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Home My Public Portal About20110810 - Agenda Packet - Board of Directors (BOD) - 11-21 I� Q Midpeninsula Regional ' Open Space District Meeting 11-21 SPECIAL AND REGULAR MEETING BOARD OF DIRECTORS MIDPENINSULA REGIONAL OPEN SPACE DISTRICT 330 Distel Circle Los Altos,California Wednesday,August 10,2011 SPECIAL MEETING OF THE MIDPENINSULA REGIONAL OPEN SPACE DIS'LRICT BEGINS AT 5:30 P.M.* REGULAR MEETING OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT BEGINS AT 7:00 P.M.* AGENDA SPECIAL MEETING 5:30 ROLL CALL SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT— CLOSED SESSION I. CONFERENCE WITH REAL PROPERTY NEGOTIATOR-California Government Code§ 54956.8 Real Property:Santa Clara County Roads& Airports Property on Congress Springs Road(State Highway Rte 9), Santa Clara County APNs 517-32-001 & 503-48-014 Agency Negotiator: Michael Williams, Real Property Manager Negotiating Party: Michael Murtder, Director County Roads and Airports; David Anderson,City Manager, City of Saratoga Under Negotiation: Price and Terms of Payment 2. CONFERENCE WITH REAL PROPERTY NEGOTIATOR—California Government Code§ 54956.8 Real Property: Santa Clara County APN 558-27-007, 558-51-005, 558-27-008 Agency Negotiator: Michael Williams, Real Property Manager Negotiating Party: Salvatore V.Carilli, Owner Under Negotiation: Price and Terms of Payment ADJOURN REGULAR MEETING 7:00 REGULAR MEETING OFTHE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT— PUBLIC SESSION REPORT ON RETURN FROM CLOSED SESSION(IF NECESSARY)(The Board shall publicly state any reportable action taken in Closed Session pursuant to Government Code Section 54957.1) ROLL CALL. 7• — .00 ORAL COMMUNICATIONS PUBLIC ADOPTION OF AGENDA 7:05 CONSENT CALENDAR 1. Approve Minutes of the District's Special and Regular Meeting—July 13, 2011 2. Approve Revised Claims Report 3. Approve Written Communications—C. Dremann,J. Williams 4. Acceptance of the Audited Basic Financial Statements for the Year Ended March 31,2011 and Memorandum on Internal Control and Requirements from Vavrinek,Trine, Day and Co. to Midpeninsula Regional Open Space District's Board of Directors—M. Foster 7:10 BOARD BUSINESS 5. Award of Contract to New World Systems for Integrated Accounting and Financial System software and implementation services—A. Duong 6. Approval to Add the Silva Commemorative Site, Staging Area,and Trails Project as a New Key Project to the District Fiscal Year 2010-1 1 Action Plan and Authorization to Enter into a Partnership Agreement with Peninsula Open Space Trust(POST)to Designate Roles and Responsibilities for Project Implementation— A. Ruiz 7. Status Report on the Implementation of the Integrated Pest Management Program and Reimbursement Plan for Slender False Brome(SFB)—E.Gartside 8. Award of Contract with Grossmann Design Group to complete the contract documents for the anticipated demolition of structures at the former Almaden Air Force Station on Mount Umunhum—G.Coony 9. Approval of Merit Award for the Board Appointees:General Manager,General Counsel and District Controller—Board Appointee Evaluation Ad Hoc Committee INFORMATIONAL REPORTS—Reports on eompensable meetings attended. Brief reports or announcements concerning activities of District Directors and staff,opportunity to refer public or Board questions to staff for factual information;request staff to report back to the Board on a matter at a future meeting;or direct staff to place a matter on a future agenda. A. Committee Reports B. Staff Reports C. Director Reports ADJOURNMENT * Times are estimated and items may appear earlier or later than listed.Agenda is subject to change of order. TO ADDRESS THE BOARD: The President will invite public comment on agenda items at the time each item is considered by the Board of Directors. You may address the Board concerning other matters during Oral Communications. Each speaker will ordinarily be limited to three minutes. Alternately,you may comment to the Board by a written communication, which the Board appreciates. Consent Calendar:All items on the Consent Calendar may be approved without discussion by one motion. Board members, the General Manager, and members of the public may request that an item be removed from the Consent Calendar during consideration of the Consent Calendar. ill 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 POSTINC OF ACENDA 1,Michelle Radcliffe,District Clerk for the Midpeninsula Regional Open Space District(MROSD),declare that the foregoing amended agenda for the Special and Regular Meeting of the MROSD Board ot'Direr tors was posted and available tbr review on August 5,2011,at the Administrative Offices of MROSD,330 Distel Circle,Los Altos California,94022. The agenda is also available on the District's web site at http://www.openspace.org. Signed this 5"day of August,at Los Altos,California. Q-D.9;4QL District Clerk August 5,2011 Claims No. 11-13 Meeting 11-21 Date 8/10/11 Midpeninsula Regional Open Space District # Amount Name Description 15653 $19,161.00 IMR Contractors Dyer Garage Roof Structure Replacement 15654 $16,858.83 Condor Country Consulting Biological Consulting Services For The Big Dipper Roads Restoration Project 15655 $14,712.22 Schafer Consulting Consulting Services-Integrated Accounting&Financial Software Selection, Evaluation&Implementation 15656 $13,215.07 Geocon Consultants Waste Dump Evaluation For Rapley Ranch Property 15657 $12,063.94 Page&Turnbull Architectural&Engineering Services-Folger Ranch House Remodel 15658 $12,012.00 California JPIA Pollution Liability Insurance-Three Year Premium 15659 $5,392.26 Sol's Mobile Service Vehicle Maintenance&Repairs 15660 $4,679.44 Metro Mobile Communications Three Radio Control Stations/Portable Radio Batteries 15661 $3,780.00 Vavrinek,Trine, Day&Company Auditing Services For Fiscal Year 2010/2011 15662 $3,200.00 Biological Control Of Weeds Hairy Weevils For Use In Controlling Star Thistle 15663 $3,150.00 Walter Sedgwick Reimbursement-Slender False Brome Treatment 15664 $3,137.59 Howard Rome Martin&Ridley Legal Services-Gullicksen Litigation 15665 $3,003.84 Office Team Office Temp-Real Property Administrative Assistant 15666 $2,966.57 La Plana Consulting Consulting Services For Strategic Plan 15667 $2,597.90 Ron's Transmission Vehicle Repairs&Service 15668 $2,238.75 Concern Employee Assistance Program Quarterly Fee 15669 $2,114.74 Gardenland Power Equipment Field Supplies/Multi Chain Sharpening/Chainsaw Parts/Pole Pruner Repair/Brushcutter Parts/Power Pruner Chain/Pole Saw Repair 15670 $2,094.00 San Mateo County CEQA Filing Fee For Folger Ranch House Remodel 15671 $2,000.00 Neofunds By Neopost Replenish Postage Meter-AO 15672 $1,751.34 The Ferguson Group Legislative Consultant-Lobbyist For Mt. Umunhum 15673 $1,626.78 Office Depot Office Supplies/Break Room Supplies/Wall Calendar! Geocaching Event Supplies/Copy Paper/White Board Supplies /Paper Shredder/File Folders/Mailing Labels/Notebooks 15674 $1,578.67 Hertz Equipment Rental Equipment Rental-Tractor For SAO Parking Lot/Excavator For Road Work At Blackberry Hill 15675 $1,500.00 Lindsay Wasserman Emerson Deposit-Catering For Staff Recognition Event 15676 $1,462.50 Glasser Kolly Labor Relations Consultant Services-Labor Negotiations/Labor Relations 15677 $1,372.62 Sears Batteries For Drills/Icemaker For FFO 15678 $1,240.71 CMK Automotive Vehicle Maintenance&Repairs 15679 $1,234.05 John Shelton Culvert For Woods Road At Sierra Azul 15680 $1,019.19 Costco Break Room Supplies/Geocaching Event Supplies/Field Supplies 15681 $802.50 Langan Engineering&Environmental Geotechnical Evaluation&Report-Folger House Remodel Services 15682 $802.03 Continuing Education Of The Bar Legal Updates-California Easement&Boundries/California Municipal Law Handbook 15683 $700.00 Aaron's Septic Tank Service Pumping Services-RSA&DHF 15684 $675.00 Design Concepts Graphic Design Services-Geocache Booklet, PDF Web Version, Sticker&Graphics For Website 15685 $650.00 Diane West-Bourke Docent&Volunteer Training-Redwood&Fir Forests 15686 $600.00 Spectrum Resources FCC Licenses 15687 $583.80 Clean Harbors Environmental Services Disposal Of Oil, Gas&Paint 15688 $545.00 "1 North American Title Company Escrow Fee-Land Acquisition 15689 $513.62 Accountemps Accounting Temp 15690 $493.66 Bruce Barton Pump Service Repair Pressure Pump At SAO&Rental Residence 15691 $450.96 Monster Mechanical HVAC Maintenance-AO 15692 $408.90 Orchard Supply Hardware Field Supplies/Smoke Detectors/Pruning Saw/Paint Supplies For Ravenswood Observation Deck/RSA Janitorial Supplies! Plumbing Supplies For Trough At Windy Hill/DHF Supplies Page 1 of 2 i Claims No. 11-13 Meeting 11-21 Date 8/10/11 Midpeninsula Regional Open Space District # Amount Name Description 15693 $386.44 Beck's Shoes Uniform Expense-Fire Boots 15694 $376.04 United Site Services Sanitation Services-Restroom&Sink Rental For Geocaching Event 15695 $351.39 Golden State Portables Restroom&Sink Rental For East Bay Regional Park District Land Tour 15696 $252.00 Shulman, Rogers, Gandal, Pordy& Legal Services-Telecommunications Advice For District Radio Ecker Frequency 15697 $249.31 Tadco Supply Janitorial Supplies 15698 $225.07 California Water Service Company Water Service-AO 15699 $200.59 Ergoworks Ergonomic Equipment 15700 $199.88 G&K Services Shop Towel Service-SFO&FFO 15701 $199.61 Weiss Associates Water Supply Evaluation-Beatty Property 15702 $194.23 Forestry Suppliers Field Supplies-Snake Tongs For SFO 15703 $164.68 Peterson Tractor Tractor Supplies 15704 $158.08 Bay Area Air Quality Management Fuel Tank Permit-FFO District 15705 $154.00 Liebert Cassidy Whitmore Legal Services-Personnel 15706 $153,00 Palo Alto Medical Foundation Employee Medical Services 15707 $140.00 San Mateo County Health Department Tick Testing&Membrane Filter Tests 15708 $139.00 City Of Los Altos Three False Burglar Alarm Fees-AO 15709 $125.47 Stevens Creek Quarry Base Rock For Culverts At Woods Road/Base Rock For Pad At FFO Shop 15710 $99.94 Cal-Line Equipment Chipper Supplies 15711 $85.76 Mission Valley Ford Filters For Maintenance Truck 15712 $78.86 Barron Park Supply Plumbing Supplies-Replacement Faucet For RSACP 15713 $78.72 Royal Brass Hose Assembly For Excavator Repair 15714 $75.52 Hsieh, Benny Reimbursement-Office Supplies 15715 $71.34 Pearson Buick GMC Maintenance Truck Supplies 15716 $71.00 Terminix Pest Control-AO 15717 $65.00 Northern Energy Propane Tank Rental-FFO 15718 $50,00 '2 Santa Clara County Clerk Recorders Notice Of Exemption Filing Fee For Bureau Of Land Management Office Purchase 15719 $41.08 Cascade Fire Equipment Company Switches For Fire Pumpers 15720 $36.37 Lampson Tractor Tractor Supplies 15721 $28.85 Recognition Specialties Name Badges For Staff 15722 $26.07 Williams, Mike Reimbursement-Business Related Meal 15723 $9.86 United Parcel Service Parcel Shipping Total $152,876.64 `1 Urgent check issued 7/29/11 `2 Urgent check issued 814/11 Page 2 of 2 R Claims No. 11-13 f Meeting 11-21 Date 8/10/11 Revised Midpeninsula Regional Open Space District # Amount Name Description 15653 $19,161.00 IMR Contractors Dyer Garage Roof Structure Replacement 15654 $16,858.83 Condor Country Consulting Biological Consulting Services For The Big Dipper Roads Restoration Project 15655 $14,712,22 Schafer Consulting Consulting Services-Integrated Accounting&Financial Software Selection, Evaluation& Implementation 15656 $13,215.07 Geocon Consultants Waste Dump Evaluation For Rapley Ranch Property 15657 $12,063.94 Page&Turnbull Architectural&Engineering Services-Folger Ranch House Remodel 15658 $12,012.00 California JPIA Pollution Liability Insurance-Three Year Premium 15659 $5,392.26 Sol's Mobile Service Vehicle Maintenance&Repairs 15660 $4,679.44 Metro Mobile Communications Three Radio Control Stations/Portable Radio Batteries 15661 $3,780.00 Vavrinek,Trine,Day&Company Auditing Services For Fiscal Year 2010/2011 15662 $3,200.00 Biological Control Of Weeds Hairy Weevils For Use In Controlling Star Thistle 15663 $3,150.00 Walter Sedgwick Reimbursement-Slender False Brome Treatment 15664 $3,137.59 Howard Rome Martin&Ridley Legal Services-Gullicksen Litigation 15665 $3,003.84 Office Team Office Temp-Real Property Administrative Assistant 15666 $2,966.57 La Piana Consulting Consulting Services For Strategic Plan 15667 $2,597.90 Ron's Transmission Vehicle Repairs&Service 15668 $2,238.75 Concern Employee Assistance Program Quarterly Fee 15669 $2,114.74 Gardenland Power Equipment Field Supplies/Multi Chain Sharpening/Chainsaw Parts/Pole Pruner Repair/Brushcutter Parts/Power Pruner Chain/Pole Saw Repair 15670 $2,094.00 San Mateo County CEQA Filing Fee For Folger Ranch House Remodel 15671 $2,000.00 Neofunds By Neopost Replenish Postage Meter-AO 15672 $1,751.34 The Ferguson Group Legislative Consultant-Lobbyist For Mt. Umunhum 15673 $1,626.78 Office Depot Office Supplies/Break Room Supplies/Wall Calendar/ Geocaching Event Supplies/Copy Paper/White Board Supplies /Paper Shredder/File Folders/Mailing Labels/Notebooks 15674 $1,578.67 Hertz Equipment Rental Equipment Rental-Tractor For SAO Parking Lot/Excavator For Road Work At Blackberry Hill 15675 $1,500.00 Lindsay Wasserman Emerson Deposit-Catering For Staff Recognition Event 15676 $1,462.50 Glasser Kolly Labor Relations Consultant Services-Labor Negotiations/Labor Relations 15677 $1,372.62 Sears Batteries For Drills/Icemaker For FFO 15678 $1,240.71 CMK Automotive Vehicle Maintenance&Repairs 15679 $1,234.05 John Shelton Culvert For Woods Road At Sierra Azul 15680 $1,019,19 Costco Break Room Supplies/Geocaching Event Supplies/Field Supplies 15681 $802.50 Langan Engineering&Environmental Geotechnical Evaluation&Report-Folger House Remodel Services 15682 $802.03 Continuing Education Of The Bar Legal Updates-California Easement&Boundries/California Municipal Law Handbook 15683 $700.00 Aaron's Septic Tank Service Pumping Services-RSA&DHF 15684 $675.00 Design Concepts Graphic Design Services-Geocache Booklet, PDF Web Version, Sticker&Graphics For Website 15685 $650.00 Diane West-Bourke Docent&Volunteer Training-Redwood&Fir Forests 15686 $600.00 Spectrum Resources FCC Licenses 15687 $583,80 Clean Harbors Environmental Services Disposal Of Oil,Gas&Paint 15688 $545.00 "1 North American Title Company Escrow Fee-Land Acquisition 15689 $513.62 Accountemps Accounting Temp 15690 $493.66 Bruce Barton Pump Service Repair Pressure Pump At SAO&Rental Residence 15691 $450.96 Monster Mechanical HVAC Maintenance-AO 15692 $408.90 Orchard Supply Hardware Field Supplies/Smoke Detectors/Pruning Saw/Paint Supplies For Ravenswood Observation Deck/RSA Janitorial Supplies/ Plumbing Supplies For Trough At Windy Hill/DHF Supplies Page 1 of 3 Claims No. 11-13 Meeting 11-21 Date 8/10/11 Revised Midpeninsula Regional Open Space District # Amount Name Description 15693 $386.44 Beck's Shoes Uniform Expense-Fire Boots 15694 $376.04 United Site Services Sanitation Services-Restroom&Sink Rental For Geocaching Event 15695 $351.39 Golden State Portables Restroom&Sink Rental For East Bay Regional Park District Land Tour 15696 $252.00 Shulman, Rogers,Gandal, Pordy& Legal Services-Telecommunications Advice For District Radio Ecker Frequency 15697 $249.31 Tadco Supply Janitorial Supplies 15698 $225.07 California Water Service Company Water Service-AO 15699 $200.59 Ergoworks Ergonomic Equipment 15700 $199.88 G&K Services Shop Towel Service-SFO&FFO 15701 $199.61 Weiss Associates Water Supply Evaluation-Beatty Property 15702 $194.23 Forestry Suppliers Field Supplies-Snake Tongs For SFO 15703 $164.68 Peterson Tractor Tractor Supplies 15704 $158,08 Bay Area Air Quality Management Fuel Tank Permit-FFO District 15705 $154.00 Liebert Cassidy Whitmore Legal Services-Personnel 15706 $153.00 Palo Alto Medical Foundation Employee Medical Services 15707 $140.00 San Mateo County Health Department Tick Testing&Membrane Filter Tests 15708 $139.00 City Of Los Altos Three False Burglar Alarm Fees-AO 15709 $125.47 Stevens Creek Quarry Base Rock For Culverts At Woods Road/Base Rock For Pad At FFO Shop 15710 $99.94 Cal-Line Equipment Chipper Supplies 15711 $85.76 Mission Valley Ford Filters For Maintenance Truck 15712 $78.86 Barron Park Supply Plumbing Supplies-Replacement Faucet For RSACP 15713 $78.72 Royal Brass Hose Assembly For Excavator Repair 15714 $75.52 Hsieh, Benny Reimbursement-Office Supplies 15715 $71.34 Pearson Buick GMC Maintenance Truck Supplies 15716 $71.00 Terminix Pest Control-AO 15717 $65.00 Northern Energy Propane Tank Rental-FFO 15718 $50.00 '2 Santa Clara County Clerk Recorders Notice Of Exemption Filing Fee For Bureau Of Land Management Office Purchase 15719 $41.08 Cascade Fire Equipment Company Switches For Fire Pumpers 15720 $36.37 Lampson Tractor Tractor Supplies 15721 $28.85 Recognition Specialties Name Badges For Staff 15722 $26.07 Williams, Mike Reimbursement-Business Related Meal 15723 $9.86 United Parcel Service Parcel Shipping 15724 R $4,241.10 Hertz Equipment Rental Equipment Rental-Excavator For Parking Lot Construction At SAO 15725 R $1,539.54 Home Depot Field Supplies/Lumber&Supplies For Earthquake Storage At AO/DHF Supplies/SFO Shop Supplies/Paint For Ravenswood Observation Deck Repairs/Road Patching Supplies For RSA 15726 R $1,346.32 Tadco Supply Janitorial Supplies 15727 R $530.74 San Jose Water Company Water Service-RSA 15728 R $370.56 Recology South Bay Dumpster Service-RSA 15729 R $185.43 Petty Cash Office Supplies/Parking&Mileage/Car Wash/Field Supplies 15730 R $177.85 Fleet Services Fuel 15731 R $168.46 Fitzsimons, Renee Reimbursement- Summer Nature Day Supplies/Taxidermy Services-Dusky Footed Woodrat 15732 R $133.32 LFR An ARCADIS Company Engineer&Design Services-ECDM Staging Area Project 15733 R $120.90 Tottori, Lynn Reimbursement-Mileage 15734 R $95.69 O'Reilly Auto Parts Vehicle Supplies-Battery For Maintenance Truck 15735 R $67.46 McKowan, Paul Reimbursement-Volunteer Supplies Page 2 of 3 Claims No. 11-13 Meeting 11-21 Date 8/10/11 Revised Midpeninsula Regional Open Space District # Amount Name Description 15736 R $65.00 Northern Energy, Inc. Propane Tank Rental-Rental Residence Total $161,919.01 *1 Urgent check issued 7/29111 *2 Urgent check issued 8/4/11 Page 3 of 3 i Mid peninsula Regional p g Open Space District r � II To: Board of Directors From: Stephen E. Abbors rrr�� For S.E.A. Date: August 1.0, 2011 Re: Written Communications i 1 i ;' �� '' i I I I I i �-�`� Ii i Michelle Radcliffe From: Craig Dremann - Redwood City Seed Company[Craig@astreet.com] Sent: Sunday, May 29, 2011 10:35 AM To: Michelle Radcliffe; Sue Schectman; BOARD Cc: craig@astreet.com; Managers;jaythor@well.com Subject: DEMAND LETTER: Cease all grassland/wildflower field projects Dear Ms. Radcliffe, The Board, Attorney, Management, and WMA, DEMAND LETTER: IMMEDIATELY CEASE ALL GRASSLAND MANAGEMENT PROJECTS IN ALL PRESERVES until full EIRs completed. Only a week ago, the Board sent me a letter about the herbicide spraying at the Russian Ridge preserve that I have been objecting to this spring, conducted without any CEQA EIR written, or even any basic environmental safety features to protect the resources for that project, and now a person is dead. Your Board president wrote only a week ago: "You've expressed concerns about herbicide application at Russian Ridge. Staff has recently provided you with extensive information and maps describing the District's careful management practices when applying herbicides on target invasive plants species. We will welcome your input when further CEQA review of vegetation management commences." It is true, I received a map of the Harding grass infestation, but no maps of the Italian thistle, the yellow star thistle or the wild oat infestations, which were all spread from the five fires. For example, the Italian thistle was only a path-side weed on the 1996 Russian Ridge weed map, now covers 20%of the north end of that preserve, like the picture I took a few weeks ago at http://www.ecoseeds.com/ital_thistle_2011.JPG Here is a list of items related to the Russian Ridge herbicide spraying, that I still have not received from your District: 1.) No maps of the Russian Ridge preserve, showing where the herbicide has already been applied, and/or where herbicide is intending to be applied later this year. 2.) No maps showing the Russian Ridge preserve, of the current ranges or the locations of the wildflower field and species. 3.) No maps of Russian Ridge, showing the locations and extent of the wildflower fields and/or species prior to the CAL FIRE burns (i.e. pre-1997). 4.) No spray damage mitigation plan. Since the native wildflower seedlings had already germinated at Russian Ridge when the spraying started this spring, and this preserve is the best example of non-serpentine wildflowers in Northern California, I did not get any copies of the mitigation plan for avoiding damage to those seedlings, that could potentially be killed by the herbicide that is being used for the project, Wildflowers at Russian Ridge have already been killed this year, when herbicides hit the best buttercup patch in the area-- the big buttercup patch that is located at the trail crossroads about 200 feet from the Skyline lookout parking lot,just to the left of where I took the picture at http://www.ecoseeds.com/russian_2011.jpg i 5.) No details of any before-and-after vegetation monitoring and measurements that will be conducted to monitor the herbicide project this year at Russian Ridge. I also have not found any evidence of CEQA consultation with the State Department of Fish and Game regarding either the burn projects on any of the preserves since 1996, or any of the grassland and wildflower field herbicide projects.. I did find, that if the Board thinks that it does not have to write a full EIR because it is going to claim a Categorical Exemption for the Russian Ridge herbicide project, that legal theory is prohibited under the State law for herbicides in the native grassland habitats and wildflower field areas. And I did find the 1988 McQueen decision about Mount Umunhum, that the District lost in the California Court of Appeals, and the court ruled against you for not doing your EIRs in that case, and for painting the CEQA exemptions much too broadly. The 1996-2011 Mid-pen grassland and wildflower resource preserves lack of EIRs for projects and painting the exemptions too broadly, is so much like the McQueen case---it is like, as Yogi Berra said, deja vu all over again. You are assuring me in your letter last week, that a CEQA review of your grassland and wildflower field herbicide and burn projects will be conducted sometime in the future, date unknown. However, that is the complete opposite of how CEQA is supposed to work--as explained to me by the attorney at the Governor's Office of Planning and Research, who is in charge of CEQA. What you were supposed to do, is hold scoping meeting with the public, do the draft EIR, offer the public alternatives to the herbicide or burn projects--including a no project alternative--and allow the public to review and comment on your proposed projects, BEFORE you start spraying herbicides or setting fires, and adding more damages and one death so far, to the massive damages already done by the five fires. It seems that your District wants to run the CEQA process backwards? To any reasonable person, that seems to be what you letter is saying. Your District wants to do the projects without any public input or any environmental reviews, then you want to write the EIRs at some date in the future--months, years, or over a decade after the projects have been done? And you want to do all of this, without having done any before-and-after project vegetation measurement data, never knowing what the results were to the environment, or to have any record for the public, of the catastrophic damages that were done to the resources? I am requesting that you IMMEDIATELY CEASE all projects within all of the grassland habitats on all of your preserves, take a deep breath, and begin the CEQA EIR process for each project on each preserve that contains grassland habitats. I am also requesting, that you survey the grassland areas of all of the District's preserves, and precisely map the locations of the grasslands and wildflower resources and record a copy at the County Recorder's office in both San Mateo and Santa Clara County. Then, I am requesting that the Board passes a Resolution based on that map, officially adopting those grassland and wildflower areas as "Particularly Sensitive Environments of Critical Concern", like what is described in Title 14 of the California Code of Regulations, Section 15300.2, for example. And I am requesting that you pay for an independent botanical review, to be conducted this year, of Russian Ridge and any other Preserve that has been burned by the District since 1996, and compare the before-and-after effects of the burns, and 2 produce a public document that would outline what the estimated costs would be, to bring those preserves back to their pre- burn conditions. Mid-pen needs to admit their mistakes, and set up a mitigation program backed up with an EIR, to start the repair of the massive fifteen year's worth of fire damages, and get back on track with CEQA, before anyone else dies. Sincerely, Craig Dremann 3 August IU, 2OI1 � Mr. [rai8Dnennann Redwood Seed Company Re: Russian Ridge Open Space Preserve Dear Mr. Drernann: � The District's Board of Directors has received your email correspondence dated May 29, 2011.As the Board stated in its May 11, 2011 response to you,the Board acknowledges and respects the sincere interest and concerns you have expressed about vegetation management of District grasslands, particularly those at Russian Ridge Open Space Preserve.We informed you that the District will be � undertaking further CEQA review of vegetation management in District preserves. The Board has � directed staff to further analyze and monitor conditions at Russian Ridge, including undertaking additional CEQA review.The Board will consider all of your input during that process. � You have also been provided with extensive information and maps regarding vegetation management � and the District's careful management practices when applying pesticides on target invasive plants species. Contractors are qualified to identify native vegetation in the field and to target invasive species. � � You have also expressed concerns about herbicide application at Russian Ridge. Staff has recently provided you with extensive information and maps regarding Russian Ridge. Staff has completed the � District's 3O1I vegetation monitoring at Russian Ridge and isanalyzing the results. VVe will be glad to share them with you when completed. � We will welcome your input when further CEQA review of vegetation management commences. Constructive input will help the District in its future assessment of vegetation management. We feel that your input will be best addressed in a public and transparent process designed to elicit views from all interested parties and agencies. We regret you are dissatisfied with the Board's previous correspondence. We hope you will participate constructively with us as we move forward. Sincerely, Larry Hassett, Board President K4idpeninsu|a Regional Open Space District Michelle Radcliffe From: Michelle Radcliffe Sent: Friday, July 22, 2011 5:13 AM To: David Sanguinetti Cc: Kate Drayson Subject: FW: 07/21/2011 - stumpjumper85@gmail.com -Contact Board Good morning - The Board received this Written Response last night. I have tickled for a Board response at the August 10th Board meeting. Please let me know if you have any questions. Thanks! Michelle From: