HomeMy Public PortalAbout20150513 - Agenda Packet - Board of Directors (BOD) - 15-13
SPECIAL AND REGULAR MEETING
BOARD OF DIRECTORS OF THE
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
330 Distel Circle
Los Altos, CA 94022
Wednesday, May 13, 2015
SPECIAL MEETING BEGINS AT 5:00
REGULAR MEETING BEGINS AT 7:00
A G E N D A
5:00 SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT – CLOSED SESSION
ROLL CALL
1. CLOSED SESSION: PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(GOVERNMENT CODE SECTION 54957(b)(1))
Title of Employees: Controller, General Counsel and General Manager
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 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
SPECIAL ORDER OF THE DAY
Introduction of: Frank Hernandez, Finance & Budget Analyst II and Coty Sifuentes, IPM
Coordinator
CONSENT CALENDAR
All items on the Consent Calendar may be approved without discussion by one motion. Board members,
Meeting 15-13
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 Claims Report
2. Written Communications
Karl Rowley
3. Contract for Completion of the Mindego Ranch Remediation and Demolition Project at
Russian Ridge Open Space Preserve (R-15-75)
Staff Contact: Aaron Hébert, Project Manager
General Manager’s Recommendation: Authorize the General Manager to enter into a contract
with Randazzo Enterprises, Inc., of Castroville, CA, for a not-to-exceed amount of $180,055 to
complete the Mindego Ranch Remediation and Demolition Project at the Russian Ridge Open
Space Preserve. The not-to-exceed amount includes a base bid of $145,995 for demolition and
remediation, a 15% contingency amount of $21,900, and an allowance of $12,160 for potential
stand down time related to delays to protect the federally-endangered San Francisco garter snake,
if encountered during construction.
4.
Contract for Legal Services in Litigation, Mahronich et al v. Presentation Center, et al. (R-
15-80)
Staff Contact: Sheryl Schaffner, General Counsel
General Manager’s Recommendation: Approve a contract with Howard Rome Martin & Ridley
LLP for an amount not-to-exceed $30,000 for legal services relating to pending litigation.
5. Special Legal Services Contract relating to Real Property Issues (R-15-76)
Staff Contact: Sheryl Schaffner, General Counsel
General Manager’s Recommendation: Approve the proposed contract with Price, Postel &
Parma, LLP, for Special Legal Services relating to Real Property for a total not-to-exceed amount
of $100,000
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. Appointment of Chris Furniss and Natalie Hanna as Peace Officers (R-15-61)
Staff Contact: Michael Newburn, Operations Manager
General Manager’s Recommendation: Adopt Resolutions of the Board of Directors of the
Midpeninsula Regional Open Space District appointing Chris Furniss and Natalie Hanna as
Peace Officers.
7. Resolution Approving Documents Relating to Issuance of General Obligation Bonds, Series
2015A (R-15-72)
Staff Contact: Michael Foster, Controller
General Manager’s Recommendation: Adopt a Resolution of the Board of Directors of the
Midpeninsula Regional Open Space District authorizing the issuance and sale of General
Obligation Bonds, Series 2015A, approving an Official Statement, and providing other matters
properly related thereto.
8. Resolution of Support Endorsing Six Priority Conservation Areas in San Mateo County
and Nine Priority Conservation Areas in Santa Clara County nominated by the
Midpeninsula Regional Open Space District; and a Resolution of Support for Two Priority
Conservation Areas Nominated by the California State Coastal Conservancy and a
Resolution of Support for One Priority Conservation Area Nominated by the City of Menlo
Park (R-15-73)
Staff Contact: Jane Mark, AICP, Planning Manager
General Manager’s Recommendations:
1. Adopt a resolution of support endorsing the nomination of six (6) Priority Conservation Areas
in San Mateo County and nine (9) Priority Conservation Areas in Santa Clara County, as well
as the PCA designation categories selected for the existing and new Priority Conservation
Areas.
2. Adopt resolutions of support for the nomination of the following Priority Conservation Areas
by other agencies: 1) the Menlo Park and East Palo Alto Baylands, which includes
Ravenswood Open Space Preserve, nominated by the City of Menlo Park and 2) the corridors
for the California Coastal Trail and San Francisco Bay Area Water Trail nominated by the
California State Coastal Conservancy.
9. Intent to Accept a Gift of a Conservation Easement over three Los Trancos County Water
District Parcels, two located in unincorporated San Mateo County (Assessor Parcel
Numbers 080-060-126 and 080-071-010) and one located in the Town of Portola Valley
(Assessor Parcel Number 080-241-410) (R-15-77)
Staff Contact: Ana Ruiz, Assistant General Manager
General Manager’s Recommendations:
1. Authorize the General Manager to negotiate the terms and conditions of a Conservation
Easement over three Los Trancos County Water District (LTCWD) parcels with San Mateo
County and Woodside Fire Protection District, the successors in interest to the LTCWD
property, to conform to the terms specified herein. This authorization is contingent upon the
completion of the LTCWD dissolution and transfer of properties as further described in this
report.
2. Direct the General Manager to return to the Board of Directors for acceptance of the
Conservation Easement once the various dissolution and property transfer approvals are
secured through other agencies.
10. Proposed Purchase of the Ashworth Property as an addition to La Honda Creek Open
Space Preserve located on Bear Gulch Road in unincorporated San Mateo County
(Assessor’s Parcel Number 075-340-240) (R-15-74)
Staff Contact: Allen Ishibashi, Senior Real Property Agent
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 purchase of the Ashworth property.
3. Adopt a Preliminary Use and Management Plan for the property, as set out in the staff report.
4. Indicate the intention to withhold the Ashworth property as public open space.
11. Proposed purchase of the Peninsula Open Space Trust (Hendrys Creek) property in
partnership with Santa Clara Valley Water District as an addition to the Cathedral Oaks
Area of the Sierra Azul Open Space Preserve, located at 20610 Aldercroft Heights Road,
Los Gatos in unincorporated Santa Clara County (Santa Clara County Assessor’s Parcel
Numbers 558-27-007, 558-27-008, and 558-51-005) (R-15-71)
Staff Contact: Michael C. Williams, Real Property Manager
General Manager’s Recommendations:
1. Adopt a Resolution approving the Initial Study/Mitigated Negative Declaration and the
Mitigation Monitoring Program for Hendrys Creek Project in accordance with the California
Environmental Quality Act (CEQA), and adopt the findings set out in the Draft Resolution.
2. Adopt a Resolution authorizing execution of a Memorandum of Understanding with
Peninsula Open Space Trust and Santa Clara Valley Water District to purchase the property
and convey a Conservation Easement and Long-term Management Plan to Santa Clara Valley
Water District.
3. Adopt the Amended Preliminary Use and Management Plan, which will be incorporated into
the Long-term Management Plan, and name the property as an addition to the Cathedral Oaks
Area of Sierra Azul Open Space Preserve.
4. Dedicate the property as public open space pursuant to the District’s Annual Policy for Dedication of
Lands.
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 factual information; request staff to report back 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.
A. Committee Reports
B. Staff Reports
C. Director Reports
ADJOURNMENT
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, Maria Soria, Deputy 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 May 8, 2015, at the
Administrative Offices of MROSD, 330 Distel Circle, Los Altos California, 94022. Agenda materials are also available on the
District’s website at http://www.openspace.org.
Signed May 8, 2015 at Los Altos, California.
From:
To:web ; Clerk
Subject:Full Board of Directors and District Clerk - Board Contact Form
Date:Monday, April 20, 2015 5:38:19 PM
Name *Karl Rowley
Select a Choice Full Board of Directors and District Clerk
Email *
Location: (i.e. City, Address or
District Ward)
Sunnyvale, CA
Comments: *
It's now 2015, and it's been nearly 10 years since the purchase of many acres for the La Honda
Creek Open Space Preserve. I am writing you today because I think you need to make access to
this land a major priority.
I read on the District web site that the plan for opening this land is delayed. I'm starting to wonder
if the planning and study process you are following has become too cumbersome and too
expensive. How much money have you spent on paying consultants to study La Honda Creek at
this point? We the taxpayers paid for this 5,000-plus acres through our hard-earned tax dollars,
and we expect access in a reasonable time frame.
