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HomeMy Public PortalAbout20170712 - Agenda Packet - Board of Directors (BOD) - 17-16 SPECIAL AND REGULAR MEETING BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Administrative Office 330 Distel Circle Los Altos, CA 94022 Wednesday, July 12, 2017 Special Meeting starts at 5:15 PM* Regular Meeting starts at 7:00 PM* A G E N D A 5:15 SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT – CLOSED SESSION ROLL CALL 1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION. Government Code Section 54957(b)(1) Title of Employee: General Counsel 2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) Property: San Mateo County APN(s): 079-080-090 and 079-080-080 (portions) Agency Negotiator: Allen Ishibashi, Sr. Real Property Agent Negotiating Party: Hawthorns Preservation Trust Foundation Under Negotiation: Lease Terms ADJOURNMENT 7:00 REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT ORAL COMMUNICATIONS The Board President will invite public comment on items not on the agenda. Each speaker will ordinarily be limited to three minutes; however, the Brown Act (Open Meeting Law) does not allow action by the Board of Directors on items not on the agenda. If you wish to address the Board, please complete a speaker card and give it to the District Clerk. Individuals are limited to one appearance during this section. ADOPTION OF AGENDA Meeting 17-16 CONSENT CALENDAR All items on the Consent Calendar may be approved without discussion by one motion. Board members, the General Manager, and members of the public may request that an item be removed from the Consent Calendar during consideration of the Consent Calendar. 1. Approve June 28, 2017 Minutes 2. Claims Report 3. Award of Contract to Top Line Engineers, Inc., for construction of the Harkins Bridge Replacement Project at Purisima Creek Redwoods Open Space Preserve for a Base Contract Amount Not-to-Exceed $226,200 and a Separate 15% Contingency of $33,930 (R-17-92) Staff Contact: Matt Brunnings, Capital Project Manager, Engineering and Construction Department General Manager’s Recommendation: 1. Authorize the General Manager to enter into a contract with Top Line Engineers, Inc., of Hayward, California for a not-to-exceed base contract amount of $226,200. 2. Authorize a 15% contingency of $33,930 to be reserved for unanticipated issues, thus allowing the total contract amount not-to-exceed $260,130. 4. Fiscal Year 2017-18 Annual Claims List (R-17-96) Staff Contact: Andrew Taylor, Finance Manager General Manager’s Recommendation: Approve the Fiscal Year 2017-18 Annual Claims List, including debt service payments. 5. Revise Resolutions to Accurately Reflect Board Appointee Compensation in Response to California Public Employees’ Retirement System Public Agency Direction (R-17-95) Staff Contact: Candice Basnight, Human Resources Supervisor General Manager’s Recommendation: Adopt two resolutions to supersede previous resolution that did not include language required by CalPERS to accurately reflect Employer Paid Member Contributions as special compensation for Board Appointees. BOARD BUSINESS The President will invite public comment on agenda items at the time each item is considered by the Board of Directors. Each speaker will ordinarily be limited to three minutes. Alternately, you may comment to the Board by a written communication, which the Board appreciates. 6. Proposed purchase of the Pearlman HIMY Los Altos LP Property as a potential new Administrative Office, located at 5050 El Camino Real, Los Altos in the County of Santa Clara (Assessor’s Parcel Number 170-04-054) (R-17-90) Staff Contact: Allen Ishibashi, Senior Real Property Agent General Manager’s Recommendation: 1. Determine that the recommended actions are categorically exempt from the California Environmental Quality Act (CEQA), as set out in the staff report. 2. Adopt a Resolution authorizing the entry into a purchase and sale agreement for the Pearlman HIMY Los Altos LP Property at a cost of $31,550,100. 3. Authorize the General Manager to have full authority to make all property management decisions for the property after the close of escrow consistent with Board direction and the attached Resolution relating to the management of existing leases and upkeep of the property. 4. Authorize use of the General Fund Committed Infrastructure Reserve in an amount of $31,805,100, with a corresponding authorization to increase the Fiscal Year 2017-18 Real Property Budget, to cover the purchase price ($31,550,100), due diligence ($65,000), and escrow/commission costs ($190,000). 5. Authorize pursuit of financing options for $15 million for the property. 7. New Board Policy 3.09 – Debt Management Policy (R-17-91) Staff Contact: Andrew Taylor, Finance Manager and Disclosure Coordinator General Manager’s Recommendation: Approve new Board Policy 3.09 - Debt Management Policy. INFORMATIONAL MEMORANDUM • Ohlone/Portolá Heritage Trail INFORMATIONAL REPORTS – Reports on compensable meetings attended. Brief reports or announcements concerning activities of District Directors and staff; opportunity to refer public or Board questions to staff for information; request staff to report to the Board on a matter at a future meeting; or direct staff to place a matter on a future agenda. Items in this category are for discussion and direction to staff only. No final policy action will be taken by the Board. Committee Reports Staff Reports Director Reports ADJOURNMENT *Times are estimated and items may appear earlier or later than listed. Agenda is subject to change of order. In compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the District Clerk at (650) 691-1200. Notification 48 hours prior to the meeting will enable the District to make reasonable arrangements to ensure accessibility to this meeting. Written materials relating to an item on this Agenda that are considered to be a public record and are distributed to Board members less than 72 hours prior to the meeting, will be available for public inspection at the District’s Administrative Office located at 330 Distel Circle, Los Altos, California 94022. CERTIFICATION OF POSTING OF AGENDA I, Jennifer Woodworth, District Clerk for the Midpeninsula Regional Open Space District (MROSD), declare that the foregoing agenda for the special and regular meetings of the MROSD Board of Directors was posted and available for review on July 7, 2017, at the Administrative Offices of MROSD, 330 Distel Circle, Los Altos California, 94022. The agenda and any additional written materials are also available on the District’s web site at http://www.openspace.org. Jennifer Woodworth, MMC District Clerk June 28, 2017 Board Meeting 17-15 SPECIAL AND REGULAR MEETING BOARD OF DIRECTORS MIDPENINSULA REGIONAL OPEN SPACE DISTRICT La Honda Elementary School 450 Sears Ranch Rd. La Honda, CA 94020 Wednesday, June 14, 2017 DRAFT MINUTES SPECIAL MEETING – CLOSED SESSION President Hassett called the special meeting to order at 5:01 p.m. ROLL CALL Members Present: Jed Cyr, Cecily Harris, Larry Hassett, Yoriko Kishimoto, Curt Riffle, and Pete Siemens Members Absent: Nonette Hanko Staff Present: General Manager Steve Abbors, Assistant General Counsel Hilary Stevenson, Assistant General Manager Ana Ruiz, Real Property Manager Mike Williams, Planner III Elish Ryan Public comments opened at 5:01 p.m. No speakers present. Public comments closed at 5:01 p.m. 1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) Property: Santa Clara County Assessor’s Parcel Number 562-08-003 Agency Negotiator: Michael Williams, Real Property Manager Negotiating Party: Val Lopez, Amah Mutsun Land Trust Under Negotiation: Conservation Easement 2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) Property: San Mateo County Assessor’s Parcel Numbers 056-410-010, 020 & 120, 056- 420-020, 056-430-020 & 030, 056-440-020 & 030 Agency Negotiator: Michael Williams, Real Property Manager Meeting 17-15 Page 2 Negotiating Party: Zion Half Moon Land Limited Under Negotiation: Purchase Terms and Conditions President Hassett adjourned the special meeting of the Board of Directors of the Midpeninsula Regional Open Space District at 6:47 p.m. REGULAR MEETING President Hassett called the regular meeting of the Midpeninsula Regional Open Space District to order at 7:00 p.m. President Hassett reported the Board met in closed session, and no reportable action was taken. ROLL CALL Members Present: Jed Cyr, Cecily Harris, Larry Hassett, Yoriko Kishimoto, Curt Riffle, and Pete Siemens Members Absent: Nonette Hanko Staff Present: General Manager Steve Abbors, Assistant General Counsel Hilary Stevenson, Assistant General Manager Ana Ruiz, Assistant General Manager Kevin Woodhouse, District Clerk/Assistant to the General Manager Jennifer Woodworth, Natural Resources Manager Kirk Lenington, Land & Facilities Manager Brian Malone, Planning Manager Jane Mark, Engineering & Construction Manager Jay Lin, Senior Property Management Specialist Elaina Cuzick, Planner III Lisa Bankosh, Grants Specialist Melanie Askay ORAL COMMUNICATIONS Barbara Hooper resident of La Honda spoke expressed her concerns regarding the proposed public access plan to the Red Barn Area, including preserving the rural character of the area and ensuring safety for visitors due to increased traffic in the area. Bo Meehan requested clarification regarding horse access to the Driscoll Ranch and La Honda area. ADOPTION OF AGENDA Motion: Director Riffle moved, and Director Harris seconded the motion to adopt the agenda. VOTE: 6-0-0 (Director Hanko absent) CONSENT CALENDAR Public comment opened at 7:10 p.m. No speakers. Meeting 17-15 Page 3 Public comment closed at 7:10 p.m. Motion: Director Cyr moved, and Director Harris seconded the motion to approve the Consent Calendar, with the exception of Items 8, 9, and 10. VOTE: 6-0-0 (Director Hanko absent) 1. Approve May 24, 2017, June 6, 2017, and June 14, 2017 Minutes 2. Claims Report 3. Agreement with Oregon State University to Test Revegetation Sites for Soil Diseases (R-17-85) General Manager’s Recommendation: 1. Authorize the General Manager to approve an agreement with Oregon State University for an amount not-to-exceed $90,000 to test revegetation sites in District preserves for soil diseases and develop any recommended remedial actions. 2. Determine that the recommended action is categorically exempt from the California Environmental Quality Act. 4. Agreement to Manage Slender False Brome on Private Properties near District Preserves (R-17-78) General Manager’s Recommendation: Authorize the General Manager to: 1. Approve a cooperative agreement with the San Mateo County Resource Conservation District for a total of $100,000 in Fiscal Year 2017-18 to treat slender false brome on private properties near District preserves. 2. Exercise the option to extend the agreement for a second and third year if the program is successful for a total not-to-exceed amount of $300,000 over the three-year term. 5. Authorization to Purchase Capital Equipment for Fiscal Year 2017-18 (R-17-83) General Manager’s Recommendation: 1. Authorize the General Manager to execute a purchase contract with the State Department of General Services and associated contract dealers for five patrol vehicles and nine maintenance vehicles, for a total cost not-to-exceed $740,000. 2. Authorize the General Manager to execute a purchase contract with the State Department of General Services and associated contract dealers for one aerial lift truck, one tracked chipper, and one mini-excavator, for a total cost not-to-exceed $330,000. 6. Contract amendment with H.T. Harvey & Associates for Bat Relocation and Habitat Replacement at the former Alma College site at Bear Creek Redwoods Open Space Preserve (R-17-77) General Manager’s Recommendation: Amend a contract with H.T. Harvey & Associates for the Alma College Bat Relocation and Habitat Replacement Project in an amount of $71,432, and allocate a separate contingency of $9,473, for a total not-to-exceed contract amount of $104,207. Meeting 17-15 Page 4 Director Harris requested a future staff report on the status of this bat relocation after future monitoring. 7. Agreement with City of Mountain View to Provide District Radio Dispatch Services (R-17-84) General Manager’s Recommendation: Authorize the General Manager to execute a one-year agreement with the City of Mountain View to provide the District 24-hour radio dispatch service, with the option to extend the agreement for one additional year, in an amount not-to-exceed $197,800 in Fiscal Year 2017–18 and an amount not-to-exceed $217,810 for Fiscal Year 2018– 19. 8. Structure Demolition at 1150 Sears Ranch Road in La Honda Creek Open Space Preserve (R-17-74) Director Riffle pulled Item 8. Director Riffle expressed his concern that the house being demolished was being replaced. That explanation was provided as part of Item 14. Public comment opened at 8:33 p.m. No speakers. Public comment closed at 8:33 p.m. Director Riffle commented on the District’s need to be part of a solution for a housing shortage in San Mateo County and suggested a future Board discussion on the topic. Director Siemens suggested the District may consider leasing District land in the future to be used by other agencies to build agricultural workforce housing. Motion: Director Harris moved, and Director Riffle seconded the motion: General Manager’s Recommendation: Approve the demolition of an unoccupied residence structure that lacks a foundation and has other structural issues and an associated shed located at 1150 Sears Ranch Road in La Honda Creek Open Space Preserve. VOTE: 6-0-0 (Director Hanko absent) 9. Award of Contract to GradeTech Inc., for construction of the Sears Ranch Road Parking Area and Driveway Improvements, and site cleanup work at La Honda Creek Open Space Preserve for a Base Amount Not-to-Exceed $678,888 and a Separate 15% Contingency of $101,833. (R-17-60) Item 9 was pulled due to its connection to Item 8. Public comment opened at 8:39 p.m. Meeting 17-15 Page 5 No speakers. Public comment closed at 8:39 p.m. Motion: Director Riffle moved, and Director Cyr seconded the motion: General Manager’s Recommendation: 1. Authorize the General Manager to enter into contract with GradeTech Inc., of San Ramon, California for a not-to-exceed base contract amount of $678,888. 2. Authorize a 15% construction contract contingency of $101,833 to be reserved for unanticipated issues, thus allowing the total contract amount not-to-exceed $780,721. VOTE: 6-0-0 (Director Hanko absent) 10. Contract authorization with Santa Clara County FireSafe Council for removal of eucalyptus trees in Los Trancos Open Space Preserve (R-17-73) Director Kishimoto pulled Item 10. Director Kishimoto spoke regarding the community’s support to remove the eucalyptus trees and inquired regarding the replacement plan for the trees and the need for neighbor involvement in the decision. Director Kishimoto asked staff to return to the Board with the proposed replacement plan. Area Manager Craig Beckman reported he met with Palo Alto city staff, who were interested in a replacement plan, but the details have not been determined. Public comment opened at 8:46 p.m. No speakers. Public comment closed at 8:46 p.m. Motion: Director Kishimoto moved, and Director Riffle seconded the motion: General Manager’s Recommendation: Authorize the General Manager to enter into a contract with Santa Clara County FireSafe Council for the removal of eucalyptus trees in Los Trancos Open Space Preserve for fire safety and appropriate mitigation plan, in an amount not to exceed $276,000, for a period from the date of execution through November 30, 2020 with options to extend the length of the contract for an additional two years. Director Harris suggested a separate recommendation related to the mitigation plan. Ms. Askay explained the District will be providing matching funds to support the FireSafe Council’s grant application. The District already intended to enter into a contract with the FireSafe Council to remove the trees. Meeting 17-15 Page 6 Land and Facilities Manager Brian Malone explained the scope of the contract would not be altered by the Director Kishimoto’s motion because mitigation is already included in the contract. VOTE: 5-0-1 (Director Hanko absent; Director Harris abstained) Mr. Abbors commented on the need for the Board to examine policies separate from the decisions that are before them, so policy decisions are not made on a case-by-case basis. 11. Contract Amendment with MKThink for Basic Programming for the Administrative Office Project (R-17-54) General Manager’s Recommendation: Authorize the General Manager to execute a contract amendment with MKThink to complete basic programming services for the Administrative Office Project in an amount of $48,000, for a total not-to-exceed contract amount of $117,000. 12. Award of Contract with PGA Design, Inc., to provide design and engineering services for the Alma College Cultural Landscape Rehabilitation Project at Bear Creek Redwoods Open Space Preserve (R-17-86) General Manager’s Recommendation: 1. Authorize the General Manager to enter into a contract with PGA Design, Inc., to provide design and engineering services, complete construction plans, and provide permitting support for the Alma College Cultural Landscape Rehabilitation Project at Bear Creek Redwoods Open Space Preserve for a not-to-exceed amount of $472,008. 2. Authorize a separate contract allowance of $47,200 specifically for additional permitting, design, and public meeting preparation and attendance related to the Santa Clara County Historical Heritage Commission permitting process that are beyond the current scope of work to avoid potential implementation delays. 3. Authorize a 15% contingency of $70,800 to cover potential unforeseen design requirements. BOARD BUSINESS 13. Memorandum of Understanding with Santa Clara Valley Water District for riparian invasive species removal in Bear Creek Redwoods Open Space Preserve (R-17-79) Grants Specialist Melanie Askay provided the staff presentation describing the District’s goals for seeking grants, including offsetting and leveraging existing funds, increasing District impact, and expanding the District’s responsiveness to current conservation challenges. Ms. Askay outlined the District’s grant-seeking principles, techniques for leveraging District funds, and near-term grants program priorities. Currently, she is working to identify and apply for grants, build relationships, develop a grants workflow, build a grants database, etc. Integrated Pest Management Coordinator Coty Sifuentes-Winter explained staff has pursued a Measure B grant from the Santa Clara Valley Water District for invasive species removal in the Bear Creek Redwoods Open Space Preserve. The current funding is for Bear Creek Redwoods, but additional funds could be pursued for other District preserves in the watershed. Funds would be used to implement the District’ Integrated Pest Management program along roads and trail, Meeting 17-15 Page 7 remove invasive species, and for fire protection tasks along Highway 17 and near Bear Creek Stables. Mr. Sifuentes-Winter described the various task orders to be funded by the grant. Public comment opened at 7:22 p.m. No speakers present. Public comment closed at 7:22 p.m. Motion: Director Kishimoto moved, and Director Riffle seconded the motion to: 1. Authorize the General Manager to enter into a Memorandum of Understanding (MOU) with Santa Clara Valley Water District to receive $200,000 per year for up to five years, to implement invasive species removal in Bear Creek Redwoods Open Space Preserve; authorize the General Manager to approve subsequent Task Orders resulting from the MOU. 2. Adopt a resolution approving the proposed Budget Amendment, adding $200,000 to the Bear Creek Redwoods Invasive Weed Treatment budget (MAA21-007). 