stumpjumper85@gmail.com [stumpjumper85@gmail.com] Sent: Thursday, July 21, 2011 10:00 PM To: BOARD; Clerk; Vicky Gou; General Information Subject: 07/21/2011 - stumpjumper85agmail.com - Contact Board First Name: Justin Last Name: Williams Email Address: stumpbumper85(@gmail.com Ward/Location: Saratoga Comments: Hello, I just wanted to write a quick note to put, from a trail user's perspective, how out of order MidPen's priorities when it comes to patrolling/enforcement of preserve rules/regulations. Tonight, 7/21/2011, 1 was riding my mountain bike at Saratoga Gap with a group of friends.A ranger was strategically positioned to take us by surprise with radar(something, by the way, absolutely unheard of nearly anywhere else mountain bikes are allowed). However, when clocked slight over the posted speed limit, he was very polite and simply asked us to 'slow it down.' Fine. Fair enough. It's better than the last time when she was crouched down behind a sign, trying to stay hidden... I mean, really? OK, moving on to my real point. The issue here is that less than one mile down the trail, three people were smoking cigarettes or pot on top of a rock, surrounded by hundreds of acres of dried grass, on a 80 degree day. Somehow Radaring Mountain Bikers > Patrolling & Preventing REAL threats to the Open Space we all know and love?? How about patrolling and preventing this type of real danger instead of reading mountain biking message boards and showing up to radar when group rides are known to be taking place? If these guys were out to prevent real hazards and PROTECT THE OPEN SPACE, they just might be worth the average(tax payer paid) MidPen salary of$107,000. Just food for thought. Thanks for your time. i GENERAL MANAGER Stephen F Abbors Regional OpenSpace midpeninsUla Regional Open Space District BOARD OF DIRECTORS Pete Siemens YOI"iko Ki,�himoto Jed t, Curt Riff e Nerve tte°Nariko I_arly li ersett ryeily i'mIs August 10, 2011 I Mr. Craig Dremann Redwood Seed Company Craig@astreet.com Re: Russian Ridge Open Space Preserve Dear Mr. Dremann: The District's Board of Directors has received your email correspondence dated May 29, 2011. As the Board stated in its May 11, 2011 response to you,the Board acknowledges and respects the sincere interest and concerns you have expressed about vegetation management of District grasslands, particularly those at Russian Ridge Open Space Preserve.We informed you that the District will be undertaking further CEQA review of vegetation management in District preserves. The Board has directed staff to further analyze and monitor conditions at Russian Ridge, including undertaking additional CEQA review.The Board will consider all of your input during that process. You have also been provided with extensive information and maps regarding vegetation management and the District's careful management practices when applying pesticides on target invasive plants species. Contractors are qualified to identify native vegetation in the field and to target invasive species. You have also expressed concerns about herbicide application at Russian Ridge. Staff has recently provided you with extensive information and maps regarding Russian Ridge. Staff has completed the District's 2011 vegetation monitoring at Russian Ridge and is analyzing the results. We will be glad to share them with you when completed. We will welcome your input when further CEQA review of vegetation management commences. Constructive input will help the District in its future assessment of vegetation management. We feel that your input will be best addressed in a public and transparent process designed to elicit views from all interested parties and agencies. We regret you are dissatisfied with the Board's previous correspondence. We hope you will participate constructively with us as we move forward. Sincerely, Larry H ssett, Board President Midpeninsula Regional Open Space District e; 330 Distel circle Los Altos,CA 94022 650 691 i7oo -6So 691048L, www openspace org 54� G N;RA[4A NA(-,P OpenSpace Dear Mr.Williams, Thank you for your email of July 21, 2011regarding enforcement activities in District Preserves. To put the enforcement activities in context, it is helpful to consider the District's mission which has three components: 1. To acquire and preserve a regional greenbelt of open space land in perpetuity; 2. To protect and restore the natural environment; and 3. To provide opportunities for ecologically sensitive public enjoyment and education. The District's patrol and enforcement activities are designed to support the second and third components of the District's mission. From an environmental and habitat protection perspective, District Rangers are tasked with enforcing regulations to protect the natural resources and wildlife habitats contained within the preserves. This includes, but is not limited to, keeping dogs on leash, ensuring bicycle speeds do not exceed 15 miles per hour, protecting plants from being harmed or removed, preventing activities which could cause erosion or other habitat damage, and protecting wildlife from being disturbed by preserve visitors. In addition to natural resource protection, the Rangers conduct enforcement activities to ensure the safety of all preserve users. With respect to bicyclists,the 15 mile per hour speed limit is enforced to prevent cyclists from hitting hikers and horseback riders and to prevent horses from being spooked by cyclists which can result in serious injuries for both equestrians and cyclists. With regards to your particular concern, smoking during the fire season, or anytime of the year, is of great concern and a violation of District regulations. Rangers are trained and expected to make contact when they observe a smoking violation. Had the Ranger you encountered on July 21in the Saratoga Gap Open Space Preserve been aware that individuals were smoking in the preserve, he would have contacted them and taken the appropriate enforcement action. Although District Rangers do their best to identify preserve violations, due to the over 59,000 acres of land they must patrol, they inevitably cannot observe all violators. Volunteer Trail Patrol and all District visitors can assist with enforcement of District regulations by notifying Rangers of observed violations or concerns. Thank you for your interest in the District. Sincerely, F Larry sett, President Mid¢eninsula Regional Open Space District Board of Directors GU F.RAL MANAGI..R 12 f?�i I:3 i Ope 5 c ji i SuI . [r. r;i :);? ' uFi.�i �.�'.�t �;a<r�UFWRECroAs Dear Mr.Williams, Thank you for your email of July 21, 2011regarding enforcement activities in District Preserves. To put the enforcement activities in context, it is helpful to consider the District's mission which has three components: 1. To acquire and preserve a regional greenbelt of open space land in perpetuity; 2. To protect and restore the natural environment; and 3. To provide opportunities for ecologically sensitive public enjoyment and education. The District's patrol and enforcement activities are designed to support the second and third components of the District's mission. From an environmental and habitat protection perspective, District Rangers are tasked with enforcing regulations to protect the natural resources and wildlife habitats contained within the preserves. This includes, but is not limited to, keeping dogs on leash, ensuring bicycle speeds do not exceed 15 miles per hour, protecting plants from being harmed or removed, preventing activities which could cause erosion or other habitat damage, and protecting wildlife from being disturbed by preserve visitors. In addition to natural resource protection,the Rangers conduct enforcement activities to ensure the safety of all preserve users. With respect to bicyclists,the 15 mile per hour speed limit is enforced to prevent cyclists from hitting hikers and horseback riders and to prevent horses from ?ooked by cyclists which can result in serious injuries for both equestrians and cyclists. With regards to your particular concern, smoking during the fire season, or anytime of the year, is of great concern and a violation of District regulations. Rangers are trained and expected to make contact when they observe a smoking violation. Had the Ranger you encountered on July 21in the Saratoga Gap Open Space Preserve been aware that individuals were smoking in the preserve, he would have contacted them and taken the appropriate enforcement action. Although District Rangers do their best to identify preserve violations,due to the over 59,000 acres of land they must patrol,they inevitably cannot observe all violators. Volunteer Trail Patrol and all District visitors can assist with enforcement of District regulations b notifying g g Y fY Rangers of observed violations or concerns. Thank you for your interest in the District. Sincerely, Larry Hassett, President Midpeninsula Regional Open Space District Board of Directors For S.E.A. Midpeninsula Regional Open Space District R-11-78 Meeting 11-21 August 10, 2011 AGENDA ITEM 4 AGENDA ITEM Acceptance of the Audited Basic Financial Statements for the Year Ended March 31, 2011 and Memorandum on Internal Control and Requirements from Vavrinek, Trine, Day& Co. to Midpeninsula Regional Open Space District's Board of Directors CONTROLLER'S RECOMMENDATIONS Accept the audited Basic Financial Statements and required communications from Vavrinek, Trine, Day & Co. regarding the District's audited financial statements for fiscal year ending March 31, 2011. SUMMARY In the opinion of the independent auditor Vavrinek, Trine, Day & Co., the District's financial statements fairly represent the financial position of the governmental activities and each major fund of the District as of March 31, 2011. DISCUSSION Vavrinek, Trine, Day& Co. conducted the audit in accordance with generally accepted auditing standards, which require obtaining reasonable assurance that the financial statements are free of material misstatement. An audit includes examining sample evidence supporting the amounts and disclosures in the financial statements and assesses the accounting principles used and the estimates made by District management. The District's basic financial statements consist of three components: (1) government-wide financial statements; (2) fund financial statements; and (3) notes to the basic financial statements. This is the fourth year that the District has presented its financial statements under the reporting model required by Governmental Accounting Standards Board Statement No. 34 (GASB 34), Basic Financial Statements and Management Discussion and Analysis for State and Local Governments. The auditors made no recommendations for improvement in internal controls. R-I 1-78 Page 2 FISCAL IMPACT There will be no fiscal impact from either preparation or acceptance of the Audited Basic Financial Statement since the services stated above were approved as part of the Administration Department's FY2011-12 budget. PUBLIC NOTICE Notice was provided pursuant to the Brown Act. No additional notice is necessary. CEQA COMPLIANCE No compliance is required as this action is not a project under CEQA. NEXT STEPS None Attachment(s) 1. Memorandum on Internal Control and Required Communications 2. Financial Report Prepared by: Mike Foster, Controller Contact.person: Same as above a!rinek,We,Day & Co.,LLP Ptiblk km.jnluints&fonsulwts VALUE THE DIFFERENCE To the Governing Board of tile Midpeninsula Regional Open Space District We have audited the financial statements of the governmental activities. each major fund. and the aggregate :_,_, _-a remaining fund information of Midpeninsula Regional Open Space District for the year ended March 31. 2011. and have issued our report thereon dated June 29. 2011. Professional standards require that we provide you with the follov,ing information related to our audit. Our Responsibilih, under U.S.Generally-Accepted Auditing Standards As stated in our engagement ICttCI'OLII'responsibility. as described by professional standards. is to express opinions about whether the financial statements prepared by manage ment v+ith your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our-audit of the financial statements does not relieve you or management Of)'Out-responsibilities. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to management in L our meeting about planning matters on June 29. 2011. Significant Audit Findings (MalilafiveAsplects ol'Accozoiting Practice Management has the responsibility for selection and use of appropriate accounting policies. The significant accounting policies used by Midpeninsula Regional Open Space District are described in Note I to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during, the current fiscal year. We noted no transactions entered into by Midpeninsula Regional Open Space District during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recounized in the financial statements in a different period than when the transaction occurred. AcCOLIntill,(.1 estimates are all integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the financial statements was the estimated useful lives of the various classes of depreciable capital assets. The disclosures in the financial statements are neutral, consistent, and clear. Certain financial statement disclosures are particularly sensitive because Of their significance to financial statement users. D�fficidlies Eiicomaere(l hi 11e;Jbi-mbig iheAttilif We encountered no significant difficulties in dealing ti\ith management in performing and completing our audit. C:orrectc>d ctncf(,;7tt'orrec7crd sVisstotc inerrts Professional standards require tis to aceunnilate all knmN n and likcly misstatements identified during the audit. iN i and communicate them to the appropriate level of management. 'There were no n those that are trt tal. other that t � material uncorrected misstatements during the\ear. Disit�rrc�erucrnts with .11i mIgemenl For purposes of this letter, professional standards define a disagreement with management as a financial accounting. reporting, or auditing matter. vyhether or not resolved to our satisfaction. that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. t9ancts can c:m Rep-escnlurions We have requested certain representations from management that are irnchtded in the management representation letter- C`or7strltcrtions n itl7 011ter Independent Accorrrnlerrrts In some cases. management may decide to consult with other accountants about auditing and accounting matters. similar to obtaining a "second opinion" on certain situations. It' a consultation involves application of an accounting principle to the governmental unit's financial statements or a determination of[lie type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge. there were no such consultations lvith other aceonntaints. 0thel•Anelil T*hOings or Lssnes We generally, discuss a xaricty of matters. including the application of accounting principles and auditing standards, with nnanagcment each year prior to retention as the Nlidpeninsula Regional Open Space District's auditors. Fioxvever. these discussions occurred in the: normal course of our professional relationship and our responses were not a condition to our retention. This inftxrmation is intended solely for the tise of,omerning board and nnunaI-Yement Of 'lidpeninsuia Regional Open Space District and is not intended to be and should not be used by anyone other than these: specified parties. Sincercl\. Vavrintk1 ft'tz, Pay Lop L-1 p Palo Alto. California .fine 29. 201 1 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT C S TRI C ANNUAL FINANCIAL REPORT YEAR ENDED MARCH 31, 2011 i i MIDPENINSULA REGIONAL OPEN SPACE DISTRICT TABLE OF CONTENTS 12 MARCH 31, 011 INDEPENDENT AUDITOR'S REPORT 1 � 'MANAGEMENT S DISCUSSION AND ANALYSIS 2 BASIC FINANCIAL STATEMENTS Statement of Net Assets 8 Statement of Activities 9 Balance Sheet—Governmental Funds 10 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Assets 11 Statement of Revenues, Expenditures,and Changes in Fund Balances—Governmental Funds 12 Reconciliation of the Statement of Revenues Expenditures and Net Change in Fund Balances— p g Total Governmental Funds with the Statement of Activities 13 NOTES TO FINANCIAL STATEMENTS 14 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Revenues,Expenditures and Changes in Fund Balances—Budget and Actual 34 INDEPENDENT AUDITOR'S REPORT Board of Directors Midpeninsula Regional Open Space District Los Altos,California We have audited the accompanying financial statements of the governmental activities, and each major fund of the Midpeninsula Regional Open Space District,as of March 31, 2011,and for the year then ended,as listed in the Table of Contents. These financial statements are the responsibility of the management of the District. Our toexpressn inion on these financial statements based on our audit. responsibilityis a o P We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining on a test basis,evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management,as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion,such financial statements present fairly in all material respects,the financial position of the governmental activities and each major fund of the Midpeninsula Regional Open Space District as of March 31, 2011,and the respective changes in the financial position thereof for the year then ended in conformity with generally accepted accounting principles in the United States of America. The Management's Discussion and Analysis is required by the Governmental Accounting Standards Board,but is not part of the basic financial statements. We have applied certain limited procedures to this information, principally inquiries of management regarding the methods of measurement and presentation of this information, but we did not audit this information and we express no opinion on it. Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The required supplemental information listed in the table of contents is presented for purposes of additional analysis and is not a required part of the basic financial statements of Midpeninsula Regional Open Space District. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and,in our opinion,is fairly stated in all material respects in relations to the basic financial statements taken as a whole. VCR yr t nt kl Pay e C.4. UP Palo Alto,California June 29,2011 1 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS MARCH 31, 2011 This section of the Midpeninsula Regional Open Space District's(the District)basic financial statements presents a narrative overview and analysis of the District's financial activities for the fiscal year ended March 31, 2011. We encourage readers to consider the information presented here in conjunction with our basic financial statements. FINANCIAL HIGHLIGHTS Property tax revenue declined slightly in fiscal year 2011,by 1.3%,as the assessed valuation of secured and unsecured property within the District decreased for the first time since the District was formed in 1973.Total assessed valuation dropped by 0.5%in the District portion of Santa Clara County,by 0.1%in San Mateo County,and by 0.4%overall. In addition,tax refunds arising from county-wide downward reassessments prompted Santa Clara County to suspend allocation of supplemental(SB813)taxes between July 2010 and March 2011. This suspension drove a$187,859 reduction in fiscal year 2011 tax revenue.The District normally receives approximately two-thirds of its tax revenue from Santa Clara County and one-third from San Mateo County. Property tax revenue increased by 4.9%in fiscal year 2010. Based on information from the county assessors,the District is expecting that tax revenue in fiscal year 2012 will increase by approximately 1.4%including the resumption of allocations of supplemental (SB813)taxes in Santa Clara County. Partially offsetting the decrease in tax revenue,the District received$286,222 under a new five year agreement with Santa Clara County to manage the developed portion of Rancho San Antonio County Park. This level of annual revenue is expected to continue. The District added$10.0 million of land and associated structures in fiscal year 2011. The four largest purchases, totaling$8.7 million,were additions to the Bear Creek Redwoods, Sierra Azul,Russian Ridge and Monte Bello Open Space Preserves. Given the State budget crisis,grants for land acquisition were scarce in fiscal year 2011,with none received by the District. However,the District succeeded in obtaining a$1.25 million contribution from Santa Clara County to cover half the cost of the additions to the Monte Bello Preserve. Net of grants and gifts,the District used $8.8 million of cash for land purchases in fiscal year 2011,down from$13.8 million in fiscal year 2010.The District added$17.5 million and$28.0 million of land and associated structures in fiscal year 2010 and 2009,respectively. District expenditures were again within the annual budget. Some non-land capital projects were deferred due to the tax revenue shortfall. Excluding the purchase price of new properties and debt service,total District spending, $15.4 million,was $3.3 million,or 17.6%,below budget and up 7.4%over fiscal year 2010. Delayed non-land capital spending accounted for the majority of the budget variance. Due largely to the continuing growth in employee benefit costs,expenditures for salaries and benefits exceeded 40%of District tax revenue for the first time. Employee benefit costs increased by 13%and were 37.8%of salary expenses,compared to 36.3%in fiscal year 2010 and 35.4%in fiscal year 2009.This unfavorable trend is expected to continue in fiscal years 2012 and 2013. 2 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS MARCH 31, 2011 The assets of the District exceeded liabilities at the close of the 2011 fiscal year by$266.1 million(net assets). Of this amount,$236.5 million is invested in capital assets,net of related debt, $1.4 million is restricted by the terms of existing District debt,and the remaining$28.1 million is unrestricted. About 44%of the unrestricted balance is projected to be used for land acquisition in fiscal year 2012 as the approved budget for fiscal year 2012 forecasts land purchases totaling$13.5 million,or$12.5 million net of associated grant income. The District's total net assets increased by$9.1 million in fiscal year 2011,as general and program revenues exceeded program expenditures. Program expenditures were within budget. i The District's total long-term debt obligations declined by$0.7 million to$123.0 million. In November 2010,the District issued an$850,000 five-year note in connection with a land purchase. Following the completion of fiscal year 2011,in May 2011,the District Financing Authority sold$20.5 million of thirty-year bonds. These bonds,structured as a lease and rated AA by Fitch and AA-by Standard& Poor's were sold at a total interest cost of 5.60%. Largely due to this debt issue District debt service is g Y expected to increase by$1.8 million,or 22.7%,in fiscal year 2012. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the District's basic financial statements.The District's basic financial statements consist of three components: (1) government-wide financial statements; (2) fund financial statements and(3)notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. 3 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS MARCH 31, 2011 Statement of Net Assets Presented below is a condensed statement of net assets for the past two years: Years ended: March 31,2011 March 31,2010 Increase(Decrease) Assets Current assets $ 30,749,199 $ 32,690,558 $ (1,941,359) Retiree Health Trust 1,513,561 1,666,561 (153,000) Capital assets 359,566,233 348,762,622 10,803,611 Total assets 391,828,993 383,119,741 8,709,252 Liabilities Accounts payable and other liabilities 2,713,472 2,489,540 223,932 Long-term debt 123,019,978 123,670,744 (650,766) Total liabilities 125,733,450 126,160,284 (426,834) Net Assets Invested in capital assets, net of related debt 236,546,255 225,091,878 11,454,377 Restricted 1,407,548 1,417,195 (9,647) Unrestricted 28,141,740 30,450,384 (2,308,644) Total net assets $ 266,095,543 $ 256,959,457 $ 9,136,086 Analysis of Net Assets The District's assets at the close of this fiscal year are$266.1 million more than its liabilities. This is the result of the District's inventory of capital assets. The net investment in capital assets,$236.5 million,consists primarily of the District's almost 60,000 acres of land in 26 open space preserves protected for public enjoyment. The investment in capital assets is offset by long-term debt obligations on promissory notes and lease revenue bonds. The net assets subject to external restrictions are composed of$1.4 million for debt service. Unrestricted net assets are used to finance additional land acquisition projects. The District's budget for fiscal year 2012 includes $12.5 million for land acquisitions,net of related grant income. 