We are now 10 years out from the purchase, well how long is it going to take, another 10-20
years? It shouldn't take this long. If there are endangered species and threatened landscapes, let's
identify them right now and decide what to do. Then just go ahead and do it, it doesn't need to
take 10 years.
The District got additional funding from the voters in the last election. OK spend the money and
open up La Honda Creek for access right now!!!! We paid for it and we deserve it soon!!!!
Please move the whole project back to the FRONT BURNER!!!
Sincerely,
Karl Rowley
20 year Sunnyvale MPROSD taxpayer
DRAFT RESPONSE FOR BOARD CONSIDERATION
May 13, 2015
Karl Rowley
karl01@pacbell.net
RE: Electronic Comment Dated April 20, 2015 related to public access to La Honda Creek Open
Space Preserve
Dear Mr. Rowley:
Thank you for submitting your comments regarding the planning process, timing and
prioritization for opening La Honda Creek Open Space Preserve (La Honda Preserve) to public
access. You will be happy to know that two major projects in the La Honda Preserve are on the
Midpeninsula Regional Open Space District’s (District) work plan for this fiscal year. As you
state in your letter, these projects are made possible through the public’s support of Measure AA,
which is allowing the District to prioritize and ramp up on the implementation of new open space
projects in support of land conservation, public access and environmental restoration.
Soon after the successful passage of Measure AA, the District facilitated a public process in
September and October 2014 that resulted in the approval of a 5-Year Measure AA Project List
by the District’s Board of Directors (Board) that identifies the first set of Measure AA projects to
be completed (refer to http://www.openspace.org/measureaa/). This list includes the following
two public access projects at the La Honda Preserve: (1) Red Barn Complex and trail
connections, and (2) Sears Ranch Road staging area and trail connections. Both projects are
scheduled to begin by later summer and will be managed by a new public access capital project
manager position, which was approved by the Board specifically to provide staff capacity to
implement these two new projects. Recruitment for this position is currently underway, with
selection expected by June. In addition, on March 2015, the Board also approved sufficient
funding for the design, engineering and permitting of these new public access projects as part of
the Fiscal Year 2015-16 Budget (the District’s fiscal year runs from April 1 – March 31). Future
fiscal years will include additional project budgets to fund construction. Your letter has
reminded us that we need to update our website to inform the public of these new developments
and the upcoming implementation projects that the District will be initiating this year.
We realize that it has taken the District some time to get to this point where we can begin
focusing on the implementation of the La Honda Creek Open Space Preserve Master Plan. In the
past, the District has faced many competing priorities, many of which have received the benefit
of outside grants and partnerships, which has expedited their implementation and resulted in the
delay of other projects such as the opening of the La Honda Preserve. Now, with the recent
passage of Measure AA, members of the public, including you, will begin to see great benefits
coming from this new secured source of funding as new Preserve areas and recreational
amenities are made open to the public.
Finally, in your letter you ask specifically about the prior costs to study the La Honda Preserve.
For the Master Plan, the District hired the firm Design, Community, and Engagement at a cost of
approximately $150,000 to assist with the planning process, as well as Ascent Environmental at a
DRAFT RESPONSE FOR BOARD CONSIDERATION
cost of approximately $55,000 to prepare the Initial Study/Mitigated Negative Declaration
(IS/MND). The Master Plan was approved and the IS/MND was certified by the Board on
August 2012. The Master Plan provides a full implementation roadmap for a wide range of
public access, natural resource restoration, cultural resource protection, and maintenance/
operational projects that can be phased in over the course of 30 years.
I would like to thank you again for taking the time to submit your comments and for providing us
the opportunity to respond to questions related to the timing of opening the La Honda Preserve
for public access. We share your eagerness to see new Preserve areas made open to the public
and hope to see you soon in the near future as we host ribbon cutting celebrations with the
public. Please feel free to contact Ana Ruiz, Assistant General Manager, with any other
questions or comments via email at aruiz@openspace.org or via phone at (650) 691-1200.
Sincerely,
Pete Siemens, Board President
cc: MROSD Board of Directors
Steve Abbors, General Manager
Ana Ruiz, Assistant General Manager
From:
To:web ; Clerk
Subject:Full Board of Directors and District Clerk - Board Contact Form
Date:Monday, April 20, 2015 5:38:19 PM
Name *Karl Rowley
Select a Choice Full Board of Directors and District Clerk
Email *
Location: (i.e. City, Address or
District Ward)
Sunnyvale, CA
Comments: *
It's now 2015, and it's been nearly 10 years since the purchase of many acres for the La Honda
Creek Open Space Preserve. I am writing you today because I think you need to make access to
this land a major priority.
I read on the District web site that the plan for opening this land is delayed. I'm starting to wonder
if the planning and study process you are following has become too cumbersome and too
expensive. How much money have you spent on paying consultants to study La Honda Creek at
this point? We the taxpayers paid for this 5,000-plus acres through our hard-earned tax dollars,
and we expect access in a reasonable time frame.
We are now 10 years out from the purchase, well how long is it going to take, another 10-20
years? It shouldn't take this long. If there are endangered species and threatened landscapes, let's
identify them right now and decide what to do. Then just go ahead and do it, it doesn't need to
take 10 years.
The District got additional funding from the voters in the last election. OK spend the money and
open up La Honda Creek for access right now!!!! We paid for it and we deserve it soon!!!!
Please move the whole project back to the FRONT BURNER!!!
Sincerely,
Karl Rowley
20 year Sunnyvale MPROSD taxpayer
DRAFT RESPONSE FOR BOARD CONSIDERATION
May 13, 2015
Karl Rowley
karl01@pacbell.net
RE: Electronic Comment Dated April 20, 2015 related to public access to La Honda Creek Open
Space Preserve
Dear Mr. Rowley:
Thank you for submitting your comments regarding the planning process, timing and
prioritization for opening La Honda Creek Open Space Preserve (La Honda Preserve) to public
access. You will be happy to know that two major projects in the La Honda Preserve are on the
Midpeninsula Regional Open Space District’s (District) work plan for this fiscal year. As you
state in your letter, these projects are made possible through the public’s support of Measure AA,
which is allowing the District to prioritize and ramp up on the implementation of new open space
projects in support of land conservation, public access and environmental restoration.
Soon after the successful passage of Measure AA, the District facilitated a public process in
September and October 2014 that resulted in the approval of a 5-Year Measure AA Project List
by the District’s Board of Directors (Board) that identifies the first set of Measure AA projects to
be completed (refer to http://www.openspace.org/measureaa/). This list includes the following
two public access projects at the La Honda Preserve: (1) Red Barn Complex and trail
connections, and (2) Sears Ranch Road staging area and trail connections. Both projects are
scheduled to begin by later summer and will be managed by a new public access capital project
manager position, which was approved by the Board specifically to provide staff capacity to
implement these two new projects. Recruitment for this position is currently underway, with
selection expected by June. In addition, on March 2015, the Board also approved sufficient
funding for the design, engineering and permitting of these new public access projects as part of
the Fiscal Year 2015-16 Budget (the District’s fiscal year runs from April 1 – March 31). Future
fiscal years will include additional project budgets to fund construction. Your letter has
reminded us that we need to update our website to inform the public of these new developments
and the upcoming implementation projects that the District will be initiating this year.
We realize that it has taken the District some time to get to this point where we can begin
focusing on the implementation of the La Honda Creek Open Space Preserve Master Plan. In the
past, the District has faced many competing priorities, many of which have received the benefit
of outside grants and partnerships, which has expediting their implementation and resulted in the
delay of other projects such as the opening of the La Honda Preserve. Now, with the recent
passage of Measure AA, members of the public, including you, will begin to see great benefits
coming from this new secured source of funding as new Preserve areas and recreational
amenities are made open to the public.
Finally, in your letter you ask specifically about the prior costs to study the La Honda Preserve.
For the Master Plan, the District hired the firm Design, Community, and Engagement at a cost of
approximately $150,000 to assist with the planning process, as well as Ascent Environmental at a
DRAFT RESPONSE FOR BOARD CONSIDERATION
cost of approximately $55,000 to prepare the Initial Study/Mitigated Negative Declaration
(IS/MND). The Master Plan was approved and the IS/MND was certified by the Board on
August 2012. The Master Plan provides a full implementation roadmap for a wide range of
public access, natural resource restoration, cultural resource protection, and maintenance/
operational projects that can be phased in over the course of 30 years.
