93,674 6.8%
2013 747,186 65,696 87,711 39.3 93,931 5.6%
2014 753,472 71,043 93,765 39.4 94,567 4.3%
2015 760,769 78,540 102,606 39.8 95,187 3.5%
2016 766,649 82,357 107,207 39.5 95,502 3.2%
2017 769,570 90,249 117,389 39.6 95,620 2.9%
2018 772,372 97,265 126,392 39.9 95,103 2.5%
2019 774,485 ** 39.6 94,234 2.4%
2020 773,244 *** 93,554 10.8%
* Information not available
Data Sources
1 State of California Department of Finance - http://www.dof.ca.gov/Forecasting/Demographics/Estimates/e-4/2010-20/
2 U.S. Department of Commerce Bureau of Economic Analysis
3 U.S Census Bureau, American Community Survey
4 State of California Department of Education
5 State of California Employment Development Department, Labor Market Division
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Demographic and Economic Statistics
Last Ten Fiscal Years
County of Santa Clara
County of San Mateo
Employer
Number of
Employees 1 Rank
Percentage of
Total
Employment
Number of
Employees 2 Rank
Percentage of
Total
Employment
Apple Computer, Inc. 25,000 1 2.44%10,000 5 1.28%
Google LLC 24,626 2 2.40%**
County of Santa Clara 20,883 3 2.04% 15,550 1 1.99%
Stanford University 16,919 4 1.65%10,101 4 1.29%
Cisco Systems Inc. 14,674 5 1.43%13,000 2 1.60%
Kaiser Permanente 12,500 6 1.22%5,000 10 0.64%
Stanford Healthcare 10,034 7 0.98% 5,569 8 0.71%
Tesla Motors Inc. 10,000 8 0.98%**
Applied Materials, Inc. 8,500 9 0.83% * *
Intel Corporation 8,500 10 0.82% 5,684 9 0.73%
City of San Jose * * 6,623 6 0.85%
Lockheed Martin Space Systems Co. * * 10,400 3 1.33%
Hewlett-Packard Co. * * 5,001 7 0.64%
Total 151,636 14.79% 86,928 11.06%
Employer
Number of
Employees Rank
Percentage of
Total
Employment
Number of
Employees Rank
Percentage of
Total
Employment
Facebook, Inc. 14,000 1 3.13%**
Genentech Inc. 9,500 2 2.12%8,800 1 2.57%
Oracle Corp. 7,535 3 1.68%5,600 3 2%
County of San Mateo 5,570 4 1.25%6,079 2 1.78%
Gilead Sciences, Inc. 4,000 5 0.89% * *
Walmart Labs 2,000 6 0.45% * *
YouTube 2,000 7 0.45%**
Roberto Half International, Inc. 1,668 8 0.37% * *
Sony Interactive Entertainment 1,602 9 0.36% * *
Electronic Arts, Inc. 1,520 10 0.34% * *
Kaiser Permanente * * 3,777 4 1.10%
Mills-Peninsula Health Services * * 2,500 5 0.73%
Visa, Inc. * * 2,462 6 0.72%
Safeway, Inc. * * 2,075 7 0.61%
San Mateo County Community College District * * 1,951 8 0.57%
SLAC National Accelerator Laboratory * * 1,764 9 0.52%
Set Medical Center * * 1,672 10 0.49%
Total 49,395 11.04% 36,680 10.73%
* Information not available
Source:
1 Silicon Valley Business Journal, July 19, 2019
2 County of Santa Clara Finance Department. FY2009-10 CAFR
3 San Francisco Business Times - 2019 Book of Lists and California Employment Development Department
4 Latest information available for principal employers in the County of San Mateo.
2018 4 2010
County of San Mateo 3
County of Santa Clara
Midpeninsula Regional Open Space District
Principal Employers
Most Current Year and Nine Years Ago
2019 2010
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Function
Office of the General Manager 3.00 4.00 4.00 4.00 5.00 6.00 8.00 8.00 8.00 8.00
Real Property 5.00 5.00 5.00 5.00 6.00 4.00 4.00 5.00 5.00 5.00
Plannning 14.00 14.00 14.00 14.00 14.00 13.00 10.50 10.50 10.50 10.50
Engineering & Construction N/A N/A N/A N/A N/A N/A 5.50 7.50 7.50 7.50
Public Affairs 8.00 8.00 9.00 9.00 11.00 12.00 8.00 8.00 8.00 8.00
Admininstration
Reception 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Finance 3.25 3.25 3.25 4.75 4.75 5.25 9.25 9.25 10.25 11.25
Human Resources 2.00 2.50 3.50 3.50 5.50 7.00 7.00 7.00 7.00 7.00
Information Technology 1 1.00 1.00 2.00 2.50 2.50 5.50 7.50 7.50 8.50 8.50
Operations
Administration 6.00 6.00 6.00 6.00 6.00 6.00 N/A N/A N/A N/A
Patrol 28.00 28.00 28.00 28.00 31.00 32.00 N/A N/A N/A N/A
Land/Facilities Maintenance 26.00 26.00 26.00 26.00 28.30 30.30 N/A N/A N/A N/A
Resource Management 2 6.00 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Land & Facilities N/A N/A N/A N/A N/A N/A 49.30 53.30 56.30 57.30
Visitor Services N/A N/A N/A N/A N/A N/A 41.90 41.90 41.90 43.40
General Counsel 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 3.50 3.50
Natural Resources 2 N/A 8.00 8.00 8.00 9.00 10.00 11.00 12.00 12.00 12.00
Total 105.75 109.25 112.25 114.25 126.55 134.55 165.45 173.45 179.45 182.95
Source: Midpeninsula Regional Open Space District
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
1 In 2015, the GIS function was integrated into Information Technology from the Planning Department
2 In 2012, the Resource Management function under the Operations Department became the Natural Resources Department
During 2015, the District underwent a complete reorganization which become effective during FY 2016-17. As part of the
reorganization, the Planning Department was split with a new Engineering & Construction Department, a portion of Real
Property and Operations became the new Land & Facilities Department, and part of Public Affairs and Operations/Patrol
became the new Visitor Services Department.
Midpeninsula Regional Open Space District
Full-time Equivalent District Government Employees by Function
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Function
Land:
Number of preserves 26 26 26 26 26 26 26 26 26 26
Acreage:
Santa Clara County 32,380.35 32,990.49 33,006.79 33,158.80 33,259.21 33,366.71 33,449.99 33,628.15 33,631.06 33,631.06
San Mateo County 26,704.01 27,625.36 28,668.49 28,977.86 29,063.13 29,452.58 29,643.96 29,664.41 29,854.41 30,636.85
Santa Cruz County 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18
less: easements and life
estates held by other parties (1,825.88) (1,825.88) (1,825.88) (1,825.88) (1,825.88) (1,825.88) (1,825.88) (1,802.88) (1,802.88) 782.44
Total 59,262.66 60,794.15 61,853.58 62,314.96 62,500.64 62,997.59 63,272.25 63,493.86 63,686.77 67,054.53
Facilities:
Administrative office 1111111111
Field/patrol offices 2222222333
Visitor Center 2222222222
Vehicles & Equipment:
Patrol vehicles 35 37 39 41 38 37 42 36 34 33
Service vehicles 333581013101114
Maintenance vehicles 6 8 9 13 16 19 25 29 31 31
Administrative vehicles n/a n/a n/a n/a n/a n/a n/a 13 13 15
Motorcycles/ATVs/Electric bicycles 13 13 13 13 13 13 13 27 27 32
Bulldozers/excavators/tractors 17 17 20 21 21 23 23 20 23 23
Dump trucks 44445554611
Water Truck 1222222222
Trailers n/a n/a n/a n/a n/a n/a n/a 25 27 31
Chippers/mowers 2224455555
Source: Midpenninsula Regional Open Space District
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Beginning with FY2017-18 the District is using a new system for classifying and tracking vehicles and equipment.
Midpeninsula Regional Open Space District
Capital Asset Statistics by Function
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Function
General Manager
Board meetings 31 45 36 35 33 31 31 44 32 28
Resolutions adopted 41 56 20 39 61 61 40 46 47 43
Real Property
Acres preserved
Santa Clara County 547.04 492.99 16.30 152.01 100.41 107.50 83.28 178.18 2.11 -
San Mateo County 115.17 921.35 1,043.14 309.37 393.26 81.45 191.38 20.46 190.00 782.44
Public Affairs
Stewardship volunteer hours 11,314 11,843 11,232 13,579 14,354 15,839 17,440 16,088 15,910 10,296
Interpretation/education docent hours 5,433 4,669 5,559 4,718 5,828 4,462 4,697 4,320 4,438 975
Website visits 274,133 434,402 349,398 359,432 418,748 429,891 487,215 589,280 524,387 782,003
Bicycle Accident 22 36 37 30 20 26 19 37 13 30
Equestrian Accident 1 1 2 - 1 2 - - 1 3
Hiking/Running Accident 18 16 16 22 20 14 37 40 11 25
Other first aid 15 25 24 15 25 26 23 31 13 29
Search & rescue 15 10 8 5 8 3 4 2 2 4
Vehicle Accident 11 16 15 14 19 14 17 50 15 47
Fire 5 7 8 16 9 10 9 13 4 7
HazMat 3 - - 1 1 6 1 3 1 1
Citation/Juvenile Contact Report 509 526 737 617 825 767 678 592 405 387
Parking Citation 434 527 621 584 700 645 836 870 375 1,027
Arrests 1 1 2 1 4 3 2 - 2 2
Day Permits 1,059 1,235 1,237 1,521 2,154 2,541 2,530 2,676 2,417 1,350
Multi-day permits 248 225 253 306 306 321 366 419 361 313
Camping permits 259 341 336 393 476 573 613 570 571 441
Source: Midpenninsula Regional Open Space District
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Operating Indicators by Function
Last Ten Fiscal Years
Page Intentionally Left Blank
Other Independent Auditor’s Reports
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
of the Midpeninsula Regional Open Space District
Los Altos, California
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of the
governmental activities and each major fund of Midpeninsula Regional Open Space District (the
District) as of and for the year ended June 30, 2020, and the related notes to the financial statements,
which collectively comprise the District’s basic financial statements, and have issued our report
thereon dated December 1, 2020.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the District’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal control
over financial reporting that might be material weaknesses or significant deficiencies. Given these
limitations, during our audit we did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses. However, material weaknesses may exist that
have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
December 1, 2020
San Jose, California
Midpeninsula Regional Open Space District
330 Distel Circle
Los Altos, California 94022-1404
650-691-1200
info@openspace.org
openspace.org
PRINTED ON POST
CONSUMER WASTE PAPER
Rancho San Antonio Open Space Preserve by Lillian Oliveri
Photos on front cover:
Top photo: Russian Ridge Open Space Preserve by Joyce Pennell
Second row, left to right:
Monte Bello Open Space Preserve by Frank Yien;
Skyline Ridge Open Space Preserve by Melinda Horn;
Monte Bello Open Space Preserve by Jack Owicki.
Resolutions/2020/20-__FundTransfers 1
RESOLUTION NO. 20-___
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT APPROVING
THE TRANSFER OF FUNDS FROM THE GENERAL FUND
UNASSIGNED FUND BALANCE INTO THE COMMITTED FOR FUTURE
ACQUISITION/CAPITAL PROJECTS FUND
WHEREAS, the Unassigned Fund Balance of the Midpeninsula Regional Open Space
District is $20,086,094 as of June 30, 2020; and
WHEREAS, per the Fund Balance Policy as adopted by the Board of Directors on
October 26, 2016, the minimum required Unassigned Fund Balance of the Midpeninsula
Regional Open Space District is $16,046,182 as of July 1, 2020; and
WHEREAS, the District expects to require further funding in order to continue its
program of land acquisition, and construction of capital projects; and
WHEREAS, the General Manager recommends allocating unassigned funds from the
General Fund Unassigned Fund Balance in order to increase the Committed for Future
Acquisitions & Capital Projects Fund for the acquisition of additional land and future capital
projects.
NOW, THEREFORE, the Board of Directors of the Midpeninsula Regional Open Space
District does resolve as follows:
SECTION ONE. The following transfer is approved and the General Manager or
designee is authorized to implement said transfer as follows: $3,000,000 from the General Fund
Unassigned Fund Balance to the Committed for Future Acquisitions & Capital Projects Fund.
* * * * * * * * * * * * * * * * * * * *
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional
Open Space District on December 9, 2020, at a regular meeting thereof, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
Jed Cyr, Secretary
Board of Directors
Karen Holman, President
Board of Directors
ATTACHMENT 2
Resolutions/2020/20-__FundTransfers 2
APPROVED AS TO FORM:
Hilary Stevenson, General Counsel
I, the District Clerk of the Midpeninsula Regional Open Space District, hereby certify
that the above is a true and correct copy of a resolution duly adopted by the Board of Directors
of the Midpeninsula Regional Open Space District by the above vote at a meeting thereof duly
held and called on the above day.
Jennifer Woodworth, District Clerk
Midpeninsula Regional Open Space District
Board Policy Manual
Statement of Investment Policy 3.08
Chapter 3 – Fiscal Management
Effective Date: 1/8/97 Revised Date: 12/9/20
Prior Versions: 1/8/97; 1/10/01; 1/16/02; 1/8/03; 1/14/04; 1/12/05; 1/11/06; 1/10/07; 1/16/08;
1/13/10; 1/12/11; 1/11/12; 1/24/13; 1/22/14; 1/28/15; 8/12/15; 8/10/16; 5/10/17; 6/27/18
Board Policy 3.08 Page 1 of 4
Goals
Goal 1. Capital Preservation
The primary goal shall be to safeguard the principal of invested funds. The secondary objective
shall be to meet the liquidity needs of the District. The third objective shall be to achieve a
return on funds consistent with this Policy. Temporarily idle funds shall be invested in a
conservative manner, such that funds can always be withdrawn at, or just above or below, full
invested value. Investments that offer opportunities for significant capital gains and losses are
excluded.
Goal 2. Liquidity
Temporarily idle funds shall be managed so that normal operating cash needs and scheduled
extraordinary cash needs can be met on a same day basis. Investments shall be sufficiently
liquid to provide a steady and reliable flow of cash to the District to insure that all land
purchases can be made promptly (within two weeks).
Goal 3. Income
Temporarily idle funds shall earn the highest rate of return that is consistent with capital
preservation and liquidity goals and the California Government Code.
Guidelines
1. Determination of Idle Funds
The Controller shall prepare a cash flow projection prior to all investment decisions involving
securities with a term to maturity exceeding one year. This cash flow projection shall be
reviewed and evaluated by the General Manager or Chief Financial Officer (CFO). The General
Manager or CFO is responsible for approving the Controller’s designation of the amount of
funds available for investment for longer than one year.
2. Restricted Monies
[a] MROSD Retiree Healthcare Plan: All funds are to be held by either: the Section
115 Trust California Employers’ Retiree Benefit Trust (CERBT) administered by CalPERS,
Attachment 3
Board Policy 3.08 Page 2 of 4
or 2) the Section 115 Trust offered through PARS as approved by Board Resolution 18-
07.
[b] Hawthorn Endowment Fund: All funds will be held in a separate account and
invested in accordance with this policy.
[c] Debt Service Reserve Funds Held by Bond Trustees: Funds held by such trustees
shall be invested in accordance with the bond indenture or other agreement providing
for the issuance and management of such debt.
3. General Fund Committed Reserves
At least 20% of the total general fund committed reserve requirement shall be maintained, at
all times, with the Santa Clara County Pooled Investment Fund (SCCPIF) and/or the State of
California’s Local Agency Investment Fund (LAIF).
4. General Fund Unassigned Reserves
In addition to any committed fund reserve requirement, at least 20% of the general fund
reserve per the Fund Balance Policy 3.07 shall be maintained, at all times, with the SCCPIF
and/or LAIF.
5. General Obligation Bond Proceeds Held by Fiscal Agent
Bond Proceeds held by the District’s Fiscal Agent, either in the Debt Service Fund or Bond
Proceeds Fund, shall be invested through the investment department of the Fiscal Agent and in
accordance with the Fiscal Agent Agreement.
6. Non-Invested Funds
Idle District funds not otherwise invested as permitted by this Policy shall be deposited with the
Santa Clara County Pooled Investment Fund, the San Mateo County Treasurer’s Pooled
Investment Fund, the State of California’s Local Agency Investment Fund or CalTRUST.
7. Selection of Investments
The Controller is responsible for selecting investments and directing such security transactions
that fit within the amounts and maturities as recommended by the Controller. The Controller
will communicate such actions to the General Manager and CFO.
8. Prohibited Investments
Investment in securities of companies in the non-renewable energy sector (e.g. coal, oil,natural
gas, etc.) shall not be permitted.
9. Investments Instruments and Deposit of Funds
Investments and deposits of funds shall be limited to those allowed by and subject to the
procedures of Government Code Section 53600 et seq. and 53635 et seq. In the event of any
Attachment 3
Board Policy 3.08 Page 3 of 4
conflict between the terms of this Policy, and the Government Code, the provisions of the
Government Code shall prevail. Investments shall not be leveraged. Investments, and
“derivatives,” that offer opportunities for significant capital gains and losses are excluded. If
after purchase, securities are downgraded below the minimum required rating level, the
securities shall be reviewed for possible sale with a reasonable amount of time after
downgrade. Significant downgrades and the action taken or to be taken will be disclosed in the
next monthly report.
10. Maximum Maturity
The average maturity of the total District investment portfolio shall not exceed eighteen
months and no investment, except for debt service reserve funds held by bond trustees, shall
have a maturity of more than three years from the date of purchase. The maturity of
investments in trustee-held debt service reserve funds shall not exceed the final debt service
payment date of the bonds.
11. Diversification
Investments shall meet the diversification test of Government Code Section 53601.7(c), stating
that no more than 5% of the total investment portfolio may be invested in the securities of any
one issuer, except for the obligations of the U.S. Treasury or U.S. Government Agencies.
12. Marketability
For investments other than bank certificates of deposits the breadth of ownership and number
of securities outstanding shall be sufficient to establish a secondary market in which
investments can be readily converted to cash without causing a material change in their market
value.
13. Acceptable Banks
Bankers' Acceptances and Negotiable Certificates of Deposit may be purchased only from the
District’s commercial bank or banks and savings and loan associations with over $1 billion of
deposits and reporting profitable operations and which meet all applicable criteria of the
Government Code. Certificates of Deposit may be purchased from other banks within Santa
Clara and San Mateo Counties which meet all applicable criteria of the Government Code if the
principal is fully insured by the Federal Deposit Insurance Corporation.
14. Acceptable Collateral
Securities collateralizing bank or savings and loan deposits must be rated “A” or higher.
15. Investments in Name of District
All investments purchased shall stand in the name of the District.
Attachment 3
Board Policy 3.08 Page 4 of 4
16. Reporting
The Controller shall submit a report of the District’s investment portfolio and security
transactions to the Board of Directors by the second Friday of each calendar month in
accordance with Government Code Sections 53607 and 53646. Such reports shall also be
submitted to the General Manager, CFO and to the District’s auditor.
17. Purchase of Securities
The Controller is authorized to purchase securities through the investment department of the
District’s bond trustees and fiscal agents and as otherwise permitted by the Government Code.
Any account resolutions required by bank investment departments will be submitted to the
Board of Directors for approval prior to any trading through that bank. The bank or other
investment institution from which authorized securities are purchased shall be instructed in
writing only to purchase securities in the name of the District and that all matured funds shall
be returned to the District’s commercial bank account. The bank shall also be instructed to
send receipts for all transactions to the CFO and the District accounting department.
Attachment 3
Rev. 1/3/18
R-20-148
Meeting 20-29
December 9, 2020
AGENDA ITEM 8
AGENDA ITEM
50th Anniversary Celebration Preparations
GENERAL MANAGER’S RECOMMENDATIONS
1. Review and provide input on the proposed scope of the 50th Anniversary Celebration plans.
2. Consider formation of an ad-hoc committee to provide continued involvement and timely
decisions as planning progresses.
SUMMARY
In 2022, the Midpeninsula Regional Open Space District (Midpen) will celebrate 50 years of
open space preservation, natural resource protection and ecologically sensitive public access.
Plans are under development to commemorate the milestone with a year-long celebration of
Midpen’s founding, evolution and accomplishments to connect constituents to the next 50 years
of open space preservation, natural resource protection and ecologically sensitive public
recreation. This item was previously discussed by the Legislative, Funding, and Public Affairs
Committee (LFPAC) on November 17. The General Manager and LFPAC recommend that the
Board of Directors (Board) review and provide input on the proposed celebratory priorities for
the 50th anniversary and consider formation of an ad hoc committee to guide the event
preparations.
DISCUSSION
Founded by voter passage of Measure R in 1972, the Midpeninsula Regional Open Space
District will celebrate 50 years of accomplishments in 2022. To mark the occasion, staff has
initiated planning for a series of events throughout the 2022 calendar year. This milestone
anniversary provides an opportunity to celebrate the agency’s founding, evolution and
accomplishments and look forward to the next 50 years. A key objective for sharing Midpen’s
legacy story widely is to increase public awareness and positive regard for the agency, deepen a
collective understanding of why open space is important, and engage and celebrate our diverse
partners, volunteers, Board and staff for our collective accomplishments. See Attachment 1 for
the proposed scope of priority elements to be included in the anniversary year celebration.
The following are highlights of the anniversary celebration plan:
•ANNIVERSARY LOGO – to give a cohesive brand to celebration materials.
•SCIENCE SYMPOSIUM – A science-themed symposium convened by Midpen could
allow researchers, land managers, partners and the public to discuss the latest findings in
R-20-148 Page 2
natural resource management, such as wildlife connectivity, vegetation management, fire
resilience, ecosystem protection, GIS mapping, Sudden Oak Death and more. Following
the symposium, an inclusive anniversary gathering for diverse partners can serve as a
capstone to the celebration with speakers, honorees or awards.
• FILM/VIDEO – A professionally produced documentary on “The Preservation of Public
Open Space” could help people understand the benefits and complexities of preserving
and maintaining open space. Ideally, the full-length film could be featured on local
broadcast television, though we will produce as separate segments of approximately 10
minutes to be used online and in other ways.
• EXPANDED OUTREACH - Anniversary-themed outreach events and activities will be
interspersed throughout the year as a foundational element of the public celebration. We
will increase the amount of tabling we do throughout the District at community events
and in preserves. Anniversary-themed docent-led hikes, a hike/visit challenge and
partnership events, such as community rides, will be considered.
• MEDIA SUPPORT – a cohesive plan for both earned and paid media to promote events
and stories related to the 50th Anniversary, through advertising, briefings and news
releases.
The Board’s review of and input on the full suite of ideas being proposed will help staff properly
scope, resource load and budget for a successful celebration of 50 years of accomplishments in
open space preservation, natural resource protection and ecologically sensitive public access. In
addition, the Board is asked to consider formation of an ad hoc committee to help provide timely
guidance as part of the preparations. As this work proceeds, decisions will need to be made in
quick fashion to ensure that all the preparations are completed on time and within budget.
FISCAL IMPACT
Budgeting will begin upon finalization of the scope. The FY21 budget includes $15,000 for
anniversary planning. This initial funding is proposed to cover graphic design and approximately
three months of professional service consultant fees for event planning and video production
assistance. Initial ballpark budget expectations will be developed for the items outlined in
Attachment 1. If a symposium and/or celebratory gathering is pursued, costs can be significantly
offset by entrance fees and sponsorships. Actual budgets will be developed with consultant
assistance as the scope evolves.
BOARD COMMITTEE REVIEW
This item was reviewed by the Legislative, Funding and Public Affairs Committee on November
17, 2020. The Committee suggested adding bus tours similar to those created for the Special
Park District Forum in 2019 to allow partners to visit Midpen preserves and project. The scope
document has been updated to show that this may potentially be accomplished by adding mobile
workshops to the symposium. The Committee also discussed adding VIP tours, partner
celebrations and the potential to solicit additional funding support from partners or corporate
sponsors. Discussion also included opportunities to tie-in an open house for the new
administrative office and the potential to name a trail in honor of Green Foothills founder Lennie
Roberts who has been instrumental in Midpen’s success. The Committee discussed an
appropriate budget range of $200,000 to $400,000 and supported the formation of an ad hoc
R-20-148 Page 3
committee of the Board to provide continued involvement and timely decisions as planning
progresses.
PUBLIC NOTICE
Public notice was provided as required by the Brown Act.
CEQA COMPLIANCE
This item is not a project subject to the California Environmental Quality Act.
NEXT STEPS
Upon Board approval, staff will move forward with releasing requests for proposals for event
planning assistance and video production with the goal of beginning engagements in April to
finalize the anniversary plan scope, timeline and budget in June 2021.
Attachment:
1. 50th Anniversary Celebration Initial Scope
Responsible Department Head:
Korrine Skinner, Public Affairs Manager
Prepared by:
Mike Kahn, Public Affairs Specialist II
Attachment 1
50th Anniversary Plan Initial Scope
Goals and Objectives
To commemorate 50 years with a year-long celebration of Midpen’s founding, evolution and accomplishments
to connect constituents with the next 50 years of open space preservation, natural resource protection and
ecologically sensitive public recreation:
• Increase public awareness of and positive regard for Midpen by celebrating accomplishments.
• Tell the story of Midpen’s legacy, including why nature is essential, how open space is preserved,
including the role of rural and working lands, and the partnerships involved.
Key Elements of 50th Anniversary Celebration Plan for January 1-December 31, 2022
• Commemorative 50th Anniversary logo to be used throughout the year.
• Science Symposium and Anniversary Gathering – with assistance from event planning consultant, plan
a symposium to discuss land management research with public presentations and poster sessions,
capped by an inclusive celebratory gathering for diverse partners.
o Timing: Fall 2022 (Measure R passed 11/72) to lessen event conflicts and weather issues, and
provide lead time for preparations.
• Invite academic and partner organization to present research, panel discussion topics.
• Consider potential to include tracks: land management, community engagement,
public access.
• Consider potential for mobile workshops to give participants the opportunity to visit
Midpen preserves and projects.
o Evening Anniversary gathering with speaker, potential for honorees or awards, such as
founders or 50 under 50 looking to the future of open space leadership.
o Potential to livestream or record symposium/celebratory gathering to broaden public access.
• “The Preservation of Public Open Space” - with assistance from professional video production team,
create 60-minute documentary exploring the big picture of what it takes to make public open space
happen in the Bay Area, featuring Midpen and close partners: how a regional environmental
protection vision was formed, people who were/are instrumental, what land purchases take, how land
managers care for the land, how public access is planned and how it all comes together the create the
essential benefits of nature. Built to be evergreen, as roughly six 10-minute segments to allow for
additional use separately.
o Segments:
1. Overview: Bay Area conservation movement and Measure R: Midpen formation,
regional environmental protection vision, 2014 Vision Plan, Measure AA
2. Land Acquisition and Conservation – biodiversity, wildlife corridors, water, agriculture,
Coastside Protection Area
3. Restoration Science & Natural Resources Protection
4. Public Access Planning & Community Engagement
5. Outreach, Interpretation and Environmental Education – connecting people to place
and the essential benefits of nature
6. The future of open space (in perpetuity means forever)
o Narrated by a recognizable, local figure.
Attachment 1
o Potential for television broadcast - KQED (requires neutral funding), NBC Bay Area/Telemundo
(could be OpenRoad special).
• Expanded Outreach
o Community Event Tabling
• Develop anniversary-themed display and commemorative keepsake items.
• Select event schedule that balances appearances across Wards (identify highly
frequented community locations and established events, such as main libraries,
downtown areas, large events, farmers markets, coastal clean-ups/beach festivals,
community centers, neighborhood association meetings.
o Preserve events focused on visitors to meet people where they are and encouraging people to
come out, styled like the welcome table at the Bear Creek Redwoods opening weekends.
Consider the potential to table at each preserve with open public access. Include bilingual
staff/volunteers.
o Administrative office open house. The 50th Anniversary coincides with moving to 5050 El
Camino.
o Increase history/anniversary-themed docent naturalist or staff-led hikes. Consider mountain
biking and equestrian options. Create anniversary-themed curriculum for partner groups like
Latino Outdoors and other youth groups.
o Hike/visit challenge – create a challenge themed to historic milestones where visitors who
complete the challenge get a prize. Develop commemorative keepsake for geocache
locations.
o Sponsor community bicycle rides – partner with SVBC at RSA (multimodal project tie in) and
possibly RW too (bikeable).
• Staff engagement
o Create special commemorative clothing item.
o Engage past staff on video to capture oral histories and promote career pathway stories.
• Website – create significant 50th Anniversary presence on website, integrate videos and history
content (new site will feature updated timeline).
• Newsletters and social media
o Celebrate key historic events every month (acquisitions, new projects and programs, key
milestones – acreage, trails, studies, etc.).
o Share remembrances from the community, partners, volunteers and staff (past and present).
o Highlight partnerships and key leaders who have been instrumental in our history.
• Create Anniversary edition of 2022 photo calendar
• Add Anniversary-themed items to Midpen online store
• Elevate key Midpen projects during anniversary year – opportunity to elevate project profiles during
the year, implement anniversary/history tie-ins where applicable, and highlight key. partners and
community leaders who have been instrumental in completing Midpen projects.
• Media – develop a cohesive plan to promote events with advertising. Pitch stories and message
themes through press briefings and news releases.
o Include multilingual advertising in ethnic outlets.
o Consider materials specifically for underserved communities.
o Evaluate partnerships to show our film/video segments or other features.
