HomeMy Public PortalAbout19770713 - Minutes - Board of Directors (BOD) I
Meeting 77-18
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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
Regular Meeting
Board of Directors
M I N U T E S
745 Distel Drive
July 13, 1977 Los Altos, CA
s
I. ROLL CALL
The meeting was called to order by President Wendin at 7 :18
P.M. I
I
Members Present: Richard Bishop, Katherine Duffy, Barbara
Green, Nonette Hanko, Edward Shelley, Harry Turner and
Daniel Wendin.
Personnel Present: Herbert Grench, Anne Crosley, Del Woods,
Carroll Harrington, Jennie George, Phyllis Lee, Rose Hartman,
Stanley Norton and John Melton.
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II. EXECUTIVE SESSION j
The Board recessed to Executive Session at 7 :19 P.M. to dis-
cuss personnel matters.
The Board reconvened at 7 :55 P.M.
III. APPROVAL OF MINUTES
A. Minutes of June 22, 1977
D. Wendin stated the consensus that the minutes of June 22 ,
1977 be approved as presented.
IV. WRITTEN COMMUNICATIONS
A. Crosley advised the Board of two Written Communications,
one from Mr. Peter A. Panelli, 21685 Regnart Road, Cupertino,
asking the Board to oppose formation of a Regnart Road Assess-
ment District; and one from Ms . Eleanor Reinthaler, 21385
Rumford Drive, Cupertino, asking the Board to oppose proposed
development in Regnart Canyon.
H. Grench referred the Board to a letter from the San Mateo
County Director of Parks and Recreation, dated July 8, 1977 ,
asking for the District's recommendation on the percentage
r.
A. Minutes of July 13, 1977
D. Wendin said he would like to clarify that the 11.7% figure in
paragraph one, page five, refers to the faction of tax revenue.
D. Wendin stated the consensus that with the above clarification,
the minutes of July 13, 1977 are approved as presented.
Meeting 77-18 Page two
allocation of funds from Proposition 2. H. Grench suggested
the Board could either consider a draft reply at its next
meeting or authorize the General Manager to reply on their
behalf. D. Wendin suggested it be placed on the July 27
meeting agenda.
V. ADOPTION OF AGENDA
H. Grench said an update of the proposed Regnart Road Assess-
ment District would be presented under Informational Reports.
D. Wendin stated the consensus that the agenda be adopted
with the above addition.
VI. ORAL COMMUNICATIONS
There were no Oral Communications at this time.
VII. OLD BUSINESS WITH ACTION REQUESTED
A. Proposed Acquisition of Addition to Permanente Creek Park
(Archdiocese Property)
H. Grench introduced his report (R-77-36) dated July 8, 1977,
regarding a Proposed Acquisition of Addition to Permanente
Creek Park (Archdiocese Property) to fulfill the District 's
part of the intergovernmental parks project with Santa Clara
County and the City of Sunnyvale. The District would purchase
199 acres of land near the St. Josephs ' Seminary for $366 ,000 ,
which is the price Santa Clara County is paying for Sunnyvale
Mountain Park. With their $366 ,000 , Sunnyvale will purchase
urban park or open space land. The District plans to use
$137, 820 in State Roberti-Z 'Berg funds to purchase 119 of the
total 199 acres proposed as an addition to Permanente Creek
Park. H. Grench advised that title to the 119 acres would
transfer to the District as soon as escrow is closed. The
other 80 acres would be placed in a holding agreement while
the staff studies what appears to be an encroachment of the
Kaiser-Permanente quarry operation on a portion of that parcel.
He said it was possible that a boundary realignment with
Kaiser-Permanente could be developed wherein Kaiser would
own the encroached portion of the 80 acres and would transfer
an alternate portion of their property to the District, which
would perhaps include the PG&E power line service road that
is used as a trail to Black Mountain.
H. Grench said the County and the District would both be work-
ing on joint use and management planning for the area. For
the present, interim use and management of the site would
essentially allow for the present level of use by hikers and
equestrians, with the existing unsurfaced road designated as
a temporary trail and patrol road.
Meeting 77-18 Page three
H. Grench recommended adoption of resolutions authorizing the
acquisition of the 119 and 80 acre parcels, and approval of the
interim use and management recommendations in his report. He
further recommended approval of a change in the District 's
agreement with the County to reflect a completion date of
August 31 , 1977 instead of June 30 , 1977.
Motion: B. Green moved adoption of Resolution No. 77-26, a
Resolution of the Board of Directors of the Midpenin-
sula Regional Open Space District Authorizing
Acquisition of Property (Roman Catholic Archbishop
of San Francisco - Document No. 77-A) . D. Wendin
seconded the motion. The motion passed unanimously.
