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MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
Meeting 96-09
REGULAR AND SPECIAL MEETING
BOARD OF DIRECTORS
April 24, 1996
MINUTES
I. ROLL CALL
President Nonette Hanko called the meeting to order at 6:35 p.m.
Members Present: Peter Siemens, David Smernoff, Mary Davey, Betsy Crowder, Nonette
Hanko, Teena Henshaw, and Wim de Wit
Members Absent: None
Personnel Present: Craig Britton, lean Fiddes, and Sue Schectman
11. CLOSED SESSION
N. Hanko stated that the Board would adjourn to the Special Meeting Closed Session for the
purpose of discussing Closed Session agenda items I and 2.
The Board recessed to Closed Session at 6:35 p.m., and the,Closed Session commenced at
6:36 p.m. The Board recessed the Special Meeting at 7:30 p.m. and N. Hanko called the
Regular Meeting to order at 7:40 p.m.
Additional Personnel Present: Malcolm Smith, Mike Williams, Randy Anderson, and Mary
de Beauvieres
1H. ORAL COMMUNICATIONS - None
IV. SPECIAL ORDER OF THE DAY
1. Fiddes introduced Laurie Crook, the District's,new part-time secretary who is currently
providing support for the Planning team.
V. ADOPTION OF AGENDA
Motion: T. Henshaw moved that the Board adopt the agenda. P. Siemens seconded the
motion. The motion passed 7 to 0.
V1, ADOPTION OF CONSENT CALENDAR
In reference to B. Crowderg request for an update regarding Claim No. 92 to Enshallah, C.
Britton reported that staff has contacted Woodside about a proposal for an additional lot for
the Pinto Way parcel. He said staff will provide a status report for the Board at a future
meeting.
330 Distel Circle * Los Altos, CA 94022-1404 * Phone:415-691-1200 e FAX:415-691-0485 * E-mail: mrosd@netcom,c,,)m 9
Board of Directors:Pete Siemens,Mary C.Davey,Teena Henshaw,David T.Smernoff,Nonette Hanko,Betsy Crowder,Wim de Wit
General Manager:L.Craig Britton
Meeting 96-09 Page 2
Motion: B. Crowder moved that the Board adopt the Consent Calendar including the
minutes of the April 10, 1996 Regular Meeting; responses to written
communications from Gail LeBaron Reed, 355 Old La Honda Road,
Woodside; Andrew Carlson, via E-mail: <acarlson(Wofficenetl.com>; Nigel
Ray, 865 Mesa Avenue, Palo Alto; Dave Alberga, 25 DeBefl Drive, Atherton;
Patty Ciesla, 4050 Amaranta Avenue, Palo Alto; Glenn Wegner, 10200
Hillcrest Road, Cupertino; Tom Wallace, 173 Hollywood Avenue, Santa Cruz;
Scott M. Hewlett, via E-mail: <scott.hewlett(&Harris.COM>; Tim
Simmons, via E-mail: <tsimmons@auspex.com>; Tim Wong, via E-mail:
<TimWongl@aol.com>; David B. Court, via E-mail:
<court@scd.ucsb.edu>; Peter Donohue, via E-mail:
Pdonohue@raychem.com>; Victor A. Fisher,; Rich Hanford, via E-mail:
<rhanfordQfuhsd.org>; and revised claims 96-08. T. Henshaw seconded
the motion. The motion passed 7 to 0.
VU. BOARD BUSINESS
A. Agenda Item No. I - Acceptance of$408,434 Bid from TAG Group. Inc. of San
Francisco and Award of Contract for Skyline Field Office Construction Project and
Authorization for General Manager to Execute Contract for the Project - (R=rt
96-51)
M. de Beauvieres reviewed staff§ recommendation. She noted that the low bid is
considerably lower than the first time the project was bid and is under the estimate for
the project.
Motion: B. Crowder moved that the Board accept the bid from TAG Group,
Inc. of San Francisco of$408,434.00 and award the contract to
complete this project and authorize the General Manger to enter into a
contract for performance of the work. M. Davey seconded the motion.
The motion passed 7 to 0.
C. Britton thanked M. de Beauvieres for making sure the rebidding process went
smoothly.