I would like to thank you again for taking the time to submit your comments and for providing us
the opportunity to respond to questions related to the timing of opening the La Honda Preserve
for public access. We share your eagerness to see new Preserve areas made open to the public
and hope to see you soon in the near future as we host ribbon cutting celebrations with the
public. Please feel free to contact Ana Ruiz, Assistant General Manager, with any other
questions or comments via email at aruiz@openspace.org or via phone at (650) 691-1200.
Sincerely,
Pete Siemens, Board President
cc: MROSD Board of Directors
Steve Abbors, General Manager
Ana Ruiz, Assistant General Manager
R-15-75
Meeting 15-13
May 13, 2015
AGENDA ITEM 3
AGENDA ITEM
Contract for Completion of the Mindego Ranch Remediation and Demolition Project at Russian
Ridge Open Space Preserve
GENERAL MANAGER’S RECOMMENDATION
Authorize the General Manager to enter into a contract with Randazzo Enterprises, Inc., of
Castroville, CA, for a not-to-exceed amount of $180,055 to complete the Mindego Ranch
Remediation and Demolition Project at the Russian Ridge Open Space Preserve. The not-to-
exceed amount includes a base bid of $145,995 for demolition and remediation, a 15%
contingency amount of $21,900, and an allowance of $12,160 for potential stand down time
related to delays to protect the federally-endangered San Francisco garter snake, if encountered
during construction.
SUMMARY
The demolition of the former ranch residence and associated outbuildings, as well as the corrals
and barn near the residence, was approved by the Board of Directors (Board) as part of the
Mindego Ranch Use and Management Plan Amendment (R-14-21). A Request for Bids for
remediation, demolition and site restoration at Mindego Ranch was issued on March 31, 2015.
Three bid proposals were received and opened on April 11, 2015. The General Manager
recommends awarding the contract for the Mindego Ranch Remediation and Demolition Project
(Project) to the lowest responsive and responsible bidder, Randazzo Enterprises, Inc., for a total
not-to-exceed amount of $180,055. This amount includes an allowance for the protection and
avoidance of the federally-endangered San Francisco garter snake (SFGS), which is known to
inhabit the area. Funds for this work are provided through the District’s General Fund, and
included in the Fiscal Year (FY) 2015-16 Budget for the Planning Department. The Project is
being implemented by the Operations Department.
DISCUSSION
Background
At the January 22, 2014 Board of Directors meeting (R-14-21), the Board approved a Use and
Management Plan (U&M Plan) and adopted the Mitigated Negative Declaration and Mitigated
Monitoring and Reporting Plan for purchase of the Mindego Ranch property. Approvals
included demolition and removal of two houses, a barn, corral, fencing, and several outbuildings.
R-15-75 Page 2
Contract Scope and the Protection of the San Francisco Garter Snake (SFGS)
The contract encompasses remediation, demolition, recycling, salvage, and minor site grading at
Mindego Ranch. The demolition actions are covered by the US Fish and Wildlife Service
Recovery Permit and CA Department of Fish and Wildlife Memorandum of Understanding for
the SFGS granted to the District. The demolition actions would occur in the upland habitat of the
SFGS, and the SFGS has on occasion been observed beneath the structures. Demolition would
be split into two distinct areas that have a lower and higher probability for encountering SFGS.
An essential requirement of the project and Recovery Permit is that all site disturbance be
substantially completed within the month of July, when SFGS are least likely to be present. An
onsite, third-party biological monitor is separately under contract with the District through an on-
call biological contract and would be present for the duration of the project. The contractor
would closely coordinate their work and receive instruction and clearance from the biological
monitor to proceed with individual demolition actions. Careful measures to survey, exclude, and
entirely avoid SFGS are an essential part of the overall Project.
Should SFGS be discovered in the course of surveys, demolitions operations would cease
(known as “stand down time”). Flushing or waiting for the SFGS to vacate on its own is only
expected to last a short period of time. Since the frequency and probability of SFGS occupancy
of the structures and demolition areas are impossible to predict, costs associated with these
potential delays were not incorporated in the ‘base bid’. The potential costs of SFGS avoidance
are instead captured in the project allowance. Staff analyzed several alternative bidding
strategies and used the services of a demolitions estimator to refine the bid strategy. The base
bid incorporates standard demolition practices for Midpeninsula Regional Open Space District
(District) projects, which include general and supplemental conditions that define working in
biologically sensitive areas, and defines ‘stand down time’ whereby the biological monitor and
contractor track delays due to the presence of SFGS by the minute. Hourly rates for equipment
operators, the foreman, and laborers are then multiplied by the hours of stand down time
accumulated each week and a change order would be issued against the project’s allowance.
Waste Stream Diversion
At the January 14, 2015 Board of Directors meeting (R-15-01), the Board approved the
Construction and Demolition Waste Diversion Policy (Policy number 4.08). This policy directs
the District project manager to review potential construction and demolition debris for recycle
and salvage with the goal of diverting 100% of recyclable materials.
Each project occurs in a specific environmental context and contains a unique combination of
materials. The District’s preferred practice for concrete is to bury it on site to reduce off hauling
costs and carbon emissions. Burying concrete requires additional time and work on site that
would, in this instance, increase the potential risk of harm to SFGS. The base bid includes the
off hauling and recycling of concrete. Moreover, the concrete foundations on site may be
providing important habitat for the SFGS. As the project progresses, the project manager,
biological monitor, and District biological staff will determine the most appropriate approach in
the field, including retaining the exposed concrete on site, burying, or off-hauling.
Contactor Selection
A Request for Bids was issued on March 31, 2015, and was sent to all interested parties and five
(5) builders’ exchanges. Legal notices were posted in the San Jose Mercury News and the San
Mateo County Times. An Invitation to Bid was also posted on the District website.
R-15-75 Page 3
A mandatory pre-bid meeting and site walk was held onsite on April 9, 2015 and was attended
by eleven (11) demolition and remediation contractors. Sealed bids were due on April 21, 2015,
and three bids were received and opened with the results as follows:
Table 1: Remediation and Demolition (Base Bid)
Bidder Location Total Base Bid
Difference
from Cost
Estimate of
$105,000
Pantano Excavation, Incorporated* Vernalis, CA $142,560 36%
Randazzo Enterprises, Incorporated Castroville, CA $145,995 39%
TKO Construction, Incorporated* Woodside, CA $187,531 79%
Bid Analysis
Upon review of the bid proposals, Pantano and TKO each failed to provide Bid Addendum #1 in
their respective bid proposals and were deemed non-responsive. After reviewing the contractors'
relevant experience and qualifications, staff recommends awarding the contract to Randazzo
Enterprises, Inc., which is the lowest responsible and responsive bidder.
All three bids received were substantially over the cost estimate of $105,000 because
remediation work was not included in the original cost estimate, but was made part of the
Request for Bids. Remediation costs of approximately $20,000 were appropriately included in
each of the three bids and are reasonable project-related costs. Additional costs are related to
coordinating the work around the SFGS restrictions and the cost of retaining the availability of
the contractor to perform the work within the strict July schedule, which were difficult to account
for in the cost estimate.
Contingency Amount
A 15% contingency amount is recommended for this demolition project due to the high potential
for unforeseen conditions that could be encountered, including but not limited to discoveries
during subsurface excavation and hazardous materials. Although representative hazardous
material sampling was completed, the potential exists for additional hazardous materials beyond
those already known to be encountered during demolition and ground disturbance activities,
which require appropriate and often costly abatement.
FISCAL IMPACT
The proposed award of contract is for a not-to-exceed amount of $180,055. The District’s
FY2015-16 Planning Department Budget includes $363,000 to complete the remediation and
demolition of Mindego Ranch. Remaining funds will cover additional costs, not included in this
contract, including biological surveys and monitors, permits, and the demolitions estimator.
BOARD COMMITTEE REVIEW
On November 13, 2012, the Use and Management Committee reviewed and recommended
approval of the U&M Plan to the full Board.
R-15-75 Page 4
PUBLIC NOTICE
Public notice of this agenda item was provided per the Brown Act. Adjoining property owners
have also been mailed a copy of the agenda for this public meeting. No additional notice is
required.