3. Authorize the General Manager to amend a contract with Ecological Concerns of Santa Cruz, CA, adding $200,000, for a total not-to-exceed amount of $573,483, to perform work associated with the MOU. The contract amendment would be funded through funds secured under the MOU. VOTE: 6-0-0 (Director Hanko absent) 14. Construction of Agricultural Workforce Housing in the Former Driscoll Ranch Area of La Honda Creek Open Space Preserve (R-17-75) Senior Property Management Specialist Elaina Cuzick provided the staff report describing the Driscoll Ranch grazing lease and its inclusion of agricultural workforce housing. Ms. Cuzick described San Mateo County’s set aside of Measure A funds to support a variety of initiatives related to agricultural workforce housing. Various phases have included a needs assessment, replacement and rehabilitation projects, study of regulatory barriers to agricultural workforce housing, etc. Ms. Cuzick summarized the District’s Farmworker Housing Rehabilitation Pilot Program; the determination that the Sears house was inhabitable; and relocation of the ranch worker living at the Sears house. Ms. Cuzick described the two proposed locations and cost estimates for the agricultural workforce housing pending water assessment at each site location for well development. Ms. Cuzick reviewed the District’s factors to consider for structures disposition related to the proposed agricultural workforce housing. To receive Measure A funding, San Mateo County requires the home to remain agricultural workforce housing for the life of the unit or repay the funding. San Mateo County Supervisor Don Horsley spoke regarding the proposed agricultural workforce housing project and thanked the District for its commitment to the project. Director Riffle inquired regarding agricultural workforce housing shortage in San Mateo County. Supervisor Horsley described the County’s needs assessment and spoke regarding the need to labor in the area to support the agricultural industry in the County. Meeting 17-15 Page 8 Director Kishimoto inquired if the County looked at how other areas in California address this problem. Supervisor Horsley explained that he visited agricultural workforce housing in Napa County where many laborers are migrant workers and live in dormitory style housing. However, many of the agricultural laborers in San Mateo County live here with their families. Director Kishimoto inquired regarding the lifecycle cost of the modular housing as opposed to traditional homes. Ms. Cuzick reported staff did not study lifecycle costs for the housing, but modular homes are built to the same code requirements as stick frame homes. Engineering and Construction Manager Jay Lin explained that many modular homes carry a warranty, which would cover maintenance. The initial cost for the site preparation is approximately $8,000 for a modular home or approximately $23,000 for traditional housing. Director Siemens expressed concern regarding the type of home being proposed stating his belief that is should be a quality product. General Manager Steve Abbors described the modular home proposed for this project and suggested staff can return with additional information describing the type of home proposed for installation. Director Hassett also requested a lifecycle analysis for the proposed home style. Public comment opened at 8:05 p.m. Bob Meehan spoke in favor of keeping homes in the area instead of demolishing them and suggested the District could offer its housing the agricultural workers rather than District employees. Doniga Markegard suggested that if a home is demolished that it should be replaced. Additionally, the home should be available to agricultural workers throughout the County. Ms. Markegard spoke regarding the District’s past mistakes of demolishing homes in the area and spoke in favor building agricultural workforce housing in the area. Ms. Markegard requested a meeting with the District to discuss the need for agricultural workforce housing in the area. Randy Vail employee of the La Honda Unified School District spoke regarding the poor condition of housing that many of his students live in. Mr. Vail spoke in favor of building homes in the areas that will last for several generations. Mr. Vail thanked the District for its work on the project. Public comment closed at 8:13 p.m. Motion: Director Kishimoto moved, and Director Siemens seconded the motion to: 1. Approve construction of agricultural workforce housing at either 900 Sears Ranch Road or 1150 Sears Ranch Road in La Honda Creek Open Space Preserve to serve the conservation grazing program. Meeting 17-15 Page 9 2. Adopt a resolution authorizing the General Manger to enter into a partnership agreement with San Mateo County for a forgivable fifteen-year, no-interest Farmworker Housing Pilot Program Phase III loan for $150,000 and permanently designate the residence as agricultural workforce housing. 3. Authorize the General Manager to amend the lease with AGCO Hay LLC, the onsite conservation-grazing tenant, to formalize the requirements of the Farmworker Housing Pilot Program Phase III between the District and the grazing tenant. 4. Direct staff to confirm construction of proposed modular unit and a life cycle analysis of the proposed construction and return to the Board if staff finds that the proposed home style is different than the modular homes described to the Board or has an unfavorable result to the lifecycle analysis. VOTE: 6-0-0 (Director Hanko absent) 15. Amendment to the La Honda Creek Open Space Preserve Master Plan to include One Proposed New Trail Loop and New Trail Names for the Preserve (R-17-76) Planner III Lisa Bankosh described the phased implementation of the La Honda Creek Master Plan, including the Phase I Trails Plan, including equestrian access to the preserve. The proposed Master Plan amendment would provide a 1.3 mile loop for trail users that would be connected to a future trail. Ms. Bankosh described the proposed Harrington Creek Trail, Folder Ranch Loop Trail, Cielo Trail, and Coho Vista Trail. Director Riffle inquired regarding when the trails would be open to the public. The trail would be open depending on the trail conditions. Public comment opened at 8:30 p.m. No speakers present. Public comment closed at 8:30p.m. Motion: Director Riffle moved, and Director Cyr seconded the motion to: 1. Approve an amendment to the La Honda Creek Open Space Preserve Master Plan to add a one-mile trail loop; 2. Approve the following trail names: “Harrington Creek Trail” for the main ranch road in lower La Honda Creek Open Space Preserve; “Folger Ranch Loop Trail” for a new loop trail off the main ranch road; “Coho Vista Trail” for the existing trail to the vista point in upper La Honda Creek; and “Cielo Trail” for an existing trail leading to the Redwood Cabin area. VOTE: 6-0-0 (Director Hanko absent) INFORMATIONAL REPORTS A. Committee Reports Director Cyr reported on the June 27, 2017 Legislative, Funding, & Public Affairs Committee meeting. Meeting 17-15 Page 10 Mr. Abbors provided additional information regarding SB482. Director Riffle reported on the June 20, 2017 Board Appointee Evaluation Committee meeting. B. Staff Reports Mr. Abbors provided a brief update on various district projects, including Mt. Umunhum, state legislation, and the Hayes House demolition. C. Director Reports The Board members submitted their compensatory reports. Director Harris reported she met Mr. Kahn whom the District recently purchased property from and who spoke highly of District staff. Directors Riffle and Kishimoto reported on their attendance at a stakeholders meeting regarding Rancho San Antonio access concerns. ADJOURNMENT President Hassett adjourned the regular meeting of the Board of Directors of the Midpeninsula Regional Open Space District at 9:08 p.m. ________________________________ Jennifer Woodworth, MMC District Clerk page 1 of 4 CLAIMS REPORT MEETING 17-15 DATE 07-12-2017 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Check Number Notes Vendor No. and Name Invoice Description Check Date Payment Amount 75358 11709 - D-LINE CONSTRUCTORS, INC.Mt Um Summit Public Access Construction Improvements - May/June 06/28/2017 955,460.46$ 75359 10463 - DELL BUSINESS CREDIT 20x Rugged Notebooks for Vistor Services Patrol Staff 06/28/2017 48,396.83$ 75360 11772 - AHERN RENTALS, INC.Roller/excavator/bulldozer rental -- CM, PC, SG road work 06/28/2017 29,711.04$ 11762 - LEHR AUTO ELECTRIC Docks and Mounts For Patrol Vehicle Laptops 06/28/2017 29,586.42$ 11152 - WELLINGTON PARK INVESTORS July 2017 Rent (AO 2/3/4)07/03/2017 29,483.00$ 75365 10546 - ECOLOGICAL CONCERNS INC Weed Management - BCR/LHC/ OSPs 06/28/2017 29,280.00$ 75368 11502 - HALF MOON BAY GRADING & PAVING INC.Driveway Repair - RR 07/05/2017 26,470.14$ 75369 11533 - NBCUNIVERSAL MEDIA, LLC 2017 OpenRoads Founding Sponsorship 06/28/2017 25,000.00$ 75370 10684 - BUTANO GEOTECHNICAL ENGINEERING Mt. Umunhum - Sr. Engineer Fees 07/05/2017 22,875.50$ 10133 - KIER & WRIGHT CIVIL ENGINEERS & SURVEYORS INC 240 Cristich Lane (SAO) Acquisition Surveys 06/28/2017 20,665.30$ 75372 11572 - MESITI-MILLER ENGINEERING INC.CE for Mt Umunhum Stairs 06/28/2017 15,351.00$ 75373 10136 - SAN JOSE WATER COMPANY Service Installation Work Bear Creek 06/28/2017 13,999.00$ 75374 11780 - TERRY J MARTIN ASSOCIATES Commercial Design Part 1-4 (New SAO Office)07/05/2017 13,717.50$ 75376 10684 - BUTANO GEOTECHNICAL ENGINEERING Mt. Umunhum - Field Engineering Technician Fees 06/28/2017 11,818.00$ 11177 - HARRIS CONSTRUCTION Trenching For Underground Electrical - SG/ Mowing & Demo PCR 07/05/2017 11,791.50$ 10235 - DEPARTMENT OF WATER RESOURCES Ricky Dam Annual Fees -- SR 06/28/2017 10,724.00$ 75377 11609 - GOVERNMENT TECHNOLOGY SOLUTIONS, INC.WatchGuard Firewall Configuration 06/28/2017 10,375.00$ 10687 - PACIFIC LEGACY INC BCR Cultural Evaluation Laundry Site 07/05/2017 8,928.47$ 75378 11795 - LC Networks Inc SFO/FFO Network Cables Installation 07/05/2017 8,433.25$ 75380 10452 - IFLAND SURVEY Lot Line Adjustment - Purisima Farm Uplands - PCR 06/28/2017 7,440.00$ 75382 10419 - LINCOLN NATIONAL LIFE INSURANCE COMPANY MPOSD-BL-490450 AD&D/LIFE/LTD 06/30/2017 7,033.76$ 11153 - FLOORING DISTRIBUTORS CA Flooring In Sun Room At 486 Allen Road, La Honda, CA 06/28/2017 6,750.00$ 75385 11797 - ANTENNA AUDIO, INC.1st intallment - production interactive tour app for Mt Um 06/28/2017 6,666.14$ 75386 10104 - STANFORD UNIVERSITY Tuition A Ruiz - Local Governance Institute 06/28/2017 6,000.00$ 75387 11751 - STILLWATER SCIENCES Lit. Review Synthesis & MuzziProperty Rip. Width Evaluation 07/05/2017 5,708.25$ 11470 - AECOM TECHNICAL SERVICES, INC.Biomonitor For Mowing - TC 06/28/2017 5,639.41$ 10190 - METROMOBILE COMMUNICATIONS Install Dock, Mount, Antenna - P84/Radio for ATV 06/28/2017 5,230.24$ 75390 10222 - HERC RENTALS INC Excavator Rental for Mt Thayer 06/28/2017 5,183.91$ 75391 10466 - BAY AREA RIDGE TRAIL COUNCIL 2017 Bay Area Ridge Trail Council Membership Dues 06/28/2017 5,000.00$ 11774 - CPS HR Consulting HR Mgr Recruitment 06/28/2017 5,000.00$ 11462 - MANAGEMENT PARTNERS Midpen PA Mgmt Svcs (Butterfield)06/28/2017 4,797.90$ 75392 11699 - DAKOTA PRESS Printing Services: Small Trail Brochure 06/28/2017 4,597.91$ 75393 10307 - THE SIGN SHOP SFO & FFO Gate Numbers and Letters/Logo Striping M215/219/221 A102/103/104 07/05/2017 4,504.11$ 11159 - FIREWHAT.COM Annual Wildland Fire Refresher Training 06/28/2017 4,420.00$ 75395 11788 - WATRY DESIGN, INC.Below Grade Parking Engineering Review Services - AO 07/05/2017 4,405.00$ 75396 10387 - WEST-MARK Install Fire Pumper on Vehicle - P112 06/28/2017 4,337.93$ 75397 10265 - PRIORITY 1 Emergency Equipment For ATV 06/28/2017 4,325.21$ *11432 - SAN MATEO COUNTY RESOURCE CONSERVATION DISTRICT Slender False Brome Control Contract Services 06/28/2017 4,286.97$ 75398 11682 - LAFLEUR ELECTRIC SERVICE New Underground Electrical Line For Well - SG 07/05/2017 4,269.95$ 75399 10146 - TIRES ON THE GO Tire Replacement - P110/P105/P94/P95/A94 06/28/2017 4,048.25$ 10665 - PAVEMENT ENGINEERING INC Mount Umunhum Road Design 07/05/2017 3,852.50$ 75401 11552 - ROBERT HALF TECHNOLOGY SharePoint Development Services 07/05/2017 3,840.00$ 75402 10222 - HERC RENTALS INC Excavator Rental for Mt Umunhum 07/05/2017 3,469.13$ 75403 11388 - WAGNER & BONSIGNORE Water Rights Reporting for BCR 06/28/2017 3,406.25$ 75405 11434 - 2M ASSOCIATES Zion Property Planning Analysis - MR 06/28/2017 3,225.00$ page 2 of 4 CLAIMS REPORT MEETING 17-15 DATE 07-12-2017 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Check Number Notes Vendor No. and Name Invoice Description Check Date Payment Amount 75406 10932 - RDO EQUIPMENT COMPANY T39 Tractor Repairs 07/05/2017 3,097.73$ 75407 10187 - GARDENLAND POWER EQUIPMENT Brushcutter repair/harness/chainsaw/chainsaw parts 07/05/2017 3,016.83$ 75411 10352 - CMK AUTOMOTIVE INC P104/P81/M31/P114 Service / Repair 06/28/2017 2,872.68$ 75415 11730 - STANDARD INSURANCE COMPANY RV Basic/Supplemental Life 00-752598-0008 County of Santa Clara MROSD 06/30/2017 2,573.49$ 75417 10583 - TPX COMMUNICATIONS AO Telephone Service + SAO Internet 6/17 07/05/2017 2,546.83$ 75418 11799 - Aztec Leasing, Inc.Sharp copier lease payment 06/28/2017 2,387.72$ 75419 10211 - PUBLIC POLICY ADVOCATES 2017 Monthly Fee-Legislative Advocacy Services for Month of JUNE 07/05/2017 2,375.42$ 75420 11530 - COASTSIDE.NET SFO Internet Upgrade Install and First Month Service 06/28/2017 2,338.09$ 75421 11379 - CALTRANS Cooperative Agreement with CalTrans - Hwy 17 Wildlife Crossing 07/05/2017 2,295.17$ 75422 11496 - STRUCTURE GROUPS Visual Inspection of Field Welding 06/28/2017 2,280.00$ 75423 11177 - HARRIS CONSTRUCTION Replace 2 Windows - TC & Mold Spray - MB 06/28/2017 2,265.50$ 75425 10032 - DEL REY BUILDING MAINTENANCE Monthly Janitorial Services June 2017/Supplies AO 06/28/2017 2,213.38$ 75427 11618 - TRAIL PEOPLE Highway 17 Crossing feasibility study 06/28/2017 2,139.00$ 10464 - CITY OF FOSTER CITY CalOpps Recruiting Website Annual Fee 12/21/16-12/20/17 06/28/2017 2,000.00$ 75428 10276 - PORTOLA PARK HEIGHTS PROPERTY OWNERS ASSOC Portola Heights Dues Parcels 12, 16, 22, 25 07/05/2017 2,000.00$ 11518 - RANCHING BY NATURE Mowing And Hand Pulling Thistle - TC 07/05/2017 1,950.00$ 75429 10073 - NORMAL DATA Training Database Work 06/28/2017 1,898.75$ 75430 10187 - GARDENLAND POWER EQUIPMENT New Brush Cutter & Supplies 06/28/2017 1,786.44$ 75431 10488 - CLEAN HARBORS ENVIRONMENTAL SE Hazmat Cleanup (RSACP)06/28/2017 1,626.93$ 75432 10195 - REDWOOD GENERAL TIRE CO INC P87/M07 New Tires 07/05/2017 1,548.85$ 75434 11194 - CREEKSIDE SCIENCE Biological Monitoring for Mt Um Road Construction 06/28/2017 1,500.00$ 10567 - EXAMINETICS INC OSHA Respiratory Testing 07/05/2017 1,440.00$ 75435 11523 - PGA DESIGN, INC.Professional Services for Alma College Site Rehabilitation 07/05/2017 1,407.50$ 75436 10017 - CATERING BY DANA DBA ABSOLUTE BARBECUE COMPANY Catering for Legislative Luncheon 2017 06/28/2017 1,393.66$ 75437 10213 - VISION SERVICE PLAN-CA Vision Premium 00 106067 0010 06/30/2017 1,327.86$ 10125 - MOFFETT SUPPLY COMPANY INC Restroom Supplies 06/28/2017 1,292.60$ 10230 - UNITED RENTALS NORTH AMERICA INC Pickup Truck Rental for Mt Um Road Project 5/22 - 6/19/17 07/05/2017 1,215.30$ 75438 10313 - JOHN SHELTON INC Culverts (SA-MT UM/BCR)06/28/2017 1,160.07$ 75439 10076 - OFFICE TEAM Front Desk Admin - A. Najafi 06/28/2017 1,066.91$ 75440 11722 - ADLER TANK RENTALS LLC Mt Um Water Tank Rental 5/01-5/31/17 06/28/2017 1,013.70$ 10796 - WEMORPH INC Print Change Shift & Amendment Forms 06/28/2017 914.78$ 10076 - OFFICE TEAM Front Desk Admin - A. Najafi 07/05/2017 851.50$ 75441 10120 - ADT SECURITY SERVICES INC SFO Alarm Service 06/28/2017 841.68$ 75442 11664 - LSQ FUNDING GROUP LC Temp staffing 06/28/2017 812.00$ 75443 11532 - CHANEY, MATT Tuition Reimbursement 06/28/2017 800.00$ 75444 10152 - TADCO SUPPLY Janitorial Supplies (RSA&CP)07/05/2017 782.46$ 75445 10447 - SIMMS PLUMBING & WATER EQUIPMENT Repair Water Line - LHC/Water Chlorination LHC/PCR 07/05/2017 751.61$ 75448 10352 - CMK AUTOMOTIVE INC P105/P99 Service 07/05/2017 746.64$ 75449 11551 - GREEN TEAM OF SAN JOSE Garbage Service (RSA/SAO)06/28/2017 738.47$ 75451 10259 - LENINGTON, KIRK Cell phone/mileage reimbursement 07/05/2017 687.61$ 75452 10528 - ALL STAR GLASS M201 WIndow Replacement 07/05/2017 651.27$ 75453 10309 - VERIZON WIRELESS Verizon Wireless Usage Mobile Data Plans 07/05/2017 624.40$ 10324 - RICH VOSS TRUCKING INC Trucking for Baserock for various Roads and Trails 07/05/2017 620.55$ 10774 - MICHAEL DEMPSEY, PATRICK DEMPSEY Water Delivery to Burkhart per Agreement 06/28/2017 600.00$ 11800 - KVO Industries, Inc.Volunteer Recognition Memorial 07/05/2017 522.42$ page 3 of 4 CLAIMS REPORT MEETING 17-15 DATE 07-12-2017 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Check Number Notes Vendor No. and Name Invoice Description Check Date Payment Amount 10309 - VERIZON WIRELESS Verizon Wireless LTE and Ranger Cell Phone 06/28/2017 514.26$ 10403 - UNITED SITE SERVICES INC United Site Services - Facilities for Wingding 07/05/2017 494.79$ 75454 10403 - UNITED SITE SERVICES INC Mt Um Trailer Electrical Equipment Rental 5/10-6/06/17 06/28/2017 489.41$ 75455 11479 - ROOTID Website maintenance - retainer hours 06/28/2017 472.50$ 75456 10082 - PATSONS MEDIA GROUP Printing Services: Bear Creek Redwoods Preserve Plan 06/28/2017 460.09$ 10122 - BECK'S SHOES Work Boots, District Provided - Mort 07/05/2017 459.64$ 75457 10130 - ROESSLER, CINDY Cell phone/mileage reimbursement 06/28/2017 450.63$ 75459 10544 - CORELOGIC INFORMATION SOLUTION Property Research Services 06/28/2017 450.00$ 75460 11233 - BAY AREA WATER TRUCKS Water Delivery to Burkhart per Agreement 06/28/2017 430.00$ 75461 10199 - TARGET SPECIALTY PRODUCTS Herbicide 07/05/2017 411.61$ 75463 10524 - ERGO WORKS Ergo Equipment Installation 06/28/2017 380.00$ 10180 - PG & E Electric Service (SA-MT UM)06/28/2017 347.28$ 75464 10093 - RENE HARDOY 05/17 Gardening Services 06/28/2017 325.00$ 10369 - MANNING, MEREDITH Mileage and Cell Phone Reimbursements 07/05/2017 297.01$ 75465 10302 - STEVENS CREEK QUARRY INC Base Rock (SAO)06/28/2017 285.90$ 75467 10697 - SANDIS Mt. Umunhum Road QSP Services 07/05/2017 270.00$ 75468 11744 - BERRY, WHITNEY Tuition Reimbursement 07/05/2017 249.00$ 75469 10172 - CALIFORNIA WATER SERVICE CO-3525 WH - Water 06/28/2017 244.18$ 75471 10170 - CASCADE FIRE EQUIPMENT COMPANY Fire Pants 07/05/2017 240.74$ 75472 10447 - SIMMS PLUMBING & WATER EQUIPMENT Clear Swere Line - SR 06/28/2017 232.86$ 75473 10173 - GREEN WASTE SFO garbage / recycle 07/05/2017 230.50$ 75474 10169 - FOSTER BROTHERS SECURITY SYSTEMS SFO Sesame Locks/Truck Box Keys 07/05/2017 220.56$ 75476 10195 - REDWOOD GENERAL TIRE CO INC M39 Tire Replacement 