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HomeMy Public PortalAbout19850815 - Minutes - Board of Directors (BOD) Meeting 85-22 0 tem MIDPENINSULA REGIONAL OPEN SPACE DISTRICT 375 DISTEL CIRCLE,SUITE D-11, LOS ALTOS,CALIFORNIA 94022 (415)965-4717 SPECIAL MEETING BOARD OF DIRECTORS AUGUST 15, 1985 MINUTES I . ROLL CALL President Teena Henshaw called the meeting to order at 7 : 40 P.M. Members Present: Katherine Duffy, Daniel Wendin, Teena Henshaw, Nonette Hanko, Daniel Wendin, and Richard Bishop. Member Absent: Harry Turner. Personnel Present: Herbert Grench, Craig Britton, Del Woods, Jim Boland, Jean Fiddes, Alice Cummings, Michael Foster, Stanley Norton, John Escobar, Cecilia Cyrier , and Joan Combs . II . ORAL COMMUNICATIONS There were no oral communications. III . NEW BUSINESS WITH ACTION REQUESTED A. Proposed Acquisition of El Corte de Madera Creek Open Space Preserve (Lands of Hosking) (Report R-85-42 of August 13, 1985) H. Grench introduced Alan Hosking and his assistant, Bill Dooley. He said that the proposed acquisition was the largest in the District' s history in terms of acreage and cost and that there were major financial implications. He reported that according to Michael Foster, the District' s Controller, this single transaction could take approximately one-third of the District' s land acquisition funds over the next twenty years and that staff had looked particularly carefully at projected cash flow and potential Open Space Management growth in light of the proposed acquisition. He noted that another aspect about this particular acquisition was the implications in terms of Open Space Management and said that this was the first time the Board was being asked to make concurrently a commitment for additional Open Space Management funding as part of an acquisition. H. Grench said he was recommending the entire acquisition, including the option parcels, because the opportunity for acquiring such a large amount of open space should not be passed up, and added that he felt the transaction was very beneficial to the District because of the opportunity to re-evaluate the District' s options in four years. He said that he would not have recommended the initial 595 acre area at $3. 675 million without the rest of the package. D. Woods pointed out the prospective acquisition on a wall map, noting that Parcels A and B were under consideration for acquisition at the present time. He said the entire property was zoned TPZ (Timber Production Zone) , and a timber management plan is on file with the County of San Mateo. He discussed potential trail routes and parking areas. A. Cummings showed slides of the property. Herbert A.Grench,General Manager Board of Directors:Katherine Duffy,Nonette G.Hanko,Teena Henshaw,Richard S.Bishop,Edward G.Shelley,Harry A.Turner,Daniel G.Wendin Meeting 85-22 Page two J. Boland reviewed the interim use and management recommendations for the property. He said that the new preserve would require a significant amount of patrol, an estimated 25 to 30 hours of Ranger time per week. He noted that $38,000 had been identified as potential Open Space Management funding needs associated with this potential acquisition, including an additional Ranger and a patrol vehicle. N. Hanko asked if the picnic table in Parcel A could be retained and restored if the broken parts were repaired or removed. D. Woods said a portion of the table was hazardous, adding that the hazardous portion could be removed and the rest of the table retained until further study had been made. D. Wendin said he supported retaining the table, if possible. Jim Warren, 345 Swett Road, Woodside, said the picnic table had some local historical value and suggested the table be retained until further study. T. Henshaw stated the concurrence of the Board that the non-hazardous portions of the picnic table should be retained for the present. C. Britton discussed the terms of the acquisition in detail, noting that a purchase agreement and an option agreement were included. He said the Master Purchase Agreement covered the acquisition of Parcels A and B (595 acres) , excluding the 3. 8 acre lot which would be retained by Theresa Hosking. He said the purchase price would be approximately $3,675,000 and described the framework of the Master Purchase Agreement using a wall chart to illustrate the components of the Agreement. N. Hanko, referring to item vii under Master Purchase Agreement in the staff report, noted that the Master Agreement stated "Ranger/Caretaker" rather than "Ranger" as stated on page 14 of the staff report. C. Britton said "Ranger/Caretaker" had been used consistently in the Agreement. N. Hanko said that she wished it to be noted that "Ranger/Caretaker" should appear in the report as well as the Agreement. C. Britton stated that the phrase "Ranger/Caretaker" had been used to allow for the option of having either a District Ranger or a caretaker hired by the District living in the residence being provided in the barn structure. E. Shelley asked if there were any existing timber rights on Parcels A and B. C. Britton said that the entire property was encumbered with timber rights, and deeds of trust held by Big Creek Lumber Company for security of the timber projects. He said that as part of the purchase agreement, the property will be delivered free and clear of all liens of the Big Creek Lumber Company. He said that the lumber company would continue to harvest timber on Parcels 1 and 2 , noting that Big Creek Lumber Company owns title to 42 million board feet. He stated that there would be no logging truck activity over the two parcels being proposed for immediate acquisition. C. Britton discussed the Option Agreement, which would cover a four year period. He said that although option payments would be made on the anniversary date of close of escrow, the District would be required to notify Mr. Hosking on or before March 1 of each year of its intentions in order to allow Mr. Hosking Meeting 85-22 Page three to sell timber in the event the District did not extend the option. C. Britton reviewed the payment schedule to extend the option, which called for a total payment over the four year period of $1, 050, 000. He