4 i MIDPENINSULA REGIONAL OPEN SPACE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS MARCH 31, 2011 Changes in Net Assets Presented below is an analysis of the District's revenues and expenses over the past two years: March 31,2011 March 31,2010 Increase %Increase Revenues Program revenue Changes for services $ 1,241,465 $ 911,139 $ 330,326 36.3 Grants and contributions 1,392,868 658,880 733,988 111.4 General revenue General property tax 27,268,652 27,630,594 (361,942) (1.3) Investment income 191,515 80,453 111,062 138.0 Other 430,168 2,474,038 (2,043,870) (82.6) Total Revenues 30,524,668 31,755,104 (1,230,436) (3.9) Expenses 21,388,582 20,557,465 831,117 4.0 Change in net assets $ 9,136,086 $ 11,197,639 $ (2,061,553) (18.4) Analysis of Change in Net Assets For the year ended March 31,2011,the District's net assets increased by$9.1 million. The increase in overall expenses was due to planned increases in salaries,benefits,services and supplies. Salaries and benefits represented 52%of expenses compared to 49%in fiscal year 2010. Salaries and benefits increased 9.8%over the prior fiscal year. This increase was principally due to a filling of vacant positions and an increase in the ratio of benefit cost to salaries from 36.3%to 37.8%.The filling of vacant positions allowed a significant reduction in outside service costs and total service and supply expense declined by 15.3%. Interest charges decreased slightly due to the impact of scheduled principal repayments. Program revenues include rental income,grants,cash donations and,beginning in fiscal year 2011,park management fees from Santa Clara County. Grant income is mostly tied to acquisitions of specific parcels of land. Given the state budget crisis,state grant funds for land acquisition were scarce in fiscal year 2011,with none obtained. However,the District succeeded in obtaining a$1.25 million contribution from Santa Clara County to fund half of the purchase price of an addition to the Monte Bello Open Space Preserve.The 36.3% increase in service revenue was mostly derived from the$286,222 payment from Santa Clara County for District management of the developed portion of Rancho San Antonio Park. Rental income increased by 4.8%. Tax revenue declined by 1.3%in fiscal year 2011 compared to growth of 4.9%in fiscal year 2010 due to downgrades in assessed valuations of both secured and unsecured property. Total tax revenue from Santa Clara County dropped by 2.0%and was essentially unchanged in San Mateo County. Half of the reduction from Santa Clara County was due to the suspension of allocation of supplemental (SB813)taxes from July 2010 through March 2011. Other revenue decreased by 82.6%as gifts of land were$16,585 in fiscal year 2011 compared to $2.26 million in fiscal year 2010. The amount of land gifts varies significantly from year to year. 5 I I MIDPENINSULA REGIONAL OPEN SPACE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS MARCH 31, 2011 GENERAL FUND The General Fund balance sheet includes all District accounts except for debt and capital assets. At March 31, 2011,the General Fund had a fund balance of$26.9 million,down$2.0 million from the prior year-end. This decrease was the result of spending cash to complete land purchases. All but$0.7 million of this fund balance is unreserved and designated for future land acquisitions,including$12.5 million budgeted for land purchases in fiscal year 2012,net of associated grant funding. DEBT SERVICE FUND n1 asset in the Debt Service Fund 1.4 million is a reserve fund required b the terms of the District's Theo $ Y q Y 2004 Revenue Bonds. The funds are held by the bond trustee and will be used to make the final debt service payment on this issue. The District receives the interest earned on this reserve fund,and this is shown on the Statement of Revenues, Expenditures and Changes in Fund Balance--Governmental Funds. Total debt service in fiscal year 2011 was$8.09 million,consisting of$3.30 million of principal and$4.79 million of interest. CAPITAL ASSETS As of March 31, 2011,the District's investment in capital assets is$359.6 million, net of accumulated depreciation. The District added$9.6 million of land in fiscal year 2011,representing 89%of the total increase in capital assets,and has committed$2.8 million of its fund balance for various uncompleted capital projects included in construction in progress. Additional information on the District's capital assets can be found in Note 4 in the Notes to the Basic Financial Statements. LONG-TERM DEBT As of March 31, 2011,the District's long-term debt includes$2.5 million of subordinated notes issued to sellers in District land purchase transactions, $91.3 million of Authority revenue bonds sold to the public in 1999,2004, and 2007,$3.9 million of Refunding Promissory Notes sold to the public in 2005,and$25.3 million of accreted interest,unamortized premium and unamortized loss on refunding. The Authority bonds and Refunding notes were originally rated AAA by Moody's and Standard& Poor's based on municipal bond insurance policies purchased from Ambac Assurance Corporation and MBIA. Due to loss projections from mortgage-related risk exposures,these insurance companies no longer carry AAA ratings. In April 2011, Moody's withdrew its rating of Ambac. Moody's currently rates MBIA Ba3. Standard& Poors's current ratings are D for Ambac and B for MBIA. The District's current stand-alone credit rating is AA from Fitch and AA-from Standard& Poor's. Additional information on the District's long-term obligations can be found in Note 6 in the Notes to the Basic Financial Statements. BUDGETARY PERFORMANCE The Budgetary Comparison Schedule—General Fund shows how the District financial results compared to the original budget adopted in March 2010 and the final budget adjusted in December 2010. Total District revenue in fiscal year 2011 was within one percent of budget.Tax revenue was 0.9%below the final budget,mostly due to suspension of supplemental(SB813)revenue in Santa Clara County. Grant income was 11.0%below budget due to delays in completing certain preserve development projects. Interest income was 6 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT MANAGEMENT'S DISCUSSION AND ANALYSIS MARCH 31, 2011 41.8%under budget due to the continued low level of interest rates and because the budget includes interest income from the Debt Service Fund. Other income significantly exceeded budget due to revenue from the new five year agreement with Santa Clara County to manage the developed portion of Rancho San Antonio Park. Excluding land purchase transactions and debt service,fiscal year 2011 expenditures were approximately$3.3 million,or 17.6%,below the final budget. Salaries and benefits were$0.2 million,or 1.7%,below budget, services and supplies cost$0.9 million,or 25.0%,less than budget,non-land capital spending was$1.6 million,or 49.7%,under budget,and land acquisition expenses were$0.6 million,or 86.1%under budget. This overall operating expense budget performance, 82%of budget,was below the normal range of recent years(89%to 94% of budget).The largest single variance item was the delay in completing the$1.4 million capital project to upgrade the District radio system;this project is expected to complete in fiscal year 2012. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET The Board of Directors adopted the District's budget for fiscal year 2012 on March 23, 2011. This budget assumes very low growth in property tax revenue,about 1.4%,due to some additional downward reassessments and slow turnover of residential property in both Santa Clara and San Mateo County portions of the District.The budget projects spending$12.5 million of cash for new land. Debt service requirements are budgeted at$9.7 million,including debt service on the$20.5 million of 2011 Revenue Bonds sold in May 2011. If all revenues and expenditures occur as budgeted and including the$20.0 million in net proceeds from sale of the 2011 Revenue Bonds,the District's cash position would increase by$8.1 million in fiscal year 2012. The District is currently pursuing potential land acquisition projects which would use up all bond proceeds and undesignated reserves within three years. ADDITIONAL FINANCIAL INFORMATION i This financial report is designed to provide a general overview of the District's finances for all those with an interest in the District's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the District Clerk, 330 Distel Circle,Los Altos,CA 94022. 7 i I MIDPENINSULA REGIONAL OPEN SPACE DISTRICT STATEMENT OF NET ASSETS MARCH 31, 2011 ASSETS Cash and investments(Note 2) $ 20,331,553 Receivables Taxes 6,585,000 Interest 55,148 Deposit 1,054,547 Prepaid expense 5,338 Restricted cash and investments(Note 2 1,407,548 Note receivable(Note 3) 217,192 Deferred charges 1,092,873 Net OPEB Asset(Note 9) 1,513,561 Capital assets(Note 4) Nondepreciable Land 345,388,885 Construction in progress 2,800,845 Depreciable,net of accumulated depreciation Structures and improvements 6,356,212 Infrastructure 2,958,480 Equipment 737,851 Vehicles 1,323,960 Total assets 391,828,993 LIABILITIES Accounts payable 763,260 Accrued liabilities 319,525 Deposits payable 61,035 Interest payable 433,968 Compensated absences(Note 5) Due in one year 23,234 Due in more than one year 1,112,450 Long-term debt(Note 6) Due within one year 4,831,964 Due in more than one year 118,188,014 Total liabilities 125,733,450 NET ASSETS(Note 11) Invested in capital assets,net of related debt 236,546,255 Restricted for debt service 1,407,548 Unrestricted 28,141,740 Total net assets $ 266,095,543 See accompanying notes to financial statements. 8 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT STATEMENT OF ACTIVITIES FOR THE YEAR ENDED MARCH 31, 2011 Program expenses: General government: Salaries $ 7,898,301 Benefits 3,188,093 Directors 27,600 Services and supplies 2,653,402 Depreciation 882,461 Interest 6,738,725 Total program expenses 21,388,582 Program revenues: Charges for services 1,241,465 Capital grants and operating contributions 1,392,868 Land donation 16,585 Total program revenues 2,650,918 Net program expenses 18,737,664 General revenues: Property tax increment 27,268,652 Investment income 293,959 Miscellaneous 311,139 Total general revenues 27,873,750 Changes in net assets 9,136,086 Net assets-beginning of the year 256,959,457 Net assets-end of the year $266,095,543 See accompanying notes to fmancial statements. 9 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT GOVERNMENTAL FUNDS BALANCE SHEET MARCH 31, 2011 Debt Total General Service Governmental Fund Fund Funds ASSETS Cash and investments(Note 2) $20,331,553 $ - $ 20,331,553 Receivables Taxes 6,585,000 - 6,585,000 Interest 55,148 - 55,148 Deposit 1,054,547 - 1,054,547 Prepaid expense 5,338 - 5,338 Restricted cash and investments(Note 2) - 1,407,548 1,407,548 Note receivable(Note 3) 217,192 - 217,192 Total Assets $28,248,778 $ 1,407,548 $ 29,656,326 LIABILITIES Accounts payable $ 763,260 $ - $ 763,260 Accrued liabilities 319,525 - 319,525 Deposits payable 61,035 - 61,035 Deferred revenue(Note 3) 217,192 - 217,192 Total liabilities 1,361,012 - 1,361,012 FUND BALANCES Restricted Debt service - 1,407,548 1,407,548 Encumbrances 731,498 - 731,498 Unassigned 26,156,268 - 26,156,268 Total fund balance 26,887,766 1,407,548 28,295,314 TOTAL LIABILITIES AND FUND BALANCE $28,248,778 $ 1,407,548 $ 29,656,326 See accompanying notes to financial statements. 10 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT RECONCILIATION OF THE GOVERNMENTAL FUNDS—BALANCE SHEET WITH THE STATEMENT OF NET ASSETS MARCH 31, 2011 Total fund balances reported on the governmental funds balance sheet $ 28,295,314 Amounts reported for Governmental Activities in the Statement of Net Assets are different from those reported in the Governmental funds above because of the following: CAPITAL ASSETS Capital assets used in Governmental Activities are not current assets or financial resources and therefore are not reported in the Governmental funds. 359,566,233 NOTES RECEIVABLE Notes receivables are not available to pay for current period expenditures and, therefore,are deferred on the modified accrual basis in the balance sheet of government funds 217,192 DEFERRED CHARGES Bond issuance costs are expended in the Governmental funds when paid,however, they are capitalized and amortized over the life of the corresponding bonds for purposes of the Statement of Net Assets 1,092,873 LONG-TERM LIABILITIES The liabilities below are not due and payable in the current period and therefore are not reported in the Governmental funds: Long-term debt (123,019,978) Accrued interest payable (433,968) Compensated absences (1,135,684) NET OPEB ASSET Net OPEB Asset is not available to pay for current period expenditures and,therefore, is not recognized in the Governmental funds but deferred on the Statement of Net Assets 1,513,561 NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 266,095,543 See accompanying notes to fmancial statements. 11 i MIDPENINSULA REGIONAL OPEN SPACE DISTRICT GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FOR THE YEAR ENDED MARCH 31, 2011 Debt General Service Fund Fund Total REVENUES Property tax $ 27,268,652 $ - $ 27,268,652 Grant income 1,392,868 - 1,392,868 Investment income 191,515 102,444 293,959 Property management(Note 7) 955,243 - 955,243 Other income 550,615 - 550,615 Land donation 16,585 - 16,585 Total Revenues 30,375,478 102,444 30,477,922 EXPENDITURES Current Salaries 7,898,301 - 7,898,301 Benefits 3,011,859 - 3,011,859 Directors 27,600 - 27,600 Services and supplies 2,744,234 - 2,744,234 Capital outlay New land purchases 9,845,756 - 9,845,756 Land acquisition support costs 91,726 - 91,726 Structures and improvements 1,196,634 - 1,196,634 Equipment 276,032 - 276,032 Vehicles 185,094 - 185,094 Debt service Principal - 3,300,681 3,300,681 Interest and fiscal charges - 4,785,900 4,785,900 Total Expenditures 25,277,236 8,086,581 33,363,817 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES 5,098,242 (7,984,137) (2,885,895) OTHER FINANCING SOURCES(USES): Other Sources 850,000 - 850,000 Transfers in - 7,974,490 7,974,490 Transfers out (7,974,490) - (7,974,490) Total Other Financing Sources(Uses) (7,124,490) 7,974,490 850,000 NET CHANGE IN FUND BALANCES (2,026,248) (9,647) (2,035,895) Fund Balance at beginning of year 28,914,014 1,417,195 30,331,209 Fund Balance at end of year $ 26,887,766 $ 1,407,548 $ 28,295,314 See accompanying notes to financial statements. 12 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES—TOTAL GOVERNMENTAL FUNDS WITH THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED MARCH 31, 2011 I The schedule below reconciles the net changes in fund balances reported on the Governmental Funds Statements of Revenues,Expenditures and Changes in Fund Balance,which measures only changes in current assets and current liabilities on the modified accrual basis,with the change in net assets of Governmental Activities reported in the Statement of Activities,which is prepared on the full accrual basis. Net change in fund balances-total Governmental funds $ (2,035,895) Amounts reported for governmental activities in the Statement of Activities are different because of the following: CAPITAL ASSET TRANSACTIONS Governmental funds report capital outlays as expenditures. However,in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense. The capital outlay expenditures are therefore added back to fund balance 11,686,072 Depreciation expense is deducted from the fund balance (882,461) NOTES RECEIVABLE Repayment of notes receivable is reported as revenue in Governmental funds,and thus, has the effect of increasing fund balance because current financial resources have been received. However,the loan payments reduce the receivables in the Statement of Net Assets and do not generate revenue in the Statement of Activities. (9,263) LONG-TERM DEBT PROCEEDS AND PAYMENTS Repayment of bond principal is an expenditure in the Governmental funds,but in the Statement of Net Assets the repayment reduces long-term liabilities. Accreted Interest on capital appreciation bonds (1,536,651) Repayment of debt principal is added back to fund balance 3,300,681 Change in accrued interest payable (35,437) Amortization of bond premium 56,009 Amortization of loss on refunding (319,273) Amortization of deferred amounts (61,464) A promissory note was issued to finance the acquisition of capital assets. This amount is recorded as revenue in the Governmental Funds but is recorded as long-term debt and does not impact the Statement of Activities (850,000) ACCRUAL OF NON-CURRENT ITEMS The amounts below included in the Statement of Activities do not provide or(require) the use of current financial resources and therefore are not reported as revenue or expenditures in Governmental funds(net change): Compensated absences (23,232) Net OPEB Asset (153,000) CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 9,136,086 See accompanying notes to financial statements. 13 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT i NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. 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. Basis of Presentation The District's Basic Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States of America. These Statements require that the financial statements described below be presented. Government-wide Statements. The Statement of Net Assets and the Statement of Activities display information about the primary government(the District) and its component unit. These statements include the financial activities of the overall District government. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues,and other nonexchange transactions. The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the District's governmental activities. Direct expenses are those that are specifically associated with a program or function and,therefore,are clearly identifiable to a particular function. Program revenues include(a)charges paid by the recipients of goods or services offered by the programs,(b)grants and contributions that are restricted to meeting the operational needs of a particular program and(c) fees,grants 14 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues,including all taxes,are presented as general revenues. Fund Financial Statements. The fund financial statements provide information about the District's funds, including blended component units. The emphasis of fund financial statements is on major individual governmental funds,each of which is displayed in a separate column. Major Funds Major funds are defined as funds that have either assets,liabilities,revenues or expenditures/expenses equal to ten percent of their fund-type total and five percent of the grand total. The General Fund is always a major fund. The District may also select other funds it believes should be presented as major funds. The District reported all of its funds as major governmental funds in the accompanying financial statements: General Fund. The General Fund is the general operating fund of the District. It is used to account for all financial resources. The major revenue sources for this Fund are property taxes,grant revenues and interest income. Expenditures are made for public safety and other operating expenditures. Debt Service Fund. The Debt Service Fund is used to account for accumulation of resources for, and the payment of long-term debt principal,interest and related costs. Resources are provided by General Fund transfers and interest income on unspent funds. Basis of Accounting I The government-wide financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred,regardless of when the related cash flows take place. Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method,revenues are recognized when measurable and available. The District considers all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after year—end. Expenditures are recorded when the related fund liability is incurred,except for principal and interest on long-term debt,claims and judgments, and compensated absences,which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources. Non-exchange transactions,in which the District gives or receives value without directly receiving or giving equal value in exchange,include taxes,grants,entitlements,and donations. On the accrual basis,revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements,and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. The District may fund programs with a combination of cost-reimbursement grants and general revenues. Thus, both restricted and unrestricted net assets may be available to finance program expenditures. The District's policy is to first apply restricted grant resources to such programs,followed by general revenues, if necessary. 15 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 Budgets and Budgetary Accounting The District's Board of Directors adopts an annual operating budget for the District as a whole,which includes both its General and Debt Service Funds on or before March 31, for the ensuing fiscal year. The Board of Directors may amend the budget by resolution during the fiscal year. The legal level of control,the level at which expenditures may not legally exceed the budget,is at the category level. Encumbrances are recorded as restrictions of fund balance since they do not constitute expenditures or liabilities. All unencumbered appropriations lapse at the end of the fiscal year. 1 1 Use of Estimates The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly,actual results could differ from those estimates. Compensated Absences The total amount of liability for compensated absences is reflected in the basic financial statements. See Note 5 for additional information regarding compensated absences. Cash and Cash Equivalents For purposes of the statement of cash flows the District defines cash and cash equivalents to include all cash and temporary investments with original maturities of three months or less from the date of acquisition. Property Taxes Property taxes are levied by Santa Clara and San Mateo Counties and a portion is distributed to the District. The District recognizes property taxes as revenue in the fiscal year of levy. Debt Discount and Issuance Costs Debt discount and issuance costs are capitalized as an offset to long-term debt and amortized using the effective interest method over the life of the related debt. Issuance costs for the District's tax-exempt commercial paper short-term borrowings are expensed as incurred. NOTE 2—CASH AND INVESTMENTS Policies The District and its fiscal agents invest in individual investments and in investment pools. Individual investments are evidenced by specific identifiable pieces of paper called securities instruments,or by an electronic entry registering the owner in the records of the institution issuing the security,called the book entry system. In order to maximize security,the District employs the Trust Department of a bank as the custodian of all District managed investments,regardless of their form. 16 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 California Law requires banks and savings and loan institutions to pledge government securities with a market value of 110%of the District's cash on deposit for first trust deed mortgage notes with a value of 150%of the District's cash on deposit as collateral for these deposits. Under California Law this collateral is held in an investment pool by an independent financial institution in the District's name and places the District ahead of general creditors of the institution pledging the collateral. The District's investments are carried at fair value,as required by generally accepted accounting principles. The District adjusts the carrying value of its investments to reflect their fair value at each fiscal year end,and it includes the effects of these adjustments in income for that fiscal year. In the District's case,fair value equals fair market value, since all District's investments are readily marketable. Classification Cash and investments are classified in the financial statements as shown below,based on whether or not their use is restricted. 2011 Cash and cash equivalents,available for District operation $ 194,409 Investments,available for District operation 20,137,144 Restricted cash and investments 1,407,548 Total Cash and Investments $ 21,739,101 The District's cash and investments consist of the following at March 31: 2011 Cash on hand $ 800 Deposits 193,609 Investments 21,544,692 Total Cash and Investments $ 21,739,101 17 I MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 Investments Authorized by the California Government Code and the District's Investment Policy The District's Investment Policy and the California Government Code allow the District to invest in the following,provided the credit ratings of the issuers are acceptable to the District and approved percentages and maturities are not exceeded. The table below also identifies certain provisions of the California Government Code or the District's Investment Policy where it is more restrictive: Maximum Minimum Maximum Maximum Remaining Credit Percentage Investment Authorized Investment Type Maturity Quality of Portfolio In One Issuer US Treasury Obligations 5 years N/A No Limit No Limit US Agency Securities 5 years N/A No Limit No Limit California Local Agency Investment Fund Upon Demand N/A $40 million per g Y p I account Negotiable Certificates of Deposit 5 years N/A 30% No Limit Bankers Acceptances 180 days N/A 40% 30% 25°/ 10% Commercial Pap Y Paper 270 days A o Repurchase Agreements 1 year N/A No Limit No Limit Reverse Repurchase Agreements 92 days N/A 20% No Limit Medium Term Notes 5 years A 30% No Limit Money Market and Mutual Funds N/A Highest Category 20% 10% Investments Authorized by Debt Agreements The District must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the District fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with District resolutions,bond indentures or State statutes. At March 31, 2011,the bond indentures provided no advice about investing the bonds and contain no limitations for maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type. 18 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Normally,the longer the maturity of an investment,the greater the sensitivity of its fair value changes in market interest rates. The District generally manages its interest rate risk by holding investments to maturity. Information about the sensitivity of the fair values of the District's investments(including investments held by bond trustees)to market interest rate fluctuations is provided by the following table that shows the distribution of the District's investments by maturity or earliest call date: 12 Months More than Investment Type or less 25 Months Total Held by District California Local Agency Investment Fund $ 2,244,309 $ - $ 2,244,309 - 17,892,835 n Tara Count Pool 17,892,835 Sa to C y Held by Trustees US Federal Agency Securities - 1,405,573 1,405,573 Money Market Mutual Funds(US Securities) 1,975 - 1,975 Total Investments $ 20,139,119 $ 1,405,573 $ 21,544,692 The District is a participant in the Local Agency Investment Fund(LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The District reports its investment in LAIF at the fair value amount provided by LAIF,which is the same as the value of the pool share. The balance is available for withdrawal on demand,and is based on the accounting records maintained by LAIF,which are recorded on an amortized cost basis. Included in LAIF's investment portfolio are collateralized mortgage obligations,mortgage-backed securities,other asset-backed securities,loans to certain state funds,and floating rate securities issued by federal agencies,government-sponsored enterprises,United States Treasury Notes and Bills,and corporations. At March 31, 2011,these investments had an average maturity date of less than one year. The fair value of the District's investment in the pool is reported at amounts based on the District's pro-rata share of the fair value provided by the County Treasurer for the entire portfolio(in relation to the amortized cost of the portfolio). The balance available for withdrawal is based on the accounting records maintained by the County Treasurer,which is recorded on the amortized costs basis. Santa Clara County Pool funds were available for withdrawal on demand and had an average maturity date of less than one year. I I 19 i MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 Credit Risk Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the actual rating as of March 31,2011, for each investment type as provided by Moody's investment rating system. Investment Type Not Rated Aaa Total Held by Trustees US Federal Agency Securities $ - $ 1,405,573 $ 1,405,573 Money Market Mutual Funds ('US Securities) - 1,975 1,975 California Local Agency Investment Fund 2,244,309 - 2,244,309 Santa Clara County Pool 17,892,835 - 17,892,835 Total Investments $20,137,144 $ 1,407,548 $21,544,692 Concentration Risk Investments in any one issuer,other than US Treasury securities,mutual funds,and external investment pools, that represent 5 percent or more of total District portfolio Entity-wide investments,are as follows at March 31, 2011: Investments Reporting Type Investment Amount Percent of Portfolio Federal Home Loan Mortgage Corp US Federal Agency Securities $ 1,405,573 6.5% Restricted Cash and Investments The District has the following restrictions on cash and investments: Restricted for Debt Service. The District has moneys held by Bank of New York as trustee,pledged to the payment or security of its outstanding bond issues. All transactions associated with debt serve are administered by the Bank. The cash and investment amounts were$1,407,548 as of March 31,2011. NOTE 3—NOTES RECEIVABLE On December 17, 1997,the District sold the title to and possession of a 50-year fee determinable estate 10-acre parcel near the Skyline Ridge Open Space Preserve. The District financed the purchase in the amount of $288,800 over 25 years at a rate of 10%per annum. Monthly principal and interest payments of$2,634 are due on the I"of each month and late if not paid by the 10t',with the final payment scheduled December 1,2022. The outstanding balance at March 31, 2011 was$217,192. 