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Home My Public Portal About19960424 - Agendas Packet - Board of Directors (BOD) - 96-09 Regional Open Spacti, MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Meeting 96-09 REGULAR AND SPECIAL MEETING BOARD OF DIRECTORS AGENDA* 6:30 P.M. 330 Distel Circle Wednesday Los Altos, California April 24, 1996 (6:30) ROLL CALL SPECIAL MEETING OF THE BOARD OF DIRECTORS CLOSED SESSION The Closed Session will begin at 6:30 P.M. At 7:30 P.M., the Board will adjourn the Special Meeting Closed Session to the conclusion of the Regular Board Meeting, and at the conclusion of the Regular Meeting, the Board may reconvene the Special Meeting Closed Session. 1. Conference with Legal Counsel - Existing Litigation Government Code Section 549569(a) A. MROSD v. Holmes, Holmes v. MROSD Case Number CV-755057 2. Public Employment - Government Code Section 54957 A. Public Employee Performance Evaluation - General Manager (7:30) ** ORAL COMMUNICATIONS -- Public SPECIAL ORDER OF THE DAY Staff Introduction -- Laurie Crook ADOPTION OF AGENDA *** ADOPTION OF CONSENT CALENDAR -- N. Hanko *** APPROVAL OF MINUTES April 10, 1995 (Consent Item) *** V,JRITTEN COMMUNICATIONS (Consent Item) 330 Distel Circle a Los Altos, CA 94022-1404 * Phone:415-691-1200 • FAX:415-691-0485 E-mail: mrosd@netcom.com 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 BOARD BUSINESS (7:45) 1. 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 -- M. de Beauvieres (7:55) 2. Proposed Creation of the Midpeninsula Regional Open Space District Financing Authority with Santa Clara County for the Purpose of Debt Issuance for Open Space Land Acquisition by the District -- C. Britton 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 (8:05) 3. Authorization to Purchase 80.76-Acre Wells Property for $50,000 and 80.76- Acre Cutten Property 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 Properties, Including Intention to Withhold Dedication of the Properties as Public Open Space, and Determination that Recommended Actions are Categorically Exempt Under CEQA -- C. Britton 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) 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 Cutten) (8:20) INFORMATIONAL REPORTS -- Directors and Staff REVISED CLAIMS (Consent Item) CLOSED SESSION - (Continued, if necessary) ADJOURNMENT *NOTE.- Times are estimated and items may appear earlier or later than listed. Agenda is subject to change of order. f Meeting 96-09 Page 3 ** TO ADDRESS THE BOARD: The Chair will invite public comment on agenda items at the time each item is considered by the Board of Directors. You may address the Board concerning other matters during oral communications. Each speaker will ordinarily be limited to 3 minutes. Alternately, you may comment to the Board by a written communication, which the Board appreciates. ***All items on the consent calendar shall be =roved without discussion by one motion. Board members, the General Manager. and members Qt the public may request that an item be removed from the Consent Calendar during consideration of the Consent Calendar, NOTICE OF PUBLIC MEETINGS There will be afield workshop meeting of the Use and Management Committee on Saturday, May 11 beginning at 9:30 A.M. at El Corte de Madera Creek Open Space Preserve to review portions of the proposed trail plan for the preserve. The meeting will convene at the Gordon Mill Trailhead at gate CM03. There will be a meeting of the Use and Management Committee on Wednesday, May IS beginning at 7:30 P.M. at the District office, 330 Distel Circle, Los Altos, to review El Corte de Madera Creek Open Space Preserve Trail Plan. There will be a meeting of the Legislative, Finance, and Public Affairs Committee on Thursday, May 16 beginning at 11:30 A.M. at the District office, 330 Distel Circle, Los Altos. Regional act MIDPENINSULA REGIONAL OPEN SPACE DISTRICT SPECIAL MEETINGS USE AND MANAGEMENT COMMITTEE 9:30 A.M. Betsy Crowder (Chair) Saturday, May 11, 1996 Nonette Hanko Gordon Mill Trailhead (Gate CM03) David Smernoff El Corte de Madera Creek Open Space Preserve (9:30) ROLL CALL AND INTRODUCTIONS ORAL COMMUNICATIONS - Public ADOPTION OF AGENDA i COMMITTEE BUSINESS 1. Review of Trails in Study Area 2 of the Draft Trail Plan for El Corte de Madera Creek Open Space Preserve (12:00) ADJOURNMENT 7:30 P.M. Betsy Crowder (Chair) Wednesday, May 15, 1996 Nonette Hanko 330 Distel Circle David Smernoff Los Altos, CA (7:30) ROLL CALL AND INTRODUCTIONS ORAL COMMUNICATIONS - Public ADOPTION OF AGENDA COMMITTEE BUSINESS 1. Draft Trail Plan - El Corte de Madera Creek Open Space Preserve (9:30) ADJOURNMENT Members of the public will have the opportunity to address the Committee on the proposed trail plan for the El Corte de Madera Creed Open Space Preserve. 330 Distel Circle * Los Altos, CA 94022-1404 # Phone:415-691-1200 « FAX:415-691-0485 # E-mail: ryirosd@rietcom.com netcom.com Board of Directors:Pete Siemens,Mary C.Davey,Teena Henshaw,David T.Smernoff,Nonette Hanko, Betsy Crowder,Wim de Wit Genera!Manager:L..Craig Britton Regional O en act 4 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Meeting 96-08 REGULAR MEETING BOARD OF DIRECTORS April 10, 1996 MINUTES I. ROLL CALL President Nonette Hanko called the meeting to order at 7:31 p.m. Members Present: Peter Siemens, David Smernoff, Mary Davey, Betsy Crowder, Nonette Hanko, and Teena Henshaw Members Absent: Wim de Wit Personnel Present: Craig Britton, Jean Fiddes, George Sipel, John Escobar, Malcolm Smith, Sue Schectman, and Mike Williams H. ORAL COMMUNICATIONS There were no oral communications. III. ADOPTION OF AGENDA Motion:, D. Smernoff moved that the Board adopt the agenda. P. Siemens seconded the motion. The motion passed 6 to 0. IV. ADOPTION OF CONSENT CALENDAR Motion: T. Henshaw moved that the Board adopt the Consent Calendar including the minutes of March 27, 1996 Regular and Special Meeting; responses to written communications from Theresa Martin, 105 W. Santa Inez Avenue, Hillsborough, Mr. John Blenio, via E-mail: <micals@best.com>, Mr. Ross Finlayson, 900 High School Way #2332, Mountain View, Mr. Eric Lennane, via E-mail: <Elennane@aol.com>, Mr. John J. Gardiner, via E-mail <johng@fusion.geoworks.com>, Mr. David Anthony, via E-mail: <danthon@msbassett.kla.com>, Ms. Linda Palmer, via E-mail: <romp@cycling.org>, Mr. Andy Carlson, via E-mail: <acarlson@officenetl.com>, and Mr. Tom Wallace, 173 Hollywood Avenue, Santa Cruz; and revised claims 96-07. P. Siemens seconded the motion. The motion passed 6 to 0. 330 Distel Circle . Los Altos,CA 94022-1404 - Phone:415-691-1200 - FAX:415-691-0485 - E-mail:mrosdanetcom.com e 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 96-08 Page 2 V. BOARD BUSINESS A. Agenda Item No. 1 - Continuance of Proposed Acceptance of an Open Space Easement as Consideration for Entering into an Qption Agreement with Jonathan and Roberta Partner and Consideration of Other Potential Proposals for the Sale of Surplus Lot - Thornewood Open Space Preserve - (Report R-96-42) C. Britton presented the staff report and said Mr. and Mrs. John Dean have made a bonafide offer of$600,000, an amount substantially higher than the current offer for the property, along with a $25,000 earnest money deposit. He said staff was evaluating the offer and requested the matter be continued to May 8, with May 1 being the cut-off date for anyone interested in purchasing the property to make an offer. Mr. Dean thanked the Board for allowing the 30 day continuance. In regard to proposed changes of the District§ notification policy, C. Britton said they will be considered at the Legislative, Finance, and Public Affairs Committee meeting on May 16 at 11:30 a.m. If the changes are approved at that meeting, the Board would consider them at their first meeting in June. N. Hanko asked Board members to send suggestions regarding the policy to the committee or staff prior to the meeting. Motion: P. Siemens moved that the Board continue agenda Item No. 1, Continuance of Proposed Acceptance of an Open Space Easement as ,Consideration for Entering into an Option Agreement with Jonathan and Roberta Parmer and Consideration of Other Potential Proposals for the Sale of Surplus Lot - Thornewood Open Space Preserve, to the meeting of May 8. D. Smernoff seconded the motion. The motion passed 6 to 0. B. Agenda Item No. 2 - Proposal to Close District's Administrative Office on December 23, 26. and 27 - (Report R-96-46) C. Britton presented the staff report and answered questions. He said employees will have the option of using vacation, personal leave, leave without pay, or working. In response to a question from B. Crowder, he said the closure did not apply to field staff. P. Siemens described the procedure used by his company. Motion: P. Siemens moved that the Board approve closing the District§ mini office n administrative o ce o December 23, 26 and 27 1996. B. Crowder seconded the motion. The motion passed. 6 to 0. C. Agenda Item No. 3 - Authorization for General Manager to Execute Extension of Consulting Services Agreement with George Sipel Associates Not to Exceed $18.900 for Organizational Management and Personnel Services - (RR=rt R-96-45) C. Britton presented staff§ recommendation. Meeting 96-08 Page 3 I I Motion: B. Crowder moved that the Board authorize the General Manager to execute the six-month Consulting Services Agreement Amendment with George Sipel Associates to provide organizational management and personnel services at the cost of$75 per hour not to exceed $4,200 per month for the months of April, May and June 1996 and not to exceed $2,100 per month for the months of July, August, and September 1996. P. Siemens seconded the motion. The motion passed 6 to 0. VI. INFORMATIONAL REPORTS N. Hanko announced that Stan Norton§ memorial service would be Thursday, April 11 at 2:00 p.m. She said M. Smith is drafting a letter from the Board which she will read as part of the service. M. Davey reported that she had heard Secretary of State Warren Christopher§ speech regarding the environment at Stanford. She said it was a recognition of what this area has done in the environmental field. B. Crowder said she had visited W. de Wit after he came home from the hospital. C. Britton distributed registration packets for the Special Park Districts Forum and said there is money in the budget for one board member to attend. It is being held in Illinois June 5-8. D. Woods will be attending the forum. C. Britton referred to a letter from Pat OBrien, General Manager of East Bay Regional Park District, asking if the District is interested in hosting the Special Districts Forum in 1998. C. Britton had informed him that the District would co-host. M. Smith and N. Hanko will attend the legislative breakfast for the Council of Cities in San Mateo County. C. Britton showed Board member photographs of the graffiti on the District building and said security will be increased. C. Britton said Director Smernoff and he had met with Supervisor Dianne McKenna and discussed matters of mutual interest, including Deer Hollow Farm. C. Britton met Monday with Pat Sanchez, Director of Parks for San Mateo County and will try to meet with him once a month to discuss issues that concern both agencies. B. Crowder said she had attended the March 30 retirement party for Bob Emmert, former Park Superintendent for San Mateo County. J. Escobar described the activities of the District staff in helping San Mateo County Sheriff$ Department find a missing woman in Russian Ridge Open Space Preserve and said they I Meeting 96-08 Page 4 probably saved her life. He said staff members Patrick Congdon and David Sanguinetti found the woman. G. Sipel said the Skyline facility bids had been received and the low bid is $20,000 lower than the first time the project was bid. The low bid will be brought to the Board for their consideration at their next meeting. He said construction should be underway shortly. G. Sipel said Board members have received the El Corte de Madera trail plan report prepared for the Use and Management Committee. A summary report will be sent to members of the public who are interested in the trails in that area and the full report is available upon request. N. Hanko said she will be temporarily replacing W. de Wit on the Use and Management Committee. J. Escobar announced that the Use and Management Committee meeting will be April 15 at 7:30 p.m. B. Crowder encouraged all Board members to attend. VII. ADJOURNMENT N. Hanko adjourned the meeting at 8:07 p.m. Roberta Wolfe Recording Secretary Claims No. 96-07 Meeting 96-08 Date: April 10, 1996 REVISED MIDPENINSULA REGIONAL OPEN SPACE DISTRICT # Amount Name Description 1 250.00 Aaron's Septic Tank Service Sanitation Services 2 42.56 Ace Fire Equipment & Service Co. Fire Extinguisher 3 219.82 Acme & Sons Sanitation Sanitation Services 4 148.84 ADT Security Systems, Inc. Alarm System Service 5 131.33 Alameda Newspaper Group Secretary Advertisement 6 167.56 Alpine Awards Incorporated Printing Service--VTP Vests 7 66.12 American Welding Supply Field Supplies 8 695.68 Arne' Sign & Decal Co., Inc. Truck Logos 9 82.69 A T & T Telephone Service 10 165.00 Baron Welding & Iron Works, Inc. Tractor Repairs 11 93.74 Barron Park Supply Co. Field Supplies 12 45.00 Carol Belew Docent Training 13 140.00 Diane Weste-Bourke Docent Training 14 32.50 Carleen Bruins Reimbursement--Professional Dues 15 95.00 Camino Medical Group Medical Services 16 30.66 Coastal Ford Tractor Tractor Parts 17 326.71 Annette Coleman Reimbursement--Field Supplies 18 2,455.00 Community Action Board, Inc./NREP Weed Abatement Crew 19 875.00 Concern:EAP Organizational Development 20 12.99 Crest Copies Inc. Copy Service 21 50.00 Mabel Crittenden Docent Training 22 205.00 Dennis Danielson Reimbursement--Film 23 130.00 Decatur Electronics, Inc. Radar Certification 24 100.00 Chris DiLeonardo Docent Training 25 120.00 East Bay Regional Park District Ira Bletz--Docent Training 26 299.89 Film To Frame Film Supplies 27 275,000.00 First American Title Right of First Refusal--Bach Property 28 3,000.00 *1 First Trust Washington 1988 Note Tender Agent Fee 29 25.00 Ken Fisher Docent Training 30 47.84 Foster Bros. Security Systems, Inc. Keys 31 150,431.20 Flinn, Gray & Hertench Insurance Brokers Vehicle Insurance 32 19.19 Gardenland Power Equipment Equipment Repair Parts 33 418.44 Goodyear Auto Service Center Tires and Balancing 34 23.48 G & K Services Shop Towel Service 35 638.00 Goldfus Enterprises Ink. Consulting Service--"This Land is Your Land" Event 36 219.00 Honeywell Inc. Burglar Alarm Service 37 2,676.79 HMC Group Architectural Services--Rancho Shop Building Upgrade 38 240.00 Institute of Computer Technology Registration--C. Solomon and C. Bruins 39 117.37 Kaiser Cement Corporation Drain Rock 40 602.81 Lanier Worldwide, Inc. Black Toner--Copy Machine 41 500.00 Judy Law Reimbursement--Grant House Artifacts 42 85.00 Los Altos Chamber of Commerce Annual Membership Dues *1 Urgent Check Issued March 29, 1996 Page 1 Claims No. 96-07 Meeting 96-08 Date:April 10, 1996 REVISED MIDPENINSULA REGIONAL OPEN SPACE DISTRICT # Amount Name Description 43 135.50 *2 City of Los Altos Volunteer Recognition Event Permit Fee 44 350.00 *3 City of Los Altos Deposit--Rental Facility for Volunteer Recognition Event 45 561.48 Los Altos Garbage Company Dumpster Service 46 71.50 Los Altos Town Crier Advertisement--Secretary 47 1,642.50 Town of Los Gatos Construction Management Services-- Skyline Field Office 48 79.69 Brian Malone Reimbursement--Field Supplies 49 116.00 Menlo Park Chamber of Commerce Annual Membership Dues 50 608.73 Micromedia, Inc. Microfiche Services 51 52.43 Minton's Lumber & Supply Field Supplies 52 127.79 Moffett Supply Company Restroom Supplies 53 100.00 Mountain View Chamber of Commerce Annual Membership Dues 54 76.95 Northern Energy Propane--Hosking Barn 55 191.80 *4 Oxford Tire Recycling Hicks Road Cleanup--Tire Recycling 56 116.03 Pacific Bell Telephone Service 57 3,966.65 Page & Turnbull Structural Upgrade Consulting Service for Pichetti Ranch Homestead 58 100.00 Palo Alto Chamber of Commerce Annual Membership Dues 59 40.00 Palo Alto Weekly Subscription Renewal 60 231.00 Palo Alto Weekly Advertisement--Secretary 61 314.79 Peninsula Blueprint, Inc. Photo Enlargements and Bluelines 62 963.29 Pine Cone Lumber Lumber 63 10,000.00 Popish Appraisal & Consulting Appraisal Services 64 3,000.00 Postage By Phone Postage 65 18.49 Precision Engravers, Inc. Name Tag Engraving 66 60.00 PriceCostco Annual Membership Fee 67 215.13 Rabbit Copiers Maintenance Field Office Copy Machines 68 29.90 Rancho Cobbler Boot Repair 69 2,175*72 Roy's Repair Service Vehicle Maintenance and Repair 70 10,197.47 Russ Enterprises Signs and Decals 71 158.00 San Carlos Chamber of Commerce Annual Membership Dues 72 1,666.72 Sandis Humber Jones Boundary Survey and Engineering Services--Skyline Ranger Office 73 251.89 David Sanguinetti Reimbursement--Field Supplies 74 508.50 San Francisco Newspaper Agency Advertisement--Secretary 75 1,205.60 San Jose Mercury News Legal Advertisement--Ordinance 96-01 and Skyline Ranger Office Construction 76 1,980.00 Sue Schectman March Statement 77 148.31 *5 Serendipity Land Yachts, LTD. Stegner Event Bus Deposit 78 125.23 Pete Siemens Reimbursement--Grant House Artifacts 79 4,875.00 George Sipel Associates Planning Department Consulting Service *2 Urgent Check Issued March 29, 1996 *3 Urgent Check Issued March 29, 1996 *4 Urgent Check Issued March 28, 1996 *5 Urgent Check Issued March 28, 1996 Page 2 Claims No. 96-07 Meeting 96-08 Date:April 10, 1996 REVISED MIDPENINSULA REGIONAL OPEN SPACE DISTRICT # Amount Name Description 79 101.45 Skyline County Water District Water Service 80 178.50 *6 The Slideprinters Prints 81 238.60 Malcolm Smith Reimbursement--Professional Dues and Vehicle Expense 82 711.22 Stevens Creek Quarry Baserock 83 1,600.00 Summit Springs Designs Tree Removal--Skyline Ridge Office 84 294.62 Summit Uniforms Uniform Expense 85 80.00 Sunnyvale Chamber of Commerce Annual Membership Dues 86 540.00 TAC/TEMPS Temporary Receptionist 87 533.98 Target Specialty Products Roundup Herbicide 88 187.45 Taylor Rental Compactor Rental--Thornewood 89 500.00 Two R.M. S Sales & Service Equipment Repair 90 1,000.00 True's Tractors Mindego Ranch Maintenance Agreement 91 850.00 Valley Title Company Alma College Preliminary Report 92 114.00 Michael Williams Vehicle Expense 93 300.00 Roberta Wolfe Recording Services 94 317.47 The Workingman's Emporium Uniform Expense 95 224.49 Yardbird Equipment Sales Equipment Parts and Repairs 96R 150.00 Capio Conference Registration--M. Smith 97R 392.92 Petty Cash Uniform Expense, Local Meeting Expense, Field and Office Supplies, Docent and Volunteer Expenses, Delivery Expense, Seminar Registration, and Private Total 495,802.00 Vehicle Expense *6 Urgent Check Issued March 28, 1996 Page 3 i-)PR-14-9G SLIN 11 :10 DRAGuN DESIGNS 8513831 P. 0.1 RESPONSE ACTION PROPOSED IT STATT Soard president AeknovledSe/Respond Director Aeknovlad Re/Respood -r Staff Atknovled Se/Respood Gj j] UBARO j ME(r Draft Response Attached 6.T,(lt V�.TT LJ Staff to b• Directed to prepare Draft 3Jt'Jr Ala 7).as �OAd Rupons• for Doard Coaaideratiea per J CON 140d�a Rotiv Snard Direetire(ey A.O. Box 62"3 No Response Necessary Wookk, Gala nta 94062 FWAX (05) 8513831 13 April 1996 Board of Directors Midpeninsula Regional Open Space District 330 Distel Circle Los Altos, California 94022 Dear Members of the Board: First of all, I want to thank you for your communications regarding the property you own across the road from my home. It is gratifying to see such complete and thorough response to a neighborhood request. Although I arrived too late for this agenda item at the meeting held April 10, 19960 I was informed by John and Sue Dean of the offer they made to your agency for the purchase of the property in question. After several conservations with them, I am confident the Deans, if they develop that property, will do so in a way which imposes the least impact on the environment and upon, the immediate neighbors. That this be a sensitive development is extremely important to sae., as the property is in mar direct view. It would be extremely unpleasant for me, and I believe it would adversly affect the value of my property, if I were to see a large clearing, huge house, and large numbers of outside lights interrupt the lane of sight to the Bay and hills. I are confident that with the Deans in charge, this will not happen. Even though you are not willing to preserve this property as open space, it seems to me that sensitive development should be in keeping with your general philosophy. Unfortunately, I will be out of town for the next meeting. Therefore, I urge you to accept John and Sues Dean's offer to purchase the property in question. Sincerely, Regional Open Space MIDPENINSULA REGIONAL OPEN SPACE DISTRICT DRAFT RESPONSE PREPARED BY STAFF April 25, 1996 FOR BOARD CONSIDERATION Ms. Gail LeBaron Reed P. O. Box 620683 Woodside, California 94062 Dear Ms. Reed: The District's Board of Directors reviewed your April 13, 1996 letter regarding the proposed sale of the Thornewood Open Space Preserve surplus property to John and Sue Dean at our Regular Meeting last night. District staff is continuing to work with the Deans, and the proposed sale will be presented to the Board of Directors for consideration at the May 8, 1996 Regular Meeting. A copy of your letter has been forwarded to the Deans so that they are aware of your desires regarding sensitive development of the property that has the least impact on the environment and the immediate neighbors. For your information, as a result of the concerns you and other neighbors expressed at the Board's March 13 meeting regarding the short notification you received on the proposed sale of this surplus property, the Board's Legislative, Finance, and Public Affairs Committee will be recommending revisions in the District's Public Notification Policies. Thank you for relaying your thoughts to the Board on the potential sale of this surplus District property and for attending the Board's March 13 meeting. Sincerely, Nonette Hanko, President Board of Directors cc: MROSD Board of Directors 330 Distel Circle • Los Altos,CA 94022-1404 • Phone:415-691-1200 • FAX:415-691-0485 • E-mail:mrosd@netcom.com Board of Directors:Pete Siemens,Mary C.Davey,Teena Henshaw,David T.Smernoff,Nonette Hanko,Betsy Crowder,Wim de Wit Genera/Manager:L.Craig Britton ''1?ON31 ACTION PROPOSRO IT STAFF ,, rd prostdoet Ackaovl*d R*/Roepend Date: Mon, 15 Apr 1996 23:17:4� -070t Director Ackaoviedq/Rea pond To: mrosd@netcom.com Staff AckaevlodRe/Respend From: "Andrew C. Carlson" <acarison@officenetl.com> X. Draft Reopens* Attached Subject: E1 Corte de Madera Trail Plan a.ff to k. Directed to prepare Draft Cc: mtn-bike@warp9.ebay.sun.com Rsspens. fei Board Consid*tatioa per Reazd Disoeti+s(o) No Reopens* Necessary MROSD Representatives: I appreciated the opportunity to attend the open hearing tonight, 4/15/96, to discuss the El Corte de Madera Trail Plan. I believe the meeting was very productive for all present. I am somewhat concerned that 1.5 hours of public comment were summarized in the last few minutes of the meeting in the interest of making a decision. I noticed the committee members taking a lot of notes during the public comments and I feel these should be reflected upon and organized before a final presentation is made to the board. The amendments suggested were good ones, including: 1. Addition of a pre-amble discussing the nature of the new trails to be created (preserving the rustic nature of the trails) 2. Re-evaluation of Study Area 2 possibly considering retaining some of the 70-series and 90-series trails (including a site visit by the committee) I Proceeding with construction of"A" trails in Study Area 1 4. Accelerating Leaf Trail project to involve mountain bikers in trail maintenance Some other very good suggestions were not discussed as amendments mainly due to the desire to conclude a meeting that was already running late. One that I suggested was adoption of a trail rotation and seasonal closure policy which would allow trails to rotate from multi-use to hiking-only on an annual or semi-annual basis. This, if combined with selected seasonal closures, would help preserve trails while still allowing all users to enjoy them at certain periods of time. Thank you once again for the opportunity to attend the meeting. I appreciate the work that MROSD is doing to keep these areas accessible and open to the public. I also appreciate your willingness to listen to our concerns. Sincerely, Andy Carlson Los Gatos, CA Regional Open Spaeip, MIDPENINSULA REGIONAL OPEN SPACE DISTRICT DRAFT RESPONSE PREPARED BY STAFF April 25, 1996 FOR BOARD CONSIDERATION I Andy Carlson E-mail: <acarlson@officenetl.com> I The District's Board of Directors reviewed your recent letter concerning the El Corte de Madera Creek Trail Plan and the April 15 Use and Management Committee meeting at their Regular Meeting last night. As you're aware, an on-site workshop with the Use and Management Committee is scheduled for Saturday, May 11, 1996 at 9:30 A.M. at the Gordon Mill Trailhead of the preserve to review the trails of Study Area 2. Following the workshop, there will be a Use and Management Committee meeting on Wednesday, May 15, 1996 at 7:30 P.M. at the District j office to determine any Committee revisions to the trail plan prior to presentation to the Board of Directors. Consideration of the trail plan by the Board of Directors is tentatively scheduled for the May 22, 1996 Regular Meeting. You should call the District office after May 15 to confirm that this item has been included on the May 22 meeting agenda. I hope you will be able to attend these meetings. In addition, your letter will be considered by staff and forwarded to the Use and Management Committee for their consideration. If you would like your name to be added to our mailing list for this project, please provide District staff with your street mailing address. Sincerely, Nonette Hanko, President Board of Directors cc: MROSD Board of Directors 330 Distel Circle • Los Altos,CA 94022-1404 • Phone:415-691-1200 • FAX:415-691-0485 • E-mail:mrosd®netcom.com OD 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 APONSR ACTION P10►0$90 IT STA/P From: nigel.ray@ALZA.COM ►r.aid.at AakoevladRe/Ras►ead Director AekaevladR•fltupeed Date: Fri, 12 Apr 1996 15:02:42 -0700 Staff Aakaovled Sa/Rospood Message-ID: <16ed47c0@ALZA.COM> Draft Respoos• Attacked Subject: Letter to El Corte de Madera Use and Management Committee Staff to ke Dirette. to Prapara Draft Reapoo se for Deard Coasiderattes pat To: mrosd Cl,nCtCOm.00117, nigel.ray@ALZA.COM R°•°d °it'°ti°•c'' No Raspoase Necessary ''....... El Corte de Madera Use and Management Committee MPROSD 330 Distel Circle Los Altos, CA 94022 Dear Committee Members, Unfortunately, I can't attend the 4/15 meeting on the trail plan for El Corte de Madera(ECDM), but I wanted to provide my comments after reviewing a written version of the plan and the associated maps. It is my feeling that the proposed plan would destroy the open space experience currently offered at ECDM. Moreover, it would do this at great cost to MPROSD and to the taxpayer. (I note that a budget for trail improvement costs is not included in the plan, nor has any consideration been given to how else these funds might be spent). The impact of the proposed trail building and trail closures would likely exceed the impact of the current system of"designated" and "unauthorized" trails. Moreover, the current "designated" and "unauthorized" trails offer a unique open space experience to a diverse user group. These experiences are not offered by any other preserve in the MPROSD system. MPROSD tax dollars are better spent acquiring additional open space properties to extend and connect the current preserves. The plan states that "the trail characteristics which currently restrict use by the hiking public are the very things that the intermediate to advanced mountain bike community thrives upon. In the staffs opinion, the existing trail system (including both designated and unauthorized trails)primarily serves a small percentage of the bicycling community." This statement is false and should be struck from the draft plan. Over the last several years I have led numerous organized mountain bike rides and skill building clinics in ECDM which have included several hundred riders of all skill levels. In addition, the people which I have met while riding and hiking in ECDM reflect a similar diversity of skill levels. Thus, riders of all abilities can enjoy ECDM using the current system of "designated" and "unauthorized" trails. As a hiker, I find the "unauthorized" trails in ECDM an enjoyable challenge. I certainly don't feel that the topography, slope, or trail surface restrict my hiking use on these trails. (Indeed, many of the "unauthorized" trails offer an easier and more appealing hike than the very steep hike up the bottom 0.8 mile of Timberview,.a "designated" trail). The relative paucity of hikers at ECDM as cited on Page 3 of the report, is not a consequence of restrictive trail conditions, but a reflection of the fact that hikers have access to a much greater amount of trail mileage in the MPROSD system and other preserves in the Bay Area. In contrast, the growing mountain cycling community has relatively few opportunities for singletrack riding, hence is concentrated at ECDM. (Parenthetically, I would like to point out that this geographical displacement has served District purposes in minimizing user conflicts within the MPROSD system.) In contrast to the image presented in the plan, I feel the "unauthorized" trails in EC,,..ivl offer a rugged open space experience which is consistent with the MPROSD charter. Open space is not meant to be manicured, polished, and sanitized for our protection. Instead, the allure of open space is that it is undeveloped. This means we may encounter rocks, logs, steep grades or other obstacles in the trail which need to be negotiated (and it may only be possible to cross some of these obstacles on foot) and we may become lost or disoriented. I submit to you that those challenges are the heartbeat of the open space experience: the adventure and challenge of why we explore wild places either on foot, by horse, or bicycle. The proposed plan to develop ECDM, sanitize and sign its trails, would largely destroy the adventure and challenge of this unique preserve. By closing some of the best and most popular trails in the preserve (i.e., trails number 3, 17, 18, 70, 71, 72, 79, 77,40, 97, 98, 99, 124, 126, 119, 118, 114, 132, 135, 129, 141, and 146 on the study area maps), the proposed plan would create a costly enforcement problem for MPROSD and increase impact on the preserve. Either the District would have to massively destroy "unauthorized" trails using the environmentally destructive and costly measures used to realign the "demonstration trail" (a.k.a., the Manzanita trail) or be faced with a situation where there are two defacto trail systems at ECDM. Either of these options would increase impact on the preserve. Also, the proposed plan would concentrate impact on a lesser number of trails and encourage user conflicts due to higher speeds. A less detailed version of this draft plan was presented at the 1/25/96 Use and Management Committee meeting and met with resounding public opposition. I would like to know why the District's planning staff have continued to proceed with development of a plan which is contrary to the public interest. As indicated in the draft plan, 80%of preserve visitors are cyclists. I ask the Committee to remember that cyclists are a large, rapidly growing group of MPROSD users who are working hard to support open space. I ask the Use and Management Committee to scrap the draft plan and instead direct the District's planning staff to: 1. Address the parking problems at Skeggs Point and at the Methuselah and Gordon Mill trailheads along Skyline. 2. Attempt to purchase or secure a long-term lease on the property along Corte Madera Creek so that the current alignment of trail #3 can be maintained. The existing "unauthorized" trail system should be left alone. If the committee feels it necessary to mitigate site-specific erosion problems, minor modifications to existing authorized and unauthorized could be made by hand at minimal cost. I am sure that the cycling community would gladly lend a hand in this effort. Hopefully, this will allow the bulk of the Districts tax dollars and manpower to be concentrated on acquiring additional open space lands to connect and extend the current MPROSD system. Thank you for your consideration of this matter, Nigel Ray 865 Mesa Ave Palo Alto, CA 94306 (415) 948-6839 (415) 962-4255 I Regional Open Spae, �1. MIDPENINSULA REGIONAL,OPEN SPACE DISTRICT DRAFT RESPONSE April 25, 1996 PREPARED BY STAFF FOR BOARD CONSIDERATION Nigel Ray 865 Mesa Avenue Palo Alto, CA 94306 Dear Mr. Ray: The District's Board of Directors reviewed your recent letter concerning trail use at the El Corte de Madera Creek Open Space Preserve at their Regular Meeting last night. The Use and Management Committee considered the draft trail plan for El Corte de Madera Creek Open Space Preserve at their meetings of January 25, and April 15, 1996. The plan was accepted in concept by the Committee at the April 15 meeting. An on-site workshop with the Use and Management Committee is scheduled for Saturday, May 11, 1996 at 9:30 A.M. at the Gordon Mill Trailhead of the preserve to review the trails of Study Area 2. Following the workshop, there will be a Use and Management Committee meeting on Wednesday, May 15, 1996 at 7:30 P.M. at the District office to determine any Committee revisions to the trail plan prior to presentation to the Board of Directors. Consideration of the trail plan by the Board of Directors is tentatively scheduled for the May 22, 1996 Regular Meeting. You should call the District office after May 15 to confirm that this item has been included on the May 22 meeting agenda. I hope you will be able to attend these meetings. In addition, your letter will be considered by staff and forwarded to the Use and Management Committee for their consideration. Sincerely, Nonette Hanko, President Board of Directors cc: MROSD Board of Directors 330 Distel Circle • Los Altos,CA 94022-1404 • Phone:415-691-1200 • FAX:415-691-0485 • E-mail:mrosd®netcom.com 41) 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 b ACTION PROPOSLD IT STApp From: DAlberga@aol.com resideat Acknowledge/Respead Date: Thu, 11 Apr 1996 19:42:03 -0400 Director Acknowledge/Respead To: mrosd@netcom.com Gaff Acknewled St/Respond Subject: ECDM Land Use Draft Reapoa$* Attacked Staff to be Directed to prepare Draft Respees♦ for Board Consideration par Beard Direecive(s) El Corte de Madera Use & Management Committee No Response Necessary Midpeninsula Regional Open Space District 330 Distel Circle Los Altos, CA 94022 Dear committee, My wife Christine Cernosia and I live in Atherton and mountain bike in ECDM preserve almost every week. In fact we believe it offers some of the best riding in the bay area. In my opinion the only other trail system that comes close to offering the same experience is Wilder Ranch. Specifically ECDM's appeal is its unique blend of riding terrain. As custodians of the park I would think that you would value this unique characteristic, and develop a plan that enhances rather than does away with it. While I recognize the need to insure trail stability and environmentally sound planning, "Sanitizing" the trail system of all of the more difficult terrain is going to have the secondary effect of alienating perhaps your largest and most loyal user group, bikers. I know that planning for the future of the park is a difficult and demanding task given the multiuse issues and the various interest groups involved. I only ask that in doing so, you consider the great number of mountain bikers that love ECDM for what it is today, and see it as the jewel of bay area open space system. Sincerely Dave Alberga 25 DeBell Drive Atherton CA 94027 Regional Open Spac s MIDPENINSULA REGIONAL OPEN SPACE DISTRICT DRAFT RESPONSE PREPARED BY STAFF April 25, 1996 FOR BOARD CONSIDERATION Dave Alberga 25 DeBell Drive Atherton, CA 94027 Dear Mr. Alberga: The District's Board of Directors reviewed your recent letter concerning trail use at the El Corte de Madera Creek Open,Space Preserve at their Regular Meeting last night. The Use and Management Committee considered the draft trail plan for El Corte de Madera Creek Open Space Preserve at their meetings of January 25, and April 15, 1996. The plan was accepted in concept by the Committee at the April 15 meeting. An on-site workshop with the Use and Management Committee is`scheduled for Saturday, May 11, 1996 at 9:30 A.M. at the Gordon Mill Trailhead of the preserve to review the trails of Study Area 2. Following the workshop, there will be a Use and Management Committee meeting on Wednesday, May 15, 1996 at 7:30 P.M. at the District office to determine any Committee revisions to the trail plan prior to presentation to the Board of Directors. Consideration of the trail plan by the Board of Directors is tentatively scheduled for the May 22, 1996 Regular Meeting. You should call the District office after May 15 to confirm that this item has been included on the May 22 meeting agenda. I hope you will be able to attend these meetings. In addition, your letter will be considered by staff and forwarded to the Use and Management Committee for their consideration. Sincerely, Nonette Hanko, President Board of Directors cc: MROSD Board of Directors 330 Distel Circle • Los Altos,CA 94022-1404 • Phone:415-691-1200 • FAX:415-691-0485 • E-mail:mrosd®netcom.com Board of Directors:Pete Siemens,Mary C.Davey,Teena Henshaw,David T.Smernoff,Nonette Hanko,Betsy Crowder,Wim de Wit Genera!Manager:L.Craig Britton 'NEC ACTION P10POSRD BY STAB . pre°td•at ACkaov1e414/Reapead From: SillEfilly@aol.com Director ACkaevledRe/Reepead Date: Fri, 12 Apr 1996 15:13:49 -0400 Staff Aekaevledge/bepead To: mrosd@netcom.com Draft Rupeaee Attaekod Subject: ECdM trail use Committee aff ta k. Dtratad to pr.per. Dteft Reepease for Reerd Coeetdexatlea per Reerd DireCtiw(e) April 10, 1996 No Re°posse Necessary El Corte de Madera Use& Management Committee Midpeninsula Regional Open Space District 330 Distel Circle Los Altos, CA 94022 Dear Committee Members, I am writing in response to your planned trail revisions in El Corte de Madera as a true multiple use visitor who has been enjoying the open spaces in this area for over 20 years, in many different ways. I have owned and trained numerous horses as a professional, and ridden them extensively in most of the open space preserves on the peninsula. My dog and I hike regularly on Windy Hill and Fremont Older, and I hike alone a lot, especially enjoying the rainy season when the ground is too soft for any other use and no one else is around. I also recently got a mountain bike which I enjoy riding in the various preserves. I spend about fifteen hours