Motion: B. Green moved adoption of Resolution No. 77-27 , a
Resolution of the Board of Directors of the Midpenin-
sula Regional Open Space District Authorizing
Acquisition of Property (Roman Catholic Archbishop
of San Francisco - Document No. 77-B) . H. Turner
seconded the motion. The motion passed unanimously.
Motion: B. Green moved approval of the interim use and manage-
ment recommendations as set forth in report R-77-36
dated July 8 , 1977. D. Wendin seconded the motion.
The motion passed unanimously.
Motion: D. Wendin moved approval of a change in the dates
contained in sections 1 and 3 of the agreement with
Santa Clara County approved by the District's Board
of Directors on April 27 , 1977 , so that the date June
30 , 1977 reads August 31, 1977 for action by the Board
of Supervisors. N. Hanko seconded the motion. The
motion passed unanimously.
VIII. NEW BUSINESS WITH ACTION REQUESTED
A. Adoption of Budget for Fiscal Year 1977-1978
1. Report of General Manager. H. Grench presented his
report (R-77-33) dated July 6 , 1977 , regarding the Adoption
of a Preliminary Budget for Fiscal Year 1977-1978. He
said the proposed budget was based upon the activities set
forth in the Action Plan that had been tentatively adopted
by the Board on May 11 and June 8 , 1977. He explained that
staff used a form of zero-base program budgeting. The
budget has been reviewed by the _Budget Subcommittee and is
presentee in line-item form to the Board. He said total
projected cash revenues would be about $3 ,541 ,000 , plus
about $221,500 expected in grant funds. Interest earned
on invested funds is expected to be about $180 ,000 , and
it is anticipated that the Board will borrow $6.6 million
Meeting 77-18 Page four
in the next year of a possible $10 million in loan commit-
ments for land acquisitions. of the $6. 6 million, $4 . 6
million would be used for payment of previous land commit-
ments, and the remainder for new land commitments.
H. Grench pointed out that the Reserves - Opportunities and
Emergencies category has been increased to $1 million to
give added fiscal security to the District. He explained
that a new expenditure category called Debt Service has
been added to reflect $1. 4 million in principal and interest
payments on the proposed issuance of promissory notes and
on installment purchase contracts.
H. Grench recommended that the Board allocate an overall
salary increase of 11.2% to allow management flexibility
to give equitable salary increases as needed, since this
amount reflects what most other public agencies will be
giving as cost of living and merit increases. He advised
that a contingency of $21,000 has been included in the event
the District must begin making contributions for unemploy-
ment compensation, and another contingency to provide
benefits to permanent, part-time employees has been included
in the event Santa Clara County's payroll system will
allow the District to consider this option.
H. Grench said contingent funds include $29 ,000 for probable
or possible staff positions which would require further
Board approval, and $21,500 for Services and Supplies con-
tingencies.
Fixed Assets include money budgeted for Previous Land Commit-
ments and for New Land Commitments. The Structures and
Improvements budget totals $69 ,000 . Contingencies of $10 ,000
for a vehicle and $50 ,000 for Field Equipment (radio communi-
cations) have also been included, he said.
H. Grench said the increase in the level of land acquisition
for the District may require additional staff or consultant
resources over the next one or two years. Half of the Land
Endowment Specialist 's time will be involved in the newly
formed Peninsula Open Space Trust.
H. Grench said that site-related expenses under Land Manage-
ment have been divided into three main categories : Site
Preparation, Site Operation and Maintenance , and Fixed Assets
Structures and Improvements. He said some expenses in these
categories can be considered "enterprise activities" which
will result in an income-producing activity for the District.
H. Grench said that wherever possible , expenditures have
been allocated to either Land Acquision, Land Management or
Meeting 77-18 Page five
Public Communications. Expenses which are not easily allo-
cated to individual programs or which support all programs
are placed in the General Management and Program Support
category. He pointed out that almost 95% of all revenue
received by the District is designated for the Land Acqui-
sition Program, and the 11. 7% budget policy guideline for
Land Management Program expenditures the forthcoming fiscal
year will be met.
H. Grench recommended that the Board adopt a resolution
adopting the preliminary budget for the 1977-1978 fiscal
year, with the change that an average salary increase guide-
line of 11. 2% be allocated, rather than the 8. 6% figure
set forth in the proposed budget.
