HomeMy Public PortalAboutResolution - 77-29- 19770713 - Authorize Issue of $4.6M(Meeting 77-18,
Agenda item No. 4(b))
MIDPENINSULA REGIONAL OPEN
SPACE'DISTRICT
RESOLUTION NO. 77-29
RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT AUTHORIZING THE ISSUANCE OF
$4,600,000 PRINCIPAL AMOUNT OF MIDPENINSULA REGIONAL OPEN
SPACE DISTRICT NEGOTIABLE PROMISSORY NOTES, SERIES A,
SETTING INTEREST PAYMENT SCHEDULE, AND ADOPTING OFFICIAL
STATEMENT
WHEREAS, the Board of Directors (the "Board") of
the Midpeninsula Regional Open Space District (the "District")
on June 22, 1977, duly adopted its Resolution No. 77-24 (the
"Master Resolution") providing for the issuance of not to
exceed $10,000,000 principal amount of Midpeninsula Regional
Open Space District Negotiable Promissory Notes (the "Notes");
and
WHEREAS, the Master Resolution provides that the
District may issue Notes from time to time as the issuance
thereof is authorized by the Board by a supplemental resolu-
tion; and
WHEREAS, the Board has determined that Notes of
Series A in the principal amount of $4,600,000 should be
issued pursuant to the Master Resolution;
NOW, THEREFORE, BE IT RESOLVED by the Board of
Directors of the Midpeninsula Regional Open Space District
as follows:
Section 12. An initial series of Notes in the
aggregate principal amount of $4,600,000 is hereby author-
ized to be issued by the District as provided herein and in
the Master Resolution, and shall be known as "Midpeninsula
Sections 1 to 11, inclusive, are contained in the Master
Resolution and incorporated herein by reference.
Regional Open Space District Negotiable Promissory Notes,
Series A" (the "Notes of Series A") . The Notes of Series A
shall be 920 in number, numbered Al through A920 inclusive.
The Notes of Series A shall be dated July 15, 1977, and
interest thereon shall be payable semiannually thereafter on
January 15 and July 15. The Notes of Series A shall mature
and become payable on July 15 in the amounts and years and
bear interest as follows:
Principal Maturity Date Interest
Amount (July 15) Rates
$460,000 1978 6.5%
$460,000 1979 6.5%
$460,000 1980 6.5%
$460,000 1981 6.5%
$460,000 1982 5.0%
$460,000 1983 4.6%
$460,000 1984 4.6%
$460,000 1985 4.6%
$460,000 1986 4.6%
$460,000 1987 4.6%
Both the principal of and interest on the Notes of
Series A shall be payable in lawful money of the United
States of America at the principal offices of the United
California Bank in San Francisco and Los Angeles, California,
of Northern Trust Company in Chicago, Illinois, and of
Manufacturers Hanover Trust Company in New York, New York.
Section 13. The Secretary of the Board is directed
to cause a sufficient number of blank notes and coupons of
suitable quality to be lithographed, printed or engraved,
and to cause the blank spaces thereof to be filled in to
comply with the provisions hereof and of the Master Resolu-
tion, and to procure their execution by the proper officers
and members of the Board, and to deliver them, when so exe-
cuted, to the Controller of the District who shall safely
keep the same until they shall be sold by the District, where-
upon he shall deliver them to the purchaser thereof, on
receipt of the purchase price. The members of the Board are
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hereby directed to execute the Notes of Series A on behalf
of the District, the Secretary of the Board is hereby dir-
ected to countersign the Notes of Series A and to affix the
seal of the District thereto, and the Treasurer of the Dis-
trict is hereby authorized and directed to sign the coupons
of the Notes of Series A. The members of the Board, said
Secretary and said Treasurer are further authorized and
directed to make, execute and deliver to the purchaser of
the Notes of Series A a signature and no -litigation certifi-
cate in the form customarily required by purchasers of notes
of public districts, certifying to the genuineness and due
execution of the Notes of Series A and further certifying to
all facts within theirknowledge relative to any litigation
which may or might affect the District, said officers or
members or the Notes of Series A. Said Controller is hereby
authorized and directed to make, execute and deliver to the
purchaser of the Notes of Series A a receipt in the form
customarily required by purchasers of notes of public dis-
tricts, evidencing the payment of the purchase price of the
Notes of Series A, which receipt shall be conclusive evidence
that said purchase price has been paid and has been received
by the District. Any purchaser or subsequent taker or holder
of the notes is hereby authorized to rely upon and shall be
justified in relying upon any such signature and no -litiga-
tion certificate and any such receipt with respect to the
Notes of Series A executed pursuant to the authority of this
resolution and the Master Resolution.
Section 14. The Board hereby determines that the
issuance of the Notes of Series A is not subject to prior
investigation, report and approval by the Districts Securi-
-34
ties Division of the office of the State Treasurer under
the District Securities Investiagtion Law of 1965, as
amended, by reason of the fact that there are more than 500
registered voters residing within the District.
The District Clerk is hereby directed to file
a certified copy of this resolution and the Master Resolu-
tion with the Districts Securities Officer of the Office
of the State Treasurer at least fourteen (14) days prior
to the date of sale of the Notes of Series A, and the
Districts Securities Officer of said Division is requested,
in accordance with said. Law, to give written notice to said
Clerk that the Notes of Series A do not appear to be
subject to prior investigation, report and approval by said
Division.
Section 15. The Board, having been advised by
its staff that the official statement prepared by Hornblower
t'leeks, Noyes & Trask, Inc. as special consultants to Stone
& Youngberg reflects accurately the financial conditions
and other factors relating to the affairs of the District,
hereby approves and authorizes distribution by Stone &
Youngberg of said official statement in the form presented
to the Board at this meeting.
Section 16. This resolution shall take effect
from and after its passage and approval.
PASSED AND ADOPTED this 13th day of July, 1977,
by the follow vote:
AYES: Directors K. Duffy, B. Green, N. Hanko, E. Shelley,
R. Bishop, D. Wendin and H. Turner
NOES: None
ABSENT: None
President of the Board of Directors
of the Midpeninsula Regional Open
Space District
ATTEST:
Clem of/i'1i :eninsu],a Regi
Ope Space District
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Official Statement
In the opinion of counsel, interest on the notes is exempt from income taxes of the United States of Amer-
ica under present federal income tax laws and such interest is also exempt from personal income taxes of
the State of California under present state income tax laws.
NEW ISSUE RATING: MOODY'S Al
$4,600,000
Negotiable Promissory Notes, Series A
Midpeninsula Regional Open Space District
Santa Clara and San Mateo Counties, California
Dated: July 15, 1977 Due: July 15, as shown below
Principal and semi-annual interest (January 15 and July 15, commencing January 15, 1978) payable at the
principal offices of the United California Bank, San Francisco and Los Angeles, California, and at the
Manufacturers Hanover Trust Company in New York, New York, and The Northern Trust Company in
Chicago, Illinois.
MATURITY SCHEDULE AND COUPON RATES
Amount
Due July 15 Coupon Rate
$460,000
1978 6.50%
460,000
1979 6.50
460,000
1980 6.50
460,000
1981 6.50
460,000
1982 5.00
460,000
1983 4.60
460,000
1984 4.60
460,000
1985 4.60
460,000
1986 4.60
460,000
1987 4.60
Coupon notes in $5,000 denominations are not subject to registration. Notes not subject to call or redemp-
tion prior to their stated maturity dates.
The Series A notes are offered when, as, and if issued, and subject to the approval of legality by Messrs.
Orrick, Herrington, Rowley & Sutcliffe, San Francisco, California.
STONE & YOUNGBERG
INVESTMENT SECURITIES
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
July 13,1977
TO WHOM IT MAY CONCERN:
The purpose of this prospectus is to furnish information regarding $4,600,000 par value
Midpeninsula Regional Open Space District Promissory Notes, Series A.
This prospectus was prepared by Hornblower, Weeks, Noyes & Trask Incorporated, municipal
financing consultants. The information herein has been reviewed by appropriate officials of
the district as to accuracy and completeness (see item 2 under "Closing Papers" on Page 4 of
this prospectus) and the district has adopted this prospectus as its Official Statement in
connection with the notes herein being offered pursuant to Resolution No. 77-29.
The law firm of Orrick, Herrington, Rowley & Sutcliffe serves as counsel to the district in
connection with the issuance of the Promissory Notes, Series A. Counsel's fees for services are,
in part, contingent upon delivery of the notes. Fees of the financing consultant for preparation
of the Official Statement are to be paid by Stone & Youngberg, underwriter of the Negotiable
Promissory Notes, Series A, and said fees are not contingent upon delivery of the notes.
All of the following summaries of the Resolution of Issuance and other documents are made
subject to the provisions of such documents respectively, and do not purport to be complete
statements of any or all of such provisions. Reference is hereby made to such documents on file
with the district for further information in connection therewith. This Official Statement does
not constitute a contract with purchasers of notes. Any statements herein involving matters
of opinion or estimates, whether or not so designated, are to be construed as provisional
rather than factual.
Daniel Wendin
President, Midpeninsula Regional
Open Space District
CONTENTS
Page
Introduction 1
The Notes 3
Authority for Issuance 3
Description of the Notes 3
No Redemption Prior to Maturity 3
Security and Flow of Funds 3
No Registration 4
Legal Opinion 4
Tax Exempt Status 4
Legality for Investment 4
Closing Papers 4
Litigation 5
Debt Service 5
The Project 7
The District and Financial Data 9
Assessed Valuation 10
Tax Rates and Collections 11
District Financial Resources 12
Debt Capacity 14
Retirement Plan 14
The District and Vicinity 17
Population Characteristics 17
Employment and Economic Development 18
Agriculture 20
Building Activity 22
Real Estate and Housing 23
Education 23
Commerical Activity 24
Community Services 25
Transportation 26
Seismic Conditions 26
Utilities 26
Cultural and Recreational Facilities 27
TABLES
Table 1. District Debt Service 5
Table 2. Proposed Application of Note Proceeds 7
Table 3. Detailed District Assessed Valuation 10
Table 4. 1976/77 Representative Tax Rates 11
Table 5. Secured District Tax Levies and Delinquencies 12
Table 6. Unaudited Balance Sheet, 11 Months 5/31/77 12
Table 7. Statement of District General Fund Revenues,
Expenditures and Fund Balances 13
Table 8. Direct and Estimated Overlapping Bonded Debt 15
Table 9. Population Statistics 18
Table 10. Wage and Salary, Agricultural Employment, 1977 19
Table 11. Employers, San Mateo and Santa Clara Counties 21
Table 12. New Construction Valuations 22
Table 13. Taxable Sales and Number of Sales Permits 24
Table 14. General Hospitals 25
MIDPENINSULA REGIONAL
OPEN SPACE DISTRICT
Santa Clara and San Mateo Counties, California
BOARD OF DIRECTORS
Daniel Wendin, Los Altos, President
Harry Turner, Portola Valley, Vice President
Barbara Green, Sunnyvale, Secretary
Nonette Hanko, Palo Alto, Treasurer
Richard Bishop, San Carlos, Director
Edward Shelley, Mountain View, Director
Katherine Duffy, Saratoga, Director
Herbert Grench, General Manager
John P. Melton, Controller
SPECIAL SERVICES
General Counsel
Stanley R. Norton
Palo Alto
District Auditors
Elmer Fox, Westheimer & Co.