total per week in MROSD lands. I have been riding my wheeled horse for about a year, and have put many miles on the numerous milder trails in the various open spaces. Because I felt it was time to start looking for some more challenging trails, I went to ECdM on Easter weekend. I expected it to be chaotic and intimidating, given the stories I had heard about how popular it was with more advanced riders. Imagine my surprise when I found the most lovely but tricky trails and a quiet and serene environment. I was delighted to finally have advanced trails to ride on! I followed several steep and rocky or slippery tracks down a canyon and discovered a large log crossing a creek. The spot was beautiful. I leaned my bike against the log and sat there for about 30 minutes, looking at the mossy bank and inspecting the life there. I then carried my bike across. The rest of my ride was just as wonderful. I passed under fallen trees, rode around slides and over small logs, through a wrecked car(how fun!) and struggled to get my legs to push my bike back up the hill - what a workout! I passed several groups of mountain bikers (about 25 riders) on the bottom trails, and a few hikers (about 5) up near the top, and all were courteous and friendly. I had no guide but a borrowed map. I did not crash or get lost. Even though I have only been riding about a year, I knew I wanted to return ASAP. I want to strongly encourage you to leave the trails alone as much as possible. MROSD has so many varied ecosystems based on the diverse topography of our lands, and the terrain in El Corte de Madera is clearly unique. As an experienced horseperson, I can say that much of it is too steep, too wet, or too loose and rocky for all but the most hardy and athletic horses, and the other preserves are much better suited for horses anyway. I saw no horses in ECdM, nor any recent hoofprints, which seems to indicate to me that other equestrians agree. I am NOT suggesting that they be restricted from the preserve, only pointing out that they have good reasons to choose to ride elsewhere where nature provides a gentler surface for equine legs. Even if all the trails were cleared for horse traffic, I know very few horses fit enough to consider riding there. Many dayhikers often stay on trails that are close to trailheads; they hike out for an hour or so and then turn back after a snack or a peaceful break. Many of the trails I've hiked on in other preserves are either off limits to bikes, or smooth and wide enough to make it possible to share the trail with other users easily - and they are just as beautiful. The trails near Skyline are fine as they are for that purpose. Rugged and steep trails are not a problem for more adventurous hikers, after all, I carried my bike up quite a few of them. We really do not need gentle trails to hike in EUM because that experience is available nearby. I cannot imagine having such trails built in the rest of El Corte de Madera. The land simply doesn't invite it, and mother nature seems to suggest that wide flat trails don't belong there, given how the logging roads are reverting back to their natural state. The current condition of the trails I saw in the lower part of the preserve is evidence to me that mountain biking is not very damaging to the soils there; many of the tracks are narrow and in some cases nearly invisible. Perhaps that is due to the fact that half-ton horses don't tread there. In the few places where I did see erosion, it looks like a few water bars will help fix the problem - and certainly for the bikers who use the trails, perfection is neither needed nor in any way desired. It is exactly what I was hoping to find in terms of challenging terrain, and there simply aren't trails this technical anywhere else. If I want smooth trails, I can go to Russian Ridge or the other preserves where they abound. Please don't try to stamp the same look on all MROSD lands. The terrain in El Corte de Madera demands that you try to find a solution that fits both the desires of the users (who appear to be mostly experienced mountain bikers in search of a challenge) and the land we are given by nature. The reason mountain bikers love EUM is because it is perfect the way it is. The reason horses go elsewhere is because it's too intense for most. The reasons hikers stay near the top is because they choose to. Please consider who uses the preserve, and for what reasons. I encourage you to let the logging roads slowly disappear into the forest, and allow the trails to wind around the obstacles that fall. Sincerely, Patty Ciesla 4050 Amaranta Avenue, Palo Alto (415) 855-9667 SillEfilly@aol.com aol.com Regional Open SpacE 1 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT DRAFT RESPONSE April 25, 1996 PREPARED BY STAFF FOR BOARD CONSIDERATION Patty Ciesla 4050 Amaranta Avenue Palo Alto, CA 94306 Dear Ms. Ciesla: The District's Board of Directors reviewed your recent letter concerning trail use at the El Corte de Madera Creek Open Space Preserve at their Regular Meeting last night. The Use and Management Committee considered the draft trail plan for El Corte de Madera Creek Open Space Preserve at their meetings of January 25, and April 15, 1996. The plan was accepted in concept by the Committee at the April 15 meeting. An on-site workshop with the Use and Management Committee is scheduled for Saturday, May 11, 1996 at 9:30 A.M. at the Gordon Mill Trailhead of the preserve to review the trails of Study Area 2. Following the workshop, there will be a Use and Management Committee meeting on Wednesday, May 15, 1996 at 7:30 P.M. at the District office to determine any Committee revisions to the trail plan prior to presentation to the Board of Directors. Consideration of the trail plan by the Board of Directors is tentatively scheduled for the May 22, 1996 Regular Meeting. You should call the District office after May 15 to confirm that this item has been included on the May 22 meeting agenda. I hope you will be able to attend these meetings. In addition, your letter will be considered by staff and forwarded to the Use and Management Committee for their consideration. Sincerely, Nonette Hanko, President Board of Directors cc: MROSD Board of Directors 330 Distel Circle • Los Altos,CA 94022-1404 • Phone:415-691-1200 • FAX:415-691-0485 • E-mail:mrosd®netcom.com 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 •ONSR ACTION pROpOM IT STAfp d presideac AcknevledSo/Respead Date: Fri, 12 Apr 199E 15:03:31 -0700 (PL A) Director ArknovledRo/Respead From: Glenn Wegner<genn@ENDEAVOUR.EXAR.COM> Su[[ Ackaevlodle/Rospoed To: mrosd@netcom.corn Draft Response Attacked Subject: Re: MROSD Workshop on ECDM Scheduled ear[ to k. Directed to prepare Draft Rupossa [or board Ceasideraties par Roard Directiva(s) we Response Necessary April 12, 1996 El Corte de Madera Use and Management Committee Midpeninsula Regional Open Space District Dear Committee Members, El Corte de Madera Open Space is a very special place for myself and other intermediate and advanced cyclists. I stongly urge you to leave the preserve alone! It is special to many of us because of its beauty and remoteness and I fear that your proposed changes to it will only ruin the rugged character of this preserve as well as the experiences that can be had there. Is it really necessary to sanitize the trails so anyone can access the area with no fear of stubbing a toe on a rock or tree root, or exerting oneself climbing a 40% grade?There are more than enough areas sanitized to this extent already! I also look at other areas that have been ruined through "trail management". The most glaring example is what used to be "Old Overgrown" in Sierra Azul. The old trail had character! It was a very nice and fun trail to ride. Now, it is only good for an adrenalin rush as one gets into an (unwanted) sideways slide on the extremely loose dirt and rock road. It is now more appropriate for a downhill race than someplace to enjoy the outdoors! Is the next step in "trail management" to pave it? I would also like to point out how one section of the Toyon trail in Fremont Older OSP was rerouted around some tree roots and straightened out and as a result, made far MORE dangerous for all users. This was pointed out at the on-site workshop a year or two ago by hikers, equestrians and cyclists present. Ms. Crowder was present at this workshop and should remember these comments from ALL of the trail users present. A third area that, in my opinion, has been overly sanitized is the Saratoga Gap trail. There used to be one short, rocky section that would slow cyclists down and even cause some to walk. Those of us that had the skill to ride it found it enjoyable. Now, thanks to quite a bit of gravel being hauled in, it is just another section of trail capable of being ridden at high speed! The NATURAL speed limiting obstacles have been covered up, increasing the likelyhood of conflicts! Is this sound trail management? There seems to be a general acknowledgement by land use managers that speeding cyclists may be a problem for other trail users. So what happens?Trails are sanitized, removing all forms of naturally occurring speed limiting obstacles, encouraging us to ride faster. Bicycles are then kicked off the relatively lower speed single track trails and are limited to road use, which just further promotes high speed riding! Then, artificial speed limits are applied and enforced alienating everyone! Is 15 mph really appropriate for a very tight turn on a narrow trail? Is a RADAR enforced 15 mph speed limit really necessary on a quarter mile straight section of 10 foot wide, downhill road with excellent visibility and no other users present? Some people are also concerned about the effects of bicycle use on the trout population in El Corte de Madera. Are any scientific studies planned that would actually compare the water-borne silt caused by a bike crossing a creek with the silt dumped in the creeks by Mother Nature during winter? I have seen the creeks running fast and dirty in winter, carrying far more silt than cyclists can kick up! El Corte de Madera has a very diverse history. It recovered from the logging without any type of "management". It recovered from the motorcycle use, again without any type of"management". It will also recover from the bicycle use as well. To say that the area "...now resembles more of an off-road vehicle park than an open space preserve" is ridiculous! Please, for its sake and for the users sake, LEAVE IT ALONE! Thank you for your time, Glenn Wegner 10200 Hillcrest Rd. Cupertino, CA 95014 Regional Open SpacE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT DRAFT RESPONSE April 25, 1996 PREPARED BY STAFF j FOR BOARD CONSIDERATION Glenn Wegner 10200 Hillcrest Road Cupertino, CA 95014 Dear Mr. Wegner: The District's Board of Directors reviewed your recent.letter concerning trail use at the El Corte de Madera Creek Open Space Preserve at their Regular Meeting last night. The Use and Management Committee considered the draft trail plan for El Corte de Madera ,Creek Open Space Preserve at their meetings of January 25, and April 15, 1996. The plan was accepted in concept by the Committee at the April 15 meeting. An on-site workshop with the Use and Management Committee is scheduled for Saturday, May 11, 1996 at 9:30 A.M. at the Gordon Mill Trailhead of the preserve to review the trails of Study Area 2. Following the workshop, there will be a Use and Management Committee meeting on Wednesday, May 15, 1996 at 7:30 P.M. at the District office to determine any Committee revisions to the trail plan prior to presentation to the Board of Directors. Consideration of the trail plan by the Board of Directors is tentatively scheduled for the May 22, 1996 Regular Meeting. You should call the District office after May 15 to confirm that this item has been included on the May 22 meeting agenda. I hope you will be able to attend these meetings. In addition, your letter will be considered by staff and forwarded to the Use and Management Committee for their consideration. Sincerely, Nonette Hanko, President Board of Directors cc: MROSD Board of Directors 330 Distel Circle • Los Altos,CA 94022-1404 • Phone:415-691-1200 • FAX:415-691-0485 • E-mail:mrosd@netcom.com Board of Directors:Pete Siemens,Mary C.Davey,Teena Henshaw,David T.Smemoff,Nonette Hanko,Betsy Crowder,Wim de Wit General Manager:L.Craig Britton -•ORSC ACTION TROPOS CD 1T 3MT Date: Fri, 12 Apr 1996 08:52:22 -0700 1 President Aeknovladl&/Respond Oirettor Atknovled Ro/Respond From: tlw@tgv.com (Tom Wallace) State AtknovledSo/Respond To: mrosd@neteom.eom Draft Response Attached cc: Wallace@tgv.eom State to be Directed to Prepare Draft Respoese (or ioard Conaideraclen per o Subject: April 15 meeting comments s Dir.ttiv.(., No Response Necessary Board of Directors El Corte de Madera Open Space Preserve (330 Distel Circle, Los Altos CA 12 April, 1996 Dear Board of Directors, Although I will not be able to attend the meeting on April 15, I wish to send my comments along. I am 38 years old, a nature lover first and a cyclist second. Every week my wife and I enjoy hiking at various spots in the Bay area, and every week I enjoy cycling at various spots in the Bay area. Both are great ways to experience nature and provide balance to the high tech career I am in. It is very important to me, as a cyclist, that there are wild areas available. I am distressed at the trail plan that turns rugged, outdoorsy, fun trails into froo-froo trails. Narrow, windy, challenging trails are a pat of the mountain bike experience. If we wanted smooth, straight trails we would be road cyclists. El Corte de Madera Open Space Preserve is a special place. There are not many like it in the Bay area. Please don't ruin it for us. Please leave the maximum amount of trails in a undeveloped state. Do the right thing. Leave it unique and wild. Best regards, Tom Wallace 173 Hollywood Ave Santa Cruz CA 95060 Regional Open Spaces MIDPENINSULA REGIONAL OPEN SPACE DISTRICT DRAFT RESPONSE PREPARED BY STAFF April 25, 1996 FOR BOARD CONSIDERATION Tom Wallace 173 Hollywood Avenue Santa Cruz, CA 95060 Dear Mr. Wallace: The District's Board of Directors reviewed your recent letter concerning trail use at the El Corte de Madera Creek Open Space Preserve at their Regular Meeting last night. The Use and Management Committee considered the draft trail plan for El Corte de Madera Creek Open Space Preserve at their meetings of January 25, and April 15, 1996. The plan was accepted in concept by the Committee at the April 15 meeting. An on-site workshop with the Use and Management Committee is scheduled for Saturday, May 11, 1996 at 9:30 A.M. at the Gordon Mill Trailhead of the preserve to review the trails of Study Area 2. Following the workshop, there will be a Use and Management Committee meeting on Wednesday, May 15, 1996 at 7:30 P.M. at the District office to determine any Committee revisions to the trail plan prior to presentation to the Board of Directors. Consideration of the trail plan by the Board of Directors is tentatively scheduled for the May 22, 1996 Regular Meeting. You should call the District office after May 15 to confirm that this item has been included on the May 22 meeting agenda. I hope you will be able to attend these meetings. In addition, your letter will be considered by staff and forwarded to the Use and Management Committee for their consideration. Sincerely, Nonette Hanko, President Board of Directors cc: MROSD Board of Directors 330 Distel Circle • Los Altos,CA 94022-1404 . Phone:415-691-1200 • FAX:415-691-0485 • E-mail:mrosd®netcom.com is 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 Regional Open Space MIDPENINSULA REGIONAL G ONAL OPEN SPAC E DISTRICT (Note: This response will be used for the following seven E-mail letters) April 25, 1996 DRAFT RESPONSE PREPARED BY STAFF FOR BOARD CONSIDERATION The District's Board of Directors reviewed your recent letter concerning trail use at the El Corte de Madera Creek Open Space Preserve at their Regular Meeting last night. The Use and Management Committee considered the draft trail plan for El Corte de Madera Creek Open Space Preserve at their meetings of January 25, and April 15, 1996. The plan was accepted in concept by the Committee at the April 15 meeting. An on-site workshop with the Use and Management Committee is scheduled for Saturday, May 11, 1996 at 9:30 A.M. at the Gordon Mill Trailhead of the preserve to review the trails of Study Area 2. Following the workshop, there will be a Use and Management Committee meeting on Wednesday, May 15, 1996 at 7:30 P.M. at the District office to determine any Committee revisions to the trail plan prior to presentation to the Board of Directors. Consideration of the trail plan by the Board of Directors is tentatively scheduled for the May 22, 1996 Regular Meeting. You should call the District office after May 15 to confirm that this item has been included on the May 22 meeting agenda. I hope you will be able to attend these meetings. In addition, your letter will be considered by staff and forwarded to the Use and Management Committee for their consideration. If you would like your name to be added to our mailing list for this project, please provide District staff with your street mailing address. Sincerely, Nonette Hanko, President Board of Directors cc: MROSD Board of Directors 330 Distel Circle • Los Altos,CA 94022-1404 • Phone:415-691-1200 • FAX:415-691-0485 • E-mail:mrosd®netcom.com 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 ltl• .9 ACTION plOPOSCD If STAFF t osideat Ackaovlad/o/t*Sposd Director Aakaovledp/lespood Date: Mon, 08 Apr 96 08:48:19 PST Staff Atkaovledp/lespood To: mrosd@netcom.com Draft t*Spouse Attacked Subject: El Corte de Madera St.ff to k. Directed to prepare Draft t*Spoa*S for loard Coasidorstioa per /Deed DicacKw(s) From: scott.hewlett@Harris.COM No response Necessary To the District: I recently heard that there were discussions proceeding into another flattening and roto-tilling change to beautiful trails in the Bay Area, specifically the above mentioned preserve area. Rather than spout off without the facts I would ask that you please forward any source material on the discussions and timing of meetings if they are in a public forum. My feeling is that we have to many sidewalks and paved trails let alone large dirt roads. Since I have been in the Bay area it seems that there is an on going plot to create a "park" atmosphere for the masses of many nice hiking,biking, and pic nicking. I would ask that the raw natural beauty of this area be left open as it now stands. Please do not look at how we can limit the many uses that people now enjoy within minutes of our many neighborhoods. I for one have enjoyed a variety of activities in the preserve and do not feel that any one group should gain full rights to a Public land area. Thank you for forwarding any data you might have and considering my tax paying, voting comments as a NO to further changes in the El Corte de Madera preserve. Scott M. Hewlett RSSY '• ACTION FROpOSSa ST STAFF got eideet Acknowledge/RespondDate: Tue, 09 Apr 1996 09:56:25 -0700 airoctor Acknovled/s/Respoed To: mrosd@netcom.com a.tt Ackeovlsd Se/Respeed From: Tim Simmons Ctsimmons@auspex.com Ot.tt Response Attacked Subject: El Corte de Madera trail plan Start to be Directed to prepare avert Respoaes tot /oard Cossideracion per Cc: tsimmons@auspex-gw.auspex.com team aicecc l•e(s) se Response Necessary Dear Directors, As a responsible mountain biker I would like to voice my concern with the direction that the MROSD plans to go with El Corte de Madera. Because of it's rugged technical terrain and natural beauty, ECDM is my favorite place to ride in the Bay Area. I know many other mountain bikers who feel the same way. I can proudly boast to friends in other parts of the country that we here in the bay area have in our backyards some of the best mountain biking areas in the country. As you may know, this area has one of the highest concentrations of mountain bikers anywhere in the nation, there are easily tens of thousands of mountain bikers here. I feel the MROSD would do a great disservice to the community by tampering with the access to terrain that a large number of people enjoy so much. Most mountain bikers are responsible, care about the preservation of our environment, and are courteous to other trail users. Please don't let the irresponsibility of a small minority taint the image of the rest of us. Let's all work together and find ways that all trail users can enjoy the trails that make this area so desireable to live in. Best Regards, Tim Simmons Cupertino RR AC2IDR rRoroSRO IT S Af Board tresidest Ackaewled$*/Respead Director cknowledge/Respeed Staff Acknowledge/Rooposd Otafc &espouse Attacked Rufi a ke Direeead to teyare Draft From: Tiin Wong l a aol.conl Reaper for Board CeasideratLea par Date: Tue, 9 Apr 1996 02:14:22 -0400 Re.rd Ditati+.(+' Re Reapass• we a sari To: mrosd@netcom.com Subject: Proposed trails in El Corte de Madera 1 am concerned about the proposed trails in the El Corte de Madera. I feel that adding trails to this area would take-away the natural beauty that makes it so special for people to visit. I hope that you would find that it is best to leave this area untouched. There are very few places in the Bay Area one can go to and feel like he or she is truly spending time with the natural beauty 01'our planet. Please do not change the natural beauty of this place as well. Please feel free to contact me if you have any comments or questions. Yours truly, Tim Wong t!' ! ACTION PROFOS90 RT STAFT So .ostdest Aeknovlodge/Respond From: court@sdc.ucsb.edu Dlreccer Ae keevledga/Raapead To: mrosd@netcom.com :taff Acknowledge/Respend Subject: keep El Corte de Madera wild Draft Reopen** Attacked Staff to be Direeted to prepare Draft Date: Wed, 10 Apr 96 10:21:53 -0700 R..pen.. fer aeard Consideration par iwsd Dir•eci+o(a) No Response Necessary Dear Directors, . I am writing in response to the proposed trail plan for El Corte Madera Open Space Preserve. Even though I am currently living in Santa Barbara, I frequently return to the Bay Area and in particular, to El Corte Madera. When it comes to mountain biking, I believe that there is nothing better than riding unsolicated single track through the Coastal Redwoods. Conditions like this are becoming more rare over the years due property rights, the needs and wants of other trail users and, most importantly, trail preservation. Mountain biking is a growing sport and I agree that the impacts on our natural areas have been increasing as well. But the permanent elimination and/or sterilization of trails is not an adequate remedy. I am currently working on conservation issues here in Santa Barbara County and from my point of view, it is integral to the livlihood of an ecosystem to preserve its environment rather than artificially manage it. I agree that the best way to preserve some portions of the El Corte Madera is to close off some of the trails. I noticed that you have done this alread to a few trails at the western end. Of course, this can be done in a rotational manner, by closing certain trails for several months at a time. Permanent closer, however, is not a wise decision. Permanent closure coupled with trail widening and grading censors the sport of mountain biking to that f riding in a theme park. I also believe that permanent closures will promote more illegal riding or "poaching" of favorite trails. Mountian biking is an important liletstyle to many of us (which those who do not partake could neve understand) and management decisions like the ones you have suggested will surely rekindle an atmosphere of hostility between hikers, riders, and county planners (a relationship which has been taking years to balance). Please keep El Corte Madera as wild as it can be. -Limit the major trail realignment, widening and leveling to the area of the preserve that to Skyline Boulevard. - Leave the trails in the other areas of the preserve (especially in the south and southwest) untouched, with possible exceptions made, on a case-by-case basis, for areas of extreme erosion. -Meet with the owner of the private property at the northwest corner of the park, to discuss whether some arrangement can be made to permit park visitors to cross this land. (I note that there is already a precedent for this -namely, the Garrod Farms land adjacent to Fremont Older O.S.P.) David B. Court R ACTION PROPO39D RT STArr •. tensidest Aeknovledle/Fespend Date: Thu, 11 Apr 1996 14:23:10 -0700 Director Aeknevlsd Re/Resp*e4 Subject: letter to ECdM U&M Committee Starr Acknowledge/Respond To: mrosd@netcom.com X Draft Response Attacked From: Peter Donohue :tarn ►. Direeeed to prepare Draft Res ens• ter R p eaed Consideraeisa per Board DSrective(s) Pdonohue@raychem.com No Response necessary April 11, 1996 El Corte de Madera Use & Management Committee Midpeninsula Regional Open Space District 330 Distel Circle Los Altos, CA 94022 Dear Committee Members: Unfortunately, I will not be able to attend the El Corte de Madera(ECdM)meeting on Monday, April 15. But I still wanted to provide my comments. "The trail characteristics which currently restrict use by the hiking public are the very things that the intermediate to advanced mountain biking community thrive upon. In staffs opinion, the existing trail system (including both designated and unauthorized trails) primarily serves a small percentage of the bicycling community. By implementing the trail plan as proposed in this plan, the preserve will become accessible to a broad spectrum of open space enthusiasts. A wider range of mountain bicyclists will have opportunities on this preserve, as will hikers and equestrians. At the same time, staff feels that the proposed plan retains a significant number of the trails which are attractive to the current users." The paragraph above, which was taken from the background and summary of the trail plan, pretty well details my fears. Yes, I agree that a variety of trail types and experiences are desirable for all trail users. But I disagree that the majority of the ridden trails (both authorized and undesignated) in ECdM need to be "sanitized" such that lower level riders can use them. I will use ski resorts for a comparison. Most ski resorts have about 40-50% of their trails designated for advanced or expert skiers. Yet presently, only much of the 20 miles of unauthorized trails in ECdM plus maybe 10 miles of other trails throughout the District's system are ones that I would consider to be advanced (about 15% of the total mileage of trails within the District). 15% as compared to 40% is definitely a large discrepancy, and that is including all the unauthorized trails in ECdM. To remove even half of the advanced- level trails in ECdM would create an even larger imbalance. Ski resorts are companies that are trying to stay in business. To do so, they need to provide what the skiing public desires. And they have found that advanced runs are needed. Democratic government bodies are much the same. They are governments for the people, of the people. They need to provide what their public wants. Skiers like to push themselves and to achieve something difficult. Mountain bicyclists have the same desires. v And to meet those desires, we need access to advanced skill-level trails. So, what will mountain cyclists do if there main outlet for difficult trails is removed?There are three options that people will choose: 1) abide by rules and grumble about how badly certain government organizations are treating them. 2) ride the legal trails in a way that would allow them to push themselves. Generally, less technical trails need to be ridden faster to achieve the same level of difficulty. That means more people will be bumping up against the 15 mph speed limit. Once again, more negative feelings towards certain government organizations. 3) find new trails that meet the desire for technical riding. Unfortunately, without many legal options for advanced skill-level trails, many cyclists will choose illegal options. And once again, have negative feelings towards certain government organizations. As a government organization, I wouldn't consider any of these options to be acceptable. Yet they are inevitable under the present plan. And we aren't talking about just a few cyclists that we be choosing their options, but about enough to cause Skegg's Point and the trailhead roadside parking to be "often filled to capacity on weekends by preserve visitors." Similar to the sentiment that was brought up at the last public meeting, I once again ask that you consider leaving much of the preserve in the state that it presently is. The proportion of District trails available for lower skill-level riders is already too high. Please do not sanitize the trails in ECdM. Peter Donohue April 11, 1996 RRSPOOSt ACTION PROPOS90 By STAYT '.. El Corte de Madera Use& Management Committee board Presid eat Acknoviodbo/Rospond Midpeninsula Regional Open Space District Director AcknoviedSe/Respond 330 Distel Circle Scoff Acknovied Se/Rospond Los Altos, CA 94022 Draft Response Attacked Steft to ke Directed to Prepare Draft Rospoos• for Soard Consideration par board Dirsat ivo(s) Dear Committee Members: No Response Necessary I would like to provide some comments regarding the proposed land use plan for the El Corte de Madera (ECdM). I am afraid that nature lovers and mountain bikers everywhere will suffer from a "sanitized" version of the open space. ECdM is a very rugged open space that is respected by its users. I fear that significant changes in the nature of the preserve will increase injuries from mountain biking accidents. The following passage was taken from an email by Malcolm Smith sent 4/11/96: "The trail characteristics which currently restrict use by the hiking public are the very things that the intermediate to advanced mountain biking community thrive upon. In staff s opinion, the existing trail system (including both designated and unauthorized trails) primarily serves a small percentage of the bicycling community. By implementing the trail plan as proposed in this plan, the preserve will become accessible to a broad spectrum of open space enthusiasts. A wider range of mountain bicyclists will have opportunities on this preserve, as will hikers and equestrians. At the same time, staff feels that the proposed plan retains a significant number of the trails which are attractive to the current users." I agree that a variety of trail types and experiences are desirable for all trail users. I also agree with realigning certain areas of the preserve to protect environmentally sensitive regions. But I disagree with the principal of sanitizing ridden trails (both designated and unauthorized) so that beginning and intermediate level riders can use them. By sanitizing trails within this preserve, you are not taking advanced-intermediate and advanced riders' needs in mind. I have been mountain biking for the past three years. I began riding ECdM one year ago, riding in the preserve two to three times per week. I feel that ECdM has a special place in the preserve system managed by MROSD. Riding in ECdM is like a right of passage; you do not attempt it until your riding skills improve. In my mind, improving skills is a natural progression of an athlete. As a simple analogy, I will not play tennis with an expert, I will practice and improve to a point where I think that I can learn from his/her playing ability. I want to borrow the comparison of mountain biking to skiing. As presented by Peter Donohue, most ski resorts retain approximately 40-50% of their property for intermediate or advanced skiers. As he points out, possibly 15% of trails in MROSD lands can be considered by the mountain biking community as "advanced", even including unauthorized trails at EUM. If a ski resort catered only to beginning skiers, not many customers would attend for very long. Mountain bikers have similar desires to skiers. We want to become better riders much as they want to become better skiers. We push ourselves to improve our riding skills; skiers do the same when gliding down the slopes of a snow covered mountain-side. Advanced runs are needed for both the skiing public and the mountain biking public. What I fear about the removal of intermediate and advanced runs within EUM is that in order to make up for the lack of challenge, riders will need to resort to speed to improve their skills. In my mind, speed is the enemy of mountain biking. Speed, more often than not, leads to injuries. I believe that it is safe to say that the mountain bikers I have encountered in EUM prefer sanity to injury, . The simple truth is you cannot "barrel" down a technical, singletrack descent. By keeping the intermediate and advanced runs in the preserve open, the average speed of mountain bikers will be reduced. I also fear that the repercussions of closing these trails will lead to more "unauthorized" activities within the preserve. To reiterate the arguments of my peers, mountain bikers can choose any of three paths. 1) Abide by the law and grumble about the governing organization. 2) Ride the legal trails faster to achieve this same sense of challenge, pushing themselves to or beyond the speed limit enforced on district lands. 3) Find new trails that meet these desires, often resorting to illegal activities to do SO. The popularity of EUM with intermediate and advanced cyclists leads me to believe that under the present plan, all three of these paths will be inevitable. I do not believe that the MROSD needs to sanitize ever open space so that all users can enjoy them. I ask you to Y P P l Y reconsider leaving much of the preserve in its present state, realigning sections that are environmentally sensitive. I am not asking for a playground for mountain bikers; I am seeking equal representation as an avid user of the preserve. The District already maintains many miles of trails for lower skill-level riders. When these riders' skills have improved, they may find themselves ready to move on to riding at EUM. I would like to thank your for time in reviewing this letter. I appreciate your giving me the opportunity to present my opinions on the upcoming trail use plan. Thank you. Sincerely, ! 6A� w�^-^ Victor A. Fisher RRS►ONSR ACTION ►RO►OSto ST STA►p and ►re.ldaat Acknevledle/Reopead Date: Fri, 12 Apr 1996 11:31:03 -0700 Direeter Aekaovledl./Rospe.d To: mrosd@netcom.com Steff Aekaevledle/Rospo.d From: rhanford@fuhsd.org(Rick Hanford) °rat` Raapane• Attaeked Subject: Mountain Biking/El Corte de Madera(Please forward to Board) Staff` `° D1r•abi° ►..pare Draft to posoo tee Deard Coasldoraglee peg to d Dlreeclve(9) Dear Directors, to Response teessa.r► I am writing to the MROSD in regard to its proposed trail plan for El Corte de Madera Open Space Preserve. I appreciate that the MROSD included- in its task force - a broad cross-section of the community that enjoys this park. However, I am disturbed that the resulting trail plan does not reflect the concerns of this community, and by the fact that during the open meeting held on January 25th, the directors seemed determined to proceed with the plan, in spite of the considerable criticism expressed by the public at that meeting. The numerous preserves owned by the MROSD span the spectrum from gentle open spaces located next to urban areas (such as Fremont Older), to wild and rugged land located in more rural settings (such as El Corte de Madera). I feel that this wide diversityof reserves is important, and that because of this the MROSD's trail P ,P guidelines should be flexible, instead of a "one size fits all" policy being applied uniformly to all preserves. In particular, the wide, smooth, gently-sloped trails found in preserves such as Fremont Older and Saratoga Gap would be less appropriate in El Corte de Madera, especially in the southwestern section of the park, far from Skyline Boulevard. Many of the trail modifications in the MROSD's proposed plan would diminish the special character of El Corte de Madera, and spoil much of its natural beauty. I also note that El Corte de Madera is currently very popular with mountain cyclists. I am concerned that the widespread trail closures and realignments outlined in the MROSD's plan will make this park much less popular with this group of trail users, increasing the possibility of trail conflicts occurring in other preserves. In summary, I ask the MROSD directors to consider amending their trail plan as follows: - Limit the major trail realignment, widening and leveling to the area of the preserve that to Skyline Boulevard. - Leave the trails in the other areas of the preserve (especially in the south and southwest) untouched, with possible exceptions made, on a case-by-case basis, for areas of extreme erosion. - Meet with the owner of the private property at the northwest corner of the park, to discuss whether some arrangement can be made to permit park visitors to cross this land. (I note that there is already a precedent for this -namely, the Garrod Farms land adjacent to Fremont Older O.S.P.) Yours truly, Rick Hanford Los Gatos, CA. Regional Open Spac R-96-51 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Meeting 90-10 April 24, 1996 AGENDA ITEM Award of Contract for Construction of the Skyline Ranger Office at Skyline Ridge Open Space Preserve / r r: ASSISTANT MANAGER'S RECOMMENDATI CcR 1. Accept the bid from TAG Group, Inc. of San Francisco of$408,434.00 and award the contract to complete this project. 2. Authorize the General Manager to enter into a contract for performance of the work. Background At your July 26, 1995 meeting, you authorized staff to solicit bids for construction of a new field office at the Skyline Ridge Open Space Preserve (see report R-95-101). You also authorized the General Manager to approve a lowest responsible bid (not to exceed $15,000) for necessary grading activities prior to construction of the new field office. Staff decided to pursue separating the site work from the building construction in order to begin the site work during 'the fall months of 1995, enabling construction during the winter months. Upon review of bids received on September 26, all bids were in excess of the District's estimate making it more prudent to contract with one general contractor to perform both the site work and the building construction. Accordingly, on September 27, 1995 you rejected all bids for site work, grading, surfacing and underground utilities for construction of the field office. Staff recommended postponing the bidding process for the entire project until January, 1996. In January, 1996 the entire project was re-advertised. Notices were sent to approximately 50 contractors and the project was published in the San Jose Mercury News and the Daily Pacific Builder. Plans and specifications were also sent to six builder's exchanges. The public bid opening was held on February 14, 1996. Eight bids were submitted. On February 15, following the bid opening, a protest from the second lowest bidder was received against the lowest bid. A second protest was received on February 27. Due to irregularities in the bids, staff recommended rejection of all bids and re-advertisement of the project. At your March 13, 1996 meeting, you rejected all bids and authorized rebidding the project (see report R-96-06). The project was re-advertised in mid-March. In addition, all planholders from the February 14 bidding were notified of the rebidding procedure. Bids were due on April 10, 1996. Four bids were received, ranging from $408,434.00 to $495,262.00. A bid breakdown is attached. 