06/28/2017 202.09$ 75477 11433 - HERNANDEZ, MARIA Field Gear Reimbursement - Boots 07/05/2017 200.55$ 75478 11054 - SAN MATEO COUNTY HUMAN RESOURCES DEPARTMENT Training Class 07/05/2017 200.00$ 11649 - HUGG, JOSHUA Reimbursements legislative meetings Sacramento 07/05/2017 199.50$ 75479 *11326 - LEXISNEXIS Online Subscription May 2017 06/28/2017 198.00$ 75480 10168 - G & K SERVICES INC Shop Towel Service (FFO & SFO)07/05/2017 190.76$ 75481 10394 - INTERSTATE TRAFFIC CONTROL PRO Signs (RSA)06/28/2017 189.23$ 75482 10394 - INTERSTATE TRAFFIC CONTROL PRO Traffic Paint 07/05/2017 178.24$ 75483 10454 - CALIFORNIA WATER SERVICE CO-949 AO WATER SERVICE 06/28/2017 177.65$ 11752 - LIN, JASON Cell Phone and Mileage Reimbursement 07/05/2017 166.98$ 10176 - RE BORRMANN'S STEEL CO Steel Materials (FFO)07/05/2017 144.23$ 75484 10084 - PETE SIEMENS Mileage Reimbursement to Sacramento 06/28/2017 136.43$ 75485 *10664 - MISSION TRAIL WASTE SYSTEMS AO garbage services 06/28/2017 126.90$ 75486 11059 - SAN MATEO COUNTY HEALTH DEPT Tick and Water Testing 06/28/2017 122.00$ 10294 - AMERIGAS-SAN JOSE Propane Tank Rental (RSA-Annex)06/28/2017 111.18$ 75487 11449 - MARK, JANE Mileage and Cell Phone Reimbursement 06/28/2017 106.97$ 10960 - STATE WATER RESOURCES CONTROL Water Distrubution Operator Application 06/28/2017 100.00$ 10160 - OFFICE DEPOT CREDIT PLAN Office Supplies FFO 07/05/2017 98.88$ 10481 - PACIFIC TELEMANAGEMENT SERVICE MB campsite pay phone 07/05/2017 78.00$ 75489 10165 - UPS Ship Excess Items Back to Vendor 07/05/2017 52.82$ 75490 11549 - EMSL ANALYTICAL, INC Water Sample Test 07/05/2017 45.00$ 75491 11210 - DATA SAFE AO Shredding Services 06/28/2017 40.00$ 75492 10485 - AMERICAN RED CROSS-SVC CPR Training 07/05/2017 35.00$ page 4 of 4 CLAIMS REPORT MEETING 17-15 DATE 07-12-2017 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Check Number Notes Vendor No. and Name Invoice Description Check Date Payment Amount 75493 10421 - ID PLUS INC Name tags 06/28/2017 13.50$ 75494 10810 - A T & T Telephone Service 07/17 - WH 06/28/2017 11.73$ GRAND TOTAL 1,529,561.63$ *Annual Claims **Hawthorn Expenses BCR = Bear Creek Redwoods LH = La Honda Creek PR = Pulgas Ridge SG = Saratoga Gap TC = Tunitas Creek CC = Coal Creek LR = Long Ridge PC = Purisima Creek SA(U) = Sierra Azul (Mt Um) WH = Windy Hill ECM = El Corte de Madera LT = Los Trancos RSA = Rancho San Antonio SR= Skyline Ridge AO2, 3, 4 = Administrative Office lease space ES = El Sereno MR = Miramontes Ridge RV = Ravenswood SCS = Stevens Creek Shoreline Nature FFO = Foothills Field Office FH = Foothills MB = Monte Bello RR = Russian Ridge TH = Teague Hill SFO = Skyline Field Office FO = Fremont Older PIC= Picchetti Ranch SJH = St Joseph's Hill TW = Thornewood SAO = South Area Outpost RR/MIN = Russian Ridge - Mindego Hill PR = Pulgas Ridge DHF = Dear Hollow Farm OSP = Open Space Preserve P## or M## = Patrol or Maintenance Vehicle R-17-92 Meeting 17-16 July 12, 2017 AGENDA ITEM 3 AGENDA ITEM Award of Contract to Top Line Engineers, Inc., for construction of the Harkins Bridge Replacement Project at Purisima Creek Redwoods Open Space Preserve for a Base Contract Amount Not-to-Exceed $226,200 and a Separate 15% Contingency of $33,930 GENERAL MANAGER’S RECOMMENDATIONS 1. Authorize the General Manager to enter into a contract with Top Line Engineers, Inc., of Hayward, California for a not-to-exceed base contract amount of $226,200. 2. Authorize a 15% contingency of $33,930 to be reserved for unanticipated issues, thus allowing the total contract amount not-to-exceed $260,130. SUMMARY The scope of work for the Harkins Bridge Replacement Project includes removal of the existing railcar bridge, installation of a temporary bridge crossing for use during construction, and installation of a new District-supplied bridge approximately 100 feet upstream of the existing bridge location. A Request for Bids was issued on May 31, 2017. The District received four (4) bid proposals on Wednesday, June 21, 2017. Top Line Engineers, Inc., is the lowest responsive and responsible bidder. Therefore, the General Manager recommends awarding the contract to Top Line Engineers, Inc., for a base amount of $226,200, and authorizing a 15% contingency amount of $33,930. Sufficient funds for the Project are included in the Fiscal Year (FY)2017-18 Budget. Work would begin at the end of July or beginning of August. DISCUSSION In December 2014, the District contracted with Questa Engineering to complete assessments of several bridges and make recommendations for use, maintenance, or replacement. The existing Harkins Bridge, located near the lower parking lot of Purisima Creek Redwoods Open Space Preserve, was identified for replacement due to structural deterioration and lack of structural capacity to accommodate patrol, maintenance, and emergency vehicles. Use of the existing bridge is currently limited to equestrians, hikers, and bicyclists. Additionally, the existing bridge lies below the required height to accommodate a 50-year storm flow and is supported by soil and large, rotted redwood logs. Design, engineering and permitting work to replace the Harkins Bridge was included in the Board-approved FY2014-15 Action Plan. The design for this project was completed in 2016. Permits and consultations with the United States Fish and Wildlife Service, United States Army R-17-92 Page 2 Corp of Engineers, Regional Water Quality Control Board, and San Mateo County were secured or completed in June 2017. The scope of work under the recommended contract includes: • Creek water management • Erosion control • Addition of aggregate road base • Temporary bridge installation • Existing bridge removal and disposal • Miscellaneous demolition, removal of two (2) Alder trees, and material disposal • Concrete installation for footings and piles • New bridge installation • Planting restoration Demolition Waste Stream Diversion At the January 14, 2015 regular meeting (R-15-01), the Board approved the Construction and Demolition Waste Diversion Policy (Policy number 4.08), which sets as a goal the 100% diversion of recyclable and salvageable construction and demolition material. The existing bridge consists of partially rotted wood and an old rail car for support. The contractor will recycle as much material from the existing bridge as possible. The temporary bridge will be constructed in a fashion that the materials used will be able to be reused by the contractor on a future project. Top Line Engineers, Inc., Selection A Request for Bids was issued on May 31, 2017 and released to six (6) builders’ exchanges. A legal notice was posted in the San Jose Mercury News and an Invitation to Bid was posted on the District website. Finally, staff contacted twenty-one (21) contractors to notify them of this Project prior to bid. A pre-bid meeting was held on June 8, 2017. Four (4) prime contractors attended this pre-bid meeting. Four (4) bids were received on June 21, 2017 as listed below: Bidder Location Total Bid Percent +/- from Engineer’s Estimate ($251,000) Top Line Engineers, Inc. Hayward, CA $226,200 (11%) Bridgeway Civil Constructers Fairfield, CA $370,530 48% Granite Rock Company Watsonville, CA $380,613 52 % McGuire & Hester Oakland, CA $399,795 59% Upon review of the Bid Proposals and confirmation of the contractor’s qualifications, the General Manager recommends awarding the contract to Top Line Engineers, Inc., as the lowest responsible bidder who submitted a responsive bid. FISCAL IMPACT The 5-year Measure AA Project List approved by the Board at their October 29, 2014 meeting includes Portfolio #3, “Purisima Creek Redwoods: Purisima-to-Sea Trail Completion, R-17-92 Page 3 Watershed Protection & Conservation Grazing Projects”, with a total allocation of $7,608,000. MAA 03-04 covers all work associated with the Harkins Bridge demolition and replacement. Replacement of the bridge is important to realize the larger Purisima-to-the-Sea Trail corridor, as this bridge serves to connect multi-use trail visitors to the northernmost area of the Preserve and to the designated Ridge Trail corridor. The proposed FY2017-18 MAA03-004 construction budget holds $299,000 for the Harkins Bridge Replacement Project. There are sufficient funds in the upcoming budget to cover the recommended actions and expenditures. FY2017-18 Harkins Bridge Replacement Project construction budget (MAA 03-04) $299,000 Spent-to-Date as of 7/1/2017 $0 Encumbrances: $0 Award of Contract: $226,200 Contingency 15%: $33,930 Budget Remaining (Proposed): $38,870 The following table outlines the Measure AA #003 Portfolio budget, costs-to-date, and the fiscal impact related to the Harkins Bridge Replacement Project. MAA 003 Portfolio Appropriation $7,608,000 Life-to-Date Spent as of 6/30/2017: $464,703 Encumbrances: $69,702 Harkins Bridge Replacement Project (including 15% contingency): $260,130 Portfolio Balance Remaining (Proposed): $6,813,465 BOARD COMMITTEE REVIEW The Planning and Natural Resources Committee reviewed the conceptual project design and budget on April 15, 2014. The Board subsequently approved the conceptual design of a prefabricated truss bridge on April 23, 2014. The Board also approved a contract with Excel Bridge on March 11, 2015 for prefabrication of the bridge. PUBLIC NOTICE Public notice of this Agenda Item was provided as required by the Brown Act. CEQA COMPLIANCE The Board certified an Initial Study/Mitigated Negative Declaration for the Project on December 17, 2014. R-17-92 Page 4 NEXT STEPS If approved, the General Manager will enter into a contract with Top Line Engineers, Inc. Final contract signature is subject to meeting all District requirements, such as having all required insurance and bonding in place. Project construction will begin no later than August 2017 and be completed by the end of October 2017. Attachment 1.Site Access and Project Site Map Responsible Department Head: Jason Lin, Engineering and Construction Department Manager Prepared by: Matt Brunnings, Capital Project Manager, Engineering and Construction Department Graphics prepared by: Torie Robinson, GIS Intern McGov e r n R i d g e McGov e r n R i d g e Pise Hill 2 Pise Lookout Hig g i n s C a n y o n Hig g i n s C a n y o n Purisima CreekRedwoods Madonna C r e e k Ranch Miramontes RidgeOpen Space Preserve Burleigh H. MurrayRanch State Park ElkusRanch Crystal Springs Watershed(City and Co. of San FranciscoWater Co.) Purisima CreekRedwoodsOpen SpacePreserve BlueBrush Purisima Creek Rd Higgins C a n y o n R d P u r i s i m a CreekTrail N o r t h R i d g e T rail H ar k i ns RidgeTrailWhittemoreGulchTrail B a l d Knob T r a i l Craig B r i t t o n T r a i l IrishRidgeTrail GrabtownGulc h T r ail B ordenHatchMillTrail L o b i t o s Creek Tra il G r a b t o w n G u l c h T r a i l Purisi m a Creek A rroyo Leon Lobito s Creek T u n i t a s C r e e k M ills C r e e k Mitchel C r e e k M i tc h e l C r e e k M ill s C r e e k Purisima Creek Arro y o Leon Mill s C r e e k Midpeninsula RegionalOpen Space District Harkins Project Location Map July, 2014 Pa t h : G : \ P r o j e c t s \ P u r i s i m a _ C r e e k _ R e d w o o d s \ P u r i s i m a C r e e k B r i d g e s \ P r o j e c t L o c a t i o n V 2 . m x d Cr e a t e d B y : a h e b e r t 0 0.50.25MilesI (MROSD)Other Protected Open Spaceor Park Lands Management Agreement Non MROSD Conservationor Agricultural Easement MROSD Conservationor Agricultural Easement MROSD Preserves Private Property Developed Land While the District strives to use the best available digital data, this data does not represent a legal survey and is merely a graphic illustration of geographic features. Watershed Land ! ! ! !! ! ! ! ! ! ! ! ! ! ! ! !San Mateo Area ofDetail ^_ Project Location EXHIBIT 1 Attachment 1 R-17-96 Meeting 17-16 July 12, 2017 AGENDA ITEM 4 AGENDA ITEM Fiscal Year 2017-18 Annual Claims List GENERAL MANAGER’S RECOMMENDATION Approve the Fiscal Year 2017-18 Annual Claims List, including debt service payments. SUMMARY Pursuant to Board Policy 1.03, the Annual Claims list for Fiscal Year 2017-18 (FY2017-18) is hereby submitted to the Board of Directors (Board) for review and approval so that salaries and benefits, debt service, and recurring expenses may be paid in a timely and efficient manner. DISCUSSION The Annual Claims list provided as part of this report includes claims that exceed $50,000. On December 16, 2015, the Board authorized the General Manager or designee to approve the payment of claims up to $50,000, subject to Board ratification at the next Regular Board meeting (R-15-163). Subsequently, at the Regular Board Meeting on March 22, 2017, the Board authorized the release of claim payments over $50,000, without holding for Board approval, but continue to provide the claims report to the Board for its review after payment. In light of this delegation of payment approval authority, it is redundant to list claims that are less than $50,000 on the Annual Claims List. Approval of the proposed Annual Claims would authorize the accounting office to pay salaries and benefits, debt service, and recurring services in a timely and efficient manner. This item also minimizes late fees, finance charges, and urgent check requests. Recusal Statements Included as part of the Annual Claims on page 2 of this report is a recusal statement that is read by the presiding Board President for Director Hanko on her economic conflict of interests in AT&T, Verizon, and PG&E claims. The purpose of this annual recusal statement is to enable Director Hanko to meet her conflict of interest recusal responsibilities at one annual meeting rather than being required to repeat the same recusal statement at each regular Board meeting when claims are presented on the Consent Calendar. If approved, recusals on AT&T, Verizon, and PG&E claims by Director Hanko will not need to be made at each regular Board meeting. On September 1, 2016, Director Riffle disclosed to the Board a remote interest under Government Code 1091(a) as a salaried employee of the non-profit organization Peninsula Open Space Trust (POST). After consultation with the Fair Political Practices Commission and the District’s General Counsel, it was determined that the employment relationship with POST is a categorized as a “remote interest” under Government Code section 1091, and that such remote R-17-96 Page 2 interest would not trigger the contracting ban under Government Code section 1090. To remain consistent with that law, however, Director Riffle needs to recuse himself from all Board agenda items that affect financial matters relating to POST and the District. Debt Service Claims The debt service claims listed below for FY2017-18 reflect payments required of the Midpeninsula Regional Open Space District to meet the outstanding District debt obligations for the current fiscal year: Annual Claims The annual claims listed below for FY2017-18 reflect payments in excess of the General Manager’s authority: ANNUAL CLAIMS ITEM DESCRIPTION AMOUNT Staff Salaries $16,425,516 Debt Service (includes note paying agent fees) $11,721,637 Group Insurance Premiums $3,042,145 Retirement Plans $2,036,472 State Mandated Insurance-Unemployment & Workers Comp. $512,155 Wellington Park Investors (AO Office Leases) $358,266 Utilities - Electricity/Gas/Propane/Telephone/Cellular Telephone $240,620 R-17-96 Page 3 (PG&E***/Cal Water/Amerigas/Verizon***/AT&T***) Dispatch Services (City of Mountain View) $197,915 Property/Liability/Vehicle Insurance (CALJPIA) $171,447 Fuel - Valley Oil Company $135,000 TOTAL: $34,841,173 Annual Recusal Statement: Director Hanko is voluntarily recusing herself from voting on all claims for AT&T , Verizon, and PG&E. Annual and Project-Specific Recusals: Director Riffle is recusing himself, as required by law, from voting on all payments to POST that are authorized by the Board via this annual and all future recurring claims reports, and will also do so on an individual basis for project-specific Board actions involving financial transactions with POST. BOARD COMMITTEE REVIEW This item was not reviewed by a Board Committee; however, the Action Plan and Budget Committee reviewed the FY2017-18 District Budget in April/May. FISCAL IMPACT The listed Annual Claims have been included in the FY2017-18 District Budget, which was approved by the Board of Directors at the Regular Meeting of June 14, 2017 (R-17-89). PUBLIC NOTICE Public notice was provided as required by the Brown Act. No additional notice is required. CEQA COMPLIANCE Approval of the Annual Claims is not considered a project under the California Environmental Quality Act (CEQA) and no environmental review is required. NEXT STEPS With Board approval, staff will proceed with preparing open purchase orders for the listed vendors and pay invoices upon receipt. Attachments: 1. Detailed List of Debt Service Obligations FY2017-18 Responsible Manager: Stefan Jaskulak, Chief Financial Officer Prepared by: Andrew Taylor, Finance Manager Close of Remaining Principal Final FY 2017/2018 - Debt Service Payments Payable to Escrow Original Note Rate %Term At June 30, 2017 Payment Due Total Principal Interest Daloia 10/11/2002 240,000.00 6.25%15 Years 12,100.67 10/10/2017 12,385.01 12,100.67 284.34 Hunt 04/15/2003 1,500,000.00 5.50%10 years 1,500,000.00 04/01/2023 75,000.00 0.00 75,000.00 1,740,000.00 1,512,100.67 87,385.01 12,100.67 75,284.34 2011 Bonds 05/05/2011 20,500,000.00 2% to 6%30 years 1,080,000.00 09/01/2022 189,450.00 150,000.00 39,450.00 2012 Refunding Notes 02/02/2012 31,264,707.20 2% to 5%30 years 34,699,659.90 *09/01/2042 1,034,550.00 380,000.00 654,550.00 2015 Refunding Notes 01/22/2015 23,630,000.00 2% to 6%19 years 22,550,000.00 09/01/2034 1,821,550.00 735,000.00 1,086,550.00 2015 Measure AA GOs 07/29/2015 45,000,000.00 1.5% to 5%30 years 44,225,000.00 09/01/2045 2,593,593.75 875,000.00 1,718,593.75 2016 Refunding Green Bond 09/22/2016 57,410,000.00 3% to 5%30 years 57,410,000.00 09/01/2038 5,995,108.00 3,565,000.00 2,430,108.00 177,804,707.20 159,964,659.90 11,634,251.75 5,705,000.00 5,929,251.75 179,544,707.20 161,476,760.57 11,721,636.76 5,717,100.67 6,004,536.09 * Includes Accretions DEBT SERVICE FISCAL YEAR 2017-2018 ATTACHMENT 1 R-17-95 Meeting 17-16 July 12, 2017 AGENDA ITEM 5 AGENDA ITEM Revise Resolutions to Accurately Reflect Board Appointee Compensation in Response to California Public Employees’ Retirement System Public Agency Direction GENERAL MANAGER’S RECOMMENDATION Adopt two resolutions to supersede previous resolution that did not include language required by CalPERS to accurately reflect Employer Paid Member Contributions as special compensation for Board Appointees. SUMMARY The recommended action updates resolutions implementing existing compensation reporting practices by the District, with language required by the California Public Employees’ Retirement System (CalPERS). The proposed revision corrects language in the resolutions to accurately reflect the District’s practice to pay Employer Paid Member Contributions (EMPC) as special compensation for Board Appointees. The new resolutions bring the District into compliance with CalPERS requirements and these changes are cost-neutral. DISCUSSION CalPERS periodically reviews member agencies to ensure compliance with applicable sections of the California Government Code and provision of the CalPERS contract. CalPERS Office of Audit Services requires that the District revise and resubmit two resolutions to report the Employer Paid Member Contributions (EPMC) for the Board Appointees as special compensation. Although in practice the District did correctly report the EPMC as special compensation to CalPERS, the resolutions did not include the correct language required by CalPERS to accurately reflect this practice. The attached resolutions include the correct language prescribed by CalPERS and will supersede the previous inaccurate resolutions with the approval by the Board of Directors. FISCAL IMPACT There is no fiscal impact associated with the recommended action. BOARD COMMITTEE REVIEW This item was not reviewed by a Committee. R-17-95 Page 2 PUBLIC NOTICE Public notice was provided as required by the Brown Act. CEQA COMPLIANCE This item is not a project subject to the California Environmental Quality Act. NEXT STEPS Upon approval of the resolution, staff will send the revised resolution to CalPERS to be in compliance with CalPERS and state law. Attachment 1. Two Resolutions with language that correctly reports Employer Paid Member Contribution as special compensation for the Board Appointees. Responsible Department Head: Stefan Jaskulak, Chief Financial Officer/Director of Administrative Services Prepared by: Candice Basnight, Human Resources Supervisor Attachment 1 Resolutions/2017/17-__CalPERS-EPMC2013 1 RESOLUTION NO. 17-__ RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT FOR PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS WHEREAS, the Board of Directors of Midpeninsula Regional Open Space District has the authority to implement Government Code Section 20636(c) (4) pursuant to Section 20691; and WHEREAS, the Board of Directors of Midpeninsula Regional Open Space District has written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer, and reported as additional compensation; and WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption by the governing body of Midpeninsula Regional Open Space District of a Resolution to commence paying and reporting the value of said Employer Paid Member Contributions (EPMC); and WHEREAS, the Board of Directors of the Midpeninsula Regional Open Space District has identified the following conditions for the purpose of its election to pay EPMC; • This benefit shall apply to all employees of the Board Appointee Group • This benefit shall consist of paying two (2) percent of the normal contributions as EPMC, and reporting the same percent (value) of compensation earnable**{excluding Government Code Section 20636 (c) (4)} as additional compensation. • The effective date of this Resolution shall be October 28, 2013. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of Midpeninsula Regional Open Space District elects to pay and report the value of EPMC as set forth above. PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space District on ______, 2017, at a regular meeting thereof, by the following vote: * * * * * * * * * * * * * * * * * * * * AYES: NOES: ABSTAIN: ABSENT: Attachment 1 Resolutions/2017/17-__CalPERS-EPMC2013 2 ATTEST: APPROVED: Secretary Board of Directors President Board of Directors APPROVED AS TO FORM: General Counsel I, the District Clerk of the Midpeninsula Regional Open Space District, hereby certify that the above is a true and correct copy of a resolution duly adopted by the Board of Directors of the Midpeninsula Regional Open Space District by the above vote at a meeting thereof duly held and called on the above day. District Clerk *Note: Payment of EPMC as reporting the value of EPMC on compensation earnable is on pay rate and special compensation except special compensation delineated in Government Code Section 20636 (c)(4) which is the monetary value of EPMC on compensation earnable. Attachment 1 Resolutions/2017/17-__CalPERS-EPMC2015 1 RESOLUTION NO. 17-__ RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT FOR PAYING AND REPORTING THE VALUE OF EMPLOYER PAID MEMBER CONTRIBUTIONS WHEREAS, the Board of Directors of Midpeninsula Regional Open Space District has the authority to implement Government Code Section 20636(c) (4) pursuant to Section 20691 WHEREAS, the Board of Directors of Midpeninsula Regional Open Space District has written labor policy or agreement which specifically provides for the normal member contributions to be paid by the employer, and reported as additional compensation; WHEREAS, one of the steps in the procedures to implement Section 20691 is the adoption by the governing body of Midpeninsula Regional Open Space District of a Resolution to commence paying and reporting the value of said Employer Paid Member Contributions (EPMC); WHEREAS, the Board of Directors of the Midpeninsula Regional Open Space District has identified the following conditions for the purpose of its election to pay EPMC; • This benefit shall apply to all employees of the Board Appointee Group • This benefit shall consist of paying zero (0) percent of the normal contributions as EPMC, and reporting the same percent (value) of compensation earnable**{excluding Government Code Section 20636 (c) (4)} as additional compensation. • The effective date of this Resolution shall be February 11, 2015. NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of Midpeninsula Regional Open Space District elects to pay and report the value of EPMC as set forth above. PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space District on ____, 2017, at a regular meeting thereof, by the following vote: * * * * * * * * * * * * * * * * * * * * AYES: NOES: ABSTAIN: ABSENT: Attachment 1 Resolutions/2017/17-__CalPERS-EPMC2015 2 ATTEST: APPROVED: Secretary Board of Directors President Board of Directors APPROVED AS TO FORM: General Counsel I, the District Clerk of the Midpeninsula Regional Open Space District, hereby certify that the above is a true and correct copy of a resolution duly adopted by the Board of Directors of the Midpeninsula Regional Open Space District by the above vote at a meeting thereof duly held and called on the above day. District Clerk *Note: Payment of EPMC as reporting the value of EPMC on compensation earnable is on pay rate and special compensation except special compensation delineated in Government Code Section 20636 (c)(4) which is the monetary value of EPMC on compensation earnable. R-17-90 Meeting 17-16 July 12, 2017 AGENDA ITEM 6 AGENDA ITEM Proposed purchase of the Pearlman HIMY Los Altos LP Property as a potential new Administrative Office, located at 5050 El Camino Real, Los Altos in the County of Santa Clara (Assessor’s Parcel Number 170-04-054). GENERAL MANAGER’S RECOMMENDATIONS 1. Determine that the recommended actions are categorically exempt from the California Environmental Quality Act (CEQA), as set out in the staff report. 2. Adopt a Resolution authorizing the entry into a purchase and sale agreement for the Pearlman HIMY Los Altos LP Property at a cost of $31,550,100. 3. Authorize the General Manager to have full authority to make all property management decisions for the property after the close of escrow consistent with Board direction and the attached Resolution relating to the management of existing leases and upkeep of the property. 4. Authorize use of the General Fund Committed Infrastructure Reserve in an amount of $31,805,100, with a corresponding authorization to increase the Fiscal Year 2017-18 Real Property Budget, to cover the purchase price ($31,550,100), due diligence ($65,000), and escrow/commission costs ($190,000). 5. Authorize pursuit of financing options for $15 million for the property. SUMMARY The Midpeninsula Regional Open Space District (District) has a rare opportunity to purchase a larger office property in the City of Los Altos to meet current and long-term business needs. This purchase opportunity would replace the existing administrative office, which is too small and constrained to house the current administrative functions, staff, and equipment. The General Manager recommends Board authorization to utilize funding set aside in the General Fund Committed Infrastructure Reserve to proceed with the Pearlman HIMY Los Altos LP Property (Property) purchase. In accordance with the District Fund Balance Policy, the General Fund Committed Infrastructure Reserve may be utilized for improvements to field and office facilities. As part of this proposed purchase, a line item budget increase to the Fiscal Year 2017-18 budget of $31,805,100 for the purchase price, due diligence, and closing costs is required to proceed with the proposed acquisition. The General Manager further recommends seeking financing in an amount of $15 million to maintain sufficient funding in the General Fund Committed Infrastructure Reserve after acquisition and prior to sale of the current Administrative Office on R-17-90 Page 2 330 Distel Circle. The following report presents a description of the Property, the District’s environmental review, purchase terms, and financial considerations. BACKGROUND Over the last several years, the District has evaluated the options available to increase its current administrative office space to meet current and long-term business needs. The urgency for this evaluation increased with the organizational restructuring that has occurred since 2015 to accelerate project delivery, expand service delivery, and ensure sufficient resources to manage land and public access facilities. As part of the organizational restructuring, the District has increased its staffing capacity and outgrown its current 12,120 square foot administrative office building located at 330 Distel Circle, Los Altos. To accommodate staff, the District currently leases an additional 7,964 square feet of office space at an annual cost approaching $380,000. In 2015, as part of the evaluation of options for the administrative office, staff completed a staff facilities opportunities and constraint analysis and examined the current real estate market and the feasibility of building from the ground up at 330 Distel Circle. The following year, staff and the Facilities Ad Hoc Committee considered long-term options/solutions with the assistance of an architectural strategist (MKThink, Inc.). In January 2017 (R-17-08), the Board of Directors directed the General Manager to pursue building a new, three-story, 40,000 square foot building on site while continuing to monitor the real estate market for purchase opportunities. In May 2017, a viable real estate opportunity presented itself. DISCUSSION The Property for consideration is improved with a 39,010 square foot, two-story office building on a 63,162 square foot lot (1.45-acres). The Planning and Real Property Departments have inspected the property and confirmed that the available space and strategic location meet District needs. Staff quickly moved on bringing this opportunity before the Board for purchase consideration as this would be an “off the market” transaction. Property Advantages 1. Maintains similar location that works for the public and employees (within 70 feet of current office). 2. Includes sufficient parking for staff and the public. 3. Expedites the new facility compared to a rebuild at the existing District site. 4. Less uncertainty than building a new office from the ground up. 5. Estimated to be less costly than new construction. 6. Allows for future expansion (if needed) and for an ongoing income stream by leasing out extra space in the meantime. 7. Allows maximum flexibility with minimal interruption of staff or constituents compared with building new on current site. 8. Most environmentally friendly option (remodel vs. new construction) 9. Ability to sell current administrative office building to help offset the purchase price. Property Disadvantages 1. Purchase price is significant (but less than new construction). 2. At this time, remodel costs are preliminary and based on per square foot estimates. 3. ADA upgrades will be required. R-17-90 Page 3 4. Heating, ventilation, and air conditioning system may be reaching the end of useful life. 5. Addition of new green infrastructure/design features may be limited. 6. Sale of existing administrative office may not reach desired price/offset. Property Description and Regional Context (see attached map) The building on the property was constructed in 1982 and operates as a multi-tenant office building that is 100% leased to 25 tenants. The overall condition of the property is fair to good. The property has ample parking for an office building with 153 parking spaces (51 are underground) or a parking ratio near 4 spaces per 1,000 square feet. The underground, single- level parking garage is secure with drop down gates and contains lockable storage areas. The Property is located at the southeast corner of El Camino Real and Distel Circle in the City of Los Altos. The adjacent property uses are office and retail. The Property is within 70 feet of the District’s current administrative office. This Property would continue to act as a central location within District boundaries and continue to allow good access to the District’s preserves. Office Market This Property presents a rare opportunity to purchase an office building in an extremely tight and competitive market. Over the last couple of years, there have only been a handful of office transactions that could meet the District’s needs. The purchase price is considered fair market value for an owner user. Below is a chart of comparable office sales that have occurred within the last two years: Location Date Sold Building Size Sale Price 1. 490 S. California Avenue, Palo Alto July 2015 23,868 square feet $27,750,000 or $1,162 per square foot 2. 530 Lytton Avenue, Palo Alto September 2015 57,400 square feet $60,650,000 or $1,056 per square foot 3. 2465 Latham Street, Mountain View November 2015 42,622 square feet $33,350,000 or $782 per square foot 4. 100 View Street, Mountain View April 2016 42,876 square feet $55,000,000 or $1,282 per square foot 5. 445 Sherman Avenue, Palo Alto June 2016 23,215 square feet $24,300,000 or $1046 per square foot Subject Property 5050 El Camino Real, Los Altos N/A 39,010 square feet $31,550,100 or $808 per square foot The above comparable office sales are the most similar to the Property based on location, size, date sold and property type. As indicated on the above chart, the subject Property is at the lower end of the price scale based on a price per square foot comparison. This is mainly due to the superior locations of most of the comparable properties. Comparable sale number three (3) at 2465 Latham Street is the best comparable for the subject property as it is similar in size and location. Based on the sale date of 2465 Latham Street and the other comparables, the value of the subject property at $808 is supportable. The income approach to valuation also supports the value of the subject property. R-17-90 Page 4 The Los Altos, Palo Alto, and Mountain View office markets are some of the tightest and most expensive in the State and Country. The above chart provides an indication of the prices that the District would need to pay if it was to pursue purchasing another similar scale office building within this market area. Moreover, it is worth noting the extreme difficulty of a government agency competing with private entities in the open market. As additional context, the early and now dated estimates for the District to construct a new 40,000 square foot office building at 330 Distel Circle ranged from $35 to $40 million. The purchase of 5050 El Camino would allow the District to sell its Administrative Office at 330 Distel Circle, Los Altos to help offset the cost of the new office building. The District’s current Administrative Office has an estimated market value of approximately $7,500,000. Land Use and Improvements The property is located within the City of Los Altos’ Commercial Thoroughfare zoning area, which permits office use as a right. USE AND MANAGEMENT Not applicable TERMS AND CONDITIONS The purchase price and terms are as follows: • Purchase Price: $31,550,100 • Deposit: $3,100,000 • Contingency period: 20 days for general conditions, environmental, etc. (as a good faith effort and to accommodate our Board approval process, the seller has provided the District early access (since June 7, 2017) to review all of its property records and documents for a total of 56 days) • Closing costs: District would cover all closing costs (document transfer tax is generally one of the largest closing costs, but as a government agency the District is exempt) • Commission: 1% of purchase price (excluding the prepayment penalty) to Colliers International with the District and Seller splitting the cost 50/50 (District’s share: $155,000). • Escrow: 30 to 360 days with two, 90 day extensions and a 10 day call to close escrow (the seller requires maximum flexibility) • Property Management: The seller would continue to manage the property after the close of escrow on behalf of the District per a property management agreement under the General Manager’s authority until the District is able to take over management. The purchase price is regarded as fair market value for the property considering both the sale comparison and income approaches. The Property’s close proximity (70 feet) to the District’s administrative office building is an ideal location as the public and employees are accustomed to this location and it can accommodate the District’s larger field vehicles when needed. The purchase price of this property, including the prepayment penalty, is $806 per square foot based on the building square footage. This property falls within the comparable sales range of $782 to $1,282 per square foot for like properties in the surrounding Los Altos, Palo Alto, and Mountain View markets. R-17-90 Page 5 The property currently has a strong income stream from the existing tenants, the District could take advantage of this income stream in the short term as the District plans and seeks permits for remodel work and waits for the leases to expire. Depending on the extent of the remodel work and square footage needs there may be an opportunity for a long-term income stream if the District desires to lease out extra space within the building. At this time, remodel costs are unknown, but an estimate of $6,000,000 (30,000 square feet at $200 per square foot) has been made by outside consultants. FISCAL IMPACT The property purchase amount is $31,550,100. In addition, approximately $65,000 is needed for the following due diligence activities: building assessment, $25,000; Phase 1 environmental study, $5,000; ALTA (American Land Title Association) survey, $15,000; and a contingency, $20,000. If the District closes escrow, the District will secure an ALTA extended title policy for the property at a cost of approximately $25,000 and escrow costs of approximately $10,000. Finally, the District will need to compensate Colliers International a $155,000 commission at the close of escrow. The total estimated cost for the purchase with due diligence and closing costs is $31,805,100. If the purchase of the Subject Property is approved, the General Manager requests Board authorization to use $31,805,100 from the General Fund Committed Infrastructure Reserve. 