Oakland
Special Counsel
Orrick, Herrington, Rowley & Sutcliffe
San Francisco
Financing Consultants
Hornblower, Weeks, Noyes & Trask Incorporated
San Francisco
Paying Agents
United California Bank
Los Angeles and San Francisco
The Northern Trust Company
Chicago, Illinois
Manufacturers Hanover Trust Company
New York, New York
UNDERWRITER
Stone & Youngberg Investment Securities
San Francisco, Los Angeles, La Jolla
SAN FRANCISCO
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
COUNTIES
+++4H RAILROADS
1111111 BART
MAJOR HIGHWAYS
SANTA CRUZ
•
A. T. & S. F. R. R.
SANTA CLARA
2
INTRODUCTION
The $4,600,000 principal amount
of Midpeninsula Regional Open Space
District Negotiable Promissory Notes,
Series A, ("the notes"), represents the
first Series of notes of the
Midpeninsula Regional Open Space
District, ("district") being part of a
$10,000,000 authorization. The notes
are being issued pursuant to
resolutions adopted June 22, 1977
and July 13, 1977 by the board of
directors of the district.
The district has the power and is
obligated to cause ad valorem taxes
for payment of the principal and
interest on said notes to be levied
upon all property within the district
subject to taxation by the district,
subject however, to a $0.10 per $100
assessed valuation tax rate limitation.
In the opinion of Orrick, Herrington,
Rowley & Sutcliffe, counsel
to the district, the notes constitute
valid and legally binding obligations
of the district subject to this limitation.
The anticipated district tax revenues
in 1977/78 based on estimated
assessed valuations are expected to
exceed the debt service on the
notes by nearly five times.
The notes are for the purpose of
financing the acquisition of permanent
open space areas within the 327
square -mile district and other
purposes described on page 7.
The district is located on the San
Francisco Peninsula in Santa Clara
and San Mateo Counties.
The Santa Clara County portion of the
district has a 1976/77 assessed
valuation for revenue purposes of
$2,280,936,859 while the San Mateo
County portion has an estimated
valuation of $941,172,451 for a total
district estimate of $3,222,109,310. The
district will levy its tax in the San
Mateo County portion beginning in
1977/78. Based upon preliminary
assessed valuation figures, the district
controller estimates a 23% increase
in the district's 1976/77 San Mateo
County portion assessed valuation for
1977/78 and a 14% increase in the
Santa Clara County portion. The
estimated population in the district is
545,832. Upon sale of the notes,
the district's direct debt will be
$6,621,630 or 0.21 % of the district's
assessed valuation.
The district is primarily residential
with many of its population com-
muting to jobs elsewhere in the San
Francisco Bay Area. Local industries
consist chiefly of light manufacturers
producing electronics related equip-
ment. The area's largest employer is
Lockheed Missiles/Space Company,
located in Sunnyvale with an
estimated employment of 18,000. The
San Francisco International Airport,
located approximately 7 miles north
of the district, is another employer of
regional significance with total
employment exceeding 21,000 in 1975.
Agriculture continues to figure
prominently in the vicinity's economy
despite reduced bearing acreages
due to urbanization. In 1976, total
crop production for both counties
exceeded $165 million with flowering
and ornamental plants contributing
nearly 30% to that total.
The district has four major regional
shopping centers within its borders
that collectively contributed more
than $200 million to total taxable sales
in 1976. The largest of the four, the
Stanford Shopping Center, is located
in Palo Alto.
A variety of educational institutions
are available to district residents.
Area colleges include Stanford
University, the University of
Santa Clara, San Jose State
University and nine public
community colleges.
The district is easily accessible to all
points in the San Francisco Bay Area
via an elaborate network of freeways
including Interstate 280 and U.S.
Highway 101.
Air transportation is available at
nearby San Francisco International
Airport, Metropolitan Oakland Inter-
national Airport, and San Jose
Municipal Airport. Sea port facilities
are available at the Port of San
Francisco, the Port of Oakland and
the locally -operated Port of
Redwood City.
District residents have available a
number of recreational outlets
including the bay itself, nearby
parks and coastal ranges, the City
of San Francisco, and a variety
of cultural activities.
1
THE NOTES
Authority for Issuance
The $4,600,000 principal amount of
the Midpeninsula Regional Open
Space District Negotiable Promissory
Notes, Series A was authorized
pursuant to resolutions of the Mid -
peninsula Regional Open Space
District, adopted June 22, 1977 and
July 13, 1977. The Series A Notes
represent the first series of an
aggregate principal amount of
$10,000,000 authorized by the board of
directors of the district.
Description of the Notes
The Series A Notes consist of
$4,600,000 aggregate principal
amount, numbered Al through A920
inclusive, dated July 15, 1977, each
note in the denomination of $5,000.
Interest is payable semiannually on
January 15 and July 15. The notes are
to mature and become payable on
July 15 in the amounts and years
specified in the adjoining table. Both
principal and interest are payable at
the principal offices of the United
California Bank in San Francisco and
Los Angeles, California, or at the
principal office of The Northern Trust
Company in Chicago, Illinois, or at the
principal office of Manufacturers
Hanover Trust Company in New York,
New York, paying agents for
the district.
No Redemption Prior to Maturity
The notes are not subject to call or
redemption prior to their stated
maturity dates.
Security and Flow of Funds
For the purpose of paying the
principal of and interest on the notes,
the district's governing board shall
cause to be levied and collected and
the Boards of Supervisors of both
Santa Clara County and San Mateo
County shall levy and collect a tax on
all taxable real and personal property
in the district in each county for the
purposes of: (1) paying interest and
principal on the notes which will
become due before the proceeds of a
tax levied at the next general tax levy
will be available; and (2) paying all
other requirements of the district. Said
tax shall be levied and collected in
1977/78 and at the time of making
each general tax levy thereafter until
the principal and interest on all of the
notes are paid, or until there is a sum
deposited with the Director of Finance
of the County of Santa Clara sufficient
for that purpose. The proceeds from
the tax levied by both counties will be
deposited with the Director of Finance
of the County of Santa Clara. From
the proceeds, the Director of Finance
is required to deposit, as soon as
possible after each receipt of tax
collections in December and April of
each year, the interest coming due on
the notes on the next interest payment
date and one-half of the principal
coming due on the next principal
payment date on all of the notes then
outstanding, in a fund which is to be
designated "Midpeninsula Regional
Open Space District Negotiable
Promissory Note Fund" (the "Note
Fund"). On or before each interest
payment date and each principal
payment date on any of the notes, the
Santa Clara County Director of
Finance shall transfer to the paying
agent an amount sufficient to pay the
interest and principal next coming
due on the notes.
There shall likewise be deposited in
the Note Fund any moneys received
on account of interest accrued on the
notes from their date to the date of
delivery and actual payment of the
purchase price thereof. Moneys in the
Note Fund shall be invested by the
Director of Finance of the County of
Santa Clara. The interest on said
deposits shall accrue to the general
fund of the district.
MATURITY SCHEDULE
Maturity Date
July 15
Principal
Maturing
1978
$460,000
1979
460,000
1980
460,000
1981
460,000
1982
460,000
1983
460,000
1984
460,000
1985
460,000
1986
460,000
1987
460,000
3
Pursuant to Resolution No. 77-24 the
district board has covenanted that
that portion of the proceeds from the
annual tax levy raised for the purpose
of paying principal and interest on the
notes shall be used exclusively for
such purpose and shall be paid into
the Note Fund. The board has further
covenanted that the district will
budget and encumber at the beginning
of each fiscal year for the Note Fund
annual ad valorem tax funds
exclusively and in sufficient
amount for payment of principal and
interest on the notes.
The anticipated district tax revenues
in 1977/78 based on estimated
assessed valuations are expected to
exceed the debt service on the
notes by nearly five times.
No Registration
The notes are not subject to
registration.
Legal Opinion
All proceedings in connection with
the issuance of the notes are subject
to the approval of Orrick, Herrington,
Rowley & Sutcliffe, San Francisco,
California, counsel for the district.
The opinion of Orrick, Herrington,
Rowley & Sutcliffe, attesting to the
validity of the notes, will be supplied
free of charge to the original
purchasers of the notes. A copy of
the legal opinion will be printed
on each note.
Tax Exempt Status
In the opinion of counsel, interest on
the notes is exempt from income
taxes of the United States of America
under present federal income tax laws
and such interest is also exempt from
personal income taxes of the State of
California under present state income
tax laws.
Legality for Investment
The notes are legal investments in
California for commercial and savings
banks and as such are legal invest-
ments for all trust funds, and for
funds of insurance companies and
trust companies. The notes are
eligible as security for deposits of
public moneys in California.
Closing Papers
Concurrently with payment for and
delivery of the notes, the following
closing papers, each dated the date
of such delivery will be provided to
Stone & Youngberg Investment
Securities, the purchaser of the notes.
1. Legal Opinion —The opinion of
Orrick, Herrington, Rowley &
Sutcliffe approving the validity of
the notes and stating that the
interest on the notes is exempt
from income taxes of the United
States of America under present
federal income tax laws, and that
such interest is also exempt from
personal income taxes of the State
of California under present state
income tax laws.