###
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT FINANCING AUTHORITY
R-20-146
Meeting 20-29
December 9, 2020
FINANCING AUTHORITY AGENDA ITEM 1
AGENDA ITEM
Acceptance of the Annual Financial Report of the Midpeninsula Regional Open Space District
Financing Authority for Fiscal Year Ending June 30, 2020
CONTROLLER’S RECOMMENDATION
Accept the Annual Financial Report.
DISCUSSION
In May 1996, the Midpeninsula Regional Open Space District (District) and Santa Clara County
established the Financing Authority with the purpose of providing financing assistance to the
District to fund the acquisition and preservation of open space land and to finance public capital
improvements. The current members of the Financing Authority Board of Directors are Board
President Karen Holman (Chairperson), Board Director Yoriko Kishimoto, Board Director Pete
Siemens, Board Director Larry Hassett, and Santa Clara County Board Supervisor Joe Simitian.
Accordingly, the District and the Financing Authority are accounted as one blended unit for
financial statement purposes. On November 20, 2020, the District’s independent auditors,
Chavan & Associates, LLP., issued its report on the District’s financial statements for the fiscal
year ending June 30, 2020 (Attachment 1).
Through June 30, 2020, the District has sold six series of Financing Authority bonds, with a total
par value of $199.6 million. A summary of the six financings is shown in Table 1 below.
Excluding the 2007 Bonds, which raised no new money and only refinanced existing Financing
Authority bonds, the District has issued $140.4 million (net) of Financing Authority bonds,
funding $77 million of new land acquisitions and repaying $60 million of prior public and
private debt, which had been issued at higher interest rates and for shorter maturities.
Table 1: District Financings
Issuance Par Amount TIC* Purpose
1996 Bonds $29.9 M 6.25% $11M Land + pay-off 1988 Notes
1999-1 Bonds $29.7 M 5.26% $21M Land + pay-off 1992 Notes
1999-2 Bonds $28.4 M 5.93% $15M Land + pay-off 1990 Notes
2004 Bonds $31.9 M 4.99%
$10M Land + pay-off 1993
Certificates of Participation
2007 Bonds $59.2 M 4.57% Pay-off 1996 & 1999-2 Notes
2011 Bonds $20.5 M 5.60% Purchase $20M of Land
* TIC = Total Interest Cost, including all costs of issuance
R-20-146 Page 2
Only a small piece of one Financing Authority bond issue remained outstanding on June 30,
2020, with a total outstanding balance of $535 thousand, repayable through FY22 (final payment
on September 1, 2021). The interest cost of these outstanding Financing Authority bonds is
4.00%. A summary of the activity on the Financing Authority bonds in FY20 is shown below.
Table 2:
FY20 Financing Authority Activity
($ thousands)
Balance
June 30, 2019
Principal Paid Balance
June 30, 2020
Interest Paid
FY20
2011 Bonds $750 $215 $535 $25.70
There are no plans to issue additional debt through the Financing Authority.
FISCAL IMPACT
No unbudgeted fiscal impacts are associated with this item.
BOARD COMMITTEE REVIEW
This item was not previously reviewed by a Board Committee.
PUBLIC NOTICE
Notice was provided pursuant to the Brown Act. No additional notice is necessary.
CEQA COMPLIANCE
No compliance is required as this action is not a project under the California Environmental
Quality Act.
NEXT STEPS
An annual report will be provided until the bonds are paid in full (last payment is September 1,
2021).
Attachment
1. District’s Financial Statements for the Fiscal Year ended June 30, 2020.
Responsible Department Head:
Stefan Jaskulak, Chief Financial Officer
Prepared by:
Andrew Taylor, Finance Manager
Comprehensive Annual Financial Report
—————————————————————————————————————————————————————————
FISCAL YEAR ENDED JUNE 30, 2020
Headquarters in Los Altos, California
Attachment 1
Page Intentionally Left Blank
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2020
Midpeninsula Regional Open Space District
Prepared by:
Finance and Administrative Services
Page Intentionally Left Blank
Introductory Section
Page Intentionally Left Blank
TABLE OF CONTENTS
TITLE PAGE
INTRODUCTORY SECTION
Table of Contents ........................................................................................................................ 1
Transmittal Letter ........................................................................................................................ 3
Board of Directors & Management ............................................................................................. 9
Organizational Chart ................................................................................................................... 10
Regional Map .............................................................................................................................. 11
Achievement Award .................................................................................................................... 12
FINANCIAL SECTION
Independent Auditor’s Report ..................................................................................................... 14
Management’s Discussion and Analysis ..................................................................................... 18
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .............................................................................................. 28
Statement of Activities .................................................................................................. 29
Fund Financial Statements:
Balance Sheet – Governmental Funds ........................................................................... 32
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position ....................................................................................... 33
Statement of Revenues, Expenditures, and Changes
in Fund Balance – Governmental Funds ................................................................. 34
Reconciliation of Governmental Funds Statement of Revenues, Expenditures,
and Changes in Fund Balance to the Statement of Activities ................................. 35
Notes to the Basic Financial Statements .............................................................................. 38
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenue, Expenditures and Changes in Fund Balance -
Budget and Actual (GAAP) - General Fund ......................................................................... 74
Schedule of Pension Plan Contributions ..................................................................................... 75
Schedule of Net Pension Liability Proportionate Shares ............................................................. 76
Schedule of Contributions for Postemployment Benefits ........................................................... 77
Schedule of Changes in Net OPEB Liability ............................................................................... 78
SUPPLEMENTARY INFORMATION
Schedule of Revenue, Expenditures and Changes in Fund Balance –
Budget and Actual (GAAP) - Measure AA Capital Projects Fund ...................................... 82
Schedule of Revenue, Expenditures and Changes in Fund Balance –
Budget and Actual (GAAP) - GF Capital Projects Fund ...................................................... 83
Schedule of Revenue, Expenditures and Changes in Fund Balance –
Budget and Actual (GAAP) - Debt Service Fund................................................................. 84
Measure AA Bond Program – Schedule of Program Expenditures ............................................. 85
Notes to Supplementary Information .......................................................................................... 86
STATISTICAL SECTION
Net Position ................................................................................................................................. 90
Changes in Net Position .............................................................................................................. 91
Fund Balances of Governmental Funds ...................................................................................... 92
Changes in Fund Balances of Governmental Funds .................................................................... 93
Assessed and Actual Value of Taxable Property ......................................................................... 94
Direct and Overlapping Property Tax Rates ................................................................................ 95
Principal Property Tax Payers ..................................................................................................... 96
Property Tax Levies and Collections .......................................................................................... 97
Ratios of General Bonded Debt Outstanding .............................................................................. 98
Ratios of Outstanding Debt ......................................................................................................... 99
Legal Debt Margin Information .................................................................................................. 100
Demographic and Economic Statistics ........................................................................................ 101
Principal Employers .................................................................................................................... 102
Full-time Equivalent District Government Employees by Function ........................................... 103
Capital Asset Statistics by Function ............................................................................................ 104
Operating Indicators by Function ................................................................................................ 105
OTHER INDEPENDENT AUDITOR’S REPORTS:
Independent Auditor’s Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards ......................................... 108
Midpeninsula Regional Open Space District
330 Distel Circle
Los Altos, California 94022
December 2, 2020
Members of the Board of Directors and Midpen Constituents:
The Comprehensive Annual Financial Report (CAFR) of the Midpeninsula Regional Open Space District
(District) for the year ended June 30, 2020, is hereby submitted.
The CAFR has been prepared by the Finance Department in compliance with the principles and standards
for financial reporting promulgated by the Governmental Accounting Standards Board (GASB). The
CAFR consists of District management’s representations concerning the finances of the District and District
management assumes full responsibility for completeness, accuracy of data, and fairness of presentation,
including all footnotes and disclosures. Management believes the data presented are accurate in all material
respects and that they are presented in a manner designed to fairly set forth the financial position and results
of operations of the District.
The District’s accounting records for governmental operations are maintained on a modified accrual basis,
with the revenues being recorded when both measurable and available, and expenditures being recorded
when the services or goods are received, and the liabilities are incurred.
District management has established a comprehensive framework of internal controls designed both to
protect the District’s assets from loss, theft, or misuse; and to compile sufficiently reliable information for
the preparation of the District’s financial statements in conformity with generally accepted accounting
principles. Because the cost of internal controls should not outweigh their benefits, the District’s designed
its controls to provide reasonable, but not absolute, assurance that the financial statements will be free from
material misstatement. The CAFR has been audited by the independent certified public accounting firm of
Chavan & Associates, LLP. The independent certified public accounting firm has issued an unmodified
opinion on the District’s financial statements for the year ended June 30, 2020.
Management’s Discussion and Analysis (MD&A) immediately follows the independent auditor’s report
and provides a narrative introduction, overview, and analysis of the financial statements. This letter of
transmittal serves as a complement to the MD&A and should be read in conjunction with it.
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT PROFILE
The Midpeninsula Regional Open Space District (the “District”) was formed in 1972 to acquire and
preserve public open space land in northern and western portions of the County of Santa Clara. In June
1976, the southern and eastern portions of the County of San Mateo were annexed to the District. The
District annexed three parcels located in the northern tip of Santa Cruz County in 1992, but the 1% ad
valorem property tax is not levied on this land for the benefit of the District. In September 2004, the District
completed the Coastside Protection Program, which extended the District boundaries to the Pacific Ocean
in the County of San Mateo County, from the southern borders of the City of Pacifica to the San
Mateo/Santa Cruz County line.
The District encompasses over 550 square miles of land located in the County of Santa Clara
(approximately 200 square miles), the County of San Mateo (approximately 350 square miles) and the
County of Santa Cruz County (approximately 2.6 square miles). The Counties of Santa Clara and San Mateo
are referred to together as the “Counties.”, and approximately 770,000 people live within the boundaries of
the District.
The District has preserved nearly 65,000 acres of public land and manages 26 open space preserves within
its mission to acquire and preserve a regional greenbelt of open space land in perpetuity, protect and
restore the natural environment, and provide opportunities for ecologically sensitive public enjoyment and
education.
A seven-member Board of Directors (Board), elected by individual ward, establishes policies for the
District. Specifically, the Board sets general operating objectives for the District, authorized debt issuance,
monitors financial and long-range planning, establishes policies governing conditions of employment, and
sets policies to protect and enhance the natural and cultural resources of the District. Members of the Board
of Directors are elected for staggered four-year terms. The Board appoints a General Manager to serve as
the District’s chief executive officer. The General Manager provides direction and leadership to all District
departments; and ensures that all District policies are implemented.
The District is a legally separate and fiscally independent entity from other government agencies which
may also provide governmental services within the same geographic area. The CAFR includes all funds of
the District. There are no separate or legal entities or component units include in the financial statements
of the District. The District has a blended component unit included in the financial statements of the
District. In 1996, the District and Santa Clara County established the Midpeninsula Regional Open Space
District Financing Authority (Authority) to help the District finance improvements by buying land and
building facilities in cooperation with the District. The President of the District’s Board of Directors is also
the Chairperson of the Authority. Three District directors and a Supervisor from Santa Clara County are
also on the Authority Board. In effect, the Authority operates in tandem with the District.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is, perhaps best understood when considered from
the broader perspective of the environment in which the District operates.
State and Regional Economy
At the end of 2019, Beacon Economics projected further solid growth in the California economy for 2020
with the northern California region continuing to outpace other parts of the nation with gains in the
technology sector. This forecast was tempered by the region’s continuing issue with housing affordability
and full employment.
However, this forecast changed with the onset of the COVID-19 pandemic when Governor Newsom
declared a state of emergency on March 4, 2020, followed by an executive order directing all Californians
to stay home except for essential employment or shopping for essential needs. The County health officers
of both San Mateo and Santa Clara ordered residents to shelter-in-place as of March 16, 2020.
The updated UCLA Anderson Forecast released in June 2020 showed the expectation for a severe downturn
in economic activity by the fourth quarter of 2020, with U.S. GDP slowing by 8.6% as compared to the
fourth quarter of 2019. The national unemployment rate is expected to be 10%, with full recovery not
expected until 2023. Given California’s large proportion of tourism and trans-Pacific transportation, the
forecast showed the state’s unemployment rate rising to 14.6% by the end of the second quarter as it sheds
2.2 million payroll jobs.
In its most recent report for Fall 2019, Beacon Economics report shows that job growth in the South Bay
area continues to expand a rate much higher than the state average, with the flagship technology sector
recording 3.7% job growth from August 2018 to August 2019 as compared to 1.8% for the state as a whole.
The two main challenges to the Bay area economy remain housing affordability and the lack of investment
in aging infrastructure that is being further strained by population and job growth.
The District’s boundaries encompass a large swath of the Silicon Valley, which continues to be to world’s
premier location for the technology industry with a long culture of entrepreneurship and innovation. The
District typically derives nearly 90 percent of its total revenues from property taxes, with two-thirds of its
general fund property tax revenue from Santa Clara County and one-third from San Mateo County.
The real estate market in the both San Mateo and Santa Clara counties continue to demonstrate strong
demand in both the residential and commercial sectors. For fiscal year 2020-21, the Santa Clara County
Assessor’s Office showed that the assessment roll increased by 6.87 percent, to a total of $551.5 billion.
Similarly, San Mateo County reported that the total value of assessed properties increased by 7.02 percent
for FY 2020-21 to a record $255.1 billion. Total assessments within the District’s boundaries increased by
9.3 percent for FY 2019-20. Over the past 10 years, the District’s general fund property tax revenues have
increased by an annual average of over 9 percent.
In a report released for September 2020 by the California Association of Realtors, residential prices showed
a year-on-year increase of 20.6 percent in San Mateo County and 14.5 percent in Santa Clara County.
While the assessed value continues to grow in both counties, each of the assessor offices remains concerned
about the well-publicized affordability issues in the Bay Area. The impact of the recent voter-approved
Proposition 19 allowing to keep their existing tax base under certain circumstances, remains to be seen.
While the COVID-19 pandemic does not appear to have a negative impact on residential property,
commercial development activity and valuations may face headwinds in the coming years as work from
home practices become the norm.
According to the Federal Reserve Bank of St. Louis, personal income levels as of 2017 (the most recent
year for which county data is available) show per capita income of $98,032 for Santa Clara and $113,410
for San Mateo, which are significantly above $60,156 for the State and $51,869 for the nation.
In face of the continuing COVID-19 pandemic, the District is continuing to develop prudent spending plans,
providing it with the financial resources to deal with a potential recession. The aforementioned housing
affordability crisis and tight labor market continue to present challenges for hiring and retention of
employees. Construction costs for capital projects are still increasing at more rapid pace than general
inflation and the construction labor market remains very tight. The District is continuing its to increase its
profile with the contractor community with greater outreach.
Major Initiatives
In the 2019-20 Fiscal year the District’s achieved the completion of major projects and actions including
the following:
Continued major progress of Phase 2 public access projects at Bear Creek Redwoods Preserve
including:
•Completion of a new restroom facility, adjustments to the new ADA-accessible loop trail, and
feasibility analysis/preliminary design work for further trails.
•Completed improvements to Mud Lake by replacing the spillway and outlet, installation of
storm water swale improvements and replacement of storm water culverts which will protect
Bear Creek Road from flooding and pond habitats.
Completed Phase 3 and 4 of the new Oljon Trail connecting Steam Donkey to the Springboard Trail,
at El Corte de Madera Preserve.
Substantially completed the new 0.6-mile segment of the San Francisco Bay Trail with construction of
a new boardwalk and bridge across sensitive bayland wetlands. This closes a critical regional trail gap
at Ravenswood Preserve, creating 80 miles of continuous Bay Trail access.
Completed the third and final year of a stream gauge and sediment study at El Corte de Madera Creek
Preserve to assess the effectiveness or erosion reduction projects with the aim of improving fishery
streams.
Constructed a bridge and completed revegetation work along the Stevens Creek Nature Trail in Monte
Bello Preserve.
Continued work to prevent and prepare for wildland fires in response to the increasing fire threat in
California. Released a notice of EIR preparation on the developing Wildland Fire Resiliency Program
and received approval for the removal of fire-prone eucalyptus trees at Los Trancos Preserve.
Made significant progress to bring new Midpen office facilities online for improved administrative
functions and delivery of projects and services. This included both the new South Area Field Office
and the District’s new Administrative Headquarters.
Purchased 542.6 acres of open space lands valued at $12.668 million, including:
•The 540-acre Gordon Ridge property as an addition to Tunitas Creek Preserve to support
watershed preservation and conservation grazing.
•The 1.7-acre Gallaway property as an addition to El Corte de Madera Creek Preserve.
•The District also received a gift of 240 acres from the Giusti Family Trust as an addition to
•Purisima Creek Redwood Preserve.
Relevant Financial Policies
Budget Policy
The District follow best practices in budgeting, including: assessment of constituent needs, development
of long range plans, adherence to budget preparation and adoption procedures, monitoring of performance,
and adjustment of budget as required. The District budget is divided into four categories: Operating
Budget, Capital Budget, Land and Associated Costs, and Debt Service. The budget is prepared and adopted
on a cash-basis, whereas the annual financial statements are prepared on a modified accrual basis. The
budget can be amended during the year, in accordance with the Board Budget and Expenditure Policy which
states that increases to any of the four budget categories must be approved by the Board.
Investment Policy
The District’s Investment Policy is adopted annually, in accordance with State law. The policy provides
guidance and direction for the prudent investment of District funds to safeguard the principal of invested
funds and achieve a return on funds while ensuring the liquidity needs of the District. The ultimate goal is
to maximize the efficiency of the District’s cash management system, and to enhance the economic status
of the District, while protecting its pooled cash.
The investment of funds is governed by the California Government Code Section 53601 et seq., and by
California Government Code Section 53630 et seq. Funds on deposit in banks must be federally insured
or collateralized in accordance with the provisions of California Government Code Section 53630 et seq.
Fund Balance Policy
The Board of Directors adopted the Fund Balance Policy in 2014, and updated the Policy in 2016 to achieve
the following goals: provide adequate funding to meet the District’s short-term and long-term plans;
provide funds for unforeseen expenditures related to emergencies such as natural disasters; strengthen the
District’s financial stability against present and future uncertainties such as economic downturns and
revenue shortfalls; and maintain an investment-grade bond rating. This policy has been developed with the
counsel of the District’s independent auditors, to meet the requirements of GASB 54.
The components of the District fund balances are as follows:
•Non-Spendable fund balance includes amounts that cannot be spent either because they are not in
spendable form, e.g. prepaid insurance, or because of legal or contractual constraints. At all times,
the District shall hold fund balance equal to the sum of its non-spendable assets.
•Restricted fund balance includes amounts that are constrained for specific purposes which are
externally imposed by constitutional provisions, enabling legislation, creditors, or contracts.
•Committed fund balance includes amounts that are constrained for specific purposes that are
internally imposed by the District Board of Directors. Funds spent from committed funds shall be
reimbursed from the general fund within two years.
•Assigned fund balance includes amounts that are intended to be used for specific purposes that are
neither restricted nor committed. Such amounts may be assigned by the General Manager if
authorized by the Board of Directors to make such designations. Projects to be funded by assigned
funds require the approval of the General Manager. Funds spent from assigned funds shall be
reimbursed from the general fund within two years.
•Unassigned fund balance includes amounts within the general fund which have not been classified
within the above categories. The Board shall designate the minimum amount of unassigned fund
balance which is to be held in reserve in consideration of unanticipated events that could adversely
affect the financial condition of the District and potentially jeopardize the continuation of necessary
public services. The current minimum unassigned fund balance is 30% of the Budgeted General
Fund Tax Revenue.
Debt Management Policy
The Board of Directors adopted a debt management policy on July 12, 2017. The stated purpose of the
Debt Management Policy is to establish the overall parameters for issuing, structuring and administering
the debt of the District in compliance with applicable federal and State securities laws. The Debt
Management Policy was developed in conjunction with the procedures for Initial and Continuing
Disclosure Relating to Bond Issuances, with the latter ensuring that statements or releases of information
to the public and investors relating to the finances of the District are complete, true and accurate in all
material respects.
AWARDS
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement to the District for its Comprehensive Annual Financial Report for the Fiscal
Year Ended June 30, 2019. This was the third year that the District received this prestigious national award.
The Certificate of Achievement is the highest form of recognition in governmental accounting and financial
reporting. To receive the award, the District must publish a Comprehensive Annual Financial Report that
is easily readable and efficiently organized, and the contents of the report must conform to program
standards and satisfy generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for one year. We believe that
our current report continues to conform to the Certificate requirements, and we are submitting it to the
GFOA for another award of the certificate.
ACKNOWLEDGEMENTS
The preparation of this Comprehensive Annual Financial Report could not have been completed without
the efforts and contributions of its staff, as well as other departments across the District. Management also
wishes to acknowledge the invaluable assistance of Chavan & Associates, the District’s independent
auditors who contributed to the preparation of this Comprehensive Annual Financial Report.
Lastly, we wish to acknowledge the District’s Board of Directors for their continued interest in support of
the District’s effort to improve and strengthen its financial operations and reporting.
Respectfully submitted,
/s/Stefan Jaskulak /s/ Ana Maria Ruiz
Stefan Jaskulak Ana Maria Ruiz
Chief Financial Officer/ General Manager
Director of Administrative Services
Board of Directors & Management
EXECUTIVE MANAGEMENT
Ana María Ruiz–General Manager
Hilary Stevenson–General Counsel
Mike Foster–Controller
Susanna Chan–Assistant General Manager/Project Planning and Delivery
Brian Malone–Assistant General Manager/Visitor and Field Services
Stefan Jaskulak–Chief Financial Officer/Director of Administrative Services
Mission Statement——————————————————————————––––––––––––——————————————————————————————
The mission of the Midpeninsula Regional Open Space District is to acquire and preserve a
regional greenbelt of open space land in perpetuity, protect and restore the natural environment,
and provide opportunities for ecologically sensitive public enjoyment and education.
District Wards Left to right: Zoe Kersteen-Tucker, Curt Riffle, Yoriko Kishimoto, Jed Cyr, Karen
Holman, Larry Hassett, Pete Siemens.
——————————————————————————––––––––––––————————————————————————————————
Pete Siemens Ward 1: Cupertino, Los Gatos, Monte Sereno, Saratoga——————————————————————————––––––––––––————————————————————————————————
Yoriko Kishimoto–Board Treasurer Ward 2: Cupertino, Los Altos, Los Altos Hills, Palo Alto, Stanford, Sunnyvale ——————————————————————————––––––––––––————————————————————————————————
Jed Cyr–Board Secretary Ward 3: Sunnyvale ——————————————————————————––––––––––––————————————————————————————————
Curt Riffle–Board Vice President Ward 4: Los Altos, Mountain View ——————————————————————————––––––––––––————————————————————————————————
Karen Holman–Board President Ward 5: East Palo Alto, Menlo Park, Palo Alto, Stanford——————————————————————————––––––––––––————————————————————————————————
Larry Hassett Ward 6: Atherton, La Honda, Loma Mar, Menlo Park, Pescadero,
Portola Valley, Redwood City, San Gregorio, Woodside——————————————————————————––––––––––––————————————————————————————————
Zoe Kersteen-Tucker Ward 7: El Granada, Half Moon Bay, Montara, Moss Beach, Princeton,
Redwood City, San Carlos, Woodside——————————————————————————––––––––––––————————————————————————————————
Organizational Chart
Midpen At-A-Glance
Public
Board of
Directors ControllerGeneral
Counsel
General
Manager
Public Affairs
Department
Executive Assistant/
Deputy District Clerk
District Clerk/Assistant
to the General Manager
Visitor and Field Services
Assistant General Manager
Finance and Administrative
Services
CFO-Director of
Administrative Services
Project Planning and Delivery
Assistant General Manager
Visitor
Services
Department
Land and
Facilities
Department
Natural
Resources
Department
Planning
Department
Real
Property
Department
Engineering
and
Construction
Department
Budget and
Analysis
Department
Information
Systems and
Technology
Department
Finance
Department
Human
Resources
Department
Founded in 1972 Nearly 65,000
Acres Preserved
245 Miles of Trails 26 Preserves
182 Full-Time
Employees
Over 2 Million
Visitors Per Year
$81.2 Million
Budget
770,000
Residents
Regional Map
Achievement Award
Financial Section
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
of the Midpeninsula Regional Open Space District
Los Altos, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities and each
major fund for Midpeninsula Regional Open Space District (the District), as of and for the year ended
June 30, 2020, and the related notes to the financial statements, which collectively comprise the
District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
The District’s management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the District’s
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the District’s internal control. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities and each major fund of the District, as of
June 30, 2020, and the respective changes in financial position and for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information for the general fund,
schedule of pension plan contributions, schedule of net pension liability proportionate share, schedule
of contributions for postemployment benefits, and schedule of changes in net OPEB liability, as listed
in the table of contents, be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the District’s basic financial statements. The introductory section, budgetary
comparison information for the capital projects funds and the debt service fund, the schedule of
program expenditures for the Measure AA Bond Program, and the statistical sections are presented
for purposes of additional analysis and are not a required part of the basic financial statements.
The schedule of program expenditures for the Measure AA Bond Program is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves,
and other additional procedures in accordance with auditing standards generally accepted in the
United States of America. In our opinion, the schedule of program expenditures for the Measure AA
Bond Program is fairly stated, in all material respects, in relation to the basic financial statements as a
whole.
The introductory section, budgetary comparison information for the capital projects funds and the
debt service fund, and statistical sections included have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion
or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December
1, 2020 on our consideration of the District’s internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the District’s internal
control over financial reporting and compliance.
December 1, 2020
San Jose, California
Management’s Discussion and Analysis
INTRODUCTION
The purpose of the Management’s Discussion and Analysis (MD&A) is to present a discussion and analysis of the
District’s financial performance during the year ended on June 30, 2020. This report will (1) focus on significant
financial issues, (2) provide an overview of the District’s financial activity, (3) identify changes in the District’s
financial position, (4) identify any individual fund issues or concerns, and (5) provide descriptions of significant asset
and debt activity. This information, presented in conjunction with the annual Basic Financial Statements, is intended to
provide a comprehensive understanding of the District’s operations and financial standing.
Required Components of the Annual Financial Report
OVERVIEW AND USE OF THE FINANCIAL STATEMENTS
This annual report consists of a series of basic financial statements and notes. The statements are organized so the
reader can understand the District as an entire operating entity by providing an increasingly detailed look at specific
financial activities.
The Statement of Net Position and Statement of Activities is comprised of the government-wide financial statements
and provides information about the activities of the District as a whole, presenting both an aggregate view of the
District’s finances as well as a longer-term view of those finances. Fund Financial Statements provide the next level of
detail. For governmental funds, these statements reflect how services were financed in the short-term as well as what
remains for future spending. The Basic Financial Statements also include notes that explain some of the information in
the financial statements and provide more detailed data.
The full annual financial report is a product of three separate parts: the basic financial statements, supplementary
information, and this section, the Management’s Discussion and Analysis. The three sections together provide a
comprehensive financial overview of the District. The basic financials are comprised of two kinds of statements that
present financial information from different perspectives, government-wide and fund statements.
Government-wide financial statements, which comprise the first two statements, provide both short-term and long-
term information about the District’s overall financial position.
Individual parts of the District, which are reported as fund financial statements, focus on reporting the District’s
operations in more detail. These fund financial statements comprise the remaining statements.
Management’s
Discussion & Analysis
Government-Wide
Financial Statements
Fund
Financial Statements
Notes to the
Financial Statements
Basic
Financial Statements
�� N o t e s t o t h e f i n a n c i a l s t a t e m e n t s , p r o v i d e m o r e d e t a i l e d d a t a a n d p r o v i d e e x p l a n a t i o n s t o s o m e o f t h e i n f o r m a t i o n
i n t h e s t a t e m e n t s . T h e r e q u i r e d s u p p l e m e n t a r y i n f o r m a t i o n s e c t i o n p r o v i d e s f u r t h e r e x p l a n a t i o n s a n d a d d i t i o n a l
s u p p o r t f o r t h e f i n a n c i a l s t a t e m e n t s .
G O V E R N M E N T - W I D E F I N A N C I A L S T A T E M E N T S - S T A T E M E N T O F N E T P O S I T I O N A N D T H E S T A T E M E N T O F
A C T I V I T I E S
T h e v i e w o f t h e D i s t r i c t a s a w h o l e l o o k s a t a l l f i n a n c i a l t r a n s a c t i o n s a n d a s k s t h e q u e s t i o n , H o w d i d w e d o f i n a n c i a l l y
d u r i n g t h e f i s c a l y e a r 1 8 9 9 - 2 0 2 0 . T h e S t a t e m e n t o f N e t P o s i t i o n a n d t h e S t a t e m e n t o f A c t i v i t i e s a n s w e r s t h i s q u e s t i o n .
T h e s e s t a t e m e n t s i n c l u d e a l l a s s e t s a n d l i a b i l i t i e s u s i n g t h e a c c r u a l b a s i s o f a c c o u n t i n g s i m i l a r t o t h e a c c o u n t i n g
p r a c t i c e s u s e d b y m o s t p r i v a t e - s e c t o r c o m p a n i e s . T h i s b a s i s o f a c c o u n t i n g t a k e s i n t o a c c o u n t a l l o f t h e c u r r e n t y e a r
r e v e n u e s a n d e x p e n s e s r e g a r d l e s s o f w h e n c a s h i s r e c e i v e d o r p a i d .