5050 El Camino Real Acquisition Budget Item Description Cost Purchase Price $31,550,000.00 Additional Consideration $100.00 Purchase Price Total $31,550,100.00 Building Condition Assessment $25,000.00 Phase 1 Environmental Study $5,000.00 ALTA Survey $15,000.00 Due Diligence Contingency $20,000.00 Due Diligence Total $65,000.00 Real Estate Commission $155,000.00 ALTA Title Policy $25,000.00 Escrow Costs $10,000.00 Escrow Costs Total $190,000.00 Total Transaction Costs $31,805,100.00 To ensure adequate funding in the General Fund Infrastructure Reserve, the General Manager recommends seeking $15 million in financing after the close of escrow. This is to ensure the Reserve remains adequately funded while the property is acquired and remodeled, and before the proceeds of the sale of the current Administrative Office at 330 Distel Circle are received. The financing would be for approximately 10 years with a possible option of a 5-year call provision to enable the District to pay down on the principal before the final maturity date. Annual debt R-17-90 Page 6 service would be approximately $1.5 to $1.6 million, partially offset by rent proceeds and future reduced rent expense for the current District leased office space. Staff Facilities Total Cost 5050 El Camino Real Property Purchase Amount $31,805,100 240 Cristich Lane Property (Board approved March 22, 2017) $3,285,000 Total Facility Purchases (if approved) $35,090,100 The District Controller has reviewed the financial viability of the proposed purchase, found that it is consistent with the District’s long-term financial model and infrastructure reserves, and has approved the purchase. If purchased, additional funds for site improvements and office redesign would need to be allocated at a later date. It is difficult to accurately budget for these costs now, but based on per square footage estimates are expected to be approximately $6,000,000. If the District enters into contract, planning, design, and permitting would commence while in escrow and continue after the close of escrow while the District waits for leases to expire. BOARD COMMITTEE REVIEW Due to the short timeframe of this proposed purchase, a Board Committee did not previously consider this item. PUBLIC NOTICE All notice required by the Brown Act has been provided. CEQA COMPLIANCE Project Description The project consists of the purchase of a 39,010 square foot, two-story office building located on a 63,162 square foot site, at 5050 El Camino Real in the City of Los Altos. The property has a General Plan designation of Commercial Thoroughfare, with a zoning designation of CT (Commercial Thoroughfare). This potential purchase would provide the District with the opportunity to address long-term needs for a larger administrative office. For purposes of compliance with the California Environmental Quality Act (CEQA), the project is limited to the transfer of ownership at this time. Any activities such as remodeling is subject to as-yet unprepared planning and design work. Such work would be evaluated for CEQA as the project description takes shape. This approval to pursue acquisition of the site would result in no direct or indirect changes to the environment triggering CEQA. CEQA Determination The District concludes that this project will not have a significant effect on the environment. It is exempt from the California Environmental Quality Act (CEQA) under Article 19, Sections 15061 as follows: R-17-90 Page 7 Section 15061(b)(3) exempts projects where it can be seen with certainty that there is no possibility the activities may have a significant effect on the environment. The project is limited to the transfer of ownership. No plans for the occupancy of the property or redevelopment of this site have been developed. Any future redevelopment of the site would be subject to a separate review for compliance with CEQA and approval by the District and the City of Los Altos. NEXT STEPS Upon approval by the Board of Directors, staff would proceed with due diligence investigations. After the close of escrow, staff would begin planning the site improvements and design plans and return to the Board at different phases of design for review and direction. Attachments: 1. Resolution Authorizing Acceptance of Offer and Entry Into a Purchase and Sale Agreement, Authorizing use of the General Fund Committed Infrastructure Reserve, Authorizing General Manager or Other Officer to Execute Certificate of Acceptance of Grant to District, Authorize General Manager or General Manager Designee to have full authority to make all property management decisions after the close of escrow, Authorizing General Manager to Execute any and all Other Documents Necessary or Appropriate to Closing of the Transaction. 2. Location Map Responsible Department Manager: Michael Williams, Real Property Manager Prepared by: Allen Ishibashi, Senior Real Property Agent Tina Hugg, Senior Planner Contact person: Allen Ishibashi, Senior Real Property Agent Graphics prepared by: Jaime Hawk, GIS Data Analyst I Nathan Greig, GIS Technician Attachment 1 Resolutions/2017/R-17-__5050ElCaminoRealPurchase 1 RESOLUTION 17-__ RESOLUTION OF THE BOARD OF DIRECTORS OF MIDPENINSULA REGIONAL OPEN SPACE DISTRICT AUTHORIZING ACCEPTANCE OF OFFER AND ENTRY INTO A PURCHASE AND SALE AGREEMENT, AUTHORIZING USE OF THE GENERAL FUND COMITTED INFRASTRUCTURE RESERVE, AUTHORIZING GENERAL MANAGER OR OTHER APPROPRIATE OFFICER TO EXECUTE CERTIFICATE OF ACCEPTANCE OF GRANT TO DISTRICT, AUTHORIZING GENERAL MANAGER TO EXECUTE ANY AND ALL OTHER DOCUMENTS NECESSARY OR APPROPRIATE TO CLOSING OF THE TRANSACTION (5050 EL CAMINO REAL, LOS ALTOS, CA), AND AMENDING THE BUDGET FOR FISCAL YEAR 2017-18. The Board of Directors of Midpeninsula Regional Open Space District does hereby resolve as follows: SECTION ONE. The Board of Directors of Midpeninsula Regional Open Space District (District) does hereby accept the offer contained in that certain Purchase and Sale Agreement between PEARLMAN HIMY LOS ALTOS LP, a California limited partnership, and the Midpeninsula Regional Open Space District, a copy of which purchase and settlement agreement is attached hereto and by reference made a part hereof, and authorizes the President of the Board of Directors, General Manager, or other appropriate officer to execute the Agreement and all related transactional documents on behalf of the District to acquire the real property described therein (“Subject Property”). SECTION TWO. The Board of Directors of Midpeninsula Regional Open Space District authorizes the expenditure of $31,550,100.00 covering the purchase of the Subject Property, including a deposit of $3,100,000.00. SECTION THREE. The Board of Directors of Midpeninsula Regional Open Space District authorizes the use of the General Fund Committed Infrastructure Reserve, and amending the Fiscal Year (FY) 2017-18 Budget and Action Plan for the Midpeninsula Regional Open Space District by increasing the budget in the amount of $31,805,100.00. Except as herein modified, the FY 2017-18 Budget and Action Plan, Resolution No. 17-14, shall remain in full force and effect. SECTION FOUR. The General Manager, President of the Board of Directors, or other appropriate officer is authorized to execute a Certificate of Acceptance for the Grant Deed on behalf of the District. SECTION FIVE. The General Manager or the General Manager’s designee is authorized to provide notice of acceptance to the seller, sign all escrow documents and to extend escrow if necessary. SECTION SIX. The General Manager or the General Manager’s designee is authorized to expend up to $255,000.00 to cover the cost of the real estate commission, title insurance, escrow fees, due diligence consultants and other miscellaneous costs related to this transaction, and included in the total transactions costs of $31,805,100.00. Attachment 1 Resolutions/2017/R-17-__5050ElCaminoRealPurchase 2 SECTION SEVEN. The General Manager or the General Manager’s designee is authorized to have full authority to make property management decisions for the Subject Property after the close of escrow such as modifying the terms of existing leases, entering into new leases, terminating leases, approving and executing property management contracts, modifying or entering into new property management agreements, etc. for the Subject Property in order to best prepare the Subject Property for District occupancy and to maintain a strong income stream. SECTION EIGHT. The General Manager and General Counsel are further authorized to approve any revisions to the attached Agreement and documents, which do not involve any significant change to any term of the Agreement or documents, which are necessary or appropriate to the closing or implementation of this transaction. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space District on ________, 2017, at a regular meeting thereof, by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: APPROVED: Secretary Board of Directors President Board of Directors APPROVED AS TO FORM: General Counsel I, the District Clerk of the Midpeninsula Regional Open Space District, hereby certify that the above is a true and correct copy of a resolution duly adopted by the Board of Directors of the Midpeninsula Regional Open Space District by the above vote at a meeting thereof duly held and called on the above day. District Clerk El C a m i n o R e a l Jo r d a n A v e M a r i c h W a y Dis t e l C i r c l e Dis t e l D r i v e Or t e g a A v e Administrative Office 5050 El Camino Real Midpeninsula Regional Open Space District (MROSD) May 2017 5050 El Camino Real, Los Altos Pa t h : G : \ P r o j e c t s \ a _ D i s t r i c t w i d e \ A O _ L e a s e \ 4 9 8 4 a n d 5 0 5 0 E l C a m i n o _ 2 0 1 7 0 5 1 6 . m x d Cr e a t e d B y : n g r e i g 0 300150 FeetI While the District strives to use the best available digital data, these data do not represent a legal survey and are merely a graphic illustration of geographic features. Ã101 Ã280 Mountain View Palo Alto Area of Detail 5050 El Camino Real Administrative Office Attachment 2 R-17-91 Meeting 17-16 July 12, 2017 AGENDA ITEM 7 AGENDA ITEM New Board Policy 3.09 – Debt Management Policy GENERAL MANAGER’S RECOMMENDATION Approve new Board Policy 3.09 - Debt Management Policy. SUMMARY The California Debt and Investment Advisory Committee (CDIAC) is requiring all local agencies to have a Debt Management policy (see Attachment 1) and to certify such a policy is in place each time debt is issued. The proposed Debt Management policy incorporates all the components recommended by CDIAC and by the Government Finance Officers Association (GFOA), as applicable to the District’s requirements, to ensure the District’s debt is issued and managed prudently. DISCUSSION CDIAC is requiring all local governments to adopt a Debt Management Policy and to certify to that fact when issuing debt (see Attachment 4). Aside from CDIAC requiring the local government to certify the Board has adopted a Debt Management policy, such a policy is a very prudent instrument for the Board and management to provide guidance and parameters for issuing and managing debt for the District. The proposed Debt Management policy follows the categories as suggested by CDIAC and the GFOA: Debt Limits, Debt Structuring, Debt Issuance, and Debt Management. Each of the categories are tailored to the District’s specific requirements, needs and practices. Certain categories refer or defer to the Disclosure for Bond Issuances Policy 3.06 (Attachment 3) and the Statement of Investment 3.08 (Attachment 4). In additional to internal review by the General Counsel and Controller, the draft policy was reviewed by the Financial Advisor, Underwriter, Bond Counsel, and Disclosure Counsel to ensure the policy does not contradict industry practices and processes. Page 2 of the CDIAC attachment 4 lists many advantages to developing and adopting a Debt Management policy, some of which are: • Supporting transparent and consistent financial decisions • Establishing standard operating procedures • Providing performance measures and limits based on predetermined levels and benchmarks R-17-91 Page 2 • Providing an interface between capital planning, long term financing objectives, and daily operations • Providing consistency and instruction to new and transitioning staff This Debt Management policy formalizes the District’s current practices. FISCAL IMPACT No new fiscal impact. The revised policies will streamline existing procedures for compliance with obligations and practices under current debt issuances. BOARD COMMITTEE REVIEW The Action Plan and Budget Committee reviewed the Debt Management Policy at their meeting on May 31, 2017 and voted to forward the proposed Debt Management Policy to the full Board of Directors for review and approval. PUBLIC NOTICE Public notice was provided as required by the Brown Act. CEQA COMPLIANCE This proposed action is not a project under the California Environmental Quality Act and no environmental review is required. NEXT STEPS Implementation of the policy. Attachments: 1. Debt Management Policy 3.09 2. Disclosure for Bond Issuances Policy 3.06 3. Statement of Investment 3.08 4. Employing a Debt Management Policy (CDIAC) Responsible Department Manager: Stefan Jaskulak, Chief Financial Officer Prepared by: Andrew Taylor, Finance Manager and Disclosure Coordinator Midpeninsula Regional Open Space District Board Policy Manual Debt Management Policy Policy 3.09 Chapter 3 – Fiscal Management Effective Date: xx/xx/2017 Revised Date: N/A Prior Versions: N/A Board Policy 3.09 Page 1 of 5 Purpose The Debt Management Policy and procedures contained herein (the “Debt Management Policy”) sets forth certain debt management objectives for the Midpeninsula Regional Open Space District (the “District”) and establishes overall parameters for issuing and administering the District's debt in compliance with applicable federal and state securities laws. The Board may issue debt that does not comply with this policy should the Board determine that doing so is necessary or desirable, and the issuance of any such debt shall be conclusive evidence of such determination. This Debt Management Policy is closely related to the policy for Initial and Continuing Disclosures Relating to Bond Issuances – Policy 3.06 of Chapter 3 Fiscal Management (the “Disclosure Policy”). Policy Article I: Key Participants and Responsibilities The Key Participants in the Debt Management process are the members of the Financing Group as identified and designated in the Disclosure Policy, Section 1.03. The Responsibilities of the various members of the Financing Group are detailed in Section II of the Disclosure Policy. Disclosure Policy Article II: Debt Limits Section 2.01. Purpose for Debt Issuance. The District may issue new debt to finance and refinance capital improvement projects or land acquisitions for either General Fund purposes or in support of Measure AA portfolios and projects. Any General Fund debt must be repaid via the General Fund tax revenue and budget, whereas any debt issued under Measure AA must be repaid via the special property tax levy as authorized under Measure AA. As part of the calculation to determine the need for new debt, the District will review the useful life of the proposed projects and ensure this useful life is not significantly shorter than the term of the debt, and in any case compliant with Federal tax law restrictions governing the weighted average maturity of a debt issue in relation to the financed projects’ useful life. The approach to determine the amount of new debt to be issued will include an assessment of any self-funded pay-go funding sources and will be integrated into the District’s multi-year capital plan. Section 2.02. Legal Debt Limitations. The District is bound by, or utilizes, four different debt limitations: State, General Fund budget, bond Indenture covenants and Measure AA voter authorization. i. Under Public Resources Code Section 5568, the District’s legal authority to incur indebtedness is limited to five percent of the assessed valuation of the real and personal property situated in the District. Attachment 1 Board Policy 3.09 Page 2 of 5 ii. The General Fund debt limitation is constrained by the property tax received, less ongoing operating expenses. Each year, the annual budget is prepared and modeled into the Controller’s thirty-year cash flow, which includes conservative inflation and projects the viability of any increases in operating, capital or debt service in the General Fund. Any proposed General Fund debt issuance, new or refunding, is modeled using the Controller’s cash flow model. iii. General Fund debt is limited by covenants made by the District to bond holders in the bond indenture. The District covenants it will not issue debt that is senior in priority to the existing general fund revenue bonds. In addition, debt on parity with existing revenue bonds is limited by the District Act (Article 3 of Chapter 3 of Division 5 of the Public Resources Code), which requires that total debt outstanding does not exceed the amount of general fund property tax revenues anticipated by the District for the next five-year period, and that annual tax revenue in the most recent audited fiscal year exceeds maximum annual debt service of outstanding bonds by 125%. iv. The Measure AA debt limitation is constrained by the $300 million voter authorization per the 2014 referendum as well as the limitation that Measure AA annual debt service must be payable with the Measure AA property tax collections not to exceed the self- imposed tax rate of $3.18 per $100,000 of Assessed Value. The calculation to ensure that the debt service does not exceed a tax rate in excess of $3.18 per $100,000 of Assessed Value shall be calculated at issuance of the debt with the information available at that time and exclude any one-time funds, such as bond premium. Should the tax rate exceed $3.18 at any time after the debt has been issued, no new debt shall be issued until such time as the debt service payments can again be paid from tax collections not exceeding a $3.18 tax rate. Section 2.03. Types of Permitted Debt. The District may issue a variety of debt instruments and obligations. i. Long-term borrowing (maturity greater than 1 year) may be used to finance the acquisition or improvement of land, facilities, or equipment for which it is appropriate to spread these costs over more than one budget year. Long-term borrowing may also be used to fund capitalized interest, costs of issuance, required reserves, and any other financing related costs which may be legally capitalized. Long-term borrowing shall not be used to fund operating costs. ii. Short-term borrowing (maturity of one year or less), such as lines of credit or commercial paper, will be considered as an interim source of funding to be utilized when appropriate. Short-term debt may be issued for any purpose for which long-term debt may be issued, including capitalized interest and other financing related costs. iii. All long-term debt shall be issued as fixed rate debt. Variable rate debt may be issued if determined to be advantageous to the District. iv. Relationship of Debt to Capital Improvement Program: The District maintains a five- year Capital Improvement plan, which it expects to fund through a combination of Measure AA proceeds, General Fund Monies, and grants. While the District does