330 Distel Circle * Los Altos,CA 94022-1404 + Phone:415-691-1200 a FAX:415-691-0485 * E-mail mrosd@netcom.com &� Board of Directors:Pete Siemens,Mary C.Davey,Teena Renshaw,David T.Smewoff,Nonette Hanko,Betsy Crowder,Win de Wit General Manager:L.Craig Britton R-96-51 Page 2 The low bid is slightly lower than the project estimate of $422,768.00. This estimate was prepared in January, 1996 by an independent estimating and project management company. The fiscal year 1996-1997 budget includes $490,000 for this project. This amount includes the cost of a project manager, engineering and architectural inspection services during construction, and any changes which may occur during construction. Prepared by: Mary de Beauvieres, Open Space Planner Contact: Same as above 04110196 SKYLINE RIDGE OPEN SPACE PRESERVE - FIELD OFFICE CONSTRUCTION Bid Analysis Description of Item TAG GROUP GARDNER AR Construction RUSHFORD Clear/Grub 6,000 4,000 5,800 6,000 Earthwork (Cut/Fill) 20,265 20,265 16,500 20,265 Underground Utilities 4,150 7,575 9,000 8,240 Class 2 Aggregate Base 8,000 8,000 9,000 8,000 Oil/Screen 10,335 10,335 7,000 10,335 Trenching 2,000 0 3,000 4,000 Concrete Work 4,720 10,159 11,000 10,418 Foundations & Grade Beams 21,500 29,959 30,000 29,959 Drilled Piles 26,000 15,556 14,482 22,729 Site Finish Grading 1,920 1,920 2,000 1,920 Sewer Lines 3,500 3,600 5,000 2,200 Plumbing 25,000 18,805 24,500 19,212 Electrical 28,017 33,000 28,000 20,000 Framing (Rough Carpentry) 60,000 67,000 75,000 78,840 Finish Carpentry/Trim 5,500 5,722 8,000 9,117 Drywall, Taping & Texture 5,925 8,800 7,800 7,957 HVAC 22,100 15,499 21,300 21,300 Sheetmetal 1,970 4,500 4,400 3,739 Roofing 8,000 6,799 9,143 6,799 Doors, Frames & Hardware 8,500 8,754 8,149 8,910 Glass & Glazing 7,000 5,437 10,390 6,260 Painting 8,150 7,722 7,722 7,722 Insulation 5,240 5,488 5,927 5,488 Firesprinklers/Monitor 16,790 19,212 19,212 19,212 Suspended Acoustical T-bar Ceiling 4,827 4,570 4,556 3,644 Flooring (Sheet Goods, VCT, Base) 8,400 7,600 9,498 7,600 Tile 3,500 3,470 5,500 5,685 Toilet Accessories 3,450 2,650 3,315 3,120 FRP Wainscoating 550 600 800 880 Millwork/Cabinets 8,400 12,880 7,220 12,480 Appliances 740 490 600 650 Lockers 2,490 3,156 3,156 3,093 Signage 940 920 1,000 1,250 Blinds 1,565 1,115 1,150 1,115 Misc Equipment 1,000 0 2,000 485 Hydroseeding 1,000 1,500 1,500 1,500 SUBTOTAL 347,444 357,061 382,620 380,124 General Conditions 6,500 19,743 18,100 10,801 Supervision 23,000 18,000 30,000 30,000 Permits 2,490 2,487 2,440 2,487 Overhead & Profit 20,000 26,304 48,000 63,479 Project Bonding 9,000 10,309 8,000 8,371 TOTAL BASE BID 408,434 433,904 489,160 495,262 Regional c, MIDPENINSULA REGIONAL OPEN SPACE DISTRICT R-96-48 Meeting 96-09 April 24, 1996 AGENDA ITEM Proposed Creation of the Midpeninsula Regional Open Space District Financing Authority with Santa Clara County for the Purpose of Debt Issuance for Open Space Land Acquisition by the District CONTROLLER'S RECOMMENDATION Adopt the attached resolution 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. DISCUSSION As noted during the presentation of the 1996-1997 fiscal year budget, District staff has been exploring the creation of a financing authority with Santa Clara County for the purpose of �I issuing District debt (see report R-96-28 and R-96-31). The 1996-1997 budget assumes the issuance of$29.1 million of notes and lease debt. Of this amount, $19.7 million would be used to pre-pay existing land contract debt and to refinance the outstanding 1988 Variable Rate Demand Notes. By utilizing a joint powers financing authority, the issue can be structured to significantly reduce the District's near term debt service. Even though the issue would yield some $7.4 million of new land acquisition funds, District debt service payments would decline by $4.5 million over the next six years. The downside is that total annual debt service payments will gradually rise each year through the year 2017, severely limiting the District's ability to borrow additional funds for land acquisition in the future. Financing Authority The District has requested Santa Clara County's assistance in creating a Marks-Roos Financing Authority for the purpose of issuing District debt. The name of the proposed financing authority is the Midpeninsula Regional Open Space District Financing Authority. The Authority will be governed by a board composed of five members: the President of the District's Board of Directors, three other members of the District's Board, and the member of the Santa Clara County Board of Supervisors whose district (currently District No. 5) encompasses the greatest territory of the District in the County. The District will be responsible for managing and administering this Joint Powers Authority. Bond issues of the Authority will not be required to be disclosed in the County's Annual Comprehensive Financial Report. Provision has been made in the Joint Powers Agreement to indemnify the County from liability and loss from any of the activities of the Authority. The sole purpose of the Authority will be to act as an issuing Authority for the District's financing. The 330 Distel Circle - Los Altos, CA 94022-1404 - Phone:415-691-1200 - FAX:41°5-691-048.5 - E-mail:mrosd@netcom.com Board of Directors:Pete Siemens,Mary C.Davey,Teena Henshaw, David T.Srnernoff, Nonette Hanko, Betsy Crowder,Wim de Wit General Manager:L.Crain Britton R-96-48 Page 2 District will be responsible for continuing disclosure for the purposes of the Securities and Exchange Commission's regulations on local government debt issuance. Santa Clara County will have no responsibility for continuing disclosure. The creation of the Authority requires action on similar resolutions by the District's Board of Directors and the County's Board of Supervisors. Sources and Uses for the Proposed 1996 Lease and Note Issues The estimated sources and uses for the proposed 1996 lease and note issues are as follows: Sources: 1996 Capital Appreciation Notes' $ 7,350,000 Refinance 1988 Notes' 10,690,000 1996 Lease' 11,070,000 1988 Note Reserve Fund 750,000 Total sources $29,860,000 Refund 1988 Notes $10,520,000 Pre-Pay Contract Notes 8,590,000 Accrued Interest on Prepaid Notes 550,000 New Reserve Fund 2,330,000 Underwriters Discount 320,000 Other Cost of Issuance 170,000 Land Acquisition Funds 7,380, Total Uses $29,860,000 20 year notes; 89% of principal matures in 2016-2017 [21 20 year notes; fixes interest rate; extends maturity by 9 years PI JPFA needed to integrate lease with notes At the end of March 1996, the District had bonded indebtedness equal to approximately 95% of its debt limit. After the proposed debt issue and refinancing, the District's bonded indebtedness would be about 89% of the projected March 1997 debt limit. The proposed underwriter is Stone & Youngberg (S&Y). S&Y underwrites more California municipal financings than any other firm and underwrote all District issues prior to 1987, as well as the 1995 note issue. S&Y has done an excellent job of working with staff to structure the proposed transaction to maximize cash available for near term land acquisition R-96-48 Page 3 while assuring income will be available to service the debt. S&Y has not yet proposed an Underwriting Agreement but has indicated that its fees will not exceed 1%. This is the same percentage fee paid to S&Y on the 1995 Notes and below the fees charged by prior underwriters. The Underwriting Agreement will be negotiated later this month and presented to you for your approval in May. At that time, we will also provide a more detailed financial analysis of the proposed transaction and seek your approval of the proposed transaction. The proposed bond counsel is Orrick, Herrington and Sutcliffe. Orrick, Herrington and Sutcliffe has served in this role for virtually all of the District's debt issues and staff desires to maintain this successful relationship. A fee agreement will also be presented to you for your approval in May. The tentative schedule for the transaction is as follows: April 24 MROSD Board considers JPA Agreement May 7 Santa Clara County Supervisors consider JPA Agreement May 22 MROSD Board approves financing documents and fee and retention agreement with bond counsel May 29 Sign purchase contract with underwriter June 12 Close Prepared by: Michael Foster, Controller Craig Britton, General Manager Contact person: Michael Foster, Controller I RESOLUTION NO. 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 WHEREAS, the Midpeninsula Regional Open Space District (the "District") and the County of Santa Clara (the "County") desire to create and establish, pursuant to the laws of the State of California, the Midpeninsula Regional Open Space District Financing Authority (the "Authority" ) ; and WHEREAS, there has been presented to this meeting a form of Joint Exercise of Powers Agreement (the "Agreement") by and between the District and the County, which Agreement creates and establishes the Authority; NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Midpeninsula Regional Open Space District, as follows: Section 1. The form of Agreement, on file with the Secretary of the Board of Directors of the District and incorporated into this resolution by reference, is hereby approved, and the President of the Board of Directors of the District is hereby authorized to execute the Agreement in substantially said form with such changes or additions thereto that may hereafter be approved by such officer, which approval shall be conclusively evidenced by the execution of the SF2-53790.2 Agreement, and the Secretary of the Board of Directors of the District is hereby authorized to attest such execution. Section 2 . This resolution shall take effect from and after its adoption. The foregoing resolution was passed and adopted by the Board of Directors of the Midpeninsula Regional Open Space District on the 24th day of April, 1996, by the following vote: AYES: Directors NOES: ABSENT: President of the Board of Directors of the Midpeninsula Regional Open Space District ATTEST: Secretary of the Board of Directors of the Midpeninsula Regional Open Space District SF2-53790.2 2 JOINT EXERCISE OF POWERS AGREEMENT BY AND BETWEEN THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT AND THE COUNTY OF SANTA CLARA CREATING THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT FINANCING AUTHORITY Dated as of May 1, 1996 SF2-53773.2 JOINT EXERCISE OF POWERS AGREEMENT This Joint Exercise of Powers Agreement (the "Agreement" ) , dated as of May 1, 1996, by and between the Midpeninsula Regional Open Space District, a regional open space district duly organized and existing under and by virtue of the laws of the State of California (the "District") , and the County of Santa Clara, a political subdivision of the State of California duly organized and existing under and by virtue of the laws of the State of California (the "County" ) ; W —I T N E S S E T H: WHEREAS, Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Law" ) authorizes the District and the County to create a joint exercise of powers entity which has the power to exercise any powers common to the District and to the County and to exercise additional powers granted to it under the Law; and WHEREAS, the District is authorized to purchase, sell and lease property and to borrow and loan money for any of its public purposes pursuant to the provisions of the Public Resources Code of the State of California; and WHEREAS, the County is authorized to purchase, sell and lease property and to borrow and loan money for any of its public purposes pursuant to the provisions of the Government Code of the State of California; and WHEREAS, the Law authorizes and empowers such a joint exercise of powers entity to issue bonds or other evidences of SF2-53773.2 indebtedness and to purchase bonds or other evidences of indebtedness issued by or to make loans to the members of a joint exercise of powers entity for financing public capital improvements for the District or the County whenever there are significant public benefits; WHEREAS, the Law further authorizes and empowers such a joint exercise of powers entity to sell bonds or other evidences of indebtedness so issued or purchased to public or private purchasers at public or negotiated sale; and WHEREAS, the District and the County desire to create and establish a joint exercise of powers entity under the Law for the purposes set forth herein and to exercise the powers described herein; NOW, THEREFORE, the District and the County, for and in consideration of the mutual promises and agreements herein contained, do agree as follows: SECTION 1. DEFINITIONS The terms defined in this section or otherwise defined herein shall for all purposes of the Agreement have the meanings herein specified: Authority The term "Authority" means the Midpeninsula Regional Open Space District Financing Authority created by the Agreement. Board The term "Board" means the governing board of the Authority. SF2-53773.2 2 Bonds The term "Bonds" means bonds and any other evidences of indebtedness of the Authority authorized and issued pursuant to the Law. SECTION 2 . PURPOSE The Agreement is made pursuant to the Law, and is for the purpose of assisting the financing and refinancing of public capital improvements (as defined in the Law) for the District and/or for the County by exercising the powers referred to in the recitals hereof and as described herein. SECTION 3 . TERM The Agreement shall become effective as of the date hereof and shall continue in full force and effect until June 30, 2026, unless earlier terminated by a written agreement of the District and the County supplemental hereto; provided, that in no event shall the Agreement be terminated while any installment or rental payments are due by either the District or the County to the Authority under any purchase or lease of any real or personal property from the Authority to the District and/or the County, or while any Bonds of the Authority are outstanding. SECTION 4 . AUTHORITY A. Creation of Authority There is hereby created pursuant to the Law an agency and public entity to be known as the I'Midpeninsula Regional Open Space District Financing Authority. " As provided in the Law, the Authority shall be a public entity separate from the District and SF2-53773.2 3 the County, and the debts, liabilities and obligations of the Authority shall not constitute debts, liabilities or obligations of the District or the County. Within thirty (30) days after the effective date of the Agreement or any amendment hereof or supplement hereto, the Authority will cause a notice of the execution of the Agreement or such amendment or supplement, as the case may be, to be prepared and filed with the office of the Secretary of State of the State of California in the manner set forth in the Law, and within seventy (70) days after the date of commencement of its legal existence, the Authority shall file with the Secretary of State of the State of California and with the County Clerk of the County a statement of the following facts: 1. The full, legal name of the Authority; 2 . The official mailing address of the Board; 3 . The name and residence or business address of each member of the Board; and 4 . The name, title and residence or business address of the Chairperson and the Secretary of the Authority; and within ten (10) days after any change in the facts required to be stated pursuant to paragraphs 1, 2, 3 and 4 hereof, an amended statement containing the information required thereby shall be filed as provided herein. B. Members of the Board The Authority shall be administered by the Board consisting of five members, one member of which shall be, at all SF2-53773.2 4 times, the President of the Board of Directors of the District and three members of which shall be, at all times, members of the Board of Directors of the District who are appointed to the Board by the President of the Board of Directors of the District and one member of which shall be, at all times, the member of the Board of Supervisors of the County whose district (currently District No. 5) encompasses the greatest territory of the District in the County and who is appointed to the Board by the Chairman of the Board of Supervisors of the County; provided, that the term of office of any member of the Board shall terminate when such member of the Board shall cease to be a member of the Board of Directors of the District or a member of the Board of Supervisors of the County, as the case may be, whereupon the appointing officer shall (as appropriate) appoint a successor to the Board meeting the qualifications contained herein. members of the Board shall not receive any compensation for serving as such, but shall be entitled to reimbursement for any actual and necessary expenses incurred in connection with serving as a member if the Board shall determine that such expenses shall be reimbursed and there are unencumbered funds available for such purpose. C. Meetings of the Board (1) Regular Meetings. The Board shall hold at least one regular meeting each year, and, by resolution, may provide for the holding of regular meetings at more frequent intervals. The .date upon which, and the hour and place at which, SF2-53773.2 5 each such regular meeting shall be held shall be fixed by resolution of the Board. (2) Legal Notice. All meetings of the Board shall be called, noticed, held and conducted subject to the provisions of Chapter 9 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California, or any successor legislation hereinafter enacted. (3) Minutes. The Secretary of the Authority shall cause minutes of all meetings of the Board to be kept and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each member of the Board and to the District and to the County. (4) uorum. A majority of the members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn meetings from time to time. D. Officers; Duties• Bonds (1) The officers of the Authority shall be a Chairperson, a Secretary, a Treasurer and a Controller. With the exception of the Treasurer and the Controller, the officers of the Authority shall be the persons specified in the Bylaws of the Authority adopted by the Board and shall have the powers vested in them pursuant to such Bylaws and such other powers as may be granted by the Board from time to time by resolution. (2) The Treasurerof the District is hereby designated as Treasurer of the Authority, and as such, is hereby SF2-5YM.2 6 designated as the depositary of the Authority to have custody of all the money of the Authority from whatever source, and, as such, shall have the powers, duties and responsibilities specified in the Law. The Treasurer of the Authority is designated as the public officer or person who has charge of, handles, or has access to any property of the Authority, and such officer shall file an official bond in the amount of fifty thousand dollars ($50, 000) as required by the Law; provided, that such bond shall not be required if the Authority does not possess or own property or funds with an aggregate value of greater than five hundred dollars ($500) (excluding amounts held by a trustee or other fiduciary in connection with any Bonds) . (3) The Controller of the District is hereby designated as Controller of the Authority, and, as such, shall have the powers, duties and responsibilities specified in the Law. The Controller of the Authority shall draw checks to pay demands against the Authority when the demands have been approved by the Authority. The Controller of the Authority is hereby authorized and directed to prepare or cause to be prepared: (a) a special audit as required pursuant to the Law every year during the term hereof; and (b) a report in writing on the first day of January, April, July and October of each year to the Board, the District and the County, which report shall describe the amount of money held by the Treasurer of the Authority for the Board, SF2-53773.2 7 the amount of receipts since the last such report, and the amount paid out since the first such report. (4) The District shall determine the charges, if any, to be made against the Authority for the services of the Treasurer and the Controller of the District as aforesaid. (5) The Board shall have the power to appoint such other officers and employees as it may deem necessary and to retain independent counsel, consultants, accountants and other professionals necessary in the exercise of its powers. SECTION 5 . POWERS The Authority shall have the power, in its own name, to acquire and/or construct real and personal property in and for the District and/or the County and to sell or lease such real and personal property to the District and/or the County, and the power to issue, sell and deliver Bonds for any purpose authorized under the Law and to purchase, with the proceeds of Bonds, bonds or other obligations issued or incurred by the District or the County at public or negotiated sale, all in accordance with the Law, and any such bonds so purchased may be held by the Authority or sold to public or private purchasers at public or negotiated sale, as a whole or in part, upon and subject to such conditions and terms as the Authority deems by resolution to be necessary, appropriate and in the public interest in furtherance of the Law; provided, that the District hereby agrees, to the full extent permitted by law, to indemnify, protect and hold and keep harmless the County and the members of the Board of Supervisors SF2-53'773.2 8 of the County and the officers and employees of the County from and against any and all liability, obligations, losses, claims and damages whatsoever, regardless of the cause thereof, and expenses in connection therewith, including, without limitation, counsel fees and expenses, penalties and interest, arising out of or as the result of the issuance of any Bonds hereunder for the benefit of the District or the payment of the costs of any facilities financed hereunder for the District by the issuance of Bonds or any accident in connection with the operation, use, condition or possession of any such facilities or any portion thereof resulting in damage to property or injury to or death of any person, including without limitation any claim alleging latent and other defects, whether or not discoverable by the District or the County or the Authority; any claim for patent, trademark or copyright infringement; and any claim arising out of strict liability in tort; which indemnification arising under this section shall continue in full force and effect notwithstanding the full payment of all Bonds hereunder or the termination hereof for any reason. The Authority is authorized, in its own name, to do all acts necessary for the exercise of its powers for said purposes, including but not limited to any or all of the following: to make and enter into contracts; to employ agents and employees; and to sue and be sued in its own name. Such powers shall be -exercised subject only to such restrictions upon the manner of SF2-53773.2 9 exercising such powers as are imposed upon the District in the exercise of similar powers, as provided in the Law. Notwithstanding the foregoing, the Authority shall have any and all additional powers conferred under the Law, insofar as such additional powers may be necessary to accomplish the purposes set forth herein. SECTION 6. TERMINATION OF POWERS The Authority shall continue to exercise the powers herein conferred upon it until the termination of the Agreement. SECTION 7. FISCAL YEAR Unless and until changed by resolution of the Board, the fiscal year of the Authority shall be the period from July I of each year to and including the following June 30, except for the first fiscal year which shall be the period from the date of the Agreement to the following June 30; provided, that if the fiscal year of the District is changed, the fiscal year of the Authority shall be similarly changed to be co-extensive therewith. SECTION 8 . DISPOSITION OF ASSETS Upon the termination of the Agreement, all assets of the Authority shall be distributed to the District and the County, subject to the provisions of Section 9 hereof. SECTION 9 . ADVANCES AND CONTRIBUTIONS Advances or contributions of public funds and of personnel, equipment or property may be made to the Authority by the District and the County for any of the purposes of the SF2-53773.2 10 Agreement, and payment of public funds may be made to defray the cost of any such advance or contribution. Any such advance or contribution shall be made subject to repayment, and shall be repaid, in the manner agreed upon by the District or the County, as the case may be, and the Authority at the time of making such advance or contribution. It is mutually understood and agreed that neither the District nor the County has any obligation to make advances or contributions to the Authority to provide for the costs and expenses of administration of the Authority, even though either may do so. The District or the County may allow the use of personnel, equipment or property in lieu of other advances or contributions to the Authority. After termination of the Agreement, any surplus money in possession of the Authority shall be returned to the District and the County in proportion to the unreimbursed contributions each has made. SECTION 10 . AGREEMENT NOT EXCLUSIVE The Agreement shall not be exclusive and shall not be deemed to amend or alter the terms of other agreements between the District and the County, except as the terms of the Agreement may conflict therewith, in which case the terms of the Agreement shall prevail. SECTION 11. ACCOUNTS AND REPORTS The Authority shall establish and maintain such funds and accounts as may be required by good accounting practice. The books and records of the Authority shall be open to inspection at all reasonable times by the District and the County and their SF2-53773.2 11 duly authorized representatives. The Authority shall give an audited written report of all financial activities for each fiscal year to the District and to the County within not more than twelve (12) months after the close of each fiscal year. So long as required by the Law, the Controller of the Authority shall either make, or contract with a certified public accountant or public accountant to make, an annual audit of the accounts and records of the Authority, and in each case the minimum requirements of the audit shall be those prescribed by the State Controller of the State of California for special districts under Section 26909 of the Government Code of the State of California and shall conform to generally accepted auditing standards . When such an audit of an account and records is made by a certified public accountant or public accountant, a report thereof shall be filed as public records with the District, the County and, if required by the Law, with the County Auditor/Controller of the County of Santa Clara, not more than twelve (12) months of the end of the fiscal year or years under examination. Any costs of the audit, including contracts with, or employment of, certified public accountants or public accountants, in making an audit pursuant to this section shall be borne by the Authority and shall be a charge against any unencumbered funds of the Authority available for the purpose. SF2-53773.2 12 In any year the Authority may, by unanimous request of the Board, replace the annual special audit with an audit covering a two-year period. SECTION 12 . CONFLICT OF INTEREST CODE The Authority by resolution shall adopt a Conflict of Interest Code as required by law, which may be the Conflict of Interest Code of the District. SECTION 13 . BREACH If default shall be made by the District or the County in any covenant contained in the Agreement, such default shall not excuse either the District or the County from fulfilling its obligations under the Agreement and the District and the County shall continue to be liable for the performance of all conditions herein contained. The District and the County hereby declare that the Agreement is entered into for the benefit of the Authority created hereby and the District and the County hereby grant to the Authority the right to enforce by whatever lawful means the Authority deems appropriate all of the obligations of each of the parties hereunder. Each and all of the remedies given to the Authority hereunder or by any law now or hereafter enacted are cumulative and the exercise of one right or remedy shall not impair the right of the Authority to any or all other remedies. SECTION 14. SEVERABILITY Should any part, term, or provision of the Agreement be decided by the courts to be illegal or in conflict with any law SF2-53773.2 13 of the State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining parts, terms or provisions hereof shall not be affected thereby. SECTION 15 . SUCCESSORS: ASSIGNMENT The Agreement shall be binding upon and shall inure to the benefit of the successors of the parties . Except to the extent expressly provided herein, neither party may assign any right or obligation hereunder without the prior written consent of the other. SECTION 16 . AMENDMENT OR SUPPLEMENT OF AGREEMENT The Agreement may be amended or supplemented by an amendatory or supplemental agreement, as the case may be, executed by the District and the County at any time. SECTION 17. FORM OF APPROVALS Whenever an approval is required in the Agreement, unless the context specifies otherwise, it shall be given, in the case of the District, by resolution duly and regularly adopted by the Board of Directors of the District, and, in the case of the County, by resolution duly and regularly adopted by the Board of Supervisors of the County, and, in the case of the Authority, by resolution duly and regularly adopted by the Board; and whenever in the Agreement any consent or approval is required, the same shall not be unreasonably withheld. SECTION 18 . NOTICES Notices to the District hereunder shall be sufficient if delivered to the Secretary of the Board of Directors of the SF2-53773.2 14 District and notices to the County hereunder shall be sufficient if delivered to the Clerk of the Board of Supervisors of the County. SECTION 19 . SECTION HEADINGS All section headings contained herein are for convenience of reference only and are not intended to define or limit the scope of any provision of the Agreement . SF2-53773.2 IN WITNESS WHEREOF, the parties hereto have caused the Agreement to be executed and attested by their proper officers thereunto duly authorized, and their official seals to be hereto affixed, as of the day and year first above written. MIDPENINSULA REGIONAL OPEN SPACE DISTRICT President of the Board of Directors [SEAL] ATTEST: Secretary of the Board of Directors COUNTY OF SANTA CLARA B Chairman of the Board of Supervisors [SEAL] ATTEST: Clerk of the Board of Supervisors SF2-53M.2 16 Di.str- " ,ted at April 24 , 1996 Regul .Meeting MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Existing Debt Service $7,000.000.00 $6,000,000.00 $5,000,000.00 $4,000.000.00 $3,000.000.00 $2,000,000.00 $1,000,000.00 ,d ' $- 4/1/97 4/1/02 4/1/07 4/1/12 4/1/17 4/1/22 4/1/27 -00—Existing Debt Service Stone&Youngberg LLC 4/24/% i i Midpeninsula Regional Open Space District Joint Powers Authority Issuance Principal Amortization i Fiscal Year Note Portion 1988 Fixed Lease Portion Total 1997 $ - $ - $ 5,000 $ 5,000 1998 $ - $ - $ - $ - 1999 $ - $ 135,000 $ 20,000 $ 155,000 2000 $ 65,000 $ 165,000 $ 40,000 $ 270,000 2001 $ 15,000 $ 195,000 $ 60,000 $ 270,000 2002 $ 20,000 $ 225,000 $ 85,000 $ 330,000 2003 $ 35,000 $ 265,000 $ 110,000 $ 410,000 2004 $ 45,000 $ 305,000 $ 135,000 $ 485,000 2005 $ 65,000 $ 345,000 $ 165,000 $ 575,000 2006 $ 85,000 $ 390,000 $ 195,000 $ 670,000 2007 $ 100,000 $ 440,000 $ 230,000 $ 770,000 2008 $ 50,000 $ 495,000 $ 270,000 $ 815,000 2009 $ 55,000 $ 555,000 $ 310,000 $ 920,000 2010 $ 55,000 $ 615,000 $ 355,000 $ 1,025,000 2011 $ 60,000 $ 685,000 $ 400,000 $ 1,145,000 2012 $ 60,000 $ 755,000 $ 455,000 $ 1,270,000 2013 $ 70,000 $ 835,000 $ 510,000 $ 1,415,000 2014 $ 70,000 $ 925,000 $ 575,000 $ 1,570,000 2015 $ 2,768,143 $ 1,015,000 $ 640,000 $ 4,423,143 * 2016 $ 3,820,000 $ 1,115,000 $ 715,000 $ 5,650,000 2017 $ - $ 1,225,000 $ 815,000 $ 2,040,000 * 2018 $ - $ - $ 850,000 $ 850,000 * 2019 $ - $ - $ 880,000 $ 880,000 2020 $ - $ - $ 910,000 $ 910,000 * 2021 $ - $ - $ 945,000 $ 945,000 * 2022 $ - $ - $ 985,000 $ 985,000 * 2023 $ - $ - $ 1,020,000 $ 1,020,000 * 2024 $ - $ - $ 1,090,000 $ 1,090,000 * 2025 $ - $ - $ 1,130,000 $ 1,130,000 2026 $ - $ - $ 1,250,000 $ 1,250,000 2027 $ - $ - $ 1,370,000 $ 1,370,000 i * Zero Coupon Maturity Stone& Youngberg 4/24/96 I MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Revised Overall Debt Profile 1996 Notes and Lease Added, Fixed 1988 VRDNs $7,000,000 $6,000,000 $5,000,000 I $4,000,000 E $3 000 000 9 I $2,000,000 $1.000.000 4/1/97 4/1/02 4/1/07 4/1/12 4/1/17 4/1/22 4/1/27 �1990 O 1992 1993 �1995 1996 Notes 1996 Lease 88 Fixed Portion —m—Existing Debt Service Stone& Youngberg LLC 4/23/96 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Revised Overall Debt Profile 1996 Notes and Lease Added, Fixed 1988 VRDNs $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 j t { 4/1/97 4/1/02 4/1/07 4/1/12 4/1/17 4/1/22 4/1/27 �1990 O 1992 0 1993 �1995 ®1996 Notes 1996 Lease 88 Fixed Portion NNON—Existing Debt Service Stone&Youngberg LLC 4/23/96 I i MIDPENINSULA REGIONAL OPEN SPACE,DISTRICT Total Debt Service Profile MROSD JPA MROSD JPA MROSD JPA Total After Total Existing 1988 1990 1992 1993 1995 1996 Notes 1996 Lease 88 Fixed Portion 1996 Bond Issue Debt Service 4/l/97 $1,320,000.00 $1,608,777.50 $ 480,235.00 $ 997,572.50 $ 799,017.50 $ 298,828.33 $ 405,869.17 $ 420,630.00 $ 4,590,300.00 $ 5,205,602.50 4/1/98 1,280,000.00 1,609,200.00 792,235.00 1,289,122.50 799,017.50 448,242.50 601,257,50 630,945.00 5,539,075.00 5,769,575.00 4/l/99 1,240,000,00 1,606,327.50 790,525.00 1,283,585.00 896,142.50 448,242.50 620,822.50 763,008.75 5,645,645.00 5,816,580.00 4/I/00 1,200,000.00 1,604,907.50 792,230.00 1,266,935.00 890,267.50 511,747.50 639,467.50 786,277.50 5,705,555.00 5,754,340.00 4/1/01 1,160,000.00 1,604,507.50 787,285.00 1,347,345.00 884,192.50 445,252.50 657,122,50 807,851.25 5,725,705.00 5,783,330.00 4/1/02 1,220,000.00 1,599,857.50 785,810.00 1,344,305.00 877,967.50 459,885.00 678,615.00 827,70T50 5,746,440.00 5,827,940.00 { 4/1/03 1,175,000.00 1,595,677.50 787,660,00 1,349,300.00 871,61T50 464,012.50 698,755.00 855,503.75 5,767,022.50 5,779,255.00 4/1/04 1,130,000.00 1,596,317.50 787,645.00 1,342,515.00 865,167.50 477,597.50 717,46T50 880,882.50 5,786,710.00 5,721,645.00 4/1/05 1,085,000.00 1,591,292.50 785,715.00 1,348,762.50 858,617.50 485,483.75 739,543.75 903,723.75 5,809,415.00 5,669,387.50 4/l/06 1,040,000.00 1,585,548.75 786,667.50 I,342,860.00 851,967.50 502,492,50 759,767.50 928,770.00 5,829,303.75 5,607,043.75 4/l/07 995,000,00 1,578,875.00 785,426.25 1,340,190.00 845,217.50 518,325.00 782,965.00 955,725.00 5,850,998.75 5,544,708.75 4/I/08 1,050,000.00 1,575,937.50 782,077.50 1,345,300.00 838,367.50 528,095.00 808,830.00 984,297,50 5,878,607.50 5,591,682.50 4/l/09 1,571,437.50 781,435.00 1,347,900.00 894,183.75 473,795.00 832,145.00 1,014,095.00 5,900,896.25 4,594,956.25 4/1/10 1,565,000.00 778,466.25 1,343,070.00 906,800.00 475,722.50 857,682.50 1,039,857.50 5,926,741.25 4,593,336.25 4/1/11 - 1,556,250.00 777,987,50 1,340,402.50 922,450.00 472,450.00 880,210.00 1,071,165.00 5,949,750.00 4,597,090.00 4/1/12 - - 774,832.50 1,339,945.00 2,480,000.00 473,970.00 909,332.50 1,097,587.50 5,978,080.00 4,594,777.50 4/1/13 - 773,812.50 1,341,780.00 2,480,775.00 470,295.00 934,772.50 1,128,883,75 6,001,435.00 4,596,36T50 4/1/14 - - 1,335,907.50 3,258,575.00 476,280.00 966,265.00 1,164,532.50 6,037,027.50 4,594,482,50 4/1/15 - 1,332,327.50 3,265,425.00 471,922.50 993,440.00 1,194,138.75 6,063,115,00 4,597,752.50 4/1/16 - - 1,330,500.00 - 3,737,559.05 1,025,560.00 1,227,297.50 6,093,619.05 1,330,500.00 4/1/17 - - 1,126,162.50 - 3,940,330.00 1,056,451.60 1,263,58T50 6,122,944.10 1,126,162.50 4/1/18 - - - 1,129,556.25 - 1,085,978.20 2,215,534.45 1,129,556.25 4/1/19 - - 1,124,931.25 - 1,118,767,40 2,243,698.65 1,124,93115 4/I/20 - - 1,122,287,50 - 1,152,218.30 2,274,505.80 1,122,287.50 4/1/21 - - - 1,121,33T50 - 1,186,280.50 2,307,618.00 1,121,337.50 4/1/22 - 1,224,420.25 - 1,224,420.25 4/1/23 - - 1,259,676.25 - 1,259,676.25 4/l/24 - - - 1,298,470.30 - 1,298,470.30 4/l/25 - - - - - I,333,840.00 - 1,333,840.00 4/l/26 - - - - 1,377,680.00 - 1,377,680.00 - 4/1/27 - - - 1,413,840.00 - 1,413,840.00 Stone&Youngberg 4/24/96 Stone & Youngberg LLC Established 1931 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT 1996 Financing Program Tentative Schedule—March 21, 1996 April 1996 May 1996 June 1996 S M T W T F S S M T W T F—S S M T W T F S 1 2 3 4 5 6 1 2 3 4 1 7 8 9 10 11 12 13 5 6 7 8 9 10 11 2 3 4 5 6 7 8 14 15 16 17 18 19 20 12 13 14 15 16 17 18 9 10 11 12 13 14 15 21 22 23 24 25 26 27 19 20 21 22 23 24 25 16 17 18 19 20 21 22 28 29 30 26 27 28 29 30 31 23 24 25 26 27 28 29 30 Timing Events Responsibility Wednesday,April 3 MROSD meets with County Supervisors MROSD Monday, April 15 Agenda deadline for MROSD meeting on April 24: OHS/S&Y JPA Agreement Wednesday,April 24 MROSD Board Meeting: Consider JPA Agreement MROSD - Present financing plan Thursday, April 25 Agenda deadline for County Supervisors meeting OHS/S&Y Friday, April 26 POS,purchase contract and draft legal documents OHS/S&Y circulated Week of May 6 All hands meeting to discuss documents All Hands Tuesday, May 7 Supervisors meeting to consider JPA Agreement All Hands Monday, May 13 Agenda deadline for MROSD meeting on May 22 OHS/S&Y Distribute documents to AMBAC and S&P OHS/S&Y Wednesday, May 22 MROSD meeting to consider financing documents MROSD/OHS/S&Y Thursday, May 23 Distribute POS to potential investors S&Y Monday, May 27 AMBAC and S&P decisions Tuesday, May 28 Pre-price issue MROSD/S&Y Wednesday, May 29 Price/Sign contract MROSD/S&Y Tuesday,June I I Pre-close All Hands Wednesday,June 12 Close All Hands 8010] 50 California Street - San Francisco, California 94111 - 415/981-1314 Proposed Financing Structure BONDS JPA Buy JPA Bonds MROSD JPA $29.2mm Investors Acquire �►• Notes & Reserve Fund Lease from s Pay Debt Service ;• } MROSD ; • s _ _lancing Authority issues • ` Bonds & Sells to Investors. Lease q JPA Acquires Notes & Lease Notes with Bond Proceeds. Investors Var to Fix $ 1 O.7mrn $ 11 . 