T h e s e t w o s t a t e m e n t s r e p o r t t h e D i s t r i c t s n e t p o s i t i o n a n d c h a n g e s i n n e t p o s i t i o n . T h i s c h a n g e i n n e t p o s i t i o n i s
i m p o r t a n t b e c a u s e i t t e l l s t h e r e a d e r t h a t , f o r t h e D i s t r i c t a s a w h o l e , w h e t h e r t h e f i n a n c i a l p o s i t i o n o f t h e D i s t r i c t h a s
i m p r o v e d o r d i m i n i s h e d . T h e c a u s e s o f t h i s c h a n g e m a y b e t h e r e s u l t o f m a n y f a c t o r s , s o m e f i n a n c i a l , a n d s o m e n o t .
N o n - f i n a n c i a l f a c t o r s i n c l u d e t h e D i s t r i c t s p r o p e r t y t a x b a s e , c u r r e n t p r o p e r t y t a x l a w s i n C a l i f o r n i a r e s t r i c t i n g r e v e n u e
g r o w t h , f a c i l i t y c o n d i t i o n s a n d o t h e r f a c t o r s .
I n t h e S t a t e m e n t o f N e t P o s i t i o n a n d t h e S t a t e m e n t o f A c t i v i t i e s , t h e D i s t r i c t r e p o r t s g o v e r n m e n t a l a c t i v i t i e s w h i c h
r e f l e c t t h e D i s t r i c t s p r o g r a m s a n d s e r v i c e s . T h e D i s t r i c t d o e s n o t h a v e a n y b u s i n e s s t y p e a c t i v i t i e s .
F I N A N C I A L H I G H L I G H T S
A s t h e o v e r a l l e c o n o m y c o n t i n u e d t o g r o w t h r o u g h o u t t h e S i l i c o n V a l l e y , t h e D i s t r i c t w i t n e s s e d f u r t h e r s t r o n g g r o w t h
i n t h e a s s e s s e d v a l u a t i o n o f b o t h s e c u r e d a n d u n s e c u r e d p r o p e r t y w i t h i n i t s b o u n d a r i e s . T h e 2 0 1 9 - 2 0 a s s e s s e d
v a l u a t i o n r e p o r t s r e l e a s e d i n A u g u s t 2 0 1 9 s h o w e d D i s t r i c t - w i d e a s s e s s e d v a l u e s i n c r e a s i n g b y 9 . 3 % ( 6 . 3 % i n S a n t a
C l a r a a n d 1 6 . 7 % i n S a n M a t e o ) . T h e D i s t r i c t r e c e i v e d 6 7 % o f i t s t a x r e v e n u e f r o m S a n t a C l a r a C o u n t y a n d 3 3 % f r o m
S a n M a t e o C o u n t y .
O t h e r f i n a n c i a l h i g h l i g h t s i n c l u d e d :
" T a x r e v e n u e r e l a t e d t o t h e G O b o n d s a m o u n t e d t o $ 5 . 2 m i l l i o n .
" P u r c h a s e d $ 2 3 . 2 m i l l i o n i n l a n d a n d a s s o c i a t e d s t r u c t u r e s f u n d e d t h r o u g h c a s h p a y m e n t s a n d g r a n t s .
" T h e D i s t r i c t r e c o r d e d d e f e r r e d o u t f l o w s o f r e s o u r c e s o f $ 1 3 , 2 7 2 , 7 5 9 a n d d e f e r r e d i n f l o w s o f r e s o u r c e s o f
$ 1 , 7 8 6 , 4 4 7 a s r e q u i r e d b y G A S B 6 8 a n d G A S B 7 5 f o r p e n s i o n a n d o t h e r p o s t e m p l o y m e n t b e n e f i t a c c o u n t i n g
a n d r e p o r t i n g . D e f e r r e d o u t f l o w s o f r e s o u r c e s a r e t e c h n i c a l l y n o t a s s e t s b u t i n c r e a s e t h e S t a t e m e n t o f N e t
P o s i t i o n s i m i l a r t o a n a s s e t a n d d e f e r r e d i n f l o w s o f r e s o u r c e s a r e t e c h n i c a l l y n o t l i a b i l i t i e s b u t d e c r e a s e t h e
S t a t e m e n t o f N e t P o s i t i o n s i m i l a r t o l i a b i l i t i e s . S e e N o t e 1 i n t h e n o t e s t o f i n a n c i a l s t a t e m e n t s f o r a d e f i n i t i o n .
" T h e D i s t r i c t s S e c t i o n 1 1 5 i r r e v o c a b l e t r u s t f o r p e n s i o n l i a b i l i t i e s h e l d w i t h t h e P u b l i c A g e n c y R e t i r e m e n t
S e r v i c e s ( P A R S ) h a s a v a l u e o f $ 4 , 0 6 3 , 2 0 2 a t y e a r e n d .
" F u l l y f u n d e d t h e D i s t r i c t s o t h e r p o s t e m p l o y m e n t b e n e f i t s p l a n a c c o r d i n g t o t h e a c t u a r i a l l y d e t e r m i n e d
c o n t r i b u t i o n f o r c u r r e n t y e a r , a s n o t e d i n t h e s c h e d u l e o f c o n t r i b u t i o n f o r p o s t e m p l o y m e n t b e n e f i t s .
T h e a s s e t s o f t h e D i s t r i c t e x c e e d e d l i a b i l i t i e s a t t h e c l o s e o f t h e 2 0 2 0 f i s c a l y e a r b y $ 3 9 2 m i l l i o n . O f t h i s t o t a l n e t
p o s i t i o n , $ 3 7 1 m i l l i o n , o r 9 5 % , w a s t h e D i s t r i c t s n e t i n v e s t m e n t i n c a p i t a l a s s e t s ( c a p i t a l a s s e t s n e t o f r e l a t e d d e b t ) .
REPORTING THE DISTRICT’S MOST SIGNIFICANT FUNDS
Fund Financial Statements
Fund financial reports provide detailed information about the District’s major funds. The District uses one operating
fund, the General Fund, to account for a multitude of financial transactions, two capital project funds to account for
capital projects, and one debt service fund to account for debt service payments.
Governmental Funds
The General Fund is a governmental fund type and is reported using an accounting method called modified accrual
accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental
fund statements provide a detailed short-term view of the District’s general government operations and the basic
services it provides. Governmental fund information helps determine whether there are more or fewer financial
resources that can be spent in the future to finance educational programs. The relationship (or differences) between
governmental activities (reported in the Statement of Net position and the Statement of Activities) and governmental
funds is reconciled in the financial statements.
THE DISTRICT AS A WHOLE
Recall that the Statement of Net Position provides the perspective of the District as a whole. Table 1 provides a
summary of the District’s net position as compared to last period:
Percentage
2020 2019 Change Change
Assets
Current Assets 105,437,703$ 108,643,304$ (3,205,601)$ -2.95%
Other Noncurrent Assets 488,551 562,532 (73,981) -13.15%
Capital Assets 526,101,317 504,559,409 21,541,908 4.27%
Total Assets 632,027,571$ 613,765,245$ 18,262,326$ 2.98%
Total Deferred Outflows of Resources 13,272,759$ 14,826,493$ (1,553,734)$ -10.48%
Liabilities
Current Liabilities 16,110,600$ 16,695,948$ (585,348)$ -3.51%
Noncurrent Liabilities 235,321,577 243,049,767 (7,728,190) -3.18%
Total Liabilities 251,432,177$ 259,745,715$ (8,313,538)$ -3.20%
Total Deferred Inflows of Resources 1,786,447$ 1,471,865$ 314,582$ 21.37%
Net Position
Net Investment in Capital Assets 371,186,303$ 351,151,768$ 20,034,535$ 5.71%
Restricted 6,277,961 8,207,641 (1,929,680) -23.51%
Unrestricted 14,617,442 8,014,749 6,602,693 82.38%
Total Net Position 392,081,706$ 367,374,158$ 24,707,548$ 6.73%
Table 1 - Summary of Statement of Net Position
Total net position increased by $24.7 million, as revenues exceeded expenses. Current assets decreased mainly due to
the use of cash and investments to pay for capital outlay and retirement of long-term debt. Capital assets increased by
$21.5 million mostly from the purchase of land and related infrastructure. Principal payments on outstanding bonds and
promissory notes were the main reason for the $7.7 million decrease in noncurrent liabilities.
Table 2 shows the changes in net position for 2020 as compared to period 1899.
Percentage
2020 2019 Change Change
Revenues
Program revenues 5,948,662$ 3,442,075$ 2,506,587$ 72.82%
General revenues:
Property taxes 57,250,664 54,395,054 2,855,610 5.25%
Investment earnings 2,307,193 3,627,639 (1,320,446) -36.40%
Miscellaneous 1,556,894 1,874,272 (317,378) -16.93%
Total Revenues 67,063,413 63,339,040 3,724,373 5.88%
Program Expenses
Land preservation 32,482,326 34,304,215 (1,821,889) -5.31%
Interest 9,873,539 10,448,784 (575,245) -5.51%
Total Expenses 42,355,865 44,752,999 (2,397,134) -5.36%
Change in Net Position 24,707,548 18,586,041 6,121,507 32.94%
Beginning Net Position 367,374,158 348,788,117 18,586,041 5.33%
Ending Net Position 392,081,706$ 367,374,158$ 24,707,548$ 6.73%
Table 2 - Summary of Changes in Net Position
There was an increase in change in net position by $24.7 million, as revenues exceeded expenses.
THE DISTRICT’S FUND BALANCE
Table 3 provides an analysis of the District’s fund balances and the total change in fund balances from the prior year.
Measure AA Debt
General Capital GF Capital Service Percentage
Fund Projects Fund Projects Fund Fund Total 2019 Change
Nonspendable for prepaid expenditure 205,929$ -$ -$ -$ 205,929$ 185,984$ 11%
Restricted for debt service - - - 4,813,811 4,813,811 6,775,924 -29%
Restricted for Measure AA Projects - 32,301,379 - - 32,301,379 37,944,253 -15%
Restricted for Hawthorn maintenance 1,464,150 - - - 1,464,150 1,431,717 2%
Restricted for capital projects - - 6,843,580 - 6,843,580 8,254,539 -17%
Restricted for pension 4,063,202 - - - 4,063,202 2,531,030 61%
Committed for infrastructure 18,618,465 - - - 18,618,465 17,688,465 5%
Committed for equipment replacement 3,000,000 - - - 3,000,000 3,000,000 0%
Committed for capital maintenance 5,000,000 - - - 5,000,000 5,000,000 0%
Committed for future acquisitions
and capital projects 6,000,000 - - - 6,000,000 3,000,000 100%
Committed for promissory note 900,000 - - - 900,000 600,000 50%
Assigned for ongoing projects 710,000 - - - 710,000 1,400,000 -49%
Unassigned 16,978,717 - - - 16,978,717 16,515,392 3%
Total Fund Balance 56,940,463$ 32,301,379$ 6,843,580$ 4,813,811$ 100,899,233$ 104,327,304$ -3%
Table 3 - Summary of Fund Balance (All Governmental Funds)
2020
In accordance with the District’s thirty-year strategic plan, the Board of Directors committed an additional $3 million in
2020 for future acquisitions and capital projects. This was an increase to its existing reserves for infrastructure,
equipment replacement, and capital maintenance. See Note 1 in the notes to the basic financial statements of the audit
report for a description of each commitment.
The fund balances restricted for debt service, measure AA projects, and capital projects decreased by 29%, 15%, and
17%, respectively due to District expended more out of these funds during the year ended June 30, 2020. The fund
balance restricted for pension increased by 61% as District reserved more for future pension payments. The fund
balance committed for promissory notes increased by 50% as District reserved more for future promissory note
payments. The fund balance assigned for ongoing projects decreased by 49% since District expended more out of this
fund for ongoing projects during the year ended June 30, 2020.
GENERAL FUND BUDGETING HIGHLIGHTS
The District’s budget is prepared according to California law and in the modified accrual basis of accounting.
During the course of 2020, the District revised its General Fund budget, which resulted in an decrease in budgeted
expenditures of $1.5 million from the original to final budget. The revenue was revised from $56.0 million to $55.9
million due to decrease in grant revenue. A summary of the original and final budget is presented below:
Percent
Original Budget Final Budget Change Change
Revenues
Property taxes 51,863,000$ 51,883,000$ 20,000$ 0.04%
Grant revenues 488,300 388,300 (100,000) -20.48%
Property management 1,078,000 1,078,000 - 0.00%
Investment earnings 2,099,878 2,099,878 - 0.00%
Other revenues 479,157 479,157 - 0.00%
Total Revenues 56,008,335 55,928,335 (80,000) -0.14%
Expenditures
Salaries and employee benefits 25,349,838 25,460,977 111,139 0.44%
Services and supplies 11,746,210 10,160,745 (1,585,465) -15.60%
Capital outlay 48,000 - (48,000) -100.00%
Total Expenses 37,144,048 35,621,722 (1,522,326) -4.27%
Net Change in Fund Balance 18,864,287$ 20,306,613$ 1,442,326$ 7.65%
Table 4 - Summary of Original to Final Budgets
CAPITAL ASSETS
Table 5 shows 2020 capital asset balances as compared to 1899.
Percentage
2020 2019 Change Change
Land 450,098,759$ 437,763,645$ 12,335,114$ 2.82%
Construction-in-Progress 17,313,507 16,193,374 1,120,133 6.92%
Structure and Improvements 19,118,187 18,059,730 1,058,457 5.86%
Infrastructure 37,093,321 29,542,214 7,551,107 25.56%
Equipment 1,092,107 1,113,614 (21,507) -1.93%
Vehicles 1,385,436 1,886,832 (501,396) -26.57%
Total Capital Assets - Net 526,101,317$ 504,559,409$ 21,541,908$ 4.27%
Table 5 - Summary of Capital Assets Net of Depreciation
Additional detail and information on capital asset activity is described in the notes to the financial statements, note 5.
LONG TERM LIABILITIES
Table 6 summarizes the changes in long-term liabilities from 2020 to 1899.
Percentage
2020 2019 Change Change
Promissory Notes 37,938,606$ 38,899,934$ (961,328)$ -2.47%
Bonds 190,555,234 199,505,576 (8,950,342) -4.49%
Net Pension Liability 11,828,627 10,412,478 1,416,149 13.60%
Net OPEB Liability 1,500,844 1,862,277 (361,433) -19.41%
Compensated Absences 2,777,151 2,368,387 408,764 17.26%
Total Long-term Liabilities 244,600,462$ 253,048,652$ (8,448,190)$ -3.34%
Table 6 - Summary of Long-term Liabilities
Additional detail and information on long-term liabilities activity is described in the notes to the financial statements,
note 6.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The Board of Directors adopted the District’s budget for fiscal year 2020-21 on June 24, 2020. This budget assumes
$65.2 million in revenues and a growth in general fund property tax income of 3.8% over the prior year’s adopted
budget. This budget funds $27.7 million of capital spending, of which $10.2 million is expected to qualify for
reimbursement from Measure AA GO bond funds. General Fund operating expenditures are budgeted at $35.0 million,
a 7.0% decrease over the prior year’s adopted budget. Debt service is budgeted at $16.6 million, with $6.0 million
related to the Measure AA general obligation bonds. If all revenues, expenditures (including debt service) occur as
budgeted, the District’s overall cash balances would increase by approximately $0.8 million.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, parents, participants, investors and creditors with a
general overview of the District’s finances and to demonstrate the District’s accountability for the money it receives.
Questions concerning any of the information provided in this report or requests for additional financial information
should be addressed to the Administrative Office, Midpeninsula Regional Open Space District, 330 Distel Circle, Los
Altos, California 94022.
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Basic Financial Statements
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GOVERNMENT-WIDE STATEMENTS
Statement of Net Position and Statement of Activities
The Statement of Net Position and the Statement of Activities summarize the entire District’s financial activities
and financial position.They are prepared on the same basis as is used by most businesses,which means they
include all the District’s assets and all its liabilities,as well as all its revenues and expenses.This is known as the
full accrual basis.The effect of all of the District’s transactions is taken into account,regardless of whether or
when cash changes hands, but all material internal transactions between District funds have been eliminated.
The Statement of Net Position reports the difference between the District’s total assets and the District’s total
liabilities,including all the District’s capital assets and all its long-term debt.The Statement of Net Position
presents information in a way that focuses the reader on the composition of the District’s net position,by
subtracting total liabilities from total assets.
The Statement of Net Position summarizes the financial position of all of the District’s Governmental Activities
in a single column.The District’s Governmental Activities include the activities of its General Fund,along with
all its Special Revenue Funds, Capital Projects Funds, and Debt Service Funds.
The Statement of Activities reports increases and decreases in the District’s net position.It is also prepared on
the full accrual basis,which means it includes all the District’s revenues and all its expenses,regardless of when
cash changes hands.This differs from the “modified accrual”basis used in the Fund financial statements,which
reflect only current assets, current liabilities, available revenues and measurable expenditures.
The Statement of Activities presents the District’s expenses first,listed by program.Program revenues –that is,
revenues which are generated directly by these programs -are then deducted from program expenses to arrive at
the net expense of each governmental program.The District’s general revenues are then listed in the
Governmental Activities and the Change in Net Position is computed and reconciled with the Statement of Net
Position.
Both these Statements include the financial activities of the District and the Midpeninsula Regional Open Space
District Financing Authority.This entity is legally separate but is a component unit of the District because it is
controlled by the District, which is financially accountable for the Authority’s activities.
Assets
Current assets:
Cash and investments 104,639,305$
Accounts receivable:
Interest 214,097
Other 362,854
Taxes receivable 221
Other current assets 221,226
Total current assets 105,437,703
Noncurrent assets:
Notes receivable 74,509
Unamortized issuance costs 414,042
Non-depreciable capital assets 467,412,266
Capital assets, net of depreciation 58,689,051
Total noncurrent assets 526,589,868
Total Assets 632,027,571$
Deferred Outflows of Resources
OPEB adjustments 638,539$
Pension adjustments 4,083,643
Deferred loss on early retirement of long-term debt 8,550,577
Total Deferred Outflows of Resources 13,272,759$
Liabilities
Current liabilities:
Accounts payable 2,616,408$
Deposits payable 177,135
Payroll and other liabilities 1,744,926
Accrued interest 2,293,246
Current portion of long-term liabilities 9,278,885
Total current liabilities 16,110,600
Noncurrent liabilities:
Long-term liabilities - net of current portion 235,321,577
Total Liabilities 251,432,177$
Deferred Inflows of Resources
OPEB adjustments 215,779$
Pension adjustments 1,570,668
Total Deferred Inflows of Resources 1,786,447$
Net Position
Net investment in capital assets 371,186,303$
Restricted for:
Debt service 4,813,811
Hawthorne maintenance 1,464,150
Total restricted 6,277,961
Unrestricted 14,617,442
Total Net Position 392,081,706$
Midpeninsula Regional Open Space District
Statement of Net Position
June 30, 2020
The notes to the financial statements are an integral part of this statement.
Net (Expense)
Capital Revenue and
Charges for Grants and Changes in
Expenses Services Contributions Net Position
Governmental activities:
Land preservation 32,482,326$ 2,655,179$ 3,293,483$ (26,533,664)$
Interest and fiscal charges 9,873,539 - - (9,873,539)
Total governmental activities 42,355,865$ 2,655,179$ 3,293,483$ (36,407,203)
General revenues and special item:
Property taxes 57,250,664
Investment earnings 2,307,193
Other revenues 1,565,738
Special item - loss on disposal of capital assets (8,844)
Total general revenues and special item 61,114,751
Change in net position 24,707,548
Net position beginning 367,374,158
Net position ending 392,081,706$
Midpeninsula Regional Open Space District
Statement of Activities
For the Fiscal Year Ended June 30, 2020
Program Revenues
The notes to the financial statements are an integral part of this statement.
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Fund Title Fund Description
General Fund The fund is the general operating fund of the District. It is used to
account for all financial resources. The major revenue sources for
this fund are property taxes, grant revenues and interest income.
Expenditures are made for land preservation and other operating
expenditures.
Measure AA Capital Projects Fund This fund is used to account for resources from bond proceeds and
expenditures for capital projects related to the Measure AA GO
Bond.
GF Capital Projects Fund This fund is used to account for expenditures for capital projects not
related to any other capital projects funds.
Debt Service Fund This fund is used to account for accumulation of resources for, and
the payment of long-term debt principal, interest and related costs.
Resources are provided by General Fund transfers and interest
income on unspent funds.
FUND FINANCIAL STATEMENTS
MAJOR GOVERNMENTAL FUNDS
The funds described below were determined to be Major Funds by the District in fiscal year 2020.
Measure AA GF Capital Debt Total
General Capital Projects Service Governmental
Fund Projects Fund Fund Fund Funds
Assets
Cash and investments 59,060,612$ 33,044,310$ 7,720,572$ 4,813,811$ 104,639,305$
Receivables:
Interest 214,097 - - - 214,097
Other 362,854 - - - 362,854
Taxes receivable 221 - - - 221
Other current assets 221,226 - - - 221,226
Due from other funds 9,308,458 9,702,604 - - 19,011,062
Notes receivable 74,509 - - - 74,509
Total Assets 69,241,977$ 42,746,914$ 7,720,572$ 4,813,811$ 124,523,274$
Liabilities
Liabilities:
Accounts payable 913,498$ 1,137,077$ 565,833$ -$ 2,616,408$
Deposits payable 177,135 - - - 177,135
Due to other funds 9,391,445 9,308,458 311,159 - 19,011,062
Payroll and other liabilities 1,744,926 - - - 1,744,926
Total Liabilities 12,227,004 10,445,535 876,992 - 23,549,531
Deferred Inflows of Resources
Unavailable revenues 74,510 - - - 74,510
Fund Balance
Nonspendable:
Prepaid expenditures 205,929 - - - 205,929
Restricted for:
Debt service - - - 4,813,811 4,813,811
Measure AA capital projects - 32,301,379 - - 32,301,379
Hawthorn maintenance 1,464,150 - - - 1,464,150
Capital projects - - 6,843,580 - 6,843,580
Pension 4,063,202 - - - 4,063,202
Committed for:
Infrastructure 18,618,465 - - - 18,618,465
Equipment replacement 3,000,000 - - - 3,000,000
Capital maintenance 5,000,000 - - - 5,000,000
Future acquisitions and capital
projects 6,000,000 - - - 6,000,000
Promissory note 900,000 - - - 900,000
Assigned for:
Ongoing Projects 710,000 - - - 710,000
Unassigned 16,978,717 - - - 16,978,717
Total Fund Balance 56,940,463 32,301,379 6,843,580 4,813,811 100,899,233
Total Liabilities, Deferred Inflows
of Resources, and Fund Balance 69,241,977$ 42,746,914$ 7,720,572$ 4,813,811$ 124,523,274$
Balance Sheet
Midpeninsula Regional Open Space District
June 30, 2020
Governmental Funds
The notes to the financial statements are an integral part of this statement.
Total fund balance - governmental funds 100,899,233$
Amounts reported in the Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore are not
reported as assets in governmental funds.
Capital assets at cost 549,421,628$
Accumulated depreciation (23,320,311) 526,101,317
Principal on notes receivables are recorded as unearned revenue in the funds, which upon
collection is a current financial resource. In the government-wide financial statements,
repayment of the principal amount does not generate revenue in the statement of activities;
therefore, unearned revenue is not recorded.74,510
The difference between OPEB plan assumptions and estimates versus actuals are not included in the
plan's actuarial study until the next fiscal year and are reported as deferred outflows or
inflows of resources in the statement of net position.422,760
The difference between pension plan assumptions and estimates versus actuals are not included in the
plan's actuarial study until the next fiscal year and are reported as deferred outflows or
inflows of resources in the statement of net position.2,512,975
Interest payable on long-term debt does not require the use of current financial resources and,
therefore, is not reported in the governmental funds.(2,293,246)
Discounts and premiums related to bond issues are recorded as other financing
sources and uses in the fund financial statements but are recorded as assets or liabilities
and amortized over the life of the bond in the statement of net position:
Premium 24,263,367$
Issuance cost (414,042) (23,849,325)
Deferred loss on early retirement of long-term debt is recorded in the Statement of Net Position as a deferred
outflow of resources and amortized on a straight line basis over the original life of the defeased bond.8,550,577
Long-term liabilities are not due and payable in the current year and therefore are not reported
as liabilities in the funds. Long-term liabilities at year-end consists of:
Bonds 171,260,000$
Net pension liability 11,828,627
Promissory notes 32,970,473
Compensated absences 2,777,151
Net OPEB liability 1,500,844 (220,337,095)
Total net position - governmental activities 392,081,706$
Midpeninsula Regional Open Space District
Balance Sheet to the Statement of Net Position
June 30, 2020
Reconciliation of the Governmental Funds
The notes to the financial statements are an integral part of this statement.
Measure AA GF Capital Debt Total
General Capital Projects Service Governmental
Fund Projects Fund Fund Fund Funds
Revenues:
Property taxes 52,024,342$ -$ -$ 5,226,322$ 57,250,664$
Grant income 31,396 1,498,087 1,764,000 - 3,293,483
Property management 2,655,179 - - - 2,655,179
Investment earnings 1,014,726 1,007,460 216,363 88,317 2,326,866
Other revenues 261,702 - - - 261,702
Total revenues 55,987,345 2,505,547 1,980,363 5,314,639 65,787,894
Expenditures:
Current:
Land preservation:
Salaries and employee benefits 23,240,060 375,893 - - 23,615,953
Services and supplies 7,828,976 - - - 7,828,976
Capital outlay - 7,641,519 12,459,954 - 20,101,473
Debt service:
Principal - - - 9,115,000 9,115,000
Interest - - - 8,554,563 8,554,563
Total expenditures 31,069,036 8,017,412 12,459,954 17,669,563 69,215,965
Excess (deficiency) of revenues
over (under) expenditures 24,918,309 (5,511,865) (10,479,591) (12,354,924) (3,428,071)
Other financing sources (uses):
Transfers in 889,920 - 9,827,543 10,392,811 21,110,274
Transfers out (20,220,354) - (889,920) - (21,110,274)
Total other financing sources (uses) (19,330,434) - 8,937,623 10,392,811 -
Net changes in fund balance 5,587,875 (5,511,865) (1,541,968) (1,962,113) (3,428,071)
Fund balance beginning 51,352,588 37,944,253 8,254,539 6,775,924 104,327,304
Prior period adjustment - (131,009) 131,009 - -
Fund balance beginning - as adjusted 51,352,588 37,813,244 8,385,548 6,775,924 104,327,304
Fund balance ending 56,940,463$ 32,301,379$ 6,843,580$ 4,813,811$ 100,899,233$
Midpeninsula Regional Open Space District
Statement of Revenues, Expenditures and Changes in Fund Balance
Governmental Funds
For the Fiscal Year Ended June 30, 2020
The notes to the financial statements are an integral part of this statement.
Total net change in fund balance - governmental funds (3,428,071)$
Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the
cost of those assets is allocated over their estimated useful lives as depreciation expense.
Expenditures capitalized as capital assets 24,674,628$
Depreciation expense (3,123,880)
Loss on disposal of capital asset (8,844) 21,541,904
Repayment of notes receivable is reported as revenue in the governmental funds because financial resources
were received and available during the fiscal year. In the statement of net position, the payment reduces
the principal balance of notes receivable and does not generate revenue in the statement of activities.(19,673)
Accreted interest on capital appreciation bonds is not recorded in the governmental funds but is required
to be recorded under the accrual basis of accounting in the government wide financial statements.(507,362)
The governmental funds report debt proceeds as an other financing source, while repayment of debt principal is
reported as an expenditure. Interest is recognized as an expenditure in the governmental funds when it is due.
The net effect of these differences in the treatment of long-term debt and related items is as follows:
Repayment of bond principal 7,830,000
Repayment of promissory notes principal 1,285,000 9,115,000
Deferred loss on early retirement of long-term debt is amortized over the life of the debt in the statement of
activities. Amortization expense is not reported in the governmental funds.(845,123)
Prepaid issuance costs, discounts and premiums related to bond issues are recorded as other financing
sources and uses in the fund financial statements but are recorded as assets or liabilities
and amortized over the life of the bond in the statement of net position:
Amortization of issuance costs and premiums - net 1,249,724
In the Statement of Activities, compensated absences are measured by the amount earned during the year. In
governmental funds, however, expenditures for those items are measured by the amount of financial
resources used (essentially the amounts paid). This year, vacation earned exceeded the amounts used.(408,764)
In governmental funds, actual contributions to pension and OPEB plans are reported as expenditures in the
year incurred. However, in the government-wide statement of activities, only the current year pension
and OPEB expense as noted in the plans' valuation reports is reported as an expense, as adjusted for
deferred inflows and outflows of resources.(2,077,906)
Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds
because interest is recognized as an expenditure in the funds when it is due and thus requires the use of
current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest
accrues, regardless of when it is due.87,819
Change in net position of governmental activities 24,707,548$
Midpeninsula Regional Open Space District
Statement of Revenues, Expenditures and Changes in Fund Balance
For the Fiscal Year Ended June 30, 2020
Reconciliation of the Governmental Funds
to the Statement of Activities
The notes to the financial statements are an integral part of this statement.