20 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 NOTE 4—CAPITAL ASSETS Capital assets are recorded at the time of purchase and are capitalized at cost. The District capitalizes as part of the asset cost,any significant interest incurred during the construction phase of the asset. Depreciation is provided using the straight-line method for assets other than land. Estimated useful fives are as follows: Structures and improvements 10 to 30 years Infrastructure 30 to 40 years Equipment 5 to 20 years Vehicles 10 to 20 years Changes in capital assets accounts are summarized below: Balance at Additions& Retirements& Balance at March 31,2010 Transfers Transfers March 31,2011 Capital assets not being depreciated Land $ 335,785,573 $ 10,033,312 $ (430,000) $ 345,388,885 Construction in progress 2,218,316 1,342,517 (759,988) 2,800,845 Total capital assets not being depreciated 338,003,889 11,375,829 (1,189,988) 348,189,730 Capital assets being depreciated Structure and improvements 11,813,519 1,048,219 - 12,861,738 Infrastructure 3,758,134 141,767 - 3,899,901 Equipment 1,255,113 125,151 (77,655) 1,302,609 Vehicles 2,434,836 185,094 (153,438) 2,466,492 Total capital assets being depreciated 19,261,602 1,500,231 (231,093) 20,530,740 Less accumulated depreciation for Structure and improvements 6,135,557 369,969 - 6,505,526 Infrastructure 835,563 105,858 - 941,421 Equipment 569,298 73,115 (77,655) 5649758 Vehicles 962,451 333,519 (153,438) 1,142,532 Total accumulated depreciation 8,502,869 882,461 (231,093) 9,154,237 Net captial assets being depreciated 10,758,733 617,770 - 11,376,503 Total capital assets,net $ 348,762,622 $ 11,9939599 $(1,189,988) $ 359,566,233 Construction in progress represents construction of structure,equipment and improvements and infrastructure not yet placed in service at March 31,2011. 21 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 At March 31,2011,the District had made commitments of approximately$2.106 million for construction work, legal and consulting fees,and purchases of supplies and equipment. NOTE 5—ACCURED COMPENSATED ABSENCES In accordance with the District's memorandum of understanding with various employee groups,employees accrue fifteen days of vacation during the first nine years of service,twenty days between service years 10 and fourteen,twenty-one days between service years fifteen and nineteen,twenty-three days between service years twenty and twenty-four,and twenty-five days after twenty-five years of service. An employee may accumulate vacation time earned to a maximum of two times the amount of his/her annual vacation time. Full-time employees accrue twelve days of sick leave annually from the date of employment. An employee may accumulate sick leave time earned on an unlimited basis. Upon resignation,separation from service,or retirement from District employment,workers in good standing with ten or more years of District employment shall receive a cash payment of the equivalent cash value of accrued sick leave as follows: Percentage of equivalent cash value of accrued Years of Employment sick leave 10-15 20% 16-20 25% 21 or more 30% An employee hired before August 9,2006,who retires from the District shall receive a cash payment of the percentage of equivalent cash value or accrued sick leave based on years of employment as described above, and apply the remainder of the equivalent cash value toward his/her cost of retiree medical plan premiums and/or other qualified medical expenses. Upon retirement,the amount qualified and designated for retiree medical costs shall be deposited in the Retiree Health Savings(RHS)plan,set up by the District. The cost for maintaining the retiree's RHS account and the annual fee for the reimbursement process of qualified medical expenses will be paid for by the retiree. An employee hired on or after August 9,2006,who retires from the District may elect to receive only a cash payment of the percentage of equivalent cash value of accrued sick leave based on years of employment as described above. In all cases the equivalent cash value of accrued sick leave will be based on current rate of pay as of the date of separation from District employment. The District accrues for all salary-related items in the government-wide statements for which they are liable to make a payment directly and incrementally associated with payments made for compensated absences on termination. Accrued compensated absences were$1,135,684 as of March 31,2011. 22 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 The changes in compensated absences were as follows: Governmental Activities Beginning Balance,at March 31,2010 $ 1,112,452 Net change 23,234 Ending balance,at March 31,2011 $ 1,135,686 Current Portion $ 23,234 NOTE 6—LONGTERM DEBT Summarized below are the current year's activities for long-term debt: Original Amount Issue Beginning Ending due within Amount Balance Additions Retirements Balance one year Promissory Notes Hunt Living Trust Promissory Note 5.00-5.50%,due 4/2/2023 $ 1,500,000 $ 1,500,000 $ $ $ 1,500,000 $ Daloia Land Contract Promissory Note 6.25%,due 10/10/2017 240,000 150,210 15,681 134,529 16,682 2005 Refunding Promissory Notes 3.25-5.00%,due 4/1/2015 4,630,000 4,105,000 160,000 3,945,000 780,000 Bergman Note 850,000 - 850,000 - 850,000 - Total promissory notes 7,220,000 5,755,210 850,000 175,681 6,429,529 796,682 Revenue Bonds 1999 Lease Revenue Bonds 3.70-5.40%,due 4/1/2031 15,775,000 8,290,000 - 1,340,000 6,950,000 1,485,000 2004 Revenue Bonds 2.00-5.40%,due 9/1/2034 30,560,000 30,060,000 250,000 29,810,000 425,000 2007 Series A Rev Refunding Bonds 4.00-5.00%,due 9/1/2027 52,415,000 52,415,000 - 52,415,000 - 2007 Series B-T Taxable Revenue Refunding Bonds,5.15%,due 9/1/2012 6,785,000 3,690,000 1,535,000 2,155,000 1,750,000 Unamortized premium NA 662,850 56,009 606,841 56,009 Unamortized loss on refunding NA (3,900,855) 319,273 (3,581,582) 319,273 Total revenue bonds 105,535,000 91,216,995 3,500,282 88,355,259 4,035,282 Accreted Interest 1999 Revenue Bonds Accretion 13,888,021 24,843,000 1,436,454 - 26,279,454 - 2004 Lease Revenue Bonds Accretion 1,340,010 1,855,539 100,197 1,955,736 Total Accretion 15,228,031 26,698,539 1,536,651 - 28,235,190 - Total debt $ 127,983,031 $ 123,670,744 $ 2,386,651 $ 3,675,963 $ 123,019,978 $ 4,831,964 23 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31 2011 Promissory Notes Hunt LivingTrust Promissory Note. On April 1,2003,the District entered into a$1,500,000 promissory Y P note with the Hunt Living Trust as part of a lease and management agreement. The note is due in full on April 1,2023 and bears interest at 5.5%semi-annually through April 1,2013 and 5.0%per annum until the maturity,or prior redemption,of the note. At March 31, 2011,the outstanding balance on the note was $1,500,000. Daloia Land Purchase Contract Promissory Note. During fiscal year ending 2003 the District entered into a land purchase contract promissory note in the amount of$240,000.The promissory note bears interest at a fixed rate of 6.25%and matures October 10,2017.At March 31,2011,the outstanding balance of the Daloia Land Contract note was$134,529. 2005 Refunding Promissory Note. On June 30,2005,the District issued$4,630,000 of 2005 Refunding Promissory Notes for the purpose of refunding all of its outstanding 1995 Promissory Notes. The 2005 notes bear interest rates from 3.25%to 5.00%. Principal and interest rates are due semi-annually on March 1 and September 1. At March 31,2011,the outstanding balance was$3,945,000. 2010 Bergman Note.On Nov 30,2010,the District issued a promissory note with Principal of$850,000 and interest of 4%to finance the purchase of land. Interest and principal are due on a quarterly basis beginning February 28`",2011 and mature on November 30,2011. Revenue Bonds 1999 Lease Revenue Bonds. On January 20, 1999 the Authority,on behalf of the District,issued $29,663,021 of 1999 Lease Revenue Bonds for the purpose of acquiring land to preserve and use as open space,purchase a reserve fund surety policy,and pay bond issue costs. The bonds consist of Current Interest and Capital Appreciation Bonds. The Current Interest Bonds bear interest at 3.7%to 5.4%and are due semi- annually on March 1 and September 1. The Capital Appreciation Bonds accrete interest at 5.2%to 5.4%and compound semi-annually on March 1 and September 1. Principal payments on the Current Interest Bonds are due annually September 1. Principal payments on the Capital Appreciation Bonds are payable at maturity beginning March,2016. At March 31,2011,the outstanding balance of these bonds was $33,229,454. 2004 Revenue Bonds. On January 20,2004,the Authority on behalf of the District,issued$31,900,010 of 2004 Revenue Bonds for the purpose of acquiring land to preserve and use as open space,repay a portion of a 1995 Promissory Note,purchase a reserve fund surety policy,and pay bond issue costs. The bonds consist of Current Interest and Capital Appreciation Bonds. The Current Interest Bonds bear interest at 2.0%to 5.4% and are due semi-annually on March 1 and September 1. The Capital Appreciation Bonds accrete interest at 5.2%to%.4%and compound semi-annually on March 1 and September 1. Principal payments on the Current Interest Bonds are due annually September 1. Principal payments on the Capital Appreciation Bonds are payable at maturity beginning March,2020. At March 31, 2011,the outstanding balance of these bonds was $31,765,736. 2007 Series A Revenue Refunding Bonds and Series B-T Taxable Revenue Refunding Bonds. On December 15,2006 the District issued six series of promissory notes(2007 District Notes) for the purpose of refunding its 1996 Project Lease, 1996 Promissory Notes, 1999 Project Lease,and 1999 Promissory Notes. On December 15,2006 the Authority,on behalf of the District,issued$52,415,000 of 2007 Series A Revenue Refunding Bonds and$6,785,000 of 2007 Series B-T Taxable Revenue Refunding Bonds for the purpose of 24 I MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 defeasing the aggregate purchase price of the 2007 District Notes. The Series A bonds bear interest from 4.0%to 5.0%and Series B-T bonds bear interest at 5.15%. Interest for both series A and B-T are due semi- annually on March I and September 1. Principal payments for the Series A bonds begin September,2012 and are due annually,thereafter. Principal payments for the Series B-T bonds are due annually on September 1. At March 31,2011 the outstanding balance of 2007 Series A Bonds is $52,415,000 and the outstanding 2007 Series B-T Bonds is$2,155,000 and the remaining balance of the defeased debt was $18,608,814. Debt Service Requirements Annual debt service requirements are shown below for all long-term debt: For the Year Promissory Notes Ending March 31 Principal Interest Total 2012 $ 796,6-84 $ 288,163 $ 1,084,847 2013 827,752 254,431 1,082,183 2014 1,163,888 207,758 1,371,646 2015 1,230,096 143,925 1,374,021 2016-2020 911,109 668,976 1,580,085 2021-2024 1,500,000 262,500 1,762,500 Total payments due $ 6,429,529 $ 1,825,753 $ 8,255,282 For the Year Revenue Bonds Accretion to Remaining Ending March 31 Principal Date Accretion Interest Total 2012 $ 3,660,000 $ - $ - $ 4,343,129 $ 8,003,129 2013 3,660,000 - - 4,175,405 7,835,405 2014 3,065,000 - - 4,026,019 7,091,019 2015 3,430,000 - - 3,881,521 7,311,521 2016 4,082,212 789,308 443,480 3,731,530 9,046,530 2017-2021 25,024,288 3,995,738 4,174,974 16,255,046 49,450,046 2022-2026 30,457,790 4,300,285 9,041,925 11,899,929 55,699,929 2027-2031 21,963,742 3,921,827 12,849,431 5,128,579 43,863,579 2032-2034 11,215,000 - - 1,179,125 12,394,125 Total payment due 106,558,032 $ 13,007,158 $ 26,509,810 $54,620,283 $ 200,695,283 Plus: unamortized premiums 606,841 Minus: unamortized loss on refundings (3,581,582) Total carrying amount $ 103,583,291 25 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 Debt Repayment All debt is payable from limited ad valorem property taxes levied on all taxable property within the District. NOTE 7—RENTAL INCOME The District leases rents certain land and structures to others under operating leases with terms generally on a (rents) p g g Y month-to-month basis. Rental income of$955,243 was received during the year ended March 31,2011. NOTE 8—RETIREMENT PLAN Pension Plan All permanent District employees are eligible to participate in the pension plan offered by California Public Employees Retirement System(CALPERS)an agent multiple employer defined benefit pension plan with acts as a common investment and administrative agent for its participating member employers. CALPERS provides retirement and disability benefits,annual cost of living adjustments and death benefits to plan members,who must be public employees and beneficiaries. The District's employees participate in the Miscellaneous(non safety) Employee Plan. Benefit provisions under the Plan are established by State statute and District resolution. Benefits are based on years of credited service,equal to one year of full time employment. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CALPERS;the District must contribute these amounts. The Plans' provisions and benefits in effect at March 31, 2011,are summarized as follows: Miscellaneous Benefit vesting schedule 5 years service Benefit payments Monthly for life Retirement age 50 Monthly benefits,as a%of annual salary 2.0-2.5% Required employee contribution rates 8.0% Required employer contribution rates 12.908% CALPERS determines contribution requirements using a modification of the Entry Age Normal Method. Under this method,the District's total normal benefit cost for each employee from date of hire to date of retirement is expressed as a level percentage of the related total payroll cost. Normal benefit cost under this method is the level amount the District must pay annually to fund an employee's projected retirement benefit. This level percentage of payroll method is used to amortize any unfunded actuarial liabilities. The actuarial assumptions used to compute contribution requirements are also used to compute the actuarial accrued liability. The District does not have a net pension obligation since it pays these actuarially required contributions bi-weekly. CALPERS uses the market related value method of valuing the Plan's assets. An investment rate of return of 7.75%is assumed,including inflation at 3.0%. Annual salary increases are assumed to vary by duration of service. Changes in liability due to plan amendments,changes in actuarial assumptions,or changes in actuarial methods are amortized as a level percentage of payroll on a closed basis over twenty years. Investment gains and losses are accumulated as they are realized and ten percent of the net balance is amortized annually. 26 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 As required by new State law,effective July 1,2005,the District's Miscellaneous Plan was terminated,and the employees in the plan were required by CALPERS to join new State-wide pools. One of the conditions of entry to these pools was that the District true-up any unfunded liabilities in the former Plans,either by paying cash or by increasing its future contribution rates through a Side Fund offered by CALPERS. The District satisfied its Miscellaneous Plan's unfunded liability of$2,510,958 by agreeing to contribute that amount to the Side Fund through an addition to its normal contribution rates over the next 21 years. The required contributions representing annual pension cost, for the year ended Mar 31 were as follows: Annual Percentage of Net Fiscal Year Pension Cost APC Pension Ending (APC) Contributed Obligation 3/31/2011 $ 1,415,161 100% - 3/31/2010 1,269,386 100% - 3/31/2009 1,115,702 100% - 3/31/2008 1,104,388 100% - The latest available actuarial values of the above State-wide pools(which differs from market value)and funding progress were set forth as follows. The information presented below relates to the State-wide pools as a whole,of which the District is one of the participating employers: Actuarial Unfunded Unfunded Annual (Overfunded) Valuation Accrued Value of (Overfunded) Funded Covered Liability as % Date Liability Assets Liability Ratio Payroll of Payroll 2006 $ 912,988,585 $ 787,758,909 $125,229,676 86.28% $200,320,145 62.51% 2007 1,315,454,361 1,149,247,298 166,207,063 87.37% 289,090,187 57.49% 2008 1,537,909,933 1,337,707,835 200,202,098 86.98% 333,307,600 60.07% 2009 1,834,424,640 1,493,430,831 340,993,809 81.41% 355,150,151 96.01% Audited annual financial statements are available from CALPERS at PO Box 942709, Sacramento,CA 94229- 2709. NOTE 9—OTHER POST EMPLOYMENT BENEFITS During fiscal year 2009,the District implemented the provisions of Governmental Accounting Standards Board Statement No.45,Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions. This Statement establishes uniform financial reporting standards for employers providing postemployment benefits other than pensions(OPEB). The provisions of this statement are applied prospectively and do affect prior years financial statements. Required disclosures are presented below. The District joined the California Employers' Retiree Benefit Trust(CERBT),an agent multiple-employer plan administered by CALPERS,consisting of an aggregation of single-employer plans. District Board authorized a deposit of$1,900,000 with CERBT on June 5,2008,to begin funding its OPEB liability. 27 i MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 By Board resolution and through agreements with its labor unit,the District provides certain health care benefits for retired employees(spouse and dependents are not included)under third-party insurance plans. A summary of eligibility and retiree contribution requirements are shown below by bargaining unit: Eligibility -Service or disability retirement from the District -Age 50 and 5 years of service -Continue participation in Public Employees Medical and Hospital Care Act(PEMHCA) Benefit District pays retiree premiums up to: $300 per month effective 1/l/2007 $350 per month effective 1/l/2009 Surviving Spouse -Retirement plan election Continuation -Same benefit continues to surviving spouse Dental,Vision and None Life As of March 31,2011,approximately 94 active employees were eligible to receive retirement health care benefits. Funding Policy and Actuarial Assumptions The annual required contribution(ARC)was determined as part of a March 31, 2009,actuarial valuation using the entry age normal actuarial cost method. This is a projected benefit cost method,which takes into account those benefits that are expected to be earned in the future as well as those already accrued. The actuarial assumptions included(a) 7.75%investment rate of return, (b) 3.25%projected annual salary increase,and(c)3.0%health inflation increases. The actuarial methods and assumptions used include techniques that smooth the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets. Actuarial calculations reflect a long-term perspective and actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of events far into the future. Actuarially determined amounts are subject to revision at least biannually as results are compared to past expectations and new estimates are made about the future. The District's OPEB unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll using a 30 year amortization period. In accordance with the District's budget,the ARC is to be funded throughout the year as a percentage of payroll. Concurrent with implementing Statement No.45,the District Board passed a resolution to participate in the California Employers Retirees Benefit Trust(CERBT), an irrevocable trust established to fund OPEB. CERBT is administrated by CalPERS,and is managed by an appointed board not under the control of the District Board. This Trust is not considered a component unit by the District and has been excluded from these financial statements. Separately issued financial statements for CERBT may be obtained from CALPERS at PO Box 942709, Sacramento,CA 94229-2709. 28 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 Funding Progress and Funded Status Generally accepted accounting principles permits contributions to be treated as OPEB assets and deducted from the Actuarial Accrued Liability(AAL) when such contributions are placed in an irrevocable trust or equivalent arrangement. During the fiscal year 2010,the District made contribution in excess of the ARC and amortized its net OPEB obligation as presented below: Annual required contribution $ 123,000 Interest on net OPEB asset (130,000) Adjustment to annual required contribution 160,000 Annual OPEB cost 153,000 Net OPEB Asset at March 31,2010 1,666,561 Net OPEB Asset at March 31,2011 $ 1,513,561 The Plan's annual required contributions and actual contributions for fiscal years ended March 31,2009 to 2011 are set forth below: Percentage Annual Actual of Annual Net OPEB Fiscal Year OPEB Cost Contribution OPEB Cost Asset 3/31/2011 $ 153,000 $ - 0% $ 1,513,561 3/31/2010 56,439 - 0% 1,666,561 3/31/2009 177,000 1,900,000 1073% 1,723,000 The Schedule of Funding Progress presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits. Trend data from the actuarial studies is presented below: Overfunded Overfunded (Underfunded) Entry Age (Underfunded) Actuarial Actuarial Actuarial Actuarial Actuarial Liability as Valuation Value of Accrued Accrued Funded Covered Percentage of Date Assets Liability Liability Ratio Payroll Covered Payroll 3/31/2010 $ 1,894,000 $ 1,500,000 $ 394,000 126.27% $ 5,772,000 6.8% 3/31/2008 - 1,078,000 (1,078,000) 0.00% 5,590,000 -19.3% 29 i j MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 NOTE 10—RISK MANAGEMENT Coverage The District is exposed to various risks of loss related to torts; theft of,damage to,and destruction of assets; injuries to employees; and natural disasters. Prior to July 1, 2002,the District managed and financed these risks by purchasing commercial insurance. On July 1,2002,the District joined the California Joint Powers Insurance Authority(CAL JPIA. 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 9-member Executive Committee. During the past three fiscal years,none of the programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. 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 year,outstanding claims are valued. A retrospective de osit computation is then made for each open claims year. Costs are spread to members as p p Y p 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 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 3-year period from July 1,2008 through July 1, 2011. Each member of CAL JPIA has a$10,000,000 aggregate limit during the 3-year policy term. 30 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 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 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 CAI,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;properties on property schedule are covered. 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 promises 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 is provided to vendors/contractors who otherwise could not contract with the District as they could not meet the minimum insurance requirement: $1 million per occurrence,$1 million in aggregate. NOTE 11—NET ASSETS Net Assets is the excess of all the District's assets over all its liabilities,regardless of fund. Net Assets are divided into three captions under GASB Statement 34. These captions apply only to Net Assets, which is determined only at the District-wide level,and are described below: Invested in Capital Assets,net of related debt describes the portion of Net Assets which is represented by the current net book value of the District's capital assets, less the outstanding balance of any debt issued to finance these assets. Restricted describes the portion of Net Assets which is restricted as to use by the terms and conditions of agreements with outside parties,governmental regulations, laws,or other restrictions with the District cannot unilaterally alter. Unrestricted describes the portion of Net Assets which is not restricted to use. 31 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT NOTES TO FINANCIAL STATEMENTS MARCH 31, 2011 Contingent Liabilities The District has entered into numerous agreements,has properties that will require environmental remediation, and is named in certain claims and litigations. In the opinion of management,after consultation with counsel,the liability, if any,resulting there from will not have a material effect on the District's financial position. NOTE 12—SUBSEQUENT EVENTS In May 2011,the District Financing Authority sold$20.5 million of thirty-year bonds to finance the purchase of land and structures. These bonds,structured as a lease and rated AA by Fitch and AA-by Standard& Poor's, were sold at a total interest cost of 5.60%. III i 32 i REQUIRED SUPPLEMENTARY INFORMATION 33 �I MIDPENINSULA REGIONAL OPEN SPACE DISTRICT GENERAL FUND SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED MARCH 31, 2011 Budgeted Amounts Variance Favorable Original Final Actual (Unfavorable) REVENUES Property taxes $27,857,000 $ 27,527,000 $ 27,268,652 $ (258,348) Grant income 2,500,000 1,565,000 1,392,868 (172,132) Investment income 330,000 330,000 191,515 (138,485) Property management-rents 928,000 928,000 955,243 27,243 Other income 243,000 235,000 550,615 315,615 Land Donation - - 16,585 16,585 Total Revenues 31,858,000 30,585,000 30,375,478 (209,522) EXPENDITURES Current Salaries 7,995,360 8,021,261 7,898,301 122,960 Benefits 3,072,239 3,074,219 3,011,859 62,360 Directors 25,000 25,000 27,600 (2,600) Services and supplies 3,607,683 3,661,015 2,744,234 916,781 Capital Outlay New land purchases 15,000,000 15,000,000 9,845,756 5,154,244 Land acquisition support costs 656,500 656,500 91,726 564,774 Structures and improvements 2,140,310 1,333,210 1,196,634 136,576 Equipment 1,530,000 1,755,000 276,032 1,478,968 Vehicles 210,000 210,000 185,094 24,906 Total Expenditures 34,237,092 33,736,205 25,277,236 8,458,969 EXCESS(DEFICIENCY)OF REVENUES OVER EXPENDITURES (2,379,092) (3,151,205) 5,098,242 8,249,447 OTHER FINANCING SOURCES(USES) Other Sources - - 850,000 850,000 Transfers(out) - - (7,974,490) (7,974,490) Total Other Financing Sources(Uses) - - (7,124,490) (7,974,490) NET CHANGE IN FUND BALANCE $ - $ - (2,026,248) $ (2,026,248) Fund balance at beginning of year 28,914,014 Fund balance at end of year $ 26,887,766 34 Midpeninsula Regional ' Open Space District R-11-79 Meeting 11-21 August 10, 2011 AGENDA ITEM 5 AGENDAITEM Award of contract to New World Systems for Integrated Accounting and Financial System software and implementation services GENERAL MANAGER'S RECOMMENDATION =_—�.