2 . Report of Controller. J. Melton presented his report
(R-77-35) dated July 8 , 1977, regarding his Analysis of the
Proposed Fiscal Year 1977-1978 Budget. He said that the
District was in a favorable cash balance position for the
coming fiscal year, and the impact of borrowing money did
not appear to be detrimental . Attached to his report was
a Pro-Forma Funds Statement explaining the impact of the
proposed budget on the District 's cash and debt capacity
balances. He noted that the substantial increase in tax
revenues will be due to the annexation of a portion of San
Mateo County to the District.
3. Report of Budget Subcommittee. N. Hanko introduced the
report of the Budget Subcommittee (M-77-120) dated July 5 ,
1977. She said the Budget Subcommittee met on four occas-
sions to discuss the proposed budget, salary range increases
and tax rate of the District. The Subcommittee recommended
an 8. 6% average salary increase, based on a 6. 2% cost-of-
living rate for the Bay Area plus 2 .4% for merit. The Sub-
committee further recommended adoption of the revised salary
range figures set forth in the General Manager 's report
for full-time regular employees of the District.
H. Turner said the Subcommittee recommended a continuation
of the 10� tax rate for the reasons set forth in his memoran-
dum (M-77-121) dated July 5 , 1977. He cited price inflation
in potential open space land acquisitions, the projected
inflation rate for the next year, the moderate growth rate
of property tax revenues , and the fact that the District is
keeping the cost of salaries , services and supplies to
strict expenditure levels as reasons considered by the Sub-
committee.
Motion: N. Hanko moved adoption of Resolution No. 77-28 , a Reso-
lution of the Board of Directors of the Midpeninsula
Regional Open Space District Adopting Preliminary Budget
for Fiscal Year 1977-1978 . E. Shelley seconded the
motion. The motion passed unanimously.
Meeting 77-18 Page six
4. Adoption of Annual Claims List. J. Melton introduced
his memorandum (M-77-129) dated July 8 , 1977 , regarding
Adoption of the Annual Claims List. He said this will
enable the Controller to pay recurring claims throughout
the year. He said the Annual Claims List includes such
items as rent, staff salaries, retirement and group
insurance premiums , vehicle allowance, District Legal
Counsel fees and Directors ' fees .
D. Wendin said he would prefer that $8400 be allocated
for Directors ' Fees rather than the $12,600 presented,
since the Board has not made any policy decision on an
increase in fees. The Board agreed with this change.
Motion: N. Hanko moved adoption of the Annual Claims List as
presented in memorandum M-77-129 dated July 8, 1977,
with the exception that $8400 be approved for Directors '
Fees rather than $12 ,600 . B. Green seconded the motion.
The motion passed unanimously.
K. Duffy suggested a letter be sent to the Cupertino Councilmembers
who wrote asking the District to consider reducing its tax rate
for the forthcoming fiscal year. She said H. Turner' s memorandum
M-77-121 should be included. D. Wendin stated the consensus that
such a letter be prepared by staff for the President's signature.
B. Adoption of Action Plan for Implementation of the Basic Policy
of the Midpeninsula Regional Open Space District for Fiscal
Year 1977-1978
H. Grench introduced his memorandum (M-77-123) dated July 6 , 1977 ,
regarding the Action Plan for Implementation of the Basic Policy
of the Midpeninsula Regional Open Space District for Fiscal Year
1977-1978. He said the draft Action Plan had been tentatively
adopted by the Board on May 11 and June 8 to guide budget prepar-
ations , and he recommended the final version of the Action Plan
be approved.
Motion: D. Wendin moved approval of the Action Plan for Implemen-
tation of the Basic Policy of the Midpeninsula Regional
Open Space District for Fiscal Year 1977-1978 as presented
with the General Manager's memorandum M-77-123. R. Bishop
seconded the motion.
Discussion: Robert Mark, 725 Cowper, Palo Alto, suggested
that review of CEQA documents be done by the Environmental
Analyst. H. Grench replied that staff has such an inter-
nal review process. The motion passed unanimously.
G. Jennings expressed concern that the Board was sending the Bud-
get Subcommittee 's report on the continuation of the 10� tax rate
in response to the letter from two Cupertino Councilmembers, since
he said the report involved speculation rather than fact. K.
Duffy said she felt they were entitled to a reply.