Page Intentionally Left Blank
Notes to Financial Statements
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
A. General
The Midpeninsula Regional Open Space District (the District) was formed in 1972 to acquire and
preserve public open space land in northern and western portions of Santa Clara County. In June
1976, the southern and eastern portions of San Mateo County were annexed to the District. The
District annexed a small portion of the northern tip of Santa Cruz County in 1992. In September 2004,
the District completed the Coastside Protection Program, which extended the District boundaries to
the Pacific Ocean in San Mateo County, from the southern borders of Pacifica to the San Mateo/Santa
Cruz County line.
B. Accounting Principles
The accounting policies of the District conform to generally accepted accounting principles as
prescribed by the Governmental Accounting Standards Board (GASB) and the American Institute of
Certified Public Accountants (AICPA).
C. Reporting Entity
As required by generally accepted accounting principles, these basic financial statements present the
Midpeninsula Regional Open Space District and its component unit. The component unit discussed in
the following paragraph is included in the District's reporting entity because of the significance of
their operational or financial relationships with the District.
Blended Component Unit. The District and the County of Santa Clara entered into a joint exercise
of powers agreement dated May 1, 1996, creating the Midpeninsula Regional Open Space District
Financing Authority (the Authority), pursuant to the California Government Code. The District is
financially accountable for the Authority, as it appoints a voting majority of the governing board; is
able to impose its will in the Authority; and the Authority provides specific financial benefits to, and
imposes specific financial burdens on, the District. The Authority was formed for the sole purpose of
providing financing assistance to the District to fund the acquisition of land to preserve and use as
open space. As such, the Authority is an integral part of the District, and accordingly, all of the
Authority's activity is blended within the accompanying debt service fund.
D. Basis of Presentation
Government-wide Financial Statements:
The government-wide financial statements (i.e., the Statement of Net Position and the Statement of
Activities) report information on all of the activities of the District. The Statement of Net Position
reports all assets, deferred outflows of resources, liabilities, deferred inflows of resources, and net
position.
The government-wide statements are prepared using the economic resources measurement focus. This
approach differs from the manner in which governmental fund financial statements are prepared.
Governmental fund financial statements, therefore, include the reconciliation with brief explanations
to better identify the relationship between the government wide statements and the statements for the
governmental funds.
The government-wide statement of activities presents a comparison between direct expenses and
program revenues for each function or program of the District’s governmental activities. Direct
expenses are those that are specifically associated with a service, program, or department and are
therefore clearly identifiable to a particular function. The District does not allocate indirect expenses
to functions in the statement of activities. Program revenues include charges paid by the recipients of
goods or services offered by a program, as well as grants and contributions that are restricted to
meeting the operational or capital requirements of a particular program. Revenues that are not
classified as program revenues are presented as general revenues of the District, with certain
exceptions. The comparison of direct expenses with program revenues identifies the extent to which
each governmental function is self-financing or draws from the general revenues of the District.
Fund Financial Statements:
Fund financial statements report detailed information about the District. The accounting and financial
treatment applied to a fund is determined by its measurement focus. All governmental funds are
accounted for using a flow of current financial resources measurement focus. With this measurement
focus, only current assets, deferred outflows, current liabilities and deferred inflows are generally
included on the balance sheet. The Statement of Revenues, Expenditures, and Changes in Fund
Balance for these funds present increases (i.e., revenues and other financing sources) and decreases
(i.e., expenditures and other financing uses) in net current assets.
E. Basis of Accounting
Basis of accounting refers to when revenues and expenditures are recognized in the accounts and
reported in the financial statements. Government-wide financial statements are prepared using the
accrual basis of accounting. Governmental funds use the modified accrual basis of accounting.
Revenues - Exchange and Non-exchange Transactions:
Revenue resulting from exchange transactions, in which each party gives and receives essentially
equal value, is recorded under the accrual basis when the exchange takes place. On a modified accrual
basis, revenue is recorded in the fiscal period in which the resources are measurable and become
available. “Available” means the resources will be collected within the current fiscal period or are
expected to be collected soon enough thereafter to be used to pay liabilities of the current fiscal
period. For the District, “available” means collectible within the current period or within 90 days after
period-end.
Non-exchange transactions, in which the District receives value without directly giving equal value in
return, include property taxes, grants, and entitlements. Under the accrual basis, revenue from
property taxes is recognized in the fiscal period for which the taxes are levied. Revenue from grants
and entitlements is recognized in the fiscal period in which all eligibility requirements have been
satisfied. Eligibility requirements include timing requirements, which specify the period when the
resources are to be used or the fiscal period when use is first permitted; matching requirements, in
which the District must provide local resources to be used for a specific purpose; and expenditure
requirements, in which the resources are provided to the District on a reimbursement basis. Under the
modified accrual basis, revenue from non-exchange transactions must also be available before it can
be recognized.
Deferred Outflows/Deferred Inflows:
A deferred outflow of resources is defined as a consumption of net position that applies to a future
period(s) and so will not be recognized as an outflow of resources (expenses/expenditure) until then.
A deferred inflow of resources is defined as an acquisition of net position that applies to a future
period(s) and so will not be recognized as an inflow of resources (revenues) until that time.
When applicable, unamortized portions of the gain and loss on refunding debt are reported as deferred
inflows and deferred outflows of resources, respectively. Deferred outflows and inflows of resources
are reported for the changes related to benefit plans. In addition, when an asset is recorded in
governmental fund financial statements but the revenue is not available, a deferred inflow of
resources is reported until such time as the revenue becomes available.
Unearned Revenue:
Unearned revenue arises when assets (such as cash) are received before revenue recognition criteria
have been satisfied. Grants and entitlements received before eligibility requirements (such as
qualified expenditures) are met are recorded as liabilities from unearned revenue.
Unavailable Revenue:
In the governmental fund financial statements, receivables associated with non-exchange transactions
that will not be collected within the availability period have been recorded as deferred inflows of
resources as unavailable revenue.
Expenses/Expenditures:
On the accrual basis of accounting, expenses are recognized at the time a liability is incurred. On the
modified accrual basis of accounting, expenditures are generally recognized in the accounting period
in which the related fund liability is incurred, as under the accrual basis of accounting. However,
under the modified accrual basis of accounting, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Allocations of cost, such as depreciation and amortization, are not recognized in the governmental
funds. When both restricted and unrestricted resources are available for use, it is the District’s policy
to use restricted resources first, then unrestricted resources as they are needed.
F. Fund Accounting
The accounts of the District are organized into four funds with a separate set of self-balancing
accounts that comprise of the District’s assets, deferred outflows, liabilities, deferred inflows, fund
balance, revenues, and expenditures. The District resources are allocated to and accounted for in
individual funds based upon the purpose for which they are to be spent and the means by which
spending activities are controlled.
Major funds are defined as funds that have either assets, liabilities, revenues or expenditures/expenses
equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is
always a major fund. The District may also select other funds it believes should be presented as major
funds.
The District reported all of its funds as major governmental funds in the accompanying financial
statements:
General Fund. The General Fund is the general operating fund of the District. It is used to account
for all financial resources. The major revenue sources for this fund are property taxes, grant revenues
and interest income. Expenditures are made for land preservation and other operating expenditures.
Measure AA Capital Projects Fund. The Measure AA Capital Projects Fund is used to account for
resources from bond proceeds and expenditures for capital projects related to the Measure AA GO
Bond.
GF Capital Projects Fund. GF Capital Projects Fund is used to account for expenditures for capital
projects not related to any other capital projects funds.
Debt Service Fund. The Debt Service Fund is used to account for accumulation of resources for, and
the payment of long-term debt principal, interest and related costs. Resources are provided by tax
revenue, General Fund transfers, and interest income on unspent funds.
G. Budgets and Budgetary Accounting
The District's Board of Directors adopts an annual operating budget for the District by major fund, on
or before June 30, for the ensuing fiscal period. The Board of Directors may amend the budget by
resolution during the fiscal period. The legal level of control, the level at which expenditures may not
legally exceed the budget, is at the category level.
H. Assets, Liabilities, and Equity
1. Cash and Cash Equivalents
The District’s cash deposits are considered to be cash on hand and cash in banks. Cash and Cash
Equivalents are generally considered short-term, highly liquid investments with a maturity of
three months or less from the purchase date.
2. Investments
Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value
Measurement and Application. Accordingly, the change in fair value of investments is recognized
as an increase or decrease to investment assets and investment income. Fair value is defined as
the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction. In determining this amount, three valuation techniques are available:
• Market approach - This approach uses prices generated for identical or similar assets or
liabilities. The most common example is an investment in a public security traded in an
active exchange such as the NYSE.
• Cost approach - This technique determines the amount required to replace the current
asset. This approach may be ideal for valuing donations of capital assets or historical
treasures.
" I n c o m e a p p r o a c h - T h i s a p p r o a c h c o n v e r t s f u t u r e a m o u n t s ( s u c h a s c a s h f l o w s ) i n t o a
c u r r e n t d i s c o u n t e d a m o u n t .
E a c h o f t h e s e v a l u a t i o n t e c h n i q u e s r e q u i r e s i n p u t s t o c a l c u l a t e a f a i r v a l u e . O b s e r v a b l e i n p u t s
h a v e b e e n m a x i m i z e d i n f a i r v a l u e m e a s u r e s , a n d u n o b s e r v a b l e i n p u t s h a v e b e e n m i n i m i z e d .
3 . P r e p a i d E x p e n d i t u r e s
T h e D i s t r i c t h a s t h e o p t i o n o f r e p o r t i n g e x p e n d i t u r e s i n g o v e r n m e n t a l f u n d s f o r p r e p a i d i t e m s
e i t h e r w h e n p u r c h a s e d o r d u r i n g t h e b e n e f i t i n g p e r i o d . T h e D i s t r i c t h a s c h o s e n t o r e p o r t t h e
e x p e n d i t u r e d u r i n g t h e b e n e f i t i n g p e r i o d .
4 . C a p i t a l A s s e t s
C a p i t a l a s s e t s , w h i c h i n c l u d e l a n d , b u i l d i n g s a n d i m p r o v e m e n t s , f u r n i t u r e , e q u i p m e n t , a n d
c o n s t r u c t i o n i n p r o g r e s s , a r e r e p o r t e d i n t h e g o v e r n m e n t - w i d e f i n a n c i a l s t a t e m e n t s . C a p i t a l a s s e t s
a r e v a l u e d a t c o s t w h e n h i s t o r i c a l r e c o r d s a r e a v a i l a b l e a n d a t a n e s t i m a t e d h i s t o r i c a l c o s t w h e n
n o h i s t o r i c a l r e c o r d s e x i s t . D o n a t e d c a p i t a l a s s e t s a r e v a l u e d a t t h e i r a c q u i s i t i o n v a l u e a t t h e t i m e
o f a c q u i s i t i o n p l u s a n c i l l a r y c h a r g e s , i f a n y . D o n a t e d w o r k s o f a r t a n d s i m i l a r i t e m s a n d c a p i t a l
a s s e t s r e c e i v e d i n s e r v i c e c o n c e s s i o n a r r a n g e m e n t s a r e r e p o r t e d a t a c q u i s i t i o n v a l u e . T h e D i s t r i c t
u t i l i z e s a c a p i t a l i z a t i o n t h r e s h o l d o f $ 1 f o r l a n d , $ 2 5 , 0 0 0 f o r e q u i p m e n t , f i x t u r e s a n d v e h i c l e s ,
$ 5 0 , 0 0 0 f o r i n f r a s t r u c t u r e , i m p r o v e m e n t s , b u i l d i n g s a n d s t r u c t u r e s .
P r o j e c t s u n d e r c o n s t r u c t i o n a r e r e c o r d e d a t c o s t a s c o n s t r u c t i o n i n p r o g r e s s a n d t r a n s f e r r e d t o t h e
a p p r o p r i a t e a s s e t a c c o u n t w h e n s u b s t a n t i a l l y c o m p l e t e . C o s t s o f m a j o r i m p r o v e m e n t s a n d
r e h a b i l i t a t i o n o f b u i l d i n g s a r e c a p i t a l i z e d . R e p a i r a n d m a i n t e n a n c e c o s t s a r e c h a r g e d t o e x p e n s e
w h e n i n c u r r e d . E q u i p m e n t d i s p o s e d o f , o r n o l o n g e r r e q u i r e d f o r i t s e x i s t i n g u s e , i s r e m o v e d f r o m
t h e r e c o r d s a t a c t u a l o r e s t i m a t e d h i s t o r i c a l c o s t , n e t o f a c c u m u l a t e d d e p r e c i a t i o n .
A l l c a p i t a l a s s e t s , e x c e p t l a n d a n d c o n s t r u c t i o n i n p r o g r e s s , a r e d e p r e c i a t e d u s i n g t h e s t r a i g h t - l i n e
m e t h o d o v e r t h e f o l l o w i n g e s t i m a t e d u s e f u l l i v e s :
A s s e t s Y e a r s
S t r u c t u r e s / I m p r o v e m e n t s 5 0
P u b l i c A c c e s s I n f r a s t r u c t u r e 2 0 - 5 0
E q u i p m e n t / F i x t u r e s 5 - 2 0
V e h i c l e s 5
S o f t w a r e 5 - 1 0
5 . C o m p e n s a t e d A b s e n c e s
I n a c c o r d a n c e w i t h t h e D i s t r i c t ' s m e m o r a n d u m o f u n d e r s t a n d i n g w i t h v a r i o u s e m p l o y e e g r o u p s ,
e m p l o y e e s a c c r u e f i f t e e n d a y s o f v a c a t i o n d u r i n g t h e f i r s t n i n e y e a r s o f s e r v i c e , t w e n t y d a y s
b e t w e e n s e r v i c e y e a r s 1 0 a n d f o u r t e e n , t w e n t y - o n e d a y s b e t w e e n s e r v i c e y e a r s f i f t e e n a n d
n i n e t e e n , t w e n t y - t h r e e d a y s b e t w e e n s e r v i c e y e a r s t w e n t y a n d t w e n t y - f o u r , a n d t w e n t y - f i v e d a y s
a f t e r t w e n t y - f i v e y e a r s o f s e r v i c e . A n e m p l o y e e m a y a c c u m u l a t e v a c a t i o n t i m e e a r n e d t o a
m a x i m u m o f t w o t i m e s t h e a m o u n t o f h i s / h e r a n n u a l v a c a t i o n a c c r u a l .
Full-time employees accrue twelve days of sick leave: annually from the date of employment. An
employee may accumulate sick leave time earned on an unlimited basis. Upon resignation,
separation from service, or retirement from District employment, workers in good standing with
ten or more years of District employment shall receive a cash payment of the equivalent cash
value of accrued sick leave as follows:
Percentage of equivalent
cash value of accrued
Years of Employment sick leave
15-20 20%
16-20 25%
21 or more 30%
An employee hired before June 30, 2006, who retires from the District shall receive a cash
payment of the percentage of equivalent cash value of accrued sick leave based on years of
employment as described above, and apply the remainder of the equivalent cash value toward
his/her cost of retiree medical plan premiums and/or other qualified medical expenses. Upon
retirement, the amount qualified and designated for retiree medical costs shall be deposited in the
Retiree Health Savings (RHS) plan, set up by the District. The cost for maintaining the retiree's
RHS account and the annual fee for the reimbursement process of qualified medical expenses will
be paid for by the retiree.
An employee hired on or after July 1, 2006, who retires from the District may elect to receive
only a cash payment of the percentage of equivalent cash value of accrued sick leave based on
years of employment as described above. In all cases the equivalent cash value of accrued sick
leave will be based on current rate of pay as of the date of separation from District employment.
The District accrues for all salary-related items in the government-wide statements for which they
are liable to make a payment directly and incrementally associated with payments made for
compensated absences on termination. Compensated absences are liquidated by the fund that has
recorded the related liability. The long-term portion of governmental activities compensated
absences is liquidated primarily by the General Fund.
6. Long-Term/Noncurrent Obligations
In the government-wide financial statements, long-term debt and other long-term obligations are
reported as liabilities in the Statement of Net Position.
7. Debt Discount and Issuance Costs
Debt discounts, premiums, and prepaid issuance costs are capitalized as an offset to long-term
debt and amortized using the straight line method over the life of the related debt. Issuance costs
for the District's tax-exempt commercial paper short-term borrowings are expensed as incurred.
8.Fund Balance Classifications
In accordance with Government Accounting Standards Board 54, Fund Balance Reporting and
Governmental Fund Type Definitions, the District classifies governmental fund balances as
follows:
•Nonspendable fund balance includes amounts that cannot be spent either because it is not in
spendable form or because of legal or contractual constraints.
•Restricted fund balance includes amounts that are constrained for specific purposes which are
externally imposed by providers, such as creditors or amounts constrained due to
constitutional provisions or enabling legislation.
•Committed fund balances includes amounts that are constrained for specific purposes that are
internally imposed by the government through formal action of the highest level of decision
making authority and does not lapse at period-end. Committed fund balances were imposed
by the District’s Board of Directors resolution. Any changes to committed fund balance
requires the approval of two-thirds of the Board.
Committed fund balances were imposed by the District’s Board of Directors as follows:
o Infrastructure: $18.6 million; projected minimum requirement for expansion of field
and office facilities over the next five years.
o Equipment Replacement: $3 million; projected requirement for equipment and
vehicle replacement based on the amount of accumulated depreciation recorded on
capital assets in service.
o Capital maintenance: $5 million; amounts com44mitted to reserve for future capital
repairs and maintenance.
o Future acquisitions and capital projects: $6 million; amounts committed to reserve for
future capital acquisitions and projects.
o Promissory Note: $0.9 million; amounts committed to payment of promissory note.
•Assigned fund balance includes amounts that are intended to be used for specific purposes
that are neither considered restricted or committed. Fund balance may be assigned by the
General Manager, pursuant to Board Policy 3.07, if authorized by the Board of Directors to
make such designations. At June 30, 2020, the District had assigned $710,000 in fund balance
for ongoing projects.
•Unassigned fund balance includes positive amounts within the general fund which has not
been classified within the above-mentioned categories and negative fund balances in other
governmental funds.
The District uses restricted/committed amounts to be spent first when both restricted and
unrestricted fund balance is available unless there are legal documents/contracts that prohibit
doing this, such as a grant agreement requiring dollar for dollar spending. Additionally, the
District would first use committed, then assigned, and lastly unassigned amounts of unrestricted
fund balance when expenditures are made.
9. Net Position
Net position represents the difference between assets, deferred outflows of resources, liabilities
and deferred inflows of resources. Net investment in capital assets consists of capital assets, net
of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the
acquisition, construction or improvement of those assets. In addition, deferred outflows of
resources and deferred inflows of resources that are attributable to the acquisition, construction,
or improvement of those assets or related debt also are included in the net investment in capital
assets component of net position. Net position is reported as restricted when there are limitations
imposed on its use either through the enabling legislation adopted by the District or through
external restrictions imposed by creditors, grantors, laws or regulations of other governments.
The District applies restricted resources when an expense is incurred for purposes for which both
restricted and unrestricted net position is available.
Unrestricted net position reflect amounts that are not subject to any donor-imposed restrictions.
This class also includes restricted contributions whose donor-imposed restrictions were met
during the fiscal period. A deficit unrestricted net position may result when significant cash
balances restricted for capital projects exist. Once the projects are completed, the restriction on
these assets are released and converted to capital assets.
10. Pension
For purposes of measuring the net pension liability and deferred outflows/inflows of resources
related to pensions, and pension expense, information about the fiduciary net position of the
District’s California Public Employees’ Retirement System (CalPERS) plan and additions
to/deductions from the plan’s fiduciary net position have been determined on the same basis as
they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee
contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
GASB Statement No. 68, Accounting and Financial Reporting for Pensions - an amendment of
GASB Statement No. 27 (GASB Statement No. 68) requires that the reported results pertain to
liability and asset information within certain defined timeframes. For this report, the following
time frames were used:
Valuation Date (VD) ....................................... June 30, 2018
Measurement Date (MD) ................................ June 30, 2019
Measurement Period (MP) .............................. July 1, 2018 to June 30, 2019
11. Other Postemployment Benefits Oher Than Pensions (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred
inflows of resources, and OPEB expense, information about the fiduciary net position of the
District’s Retiree Benefits Plan (the OPEB Plan) and additions to/deductions are based on the
when they are due and payable in accordance with the benefit terms for the measurement period
included in the OPEB plan’s actuarial reports. Investments are reported at fair value, except for
money market investments and participating interest-earning investment contracts that have a
maturity at the time of purchase of one year or less, which are reported at cost.
Valuation Date June 30, 2019
Measurement Date June 30, 2019
Measurement Period July 1, 2018 to June 30, 2019
12. Property Taxes
The District receives property tax revenue from Santa Clara and San Mateo Counties (the
Counties). The Counties are responsible for assessing, collecting and distributing property taxes
in accordance with state law. Secured property taxes are recorded as revenue when apportioned,
in the fiscal period of the levy. The counties apportion secured property tax revenue in
accordance with the alternate method of distribution prescribed by Section 4705 of the California
Revenue and Taxation Code. This alternate method provides for crediting each applicable fund
with its total secured taxes upon completion of the secured tax roll - approximately October 1 of
each year. Taxes are levied annually on July 1st, and one-half are due by November 1st and one-
half by February 1st. Taxes are delinquent after December 10th and April 10th, respectively.
Supplemental property taxes are levied on a pro-rata basis when changes in assessed valuation
occur due to the completion of construction or sales transactions. Liens on real property are
established on January 15th for the ensuing fiscal period.
On June 30, 1993, the Board of Supervisors adopted the "Teeter" method of property tax
allocation. This method allocates property taxes based on the total property tax billed. At year-
end, the Counties advances cash to each taxing jurisdiction equal to its current year delinquent
taxes. Once the delinquent taxes are collected, the revenue from penalties and interest remains
with each County and is used to pay the interest cost of borrowing the cash used for the advances.
13. Accounting Estimates
The presentation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
I. Upcoming Accounting and Reporting Changes
GASB Statement No. 84, Fiduciary Activities
The objective of this Statement is to improve guidance regarding the identification of fiduciary
activities for accounting and financial reporting purposes and how those activities should be reported.
This Statement establishes criteria for identifying fiduciary activities of all state and local
governments. The focus of the criteria generally is on (1) whether a government is controlling the
assets of the fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists.
Separate criteria are included to identify fiduciary component units and postemployment benefit
arrangements that are fiduciary activities. The requirements of this Statement are effective for
financial statements for periods beginning after December 15, 2018 but have been delayed to periods
beginning after December 15, 2019, pursuant to GASB Statement No. 95. Earlier application is
encouraged. The District doesn’t believe this statement will have a significant impact on the District’s
financial statements.
GASB issued Statement No. 87, Leases
The objective of this statement is to better meet the information needs of financial statement users by
improving accounting and financial reporting for leases by governments. This statement increases the
usefulness of governments’ financial statements by requiring recognition of certain lease assets and
liabilities for leases that previously were classified as operating leases and recognized as inflows of
resources or outflows of resources based on the payment provisions of the contract. It establishes a
single model for lease accounting based on the foundational principle that leases are financings of the
right to use an underlying asset. Under this statement, a lessee is required to recognize a lease liability
and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a
deferred inflow of resources, thereby enhancing the relevance and consistency of information about
governments’ leasing activities. The requirements of this Statement are effective for financial
statements for periods beginning after December 15, 2019 but have been delayed to periods beginning
after December 15, 2021, pursuant to GASB Statement No. 95. Earlier application is encouraged. The
District is in the process of determining the impact this Statement will have on the financial
statements.
GASB Statement No. 89, Accounting for Interest Cost Incurred Before the End of the
Construction Period
This Statement addresses interest costs incurred before the end of a construction period be recognized
as an expense in the period in which the cost is incurred for financial statements prepared using the
economic resources measurement focus. As a result, interest cost incurred before the end of a
construction period will not be included in the historical cost of a capital asset reported in a business-
type activity or enterprise fund. The requirements of this Statement were initially to be effective for
financial statements for periods beginning after December 15, 2019 but have been delayed to periods
beginning after December 15, 2020, pursuant to GASB Statement No. 95. Earlier application is
encouraged. The District doesn’t believe this statement will have a significant impact on the District’s
financial statements.
GASB Statement No. 90, Majority Equity Interests - an Amendment of GASB Statements No. 14
and No. 61
The objectives of this Statement are to improve the consistency and comparability of reporting a
government’s majority equity interest in a legally separate organization and to improve the relevance
of financial statement information for certain component units. This Statement also requires that a
component unit in which a government has 100 percent equity interest account for its assets, deferred
outflows of resources, liabilities, and deferred inflows of resources at acquisition value at the date the
government acquired a 100 percent equity interest in the component unit. The requirements of this
Statement were initially to be effective for financial statements for periods beginning after December
15, 2018, but have been delayed to periods beginning after December 15, 2019, pursuant to GASB
Statement No. 95. The requirements should be applied retroactively, except for the provisions related
to (1) reporting a majority equity interest in a component unit and (2) reporting a component unit if
the government acquires a 100 percent equity interest. Those provisions should be applied on a
prospective basis. The District doesn’t believe this statement will have a significant impact on the
District’s financial statements.
GASB Statement No. 91, Conduit Debt Obligations
The objectives of this Statement are to provide a single method of reporting conduit debt obligations
by issuers and eliminate diversity in practice associated with (1) commitments extended by issuers,
(2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This
Statement also clarifies the existing definition of a conduit debt obligation; establishing that a conduit
debt obligation is not a liability of the issuer; establishing standards for accounting and financial
reporting of additional commitment and voluntary commitments extended by issuers and
arrangements associated with the debt obligations; and improving required note disclosures. The
requirements of this Statement were initially to be effective for financial statements for periods
beginning after December 15, 2020 but have been delayed to periods beginning after December 15,
2021, pursuant to GASB Statement No. 95. Earlier application is encouraged. The District doesn’t
believe this statement will have a significant impact on the District’s financial statements.
GASB Statement No. 92, Omnibus 2020
The objectives of this Statement are to enhance comparability in accounting and financial reporting
and to improve the consistency of authoritative literature by addressing practice issues that have been
identified during implementation and application of certain GASB Statements. This Statement
establishes accounting and financial reporting requirements for specific issues related to leases, intra-
entity transfers of assets, postemployment benefits, government acquisitions, risk financing and
insurance-related activities of public entity risk pools, fair value measurements, and derivative
instruments. The requirements of this Statement apply to the financial statements of all state and local
governments. The requirements of this Statement were initially to be effective for financial statements
for periods beginning after June 15, 2020 but have been delayed to periods beginning after June 15,
2021, pursuant to GASB Statement No. 95. Earlier application is encouraged. The District does not
believe this statement will have a significant impact on the District’s financial statements.
GASB Statement No. 93, Replacement of Interbank Offered Rates
This Statement establishes accounting and financial reporting requirements related to the replacement
of IBORs in hedging derivative instruments and leases. It also identifies appropriate benchmark
interest rates for hedging derivative instruments. The requirements of this Statement apply to the
financial statements of all state and local governments. The requirements of this Statement apply to
the financial statements of all state and local governments. The requirements of this Statement were
initially to be effective for financial statements for periods beginning after June 15, 2020 but have
been delayed to periods beginning after June 15, 2021, pursuant to GASB Statement No. 95. Earlier
application is encouraged. The District does not believe this statement will have a significant impact
on the District’s financial statements.
GASB Statement No. 94, Public-Private Partnerships and Public-Public Partnerships and
Availability Payment Arrangements
The primary objective of this Statement is to improve financial reporting by addressing issues related
to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP
is an arrangement in which a government (the transferor) contracts with an operator (a governmental
or nongovernmental entity) to provide public services by conveying control of the right to operate or
use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a
period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a
service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which
(1) the operator collects and is compensated by fees from third parties; (2) the transferor determines
or has the ability to modify or approve which services the operator is required to provide, to whom
the operator is required to provide the services, and the prices or rates that can be charged for the
services; and (3) the transferor is entitled to significant residual interest in the service utility of the
underlying PPP asset at the end of the arrangement. This Statement also provides guidance for
accounting and financial reporting for availability payment arrangements (APAs). As defined in this
Statement, an APA is an arrangement in which a government compensates an operator for services
that may include designing, constructing, financing, maintaining, or operating an underlying
nonfinancial asset for a period of time in an exchange or exchange-like transaction. The requirements
of this Statement are to be effective for financial statements for periods beginning after June 15, 2022.
Earlier application is encouraged. The District does not believe this statement will have a significant
impact on the District’s financial statements.
NOTE 2 - CASH AND INVESTMENTS
Summary of Cash and Investments
The following summarizes deposits as of June 30, 2020:
Cash and
Cash Equivalents
Available
Cash and Investments for Operations Restricted Total
Cash Deposits:
Cash in Banks 1,033,881$ 48,810$ 1,082,691$
Cash with Fiscal Agent - 4,062,851 4,062,851
Petty Cash 1,091 - 1,091
Total Cash Deposits 1,034,972 4,111,661 5,146,633
Investments:
California Local Agency Investment Fund 6,697,753 - 6,697,753
CalTRUST - 1,671,245 1,671,245
Brokerage Accounts/Cash with Fiscal Agents 11,013,890 40,769,369 51,783,259
Santa Clara County Pool 34,530,740 4,809,675 39,340,415
Total Investments 52,242,383 47,250,289 99,492,672
Total Cash and Investments 53,277,355$ 51,361,950$ 104,639,305$
Cash in Banks
Cash balances in banks are insured up to $250,000 per insured bank by the Federal Deposit Insurance
Corporation ("FDIC"). The District’s accounts are held with various banks. As of June 30, 2020, the
District’s bank balances exceeded FDIC coverage by $1,044,181.