�.._...._.. ._ For S.E.A. Authorize the General Manager to enter into a contract with New World Systems for $276,000 with a contingency of$41,400, for a total not to exceed $317,400, for Integrated Accounting and Financial System software and implementation services contingent upon negotiation of suitable contract terms and conditions. SUMMARY In Jul 2010, the District issued a Request for Proposal for an Integrated Accounting and Finance y q p g g Software system and received seven responses. After hiring Schafer Consulting to assist with evaluation of the top three vendors, staff conducted a comprehensive four-month evaluation process to further assess the qualifications of each vendor and their software systems. Although two of the vendors withdrew their proposals, staff completed a thorough evaluation of the remaining vendor, New World Systems, and recommends awarding the contract for software purchase and implementation to them. The General Manager will execute the contract upon completion of negotiation of appropriate contract terms and conditions. Costs have been agreed upon. However, due to the complexity and highly technical nature of the required software license and service contract, both the District and New World Systems are continuing to negotiate terms suitable to the District's needs. In the event such terms are not agreed upon, staff will either contact the other most qualified vendors to determine their availability, or issue a new Request for Proposals. DISCUSSION History On July 12, 2010, the District issued a Request for Proposal (RFP) for the purchase and implementation of an Integrated Accounting and Financial Software (IAFS). A total of seven proposals, as shown below, were received by the deadline of August 5, 2010. it � �� ... I R-11-79 Page 2 Firm Cost Proposal Non-Profit Technologies $115,302 CUSI, Inc. $136,495 Blackbaud $140,605 Springbrook Software $166,528 Advanced Fund Management Solutions $169,627 Tyler Technologies $196,525 New World Systems $266,640 Staff evaluated the proposals and identified the top three vendors to move forward to the next phase of the evaluation: New World Systems (NWS), Tyler Technology, and Springbrook Software. Staff determined that these vendors had the most relevant experience, responsive proposal quality, hosted implementation approach, and an integrated solution. Due to the District's lack of in-house technical expertise in the area of financial management system evaluation, implementation, and testing, the Administration and Budget Committee approved staff s recommendation to hire a consultant to assist staff in these areas. On October 26, 2010, the District issued a RFP for a consultant to assist staff in evaluating the three shortlisted vendors and with contract negotiation for the software system and implementation services. Two proposals were received and Schafer Consulting was selected and approved by the Board of Directors on February 9, 2011 (Report R-11-22). With the help of Schafer Consulting, the District issued a follow-up request for information on May 2, 2011, to the three shortlisted vendors. New World Systems was the only vendor who submitted a response back on May 19, 2011. Tyler Technologies and Springbrook Software withdrew due to competing internal priorities. Software System Evaluation In order to determine whether New World Systems' product, Logos.Net, was a good fit for the District and, if so, which system modules the District would like to purchase, a rigorous evaluation process was conducted and included the following major activities: 1. An evaluation of NWS' proposal; 2. A detailed analysis of NWS' cost proposal; 3. The vendor's self-evaluation of its software functionality; 4. Sixteen hours of live software demonstrations; 5. An on-site visit to one of NWS' northern California customers, the City of El Cerrito; 6. Extensive reference checks with eight NWS customer agencies in northern California. 1. Proposal Evaluation After receiving the completed Addendum 3 to NWS' original proposal, staff conducted a detailed evaluation of the project management methodology, data conversion plan, test plan, training plan, and implementation plan. All aspects of the proposal were determined to be very thorough, comprehensive, and responsive to the RFP requirements. i R-11-79 Page 3 2. Cost Evaluation Staff performed a line-by-line analysis of NWS' cost proposal which was broken into to the following components: software, licensing, implementation, testing, training, ongoing maintenance costs, and travel and expenses. In addition, staff compared the price NWS proposed to the District with the prices proposed to other NWS customer agencies of similar scope and size and found the District's proposed cost to be highly competitive. 3. Vendor Self-Evaluation In order to determine the priorities desired in the IAFS system, District staff worked with Schafer Consulting to rate the relative importance of a comprehensive list of functionalities developed by Schafer. Once completed, this list was sent to NWS, who was asked to conduct a self-evaluation of its Logos.Net functionalities. A review of NWS' self-evaluation determined that their software system meets all of the critical functionalities and most of the desired functionalities outlined by the District. 4. Live Software Demonstration On June 6 and 7, 2011, staff spent over sixteen hours evaluating the Logos.Net system during live demonstrations by NWS. Staff and Schafer Consulting rated overall system functionality, user interfaces, ease of use, breadth of capabilities, and functionality of each module. A total of 21 different modules were evaluated: Accounts Receivable, Accounts Payable, Budget, General Ledger, Cash Management, Purchasing/ Contracts, Work Order, Fixed Assets, Grants, HR Overview and Self-Service, Leave Management, Benefits, Personnel Management, Position Control, Timekeeping, Applicant Tracking, Training, Payroll, Report Writer, and Projects. 5. Customer Site Visit After completing the live software demonstrations and determining NWS' Logos.Net system meets the District's functional requirements, staff began the process of checking references, which included a site visit on June 29, 2011, to the City of El Cerrito, a NWS' customer for the past seven years. During the site visit, staff met with El Cerrito's Information Technology Manager, Accounting Manager, and Director of Administrative Services. In addition to viewing their actual software system, staff asked numerous questions about the software and implementation services provided by NWS. Overall, the City of El Cerrito is pleased with the software and expressed positive experience with NWS implementation and customer service. 6. Reference Checks The final part of the evaluation phase was reference checks with eight NWS' customer agencies, including the Contra Costa Transportation Authority, a NWS customer who recently purchased and implemented Logos.Net. All of the references provided very positive feedback about both the software and implementation experience with NWS. Recommendation Based on a systematic, four-part scorecard developed by Schafer Consulting and rated by both District staff and Schafer, NWS software and implementation services scored 412 out of 500 total possible points, which is an excellent score. Staff was particularly impressed with R-1 1-79 Page 4 Logos.Net's breadth of functionalities and ease of use. The site visit to the City of El Cerrito and the eight reference checks confirmed that NWS is very professional and the software is a robust and easy to use system. As part of its research, staff also evaluated NWS' corporate philosophy and track record of success. NWS is a privately held company that develops and sells software exclusively for local governments. NWS utilizes a widely recognized project management methodology, the standard established by the Project Management Institute (PMI), and all NWS project managers are PM1 certified. The company takes its "Customer for Life (C4L)" philosophy seriously and provides system support to customers for the life of the software. NWS has established a number of user groups, with representatives from current customer organizations, who provide feedback and suggestions for improvements to the software. References indicate NWS is responsive to the user groups' feedback. NWS boasts numerous long-term customers including one of over 30 years. Finally, and most impressive, is the fact that NWS has had zero implementation failures within the company's history. Based on the high scorecard rating resulting from the staff evaluation process, the positive reference checks, and the company's 100% successful implementation rate, staff recommends awarding the contract for software purchase and implementation services to New World Systems, contingent on completing negotiations for contract terms and conditions suitable for the District's needs. Staff recommends the purchase of the following core modules which include everything mission critical for the District to operate off-the-shelf(ready-to-use without customization): general ledger, budget management, annual budget preparation, accounts payable, revenue/cash receipting, asset management, project accounting, miscellaneous billing and receivables, government(GASB) reporting, bank reconciliation, purchasing base, requisition processing, contract accounting, payroll processing, personnel management, position control, employee event tracking, personnel action processing, benefits administration, position budgeting, and an electronic HR suite. The cost of the software, implementation, and travel and expenses totals $276,000 for a two- phase implementation approach. Phase I will be implementation of the Core Financials, with a go-live date of July 2, 2012, and Phase 11 is implementation of the HR/Payroll modules with a go-live date of January 2, 2013. The final detailed cost breakdown for a revised scope of work and a longer implementation timeline includes a generous $25,000 site discount'. A contingency of 15% is recommended to cover unforeseeable expenses, such as unique system configuration for a California open space agency, which could result in additional implementation and consulting hours as well as travel and expenses. This will bring the total software and associated implementation costs to an amount not-to-exceed $317,400. Application Software $150,000 Less Site Discount ($25,000) $125,000 Implementation Services $125,500 Travel & Expenses (T&E) $25,500 Total One Time Cost $276,000 Site discount—a discount provided in exchange for the customer's willingness to be a reference point and/or host a site demonstration,at no cost and at the convenience of MROSD,for NWS's future business opportunity.The acceptance of a site discount does not obligate MROSD to endorse NWS software or its active participation in any type of marketing and advertising campaign for or on behalf of NWS. MROSD is also not responsible for any expenses resulting from any demonstration at its location. i R-11-79 Page 5 Contingency (15%) $41,400 Total Not to Exceed Cost $317,400 FISCAL IMPACT If the contract with.New World Systems is approved, the IAFS project cost will total u to Y pp p J p $483,280 as detailed below: Software Vendor Contract (NWS) $276,000 Vendor Contingency $41,400 Total Vendor Cost $317,400 Consultant Contract(Schafer) $150,880 Consultant Contingency $15,000 Total Consultant Cost $165,880 Total IAFS Project Cost $483,280 Of this amount, $12,331 was spent in FY 2010-11 and $375,000 was approved by the Board on March 23, 2011 as part of the FY 2011-12 Adopted Budget (Report R-11-46). In order to fully fund the project, staff requests Board approval for the balance of$95, 949 to be added to the FY 2011-12 fixed assets budget as a Midyear adjustment. PUBLIC NOTICE Notice was provided pursuant to the Brown Act. No additional notice is necessary. CEQA COMPLIANCE The proposed action is not a project under the California Environmental Quality Act(CEQA) and no environmental review is required. NEXT STEPS Upon Board authorization, the General Manager will continue negotiation of appropriate terms and conditions and, thereafter, execute a contract with New World Systems for the Integrated Accounting and Financial System software purchase and implementation services. Attachment 1. Draft work plan (scope of work)—an outline of key activities, deliverables, milestone dates and associated resources among NWS, the District and Schafer Consulting. Prepared by: Anna Duong, IAFS Project Manager Kate Drayson, Administrative Services Manager Contact person: Same as above R-11-79 Page 6 IAFS Core Team: Project Manager Anna Duong Administrative Services Manager Kate Drayson Accountant Bunny Congdon Senior Management Analyst Lynn Tottori Acting Human Resources Supervisor Annetta Spiegel Department IAFS Team Representatives: Public Affairs Specialist Kristi Britt Website Content Coordinator Vicky Gou Real Property Specialist Elaina Cuzick Senior Resource Planner Kirk Lening ton Maintenance and Resource Supervisor Craig Beckman Support Services Supervisor David Topley Senior Resource Management Specialist Cindy Roessler Administrative Assistant Leslie Wright Legal Administrative Assistant Sue Voiss Management Analyst Gordon Baillie Accounting Clerk Michelle Kneier Network Specialist Benny Hsieh IT Support Owen SterzI IAFS: NWS Scope of Work(aka Work Plan)-An outline of key activities and deliverables Phase I-Project Initiation Review high level expectations Define team responsibilities and project implementation methodology(PIM) Schedule kick-off meeting(first on-site visit)and define activities Draft 1st version of Project Plan Confirm tasks,requirements,resources,deliverables for MROSD project Identify MROSD key decision makers and project managers Establish communication framework,governance and oversight Schedule kick-off meeting between NWS and MROSD Deliverables Assignment of NWS team 1st iteration of Project Plan Phase 11-Planning Finalize objectives,scope and timeline Organize NWS&MROSD resources(Build Teams) Discovery and Immersion process Map current processes and functionality Identify omitted items Software and Systems Analysis Resolution designed for discrepancy between current processes and NWS solution Documentation of requirements Prepare implementation plan Complete final iteration of Project Plan i Deliverables Kick-off meeting Discovery/Immersion process Software and Systems analysis Requirements documentation Sign off of requirements documentation Phase III-Construction Phase Software installation on hardware and network Testing and verification of such installation and connection Configuration decisions on operational preferences Define and setup system workflows Define and setup feature availabilities Define and setup user experience Define and setup report generation process Install interface and test Build and test any customized interface Prepare data for conversion Review re-designed functions Verify and validate system readiness Perform acceptance testing Deliverables Hardware/software installation Forms design Master file training Configuration and setup Update:8/5/2011 1 of 3 i I IAFS: NWS Scope of Work(aka Work Plan)-An outline of key activities and deliverables Preparation for data conversion Interface installation and configuration Custom component delivery,if applicable Phase IV-Transition Phase Conduct End-user training Execute Agreement to go-live Transition from testing to production enviroment Development of pre-defined operational procedures for in-between systems System goes live Run final data conversion Verify data in new system Triage issues during go-live week Introduction of NWS Customer Support team Refresher training provided,if applicable lInstallation of remaining optional modules Deliverables End-user training Agreement to go-live Go-live transition Data conversion executed Post-go live training Installation of remaining modules Phase V-Closing Transition to account management Deliverables Review and approve Agreement to Close Final review of tasks Transition to Account Team Update:8/5/2011 2 of 3 IAFS: NWS Scope of Work(aka Work Plan)-An outline of key activities and deliverables Resource and Responsibilities Activity.. + U �ard. Project Management Project Management of MROSD resources and deliverables X Project Management of New World services X Overall Project Success X X Initiation Phase Initial contact with MROSD X X Assignment of New World teams X Internal project review X Project infrastructure setup internally at New World X Formal kickoff meeting scheduled X Planning Phase Formal Kickoff Meeting X X Discovery Immersion process X I Software and Systems Analysis X I Requirements confirmed X I Resources assigned X Implementation Plan created(project timeline) X A Project Plan finalized X Q Approval of requirements and implementation plan A Construction Phase Hardware/Software installation X X Forms Design,Master File Training,Configuration&Setup X X Data conversion process prepared X X Transition Phase End user training X X Agreement to Go-live X I Go-live event X X Data conversion executed X Post go-live training X X Closing Phase "Agreement to Close"is reviewed and approved A Final review of tasks X Q Transition to Account Team X Key: X Responsible I Responsible to provide input A Responsible for approval/signoff Q Review and QA Update:8/5/2011 3 of 3 IAFS:NWS Scope of Work(aka Work Plan)-An outline of key activities and deliverables Phase I-Project Initiation Review high level expectations Define team responsibilities and project implementation methodology(PIM) Schedule kick-off meeting(first on-site visit)and define activities Draft 1st version of Project Plan Confirm tasks,requirements,resources,deliverables for MROSD project Identify MROSD key decision makers and project managers Establish communication framework,governance and oversight Schedule kick-off meeting between NWS and MROSD Deliverables lAssignment of NWS team 11st iteration of Project Plan Phase 11-Planning Finalize objectives,scope and timeline Organize NWS&MROSD resources(Build Teams) Discovery and Immersion process Map current processes and functionality Identify omitted items Software and Systems Analysis Resolution designed for discrepancy between current processes and NWS solution Documentation of requirements Prepare implementation plan Complete final iteration of Project Plan Deliverables Kick-off meeting Discovery/Immersion process Software and Systems analysis Requirements documentation ,Sign off of requirements documentation Phase III-Construction Phase .Software installation on hardware and network Testing and verification of such installation and connection Configuration decisions on operational preferences Define and setup system workflows Define and setup feature availabilities Define and setup user experience Define and setup report generation process Install interface and test Build and test any customized interface Prepare data for conversion Review re-designed functions Verify and validate system readiness Perform acceptance testing Deliverables Hardware/software installation Forms design Master file training Configuration and setup Update:8/9/2011 1 of 3 IAFS:NWS Scope of Work(aka Work Plan)-An outline of key activities and deliverables Resource and Responsibilities IN Project Management Project Management of MROSD resources and deliverables X Project Management of New World services X Overall Project Success X X Initiation Phase Initial contact with MROSD X X Assignment of New World teams X Internal project review X Project infrastructure setup internally at New World X Formal kickoff meeting scheduled X Planning Phase Formal Kickoff Meeting X X Discovery Immersion process X I Software and Systems Analysis X I Requirements confirmed X I Resources assigned X Implementation Plan created(project timeline) X A Project Plan finalized X Q Approval of requirements and implementation plan A Construction Phase Hardware/Software installation X X Forms Design,Master File and Core Process Training, X X Configuration&Setup Data conversion process prepared X X Transition Phase End user training X X Agreement to Go-live X I Go-live event X X Data conversion executed X Data conversion validated X X Data conversion approved X Post go-live training X X Closing Phase "Agreement to Close"is reviewed and approved A Final review of tasks X Q Transition to Account Team X Key: X Responsible 1 Responsible to provide input A Responsible for approval/signoff Q Review and QA Update:8/9/2011 3 of 3 IAFS:NWS Scope of Work(aka Work Plan)-An outline of key activities and deliverables Phase I-Project Initiation Review high level expectations Define team responsibilities and project implementation methodology(PIM) Schedule kick-off meeting(first on-site visit)and define activities Draft 1st version of Project Plan Confirm tasks,requirements, resources,deliverables for MROSD project Identify MROSD key decision makers and project managers Establish communication framework,governance and oversight Schedule kick-off meeting between NWS and MROSD Deliverables Assignment of NWS team 1st iteration of Project Plan Phase II-Planning Finalize objectives,scope and timeline Organize NWS&MROSD resources(Build Teams) Discovery and Immersion process Map current processes and functionality Identify omitted items Software and Systems Analysis Resolution designed for discrepancy between current processes and NWS solution Documentation of requirements Prepare implementation plan Complete final iteration of Project Plan Deliverables Kick-off meeting Discovery/Immersion process Software and Systems analysis Requirements documentation Sign off of requirements documentation Phase III-Construction Phase Software installation on hardware and network Testing and verification of such installation and connection Configuration decisions on operational preferences Define and setup system workflows Define and setup feature availabilities Define and setup user experience Define and setup report generation process Install interface and test Build and test any customized interface Prepare data for conversion Review re-designed functions Verify and validate system readiness Perform acceptance testing Deliverables Hardware/software installation Forms design Master file training Configuration and setup i Update:8/9/2011 1 of 3 IAFS: NWS Scope of Work(aka Work Plan)-An outline of key activities and deliverables Preparation for data conversion Interface installation and configuration Custom component delivery,if applicable Phase IV-Transition Phase Conduct End-user training Execute Agreement to go-live Transition from testing to production enviroment Development of pre-defined operational procedures for in-between systems System goes live Run final data conversion Verify data in new system Triage issues during go-live week Introduction of NWS Customer Support team ,Refresher training provided,if applicable Installation of remaining optional modules Deliverables End-user training Agreement to go-live Go-live transition Data conversion executed Post-go live training [installation of remaining modules Phase V-Closing Transition to account management Deliverables Review and approve Agreement to Close Final review of tasks Transition to Account Team Update:8/9/2011 2 of 3 IAFS: NWS Scope of Work(aka Work Plan)-An outline of key activities and deliverables Resource and Responsibilities Project Management Project Management of MROSD resources and deliverables X Project Management of New World services X Overall Project Success X X Initiation Phase Initial contact with MROSD X X Assignment of New World teams X Internal project review X Project infrastructure setup internally at New World X Formal kickoff meeting scheduled X Planning Phase Formal Kickoff Meeting X X Discovery Immersion process X 1 Software and Systems Analysis X I Requirements confirmed X I Resources assigned X Implementation Plan created(project timeline) X A Project Plan finalized X Ct Approval of requirements and implementation plan A Construction Phase Hardware/Software installation X X Forms Design,Master File and Core Process Training, X X Configuration&Setup Data conversion process prepared X X Transition Phase End user training X X Agreement to Go-live X i Go-live event X X Data conversion executed X Data conversion validated X X Data conversion approved X Post go-live training X X Closing Phase "Agreement to Close"is reviewed and approved A Final review of tasks X Q Transition to Account Team X Key: X Responsible I Responsible to provide input A Responsible for approval/signoff CI Review and CIA Update:8/9/2011 ( 3 of 3 i IAFS:NWS Scope of Work(aka Work Plan)-An outline of key activities and deliverables Resource and Responsibilities �y Project Management Project Management of MROSD resources and deliverables X Project Management of New World services X Overall Project Success X X Initiation Phase Initial contact with MROSD X X Assignment of New World teams X Internal project review X Project infrastructure setup internally at New World X Formal kickoff meeting scheduled X Planning Phase Formal Kickoff Meeting X X Discovery Immersion process X I Software and Systems Analysis X I Requirements confirmed X I Resources assigned X Implementation Plan created(project timeline) X A Project Plan finalized X Q Approval of requirements and implementation plan A Construction Phase Hardware/Software installation X X Forms Design,Master File and Core Process Training, X X Configuration&Setup Data conversion process prepared X X Transition Phase End user training X X Agreement to Go-live X 1 Go-live event X X Data conversion executed X Data conversion validated X X Data conversion approved X Post go-live training X X Closing Phase "Agreement to Close"is reviewed and approved A Final review of tasks X Q Transition to Account Team X Key: X Responsible I Responsible to provide input A Responsible for approval/signoff Q Review and QA Update:8/9/2011 3 of 3 IAFS: NWS Scope of Work(aka Work Plan)-An outline of key activities and deliverables Phase I-Project Initiation Review high level expectations Define team responsibilities and project implementation methodology(PIM) Schedule kick-off meeting(first on-site visit)and define activities Draft 1st version of Project Plan Confirm tasks,requirements,resources,deliverables for MROSD project Identify MROSD key decision makers and project managers Establish communication framework,governance and oversight Schedule kick-off meeting between NWS and MROSD Deliverables lAssignment of NWS team 11st iteration of Project Plan Phase 11-Planning Finalize objectives,scope and timeline Organize NWS&MROSD resources(Build Teams) Discovery and Immersion process Map current processes and functionality Identify omitted items Software and Systems Analysis Resolution designed for discrepancy between current processes and NWS solution Documentation of requirements Prepare implementation plan Complete final iteration of Project Plan Deliverables Kick-off meeting Discovery/Immersion process Software and Systems analysis Requirements documentation Sign off of requirements documentation Phase III-Construction Phase Software installation on hardware and network Testing and verification of such installation and connection Configuration decisions on operational preferences Define and setup system workflows Define and setup feature availabilities Define and setup user experience Define and setup report generation process Install interface and test Build and test any customized interface Prepare data for conversion Review re-designed functions Verify and validate system readiness Perform acceptance testing Deliverables Hardware/software installation Forms design Master file training Configuration and setup Update:8/9/2011 1 of 3 Midpeninsula Regional • " Open Space District R-11-82 Meeting 11-21 August 10, 2011 AGENDA ITEM 6 AGENDA ITEM Approval to Add the Mindego Gateway Project as a New Key Project to the District Fiscal Year 2011-12 Action Plan and.Authorization to Enter into a Partnership Agreement with Peninsula Open Space Trust(POST) to Designate Roles and Responsibilities for Project Implementation GENERAL MANAGER'S RECOMMENDATIONS I. Approve the addition of the Mindego Gateway Project as a New Key Project to the District Fiscal Year 2011-12 Action Plan,with the Planning Department acting as lead. 3 2. Authorize the General Manager to enter into an