B. Agenda Item No. 2 - RLgggsed Creation of the Midpgninsula Regional Q= Sp=
District Financing Authority with Santa Clara County for the Purpose of Debt
Issuance for QI&n Space Land Acquisition by the District - (R=rt R-96-48
C. Britton introduced Tom Lockard, Principal with Stone & Youngberg, proposed
underwriter; and Carlo Fowler, Senior Partner with Orrick, Herrington and Sutcliffe,
bond counsel, for the proposed financing authority. He said this is the first time the
District has undertaken to establish a joint powers authority with the County of Santa
Clara.
C. Fowler explained that the formation of a separate legal entity under California law,
a joint powers authority is being proposed. He said that what is before the Board
I
Meeting 96-09 Page 3
tonight is the resolution to approve the execution of an agreement creating the
Midpeninsula Regional Open Space District Financing Authority, a separate joint
powers authority. He said the new authority, if approved by this Board and then the
Board of Supervisors, is a vehicle for the financing authority to issue its bonds. C.
Fowler said the financing authority will buy two assets: the promissory notes of the
District and the District§ obligation for lease financing. The Authority can bundle,
or buy, a number of different obligations on the District§ part. C. Fowler stated that
one limited side effect is that in converting promissory notes and certificates of
participation to bonds there is a greater market advantage, adding the real benefit is
the bundling of separate obligations.
Tom Lockard cited the following key points: the authority will save the cost of
issuance; rather than issuing two or three separate issues, they are issuing one; the
nomenclature benefit based on certificates of participation being converted into bonds
and the market feeling better about bonds; the efficiency in the structure from
combining three components; larger maturities; greater investment interest; and the
possibility to attract insurance. He said there is clear advantage to buying insurance if
it is made available.
T. Lockard described the charts and graphs contained in the packet distributed to
Board members:
Existing debt service
Three components of bundled issue, showing amortization terms
Existing debt profile and capture of economic benefit of available revenue for
purposes of bonding in later years
Detail of what went into creating previous graph
Schedule (He noted a deadline of August 22 when there is an opportunity to
refinance some high cost notes.)
Illustration of creation of financingauthority and what it would accomplish
P Y
Municipal bond rates
i n 1 90
s since e c 9
P
Short term interest rates for variable rate demand notes
N. Hanko referred to the schedule page and asked if the joint powers authority board
members should be appointed at this time. C. Fowler said he thought that would be
premature because the County has not acted to approve the authority. However, there
does have to be a duly constituted authority to take action in late May or early June.
N. Hanko asked if there was risk with the joint powers agreement as far as the
District is concerned. Mr. Lockard said none other than what you typically take with
issuance of bonds.
C. Britton said that he and Director Smernoff had met with Supervisor Diane
McKenna. She supports formation of the joint powers agreement and felt that the
Board of Supervisors would support forming the authority.
C. Britton stated there is a window of August 22 and 90 days before that when the
Hosking debt, at 8% now, could be refinanced at a much lower rate. He added that
Meeting 96-09 Page 4
the District owes Peninsula Open Space Trust $1 million on a one year note for the
former Rancho de Guadalupe property and they must be paid back in a timely
fashion. The District will realize about $8 million of new money based on the
financing.
N. Hanko asked if there was a restriction in where the land could be acquired, C.
Britton said that is up to the Board from a policy standpoint. T. Lockard stated it is
conceivable that San Mateo County or some other entity would approach the District
to help create other joint powers agreements. He told how they had joined other
districts to create an authority so they could issue bonds instead of certificates of
participation.
Following discussion, it was agreed that the term of the authority should be changed
to 40 years.
Referring to the chart showing the District§ ability to incur new debt, D. Smernoff
was informed that the ceiling on the window above the line is dependent on the
collection of tax revenues. S. Schectman stated that the other constraint is the
statutory limit of the District. This profile has to fit within the maximum borrowing
the District is allowed and M. Foster has calculated that and it does.
Harry Haeussler, 1094 Highland Circle, Los Altos, asked where the Authority will
get money to buy bonds. C. Fowler said the Authority sells bonds to the underwriter
and the Authority§ bonds are sold to the public. C. Fowler said there is only one
commission.