2. At the time of payment for and
delivery of the notes, the district will
furnish a certificate, signed by
appropriate officers of the district
acting in their official capacity, to
the effect that to the best of their
knowledge and belief, and after
reasonable investigation, (a) neither
the official statement or any
amendment or supplement thereto
contains any untrue statement of a
material fact or omits to state any
material fact necessary to make the
statements therein, in light of the
circumstances in which they were
made, not misleading; (b) since the
date of the official statement no
event has occurred which should
have been set forth in an amend-
ment or supplement to the official
statement which has not been set
forth in such an amendment or
supplement; nor (c) has there been
any material adverse change in the
operation or financial affairs of the
district since the date of such
official statement.
4
3. A certificate of an officer of the
district that on the basis of the
facts, estimates, and circumstances
in existence on the date of issue,
it is not expected that the proceeds
of the notes will be used in a
manner that would cause the notes
to be arbitrage notes.
4. A certificate signed by an officer of
the district that there is no litigation
pending affecting the validity of
the notes.
5. The signature certificates of the
officers and representatives of the
district, showing that they have
signed the notes, whether by
facsimile.or manual signature.
6. The receipt of the controller of the
district showing that the purchase
price of the notes, including
interest accrued to the date of
delivery thereof, has been received
by the district.
Litigation
There is no litigation pending con-
cerning the validity of the notes, the
corporate existence of the district, or
the title of the officers thereof to
their respective offices.
Debt Service
Table 1 shows annual debt service
on the Midpeninsula Regional Open
Space District Negotiable Promissory
Notes, Series A, and all annual
payments required under
previous notes.
TABLE 1
DISTRICT DEBT SERVICE ON PREVIOUS NOTES AND NEGOTIABLE PROMISSORY NOTES, SERIES A*
Fiscal
Year
Debt Service on Previous Notes
Principal
Maturing
Various Dates
Interest
Cost
Total
Debt Service on Series A Notes
Principal
Maturing Coupon
July 15 Rate
Interest
Cost
Total
1977/78
1978/79
$ 390,165
390,165
$116,603 $ 506,768 $
95,510 485,675 460,000
-% $ 124,200 $ 124,200
6.50 233,450 693,450
1979/80 390,165
72,786 462,951 460,000 6.50
203,550
663,550
1980/81 390,165
50,063 440,228 460,000 6.50
173,650
633,650
1981/82 291,290
27,340 318,630 460,000 6.50
143,750
603,750
1982/83 46,560
10,054 . 56,614 460,000 5.00
117,300
577,300
1983/84 46,650
7,028 53,588 460,000 4.60
95,220
555,220
1984/85 46,650
4,001 50,561 460,000 4.60
74,060
534,060
1985/86 30,000
975 30,975 460,000 4.60
52,900
512,900
1986/87
460,000 4.60
31,740
491,740
1987/88
460,000 4.60
10,580
470,580
Total $2,021,630t $384,360
$2,405,990 $4,600,000
$1,260,400 $5,860,400
• Total direct debt is 56.621,630 including S4,600,000 principal amount of currently offered negotiable promissory notes.
1. The district currently intends to redeem four existing notes totalling 31.619.150 using proceeds from the 54,600,000 negotiable promissory
notes.
5
6
loft, Am\
THE PROJECT
Note proceeds of the Midpeninsula
Regional Open Space District will be
utilized primarily for acquisition of
land for open space purposes and for
redemption of existing district notes
sold to finance other land purchases.
Anticipated disposition of note
proceeds includes the following:
(1) reimbursement of the district's
acquisition fund for the recently
completed purchase of the 64 -acre
Fremont Older Open Space Preserve
addition, (Nellis property), for
$500,000; (2) pursuant to an existing
contract, purchase of the 608 -acre
Monte Bello Open Space Preserve
addition, (Burns property), with
installment payments totalling $856,820
applied toward the total price of
$2,136,820; (3) under a contract
currently being negotiated, purchase
of the 150 -acre Monte Bello Open
Space Preserve addition, (Eldridge
property), for an anticipated purchase
price of $562,500; and (4) pursuant to
current negotiations, payment of
$1,050,000 as a portion of the purchase
price of the 293 -acre Hassler Health
Home, the balance to be provided from
one or more other public agencies.
The district currently intends to call
for redemption four separate note
financings totalling $1,619,150. The
existing note redemptions include:
(1) the 274 -acre North Foothills Open
Space Preserve addition, (Dahl
property), note balance totalling
$600,000 on a parcel purchased
November 24, 1976 for $782,000;
(2) the 355 -acre Saratoga Gap Open
Space Preserve addition, (Gunetti/
Larrus property), note balance
totalling $268,650 on a parcel pur-
chased December 10, 1976 for
$298,500; (3) the 200 -acre Picchetti
property note balance totalling
$355,000 on a parcel purchased
December 15, 1976 for $500,000; and
(4) the Union Bank note balance
totalling $395,500 on two parcels,
(the 216 -acre $235,500 Mozzetti
property and the 20 -acre $160,000
Maurantonio/Gregory property),
purchased February 28, 1977, for a
combined total price of $395,500.
If any of the conditions of the existing
contracts are not satisfied, or if
negotiations regarding properties
currently without contracts or
regarding prepayment of existing
notes are not satisfactorily completed,
then the above mentioned disposition
of note proceeds will be modified to
effect other similar acquisitions within
the next three years.
TABLE 2
SUMMARY OF PROPOSED APPLICATION OF NOTE PROCEEDS
Number of Acres
Cost
Land Acquisition
Nellis property
64
$ 500,000
Burns property
608
856,820
Eldridge property
150
562,500
Hassler property
293
1,050,000
Total
$2,969,320
Redemption of Existing Notes
Dahl note
274
$ 600,000
Gunetti/Larrus note
355
268,650
Picchetti note
200
355,000
Union Bank note
236
395,500
Total
$1,619,150
Miscellaneous
$ 11,530
Total Note Requirement
$4,600,000
Source: Midpeninsula Regional Open Space District.
7
A portion of the Monte Bello Open Space Preserve located near the junction of the San Mateo,
Santa Clara, and Santa Cruz County boundaries. (Photograph by Carolyn Caddes.)
8
THE DISTRICT AND
FINANCIAL DATA
On November 7, 1972, almost two-
thirds of the citizens of northwestern
Santa Clara County voted to establish
the Midpeninsula Regional Park
District under provisions of Sections
5500 et seq. of the State of California
Public Resources Code. The district
was subsequently renamed the
"Midpeninsula Regional Open Space
District," and on July 7, 1976, the
district expanded its boundaries by
annexing the southern portion of San
Mateo County shown on the map on
page 2 of this official statement.
The 327 square mile district includes
about 200 square miles within Santa
Clara County and 127 square miles
within San Mateo County, constituting
61% and 39% respectively of the total
district area. The seven -member
elected district board of directors
originates, guides, and enforces
district policies. Members of the board
of directors are elected for staggered
four-year terms from seven wards
within the district.
The administration of the district from
its inception has been the responsi-
bility of Herbert A. Grench, general
manager. John P. Melton is controller
of the district while Jon Olson
serves as assistant general manager.
The district currently has 11 perma-
nent full-time employees and 10
temporary and part-time employees.
Preservation of open space is the
principal objective of the district.
"Open space" is generally defined by
the district as any land or water area
which remains in a natural state, is
used for agriculture, or is otherwise
essentially undeveloped. The district's
most effective tool for the preservation
of open space is the purchase of
land from district revenues and debt
obligations. Other techniques of
acquiring land for open space
purposes include obtaining state and
federal grants for land purchases,
receiving gifts of open space land,
and participating in joint projects
with other governmental agencies
to acquire and maintain open
space lands.
The district has the power of eminent
domain. However, the district does
not have regulatory power over lands
other than those it owns. Conse-
quently, it cannot adopt zoning
ordinances or regulations affecting
lands not owned by the district.
The power to protect open space
by regulating land use is held
primarily by the cities located within
the district and by Santa Clara and
San Mateo counties.
It is the policy of the current board of
directors that during the next nine
or ten years the district's financial
resources will be devoted primarily
to acquiring open space lands before
the land is developed and land costs
become prohibitive. In keeping with
this land acquisition policy, adminis-
trative costs are projected to be kept
to a minimum and land management
expenditures are anticipated to be
limited to a gradually increasing
percentage not to exceed 18% of
annual tax revenue after ten years.
The draft master plan of the district
defines acquisition policies and the
role the district will play in the
preservation of open space and
reflects the roles the district believes
other public agencies and private
organizations should play in the
preservation of open space. The
master plan was based on an open
space lands evaluation.
Approximately 3,829 acres of open
space land had been acquired by the
district as of June 30, 1977.
The anticipated use of proceeds of
the currently offered notes is
scheduled to add approximately 1051
acres to the district's current open
space holdings.
9
Assessed Valuation
Property in the district is assessed by
the Santa Clara and San Mateo county
assessors in their respective counties
except for public utility property
which is assessed by the State Board
of Equalization. According to the State
Board of Equalization, the 1976/77
Santa Clara County assessed valua-
tion averages approximately 26.5% of
full value while the San Mateo County
assessed valuation averages about
21.1 % of full value. The valuation of
utility property is established at
approximately 25% of full value.
The equalization process tends to
assure that tax impacts will be uniform
throughout the state. Maximum tax
rates in counties which assess above
the 25% level are reduced by the
percentage proportionate to the
percentage of over -assessment. Con-
versely, counties that under -assess
may adjust maximum tax rates to yield
income based on a relationship of
assessed valuation equal to 25% of
full -market value. Rates below the
statutory maximums are not affected
by the equalization process.
Table 3 shows a detailed summary
of the district assessed valuation
since 1973/74, the first full fiscal year
of the district's existence. The
1976/77 $2.28 billion assessed valua-
tion does not include the southern
portion of San Mateo County annexed
by the district on July 7, 1976. The
1976/77 assessed valuation for the
San Mateo County portion is estimated
by California Municipal Statistics, Inc.
to be $941,172,451. The district
controller estimates that the 1977/78
assessed valuation for the Santa
Clara County portion will increase by
14% and that the San Mateo County
portion will increase by approxi-
mately 23%. Preliminary assessed
valuations released by the counties
show a 14.1% average increase in
Santa Clara County and a 23%
average increase in San Mateo
TABLE 3
DETAILED DISTRICT ASSESSED VALUATION*
County. Using these projections, the
1977/78 district assessed valuation is
estimated to be approximately $3.76
billion. Assessed valuation for
revenue purposes in the Santa Clara
County portion of the district
increased 70% since its first full year
of operation, from $1.34 billion in
1973/74 to $2.28 billion in 1976/77.