not expect debt to be the sole source of funding for the CIP, the District may issue debt in addition to bonds approved under Measure AA (including those types of debt discussed herein) should doing so become necessary to meet the District’s capital needs. Attachment 1 Board Policy 3.09 Page 3 of 5 v. Policy Goals Related to District Objectives: The District’s objective is to meet its capital needs economically, and intends only to use debt as a funding source when the Board determines doing so would be both fiscally responsible and aligned with the District’s policy objectives. Article III: Debt Structuring Debt issued by the District, new or refunding, may have various features and structures. i. The debt shall be callable no later than eleven years from the date of issuance. If the final maturity is less than fifteen years, a call feature shorter than ten years shall be evaluated by the CFO and Controller together with the financial advisor and underwriter as deemed appropriate by the CFO and Controller. If advantageous to the District, the CFO and Controller may recommend the use of a shorter call feature for maturities fifteen years or longer as well. ii. The maturity for new debt issued is usually thirty years, unless the useful life of the projects is significantly shorter than thirty years, in which case the maturity shall be shortened to match the useful life, or, in the case of a large one-time capital expenditure, where the cash flow need may be much shorter than thirty years. The final maturity for refunding debt shall be no later than the final maturity of the refunded debt. iii. Given the District’s historically very strong credit ratings, utilizing credit enhancement in connection with a debt issuance has not been financially advantageous to the District. However, should credit enhancement prove effective in lowering the District’s all-in borrowing cost on a debt issuance in the future, the District retains the option to utilize such credit enhancement. Such evaluation will be made by the CFO and Controller together with the financial advisor and underwriter as deemed appropriate by the CFO and Controller. iv. The use of derivative products (a financial instrument which ‘derives’ its value from another instrument) is not permitted. Article IV: Debt Issuance The District shall assess the impact of new debt issuance on the thirty-year long-term affordability model as developed by the Controller. This model includes future debt service, capital improvement projects and operational expenditures, adjusted for inflation and growth over thirty years. Any debt issued, and the associated debt repayment schedule, must be evaluated and affordable according to this thirty-year model. Section 4.01. Credit Objectives. The District shall make every reasonable effort to maintain its high credit ratings. The District shall seek a credit rating on all new publicly placed bond issues from at least one nationally recognized credit rating agency. The District shall maintain a line of communications with the bond rating agencies reporting annual financial reports, budget and other major information as they occur. Section 4.02. Method of Sale. The District may issue debt via negotiated sale, a competitive bid process or private placement. The CFO and Controller, together with the Financial Advisor, shall review and evaluate the best method of sale for each issuance. Attachment 1 Board Policy 3.09 Page 4 of 5 Section 4.03. Selection of External Financial Professionals. The District shall utilize the services of various independent advisors, consultants and other financial institutions and professionals. Such services, depending on the type of financing, may include financial advisor, underwriter, bond counsel, disclosure counsel, trustee, verification agent, escrow agent, arbitrage consulting, and special tax consulting. The financial advisor, underwriter, bond counsel, and disclosure counsel shall be selected via a competitive Request for Proposal (RFP) process initiated and managed by the Chief Financial Officer and evaluated by the Disclosure Working Group. Other services may be contracted via sole source or directly authorized. Section 4.04. Refunding of Debt. The District shall periodically review its outstanding debt to identify refunding opportunities. Refunding will be considered (within federal tax law constraints) if and when there is a net economic benefit from the refunding. In general, refundings which produce a net present value savings of at least three percent (3%) of the refunded debt will be considered economically beneficial. Refunding which produce a net present value savings of less than three percent (3%) will be considered on a case-by-case basis. In evaluating the economic benefit of refundings considered “advance refundings”, the District will also evaluate the escrow efficiency in consultation with the District’s financial advisor and underwriter. Article V: Debt Management Section 5.01. Disclosure. The District’s Board of Directors adopted a separate Disclosure Policy, which policy includes 15c2-12 requirements, initial and continuing disclosure requirements, and outlines the responsibilities of District staff, consultants and advisors. Disclosure Policy Section 5.02. Investment of Bond Proceeds. The District shall invest bond proceeds consistent with applicable federal and state law and tax requirements, including any arbitrage calculations and reporting, as well as consistent with the District’s Board adopted Policy titled Statement of Investment 3.08. Statement of Investment Article VI: Controls, Reporting, and Miscellaneous Section 6.01. Internal Controls. To ensure the bond proceeds are managed and spent as intended, the District has the following processes in place: i. Reporting of bond funds generated by a financing secured by General Fund revenues shall be included in the Annual Financial Report. ii. Reporting and review of bond funds spent under Measure AA authorization is outlined in the Measure AA election documentation: An Independent Citizen Oversight Committee will be formed to verify expenditures of bond proceeds. The Independent Citizen Oversight Committee will consist of seven at-large members, all of whom shall be District residents. The Citizen Oversight Committee will be selected by the Board and interviewed and approved in open session, and will be subject to the conflict of interest constraints of the California Political Reform Act. The responsibilities of the Committee include: • Review Plan expenditures on an annual basis to verify conformity with the Expenditure Plan. Attachment 1 Board Policy 3.09 Page 5 of 5 • Review District’s Annual Audit and Annual Accountability report and present the Committee’s findings to the Board at a public meeting. • Review any proposed amendments to the Expenditure Plan. iii. Reporting of bond funds expended to refund existing bonds shall be included in the final refunding report to the Board of Directors. Section 6.02. Documents to be Retained. Section 5.01 of the Disclosure Policy provides document retainage requirements applicable to debt issuances. Disclosure Policy Section 6.03. Waivers. In addition to the General Manager’s authority to adopt an Administrative Procedure to make this Board Policy more specific, any provision of this Board Policy or any related administrative procedure may be waived at any time by the General Manager, with the written confirmation to the members of the Disclosure Working Group. This authority to waive a provision of this policy is triggered only if such waiver is necessary for timely and effective issuance of debt in compliance with any applicable laws. Any waivers made under this provision shall be reported to the Board of Directors, with conforming revisions recommended for the Board’s consideration at the next update of this Board Policy and no later than three months from the implementation of such waiver. Section 6.04. Periodic Review. This policy shall be reviewed and affirmed annually by the Board of Directors. Attachment 1 Midpeninsula Regional Open Space District Board Policy Manual Initial and Continuing Disclosures Relating to Bond Issuances Policy 3.06 Chapter 3 – Fiscal Management Effective Date: 04/01/2015 Revised Date: 03/22/2017 Prior Versions: 04/01/2015 Attachments: A – List of Disclosure Documents, to be Amended as Necessary B – Listed Events C –Template of Information to be included in the Staff Report Transmitting Official Statement by General Manager to Board of Directors Board Policy 3.06 Page 1 of 7 Purpose Whenever the District makes statements or releases information relating to its finances to the public that are reasonably expected to reach investors and the trading markets (including, without limitation, all Listed Event Notices, statements in the audited Financial Statements, and other financial reports and statements of the District), the District is obligated to ensure that such statements and information are complete, true, and accurate in all material respects. The disclosure policies and procedures contained herein (the “Disclosure Procedures”) of the Midpeninsula Regional Open Space District (the “District”) are intended to ensure that the District’s disclosure documents (the “Disclosure Documents”), as listed on Attachment A to these Disclosure Procedures, are complete, true, and accurate in all material respects, and in compliance with applicable federal and state securities laws. Policy Article I: Key Participants and Responsibilities Section 1.01. Disclosure Working Group. (A) Composition. By adoption of these Disclosure Procedures, the District hereby establishes a disclosure working group (the “Disclosure Working Group”). The members of the Disclosure Working Group shall be the following: i. General Manager; ii. Chief Financial Officer iii. Controller; and iv. General Counsel. (B) Responsibilities. The Disclosure Working Group shall consult with the Financing Group (as defined in Section 1.03) and other interested parties as necessary or helpful. The Disclosure Working Group shall meet as often as necessary to fulfill its obligations, but not less than once per calendar year. Members of the Disclosure Working Group may participate in meetings by telephone. Attachment 2 Board Policy 3.06 Page 2 of 7 The Disclosure Working Group is responsible for: i. Reviewing and approving all preliminary and final official statements, private placement memoranda and remarketing memoranda relating to the District’s securities, together with any supplements, for which a continuing disclosure undertaking is required (each, an “Official Statement”) as further described in Article II, before such documents are released to the public; ii. Reviewing and approving the District’s Financial Statements (as defined and further described in Section 3.02 below); iii. Reviewing and approving any other Disclosure Documents before such documents are released; iv. Reviewing annually the District’s status and compliance with continuing disclosure undertakings including filings of Disclosure Documents and compliance with these Disclosure Procedures and the annual financial report as described in Article III below; v. Reviewing any other items referred to the Disclosure Working Group; and vi. Evaluating the effectiveness of these Disclosure Procedures and approving changes to these Disclosure Procedures as further described in Section 5.04 of this Policy. (C) Determination of Disclosure Document Status. Whether or not a particular document or other communication is a Disclosure Document shall be determined by the Disclosure Working Group. At its initial meeting, the Disclosure Working Group shall establish a list of the District’s recurring Disclosure Documents, which list shall be added to Attachment A to these Disclosure Procedures to the extent such documents are not already contained therein. The Disclosure Working Group shall update Attachment A to these Disclosure Procedures when appropriate. (D) Review and Approval. Following receipt of a Disclosure Document from the disclosure coordinator (the “Disclosure Coordinator”), the Disclosure Working Group shall review the Disclosure Document for accuracy and compliance with federal and state securities laws, direct questions tof the Disclosure Coordinator, and approve a substantially final form of the Disclosure Document, which approval may be evidenced by an email transmitted to the Disclosure Coordinator by the General Manager or his/her designee and a copy of which email shall be printed and maintained in the Deal File described in Section 5.01, or by such other written evidence. The Disclosure Coordinator shall consult with the District’s disclosure counsel to the extent the Disclosure Coordinator considers appropriate to perform his or her responsibilities. Section 1.02. Disclosure Coordinator. (A) Appointment. The Finance Manager is appointed as the Disclosure Coordinator. If the position of Finance Manager is vacant, the Chief Financial Officer, in consultation with the other members of the Disclosure Working Group, shall select and appoint the Disclosure Coordinator. (B) Responsibilities. The Disclosure Coordinator shall be responsible for: Attachment 2 Board Policy 3.06 Page 3 of 7 i. Serving as a “point person” for personnel to communicate issues or information that should be or may need to be included in any Disclosure Document, identifying District personnel that will assist in preparing and reviewing the Disclosure Documents (the “Contributors”); ii. Reviewing annually all continuing disclosure undertakings, preparing a checklist of updated information to be provided; iii. Recommending changes to these Disclosure Procedures to the Disclosure Working Group as deemed necessary or appropriate; iv. Communicating with third parties, including coordination with outside consultants assisting the District in preparing and disseminating Disclosure Documents to make sure that assigned tasks are completed timely, and that the filings are accurate and made timely; v. Soliciting “material” information (as defined for purposes of federal securities law) from District departments to prepare Disclosure Documents; vi. Monitoring compliance by the District with these Disclosure Procedures, including timely dissemination of the Annual Report and Listed Event filings, and maintaining records documenting the District’s compliance with these Disclosure Procedures; vii. Determining when Disclosure Documents are final and ready for review by the Disclosure Working Group to the extent required by these Disclosure Procedures; and viii. Identifying District personnel that should receive disclosure training, and ensuring compliance with training procedures described in Section 1.02(C). The Disclosure Coordinator is authorized to file or cause to be filed the following documents with the Municipal Securities Rulemaking Board (the “MSRB”), without prior review and approval of the Disclosure Working Group, but only after prior review and approval from the Chief Financial Officer: those Disclosure Documents that (i) the District is contractually obligated to file with the MSRB pursuant to written undertakings as a result of the occurrence of a Listed Event (as defined in Attachment B), or (ii) as a result of the failure to timely file the required annual financial report. (C) Training. The Disclosure Coordinator shall arrange for annual disclosure training conducted by the District’s disclosure counsel with the assistance of the General Counsel, for the Board of Directors members, the Disclosure Working Group, and Contributors. Such training sessions shall include education on these Disclosure Procedures, the District’s disclosure obligations under applicable federal and state securities laws, and the disclosure responsibilities and potential liabilities of members of District staff and members of the Board of Directors. Such training sessions may be conducted using a recorded presentation. Each member of the Board of Directors, and new members of the Finance Department shall be required to participate in disclosure training as part of his or her new member orientation. Section 1.03. Financing Group. Attachment 2 Board Policy 3.06 Page 4 of 7 General. The General Manager or his/her designee shall identify a Financing Group (the “Financing Group”) for each financing (the composition of which may differ for each financing), which shall include, at a minimum, the following individuals: i. Disclosure Working Group; ii. Disclosure Coordinator; iii. The District’s bond counsel and disclosure counsel; iv. The District’s financial advisor (if any); v. The District’s underwriter, placement agent, remarketing agent (as applicable); vi. The District’s dissemination agent (if any); vii. Such other such District staff as the General Manger or his/her designee determines to be appropriate; and viii. Such other consultants retained by the District as the General Manager or his/her designee determines to be appropriate. It is the District’s policy to establish continuing working relationships with professional advisors with expertise in the area of public finance and federal securities laws applicable to the issuance of securities by the District. Article II: Review and Approval of Official Statements Section 2.01. Responsibilities of Financing Group. The Financing Group shall prepare the Official Statement and confirm that the Official Statement: (a) has been reviewed and accurately states all information relating to the District, (b) confirm that any information in the Official Statement other than the information described in the previous clause (a) will be addressed by a closing certificate or opinion by an appropriate person, (c) contains a description of any failures of the District during the last five yars to comply with its continuing disclosure undertakings; and (d) is in substantially final form and is in a form ready to be “substantially final” by the Board of Directors, as evidenced by a Certificate executed and delivered by a member of the Financing Group pursuant to Rule 15c2-12, promulgated by the Securities and Exchange Commission. The Financing Group shall have at least one all-hands meeting or conference call to review the Official Statement. Section 2.02. Responsibilities of General Counsel. The General Counsel (or a designee) shall review the Official Statement and shall draft for the Official Statement descriptions of (i) any material current, pending or threatened litigation, (ii) any material settlements or court orders and (iii) any other legal issues that are material information for purposes of the Official Statement. Section 2.03. Responsibilities of Controller and Chief Financial Officer. The Controller and Chief Financial Officer shall review the Official Statement, identify any material difference in presentation of financial information from the Financial Statements and ensure there are no misstatements or Attachment 2 Board Policy 3.06 Page 5 of 7 omissions of material information in any sections that contain descriptions of information prepared by the Controller and/or Chief Financial Officer or other Contributors or of relevance to the finances of the District. In addition, the Controller and/or Chief Financial Officer shall determine whether the District’s then-available Financial Statements are appropriate