N. Hanko stated that if the joint powers agreement is approved at this meeting, she
intends to appoint the Vice President, the chairman of the Administration and Budget
Committee and the treasurer of the District to the Authority§ Board.
P. Siemens suggested that when the bylaws are drawn up, they state that Authority
Board members be appointed following election of new District Board officers. N.
Hanko asked that this be worked into the procedure.
Motion: P. Siemens moved that the Board adopt Resolution No. 96-14, a
Resolution of the Board of Directors of the Midpeninsula Regional
Open Space District Authorizing the Execution of a Joint Exercise of
Powers Agreement By and Between the Midpeninsula Regional Open
Space District and the County of Santa Clara, amended to change the
term of the authority from 30 to 40 years. T. Henshaw seconded the
motion. The motion passed 7 to 0.
C. Agenda Item No. 3 - Authorization to Purchase 80,76-Acre Wells P=ny for
$50,000 and 80.76-Acre Cutten Prop&rty for $50.000 as Additions to Kennedy
Limekiln Area of Sierra Azul Open Space Preserve. Tentative Adoption of
Preliminary Use and Management Plan Recommendations for the R=rties•
Including Intention to VYithhold Dedication of the Properties as Public Open Spin.
Meeting 96-09 Page 3
tonight is the resolution to approve the execution of an agreement creating the
Midpeninsula Regional Open Space District Financing Authority, a separate joint
powers authority. He said the new authority, if approved by this Board and then the
Board of Supervisors, is a vehicle for the financing authority to issue its bonds. C.
Fowler said the financing authority will buy two assets: the promissory notes of the
District and the District§ obligation for lease financing. The Authority can bundle,
or buy, a number of different obligations on the Districti part. C. Fowler stated that
one limited side effect is that in converting promissory notes and certificates of
participation to bonds there is a greater market advantage, adding the real benefit is
the bundling of separate obligations.
Tom Lockard cited the following key points: the authority will save the cost of
issuance; rather than issuing two or three separate issues, they are issuing one; the
nomenclature benefit based on certificates of participation being converted into bonds
and the market feeling better about bonds; the efficiency in the structure from
combining three components; larger maturities; greater investment interest; and the
possibility to attract insurance. He said there is clear advantage to buying insurance if
it is made available.
T. Lockard described the charts and graphs contained in the packet distributed to
Board members:
Existing debt service
Three components of bundled issue, showing amortization terms
Existing debt profile and capture of economic benefit of available revenue for
purposes of bonding in later years
Detail of what went into creating previous graph
Schedule (He noted a deadline of August 22 when there is an opportunity to
refinance some high cost notes.)
Illustration of creation of financing authority and what it would accomplish
Municipal bond rates since 1990
Short term interest rates for variable rate demand notes
N. Hanko referred to the schedule page and asked if the joint powers authority board
members should be appointed at this time. C. Fowler said he thought that would be
premature because the County has not acted to approve the authority. However, there
does have to be a duly constituted authority to take action in late May or early June.
N. Hanko asked if there was risk with the joint powers agreement as far as the
District is concerned. Mr. Lockard said none other than what you typically take with
issuance of bonds.
C. Britton said that he and Director Smernoff had met with Supervisor Diane
McKenna. She supports formation of the joint powers agreement and felt that the
Board of Supervisors would support forming the authority.
C. Britton stated there is a window of August 22 and 90 days before that when the
Hosking debt, at 8% now, could be refinanced at a much lower rate. He added
Meeting 96-09 Page 6
District, and Authorizing General Manager to Execute Any and All
Other Documents Necessary or Appropriate to the Transaction (Sierra
Azul Open Space Preserve - Lands of Cutten). P. Siemens seconded
the motion. The motion passed 7 to 0.
Motion: P. Siemens moved that the Board tentatively adopt the Preliminary Use
and Management Plan recommendations contained in this report,
including naming the properties as additions to the Kennedy Limekiln
Area of Sierra Azul Open Space Preserve; indicate their intention to
withhold the properties from dedication as public open space at this
time; and determine that the recommended actions are categorically
exempt from the California Environmental Quality Act as set out in the
staff report. T. Hen haw seconded the motion. The motion passed 7
to 0.