All ad valorem taxes on property in
the district are due at the same time
as and are based on the same rolls as
Santa Clara and San Mateo county
taxes. The valuation of secured
property is established as of March 1
of each year; the first installment of
taxes becomes payable the following
November. Secured taxes are due to
be received by the respective Santa
Clara and San Mateo tax collectors on
or before the delinquency dates of
December 10 and April 10 for each
installment of taxes levied. Taxes on
unsecured property are due on
March 1 and are delinquent on
August 31 of each year.
1973/74 1974/75
1975/76 1976/77
Local secured
$1,157,011,559 $1,272,754,703
$1,481,432,852 $1,710,793,539
Utility
59,835,060 62,555,640
62,574,070 65,478,200
Unsecured
214,663,720 257,582,550 284,191,150
Business inventory exemptions
12,237,265 81,399,413
90,683,418 96,027,468
Homeowners' exemptions
115,770,720 118,870,380
124,598,182 126,608,979
Redevelopment agencies' deductions'
n. a. n. a.
n. a. (2,162,477)
Total
$1,344,854,604 $1,750,243,856 $2,016,871,072 $2,280,936,859*
• Total assessed valuation for revenue purposes for 1977/78 is expected to exceed $3.7 billion due to annexation of a portion of San Mateo
County.
t The cities of Sunnyvale and Mountain View have redevelopment agencies that capture a portion of tax revenues that would otherwise go
to the respective taxing entity.
* Assessed valuation taxable for district revenue purposes.
Source: Santa Clara County Auditor -Controller's Office.
10
Tax Rates and Collections
The district tax rate since fiscal year
1973/74 has been $0.10 per $100
assessed valuation, the maximum
allowable to be levied during any
fiscal year. Principal and interest
payments on the notes are secured
by and payable from this tax levy.
Table 4 presents total tax rates for
the incorporated and unincorporated
tax code areas with the highest
assessed valuation in each county.
In Santa Clara County, tax code area
6014, located in Palo Alto, had a
1976/77 assessed valuation of
$280,812,046 which was 12% of the
county's assessed valuation in the
district. Tax code area 63091, located
in the Cupertino School District, had
an assessed valuation of $10,264,589
in 1976/77. In San Mateo County
tax code area 9001 falls within
Redwood City and had a 1976/77
assessed valuation of $179,819,929
which was over 20% of the county's
estimated 1976/77 assessed valuation
in the district. Tax code area 73023,
located in the Redwood City School
District had a 1976/77 assessed
valuation of $15,202,124. Assessed
valuations for tax code areas were
obtained from the respective counties'
auditor -controller's offices.
Table 5 presents a three-year district
summary of assessed valuations, tax
levies, and delinquencies as of June
30 of each fiscal year. The delin-
quency rate in the Santa Clara County
TABLE 4
1976/77 REPRESENTATIVE TAX RATES
portion of the district has averaged
less than 1% for the last three years.
Inasmuch as the district will begin to
collect taxes in the San Mateo County
portion in 1977/78, the delinquency
rates for the county and an
overlapping taxing entity may be
considered representative for
the district.
The San Mateo County delinquency
rate in 1975/76 was 1.28% while the
delinquency rate for the Sequoia
Union High School District was
1.28%. Almost 85% of the San Mateo
County portion of the open space
district is within the Sequoia Union
High School District and constitutes
nearly one-third of the school
district's total assessed valuation.
Taxing Entity
County
Santa Clara County
6014
(Incorporated)
$2.4710
63091
(Unincorporated)
$2.4710
San Mateo County
9001
(Incorporated)
$1.8277
73023
(Unincorporated)
$1.8277
City of Palo Alto
.8300
Redwood City
1.7967
School districts
5.3350 4.5560
4.6249 4.6249
Community colleges
.7280 .7280
.7945 .7945
Other education
.1760 1.1630
.4016 .4016
Bay Area air pollution
.0170 .0170
.0151 .0151
Library
.2530
.2529.
Special programs
.1470 .1400
Special districts
.1549 1.0466
Mosquito abatement
.0146 .0146
Hospital bonds
.0064 .0064
Water districts
.1520 .1520
Open space district
.1000 .1000
Total
$9.9560 $9.5800
$9.6364 $8.9843
Taxes on land only
$ .0140
Taxes on land and improvements only
$ .1100 $ .1100
$ - $ .0409
'The Midpeninsula Regional Open Space District will levy a $.10 tax in the newly -annexed portion of San Mateo County beginning in 1977/78.
Source: Counties' Auditor -Controller's Offices.
11
TABLE 5
SECURED DISTRICT TAX LEVIES AND DELINQUENCIES
Fiscal
Year
Secured
Tax
Levies
Taxes
Collected
Delinquencies
June 30
Amount Percent
1973/74
1974/75
$1,214,358
1,333,457
$1,201,110
1,318,964
$13,248 1.09%
14,493 1.09
1975/76 1,545,388
1,532,367
13,021 0.84
1976/77
In Collection
Source: Santa Clara County Auditor -Controller's Office.
TABLE 6
UNAUDITED BALANCE SHEET —ALL FUNDS
ELEVEN MONTHS 5/31/77
Investment
General in General
Fund Fixed Assets
General
Long-term
Debt
ASSETS AND OTHER DEBITS
Cash:*
Wells Fargo and Union Banks $ 18,526 $
Deposited with County of Santa Clara 2,793,222
Petty cash 200
Total Cash $2,811,948 $
$
Accounts receivable
$ —
Interest receivable
Prepaid expenses and deposits 5,476
Land and improvementst — 6,984,582
Equipment — 74,534
Future note repayment requirements
2,021,630
Total Assets and Other Debts $2,817,424 $7,059,116 $2,021,630
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable $ 17,592 $
$ —
Notes payable — — 2,021,630
Total Liabilities
$ 17,592 $ — $2,021,630
Fund balances:
Investment in general fixed assets
— 7,059,116 —
Fund balance 2,799,832
Total Liabilities and Fund Balances $2,817,424 $7,059,116 $2,021,630
The district deposits cash not required for current expenditures with the County of Santa Clara.
The county treasurer invests such funds and pays the district interest earned.
1' The district has acquired land through the issuance of long-term debt. Table 1 shows debt
service.
Source: District Controller.
fish, Am)
District Financial Resources
As shown in Table 7, after all
expenditures, the district has annually
had substantial surplus moneys
remaining in the district general fund.
District purchases of fixed assets,
which primarily include open space
land, have been the major use of
district money.
The district's 11 -month unaudited
1976/77 revenue and expense state-
ment and the 1976/77 adopted annual
budget are also included in Table 7.
The 1977/78 annual budget, approved
by the district board of directors on
July 13, 1977, is also shown.
The official books of record kept by
the district utilize the principles of
fund accounting as prescribed for
special districts by the State Con-
troller. The district entrusts its cash in
the negotiable promissory note fund
and in its general fund to the County
of Santa Clara.
The County of Santa Clara has agreed
to establish the Midpeninsula Regional
Open Space District Negotiable
Promissory Note Fund for the sole
purpose of paying principal and
interest on the currently offered notes
and on any subsequent series of
notes. All district funds reflect the
accrual basis of accounting and a
July 1 through June 30 fiscal year.
The district's certified public
accountants are Elmer Fox,
Westheimer & Co., Oakland,
California.
12
TABLE 7
STATEMENT OF DISTRICT GENERAL FUND REVENUES, EXPENDITURES AND FUND BALANCES`
11 Months Adopted Preliminary
of 1976/77 Budget Budget
1973/74 1974/75 1975/76 (Unaudited) 1976/77 1977/78#
REVENUE
General property tax $1,189,486 $1,540,655 $1,808,524 $2,059,359 $2,050,200 $ 3,245,300
Homeowners' exemptions
116,051 119,363 125,140 107,872 122,800 180,300
Business inventory
12,237 81,372 90,867 95,445 95,300 115,800
State Parks Bond Act 833,535
Other
1,000 40 80 - 6,600,000§
Gifts
349,890 6,000 4,300 -
Federal and state grants
- - 98,097 224,400 221,500
Interest
28,070 131,256 66,728 86,416 55,000 180,000
Rental income
7,370 3,689 15,800 10,500
Miscellaneous
65 60 105 90
Total Revenue $1,345,909 $3,057,131 $2,104,774 $2,455,348 $2,563,500 510,553,400
EXPENDITURES
Salaries and employee benefits $ 51,128 $ 104,383 $ 163,442 $ 216,750 $ 266,700 $ 382,100
Services and supplies
49,550 81,099 118,851 202,230 243,600 231,500
Investment in land and improvements
2,432,680 1,368,172 449,699 1,541,800 6,946,500
Investment in equipment
10,438 18,218 23,131 22,250 35,600 70,700
Principal payments on notes
665,841 46,560 46,600 1,198,000
Interest payments on notes
61,094 28,213 32,000 240,400
Total Expenditures $ 111,116 $2,636,380 $2,400,531 $ 965,702 $2,166,300 $ 9,069,200
FUND BALANCES
Balance brought forward $ (49,601)-' $1,143,792 $ 914,119 $1,283,938 $1,288,000 $ 2,234,000
Encumbrances at end of prior year
41,400 691,824
26,248 -
Encumbrances at end of current year (41,400) (691,824) (26,248)
Revenues 1,345,909 3,057,131 2,104,774 2,455,348 2,563,500 $10,553,400
Expenses (111,116) (2,636,380) (2,400,531) (965,702) (2,166,300) (9,069,200)
Ending Fund Balance $1,143,792 $ 914,119 $1,283,938 $2,799,832 S1,685,200 $ 3,718,200
• Table 7 verified by district controller and auditors.
t The 849,601 represents district formation expenses from November 30, 1972 through June 30, 1973. Said expenses were accrued prior to the
first tax revenues received by the district.
$ Preliminary budget approved by the district board on July 13. 1977.
§ "Other" category in 1977/78 pertains to proceeds from anticipated sale of notes.