to be included in the Official Statement and whether to seek the consent of the District’s auditor to include the Financial Statements in the Official Statement. Section 2.04. Review by Disclosure Working Group. Following receipt of the Official Statement from the Financing Group, the Disclosure Working Group shall evaluate the Official Statement for accuracy and compliance with federal and state securities laws, and shall, have an opportunity to ask questions of the Financing Group and of any Contributor or other person who reviewed or drafted any section of the Official Statement. The Disclosure Working Group may direct or request revisions and/or may instruct the Financing Group to solicit contributions from additional Contributors, as they deem necessary or appropriate. Section 2.05. Approval by Disclosure Working Group. Approval of the Official Statement by the Disclosure Working Group shall be evidenced by delivery of the Official Statement to the General Manager for docketing for a meeting of the Board of Directors as provided in Section 2.07. Section 2.06. Submission of Official Statements to Board of Directors for Approval. As part of the docketing process, the General Manager shall submit all Preliminary Official Statements to the Board of Directors for approval using a staff report that includes the information in the template attached as Attachment C to these Disclosure Procedures. The approval of an Official Statement by the Board of Directors shall be docketed as a new business matter and shall not be approved as a consent item. The Board of Directors shall undertake such review as deemed necessary, following consultation with the Controller, to fulfill the responsibilities of the Board of Directors under applicable federal and state securities laws. In this regard, the Controller shall consult with the District’s disclosure counsel to the extent necessary. Article III: Continuing Disclosure Filings Section 3.01. Overview. Under the continuing disclosure undertakings the District has entered into in connection with its debt offerings, the District is required each year to file Annual Reports with the Electronic Municipal Market Access (“EMMA”) system maintained by the MSRB in accordance with such undertakings. Such Annual Reports are required to include certain updated financial and operating information, and the District’s audited financial statements. The District is also required under its continuing disclosure undertakings to file notices of certain events (as summarized in Attachment B to these Disclosure Prodcedures) with EMMA. Section 3.02. Financial Statements. The Chief Financial Officer shall submit the District’s audited financial statements (“Financial Statements”), as they are available, to the Disclosure Working Group. The Disclosure Working Group shall review the audited Financial Statements according to these Disclosure Procedures and, when reviewed and approved for disclosure, shall transmit the audited Financial Statements to the Board of Directors. Attachment 2 Board Policy 3.06 Page 6 of 7 If the District does not have audited Financial Statements available in time to file the Annual Report, the Chief Financial Officer shall submit the District’s unaudited financial statements as provided in each specific continuing disclosure undertaking. Section 3.03. Annual Reports. The Disclosure Coordinator shall ensure that the preparation of the District’s Annual Report shall commence in enough time so that they are filed no later than 210 days following the end of the fiscal year of the District, or as otherwise required under each specific continuing disclosure undertaking. Before any Annual Report is submitted to EMMA, the Disclosure Coordinator shall review outstanding continuing disclosure undertakings, prepare a checklist of information to be updated, supervise the preparation of the Annual Report, and confer with the Disclosure Working Group as needed regarding the content and accuracy of any such report. Section 3.04. Disclosure of Listed Events. Pursuant to Rule 15c2-12(b)(5)(i)(C), the District is obligated to disclose to the MSRB notice of certain specified events with respect to the District’s securities (a “Listed Event”). Each member of the Disclosure Working Group shall notify the other members of the Disclosure Working Group if he or she becomes aware of the occurrence of any of the Listed Events listed in the District’s continuing disclosure undertakings. The Disclosure Working Group may meet to discuss the event and to determine, in consultation with disclosure counsel to the extent determined by the Disclosure Coordinator, whether a filing is required or is otherwise desirable. If such a filing is deemed necessary, the Disclosure Coordinator shall cause a notice of the Listed Event (a “Listed Event Notice”) that complies with Rule 15c2-12 to be prepared, and the Disclosure Coordinator shall file or cause to be filed the Listed Event Notice as required by Rule 15c2-12. Article IV: Public Statements Regarding Financial Information Section 4.01. Financial Information. Whenever the District makes statements or releases information relating to its finances to the public that are reasonably expected to reach investors and the trading markets (including, without limitation, all Listed Event Notices, statements in the audited Financial Statements, and other financial reports and statements of the District), the District is obligated to ensure that such statements and information are complete, true, and accurate in all material respects. The Chief Financial Officer shall have primary responsibility for ensuring that such financial statements and information are accurate and not misleading in any material respect. Article V: Miscellaneous Section 5.01. Documents to be Retained. The Disclosure Coordinator, working with the District Clerk as needed, shall be responsible for retaining records demonstrating compliance with these Disclosure Procedures. The Disclosure Coordinator shall retain an electronic or paper file (“Deal File”) for each Annual Report and notice of Listed Events filed or caused to be filed by the District. Each Deal File shall include final versions of Disclosure Documents, the transcript of proceedings prepared in connection with the issuance of financial instruments. The Deal File shall be maintained in a central depository for a period equal to the later of the date of maturity or defeasance of the securities referenced in the Disclosure Document. Section 5.02. Waivers. In addition to the General Manager’s authority to adopt an Administrative Procedure to make this Board Policy more specific, any provision of this Board Policy or any related administrative procedure may be waived at any time by the General Manager, with the written confirmation to the members of the Disclosure Working Group. This authority to waive a provision of this policy is triggered only if such waiver is necessary for timely and effective compliance with disclosure laws. Any waivers made under this provision shall be reported to the Board of Directors, with Attachment 2 Board Policy 3.06 Page 7 of 7 conforming revisions recommended for the Board’s consideration at the next update of this Board Policy and no later than within three months of implementation of such waiver. Attachment 2 Board Policy 3.06(a) Board Policy 3.06 ATTACHMENT A LIST OF DISCLOSURE DOCUMENTS, TO BE AMENDED AS NECESSARY 1. Preliminary and final official statements, private placement memoranda and remarketing memoranda relating to the District’s securities, together with any supplements. 2. Financial Statements. 3. Filings made by the District with the Municipal Securities Rulemaking Board, whether made pursuant to a continuing disclosure undertaking to which the District is a party or otherwise. 4. Press releases and other information distributed by or on behalf of the District for public dissemination to the extent that such releases are reasonably expected, in the determination of the Disclosure Working Group, to reach investors and the trading markets for municipal securities. 5. Rating agency presentations. 6. Postings on the investor information section of the District’s website, if any. 7. Such portions of the District’s published adopted annual budget as the Disclosure Working Group determines to be appropriate. 8. Any other communications that are reasonably expected, in the determination of the Disclosure Working Group, to reach investors and the trading markets for municipal securities. Amendments: [Date] Attachment 2 Board Policy 3.06(b) Board Policy 3.06 ATTACHMENT B LISTED EVENTS Occurrence of any of the following events require the District to make a filing on EMMA within ten (10) business days of their occurrence: 1. principal and interest payment delinquencies 2. unscheduled draws on debt service reserves reflecting financial difficulty 3. unscheduled draws on credit enhancements reflecting financial difficulty 4. substitution of credit or liquidity providers, or their failure to perform 5. adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other events affecting the tax-exempt status of the security 6. tender offers 7. defeasances 8. rating changes 9. bankruptcy, insolvency, receivership or similar event of the obligated person The occurrence if any of the following events require the District to file a notice on EMMA within ten (10 days after their occurrence, if they are determined to be material by the Disclosure Working Group: 1. non-payment related defaults 2. modifications to the rights of security holders 3. bond calls 4. release, substitution or sale of property securing repayments of the securities 5. the consummation of a merger, consolidation, or acquisition involving an obligated person or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms 6. appointment of a successor or additional trustee or the change of name of a trustee Attachment 2 Board Policy 3.06(d) Board Policy 3.06 ATTACHMENT C Information to be Included in the Staff Report Transmitting Official Statement by General Manager to Board of Directors Transmittal staff report shall include, but is not limited to, the following information: The attached Preliminary Official Statement has been reviewed and approved for transmittal to the Board by the District’s Disclosure Working Group. The distribution of the Preliminary Official Statement by the District is subject to federal securities laws, including the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require the Preliminary Official Statement to include all facts that would be material to an investor in the Obligations. Material information is information that there is a substantial likelihood would have actual significance in the deliberations of the reasonable investor when deciding whether to buy or sell the Obligations. If the Board of Directors concludes that the Preliminary Official Statement includes all facts that would be material to an investor in the Obligations, it must adopt a resolution that authorizes staff to execute a certificate to the effect that the Preliminary Official Statement has been “deemed final.” The Securities and Exchange Commission (the “SEC”), the agency with regulatory authority over the District’s compliance with the federal securities laws, has issued guidance as to the duties of the elected body with respect to its approval of the Preliminary Official Statement. In its “Report of Investigation in the Matter of County of Orange, California as it Relates to the Conduct of the Members of the Board of Supervisors” (Release No. 36761 / January 24, 1996) (the “Release”), the SEC stated that, if a member of the elected body has knowledge of any facts or circumstances that an investor would want to know about prior to investing in the Obligations, whether relating to their repayment, tax-exempt status, undisclosed conflicts of interest with interested parties, or otherwise, he or she should endeavor to discover whether such facts are adequately disclosed in the Preliminary Official Statement. In the Release, the SEC stated that the steps that a member of the elected body take include becoming familiar with the Preliminary Official Statement and questioning staff and consultants about the disclosure of such facts. Section 1. Purpose of Financing. Section 2. Documents for Approval; Security for the Obligations. Section 3. Risks Relating to Repayment and Tax-Exempt Status of the Obligations. Section 4. Requested Approvals. Attachment 2 Midpeninsula Regional Open Space District Board Policy Manual Statement of Investment Policy 3.08 Chapter 3 – Fiscal Management Effective Date: 1/8/97 Revised Date: 5/10/17 Prior Versions: 1/8/97; 1/10/01; 1/16/02; 1/8/03; 1/14/04; 1/12/05; 1/11/06; 1/10/07; 1/16/08; 1/13/10; 1/12/11; 1/11/12; 1/24/13; 1/22/14; 1/28/15; 8/12/15; 8/10/16 Board Policy 3.08 Page 1 of 4 Goals Goal 1. Capital Preservation The primary goal shall be to safeguard the principal of invested funds. The secondary objective shall be to meet the liquidity needs of the District. The third objective shall be to achieve a return on funds consistent with this Policy. Temporarily idle funds shall be invested in a conservative manner, such that funds can always be withdrawn at, or just above or below, full invested value. Investments that offer opportunities for significant capital gains and losses are excluded. Goal 2. Liquidity Temporarily idle funds shall be managed so that normal operating cash needs and scheduled extraordinary cash needs can be met on a same day basis. Investments shall be sufficiently liquid to provide a steady and reliable flow of cash to the District to insure that all land purchases can be made promptly (within two weeks). Goal 3. Income Temporarily idle funds shall earn the highest rate of return that is consistent with capital preservation and liquidity goals and the California Government Code. Guidelines 1. Determination of Idle Funds The Controller shall prepare a cash flow projection prior to all investment decisions involving securities with a term to maturity exceeding one year. This cash flow projection shall be reviewed and evaluated by the General Manager or Chief Financial Officer (CFO). The General Manager or CFO are responsible for approving the Controller’s designation of the amount of funds available for investment for longer than one year. 2. Restricted Reserves [a] MROSD Retiree Healthcare Plan: All funds are to be held by CalPERS and managed by CalPERS. Attachment 3 Board Policy 3.08 Page 2 of 4 [b] Hawthorn Endowment Fund: All funds will be held in a separate account and invested in accordance with this policy. [c] Debt Service Reserve Funds Held by Bond Trustees: Funds held by such trustees shall be invested in accordance with the bond indenture or other agreement providing for the issuance and management of such debt. 3. General Fund Committed Reserves At least one-half of the total general fund committed reserve requirement shall be maintained, at all times, with the Santa Clara County Pooled Investment Fund (SCCPIF). 4. General Fund Un-Assigned Contingency Reserve In addition to any committed fund reserve requirement, a general fund contingency reserve of at least $10 million shall be maintained, at all times, with the SCCPIF. 5. General Obligation Bond Proceeds Held by Fiscal Agent Bond Proceeds held by the District’s Fiscal Agent, either in the Debt Service Fund or Bond Proceeds Fund, shall be invested through the investment department of the Fiscal Agent and in accordance with the Fiscal Agent Agreement. 6. Non-Invested Funds Idle District funds not otherwise invested as permitted by this Policy shall be deposited with the Santa Clara County Pooled Investment Fund, the San Mateo County Treasurer’s Pooled Investment Fund, the State of California’s Local Agency Investment Fund or CalTRUST. 7. Selection of Investments The Controller is responsible for selecting investments that fit within the amounts and maturities recommended by the Controller and by the General Manager or CFO. The Controller is also responsible for directing security transactions. 8. Investments Instruments and Deposit of Funds Investments and deposits of funds shall be limited to those allowed by and subject to the procedures of Government Code Section 53600 et seq. and 53635 et seq. In the event of any conflict between the terms of this Policy, and the Government Code, the provisions of the Government Code shall prevail. Investments shall not be leveraged. Investments, and “derivatives,” that offer opportunities for significant capital gains and losses are excluded. If after purchase, securities are downgraded below the minimum required rating level, the securities shall be reviewed for possible sale with a reasonable amount of time after downgrade. Significant downgrades and the action taken or to be taken will be disclosed in the next monthly report. Attachment 3 Board Policy 3.08 Page 3 of 4 9. Maximum Maturity The average maturity of the total District investment portfolio shall not exceed eighteen months and no investment, except for debt service reserve funds held by bond trustees, shall have a maturity of more than three years from the date of purchase. The maturity of investments in trustee-held debt service reserve funds shall not exceed the final debt service payment date of the bonds. 10. Diversification Investments shall meet the diversification test of Government Code Section 53601.7(c), stating that no more than 5% of the total investment portfolio may be invested in the securities of any one issuer, except for the obligations of the U.S. Treasury or U.S. Government Agencies. 11. Marketability For investments other than bank certificates of deposits the breadth of ownership and number of securities outstanding shall be sufficient to establish a secondary market in which investments can be readily converted to cash without causing a material change in their market value. 12. Acceptable Banks Bankers' Acceptances and Negotiable Certificates of Deposit may be purchased only from the District’s commercial bank or banks and savings and loan associations with over $1,000,000,000 of deposits and reporting profitable operations and which meet all applicable criteria of the Government Code. Certificates of Deposit may be purchased from other banks within Santa Clara and San Mateo Counties which meet all applicable criteria of the Government Code if the principal is fully insured by the Federal Deposit Insurance Corporation. 13. Acceptable Collateral Securities collateralizing bank or savings and loan deposits must be rated “A” or higher. 14. Investments in Name of District All investments purchased shall stand in the name of the District. 