Meeting 77-18 Page seven
C. Plan to Borrow Money to Finance Land Acquisition
J. Melton introduced representatives from Stone & Youngberg, an
investment securities firm, and from Hornblower, Weeks, Noyes
& Trask, financing consultants , who have been assisting the Dis-
trict in arranging to use its borrowing power to finance $4 .6
million in old and new land acquisitions. He presented his
memorandum (M-77-128) dated July 8 , 1977 , which outlines the
actions the Board must take to implement its Plan to Borrow Money
to Finance Land Acquisition. He recommended the Board adopt a
resolution authorizing the issuance of $4 . 6 million in notes ,
setting the interest payment schedule, and adopting the official
statement of the Board; and a resolution approving an agreement
with United California Bank as paying agent for the District.
He further recommended approval of an agreement with the firm
of Orrick, Herrington, Rowley & Sutcliffe to serve as District
legal counsel relating to note issues. He added that the notes
have received an A-1 rating.
R. Bishop recommended amending the middle column, second para-
graph on page 1 of the official statement to make it clear that
the San Francisco International Airport is not within District
boundaries. J. Melton stated that an appropriate change would
be made to clarify the sentence. D. Wendin stated the consensus
that the Board agreed with such a change.
Motion: D. Wendin moved adoption of Resolution No. 77-29 , a
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 Offi-
cial Statement. H. Turner seconded the motion. The
motion passed unanimously.
Motion: D. Wendin moved adoption of Resolution No. 77-30, a
Resolution of the Board of Directors of the Midpeninsula
Regional Open Space District Approving, Authorizing and
Directing the Execution of an Agreement with United
California Bank. H. Turner seconded the motion. The
motion passed unanimously.
Motion: D. Wendin moved approval of an agreement with Orrick,
Herrington, Rowley & Sutcliffe as set forth in their
letter dated April 21 , 1977 , attached to a memorandum
(M-77-24) dated July 6 , 1977 from Legal Counsel to the
Board, and authorizing the General Manager to execute
said agreement. R. Bishop seconded the motion. The
motion passed unanimously.
J. Melton advised that Director R. Bishop may sign the notes in
lieu of the Board' s Treasurer, and has indicated his willingness
to do so. D. Wendin stated the consensus that this arrangement
is agreeable to the Board.
1
Meeting 77-18 Page eight
D. Appointment of Auditor for 1976-1977 Fiscal Year
J. Melton introducted his memorandum (M-77-134) dated July 11 ,
1977 , regarding the Appointment of an Auditor for the 1976-1977
Fiscal Year. He recommended that the Board appoint Elmer Fox,
Westheimer & Co. as auditors, since they have submitted a fee
lower than than submitted by a competitor two years ago and
because he felt it would be desirable to have the continuity
of using the same firm at this particular time. He mentioned
that Elmer. Fox, Westheimer & Co. had been especially helpful
during the preparation of the official statement relating to
the issue of promissory notes.
Motion: B. Green moved to appoint Elmer Fox, Westheimer & Co.
as the District 's auditors for fiscal year 1976-1977 ,
and to authorize the President to accept the proposal
of the firm as submitted in the Controller' s memorandum
(M-77-134) dated July 11 , 1977 . R. Bishop seconded the
motion. The motion passed unanimously.
The Board recessed at 9 :20 P.M. and reconvened at 9 : 38 P.M.
E. Recommended Salary Range Adjustments
H. Grench introduced his report (R-77-32) dated July 6 , 1977,
regarding Recommended Salary Range Adjustments for full-time
regular District employees. He explained that this year during
budget preparation is the first time all such positions have
received comprehensive, up-to-date salary range reviews. Staff
positions have been compared with similar positions in other
Bay Area public agencies and, using the midpoint of the average
of the most comparable positions for each District position,
a range factor was applied to determine a competitive revised
salary range. He said that in cases where two or more Dis-
trict positions of equivalent responsibility had revised salary
ranges that were close , the ranges were averaged together and
made the same. He pointed out that secretarial positions would
be considered at a later date since it is anticipated that a
revised job description will be needed to reflect changes in
these positions. He recommended that the Board adopt the
revised salary ranges as set forth in his report, effective
October 3, 1977. He explained that the October 3 date had been
chosen to corresvond to a new administrative procedure for
salary changes , in which individual performance reviews will
all be held in the month of August, with changes made October 3.
In response to a question from R. Bishop, H. Grench said there
were enough contingent funds for the General Manager to bring
employees up to the bottom of their range if the average 8.6%
increase is not sufficient to do so. He said there were no
automatic "step" increases for District employees.
Meeting 77-18 Page nine
A. Crosley explained several factors which affect the percentage
of change which is found in different salary ranges, such as:
(1) management and non-management positions are not always
reviewed at the same time or given the same increases in other
agencies; (2) salary data used for different positions can
be older or newer depending upon when the position was estab-
lished or last reviewed; (3) occasionally a comparable from
another agency has been eliminated, and replacements found may
have different salary ranges; (4) larger agencies periodically
"upgrade" classes of positions in years when other classes are
not upgraded; (5) different levels of a type of position may be
used depending upon the performance level of the individual
occupying a staff position.