Source: Compiled from district financial statements audited by Elmer Fox & Company in 1973/74, and Elmer Fox, Westheimer & Co. in
1974/75 and 1975/76. Their report expressing an unqualified opinion is on file in the district offices. The 11 -month financial statement was
prepared by the district controller and is unaudited. The 1977/78 budget was approved by the board on July 13, 1977.
13
Debt Capacity
The district may acquire lands or
facilities by means of a plan to borrow
money or by purchase on contract.
The amount of such indebtedness to
be incurred may not exceed an
amount equal to the anticipated tax
income for the next four-year period
derived from the $.10 tax levy. All such
indebtedness must be repaid in
approximately equal annual install-
ments during a period not to exceed
10 years from the date on which it is
incurred and shall bear interest at a
rate not exceeding 8% per annum.
Each such indebtedness shall be
authorized by a resolution adopted by
the affirmative votes of at least
four -fifths of the members of the
district board.
The district has no outstanding
general obligation bond indebtedness
nor are there any authorized and
unsold bonds. The district may issue
general obligation bonds in an amount
not to exceed 10% of district
assessed valuation if authorized to do
so by a two-thirds affirmative vote of
registered voters voting at an election
on the question of incurring general
obligation bond indebtedness. General
obligation bonds are secured by ad
valorem property taxes which are
unlimited as to rate and amount and
which are in addition to the $.10
general levy.
Table 8 presents the district's direct
and estimated overlapping debt. The
district will have a direct debt of
$6,621,630 as of July 13, 1977
including the $4,600,000 of currently
offered notes. It is anticipated that
$1,619,150 of existing district notes
will be redeemed using proceeds
from the current note sale. The ratio
of the district's direct debt to
assessed valuation is 0.21%.
Retirement Plan
The district has elected to be covered
under the Public Employees' Retire-
ment System administered by the
State of California. The district
manager is also covered by the
retirement plan of the National
Recreation and Park Association.
Contributions to both plans for
1975/76 totalled $12,345.
Under the terms of the Public
Employees Retirement System of
California (P.E.R.S.), the district
provides a retirement plan covering
all full-time employees.
P.E.R.S. is required by state law to
undergo a systems evaluation at least
every four years. Periodic intervening
checks of actuarial assumptions and
other aspects of the system are also
made. The June 30, 1975 audit of
P.E.R.S. by Coopers & Lybrand,
Certified Public Accountants, reported
an accrued actuarial liability and
present value of benefits for active
and inactive members totalling
approximately $12.7 billion.
Assets available for benefits were
placed at about $6.85 billion
leaving an unfunded liability of
about $5.85 billion.
Upon completion of the 1975 system-
wide evaluation, actuaries then
determined that restoration and
maintenance of the system's neces-
sary balances required a three -step
annual increase of 1% in the average
percentage employer contribution
beginning July 1, 1976.
14
TABLE 8
DISTRICT DIRECT AND ESTIMATED OVERLAPPING BONDED DEBT*
Estimated 1977 population 545,832
Total 1976/77 assessed valuation $ 3,222,109,310t
Estimated market value $13,050,000,000*
Entity
Percent
Applicable
Debt Applicable
July 13,1977
Santa Clara County and Building Authorities
40.430% $ 37,331,040
San Mateo County and Authorities
9.581 3,025,008
Midpeninsula Regional Open Space District
100. 6,621,630§
Santa Clara Flood Control and Water Conservation Districts
0.225-44.566 15,412,005
Junior college districts
Various 15,494,835
Unified school districts
Various 4,496,300
High school districts
Various 18,105,549
School districts
Various 31,464,633
Cities
Various 58,980,120
Special districts
Various 33,629,620
City, county and special districts 1915 Act Bonds
Various 28,775,276
TOTAL GROSS DIRECT AND OVERLAPPING BONDED DEBT $253,336,016
Less: Self-supporting bonds 25,460,025
TOTAL NET DIRECT AND OVERLAPPING BONDED DEBT $227,875,991
Ratio to
Assessed
Valuation
Estimated
Market Value
Per
Capita
Assessed valuation — — $5,903
Direct bonded debt 0.21% 0.05% 12
Gross direct and overlapping bonded debt 7.86 1.94 464
Net direct and overlapping bonded debt 7.07 1.75 417
SHARE OF AUTHORIZED AND UNSOLD BONDS:
Cities of Sunnyvale and Mountain View $ 2,598,000
Various school districts 6,125,617
Redwood City Improvement District No. 1-64 204,492,000
San Mateo County 1,883,128
Total Share of Authorized and Unsold Bonds $215,098,745
SHARE OF STATE SCHOOL BUILDING AID PAYABLE AS OF JUNE 30, 1976 $43,491,00611
Compiled by California Municipal Statistics, Inc.
f Includes 1976/77 assessed valuation for the Santa Clara County portion in the district of $2,280.936,859 before homeowners' and business
inventory exemptions and after redevelopment agencies' deductions and the estimated 1976/77 assessed valuation for the San Mateo
County portion in the district of $941,172,451 before homeowners' and business inventory exemptions as determined by California Munici-
pal Statistics. Inc.
* Based on assessment at 26.5% of market value in Santa Clara County and 21.1% of market value in San Mateo County, except for utility
valuation at 25% of market value. California Municipal Statistics, Inc. estimates the 1976/77 San Mateo County utility assessed valuation
in the district to be $33.447,000.
§ Includes $4,600,000 to be sold on July 13, 1977. It is anticipated that 51,619,150 outstanding value of four existing district notes will be
redeemed using proceeds from the $4,600,000.
11 Nearly half of the districts' share of State school aid is in the Cupertino Unified School District with S20,108,137. Santa Clara Unified and
Jefferson, Union, and Whisman School Districts each contribute approximately $3.5 million to the district's total. The remainder is from
various school and community college districts.
15
A portion of the Monte Bello Open Space Preserve, which is composed of three separate parcels totalling nearly
1500 -acres, located in the southwestern portion of the district. (Photograph by Carolyn Caddes.)
16
THE DISTRICT AND VICINITY
The Midpeninsula Regional Open
Space District is located in the
southern portion of the San Francisco
Bay region and consists of 200 square
miles situated in northwestern Santa
Clara County and an additional 127
square miles in adjacent southeagtern
San Mateo County. The Santa Clara
portion was formed in November,
1972, while the San Mateo portion was
recently annexed by approval of
voting residents in June, 1976.
The southwestern border of the
district falls approximately along the
ridgeline of the coast range which
bisects the San Francisco Peninsula
into the coastside and bayside
regions. The coastside is predomi-
nantly rural in character, with limited
areas of flat land on the ocean
terraces and vast areas of steep,
forested ridges and canyons located
inland. The district is located on the
bayside which has more gentle
topography characterized by substan-
tially level areas and rolling plains
which have been more favorable for
development. The district's northeast
border is the San Francisco Bay. The
recent annexation enhanced the
geographic and topographic
configuration of the district.
The district is composed of the
incorporated communities of Palo
Alto, Mountain View, Los Altos, Los
Altos Hills, Sunnyvale, Cupertino,
Saratoga, Monte Sereno and Los
Gatos and adjacent unincorporated
areas located in Santa Clara County
and the incorporated communities of
Woodside, San Carlos, Menlo Park,
Atherton, Portola Valley, and Redwood
City and adjacent unincorporated
areas located in San Mateo County.
Population Characteristics
Table 9 presents a population
history for incorporated cities in the
district, an estimate of total district
population, and a listing of county
population trends. The largest
incorporated area in the district is
Sunnyvale with a current population
of 105,000. Sunnyvale has been
subject to a higher growth rate since
1950 than any other city in the district.
The unincorporated area population
estimate in the district is based on a
1970 population of 47,935 for the San
Mateo County portion and a 1975
special census count of 42,402
persons for the Santa Clara County
portion. The growth rates in the
counties have been substantial with
San Mateo more than doubling since
1950 and Santa Clara growing over
300% during the same period.
According to the 1976 Survey of
Buying Power prepared by Sales and
Marketing Management, the median
age of county residents brackets the
state-wide statistic of 29.5 years, with
San Mateo residents at 31.6 years and
the population of Santa Clara County
at 27.9 years. The counties' residents
are more affluent than the average
Californian with an effective buying
income per household for December
1975 exceeding the state average by
approximately 30%. A study published
in April, 1977, by the Department of
Commerce ranked San Mateo and
Santa Clara Counties fourth and
eighth, respectively, in the United
States for per capita income in 1975.
17
TABLE 9
POPULATION STATISTICS
City
1950' 1960' 1970"
1976t 1977t
Atherton 3,630
7,717 8,085
7,775 7,775
Cupertino n. a.
3,664 18,216
22,700 22,900
Los Altos n. a.
19,696 24,726
26,400 26,250
Los Altos Hills n. a.
3,412 6,865
7,100 7,225
Los Gatos 4,907
9,036 23,735
24,000 24,650
Menlo Park
13,587 26,957 26,826
26,100 26,300
Monte Sereno n. a.
1,506 3,089
3,180 3,240
Mountain View 6,563
30,889 54,304
55,400 55,800
Palo Alto 25,475
52,287 55,835
55,200 54,900
Portola Valley n. a. n. a. 4,996
4,890 4,980
Redwood City 25,544
46,290 55,686
54,500 54,700
San Carlos 14,371 21,370 26,053
26,700 26,800
Saratoga n. a.
14,861 27,110
29,450 29,700
Sunnyvale 9,829
52,898 95,408
104,400 105,000
Woodside n. a.
3,592 4,734
5,225 5,275
Total Incorporated 435,668
453,020 455,495
Total Unincorporated
90,337*
Midpeninsula Regional
Open Space District
545,832*
San Mateo County
235,659 444,387 556,601
580,200 584,600
Santa Clara County
290,547 642,315 1,066,174
1,184,200 1,202,100
Source: U.S. census data compiled in April of respective year.
t Source: Estimates prepared by Population Research Unit, Department of Finance, State of California for January of respective year.
* Source: Midpeninsula Regional Open Space District. The unincorporated area population estimate In the district is based on a 1970 pop-
ulation of 47,935 for the San Mateo County portion and a 1975 special census count of 42,402 persons for the Santa Clara County portion.