1 mM receive debt service from JPA who receives pmts. from notes New $$$ $7.4mm and lease. Reserve fund 20 Year Term 30 Year Term secures JPA investors. Regional Open ace R-96-50 Meeting 96-10 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT April 24, 1996 AGENDA ITEM Proposed Addition of Wells and Cutten Properties to Kennedy Limekiln Area of Sierra Azul Open Space Preserve GENERAL MANAGER'S RECOMMENDATIONS 1. Adopt the attached resolution authorizing purchase of the Wells Pe Y ro rt . P 2. Adopt the attached resolution authorizing purchase of the Cutten property. 3. 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 AM Open Space Preserve. 4. Indicate your intention to withhold the properties from dedication as public open space at this time. 5. Determine that the recommended actions are categorically exempt from the California Environmental Quality Act as set out in this report. DESCRIPTION (see attached maps The Wells and Cutten properties consist of four square-shaped forty acre parcels in a checkerboard arrangement which constitutes a quarter-section of land. Each ownership includes two parcels totaling 80.76 acres. The parcels are surrounded by District land on three sides, including Kennedy Limekiln Area lands on the west and south, and the former Rancho de Guadalupe property on the east. Private property lies to the north. There are no access roads or improvements on the Wells and Cutten properties, except for a portion of the Kennedy Road to El Sombroso trail, which crosses the southwest corner of the southwest Cutten parcel. This trail is a popular recreational route and an important patrol access, and is also a portion of the regional Bay Area Ridge Trail. A dirt access road has been developed near the northern boundary of the Wells and Cutten properties across private property to the north. The four parcels consist of steep north-facing ridges and canyons ranging in elevation from approximately 1200 feet to 2500 feet, near the top of the ridge separating the Santa Clara Valley from the Lexington Basin. These northeast and northwest facing slopes are heavily wooded with oaks, bays and madrone, and some chaparral on the upper ridges. The land is essentially undisturbed, providing excellent watershed protection and wildlife habitat. These slopes are prominently visible from, and have excellent views of, the Santa Clara Valley. They are a major part of the immediate visual backdrop of the former Rancho de Guadalupe property, especially as viewed from the trail above Pheasant Creek. The parcels include 330 Distel Circle + Los Altos, CA 94022-1404 * Phone:415-691-1200 » FAX:415-691-0485 - E-mail: mrosci@netcom.com 6) Board of Directors:Pete Siemens,Mary C.Davey,Teena Henshaw,David T.Smernoff,Nonette Hanko,Betsy Crowder,Wim de Wit Genera!Manager:L.Craig Britton R-96-50 Page 2 most of the upper headwaters of Pheasant Creek, a significant tributary of Guadalupe Creek. Pheasant Creek flows year-round, fed by the same aquifer that feeds the fast-flowing Cherry Springs to the east on the former Rancho de Guadalupe property. USE AND MANAGEMENT PLAN Planning Considerations All four parcels are rated in the District's Open Space Master Plan as having the second highest level of composite open space values and are important in terms of habitat preservation, watershed protection, protection of scenic resources, guiding urban form, and outdoor recreation, based on the segment of the Bay Area Ridge Trail that is included. The Ridge Trail is proposed to connect from Mt. Umunhum via Mt. El Sombroso to Lexington Reservoir using this alignment. Due to their steepness, the properties are not likely to be used for other trail alignments. The acquisition of these properties would protect a part of a continuous wildlife habitat area and wildlife movement corridor extending from Almaden Quicksilver County Park on the east to Lexington Reservoir County Park on the west, a distance of approximately 6 miles. The District has received substantial grant assistance for the acquisition of properties at the east (Jacques Ridge) and west (Soda Springs and Limekiln Canyons) sides of this habitat area based on their value as mountain lion habitat The properties are in an unincorporated area of Santa Clara County and zoned Hillside, requiring a 20-160 acre minimum lot size depending upon slope density. Should development be pursued, the access road at the boundary with the private property to the north could be the probable means of access. Extensive development of large estate homes has taken place in the nearby foothills to the north and east, however this area is very remote and lacks public roads, utilities, and other amenities usually accompanying high development pressure. Preliminary Use and Management Recommendations Dedication: Indicate your intention to withhold the properties from dedication as public open space at this time. Name: Name the properties as additions to the Kennedy Limekiln Area of the Sierra Azul Open Space Preserve. Signs: Install private property and preserve boundary signs where appropriate. Public Safety Review: There are no known hazards. CEQA COMPLIANCE Project Description The project consists of the acquisition of 161.5 acres of land in four parcels as an addition to Sierra Azul Open Space Preserve and the concurrent adoption of a Preliminary Use and R-96-50 Page 3 Management Plan for the property. Ultimately, the property will be included in comprehensive use and management plans for the adjacent preserve areas. The scope of these plans will be determined at that time. The land will be permanently preserved as open space. The property will be maintained in a natural condition and opened to the public for low-intensity recreation. CEQA Determination The District concludes that this project will not have a significant effect on the environment. It is categorically exempt from CEQA (the California Environmental Quality Act) under Sections 15316, 15317, 15325 and 15061 of the CEQA Guidelines as follows: Section 15316 exempts the acquisition of land in order to create parks if the site is in a natural condition and the management plan proposes to keep the area in a natural condition. Section 15317 exempts the acceptance of fee interests in order to maintain the open space character of an area. Section 15325 exempts transfers of ownership of interests in land in order to preserve open space. This acquisition qualifies under all three sections. The actions proposed in the Preliminary Use and Management Plan are also exempt under section 15061, as there is no possibility the actions may have a significant effect on the environment. TERMS Based upon an in-depth title analysis by District staff, the Grantors (Wells & Cutten) own a 5/8ths interest in this 161.5 acre holding. The problem in the chain of title harks back to the 1920's when the remaining 3/8ths interest was divided off in an estate settlement and eventually dropped out of subsequent estate distributions. Over the past few years, staff contacted apparent heirs (mostly charities) and obtained gifts of a probable 1/8th interest in the property. However, the remaining 1/4 interest in the property is held by unknown owners and it is doubtful they would ever come forward, let alone be able to conclusively prove they are in fact entitled to a share of the property. Ms. Cutten and Mr. Wells are cousins and together own this quarter section of land (nominally 160 acres, in four 40 acre quarter-quarter sections). Although they obtained title through the same chain of heirs, they each separately own two quarter-quarter sections. Because of the inherent title problems, it is important to acquire both holdings to at least clear up their potential interest in parcels held by the other cousin, and both agree to assist the District in any future attempt the District might initiate to finally obtain clear fee title. The method to acquire the full fee would be a quiet title action, and because the unknown owners cannot be readily located, it is assumed this would be a rather simple matter. In fact, this would be a perfect project for a pro-bono legal effort or future legal intern. In the R-96-50 Page 4 meantime, the possibility of anyone challenging the District or declaring an ownership interest are remote, and the quiet title procedure is not seen as a priority project for District staff. Since the entire property is held under two separate ownerships, two separate purchase agreements are required, as attached. The terms are identical, and call for a payment of $50,000 to each owner, or a total of$100,000 for the 5/8 interest in the entire 161.525 acre holding. On a proportional basis, this amounts to an average of$990 per acre for full fee value. Based upon the real estate market in this area, this amount is determined to be fair and reasonable. BUDGET CONSIDERATIONS 1996/1997 Budget for Land Acquisition New land $8,300,000 Wells and Cutten Acquisition 100, Proposed on this agenda* Acquisition Budget Remaining * Controller M. Foster has been consulted on this proposed acquisition, and considering cash flow and cash availability, funds are available for this property purchase. This property was not included in your deliberations over acquisition priorities. Nevertheless, it is prudent to acquire the property interest at this time because the property is an in-holding that is desirable to eliminate or further control, the price is favorable price, and a portion of the Ridge Trail passes through the upper corner. Prepared by: L. Craig Britton, General Manager Randy Anderson, Senior Planner Contact Person: L. Craig Britton, General Manager SITE MAP PROPOSED ADDITION TO THE KENNEDY-LIMEKILN AREA OF EXHIBIT 1 SIERRA AZUL OPEN SPACE PRESERVE j I�i _ V a C� :, �. qt ''•`" r' t f ' LOS GATOS CREEK TRAIL CURBS I DE PARK 1 NG � 1 EL SERENO O.S.P. CONSERVATION EASEMENT OPEN SPACE EASEMENT �` �'m •*. a `` EEL PUBLIC ACCESS) k• �� .��-�. v f-� � J�� ; . ram° HIKING•a �� w 'Uu •z :„{� "•t — ,,E. �, - / j,,•�''f fy'�" , ,� �' Ly". q ti�•a RUNNING t.-.•.,w,. '�� }��•,, �`+ r li 3 �r�" �8 , \ ONIV— M. OPEN SPACE E SEM N �' � - tr '�tz.gQ�`• NO PUBLICyyy ACCESS l ` 6_Of: J11iY �� I � !f •i:*✓ ft'IIJ r-f •P �, f � _ _ �1 � �- I�S \�°�.�a ,_. -` r _y• i.�fl � -.� :t l'".✓'. '>\7� .� p.;4, �KENNEDY TRAIL � .(Yz53 • � J�:OPEN SPACE EASEMEN '` „�.._�� i��;�i, , ,I.,I� �,� 1• r NO PUBLIC ACCESS r _ 4 1 r,' f r _ . _"ter �. �••� '-__ ;. LIMEKILN--- l > , TRAIL / Canyon r "rlw �- " PROPOSED ACQUISITION RANCHO DE GUADALUPE ALMA BRIDGE ROAD A •" ^� PRIEST ROCK (WELLS/CUTTEN) " ; s � ., � �„ c'^r•s 0 p}*: r;;' ,'f.r I _ TRAIL T RL � —•._�� .��_ � tt; ;,�f F�—� A - .„' ` ��•• RIDGE TRAIL �• LEXINGTON RESERVOIR , KENNEDY TRAIL COUNTY PARK �.., �a 'rr � 3.0 Legend _ r j-� �_ • LIMEKILN—� "I.," F V DoUs must be on leasl M� f c.r.l Id Ilu•. l 1 (a :, .1= m —••—Patrol road and trail ('� �-� TRAIL Trail distance in miles C •r`. D, jai r t r s Tl^hh/ X No public access n y o r { r 4/96 `... �' r ,tjl liter Q RESOLUTION 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) The Board of Directors of the Midpeninsula Regional Open Space District does resolve as follows: Section One. The Board of Directors of the Midpeninsula Regional Open Space District does hereby accept the offer contained in that certain Purchase Agreement between James M. Wells and the Midpeninsula Regional Open Space District, a copy of which is attached hereto and by this reference made a part hereof, and authorizes the President or appropriate officers to execute the Agreement on behalf of the District. Section Two. The President of the Board of Directors or other appropriate officer is authorized to execute a Certificate of Acceptance on behalf of the District. Section Three. The General Manager of the District shall cause to be given appropriate notice of acceptance to the seller. The General Manager further is authorized to execute any and all other documents necessary or appropriate to the transaction. Section Four. The General Manager of the District is authorized to expend up to $1,000 to cover the cost of title insurance, escrow fees, and other miscellaneous costs related to this transaction. Section Five. It is intended, reasonably expected and hereby authorized that the District's general fund will be reimbursed in the amount of$50,000 from the proceeds of the next long term District note issue. This Section of this Resolution is adopted by the Board of Directors of the Midpeninsula Regional Open Space District solely for purposes of establishing compliance with the requirements of Section 1.103-18 of the Treasury Regulations. The reimbursement of this payment expenditure is consistent with District's Resolution No. Page 2 budgetary and financial circumstances. There are no funds or sources of moneys of the District that have been, or reasonably are expected to be reserved or allocated on a long-term basis, or otherwise set aside to pay the costs of this open space land acquisition project which are to be paid or reimbursed out of proceeds of indebtedness to be issued by District. The Board of Directors hereby declares District's official intent to use proceeds of indebtedness to reimburse itself for this open space land acquisition project expenditure. RESOLUTION 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 CUTTEN) The Board of Directors of the Midpeninsula Regional Open Space District does resolve as follows: Section One. The Board of Directors of the Midpeninsula Regional Open Space District does hereby accept the offer contained in that certain Purchase Agreement between Joanita V. Cutten and the Midpeninsula Regional Open Space District, a copy of which is attached hereto and by this reference made a part hereof, and authorizes the President or appropriate officers to execute the Agreement on behalf of the District. Section Two. The President of the Board of Directors or other appropriate officer is authorized to execute a Certificate of Acceptance on behalf of the District. Section Three. The General Manager of the District shall cause to be given appropriate notice of acceptance to the seller. The General Manager further is authorized to execute any and all other documents necessary or appropriate to the transaction. Section Four. The General Manager of the District is authorized to expend up to $1,000 to cover the cost of title insurance, escrow fees, and other miscellaneous costs related to this transaction. Section Five. It is intended, reasonably expected and hereby authorized that the District's general fund will be reimbursed in the amount of $50,000 from the proceeds of the next long term District note issue. This Section of this Resolution is adopted by the Board of Directors of the Midpeninsula Regional Open Space District solely for purposes of establishing compliance with the requirements of Section 1.103-18 of the Treasury Regulations. The reimbursement of this payment expenditure is consistent with District's Resolution No. page 2 budgetary and financial circumstances. There are no funds or sources of moneys of the District that have been, or reasonably are expected to be reserved or allocated on a long-term basis, or otherwise set aside to pay the costs of this open space land acquisition project which are to be paid or reimbursed out of proceeds of indebtedness to be issued by District. The Board of Directors hereby declares District's official intent to use proceeds of indebtedness to reimburse itself for this open space land acquisition project expenditure. PURCHASE AGREEMENT This Agreement is made and entered into by and between JAMES M. WELLS, hereinafter called "Seller" and the MIDPENINSULA REGIONAL OPEN SPACE DISTRICT a Public District formed pursuant to Article 3 of Chapter 3 of Division 5 of the California Public Resources Code, hereinafter called "District." RECITALS WHEREAS, Seller is the owner of an interest in certain real property, as his sole and separate property, which has open space and recreational value, located within an unincorporated area of the County of Santa Clara, and being more particularly described within the body of this Agreement; and WHEREAS, District was formed by voter initiative to solicit and receive conveyances of real property by purchase, exchange, gift, or bargain purchase for public park, recreation, scenic and open space purposes; and WHEREAS, District desires to purchase said interest in real property for open space preservation and as part of the ecological, recreational, and aesthetic resources of the midpeninsula area; and WHEREAS, Seller wishes to sell and convey all of his right, title and interest in and to said property to District, and District wishes to purchase Seller's interest in and to said property upon the terms and conditions set forth herein. AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises and covenants herein contained, the parties hereto agree as follows: 1 . Purchase' and Sale. Seller agrees to sell to District and District agrees to purchase from Seller, all of Seller's right, title and interest in and to that certain real property located within an unincorporated area of the County of Santa Clara, State of California as follows: (a) Santa Clara County Assessor's Parcels 562-10-009 and 562-10-011 , together containing approximately eighty and seventy six one hundredths (80.76) acres, more or less, and further described in the legal Purchase Agreement Wells Page 2 description contained in Preliminary Report Number 610004 from American Title Insurance Company. A copy of said Preliminary Report is attached hereto as Exhibit "A" and incorporated herein by this reference. Said property interest is to be conveyed together with any easements, rights of way, or rights of use which may be appurtenant or attributable to the aforesaid lands and any and all improvements attached or affixed thereto. Said real property and appurtenances shall hereinafter be called the "Subject Property" or the "Property". (b) Santa Clara County Assessor's Parcels 562-10-010 and 562-10-012, together containing approximately eighty and seventy six one hundredths (80.76) acres, more or less, and further described in the legal description contained in Preliminary Report Number 610067 from American Title Insurance Company. A copy of said Preliminary Report is attached hereto as Exhibit "B" and incorporated herein by this reference. Said property interest is to be conveyed together with any easements, rights of way, or rights of use which may be appurtenant or attributable to the aforesaid lands and any and all improvements attached or affixed thereto. Said real property and appurtenances shall hereinafter be called the "Quitclaimed Property". 2. Purchase Erice. The total purchase price ("Purchase Price") for all of Seller's interest in and to the Property and the Quitclaimed Property shall be Fifty Thousand and No/100 Dollars ($50,000-00), which shall be paid in cash at the "Closing" as defined in Section 3 hereof. 3. Escrow. Promptly upon execution of this Agreement, in accordance with Section 12 herein, an escrow shall be opened at American Title Insurance Company, 5510-B Almaden Expressway, San Jose, CA 95118, phone number (408) 448-1761 or other title company acceptable to District and Seller (hereinafter "Escrow Holder") through which the purchase and sale of the Property and the Quitclaimed Property shall be consummated. A fully executed copy of this Agreement shall be deposited with Escrow Holder to serve as escrow instructions to Escrow Holder; provided that the parties shall execute such additional supplementary or customary escrow instructions as Escrow Holder may reasonably require. This Agreement may be amended or supplemented by explicit additional escrow instructions signed by the parties, but the printed portion of such escrow instructions shall not supersede any inconsistent provisions contained herein. Escrow Holder is hereby appointed and instructed to deliver, pursuant to the terms of this Agreement, the documents and monies to be deposited into the escrow as herein provided, with the following terms and conditions to apply to said escrow: Purchase Agreement - Wells Page 3 (a) The time provided for in the escrow for the close thereof shall be on or before May 24, 1996, provided, however, that the parties may, by written agreement, extend the time for Closing. The term "Closing" as used herein shall be deemed to be the date when Escrow Holder causes both the Grant Deed and the Quitclaim Deed (as defined below) to be recorded in the Office of the County Recorder of Santa Clara County. (b) Seller and District shall, during the escrow period, execute any and all documents and perform any and all acts reasonably necessary or appropriate to consummate the purchase and sale pursuant to the terms of this Agreement. (c) Seller shall deposit into escrow on or before the Closing: (i) An executed and recordable Grant Deed for all of Seller's right, title and interest in and to the Property described in Exhibit "A". (ii) An executed and recordable Quitclaim Deed for all of Seller's right, title and interest in and to the Quitclaimed Property described in Exhibit "B". (d) District shall deposit into the escrow, on or before the Closing: (i) The two required Certificates of Acceptance for the Grant Deed (described in Section 3(c)), and the Quitclaim Deed (described in Section 3(c)), duly executed by District and to be dated as of the Closing; (ii) District's check payable to Escrow Holder in the amount of Fifty Thousand and No/100 Dollars ($50,000.00). (e) Seller shall pay for the escrow fees, the CLTA Standard Policy of Title Insurance, if required by District, and all recording costs and fees. All other costs or expenses not otherwise provided for in this Agreement shall be apportioned or allocated between District and Seller in the manner customary in Santa Clara County. All current property taxes on the Property shall be pro-rated through escrow between District and Seller as of the Closing based upon the latest available tax information using the customary escrow procedures. Purchase Agreement - Wells Page 4 (f) Seller shall cause American Title Insurance Company, or other title company acceptable to District and Seller, to be prepared and committed to deliver to District a CILTA Standard Policy of Title Insurance, dated as of the Closing, insuring District in the amount of $50,000.00 for the Property showing title to the Property vested in District, subject only to: (i) current real property taxes, (ii) such additional title exceptions as may be approved in writing by District prior to the Closing as determined by District in its sole and absolute discretion. (g) Escrow Holder shall, when all required funds and instruments have been deposited into the escrow by the appropriate parties and when all other conditions to Closing have been fulfilled, cause the Grant Deed, the Quitclaim Deed and the two attendant Certificates of Acceptance to be recorded in the Office of the County Recorder of Santa Clara County. Upon the Closing, Escrow Holder shall cause to be delivered to District the original of any policy of title insurance required herein, and to Seller Escrow Holder's check for the full purchase price of all of Seller's interest in the Subject Property and the Quitclaimed Property (less Seller's portion of the expenses described in Section 3(e)), and to District or Seller, as the case may be, all other documents or instruments which are to be delivered to them. In the event the escrow terminates as provided herein, Escrow Holder shall return all monies, documents or other things of value deposited in the escrow to the party depositing the same. 4. Rights gnd Liabilities of the Parties in the Event of Termination. In the event this Agreement is terminated and escrow is canceled for any reason, all parties shall be excused from any further obligations hereunder, except as otherwise provided herein. Upon any such termination of escrow, all parties hereto shall be jointly and severally liable to Escrow Holder for payment of its title and escrow cancellation charges (subject to rights of subrogation against any party whose fault may have caused such termination of escrow), and each party expressly reserves any other rights and remedies which it may have against any other party by reason of a wrongful termination or failure to close escrow. 5. Leases or Occupancy of Premises. Seller warrants that there exist no oral or written leases or rental agreements affecting all or any portion of the Subject Property. Seller further warrants and agrees to hold District free and harmless and to reimburse District for any and all costs, liability, loss, damage or expense, including costs for legal services, occasioned by reason of any such lease or rental agreement of the Property Purchase Agreement - Wells Page 5 being acquired by District, including, but not limited to, claims for relocation benefits and/or payments pursuant to California Government Code Section 7260 pd akq. Seller understands and agrees that the provisions of this paragraph shall survive the close of escrow and recordation of any Grant Deed(s). 6. Seller's Representations and Warranties. For the purpose of consummating the sale and purchase of the Property in accordance herewith, Seller makes the following representations and warranties to District, which shall survive close of escrow, each of which is material and is being relied upon by District. 6.01 Authority, Seller has the full right, power and authority to enter into this Agreement and to perform the transactions contemplated hereunder. 6.02 Valid and Binding Agreements. This Agreement and all other documents delivered by Seller to District now or at the Closing have been or will be duly authorized and executed and delivered by Seller and are legal, valid and binding obligations of Seller sufficient to convey to District all of Seller's right, title and interest in and to the Subject Property and the Quitclaimed Property described therein, and are enforceable in accordance with their respective terms and do not violate any provisions of any agreement to which Seller is a party or by which Seller may be bound or any articles, bylaws or corporate resolutions of Seller. 7. Cooperation of Seller. In the event District desires to acquire additional interests in the Subject Property and/or the Quitclaimed Property in order to ultimately acquire sole and exclusive ownership of fee title to the Subject Property and/or the Quitclaimed Property, Seller agrees to cooperate with District in acquiring exclusive Fee Title to the Subject Property and/or the Quitclaimed Property, including, without limitation, Seller's agreement to sign any and all documents necessary or appropriate to the matter, in District's opinion; and testifying, if necessary, at any court hearing or trial in which the District may bring a quiet title action, condemnation, or other request for judicial relief as deemed appropriate by District. Any and all such legal action(s) or other efforts of District to acquire exclusive fee title to the Property and/or Quitclaimed Property shall be at District's sole cost and expense. Purchase Agreement Wells Page 6 8. Integrity of Property. Except as otherwise provided herein or by express written permission granted by District, Seller shall not, between the time of Seller's execution hereof and the close of escrow, cause or allow any physical changes on the Property. Such changes shall include but not be limited to grading, excavating or other earthmoving activities, cutting or removing trees, shrubs, brush or other vegetation, and damaging or demolition of improvements or structures on the Property. 9. Hazardous Waste. (a) Definitions. The term "Hazardous Waste," as used herein, means any substance, material or other thing regulated by or pursuant to any federal, state or local environmental law by reason of its potential for harm to human health or the environment because of its flammability, toxicity, reactivity, corrosiveness or carcinogenicity. The term "Hazardous Waste" also includes without limitation, polychlorinated biphenyls, benzene, asbestos, petroleum, petroleum by-products, gas, gas liquids and lead. The term "Environmental Law" as used herein includes, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.) and the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.) (b) Representations and Warranties. For the purpose of consummating the sale and purchase of the Property, Seller makes the following representations and warranties to District, which shall survive close of escrow, each of which is material and is being relied upon by District: (i) The Property does not contain any Hazardous Waste or underground storage tanks; (ii) Seller and the Property are in compliance with all applicable federal, state and local laws, statutes, ordinances, orders, guidelines, rules and regulations pertaining to Hazardous Waste or underground storage tanks; (iii) At the time Seller acquired the Property, Seller did not know and had no reason to know that any Hazardous Waste was present, used, manufactured, handled, generated, stored, treated, discharged, buried or disposed of on, under or about the Property, or had been transported Purchase Agreement - Wells Page 7 to or from the Property; (iv) Seller has not undertaken, permitted, authorized or suffered, and will not undertake, permit, authorize or suffer the presence, use, manufacture, handling, generation, storage, treatment, discharge, release, burial or disposal on, under or about the Property of any Hazardous Waste, or the transportation to or from the Property, of any Hazardous Waste; (v) There is no pending or, to Seller's best knowledge, threatened litigation or proceedings before any administrative agency in which any person or entity alleges the presence, release, threat of release, placement on, under or about the Property, or the use, manufacture, handling, generation, storage, treatment, discharge, burial or disposal on, under or about the Property, or the transportation to or from the Property, of any Hazardous Waste; (vi) Seller has not received any notice and has no knowledge or reason to know that any governmental authority or any employee or agent thereof has determined, or threatens to determine, that there is a presence, release, threat of release, placement on, under or about the Property, or the use, manufacture, handling, generation, storage, treatment, discharge, burial or disposal on, under or about the Property, or the transportation to or from the Property, of any Hazardous Waste; (vii) There have been no communications or agreements with any governmental authority or agency (federal, state or local) or any private entity, including, but not limited to, any prior owners of the Property, relating in any way to the presence, release, threat of release, placement on, under or about the Property, or the use, manufacture, handling, generation, storage, treatment, discharge, burial or disposal on, under or about the Property, or the transportation to or from the Property, of any Hazardous Waste. (c) Indemnity. Seller shall indemnify, defend and hold harmless District from and against any legal or administrative proceedings brought against District, and all claims, liabilities losses, damages, and costs, foreseen and unforeseen, including without limitation, attorney, engineering and other professional or expert fees, directly or indirectly arising from any breach of the warranties or representations contained herein, or arising from related to or connected with the existence of any Purchase Agreement - Wells Page 8 hazardous substances of any kind on or in the Property, except when any hazardous substance contamination was caused solely by District. Seller shall be solely and completely responsible for responding to and complying with any administrative notice, order, request, or demand, or any third party claim or demand relating to potential or actual hazardous substance contamination on or in the Property, including any and all costs of remediation and cleanup, except when such contamination was caused solely by District. In addition to any remedies provided in this subsection, in the event Hazardous Waste is found to exist on the Property, District may exercise its right to bring an action against Seller to recover any cleanup, repair or remediation costs from Seller and/or any other person or persons determined to have responsibility for the presence of Hazardous Waste on the Property. 10. Waiver of Statutory Compensation. Seller and District understand and agree that Seller may be entitled to receive the fair market value for Seller's interest in the Property and the Quitclaimed Property, described in Exhibit "A" and Exhibit "B" respectively, provided for by the Federal Uniform Relocation Assistance and Real Property Acquisition Act of 1970 (Public Law 91-646), the Uniform Relocation Act Amendments of 1987 (Public Law 10017, Title IV of the Surface Transportation and Uniform Relocation Assistance Act of 1987 (101 Statutes, 246-256), and California Government Code Section 7267, and following. Seller hereby waives any and all existing and/or future rights seller may have to the fair market value of Seller's interest in the Property and the Quitclaimed Property, appraisals, etc., as provided for by said Federal Law and any corresponding California Government Code Sections. 11. Miscellaneous Provisions. 11 .01 Choice of Law. The internal laws of the State of California, regardless of any choice of law principles, shall govern the validity of this Agreement, the construction of its terms and the interpretation of the rights and duties of the parties. 11 .02 Attorneys' Fees. If either party hereto incurs any expense, including reasonable attorneys' fees, in connection with any action or proceeding instituted by reason of any default or alleged default of the other party hereunder, the party prevailing in such action or proceeding shall be entitled to recover from the other party reasonable expenses and attorneys' fees in the amount determined by the Court, whether or not such Purchase Agreement - Wells Page 9 action or proceeding goes to final judgment. In the event of a settlement or final judgment in which neither party is awarded all of the relief prayed for, the prevailing party as determined by the Court shall be entitled to recover from the other party reasonable expenses and attorneys' fees. 11 .03 Amendment and Waiver. The parties hereto may by mutual written agreement amend this Agreement in any respect. Any party hereto may: (i) extend the time for the performance of any of the obligations of the other party; (ii) waive any inaccuracies in representations and warranties made by the other party contained in this Agreement or in any documents delivered pursuant hereto; (iii) waive compliance by the other party with any of the covenants contained in this Agreement or the performance of any obligations of the other party; or (iv) waive the fulfillment of any condition that is precedent to the performance by such party of any of its obligations under this Agreement. Any agreement on the part of any party for any such amendment, extension or waiver must be in writing. 11 .04 Rights Cumulative.. Each and all of the various rights, powers and remedies of the parties shall be considered to be cumulative with and in addition to any other rights, powers and remedies which the parties may have at law or in equity in the event of the breach of any of the terms of this Agreement. The exercise or partial exercise of any right, power or remedy shall neither constitute the exclusive election thereof nor the waiver of any other right, power or remedy available to such party. 11 .05 Notices. Whenever any party hereto desires or is required to give any notice, demand, or request with respect to this Agreement (or any Exhibit hereto), each such communication shall be in writing and shall be deemed to have been validly served, given or delivered at the time stated below if deposited in the United States mail, registered or certified and return receipt requested, with proper postage prepaid, or if delivered by Federal Express or other private messenger, courier or other delivery service or sent by facsimile transmission by telex, telecopy, telegraph or cable or other similar electronic medium, addressed as indicated as follows: Purchase Agreement Wells Page 10 Seller: James M. Wells c/o Joe Beatty Real Estate-(Gary Beck) 7172 Anjou Creek Circle San Jose, CA 95120 (408) 268-4062 FAX: (408) 927-0225 District: Midpeninsula Regional Open Space District 330 Distel Circle Los Altos, CA 94022 Attn: L. Craig Britton General Manager (415) 691 -1200 FAX: (415) 691-0485 If sent by telegraph, facsimile copy or cable, a confirmed copy of such telegraphic, facsimile or cabled notice shall promptly be sent by mail (in the manner provided above) to the addressee. Service of any such communication made only by mail shall be deemed complete on the date of actual delivery as indicated by the addressee's registry or certification receipt or at the expiration of the third (3rd) business day after the date of mailing, whichever is earlier in time. Either party hereto may from time to time, by notice in writing served upon the other as aforesaid, designate a different mailing address or a different person to which such notices or demands are thereafter to be addressed or delivered. Nothing contained in this Agreement shall excuse either party from giving oral notice to the other when prompt notification is appropriate, but any oral notice given shall not satisfy the requirement of written notice as provided in this Section. 11 .06 Severabilitv. If any of the provisions of this Agreement are held to be void or unenforceable by or as a result of a determination of any court of competent jurisdiction, the decision of which is binding upon the parties, the parties agree that such determination shall not result in the nullity or unenforceability of the remaining portions of this Agreement. The parties further agree to replace such void or unenforceable provisions which will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provisions. 11.07 Counterparts, This Agreement may be executed in separate counterparts, each of which shall be deemed as an original, and when executed, separately or together, shall constitute a single original Purchase Agreement - Wells Page 11 instrument, effective in the same manner as if the parties had executed one and the same instrument. 11 .08 Waiver. No waiver of any term, provision or condition of this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or be construed as, a further or continuing waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this Agreement. 11 .09 Entire Agreement. This Agreement is intended by the parties to be the final expression of their agreement; it embodies the entire agreement and understanding between the parties hereto; it constitutes a complete and exclusive statement of the terms and conditions thereof, and it supersedes any and all prior correspondence, conversations, negotiations, agreements or understandings relating to the same subject matter. 11 .10 Time of Essence. Time is of the essence of each provision of this Agreement in which time is an element. 