VIII. INFORMATIONAL REPORTS
N. Hanko reported that she and M. Smith attended the meeting of the San Mateo County
Council of Cities. Quentin Kopp, Byron Sher, and Jackie Speier were at the meeting and
responded to N. Hanko§ question regarding the status of the Constitutional Revision
Commission§ report; none of them thought it would get to the point of public consideration
before 1998. M. Smith said his impression was that all three of the legislators would not
support the recommendations if they were presented as a package. N. Hanko suggested that
the Board continue to attend these meetings.
P. Siemens said he participated in a press conference pertaining to hillside standards. Monte
Sereno, Los Gatos, Saratoga, Cupertino, and Santa Clara County have entered into an
agreement to try to establish standards including setting urban green line boundaries for the
cities, coming up with consistent standards for building in the hills, and establishing priorities
for preservation of the land. He said he hoped the District will have an opportunity to
participate in some of their planning. He said Greenbelt Alliance is involved. N. Hanko
asked that P. Siemens and R. Anderson make sure the Board is kept updated on the project.
M. Davey complimented the District as represented by N. Hanko and C. Britton at Stan
Norton§ memorial on April 11.
W. de Wit thanked Board and staff members for support during his recovery from surgery.
He announced that he will complete his current term on the Board but will not seek re-
election. However, he stated that he wishes to remain active with outdoor recreation leaders
and environmental education of youth. The Audubon Society will honor him on Thursday,
May 9 at 7:30 p.m. at the Garden Center in San Mateo.
C. Britton extended a final appeal to the Board for attendance at the Special Districts Forum
in Illinois June 5-8. C. Britton stated he thought it would be worthwhile for a member of the
Board to attend the Forum and if anyone could attend they should let him know.
Meeting 96-09 Page 5
and Determination that Recommended Actions are Categorically Exempt Under
CEQA - (R?,Vgrt R-96-5M
R. Anderson pointed out on the map the major roadways and the location of the Wells
and Cutten properties.
C. Britton reviewed the terms of the purchase agreements as contained in the staff
report. He said staff had tried to locate the heirs to the remaining 3/8 interest in the
property, but to clear title the District would probably have to go through a quiet title
action. The more critical aspects of this property are that the proposed Ridge Trail
goes through a comer of it and it is part of the viewshed of the former Rancho de
Guadalupe property.
R. Anderson showed slides depicting the property including views from various
locations on and off the property. Following a summary of the staff report, he said it
is the intention of the staff to provide access to the public on the Ridge Trail during
the Preliminary Use and Management Plan stages.
Harry Haeussler, Los Altos, asked why the staff is recommending that the property
not be dedicated as open space. R. Anderson and N. Hanko explained it is to allow
the assembly of the parcels in the Sierra Azul Area, including the former Rancho de
Guadalupe property, and the development of a comprehensive plan that addresses
their use.
D. Smemoff inquired about the timetable for a Comprehensive Use and Management
Plan. R. Anderson said there will be an interim plan in the near future. C. Britton
said it is in the five year plan and depends on whether the Sierra Azul Open Space
District is reconfigured and timing on the Mt. Umunhurn cleanup by the federal
government.
C. Britton informed D. Smemoff that there are four private holdings to the north of
the proposed acquisition, and a new road has been built into the plan. He said the
District is not actively trying to purchase any of those properties.
Motion: M. Davey moved that the Board adopt Resolution No. 96-15, a
Resolution of the Board of Directors of the Midpeninsula Regional
Open Space District Authorizing Acceptance of Purchase Agreement,
Authorizing Officer to Execute Certificate of Acceptance of Grant to
District, and Authorizing General Manager to Execute Any and All
Other Documents Necessary or Appropriate to the Transaction (Sierra
Azul Open Space Preserve - Lands of Wells). D. Smemoff seconded
the motion. The motion passed 7 to 0.
Motion: M. Davey moved that the Board adopt Resolution No. 96-16, a
Resolution of the Board of Directors of the Midpeninsula Regional
Open Space District Authorizing Acceptance of Purchase Agreement,
Authorizing Officer to Execute Certificate of Acceptance of Grant to