15. Reporting The Controller shall submit a report of the District’s investment portfolio and security transactions to the Board of Directors by the second Friday of each calendar month in accordance with Government Code Sections 53607 and 53646. Such reports shall also be submitted to the General Manager, CFO and to the District’s auditor. Attachment 3 Board Policy 3.08 Page 4 of 4 16. Purchase of Securities The Controller is authorized to purchase securities through the investment department of the District’s bond trustees and fiscal agents and as otherwise permitted by the Government Code. Any account resolutions required by bank investment departments will be submitted to the Board of Directors for approval prior to any trading through that bank. The bank or other investment institution from which authorized securities are purchased shall be instructed in writing only to purchase securities in the name of the District and that all matured funds shall be returned to the District’s commercial bank account. The bank shall also be instructed to send receipts for all transactions to the CFO and the District accounting department. Attachment 3 | Attachment 4 Attachment 4 | Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 Attachment 4 DATE: June 28, 2017 MEMO TO: MROSD Board of Directors FROM: Ana Ruiz, AICP, Assistant General Manager and Jane Mark, AICP, Planning Manager THROUGH: Stephen E. Abbors, General Manager SUBJECT: Ohlone/Portolá Heritage Trail _____________________________________________________________________________ This Memorandum provides an overview of the County of San Mateo’s initiation, coordination, and work to date on evaluating the feasibility of designating the proposed Ohlone/Portolá Heritage Trail across San Mateo County and listing it as a National Historic Trail. The proposed historic trail route through San Mateo County is approximately 90 miles, from Año Nuevo State Park to the San Francisco Bay Discovery Site on Sweeney Ridge in the Golden Gate National Recreation Area (GGNRA). The complete route extends all the way into México. San Mateo County is proposing to designate both a trail route and an auto route (similar to the Juan Bautista de Anza Historic Trail). One segment of the proposed trail route would extend through a property owned by Midpeninsula Regional Open Space District (District): the Toto Ranch property of Tunitas Creek Open Space Preserve. For this reason, District staff has been actively participating in this regional planning effort. This regional trail is consistent with District-wide goals for trail connectivity on the San Mateo County Coast as expressed in the Board-approved 2003 Coastal Annexation Area Service Plan. Since 2016, San Mateo County Board of Supervisor Don Horsley has been leading quarterly meetings with a working committee comprised of public agencies, non-profit organizations, and private individuals to discuss the feasibility and process for designating the Ohlone/Portolá Heritage Trail as a national historic trail. Assistant General Manager Ana Ruiz and Planning Manager Jane Mark have attended these Committee meetings on behalf of the District. To date, the San Mateo County Board of Supervisors have approved $275,000 in Measure K district- specific funds to complete of a trail feasibility study and improvements to the Sanchez Adobe Historical Site Project in Pacifica to launch the 2019, 250th year Portolá Expedition commemorative event. The County is hoping to designate the northernmost segment of the proposed regional trail located at Sweeny Ridge as part of the 2019 commemorative activities. Designation of other segments would occur over time by the respective agencies and property owners as these segments become ready. To celebrate the progress made to date, Supervisor Horsley has scheduled a reception on Wednesday, August 2, 2017, at 6:30 pm at the San Mateo County Historical Museum. The County is extending an invitation to the District Board of Directors to attend and learn more about the proposed Ohlone/Portolá Heritage Trail. FYI Memo on Ohlone/Portola Heritage Trail Page 2 June 28, 2017 Board Meeting 2 Please note that an official trail designation through District land will require District Board of Directors consideration and approval. A proposed trail alignment is still being refined. A recommended trail designation would come to the District Board when a final alignment is confirmed. The expectation at this time would be to plan and seek Board approval for a future trail alignment/corridor through Toto Ranch that would become part of the regional historic trail, with the intent of opening this particular segment at a much later and future date. As Toto Ranch remains closed to general public access, a future trail alignment would not be constructed or opened until the property is made ready to receive public use and the District is ready to manage trail use at this location. Background In 2014, a retired civil engineer, Paul O. Reimer, approached San Mateo County and the Peninsula Open Space Trust (POST) about designating the historic expedition route of Captain Gaspar de Portolá to commemorate the 250th year anniversary of the expedition’s 1769 presence in the region. Mr. Reimer envisioned a national designation of this historic expedition route by 2019. He also requested that San Mateo County include the Portolá route as part of the 1999 San Mateo County Trails Master Plan. In early 2016, Supervisor Don Horsley initiated the County’s efforts on this historic trail designation project with Supervisor Carole Groom, District 2 Board of Supervisors, and with support from the San Mateo County Parks and Recreation Department. On February 8, 2016, Supervisor Horsley and County Parks staff convened a working committee, known as the Ohlone/Portolá Heritage Trail Committee, comprised of public agencies, non-profit organizations and private entities. The Committee includes representatives from San Mateo County Parks Foundation, Historical Association, Public Works Department, Midcoast Community Council, National Park Service (NPS), Golden Gate National Recreation Area, California State Parks, California Coastal Conservancy, California Coastal Commission, City of Pacifica, Pacifica Parks Department, Pacifica Sister City Program, Pacifica Historical Museum, POST, the District, San Jose State University, and private landowners. Discussion The Ohlone/Portolá Heritage Trail Committee shares a common desire to narrate the important story of the discovery of San Francisco Bay, and highlight the significance of the Ohlone tribes in assisting Captain Gaspar de Portolá and his expedition at the various campsites and villages along the route in their search for Monterey Bay. Based on interpretations of Fray Juan Crespi’s diary entries, Mr. Reimer mapped an “educated estimate” of the historic expedition route between Año Nuevo and Sweeney Ridge along the San Mateo County coast. To bring this historic route forward, Supervisor Horsley recognized the importance of working with the multiple public and private landowners associated with the underlying ownership to support this national historic trail route. A stated goal of the Committee is to use existing public roads and trails to the greatest extent possible to establish the historic trail route. The Committee has also worked with the NPS staff to identify possible interpretive opportunities that highlight: • The Ohlone history and culture, including specific people, tribes, and villages encountered by the Portolá Expedition; and • The historic importance of Spanish “Discovery” of the San Francisco Bay and significance of the Portolá Expedition as an overland expedition. FYI Memo on Ohlone/Portola Heritage Trail Page 3 June 28, 2017 Board Meeting 3 Overall Schedule and Key Milestones To date, Supervisor Horsley has facilitated six (6) Committee meetings, which have met quarterly since February 2016. This collaboration has led to the following key milestones: • Agreement on an official trail name, Ohlone/Portolá Heritage Trail; • Creation of a working base map showing the proposed historic route along the coast; • Securing technical NPS staff assistance from their Rivers, Trail, and Conservation Assistance Program to develop a scope for the trail feasibility study; • Working with NPS and the Interpretation Sub-Committee to draft the Interpretive Plan; • $200,000 in Measure K funds allocated for system improvements to the Sanchez Adobe Historical Site Project in Pacifica; and • $75,000 in Measure K funds allocated to assess the opportunities and constraints of designating the Ohlone/Portolá Heritage Trail as a National Historic Trail. The overall schedule for the commemoration of this historic trail designation includes: • Targeted 2018 opening of an Interpretive Center at the Sanchez Adobe Historic Site (to begin the commemoration); • Targeted 2019 designation of the Ohlone/Portolá Heritage Trail route as a national historic trail through Congress; and • Targeted 2019 Anniversary Date of the Discovery of San Francisco Bay with interpretive programs and activities, opening the northernmost portion of the trail at Sweeny Ridge, creation of auto tours, and publications. ------------------------------------------------------------------------------------------------------------------ Prepared by: Ana Ruiz, AICP, Assistant General Manager Jane Mark, AICP, Planning Manager Attachments: 1. Conceptual Overview Map of Ohlone/Portola Heritage Trail (Rancho del Oso Nature & History Center to Discovery Site) 2. East-side Overview Map of Ohlone/Portola Heritage Trail (Discovery Site to El Palo Alto) !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! ! ! ! ! ! !!!! !!! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!!!!!!! ! ! ! !!!! ! ! !! ! !!!!! ! ! ! !!!! ! ! ! !! ! ! ! ! ! ! ! ! ! !!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!!! ! ! ! ! ! !!!! !!!! ! ! ! ! !!! !! !!!! ! ! !! !! ! !!!! ! ! !! !! ! ! !!!! ! ! ! ! ! !! ! ! !!!! !!! ! ! ! ! ! ! ! !!! !!!! ! ! !!!! !!!!!!!!!! !!! !!!!! ! ! ! ! !! !!!!! ! !!!!!! ! !!!!!!!!!!!!!!!! ! !!! ! ! ! ! ! !!! !!!! ! ! !! !!! ! !!!!!!!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! !!!!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!! !(!( !( SA N M AT E O C O U N T Y SA N TA C RU Z C O U N T Y SA N TA C L A R A C O U N T Y SanJose PA C IF I COC EA N S A NFR A N C I S C OB A Y RedwoodCity SanMateo PaloAlto Pacifica HalfMoonBay Pescadero MountainView SanGregorio Discovery Site Rancho del Oso Nature & History Center !!!!!!!!!!!!!!!!!! ! ! ! ! ! ! !!!!! !! ! ! ! ! ! ! !! !!!!!!!!!!!!!!!!! !!! ! ! ! ! ! !!!! ! ! ! ! ! ! ! ! ! !! ! ! ! ! !! ! ! ! ! !!!!!!! ! ! ! ! !!! ! ! ! !! ! !! !!! ! !! !! !!!!!!! ! ! ! !! !!! ! ! ! ! ! ! ! ! ! ! !!! ! ! ! ! !!! ! ! ! ! !!!! ! !!!! ! ! ! ! ! ! !! !!!!! !(!( !( SFBAY PACIFICOCEAN S A NM A T E OC O U N T Y S A N T AC L A R AC O U N T YS A N T AC R U ZC O U N T Y A L A M E D AC O U N T Y C O N T R AC O S T AC O U N T YSanFrancisco Oakland SanJose SantaCruz Draft Trail Alignment Portolá Historic Route !(Camps (1/4 Mile Diameter) !(Tribal Villages (1/2 Mile Diameter) !(Points of Interest Major Roads ! ! ! ! ! ! !County Line Ohlone/Portolá Heritage Trail Overview Scale: 1:300,000 Date: 6/19/17 Sources: ESRI, CPAD, POST San Mateo County 2016, all rights reserved´0 5 102.5 Miles Attachment 1 ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!!!!!! !! ! !! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!!!!!!! ! ! ! ! ! ! !!!!!!!! ! ! ! !! !! ! !!!!! !!!!!!!!! ! ! ! ! !! !!! ! !!!! ! ! !!!!!!!!!! !! !!!!! ! !! !!!!!! !!!! !!! ! !!!!! ! ! !! ! ! ! ! !! !!!!!!!! !( S A NFR A N C I S C OB A Y RedwoodCity SanMateo Discovery Site Ä48Æ Ä28Æ El Palo Alto W hi sk e y H i l l PortolaRoad AlpineR o a d CañadaRoad ElCaminoReal PaloAlto Cry stalS p rin gs T rail Sn eat hLane ¨§2 08¦Ä53Æ PortolaValley Woodside !!!!!!!!!!!!!!!!!!! ! ! ! ! ! !!!!! !! ! ! ! ! ! ! !! !!!!!!!!!!!!!!!!!!!! ! ! ! ! ! ! !!! ! ! ! ! ! ! ! ! ! !! !! ! ! !! ! ! ! ! ! ! !!!!! ! !! ! !!! ! ! ! ! ! ! !! ! ! ! ! !! !! !!! !!!!! ! ! ! ! !!! ! ! ! ! ! ! ! ! ! ! !!!! ! ! !!!! ! ! ! ! !!!! ! !!!! ! ! ! ! ! ! !! !!!!! !(!( !( SFBAY PACIFICOCEAN S A NM A T E OC O U N T Y S A N T AC L A R AC O U N T YS A N T AC R U ZC O U N T Y A L A M E D AC O U N T Y C O N T R AC O S T AC O U N T YSanFrancisco Oakland SanJose SantaCruz Draft Trail Alignment (~31.5miles) Portolá Historic Route (For Reference Only) !(Camps (1/4 Mile Diameter) !(Tribal Villages (1/2 Mile Diameter) !(Points of Interest Major Roads ! ! ! ! ! !County Line Ohlone/Portolá Heritage Trail Overview - Discovery Site to El Palo Alto Scale: 1:125,000 Date: 6/19/17 Sources: ESRI, CPAD, POST San Mateo County 2016, all rights reserved´ S a n d H i l l R o a d AlamedadeLasPulgas Ä29Æ 0 2 41 Miles Attachment 2 DATE: July 7 , 2017 MEMO TO: MROSD Board of Directors FROM: Kevin Woodhouse, Assistant General Manager Carmen Lau, Public Affairs Program Coordinator THROUGH: Stephen E. Abbors, General Manager SUBJECT: Summary of District - Latino Outdoors Partnership, FY2016-17 and 2017-18 This memorandum provides a summary of District - Latino Outdoors partnership accomplishments in FY2016-17, and the proposed components of the contract for FY2017-18. I. History The District’s Board of Directors set a goal for the District to connect people to open space and a regional conservation vision by reaching diverse communities. The Latino community comprises 30% of the District’s constituency, but the population is underrepresented in preserve usage. The Public Affairs Department recommended collaborating with Latino Outdoors for assistance in targeted outreach to diverse audiences. Latino Outdoors is a nationally recognized non-profit aimed at connecting communities with the outdoors, with a focus on Latino youth and families. Jose Gonzales is the founder of Latino Outdoors and has successfully conducted program development and staff training in the past. Latino Outdoors has partnerships with many other park agencies in the Bay Area, including Santa Clara Valley Open Space Authority, National Parks Service, and Golden Gate National Parks Conservancy. The District’s partnership with Latino Outdoors began 2 years ago. In 2015, Latino Outdoors and the District collaborated to provide a series of hikes in Midpen preserves for the Latino community. The District provided a shuttle to bring participants to the preserves. In May 2015, Jose Gonzales from Latino Outdoors provided a Diversity Training for staff and board members. The District entered into a contract agreement with Latino Outdoors in FY2016-17, and is in the process of renewing the contract for FY2017-18. There are three main goals of the partnership with Latino Outdoors: • Connect the Latino community to open space and a regional conservation vision. • Develop a comprehensive public outreach program to engage diverse communities and enhance public education. • Ensure that the Latino community can actively engage in the conservation movement. II. Accomplishments of Latino Outdoors Contract in FY2016-17 The contract compensation to Latino Outdoors was $25,000 in FY2016- 17. Outdoor Nature Hikes – FY2016-17 Date Preserve # of participants Saturday, August 6, 2016 Russian Ridge OSP 5 Sunday, September 25, 2016 Rancho San Antonio OSP 16 Sunday, October 23, 2016 Picchetti Ranch OSP 13 Friday, November 25, 2016 Fremont Older OSP 7 Saturday, January 28, 2017 Ravenswood OSP 11 Saturday, February 18, 2017 Windy Hill OSP 0 Saturday, March 25, 2017 Picchetti Ranch OSP 21 Saturday, April 8, 2017 Russian Ridge OSP Rescheduled due to rain Saturday, May 27, 2017 Russian Ridge OSP 18 Sunday, June 25, 2017 Thornewood OSP TBD • Outreach Efforts Latino Outdoors and Mipen staff promoted the nature hikes through Facebook, online community calendars, and word of mouth invitations. The word of mouth invitations made the most impact in reaching new and existing participants. • Cultural Relevancy Development Training On May 24, 2017, Jose Gonzales provided two Cultural Relevancy Development Training sessions to Midpen Ranger staff. The two-hour trainings were held at the Interpretive Center at the City of Palo Alto’s Foothills Park. The trainings discussed the importance of cultural diversity in engaging communities to the outdoors. The training included a presentation about cultural diversity in relation to natural landscapes, and an overview between the relationship of diversity, equity, inclusion, implicit bias, and structural inequity. There was a great deal of group discussion and questions from the participants. To conclude the training, Jose brought the group outside to have a group discussion and reflection. • Community Convenings Jose Gonzales and other Latino Outdoors staff will assist with the District’s Youth Outreach Strategy. Public Affairs staff will work with Latino Outdoors staff to develop a comprehensive youth outreach plan that promotes the District’s mission and preserves to youth. The outreach plan will take place in FY2017-18. • Reporting Jose will provide a summary report to the Diversity Committee III. Proposed Scope for Latino Outdoors Contract FY2017-18 The goals of the partnership with Latino Outdoors will remain the same as last year, with an emphasis on: • Strengthening relationships with Latino Outdoor participants, volunteers, and staff • Increasing attendance and participation at outdoor nature hikes • Developing strategies to connect and engage with diverse youth The contract length in FY 2017-18 is from July 1, 2017 to June 30, 2018. The Public Affairs budget includes $35,000 for this contract. Staff expects the final contract to be less than this amount (Latino Outdoors recently provided an estimate of $19,100). In this case, the surplus would remain unspent, or could be used for additional programming or other Public Affairs initiatives. Outdoor Nature Hikes - FY2017-18 Date Preserve Theme Saturday, July 22, 2017 St. Joseph’s Hill OSP Learn how to read a map Sunday, August 20, 2017 Purisima Creek OSP Health benefits of nature Saturday, September 9, 2017 Pulgas Ridge OSP Leave no trace principles Saturday & Sunday, October 7-8, 2017 Monte Bello OSP Camping at Black Mountain Friday, November 24, 2017 Skyline Ridge OSP Introduction to Geocaching There will be four more scheduled hikes from January through June 2018. The hike schedule and activities for January through June 2018 will planned in fall 2017. • Outreach Strategy The main goal of the Outdoor Nature Hikes is for participants to gain a deeper appreciation for nature and land stewardship through these new outdoor experiences. The hikes in FY2017-18 will focus on interesting themes that relate to nature, community, and a positive outdoor experience. Participants will have an opportunity to join a weekend camping experience at Black Mountain Backpack Camp in Monte Bello Open Space Preserve in October 2017. Latino Outdoors has resources to rent free backpacking and camping equipment for participants to use. • Outreach Actions There will be additional outreach efforts to promote the Outdoor Nature Hikes in FY 2017-18. The outreach strategies include: • Develop a flyer • Create an E-newsletter • Post on Latino Outdoors website and Facebook page • Post on the District’s website and Facebook page • Create a MeetUp Group • Post on community calendars such as Bay Area Parent, Cheap Fun SF, SF Gate, HPHP Bay Area, and Bay Nature • Youth Outreach Engagement Latino Outdoors will assist with the District’s Youth Outreach Strategy Plan. The District and Latino Outdoors staff will develop a strategic plan to reach diverse youth. Latino Outdoors will help provide presentation content and staff support in this effort. • Cultural Relevancy Development Training Latino Outdoors staff will provide two District-only presentations. These presentations will build upon the concepts presented from the Cultural Relevancy Training on May 24, 2017. • Reporting Latino Outdoors staff will provide a summary report to the Diversity Committee.