11.11 Survival QJ Covenants, All covenants of District or Seller which are expressly intended hereunder to be performed in whole or in part after the Closing, and all representations and warranties by either party to the other, shall survive the Closing and be binding upon and inure to the benefit of the respective parties hereto and their respective heirs, successors and permitted assigns. 11 .12 Assignment. Except as expressly permitted herein, neither party to this Agreement shall assign its rights or obligations under this Agreement to any third party without the prior written approval of the other party. 11 .13 Further Documents and Acts. Each of the parties hereto agrees to execute and deliver such further documents and perform such other acts as may be reasonably necessary or appropriate to consummate and carry into effect the transactions described and contemplated under this Agreement. 11 .14 Binding on Successors and Assigns. This Agreement and all of its terms, conditions and covenants are intended to be fully effective and binding, to the extent permitted by law, on the successors and permitted assigns of the parties hereto. Purchase Agreement - Wells Page 12 11 .15 Broker's Commission. District shall not be responsible for any real estate commission or other related costs or fees in this transaction. Seller agrees to and does hereby indemnify and hold District harmless from and against any and all costs, liabilities, losses, damages, claims, causes of action or proceedings which may result from any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of Seller in connection with this transaction. 11.16 Captions, Captions are provided herein for convenience only and they form no part of this Agreement and are not to serve as a basis for interpretation or construction of this Agreement, nor as evidence of the intention of the parties hereto. 11 .17 Pronoun References, In this Agreement, if it be appropriate, the use of the singular shall include the plural, and the plural shall include the singular, and the use of any gender shall include all other genders as appropriate. 12. Acceptance, Provided that this Agreement is executed by Seller and delivered to District on or before January 24, 1996, District shall have until midnight April 24, 1996 to accept and execute this Agreement, and during said period this instrument shall constitute an irrevocable offer by Seller to sell and convey all of Seller's right, title and interest in and to the Property to District for the consideration and under the terms and conditions herein set forth. Provided that this Agreement is accepted by District, this transaction shall close as soon as practicable in accordance with the terms and conditions set forth herein. Purchase Agreement - Wells Page 13 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers to be effective as of the date of final execution by District in accordance with the terms hereof. DISTRICT: SELLER: MIDPENINSULA REGIONAL OPEN SPACE Q DISTRICT J es M. Wells APPROVED AS TO FORM: Sue Schectman, District Counsel ME ED FOR APPROVAL: L. Craig Britton, General Manager APPROVED AND ACCEPTED: President, Board of Directors ATTEST; i District Clerk Date: Purchase Agreement - Wells Page 14 CONSENT OF SPOUSE I certify that: 1) 1 am the spouse of James M. Wells, who is described as the Seller in the foregoing Agreement to purchase all of his right, title and interest in and to the Real Property. 2) 1 hereby confirm that the real property interest which is the subject of the Purchase Agreement is my husband's separate property interest. 3) 1 have read the terms and provisions of the Purchase Agreement and consent and approve of the same. Executed on <)Ga,•� / ' 1996, at (�j s , California. Dedria K. Wells ^TL American Title Insurance Company _A Stock Company 2315 S. Bascom Avenue • Campbell, CA 95008 (408) 371-2300 • FAX (408) 371-2327 PRELIMINARY REPORT ESCROW OFFICER: Laura Higgins ORDER NO.: 610004- B Amendment TO: Joe Beaty Real Estate 7172 Anjoe Creek Circle San Jose, CA 95120 ATTN: Gary Beck YOUR REFERENCE.: 7460002 SHORT TERM RATE: NO PROPERTY ADDRESS: Assessors Parcel No's. 562-10-01 1'and 652-10-009,Los Gatos, California EFFECTIVE DATE: November 14, 1995, 07:30 A.M. The form of Policy or Policies of title insurance contemplated by this report-is: California Land Title Association Standard Coverage Policy - 1990 American Land Title Association Loan Policy (10-17-92) with A.L.T.A. Form 1 Coverage 1 . THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A Fee 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: R JAMES M.WELLS AS TO AN UNDIVIDED 5/8 INTE ESTANDMELVINJOHNGOOBERLETAND MAY BACHMAN AND EDNA SPEYER AND ALBERT SPEYER AND JEROME BACHMAN AND MIDPENNINSULA OPEN SPACE DISTRICT, A PUBLIC DISTRICT OF THE STATE OF CALIFORNIA AND WALTER BACHMAN AND LAWRENCE BACHMAN AND WELLS FARGO BANK, AS TRUSTEE OF THE TESTAMENTARY TRUST AS THEIR INTEREST MAY APPEAR 3. THE LAND REFERRED TO IN THIS REPORT IS SITUATED, IN AN UN-INCORPORATED AREA, IN THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: SEE EXHIBIT "ONE" ATTACHED HERETO AND MADE A PART HEREOF DF\jjm 12/05/95 I EXHIBIT Page�of Orden No. 610004 EXHIBIT "ONE" PARCEL ONE: LOT 4 of Section thirty-six (36), Township Eight (8) South, Range One (1) West Mount Diablo Base and Meridian. PARCEL TWO: Lot 6 of Section thirty-six (36), Township Eight (8) South, Range One (1) West Mount Diablo Base and Meridian. Assessors Parcel No: 562-10-011 and 562-10-009 EXHIBIT Pao* iof 2 Order No. 610004 AT THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 1995-1996, Assessor's Parcel Number 562-10-01 1. Code Area Number: 80-060 1st Installment: $136.77 OPEN 2nd Installment: $136.77 OPEN Land: $1,339.00 Improvements: $0.00 Exemption: $0.00 Personal Property: $0.00 Said matter affects Parcel One. 2. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 1995-1996, Assessor's Parcel Number 562-10-009. Code Area Number: 80-060 1st Installment: $136.84 OPEN 2nd Installment: $136.84 OPEN Land: $1,352.00 Improvements: $0.00 Exemption: $0.00 Personal Property: $0.00 Said matter affects Parcel Two. 3. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. 4. "Notwithstanding the insuring clauses of the policy(s), this company does not insure against loss or damage by reason of the lack of access to and from the herein described real property". 5. Any title or claim of interest of the United States of America and of the State of California or claimant thereunder in and to the land or minerals thereon based in whole or in part upon the claim that said land was known to be mineral in character at the dated of the approval of the United States Government Survey thereof, and title thereto did not pass from the United States of America. 6. Requirement that a certified copy of the decree of distribution issued on May 30, 1978 and June 27, 1978 in the Superior Court of Tulare County in the matter of Estate of James B. Cutten who acquired title as J. B. Cutten, deceased, Case No. 24886, be recorded. 7. Requirement that probate proceedings be established for Walter Bachman, deceased and Lawrence BAchman Deceased, who acquired an interest in this property from the Estate of Estelle Bachman, deceased. 8. The rights of The Heirs and Devisees of any vestee named herein (if decEeXH BIT 3 Page -3—of ITEMS: (Continued) Order No. 610004 9. The requirement that a copy of the Joanita V. Cutten Trust dated July 9, 1992 and the requirement that a Trust Certification be executed by The Trustee or Successor Trust(s) be submitted to this company prior to the close of escrow. 10. The requirement that the interest in and to this property be dealt with in it's entirety prior to this company issuing a policy of title insurance. We will not be able to insure any transaction that does not convey the interest of all the vested parties. 11. The interest of James M. Wells by virtue of the payment of property taxes from 1979 to the present. 12. Any invalidity or defect in the title of the vestees in the event that the trust referred to herein is invalid or fails to grant sufficient powers to the trustee(s) or in the event there is a lack of compliance with the terms and provisions of the trust instrument. If title is to be insured in the trustee(s) of a trust, (or if their act is to be insured), this Company will require a Trust Certification pursuant to California Probate Code Section 18100.5. The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents. 13. We find various Liens and Judgments, that are of record against persons with similar or the same name as that of our vestee(s) shown herein. In order to complete this report, this Company requires a Statement of Information to be provided for the following vestee(s), which may allow and assist elimination of some or all of said Liens and Judgments. After review of the requested Statement(s) of Information, the Company reserves the right to add additional items or make further requirements prior to the issuance of any Policy of Title Insurance. Vestee(s): JAMES M. WELLS AND MELVIN JOHN GOOBERLET AND MAY BACHMAN AND EDNA SPEYER AND ALBERT SPEYER AND JEROME BACHMAN AND MIDPENNINSULA OPEN SPACE DISTRICT, A- PUBLIC DISTRICT OF THE STATE OF CALIFORNIA AND WALTER BACHMAN AND LAWRENCE BACHMAN AND WELLS FARGO BANK END OF ITEMS Note 1. There are NO conveyances affecting said land, recorded within twenty-four (24) months of the date of this report. Note 2. Effective July 1, 1985,Sections 480.3 and 480.4 of the revenue and taxation code of the State of California requires that a "Preliminary Change of Ownership Report" be attached to each recorded document affecting a change in ownership. In the event a report is not attached to such documents, or that said report is incomplete, provisions in said Sections allow for the collection of a $20.00 fee in Lieu thereof. Note 3. The County of Santa Clara imposes an additional monument preservation fee of $10.00 for recording a deed with a Legal Description other than an entire Lot shown on a recorded final map. EXHIBIT Page k. f 4 ITEMS: (Continued) Order No. 610004 Note 4. "Section 12413.1, California Insurance Code became effective January 1, 1990. This legislation deals with the disbursement of funds deposited with any title entity acting in an escrow or subescrow capacity. The law requires that all funds be deposited and collected by the title entity's escrow and/or subescrow account prior to disbursement of any funds. Some methods of funding may subject funds to a holding period which must expire before any funds may be disbursed. In order to avoid any such delays, all fundings should be done through wire transfer, certified check or checks drawn on California financial institutions. Note 5. The charge where an order is cancelled after the issuance of the report of title, will be that amount which in the opinion of the Company is proper compensation for the services rendered or the purpose for which the report is used, but in no event shall said charge be less than the minimum amount required under Section 12404.1 of the Insurance Code of the State of California. If the report cannot be cancelled "no fee" pursuant to the provisions of said Insurance Code, then the minimum cancellation fee shall be $360.00. Note 6. California Revenue and Taxation Code 18668, effective January 1, 1991, requires that the buyer in all sales of California Real Estate, wherein the Seller shows an out of State Address, withhold 3-1/3% of the total sales price as California State Income Tax, subject to the various provisions of the law as therein contained. EXHIBIT Page�of 5 f boo' 562 •10 BK r r if for* IBC.DIABLO Ms0.1DIAN Tn)f.,R:C. �T•77iT--� �OnAt) r (opmelr.11S'KIW1f 7Sa�TP.fi.Alw 1 . 01u1J 1 I/ (40Im) 9 1(41.41AC) 16 —sly u 3tA c: '(4utAd 1 :Q1/0A[� 1 ( 10 GS.9[iC) • D" .•.� I !t 0 I , r•u¢.TOT4L � (14w1d 22 I(3 W4 21 Ik" ID ,�M1C) (S R�¢ 11 / (44VAC) 7 I(40131:) ID 141.41A Is T 2 9J (t131K) '(t13)A;J 1f4. lC.?$ILL 2 10S.04 AC. TOTAL �/ MIDPEMINSULA (1141J 7� / REGIONAL 40{71; 7 u4c i 114711•.' 1 ,(4osu•; 1 , (4o.1{lt) n (�Ia4t) 14 T }!0 (tS.RI� 147ft II A[ TOTA1 PENINSULA REGIONAL ��• /.� OPEN SPACE DISTRICT 17f.2f K 70TA1 OPEN, SPACE DIST. O Ff4: S 114, S ,(44 19 A4 12 8 I(40Hu) 13 (4s.17AC.) 4`�r �(/O.S)lC) S 1W40 uAn 12 I{I 13 -_--_- 197.ri AC.TOTAL %,oI /1Q It � INT. f I A = W.s. 1 �` SS ' (;yrRIDNCOMOW�IK[Nt�w_lC f77 1 American Title Insurance Company P Y _ A Stock Company 2315 S. Bascom Avenue • Campbell, CA 95008 (408) 371-2300 • FAX (408) 371-2327 PRELIMINARY REPORT ESCROW OFFICER: Laura Higgins ORDER NO.: 610067- A Amendment TO: Joe Beatty Real Estate 7172 Anjou Creek Circle San Jose, CA 95120 ATTN: Gary Beck SHORT TERM RATE: NO PROPERTY ADDRESS: APN 562-10-010 and 562-10-012 EFFECTIVE DATE: October 16, 1995, 07:30 A.M. The form of Policy or Policies of title insurance contemplated by this report is: California Land Title Association Standard Coverage Policy - 1990 American Land Title Association Loan Policy (10-17-92) with A.L.T.A. Form 1 Coverage 1. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A Fee 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: JOANITA V. CUTTEN, as Trustee of the Joanita V. Cutten Trust dated July 9, 1992 and JAMES M. WELLS and MELVIN JOHN GOOBERLET and MAY BACHMAN and EDNA SPEYER and ALBERT SPEYER and JEROME BACHMAN and MIDPENNINSULA OPEN SPACE DISTRICT, a public district of the State of California and WALTER BACHMAN and LAWRENCE BACHMAN and WELLS FARGO BANK, as Trustee of the Testamentary Trust as their interest may appear _ 3. THE LAND REFERRED TO IN THIS REPORT IS SITUATED, IN AN UN-INCORPORATED AREA, IN THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: SEE EXHIBIT "ONE" ATTACHED HERETO AND MADE A PART HEREOF KF\jjm 12/06/95 EXHIBIT -40 1 Page_Lof Order No. 610067 EXHIBIT "ONE" All of Lots 3 and 5 of Section 36, Township 8 South, Range 1 West, Mount Diablo Base and Meridian. Assessors Parcel No: 562-10-010 and 562-10-012 EXHIBIT 2 Page_&.of Order No. 610067 AT THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 1995-1996, Assessor's Parcel Number 562-10-010. Code Area Number: 80-060 1 st Installment: $179.26 OPEN 2nd Installment: $179.26 OPEN Land: $9,481.00 Improvements: $0.00 Exemption: $0.00 Personal Property: $0.00 2. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 1995-1996, Assessor's Parcel Number 562-10-012. Code Area Number: 80-060 1 st Installment: $178.54 OPEN 2nd Installment: $178.54 OPEN Land: $9,344.00 Improvements: $0.00 Exemption: $0.00 Personal Property: $0.00 3. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. 4. Any title or claim of interest of the United States of America of the State of California or claimant thereunder in and to the land or minerals thereon based in whole or in part upon the claim that said land was known to be mineral in character at the date of the approval of the United States Government Survey thereof, and title thereto did not pass from the United States of America. 5. The lack of a legal right of access to and from a public street or highway. 6. The Effect of a Quitclaim Deed Dated: July 5, 1944 From: May S. Bachman, a widow To: J. S. Moore Recorded: September 26, 1944, in Book 1211, Page 521, Official Records On the date of said document the grantor had no record interest in said land nor has since acquired any such interest. 7. The Effect of a Quitclaim Deed: Dated: July 5, 1944 From: May S. Bachman, a widow To: J. B. Cutten, his heirs and assigns Recorder: November 30, 1944, in Book 1225, Page 593, Official Records On the date of said document the grantor had no record interest in said land nor has since acquired any such interest. EXHIBIT .-B 3 PageofI: ITEMS: (Continued) Order No. 610067 8. The effect of a Decree of Distribution, Case No. 97924 in the Superior Court of the State of California, in and for the City and County of San Francisco, in the Matter of the Estate of Louise G. Bachman, also known as Louise Goodberlet Bachman, also known as Mrs. Water N. Bachman, deceased, distributing an undivided 1132 interest in the hereafter described property to Melvin John Goodberlet Filed: July 15, 1945, a certified copy of which Recorded: August 20, 1945, in Book 1279, Page 456 of Official Records Affects: Lots 3, 4, 5 and 6 of Section 36, T.8 S., R.1 W., M.D.B. & M. 9• The Effect of a Deed Dated: August 17, 1953 From: Jessie S. Moore now Mrs. Jessie M. Cutten To: Robert Cutten, Trustee Recorded: December 22, 1954, in Book 3039, Page 475, Official Records 10. The effect of a Decree of Distribution, Case No. 35,596, N.S. in the Superior Court of the State of California, in and for the City and County of San Francisco, in the Matter of the Estate of David S. Bachman, deceased, distributing to the following residuary legatees and devisees the hereafter described real property: May S. Bachman, an undivided five-eights part; Florine Bachman, an undivided one-eighth part; May Bachman, an undivided one-eights part; Estelle Bachman, an undivided one-eighth part; 11. The effect of the Order Appointing Trustee to Fill Vacancy, Case No. 81 179 in which the Superior Court of the State of California in and for the County of Santa Clara Dated: November 24, 1971, a Certified copy of which Recorded: June 12, 1973, in Book 0420, Page 95, Santa Clara County Records Jessie.M. Cutten is appointed Trustee in place of Robert Cutten of the Trust created by Deed recorded December 22, 1954 in Book 3039, Page 475 of Official Records of Santa Clara County and vested with all the powers vested in said Robert Cutten as Trustee. 12. The effect of the Judgement rendered in Case No. 267406 in the Superior Court of the State of California in and for the County of Santa Clara, quieting title to the hereafter described real property In Favor of: Joanita V. Cutten, as Administrator of the Estate of Robert Cutten also known as Robert C. Cutten and as Robert Charles Cutten and as Charles Robert Cutten, deceased Against: Jessie M. Cutten also known as.Jessie S. Moore and J. S. Moore, individually and as Trustee of the Trust of Robert Cutten, Trustee created by Deed dated August 17, - 1953 Dated: August 1, 1972, a Certified copy of which Recorded: June 12, 1973, in Book 0420, Page 97 of Official Records Affects: Lots 3 and 5 of Section 36, T.8 S., R. 1 W., M.D.B. & M. 13. The effect of the Judgement of Distribution, Case No. Pro R 1867 in the Superior Court of the State of California in and for the County of Contra Costa, in the Matter of the Estate of Robert Cutten, also known as Robert C. Cutten, and as Robert Charles Cutten and as Charles Robert Cutten, deceased, distributing the hereinafter described real property to Joanita V. Cutten Dated: May 25, 1973, a certified copy of which Recorded: June 12, 1973, n Book 0420, Page 99 of Official Records Affects: Lots 3 and 5 of Section 36, T.8 S., R. 1 W., M.D.B. & M. EXHIBIT of 4 Page � . . ITEMS: (Continued) Order No. 61OOS7 14. A covenant and agreement entitled ~Land Conservation Agreement, cornnnon|y known as "Agricultural Preserve"" Executed by: The County ofSanta Clara In favor of: J.B. Cuxxen Recorded: February 25' 1975. Book B292' Page 633' of Official Records Reference ishereby made to said document for full particulars. � 15. The Effect nf that certain "Resolution Altering Boundaries mf the Agricultural Preserve in ' the County oYSanta Clara" Recorded: K8aroh7, 1976 in 800kB31O. Pmge43' Official Records � and rerecorded April 1' 1975' book B342' pago482 ' of Official Records � 16. The Effect of the Judgment of Final Distribution Case No. 24886 in the Superior Court of the State of California in and for the County of Tulare in the Matter of the Estate of James B. Cu|zen, deceased, distributing the hereafter described real property to Jarnaa Monk VVeUo as executor ofthe vxiU of Marjorie M. <�u�en deceased | Dated: June37, 1978 ' ' | � Affects: Lots 4and 6 of Section 36, T. 8 S- R. 1 W., M.D.B. & M. Said document hmunrecorded 17' The effect of the Judgment of Final Distribution Case No. 35488 in the Superior Court of the State of California in and for the County of Tulare in the Matter of the Estate of Marjorie K8pnkCutten' deceased distributing the hereinafter described real property to James Monk Wells Dated: Auguot2' 7879 Recorded: Novennbmr9, 1979' in Book E 933, Page 17, Official Records And also recorded: January 2' 1981' in Book-17827, Poge628' Official Records Affects: Lots 4and 6, Section 36, T. @ S', R. 1 VV., M. D. B. 8k M. 18' The effect of the Decree mf C>iwtdbution, Came No. 134116 in the Superior Court ofthe State of California in and for the County of San Francimco, in the Matter ofthe Estate of Dorothy M. Bachman, also known as Mrs. Lawrence Bachman and Dorothy Banhrnan deceased, distributing the hereinafter described real property to Wells Fargo Bank, a� ` Trustee of the TmstannentaryTrust Dated: July 20. 1958 Recorded: KMarch5, 1980, in BookL277, Pagm846, Official Records - � � � � � Q��'��QU�N7F � _ ITEMS: (Continued) Order No. 610067 19. The effect of the Decree of Distribution Case No. 97, 407 in the Superior Court of the State of California in and for the County of San Francisco, in the Matter of the Estate of May E. Bachman, also known as May Eleanor Bachman, deceased, distributing the hereinafter described real property to Dorothy M. Bachman, Two-fifths (2/5) Edna Speyer, One-fifth (1/5) Albert Speyer, One-fifth (1/5) Jerome Bachman, One-tenths (1/10); One-tenths (1/10) hereof to the following named charities in the following proportions to-wit; Four-tenths (4/10) thereof to the Jewish National Welfare Fund; Two-tenths (2/10) to Mount Zion Hospital, San Francisco; One-tenth 0/10) thereof to the San Francisco Chapter of the Seeing Eye Fund, National Council of Jewish Women; One-tenth (1/10) thereof to the Blind Association of San Francisco One-tenth (1/10) thereof to the Society for prevention of cruelty to animals, San Francisco; One-tenth 0/10) thereof to.the Shriners Hospital for crippled children Dated: September 21, 1945 Recorded: March 5, 1990 in Book L277, Page 956, Official Records 20. The effect of the Decree of Distribution Case No. 94,735 in the Superior Court in and for the County of San Francisco, in the Matter of the Estate of Florine Bachman, deceased, j distributing the hereinafter described real property to May Eleanor Bachman Dated: February 5, 1945 Recorded: March 5, 1990, in Book L277, Page 967, Official Records 21. The effect of the Decree of Distribution, Case No. 51173 in the Superior Court in and for the County of San Francisco, in the Matter of the Estate of Estelle Bachman, deceased, distributingthe hereinafter described real r property to: An undivided one-fourth to Florine Bachman, An undivided one-fourth to May Bachman, An undivided one-fourth to Walter N. Bachman, An undivided one-fourth to Lawrence Bachman Dated: April 8, 1936 Recorded: March 5, 1990 in Book L277,,Page 976, Official Records 22. The Effect of a Transfer Grant Deed Dated: July 9, 1992 From: Joanita V. Cutten To: Joanita V. Cutten, as Trustee of the Joanita V. Cutten Family Trust dated July 9, 1992 Recorded: July 27, 1992, in Book M299, Page 0729, Official Records Said matter affects all of Lots 3 and 5 of Section 36, Township 8 South, Range 1 West, Mount Diablo Base and Meridian. 23. Requirement that a certified copy of the Decree of Distribution issued on May 30, 1975 and June 27, 1978 in the Superior Court of Tulare County in the Matter of the Estate of James B. Cutten who acquired title as J. B. Cutten, deceased, Case No. 24885, be recorded. EXHIBIT 6 Page of it ITEMS: (Continued) Order No. 81OO67 2+' Requirement that probate proceedings be established for Walter Bachrnan, deceased and Lawrence Bachman, deceased, who acquired an interest in this property from the estate of Estelle Bachman, deceased. � 26. We find various Liens and Judgnmmnts, that are of record against persons with similar or � the same name as that of our veozae(m) shown herein. In order to nonnp|exo this report, this Company requires a Statement of Information to be provided for the following xaa,oa(a)' which may a||ovv and assist elimination of some or all of said Liens and Judgments. After review of the requested Statement(s) of Information, the C�rnpan' reserves the right to add additional items or make further requirements prior to the issuance ofany Policy of Title Insurance. vestne(m}: Joanita V. Cutten 26' Any invalidity or defect in the tide of thaveotoes in the event that the trust referred to herein is invalid or fails to grant sufficient powers to the trustee(s) or in the event there in a |anh of compliance with the tanna and provisions of the trust instrument. If title is to be insured in the trustee(s) of a trust, (or if their act is to be insured) this Company will require a Trust Certification pursuant to California Probate Code Section 18100'5' The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents. ''' � 27' Terms and Provisions of any unrecorded leases, ino|uding, but not limited to, any options to purchase or rights of first refusal contained therein. 28' Matters which may be disclosed by an inspection and/or by a oornectALTA/ACSM Land Title Survey of said land that is satisfactory to this Company, and/or by inquiry of the parties in possession thereof. An inspection of said land has been ordered; upon its completion the Company reserves the right to except additional items and/or make additional requirements. � � � 29' The community interest of the spouse of the vmmtae named below. � xestaa: Joanita V. Cutten � END OF RtMS _ Nota1' There are NO conveyances affecting said land, recorded within twenty-four (24) months of the date of this report. Nmtw2- "Section 12413.1, California Insurance Code became effective January 1, 1990' This legislation deals with the disbursement of funds deposited with any title entity acting in an escrow ormubesorovvcapacity. The law requires that all funds be deposited and collected by the title entity's emcmmvv and/orsubemorovv account � to disbursement of any funds. �qmnwnnetho�mof �un�in� mn�� mu��w�tfun�atma�'—i- i d which t ' holding period vv mnan expire before any funds mnay be disbursed. ' 1n order tp ' .md any such da|my� aU'yu.ding- � should be done through wire transfer, certified check or checks drawn onCalifornia financial institutions. ��DU�Dl[ u~��"�"^~~ ~ ig 7 Page of � � 1OpR ..yr , 562 10 _ BK \�" - 575 CO) I r.Dulla MSIUDIAN I T•.lS..Rt[. • � T7{!S•AI`K TRS S.kIW. , (4u7Ad I (4LjIW � bl4DAd�IT r (�� Ic (ZL04A4 I l 1(4al4AU 9 t(41.41U) 16 —lei, C ?C (now pow4() ;(3t10Ad :1 1(4d" to :(10.14U) IS ( ) n (auAd 7 �(40..91X) 10 141.41AC. 15 O 4 (ic)4c} 7 •• 2 1 AZ '(LL77A;1 17a, /AT.TOTAL MIDPENINSUTA 3 � m.e4 TurAL Ac � 1 ' �� ; (114Ac1 7� • �� REdIONAU --- ----- f=--- �� AK. 3 nk. 11 (l' '(16.40,K) 11 , 7�------ .----r------------ k41n� (44.774C, 3 �;(4411 A.) I! it II p 1 f JO (rs�r� 4 214.1I M.TOTAL MIDPENINSULA REGIONAL %• OPEN Ir! SPACE DISTRICT � 171.2!AC TOTAL OPEN, SPACE 013T. ; Z - 31 40.1lAC 4 40.1k l 40.IW 12 i(40.1l4Q A (41.17AL) 4 ��l -_-- --�-- •�-------__ 117.ri AC.TOTAL t 00 R1 �� Jt INT. t t t 0 � e. GO ""urr � ss O.yy oft"[ M,7. [rAN0 •01 ilctc ur •..o µ1L�Jl Ci4rtSW1 A-:_i'� PURCHASE AGREEMENT This Agreement is made and entered into by and between Joanita V. Cutten, Trustee of the Joanita V. Cutten Trust dated July 9, 1992, hereinafter called "Seller" and the MIDPENINSULA REGIONAL OPEN SPACE DISTRICT a Public District formed pursuant to Article 3 of Chapter 3 of Division 5 of the California Public Resources Code, hereinafter called "District." RECITALS WHEREAS, Seller is the owner of an interest in certain real property, which has open space and recreational value, located within an unincorporated area of the County of Santa Clara, and being more particularly described within the body of this Agreement; and WHEREAS, District was formed by voter initiative to solicit and receive conveyances of real property by purchase, exchange, gift, or bargain purchase for public park, recreation, scenic and open space purposes; and WHEREAS, District desires to purchase said interest in real property for open space preservation and as part of the ecological, recreational, and aesthetic resources of the midpeninsula area; and WHEREAS, Seller wishes to sell and convey all of her right, title and interest in and to said property to District, and District wishes to purchase Seller's interest in and to said property upon the terms and conditions set forth herein. AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises and covenants herein contained, the parties hereto agree as follows: 1 . Purchase an-d Sale. Seller agrees to sell to District and District agrees to purchase from Seller, all of Seller's right, title and interest in and to that certain real property located within an unincorporated area of the County of Santa Clara, State of California as follows: (a) Santa Clara County Assessor's Parcels 562-10-010 and 562-10-012, together containing approximately eighty and seventy six one hundredths (80.76) acres, more or less, and further described in the legal Purchase Agreement - Cutten Page 2 description contained in Preliminary Report Number 610067 from American Title Insurance Company. A copy of said Preliminary Report is attached hereto as Exhibit "A" and incorporated herein by this reference. Said property interest is to be conveyed together with any easements, rights of way, or rights of use which may be appurtenant or attributable to the aforesaid lands and any and all improvements attached or affixed thereto. Said real property and appurtenances shall hereinafter be called the "Subject Property" or the "Property". (b) Santa Clara County Assessor's Parcels 562-10-009 and 562-10-011 , together containing approximately eighty and seventy six one hundredths (80.76) acres, more or less, and further described in the legal description contained in Preliminary Report -Number 610004 from American Title Insurance Company. A copy of said Preliminary Report is attached hereto as Exhibit "B" and incorporated herein by this reference. Said property interest is to be conveyed together with any easements, rights of way, or rights of use which may be appurtenant or attributable to the aforesaid lands and any and all improvements attached or affixed thereto. Said real property and appurtenances shall hereinafter be called the "Quitclaimed Property". 2. Purchase Price. The total purchase price ("Purchase Price") for all of Seller's interest in and to the Property and the Quitclaimed Property shall be Fifty Thousand and No/100 Dollars ($50,000.00), which shall be paid in cash at the "Closing" as defined in Section 3 hereof. 3. Escrow. Promptly upon execution of this Agreement, in accordance with Section 12 herein, an escrow shall be opened at American Title Insurance Company, 5510-B Almaden Expressway, San Jose, CA 95118, phone number (408) 448-1761 or other title company acceptable to District and Seller (hereinafter "Escrow Holder") through which the purchase and sale of the Property and the Quitclaimed Property shall be consummated. A fully executed copy of this Agreement shall be deposited with Escrow Holder to serve as escrow instructions to Escrow Holder; provided that the parties shall execute such additional supplementary or customary escrow instructions as Escrow Holder may reasonably require. This Agreement may be amended or supplemented by explicit additional escrow instructions signed by the parties, but the printed portion of such escrow instructions shall not supersede any inconsistent provisions contained herein. Escrow Holder is hereby appointed and instructed to deliver, pursuant to the terms of this Agreement, the documents and monies to be deposited into the escrow as herein provided, with the following terms and conditions to apply to said escrow: f Purchase Agreement - Cutten Page 3 (a) The time provided for in the escrow for the close thereof shall be on or before May 24, 1996, provided, however, that the parties may, by written agreement, extend the time for Closing. The term "Closing" as used herein shall be deemed to be the date when Escrow Holder causes both the Grant Deed and the Quitclaim Deed (as defined below) to be recorded in the Office of the County Recorder of Santa Clara County. (b) Seller and District shall, during the escrow period, execute any and all documents and perform any and all acts reasonably necessary or appropriate to consummate the purchase and sale pursuant to the terms of this Agreement. (c) Seller shall deposit into escrow on or before the Closing: (i) An executed and recordable Grant Deed for all of Seller's right, title and interest in and to the Property described in Exhibit "A". (ii) An executed and recordable Quitclaim Deed for all of Seller's right, title and interest in and to the Quitclaimed Property described in Exhibit "B". (d) District shall deposit into the escrow, on or before the Closing: (i) The two required Certificates of Acceptance for the Grant Deed (described in Section 3(c)), and the Quitclaim Deed (described in Section 3(c)), duly executed by District and to be dated as of the Closing; (ii) District's check payable to Escrow Holder in the amount of Fifty Thousand and No/100 Dollars ($50,000.00). (e) Seller shall pay for the escrow fees, the CILTA Standard Policy of Title Insurance, if required by District, and all recording costs and fees. All other costs or expenses not otherwise provided for in this Agreement shall be apportioned or allocated between District and Seller in the manner customary in Santa Clara County. All current property taxes on the Property shall be pro-rated through escrow between District and Seller as of the Closing based upon the latest available tax information using the customary escrow procedures. Purchase Agreement - Cutten Page 4 (f) Seller shall cause American Title Insurance Company, or other title company acceptable to District and Seller, to be prepared and committed to deliver to District a CILTA Standard Policy of Title Insurance, dated as of the Closing, insuring District in the amount of $50,000.00 for the Property showing title to the Property vested in District, subject only to: (i) current real property taxes, (ii) such additional title exceptions as may be approved in writing by District prior to the Closing as determined by District in its sole and absolute discretion. (g) Escrow Holder shall, when all required funds and instruments have been deposited into the escrow by the appropriate parties and when all other conditions to Closing have been fulfilled, cause the Grant Deed, the Quitclaim Deed and the two attendant Certificates of Acceptance to be recorded in the Office of the County Recorder of Santa Clara County. Upon the Closing, Escrow Holder shall cause to be delivered to District the original of any policy of title insurance required herein, and to Seller Escrow Holder's check for the full purchase price of all of Seller's interest in the Subject Property and the Quitclaimed Property (less Seller's portion of the expenses described in Section 3(e)), and to District or Seller, as the case may be, all other documents or instruments which are to be delivered to them. In the event the escrow terminates as provided herein, Escrow Holder shall return all monies, documents or other things of value deposited in the escrow to the party depositing the same. 4. Rights and Liabilities of the Parties in the Event of Termination. In the event this Agreement is terminated and escrow is canceled for any reason, all parties shall be excused from any further obligations hereunder, except as otherwise provided herein. Upon any such termination of escrow, all parties hereto shall be jointly and severally liable to Escrow Holder for payment of its title and escrow cancellation charges (subject to rights of subrogation against any party whose fault may have caused such termination of escrow), and each party expressly reserves any other rights and remedies which it may have against any other party by reason of a wrongful termination or failure to close escrow. 5. Leases or Occupancy of Premises. Seller warrants that there exist no oral or written leases or rental agreements affecting all or any portion of the Subject Property. Seller further warrants and agrees to hold District free and harmless and to reimburse District for any and all costs, liability, loss, damage or expense, including costs for legal services, occasioned by reason of any such lease or rental agreement of the Property Purchase Agreement - Cutten Page 5 being acquired by District, including, but not limited to, claims for relocation benefits and/or payments pursuant to California Government Code Section 7260 !L aaa. Seller understands and agrees that the provisions of this paragraph shall survive the close of escrow and recordation of any Grant Deed(s). 6. Seller's Representations and Warranties. For the purpose of consummating the sale and purchase of the Property in accordance herewith, Seller makes the following representations and warranties to District, which shall survive close of escrow, each of which is material and is being relied upon by District. 6.01 Authority, Seller has the full right, power and authority to enter into this Agreement and to perform the transactions contemplated hereunder. 6.02 Valid and Binding Agreements. This Agreement and all other documents delivered by Seller to District now or at the Closing have been or will be duly authorized and executed and delivered by Seller and are legal, valid and binding obligations of Seller sufficient to convey to District all of Seller's right, title and interest in and to the Subject Property and the Quitclaimed Property described therein, and are enforceable in accordance with their respective terms and do not violate any provisions of any agreement to which Seller is a party or by which Seller may be bound or any articles, bylaws or corporate resolutions of Seller. 7. Cooperation of Seller. In the event District desires to acquire additional interests in the Subject Property and/or the Quitclaimed Property in order to ultimately acquire sole and exclusive ownership of fee title to the Subject Property and/or the Quitclaimed Property, Seller agrees to cooperate with District in acquiring exclusive Fee Title to the Subject Property and/or the Quitclaimed Property, including, without limitation, Seller's agreement to sign any and all documents necessary or appropriate to the matter, in District's opinion; and testifying, if necessary, at any court hearing or trial in which the District may bring a quiet title action, condemnation, or other request for judicial relief as deemed appropriate by District. Any and all such legal action(s) or other efforts of District to acquire exclusive fee title to the Property and/or Quitclaimed Property shall be at District's sole cost and expense. Purchase Agreement - Cutten Page 6 8. Integrity of Property. Except as otherwise provided herein or by express written permission granted by District, Seller shall not, between the time of Seller's execution hereof and the close of escrow, cause or allow any physical changes on the Property. Such changes shall include but not be limited to grading, excavating or other earthmoving activities, cutting or removing trees, shrubs, brush or other vegetation, and damaging or demolition of improvements or structures on the Property. 