said that at any point in that period of time, the District could acquire Parcel 1 for $5,626 , 000 with 20% down and the balance paid over a ten year period at 8% . He said that if the District exercised the option for Parcel 1, the District would be deeded Parcel 2, with six years in which to decide whether to acquire Parcel 2. He said that if the District exercised the option on Parcel 1 and declined Parcel 2, it would be deeded back to Mr. Hosking, who would be allowed to build fifty units on Parcel 2. In response to a question from N. Hanko regarding how the District would monitor the amount of board feet of timber cut, C. Britton said that the agreement provides that the District can hire a forester to work with Big Creek Lumber Company and added that there is already a timber harvest plan on file with San Mateo County that dictates the areas of future timber harvest. He said that Big Creek Lumber Company holds exclusive timber rights to the property. N. Hanko said she was concerned about guaranteeing the preser- vation of first growth redwoods on the site, and Mr. Hosking said that the first growth redwoods are outside the designated logging area. C. Britton introduced Jim Curlett and Lorraine Clasquin, who provided legal advice and services to the District during negotiations for the property. He also introduced Mr. Hosking' s attorney, David Lively. R. Bishop noted that the acquisition would consume a substantial portion of the District' s finances over a 20 year period and could limit the District' s ability to acquire other important parcels, and asked if an analysis had been made to determine if other money would be available for acquiring desirable property. C. Britton said that a financial analysis had been made and a summary was included as an appendix for the Board report. He said a key element of the analysis was that the District had acquired an average of 1400 acres per year, and during the next five years, the cash analysis shows the purchase would not severely impact the District' s acquisition program. N. Hanko, referring to Exhibit D to the Master Agreement, noted language missing at the end of paragraph (ii) , which refers to improvements on the Life Estate Parcel. C. Britton said the missing line should read: "scale, height and bulk of such buildings" . N. Hanko noted a typographical error in which "parcel" was spelled "parcela" in Exhibit F of the Master Agreement. She also requested the correction of "Ranger" to "Ranger/Caretaker" in the Option Agreement to assure consistency with the Master Agreement. J. Warren asked if the options relative to Parcels 1 and 2 gave the District patrol rights to those parcels, noting extensive intrusion of motorcycles on these parcels. C. Britton said the Pacific International Trails Society (PITS) had a month to month lease on the property which would be discontinued upon acquisition by the District. Meeting 85-22 Page four C. Britton stated that the Board was being asked to consider a third resolution for adoption. He said the resolution provided specific authorization for the issuance of up to $2 ,527, 500 of District notes for the acquisition of the property. Motion: N. Hanko moved that the Board adopt Resolution 85-38, a Resolution of the Board of Directors of the Midpeninsula Regional Open Space District Authorizing Acceptance of Master Agreement for Purchase of Interests in Real Property, Authorizing Officer to Execute Certificate of Acceptance of Grant to District, and Authorizing General Manager to Execute Any and All Other Documents Necessary to Closing of the Transaction (El Corte de Madera Creek Open Space Preserve - Hosking Property) . R. Bishop seconded the motion. Discussion: E. Shelley said that he felt the Board did not take this purchase lightly and that he was convinced that the acquisition would not over-burden the District. K. Duffy said she was very much in favor of the acquisition. The motion passed 6 to 0. Motion: N. Hanko moved that the Board adopt Resolution 85-39, a Resolution of the Board of Directors of the Midpeninsula Regional Open Space District Authorizing Acceptance of Option Agreement, Authorizing Officer to Exercise Option Agreement, and Authorizing General Manager to Execute Any and All Other Documents Necessary or Appropriate to Closing of the Transaction (Hosking Property) . R. Bishop seconded the motion. The motion passed 6 to 0. Motion: N. Hanko moved that the Board adopt Resolution 85-40, a Resolution of the Board of Directors of the Midpeninsula Regional Open Space District Providing for the Issuance and Delivery of Up to $2 ,527, 000 Principal Amount of "Midpeninsula Regional Open Space District 1985 Install- ment Promissory Notes (Hosking Ranch Acquisition) " . R. Bishop seconded the motion. The motion passed 6 to 0. H. Grench stated that he felt it was important for the Board to make a commitment regarding the transfer of funds, as necessary, from Open Space Acquisition to Open Space Management at this time regarding the need for an additional Ranger and patrol vehicle. He said that the specific authorization for an additional Ranger position and additional truck, as necessary, would be requested from the Board at a later meeting. Motion: N. Hanko moved that the Board adopt the Interim Use and Management recommendations contained in the staff report,indicated its intention to dedicate the property as open space, and unofficially name the property El Corte de Madera Open Space Preserve. R. Bishop seconded the motion. The motion passed 6 to 0. Motion: N. Hanko moved that the Board authorize the General Manager to transfer, as needed, from the Open Space Acquisition New Land Commitments budget category to the Open Space Management' s budget for fiscal year 1985-1986 up to $38 , 000 for funding needs identified in the report. R. Bishop seconded the motion. The motion passed 6 to 0. Meeting 85-22 Page five IV. CLAIMS Motion: E. Shelley moved that the Board approve Claims 85-17 of August 15, 1985. K. Duffy seconded the motion. The motion passed 6 to 0. V. CLOSED SESSION T. Henshaw stated no Closed Session would be held as part of the Special Meeting. VI . ADJOURNMENT The meeting adjourned at 9 : 30 P.M. Joan Combs Secretary