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HomeMy Public PortalAbout19770713 - Minutes - Board of Directors (BOD) I Meeting 77-18 t` 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. i 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