9. Hazardous Waste. (a) Definitions. The term "Hazardous Waste," as used herein, means any substance, material or other thing regulated by or pursuant to any federal, state or local environmental law by reason of its potential for harm to human health or the environment because of its flammability, toxicity, reactivity, corrosiveness or carcinogenicity. The term "Hazardous Waste" also includes without limitation, polychlorinated biphenyls, benzene, asbestos, petroleum, petroleum by-products, gas, gas liquids and lead. The term "Environmental Law" as used herein includes, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Section 9601 et seq.) and the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.) (b) Representations and Warranties. For the purpose of consummating the sale and purchase of the Property, Seller makes the following representations and warranties to District, which shall survive close of escrow, each of which is material and is being relied upon by District: (i) The Property does not contain any Hazardous Waste or underground storage tanks; (ii) Seller and the Property are in compliance with all applicable federal, state and local laws, statutes, ordinances, orders, guidelines, rules and regulations pertaining to Hazardous Waste or underground storage tanks; (iii) At the time Seller acquired the Property, Seller did not know and had no reason to know that any Hazardous Waste was present, used, manufactured, handled, generated, stored, treated, discharged, buried or disposed of on, under or about the Property, or had been transported Purchase Agreement - Cutten Page 7 to or from the Property; (iv) Seller has not undertaken, permitted, authorized or suffered, and will not undertake, permit, authorize or suffer the presence, use, manufacture, handling, generation, storage, treatment, discharge, release, burial or disposal on, under or about the Property of any Hazardous Waste, or the transportation to or from the Property, of any Hazardous Waste; (v) There is no pending or, to Seller's best knowledge, threatened litigation or proceedings before any administrative agency in which any person or entity alleges the presence, release, threat of release, placement on, under or about the Property, or the use, manufacture, handling, generation, storage, treatment, discharge, burial or disposal on, under or about the Property, or the transportation to or from the Property, of any Hazardous Waste; (vi) Seller has not received any notice and has no knowledge or reason to know that any governmental authority or any employee or agent thereof has determined, or threatens to determine, that there is a presence, release, threat of release, placement on, under or about the Property, or the use, manufacture, handling, generation, storage, treatment, discharge, burial or disposal on, under or about the Property, or the transportation to or from the Property, of any Hazardous Waste; (vii) There have been no communications or agreements with any governmental authority or agency (federal, state or local) or any private entity, including, but not limited to, any prior owners of the Property, relating in any way to the presence, release, threat of release, placement on, under or about the Property, or the use, manufacture, handling, generation, storage, treatment, discharge, burial or disposal on, under or about the Property, or the transportation to or from the Property, of any Hazardous Waste. (c) Indemnity. Seller shall indemnify, defend and hold harmless District from and against any legal or administrative proceedings brought against District, and all claims, liabilities losses, damages, and costs, foreseen and unforeseen, including without limitation, attorney, engineering and other professional or expert fees, directly or indirectly arising from any breach of the warranties or representations contained herein, or arising from related to or connected with the existence of any , II Purchase Agreement - Cutten Page 8 hazardous substances of any kind on or in the Property, except when any hazardous substance contamination was caused solely by District. Seller shall be solely and completely responsible for responding to and complying with any administrative notice, order, request, or demand, or any third party claim or demand relating to potential or actual hazardous substance contamination on or in the Property, including any and all costs of remediation and cleanup, except when such contamination was caused solely by District. In addition to any remedies provided in this subsection, in the event Hazardous Waste is found to exist on the Property, District may exercise its right to bring an action against Seller to recover any cleanup, repair or remediation costs from Seller and/or any other person or persons determined to have responsibility for the presence of Hazardous Waste on the Property. 10. Waiver of Statutory Compensation. Seller and District understand and agree that Seller may. be entitled to receive the fair market value for Seller's interest in the Property and the Quitclaimed Property, described in Exhibit "A" and Exhibit "B" respectively, provided for by the Federal Uniform Relocation Assistance and Real Property Acquisition Act of 1970 (Public Law 91-646), the Uniform Relocation Act Amendments of 1987 (Public Law 10017, Title IV of the Surface Transportation and Uniform Relocation Assistance Act of 1987 (101 Statutes, 246-256), and California Government Code Section 7267, and following. Seller hereby waives any and all existing and/or future rights seller may have to the fair market value of Seller's interest in the Property and the Quitclaimed Property, appraisals, etc., as provided for by said Federal Law and any corresponding California Government Code Sections. 11. Miscellaneous Provisions. 11 .01 Choice of Law. The internal laws of the State of California, regardless of any choice of law principles, shall govern the validity of this Agreement, the construction of its terms and the interpretation of the rights and duties of the parties. 11 .02 Attorneys' Fees. If either party hereto incurs any expense, including reasonable attorneys' fees, in connection with any action or proceeding instituted by reason of any default or alleged default of the other party hereunder, the party prevailing in such action or proceeding shall be entitled to recover from the other party reasonable expenses and attorneys' fees in the amount determined by the Court, whether or not such . .............. _ __ Purchase Agreement - Cutten Page 9 action or proceeding goes to final judgment. In the event of a settlement or final judgment in which neither party is awarded all of the relief prayed for, the prevailing party as determined by the Court shall be entitled to recover from the other party reasonable expenses and attorneys' fees. 11.03 Amendment and Waiver. The parties hereto may by mutual written agreement amend this Agreement in any respect. Any party hereto may: (i) extend the time for the performance of any of the obligations of the other party; (ii) waive any inaccuracies in representations and warranties made by the other party contained in this Agreement or in any documents delivered pursuant hereto; (iii) waive compliance by the other party with any of the covenants contained in this Agreement or the performance of any obligations of the other party; or (iv) waive the fulfillment of any condition that is precedent to the performance by such party of any of its obligations under this Agreement. Any agreement on the part of any party for any such amendment, extension or waiver must be in writing. 11.04 Rights Cumulative. Each and all of the various rights, powers and remedies of the parties shall be considered to be cumulative with and in addition to any other rights, powers and remedies which the parties may have at law or in equity in the event of the breach of any of the terms of this Agreement. The exercise or partial exercise of any right, power or remedy shall neither constitute the exclusive election thereof nor the waiver of any other right, power or remedy available to such party. 11 .05 Notices. Whenever any party hereto desires or is required to give any notice, demand, or request with respect to this Agreement (or any Exhibit hereto), each such communication shall be in writing and shall be deemed to have been validly served, given or delivered at the time stated below if deposited in the United States mail, registered or certified and return receipt requested, with proper postage prepaid, or if delivered by Federal Express or other private messenger, courier or other delivery service or sent by facsimile transmission by telex, telecopy, telegraph or cable or other similar electronic medium, addressed as indicated as follows: Purchase Agreement - Cutten Page 10 Seller: Joanita V. Cutten, Trustee c/o Associated Brokers (Toney E. Lopez) P.O.Box 33327 Las Vegas, NV 89133-3327 1 - 800-2 -95 1 933 FAX: District: Midpeninsula Regional Open Space District 330 Distel Circle Los Altos, CA 94022 Attn: L. Craig Britton General Manager (415) 691 -1200 FAX: (415) 691-0485 If sent by telegraph, facsimile copy or cable, a confirmed copy of such telegraphic, facsimile or cabled notice shall promptly be sent by mail (in the manner provided above) to the addressee. Service of any such communication made only by mail shall be deemed complete on the date of actual delivery as indicated by the addressee's registry or certification receipt or at the expiration of the third (3rd) business day after the date of mailing, whichever is earlier in time. Either party hereto may from time to time, by notice in writing served upon the other as aforesaid, designate a different mailing address or a different person to which such notices or demands are thereafter to be addressed or delivered. Nothing contained in this Agreement . shall excuse either party from giving oral notice to the other when prompt notification is appropriate, but any oral notice given shall not satisfy the requirement of written notice as provided in this Section. 11 .06 Severability. If any of the provisions of this Agreement g ent are held to be void or unenforceable by or as a result of a determination of any court of competent jurisdiction, the decision of which is binding upon the parties, the parties agree that such determination shall not result in the nullity or unenforceability of the remaining portions of this Agreement. The parties further agree to replace such void or unenforceable provisions which will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provisions. 11.07 Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed as an original, and when executed, separately or together, shall constitute a single original Purchase Agreement - Cutten Page 11 instrument, effective in the same manner as if the parties had executed one and the same instrument. 11 .08 Waiver. No waiver of any term, provision or condition of this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or be construed as, a further or continuing waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this Agreement. 11 .09 Entire Agreement. This Agreement is intended by the parties to be the final expression of their agreement; it embodies the entire agreement and understanding between the parties hereto; it constitutes a complete and exclusive statement of the terms and conditions thereof, and it supersedes any and all prior correspondence, conversations, negotiations, agreements or understandings relating to the same subject matter. 11 .10 Time of Essence. Time is of the essence of each provision of this Agreement in which time is an element. 11-11 Survival 210ovenants,' All covenants of District or Seller which are expressly intended hereunder to be performed in whole or in part after the Closing, and all representations and warranties by either party to the other, shall survive the Closing and be binding upon and inure to the benefit of the respective parties hereto and their respective heirs, successors and permitted assigns. 11 .12 Assignment. Except as expressly permitted herein, neither party to this Agreement shall assign its rights or obligations under this Agreement to any third party without the prior written approval of the other party. 11 .13 Further Documents and Acts. Each of the parties hereto agrees to execute and deliver such further documents and perform such other acts as may be reasonably necessary or appropriate to consummate and carry into effect the transactions described and contemplated under this Agreement. 11 .14 Binding_ on Successors and Assigns. This Agreement and all of its terms, conditions and covenants are intended to be fully effective and binding, to the extent permitted by law, on the successors and permitted assigns of the parties hereto. Purchase Agreement - Cutten Page 12 11 .15 Br-Qker's -Commission. District shall not be responsible for any real estate commission or other related costs or fees in this transaction. Seller agrees to and does hereby indemnify and hold District harmless from and against any and all costs, liabilities, losses, damages, claims, causes of action or proceedings which may result from any broker, agent or finder, licensed or otherwise, claiming through, under or by reason of the conduct of Seller in connection with this transaction. 11 .16 Captions. Captions are provided herein for convenience only and they form no part of this Agreement and are not to serve as a basis for interpretation or construction of this Agreement, nor as evidence of the intention of the parties hereto. 11 .17 PLQ—nomn References, In this Agreement, if it be appropriate, the use of the singular shall include the plural, and the plural shall include the singular, and the use of any gender shall include all other genders as appropriate. 12. A&cep tan ce. Provided that this Agreement is executed by Seller and delivered to District on or before March 20, 1996, District shall have until midnight April 24, 1996 to accept and execute this Agreement, and during said period this instrument shall constitute an irrevocable offer by Seller to sell and convey all of Seller's right, title and interest in and to the Property to District for the consideration and under the terms and conditions herein set forth. Provided that this Agreement is accepted by District, this transaction shall close as soon as practicable in accordance with the terms and conditions set forth herein. Purchase Agreement - Cutten Page 13 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers to be effective as of the date of final execution by District in accordance with the terms hereof. DISTRICT: SELLER: MIDPENINSULA REGIONAL OPEN SPACE DISTRICT oanita V. Cutten Truste APPROVED AS TO FORM: e Date: I�vy��1SL��rr� Sue Schectman, District Counsel R DED FOR APPROVAL: L. Crai Britton, General Manager APPROVED AND ACCEPTED: President, Board of Directors ATTEST: District Clerk Date: i American Title insurance Company A Stock Company 2315 S. Bascom Avenue • Campbell, CA 95008 (408) 371-2300 0 FAX (408) 371-2327 PRELIMINARY REPORT ESCROW OFFICER: Laura Higgins ORDER NO.: 610067 - A Amendment TO: Joe Beatty Real Estate 7172 Anjou Creek Circle San Jose, CA 95120 ATTN: Gary Beck SHORT TERM RATE: NO PROPERTY ADDRESS: APN 562-10-010 and 562-10-012 EFFECTIVE DATE: October 16, 1995, 07:30 A.M. The form of Policy or Policies of title insurance contemplated by this report is: California Land Title Association Standard Coverage Policy - 1990 American Land Title Association Loan Policy (10-17-92) with A.L.T.A. Form 1 Coverage 1. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A Fee 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: JOANITA V. CUTTEN, as Trustee of the Joanita V. Cutten Trust dated July 9, 1992 and JAMES M. WELLS and MELVIN JOHN GOOBERLET and MAY BACHMAN and EDNA SPEYER and ALBERT SPEYER and JEROME BACHMAN and MIDPENNINSULA OPEN SPACE DISTRICT, a public district of the State of California and WALTER BACHMAN and LAWRENCE BACHMAN and WELLS FARGO BANK as Trustee of the Testamentary Tr ust as their in terest ma y appear _ 3. THE LAND REFERRED TO 1N THIS REPORT IS SITUATED, IN AN UN-INCORPORATED AREA, IN THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: SEE EXHIBIT "ONE" ATTACHED HERETO AND MADE A PART HEREOF KF\jjm 12/06/95 i EXHIBIT Page of Order No. 610067 EXHIBIT "ONE" All of Lots 3 and 5 of Section 36, Township 8 South, Range 1 West, Mount Diablo Base and Meridian. Assessors Parcel No: 562-10-010 and 562-10-012 I EXHIBIT 2 Page_?e-.of Order No. 610067 AT TH E DA TE HERE OF EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 1995-1996, Assessor's Parcel Number 562-10-010. Code Area Number: 80-060 1 st Installment: $179.26 OPEN 2nd Installment: $179.26 OPEN Land: $9,481 .00 Improvements: $0.00 Exemption: $0.00 Personal Property: $0.00 2. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 1995-1996, Assessor's Parcel Number 562-10-012. Code Area Number: 80-060 1st Installment: $178.54 OPEN 2nd Installment: $178.54 OPEN Land: $9,344.00 Improvements: $0.00 Exemption: $0.00 Personal Property: $0.00 3. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. 4. Any title or claim of interest of the United States of America of the State of California or claimant thereunder in and to the land or minerals thereon based in whole or in part upon the claim that said land was known to be mineral in character at the date of the approval of the United States Government Survey thereof, and title thereto did not pass from the United States of America. 5. The lack of a legal right of access to and from a public street or highway. 6. The Effect of a Quitclaim Deed - Dated: July 5, 1944 From: May S. Bachman, a widow To: J. S. Moore Recorded: September 26, 1944, in Book 1211, Page 521, Official Records On the date of said document the grantor had no record interest in said land nor has since acquired any such interest. 7. The Effect of a Quitclaim Deed: Dated: July 5, 1944 From: May S. Bachman, a widow To: J. B. Cutten, his heirs and assigns Recorder: November 30, 1944, in Book 1225, Page 593, Official Records On the date of said document the grantor had no record interest in said land nor has since acquired any such interest. EXHIBIT 3 Page—A-0f:jg: ITEMS: (Continued) Order No. G1OOG7 � 8' The effect ofa Decree of Distribution, Came No. 97824 in the Superior Court of the State of California, in and for the City and County of San Francisco, in the &4auerofthe Estate | of Louise G. Bachman, also known as LouimeGuodbede, Bachman, also knovvnaoK8na / Water N. Bachman, deceased, distributing an undivided 1/33 interest in the hereafter ' described property to Melvin John Goodbedat Filed: July 15, 1945. a certified copy of which � Recorded: Auguot2O' 1945. in Book 1279' Page 4GSof Official Records ! Affects: Lots 3, 4. 5 and 8 of Section 36' T.8 S.' R.1 VV.' M.D.B. 0& M. 9. The Effect ofa Deed � Dated: Auguot17' 1953 From: Jessie S. Moore now Mrs. Jessie M. Cutten To: Robert Cuoen, Trustee Recorded: December 22' 1954' in Book 3038' Page 475' Official Records � 10' The effect of a Decree of Distribution, Case No. 35,596, N.S. in the Superior Court of the State of California, in and for the City and County of San Francisco, in the KXa�erofthe | EatateofOaoidS. 8achmnan' denaaoad' dismhbudngtmthwfoUovv|nQ residuary legatees and | devisees the hereafter described real property: May3. Bachman, an undivided five-eights part; F|orineBanhrnan, an undivided one-eighth part; May Bachman, an undivided one-eights part; | Estelle Bachman, an undivided one-eighth part; | � ��. The effect of the Order Appointing Trustee to Fill Vacancy, Case No. 81179 in which the Superior Court of the State of California in and for the County of Santa Clara | � Dated: November 24, 1971' a Certified copy of which Recorded: June 12' 1973' in 8onkO420, Pagm95, Santa Clara County Records Jessie M. Cutten is appointed 7-rumtoa in place of Robert Cutten ofthe Trust created by Deed recorded December 22' 1954in Book 303S. Page 47Gof Official Records nfSanta Clara County and vested with all the powers vested in said Robert Cutten as Trustee. 12' The effect ofthe Judgement rendered in Case No. 267406 in the Superior Court qYthe State of California in and for the County of Santa Clara, quieting title to the hereafter described real property In Favor of: Joan|ta V. Cutten, as Administrator wfthe Estate of Robert Cutten also known as RwhertC. Cutten and as Robert Charles Cutten and amCharles Robert Cutten deceased ' Against: Jessie M. Cutten also known as Jessie S. Moore andJ. S. K4onmo individuallymndamTrustawpfthmTrumtofHobart <�utton, Trustoe created by Deed date~- August17 - 1853 ^ | Dated: August 1' 1973. a Certified copy of which Recorded: June 12. 1873' in Book 0430. Page 97ofOfficial Records Affects: Lots 3and G of Section 36' T'8 S.' R. 1VV.' M.D.B. 8^ K4. | 13' The effect of the Judgement mfDistribution, Case No. Pro H 1887 in the Superior Court of the State of California in and for the County ofCntrm Costa, in the Matter of the Estate mf Robert Cutten, also known as RnbmrtC' Cutten, and as Robert Charles Cutten and am Charles Robert Cutten, deceased, distributing the 'hereinafter described nma| property to � JoonitaV. Cutten Dated: KAay25' 1973' a certified copy ofwhich � Recorded: June 12' 1973, n Book 0420. Page 98ofOfficial Records � Affects: Lots 3and 5 of Section 36' l[.8 S., R. 1 VV., M.D.B. 8, M. � ��0�K��U7� | ~~--'''- 4 Pag�� f e~�Wm�~�. ITEMS: (Continued) Order No. 610067 14. A covenant and agreement entitled "Land Conservation Agreement, commonly known as "Agricultural Preserve" Executed by: The County of Santa Clara In favor of: J.B. Cutten Recorded: February 25, 1975, Book B292, Page 633, of Official Records Reference is hereby made to said document for full particulars. 15. The Effect of that certain "Resolution Alterin Boundaries f 9 o the Agricultural Preserve in the County of Santa Clara" Recorded: March 7, 1975 in Book B310, Page 43, Official Records and rerecorded April 1, 1975, book B342, page 482 , of Official Records 16. The Effect of the Judgment of Final Distribution Case No. 24886 in the Superior Court of the State of California in and for the County of Tulare in the Matter of the Estate of James B. Cutten, deceased, distributing the hereafter described real property to James Monk Wells as executor of the will of Marjorie M. Cutten, deceased Dated: June 27, 1978 Affects: Lots 4 and 6 of Section 36, T. 8 S., R. 1 W., M.D.B. & M. Said document is unrecorded 17. The effect of the Judgment of Final Distribution Case No. 25486 in the Superior Court of the State of California in and for the County of Tulare in the Matter of the Estate of Marjorie Monk Cutten, deceased distributing the hereinafter described real property to James Monk Wells Dated: August 2, 1979 Recorded: November 9, 1979, in Book E 933, Page 17, Official Records And also recorded: January 2, 1981, in Book F827, Page 628, Official Records Affects: Lots 4 and 6, Section 36, T-8 S., R. 1 W., M. D. B. & M. 18• The effect of the Decree of i D stnbution, Case No. 134116 in the Superior Court of the State of California in and for the County of San Francisco, in the Matter of the Estate of Dorothy M. Bachman, also known as Mrs. Lawrence Bachman and Dorothy Bachman, deceased, distributing the hereinafter described real property to Wells Fargo Bank, as Trustee of the Testamentary Trust Dated: July 20, 1956 Recorded: March 5, 1980, in Book L277, Page 946, Official Records EXHIBIT 5 Page of ,� ITEMS: (Continued) Order No. 610067 19. The effect of the Decree of Distribution Case No. 97, 407 in the Superior Court of the State of California in and for the County of San Francisco, in the Matter of the Estate of May E. Bachman, also known as May Eleanor Bachman, deceased, distributing the hereinafter described real property to Dorothy M. Bachman, Two-fifths (2/5) Edna Speyer, One-fifth (1/5) Albert Speyer, One-fifth (1/5) Jerome Bachman, One-tenths (1/10); One-tenths (1/10) hereof to the following named charities in the following proportions to-wit; Four-tenths (4/10) thereof to the Jewish National Welfare Fund; Two-tenths (2/10) to Mount Zion Hospital, San Francisco; One-tenth (1/10) thereof to the San Francisco Chapter of the Seeing Eye Fund, National Council of Jewish Women; One-tenth (1/10) thereof to the Blind Association of San Francisco One-tenth (1/10) thereof to the Society for prevention of cruelty to animals, San Francisco; One-tenth 0/10) thereof to the Shriners Hospital for crippled children Dated: September 21, 1945 Recorded: March 5, 1990 in Book L277, Page 956, Official Records 20. The effect of the Decree of Distribution Case No. 94,735 in the Superior Court in and for the County of San Francisco, in the Matter of the Estate of Florine Bachman, deceased, distributing the hereinafter described real property to May Eleanor Bachman Dated: February 5, 1945 Recorded: March 5, 1990, in Book L277, Page 967, Official Records 21. The effect of the Decree of Distribution, Case No. 51173 in the Superior Court in and for the County of San Francisco, in the Matter of the Estate of Estelle Bachman, deceased, distributing the hereinafter described real property to: An undivided one-fourth to Florine Bachman, An undivided one-fourth to May Bachman, An undivided one-fourth to Waiter N. Bachman, An undivided one-fourth to Lawrence Bachman Dated: April 8, 1936 Recorded: March 5, 1990 in Book L277,.Page 976, Official Records 22. The Effect of a Transfer Grant Deed Dated: July 9, 1992 From: Joanita V. Cutten To: Joanita V. Cutten, as Trustee of the Joanita V. Cutten Family Trust dated July 9, 1992 Recorded: July 27, 1992, in Book M299, Page 0729, Official Records Said matter affects all of Lots 3 and 5 of Section 36, Township 8 South, Range 1 West, Mount Diablo Base and Meridian. 23. Requirement that a certified copy of the Decree of Distribution issued on May 30, 1975 and June 27, 1978 in the Superior Court of Tulare County in the Matter of the Estate of James B. Cutten who acquired title as J. B. Cutten, deceased, Case No. 24885, be recorded. EXHIBIT 6 Wage�of ITEMS: (Continued) Order No. G10OG7 2*. ''Reqoinannentthat probate proceedings bemmtabUmhed for VVa|onBauhnman deceased and Lawrence Bachman, deceauad, who acquired an interest in this property from the estate ofEnteUeBachnnan. deceased. e 25. We find various Liens and Judgnnents, that are of record against persons with uirni|a/ the same name as that of our vemtee(a) shown herein. In order to complete thim ��po or this Company requires a Statement of Information to be provided for the fo|| n' vaotea(m)' which may allow and assist elimination of some or all of said Li following Judgments. After review of the requested Statement(s) of Information, the Liens and reserves the right to add additional items or make further requirements i CompanyiasuancoofanyPo|inyofTida |nsuranoa. �o pro' to ,he Vestee(u): JoanitaV. Cuuen � 26. Any invalidity or defect in the dt|o of the veoteam in the event that the trust referred to herein is invalid or fails to grant sufficient powers to the tmumteo<m> or in the event there is a lack of compliance with the terms and provisions of the trust instrument. If title is to be insured in the trustee(s) of trust (or if their act im to be insured), this Company will require a Trust Certification pursuant to California�|�fmrm]m Probate Code Section � 18100.5. The Company reserves the right to except additional items and/or make ! additional requirements after reviewing said documents. 27' Terms and Provisions of any unrecorded leases, including, but not Umnite~� to any options to purchase or rights mffirst refusal contained therein. ' 28' Matters which may be disclosed bymn inspection and/or bya correct ALTA/ACS&4 Land Title Survey of said land that is satisfactory to this Company' and/or by inquiry of thepart|mainposmmmaionthmrenf' An inspection of said land has been ordered; upon its completion the Company reserves the right to except additional items and/or make additional requirements. 29' The community interest of the spouse of the vasten named below. Vostae: Joan|ta V. Cuttan END OF I .EMS _ Note 1. There are NC} conveyances affecting said land, recorded within twenty-four (24) months | of the date ofthis report | ' Note 2' "Section 12473.1, California Insurance Coda became effective January 1 1S9� This legislation deals vviththe dimburmomnentof funds deposited vvithany ��em'�t� m~'in� io an emcro*xprmubosorovvcapoohy The �m �- i-- � , o��rmo �n | collected by the ��a entity's escrow �n�/o �sub escrow --' — '-�'~~ ~~ ' � �;muoeocmovvaccount prior to disbursement of any '~'=s' Some methods p, funding may subject funds tna holding period which must expire before any funds may be disbursed. Im order toavoid any such dm|aym all � �un�in m should be done through wire transfer, certified check or checks drawn ~on California | financial institutions. ^ � EXHIBIT��"°�" ° 7 � =�.� �� ~ jFM2 In 575 c;1 NT.DIAILO MIJUDIAN I T!t f..R.I L. y`Y71(/Yf � 141.)t Ad i(�usAd Ip,,y`cl7u) (rued T�.lt.Rl�c T).t 11IW. 1 , _lee ! 1 � 1 r� Ii (2s��0 1•f. �(11.tlAd 1 �(4atAW 9 i(4L4J4C) 16 p 4 I, ps.ltAc) n� •.-� It4 - •- , -- •- 1 - - -- _ U."X.TOTAL 04wW ;(f:aAd :I 444t4Ad to ,(4094Ad IS ¢ 11 Oasswj 7 l(allic) to 14L41K 1; 10 (stHc) 7 2 111.04 A4 TOTAL ,•{LIUA;J I2/.jA/K 20TAL MIDPENINSULA 3 7 j W.I. 4 (114K) 7� �/ REd10NAL 537 -__ _ ` , --3&-- ---- -- --V- INT. _f74;. 1 f7k. 11 (IWAC) '(If.10W 11 ) (/OA1C) L i(40.fiK.f 11 ---'-1----- �()l.t7Al) (44.7fAC. 3 I � I! !O (UpAd tz,4.0 Ac.TOTAL .MIDPENINSULA REGIONALV , OPEN • SPACE DISTRICTIbIff.t)AC TOTAL OPEN, SPACE DIST.4417r, 5 4411A� 12 1) (4Ll7AU 4 8 (44s1u) sI(40.HAt) 12 !t1.4tK.117.52 AC.TOTAL I rim 55 WONSIC)1) KO'11 �O1.rllDt Cp/OOIyVJ+Cf. "ODf t I American Title Insurance Company =A Stock Company 2315 S. Bascom Avenue • Campbell, CA 95008 (408) 371-2300 • FAX (408) 371-2327 PRELIMINARY REPORT ESCROW OFFICER: Laura Higgins ORDER NO.: 610004- B Amendment TO: Joe Beaty Real Estate 7172 Anjoe Creek Circle San Jose, CA 95120 ATTN: Gary Beck YOUR REFERENCE.: 7460002 SHORT TERM RATE: NO PROPERTY ADDRESS: Assessors Parcel No's. 562-10-01 1 and 652-10-009,Los Gatos, California EFFECTIVE DATE: November 14, 1995, 07:30 A.M. The form of Policy or Policies of title insurance contemplated by this report.is: California Land Title Association Standard Coverage Policy - 1990 American Land Title Association Loan Policy (10-17-92) with A.L.T.A. Form 1 Coverage 1. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A Fee 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: JAMES M.WELLS AS TO AN UNDIVIDED 5/81NTERESTAND MELVINJOHN GOOBERLETAND MAY BACHMAN AND EDNA SPEYER AND ALBERT SPEYER AND JEROME BACHMAN AND MIDPENNINSULA OPEN SPACE DISTRICT, A PUBLIC DISTRICT OF THE STATE OF CALIFORNIA AND WALTER BACHMAN AND LAWRENCE BACHMAN AND WELLS FARGO BANK, AS TRUSTEE OF THE TESTAMENTARY TRUST AS THEIR INTEREST MAY APPEAR 3. THE LAND REFERRED TO IN THIS REPORT IS SITUATED, IN AN UN-INCORPORATED AREA, IN THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: SEE EXHIBIT "ONE" ATTACHED HERETO AND MADE A PART HEREOF DF\jjm 12/05/95 EXHIBIT Page�of Orden No. 6s10004 EXHIBIT "ONE" PARCEL ONE: LOT 4 of Section thirty-six (36), Township Eight (8) South, Range One (1) West Mount Diablo Base and Meridian. PARCEL TWO: Lot 6 of Section thirty-six (36), Township Eight (8) South, Range One (1) West Mount Diablo Base and Meridian. ` Assessors Parcel No: 562-10-011 and 562-10-009 .............. EXHIBIT Parr of 2 Order No. 610004 AT THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 1995-1996, Assessor's Parcel Number 562-10-01 1. Code Area Number: 80-060 1 st Installment: $136.77 OPEN 2nd Installment: $136.77 OPEN Land: $1,339.00 Improvements: $0.00 Exemption: $0.00 Personal Property: $0.00 Said matter affects Parcel One. 2. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 1995-1996, Assessor's Parcel Number 562-10-009. Code Area Number: 80-060 1st Installment: $136.84 OPEN 2nd Installment: $136.84 OPEN Land: $1,352.00 Improvements: $0.00 Exemption: $0.00 Personal Property: $0.00 Said matter affects Parcel Two. 3. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. 4. "Notwithstanding the insuring clauses of the policy(s), this company does not insure against loss or damage by reason of the lack of access to and from the herein described real property". 5. Any title or claim of interest of the United States of America and of the State of California or claimant thereunder in and to the land or minerals thereon based in whole or in part upon the claim that said land was known to be mineral in character at the dated of the approval of the United States Government Survey thereof, and title thereto did not pass from the United States of America. 6. Requirement that a certified copy of the decree of distribution issued on May 30, 1978 and June 27, 1978 in the Superior Court of Tulare County in the matter of Estate of James B. Cutten who acquired title as J. B. Cutten, deceased, Case No. 24886, be recorded. 7. Requirement that probate proceedings be established for Walter Bachman, deceased and Lawrence BAchman Deceased, who acquired an interest in this property from the Estate of Estelle Bachman, deceased. 8. The rights of The Heirs and Devisees of any vestee named herein (if deceased B 1T 3 page �of ITEMS: (Continued) Order No. 610004 9. The requirement that a copy of the Joanita V. Cutten Trust dated July 9, 1992 and the requirement that a Trust Certification be executed by The Trustee or Successor Trust(s) be submitted to this company prior to the close of escrow. 10. The requirement that the interest in and to this property be dealt with in it's entirety prior to this company issuing a policy of title insurance. We will not be able to insure any transaction that does not convey the interest of all the vested parties. 11. The interest of James M. Wells by virtue of the payment of property taxes from 1979 to the present. 12. Any invalidity or defect in the title of the vestees in the event that the trust referred to herein is invalid or fails to grant sufficient powers to the trustee(s) or in the event there is a lack of compliance with the terms and provisions of the trust instrument. If title is to be insured in the trustee(s) of a trust, (or if their act is to be insured), this Company will require a Trust Certification pursuant to California Probate Code Section 18100.5. The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents. 13. We find various Liens and Judgments, that are of record against persons with similar or the same name as that of our vestee(s) shown herein. In order to complete this report, this Company requires a Statement of Information to be provided for the following vestee(s), which may allow and assist elimination of some or all of said Liens and Judgments. After review of the requested Statement(s) of Information, the Company reserves the right to add additional items or make further requirements prior to the issuance of any Policy of Title Insurance. Vestee(s): JAMES M. WELLS AND MELVIN JOHN GOOBERLET AND MAY BACHMAN AND EDNA SPEYER AND ALBERT SPEYER AND JEROME BACHMAN AND MIDPENNINSULA OPEN SPACE DISTRICT, A- PUBLIC DISTRICT OF THE STATE OF CALIFORNIA AND WALTER BACHMAN AND LAWRENCE BACHMAN AND WELLS FARGO BANK END OF ITEMS Note 1. There are NO conveyances affecting said land, recorded within twenty-four (24) months of the date of this report. Note 2. Effective July 1, 1985,Sections 480.3 and 480.4 of the revenue and taxation code of the State of California requires that a "Preliminary Change of Ownership Report" be attached to each recorded document affecting a change in ownership. In the event a report is not attache d to such c docume nts, r o that said re port is incomplete, provisions in said Sections allow for the collection of a $20.00 fee in Lieu thereof. Note 3. The County of Santa Clara imposes an additional monument preservation fee of $10.00 for recording a deed with a Legal Description other than an entire Lot shown on a recorded final map. EXHIBIT Page 4 r � r ITEMS: (Continued) Order No. 610004 Note 4. "Section 12413.1, California Insurance Code became effective January 1, 1990. This legislation deals with the disbursement of funds deposited with any title entity acting in an escrow or subescrow capacity. The law requires that all funds be deposited and collected by the title entity's escrow and/or subescrow account prior to disbursement of any funds. Some methods of funding may subject funds to a holding period which must expire before any funds may be disbursed. In order to avoid any such delays, all fundings should be done through wire transfer, certified check or checks drawn on California financial institutions. Note 5. The charge where an order is cancelled after the issuance of the report of title, will be that amount which in the opinion of the Company is proper compensation for the services rendered or the purpose for which the report is used, but in no event shall said charge be less than the minimum amount required under Section 12404.1 of the Insurance Code of the State of California. If the report cannot be cancelled "no fee" pursuant to the provisions of said Insurance Code, then the minimum cancellation fee shall be $360.00. Note 6. California Revenue and Taxation Code 18668, effective January 1, 1991, requires that the buyer in all sales of California Real Estate, wherein the Seller shows an out of State Address, withhold 3-1/3% of the total sales price as California State Income Tax, subject to the various provisions of the law as therein contained. EXHIBIT Page�Of 5 4,. 575 O i - AB.DIABLO MERIDIAN Te9$..It:E. 141)1K; '(IUtAd IIOA!)~CfT7K) (D7[KJT/.IS.IIIW TV.SS A.IW. (7SwAc) I IOLilAd 1 Il4071K1 9 d{L/lu) 16 r� 20 IT i ps.uAc) ..� .. .4/ It p° I M.W K.TOTAL / i 1,114S0A4) 22 ;(Jtow tl !(la1Hd l0 ;({ol{A() IS - Q ¢ II •- - l{as 7 i({0.1{1;) to �a.{lA: Is------ I 2 Hf.o4 K. TOTAL '•(I I.DAJ lu. AC.TOTAL �/ MID PEPIINSULA I i g � � / (91 {4 REOIONA L It (BOAC) '(IlKIAC) It �--- ---- f'------- - _-t-- -------- �{I[IA() I{ !0 1Q (7s.RA� 14 'I zt{n a<7onL wo' IDPENINSULA REGIONAL 1 1-/ OPEN • SPACE DISTRICT �� 177.7)AC TOTAL OPEN, SPACE DIST. I y 2 DIlA: i ESA: S i(ra11AC) 12 9 i(i0.1lu) 11 (1{.S7AC.) 4 �({O--.51 S --�-- ,------------- , I!).ri AC.TOTAL 1/2 INT. 1 A = W.S. 1 ! �w UH3 .