Motion : K. Duffy moved adoption of the revised salary ranges
for full-time regular District employees as set forth
in the General Manager's report (R-77-32) dated July
6 , 1977. B. Green seconded the motion. The motion
passed unanimously.
IX. OLD BUSINESS WITH NO ACTION REQUESTED
A. Fremont Older Open Space Preserve Ranchhouse Proposal
D. Wendin said he had been unable to draft a proposed lease in
time to be considered at this meeting; however, he would try
to do so in the next few days .
K. Duffy added that she, J. Olson and M. Levine would be meeting
on the Preserve shortly to delineate a possible lease area.
Michael Block, 2463 Burnham Way, Palo Alto, asked what the Board' s
intentions were and expressed his concern that leasing the area
would limit public access. D. Wendin replied that the District
Board has not made a commitment, but has given direction to the
Subcommittee to negotiate a proposed lease.
M. Block said the question which the Board must consider is
whether historical renovation is worth it, and if a precedent
is being set.
R. Bishop said he did not feel public access was a problem, since
only 2 acres out of several hundred acres would be included in
the lease.
X. NEW BUSINESS WITH NO ACTION REQUESTED
A. Conflict of Interest Code
A. Norton advised that he would present a proposed Conflict of
Interest Code to the Board at its next meeting, to comply with
the Political Reform Act of 1974 . He said the Code would be
Meeting 77-18 Page ten
similar to Resolution No. 76-23, which was adopted last year by
the Board.
After discussion, it was the consensus that the Board of Direc-
tors, Legal Counsel, Controller, General Manager, Land Manager,
Land Acquisition Manager and Land Endowment Specialist would be
covered in the Code.
H. Grench suggested that he and Legal Counsel should also consider
at which point prospective employees for positions covered by
the Code should be required to submit appropriate information.
XI. INFORMATIONAL REPORTS
A. Special Districts Forum
H. Grench said he was planning to attend a Special Districts Forum
being held July 22-24 in Detroit, if his schedule permitted, but
that he would be happy to have a Board member attend in his place.
B. Regnart Road Assessment District
D. Woods gave a report on the status of the proposed Regnart Road
Assessment District and the proposed Nellis Subdivision in Reg-
nart Canyon. He said it appeared that a number of citizens were
planning to attend a meeting of the Cupertino City Council next
Monday night to express their concern for the environmental effect
of the two projects.
R. Mark said he felt the District should have sent a letter to
the City of Cupertino regarding the possible environmental impact
of the projects. He said the fact that the District doesn't
have the answers to its questions about the projects indicates
that an Environmental Impact Report is needed.
H. Grench advised that the District had continued to keep in
contact with the City at a staff level.
Gordon Jennings, 3611 Woodside Road, Woodside, said he felt it
would be a mistake to initiate a confrontation with Cupertino on
this matter.
N. Hanko and H. Turner expressed concern for the impact of the
proposed projects on the Fremont Older Open Space Preserve.
Motion: B. Green moved that a letter be sent to the Cupertino
City Council raising the question of the need for an
assessment of the impact of the proposed projects on
the District ' s property. There was no second to the
motion.
Meeting 77-18 Page eleven
Following discussion, D. Wendin stated the consensus that the
District prepare a letter to the Cupertino City Council asking
why the Nellis subdivision and Regnart Road Assessment District
proposals were found to have no impact, especially since the
District' s recent acquisitions for open space were not included
in the studies done for Cupertino ' s General Plan.
N. Hanko suggested a personal appearance at the Monday night
meeting would be appropriate.
C. Environmental Volunteers Grant Project
C. Harrington advised that the Environmental Volunteers had
received a grant for environmental education purposes , which
would involve introducing children from two grade schools to
the natural environment on Permanente Creek Park. She said
there had been some good publicity on the program in several
local newspapers.
XII. CLAIMS
Motion: D. Wendin moved approval of the revised claims (C-77-14)
dated July 13, 1977 , as presented. E. Shelley seconded
the motion. The motion passed unanimously.
XIII . EXECUTIVE SESSION
The Board recessed to Executive Session at 10 :52 P.M. to discuss
land negotiations.
XIV. ADJOURNMENT
The Board reconvened to adjourn at 11: 58 P.M.
Anne Cathcart Crosley
District Clerk