Fair Value Measurements
GASB 72 established a hierarchy of inputs to the valuation techniques above. This hierarchy has three
levels:
• Level 1 inputs are quoted prices in active markets for identical assets or liabilities.
• Level 2 inputs are quoted market prices for similar assets or liabilities, quoted prices for identical
or similar assets or liabilities in markets that are not active, or other than quoted prices that are
not observable
• Level 3 inputs are unobservable inputs, such as a property valuation or an appraisal.
The District has the following investments with recurring fair value measurements as of June 30, 2020:
12 Months 13 - 24 25 - 60 More Than
Rating Fair Value or Less Months Months 60 Months
Money Market Accounts n/a 8,484,426$ n/a 8,484,426$ -$ -$ -$ 8.53%
Municipal Bonds AAA/A-9,518,348 Level 2 7,036,204 1,862,806 - 619,338 9.57%
Corp/Gov Bonds AAA/A-31,177,588 Level 1 27,339,627 3,837,961 - - 31.36%
LAIF n/a 6,730,658 Level 2 6,730,658 - - - 6.77%
CalTrust A+f 1,671,245 Level 2 - - 1,671,245 - 1.68%
Santa Clara County Pool n/a 39,340,415 Level 2 21,302,411 6,139,634 11,898,370 - 39.57%
U.S. Obligations AA+/A-2,503,435 Level 1 2,503,435 - - - 2.52%
Total Investments 99,426,115$ 73,396,761$ 11,840,401$ 13,569,615$ 619,338$ 100.00%
Concen-
trationsInvestment Type
Input
Level
Maturities
Cash in Santa Clara County Treasury
Santa Clara County is a fiscal agent of the District. The fair value of the District's investment in the
county pool is reported at amounts based on the District's pro-rata share of the fair value provided by the
County Treasurer for the entire portfolio (in relation to the amortized cost of the portfolio). The balance
available for withdrawal is based on the accounting records maintained by the County Treasurer, which is
recorded on the amortized costs basis. Santa Clara County investment pool funds were available for
withdrawal on demand and had an average maturity date of less than one year. All cash and investments
are stated at fair value. Pooled investment earnings are allocated monthly based on the average cash and
investment balances of the various funds of the County.
California Local Agency Investment Fund
The District is a participant in the Local Agency investment Fund (LAIF) that is regulated by California
Government Code Section 16429 under the oversight of the Treasurer of the State of California. The
District reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as
the value of the pool share. The balance is available for withdrawal on demand, and is based on the
accounting records maintained by LAIF, which are recorded on an amortized cost basis. Included in
LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other
asset-backed securities, loans to certain state funds, and floating rate securities issued by federal agencies,
government-sponsored enterprises, United States Treasury Notes and Bills, and corporations. At June 30,
2020, these investments had an average maturity date of less than one year.
Investment Trust of California
The District is a participant in the Investment Trust of California (CalTRUST) which is a California joint
powers authority that has been established by its members pursuant to an agreement. The California
Government Code provides that Public Agencies may purchase shares of beneficial interest issues by a
joint powers authority, such as CalTRUST, organized pursuant to the Section 6500 of the Act. The
District reports its investment in CalTRUST at the fair value amount provided by CalTRUST. The
District participates in the Medium-Term Fund with CalTRUST. The balance in this Medium-Term Fund
is available for withdrawal once a week (on Wednesdays), and is based on the net asset value per share on
the Wednesday of each week. Included in CalTRUST's investment portfolio for the Medium-Term Fund
are collateralized mortgage obligations, mortgage-backed securities, other asset-backed securities, loans
to certain state funds, and floating rate securities issued by federal agencies, government-sponsored
enterprises, United States Treasury Notes and Bills, and corporations. At June 30, 2020, these investments
had an average maturity date of 2 to 5 years.
Investments Authorized by Debt Agreements
The District must maintain required amounts of cash and investments with trustees or fiscal agents under
the terms of certain debt issues. These funds are used if the District fails to meet its obligations under
these debt issues.
Restricted for Debt Service
As of June 30, 2020, the District had $4,149 held by Zions bank as trustee, pledged to the payment or
security of its outstanding bond issues. The District also had $4,809,675 held by the County during the
period which was pledged to the payment or security of its outstanding bonds. All transactions associated
with debt service were administered by the Bank or County.
Restricted for Hawthorne Property Maintenance
On November 10, 2011, the District received the gift of the 79-acre Hawthorne property, in Portola
Valley, California, and an endowment of $2,018,445 to manage the property in perpetuity. The cash
balance restricted for this purpose at June 30, 2020 was $1,671,245.
Restricted for Measure AA Bond Projects
As of June 30, 2020, the District had $33,044,310 held by Zions bank as trustee, pledged to specific
projects related to the acquisition of property to protect and preserve natural open space lands,
constructions of public access improvements and recreation and capital enhancements to open space lands
to restore disturbed natural areas back to their original condition and function.
Restricted for Staffing Facilities
As of June 30, 2020, the District had $7,720,572 held by Zions bank as trustee, pledged to finance portion
of the cost of acquiring and improving staffing facilities for use by the District.
Restricted for Historic Picchetti Reserve
As of June 30, 2020, the District had $48,810 held with Wells Fargo, pledged for upkeep on the Picchetti
Ranch brick winery building and farm complex.
Restricted Cash with Fiscal Agent
For the year ended June 30, 2020, the District had a balance of $4,063,202 in a Public Agency Retirement
Services (PARS) Pension Rate Stabilization Program (PRSP) 115 irrevocable trust for pensions.
Participating agencies maintain oversight of investment management and control over the risk tolerance
level. Assets in the plan can be accessed to offset unexpected rate increases or be used as a rainy day fund
related to their pension plan (CalPERS). These assets are not dedicated to providing plan benefits to plan
participants and are not directly used to pay benefits until such time as the District transfers the funds
from the PARS trust to the pension plan (CalPERS). The trust restricts the use of the assets to be used
solely for pension related expenses.
Policies and Practices
The District's Investment Policy and the California Government Code allow the District to invest in the
following, provided the credit ratings of the issuers are acceptable to the District and approved
percentages and maturities are not exceeded. The table below also identifies certain provisions of the
California Government Code or the District's Investment Policy where it is more restrictive:
Authorized Investment Type
Maximum
Remaining
Maturity
Maximum Percentage of
Portfolio
Maximum
Investment
in one Issuer
Medium Term Notes 5 years
30%No Limit
Money Market and Mutual Funds N/A 20%10%
U.S. Treasury Obligations 5 years
No Limit No Limit
Federal Agency Securities 5 years
No Limit No Limit
Banker's Acceptance 180 days 40%30%
Commercial Paper 270 days 25%10%
Negotiable Certificates of Deposit 5 years 30%No Limit
Repurchase Agreements 1 year No Limit No Limit
Reverse Repurchase Agreements 92 days 20%No Limit
Local Agency Investment Fund (LAIF)N/A $40 million per account No Limit
a) Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to the changes in market interest rates. The District manages its exposure to interest rate
risk by investing in the Santa Clara County investment pool and LAIF, which had fair values of
approximately $9 billion and $101 billion, respectively as of June 30, 2020, and diversifying its
investments, as noted above, through the utilization of brokers.
b) Credit Risk
Credit risk is the risk of loss due to the failure of the security issuer. This is measured by the
assignment of a rating by a nationally recognized statistical rating organization. The investment with
the County’s investment pool is governed by the County’s general investment policy. The County’s
investments in 2020 included U.S. government securities or obligations explicitly guaranteed by the
U.S. government that are not considered to have credit risk exposure. See the schedule above for a
summary of the District’s ratings by investment type.
c) Custodial Credit Risk – Deposits
Custodial credit risk is the risk that in the event of a bank failure, the District’s deposits may not be
returned to it. The District does not have a policy for custodial credit risk for deposits. However, the
California Government code requires that a financial institution secure deposits made by State or
local governmental units by pledging securities in an undivided collateral pool held by a depository
regulated under State law (unless so waived by the governmental unit). The market value of the
pledged securities in the collateral pool must equal at least 110 percent of the total amount deposited
by the public agencies. California law also allows financial institutions to secure public deposits by
pledging first trust deed mortgage notes having a value of 150 percent of the secured public deposits
and letters of credit issued by the Federal Home Loan Bank of San Francisco having a value of 105
percent of the secured deposits.
d) Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of an investor’s holdings in
a single issuer. The District’s investment in the County’s commingled pool is diversified by the
County Treasurer by limiting the percentage of the portfolio that can be invested in any one issuer’s
name. Investments in U.S. Treasuries, U.S. Agency securities explicitly backed by the U.S., and
mutual and pooled funds are not subject to this limitation.
More than 5% of the County’s commingled pooled investments are invested with the Federal
National Mortgage Association, Federal Home Loan Bank, Federal Home Loan Mortgage
Corporation, and Federal Farm Credit Bank.
NOTE 3 - INTERFUND TRANSACTIONS
Interfund Receivables and Payables
Interfund transactions are reported as loans or transfers. The District utilizes interfund transactions to
account for funding received by the General Fund which is then distributed to the other funds for special
uses, such as payment of debt or capital project and to supplement other funding sources. Loans are
reported as interfund receivables and payables, as appropriate, and are subject to elimination upon
consolidation.
The following interfund loans were outstanding at fiscal year end June 30, 2020:
Fund
Due from
Other Funds
Due to
Other Funds
General Fund 9,308,458$ 9,391,445$
Meas ure AA Capital Projects Fund 9,702,604 9,308,458
GF Capital Projects Fund - 311,159
Total 19,011,062$ 19,011,062$
At June 30, 2020, interfund transfers consisted of the following:
Fund Transfer In Transfer Out
General Fund 889,920$ 20,220,354$
GF Capital Projects Fund 9,827,543 889,920
Debt Service Fund 10,392,811 -
Total 21,110,274$ 21,110,274$
NOTE 4 - NOTES RECEIVABLE
On December 17, 1997, the District sold the title to and possession of a 50-year fee determinable estate
10-acre parcel near the Skyline Ridge Open Space Preserve. The District financed the purchase in the
amount of $288,800 over 25 years at a rate of 10% per annum. Monthly principal and interest payments
of $2,634 are due on the 1st of each month and late if not paid by the 10th, with the final payment
scheduled December 1, 2022. The outstanding balance at June 30, 2020 was $74,509.
NOTE 5 - CAPITAL ASSETS AND DEPRECIATION
Capital asset activity for the period ended June 30, 2020 is shown below:
Balance Deletion s/Balance
Capital Assets June 30, 2019 Additions Adjustments June 30, 2020
Non-depreciable:
Land 437,763,645$ 12,885,114$ (550,000)$ 450,098,759$
Construction in Progress 16,193,374 10,966,455 (9,846,322) 17,313,507
Total Non-Depreciable 453,957,019 23,851,569 (10,396,322) 467,412,266
Depreciable:
Structure and Improvements 28,204,751 1,374,750 550,000 30,129,501
Infrastructure 34,798,646 8,978,747 - 43,777,393
Equipment 2,652,783 161,159 - 2,813,942
Vehicles 5,240,790 154,727 (106,991) 5,288,526
Total Depreciable 70,896,970 10,669,383 443,009 82,009,362
Less Accumulated Depreciation for:
Structure and Improvements (10,145,021) (866,293) - (11,011,314)
Infrastructure (5,256,432) (1,427,640) - (6,684,072)
Equipment (1,539,169) (182,666) - (1,721,835)
Vehicles (3,353,958) (647,280) 98,148 (3,903,090)
Total Accumulated Depreciation (20,294,580) (3,123,879) 98,148 (23,320,311)
Total Depreciable Capital Assets - Net 50,602,390 7,545,504 541,157 58,689,051
Total Capital Assets - Net 504,559,409$ 31,397,073$ (9,855,165)$ 526,101,317$
NOTE 6 - LONG-TERM LIABILITIES
The following is a summary of the changes in long-term liabilities for the period ended June 30, 2020:
Beginning Ending Due Within
Long-term Liabilities Balance Additions Deductions Balance One Year
Promissory Notes (Direct Borrowings):
Current Interest 24,239,999$ -$ 1,285,000$ 22,954,999$ 1,370,000$
Capital Appreciation 6,580,602 - - 6,580,602 -
Accreted interest 2,927,510 507,362 - 3,434,872 -
Unamortized Premium 5,151,823 - 183,690 4,968,133 -
Subtotal Promissory Notes 38,899,934 507,362 1,468,690 37,938,606 1,370,000
Bonds:
Current Interest 179,090,000 - 7,830,000 171,260,000 7,025,000
Unamortized Bond Premium 20,415,576 - 1,120,342 19,295,234 -
Subtotal Bonds 199,505,576 - 8,950,342 190,555,234 7,025,000
Net Pension Liability 10,412,478 8,696,336 7,280,187 11,828,627 -
Net OPEB Liability 1,862,277 1,163,653 1,525,086 1,500,844 -
Compensated Absences 2,368,387 732,284 323,520 2,777,151 883,885
Total Long-term Liabilities 253,048,652$ 11,099,635$ 19,547,825$ 244,600,462$ 9,278,885$
Compensated absences, other postemployment benefits and pension liabilities are paid by the fund for
which the employee worked, which included General Fund and MAA Capital Projects Funds.
Promissory Notes
Hunt Living Trust Promissory Note
On April 1, 2003, the District entered into a $1,500,000 promissory note with the Hunt Living Trust as
part of a lease and management agreement. The note is due in full on April 1, 2023 and bears interest at
5.5% semi-annually through April 1, 2013 and 5.0% per annum until the maturity, or prior redemption, of
the note.
2012 Refunding Promissory Notes
On January 19, 2012, the District advance refunded $34,652,643 in 1999 lease revenue bonds by issuing
$31,264,707 in promissory notes. The 2012 notes bear interest rates ranging from 2.00% to 6.04%. The
notes are a blend of current interest and capital appreciation notes maturing through 2042. The net
proceeds of $33,295,663 (after payment of $278,683 in underwriting fees, insurance, and other issuance
costs and a premium of $2,309,638) were used to purchase U.S government securities. Those securities
were deposited in an irrevocable trust with an escrow agent to provide for all future debt service payments
on the 1999 Series bonds. As a result, the 1999 Series bonds are considered to be defeased and the
liability for those bonds has been removed from the long-term debt in the financial statements. The 2012
Refunding Promissory Notes were partially defeased during fiscal year 2018 with issuance of the 2017
Refunding Bond as noted below. The notes are secured by limited ad valorem property taxes levied upon
all taxable property in the District.
2015 Refunding Promissory Notes
On January 22, 2015, the District advance refunded $29,986,962 in 2004 Revenue Bonds by issuing
$28,578,500 in promissory notes. The 2015 notes bear interest rates ranging from 2.00% to 5.00%. The
notes are current interest notes maturing through 2035. The net proceeds of $28,325,491 (after payment of
$253,009 in underwriting fees, insurance, and other issuance costs and a premium of $4,948,500) were
used to purchase U.S government securities. Those securities were deposited in an irrevocable trust with
an escrow agent to provide for all future debt service payments on the 2004 Revenue Bonds. As a result,
the 2004 Revenue Bonds are considered to be defeased and the liability for those bonds has been removed
from the long-term debt in the financial statements. The notes are secured by limited ad valorem property
taxes levied upon all taxable property in the District.
Revenue and General Obligation Bonds
2011 Revenue Bonds
On May 19, 2011, the Authority, on behalf of the District, issued $20,500,000 of 2011 Revenue Bonds for
the purpose of acquiring land to preserve and use as open space and pay bond issue and related costs. The
Bonds are not general obligations. Each period, the District will appropriate revenues-mainly limited
properly tax collections that Santa Clara County and San Mateo County allocate to the District – to pay its
obligations under a Lease Agreement for use and occupancy of District land in addition to other District
debt and lease obligations unrelated to this financing. The Current Interest Bonds bear interest at 2.0% to
6.0% and are due semi-annually on March 1 and September 1. Principal payments on the Current Interest
Bonds are due annually September 1. This Bond was partially defeased during fiscal year 2017 with
issuance of the 2016 Refunding Series A and B Green Bonds as noted below. There is no remedy to the
District for default beyond the security provided in the indenture and debt reserves established.
2015A and 2015B General Obligation Bonds
On July 29, 2015, the District issued $40,000,000 of 2015A general obligation bonds and $5,000,000 of
2015B federally taxable general obligation bonds to finance certain projects authorized by voters. The
bonds bear interest from 1.5% to 5% and are due semi-annually on March 1 and September 1. The bonds
were issued at a premium of $2,559,224 with an underwriter’s discount of $107,599 and issuance costs of
$170,000. The bonds are secured by ad valorem property taxes levied by the District. There is no remedy
to the District for default beyond the security provided in the indenture and debt reserves established.
2016A and 2016B Refunding Green Bonds
On September 8, 2016 the District issued $54,490,000 of 2016 Refunding Series A and $2,920,000 of
2016 Refunding Series B Green Bonds for the purpose of refunding its outstanding obligations under the
2007 Series A Revenue Refunding Bonds and prepay a portion of its obligations under the 2011 Lease
Revenue Bonds. As a result, the 2007 Series A Revenue Refunding Bonds and the 2011 Lease Revenue
Bonds are considered to be defeased and the liability for those bonds has been removed from the
government-wide financial statement of net position.
The refunding resulted in a difference between the reacquisition price and the net carrying amount of the
old debt of $5,032,161, which is reported as a deferred outflow on the government-wide statement of net
position. This difference, reported in the accompanying financial statements as a deduction from bonds
payable, is being charged to operations through fiscal year 2036 using the straight-line method. The
District completed the refunding to obtain an economic gain (difference between the present value of the
old and the new debt service payments) of $12,694,440.
The 2016 Refunding Green Bonds Series A bears interest from 2.0% to 5.0% and the Series B bears
interest of 0.73%. Interest for both Series A and B are due semi-annually on March 1 and September 1.
Principal payments for Series A began September 2017 and are due annually thereafter until September
2036. Series B has only one principal payment in September 2017. The bonds are secured by the
District’s share of the general 1% ad valorem property tax levied in the District. There is no remedy to the
District for default beyond the security provided in the indenture and debt reserves established.
2017 Series A Refunding Green Bonds
On December 13, 2017 the District issued $25,025,000 of 2017 Refunding Green Bonds for the purpose
of partially refunding its outstanding obligations under the 2012 Refunding Promissory Notes. The
proceeds of the 2017 Refunding Green Bonds, together with $676,232 of other District funds, were used
to defease and redeem $11,605,000 principal amount of the District’s outstanding 2012 Current Interest
Notes and $8,894,106 initial principal of the District’s outstanding 2012 Capital Appreciation Notes,
collectively, the 2012 Refunding Promissory Notes. The amounts defeased have been removed from the
government-wide financial statement of net position.
The refunding resulted in a difference between the reacquisition price and the net carrying amount of the
old debt of $4,113,597, which is reported as a deferred outflow on the government-wide statement of net
position. This difference, reported in the accompanying financial statements as a deduction from bonds
payable, is being charged to operations through fiscal year 2033 using the straight-line method. The
District completed the refunding to obtain an economic gain (difference between the present value of the
old and the new debt service payments) of $8,882,524.
The 2017 Refunding Green Bonds bears interest from 3.125% to 5.0%. Interest is due semi-annually on
March 1 and September 1. Principal payments begin September 2025 and are due annually thereafter until
September 2037. The bonds are secured by the District’s share of the general 1% ad valorem property tax
levied in the District. There is no remedy to the District for default beyond the security provided in the
indenture and debt reserves established.
2017 Series B Parity Bonds
On December 13, 2017, the District issued $11,220,000 of 2017 parity bonds to finance portion of the
cost of acquiring and improving staffing facilities for use by the District. The bonds bear interest of 5%
and are due semi-annually on June 30 and December 30. The bonds were issued at a premium of
$1,413,434 and issuance costs of $133,434. The bonds are secured by the District’s share of the general
1% ad valorem property tax levied in the District. There is no remedy to the District for default beyond
the security provided in the indenture and debt reserves established.
2018 General Obligation Bonds
On February 1, 2018, the District issued $50,000,000 of 2018 general obligation bonds to finance 25
projects specified in Measure AA. The bonds bear interest from 2% to 5% and are due semi-annually on
March 1 and September 1. The bonds were issued at a premium of $3,691,291 with an issuance costs of
$455,462. The bonds are secured by the District’s share of the general 1% ad valorem property tax levied
in the District. There is no remedy to the District for default beyond the security provided in the indenture
and debt reserves established.
The following schedule summarizes the District’s outstanding promissory notes and bonds as of June 30,
2020:
Original Beginning Ending
Long Term Debt Issue Balance Additions Retirements Balance
Promissory Notes (Direct Borrowings):
Hunt Note 1,500,000$ 1,500,000$ -$ -$ 1,500,000$
2012 Refunding Note Current Int.15,790,000 1,729,999 - 410,000 1,319,999
2012 Refunding Note Cap Apprec.15,474,708 6,580,602 - - 6,580,602
2015 Refunding Note 23,630,000 21,010,000 - 875,000 20,135,000
Subtotal Promissory Notes 56,394,708 30,820,601 - 1,285,000 29,535,601
Bonds:
2011 Lease Revenue 20,500,000 750,000 - 215,000 535,000
2015A General Obligation Bonds 40,000,000 40,000,000 - - 40,000,000
2015B General Obligation Bonds 5,000,000 2,460,000 - 905,000 1,555,000
2016 Refunding Bonds 57,410,000 50,435,000 - 3,025,000 47,410,000
2017 Refunding Bonds 25,025,000 25,025,000 - - 25,025,000
2017 Parity Bonds 11,220,000 10,420,000 - 940,000 9,480,000
2018 General Obligation Bonds 50,000,000 50,000,000 - 2,745,000 47,255,000
Subtotal Bonds 209,155,000 179,090,000 - 7,830,000 171,260,000
Accreted Interest:
2012 Refunding Note 2,927,510 507,362 - 3,434,872
Subtotal Accreted Interest 2,927,510 507,362 - 3,434,872
Unamortized Bond Premium 25,567,399 - 1,304,032 24,263,367
Total Long Term Debt 265,549,708$ 238,405,510$ 507,362$ 10,419,032$ 228,493,840$
The promissory notes future debt service requirements as of June 30, 2020 were as follows:
Year Ending June 30,Principal
Remaining
Accretion Interest Total
2021 1,370,000$ -$ 1,084,025$ 2,454,025$
2022 1,445,000 - 1,029,625 2,474,625
2023 3,040,000 - 963,950 4,003,950
2024 1,170,000 - 825,750 1,995,750
2025 1,225,000 - 765,875 1,990,875
2026-2030 7,507,418 - 2,814,875 10,322,293
2031-2035 13,778,183 6,328,738 927,250 21,034,171
2036-2040 - 2,190,790 - 2,190,790
Total Debt Service 29,535,601$ 8,519,528$ 8,411,350$ 46,466,479$
The bonds future debt service requirements as of June 30, 2020 were as follows:
Year Ending June 30,Principal
Remaining
Accretion Interest Total
2021 7,025,000$ -$ 7,161,901$ 14,186,901$
2022 6,675,000 - 6,895,263 13,570,263
2023 6,990,000 - 6,589,537 13,579,537
2024 7,375,000 - 6,239,763 13,614,763
2025 7,780,000 - 5,865,663 13,645,663
2026-2030 39,265,000 - 23,247,577 62,512,577
2031-2035 24,405,000 - 16,590,233 40,995,233
2036-2040 37,695,000 - 9,736,138 47,431,138
2041-2045 21,580,000 - 4,720,000 26,300,000
2046-2050 12,470,000 - 867,000 13,337,000
Total Debt Service 171,260,000$ -$ 87,913,075$ 259,173,075$
Amortization of the deferred loss on early retirement of long-term debt for the fiscal period ended June
30, 2020 was as follows:
Beginning Balance 9,395,702$
Amortization (845,125)
Ending Balance 8,550,577$
NOTE 7 - RENTAL INCOME
The District rents certain land and structures to other entities under operating leases with terms generally
on a month-to-month basis. Rental income of $2,275,834 was received during the period ended June 30,
2020.
NOTE 8 - CALPERS PENSION PLAN
Pension Plan
General Information about the Pension Plans
Plan Description - The District provides benefits to eligible employees through cost-sharing multiple
employer defined benefit pension plans (the Plan(s)) administered by the California Public Employees’
Retirement System (CalPERS). Members of the Plan include all permanent employees working full-time.
Benefit provisions under the Plans are established by State statute and District resolution. CalPERS issues
publicly available reports that include a full description of the pension plans regarding benefit provisions,
assumptions and membership information that can be found on the CalPERS website.
Benefits Provided - CalPERS provides service retirement and disability benefits, annual cost of living
adjustments and death benefits to plan members, who must be public employees and beneficiaries.
Benefits are based on years of credited service, equal to one year of full-time employment. Members with
five years of total service are eligible to retire at age 55 with statutorily reduced benefits. All members are
eligible for non-industrial disability benefits after 10 years of service. The death benefit is the Optional
Settlement 2W Death Benefit. The cost of living adjustments for the Plan are applied as specified by the
Public Employees’ Retirement Law.
The Plans’ provisions and benefits in effect at June 30, 2020, are summarized as follows:
Tier 1 PEPRA
Benefit formula 2.5% @ 55 2% @ 62
Benefit vesting schedule 5 Years 5 Years
Benefit payments Monthly for Life Monthly for Life
Retirement age 55 62
Monthly benefits as a % of eligible compensation 2.0% to 2.5%2.00%
Required employee contribution rates 8.000%6.750%
Required employer contribution rates 11.432%6.985%
Miscellaneous
Employees Covered – At June 30, 2020, the following employees were covered by the benefit terms for
the Plan:
Miscellaneous
Active 154
Transferred 55
Separated 73
Retired 81
Total 363
Contributions - Section 20814(c) of the California Public Employees’ Retirement Law requires that the
employer contribution rates for all public employers be determined on an annual basis by the actuary and
shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the
Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined
rate is the estimated amount necessary to finance the costs of benefits earned by employees during the
year, with an additional amount to finance any unfunded accrued liability. The District is required to
contribute the difference between the actuarially determined rate and the contribution rate of employees.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions
As of June 30, 2020, the District reported net pension liabilities for its proportionate shares of the net
pension liability as follows:
Miscellaneous
Proportionate Share
of Net Pension
Liability/(Asset)
$ 11,828,627
The District’s net pension liability for the Plan is measured as the proportionate share of the net pension
liability. The net pension liability of the Plan is measured as of June 30, 1899, and the total pension
liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation
as of June 30, 1899 using standard procedures. The District’s proportion of the net pension liability was
based on a projection of the District’s long-term share of contributions into the pension plan relative to
the projected contributions of all participating employers, as actuarially determined. The District’s
proportionate share of the net pension liability for the Plan as of fiscal years June 30, 1899 and 2020 was
as follows:
Miscellaneous
Proportion - June 30, 2019 0.27629%
Proportion - June 30, 2020 0.29538%
Change - Increase/(Decrease)0.01910%
For the fiscal year ended June 30, 2020, the District recognized pension expense of $3,818,097. At fiscal
year June 30, 2020, the District reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred
Outflows of
Resou rces
Deferred
Inflows of
Resources
Changes of Assumptions 564,044$ 199,949$
Differences between Expected and Actual Experience 821,548 63,653
Differences between Projected and Actual Investment Earnings - 206,801
Differences between Employer's Contributions and
Proportionate Share of Contributions 131,657 1,042,638
Change in Employer's Proportion 1,032,142 57,627
Pension Contributions Made Subsequent to Measurement Date 1,534,253 -
Total 4,083,643$ 1,570,668$
The District reported $1,534,253 as deferred outflows of resources related to contributions subsequent to
the measurement date that will be recognized as a reduction of the net pension liability in the year ended
June 30, 2021.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized as pension expense as follows:
1,017,319$
(64,915)
(15,469)
41,788
-
-
978,723$
Deferred
Outflows/
(Inflows) of
Resources
Fiscal Year
Ending June 30:
Thereafter
Total
2022
2023
2024
2025
2021
Actuarial Assumptions - The total pension liabilities in the June 30, 1899 actuarial valuations were
determined using the following actuarial assumptions:
Valuation Date June 30, 2018
Measurement Date June 30, 2019
Actuarial Cost Method Entry-Age Normal
Cost Method
Actuarial Assumptions:
Discount Rate 7.15%
Infla t ion 2.50%
Payroll Growth 2.75%
Projected Salary Increase (1)
Investment Rate of Return 7.15% (2)
Mortality (3)
(1) Varies by entry age and service
(2) Net of pension plan investment expenses, including inflation
(3) Derived using CalPERS' membership data for all funds
Discount Rate - The discount rate used to measure the total pension liability was 7.15 percent for each
Plan. To determine whether the municipal bond rate should be used in the calculation of a discount rate
for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be
different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out
of assets. Therefore, the current 7.15 percent discount rate is adequate and the use of the municipal bond
rate calculation is not necessary. The long term expected discount rate of 7.15 percent will be applied to
all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a
detailed report that can be obtained from the CalPERS’ website.
The long-term expected rate of return on pension plan investments was determined using a building-
block method in which expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and
long-term market return expectations as well as the expected pension fund cash flows. Using historical
returns of all the funds’ asset classes, expected compound returns were calculated over the short-term
(first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected
nominal returns for both short-term and long-term, the present value of benefits was calculated for each
fund. The expected rate of return was set by calculating the rounded single equivalent expected return
that arrived at the same present value of benefits for cash flows as the one calculated using both short-
term and long-term returns. The expected rate of return was then set equivalent to the single equivalent
rate calculated above and adjusted to account for assumed administrative expenses.