CEQA COMPLIANCE
Awarding the bid and issuing a contract for the Mindego Remediation and Demolition is
consistent with the Mitigated Negative Declaration and Mitigation Monitoring
Program for the Mindego Ranch Use and Management Plan Amendment (R-14-21).
NEXT STEPS
If the recommendation is approved by the Board of Directors, the General Manager will enter
into a contract with Randazzo, Inc., to complete remediation and demolition of all structures and
perform site restoration work. Activation of the contract is subject to the contractor meeting all
District requirements, including required insurance and bonding. The permit process will begin
immediately after contracting. Construction is anticipated to begin this July and be substantially
complete by July 31.
Attachments:
1. Location Map
2. Site Maps
Responsible Department Head:
Jane Mark, AICP, Planning Manager
Prepared by:
Aaron Hébert, Project Manager
Graphics prepared by:
Michele Childs, GIS Technician
Coal Mine Ridg
eCoal Mine Ridg
e
DD
e
e
vv
iill
ss
CCaannyyoo nn
AudubonSociety
RussianRidge
SkylineRidge
Hidden
V
i
l
l
a
(Duveneck
R
a
n
c
h
)
LosTrancos
CoalCreek
SF YouthAuthority
MonteBello
City of Palo Alto
La Honda
Sam McDonald Park(S.M. Co.)
M indego C r eek
StevensCreek
CorteMadera
C
r
e
e
k
AlpineCre e k
L
os
Tranco
s
C
r
e
e
k
R
odgers G ulch
LangleyCreek
W o o d r uf f C r e e k
CoalCreek
West
ForkAdobe C r e e k
W ood h a m s C r e e k
Lam b ert C r e e k
P
e
t
e
r
s
C
r
e
e
k
Woodruff Creek
Alpi n e C r e e k
Mi
n
d
e
g
o
C
r
e
e
k
L
a
n
g
l
e
y
C
r
e
e
k
W o o d h a m s C reek
Midpeninsula RegionalOpen Space District
Attachment 1: Location Map
March, 2015
Pa
t
h
:
G
:
\
P
r
o
j
e
c
t
s
\
R
u
s
s
i
a
n
_
R
i
d
g
e
\
M
i
n
d
e
g
o
H
i
l
l
\
M
i
n
d
e
g
o
R
a
n
c
h
P
r
o
p
e
r
t
y
\
d
r
i
v
i
n
g
d
i
r
e
c
t
i
o
n
s
.
m
x
d
Cr
e
a
t
e
d
B
y
:
c
h
i
a
t
t
0 0.80.4
MilesI
(MROSD)Midpen Preserves Private Property
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.
Alpin e R d .
Skylin
e
B
lv
d
Page M i l l Rd.
35
Project Site
Mindego
Ranch
Access Route
Project Site
Mindego Ranch
Access Route (Mindego Hill Trail/Rd)
$WWDFKPHQW
I
I
I
s
0
Mindego Ranch Demolition- Section 2
= Structure
Fence
a _ a New Fence Ito remain)
NM OM
Limit of Work
Water Tank
Underground Conduit
2.1 - House and Garage
2.2 -Barn
2.3 - Shed
2.4 • Tack Storage
2.5 - Shade structure
2.6 • Storage shed
2.7 -Trailer
2.8 • Fencing
2.9 - Fencing
2.10- Fencing
2.11 - Propane Tanks
2.12 - Underground Conduit
125
Mfdpenlnsula Regional
Open Space District
Much, 2015
zo
OPEN
SPINCt
NMIM inn ONnl Mnn m wna.nrn.rtar aY*I.0 u.r,nv..M1n r •S• .. II
R-15-80
Meeting 15-13
May 13, 2015
AGENDA ITEM 4
AGENDA ITEM
Contract for Legal Services in Litigation, Mahronich et al v. Presentation Center, et al.
GENERAL MANAGER’S RECOMMENDATION
Approve a contract with Howard Rome Martin & Ridley LLP for an amount not-to-exceed
$30,000 for legal services relating to pending litigation.
SUMMARY
The Midpeninsula Regional Open Space District (District) was recently served in a lawsuit, Matt
Mahronich, et al. v. Presentation Center, et al. The suit concerns the Alma Water Line, the
ownership of which is shared by the Presentation Center and the District. The District needs to
engage litigation defense counsel to represent its interests in this suit. A mid-year budget
adjustment may be needed to increase the available funds for legal services to complete this
work.
DISCUSSION
The Midpeninsula Regional Open Space District (District) was recently served in a lawsuit, Matt
Mahronich, et al. v. Presentation Center, et al. The suit concerns the Alma Water Line, the
ownership of which is shared by the Presentation Center and the District. While the complaint
contains several causes of action for money damages, none of those are alleged against the
District. Fortunately, this is due to a previous settlement agreement and full release executed
between the plaintiffs and the District in 2013. However, with no monetary damages at issue as
pertains to the District and with only equitable relief (as explained below) alleged against it, the
District’s defense in this matter is excluded from coverage by the California Joint Powers
Pooling Authority (CJPIA). On this basis, the District received a formal denial of defense
coverage for this lawsuit from the CJPIA on May 6, 2015.
Even though there are no monetary damages presently at issue in the case, the District still needs
to maintain a defense in the matter to protect the District’s rights to use the Alma Water line.
One of the allegations seeks to have the easement for the water line over the plaintiff’s property
extinguished. That non-monetary relief, which is called in legal terminology “equitable” or
“declaratory” relief, is not covered under our JPIA Memorandum of Coverage. The District
therefore needs to arrange for its own defense, which is the purpose of this agenda item.
R-15-80 Page 2
The law firm Howard Rome Martin & Ridley LLP has capably, effectively, and efficiently
represented the District on numerous matters over the years, including the wrongful death case,
Haro v. Midpeninsula Regional Open Space District. Most recently, the firm provided
immediate backup in assisting the District by reviewing the settlement agreement discussed
above, so they are very familiar with the case.
For these reasons, the General Counsel and General Manager recommend that the District Board
of Directors approve the execution of a contract for an amount not-to-exceed $30,000 with the
law firm Howard Rome Martin & Ridley LLP to represent the District in this lawsuit.
FISCAL IMPACT
Real Property has $35,000 in its legal services budget, which is intended to cover several
ongoing matters. It is possible that if the other demands anticipated on that money remain low,
the available funds will be sufficient for this contract as well. If not, staff may need to seek a
mid-year budget adjustment to address this additional burden on that budget.
PUBLIC NOTICE
Public notice was provided as required by the Brown Act.
CEQA COMPLIANCE
No compliance is required as this action is not a project under CEQA.
NEXT STEPS
If approved, the General Counsel and General Manager will execute the agreement as described
above.
Responsible Department Head:
General Counsel, Sheryl Schaffner.
Prepared by and Contact Person:
Same as above
R-15-76
Meeting 15-13
May 13, 2015
AGENDA ITEM 5
AGENDA ITEM
Special Legal Services Contract relating to Real Property Issues
GENERAL MANAGER’S RECOMMENDATION
Approve the proposed contract with Price, Postel & Parma, LLP, for Special Legal Services
relating to Real Property for a total not-to-exceed amount of $100,000.
SUMMARY
The District has need of special legal services relating to real property and rights-of-way issues
to provide and protect public access to District Preserves. The General Manager and General
Counsel recommend entering into a contract with Price, Postel and Parma, LLP, for a not-to-
exceed amount of $100,000 to secure these services. The requested funding has been budgeted
for this purpose in the Real Property Department Budget for Fiscal Year 2015-16.
DISCUSSION
There are multiple, long-standing real property and right-of-way issues that need to be addressed
to ensure that the District can provide and protect public access to District Preserves, specifically
on Mount Umunhum, and resolve any disputes relating thereto. Negotiations with individual
private property owners have not been successful in resolving these issues even after a great deal
of staff effort, and it is therefore now necessary to explore all legal options.
District General Counsel, in collaboration with Real Property and the General Manager’s Office,
interviewed three qualified law firms for this engagement, and all agreed that Todd Amspoker,
Esq. and his team at Price, Postel and Parma, Inc, have the skills and approach most suitable for
this task at this time.
FISCAL IMPACT
The FY2015-16 Real Property Budget includes $100,000 for this purpose.
BOARD COMMITTEE REVIEW
This item was not previously reviewed by a Board Committee. The underlying matters have
been discussed in closed session with the full Board.