agreement with POST to fund specific tasks associated with the planning, design, and construction of the Mindego Gateway Project at Russian Ridge Open Space Preserve. SUMMARY The District has an opportunity to expand its long-standing partnership with Peninsula Open en Space Trust(POST)by working together not only on acquisition projects,but also on new capital improvement projects. At this time, POST is specifically interested in funding a new staging area and associated trails near the proposed Audrey Rust Commemorative Site in the Mindego area of Russian Ridge Open Space Preserve. To begin this exciting new partnership goals,the District would need to include this proposed newproject and meet POST s scheduling go p p � as part of the Fiscal Year 2011-12 Action Plan. DISCUSSION The 97.5 acre former Silva Property and the 1,100-acre former Mindego Ranch were recently added as part of Russian Ridge Open Space Preserve. The recreation potential, diverse natural resources, and threat of development made Mindego Ranch a high priority for conservation. The property is a stunning example of the upland San Mateo Coast and provides significant habitat and biodiversity values, with four major aquatic sites harboring a population of the federally- endangered San Francisco garter snake. Mindego Hill, a 2,143-foot peak visible for miles and offering panoramic coastal views from its summit,represents a pinnacle of the long-standing conservation partnership between POST and the District. The recently-purchased, former Silva Property located approximately one mile to the east, offers views of Mindego Hill and the Pacific i R-11-82 Page 2 coast beyond, as well as important frontage onto Alpine Road. As such, POST has kept these two properties in mind as a focus for funding potential public access improvements. This intention was memorialized as part of the former Silva property purchase agreement between the District and POST, in which POST reserved the right to work with the District to potentially implement a commemorative site, staging area, and trail at a later date(see Report R-I 1-14): Working collaboratively with POST, study the feasibility of a POST-sponsored recognition site landscape feature potentially including a public staging area and trail. Implementation of such a feature is contingent on future environmental review and regulatory requirements. Consistent with the Purchase Agreement, POST first approached the District with the desire to exercise its right to a Recognition Site. The District has been working with POST to develop and obtain Board-approved design guidelines for this feature and review preliminary plans(see Report R-11-66). During this period of time, POST also expressed its desire to partner with the District to move forward with a new staging area and select trails in this area of the Preserve. Based on a very preliminary evaluation of the Silva property and surrounding lands, District staff has concluded that a staging area and associated trails are feasible at this site and desirable to improve public access, establish new trail loops, open the Mindego area of the Preserve, and address future parking use. The former Silva property contains a graded area along Alpine Road that provides an ideal location for a staging area. Based on a preliminary review of the site and a parking needs assessment for the Preserve conducted by staff, a new staging area for approximately 25 cars with an overflow parking area to accommodate special events seems appropriate at this time (pending further review). New, short trails would connect the staging area, the future Commemorative Site, and the existing Mindego Ridge Trail. The surrounding land also lends itself to a new, approximately 1-mile trail that could connect the proposed staging area to the Ancient Oaks Trail to the north,providing a potential loop opportunity with the Mindego Ridge Trail (see Attachment A, Project Area Map). POST has begun fundraising for these desired improvements and expects to complete its fundraising campaign by the end of the calendar year. At this time, and if approved by the Board, POST anticipates sufficient funding will be available to cover the costs for planning, design, permitting, and construction of the proposed project, as well as project management (staff time). Depending on the total funds raised, and Board project approval, POST will also consider reimbursing the District for staff and materials costs associated with long-term facility maintenance. In order for the District to proceed with this proposed project, District staff will need to re- prioritize staff assignments on current District projects with the expectation that lower priority projects will be temporarily halted and their schedules extended. District staff will consider using the savings resulting from POST reimbursement of District project management staff to hire temporary employees to backfill capacity for the District's affected projects. If this item is approved by the Board,roles and responsibilities would be assigned as follows: District Roles and Responsibilities Include the proposed project as part of the FY2011-12 Action Plan. R-I 1-82 Page 3 • Enter into a Partnership Agreement with POST that details the roles and responsibilities for the project as set out in this report. • Dedicate staff time to manage the overall project from planning through implementation and close out. • Manage the following project elements: a)new staging area along Alpine Road; b)new trail connection to Ancient Oaks Trail; c)habitat assessment for this area of the Preserve to identify management and design recommendations that will allow implementation of the project while protecting highly sensitive natural resources. • Incorporate the new Mindego Hill Trail into the larger Mindego Gateway project to review all proposed public access improvements together under CEQA. • Establish the overall project budget and schedule with POST review and concurrence. • Conduct public contracting and bidding for all consulting services and contracted work as required for completing the District-managed components of the project. • Dedicate field staff time to build suitable portions of the project(e.g. trail construction). • Assign the Use and Management(U&M) Committee to review planning and design for each project component. • Assign the Legislative, Finance, and Public Affairs Committee(LFPAQ to review trail naming requests. • Provide final District Board approval for all components of the project. POST Roles and Responsibilities 0 Enter into a Partnership Agreement with the District that details the roles and responsibilities for the project as set out in this report. 9 Reimburse District for all planning project management staff, all required consultant services(with the exception of$25,000 for archaeological surveys, which is already included in the District's Action Plan)); all agency plan check and permitting costs; and all construction implementation costs, including field staff time for trail construction, based on a mutually agreed-upon project budget. 0 Dependent on fundraising, fund long-term maintenance costs for all components of the project. 0 Manage the Audrey Rust Commemorative Site from planning through implementation and close out; adhere to District Board-approved Design Guidelines; provide District with project milestone updates and integrate District review comments; obtain final District design approval and include District as part of construction inspections. FISCAL IMPACT If this item is approved by the Board, the Partnership Agreement with POST will confirm in writing that all of the District's costs associated with the Mindego Gateway project, as delineated above, will be funded by POST. As such, no additional capital funding is required to be allocated by the District for implementation. The District may use salary savings gained from this partnership to pay for temporary staffing to continue District projects that would otherwise have to be deferred as a result of adding the Mindego Gateway Project to the District FY2011-12 Action Plan. Therefore,these improvements would result in no fiscal impact to the District budget and would not require a re-evaluation of the Operating or Capital Improvement Program Guidelines. Outside funding for long-term maintenance will be dependent on additional fundraising success by POST. R-I 1-82 Page 4 PUBLIC NOTICE Notice has been provided as required by the Brown Act. No additional notice is required. CEQA COMPLIANCE The recommended Board actions will not result in a direct change to the physical environment. These actions merely begin the planning phase of a new proposed project, which will be subject to future environmental review to be completed at a later date,prior to any physical implementation. NEXT STEPS Upon Board action, the Planning Department would include the Mindego Gateway Project as a New Key Project to the District Fiscal Year 2011-12 Action Plan and formally set aside staff resources for work on this project. District staff would also begin the detailed planning and design process, including working with the U&M Committee in public meetings starting in the fall to evaluate design goals and assumptions and with LFPAC to review trail naming requests. District staff expects to complete the design and environmental review by the first quarter of 2012, at which time the item would return to the Board for approval. Permitting would occur in 2012, with phased project implementation expected in 2012 through 2014. Concurrently, staff will consider hiring temporary employees to backfill the staff time that is allocated to this project to avoid significant impacts to existing District projects. Also, to formalize the partnership with POST, the General Manager will enter into a Partnership Agreement that will clearly designate roles and responsibilities prior to entering into future consulting services contracts in support of the project. District staff expects to present to the Board a series of consultant contracts at the next Board meeting for design and environmental review (CEQA) services. Attachments: A. Project Area Map Prepared by: Ana Ruiz, AlCP, Planning Manager Lisa Bankosh, Open Space Planner 11 Gina Coony, Open Space Planner 11 Contact person: Ana Ruiz, AICP, Planning Manager i ■ yqr 90 Borel72' ' ea1'ail 257 9 F u. Russian r ' Ridge Ancient 0 1 ' Mindego �� , , '• Ranch o ■ Mid a 9OI4iage Tr �N r ♦ #D ` Mindego Hill k I40 . Q) 2143 _0 3 o C a ma it 2 co wi Skyli Ridg 5 �+ - y N Attachment A: Project Area Map Midpeninsula Regional O Proposed Commemorative Site Location — Proposed New Trail Open Space District Gate ' Coastal Protection Area August 2011 Proposed Staging Area Location Roadside Parking e Fee, 0 250 500 1.000 J I �1 Midpeninsula Regional Open Space District R- 1.1-40 Meeting 11-21 August 10, 2011 AGENDA ITEM 7 AGENDA ITEM Status Report on the Implementation of the Integrated Pest Management Program and Reimbursement Plan for Slender False Brome (SFB) GENERAL MANAGER'S RECOMMENDATION For S.E.A. Receive a progress report from District staff on the management program and reimbursement plan for SFB. SUMMARY On December 14, 2005 (R-05-122), the Midpeninsula Regional Open Space District(District) Board of Directors approved a ten-year plan to eradicate SFB from Thornewood Open Space Preserve and the surrounding Woodside neighborhoods. Four major tasks were approved under this work plan: 1) treatment and monitoring of SFB on District land; 2)treatment and monitoring of SFB on adjacent private lands; 3) obtain grant funding for SFB control; and 4) reclassification of SFB as a noxious weed. The District has made substantial progress on all of these tasks, with treatment on private lands a primary focus in the next few years. DISCUSSION Treatment and monitoring of SFB on District land In February 2004, District staff and contractors began controlling SFB in the Thornewood preserve. In subsequent years, additional small outbreaks of SFB were found in El Corte de Madera, La Honda Creek and Saratoga Gap. These outbreaks have been controlled by selective herbicidespraying or hand pulling. Although some re-growth is occurring, outbreaks are p g g g g retreated every year, and the original 40 acres of SFB on District preserves has been reduced by approximately 75%. i i R-1 1-40 Page 2 Treatment and monitoring of SFB on adjacent private lands In May 2009, Ellen Gartside was hired as the SFB Coordinator and developed a management program and reimbursement plan for treatment of SFB on private lands. The Slender False Brome Integrated Pest Management program includes: 1) pre-treatment surveys; 2) herbicide application(Roundupg/glyphosate) or manual control measures (hand pulling); and 3) post- treatment restoration and monitoring. The reimbursement plan was designed to motivate private property owners to treat SFB on their own property. To implement this approach, the District reimburses property owners $350 each time an acre of SFB is treated (usually once per year). It is expected that properties will need to be treated for several consecutive years in order to deplete the supply of SFB seeds which accumulated in the soil prior to treatment. The SFB Coordinator meets with each property owner participating in the program to discuss the reimbursement plan and treatment options. As of June 2011, 82 property owners are participating in the reimbursement plan; 160 net acres have been treated between one and three times; and $109,095 has been issued in reimbursements over the past three years. Grants for SFB control Since 2008, the District has received a total of$57,518 in grant funds or labor for the SFB program. Grant funds have been directed towards controlling SFB on private property. In Fiscal Year(FY) 2010- 2011, the California Conservation Corps provided 404 hours of labor to pull SFB on private property and on District preserves. In 2011, the California Conservation Corps Mobile Weed Strike Team treated fifteen acres of SFB on private property and two acres of SFB in San Mateo County's Wunderlich Park, an equivalent reimbursement value of$5,915 (See the table below for a breakdown of the grantor organizations, funds, and dates). The District's SFB Coordinator will continue to apply for grants. MROSD FY Grantor Organizations Grant Funds and Labor 2008-2009 National Fish and Wildlife Foundation $ 15,000 2010-2011 California Conservation Corps $ 6,868 2010-2012 American Recovery and Reinvestment Act $ 15,000 2011-2012 San Mateo County Weed Management Area $ 7,735 2011-2012 California Conservation Corps $ 5,915 2011-2012 Bay Area Early Detection Network $ 7,000 Total $ 57,518 Reclassification of SFB as a noxious weed In July 2006, with the strong support of the District, the California Department of Food and Agriculture designated SFB as an A-rated Noxious Weed. Category A is given to noxious weed species with limited distribution and for which eradication is a priority. With the growing number of private property owners participating in the program and the number of acres under treatment increasing cumulatively, additional staffing resources will be needed over the next three years to effectively continue the SFB Integrated Pest Management program. Staff projects the District will need to increase the number of intern hours dedicated to this project by 50%at a cost of $5,565 annually. R-I 1-40 Page 3 FISCAL IMPACT When the District Board of Directors approved the I 0-year plan (2006-2016) for SFB in 2005, it was estimated that $1.2 million dollars would be spent on this program. However, not including grant funds and labor received from other organizations, from FY 2006 through FY 2012, the District will have spent $445,3)68 on the SFB Integrated Pest Management Program in three main categories: 1) $67,552 for control of SFB on non-District land; 2) $50,877 for control of SFB on District preserves; and; 3) $326,939 for consultant services and staff time in overall management of the program, including design of the integrated pest management program, public outreach, and environmental review. PUBLIC NOTICE Public notice was provided as required by the Brown Act. Notices were also sent to persons requesting notice of resource management activities and to property owners and residents in the vicinity of Thornewood, El Corte de Madera, and La Honda Creek Open Space Preserves. CEQA COMPLIANCE On March 26, 2009,the District approved a Negative Declaration pursuant to the California Environmental Quality Act for the SFB Integrated Pest Management Program. District staff is reviewing this document to determine what further review under CEQA is necessary to control slender false brome in creek systems. Staff expects to circulate a Subsequent Negative Declaration assessing expansion of this program into riparian areas for public review in late fall and to be finalized by the end of 2011. This progress report to the Board is for informational purposes only and is not a project under CEQA. NEXT STEPS District management efforts so far have involved the removal of SFB from woodland areas but have not addressed treatment options for the removal of SFB from sensitive riparian habitats. With the future completion of the Subsequent Negative Declaration, and upon Board approval, the District will start removing SFB from a 2.6-acre section of Dennis Martin Creek in the Thornewood Open Space Preserve and will start planning control of SFB in other creeks. Treatment of SFB on District lands will continue until no more re-growth occurs. The SFB Coordinator will continue to apply for grants and coordinate treatment of SFB on adjacent private lands. Attachment(s) 1. Attachment A: Status of Slender False Brome on Private Property 2. Attachment B: Slender False Brome on District Preserves Prepared by: Ellen Gartside, Slender False Brome Coordinator Contact person: Same as above. Graphics prepared by: Zachary Alexander, Planning Technician CL �►`► • �� ® ��_ �� + tin• 35 1 1-1 uMAM a M IL WA ♦ .♦ � �� nwo ON rA ji IYI_ FOR rk4LO _. 41, ;k � .+�w..��'1 tip■ '1 I OPEN SPACE s Wunde ich I;-*unt i Park tH• H d = - l Schilling c "-\ r Lake L a 4awrenegC. ARd c - s � a lrr iMt� j N Fr 5 Area of j Kelly Hill 6 N J . Slender False Brome in District Preserves: 2009-2011 Midpeninsula Regional • Slender False Brome Private Property Open Space District (MROSD) fPp-� MROSD Preserves Land Trust Other Protected Open Space e or Park Lands Other Public Agency July, 2011 Management Agreement Private Property Miles0 0.5 1 While the District strives to use the best available digital data,this data does not represent a legal survey and is merely a graphic illustration of geographic features. 5 Midpeninsula Regional ' Open Space District R-11-83 Meeting 11-21 August 10, 2011 AGENDA ITEM 8 AGENDA ITEM Award of Contract with Grossmann Design Group to complete the contract documents for the anticipated demolition of structures at the former Almaden Air Force Station on Mount Umunhum GENERAL MANAGER'S RECOMMENDATION For S.E.A. Authorize the General Manager to enter into a professional services agreement with Grossmann Design Group of San Francisco, CA for an amount of$110,000, plus a contingency of$10,000, for a total contract amount of$120,000, in support of the Mount Umunhum demolition project at Sierra Azul Open Space Preserve. SUMMARY In 2009, the District received a federal grant for $3.2 million to begin the cleanup activities at the former Almaden Air Force Station. The District partnered with the United States Army Corps of Engineers (USAGE)to complete the first phase of the cleanup, which included remediation of hazardous materials. The remediation activities were completed in July 2011. The second phase of work under the federal grant is to begin the demolition of the structures. In order to competitively bid this scope of work, technical consulting services are needed to assist the District with preparing a comprehensive set of demolition contract documents. DISCUSSION History In 1986, the District acquired the former Almaden Air Force Station (Almaden AFS) and all of its remaining facilities on Mount Umunhum and Mount Thayer(see Report 86-20) with the intent to restore the area to a natural condition and provide public access. In December 2009, the United States Congress appropriated $3.2 million for the cleanup of Mount Umunhum. A separate but closely tied District-funded project, the Mount Umunhum Environmental Restoration and Public Access Project(Restoration and Public Access Project), consists of the public planning and California Environmental Quality Act (CEQA) review processes to develop a final site plan and project description for Mount Umunhum. The input and information gained R-1 1-83 Page 2 as part of the Restoration and Public Access Project is helping to inform the site demolition and will be integrated into the demolition contract documents. Demolition Contract Document Requirements District staff met with the County of Santa Clara Planning and Development Department to determine the requirements for the demolition of structures at Mount Umunhum. A demolition permit will be required. In addition, demolition of any structures over fifty years old requires an historic resource evaluation to assess potential historic significance prior to issuance of a demolition permit. All the buildings at the former Almaden Air Force Station are in excess of 50 years old, and a Historic Resource Study (Page & Turnbull, March 2011) has determined that there are no significant buildings on site. Before any structures can be demolished, CEQA compliance for the Mount Umunhum Site Restoration and Public Access project, which includes an environmental analysis of the site demolition and various scenarios for final disposition of the radar tower, must be completed. Demolition Documents Scope of Work The demolition contract documents shall be comprised of plans, performance and prescriptive specifications, and regulatory requirements to complete the demolition of all structures, foundations, and utilities. Post-demolition scope includes rough grading for positive drainage and implementation of soil stabilization measures. The contract documents will incorporate additive or deductive alternates to allow demolition to be phased to align with available funding, if required. The contract documents will include requirements for recycling, salvage, and waste hauling. Specific attention will be given to opportunities for grinding, stock-piling and re-use of concrete on site. Although the prior remediation project stabilized all lead-based paint, there is the potential some materials will have unstable lead painted surfaces at the time of demolition. Salvage, demolition and hauling requirements for surfaces with stable and unstable lead paint will be addressed in the demolition contract documents. Given the high level of technical and specialized expertise needed to prepare these demolition contract documents, District staff solicited the assistance of qualified professional consultants as described below. Request for Qualification and Proposals for Demolition Contract Documents Staff released a Request for Qualifications and Proposals (RFQP) for professional consultant services to prepare Demolition Contract Documents on June 10, 2011, via direct e-mail and posting on the District website. The RFQP requires a consulting team to prepare contract documents to facilitate competitive bidding for the demolition of structures at Mount Umunhum. The deadline for submission of proposals was July 1, 2011. A total of five (5)proposals were received as shown below: Firm Location Cost Proposal Cody Anderson Wasney Palo Alto $106,170.00 Prudent Technologies San Francisco $72,889.00 Northgate Environmental Oakland $163,239.80 Page & Turnbull San Francisco $132,490.00 1 John Grossmann Design Group San Francisco $110,000.00 The proposals were carefully evaluated by staff to assess the qualifications of each proposal, including the relevant experience preparing demolition documents, quality of the proposal, the R-11-83 Page 3 proposed implementation approach, and overall team expertise. Four firms were interviewed and ranked by staff as to qualifications, then hourly rates and other consultant costs were considered. Based on the criteria outlined in the RFQP, staff has determined that Grossmann Design has the most significant relevant experience preparing similar demolition project contract documents and addressing the unique requirements for recycling, salvage and waste management, and is therefore the most qualified proposer. Pre-Qualification List At the meeting of January 27, 2010 (see Report R-10-24), the Board amended the District's policy regarding selection of consultants for professional services to state that, once a consultant has been determined to be qualified to perform the category of professional services sought via the Request for Proposals (RFP) selection process, staff may maintain files of such qualified consultants for a two-year period. During that period, such consultants may be retained without repetition of the RFP process. Using the pre-qualification process for such consultants will result in significant efficiency. Staff will always consider cost of service in the final decision to retain a pre-qualified consultant. Accordingly, the five firms who submitted proposals were determined to be qualified and competent to provide demolition contract documents, have been placed on a pre-qualification list, and are eligible to be selected to provide the District with design and engineering services for other projects. FISCAL IMPACT Federal Appropriation The District received a $3.2 million federal appropriation in Fiscal Year 2010-11. Of these funds, $1,304,771 have been granted directly to the District for project management costs, professional services, and demolition contracting associated with the Remediation and Demolition project. The District will submit the $110,000 contract cost associated with preparation of the Demolition Contract Documents and any contingency expended, for reimbursement under the federal grant. District Budget At the Regular Board meeting of March 23, 2011, $582,500 was approved as part of the FY2011-12 budget for at the remediation work at Mount Umunhum, which includes site demolition and cleanup (see Report R-10-53). The proposed contract with Grossmann Design Group to complete the contract documents for structures demolition is expected to span two fiscal years. Sufficient budget has been set aside this fiscal year to cover expenses under this contract for work completed through March 31, 2012. PUBLIC NOTICE Notice has been provided as required by the Brown Act. No additional notice is required. R-11-83 Page 4 CEQA COMPLIANCE Retention of professional consultants to prepare demolition contract documents does not constitute a project under CEQA as it will not result in a direct physical change in the environment [CEQA Guidelines Section 15060(c)(2)]. As part of the Mount Umunhum Environmental Restoration and Public Access Project, District staff is preparing to release a Draft Environmental Impact Report that evaluates the historic significance of the remaining structures and the options for demolition. The preparation of contract documents for the structures demolition will integrate any final CEQA findings, and no demolition will commence until the public planning process is complete and the final EIR has been certified by the District Board. NEXT STEPS Upon Board authorization, the General Manager will execute a contract with John Grossmann Design Group for$110,000 for professional services to complete demolition contract documents for the Mount Umunhum site. A $10,000 contingency will be set aside to allow for any additional professional services, for a total authorization of$120,000. Prepared by: Gina Coony, Project Manager Contact person: Same as above it I II For S.EA Midpeninsula Regional Open Space District r R-11-81 Meeting 11-21 August 10, 2011 AGENDA ITEM 9 AGENDA ITEM Approval of Merit Award for the Board Appointees: General Manager, General Counsel and District Controller BOARD APPOINTEE EVALUATION AD HOC COMMITTEE'S RECOMMENDATIONS 1. As a result of the Board's evaluation of the performance of the District's Board Appointees for Fiscal Year 2010-11, the Ad Hoc Board Appointee Evaluation Committee recommends a 5% meritorious pay award for its Appointees. 