The table below reflects the long-term expected real rate of return by asset class. The rate of return was
calculated using the capital market assumptions applied to determine the discount rate and asset
allocation.
Assumed
Asset Real Return Real Return
Asset Class (a)Allocation Years 1 - 10 (b)Years 11+ (c)
Global Equity 50.00% 4.80% 5.98%
Fixed Income 28.00% 1.00% 2.62%
Inflation Sensitive 0.00% 0.77% 1.81%
Private Equity 8.00% 6.30% 7.23%
Real Estate 13.00% 3.75% 4.93%
Liquidity 1.00% 0.00% -0.92%
Total 100.00%
(a) In the System's CAFR, Fixed Income is included in Global Debt Securities; Liquidity
Liquidity is included in Short-term Investments; Inflation Assets are included in both
Global Equity Securities and Global Debt Securities.
(b) An expected inflation of 2.0% used for this period.
(c) An expected inflation of 2.92% used for this period.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate
- The following presents the District’s proportionate share of the net pension liability for the Plan,
calculated using the discount rate for the Plan, as well as what the District’s proportionate share of the net
pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-
percentage point higher than the current rate:
Miscellaneous
1% Decrease 6.15%
Net Pension Liability 21,676,810$
Current 7.15%
Net Pension Liability 11,828,627$
1% Increase 8.15%
Net Pension Liability 3,699,648$
Pension Plan Fiduciary Net Position - Detailed information about each pension plan’s fiduciary net
position is available in the separately issued CalPERS financial reports.
PARS Section 115 Trust - During fiscal year 2017-18, the District established a Section 115 Trust Fund
for Pension Costs with Public Agency Retirement Services (PARS). The amount in this trust is not
included as part of the District's net pension liability calculation.
NOTE 9 - POSTEMPLOYMENT BENEFITS OTHER THAN PENSION BENEFITS
Plan Description - The District joined the California Employers' Retiree Benefit Trust (CERBT), an
agent multiple-employer defined benefit postemployment healthcare plan administered by CalPERS. See
eligibility requirements below. Retiree benefit continues to surviving spouse if retiree elects survivor
annuity under CalPERS retirement plan. The OPEB plan’s audited financial statements are available at
https://www.calpers.ca.gov/docs/forms-publications/gasb-75-schedule-changes-fiduciary-net-position-
2017.pdf.
Benefits Provided - The following is a summary of the plan benefits provided:
Eligibility:Retire directly from the District under CalPER (age 50 and 5
years of service)
Continue participation in PEMHCA
Retiree Medical Benefit:District pays retiree medical premiums up to:
- $300/month effective 1/1/07
- $350/month effective 1/1/09
Must be at least equal to statutory PEMHCA minimum
($122 in 2015, $125 in 2016)
PEMHCA Administrative Fee:District pays CalPERS administrative fees (0.32% of
premiums for 2015/16)
Surviving Spouse Continuation:Retiree beneift continues to surviving spouse if retiree elects
survivor annuity under CalPERS retirement plan
Minimum Age:Retirement under CalPERS
Employees Covered by Benefit Terms - At June 30, 2019 (the valuation date), the benefit terms
covered the following employees:
Active employees 156
Inactive employees 40
Total employees 196
Contributions - The District makes contributions based on an actuarially determined rate and are
approved by the authority of the District’s Board. Total contributions during the year were $572,539.
Total contributions included in the measurement period were $670,768. The actuarially determined
contribution for the measurement period was $643,000. The District’s contributions were 3.79% of
covered payroll during the measurement period June 30, 2019 (reporting period June 30, 2020).
Employees are not required to contribute to the plan.
Actuarial Assumptions - The following summarized the actuarial assumptions for the OPEB plan
included in this fiscal year:
Valuation Date:June 30, 2019
Measurement Date:June 30, 2019
Actuarial Cost Method:Entry age normal, level precentage of payroll
Amortization Period:7.5 years
Asset Valuation Method:Investment gains and loses spread over 5-year rolling period
Actuarial Assumptions:
Discount Rate 6.75%
General Inflation 2.75%
Payroll Increases Aggregate - 3%
Merit - CalPERS 1997-2015 experience study
Medical Trend Non-medicare - 7.25% for 2021, decreasing to an ultimate
rate of 4.0% in 2076 and later years
Medicare - 6.3% for 2021, decreasing to an ultimate rate
of 4.0% in 2076 and later years
PEMHCA Minimum Increases 4.25%
Mortality, Retirement,
Disability, Termination CalPERS 1997-2015 experience study
Mortality Improvement Post-retirement mortality projected fully generational with
Society of Actuaries Scale MP-2019
Healthcare Participation for
Future Retirees
Currently covered: 90%
Currently waived: 60%
Discount Rate - The projection of cash flows used to determine the discount rate assumed that the
District contribution will be made at rates equal to the actuarially determined contribution rates. Based on
those assumptions, the OPEB plan's fiduciary net position was projected to cover all future OPEB
payments. Therefore, the discount rate was set to be equal to the long-term expected rate of return which
was applied to all periods of projected benefit payments to determine the total OPEB liability.
Long-Term Expected Rate of Return - The long-term expected rate of return on OPEB plan
investments was determined using a building-block method in which expected future real rates of return
(expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighting the
expected future real rates of return by the target asset allocation percentage and by adding expected
inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Asset Class
Percentage of
Portfolio
Long-Term
Expected Rate of
Return
Global Equity 59% 4.82%
Fixed Income 25% 1.47%
TIPS 5% 1.29%
Commodities 3% 0.84%
REITs 8% 3.76%
Total 100%
Net OPEB Liability - The District's net OPEB liability was measured as of June 30, 2019 (measurement
date), and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial
valuation as of June 30, 2019 (valuation date) for the fiscal year ended June 30, 2020 (reporting date).
The following summarizes the changes in the net OPEB liability during the year ended June 30, 2020, for
the measurement date of June 30, 2019:
Fiscal Year Ended June 30, 2020
(Measurement Date June 30, 2019)
Total OPEB
Liability
Plan Fiduciary
Net Position
Net OPEB
Liability (Asset)
Balance at June 30,2019 5,631,356$ 3,769,079$ 1,862,277$
Service cost 330,788 - 330,788
In terest in Total OPEB Liability 397,289 - 397,289
Employer contributions - 670,768 (670,768)
Balance of diff between actual and exp experience (156,450) - (156,450)
Balance of changes in assumptions (30,520) - (30,520)
Actual investment income - 232,579 (232,579)
Administrative expenses - (807) 807
Benefit payments (152,768) (152,768) -
Net changes 388,339 749,772 (361,433)
Balance at June 30, 2020 6,019,695$ 4,518,851$ 1,500,844$
Covered Employee Payroll 16,838,000$
Total OPEB Liability as a % of Covered Employee Payroll 35.75%
Plan Fid. Net Position as a % of Total OPEB Liability 75.07%
Service Cost as a % of Covered Employee Payroll 1.96%
Net OPEB Liability as a % of Covered Employee Payroll 8.91%
Deferred Inflows and Outflows of Resources - At June 30, 2020, the District reported deferred
outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between actual and expected experience -$ 141,407$
Difference between actual and expected earnings - 46,787
Change in assumptions - 27,585
OPEB contribution subsequent to measurement date 638,539 -
Totals 638,539$ 215,779$
Of the total amount reported as deferred outflows of resources related to OPEB, $638,539 resulting from
District contributions subsequent to the measurement date and before the end of the fiscal year will be
included as a reduction of the net OPEB liability in the year ended June 30, 2021.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized in OPEB expense as follows:
Year Ended June 30,
2021 (41,894)$
2022 (41,894)
2023 (21,294)
2024 (13,618)
2025 (17,978)
Thereafter (79,101)
Total (215,779)$
OPEB Expense - The following summarizes the OPEB expense by source during the year ended June
30, 2020, for the measurement date of June 30, 2019:
Service cost 330,788$
Interest in TOL 397,289
Expected investment income (254,386)
Difference between actual and expected experience (15,043)
Difference between actual and expected earnings (23,916)
Change in assumptions (2,935)
Administrative expenses 807
OPEB Expense 432,604$
The following summarizes changes in the net OPEB liability as reconciled to OPEB expense during the
year ended June 30, 2020, for the measurement date of June 30, 2019:
1,500,844$
(1,862,277)
(361,433)
Changes in deferred inflows 123,269
Employer contributions and implict subsidy 670,768
OPEB Expense 432,604$
Net OPEB liability ending
Net OPEB liability begining
Change in net OPEB liability
Sensitivity to Changes in the Discount Rate - The net OPEB liability of the District, as well as what the
District's net OPEB liability would be if it were calculated using a discount rate that is one percentage
point lower or one percentage point higher, is as follows:
(1% Decrease )6.75%(1% Increase )
Net OPEB Liability (Asset)2,393,070$ 1,500,844$ 774,353$
Discount Rate
Sensitivity to Changes in the Healthcare Cost Trend Rates - The net OPEB liability of the District, as
well as what the District's net OPEB liability would be if it were calculated using healthcare cost trend
rates that are one percentage point lower or one percentage point higher than current healthcare cost trend
rates, is as follows:
(1% Decrease )4.25%(1% Increase )
Net OPEB Liability (Asset)1,247,285$ 1,500,844$ 1,852,525$
Trend Rate
NOTE 10 - JOINT VENTURES (JOINT POWERS AGREEMENTS)
The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of
assets; injuries to employees; and natural disasters. Prior to July 1, 2002, the District managed and
financed these risks by purchasing commercial insurance. On July 1, 2002, the District joined the
California Joint Powers Insurance Authority (CAL JPIA). CAL JPIA is composed of 119 California
public entities and is organized under a joint powers agreement pursuant to California Government Code
Section 6500 et seq. The purpose of CAL JPIA is to arrange and administer programs for the pooling of
self-insurance losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased
insurance for property and other coverages. CAL JPIA's pool began covering claims of its members in
1978. Each member government has an elected official as its representative on the Board of Directors.
The Board operates through a nine-member Executive Committee.
During the past three fiscal periods, none of the programs of protection have had settlements or judgments
that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured
liability coverage from coverage in the prior period.
Self-Insurance Programs of the CAL JPIA
General and Automobile Liability
Each government member pays a primary deposit to cover estimated losses for a fiscal year (claims year).
General liability (GL) coverage includes bodily injury, personal injury, or property damage to a third
party resulting from a member activity. The GL program also provides automobile liability coverage. Six
months after the close of a fiscal period, outstanding claims are valued. A retrospective deposit
computation is then made for each open claims year. Costs are spread to members as follows: the first
$30,000 to $750,000 are pooled based on member's share of costs under $30,000; costs in excess of
$750,000 are shared by the members based upon each individual member's payroll. Costs of covered
claims above $5,000,000 are currently paid by reinsurance. The protection for each member is
$50,000,000 per occurrence, up to $50,000,000.
Worker's Compensation
The District also participates in the Worker's Compensation program administered by CAL JPIA. Pool
deposits and retrospective adjustments are valued in a manner similar to the General Liability pool. The
District is charged for the first $50,000 of each claim. Costs from $50,000 to $100,000 per claim are
pooled based on the member's losses under its retention level. Costs between $100,000 and $2,000,000
per claim are pooled based on payroll. Costs from $2,000,000 to $5,000,000 are paid by excess insurance
purchased by CAL JPIA. The excess insurance provides coverage to statutory limits.
Purchased Insurance
Environmental Insurance
The District participates in the Pollution and Remediation Legal Liability Program, which is available
through CAL JPIA. The policy provides coverage for both first and third party damages, including certain
types of cleanups; fuel spill or hazmat incidents; member listed non-owned disposal sites; above ground
and underground storage tanks; and for sudden and gradual pollution at or from property, streets, sanitary
sewer trunk lines and storm drain outfalls owned by the District. Coverage is on a claims-made basis.
There is a $50,000 deductible. CAL JPIA has a limit of $50,000,000 for the three-year coverage period.
The current coverage period is July 2017 through July 1, 2020. Each member of CAL JPIA has a
$10,000,000 aggregate limit during the three-year period. The current coverage period is July 2017
through July 1, 2020.
Property Insurance
The District participates in the All-Risk property program of CAL JPIA which includes all-risk coverage
for real and personal property (such as scheduled buildings, office furniture, equipment, vehicles, etc).
This insurance is underwritten by several insurance companies. Property is currently insured according to
a schedule of covered property submitted by the District to CAL JPIA. The All-Risk deductible is $5,000
per occurrence; $1,000 for non-emergency vehicles. Premiums for the coverage are paid annually and are
not subject to retroactive adjustments.
Boiler & Machinery Insurance
The District participates in the optional coverage for boiler and machinery, which is purchased separately
under the property program. Coverage is for physical damage for sudden and accidental breakdown of
boilers and machinery, and electrical injury. There is a $5,000 per accident or occurrence deductible.
Crime Insurance
The District participates in the crime program of CAL JPIA in the amount of $1,000,000 per claim, with a
$2,500 per occurrence deductible. Insurance provides coverage for employee dishonesty, failure to
faithfully perform duties, forgery, counterfeiting, theft, robbery, burglary, and computer fraud. Premiums
are paid annually and are not subject to retroactive adjustments.
Special Event Tenant User Liability Insurance
The District participates in the special events program of CAL JPIA which provides liability insurance
when District premises are used for special events. The insurance premium is paid by the tenant user to
the District according to a schedule. The District then pays the insurance arranged through CAL JPIA.
There is no deductible and the District is added as additional insured. Liability limits are purchased in $1
million per occurrence increments.
Vendors/Contractors Program
General liability coverage with or without professional liability is offered through CAL JPIA to
vendors/contractors who otherwise could not meet the District’s minimum insurance requirement: $1
million per occurrence, $2 million in aggregate.
Cyber Liability Program
The cyber liability program is partially covered under the liability program, and partially held through a
stand-alone coverage program. Cyber liability provides coverage for both first- and third-party claims.
First party coverage includes privacy, regulatory claims, security breach response, business income loss,
dependent business income loss, digital asset restoration costs, and cyber-extortion threats, while third-
party coverage includes privacy liability, network security liability, and multimedia liability. Members
work directly with the reinsurer to investigate and respond to claims. There is a $1 million per occurrence
limit of coverage, $1 million aggregate limit per policy period per member, and a $10 million aggregate
limit of coverage for all members per policy period.
NOTE 11 - COMMITMENTS AND CONTINGENCIES
Litigation
The District may be exposed to various claims and litigation during the normal course of business.
However, management believes there were no matters that would have a material adverse effect on the
District’s financial position or results of operations as of June 30, 2020.
Commitments
As of June 30, 2020, the District had remaining commitments of $20,617,862 towards construction and
other contracts. These commitments are not liabilities of the District’s until services or goods have been
rendered/received. The expected date of completion is between June 2020 and December 2099.
NOTE 12 – SUBSEQUENT EVENTS
Management has evaluated all subsequent events from the statement of financial position date of June 30,
2020, through the date the financial statements were available to be issued, December 1, 2020. Beginning
in March 2020, the United States economy began suffering adverse effects from the COVID 19 Virus
Crisis ("CV19 Crisis"). As of the date of issuance of the financial statements, the District had not yet
suffered material adverse impact from the CV19 Crisis. However, the future impact of the CV19 Crisis on
the District cannot be reasonably estimated. There were no other material subsequent events that required
recognition or additional disclosure in the financial statements.
Required Supplementary Information
Page Intentionally Left Blank
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY SCHEDULES
This schedule presents a comparison of the original budget, final budget and actual revenues and expenditures
for General Fund. The schedule presents the difference between the final budget and actuals.
PENSION SCHEDULES
These schedules present information that shows the District's proportionate share of the pension liability in the
cost sharing pools, actuarial information, and contributions. The proportionate share information is useful in
determining the District's liability on relation to all other entities in the pool.
POSTEMPLOYMENT BENEFIT SCHEDULES
These schedules present information that shows the District's total other postemployment benefits (OPEB), plan
fiduciary net position, and contributions related to retiree healthcare benefits provided by the District.
Variance with
Final Budget
Actual Positive -
Original Final (GAAP Basis) (Negative)
Revenues:
Property taxes 51,863,000$ 51,883,000$ 52,024,342$ 141,342$
Grant income 488,300 388,300 31,396 (356,904)
Property management 1,078,000 1,078,000 2,655,179 1,577,179
Investment earnings 2,099,878 2,099,878 1,014,726 (1,085,152)
Other revenues 479,157 479,157 261,702 (217,455)
Total revenues 56,008,335 55,928,335 55,987,345 59,010
Expenditures:
Current
Salaries and employee benefits 25,349,838 25,460,977 23,240,060 2,220,917
Services and supplies 11,746,210 10,160,745 7,828,976 2,331,769
Capital outlay 48,000 - - -
Total expenditures 37,144,048 35,621,722 31,069,036 4,552,686
Excess (deficiency) of revenues
over (under) expenditures 18,864,287 20,306,613 24,918,309 4,611,696
Other financing sources (uses):
Transfers in - - 889,920 889,920
Transfers out (18,071,600) (18,071,600) (20,220,354) (2,148,754)
Total other financing sources (uses)(18,071,600) (18,071,600) (19,330,434) (1,258,834)
Net change in fund balance 792,687 2,235,013 5,587,875 3,352,862
Fund balance beginning 51,352,588 51,352,588 51,352,588 -
Fund balance ending 52,145,275$ 53,587,601$ 56,940,463$ 3,352,862$
The District employs budget control by object codes and by individual appropriation accounts. Budgets are prepared on the
modified accrual basis of accounting in accordance with accounting principles generally accepted in the United States of
America as prescribed by the Governmental Accounting Standards Board. The budgets are revised during the year by the
Board of Directors to provide for revised priorities. Expenditures cannot legally exceed appropriations by major object code.
The originally adopted and final revised budgets for the General Fund are presented as Required Supplementary Information.
The basis of budgeting is the same as GAAP. Transfers out exceeded budget as noted above because of the transfer to GF
Capital Projects Fund for the District's capital projects and debt service payments.
Budgeted Amounts
Midpeninsula Regional Open Space District
Budget to Actual (GAAP)
For the Fiscal Year Ended June 30, 2020
Schedule of Revenues, Expenditures and Changes in Fund Balance
General Fund
Miscellaneous Plan
Plan Measurement Date 2014 2015 2016 2017 2018 2019
Fiscal Year Ended 2015 2016 2017 2018 2019 2020
Contractually Required Contributions 1,461,069$ 1,358,520$ 1,514,352$ 1,763,650$ 1,358,184$ 1,534,253$
Contributions in Relation to Contractually
Required Contributions 1,343,244 4,788,977 2,529,862 1,783,789 1,358,206 1,534,253
Contribution Deficiency (Excess)117,825$ (3,430,457)$ (1,015,510)$ (20,139)$ (22)$ -$
Covered Payroll 8,994,979$ 9,862,578$ 11,834,150$ 12,802,887$ 15,311,826$ 16,297,634$
Contributions as a % of Covered Payroll 14.93% 48.56% 21.38% 13.93% 8.87% 9.41%
Notes to Schedule:
Valuation Date: June 30, 2018
Assumptions Used: Entry Age Method used for Actuarial Cost Method
Level Percentage of Payroll and Direct Rate Smoothing
3.8 Years Remaining Amortization Period
Inflation Assumed at 2.5%
Investment Rate of Returns set at 7.15%
Fiscal year 2015 was the first year of implementation, therefore only six years are shown.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65%
to 7.15% in fiscal year 2018.
The CalPERS mortality assumptions was adjusted in fiscal year 2019.
Midpeninsula Regional Open Space District
Schedule of Pension Plan Contributions
June 30, 2020
CalPERS mortality table based on CalPERS' experience and include 15 years of projected ongoing mortality improvement
using 90 percent of Scale MP 2016 published by the Society of Actuaries
Miscellaneous Plan
Plan Measurement Date 2014 2015 2016 2017 2018 2019
Fiscal Year Ended 2015 2016 2017 2018 2019 2020
Proportion of Net
Pension Liability 0.39847% 0.41627% 0.29137% 0.27962% 0.27629% 0.29538%
Proportionate Share of
Net Pension Liability 9,848,203$ 11,420,126$ 10,121,906$ 11,022,824$ 10,412,478$ 11,828,627$
Covered Payroll 8,448,635$ 8,994,979$ 9,862,578$ 11,834,150$ 12,802,887$ 15,311,826$
Proportionate Share of NPL
as a % of Covered Payroll 116.57% 126.96% 102.63% 93.14% 81.33% 77.25%
Plan's Fiduciary Net Position
as a % of the TPL 81.15% 79.23% 80.93% 82.04% 84.37% 83.84%
Fiscal year 2015 was the first year of implementation, therefore only six years are shown.
The CalPERS discount rate was increased from 7.5% to 7.65% in fiscal year 2016 and then decreased from 7.65%
to 7.15% in fiscal year 2018.
The CalPERS mortality assumptions was adjusted in fiscal year 2019.
June 30, 2020
Schedule of Net Pension Liability Proportionate Shares
Midpeninsula Regional Open Space District
Fiscal Year Ended 2018 2019 2020
Actuarially determined contribution (ADC) 609,000$ 624,000$ 643,000$
Less: actual contribution in relation to ADC (412,000) (670,768) (638,539)
Contribution deficiency (excess) 197,000$ (46,768)$ 4,461$
Covered employee payroll 12,802,887$ 13,550,000$ 16,838,000$
Contributions as a % of covered employee payroll 3.22% 4.95% 3.79%
Notes to Schedule:
Assumptions and Methods
Valuation Date:
Measurement Date:
Actuarial Cost Method:
Amortization Period:
Asset Valuation Method:
Actuarial Assumptions:
Discount Rate
General Inflation
Payroll Increases
Medical Trend
PEMHCA Minimum Increases
Mortality, Retirement, Disability, Termination
Mortality Improvement
Healthcare Participation for Future Retirees
Other Notes
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal year
in which contributions are reported.
The discount rate decreased from 7.0% to 6.5% in fiscal year 2019
Midpeninsula Regional Open Space District
Schedule of Contributions for Postemployment Benefits
June 30, 2020
There were no changes in benefit terms or trend rates
Mortality improvement scale was updated to Scale MP-2019 from MP-2017 in fiscal year 2020
GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available if
less than ten years are available. GASB 75 was adopted as of June 30, 2018.
PPACA excise tax was repealed 12/20/19. Since this is after the June 30, 2019 measurement date, the excise tax
is included in the June 30, 2019 Total OPEB Liability (TOL).
4.25%
CalPERS 1997-2015 experience study
Post-retirement mortality projected fully generational
with Society of Actuaries Scale MP-2019
Currently covered: 90%
Currently waived: 60%
June 30, 2019
June 30, 2019
Entry age normal, level precentage of payroll
7.5 years
Investment gains and loses spread over 5-year rolling period
6.75%
2.75%
Aggregate - 3%
Merit - CalPERS 1997-2015 experience study
Non-medicare - 7.5% for 2019, decreasing to an
ultimate rate of 4.0% in 2076 and later years
Medicare - 6.5% for 2019, decreasing to an
ultimate rate of 4.0% in 2076 and later years
Fiscal Year Ended 2018 2019 2020
Total OPEB liability
Service cost 313,000$ 321,153$ 330,788$
Interest 326,000 361,203 397,289
Differences between expected and actual experience - - (156,450)
Changes of assumptions - - (30,520)
Benefit payments (113,000) (162,000) (152,768)
Net change in Total OPEB Liability 526,000 520,356 388,339
Total OPEB Liability - beginning 4,585,000 5,111,000 5,631,356
Total OPEB Liability - ending 5,111,000$ 5,631,356$ 6,019,695$
Plan fiduciary net position
Employer contributions 513,000$ 412,000$ 670,768$
Net investment income 287,000 259,143 232,579
Benefit payments (113,000) (162,000) (152,768)
Administrative expense (1,000) (6,064) (807)
Net change in plan fiduciary net position 686,000 503,079 749,772
Plan fiduciary net position - beginning 2,580,000 3,266,000 3,769,079
Plan fiduciary net position - ending 3,266,000$ 3,769,079$ 4,518,851$
Net OPEB liability (asset)1,845,000$ 1,862,277$ 1,500,844$
Plan fiduciary net position as a percentage of the
total OPEB liability 63.90% 66.93% 75.07%
Covered Employee Payroll 11,834,150$ 12,802,887$ 13,550,000$
Net OPEB liability as a percentage of covered employee payroll 15.59% 14.55% 11.08%
Total OPEB liability as a percentage of covered employee payroll 43.19% 43.99% 44.43%
Other Notes
Actuarially determined contribution rates are calculated as of June 30, two years prior to the end of the fiscal
year in which contributions are reported.
Midpeninsula Regional Open Space District
Schedule of Changes in Net OPEB Liability
June 30, 2020
GASB 75 requires a schedule of contributions for the last ten fiscal years, or for as many years as are available
if less than ten years are available. GASB 75 was adopted as of June 30, 2018.
There were no changes in benefit terms or trend rates
PPACA excise tax was repealed 12/20/19. Since this is after the June 30, 2019 measurement date, the excise
tax is included in the June 30, 2019 Total OPEB Liability (TOL).
Mortality improvement scale was updated to Scale MP-2019 from MP-2017 in fiscal year 2020
The discount rate decreased from 7.0% to 6.5% in fiscal year 2019.
Supplementary Information
Page Intentionally Left Blank
SUPPLEMENTARY INFORMATION
BUDGETARY SCHEDULES
These schedules present comparisons of the original budget, final budget and actual revenues and expenditures
for major capital project funds and debt service funds. These schedules presents the difference between the final
budget and actuals.
BOND PROGRAM EXPENDITURES
This schedule presents the program expenditures for the Measure AA Bond Program for the current year and the
in total since the inception of the program.
Variance with
Final Budget
Actual Positive -
Original Final (GAAP Basis) (Negative)
Revenues:
Grant income 2,108,421$ 2,108,421$ 1,498,087$ (610,334)$
Investment earnings - - 1,007,460 1,007,460
Total revenues 2,108,421 2,108,421 2,505,547 397,126
Expenditures:
Current
Salaries and employee benefits 471,697 406,558 375,893 30,665
Capital outlay 8,975,950 9,949,233 7,641,519 2,307,714
Total expenditures 9,447,647 10,355,791 8,017,412 2,338,379
Excess (deficiency) of revenues
over (under) expenditures (7,339,226) (8,247,370) (5,511,865) 2,735,505
Net change in fund balance (7,339,226) (8,247,370) (5,511,865) 2,735,505
Fund balance beginning 37,944,253 37,944,253 37,944,253 -
Prior period adjustment - - (131,009) (131,009)
Fund balance beginning - as adjusted 37,944,253 37,944,253 37,813,244 131,009
Fund balance ending 30,605,027$ 29,696,883$ 32,301,379$ 2,604,496$
Budgeted Amounts
Midpeninsula Regional Open Space District
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual (GAAP)
Measure AA Capital Projects Fund
For the Fiscal Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive -
Original Final (GAAP Basis) (Negative)
Revenues:
Grant income -$ 1,960,000$ 1,764,000$ (196,000)$
Investment earnings - - 216,363 216,363
Total revenues - 1,960,000 1,980,363 20,363
Expenditures:
Capital outlay 10,546,595 13,520,219 12,459,954 1,060,265
Total expenditures 10,546,595 13,520,219 12,459,954 1,060,265
Excess (deficiency) of revenues
over (under) expenditures (10,546,595) (11,560,219) (10,479,591) 1,080,628
Other financing sources (uses):
Transfers in 7,775,425 7,775,425 9,827,543 2,052,118
Transfers out - - (889,920) (889,920)
Total other financing sources (uses)7,775,425 7,775,425 8,937,623 1,162,198
Net change in fund balance (2,771,170) (3,784,794) (1,541,968) 2,242,826
Fund balance beginning 8,254,539 8,254,539 8,254,539 -
Prior period adjustment - - 131,009 131,009
Fund balance beginning - as adjusted 8,254,539 8,254,539 8,385,548 131,009
Fund balance ending 5,483,369$ 4,469,745$ 6,843,580$ 2,373,835$
Budgeted Amounts
Midpeninsula Regional Open Space District
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual (GAAP)
GF Capital Projects Fund
For the Fiscal Year Ended June 30, 2020
Variance with
Final Budget
Actual Positive -
Original Final (GAAP Basis) (Negative)
Revenues:
Property taxes 5,435,350$ 5,435,350$ 5,226,322$ (209,028)$
Investment earnings 874,000 950,000 88,317 (861,683)
Total revenues 6,309,350 6,385,350 5,314,639 (1,070,711)
Expenditures:
Debt service:
Principal 17,669,563 17,669,563 9,115,000 8,554,563
Interest - - 8,554,563 (8,554,563)
Total expenditures 17,669,563 17,669,563 17,669,563 -
Excess (deficiency) of revenues
over (under) expenditures (11,360,213) (11,284,213) (12,354,924) (1,070,711)
Other financing sources (uses):
Transfers in 10,397,375 10,397,375 10,392,811 (4,564)
Total other financing sources (uses)10,397,375 10,397,375 10,392,811 (4,564)
Net change in fund balance (962,838) (886,838) (1,962,113) (1,075,275)
Fund balance beginning 6,775,924 6,775,924 6,775,924 -
Fund balance ending 5,813,086$ 5,889,086$ 4,813,811$ (1,075,275)$
Budgeted Amounts
Midpeninsula Regional Open Space District
Schedule of Revenues, Expenditures and Changes in Fund Balance
Budget to Actual (GAAP)
Debt Service Fund
For the Fiscal Year Ended June 30, 2020
Expenditures Expenditures
from from
July 1, 2019 Inception
Project through through
No. Project Description June 30, 2020 June 30, 2020
AA02 Regional: Bayfront Habitat Protection & Public Access Partnerships 4,304,545$ 6,351,216$
AA03 Purisima Creek Redwoods: Purisma-to Sea Trail, Watershed & Grazing 28,089 1,298,765
AA04 El Corte de Madera Creek: Bike Trail & Water Quality Projects 117,749 1,004,617
AA05 La Honda Creek - Upper Recreation Area 35,017 2,463,776
AA06 Hawthorn Public Access Improvements 4,647 31,249
AA07 Driscoll Ranch Public Access, Wildlife Protection & Grazing 144,070 12,305,504
AA08 La Honda/Russian Ridge: Upper San Gregorio Watershed - 2,153,910
AA09 Russian Ridge: Public Recreation, Grazing & Wildlife Protection 75,089 394,556
AA10 Coal Creek: Reopen Alpine Road for Trail Use 179,219 345,341
AA11 Rancho San Antonio: Interpretive Improvements, Refurbishing 132,064 165,328
AA15 Regional: Redwood Protection & Salmon Fishery Conservation 42,499 3,075,549
AA17 Regional: Complete Upper Stevens Creek Trail 331,108 2,386,441
AA18 South Bay Foothills: Saratoga-to-Sea Trail & Wildlife Corridor 599,539 734,398 *
AA19 El Sereno Dog Park & Connections (715) 479,527
AA20 South Bay Foothills: Wildlife Passage/Ridge Trail Improvements 180,412 570,615
AA21 Bear Creek Redwoods: Public Recreation & Interpretive Projects 1,654,798 9,930,484
AA22 Sierra Azul: Cathedral Oaks Public Access & Conservation Projects 148,021 1,225,916
AA23 Sierra Azul: Mt Umunhum Public Access & Interpretation Projects 41,261 22,975,703
AA24 Sierra Azul: Rancho de Guadalupe Family Recreation - 1,591,996
AA25 Sierra Azul: Loma Prieta Area Public Access, Regional Trails/Habitat Projects - 410,150
Total MAA Bond Project Expenditures 8,017,412 69,895,041
Reimbursements from Grants, Contributions, and Other Funds (1,498,087) (4,813,700)
Total MAA Bond Project Expenditures - Net Reimbursements 6,519,325$ 65,081,341$
Midpeninsula Regional Open Space District
Measure AA Bond Program
Schedule of Program Expenditures
June 30, 2020
* In the fiscal year ended June 30, 2020, the District transferred prior period expenditures for the Saratoga to the
Sea Project from the GF Capital Projects Fund.