Employment and Economic
Development
The district and vicinity, originally
settled in the early 1800's for grazing
and agricultural purposes, has
gradually given way to urbanization
and light industrial development as
the favorable climate, scenic charac-
teristics, and accessibility of the bay
region became more widely
recognized and experienced. Early
economic development consisted
chiefly of redwood tree harvesting and
prune and grain cultivation in the late
1800's. Agricultural development
intensified in the early 1900's until the
1920's when urbanization began
to compete for the favorable
flatlands and rolling plains that
characterize the bayside half of the
San Francisco Peninsula.
The two counties participating in the
district are in different metropolitan
statistical areas. The newly -annexed
San Mateo County portion is within
the San Francisco -Oakland Metro-
politan Area. This area includes all of
Alameda, Contra Costa, Marin, San
Francisco and San Mateo Counties.
The Santa Clara County portion of the
district is within the San Jose
Metropolitan Area whose boundaries
are coterminous with those of the
county. Statistics for both areas are
presented in Table 10 along with
employment estimates for San Mateo
County for June, 1977, prepared
by the Overall Economic
Development Program Committee
of San Mateo County.
18
TABLE 10
WAGE AND SALARY AND AGRICULTURAL EMPLOYMENT, 1977
San Francisco -Oakland San Mateo
industry Metropolitan Area County Estimatesj'
Santa Clara
County#
Mineral extraction 2,300
100
Construction
58,000 10,800
17,500
Manufacturing -durable goods
88,100 21,100 138,900
Manufacturing - nondurable goods 93,500 10,400
23,500
Transportation and public utilities 119,400 29,400
18,600
Wholesale trade
92,500 17,400
22,100
Retail trade
216,800 36,600
78,000
Finance, insurance, and real estate 117,100 11,500
20,700
Services
283,200 42,800
105,400
Government
305,000 36,600
78,200
Total Nonagricultural
Employment 1,375,900 216,600
503,000
Total Agricultural Employment 10,900 2,300
7,900
Total civilian labor force 1,506,500 278,887 570,100
Total unemployment (April 1977) 130,500
17,247 36,700
Seasonally adjusted rate 8.5%
6.2% 6.2%
• Source: April 1977 San Francisco -Oakland Labor Market Bulletin, Employment Development
Department (EDD). Metropolitan Area includes Alameda, Contra Costa, Marin, San Francisco
and San Mateo Counties.
t Source: Estimates of "employment by industry" developed by the Overall Economic Develop-
ment Program Committee of San Mateo County for June 1977 extrapolated from 1970 census
data. "Total labor force and unemployment rate" from EDD for April, 1977.
# Source: April 1977 San Jose Labor Market Bulletin prepared by EDD. The San Jose Metropolitan
Area has coterminous boundaries with Santa Clara County and is not part of the San Francisco -
Oakland Metropolitan Area.
Employment in the San Francisco -
Oakland Metropolitan Area has
increased over 10% during the last
five years, while employment in Santa
Clara County has increased over 20%
during the same period. Of the
approximately 730,000 jobs in the
immediate area, about 23% are in
manufacturing, principally of durable
goods. These products consist
chiefly of aerospace and electronics -
related hardware. The largest employer
in the area is Lockheed Missiles &
Space Company located in Sunnyvale.
The company employs over 18,000
persons and is involved mainly in the
production of underwater -launched
missiles and space satellites. The
company is expanding its non -defense
work with communications satellite
production, ocean systems products,
ground vehicle and other high-
technology products and services.
Table 11 shows Hewlett-Packard as
the next largest manufacturing
employer in the area. The firm
manufactures various electrical and
mechanical devices with plants in
Cupertino, Mountain View, Palo Alto,
Sunnyvale and Santa Clara. IBM
opened its computer facilities in
San Jose in 1956. It now occupies a
243 -acre site and employs 5,000
persons. The plant manufactures
computers and computer components
and supplies, and houses the IBM
Advanced Systems Development
Laboratory, which works on improving
computer equipment and procedures.
FMC Corporation, another major local
employer, began as a local Santa
Clara County industry, and has now
grown to a worldwide operation. Its
products and services extend into
broad areas of machinery, chemical
fibers, films, and defense.
19
Service industries make up the next
largest employment category for
persons in San Mateo and Santa Clara
Counties. Employment in service -
oriented industries has jumped over
27% in the two counties since 1972.
The biggest service employer in the
district is Stanford University with
approximately 5,300 faculty and staff
serving nearly 12,000 students. San
Jose State is the vicinity's largest
public educational institution offering
another 2,200 faculty and staff
positions. The largest hospital in the
area is the Stanford Hospital with
3,000 employees maintaining the
hospital's 643 -bed capacity.
Governmental jobs make up the next
major employment category for
persons in the district's vicinity.
Government positions have increased
nearly 20% over the last five years.
The largest public employer is the
City of San Jose, which provides over
4,000 jobs. Moffett Field, location for
a U.S. naval air station and a National
Aeronautics and Space Administration
center, is the site for over 2,500
civilian and 5,000 military positions.
Wholesale and retail trade are
important and growing parts of the
region's economy. Given the district's
central location in the bay area and
its limitations for accommodating
large increases in manufacturing and
related -type firms, trade services
stand out as the principal growth
area. These are mainly store and
office operations, many of which are
regional in their scope of operations.
Transportation, communications and
utilities provide over 29,000 jobs in
San Mateo County. Most of these jobs
are at San Francisco International
Airport, which is located in northern
San Mateo County. In 1975 there were
21,000 employees in air transportation
alone, and an additional 5,000
employees in airport -related opera-
tions. United Airlines is the county's
largest employer, with 8,000
employees, most of them at United's
airport maintenance base operation.
The air transportation industry
is clearly a central part of
San Mateo's economy.
The state of the economy and employ-
ment scenario in the two -county
region is best described by an
unemployment rate that is
nearly 30% below that of the bay
region as a whole.
Agriculture
Agricultural production in both
counties has increased despite the
depletion of bearing acreage due
to increased urbanization. In San
Mateo County, once known for timber
production and salt refinement,
agriculture is presently confined
principally to the rural coastside of the
peninsula. Total agricultural produc-
tion in the county in 1976 was
$62,822,300, up over 70% from
production in 1971. Production of
flowering and ornamental plants far
outpaces other agricultural pursuits. In
1976, San Mateo County had nine
crops at a million -dollar -plus value
with potted plants heading the list at a
value of $24,150,000.
Santa Clara County has been a major
agricultural center for about a century.
As in San Mateo County, reduced
acreage has not diminished annual
crop production. The dollar per acre
value of production has increased
from $898.70 in 1950 to $1,447.15 in
1971 to $3,194.54 in 1976. Crop
production in 1976 in Santa Clara
County totalled $97,343,450, up over
40% during the past five years. The
county had 21 crops contributing at
least one -million dollars to the total.
As in San Mateo County, flowers and
ornamental plants head the list with
over $20,000,000 of the total.
20
TABLE 11
MAJOR INDUSTRIAL EMPLOYERS IN SAN MATEO AND SANTA CLARA COUNTIES, 1977
Firm
Service or Location Number of
Product City (County) Employees
Lockheed Missiles and Space Company
Aerospace Sunnyvale (SC) 18,000
Hewlett-Packard
Electronics throughout (SC) 10,000
United Air Lines Air transportation
S. F. Airport (SM) 8,000
Fairchild Camera and Instrument
Electronic products Mountain View (SC) 6,000
Signetics Corporation Integrated circuits
Sunnyvale (SC) 6,000
I.B.M. Data processing systems
San Jose (SC) 5,000
Ford Motor Company Auto truck assembly
Milpitas (SC) 4,800
Varian Associates Electronic equipment
Palo Alto (SC) 4,700
Intel Corporation Semiconductor devices Santa Clara (SC) 4,600
FMC Corporation Manufacturing miscellaneous equipment
Ford Aerospace and Communication Corporation
NCC Food Corporation
Aerospace equipment
Produce packers
throughout (SC) 4,600
Palo Alto (SC) 4,400
San Jose (SC) 4,000
National Semiconductor Electric components Santa Clara (SC) 4,000
Pan American World Airways Air transportation
S. F. Airport (SM) 3,375
General Electric Company Electric motors
San Jose (SC) • 3,000
Lenkurt Electric Company Inc. Electric products
San Carlos (SM) 3,000
Memorex Corporation Recording tapes Santa Clara (SC) 2,900
Stanford Research Institute Research and development
Menlo Park (SM) 2,500
ISS Sperry Univac Computers Cupertino (SC) 2,400
Pacific Telephone and Telegraph Company Communications throughout (SM) 2,200
Raychem Corporation Electric wires and cables
throughout (SM) 2,200
Watkins -Johnson Company Electronic equipment
Palo Alto (SC) 2,200
Trans World Airlines Air transportation
S. F. Airport (SM) 2,000
Westinghouse Electric Corporation Marine turbines
Sunnyvale (SC) 2,000
Western Electric Company
Systems equipment Sunnyvale (SC) 1,800
GTE Sylvania Inc.
Electronic equipment Mountain View (SC) 1,700
Advanced Micro Devices Inc. Integrated circuits
Sunnyvale (SC) 1,500
Chemical Systems Division UTC Rocket propulsion equipment
American Micro -Systems Inc. Electronic components
Sunnyvale (SC)
throughout (SC)
1,500
1,400
Four -Phase Systems Inc. Computers Cupertino (SC) 1,400
Intersil Inc. Semiconductors Cupertino (SC) 1,300
Northwest Publications Inc. Publishing San Jose (SC) 1,300
Libby McNeill & Libby Inc. Canned fruit Sunnyvale (SC) 1,200
Syntex Pharmaceutical products Palo Alto (SC) 1,100
Ampex Corporation
Electronics Redwood City (SM) 1,100
Guy F. Atkinson Company General contractors
South S.F. (SM) 1,100
Stanford Linear Accelerator Scientific research
Menlo Park (SM) 1,100
Teledyne Inc. Microwave equipment
Palo Alto (SC) 1,100
Amdahl Corporation Computers Sunnyvale (SC) 1,000
ESL Incorporated Electronic systems
Sunnyvale (SC) 1,000
Spectra -Physics Inc.