2. Adopt the attached resolutions approving merit pay awards as set out in Recommendation 1. SUMMARY The Board of Directors has completed its annual evaluation process for its Board Appointees: the General Manager, General Counsel, and District Controller. Based on the Board's evaluation process and system, and based on the Board's year-end review of the Action Plan and Budget for FY 2010-11, the Committee recommends that the Board Appointees be granted merit pay in the amount of 5% of salary for their performance in FY 2010-11. Consistent with the agreement with the Field Employees Association, a cost of living adjustment(COLA) will not be applied to any District employees' pay between April 1, 2011 and July 1, 2012. In addition, Board Appointees and Senior Managers will forego any merit awards for that same period. DISCUSSION Pursuant to the Board's system and process for annual evaluation of its Appointees, the Board utilized this process and, at its meeting of July 7, 2011,. completed this year's evaluation of the performance of its Board Appointees during FY 2010-11. The Board was pleased with the performance of its Appointees during the last fiscal year and the resulting success of District programs and projects carried out as part of their duties. The Board Appointee Evaluation Ad Hoc Committee was instructed to serve as the District's negotiator and met with the Board Appointees to discuss their performance and compensation. Based on the Board's review of the Board Appointee's performance during the evaluation period, i � _+ -�n��,��+ R-I 1-81 Page 2 the Committee recommends that a 5% meritorious pay award of current salary be granted to each Appointee. This award is not a salary adjustment, but rather is granted as a one-time award in recognition of their excellent overall performance during FY 2010-11. In view of short-term revenue projections, the District and the Field Employees Association agreed to a 15-month status quo contract extension, with zero COLA, for the period extending from April 1, 2011 through July 1, 2012, and similarly applied this to all District employees, including Board Appointees. In addition, the Board Appointees, as well as Department Managers, have agreed to forego any consideration for performance-based meritorious pay that could be earned during that same 15-month period. The accomplishments for FY 2010-11, upon which the Appointees' evaluations were based, were described in detail in the Year-End Review of the FY 20 10-11 Action Plan and Budget presented at the June 22, 2011 Board meeting (Reports R-I 1-17 and R-11-68). Further evaluation comments from the Board Appointee Evaluation Ad Hoc Committee and the full Board were provided to each Appointee during their performance evaluations. BACKGROUND OF PRIOR COMPENSATION ADJUSTMENTS In the FY 2008-09 review period, the Board was also very pleased with its Appointees' performance. However, given the deteriorating and uncertain local revenue circumstances at that time, the Board determined it was not appropriate to provide any meritorious pay awards or salary parity adjustments for its Appointees during that year. Accordingly, no merit pay or salary parity adjustments were awarded during the FY 2008-09 performance review period. The Appointees were, however, granted the same 2.5% COLA as District staff during that same period. In the FY 2009-10 performance review period, the Appointees were granted the same 2.5% COLA as District staff and merit pay awards of 5%. At that time, the Board reviewed a compensation study for the General Manager position and found that the District's General Manager's salary was 22.29% below the market median based on a survey of comparable agencies. The Board also reviewed the salary differential between the General Manager and the General Counsel classifications and found that the market median differential is 9.11%, with a range of 8.03%to 21.06%. The Board Appointee Evaluation Ad Hoc Committee recommended that some parity adjustment was needed at that time to keep the General Manager position from falling further behind the market both in terms of internal relationship to the General Counsel's salary and to the market median for comparable positions. Accordingly, the Committee recommended a 4.5% salary parity adjustment for approval by the full Board. After inclusion of the 2.5% COLA and the 4.5% parity adjustment, the General Manager's salary went from 22.29% below market median to 15.29% below median and the internal relationship differential with the General Counsel went from 0.17% above to 4.68% above. The Board approved a4.5%parity adjustment and 5%merit award to the General Manager. However, the General Manager requested to forego the 5%merit award in light of the reduced revenue projections and the Board accepted this request. R-1 1-81 Page 3 FISCAL IMPACT Funding for the proposed merit pay totals $18,735.91 and has been included in the FY 2011-12 budget. If approved, the following merit awards would be distributed to the respective Board Appointees: General Manager Merit Pay: $9,057.67 General Counsel Merit Pay: $8,653.22 District Controller Merit Pay: $1,025.02 PUBLIC NOTICE All public noticing requirements of the Brown Act have been met. No additional notice is necessary. CEQA COMPLIANCE This item is not subject to the California Environmental Quality Act. NEXT STEPS If approved, merit pay awards would be processed via the District's ADP payroll system and included in the upcoming pay period. Attachments: 1. Resolution Approving Merit Pay Award for the General Manager 2 Resolution Approving Merit Pay Award for the General Counsel 3. Resolution Approving Merit Pay Award for the District Controller Submitted by: Board Appointee Evaluation Ad Hoc Committee (President Hassett and Directors Cyr and Riffle) RESOLUTION NO. I 1-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT APPROVING A MERITORIOUS PAY AWARD FOR THE DISTRICT GENERAL MANAGER WHEREAS, effective April 14, 2008, the Board of Directors of the Midpeninsula Regional Open Space District entered into a District General Manager Employment Agreement("Agreement") with Stephen E. Abbors, employing him as the District's General Manager; and WHEREAS, on July 8, 2009 and on July 14, 2010, the Board of Directors amended the Agreement to reflect the General Manager's annual performance evaluation, implement Board adjustments to compensation, and make other changes as needed; and WHEREAS, the Agreement provides for an annual review of the General Manager's performance and determination of meritorious pay based upon criteria and objectives to which the Board and General Manager have agreed, which the Board implements through the Board's System for Annual Evaluation of its Board Appointees; and WHEREAS, the Board, based on its annual review of the General Manager's performance, desires to grant him a meritorious pay award of 5 percent of his current annual salary in recognition of his performance during Fiscal Year 2010-11; NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Midpeninsula Regional Open Space District does grant the General Manager by adoption of this resolution a meritorious pay award in the amount of 5 percent of his current annual salary. RESOLUTION NO. I I-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT APPROVING A MERITORIOUS PAY AWARD FOR THE DISTRICT GENERAL COUNSEL WHEREAS, effective May, 2004, the Board of Directors of the Midpeninsula Regional Open Space District originally entered into a District General Counsel Employment Agreement ("Agreement") with Susan M. Schectman, employing her as the District's General Counsel which Agreement has been amended from time to time as necessary; and WHEREAS, on July 8, 2009 and on July 14, 2010, the Board of Directors amended the Agreement to reflect the General Counsel's annual performance evaluation, implement Board adjustments to compensation, and make other changes as needed; and WHEREAS, the Agreement provides for an annual review of the General Counsel's performance and determination of meritorious pay based upon criteria and objectives to which the Board and General Manager have agreed, which the Board implements through the Board's System for Annual Evaluation of its Board Appointees; and WHEREAS, the Agreement provides for an annual review of the General Counsel's performance and determination of meritorious pay, which the Board has completed; and WHEREAS, the Board, based on its annual review of the General Counsel's performance, desires to grant her a meritorious pay award of 5 percent of her current annual salary in recognition of her performance during Fiscal Year 2010-2011; NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Midpeninsula Regional Open Space District does grant the General Counsel by adoption of this resolution a meritorious pay award in the amount of 5 percent of her current annual salary. RESOLUTION NO. I 1-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT APPROVING A MERITORIOUS PAY AWARD FOR THE DISTRICT CONTROLLER WHEREAS, effective July 8, 2009, the Board of Directors of the Midpeninsula Regional Open Space District entered into the most recent District Controller Employment Agreement ("Agreement") with Michael L. Foster, employing him as the District's Controller; and WHEREAS, the Agreement provides for an annual review of the District Controller's performance and determination of meritorious pay, which the Board has completed; and WHEREAS, on July 14, 2010, the Board of Directors amended the Agreement to reflect the District Controller's annual performance evaluation, implement Board adjustments to compensation, and make other changes as needed; and WHEREAS, the Agreement provides for an annual review of the District Controller's performance and determination of meritorious pay based upon criteria and objectives to which the Board and District Controller have agreed, which the Board implements through the Board's System for Annual Evaluation of its Board Appointees; and WHEREAS, the Board, based on its annual review of the Controller's performance, desires to grant him a meritorious pay award of 5 percent of his current annual salary in recognition of his performance during Fiscal Year 2010-2011; NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Midpeninsula Regional Open Space District does grant the Controller by adoption of this resolution a meritorious pay award in the amount of 5 percent of his current annual salary. I I Midpeninsula Regional Open Space District r , R-11-82 Meeting 11-21 August 10, 2011 AGENDA ITEM 6 AGENDAITEM Approval to Add the Mindego Gateway Project as a New Key Project to the District Fiscal Year 2011-12 Action Plan and Authorization to Enter into a Partnership Agreement reement with Peninsula Open Space Trust(POST) to Designate Roles and Responsibilities for Project Implementation GENERAL MANAGER'S RECOMMENDATIONS orS.E.A. 1. Approve the addition of the Mindego Gateway Project as a New Key Project to the District Fiscal Year 2011-12 Action Plan, with the Planning Department acting as lead. 2. Authorize the General Manager to enter into an agreement with POST to fund specific tasks associated with the planning, design, and construction of the Mindego Gateway Project at Russian Ridge Open Space Preserve. SUMMARY The District has an opportunity to expand its long-standing partnership with Peninsula Open Space Trust (POST)by working together not only on acquisition projects, but also on new capital improvement projects. At this time, POST is specifically interested in funding a new staging area and associated trails near the proposed Audrey Rust Commemorative Site in the Mindego area of Russian Ridge Open Space Preserve. To begin this exciting new partnership and meet POST's scheduling goals, the District would need to include this proposed new project as part of the Fiscal Year 2011-12 Action Plan. DISCUSSION The 97.5 acre former Silva Property and the 1,100-acre former Mindego Ranch were recently added as part of Russian Ridge Open Space Preserve. The recreation potential, diverse natural resources, and threat of development made Mindego Ranch a high priority for conservation. The property is a stunning example of the upland San Mateo Coast and provides significant habitat and biodiversity values, with four major aquatic sites harboring a population of the federally- endangered San Francisco garter snake. Mindego Hill, a 2,143-foot peak visible for miles and offering panoramic coastal views from its summit, represents a pinnacle of the long-standing conservation partnership between POST and the District. The recently-purchased, former Silva Property located approximately one mile to the east, offers views of Mindego Hill and the Pacific __ _ _ �,�,..r._.. i I R-1 1-82 Page 2 coast beyond, as well as important frontage onto Alpine Road. As such, POST has kept these two properties in mind as a focus for funding potential public access improvements. This intention was memorialized as part of the former Silva property purchase agreement between the District and POST, in which POST reserved the right to work with the District to potentially implement a commemorative site, staging area, and trail at a later date (see Report R-I 1-14): Working collaboratively with POST, study the feasibility of a POST-sponsored recognition site landscape feature potentially including a public staging area and trail. Implementation of such a feature is contingent on future environmental review and regulatory requirements. Consistent with the Purchase Agreement, POST first approached the District with the desire to exercise its right to a Recognition Site. The District has been working with POST to develop and obtain Board-approved design guidelines for this feature and review preliminary plans (see Report R-11-66). During this period of time, POST also expressed its desire to partner with the District to move forward with a new staging area and select trails in this area of the Preserve. Based on a very preliminary evaluation of the Silva property and surrounding lands, District staff has concluded that a staging area and associated trails are feasible at this site and desirable to improve public access, establish new trail loops, open the Mindego area of the Preserve, and address future parking use. The former Silva property contains a graded area along Alpine Road that provides an ideal location for a staging area. Based on a preliminary review of the site and a parking needs assessment for the Preserve conducted by staff, a new staging area for approximately 25 cars with an overflow parking area to accommodate special events seems appropriate at this time (pending further review). New, short trails would connect the staging area, the future Commemorative Site, and the existing Mindego Ridge Trail. The surrounding land also lends itself to a new, approximately 1-mile trail that could connect the proposed staging area to the Ancient Oaks 'Frail to the north, providing a potential loop opportunity with the Mindego Ridge Trail (see Attachment A, Project Area Map). POST has begun fundraising for these desired improvements and expects to complete its fundraising campaign by the end of the calendar year. At this time, and if approved by the Board, POST anticipates sufficient funding will be available to cover the costs for planning, design, permitting, and construction of the proposed project, as well as project management (staff time). Depending on the total funds raised, and Board project approval, POST will also consider reimbursing the District for staff and materials costs associated with long-term facility maintenance. In order for the District to proceed with this proposed project, District staff will need to re- prioritize staff assignments on current District projects with the expectation that lower priority projects will be temporarily halted and their schedules extended. District staff will consider using the savings resulting from POST reimbursement of District project management staff to hire temporary employees to backfill capacity for the District's affected projects. If this item is approved by the Board, roles and responsibilities would be assigned as follows: District Roles and Responsibilities • Include the proposed project as part of the FY2011-12 Action Plan. i R-1.1-82 Page 3 i • Enter into a Partnership Agreement with POST that details the roles and responsibilities for the project as set out in this report. • Dedicate staff time to manage the overall project from planning through implementation and close out. • Manage the following project elements: a)new staging area along Alpine Road; b) new trail connection to Ancient Oaks Trail; c)habitat assessment for this area of the Preserve to identify management and design recommendations that will allow implementation of the project while protecting highly sensitive natural resources. • Incorporate the new Mindego Hill Trail into the larger Mindego Gateway project to review all proposed public access improvements together under CEQA. • Establish the overall project budget and schedule with POST review and concurrence. • Conduct public contracting and bidding for all consulting services and contracted work as required for completing the District-managed components of the project. • Dedicate field staff time to build suitable portions of the project(e.g. trail construction). • Assign the Use and Management (U&M) Committee to review planning and design for each project component. • Assign the Legislative, Finance, and Public Affairs Committee (LFPAC) to review trail naming requests. • Provide final District Board approval for all components of the project. POST Roles and Responsibilities • Enter into a Partnership Agreement with the District that details the roles and responsibilities for the project as set out in this report. • Reimburse District for all planning project management staff; all required consultant services (with the exception of$25,000 for archaeological surveys, which is already included in the District's Action Plan)); all agency plan check and permitting costs; and all construction implementation costs, including field staff time for trail construction, based on a mutually agreed-upon project budget. • Dependent on fundraising, fund long-term maintenance costs for all components of the p g� g P project. • Manage the Audrey Rust Commemorative Site from planning through implementation and close out; adhere to District Board-approved Design Guidelines; provide District with project milestone updates and integrate District review comments; obtain final District design approval and include District as part of construction inspections. FISCAL IMPACT If this item is approved by the Board, the Partnership Agreement with POST will confirm in writing that all of the District's costs associated with the Mindego Gateway project, as delineated above, will be funded by POST. As such, no additional capital funding is required to be allocated by the District for implementation. The District may use salary savings gained from this partnership to pay for temporary staffing to continue District projects that would otherwise have to be deferred as a result of adding the Mindego Gateway Project to the District FY2011-12 I Action Plan. Therefore, these improvements would result in no fiscal impact to the District budget and would not require a re-evaluation of the Operating or Capital Improvement Program Guidelines. Outside funding for long-term maintenance will be dependent on additional fundraising success by POST. i R-11-82 Page 4 PUBLIC NOTICE Notice has been provided as required by the Brown Act. No additional notice is required. CEQA COMPLIANCE The recommended Board actions will not result in a direct change to the physical environment. � These actions merely begin the planning phase of a new proposed project, which will be subject to future environmental review to be completed at a later date, prior to any physical implementation. NEXT STEPS Upon Board action, the Planning Department would include the Mindego Gateway Project as a New Key Project to the District Fiscal Year 2011-12 Action Plan and formally set aside staff resources for work on this project. District staff would also begin the detailed planning and design process, including working with the U&M Committee in public meetings starting in the fall to evaluate design goals and assumptions and with LFPAC to review trail naming requests. District staff expects to complete the design and environmental review by the first quarter of 2012, at which time the item would return to the Board for approval. Permitting would occur in 2012, with phased project implementation expected in 2012 through 2014. Concurrently, staff will consider hiring temporary employees to backfill the staff time that is allocated to this project to avoid significant impacts to existing District projects. p J g P g p J w' T he General Manager will enter into a Partnership Also, to formalize the partnership with POST, t g p Agreement that will clearly designate roles and responsibilities prior to entering into future consulting services contracts in support of the project. District staff p expects to resent to the Board a series of consultant contracts at the next Board P meeting for design and environmental review (CEQA) services. Attachments: A. Project Area Map Prepared by: Ana Ruiz, AICP, Planning Manager Lisa Bankosh, Open Space Planner 11 Gina CoonY, p p Open Space Planner II Contact person: Ana Ruiz, AICP, Planning Manager II III a E Area Ole , Borel 2572' id T 3 � Russian � . R i d g anci r s Mindegd Ranch { ` g o Hi, 3 '4 Al w u . "Y 4 r r! %y��y� '• � S k I i � . Y t RP Attachment A: Project Area Map Midpeninsula Regional OProposed Commemorative Site Location Proposed New Trail O Gate Coastal Protection Area Open Space District August 2011 Proposed Staging Area Location Roadside Parking a Feet 0 250 500 1.000 Midpeninsula Regional Open Space District M � L To: Board of Directors From: Stephen E. Abbors For S.E.A. Date: August 5, 2011 Re: FYIs GENERAL MANAGER Stephen E Abbors Regional Op2C15pdC2 Midpeninsula Regional Open Space District BOARD OF DIRECTORS Pete Slernens Yorlko Kishir"noto Jed Cyr Curt Riffle Nonette Hanko Larry Hassett July 28, 2011 Cechy Harris Kurt Lueneburger Santa Clara Valley Water District 5750 Almaden Expressway San Jose, CA 95118-3686 klueneburger@valleywater.org Subject: Notice of Preparation of a Draft Subsequent Environmental Impact Report for the Permanente Creek Flood Protection Project Dear Mr. Lueneburger, The Midpeninsula Regional Open Space District(MROSD) offers the following comments on the Draft Subsequent Environmental Impact Report(SEIR) for the Permanente Creek Flood Protection Project (Project). Our comments are focused on the proposed Rancho San Antonio Flood Detention Facility(RSA Facility) and the proposed improvements and changes associated with this specific facility,which would all be located immediately adjacent to MROSD's Rancho San Antonio Open Space Preserve and the Rancho San Antonio County Parks. The recent changes to the RSA Facility that are now being considered under the California Environmental Quality Act(CEQA) include: • Enlarging the footprint of the flood detention area, which requires removing a portion of the equestrian parking area that services both Rancho San Antonio County Park(County Park)and Ranch San Antonio Open Space Preserve(Preserve), and building a new parking area. • Building a secondary detention basin upstream of the cemetery maintenance bridge. • Potentially installing larger and longer detention basin outlet pipes for the RSA Facility. The potential impacts of concern include: recreation,traffic, aesthetics, biological resources, public safety,water quality,noise, and dust. Recreation and Traffic Impacts: The changes to the proposed project would result in significant disruptions to existing recreational uses that are likely to create indirect impacts to traffic. Impacts to recreation and visitation would occur if any amount of parking,whether for vehicles or equestrian trailers, is removed without first providing replacement parking. This is of great concern given the very high visitation that the County Park and Preserve both receive on weekdays and weekends. According to trail counts,this area receives approximately 1,500 visitors each day on average and many of these visitors arrive by car to access trails and visitor facilities. x One of the proposed changes to the project calls for removing a portion of the equestrian parking area, - q b which provides parking to not only equestrian trailers but also vehicles. It is common to see this parking s J 33F Y� j 33o Distel Circle Los Altos,CA 94022 I 6So.691.1200 6So.691.0485 www.openspace.org i area filled to capacity during the highest visitation periods, namely morning, evenings,and weekends. The SEIR identifies construction of a new staging area to presumably replace the equestrian staging that would be removed. It is unclear where the new staging would be constructed and whether it would be constructed prior to the removal of existing parking. We recommend constructing the proposed new parking area ahead of removing any existing parking to avoid significant impacts to traffic and recreation. Without this replacement parking,visitation will be significantly impacted and visitors will be forced to park in the adjacent neighborhood areas and along Cristo Rey Drive, impacting traffic patterns along these narrow roadways. The proposed changes to the RSA Facility also have the potential to create significant disruptions to recreation for visitors usingthe Hammond Snyder Loop Trail South Meadow Trail and PG&E Trails Y p , which together are some of the most popular trails in this high-use area. The SEIR will need to adequately mitigate recreational impacts if these trails and/or trailheads are required to be either temporarily closed for construction or permanently closed to allow for the expanded construction footprint. The Hammond Snyder Loop Trail provides a critical County Park and Preserve access connection for nearby residents from the adjacent neighborhood. Severing this trail connection would substantially reduce recreational access and place greater demand on parking facilities that are already in high demand. The PG&E Trail a very popular, well-used trail that is highly valued for its challenging climb and spectacular vistas, and provides critical connections to interior Preserve trails. The South Meadow Trail provides an important connection between the PG&E Trail and other trails leading off the northern parking area. If any trail connection is severed, alternate trails to maintain these connections would be needed to avoid impacts to recreation and parking. Given the high visitation, neither the County Park nor Preserve is believed to be able to sustain a shift in use patterns that would be created if trails and trailheads were closed. Such a shift would result in a substantial increase in use on fewer trails and therefore increased impacts and a carrying capacity concern for these trails. Maintaining the existing trail mileage, number ftr trailheads, be o a� eads and trail network is critical to continue i to disperse erse trail u g , p use. Temporary trail closures may also result in impacts given high use levels. To reduce such impacts, please consider limiting temporary closures to weekdays to allow use on weekends when use is highest. Also,to further reduce impacts on recreation and traffic, all staging areas to remain, visitor entry points, trailheads, and other visitor facilities must not be utilized or interfered with by the proposed project. Aesthetic Impacts: The proposed expanded flood detention basin and secondary detention basin should be designed and constructed to be as visually unobtrusive as possible. Please ensure that design elements and finished contour lines be as natural as possible. We recommend a meandering finish to the basin edges and different side slope gradients within the basins. As previously discussed, site plantings for these enlarged and new areas should be reviewed and approved by Santa Clara County Parks. Long-term planting maintenance needs should also be determined, funded, and staffed. Any existing trees located between the parking lots and both the enlarged and secondary basins should be maintained and augmented where needed to fill in visual gaps. Biological Resources Impacts: Please ensure that the existing split-rail fence and undisturbed riparian corridor be maintained adjacent to the proposed enlarged basin. The fence was purposely placed to protect and maintain the adjacent riparian corridor during the installation of the paved Hammond Snyder Loop Trail. The California red-legged frog has also been observed here, substantiating the need for the protection of the riparian corridor. 