NOTE 1 - BACKGROUND
Measure AA is a $300 million general obligation bond approved in June 2014 by over two-thirds of
Midpen voters. Proceeds from bonds, which will be sold in a series over approximately the next 20-30
years, will be used to:
• Protect natural open space lands
• Open preserves or areas of preserves that are currently closed
• Construct public access improvements such as new trails and staging areas
• Restore and enhance open space land, which includes forests, streams, watersheds, and coastal
ranch areas.
On July 29, 2015, the District issued $40,000,000 of 2015A general obligation bonds and $5,000,000 of
2015B federally taxable general obligation bonds to finance certain projects authorized by voters. The
bonds bear interest from 1.5% to 5% and are due semi-annually on March 1 and September 1. The bonds
were issued at a premium of $2,559,224 with an underwriter’s discount of $107,599 and issuance costs of
$170,000.
On February 1, 2018, the District issued $50,000,000 of 2018 general obligation bonds to finance 25
projects specified in Measure AA. The bonds bear interest from 2% to 5% and are due semi-annually on
March 1 and September 1. The bonds were issued at a premium of $3,691,291 with an issuance costs of
$455,462.
Land acquisition is the first step to open space conservation. The Vision Plan identified 50,000 acres of
open space land that, when conserved, would significantly improve wildlife conditions, wetlands,
watersheds, creeks, sensitive plant communities and healthy outdoor recreation. As of June 30, 2020, the
District has acquired and / or preserved over 1,700 acres of land with $24 million in funding support from
Measure AA Funds.
NOTE 2 - OVERISGHT COMMITTEE
The Oversight Committee is essential to implementing Measure AA and will consist of seven at-large
members who reside within the District. The Committee convenes at least once a year and reviews annual
Measure AA expenditures and Midpen’s Annual Audit and Accountability report. Each year, the
Committee’s findings will be presented to the Board at a public meeting and will be posted on the
District’s website.
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basis of accounting utilized in preparation of this report may differ from accounting principles
generally accepted in the United States of America. Accordingly, the accompanying program statement is
not intended to present the financial position and the results of operations in conformity with accounting
principles generally accepted in the United States of America. Expenditures incurred with Measure AA
Bond proceeds are recorded on a modified accrual basis of accounting. Under the modified accrual basis
of accounting, revenue is recognized when it is measurable and available. Similarly, expenses are
recognized when they are incurred, not when they are paid.
Statistical Information
Page Intentionally Left Blank
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operating Information
Sources
These schedules contain service and infrastructure data to help the reader understand how the information in the District’s financial report relates
to the services the District provides and the activities it performs:
1. Full-Time Equivalent Employees by Function
2. Capital Asset Statistics by Function
3. Operating Indicators by Function
Unless otherwise noted, the information in these schedules is derived from the Annual Financial Reports for the relevant year.
STATISTICAL SECTION
This part of the District’s Comprehensive Annual Financial Report presents detailed information as a context for understanding what the
information in the financial statements,note disclosures,and required supplementary information says about the District’s overall financial
health. In contrast to the financial section, the statistical section information is not subject to independent audit.
These schedules contain trend information to help the reader understand how the District’s financial performance and well being have changed
over time:
1. Net Position
2. Changes in Net Position
3. Fund Balances of Governmental Funds
4. Changes in Fund Balances of Governmental Funds
These schedules contain information in relation to the District’s property tax assessments:
1. Assessed and Actual Value of Taxable Property
2. Direct and Overlapping Property Tax Rates
3. Pricipal Property Tax Payers
4. Property Tax Levies and Collections
These schedules present information to help the reader assess the affordability of the District’s current levels of outstanding debt and the District’s
ability to issue additional debt in the future:
1. Ratios of General Bonded Debt Outstanding
2. Ratios of Outstanding Debt by Type
3. Legal Debt Margin Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the District’s financial
activities take place:
1. Demographic and Economic Statistics
2. Principal Employers
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Governmental activities
Net investment in capital assets 236,546$ 245,393$ 259,638$ 268,869$ 278,611$ 276,395$ 308,601$ 312,121$ 351,152$ 371,186$
Restricted 1,408 1,568 2,731 4,327 2,566 5,786 4,571 7,252 8,207 6,277
Unrestricted 28,142 42,738 36,919 37,951 39,948 39,280 23,831 29,415 8,015 14,617
Total Net Position 266,096$ 289,699$ 299,288$ 311,147$ 321,125$ 321,461$ 337,003$ 348,788$ 367,374$ 392,080$
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Net Position
(amounts expressed in thousands)
Last Ten Fiscal Years
(accrual basis of accounting)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Expenses
Governmental activities
Land preservation 13,768$ 14,312$ 19,338$ 17,930$ 19,478$ 26,080$ 21,783$ 28,910$ 34,304$ 32,482$
Interest and fiscal charges 6,739 7,483 7,273 7,163 7,202 9,752 8,327 8,193 10,449 9,874
Depreciation 882 806 840 1,095 1,232 1,311 1,585 2,399 - -
Loss on refunding of debt - - - - - - - - - -
Total governmental activities expenses 21,389 22,601 27,451 26,188 27,912 37,143 31,695 39,502 44,753 42,356
Program Revenues
Governmental Activities
Charges for Services 1,241 1,320 1,381 1,422 1,437 1,636 1,479 1,576 2,360 2,655
Grants and Contributions 1,393 1,453 913 1,901 953 1,194 651 1,613 1,082 3,293
Land donations 17 13,928 3,890 - - - - - - -
Total governmental activities program revenues 2,651 16,701 6,184 3,323 2,390 2,830 2,130 3,189 3,442 5,948
Net (expense)/revenue - governmental activities (18,738) (5,900) (21,267) (22,865) (25,522) (34,313) (29,565) (36,313) (41,311) (36,408)
General Revenues and Other Changes in Net Position
Governmental Activities
Property taxes 27,269 28,737 30,270 32,433 35,082 44,980 43,861 47,798 54,395 57,251
Investment earnings 294 375 288 138 202 648 463 1,045 3,648 2,307
Use of money and property - - - - - - - - - -
Miscellaneous 311 394 298 182 216 810 784 1,153 1,557
Total governmental activities 27,874 29,506 30,856 32,753 35,500 46,438 45,108 49,996 58,043 61,115
Change in Net Position
Governmental activities 9,136 23,606 9,589 9,888 9,978 12,125 15,543 13,683 18,586 24,708
Prior period adjustments - - - 1,971 - (11,790) - (1,898) - -
Total Changes in Net Position 9,136$ 23,606$ 9,589$ 11,859$ 9,978$ 335$ 15,543$ 11,785$ 18,586$ 24,708$
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
General fund
Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Unreserved, designated in - - - - - - - - - -
Unreserved, reported in - - - - - - - - - -
Nonspendable - - - - - - 55 36 186 206
Restricted 731 - - 1,702 1,702 1,971 1,971 1,467 1,432 5,527
Committed - - - - 20,400 35,400 35,400 55,300 29,288 30,518
Assigned - - - 5,000 - - - - 1,400 710
Unassigned 26,156 41,782 37,513 34,453 21,330 16,848 23,872 16,306 16,515 19,979
Total General Fund 26,887$ 41,782$ 37,513$ 41,155$ 43,432$ 54,219$ 61,298$ 73,109$ 48,821$ 56,940$
All other governmental funds
Reserved -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Restricted 1,408 1,568 1,634 1,621 - 26,894 9,539 59,304 52,975 43,959
Total all other governmental funds 1,408$ 1,568$ 1,634$ 1,621$ -$ 26,894$ 9,539$ 59,304$ 52,975$ 43,959$
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
The District has implemented GASB 54 effective fiscal year ending March 31, 2011.
This Statement establishes new categories for reporting fund balance and revises the definitions for governmental fund types.
The District opted not to change the previous years' data.
(modified accrual basis of accounting)
(amounts expressed in thousands)
Midpeninsula Regional Open Space District
Fund Balances of Governmental Funds
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
REVENUES
Property taxes 27,269$ 28,737$ 30,270$ 32,433$ 35,082$ 44,980$ 43,861$ 47,798$ 54,395$ 57,251$
Grant income 1,393 1,453 913 1,901 953 1,194 651 1,613 1,082 3,293
Property management 955 1,320 1,381 1,422 1,438 1,636 1,479 1,576 2,360 2,655
Investment earnings 294 375 288 150 216 666 480 1,064 3,649 2,327
Other 551 240 146 145 241 644 609 348 641 262
Land donation 17 13,928 - - - - - - - -
TOTAL REVENUE 30,479 46,053 32,998 36,051 37,930 49,120 47,080 52,399 62,127 65,788
EXPENDITURES
Land Preservation 13,682 13,996 18,713 17,303 18,272 28,965 25,807 28,226 29,186 31,445
Capital outlay 11,596 27,190 9,611 8,231 8,445 18,901 19,961 16,440 45,356 20,101
Debt service:
Principal and advance refunding escrow 3,301 4,457 2,843 2,999 3,145 4,367 5,193 6,392 6,480 9,115
Interest and fiscal charges 4,786 5,355 6,034 5,859 5,749 6,478 7,190 6,597 9,191 8,555
TOTAL EXPENDITURES 33,365 50,998 37,201 34,392 35,611 58,711 58,152 57,655 90,213 69,216
EXCESS (DEFICIT) OF REVENUES
OVER EXPENDITURES (2,886) (4,945) (4,203) 1,659 2,319 (9,591) (11,072) (5,256) (28,086) (3,428)
OTHER FINANCING SOURCES AND USES
Transfers in 7,974 9,827 8,877 8,858 8,894 12,146 15,839 9,409 49,929 21,110
Transfers out (7,974) (9,827) (8,877) (8,858) (8,894) (12,146) (15,839) (9,409) (49,929) (21,110)
Other sources 850 20,000 - - - - - - - -
Payment to refunded bond escrow agent - - - - - - (68,187) (27,660) - -
Issuance of refunding debt - - - - - - 57,410 25,025 - -
Advance refunding of revenue bonds - - - - (29,987) - - - - -
Issuance of debt - - - - 28,325 45,000 - 61,220 - -
Premium from debt issuances - - - - - 2,282 11,564 8,246 - -
TOTAL OTHER FINANCING SOURCES (USES)850 20,000 - - (1,662) 47,282 787 66,831 - -
SPECIAL ITEM
OPEB Funding - - - - - - - - - -
NET CHANGES IN FUND BALANCES (2,036)$ 15,055$ (4,203)$ 1,659$ 657$ 37,691$ (10,285)$ 61,575$ (28,086)$ (3,428)$
Capitalized capital outlay expenditures 11,596 27,190 9,611 8,231 8,445 18,901 19,961 16,440 45,356 20,101
Debt Service as a percentage of noncapital expenditures 59.11% 70.11% 47.44% 51.19% 48.68% 37.44% 47.99% 46.02% 53.69% 56.19%
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year Secured State Board Unsecured
Total before Rdv.
Increment
Total after Rdv.
Increment Total Direct Tax Rate
2011 108,672,177 5,138 6,448,241 115,125,556 110,403,735 1.00%
2012 110,480,451 5,192 6,843,137 117,328,780 112,337,379 1.00%
2013 115,665,767 5,192 7,574,405 123,245,364 117,796,453 1.00%
2014 125,816,313 5,192 8,032,680 133,854,185 128,261,360 1.00%
2015 134,293,819 3,616 8,134,278 142,431,713 136,364,266 1.00%
2016 148,710,117 3,616 8,236,861 156,950,594 151,221,560 1.00%
2017 161,457,837 3,616 8,664,927 170,126,380 163,586,434 1.00%
2018 174,219,310 3,616 9,773,726 183,996,652 177,153,795 1.00%
2019 188,007,378 8,646 10,266,764 198,282,788 191,359,437 1.00%
2020 201,019,887 8,646 9,814,574 210,843,107 203,359,598 1.00%
Fiscal Year Secured State Board Unsecured
Total before Rdv.
Increment
Total after Rdv.
Increment Total Direct Tax Rate
2011 51,197,326 6,653 2,006,682 53,210,661 49,373,928 1.00%
2012 51,670,521 2,465 1,952,159 53,625,145 49,913,049 1.00%
2013 53,793,234 2,465 1,948,563 55,744,262 51,977,724 1.00%
2014 57,513,572 2,336 2,180,554 59,696,462 55,714,674 1.00%
2015 60,798,837 2,343 2,087,353 62,888,533 58,641,318 1.00%
2016 66,177,633 3,086 2,363,781 68,544,500 63,519,108 1.00%
2017 72,017,698 3,085 2,640,434 74,661,217 68,354,025 1.00%
2018 78,506,564 3,085 2,996,701 81,506,350 73,565,159 1.00%
2019 85,236,395 2,658 2,756,478 87,995,531 79,176,299 1.00%
2020 99,187,975 3,219 2,894,481 102,085,675 92,428,172 1.00%
Source: California Municipal Statistics, Inc
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
County of San Mateo
Midpeninsula Regional Open Space District
Assessed and Actual Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
County of Santa Clara
Fiscal Year
General Property
Tax Levy
Other
Overlapping
Governments
Open Space
District Total
General Property
Tax Levy
Other
Overlapping
Governments
Open Space
District Total
2011 1.00000 0.14951 - 1.14951 1.00000 0.07530 - 1.07530
2012 1.00000 0.15060 - 1.15060 1.00000 0.08120 - 1.08120
2013 1.00000 0.18750 - 1.18750 1.00000 0.08060 - 1.08060
2014 1.00000 0.18740 - 1.18740 1.00000 0.07470 - 1.07470
2015 1.00000 0.18304 - 1.18304 1.00000 0.08530 - 1.08530
2016 4 1.00000 0.17807 0.00080 1.17887 1.00000 0.08420 0.00080 1.08500
2017 1.00000 0.17160 0.00060 1.17220 1.00000 0.10990 0.00060 1.11050
2018 1.00000 0.18133 0.00090 1.18223 1.00000 0.10300 0.00090 1.10390
2019 1.00000 0.17126 0.00180 1.17306 1.00000 0.09240 0.00180 1.09420
2020 1.00000 0.18202 0.00160 1.18362 1.00000 0.10020 0.00160 1.10180
Source: FY 2019-20 Tax Rate Books for San Mateo and Santa Clara Counties
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
1 Due to the District’s size and that it is located in two counties (County of Santa Cruz excluded), there is no tax rate area that represents the typical
total tax rate for the District. The above tax rate areas are the largest in terms of assessed valuation for each County’s portion of the District.
2 The 2019-20 assessed valuation of Tax Rate Area (TRA) 6-001 is $32,480,806.925 which is 10.38 % of the District’s total assessed valuation.
3 The 2019-20 assessed valuation of TRA 9-001 is $10,868,501,012 which is 3.47% of the District’s total assessed valuation.
4 Fiscal Year 2015-16 was the first year in which ad valorem property taxes authorized by Measure AA were levied.
Midpeninsula Regional Open Space District
Property Tax Rates
Direct and Overlapping1 Property Tax Rates
Last Ten Fiscal Years
County of Santa Clara (Tax Rate Area 6-001) 2 County of San Mateo (Tax Rate Area 9-001) 3
Taxpayer
Taxable Assessed
Valuation Rank
Percentage of
Total Assessed
Valuation
Taxable Assessed
Valuation Rank
Percentage of
Total Assessed
Valuation
Board of Trustees, Leland Stanford Jr. University 7,172,848$ 1 2.39%4,901,194$ 1 3.07%
Google Inc.6,644,929 2 2.21%434,468 9 0.27%
Campus Holdings Inc. 3,570,308 3 1.19%**
Hibscus Properties LLC 1,326,840 4 0.44%**
Sobrato Interests 1,157,587 5 0.39%**
Apple Computer Inc. 1,134,606 6 0.38%690,518 2 0.43%
Facebook Inc.920,644 7 0.31%**
Lockheed Missiles and Space Co. Inc.915,535 8 0.30%564,312 4 0.35%
CW SPE LLC 756,467 9 0.25%**
Yahoo Holdings Inc.669,497 10 0.22%476,573 7 0.30%
Oracle Corp. 647,034 11 0.22%567,172 3 0.35%
Menlo & Juniper Networks LLC 623,437 12 0.21%**
Richard T. Spieker, Trustee 606,726 13 0.20%**
Applied Materials Inc.588,404 14 0.20%361,679 10 0.23%
Intuitive Surgical Inc.535,896 15 0.18%**
Peninsula Innovation Partnersh LLC 491,710 16 0.16%**
Woodland Park Property Owner LLC 419,212 17 0.14%**
441 Real Estate LLC 414,814 18 0.14%**
Network Appliance Inc. 394,921 19 0.13%533,962 5 0.33%
LinkedIn Corporation 393,656 20 0.13%**
VII Pac Shores Investors LLC **485,618 6 0.30%
Arden Realty LP **255,201 16 0.16%
HCP Life Science REIT Inc.**315,451 12 0.20%
Wells REIT II-University Circle LP **310,197 13 0.19%
SPF Mathilda LLC **276,782 14 0.17%
Silicon Valley CA I LLC **254,274 17 0.16%
Redus Woodland LLC **276,516 15 0.17%
Slough Redwood City LLC **244,474 20 0.15%
MT SPE LLC **249,945 19 0.16%
Hewlett Packard Co.**434,763 8 0.27%
Symantec Corporation **252,481 10 0.16%
Sun Microsystems Inc. **328,708 11 0.21%
Total 29,385,071$ 9.79%12,214,288$ 7.64%
* Information not available
Source: California Municipal Statistics, Inc.
Midpeninsula Regional Open Space District
Principal Property Tax Payers
Current Year and Nine Years Ago
(amounts expressed in thousands)
Fiscal Year 2011Fiscal Year 2020
Fiscal Year
Santa Clara County
Taxes Levied
San Mateo County
Taxes Levied
Santa Clara County
Collections
% of County
Levy
San Mateo County
Collections
% of County
Levy
2016 1,186,363$ 527,932$ 1,177,636$ 99.3% 524,982$ 99.4%
2017 968,301 431,711 962,730 99.4% 429,436 99.5%
2018 1,558,456 705,842 1,553,773 99.7% 701,923 99.4%
2019 3,365,744 1,532,834 3,348,991 99.5% 1,524,259 99.4%
2020 3,215,052 1,591,352 3,195,317 99.4% 1,577,126 99.1%
Source: California Municipal Statistics, Inc.
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
1 District's general obligation bond debt service levy. Prior years are not available. Levy began in FY2015-16
CollectionsLevy 1
Midpeninsula Regional Open Space District
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Year
General
Obligation Bonds
Debt Service
Monies Available Total
Taxable Assessed
Value
Percentage of
Taxable AV 1 Per Capita 2
2011 - - - 159,777,663 0.000% 0.00
2012 - - - 162,250,428 0.000% 0.00
2013 - - - 169,774,177 0.000% 0.00
2014 - - - 183,976,034 0.000% 0.00
2015 - - - 195,005,584 0.000% 0.00
2016 45,000 3,116 41,884 214,740,668 0.020% 15.56
2017 44,225 2,194 42,031 231,940,459 0.018% 15.53
2018 104,570 5,785 98,785 250,718,954 0.039% 36.32
2019 102,880 6,776 96,104 270,535,736 0.036% 35.22
2020 88,810 4,814 83,996 295,787,770 0.028% *
* Information not available
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
1 See the Schedule of Assessed and Actual Value of Taxable Property for property value data.
2 Population data can be found in the Schedule of Demographic and Economic Statistics.
Midpeninsula Regional Open Space District
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(amounts expressed in thousands, except per-capita amount)
Fiscal Year
General
Obligation
Bonds
Lease
Revenue
Bonds Refunding Bonds Bond Premiums Notes Payable Total
Taxable Assessed
Value (AV)
Percentage of
Taxable AV
Percentage
of Personal
Income Per Capita
2011 - 64,995 50,988 607 6,429 123,019 159,777,663 0.077% 0.102% 840.82
2012 - 51,947 49,179 2,515 36,898 140,539 162,250,428 0.087% 0.105% 873.73
2013 - 51,568 47,994 2,351 37,039 138,952 169,774,177 0.082% 0.102% 865.00
2014 - 51,021 50,665 2,188 36,285 140,159 183,976,034 0.076% 0.094% 811.01
2015 - 20,385 49,935 6,973 59,271 136,564 195,005,584 0.070% 0.083% 723.35
2016 45,000 20,290 47,300 9,087 58,698 180,375 214,740,668 0.084% 0.101% 903.18
2017 44,225 1,080 57,410 20,475 58,761 181,951 231,940,459 0.078% 0.094% 836.30
2018 104,570 930 78,870 26,839 34,466 245,675 250,718,954 0.098% 0.118% 1,048.69
2019 102,880 750 75,460 25,567 33,749 238,406 270,535,736 0.088%**
2020 98,290 535 72,435 24,263 32,971 228,494 295,787,770 0.077%**
* Information not available
Source: Annual Financial Report
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
(1) Details regarding the District's outstanding debt can be found in the notes to the financial statements.
(2) Refer to the Demographics Statistics for personal income and population data.
Ratios of Outstanding Debt
Last Ten Fiscal Years
Midpeninsula Regional Open Space District
(amounts expressed in thousands, except per-capita amount)
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Assessed Valuation:
Assessed value subject to debt levy 159,777,663$ 162,250,428$ 169,774,177$ 183,976,034$ 195,005,584$ 214,740,668$ 231,940,459$ 250,718,954$ 270,535,736$ 295,787,770$
Total assessed valuation 159,777,663 162,250,428 169,774,177 183,976,034 195,005,584 214,740,668 231,940,459 250,718,954 270,535,736 295,787,770
Debt Applicable to Limitation:
Total debt 6,429 36,898 37,039 36,285 59,271 58,698 58,761 34,466 33,749 32,971
Less: amount available for repayment - - - - - 3,116 2,194 5,785 6,776 4,814
Total debt applicable to limitation 6,429 36,898 37,039 36,285 59,271 55,582 56,567 28,681 26,973 28,157
Legal Debt Margin:
Bonded debt limit (15% AV)23,966,649 24,337,564 25,466,127 27,596,405 29,250,838 32,211,100 34,791,069 37,607,843 40,580,360 44,368,166
Debt applicable to limitation 6,429 36,898 37,039 36,285 59,271 55,582 56,567 28,681 26,973 28,157
Legal debt margin 23,960,220$ 24,300,666$ 25,429,088$ 27,560,120$ 29,191,567$ 32,155,518$ 34,734,502$ 37,579,162$ 40,553,387$ 44,340,009$
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Under California Government Code Section 61126 (b) the Midpeninsula Regional Open Space District shall not incur bonded
indebtedness that exceeds 15% of the total assessed property value.
Midpeninsula Regional Open Space District
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Year Population
1
Personal Income 2
(in millions)
Per Capita
Personal Income 2
Median
Age 3
School
Enrollment 4
County Unemployment
Rate 5
2011 1,805,767 120,376 66,406 36.0 266,256 9.6%
2012 1,832,983 133,912 72,792 36.2 270,109 8.2%
2013 1,860,687 136,176 72,927 36.4 273,701 6.8%
2014 1,882,230 149,650 79,055 36.6 276,175 5.2%
2015 1,906,511 165,265 86,188 36.8 276,689 4.3%
2016 1,925,306 178,496 92,505 36.8 274,948 3.9%
2017 1,936,052 193,680 100,177 37.0 273,264 3.4%
2018 1,947,798 209,020 107,877 37.2 271,400 2.9%
2019 1,954,286 ** 37.4 267,224 2.9%
2020 1,961,969 *** 263,449 10.7%
Calendar Year Population
1
Personal Income 2
(in millions)
Per Capita
Personal Income 2
Median
Age 3
School
Enrollment 4
County Unemployment
Rate 5
2011 727,319 58,201 79,903 39.4 92,097 7.9%
2012 736,760 65,113 88,058 39.6 93,674 6.8%
2013 747,186 65,696 87,711 39.3 93,931 5.6%
2014 753,472 71,043 93,765 39.4 94,567 4.3%
2015 760,769 78,540 102,606 39.8 95,187 3.5%
2016 766,649 82,357 107,207 39.5 95,502 3.2%
2017 769,570 90,249 117,389 39.6 95,620 2.9%
2018 772,372 97,265 126,392 39.9 95,103 2.5%
2019 774,485 ** 39.6 94,234 2.4%
2020 773,244 *** 93,554 10.8%
* Information not available
Data Sources
1 State of California Department of Finance - http://www.dof.ca.gov/Forecasting/Demographics/Estimates/e-4/2010-20/
2 U.S. Department of Commerce Bureau of Economic Analysis
3 U.S Census Bureau, American Community Survey
4 State of California Department of Education
5 State of California Employment Development Department, Labor Market Division
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Demographic and Economic Statistics
Last Ten Fiscal Years
County of Santa Clara
County of San Mateo
Employer
Number of
Employees 1 Rank
Percentage of
Total
Employment
Number of
Employees 2 Rank
Percentage of
Total
Employment
Apple Computer, Inc. 25,000 1 2.44%10,000 5 1.28%
Google LLC 24,626 2 2.40%**
County of Santa Clara 20,883 3 2.04% 15,550 1 1.99%
Stanford University 16,919 4 1.65%10,101 4 1.29%
Cisco Systems Inc. 14,674 5 1.43%13,000 2 1.60%
Kaiser Permanente 12,500 6 1.22%5,000 10 0.64%
Stanford Healthcare 10,034 7 0.98% 5,569 8 0.71%
Tesla Motors Inc. 10,000 8 0.98%**
Applied Materials, Inc. 8,500 9 0.83% * *
Intel Corporation 8,500 10 0.82% 5,684 9 0.73%
City of San Jose * * 6,623 6 0.85%
Lockheed Martin Space Systems Co. * * 10,400 3 1.33%
Hewlett-Packard Co. * * 5,001 7 0.64%
Total 151,636 14.79% 86,928 11.06%
Employer
Number of
Employees Rank
Percentage of
Total
Employment
Number of
Employees Rank
Percentage of
Total
Employment
Facebook, Inc. 14,000 1 3.13%**
Genentech Inc. 9,500 2 2.12%8,800 1 2.57%
Oracle Corp. 7,535 3 1.68%5,600 3 2%
County of San Mateo 5,570 4 1.25%6,079 2 1.78%
Gilead Sciences, Inc. 4,000 5 0.89% * *
Walmart Labs 2,000 6 0.45% * *
YouTube 2,000 7 0.45%**
Roberto Half International, Inc. 1,668 8 0.37% * *
Sony Interactive Entertainment 1,602 9 0.36% * *
Electronic Arts, Inc. 1,520 10 0.34% * *
Kaiser Permanente * * 3,777 4 1.10%
Mills-Peninsula Health Services * * 2,500 5 0.73%
Visa, Inc. * * 2,462 6 0.72%
Safeway, Inc. * * 2,075 7 0.61%
San Mateo County Community College District * * 1,951 8 0.57%
SLAC National Accelerator Laboratory * * 1,764 9 0.52%
Set Medical Center * * 1,672 10 0.49%
Total 49,395 11.04% 36,680 10.73%
* Information not available
Source:
1 Silicon Valley Business Journal, July 19, 2019
2 County of Santa Clara Finance Department. FY2009-10 CAFR
3 San Francisco Business Times - 2019 Book of Lists and California Employment Development Department
4 Latest information available for principal employers in the County of San Mateo.
2018 4 2010
County of San Mateo 3
County of Santa Clara
Midpeninsula Regional Open Space District
Principal Employers
Most Current Year and Nine Years Ago
2019 2010
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Function
Office of the General Manager 3.00 4.00 4.00 4.00 5.00 6.00 8.00 8.00 8.00 8.00
Real Property 5.00 5.00 5.00 5.00 6.00 4.00 4.00 5.00 5.00 5.00
Plannning 14.00 14.00 14.00 14.00 14.00 13.00 10.50 10.50 10.50 10.50
Engineering & Construction N/A N/A N/A N/A N/A N/A 5.50 7.50 7.50 7.50
Public Affairs 8.00 8.00 9.00 9.00 11.00 12.00 8.00 8.00 8.00 8.00
Admininstration
Reception 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Finance 3.25 3.25 3.25 4.75 4.75 5.25 9.25 9.25 10.25 11.25
Human Resources 2.00 2.50 3.50 3.50 5.50 7.00 7.00 7.00 7.00 7.00
Information Technology 1 1.00 1.00 2.00 2.50 2.50 5.50 7.50 7.50 8.50 8.50
Operations
Administration 6.00 6.00 6.00 6.00 6.00 6.00 N/A N/A N/A N/A
Patrol 28.00 28.00 28.00 28.00 31.00 32.00 N/A N/A N/A N/A
Land/Facilities Maintenance 26.00 26.00 26.00 26.00 28.30 30.30 N/A N/A N/A N/A
Resource Management 2 6.00 N/A N/A N/A N/A N/A N/A N/A N/A N/A
Land & Facilities N/A N/A N/A N/A N/A N/A 49.30 53.30 56.30 57.30
Visitor Services N/A N/A N/A N/A N/A N/A 41.90 41.90 41.90 43.40
General Counsel 2.50 2.50 2.50 2.50 2.50 2.50 2.50 2.50 3.50 3.50
Natural Resources 2 N/A 8.00 8.00 8.00 9.00 10.00 11.00 12.00 12.00 12.00
Total 105.75 109.25 112.25 114.25 126.55 134.55 165.45 173.45 179.45 182.95
Source: Midpeninsula Regional Open Space District
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
1 In 2015, the GIS function was integrated into Information Technology from the Planning Department
2 In 2012, the Resource Management function under the Operations Department became the Natural Resources Department
During 2015, the District underwent a complete reorganization which become effective during FY 2016-17. As part of the
reorganization, the Planning Department was split with a new Engineering & Construction Department, a portion of Real
Property and Operations became the new Land & Facilities Department, and part of Public Affairs and Operations/Patrol
became the new Visitor Services Department.