Laboratory equipment Mountain View (SC) 1,000
Source: Industrial Directories for San Mateo and Santa Clara Counties, 1977, as updated by telephone survey by Homblower, Weeks. Noyes
& Trask.
21
Building Activity
Table 12 presents new construction
valuations for the incorporated areas
in the district and totals for San Mateo
and Santa Clara Counties. Value of
construction in the incorporated
areas in the district has increased
nearly 50% in the past five years
which approximates the rate of
increase in Santa Clara County but is
contrary to the actual decrease
experienced by San Mateo County as a
whole. Cities undergoing considerable
increase in development include
Los Gatos, Mountain View, Palo Alto
and Sunnyvale. Sunnyvale had the
highest construction valuation of any
other city in the district in 1976 at
S67,719,000. Several cities have
decreased valuation over the last five
years including Cupertino, Los Altos,
and Redwood City. Cupertino,
however, shows the greatest
incremental increase in value through
April, 1977 over last year's total for any
city in the district. The development
causing this year's four -month value
to approximate last year's total is due
to planned industrial development
worth $5,370,000 and a shopping
mall valued at $6,300,000.
TABLE 12
NEW CONSTRUCTION VALUATIONS
The number of dwelling units
constructed in both counties increased
sharply last year over the 1975 total,
reversing a four-year trend shown in
Table 12. The number of single family
units continues to outpace multi -family
unit construction by about 2 to 1
in both counties.
1972 1973 1974 1975
Through
1976 April 1977
CITY
Atherton $ 2,377,000 $ 3,572,000 S 4,036,000 $ 3,217,000 $ 7,525,000 $ 1,574,000
Cupertino 29,410,000
30,722,000 22,156,000 27,819,000
26,292,000 25,025,000'
Los Altos 8,998,000
7,734,000 10,714,000 4,297,000
8,278,000 2,081,000
Los Altos Hills 3,430,000
3,544,000 5,153,000 6,793,000
8,322,000 4,509,000
Los Gatos 10,339,000
15,932,000 7,768,000 14,784,000
28,451,000 7,248,000
Menlo Park 12,535,000
14,918,000 7,810,000 5,109,000
14,445,000 6,711,000
Monte Soreno 1,367,000
1,981,000 2,025,000 2,626,000
3,978,000 1,047,000
Mountain View 24,261,000
30,067,000 16,401,000 12,800,000
34,374,000 11,443,000
Palo Alto 18,362,000
28,676,000 34,423,000 21,108,000
31,774,000 17,635,000
Portola Valley 971,000
1,833,000
1,898,000 1,726,000
4,616,000 869,000
Redwood City 13,279,000
8,368,000 10, 956, 000 12, 979, 000
9,937,000 11,657,000
San Carlos 10,774,000
10,314,000 7,954,000 8,690,000
11,389,000 4,620,000
Saratoga 12,739,000
10,884,000 10,848,000 17,124,000
17,821,000 7,451,000
Sunnyvale 35,638,000
50,050,000 37,966,000 54,601,000
67,719,000 23,362,000
Woodside 2,185,000
2,640,000 3,969,000 3,437,000
3,390,000 1,243,000
Total $186,665,000 $221,235,000 $184,077,000 $197,110,000 $278,311,000 $126,475,000
Number of Dwelling Units 4,670
4,405
2,561 2,015
2,879 1,204
COUNTY
San Mateo $257,923,000 $253,571,000 $164,475,000 $180,686,000 $243,638,000 $103,727,000
Number of Dwelling Units 8,479
6,156
2,166 1,932
2,885 1,388
Santa Clara $466,500,000 $499,650,000 $500,055,000 $498,116,000 $745,517,000 $331,645,000
Number of Dwelling Units 14,896
12,854
8,996 7,954
13,151 5,535
' Accelerated total valuation pace due to planned industrial development worth $5,370,000 and a shopping mall valued at 66,300,000
Source: Security Pacific National Bank, California Construction Trends.
22
In the sixteen -county area designated
as the Northern Coastal region
(Alameda, Contra Costa, Del Norte,
Humboldt, Lake, Marin, Mendocino,
Monterey, Napa, San Benito, San
Francisco, San Mateo, Santa Clara,
Santa Cruz, Solano, and Sonoma
Counties), Santa Clara County ranked
first in terms of percentage increase
in the number of dwelling units
authorized between 1975 and 1976,
registering a 65% increase while
San Mateo County had a 49%
increase. These figures compare with
a 42% increase for San Francisco
and a 46% increase shown for the
entire Northern Coastal region for the
same period. The nine -county San
Francisco Bay Area increase matched
that of the Northern Coastal region.
Real Estate and Housing
The communities that comprise the
district are reputed to be among the
most affluent and offer some of the
choicest home -sites in the San
Francisco Bay region. This is due,
in part, to the mild climate, rolling
topography, and wooded terrain
in this portion of the peninsula.
Convenient access to employment
centers elsewhere in the bay area also
accounts for the district's popularity
for residential development.
As an indication of the relative
affluence of the district when
compared with the balance of the
San Francisco Bay region, a Real
Estate Research Council of Northern
California report for 1975 concluded
that: (1) homes in southeastern San
Mateo County, including the com-
munities of San Carlos, Redwood City,
Woodside, Portola Valley, Atherton,
Menlo Park and East Palo Alto, had
an average selling price over 20%
higher than the bay area average
price; (2) home prices in Palo Alto,
Los Altos Hills, Los Altos, Mountain
View and Sunnyvale exceeded the
bay area average by over 10%; and
(3) homes in Cupertino, Saratoga,
Monte Sereno and Los Gatos
exceeded the bay area average
by nearly 30%.
According to the Real Estate
Research Council of Northern
California, property values in the
district and vicinity have appreciated
at a substantial rate since 1975. More
specifically, home values in San
Mateo and Santa Clara Counties
increased approximately 35% during
the last twelve month period ending
in June, 1977.
The Menlo Park -Atherton Real Estate
Board lists completed transactions
placed in multiple -listings for real
estate agencies and includes the
actual selling price of property.
During the period January, 1977,
through March, 1977, the average
selling price of homes in Atherton,
Portola Valley and Woodside
exceeded $150,000 while home selling
prices in Menlo Park, Palo Alto and
Redwood City averaged between
$75,000 and $100,000.
Education
In 1976 approximately 350,000
students attended classes in Santa
Clara County's 22 elementary, five
high school and six unified high
school districts. Elementary school
pupils make up over 50% of pre-
college enrollment. In San Mateo
County over 135,000 students attended
schools administered by 17 elemen-
tary, three high school and three
unified school districts.
Institutions of higher education
include Stanford University, the
University of Santa Clara, San Jose
State University, and nine public
community colleges.
The University of Santa Clara is the
oldest college in the western United
States, founded by the Jesuit order in
1851. Undergraduate and graduate
degrees are offered in liberal arts,
science, engineering, and business
administration, plus graduate degrees
in law. After more than 100 years as
a men's college, the University of
Santa Clara became coeducational
in 1961.
Stanford University was founded in
1891 and has gained eminence in
many fields. The faculty includes Nobel
laureates and members of the
National Academy of Sciences.
Student enrollment in 1976/77
included 4,800 graduates and 6,400
undergraduates. About 700 acres of
the university's total land holdings of
8,366 acres have been set aside as the
Stanford Industrial Park.
The Stanford Linear Accelerator was
completed by the Atomic Energy
Commission in 1967 at a cost of
approximately $114 million. The two-
mile long electron accelerator north
of the campus is the world's largest
scientific machine and is used in basic
research on atomic structure.
San Jose State University is the oldest
of the 19 colleges in the California
State University system. The school
was founded in 1862 and moved to
San Jose in 1871. Teacher training
continues to be an important function,
and San Jose trains more teachers
annually than any other California
institution. Course offerings and
degrees have broadened so that now
over 80 undergraduate and 50 master's
degree programs are available. The
university is currently attended by
approximately 27,000 students.
23
Commercial Activity
Table 13 presents the taxable sales
and number of sales permits for all
incorporated areas in the district, and
county totals. In 1976, the district
accounted for nearly one-third of both
counties' total taxable sales. Mountain
View, Palo Alto and Redwood City
each contributed over $350 million to
the district total. All incorporated
communities in the district have
experienced increases in taxable
sales over the past five years.
Major commercial centers in the
district include the Stanford Shopping
Center located in Palo Alto, Vallco
Fashion Park in Cupertino and San
Antonio Shopping Center and Mayfield
Mall Shopping Center, both located in
Mountain View. These four shopping
centers had a combined taxable retail
sales total for 1976 that exceeded
$200 million. The State Board of
Equalization reported that Stanford
Shopping Center had a taxable
retail sales total of $81,472,000, San
Antonio had $55,473,000 and Mayfield
Mall had $28,540,000. The manager of
the Vallco Fashion Park estimated that
the center's annual sales were
approximately $45,000,000.
The Stanford Shopping Center, largest
of the four, has over 1,000,000 square
feet of developed area occupied by
three major department stores, 14
major apparel stores, a supermarket,
four banks and financing institutions
and a 5,000 -car parking capacity.
Vallco Fashion Park, currently with
three department stores and 700,000
square feet of space, is undergoing
expansion at this time and should rival
Stanford for greatest taxable sales
contribution to the region in 1979.