R-15-76 Page 2
PUBLIC NOTICE
This matter was noticed as required by the Brown Act. No further noticing is required.
CEQA COMPLIANCE
This item is not a project subject to the California Environmental Quality Act.
NEXT STEPS
Pending Board approval, the General Counsel and General Manager will finalize the proposed
contract, engage the services required, and bring back any recommended actions to the Board for
its consideration.
Responsible Department Head:
Sheryl Schaffner, General Counsel
Prepared by:
Sheryl Schaffner, General Counsel
R-15-61
Meeting 15-13
May 13, 2015
AGENDA ITEM 6
AGENDA ITEM
Appointment of Chris Furniss and Natalie Hanna as Peace Officers.
GENERAL MANAGER’S RECOMMENDATION
Adopt the attached Resolutions of the Board of Directors of the Midpeninsula Regional Open
Space District appointing Chris Furniss and Natalie Hanna as Peace Officers.
SUMMARY
Chris Furniss and Natalie Hanna have met all of the requirements for appointment as District
Peace Officers, including completion of the California Peace Officer Standards and Training
(POST) PC 832 class. Adoption of the attached resolutions is required to complete the process of
appointing them as District Peace Officers.
DISCUSSION
At its meeting of January 14, 1976, the Board of Directors determined that District rangers were
to be appointed peace officers as classified by California Penal Code Section 830.31(b).
The code specifies that a person is a peace officer if he/she is designated by a local agency as a
park ranger and regularly employed and paid in that capacity, if the primary duty of the officer is
the protection of park and other property of the agency and the preservation of the peace therein
(see Report R-76-2).
Since January 2010 the Operations Manager has been conducting a swearing-in ceremony for all
newly appointed District Peace Officers. The Operations Manager will orally administer the
written oath that all District Rangers sign and have this act performed before the Board of
Directors (R-10-03).
FISCAL IMPACT
There is no fiscal impact associated with this action. Training and outfitting costs associated
with these Ranger positions were approved by the Board in the FY2015-16 District budget.
R-15-20 Page 2
BOARD COMMITTEE REVIEW
This action was not brought before a Board Committee as it requires action of the full Board.
PUBLIC NOTICE
Public notice was provided as required by the Brown Act. No additional notice is required.
CEQA COMPLIANCE
This proposed action is not a project under the California Environmental Quality Act and no
environmental review is required.
NEXT STEPS
Once appointed, Chris Furniss and Natalie Hanna will continue with their current training
schedule. After their training is completed, which is anticipated to be in June, 2015, they will
assume the full spectrum of ranger duties.
Attachments:
Resolutions
Prepared by:
Gordon Baillie, Management Analyst II
Contact person:
Michael Newburn, Operations Manager
RESOLUTION NO. 15-___
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
APPOINTING CHRIS FURNISS AS A
PEACE OFFICER
The Board of Directors of the Midpeninsula Regional Open Space District does hereby resolve
as follows:
The following person is hereby designated as a peace officer of the Midpeninsula
Regional Open Space District pursuant to Section 830.31(b) of the Penal Code of
the State of California, to enforce the Midpeninsula Regional Open Space District
Land Use Regulations and those city, county, and state regulations related to the
protection and safe use of District land, enforcement of which is specifically
authorized by the District:
Chris Furniss
* * * * * * * * * * * * * * * * * * * * * *
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space
District on _________, 2015, 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 Interim 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.
Interim District Clerk
RESOLUTION NO. 15-____
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
APPOINTING NATALIE HANNA AS A
PEACE OFFICER
The Board of Directors of the Midpeninsula Regional Open Space District does hereby resolve
as follows:
The following person is hereby designated as a peace officer of the Midpeninsula
Regional Open Space District pursuant to Section 830.31(b) of the Penal Code of
the State of California, to enforce the Midpeninsula Regional Open Space District
Land Use Regulations and those city, county, and state regulations related to the
protection and safe use of District land, enforcement of which is specifically
authorized by the District:
Natalie Hanna
* * * * * * * * * * * * * * * * * * * * * *
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space
District on _________, 2015, 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 Interim 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.
Interim District Clerk
R-15-72
Meeting 15-13
May 13, 2015
AGENDA ITEM 7
AGENDA ITEM
Resolution Approving Documents Relating to Issuance of General Obligation Bonds, Series
2015A
GENERAL MANAGER’S RECOMMENDATION
Adopt a Resolution of the Board of Directors of the Midpeninsula Regional Open Space District
authorizing the issuance and sale of General Obligation Bonds, Series 2015A, approving an
Official Statement, and providing other matters properly related thereto.
SUMMARY
The resolution authorizes the District to issue up to $45 million of General Obligation Bonds,
Series 2015A, and approves the Official Statement, other required legal and sale documents, and
agreements with bond counsel, municipal advisor, and, if needed, underwriter. The objective is
to finance Measure AA capital improvements made in fiscal year 2015 and to be made in fiscal
years 2016-2018. The Board may delegate to the General Manager and the Controller the
decision of whether to sell the General Obligation Bonds, Series 2015A at a competitive sale or
by negotiated sale; the General Manager and the Controller would select the method of sale that
would produce the lowest borrowing cost, after consultation with the District’s municipal advisor
and bond counsel.
DISCUSSION
As specified in Policy 3.06, Initial and Continuing Disclosures Related to Bond Issuances,
adopted on November 25, 2014, this report relates to the proposed issuance of $45 million of
General Obligation Bonds, Series 2015A (2015 Bonds), by the District. The Board is asked to
approve issuance of the 2015 Bonds and all related documents. The current versions of these
documents are attached.
The attached Preliminary Official Statement (POS) has been reviewed and approved for
transmittal to the Board by the District’s Disclosure Working Group. The distribution of the
POS by the District is subject to federal securities laws, including the Securities Act of 1933 and
the Securities Act of 1934. These laws require the POS to include all facts that would be
material to an investor in the 2015 Bonds. Material information is information that there is a
substantial likelihood would have actual significance in the deliberations of the reasonable
investor when deciding to buy or sell the 2015 Bonds. If the Board concludes that the POS
includes all the facts that would be material to an investor in the 2015 Bonds, it must adopt a
resolution that authorizes staff to execute a certificate to the effect that the POS has been
“deemed final.”
R-15-72 Page 2
The Securities and Exchange Commission (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 POS. In its “Report of Investigation in the Matter
of County of Orange, California, 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 2015 Bonds, 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 POS. In the Release, the SEC stated that the steps that a member of the elected body take
include becoming familiar with the POS and questioning staff and consultants about the
disclosure of such facts.
Purpose of Financing. By virtue of the successful Measure AA election in June 2014, the
District is authorized to issue up to $300 million of general obligation (GO) bonds over thirty
years, in order to finance Measure AA capital projects. By law, the amount of tax-exempt GO
bonds which can be sold at this time cannot exceed the sum of [a] the amount reasonably
expected to be spent on Measure AA projects over the next three years and [b] the amount of
Measure AA spending made from the general fund since May 9, 2014, which the Board
previously indicated in its Resolution 14-26 would be eligible for reimbursement from proceeds
of the 2015 Bonds. According to the recently adopted Capital Improvement Plan (CIP), this
totals approximately $60 million. However, a detailed review of the cost and schedule estimates
in the CIP indicates that a 25% discount is reasonable, down to $45 million. When this amount
is fully committed, staff will present the Board with a request for approval of the next tranche of
GO bonds, sized pursuant to the then latest CIP.
Documents for Approval; Security for the 2015 Bonds. The original plan envisioned that the
2015 Bonds would be sold pursuant to a competitive sale process, without the hiring of an
underwriter. However, because some of the 2016-2018 Measure AA projects involve spending
on property that will be leased to third parties, e.g. grazing and horse stable tenants, it may be
necessary to sell a portion of the 2015 Bonds as taxable bonds. Currently, the interest cost of
taxable municipal bonds is only slightly greater than tax-exempt bonds so the economic
difference would likely be tiny. However, should staff and bond counsel, after further detailed
review, decide that some portion of the 2015 Bonds be sold as taxable bonds, then it is advisable
that the District add an underwriter to its team and sell the 2015 Bonds under a negotiated sale
process, as all prior District debt has been sold. If so, the selected underwriter would present a
Purchase Contract for approval. Otherwise, the list below summarizes the documents needing
approval.