Midpeninsula Regional Open Space District
Full-time Equivalent District Government Employees by Function
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Function
Land:
Number of preserves 26 26 26 26 26 26 26 26 26 26
Acreage:
Santa Clara County 32,380.35 32,990.49 33,006.79 33,158.80 33,259.21 33,366.71 33,449.99 33,628.15 33,631.06 33,631.06
San Mateo County 26,704.01 27,625.36 28,668.49 28,977.86 29,063.13 29,452.58 29,643.96 29,664.41 29,854.41 30,636.85
Santa Cruz County 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18 2,004.18
less: easements and life
estates held by other parties (1,825.88) (1,825.88) (1,825.88) (1,825.88) (1,825.88) (1,825.88) (1,825.88) (1,802.88) (1,802.88) 782.44
Total 59,262.66 60,794.15 61,853.58 62,314.96 62,500.64 62,997.59 63,272.25 63,493.86 63,686.77 67,054.53
Facilities:
Administrative office 1111111111
Field/patrol offices 2222222333
Visitor Center 2222222222
Vehicles & Equipment:
Patrol vehicles 35 37 39 41 38 37 42 36 34 33
Service vehicles 333581013101114
Maintenance vehicles 6 8 9 13 16 19 25 29 31 31
Administrative vehicles n/a n/a n/a n/a n/a n/a n/a 13 13 15
Motorcycles/ATVs/Electric bicycles 13 13 13 13 13 13 13 27 27 32
Bulldozers/excavators/tractors 17 17 20 21 21 23 23 20 23 23
Dump trucks 44445554611
Water Truck 1222222222
Trailers n/a n/a n/a n/a n/a n/a n/a 25 27 31
Chippers/mowers 2224455555
Source: Midpenninsula Regional Open Space District
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Beginning with FY2017-18 the District is using a new system for classifying and tracking vehicles and equipment.
Midpeninsula Regional Open Space District
Capital Asset Statistics by Function
Last Ten Fiscal Years
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Function
General Manager
Board meetings 31 45 36 35 33 31 31 44 32 28
Resolutions adopted 41 56 20 39 61 61 40 46 47 43
Real Property
Acres preserved
Santa Clara County 547.04 492.99 16.30 152.01 100.41 107.50 83.28 178.18 2.11 -
San Mateo County 115.17 921.35 1,043.14 309.37 393.26 81.45 191.38 20.46 190.00 782.44
Public Affairs
Stewardship volunteer hours 11,314 11,843 11,232 13,579 14,354 15,839 17,440 16,088 15,910 10,296
Interpretation/education docent hours 5,433 4,669 5,559 4,718 5,828 4,462 4,697 4,320 4,438 975
Website visits 274,133 434,402 349,398 359,432 418,748 429,891 487,215 589,280 524,387 782,003
Bicycle Accident 22 36 37 30 20 26 19 37 13 30
Equestrian Accident 1 1 2 - 1 2 - - 1 3
Hiking/Running Accident 18 16 16 22 20 14 37 40 11 25
Other first aid 15 25 24 15 25 26 23 31 13 29
Search & rescue 15 10 8 5 8 3 4 2 2 4
Vehicle Accident 11 16 15 14 19 14 17 50 15 47
Fire 5 7 8 16 9 10 9 13 4 7
HazMat 3 - - 1 1 6 1 3 1 1
Citation/Juvenile Contact Report 509 526 737 617 825 767 678 592 405 387
Parking Citation 434 527 621 584 700 645 836 870 375 1,027
Arrests 1 1 2 1 4 3 2 - 2 2
Day Permits 1,059 1,235 1,237 1,521 2,154 2,541 2,530 2,676 2,417 1,350
Multi-day permits 248 225 253 306 306 321 366 419 361 313
Camping permits 259 341 336 393 476 573 613 570 571 441
Source: Midpenninsula Regional Open Space District
Notes: Starting fiscal year (FY) 2015-16 the District changed from a fiscal year end date of March 31st to June 30th.
As a result, FY2015-16 is a fifteen (15) month period rather than a twelve (12) month period.
Midpeninsula Regional Open Space District
Operating Indicators by Function
Last Ten Fiscal Years
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Other Independent Auditor’s Reports
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
of the Midpeninsula Regional Open Space District
Los Altos, California
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of the
governmental activities and each major fund of Midpeninsula Regional Open Space District (the
District) as of and for the year ended June 30, 2020, and the related notes to the financial statements,
which collectively comprise the District’s basic financial statements, and have issued our report
thereon dated December 1, 2020.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the District’s internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s
internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the District’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit attention
by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal control
over financial reporting that might be material weaknesses or significant deficiencies. Given these
limitations, during our audit we did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses. However, material weaknesses may exist that
have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the District’s financial statements are free
from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit and, accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
District’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the District’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
December 1, 2020
San Jose, California
Midpeninsula Regional Open Space District
330 Distel Circle
Los Altos, California 94022-1404
650-691-1200
info@openspace.org
openspace.org
PRINTED ON POST
CONSUMER WASTE PAPER
Rancho San Antonio Open Space Preserve by Lillian Oliveri
Photos on front cover:
Top photo: Russian Ridge Open Space Preserve by Joyce Pennell
Second row, left to right:
Monte Bello Open Space Preserve by Frank Yien;
Skyline Ridge Open Space Preserve by Melinda Horn;
Monte Bello Open Space Preserve by Jack Owicki.
DATE: December 9, 2020
MEMO TO: Board of Directors
THROUGH: Ana Ruiz, General Manager
FROM: Michael Williams, Real Property Manager
SUBJECT: Cloverdale Coastal Ranch Land Conservation Opportunity: Annual Update
_________________________________________________________________________
This memo provides an annual update to the Board of Directors (Board) on the progress of
Measure AA (MAA)#13 Cloverdale Ranch – Pursue Land Conservation Opportunities project
(Cloverdale), which was added as a new project to the Measure AA 5-Year Project List in June
2018 for Fiscal Year (FY) 2018‐19 through FY2022‐23. The purpose of the project is to gain an
understanding of the property’s conservation values, operations and maintenance needs,
community interests and concerns, and opportunities for future public access to inform a future
Board decision on the potential acquisition. Despite delays as a result of COVID-19 and the
CZU Lightning Complex fire, progress has been made on many key tasks.
Key tasks related to the Cloverdale project are grouped into the following focus areas:
1. Understanding of Existing Site Conditions: Develop a working knowledge of the
property, based upon a summary of existing site conditions, infrastructure, day to day
operation, uses, past studies, and restoration work completed by Peninsula Open Space
Trust (POST);
2. Undertake Additional Studies: Work with POST to complete additional studies as
needed for a complete understanding of Cloverdale’s operational and maintenance needs;
3. Analysis of Lake Lucerne Mutual Water Company Infrastructure: Develop an
understanding of the water company’s rights and responsibilities, infrastructure,
administration, day to day operations, and shareholder interests;
4. Community Outreach and Engagement: Undertake community outreach and
engagement to foster relationships with the local coastal community, partners, and
stakeholders and to understand community interests and concerns related to the
possibility of Cloverdale transferring to public ownership;
5. Plan for Expanding Coastal Lands Management: Develop a management plan that
addresses operational needs for existing and future Coastal preserves to coordinate
priorities for land management, restoration, and future public access; and
6. Land Division Planning: Work with POST on the development of a proposed land
division application to the County that seeks to separate Cloverdale’s grazing lands from
row crop farmlands while addressing land management, resource protection, and future
public access goals.
WORK COMPLETED IN 2020 / IDENTIFIED FOR 2021
The project requires ongoing coordination across multiple departments. Building on the progress
made on key tasks in 2019, staff continues work in 2020 with planned work in 2021 in the
following focus areas:
Existing Conditions: Updates to the Existing Conditions Report completed in 2020 have
continued as new information becomes available and POST continues to work on restoration and
infrastructure projects. In 2020, the District’s GIS and Land & Facilities staff completed a 2-day
field mapping exercise to document exact locations of existing infrastructure, making this
information available on the Atlas GIS portal and adding greatly to the on-the-ground-knowledge
of the property. Additional field days to map existing fence lines and complete minor updates to
information logged in GIS is planned for 2021.
Additional Studies: In July 2020, the District’s Natural Resources staff prepared an internal
technical memo regarding identification of likely habitat essential for four animal species found
on Cloverdale: San Francisco garter snake, California red-legged frog, American badger, and
Burrowing owl. Based on information about wildlife use of the site and the need for additional
protections of these habitat areas, one or more Conservation Management Units (CMUs) may be
warranted should the property be acquired by the District. A CMU is defined in Board Policy
4.01 Open Space Use and Management Planning Process as: “areas within preserves, or possibly
entire preserves, which because of certain criteria limiting their use, are planned and
subsequently managed primarily for preservation of natural resources and viewshed.” Informal
consultation with regulatory agencies on the possible configurations of the CMUs was deferred
due to COVID-19 and competing project priorities, and will thus be undertaken in 2021.
Completion of a botanical survey to document sensitive and rare plant species on Cloverdale was
deferred to 2021 due to shelter in place orders issued during the critical spring field study season.
Updates to the existing roads and trails inventory previously prepared by Tim Best, Consulting
Geologist, was deferred to 2021 due to COVID-19 delays and the subsequent need for the
consultant to complete other critical work disrupted by the CZU Lightning Complex fire.
Completion of the above-mentioned mapping, informal consultation, and additional studies is
necessary before undertaking rangeland management planning to support existing grazing leases
and assess the potential for expanding conservation grazing on the property. If significant
progress can be made by the second half of 2021, staff will work with POST to develop a scope
of work for a rangeland management plan. POST will contract with an independent consultant to
begin rangeland management planning.
Lake Lucerne Mutual Water Company Analysis: In 2020, staff continued to work with POST
and an independent consultant to complete an assessment of the current condition of the water
diversion infrastructure and other system components. Field work and analysis was interrupted
due to COVID-19 and the CZU Lightning Complex fires, and will soon resume under the
guidance of the District’s new Water Resources Specialist. Staff also continued to research and
collate information on the water company’s land and water rights. It is anticipated that the
assessment will be completed in 2021.
Community Outreach and Engagement: Early project outreach and engagement is focused on
expanding general understanding of the District’s mission, resource conservation goals, day-to-
day operations, and partnerships. In early 2020, District staff met informally with
representatives of the La Honda Pescadero Unified School District, Puente del Sur, Sustainable
Pescadero, and the Pescadero Municipal Advisory Committee (PMAC). District and POST staff
met onsite with each of the two Cloverdale grazing tenants and the five farming tenants to
provide an opportunity to get to know the District and our coastal mission, learn about their
operations, and answer any questions they may have about how a future land transfer from POST
to the District would affect them. Follow up meetings with tenants and introductory discussions
with adjacent neighbors and shareholders of the Lake Lucerne Mutual Water Company were
deferred due to COVID-19 and the CZU Lightning Complex fire, and will resume in 2021.
In 2020, a new information sign up/project notification link was added directly to the Coastside
Protection webpage of the District’s website. District staff gave three general interest
presentations at the virtual PMAC meetings (Wildland Fire Resiliency Program – August 2020,
Mt. Lion Research – November 2020, and Badgers and Burrowing Owl Studies – scheduled for
December 2020). Plans to host a series of informal open houses for the community to learn more
about our work in natural resource protection, water resource protection, support of local
agriculture and grazing, and public access and trails was delayed due to COVID-19. These will
be rescheduled when it is safe again to assemble in-person for public gatherings.
Coastal Management Plan: A coastal management plan is needed to plan for the expanding
operational needs of existing and proposed future coastal preserves. In 2020, staff collated
information on how the District has been meeting the Coastal Service Plan’s targets for land
management planning, resource inventories, restoration projects, agricultural and rangeland
plans, public access planning, operational facilities, staffing, housing, and support of agriculture
in tandem with the Service Plan’s land acquisition targets. Staff has formulated criteria to use
when investigating possible locations for a new coastal field office and possible interim solutions
to fill the gap until a permanent location can be found. Staff is also assessing how coastal area
operations and responses are evolving in light of COVID-19 disruptions, increased visitation,
implementation of newer programs such as the IPM and Wildland Fire Resiliency programs, and
expanded support of emergency response efforts. An outline of a coastal area management plan
is in development and anticipated for General Manager;s Office (GMO) review in early 2021.
Land Division Planning: In July 2020, the District completed a rigorous 6-month public
engagement process for a zoning and subdivision text amendment application submitted to the
County of San Mateo in July 2019. The text amendments aim to resolve inconsistencies between
County ordinances and the Coastal Act’s exemptions for land divisions by a public agency in
relation to public recreation and open space. The process included 14 public meetings with the
coastal community and review by the County’s Planning Commission. In July 2020, the San
Mateo County Board of Supervisors approved the text amendments. In September, County
Planning submitted the amendments to the California Coastal Commission for their concurrence
under state law. As of the date of this memo, the item has not yet been agendized by the Coastal
Commission. District staff is working with County Planning to ensure that the Coastal
Commission takes up this item in early 2021. The District and POST cannot submit a land
division application for Cloverdale until after the Coastal Commission’s certification of the text
amendments.
Concurrent to the tasks identified above, staff is engaged in other work related to the Cloverdale
project, including:
Funding Support: COVID-19 eliminated the 2020 State Budget request for $8 Million to
support the District’s purchase of Cloverdale, sponsored by Senator Jerry Hill and Assemblyman
Marc Berman. It also eliminated the potential for San Mateo County Measure K funding
supported by Supervisor Don Horsley. Despite unanticipated diversion of state and local funds
needed to respond to the pandemic, an unprecedented fire season, and commitment to fund
climate change solutions, staff will continue to refine funding strategies for the potential
Cloverdale acquisition. Possible funding sources continue to include grants, a much-reduced
legislative budget ask, and a possible new bond measure in 2022. If successfully obtained, these
funding sources would enable the District to reserve some of the funds identified in Measure AA
for land restoration work, support of coastal grazing lands, and future public access projects.
Regional Planning Efforts: In 2020, the Trails Subcommittees of the Peninsula Working
Group (PWG) and the Santa Cruz Mountain Stewardship Network (SCMSN) combined efforts
under their new title as the Peninsula Trails Team. The District continues to participate in their
regional trails planning meetings to coordinate and support partner agencies such as POST, San
Mateo County Parks, GGNRA, SFPUC, Coastal Conservancy, and SCMSN. In 2020, District
staff also participated in other regional transportation planning efforts that have an impact on
future public access connections to Cloverdale. Recently, District Planning staff met with
County of San Mateo Planning / Office of Sustainability staff on the Connect the Coastside Plan
to highlight the importance of access to coastal trails, parking areas, and trailheads outside the
Midcoast focus area of the proposed plan and how new connections may be made to coastal
destinations in the future. In November 2020, the District submitted comments on the Office of
Sustainability’s draft Active Transportation Plan for the unincorporated San Mateo County
highlighting transportation needs to recreational destinations in unincorporated areas.
Other District Projects Relevant to Cloverdale: Other concurrent District projects underway
that are relevant to the Cloverdale project include the Grazing Management Policy amendment,
development of an Agricultural Policy, the Wildland Fire Resiliency Program, initiation of
review of the Basic Policy, the outcomes of the recent report by the Science Advisory Panel on
conservation grazing, and implementation of the Routine Maintenance and Facilities
Improvements Program. Outcomes of these projects would contribute to future use and
management planning for Cloverdale.
The Cloverdale project timeline below has been modified from last year to accommodate a
minimum one-year extension of the schedule in response to funding and other challenges:
Next Steps:
1. Continue work to complete identified tasks
2. Provide annual updates to the Board on project status
###
Timeline for Cloverdale Land Conservation Opportunities
FY 2018-2019 FY 2019-2020 FY2020-2021 FY 2021-2022 FY 2022-2023
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Existing Conditions
Additional Studies/Site Work
Lake Lucerne Water Company Analysis
Community Outreach and Engagement
Coastal Management Plan
Land Division Planning
Use and Management Plan
CEQA compliance Proposed acquisition
DATE: December 9, 2020
MEMO TO: Board of Directors
THROUGH: Ana Ruiz, General Manager
FROM: Matt Anderson, Chief Ranger
SUBJECT: Update on the Electric Bicycle Pilot Implementation at Rancho San Antonio and
Ravenswood Preserves
_____________________________________________________________________________
During its regular meeting on August 12, 2020, the Midpeninsula Regional Open Space District
(District) Board of Directors (Board ) approved a one-year pilot program (Pilot Program) to
evaluate select paved and improved trails at Ravenswood Preserve and Rancho San Antonio
Preserve and County Park where bicycles are currently allowed for use by class 1 and 2 electric
bicycles (e-bikes). (R-20-89).
During the Pilot Program, visitors will be allowed to use e-bikes on the designated trails in
Ravenswood and Rancho San Antonio. The Pilot Program has two primary components: public
outreach and monitoring. The outreach component focuses on informing the public about the
trial nature of the pilot through onsite signage and website information. The monitoring
component will include intercept surveys and data collection related to compliance, accidents,
trail conditions, and visitor experience/complaints. Staff will launch the Pilot Program on
December 15, 2020 and run the Pilot Program through December 15, 2021.
Pilot Scope
Collect data over a 1-year period at Rancho San Antonio Preserve and County Park on
paved and improved trails and at Ravenswood Preserve along the Bay Trail to assess
public opinions and perceptions, impacts to trail user experience and safety, facility
impacts, compliance and enforcement, and level of use.
Determine approximate counts of e-bike users.
Gather public input and document visitor trail experiences.
Gather data on trail use violations and incidents.
Document trail conditions pre and post Pilot Program
Analyze data and develop findings.
Present findings to the Board for next steps and policy direction.
Methodology
Intercept Surveys
Trained seasonal staff and volunteers will conduct intercept surveys Monday through Sunday at
variable times. Surveys will be conducted for sixteen weeks, four weeks within each quarter
(season). Staff anticipate doing a total of 112 survey sessions per preserve, with each session
lasting approximately four hours. Visitors contacted for the intercept survey that wish to take the
survey online at a later time will be able to do so if they provide an email for follow up. The
surveys will document the visitor experience, including any trail use conflicts and ask
respondents about their level of support or opposition to e-bike use. Survey staff and volunteers
will contact visitors hiking, running, horseback riding (at Rancho), and riding analog bicycles
and e-bikes. They will maintain a neutral position towards the use of e-bikes.
Observation Reports
During each of the intercept survey sessions, one of the trained seasonal staff or volunteers will
make observational reports of all visitor use by activity type. These reports will be used to
provide an overall view of the percentage of trail use by activity.
Speed Observations
Rangers will measure bicycle speeds of analog bicycles and e-bikes with radar units during each
survey week. They will conduct approximately four hours of speed observations per survey week
in each preserve.
Trail Assessments
Land and Facilities staff have completed pre-pilot trail assessments of all designated trails in the
pilot program. Post-pilot assessments will be done in December 2021. The assessments include
pictures of the trail every 500 feet, a general assessment of trail condition and of trail use
impact/compaction adjacent to the trail.
Incidents and citations
A comparison will be made of all reportable incidents, accidents, enforcement activity, and
public comments received during the pilot period and over the last three years for each study
area.
Public Notice
Staff will provide public notice of the pilot through:
The District website and social media.
Signs posted in each preserve at strategic locations. Signs will make visitors aware that
the pilot is underway, that it is a trial program, include a map of designated trails and
provide a web link for more information.
Interested parties list. Emails have been sent to 119 individuals who have corresponded
with us over the last two years regarding e-bikes, e-bike access and District e-bike
policies. The email advised of the launch of the Pilot Project in December 2020 and
provided links to District web information on e-bike access and regulations.
After completion of the Pilot Program staff will summarize the results of the Pilot Project in
early 2022 and present to the Board for review. At that time, the Board will determine whether
to designate the trails included in the Pilot Project for e-bike use or discontinue e-bike use in
these preserves.
This Pilot Program is not intended to provide the data necessary for the Board to determine
whether to allow e-bike access on typical unimproved preserve trails. If adopted as part of the
FY22 action plan and budget recommendations, staff will do separate research and outreach on
potential e-bike impacts for use on unimproved trails that make up the vast majority of District
trails. This information will be presented to the Board for consideration in spring of 2022.
###
DATE: December 9, 2020
MEMO TO: Board of Directors
THROUGH: Ana Ruiz, General Manager
FROM: Sophie Christel, Management Analyst I, Project Manager
Kirk Lenington, Natural Resources Manager
SUBJECT: Progress Report on Science Advisory Panel Work
_____________________________________________________________________________
SUMMARY
The Science Advisory Panel (SAP) provides an independent science-based review of land
management topics to inform the Midpeninsula Regional Open Space District’s (District’s) open
space management decisions and practices. This memorandum updates the Board of Directors
(Board) on the work of the SAP. In addition to the Grazing topic literature review, which was
completed and presented at the November 4, 2020 Board Meeting (R-20-129), the SAP is
working on two other Board-selected topics, Recreation and Monitoring. The first phase of
research on these topics will be completed in early 2021. The Board authorized the General
Manager to approve a second phase of research upon satisfactory progress. (R-19-32). However,
staff is planning to return to the Board in early 2021 to request a slight increase in the contract
amount to account for COVID-related impacts (see Board FYI “Updated Scope and Timeline for
the Science Advisory Panel” dated August 12, 2020).
BACKGROUND
On August 28, 2019 (R-19-120), the Board awarded a contract to the San Francisco Estuary
Institute (SFEI) and subconsultant Point Blue Conservation Science (Point Blue) to form the
SAP. These institutions were described at the 2018 Board Retreat (R-18-148) and further
discussed by the Board on March 27, 2019 (R-19-32). SFEI was awarded a contract of $100,000
for the first round of research and the Board approved an additional $100,000 for a second round
to be added to the contract with the General Manager’s authorization upon satisfactory progress
and demonstrated benefits.
The initial responsibility of the SAP is to prepare summary white papers on three key topics of
interest to the District, as approved by the Board on January 8, 2020 (R-20-05):
Topic 1. How can the District effectively and efficiently monitor changes in priority plant
and animal populations at the landscape scale?
Topic 2: What are the visitation and recreational use benefits and trade-offs to fulfilling
District goals, including natural resource protection and ecologically-sensitive public
enjoyment and education?
Topic 3: Review cattle grazing benefits and impacts:
• What is the net climate impact of cattle grazing (e.g., potential increase in soil
carbon minus cattle methane emissions)? What are the options, such as grazing
regimes or dietary additives, to reduce emissions from cattle grazing?
• What are the current scientific results on the effectiveness of managing grasslands
and reducing fire risk with cattle grazing?
• How does cattle grazing as a land management strategy compare to alternatives in
achieving District goals including climate protection and what are the trade-offs?
Topic 3 is complete. Findings were presented to the Board on November 4, 2020 (R-20-129).
Topics 1 (“Monitoring”) and 2 (“Recreation”) will continue through the summer of 2021. The
General Manager will confirm authorization of the second phase in January 2021 after reviewing
the initial deliverables on the monitoring and recreation topics.
PROGRESS AND NEXT STEPS
Monitoring Topic
Point Blue is developing a monitoring framework to address Board questions raised on this topic
and to guide District monitoring efforts in the long term. Point Blue is drawing on peer-reviewed
studies and methodologies to construct a monitoring framework tailored to District lands and
needs.
Thus far, Point Blue has hosted two virtual workshops with a focus group of District staff. Staff
provided Point Blue with relevant documents regarding the District’s biological resources,
current monitoring practices, and goals. During the workshops, District staff agreed with Point
Blue on two monitoring objectives and the criteria for selecting indicator plants and animals for
monitoring.
The next steps in the first research phase are to hold a third staff workshop on December 15,
2020, at which Point Blue will present a draft list of target species. A draft monitoring
framework will be presented to the Board in early 2021. Deliverables for the second phase are
the final monitoring framework and Board presentation, projected for June 2021.
Recreation Topic
SFEI is conducting the research on this topic in two discrete phases. In Phase I, they are
investigating the benefits to people associated with recreation in open spaces. In Phase II, which
is expected to commence in March of 2021, they will investigate the ecological tradeoffs.
Specifically, regarding tradeoffs, the SAP will present the state of the peer reviewed scientific
understanding regarding the types and scale of impact on the natural environment associated
with recreational uses.
To date, SFEI has reviewed District materials related to public access and recreation and held
two workshops with a District staff focus group. They have also assessed over 30 peer-reviewed
papers for the Phase I research, focusing on benefits to both physical and mental health and well-
being from recreating in large, natural open spaces. In the workshops, SFEI and District staff
refined the research question and discussed selected scientific papers and how the findings can
apply to the District. Preliminary findings from SFEI’s literature review support the District’s
current understanding of the importance of open spaces to human health and wellness.
The next steps are the final report and presentation on the Phase I findings (benefits) to the Board
on February 24, 2021. The Phase II (tradeoffs) process will be similar to Phase I, with the
addition of a Technical Advisory Committee. The final report and Board presentation for Phase
II are expected in June or July of 2021.
Selection of Topic 4
The contract with SFEI includes a fourth topic, to be selected after the General Manager
authorizes the second phase of research. The Board would select the fourth topic on March 10,
2021 from the list previously reviewed by the Planning and Natural Resources Committee (R-19-
149).
FISCAL IMPACT
After the General Manager authorizes the second phase of research in January 2021, staff will
return to the Board to request an amendment to the contract increasing the total dollar amount by
an additional $19,000 to $219,000. The $19,000 increase over the original $200,000 Board-
approved amount is due to COVID impacts that complicated coordination efforts to complete the
initial scoping process. SFEI estimated this increase in August (see Board FYI “Updated Scope
and Timeline for the Science Advisory Panel” dated August 12, 2020).
To date, $56,609 of the $100,000 for the first phase has been spent. A total of $37,503 was spent
in Fiscal Year 2020 (FY20) and $19,106 has been spent in FY21. The FY21 budget includes
$150,000 for the SAP, which should be sufficient for work through the end of the fiscal year,
including the start of work on Topic 4. Topic 4 will likely continue into FY22. Staff will be
requesting funds in the proposed FY22 budget for the remaining contract amount.
###