TABLE 13
TAXABLE SALES AND NUMBER OF SALES PERMITS
1973 1974 1975
Number
of
Permits
Total
Taxable
Transactions
Number
of
Permits
Total
Taxable
Transactions
Number
of
Permits
Total
Taxable
Transactions
1976
Number
of
Permits
Total
• Taxable
Transactions
Atherton
107 $ 1,258,000
118 $ 1,331,000 126 $ 1,279,000
141 $ 2,468,000
Cupertino
460 100,150,000 490 110,650,000 529 120,834,000
606 156,179,000
Los Altos 674
55,413,000 707 61,274,000 768 65,203,000
843 72,706,000
Los Altos Hills 93
1,497,000 97 1,415,000 107 1,668,000
132 2,126,000
Los Gatos 689
87,803,000 740 89,406,000 800 95,601,000
838 114,323,000
Menlo Park
724 106,911,000 762 106,482,000 797 110,867,000
832 125,155,000
Monte Sereno 25
64,000 34 112,000 35
92,000 40 235,000
Mountain View
1,562 263,961,000 1,646 301,904,000 1,768 321,618,000
1,872 360,019,000
Palo Alto
1,917 314,910,000 2,004 325,082,000 2,102 342,811,000
2,267 363,699,000
Portola Valley 61
1,589,000 71 1,921,000 75 1,975,000
83 2,049,000
Redwood City
1,255 213,227,000 1,249 221,962,000 1,305 226,743,000
1,340 265,410,000
San Carlos
852 116,653,000 896 129,715,000 915 135,769,000
988 153,322,000
Saratoga 506
17,930,000 541 21,229,000 555 22,537,000
601 24,553,000
Sunnyvale
1,814 277,284,000 1,968 322,272,000 2,116 336,392,000
2,308 389,384,000
Woodside 98
4,688,000 116 5,002,000 129 5,719,000
146 6,930,000
Total
10,837 $1,563,338,000 11,439 $1,699,757,000 12,127 $1,789,108,000
13,037 $2,038,558,000
Santa Clara County 22,985 $3,318,642,000
24,257 $3,781,550,000 26,292 $4,061,592,000
28,342 $4,716,474,000
San Mateo County 12,040 $1,893,554,000
12,453 $2,111,325,000 13,051 $2,205,494,000
13,857 $2,533,909,000
Source: State Board of Equalization, annual summaries of Trade Outlets and Taxable Sales in California.
24
Community Services
Police protection for district residents
is provided by municipal police forces
for most incorporated areas, aug-
mented by the counties' sheriffs in the
unincorporated areas. Cupertino, Los
Altos Hills, Monte Sereno, and
Saratoga contract with Santa Clara
County for full police protection.
County investigative and crime
laboratory services are available to
all municipalities.
Fire protection is provided on a
municipal basis in incorporated cities
and by fire districts in unincorporated
communities. Watershed lands are
under the protection of the California
State Division of Forestry.
Health care service for San Mateo
County residents is provided by the
Department of Health and Welfare
which administers two hospitals. The
Harold D. Chope Community Hospital
offers multi -service clinic facilities to
patients and is an acute care facility
with 120 licensed beds. The Crystal
Springs Rehabilitation Center
provides acute and long-term rehabili-
tation care with 140 licensed beds.
Santa Clara County provides public
health services through its Depart-
ment of Health and Welfare and
through the county -administered
Valley Medical Center, an acute care
hospital with a licensed bed capacity
of 641. The county also contains two
Veterans' Administration Hospitals,
with a total operating bed capacity
of 1,460.
Table 14 lists other general hospitals
in the counties and their licensed
bed capacities.
TABLE 14
GENERAL HOSPITALS
Licensed Beds
Santa Clara County
Stanford University Hospital
643
San Jose Hospital and Health Center, Inc.
578
El Camino Hospital
464
Good Samaritan Hospital of Santa Clara
395
Kaiser Foundation Hospital
322
O'Connor Hospital
320
Santa Teresa Community Hospital
228
Community Hospital — Los Gatos -Saratoga
200
Alexian Brothers Hospital
180
Campbell Community Hospital
48
Wheeler Hospital
46
San Mateo County
Sequoia Hospital District
492
Peninsula Hospital and Medical Center
413
Mills Memorial Hospital
350
Mary's Help Hospital
350
Source: Telephone survey by individual hospital. conducted by Hornblower, Weeks, Noyes &
Trask Incorporated, June 1977.
25
Transportation
Transportation has played a vital role
in the bay area's growth as an
economic center. Seven general
purpose ports located in the area and
numerous private special purpose
facilities serve manufacturing installa-
tions and facilitate distribution to
world markets. The San Francisco
Bay Area is the western terminus for
three transcontinental railroads, and
an extensive network of freeways
serves the area.
The bay area's network of freeways
and expressways provides the penin-
sula's industries access to regional,
national and international markets.
U.S. 101, a parallel route along the
Bay, and a major north -south high-
way between San Francisco and Los
Angeles, provides access to the deep
sea ports at San Francisco and
Redwood City, and to air passenger
and cargo facilities of San Francisco
International and San Jose Municipal
Airports. Interstate Highway 280
traverses the ridge of the peninsula
and joins U.S. 101 in San Francisco.
Additional north -south transportation
is provided by Interstate 5, the major
arterial reaching north to Canada and
south through San Diego, and State
Highway 82. Principal routes con-
necting the peninsula with the east
bay's air and sea ports are State
Highway 17, Interstate Highway 680
and the San Mateo, Dumbarton, and
San Francisco -Oakland Bay Bridges.
The main coast line of the Southern
Pacific traverses the county, providing
connections to San Francisco,
Oakland, and Los Angeles. Commuter
passenger service is operated on the
Southern Pacific between San Jose
and San Francisco. The Western
Pacific operates a branch line in the
county serving the Ford Motor Com-
pany assembly plant and other
heavy industry.
In addition to local bus service,
cities in the district are served by
Santa Clara County Transit System,
San Mateo County Transit District and
Greyhound Bus Lines.
San Francisco International Airport,
located in San Mateo County, is
served by all major scheduled air -
carriers. Air passenger volume
recorded in 1976 was 18,765,087, while
air cargo volume amounted to
677,514,987 pounds for 1975/76.
Metropolitan Oakland International
Airport is served by eight scheduled
airlines and two large supplemental
carriers. In 1976, passenger volume
from all airlines was 2,164,243 and
air cargo registered 14,281,351
pounds. The San Jose Municipal
Airport is served by ten trunk level
carriers and three commuter
carriers and for 1976, air passenger
volume was 2,662,140, while air cargo
amounted to 18,912,360 pounds.
Historically, the San Jose Municipal
Airport primarily served the State of
California. However, the percentage
of interstate flights is rising steadily,
and interstate flight passenger volume
has recorded more than a 10%
increase in the last five years.
Seismic Conditions
The San Francisco Bay Area along
with the entire State of California
shares a history of seismic activity.
The district is located on the San
Francisco Peninsula which is
traversed by three major faults, (the
San Andreas fault, the Seal Cove -San
Gregorio fault, and the Serra fault),
and other identified fault zones. The
impact, if any, on assessed valuation
in the district and the ability of the
district to meet principal and interest
payments on the notes currently being
offered should an earthquake occur
during the life of the notes cannot be
predicted at this time.
Utilities
Santa Clara County's water supply is
primarily local groundwater and
surface water sources. Better than
60% of the county's needs are met
through these sources while the
remainder is imported and distributed
by the Santa Clara Valley Water
District. The water district has con-
tracted for up to 100,000 acre feet
annually from the California State
Water project's South Bay Aqueduct.
These supplies are supplemented by
water from the Hetch Hetchy Aque-
duct of the San Francisco Water
Department.
The current drought conditions in the
State are straining the water district's
local water sources. This situation
should be alleviated when additional
imported water is made available. The
water district has recently signed a
contract with the Bureau of Recla-
mation for up to 145,000 acre-feet of
water by the year 2020 from the San
Luis Reservoir. The water will be trans-
mitted from the reservoir through
Pacheco Pass via the San Felipe
Diversion of the Central Valley Project
to a point in south-central Santa
Clara County. Water district voters
recently approved $56,000,000 revenue
bonds to be issued for the purpose of
installing a new distribution system
for the imported water and to expand
existing water quality treatment
facilities. Imported water, although of
sufficient quality for percolation into
the groundwater system, requires
additional treatment before direct
consumption. The increase in
expected imported sources will
require the water district to expand
existing treatment facilities. These
programs are expected to be
operational by 1984.
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In San Mateo County, 95% of the
water supply is from the Hetch Hetchy
system, while the remaining 5% is
locally developed. The county uses
approximately 85 million gallons per
day. San Mateo County residents are
under mandatory rationing of 25% of
last year's usage. According to the
San Mateo County Public Works
Department, the water situation in the
county is stable at present. The
county has just completed a compre-
hensive water supply study which
carries projections to the year 2020.
In the future, additional supplies will
be sought from the Hetch Hetchy
system, along with reclamation and
conservation measures.
The County of Santa Clara is served
by the San Jose -Santa Clara Water
Pollution Control Plant, the Sunnyvale
Water Pollution Control Plant, the Palo
Alto Water Quality Control Plant, and
facilities serving the cities of Gilroy
and Morgan Hill.
The County of San Mateo is
presently served by 14 water quality
control plants. Consolidation of
service into four regional plants is
now underway, and according to the
San Mateo County Public Works
Department, they are all expected to
be operational within five years.
Electricity, natural gas and telephone
service are provided by Pacific Gas
and Electric Company and the Pacific
Telephone Company. The City of Palo
Alto purchases and distributes electric
power from hydroelectric sources.
Cultural and Recreational Facilities
District residents have an exceptional
selection of cultural and recreational
opportunities. The San Francisco Bay
Area is noted for the concentration
and excellence of its institutions
providing music and drama on a
professional level and through
university presentations, and for its
fine museums of art and history. The
cities of San Francisco, Oakland, and
San Jose support symphony
orchestras, and San Francisco also
has ballet and opera companies. On
the peninsula, the Circle Star Theatre
in San Carlos presents a year round
program of entertainment by well-
known performers, and Stanford
University presents a variety of
lectures, plays and concerts.
The Stanford Museum's permanent
collection includes the B. G. Canton
Gallery of Rodin sculpture. The major
museums in San Francisco and
Oakland, including the San Francisco
Museum of Modern Art, the De Young
Museum, the California Palace of the
Legion of Honor, the Oakland
Museum, and the Art Museum of the
University of California at Berkeley,
are complemented by a number of
fine smaller museums.
The temperate climate of the area
and access to the Pacific Ocean, San
Francisco Bay, and numerous county,
state and national parks, provide
residents almost unlimited outdoor
recreation opportunities, including
boating, fishing, hiking, horseback
riding, and bicycling.
Spectator sports available to residents
include representation of virtually
every major professional sport, as
well as high-level intercollegiate
athletic competition. Bay Meadows in
San Mateo offers thoroughbred racing
and harness racing. Principal penin-
sula attractions include Marine
World/ Africa USA, which consists of
over 60 acres encompassing a series
of islands and waterways providing
niches for a variety of marine and
animal wildlife, and Marriott's Great
America, located in Santa Clara on
U.S. 101. The latter is a 65 -acre
amusement park featuring a spectrum
of entertainment including live theatre
and animal shows.
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