[1] Preliminary Official Statement: Explains the 2015 Bonds to prospective buyers.
[2] Fiscal Agent Agreement: The fiscal agent administers the bonds for the benefit of the bond
holders, holds the bond proceeds pending requisition by the District, makes reimbursement to the
District for Measure AA spending, and makes debt service payments. Following a competitive
bid process, the District selected Zions First National Bank as its fiscal agent for the 2015 Bonds.
[3] Municipal Advisor Agreement: Following a competitive bid process, the District selected
Sohail Bengali of BPF Capital LLC to advise the District on the structuring, rating and sale of
the 2015 Bonds. This agreement was executed by the General Manager on February 26, 2015.
R-15-72 Page 3
[4] Official Notice of Sale: This document would be used if 2015 Bonds are sold in a
competitive sale.
As on our recent successful 2015 Refunding Notes, Jones Hall is serving both as Bond Counsel
and Disclosure Counsel for the 2015 Bonds.
Unlike all prior District debt issues, the 2015 Bonds are general obligation bonds of the District,
payable solely from property taxes, which Santa Clara, San Mateo, and Santa Cruz counties are
obligated to levy on all property within the District, each year, in the amount necessary to pay all
principal and interest due on the GO bonds. The District must notify the assessors of each
county of the amount required. The District is currently in the process of soliciting proposals
from consultants to serve as the District’s Dissemination Agent, both to coordinate with the
county assessors and to properly file the annual continuing disclosure documents.
Risks Relating to Repayment and Tax-Exempt Status of the 2015 Bonds. All risks identified by
bond counsel and the Disclosure Working Group are described in the POS. Bond counsel will
issue its opinion confirming the tax-exempt status of the 2015 Bonds, or the tax-exempt portion
if some taxable bonds are required.
Structure and Schedule. The $45 million of 2015 Bonds are proposed to be structured as thirty
year, current interest bonds, with approximately equal annual debt service. The current estimate
for annual debt service is $2.5 million. For the first full tax year, the estimated tax rate is $1.08,
well within the $3.18 commitment.
The District will be seeking bond ratings from Standard & Poor’s and Fitch, which recently rated
our 2015 Refunding Notes at AA and AA+, respectively. It is logical that, with stronger
security, our GO bonds would rate one notch higher. However, there is no AAA- rating and
AAA ratings are tightly held. Fortunately, the economic difference between AAA and AA+ is
miniscule.
The estimated Sources and Uses of the proposed 2015 Bonds, assuming a sale of only tax-
exempt bonds, are shown below. There will be no debt service reserve fund. Because, in the
current market, bond buyers strongly prefer bonds with a high coupon interest rate (e.g. 5%) that
is above the market yield, the 2015 Bonds will be sold at a large premium. If the 2015 Bonds
were sold at this time, Sohail Bengali estimates a true interest cost of approximately 3.8%.
SOURCES:
Bond Proceeds: Par Amount $39,400,000
Bond Proceeds: Original Issue Premium 5,600,000
Total Sources $45,000,000
USES:
Project Fund: New Money $44,830,000
Underwriters Discount 0
Other Cost of Issuance 170,000
Total Uses $45,000,000
If approved by the board, the estimated schedule is to make credit presentations to the rating
agencies on July 9. The schedule skips June because of the vacations of the General Manager
R-15-72 Page 4
and Controller. Credit ratings should be received by July 17. Assuming a competitive sale, the
POS and Notice of Sale would be circulated on July 20. Competitive bids would be received on
July 29, closing documents, including the final official statement would be circulated on August
3 and the proceeds would be received at a closing on August 13.
FISCAL IMPACT
Sale of the proposed $45 million of 2015 Bonds, and related debt service, is included in the fiscal
2016 budget, approved by the Board on March 25, 2015, and is consistent with the District’s
long-term financial plans.
BOARD COMMITTEE REVIEW
The sale of the proposed 2015 Bonds was reviewed by the Budget and Action Plan Committee in
February 2015, as part of its review of the fiscal 2016 budget.
PUBLIC NOTICE
Notice was provided pursuant to the Brown Act. No additional notice is necessary.
CEQA COMPLIANCE
No compliance is required as this action is not a project under CEQA.
NEXT STEPS
If approved by the Board, staff will proceed with finalization of the documentation and sell the
2015 Bonds.
Attachments:
1. Resolution of the Midpeninsula Regional Open Space District Authorizing the
Issuance
2. Preliminary Official Statement
3. Fiscal Agent Agreement
4. Official Notice of Sale
Prepared by:
Michael Foster, Controller
RESOLUTION NO. 15-XX
A RESOLUTION OF THE MIDPENINSULA REGIONAL OPEN SPACE
DISTRICT AUTHORIZING THE ISSUANCE AND SALE OF GENERAL
OBLIGATION BONDS, SERIES 2015, APPROVING A FISCAL AGENT AGREEMENT
AND A PRELIMINARY AND FINAL OFFICIAL STATEMENT, AND APPROVING
RELATED DOCUMENTS AND ACTIONS
WHEREAS, a special bond election was duly and regularly held in the Midpeninsula
Regional Open Space District (the “District”) on June 3, 2014, for the purpose of submitting a
ballot measure to the qualified electors of the District (the "2014 Authorization"), and more than
two-thirds of the votes cast at the election approved the issuance of up to $300 million of general
obligation bonds to finance certain projects specified in the 2014 Authorization; and
WHEREAS, the District is empowered to issue general obligation bonds that are
authorized by two-thirds of the qualified electors of the District pursuant to Article 3
(commencing with Section 5500) of Chapter 3 of Division 5 of the Public Resources Code and
Article 4.5, commencing with Section 53506, of Chapter 3 of Part 1 of Division 2 of Title 5 of
the Government Code of the State of California (collectively, the “Act”); and
WHEREAS, for the purpose of financing the projects authorized by the 2014
Authorization (the “Projects”), the District has determined at this time to issue its General
Obligation Bonds, Series 2015 in the aggregate principal amount of not to exceed $45,000,000
(the “Bonds”) pursuant to the Act; and
WHEREAS, the Bonds will be issued under and pursuant to a Fiscal Agent Agreement
(the “Fiscal Agent Agreement”), between the District and Zions First National Bank, as fiscal
agent (the “Fiscal Agent”); and
WHEREAS, the Board of Directors wishes to delegate to the General Manager and the
Controller the decision of whether to sell the Bonds at a public sale or by negotiated sale to an
underwriter; and
WHEREAS, the Board of Directors wishes to delegate to the General Manager and the
Controller the decision of whether to issue the Bonds as a single series of Bonds, the interest on
which is exempt from federal income taxation (“tax-exempt bonds”), or as two series, with one
series being issued as tax-exempt bonds and the other series being issued with interest that is
subject to federal income taxation (“taxable bonds”); and
WHEREAS, the Board of Directors wishes at this time to take the necessary actions to
approve the issuance and sale of the Bonds and documents and actions relating thereto;
NOW, THEREFORE, BE IT RESOLVED by the Midpeninsula Regional Open Space
District, as follows:
2
Section 1. Issuance of Bonds; Approval of Fiscal Agent Agreement. The Bonds are
hereby authorized to be issued by the District under and subject to the terms of the Act and the
Fiscal Agent Agreement, in the maximum aggregate principal amount of $45,000,000, for the
purpose of financing the Projects and paying certain legal, financial and contingent costs in
connection therewith. The Bonds may be issued as a single series of tax-exempt bonds, or as two
series of Bonds, with one series being tax-exempt bonds and the other series being taxable
bonds. The Bonds shall be issued upon the terms and conditions set forth in the Fiscal Agent
Agreement, and shall be executed as provided in the Fiscal Agent Agreement. The Fiscal Agent
Agreement, in substantially the form on file with the Secretary, is hereby approved. Each of the
President, the Secretary, the General Manager, the Assistant General Manager or the Controller
of the District (each, a “District Officer”), acting alone, is hereby authorized and directed to
make such changes as are necessary to finalize the Fiscal Agent Agreement, including, but not
limited to, providing for the issuance of a series of tax-exempt bonds and a series of taxable
bonds, and to execute and deliver the Fiscal Agent Agreement on behalf of the District. The
execution and delivery of the Fiscal Agent Agreement by a District Officer shall be conclusive
evidence of the approval of any changes or modifications to the form on file with the Secretary.