� CCIM"AO W CpNIQaMAI1Cl c 77/ a It '.7 Claims No. 96-08 Meeting 96-09 Date: April 24, 1996 REVISED MIDPENINSULA REGIONAL OPEN SPACE DISTRICT # Amount Name Description 80 81.45 All Laser Service Equipment Repair 81 76.50 Randy Anderson Private Vehicle Expense 82 141.76 Artech Laminating Supplies 83 238.05 A T & T Telephone Service 84 3,780.37 Beautiful Cars, Inc. Vehicle Repair 85 131.42 Craig Beckman Reimbursement--Vehicle Supplies 86 2,980.00 Louis Bordi Grading 87 209.12 California Water Service Company Water Service 88 427.29 Callander Associates Landscape Consulting Services--Windy Hill Parking Lot 89 55.52 Clark's Auto Parts/Machine Shop Vehicle Parts 90 197.07 Annette Coleman Reimbursement--Field Supplies 91 680.35 Contemporary Engraving Bronze Plaque--Stegner Bench and Volunteer Trail Patrol Name Tags 92 1,340.00 Enshallah Site Analysis Consulting Services-- Teague Hill Property 93 770.41 Expedite Graphic Products Signs 94 246.50 FedEx Express Mail 95 97.96 Film to Frame Film and Developing 96 2,438.00 First Interstate Bank Note Paying Agent Fees 97 6,656.55 First Trust Washington Note Paying Agent Fees 98 33.95 Gould Publications, Inc. Resource Document 99 265.75 GTE Mobilnet Telephones 100 95.00 Phillip Hearin Reimbursement--EMT Training Fees 101 340.58 Home Depot Field Supplies 102 65.62 Linda Hyman Reimbursement--Uniform Expense 103 4,049.25 Jeda Publications Brochure Printing 104 120.00 JobTrak Advertisement 105 123.91 Kinko's Printing 106 2,849.59 Dennis Kobza & Associates, Inc. Architectural Service--Skyline Field Office 107 9,822.25 Langley Hill Quarry Base Rock, Install Septic System and Excavation for Percolation Testing 108 725.66 Lanier Worldwide, Inc. Photocopier Maintenance Agreement 109 75.45 Town of Los Gatos Construction Management Services-- Skyline Field Office 110 761.77 MetroMobileCommunications Radio Repairs and Supplies ill 228.21 Moffett Supply Company Sanitation Supplies 112 214-50 National Safety Council Subscription 113 19.50 Netcom Monthly Service 114 1,860.00 NRPA Pacific Service Center Registration--J. Escobar, P. Congdon and and J. Kowaleski 115 1,408.16 Office Depot Office Supplies 116 827.65 Orchard Supply Hardware Field Supplies 117 1,056.20 Pacific Bell Telephone Service 118 241.08 Pitney Bowes Office Supplies Page 1 Claims No. 96-08 Meeting 96-09 Date:April 24, 1996 REVISED MIDPENINSULA REGIONAL OPEN SPACE DISTRICT # Amount Name Description 119 18.49 Precision Engravers, Inc. Name Badges 120 89.00 The Pryor Report Subscription 121 34.13 Rayne Water Conditioning Water Service 122 37.98 Royal Brass Inc. Equipment Parts 123 494.20 Roy's Repair Service Vehicle Maintenance and Repairs 124 130.00 San Francisco Newspaper Agency Subscription 125 260.00 Santa Clara County Environmental Health Fuel Tank Permit Department 126 330.34 Santa Clara County Purchasing Department Field Supplies 127 280.00 E. R. Sheehan Trail Layout 128 311.40 John Shelton, Inc Culverts 129 119.31 Silverado Avionics, Inc. Radio Batteries 130 162.62 Cheryl Solomon Reimbursement--Nature Center Supplies 131 34.74 State Board of Equalization Diesel Fuel Tax 132 11.74 SV Sprinkler - Scotts Valley Service Charge 133 300.00 TacTemps Temporary Receptionist 134 88.58 University Art Center Graphic Supplies 135 26.94 West Publishing Company Resource Documents 136 231.25 Whitmore, Johnson & Bolanos Legal Services 137 300.00 Roberta Wolfe Recording Services 138 179.09 The Workingman's Emporium Uniform Expense 139R 502.00 Arcturus Long Ridge Surveying Service 140R 804.78 R & R Designers Repairs to Smith, Bean and Dyer Houses 141 R 95.36 Repo Depot Magazine Holders 142R 6,320.00 E. R. Sheehan Equipment Rental and Trail Work 143R 3,866.00 County of Santa Clara Grading Permit--Skyline Ranger Office 144R 251.42 Granger Hot Water Heater--Blacksmith Shop at Deer Hollow Farm 145R 355.74 Petty Cash Volunteer and Docent Supplies, Field and Office Supplies, Local Meeting Expense, Nature Center Supplies and Private 61,367.51 Vehicle Expense Urgent check issued on April 22, 1996. "Urgent check issued on April 24, 1996. Page 2 Claims No. 96-08 Meeting 96-09 Date: April 24, 1996 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT # Amount Name Description 80 81.45 All Laser Service Equipment Repair 81 76.50 Randy Anderson Private Vehicle Expense 82 141.76 Artech Laminating Supplies 83 238.05 A T & T Telephone Service 84 3,780.37 Beautiful Cars, Inc. Vehicle Repair 85 131.42 Craig Beckman Reimbursement--Vehicle Supplies 86 2,980.00 Louis Bordi Grading 87 209.12 California Water Service Company Water Service 88 427.29 Callander Associates Landscape Consulting Services--Windy Hill Parking Lot 89 55.52 Clark's Auto Parts/Machine Shop Vehicle Parts 90 197.07 Annette Coleman Reimbursement--Field Supplies 91 680.35 Contemporary Engraving Bronze Plaque--Stegner Bench and Volunteer Trail Patrol Name Tags 92 1,340.00 Enshallah Site Analysis Consulting Services-- Teague Hill Property 93 770.41 Expedite Graphic Products Signs 94 246.50 FedEx Express Mail 95 97.96 Film to Frame Film and Developing 96 2,438.00 First Interstate Bank Note Paying Agent Fees 97 6,656.55 First Trust Washington Note Paying Agent Fees 98 33.95 Gould Publications, Inc. Resource Document 99 265.75 GTE Mobilnet Telephones 100 95.00 Phillip Hearin Reimbursement--EMT Training Fees 101 340.58 Home Depot Field Supplies 102 65.62 Linda Hyman Reimbursement--Uniform Expense 103 4,049.25 Jeda Publications Brochure Printing 104 120.00 JobTrak Advertisement 105 123.91 Kinko's Printing 106 2,849.59 Dennis Kobza & Associates, Inc. Architectural Service--Skyline Field Office 107 9,822.25 Langley Hill Quarry Base Rock, Install Septic System and Excavation for Percolation Testing 108 725.66 Lanier Worldwide, Inc. Photocopier Maintenance Agreement 109 75.45 Town of Los Gatos Construction Management Services-- Skyline Field Office 110 761.77 MetroMobileCommunications Radio Repairs and Supplies ill 228.21 Moffett Supply Company Sanitation Supplies 112 214.50 National Safety Council Subscription 113 19.50 Netcom Monthly Service 114 1,860.00 NRPA Pacific Service Center Registration--J. Escobar, P. Congdon and and J. Kowaleski 115 1,408.16 Office Depot Office Supplies 116 827.65 Orchard Supply Hardware Field Supplies 117 1,056.20 Pacific Bell Telephone Service 118 241.08 Pitney Bowes Office Supplies 119 18.49 Precision Engravers, Inc. Name Badges 120 89.00 The Pryor Report Subscription 121 34.13 Rayne Water Conditioning Water Service Page 1 Claims No. 96-08 Meeting 96-09 Date: April 24, 1996 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT # Amount Name Description 119 18.49 Precision Engravers, Inc. Name Badges 120 89.00 The Pryor Report Subscription 121 34.13 Rayne Water Conditioning Water Service 122 37.98 Royal Brass Inc. Equipment Parts 123 494.20 Roy's Repair Service Vehicle Maintenance and Repairs 124 130.00 San Francisco Newspaper Agency Subscription 125 260.00 Santa Clara County Environmental Health Fuel Tank Permit Department 126 330.34 Santa Clara County Purchasing Department Field Supplies 127 280.00 E. R. Sheehan Trail Layout 128 311.40 John Shelton, Inc Culverts 129 119.31 Silverado Avionics, Inc. Radio Batteries 130 162.62 Cheryl Solomon Reimbursement--Nature Center Supplies 131 34.74 State Board of Equalization Diesel Fuel Tax 132 11.74 SV Sprinkler - Scotts Valley Service Charge 133 300.00 TacTemps Temporary Receptionist 134 88.58 University Art Center Graphic Supplies 135 26.94 West Publishing Company Resource Documents 136 231.25 Whitmore, Johnson & Bolanos Legal Services 137 300.00 Roberta Wolfe Recording Services 138 179.09 The Workingman's Emporium Uniform Expense 49,172.21 Page 2 Regional Open Spac MIDPENINSULA REGIONAL OPEN SPACE DISTRICT TO: Board of Directors FROM: C. Britton, General Manager a. DATE: April 24, 1996 SUBJECT: FYI 330 Distel Circle . Los Altos,CA 94022-1404 . Phone:415-691-1200 FAX:415-691-0485 • E-mail: mrosd@netcom.com 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 `#�- CALSTAR California Shock/Trauma Air Rescue April 6. 1996 MID-PENINSULA OPEN SPACE RESERVE CALSTAR was requested on March 29- to respond to the Mid-Peninsula Open Space Reserve for the victim of an overdose. As vou rnaV recall- this 47 year old female's car was found by the reserve and she had been missim-1 for two days. A search was started and she was found in the momino off a main trail about a mile into the par"K. She \vas responsive but obviously hypothermic. Warming measures were instituted with disposable heat packs and blankets. She -,as placed on a backboard and Stokes litter and transported to the landing zone. The call was received at OT 10 and we lifted with an ETA of 07:40 and arrived overhead at 07-14 1. Due to some confusion from San Mateo Countv Comm. we were not able to make mound contact. We elected to land and do face to face communications. We than repositioned to the area where the patient xvas, located: The landinL, zone was clearly identified by personnel on scene. Potential obstacles, wind and surface conditions were clearly described. The area was we]I secured. I met the rescuers on the trail where the patient was being carried to the LZ. I was given a quick and thorough report by personnel on scene which included history of the incident, drugs ingested, current patient status and therapy in progress. After a quick survey and placement of more wannmQ measures. the patient was loaded on the helicopter. Durin,z the 6 minute t11-ht to Stanford Hospital the patient were monitored closely. Her airway remained clear and her Glasgow Coma Score improved to 12 . Her vitals were stable. We were unable to start a IV, After arrival in the Emergency Room the patient was evaluated by the staff. Her condition was extremely critical due to a low core temperature of_27 deg-Tee Centl(-)Tade. Warming measures were instituted and she did remarkably well. She continued to improve neuroloc-qcalv and was eventually discharged to Sequoia Hospital on 4,13/06. page I A Non-Profit Cc,-rmunity Service 20676 Sivc . chi Regional Open Spac 1 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT April 24, 1996 David Sanguinetti Midpeninsula Regional Open Space District 330 Distel Circle Los Altos, CA 94022 Dear Dave, On behalf of the Board of Directors and the entire staff of the District we would like to recognize and commend your actions in the search for the despondent woman missing at Russian Ridge Open Space Preserve on March 28, 1996. Working with Supervising Ranger Patrick Congdon to begin the search in the pre-dawn hours of March 29, well in advance of the planned organized search efforts for the day, you and Patrick found the missing woman, treated her for injuries, summoned help, and in all likelihood, saved her life. The value you placed on the health and safety of the missing person and your commitment to your duty as a District ranger exemplifies the meaning of public service. The District and the public have been very well served. Thank you. Sincerely, Nonette Hanko L. Craig Britton President, Board of Directors General Manager JE:kh cc: Board of Directors 330 Distel Circle . Los Altos, CA 94022-1404 • Phone:415-691-1200 • FAX:415-691-0485 • E-mail:mrosd@netcom.com 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 Regional Open Spac MIDPENINSULA REGIONAL OPEN SPACE DISTRICT April 24, 1996 Patrick Congdon Midpeninsula Regional Open Space District 330 Distel Circle Los Altos, CA 94022 Dear Patrick, On behalf of the Board of Directors and the entire staff of the District we would like to recognize and commend your actions in the search for the despondent woman missing at Russian Ridge Open Space Preserve on March 28, 1996. Working with Area Superintendent David Sanguinetti to begin the search in the pre-dawn hours of March 29, well in advance of the planned organized search efforts for the day, you and Dave found the missing woman, treated her for injuries, summoned help, and in all likelihood, saved her life. The value you placed on the health and safety of the missing person and your commitment to your duty as a District ranger exemplifies the meaning of public service. The District and the public have been very well served. Thank you. Sincerely, Nanette Hanko L. Craig Britton President, Board of Directors General Manager JE:kh cc: Board of Directors 330 Distel Circle • Los Altos,CA 94022-1404 • Phone:415-691-1200 • FAX:415-691-0485 • E-mail:mrosd@netcom.com (9 Board of Directors:Pete Siemens,Mary C.Davey,Teena Henshaw,David T.Smernoff,Nonette Hahko,Betsy Crowder,Wim de Wit General Manager:L.Craig Britton f Open Space MIDPENINSULA REGIONAL OPEN SPACE DISTRICT April 23, 1996 Board of Supervisors San Mateo County County Government Center Redwood City, CA 94063 Attention: Ruben Barrales, President Re: Deletion of Parks Density Transfer Policy, County General Plan Dear President Barrales and Members of the Board of Supervisors: The County Planning Commission recently completed its review of the Local Coastal Plan Amendments contained in the Coastside Protection Initiative. We understand that the Board of Supervisors will be holding three public hearings on the proposed amendments. Following up on our letter of February 26, 1996 (attached), I am writing to encourage the Board to implement the recommendation of the Planning Commission to delete General Plan Policy 14.27, which provides for a potential increase in density based on land acquisition for parks and open space. I would be happy to respond to any questions or comments_on this issue. cerely, ig Britton General Manager cc: Patrick Sanchez, Director, Parks and Recreation Lennie Roberts, Committee for Green Foothills MROSD Board of Directors Open Space . . . for room to breathe - 20th Anniversary - 1972-1992 330 Distel Circle - Los Altos, California 94022-1404 - Phone:415-691-1200 - FAX: 415-691-0485 General Manager:Herbert Grench Board of Directors:Pete Siemens,Robert McKibbin,Teena Henshaw,Ginny Babbitt,Nonette Hanko,Betsy Crowder,Wim de Wit i Regional Open Sp. 1 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT February 26, 1996 Board of Supervisors San Mateo County County Government Center Redwood City, CA 94063 Attention: Ruben Barrales, President Re: Deletion of Parks Density Transfer Policy, County General Plan Dear President Barrales and Members of the Board of Supervisors: We understand that the County Planning Commission will soon be finalizing recommendations to the Board of Supervisors regarding the Coastside Protection Initiative. I am writing to encourage the Board to delete an existing policy in the General Plan that is in conflict with open space preservation objectives. General Plan Policy 14.27 states: "Monitor public acquisition of land for parks and open space To improve the County's ability to meet its housing goals, determine the impact of the public acquisition of land for park, recreation and open space facilities. Specifically, tabulate the number of density credits that have been acquired by public agencies and consider increasing the permitted density on appropriate sites by this amount. " One of the primary objectives of purchasing park and open space land by the District and other agencies and organizations is to reduce development in rural areas and the resulting impact on services, infrastructure, and the environment. If these development units are simply transferred to other nearby locations, a significant aspect of the public benefit of the park and open space land will be thwarted. It is also improtanf to understand that the price paid for park and open space land is directly related to the development density. Therefore if a "transfer" of development rights is contemplated, the agency which has acquired the density should have the ability to "sell" those rights in order to recapture tax funds for the purchase of additional public park and open space lands, especially during this time of severe funding limitations. Park and open space acquisitions are typically in highly constrained rural areas. There is little likelihood these purchases will significantly impact County housing goals. The County always has the bppprtunity to increase the permitted General Plan density in appropriate areas if this is necessary to meet housing or other goals. The current Policy 14.27 serves no legitimate purpose and we urge e let r that it be deleted. 330 Distel Circle • Los Altos,CA 94022-1404 • Phone:415-691-1200 • FAX:415-691-0485 • E-mail:mrosd®netcom.com Board a Oirecron:Pete Siemens.%ury C.Davey,Teena Henshaw,David T.Smernotf Nonette Hanko,Betsy Crowder,Winn de Wit General Manager:L.Craig Britton i San Mateo County Board of Supervisors February 26, 1996 Page 2 I would be happy to respond to any questions or comments on this issue. S' cerely, L. Britton General Manager cc: Nadia Holober, Chair,'County Planning Commission Patrick Sanchez, Director, Parks and Recreation MROSD Board of Directors SAN MATEO APR I 11996 LOCAL AGENCY FORMATION COMMISSION COUNTY GOVERNMENT CENTER • REDWOOD CITY,CALIFORNIA 94063 • (415) 363-4224 April 16, 1996 William obermayer 22400 Skyline Blvd. La Honda, California 94020 SUBJECT: Midpeninsula Regional Open Space District Boundary Changes Dear Mr. Obermayer: Thank you for your letter of April 2, 1996 . As you request, we will send you individual notice of future annexations to the Midpeninsula Regional Open Space District (MROSD) in San Mateo County. Notices of previous annexations were sent to the Portola Park Heights Property Owners Association at 22400 Skyline Boulevard, Box 10, La Honda CA 94020 . From the address listed at the close of your letter, it appears that the Association' s address has changed since its last request for notification. Your letter also asks the following question: "Are you really saying that San Mateo County LAFCo has no jurisdiction over district annexations in San Mateo County? Hasn' t this public agency been voted for by the electorate in part of San Mateo County? Please cite the law that limits your power to impose conditions. " Yes, that is what I have stated in my prior correspondence- with you. San Mateo LAFCo has an advisory role in matters pertaining to MROSD boundary changes. Santa Clara County LAFCo has jurisdiction over MROSD boundary dhanges because most of MROSD' s assessed property value lies in Santa Clara County. Santa Clara County is therefore the "principal county" as defined by Government Code Section 56066 and is responsible for processing the District' s boundary change proposals under Section 56387 . In matters relating to MROSD boundary changes, Santa Clara County LAFCo may impose conditions under Section 56844 . William obermayer 2 April 16, 1996 If you believe, as your letter seems to indicate, that provision of public improvements should be required as a condition of MROSD boundary changes, I would urge you to contact the District directly as well as providing testimony to San Mateo and Santa Clara LAFCos. If you would like to discuss your proposal informally, please contact this office for an appointment. Sincerely, Peter V. Banning Executive Officer PVB/mp CC : Members, Formation Commission Autumn Arias, Santa Clara LAFCo Craig Britton, MROSD J.K. Eggemeyer, San Mateo County Planning SAN MATEO NO; 81FUCIAIL U1181FIVICIFS ASS 11A11-11 io OF SANTA CLARA COUNTY 5750 Almaden Expressway, San Jose, CA 95118, (408) 265-2600 Ake, , SANTA CLARA COUNTY SPECIAL DISTRICTS ASSOCIATION FIRST QUARTERLY "ON-SITE" MANAGERS' MEETING at the office of ***MIDPENINSULA REGIONAL OPEN SPACE DISTRICT*** (See Enclosed Information) MAY I!I 1996�- NOON AGENDA 1. Update - Treasury Oversight Committee. 2. Possible Future Guest Speakers and Subjects. 3. Other Matters. MEMBERS Mdercroft Heights County Water Distrid,Central Fire Protection District,County Sanitation District No.2-3,Cupertino Sanitary District,Guadalupe-Coyote Resource Conservation District,Midpeninsula Regional Open Space District, Purinim Hh Water District,Santa Clara County Open Space Authority,Santa Clara Valley Tranprtation Authority,Santa Wra Vey Water Dstrict, Saratoga Cemetary Dift,Saratoga Fire Protection District,West Valley Sanitation D&cl. Regional Open Spac -------------------- MIDPENINSULA REGIONAL OPEN SPACE DISTRICT FIRST QUARTERLY "ON-SITE" MANAGERS' MEETING SPECIAL DISTRICT ASSOCIATION OF SANTA CLARA COUNTY The MIDPENINSULA REGIONAL OPEN SPACE DISTRICT is very pleased to host the first quarterly "on-site" Managers' Meeting of the Special Districts Association of Santa Clara County on Wednesday, May 1, 1996 at noon. The District's administrative office is located at 330 Distel Circle, Los Altos; a map for directions to the District's office is attached. This "on-site" Managers Meeting will provide special district managers and interested Board members the opportunity to share information and experiences on issues of importance to special districts. You will also learn more about the Midpeninsula Regional Open Space District, a tri-county special district covering parts of Santa Clara, San Mateo, and Santa Cruz Counties. The meeting will include an update on the special districts' representative on the Santa Clara County Treasury Oversight Committee. We hope you will plan to attend this informative networking lunch to share information, issues, and solutions and help to build the Special Districts Association of Santa Clara County into a stronger, more active, and influential organization. A sandwich and salad lunch will be provided at the cost of$7.00 per person. Meet attendees wanting lunch must R.S.V.P. by 5:00 P.M. Tuesday, April 30 to Susan Shipley or Jean Fiddes by phone (415) 691-1200 or fax (415) 691-0485, 330 Distel Circle , Los Altos, CA 94022-1404 . Phone:415-691-1200 • FAX:415-691-048.5 - E-mail:mrosd@netcom.com netcom.com Fi7 Board of Directors:Pete Siemens,Mary C.Davey,Teena Henshaw,David T.Smernoff, Nonette Hanko,Betsy Crowder,Wim de Wit Genera!Manager:L.Craig Britton Regional Open Spac i MIDPENINSULA REGIONAL OPEN SPACE DISTRICT TO: Board of Directors w FROM: Jean Fiddes, Assistant General Manager_r DATE: April 19, 1996 SUBJECT: FYI 330 Distel Circle • Los Altos, CA 94022-1404 • Phone:415-691-1200 • FAX:415-691-0485 * E-mail: mrosd@netcom.com Board of Directors:Pete Siemens,Mary C.Davey,Teena Henshaw,David T.Smernoff,Nonette Hanko,Betsy Crowder,Wim de Wit Genera/Manager:L.Craig Britton Regional Open Spac s --� MIDPENINSULA REGIONAL OPEN SPACE DISTRICT April 10, 1996 Dear Friend of the David C. Daniels Nature Center: Midpeninsula Regional Open Space District is pleased to announce that the Phase I exhibits for the David C. Daniels Nature Center are now complete! The exhibits include displays that provide a glimpse of the natural communities at Skyline Ridge Open Space Preserve, a laboratory station at which visitors may examine aquatic organisms, and pond mobiles that feature larger-than-life dragonflies, tadpoles, and newts. The nature center is the hub of Spaces and Species: Exploring Natural Communities, the District's new environmental education program. Launched this winter, the program is offered to school children during the week. Beginning April 14, the center will be open to the public Sundays from 11:00 a.m. to 4:00 p.m. Our friendly and knowledgeable volunteers will be able to answer questions about everything from trails to turtles to great blue herons. In appreciation of your support for the development of the nature center, we invite you to the David C. Daniels Nature Center Opening Celebration on Saturday, May 4, 1996, from 2:00 p.m. to 3:30 p.m. During this informal event, you will have an opportunity to enjoy refreshments, explore the nature center exhibits, investigate microscopic pond organisms, take a docent-led walk around Alpine Pond, and learn about the District's plans for future nature center exhibits. I will make some brief remarks, along with Craig Britton, General Manager; Audrey Rust, Executive Director of Peninsula Open Space Trust; Dr. David Daniels; and students from Duveneck School in Palo Alto. Please RSVP by April 29 at (415) 691-1200, extension 611. We hope you can attend the celebration; if you can't, stop by the nature center on a Sunday afternoon! Sincerely, Directions: Park in the Russian Ridge lot on the northwest comer of the Skyline Boulevard(Highway 35)and Page Mill/Alpine Road intersection. Go to Alpine Pond at Skyline 4uwzwi�� Ridge preserve by walking through the tunnel under Alpine Road.The nature center is on the shore of Alpine Pond. Nonette Hanko, President W Board of Directors OODSIDE POLO ALTO cc: Board of Directors n Sf : q F T i RUSS"N R9XE 0"SPACE►RESEM 330 Distel Circle • Los Altos, CA 94022-1404 • Phone:415-691-1200 • FAX:415-691-0485 • E-mail:mrosd@netcom.com 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 APR 12 1996 County of Santa Clara C,QU.N,,, 1-illance '%gency Controlk-r-Treasurcr M,portment r. Countv Govcninictit o,nicr, I-,vsi Wng 70\\'('st I WddlfW tiIrCcl Sanjoz�;<% Ciflitorma 951 10 1850 f4o,Si 299-2541 FAX 289-8629 April 9, 1996 Prepared by Herb Wiley TO: BOARD OF TRUSTEES, SANTA CLARA COUNTY SCHOOL DISTRICTS BOARDS OF DIRECTORS, SANTA CLARA COUNTY SPECIAL PURPOSE DISTRICTS FROM: WILLIAM L. PARSONS DIRECTOR OF FINANCE SUBJECT: SANTA CLARA COUNTY TREASURY INVESTMENT PORTFOLIO STATUS RECOMMENDATION Receive and file the March 29, 1996, Detailed Investment Portfolio Lising. DISCUSSION Attached for your information is the revised County of Santa Clara Treasury Investment Policy. The revised policy was recently approved by the County Treasury Oversight Committee. The new policy has been expanded to include requirements under new State legislation (SB 564 and SB 866). The following provisions have been added to the new policy: o Conflict of interest guidelines for members of the Treasury Oversight Committee, and for brokers and dealers who do business with the County Treasury, o Establishment of a County Treasury Oversight Committee to approve the investment policy and to review and monitor the monthly investment reports prepared by the County Treasurer, o Restrictions on types of eligible, authorized and suitable investments, o Internal control and accounting practices, o Reporting criteria, including methods and performance standards, o Alternative methods to pay for banking services and County administration of the investment function, o Provision for voluntary withdrawal of funds for the purpose of making other investments. Board of Supervisors: Michael M. I 1()oda. Nancy Alvarado. Roil Gonzales, Jarnes T, Beall Jr., Dianne McKenna County Executive: Richard Wittenherg Page 2 The attached investment report has been changed to show the market value of the full portfolio. Prior to the new legislation, market values were only shown for securities with maturities exceeding one year. Enclosed are detailed listings of Treasury investments pertaining to Santa Clara County as of March 29, 1996. The yield of the pool on March 29, 1996 was 5.42% with a compounded yield of 5.50%. The market value of "Commingled Investments" exceeded cost by $1,548,250 or .13%. As a comparison on March 29, 1996, the yield of a 90-day Treasury Bill was 5.13% and 6-month Treasury Bill was 5.17%. The State of California Local Agency Fund (LAIF) yield was 5.53%. A combination of securities maturing, new revenues and tax receipts will adequately cover the anticipated cash flow needs for the next six months. Cash flow needs are continually monitored and are considered paramount in the selection of maturity dates of securities. If any Board member would like further discussion of this matter, please let me know. Attachment WLP:HW:&%/33/IN95011C.DDC PERCENT OF TOTAL AT MONTH--END (Commingled funds only) 1996 1995 TYPE OF SECURITY March Feb Jan Dec Nov Oct Treasury Notes/Bills 14 12 12 12 14 18 Federal Agency 53 53 57 57 51 46 Bankers AccepUmes 9 5 5 7 7 9 Commercial Paper 6 7 5 8 5 $ Negotiable CD 2 2 2 3 2 2 Time Deposit 4 4 4 4 5 5 Repurchase Agreement 11 15 14 6 13 9 Medium Tenn Notes 2 2 2 2 3 3 Mutual Fund 0 0 0 a a * Figure may not equal 100%due to rounding. 1996 1995 March Feb Jan Dec Nov Oct Average Maturity of all Securities 277 284 266 275 284 301 Average Maturity—Adjusted for 236 221 197 225 226 236 Estimated Calls Average Yield 5.5 5.57 5.7 5.76 5.84 5.81 Current tnvestrrtent Sttsdernt The rate climb that began in mid February continued through March. Two to five year razes have climbed approxima tedly W basis points whiles sin month rates have risen approximately 30 basis points. With taxes being received early in April,the yield of the por doiio should remain higher than was anticipated earlier in the year. I INS4208A COUNTY OF SANTA CLARA INVESTMENTS , COMMINGLED FUNDS i Invlist As Of 03/29/96 03/29/96 13:58:38 SEC. # SECURITY TYPE DUE BOUGHT CPN YIELD PAR COST/AMORT CUM. COST REMAIN ORIG. TERM PRES. VALUE EFF YIELD TDs COST ACCR. INT. TOTAL COST 5070 U.S. TREASURY NOTES TREA 03/31/96 04/05/94 5,125 5.370 5.000,000.00 4.999,047.65 1209.151.899.12 0 2 1 361 5,000.000 5.440 4.999.047.65 5076 U.S. TREASURY NOTES TREA 03/31/96 04/06/94 5.125 5.510 5.000.000.00 4,998,512.92 1204.152,851.47 0 2 1 360 5.000.000 5.590 4,998,512.92 7185 SANWA BGK SECURITIES REPO 04/01/96 03/26/96 5.500 5.580 35,000.000.00 35.000.000.00 1199,154,338.55 0 2 0 5 35.000.000 5.740 35,000.000.00 7189 SANWA BGK SECURITIES REPO 04/01/96 03/29/96 5.500 5.570 42.000.000.00 42,000,000.00 1164.154.338.55 0 2 0 2 42.000.000 5.741 42.000.000.00 7190 FUJI SECURITIES REPO 04/01/96 03/29/96 5.700 5.780 50.000,000.00 50.000.000.00 1122.154.338.55 0 2 0 2 50.000.000 5.950 50.000.000.00 7169 Bank of the West - Comp. Bal. TO 04/15/96 03/15/96 0.000 12.582,000.00 12.582,000.00 1072,154,338.55 0 17 0 31 12.582.000 0.000 12.582.000.00 12.582.000.00 5568 FHLMC NOTES CALLABLE AGCY 04/29/96 04/29/93 4.350 4.350 5.000.000.00 5.000.000.00 1059.572,338.55 0 31 3 1 4,996,000 4.400 5.000.000.00 7006 FHLB Discount Notes AGCY 04/29/96 12/11/95 5.315 5.500 5.000.000.00 4,896,652,78 1054,572.338.55 0 31 0 140 4,977.300 5.590 4.896.652.78 6133 U.S. TREASURY NOTES TREA 04/30/96 05/05/94 5.500 5.880 5.000,000.00 4.998,611.28 1049.675.685.77 0 32 1 361 5.000.600 5,960 4.998.611.28 6136 U.S. TREASURY NOTES TREA 04/30/96 05/09/94 5,500 6.000 5.000.000.00 4.998.148.58 1044,677.074.49 0 32 1 357 5.000.600 6.090 4,998,148.58 6682 FEDERAL FARM CREDIT AGCY 05/01/96 05/01/95 6.380 6.380 5.000.000.00 5.000,000.00 1039.678.925.91 0 33 1 1 5.004.390 6.480 5.000.000.00 6700 FHLMC Discount Notes AGCY 05/10/96 05/11/95 5.670 6.010 4.300.000.00 4,052.803.75 1034.678,925.91 0 42 1 0 4.273.560 6.010 4.052.803,75 6972 BANK OF AMERICA BA 05/10/96 11/17/95 5.430 5.660 8.000.000.00 7,788.833.34 1030.626.122.16 0 42 0 175 7.950.346 5.730 7.788.833.34 7108 BANK OF THE WEST CO TO 05/13/96 02/13/96 5.150 5,220 10.000.000,00 10,000.000,00 1022.837.288.82 0 45 0 90 10.000,000 5,320 10,000.000.00 10.000,000.00 6973 BANK OF AMERICA BA 05/14/96 11/17/95 5.430 5.650 11,000,000.00 10,703,009.16 1012,837.298.82 0 46 0 179 10.925.225 5,730 10.703.009.16 5590 U.S. TREASURY NOTES TREA 05/15/96 05/17/93 4.250 4.340 10.000.000.00 9,999,025.95 1002.134,279.66 0 47 2 363 9.986.250 4.380 9.999.025.95 5602 U.S. TREASURY NOTES TREA 05/15/96 05/24/93 4.250 4.490 10.000,000.00 9,997,280.33 992.135.253.71 0 47 2 357 9.986.250 4,540 9.997,280.33 7007 FNMA DISCOUNT NOTES AGCY 05/17/96 12/11/95 5.260 5.460 5.000.000.00 4,884.572.22 982.137.973.38 0 49 0 158 4.964,066 5.530 4.884.572.22 7016 FHLMC Discount Notes AGCY 06/03/96 12/13/95 5.250 5.460 18,443,000.00 17.977,698.47 977.253,401.16 0 66 0 173 18.266,162 5,530 17.977,698.47 7065 GENERAL ELECTRIC CP 06/03/96 01/11/96 5.220 5.400 30.000.000.00 29,373.600.00 959.275.702.69 0 66 0 144 29,706.850 5.470 29.373,600.00 7179 BANK OF TOKYO BA 06/03/96 03/20/96 5.420 5.560 7.000,000.00 6.920.958.33 929,902.102.69 0 66 0 75 6.930300 5.670 6.920,958.33 7017 FARM CREDIT DISCOUNT NOTES AGCY 06/04/96 12/13/95 5.280 5.490 20.000.000.00 19.489.600.00 922,981.144,36 0 67 0 174 19.805.327 5.560 19.489,600.00 7180 BANK OF TOKYO BA 06/06/96 03/20/96 5.420 5.560 10.000,000.00 9,882,566.67 903.491.544.36 0 69 0 78 9.896,500 5.670 9,882.566.67 7018 BANK OF AMERICA BA 06/07/96 12/13/95 5.320 5.540 15.000.000.00 14,607.650.00 893,608.977.69 0 70 0 177 14.845.700 5.610 14.607.650.00 7019 FHLB Discount Notes AGCY O6/12/96 12/13/95 5.250 5.460 19.150.000.00 18.641.727.08 879,001,327.69 0 75 0 182 18,941,340 5.530 18.641,727.08 7020 FNMA DISCOUNT NOTES AGCY 06/14/96 12/13/95 5.270 5.480 20.000,000.00 19,461,288.88 860.359.600.61 0 77 0 184 19.776,270 5.550 19.461.288.88 7171 FHLMC Discount Notes AGCY 06/17/96 03/15/96 5.165 5.300 25.000.000.00 24,662,840.28 840.898.311.73 0 80 0 94 24.709,444 5.400 24.662.840.28 7031 FNMA DISCOUNT NOTES AGCY 06/21/96 12/20/95 5.270 5.490 10.000.000.00 9,730,644.44 816.235.471.45 0 84 0 184 9.877,966 5.560 9.730.644.44 7059 DEUTSC14EBANK BA 07/01/96 01/09/96 5.140 5.340 10.000.000.00 9,751,566.67 806.504.827.01 0 94 0 174 9.861.870 5,410 9.751.566.67 7064 FHLMC Discount Notes AGCY 07/01/96 01/11/96 5.080 5.280 17.029.000.00 16.615,687.25 796.753,260.34 0 94 0 172 16,797.780 5.350 16.615.687.25 7090 FNMA DISCOUNT NOTES AGCY O7/02/96 02/01/96 4,930 5.110 20,000,000.00 19,583.688.88 780.137.573.09 0 95 0 152 19.725,555 5.170 19.583,688.88 5656 FHLB NOTES CALLABLE AGCY 07/08/96 07/06/93 5.100 5.100 10.000.000.00 10,000,000.00 760.553,884.21 0 100 3 2 9,990,000 5.170 10,000.000.00 7067 FHLB Discount Notes AGCY 07/11/96 01/12/96 5.090 5.300 20.000.000,00 19.488,172.22 750.553,884.21 0 104 0 181 19,699,555 5.370 19.488.172.22 6240 WACHOVIA BANK CN 07/15/96 07/20/94 6.300 6.460 10.000,000.00 9.996,022.73 731,065.711.99 0 108 1 361 10.015.000 6.560 9.996.022.73 7069 BANK OF THE WEST CO TO 07/15/96 01/16/96 5.400 5.470 30,000.000.00 30,000,000.00 721.069.689.26 0 108 0 181 30.000.000 5,580 30.000,000.00 30.000.000.00 7091 FHLB Discount Notes AGCY 07/17/96 02/01/96 4.900 5.080 20.000.000.00 19,545,388.89 691,069,689.26 0 110 0 167 19.682.222 5.150 19.545.388.89 6799 U.S. TREASURY NOTES TREA O7/31/96 07/24/95 6.125 5.810 5.000.000.00 5.004,855.06 671.524.300.37 0 124 1 7 5,012.890 5.820 5.004.855.06 COUNTY OF SANTA CLARA INVESTMENTS COMMINGLED FUNDS Invllst As Of 03/29/96 03/29/96 13:58:40 SEC. # SECURITY TYPE DUE BOUGHT CPN YIELD PAR COST/AMORT CUM. COST REMAIN ORIG. TERM PRES. VALUE EFF YIELD TDs COST ACCR. INT. TOTAL COST 7100 BANK OF AMERICA BA 07/31/96 02/06/96 4.880 5.070 9.000.000.00 8.785,280.00 666,519.445.31 0 124 0 176 8,B37,250 5.140 8,785.280.00 6805 FEDERAL FARM CREDIT AGCY 08/01/96 07/27/95 5.150 5.810 10.000.000.00 9.997,927.90 657,734,165.31 0 125 1 5 10.025.000 5.900 9,997.927.90 7105 BANK OF AMERICA BA 08/05/96 02/09/96 4.870 5.060 6,500,000.00 6,343.483.61 647,736,237,41 0 129 0 178 6.377,718 5.120 6.343,483.61 7146 FNMA DISCOUNT NOTES AGCY 08/06/96 03/05/96 4.880 5.050 20.000,000.00 19,582,488.88 641,392,753.80 0 130 0 154 19.625.166 5.110 19.582:488.88 7127 FARM CREDIT DISCOUNT NOTES AGCY 08/22/96 02/23/96 4.830 5.010 20.000,000.00 19,514,316,66 621,810,264.92 0 146 0 181 19,579.033 5.070 19.514,316.66 7144 FNMA DISCOUNT NOTES AGCY 08/29/96 03/04/96 4.860 5.040 18.000.000.00 17.567,460.00 602,295,948.26 0 153 0 178 17,603:730 5.100 17,567,460.00 7145 GENERAL ELECTRIC CP 08/30/96 03/04/96 4.970 5.160 25.000.000,00 24.382.201.39 584,728,488.26 0 154 0 179 24,435,333 5.230 24.382,201.39 7166 J. P. MORGAN CP 09/05/96 03/14/96 5.180 5.390 25,000.000.00 24.370.486.10 560,346.286.87 0 160 0 175 24,413.333 5,460 24.370.486.10 7172 BARCLAY'S BANK BA 09/10/96 03/15/96 5.180 5.390 10,000.000.00 9,742.438.89 535,975,800.77 0 165 0 179 9.758,000 5.460 9.742.438.89 7167 FNMA DISCOUNT NOTES AGCY 09/12/96 03/14/96 5.280 5.370 10.000.000.00 9.743.177.78 526.233.361.88 0 167 0 182 9,760.170 5.370 9,743,177.78 7173 COMMERZBANK NCO 09/16/96 03/15/96 5,330 5.320 25.000.000.00 25.001.135.59 516.490,184.10 0 171 0 185 24,996,000 5.410 25.001.135.59 7186 BANK OF AMERICA BA 09/17/96 03/26/96 5.170 5,380 11.000,000.00 10.723.548.62 491.489.048.51 0 172 0 175 10.725.130 5.450 10,723,548.62 7008 FNMA DISCOUNT NOTES AGCY 09/30/96 12/11/95 5.155 5.400 10.000.000.00 9,579.008.33 480.765.499.89 0 185 0 294 9,734,319 5,400 9,579.008.33 7032 FNMA DISCOUNT NOTES AGCY 10/24/96 12/20/95 5.120 5.370 30.000.000.00 28,681,599.99 471,186,491.56 0 209 0 309 29.101.300 5,440 28.681,599.99 7009 FEDERAL FARM CREDIT AGCY 11/01/96 12/11/95 5.600 5.480 10,000,000.00 10,006.154.14 442,504.891.57 0 217 0 326 10.010.890 5.590 70.000.00 10.076,154,14 7013 FEDERAL FARM CREDIT AGCY 11/01/96 12/12/95 5.600 5.490 21.135.000.00 21,146,959.56 432,498,737.43 0 217 0 325 21,158,025 5.560 151,232.67 21.298.192.23 7010 FNMA NOTES AGCY 11/14/96 12/11/95 5.470 5.470 20.000.000.00 20.000.000.00 411,351.777.87 0 230 0 339 20.006,940 5.540 82,050.00 20.082.050.00 5836 U.S. TREASURY NOTES TREA 11/15/96 11/15/93 4.375 4.500 5.000.000.00 4,996,343.27 391,351,777.87 0 230 3 1 4.968.750 4.550 4.996.343.27 5887 U.S. TREASURY NOTES TREA 11/15/96 12/13/93 4.375 4.530 10.000.000.00 9,990.993.70 386,355.434.60 0 230 2 338 9,937 5 0p 4.580 9.990.993.70 6400 FHLB NOTES AGCY 11/21/96 11/21/94 7.150 7.150 5.000,000.00 5.000.000.00 376,364,440.90 0 237 2 1 5,052.620 7.280 5,000,000.00 5891 TENN VALLEY AUTH AGCY 12/15/96 12/15/93 4.600 4.670 10.000.000.00 9.995.621.50 371,364.440.90 0 261 3 1 9,937,300 4.730 9,995.621.50 7038 FHLB NOTES AGCY 12/26/96 12/26/95 5.320 5.370 9.700.000.00 9.697.429.50 361,368,819.40 0 272 1 1 9.686,600 5.470 9,697,429.50 7000 FHLB NOTES AGCY O1/02/97 12/06/95 5.420 5.420 5,000.000.00 5,000,000.00 351.671,389.90 0 279 1 27 4,995.875 5.490 5.000,000.00 7035 FEDERAL FARM CREDIT AGCY O1/02/97 12/21/95 5,375 5.375 10.000.000,00 10,000,000.00 346.671,389.90 0 279 1 12 9,988,460 5,480 10.000.000.00 7052 CUPERTINO NATIONAL BANK TO O1/02/97 01/03/96 5.250 5.320 100.000.00 100,000.00 336,671,389.90 0 279 1 0 100.000 5.430 100.000.00 100.000.00 7053 DOWNEY SAVINGS TO 01/02/97 01/03/96 5.500 5.576 100.000.00 100,000.00 336,571,389.90 0 279 1 0 100.000 5.690 100.000.00 100.000.00 7054 GREAT WESTERN SAVINGS 6 LOAN TD 01/02/97 01/03/96 5.150 5.220 100,000.00 100.000.00 336.471,389.90 0 279 1 0 100.000 5.330 100.000.00 100,000.00 7072 FHLB NOTES CALLABLE AGCY O1/16/97 01/17/96 5.300 5.300 5.875.000.00 5.875.000.00 336,371.389.90 0 293 1 0 5.865,000 5.370 864.93 5.875.864.93 5945 FHLMC NOTES CALLABLE AGCY O1/20/97 01/20/94 4.800 4.800 10.000,000.00 10,000.000.00 330.496,389.90 0 297 3 1 9.938,000 4.860 10,000,000.00 6649 NATIONAL BANK OF DETROIT CN 01/21/97 04/10/95 7.875 6.920 5,000,000.00 5.035.291.42 320,496,389.90 0 298 1 287 5,076.400 7.040 5,035,291.42 7138 U.S. TREASURY NOTES TREA 02/28/97 03/01/96 6.875 5.280 10,000,000.00 10.140.084.13 315,461,098.48 0 336 0 364 10.116.720 5.350 1.868.21 10.141.952.34 6866 FHLB NOTES AGCY 03/05/97 09/05/95 5.870 5.900 18,800.000,00 18.795.120.93 305.321,014.35 0 341 1 181 18.844.660 5.980 18.795,120.93 7149 CUPERTINO NATIONAL BANK TD 03/06/97 03/06/96 5,350 5.420 1.000.000.00 1.000.000.00 286.525.893.42 0 342 1 0 1.000.000 5.530 1.000.000.00 1.000.000.00 6040 FHLB NOTES AGCY 03/21/97 03/21/94 V VIII 5.160 10,000,000.00 10,000.000.00 285,525.893.42 0 357 3 1 9.964,160 5,260 10.000.000.00 6079 FHLB NOTES CALLABLE AGCY 04/07/97 04/07/94 V V 5.900 5,000.000.00 4.970,264.32 275,525.893.42 1 9 3 1 5.000.000 5.990 4.970.264.32 6991 U.S. TREASURY NOTES TREA 05/15197 12/O1/95 6.500 5.400 10,000.000.00 10.116.740.23 270.555.629.10 1 47 1 165 10,009,375 5.470 28.571.43 10.145.311.66 6707 FNMA NOTES CALLABLE AGCY 05/16/97 05/16/95 6.375 6.375 5.000.000.00 5,000.000.00 260.438,888.87 1 47 2 1 5.006,250 6.470 5.000.000.00 COUNTY OF SANTA CLARA INVESTMENTS , COMMINGLED FUNDS r Invlist As Of 03/29/96 03/29/96 13:58:42 SEC. / SECURITY TYPE DUE BOUGHT CPN YIELD PAR COST/AMORT CUM. COST REMAIN ORIG. TERM PRES. VALUE EFF YIELD TOs COST ACCR. INT. TOTAL COST 6733 FARM CREDIT CALLABLE AGCY 06/09/97 06/09/95 6.190 6.190 5.000.000.00 