2 Public Safety and Water Quality Impacts: The proposed changes to the RSA Facility would occur in a high use area located fairly close to a residential neighborhood. The proposed facility may create potential safety hazards associated with this location. The Water District should address potential safety issues related to the short and long term physical operation of the facility construction, infrastructure, and maintenance.The SEIR should also include an evaluation of water quality and/or sediment accumulations of concern associated with the proposed expanded basin operations, given the industrial and urbanized watershed upstream. Noise and Dust Impacts: Of concern is also the level of dust and noise that will be generated and the impacts this will create to visitors and to the tranquil nature experience that the Preserve and County Park provide. As previously discussed, we continue to recommend the construction of a temporary noise barrier between minimally the existing lot,adjacent trailheads, and the proposed basin to mitigate noise and dust exposure. Thank you for the opportunity to comment on the Permanente Creek SEIR. Given that the proposed changes to the Permanente Creek Flood Protection Project may result in substantial impacts to County Parks and the Preserve, please work closely with County Parks and MROSD staff to clarify the details of the proposed changes to the RSA Facility and to explore how the project may be modified to minimize potential impacts. It is unclear at this time whether any trails or trailheads would need to be closed either temporarily for construction, or permanently to allow long-term operation of the project. Temporary closures would need to be coordinated with County Parks and MROSD together. If any permanent closures are anticipated,these need to be identified and discussed early. Also, it is unclear whether the replacement parking would be in place prior to any parking removal. This timing should also be discussed with County Parks and MROSD. If you have questions, please contact me or Matt Baldzikowski, Resource Planner II, at(650) 691-1200. MROSD looks forward to having these discussions with County Parks and the Santa Clara County Water District. Since ely, k� Ana Ruiz,AICP CJ Planning Manager cc: Jane Mark, Senior Planner Matt Baldzikowski,Resource Planner II Kirk Lenington, Senior Resource Planner Stephen E. Abbors, General Manager MROSD Board of Directors 3 i' I a i ; Midpeninsula Regional� Open Space District For Immediate Release • ' i Date: July 26,201 1 Contact: Rhea Maze,650.691.1200 x 566 MROSD seeks new Ombudsperson Deadline for applicants is August 22"d Los Altos, California[July 26,20111—The Midpeninsula Regional Open Space District(MROSD)is searching for a new Ombudsperson to serve in place of Carol Joyce,District Ombudsperson since 2004,who is moving out of state.The objective of this part-time,volunteer position is to help the District maintain positive relations with constituents and neighbors. The Ombudsperson's duties include following up on public inquiries or complaints in order to address misunderstandings or conflicts that have not been resolved by District staff. Responsibilities also include listening to constituent concerns,facilitating conflict resolution,gathering information,and educating concerned constituents on District polices or procedures and their purpose or effect. The Ombudsperson also locates resources to meet constituent needs,opens avenues of communication between the District and the public,and provides a written summary of citizen concerns to the Board of Directors. The District seeks a motivated candidate with strong facilitation and conflict resolution skills, familiarity with MROSD's mission and purpose,knowledge of land and property use issues,and how District programs fit into the greater region.The ideal candidate possesses the ability to communicate complex issues clearly and concisely in writing and excellent interpersonal,oral communication,and public speaking skills.Applications are being accepted until August 22,2011. To apply, applicants can submit an Ombudsperson Application and Supplemental Questionnaire,along with a current resume and letter of interest by August 22°d to: Midpeninsula Regional Open Space District 330 Distel Circle Los Altos,CA 94022 or,info@openspace.org More Information:Complete position information,including District application materials,may be obtained by calling(650)691-1200 or by visiting our web site at: htto://www_oDens ap ce.or_,about_uslombudsperson.asp. The Midpeninsula Regional Open Space District is an Equal Opportunity Employer. Applicants with disabilities may request accommodation by contacting the human resources department. Created by voters in 1972,the Midpeninsula Regional Open Space District has successfully protected nearly 60,000 acres of open space. The public enjoys the District's diverse and beautiful preserves 365 days a year. The District is an independent, non- enterprise, California special district whose mission is to acquire and preserve a regional greenbelt of open space land in perpetuity,protect and restore the natural environment,and provide opportunities for ecologically sensitive public enjoyment and education, www.openspace.org. I ................ Midpeninsula Regional Open Space District For Immediate Release # ' � I Date: July 25,2011 Contact: Rudy Jurgensen, 650.691.1200 x 525 Gordon bill boosts natural open space protection on peninsula Increased funds to help save land,protect clean air and water LOS ALTOS, California [July 25,20111 —Governor Brown today signed a bill authored by Assemblyman Rich Gordon(D-Menlo Park) extending the Midpeninsula Regional Open Space District's(MROSD) term to repay future promissory notes from 20 to 30 years, providing more funds to protect land on the peninsula. "The extended term will provide a huge advantage to taxpayers by giving us approximately 20 percent more in borrowing proceeds and allowing the District to save more land and better protect clean air and water," said Steve Abbors, MROSD's General Manager. Under California's Public Resources Code regional park and open space districts can issue promissory notes to acquire land and facilities. While the notes must be repaid within 20 years, Gordon's bill enables MROSD to pay the borrowed funds back over 30 years thereby using its existing revenue more effectively without adding any burden to the taxpayer. By paying future notes back to the borrower over a longer period of time, the open space District will receive lower annual interest rates, expand its debt capacity and, as a result, obtain significantly more money to purchase and preserve open space lands. "By providing Midpen an additional 10 years to repay authorized debt, AB 612 enables the district to more efficiently and effectively use their existing funds," noted Assemblyman Rich Gordon, a member of the Assembly Committee on Local Government. "This change will not increase property taxes paid by property owners, but it will provide the district with additional funds to permanently protect and restore lands, and provide opportunities for public recreation and environmental education." Promissory notes are a secure form of borrowing and the District enjoys exceptional credit ratings of S&P (AA) and Fitch(AA+). Created by voters more than 35 years ago,the Midpeninsula Regional Open Space District has successfully protected nearly 60,000 acres of open space.The public enjoys the District's diverse and beautiful preserves 365 days a year.The District is an independent,non-enterprise,California special district whose mission is to acquire and preserve a regional greenbelt of open space land in perpetuity,protect and restore the natural environment,and provide opportunities for ecologically sensitive public enjoyment and education. www.onenspace.ors Michelle Radcliffe From: Linda Houston [lindakayhs@yahoo.com] Sent: Wednesday, August 03, 2011 11:59 AM To: David Sanguinetti Cc: BOARD; Kate Drayson; Steve Abbors; Michelle Radcliffe; Sue Schectman; Brian Malone; Michael Newburn Subject: Fremont Older Easement Attachments: ResponseToDistrict7-28-1 1 doc Dave, III Attached is my response to your email which (which included attachments) concerning the Easement situation at Fremont Older Preserve. Thank you for your attention and I look forward to getting these issues solved. Regards, Linda Houston 408 996 3741 The Goal of Linda Houston — Fremont Older Open Space Preserve Road / Easement Situation i 1. Quit Claim Deed from Houston to MPOSD fora portion of road easement 2. Road Agreement Amendment Harris and Houston agree that the Quit Claim Deed and the Road Agreement Amendment go together in tandem. Mort Levine has said that he will not participate in voicing on Quit Claim and such as he is a renter/lease holder. 3. Repair the road, now, in an economical, cost effective manner Quit Claim Deed Houston will Quit Claim Deed that portion of road easement from Houston upper property line to Harris lower property line. Title of this portion of road is held by MPOSD with an easement j which Stuckey (Houston) never should have accepted/recorded. Houston is in the process of hiring a licensed surveyor to draw the Quit Claim Deed in a manner that is recordable by a Title company. Houston will pay costs of the Surveyor and the Recording. The Quit Claim Deed will remove Houston from any responsibility or involvement of this easement portion of the road. As a result, Houston will not participate in any repairs or maintenance, evaluation of bids, costs of this portion of road. At the time the Quit Claim Deed is recorded a new formula is required for Road Agreement as Houston no longer has easement responsibility fora portion of the road. Road Agreement will not terminate; but be Amended to reflect the two segments for cost responsibility. Segment# 1 i Includes Houston as a party to road responsibility of her remaining easement; and, Segment# 2 Houston is no longer a party to road responsibility as she has Deeded her easement back to the i land owner(MPOSD). Houston will not participate in determining any percentage/ formula of responsibility of easement holders of the portion of the road, Segment# 2, in the Road Agreement Addendum as she has given up her easement to this portion of road. As a result, the Road Agreement Amendment of cost percentage responsibility/ shared contribution percentages will be broken down to two separate parts. One part, Segment# 1 will include: Levine rental residence, adobe rental residence, MPOSD use, ranger residence; plus Harris & Houston residences. The second part, Segment# 2, will exclude Houston as she has no easement rights, responsibility to the road. Road Agreement Amendment Joel Harris and Linda Houston feel that havinga Road Agreement is essential/critical.g c t cal. Houston finds it very upsetting in Brian Malone's Cost Sharing Analysis, p. 1, "Therefore, I would suggest that we agree to dissolve the road agreement when it comes up for renewal in 2014 and use this analysis as the basis for negotiating a new agreement." I don't see how the other users, specifically Levine and Harris would agree to the percentages in this Cost Sharing Analysis. i First of all, the "Analysis" does not recognize the Quit Claim Deed; thus, dividing the road responsibility into two segments; one segment with Houston residence cost responsibility; one segment without Houston residence cost responsibility. With this "Analysis", Houston residence has percentage/ financial responsibility to the Harris property line. MPOSD has stated, in writing on p. 2 of the same document, that there is no problem with MPOSD for the Quit Claim Deed from Houston property line to Harris property line. Houston Agreement with "Analysis" letter dated July 28, 2011 1. Written formal bids over$10,000 and three verbal bids under$10,000. That would apply to each separate section. 2. MPOSD is exclusively responsible for that portion of 121 lineal feet on the easement through the parking lot. Wording in the Amendment will give the 121 lineal feet solely to the maintenance and up-keep of MPOSD. Need of all easement holders to have discussion to determine new cost responsibility The current percentage is: 4/8 MPOSD, 2/8 Levine and Adobe residences 1/8 Harris residence 1/8 Stuckey (Houston) residence At the May, 2011, Road Meeting, all (including Michael Newburn of MPOSD) concurred that MPOSD use has increased since the 1994 (17 years ago) Road Agreement was drawn and signed. My eyes, others eyes, MPOSD logs will show the increase. I suggest that the current percentage of cost is adjusted to reflect MPOSD increase. This will be reflected in Easement Segment# 1 (including Houston residence responsibility) and g ( g p Y) Easement Segment # 2 (excluding Houston responsibility/residence) Easement Segment# 1 g I 5/8 MPOSD (This is an increase to MPOSD of$1,250 on every $10,000 expenditure) 3/8 divided equally between Levine & Adobe residences, Harris residence Houston residence Easement Segment# 2 —To be determined by easement users MPOSD Levine & Adobe Harris Again, the above cost percentages is open to discussion, so on and so forth. Much Needed Road Repairs The road has not had maintenance or repairs for TWELVE years. We have had one Road Meeting in May, 2011, and it is time to get the Quit Claim Deed and Road Agreement Amendment completed so that we can proceed to these much needed repairs. Tree Branches Removed — The tree branch removal or tree maintenance does not become part of the Road Agreement. The proposed Amendment addresses maintenance and repair of the road. J Midpeninsula Regional Open Space District For Immediate Release Date: July 25,2011 Contact: Rudy Jurgensen, 650.691.1200 x 525 Gordon bill boosts natural open space protection on peninsula Increased funds to help save land,protect clean air and water LOS ALTOS, California [July 25,20111 —Governor Brown today signed a bill authored by Assemblyman Rich Gordon(D-Menlo Park) extending the Midpeninsula Regional Open Space District's(MROSD) term to repay future promissory notes from 20 to 30 years, providing more funds to protect land on the peninsula. "The extended term will provide a huge advantage to taxpayers by giving us approximately 20 percent more in borrowing proceeds and allowing the District to save more land and better protect clean air and water," said Steve Abbors, MROSD's General Manager. Under California's Public Resources Code regional park and open space districts can issue promissory notes to acquire land and facilities. While the notes must be repaid within 20 years, Gordon's bill enables MROSD to pay the borrowed funds back over 30 years thereby using its existing revenue more effectively without adding any burden to the taxpayer. By paying future notes back to the borrower over a longer period of time, the open space District will receive lower annual interest rates, expand its debt capacity and, as a result, obtain significantly more money to purchase and preserve open space lands. "By providing Midpen an additional 10 years to repay authorized debt, AB 612 enables the district to more efficiently and effectively use their existing funds," noted Assemblyman Rich Gordon,a member of the Assembly Committee on Local Government. "This change will not increase property taxes paid by property owners, but it will provide the district with additional funds to permanently protect and restore lands,and provide opportunities for public recreation and environmental education." Promissory notes are a secure form of borrowing and the District enjoys exceptional credit ratings of S&P AA and Fitch AA g ( ) ( ) Created by voters more than 35 years ago,the Midpeninsula Regional Open Space District has successfully protected nearly 60,000 acres of open space.The public enjoys the District's diverse and beautiful preserves 365 days a year.The District is an independent,non-enterprise,California special district whose mission is to acquire and preserve a regional greenbelt of open space land in perpetuity,protect and restore the natural environment,and provide opportunities for ecologically sensitive public enjoyment and education. www.opens pace.ort! t M Open Space District '' For Immediate Release ' Open Space District Date: July 26,201 1 Contact: Rhea Maze,650.691.1200 x 566 MROSD seeks new Ombudsperson Deadline for applicants is August 22nd Los Altos,California [July 26,20111—The Midpeninsula Regional Open Space District(MROSD)is searching for a new Ombudsperson to serve in place of Carol Joyce,District Ombudsperson since 2004,who is moving out of state.The objective of this part-time,volunteer position is to help the District maintain positive relations with constituents and neighbors. The Ombudsperson's duties include following up on public inquiries or complaints in order to address misunderstandings or conflicts that have not been resolved by District staff. Responsibilities also include listening to constituent concerns,facilitating conflict resolution,gathering information,and educating concerned constituents on District polices or procedures and their purpose or effect. The Ombudsperson also locates resources to meet constituent needs,opens avenues of communication between the District and the public,and provides a written summary of citizen concerns to the Board of Directors. The District seeks a motivated candidate with strong facilitation and conflict resolution skills, familiarity with MROSD's mission and purpose,knowledge of land and property use issues,and how District programs fit into the greater region.The ideal candidate possesses the ability to communicate complex issues clearly and concisely in writing and excellent interpersonal,oral communication,and public speaking skills.Applications are being accepted until August 22,2011. To apply, applicants can submit an Ombudsperson Application and Supplemental Questionnaire,along with a current resume and letter of interest by August 22nd to: Midpeninsula Regional Open Space District 330 Distel Circle Los Altos,CA 94022 or,info(alopen space.org More Information:Complete position information including District application materials,may be obtained b p p g pp Y Y calling(650)691-1200 or by visiting our web site at: http:l/w�,vw_.ove� ?ace.org,aboUt us/ombuds 7erson.as The Midpeninsula Regional Open Space District is an Equal Opportunity Employer. Applicants with disabilities may request accommodation by contacting the human resources department. Created by voters in 1972,the Midpeninsula Regional Open Space District has successfully protected nearly 60,000 acres of open space. The public enjoys the District's diverse and beautiful preserves 365 days a year. The District is an independent, non- enterprise, California special district whose mission is to acquire and preserve a regional greenbelt of open space land in perpetuity,protect and restore the natural environment,and provide opportunities for ecologically sensitive public enjoyment and education. www.openspace.org. Michelle Radcliffe From: Linda Houston [lindakayhs@yahoo.com] Sent: Wednesday, August 03, 2011 11:59 AM To: David Sanguinetti Cc: BOARD; Kate Drayson; Steve Abbors; Michelle Radcliffe; Sue Schectman; Brian Malone-, Michael Newburn Subject: Fremont Older Easement Attachments: ResponseToDistrict7-28-1 1.doc Dave, Attached is my response to your email which (which included attachments) concerning the Easement situation at Fremont Older Preserve. Thank you for your attention and I look forward to getting these issues solved. Regards, Linda Houston 408 996 3741 The Goal of Linda Houston — Fremont Older Open Space Preserve Road Easement Situation 1. Quit Claim Deed from Houston to MPOSD fora portion of road easement 2. Road Agreement Amendment Harris and Houston agree that the Quit Claim Deed and the Road Agreement Amendment go together in tandem. Mort Levine has said that he will not participate in voicing on Quit Claim and such as he is a renter/lease holder. 3. Repair the road, now, in an economical, cost effective manner Quit Claim Deed Houston will Quit Claim Deed that portio of road easement from Houston upper property line to Harris lower property line. Title of this portion of road is held by MPOSD with an easement which Stuckey (Houston) never should have accepted/recorded. Houston is in the process of hiring a licensed surveyor to draw the Quit Claim Deed in a manner that is recordable by a Title company. Houston will pay costs of the Surveyor and the Recording. The Quit Claim Deed will remove Houston from any responsibility or involvement of this easement portio of the road. As a result, Houston will not participate in any repairs or maintenance, evaluation of bids, costs of this portion of road. At the time the Quit Claim Deed is recorded a new formula is required for Road Agreement as Houston no longer has easement responsibility fora portion of the road. Road Agreement will not terminate; but be Amended to reflect the two segments for cost responsibility. Segment # I Includes Houston as a party to road responsibility of her remaining easement; and, Segment # 2 Houston is no longer a party to road responsibility as she has Deeded her easement back to the land owner(MPOSD). Houston will not participate in determining any percentage/formula of responsibility of easement holders of the portion of the road, Segment# 2, in the Road Agreement Addendum as she has given up her easement to this portion of road. As a result, the Road Agreement Amendment of cost percentage responsibility/ shared contribution percentages will be broken down to two separate parts. One part, Segment# I will include: Levine rental residence, adobe rental residence, MPOSD use, ranger residence; plus Harris & Houston residences. The second part, Segment# 2, will exclude Houston as she has no easement rights, responsibility to the road. Road Agreement Amendment Joel Harris and Linda Houston feel that having a Road Agreement is essential/critical. Houston finds it very upsetting in Brian Malone's Cost Sharing Analysis,p. 1, "Therefore, I would suggest that we agree to dissolve the road agreement when it comes up for renewal in 2014 and use this analysis as the basis for negotiating a new agreement." I don't see how the other users, specifically Levine and Harris would agree to the percentages in this Cost Sharing Analysis. First of all, the "Analysis" does not recognize the Quit Claim Deed; thus, dividing the road responsibility into two segments; one segment with Houston residence cost responsibility; one segment without Houston residence cost responsibility. With this "Analysis", Houston residence has percentage/financial responsibility to the Harris property line. MPOSD has stated, in writing on p. 2 of the same document, that there is no problem with MPOSD for the Quit Claim Deed from Houston property line to Harris property line. Houston Agreement with "Analysis" letter dated July 28,2011 1. Written formal bids over$10,000 and three verbal bids under$10,000. That would apply to each separate section. 2. MPOSD is exclusively responsible for that portion of 121 lineal feet on the easement through the parking lot. Wording in the Amendment will give the 121 lineal feet solely to the maintenance and up-keep of MPOSD. Need of all easement holders to have discussion to determine new cost responsibility The current percentage is: 4/8 MPOSD, 2/8 Levine and Adobe residences 1/8 Harris residence 1/8 Stuckey (Houston) residence At the May, 2011, Road Meeting, all (including Michael Newburn of MPOSD) concurred that MPOSD use has increased since the 1994 (17 years ago) Road Agreement was drawn and signed. My eyes, others eyes, MPOSD logs will show the increase. I suggest that the current percentage of cost is adjusted to reflect MPOSD increase. This will be reflected in Easement Segment# I (including Houston residence responsibility) and Easement Segment# 2 (excluding Houston responsibility/residence) Easement Segment# 1 5/8 MPOSD (This is an increase to MPOSD of$1,250 on every $10,000 expenditure) 3/8 divided equally between Levine & Adobe residences, Harris residence Houston residence Easement Segment# 2 —To be determined by easement users MPOSD Levine & Adobe Harris Again, the above cost percentages is open to discussion, so on and so forth. Much Needed Road Repairs The road has not had maintenance or repairs for TWELVE years. We have had one Road Meeting in May, 2011, and it is time to get the Quit Claim Deed and Road Agreement Amendment completed so that we can proceed to these much needed repairs. Tree Branches Removed — The tree branch removal or tree maintenance does not become part of the Road Agreement. The proposed Amendment addresses maintenance and repair of the road. Midpeninsula Regional ' Open Space District i To: Board of Directors From: Stephen E. Abbors Date: August 10, 2011 Re: Late FYIs I B A Y AREA •`. RIDGE TRAIL M C O U N C I L July 21, 2011 Hi Steve, Thanks so much to you and your team for a great day on Mt. Umunhum. Everyone was impressed with the planning efforts you are making for restoration and access to this spectacular and unique site. The Ridge Trail welcomes the opportunity to be involved and supportive of the project. The mountain is certain to become a very popular destination and I look forward to being one of the first to hike to the top on your new trail. Cc: Jed Cyr Sincerely, JUL 232011 1�1IDPENINSIJLA REGIONALOpet� SPACE DISTRICT 1007 GENERAL KENNEDY AVENUE,SUITE 3,SAN FRANCISCO,CALIFORNIA 94129-1405 PHONE(415)561-2595 FAX(415)561-2599 www.ridgefrail.org infoCridgetrail.org I