Section 2. Sale of Bonds. The Board hereby authorizes and directs the General Manager
and the Controller to decide, after consulting with the District’s municipal advisor, BPF Capital
LLC, and bond counsel, Jones Hall, A Professional Law Corporation, whether the District should
sell the Bonds at a public sale or negotiated sale; the General Manager and the Controller shall
select the method of sale that they conclude will result in the lowest borrowing cost for the
District.
The Board hereby approves, in substantially the form presented to this meeting, the
Official Notice of Sale, which would be utilized by the District in connection with a public sale.
Each of the District Officers acting alone, is hereby authorized and directed to distribute the
Official Notice of Sale, with such changes, insertions and omissions as may be approved by a
District Officer, to potential bidders for the Bonds, and to sell the Bonds by competitive sale in
accordance with the terms thereof. Notwithstanding the foregoing, the best conforming bid for
the Bonds will not be accepted if it results in a true interest cost for the Bonds in excess of 5.5%
for a tax-exempt series of Bonds and 6.5% for a taxable series of Bonds.
The District Officers are hereby authorized and directed to publish a notice of intention to
sell the Bonds at a public sale as required by Section 53692 of the California Government Code.
If the General Manager and the Controller decide that the District should sell the Bonds
at a negotiated sale, they are hereby authorized and directed to select a bond underwriter and to
negotiate, execute and deliver on behalf of the District a bond purchase agreement with the bond
underwriter. The execution and delivery of the bond purchase agreement by a District Officer
shall be conclusive evidence of the approval by this Board of Directors of the bond purchase
agreement. If the General Manager and the Controller decide that the District should sell the
Bonds at a negotiated sale, the Board will disclose the identity of the underwriter at the public
meeting first occurring after the underwriter has been selected.
3
Section 3. Official Statement. The Board hereby approves the Preliminary Official
Statement describing the Bonds in substantially the form presented to this meeting. The Board of
Directors hereby authorizes each of the District Officers, acting alone, on behalf of the Board of
Directors, to deem the Preliminary Official Statement near final within the meaning of Rule
15c2-12 of the Securities Exchange Act of 1934, and to execute an appropriate certificate to that
effect. Distribution of the Preliminary Official Statement and the final Official Statement in
connection with the sale of the Bonds is hereby approved. In addition, the District approves the
form of Continuing Disclosure Certificate attached as an Appendix to the Official Statement, and
authorizes and directs each of District Officers, acting alone, to execute said Continuing
Disclosure Certificate.
Section 4. Consultants. In connection with the issuance and sale of the Bonds, the Board
hereby approves the selection of BPF Capital LLC, as municipal advisor to the District, Jones
Hall, A Professional Law Corporation, as bond and disclosure counsel to the District, and Zions
First National Bank, as fiscal agent to the District. Each of the District Officers, acting alone, is
hereby authorized and directed to execute professional services agreements with each such
entity.
Section 5. Execution of Documents; Official Actions. The District Officers, and any and
all other appropriate staff of the District, are authorized and directed in the name and on behalf of
the District to do any and all things and take any and all actions and to execute and deliver any
and all certificates, requisitions, agreements, notices, consents, warrants and other documents,
which they or any of them might deem necessary or appropriate in order to consummate the
lawful issuance, sale and delivery of the Bonds. Whenever in this Resolution any officer of the
District is authorized to execute or countersign any document or take any action, such execution,
countersigning or action may be taken on behalf of such officer by any person designated by
such officer to act on his or her behalf in the case such officer shall be absent or unavailable.
Section 6. Costs of Issuing the Bonds. The estimated costs of issuing the Bonds are
$200,000, which include bond counsel and disclosure counsel fees and costs, municipal advisor
fees and costs, fiscal agent fees and costs, costs of printing the Official Statement, tax consultant
fees and expenses and rating agency fees, but which do not include the underwriter’s
compensation (which will vary depending upon the method of sale selected by the General
Manager and the Controller, but may not exceed 1% of the principal amount of the Bonds
(excluding original issue discount)).
Pursuant to Section 53507.9 of the Government Code, after the sale of the Bonds, the
Board shall do both of the following: (i) present actual cost information for the sale of the Bonds
at its next scheduled public meeting and (ii) cause the District’s bond counsel to submit an
itemized summary of the costs of the Bond sale to the California Debt and Investment Advisory
Commission.
Section 7. Effective Date of Resolution. This Resolution shall take effect from and after
the date of its passage and adoption.
4
* * * * * * * * * * * * * * * * * * * *
ASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open
Space District on May XX, 2015, 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 Interim 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.
Interim District Clerk
OFFICIAL NOTICE OF SALE
Relating to:
$______________*
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
GENERAL OBLIGATION BONDS
SERIES 2015A
Notice is Hereby Given that electronically submitted proposals will be received by the
Midpeninsula Regional Open Space District (the “District”) for the purchase of
$______________* aggregate principal amount of Midpeninsula Regional Open Space District
General Obligation Bonds, Series 2015A (the “Bonds”), which will be issued and delivered
pursuant to a Fiscal Agent Agreement dated as of ____________, 2015 (the “Fiscal Agent
Agreement”) between the District and Zions First National Bank, as fiscal agent (the “Fiscal
Agent”).
Bidders are referred to the Preliminary Official Statement relating to the Bonds (the
"Preliminary Official Statement") for additional information regarding the District, the Bonds, and
the source of repayment therefor. See "Closing Procedures and Documents - Official
Statement" below.
The bids on the Bonds will be received at the place, in the manner and up to the time
and date specified below, subject to postponement or cancellation.
DATE AND TIME: Tuesday, ___________, 2015 at 9:30 A.M.
Pacific Time
ELECTRONIC BIDDING: Bid proposals must be submitted electronically
through i-Deal LLC’s BiDCOMP™/PARITY® as
provided in this Official Notice of Sale (the
"Official Notice of Sale").
ELECTRONIC POSTING: This Official Notice of Sale and the Preliminary
Official Statement may be obtained through
www.i-dealprospectus.com or from
___________, acting as financial advisor to the
District (the "Financial Advisor").
NO SEALED OR FAXED BIDS: Sealed or faxed bids will not be accepted.
*Preliminary; subject to change
Right To Modify or Amend: The District reserves the right to modify or amend this
Official Notice of Sale in any respect; provided, however, that any such modification or
amendment shall be communicated to potential bidders by publishing notice through any of
Thomson Financial, The Bond Buyer wire or the Bloomberg News wire (the "News Service") no
later than 3:00 p.m. Pacific Time on the business day preceding the date prescribed for receipt
ATTACHMENT 2
2
of bids. Failure of any bidder to receive notice of any modification or amendment shall not affect
the sufficiency of any such notice or the legality of the sale.
Cancellation or Postponement of Sale; Change in Principal Amount: The District
reserves the right to cancel or postpone the public sale to a later date or other time or to change
the principal amount by announcing such postponement or change through the News Service,
no later than 3:00 p.m. Pacific Time on the business day preceding the date prescribed for
receipt of bids. Notice of a new time, or of a new date and time, if any, will be given through the
News Service as soon as practicable following a postponement, but in no event less than 24
hours prior to the date and time set for the sale. In the event of a postponement of the sale
only, any subsequent bid submitted by the bidder will supersede any prior bid made.
Accommodation to Bidders. As an accommodation to bidders, telephonic, facsimile or
electronic mail notice of any modification or amendment of this Official Notice of Sale and notice
of cancellation or postponement of the sale date or time will be given by the Financial Advisor to
any bidder requesting such notice, such request for notice to be submitted to _______,
Attention: Sohail Bengali, Telephone ______, Fax: ______, E-mail: sohailbengali@gmail.com.
Failure of any bidder to receive such telephonic, facsimile or electronic mail notice shall not
affect the sufficiency of such notice or the legality of the sale.
Terms of the Bonds
Purpose and Application of Proceeds: The Bonds are being issued to provide the
District with funds for the acquisition and improvement of regional parks, trails and recreation
facilities; the purchase and restoration of open space and wildlife corridors; and acquisition and
development of local parklands by cities and local park and recreation districts.