5.000.000.00 255.438.888.87 1 72 2 1 5.000.000 6.280 5.000,000.DO 7001 U.S. TREASURY NOTES TREA 06/30/97 12/06/95 5.625 5.330 10.000.000,00 10,034.179.68 250,438.888.87 1 92 1 207 10.009.375 5.400 10.034,179.68 7139 U.S. TREASURY NOTES TREA 06/30/97 03/01/96 6.375 5.310 5.000.000.00 5.062.901.88 240,404.709.19 1 92 1 121 5.051,562 5.380 53.416.90 5.116.318.78 7135 U.S. TREASURY NOTES TREA 09/30/97 02/29/96 5.750 5.350 10,000.000.00 10.056.093.48 235.341,807.31 1 185 1 214 10.012.500 5.420 235.655.74 10.291.749.22 7157 U.S. TREASURY NOTES TREA 09/30/97 03/11/96 5.750 5.600 5.000.000.00 5.010,533.12 225,285.713.83 1 185 1 203 5.006,250 5.680 126.468.58 5.137.001.70 6904 FNMA NOTES CALLABLE AGCY 10/08/97 10/05/95 6.250 6.250 9.000.000.00 9,000.000.00 220.275.180.71 1 192 2 3 9.029.880 6.350 9.000.000.00 6912 FNMA NOTES CALLABLE AGCY 10/10/97 10/11/95 6.000 6.000 5.000.000.00 5.000,000.00 211,275.180.71 1 194 2 0 4,998,437 6.100 5.000.000.00 6997 FNMA NOTES AGCY 11/10/97 12/04/95 5.500 5.410 5.000,000.00 5.007.812.50 206.275.180.71 1 225 1 342 4.968,525 5.480 18.333.33 5.026.145.83 5301 U.S. TREASURY NOTES TREA 11/30/97 11/30/92 6.000 6.130 5.000.000.00 4.990.793.43 201.267.368.21 1 245 5 1 5.020,312 6.230 4.990,793.43 7132 U.S. TREASURY NOTES TREA 12/31/97 02/28/96 5.250 5,270 5,000,000.00 4.998.142.79 196.276,574.78 1 277 1 307 4,959.375 5.340 41.105.77 5,039.248.56 7076 FNMA NOTES AGCY 01/08/98 01/22/96 5,190 5.120 5.000.000.00 5.005,730.06 191,278,431,99 1 285 1 352 4,938,050 5,180 10.091.67 5.015.821.73 7117 U.S. TREASURY NOTES TREA 01/31/98 02/16/96 5.000 4.840 5,000.000.00 5.013.543.49 186,272,701.93 1 308 1 350 4,935.937 4.940 10,989.01 5.024.532.50 7120 FNMA NOTES CALLABLE AGCY 02/20/98 02/20/96 5.010 5.040 10.000.000.00 9.995.575.41 181.259,158.44 1 328 2 1 9.825.000 5.130 9.995,575.41 6574 NATIONAL BANK OF DETROIT CN 02/28/98 02/28/95 7.500 7.500 5,000.000.00 5.000.000.00 171.263.583.03 1 336 3 1 5,103.000 7.640 5.000.000.00 5600 FHLB NOTES AGCY 03/10/98 05/20/93 V 11 4.375 20.000,000.00 20.000.0W OO 166.263,583.03 1 346 4 295 19.424.635 4.420 20.000.000.00 5503 U.S. TREASURY NOTES TREA 03/31/98 03/31/93 5.125 5,300 5.000.000.00 4,985,028.78 146.263.583.03 2 2 5 1 4,940,625 5.370 4.985.028.78 5664 FNMA NOTES CALLABLE AGCY 04/13/98 07/09/93 5.520 5.310 10,000.000.00 10,037.334.67 141.278.554.25 2 15 4 279 9,865,000 5.380 10.037.334.67 5601 FHLB NOTES AGCY 05/21/98 05/21/93 V VI 4.735 5,000,000.00 5,000.000.00 131.241.219.58 2 52 5 1 4,953.125 4.790 5.000.000.00 5616 U.S. TREASURY NOTES TREA 05/31/98 06/07/93 5.375 5.370 5.000.000,00 5.000.339.34 126.241,219.58 2 63 4 359 4,953.125 5.440 5,000.339.34 6717 FNMA NOTES CALLABLE AGCY 06/25/98 05/25/95 5.410 6.370 5.000,000.00 4.903.955.47 121.240,880.24 2 87 3 32 4,936,500 6.470 4.903.955.47 5937 FHLB NOTES CALLABLE AGCY 06/29/98 01/13/94 5.600 5.580 25,000.000.00 25.007.860.46 116.336.924.77 2 91 4 167 24,750.000 5.650 25.007,860.46 7096 FNMA NOTES CALLABLE AGCY 09/28/98 02/02/96 4.980 5.250 10.000,000.00 9.933.200.00 91.329,064.31 2 183 2 238 9,740,000 5.310 9.933,200.00 5797 U.S. TREASURY NOTES TREA 09/30/98 10/25/93 4.750 4.700 5.000.000.00 5.005.934,19 81.395,864.31 2 184 4 341 4.871,875 4,760 5.005.934.19 5801 U.S. TREASURY NOTES TREA 09/30/98 10/26/93 4.750 4.810 5.000.000,00 4.992.875.02 76.389.930.12 2 184 4 340 4,871.875 4.870 4,992,875.02 5812 U.S. TREASURY NOTES TREA 10/31/98 11/01/93 4.750 4.860 5.000.000.00 4,987,889.55 71.397.055,10 2 215 5 0 4.815.625 4.920 4.987,889.55 5817 U.S. TREASURY NOTES TREA 10/31/98 11/02/93 4.750 4.930 5.000.000.00 4.979.804.87 66.409,165.55 2 215 4 363 4.815,625 4.990 4.979.804.87 5919 U.S. TREASURY NOTES TREA 12/31/98 12/31/93 5.125 5.160 5.000,000.00 4.995.274,86 61,429,360,68 2 277 5 1 4.904,687 5.230 4.995.274.86 7082 FNMA NOTES AGCY 01/25/99 01/25/96 5.200 5.260 5,000.000.00 4.992,254.33 56,434.085.82 2 302 3 1 4.889,530 5.330 1,444.44 4,993,698.77 7084 FEDERAL FARM CREDIT AGCY 01/25/99 01/26/96 5.200 5.280 5.000.000.00 4.989.663.01 51,441.831.49 2 302 3 0 4,889.530 5.300 722.22 4.990,385.23 5969 U.S. TREASURY NOTES TREA 01/31/99 02/04/94 5.000 5.180 5.000.000.00 4.978.254.05 46.452,168.48 2 308 4 361 4.879,687 5.240 4.978.254.05 7098 FHLB NOTES CALLABLE AGCY 02/05/99 02/05/96 5.600 5.670 5.000.000.00 4.990.795.62 41.473,914.43 2 313 3 1 4.922,500 5.770 4,990.795.62 7118 FNMA NOTES CALLABLE AGCY 02/16/99 02/16/96 5.450 5.450 4.300.000.00 4,300,000.00 36.483.118.81 2 323 3 1 4,220,718 5.540 4.300.000.00 7142 FARM CREDIT CALLABLE AGCY 03/01/99 03/01/96 5.790 6.000 2.282,608.70 2,262,508.20 32.183.118.81 2 336 3 0 2.280,000 6,090 2.262,508.20 6117 FNMA NOTES CALLABLE AGCY 04/23/99 04/29/94 6.810 6.920 5.000,000,00 4.985,853.36 29.920,610.61 3 24 4 360 5.045,000 7.040 4.985.853.36 6816 FHLMC NOTES CALLABLE AGCY 06/08/00 08/02/95 6.500 6.600 10.000.000.00 9,962,249.58 24.934,757.25 4 72 4 312 9.970.000 6.710 9.962,249.58 6808 U.S. TREASURY NOTES TREA 07/31/00 07/31/95 6.125 6.275 5.000,000.00 4,972.507.67 14.972,507.67 4 125 5 2 5,001.562 6.370 4.972.507.67 6986 FHLB NOTES CALLABLE AGCY 11/29/00 11/29/95 6.100 6.100 5.000,000.00 5.000.000.00 10,000,000.00 4 245 5 2 4,978,000 6.190 5.000.000.00 COUNTY OF SANTA CLARA INVESTMENTS COMMINGLED FUNDS Invlist As Of 03/29/96 03/29/96 13:58:45 i1c. 0 SECURITY TYPE DUE BOUGHT CPN YIELD PAR COST/AMORT CUM. COST REMAIN ORIG, TERM PRES, VALUE EFF YIELD TOs COST ACCR. INT. TOTAL COST 7044 FNMA NOTES CALLABLE AGCY 12/29/00 12/29/95 6.000 6.000 5,000,000.00 5.000.000.00 5,000,000.00 4 276 5 2 4.900,000 6.100 5,000,000.00 Total Investments 1,209,151,899.12 0 277 1 140 1,2 10,700115Z 53,882,000.00 1.209.994.714.02 LESS REVERSE REPURCHASE AGREEMENTS Invlist As Of 03/29/96 03/29/96 13:58:45 SEC. # SECURITY DATE FROM DATE TO PAR VALUE REV RATE COST/AMORT PROCEEDS TOTAL REVERSE REPURCHASE 0.00 NET INVESTMENTS 1,209,151,899.12 R = Reverse Repurchase Agreement Variable I : Rate increases to 6.05 on 06/23/95. • MAY BE CALLED • Yield 0.000 Variable IT: 501 of 10yr CMT + 130 points. Pays quarterly. Yield 4,375 Variable III: Variable IV Rate increases to 7.25 on 08/02/95. MAY BE CALLED - Yield 0,000 Variable V Rate increases to 6.70 on 4/7/96. MAY BE CALLED - Yield 5.900 Variable VI Rate increases to 4.735 on 5/21/95; 6.715 on 5/21/96. MAY BE CALLED Yield 4,735 Variable VII: • MAY BE CALLED Yield 0.000 Variable VIII: Security's up to 6.16 on 3/21/96. MAY BE CALLED • Yield 5.160 Prime: 8.250 t COUNTY OF SANTA CLARA TREASURY INVESTMENT POLICY (excluding Transit Pension) March 29, 1996 I. STATEMENT OF INTENT The purpose of this document is to set forth the County of Santa Clara's policy applicable to the investment of short term surplus funds. In general, it is the policy of the County to invest public funds in a manner which will provide a competitive rate of return with maximum security while meeting the cash flow requirements of the County, school districts and special districts whose funds are held in the County Treasury, in accordance with all state laws and County ordinances governing the investment of public funds. A second document, a procedures manual, complements this investment policy and sets forth day- to-day operating procedures. II. ,SCOPE This investment policy applies to all financial assets held by the County, other than Transit Pension. Those assets specifically included in this investment policy are accounted for in the County's Comprehensive Annual Financial Report and are included here as part of the County's commingled investment pool. III. OBJ> CTIVES The following investment objectives, in order of priority, shall be applied in the management of the County's funds. 1. Safety Safety of principal is the foremost objective of the County's investment j program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk. Credit Risk. Credit risk is the risk of loss due to the failure of the security issuer. Credit risk may be mitigated by. • limiting investments to higher quality securities; 1 COUNTY OF SANTA CLARA TREASURY INVESTMENT POLICY (excluding Transit Pension) • determining on-going credit worthiness of the financial institutions, broker/dealers, intermediaries and advisors with which the County does business; and, • diversifying the investment portfolio so that potential losses on individual securities will be minimized Interest Rate Risk. Interest rate risk is the risk that the market value of securities in the portfolio will decrease due to changes in general interest rates. Interest rate risk may be mitigated by: • Structuring the portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities prior to maturity. 2. Liquidity. No investment shall be made that could not appropriately be held to maturity without compromising liquidity requirements. The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands(static liquidity). Further, since all possible demands can not be anticipated, the portfolio should consist largely of securities with active secondary or resale markets (dynamic liquidity). 3. Yield. The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the County s investment risk constraints and cash flow characteristics. The core of investments will be limited to low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not be sold prior-to maturity, except under the following conditions: • a declining credit security could be sold early to minimize loss of principal; • selling the security would improve quality, yield or target duration of the portfolio; • liquidity needs of the portfolio require that the security be sold. 2 I i I! COUNTY OF SANTA CLARA TREASURY DATSTMENT POLICY (excluding Transit Pension) IV. STANDARD F CARE. 1. Prudence. The County Treasurer is a trustee and therefore a fiduciary subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing public funds, the County Treasurer shall act with care, skill, prudence, and diligence under the circumstances then prevailing,that prudent person acting in a like capacity and familiar with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the County and the other depositors. Within the limitations of this section and considering individual investments as part of an overall investment strategy, the County Treasurer is authorized to acquire investments as authorized by law. The overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The County recognizes that no investment program is totally riskless and that the investment activities of the County are a matter of public record. Accordingly, the County recognizes that j occasional measured losses are inevitable in a diversified portfolio and shall be considered within the context of the overall portfolio's return, provided that the portfolio is adequately diversified and that the sale of a security is in the best long- term interest of the County. Significant adverse credit changes or market price changes on County-owned securities shall be reported to the Board of Supervisors and the County Executive in a timely fashion. 2. Competitive Transactions. Where practicable, each investment transaction shall be competitively transacted with brokers/dealers/banks approved by the County Treasurer. 3. Indemnification, Investment officers acting in accordance with state laws, County ordinances, this policy and written procedures, and exercising due diligence shall be relieved of personal responsibility for an individual security's credit risk or market price changes, provided that deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. 4. Ethics and Conflicts of Interest. County employees involved in the investment process shall refrain from personal business activity that could conflict with the proper execution and management of the investment program, or that could impair their ability to make impartial decisions. Investment officials shall disclose any material interests in financial institutions with which they conduct business. They 3 COUNTY OF SANTA CLARA TREASURY INVESTMENT POLICY (excluding Transit Pension) shall further disclose any personal financiaLrnvestment positions that could be related to the performance of the investment portfolio. Employees and investment personnel shall subordinate their personal investment transactions to those of the County, particularly with regard to the timing of purchases and sales. County officers and employees involved with the investment process shall refrain from accepting gifts that would be reportable under the Fair Political Practices Commission(FPPC)regulations. Members of the Treasury Oversight Committee shall not accept any honoraria, gifts or gratuities from advisors, brokers, dealers,bankers or other persons with whom the County Treasury conducts business that would be reportable under the FPPC regulations. VL AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS The County Treasurer shall establish an approved list of brokers, dealers,banks and direct issuers of commercial paper to provide investment services to the County. It shall be the policy of the County to conduct security transactions only with approved insti tutions and firms. To be eligible for authorization, firms which are commercial banks must be members of the FDIC,broker dealers must: • be recognized as a Primary Dealer by the Market Reports Division of the Federal Reserve Bank of New York, and • maintain a secondary position in the type of money market instruments purchased by the County. In addition, the firm must also qualify under SEC Rule 15C3-1 (Uniform Net Capital Rule). Approved broker/dealer representatives and the firms they represent shall be licensed to do business in the State of California. Each broker/dealer or bank that has been approved by the Treasurer shall be required to submit and annually update a County Broker/Dealer/Bank Information Request form which includes the firm's most recent financial statements. Broker/dealers and banks shall attest in writing that they have received a copy of this investment policy and understand its provisions. 4 COUNTY OF SANTA CLARA TREASURY INVESTMENT POLICY (excluding Transit Pension) The criteria for selecting security brokers and dealers from, to, or through whom the County Treasury may purchase or sell securities or other instruments, prohibits the selection of any broker, brokerage, dealer, or securities firm that has, within any consecutive 48-month period following January 1, 1996, made a political contribution in an amount exceeding the limitations contained in Rule G-37 of the Municipal Securities Rulemaking Board,to any member of the governing board of any local agency that is a participant in the County Treasury or any candidate for those offices. No public deposit shall be made except in qualified public depository as established by state law. An annual analysis of the financial condition and professional institution/bank rating will be conducted by the County Treasurer and reported to the County Treasury l Oversight Committee. Information indicating a material reduction in ratings standards or a material loss or prospective loss of capital must be shared with the Board of Supervisors, the County Executive, and the Oversight Committee in writing immediately. VII. COUNTY TREASURY OVERSIGHT COMMI'[TEE A County Treasury Oversight Committee shall be established by the Board of Supervisors to advise the County Treasurer in the management and investment of the Santa Clara County Treasury. Members of the Oversight Committee shall represent the County, school districts and other local governments which together comprise the County's commingled pool and other segregated investments. Members of the Oversight Committee will be nominated by the Treasurer and confirmed by the Board of Supervisors, including the following: 1. County Director of Finance 2. Representative appointed by the Board of Supervisors 3. Representative selected by a majority of the presiding officers of the legislative bodies of the special districts in the County that are required or authorized to deposit funds in the County Treasury. 4. County Superintendent of Schools or his or her designee. 5. Representative selected by a majority of the presiding officers of the governing bodies of the school districts and community college districts in the County. 6. Member(s)of the public that have expertise in, or an academic background in, public finance. It is the responsibility of the County Treasury Oversight Committee to approve the investment policy prepared annually by the County Treasurer, to review and monitor the monthly investment reports prepared by the County Treasurer, to review depositories for 5 COUNTY OF SANTA CLARA TREASURY INVESTMENT POLICY (excluding Transit Pension) County funds and broker/dealers and banks as approved by the County Treasurer, and to cause an annual audit to be conducted to determine the County Treasury's compliance with all relevant investment statutes and ordinances, and this investment policy. Any receipt of honoraria, gifts, and gratuities from advisors, brokers, dealers, bankers, or other persons with whom the County Treasury conducts business by any member of the County Treasury Oversight Committee is limited to the amount set by the Fair Political Practices Commission. These limits may be in addition to the limits set by a committee membees own agency or by state law. Nothing in this article shall be construed to allow the County Treasury Oversight Committee to direct individual investment decisions, select individual investment advisors, brokers, or dealers, or impinge on the day-to-day operations of the County Treasury. Vim, ELIGIBLE,F Ai TTHORIZED AND SUITABLE INVESTMENTS The eligible, authorized and suitable investments of the County Treasury will be ma de in accordance with state law unless additional restrictions are required by this investment policy as noted below. U. S. Treasury and Government Agency bills, notes or bonds or LAIF deposits. There shall be no limit in the amount that may be invested in U. S. Treasury, agency or instrumentality issues, or LAIF(with the exception of limitations imposed by LAIF). Repurchase Agreements and Reverse Repurchase Agreements. Repurchase Agreements and Reverse Repurchase Agreements shall be entered into only with dealers and financial institutions which have executed a Master Repurchase Agreement with the County,as approved by the Board of Supervisors, and are recognized as Primary Dealers with the Market Reports Division of the Federal Reserve Bank of New York. Additionally, • The term collateral shall mean purchased securities under the terms of the County approved master repurchase agreement. • Transaction maturities are limited to 92 days or less, transactions may be collateralized by U. S. Treasury, agency and instrumentality securities. For purchases in excess of 15 days, maturities on collateral securities may not exceed 5 years. 6 COUNTY OF SANTA CLARA TREASURY INVESTMENT POLICY (excluding Transit Pension) • The purchased securities shall have a minimum market value including accrued interest of 102 percent of the dollar value of the transaction. Collateral shall be held in the County's custodian bank as safekeeping agent, and the market value of the collateral securities shall be mark-to-market weekly or more frequently as the market warrants, based on the original bid price. • Reverse Repurchase Agreements shall be entered into (1) only to effect a "matched" transaction whereby the proceeds of the reverse are reinvested for approximately the same time period as the term of the Reverse Repurchase Agreement; or(2)the Agreement does not exceed a term of 92 days; or(3)the Agreement may exceed 92 days if the Agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement and the final maturity date of the same security. Reverse Repurchase Agreements shall not exceed$90 million(10% of the lowest projected amount available for investment during the current fiscal year). Collateralized Time Deposits. Time deposits with banks or savings and loan associations shall be subject to the limitations imposed by Government Code Section 53638, as amended, and additional constraints prepared by the County Treasurer that would limit amounts to be placed with institutions based on creditworthiness, size, market conditions and other investment considerations. Negotiable Certificates of Deposit. Negotiable certificates of deposit must have a Thompson Bank Watch rating of TBW-1 if one year or less,B or better, if more than one year, a country rating of AA or better, and a Moody's rating of Aa3 or better.Negotiable certificates of deposits shall not exceed 30% of the surplus funds of the portfolio. No more than 7.5% of the 30% shall be in a single bank or savings and.loan. Bankers' Acceptances. Investments in eligible bankers' acceptances of United States or foreign banks shall not exceed 270 days from the date of purchase. At the time of purchase, senior long-term debt must be rated at least A+ by Standard and Poor's, or Al by Moody's. Bankers'Acceptances shall not exceed 40%of surplus funds. No more than 15% of the 40% shall be invested in a single commercial bank. Commercial Paper. Investments in commercial paper shall not exceed 180 days and are restricted to those which, at the time of purchase, are rated at least Al+by Standard and Poor's, or P-1 by Moody's. If the commercial paper issuer has senior debt outstanding, the 7 COUNTY OF SANTA CLARA TREASURY INVESTMENT POLICY (excluding Transit Pension) senior debt must have a long-term Mood rating of Aa3 or higher. Commercial Paper 8 Y S g P shall not exceed 15% of surplus funds. An additional 15% may be invested only if the dollar-weighted average maturity of the entire amount does not exceed 31 days. Of the 30% of surplus funds that can be invested in commercial paper, no more than 25% shall be in the name of a single issuer. Medium Term Corporate Notes or Deposit Notes. The purchase of corporate notes shall be limited to securities rated Aa3 by Moody's and AA by Standard and Pooes, or higher.Medium term corporate notes or deposit notes(five years or less) shall be limited to 15% of surplus funds. No more than 10% of the 15% shall be invested in any single corporation. Municipal Obligations. Obligations of the State of California or a California political subdivision. Obligations must be rated A or better by Moody's or Standard and Poors. No more than 10% of surplus funds shall be in such obligations. Money Market Funds. Companies issuing such funds must have assets under management in excess of$500,000,000, and such funds must attain the highest numerical rating by two of the nationally recognized rating services. No more than 15% of surplus funds may be invested in money market funds with a AAA rating by Moody's or S&P. The County will not invest any funds in financial futures, option contracts, inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages, or any security that could result in zero interest accrual if held to maturity. No commingled fund shall be invested in instruments which do not pay interest within one year of initial investment and at least semiannually in subsequent years. IX. MATURITY To the extent possible, investments shalt be matched with anticipated cash flow requirements. Additional) the County will not invest in securities maturing more than q Y. tY 8 five years from the date of purchase, and the weighted average maturity of the County's commingled portfolio shall not exceed fifteen months. Since the current market value of fixed income securities is progressively more sensitive to interest rate fluctuations as the maturity date increases, the portfolio for commingled funds, shall, based on the lowest projected amount available for investment during the 1995-96 fiscal year(est. $900 million), conform to the following: 8 I COUNTY OF SANTA CLARA TREASURY INVESTMENT POLICY (excluding Transit Pension) • No investments shall be made having a maturity exceeding five years. • Investments maturing beyond one year may not exceed 50°/a of the lowest amount available for investment. • Investments maturing beyond two years may not exceed 40% of the lowest amount available for investment. • Investments maturing beyond three years may not exceed 30% of the lowest amount available for investment. • Investments maturing beyond four years may not exceed 20% of the lowest amount available for investment. X. SEGREGATED INVESTMENTS (excludesCommingledFunds) Segregated investments of instruments permitted in G.C. 53601 can be made upon proper authorization where cash flow or other factors warrant segregation from the commingled pool. Examples that may justify such segregation are bond or note proceeds. Retiree Health funds or Workers Compensation funds where longer term or matching term investments are warranted. For segregated investment funds, no investment shall be made that could not appropriately be held to maturity without compromising liquidity requirements. Segregated investments shall be limited to five years maturity unless a longer term is specifically approved by the appropriate legislative body. XI. SAFEKEEPING AND CUSTODY All security transactions, including collateral for repurchase agreements, shall be conducted on a delivery-versus-payment(DVP)basis. Securities will be held in the name of the County by a third party custodian designated by the County Treasurer and evidenced by safekeeping-receipts. The County Treasurer will approve certain financial institutions on an annual basis to provide safekeeping and custodial services for the County. Custodian banks shall be selected on the basis of their ability to provide service to the County's account and the 9 I COUNTY OF SANTA CLARA TREASURY INVESTN ENT POLICY (excluding Transit Pension) competitive pricing of their safekeeping related services. A11 securities purchased by the County under this section shall be properly designated as an asset of the County and held in safekeeping by a third party custodial bank or other third party custodial institution, chartered by the United States Government or the State of California. The County will execute third party custodial agreement(s)with its bank(s) and depository institutions(s). Such agreements will include letters of authority from the County, details as to responsibilities of each party, notification of security purchases, sales, delivery, repurchase agreements and wire transfers, safekeeping and transaction costs, procedures in case of wire failure or other unforeseen mishaps including liability of each party. To be eligible for designation as the County's safekeeping and custodian agent, a financial institution shall meet the following criteria: • Have a Thompson Bank Watch rating of"C" or better for the most recent reporting quarter before the time of selection; and • Qualify as a depository of public funds in the State of California as defined in G. C. 53638. The County Treasurer shall require each approved safekeeping financial institution to submit a copy of its Consolidated Report of Condition and Income(Call Report)to the County within forty-five days after the end of each calendar quarter. It is the intent of the County that all purchased securities be perfected in the name of the County. Specifically: • All investment securities, except collateralized certificates of deposit and money market funds, purchased by the County,will be delivered by either book entry or physical delivery and will be held in third-party safekeeping by a County approved custodian bank, its correspondent New York bank or the Depository Trust Corporation(DTC). • All book entry securities owned by the County shall be evidenced by a safekeeping receipt issued to the County by the custodian bank stating that -the securities are held in the Federal Reserve system in a "customer account" for the custodian bank which names the County as "customer." • All non-book entry(physical delivery) securities shall be held by the custodian banks correspondent bank in New York City and the custodian 10 COUNTY OF SANTA CLARA TREASURY INVESTMENT POLICY (excluding Transit Pension) bank shall issue a safekeeping receipt to the County evidencing that the securities are held by the correspondent bank for the County. The County may utilize the services of the Depository Trust Corporation(DTC)as a depository for delivery of non-wireable securities. XII. INTERNAL CONTROLS AND ACCOUNTING The County shall establish a system of internal controls, which is designed to prevent losses of public funds arising from fraud, employee error, misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees and officers of the County. The County maintains its records on the basis of funds and account groups, each of which is considered a separate accounting entity. All investment transactions shall be recorded in the various funds of the County in accordance with Generally Accepted Accounting Principles as promulgated by the Government Accounting Standards Board. The County shall establish a process for an annual review by either the County's internal or external auditor. This review will examine the system of internal controls to assure that the established policies and procedures are being complied with and may result in recommendations to change operating procedures to improve internal control. XIII. REPORTING 1. Methods. The County Treasurer shall prepare an investment report monthly, including a management summary that provides a clear status of the current investment ortfolio monthly transactions investment philosophy and market portfolio, Y � P P Y actions and trends. The management summary will be prepared in a manner which will allow the County to ascertain whether investment activities during the reporting period have conformed to the investment policy. The report should be provided to the Board of Supervisors, the County Executive, the County Treasury Oversight Committee,Internal Auditor, and local agencies with funds on deposit in the County pool. The report will include the following: • A listing of individual securities by type of investment and maturity held at the end of the reporting period. 11 COUNTY OF SANTA CLARA TREASURY INVESTMENT POLICY (excluding Transit Pension) • A composite of transactions purchased during the reporting period by type of security. • Unrealized gains or losses resulting from appreciation or depreciation of securities held in the portfolio, by listing the cost and market value of securities. • Average weighted yield to maturity of the portfolio and benchmark comparisons. • Weighted average maturity of the portfolio. • A summary of purchases during the reporting period by broker/dealers or banks. • A statement denoting the ability of the County to meet its pool's expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may not be available. Material deviations from projected budgetary investment results shall be reported no less frequently than quarterly to the Board of Supervisors and the County Executive. 2.. Performance Standards. The investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio should obtain a market average rate of return during a market/economic environment of stable interest rates,taking into account the County's investment risk constraints and cash flow needs. The basis for measurement used to determine whether market yields/rate of return are being achieved shall be the State Treasurer's Local Agency Investment Fund (LAIF7. It should be recognized, however, that since the investment parameters of LAW are broader than the County's,investment policies, the returns realized by the County cannot necessarily be expected to exceed the returns realized by LAIF on a regular basis. 3. The County utilizes the following methods to pay for banking services and County administration of the investment function. 12 COUNTY OF SANTA CLARA TREASURY INVESTMENT POLICY (excluding Transit Pension) General Banking Services General banking services such as safekeeping, items deposited, statements, account maintenance, etc., may be paid to the bank through direct payment or a combination of direct payment, a non-interest bearing time deposit, or compensating balances. Float and Warrant Processing Costs A compensating balance may be left with the bank in the form of a non-interest bearing time certificate of deposit to pay for float and warrant processing costs. The total of the certificate of deposit is based on two formulas. The first formula determines the required compensating balance to cover monthly warrant processing charges. The second formula determines the compensating balance necessary to cover the cost of the warrant float. The non-interest bearing CD balance is adjusted monthly based on the business banking activities supporting all participants of the County pool. These costs may alternatively be paid directly to the bank. Investment and Banking Administration Costs The County recovers staffing and other costs relating to the County's administration services for banking and investment functions provided to the County Treasury. The administrative costs are allocated against the earnings of the County pool prior to apportionment of earnings. Earnings Apportionment Earnings of the County pool are apportioned quarterly to all participants of the pool based on the average daily balance of each fund during the quarter. XIV. INVESTMENT POLICY ADOPTION Upon recommendation by the County Treasurer, the County's investment policy shall be approved annually by the County Treasury Oversight Committee. Copies of the approved investment policy shall be circulated annually to the Board of Supervisors, the County Executive, and local agencies with funds on deposit in the County pool. XV. VOLUNTARY PARTICIPANTS It is the County's policy to not allow access to the pool unless the voluntary participant agrees to a long-term relationship utilizing the pool and County Treasury for its primary 13 COUNTY OF SANTA CLARA TREASURY INVESTMENT POLICY (excluding Transit Pension) banking needs. The County does not wish to enter into relationships where an entity is placing funds because yields for a time may be higher than what is available at other organizations, because such activity can have an adverse and unfair impact on the other participants. Upon approval of the Treasurer, accommodations may be made to utilize the County resources to make specific investments or manage segregated funds for a voluntary participant at an agreed cost. XVI. WITHDRAWAL OF VOLUNTARY PARTICIPANTS Public entities that are voluntary participants in the County pool who wish to make withdrawals for the purpose of investing outside of the County pool may request such withdrawals in writing to the County Treasurer. The County Treasurer will assess the proposed withdrawal on the stability and predictability of the investments in the County pool. Prior to approving or disapproving a withdrawal request, the County Treasurer shall determine that the proposed withdrawal will not adversely affect the interests of the other depositors in the County pool. Funds are withdrawn based on the market value. Ap ved: , u/IN96099ADOC(revised 3/29/96) Date 14 Open Space 1 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT April 12, 1996 Honorable Lucy Killea Member, California State Senate State Capitol, Room 4061 Sacramento, CA 95814 Subject: SB 2147 Dear SenatorKillea: Thank you for the opportunity to comment on SB 2147. We're pleased that the legislature is continuing to address the issue of solid waste management, especially as it impacts local agencies such as the Midpeninsula Regional Open Space District. Our staff is often removing illegally-dumped tires from District public lands on the foothills roadsides along our open space preserves, and from our baylands properties, at a cost in staff time as well as a per-tire cost of from $1-to-$5. The District approves of the intent of this bill, and we value this opportunity to comment on some issues which you may want to consider. We believe that the dumping of tires on public land in our area comes from two sources: the consumer who has somehow accumulated a quantity of tires, and the disreputable tire seller who finds it too costly to properly recycle them. It's my understanding that the SB 2147 program is i intended to help create a demand for waste tires by providing a$1.50 per tire incentive payment to tire recyclers. While this is a positive st ep,to we believe there should also be an incentive to tire P P. sellers (who would be deprived of the current 2.5-cents per tire payment) and the consumer who must pay the $2 fee upon purchase, and a likely fee to the recycler when disposing of any quantity of tires, as the District now has to pay. Apparently, under your bill the tire recycling industry would eventually, through market forces, provide a payment to those supplying them with waste tires. We recommend the addition of a more aggressive tire recycling program in which all members of the public can participate -- a _ program similar to the state's bottle recycling program. The consumer who has accumulated,a quantity of old tires in their backyard, and the tire retailers need an incentive to bring old tires to a recycler. Without an economic incentive, the consumer will still find it less costly to dump rather than to recycle. The disreputable tire seller may find it too costly to be the "middleman" in such transactions and may find it more cost-effective to simply dump the tires, which is what currently occurs. 330 Distel Circle • Los Altos, California 94022-1404 • Phone:415-691-1200 • FAX: 415-691-0485 Board of Directors:Pete Siemens,Robert McKibbin,Teena Henshaw,Ginny Babbitt,Nonette Hanko,Betsy Crowder,Wim de Wit April 12, 1996 Honorable Lucy Killea Page Perhaps a deposit/redemption program would provide this incentive to the consumer. While paying an "advance" disposal fee of$2 per tire for new tires, the consumer would also receive, for example, $1 per old tire brought in, either when purchasing new tires or when turning in those tires that they may have accumulated. In that way, there's a financial incentive to the consumer not to dump them. Taking the tires to the recycler or retailer would provide a net gain to the consumer instead of the zero- cost of dumping, or the 1-to-$5 cost of turning them in to a recycler under the current situation. This incentive payment would also help public agencies such as the District to recover some of the costs of collecting and turning over dumped tires to the recyclers. Individual members of the public may also take the initiative to stop and pick Lip a tire they see dumped along the roadside so they could turn it in for some incentive payment. I I Unfortunately, I do not think SB 2147 will have an immediate or direct impact on the numbers of tires illegally dumped on the roadside or public lands., If the issue of incentives to the consumer and the tire seller were included, I believe SB 2147 would have a significant impact on the dumping of tires on our public lands and roadways. Again, thank you for the opportunity to comment on this legislation. I'll continue to track this bill and provide you with any other comments as it makes its way through the legislature. ncerely, L. Craig Britton General Manager LCB/mcs cc: MROSD Board of Directors Ralph Heim