Interest Rate: Interest on the Bonds is payable on March 1 and September 1 in each
year, commencing March 1, 2016. Interest is calculated on the basis of a 30-day month, 360-
day year from the date of issuance and delivery of the Bonds. Each Bond shall bear interest at
the specified rate from its date of issue to its stated maturity date, and all Bonds maturing on
any one date shall bear the same rate of interest.
Bidders must specify the rate or rates of interest that the Bonds hereby offered for sale
shall bear. Bidders will be permitted to bid different rates of interest; but (i) the maximum
interest rate shall not exceed ______% (ii) each interest rate specified in any bid must be in a
multiple of one-eighth or one-twentieth of one percent per annum and a zero rate of interest
cannot be specified; (iii) no Bond shall bear more than one rate of interest; (iv) each Bond shall
bear interest from its date of issue to its stated maturity date at the interest rate specified in the
bid; (v) all Bonds payable at any one time shall bear the same rate of interest; and (vi) any
premium bid must be paid as part of the purchase price, and no bid will be accepted which
contemplates the cancellation or the waiver of any interest or other concession by the bidder as
a substitute for payment in full of the purchase price.
Purchase Price: Bids for the Bonds shall specify a price of not less than _____% nor
more than _____% of the principal amount of the Bonds.
Maturities: The final aggregate principal amount of the Bonds and the maturity
schedule will be determined following award to the successful bidder. For the purpose of
calculating the winning bid for the Bonds, the maturity schedule set forth below shall be used.
3
Maturity Date
(September 1)
Principal
Amount *
Adjustment of Principal Amounts. Each principal amount listed in the maturity
schedule set forth above is subject to increase or decrease in $5,000 increments. The Financial
Advisor will promptly recalculate the aggregate principal amount of the Bonds following award to
the successful bidder, for the purpose of maintaining certain funding requirements, and the
Financial Advisor will promptly inform the successful bidder of any such adjustment to the
maturity schedule set forth above. Subsequent to the adjustment of principal amounts, the
proposed purchase price will be adjusted to the level necessary to maintain the successful
bidder's proposed Purchaser's spread.
By offering a bid for the Bonds, a bidder will be obligated, if it is the successful
bidder, to purchase the Bonds with any changes described above. The successful
bidder may not withdraw its bid or change its interest rate bids as a result of any
changes made to the principal amounts set forth above.
Term Bonds; Mandatory Sinking Fund Payments: Any bidder may, at its option,
specify that one or more maturities of the Bonds will consist of a term bond payable at or before
its specified maturity date from mandatory sinking fund payments in consecutive years
immediately preceding the maturity date thereof, as designated in the bid of such bidder. If the
bid of the successful bidder specifies that any maturity of the Bonds will be a term bond, such
term bond will be subject to mandatory sinking fund redemption on September 1 in each year so
designated in the bid, in the respective amounts for such year as set forth above under the
*Preliminary, subject to change.
4
heading "Maturities," at a redemption price equal to the principal amount represented thereby,
together with accrued interest thereon to the redemption date, without premium.
Optional Redemption:* The Bonds maturing on or before September 1, _____ are not
subject to redemption prior to their respective maturity dates. Bonds maturing on or after
September 1, _______, shall be subject to redemption prior to their respective maturity dates as
a whole, or in part, on any date, from any moneys provided at the option of the District, in each
case on and after September 1, _____, at a redemption price equal to the principal amount of
Bonds called for redemption, plus accrued interest to the date fixed for redemption, without
premium.
Security: General: The Bonds are general obligation bonds of the District, payable
solely from ad valorem property taxes levied by the District and collected by Santa Clara, San
Mateo and Santa Cruz Counties (the “Counties”). The Boards of Supervisors of the Counties
are empowered and are obligated to annually levy ad valorem taxes for the payment of interest
on, and principal of, the Bonds upon all property subject to taxation by the District, without
limitation of rate or amount (except certain personal property which is taxable at limited rates).
Tax-Exempt Status: In the opinion of Jones Hall, A Professional Law Corporation, San
Francisco, California, bond counsel to the District, interest on the Bonds is excluded from gross
income for federal income tax purposes and is not an item of tax preference for purposes of the
federal individual and corporate alternative minimum taxes. In the event that prior to the
issuance and delivery of the Bonds (a) the interest represented by other obligations of the same
type and character shall be declared to be taxable (either at the time of such declaration or at
any future date) under any federal income tax laws, either by the terms of such laws or by ruling
of a federal income tax authority or official which is followed by the Internal Revenue Service, or
by decision of any federal court, or (b) any federal income tax law is adopted which will have a
substantial adverse effect upon owners of the Bonds as such, the successful bidder for the
Bonds may, at its option, prior to the issuance and delivery of the Bonds, be relieved of its
obligation under the contract to purchase the Bonds, and in such case the deposit
accompanying its proposal will be returned.
Book-Entry Only: The Bonds, when delivered, will be registered in the name of Cede &
Co., as nominee of The Depository Trust Company, New York, New York ("DTC"). DTC will act
as securities depository for the Bonds. Individual purchases will be made in book-entry form
only, in the denominations of $5,000 and integral multiples thereof. Purchasers will not receive
bond certificates representing their interest in the Bonds purchased. Principal and interest are
payable in lawful money of the United States of America and will be paid to DTC, which in turn
will remit such amounts to the beneficial owners of the Bonds through its participants, as
described in the Preliminary Official Statement. Delivery of the Bonds will be made through the
facilities of DTC in New York, New York, or through the facilities of the Fiscal Agent via FAST
transfer, and is presently expected to occur on ___________, 2015.
*Preliminary; subject to change
5
Terms of Sale
Best Bid: The Bonds will be awarded to the bidder offering to purchase the Bonds at
the lowest true interest cost to the District. The true interest cost (the "TIC") for each bid will be
determined on the basis of the aggregate present value of each semiannual payment. The
present value will be calculated to the expected date of delivery of the Bonds, being
___________, 2015, and will be based on the bid amount (par value plus premium). If two or
more bids specify the same lowest TIC, then the selection for the award of the Bonds will be
made among such bidders by the District in its sole discretion. All interest will be computed on
a 360-day year, 30-day month basis from ___________, 2015, the expected date of issuance
and delivery of the Bonds.
By submission of its bid, a bidder shall be deemed to have made the following
representations:
(1) The bidder has received and reviewed the Preliminary Official Statement and, as
a condition to bidding on the Bonds, has determined that it can comply with the requirements of
Rule 15c2-12 of the Securities and Exchange Commission under the Securities Exchange Act
of 1934, as amended.
(2) As of the date of its bid and as of the date of delivery of the Bonds, all members
of the bidder's syndicate either participate in DTC or clear through or maintain a custodial
relationship with an entity that participates in said depository.
Form of Bid: All bids must be for all, but not less than all, of the Bonds offered for sale,
plus such premium as is specified in the bid. All bids must be unconditional. Each bid must be
delivered by electronic transmission as described below and be received by 9:30 a.m., Pacific
Time, on Tuesday, ________________________, 2015, or such other date, time or date and
time as the District may establish upon postponement of the sale of the Bonds pursuant to the
terms and conditions set forth in this Official Notice of Sale. All bids shall be deemed to
incorporate all of the terms of this Official Notice of Sale.
Electronic Bids: The District will receive bids delivered electronically through Parity.
For further information about Parity, potential bidders may contact Parity by telephone at
(212) 849-5021.
If any provision of this Official Notice of Sale conflicts with information provided by Parity,
this Official Notice of Sale shall control. Each bidder submitting an electronic bid understands
and agrees by doing so that it is solely responsible for all arrangements with (including any
charges by) Parity, and that Parity is not acting as an agent of the District. Instructions and
forms for submitting electronic bids must be obtained from Parity. Acceptance of electronic bids
shall be subject to the limitations set forth in "WARNINGS REGARDING ELECTRONIC BIDS"
below.
WARNINGS REGARDING ELECTRONIC BIDS: The District assumes no responsibility
for ensuring or verifying bidder compliance with Parity's procedures. The District shall be
entitled to assume that any bid received via Parity has been made by a duly authorized agent of
the bidder. The District, the Financial Advisor, Bond Counsel and Disclosure Counsel assume
no responsibility for any malfunction of the Parity system, any failure of a bid to be received at
the official time for receipt of bids, or any error contained in any bid submitted electronically.
The official time for receipt of bids will be determined by the District at the place of bid receipt,
6
and the District shall not be required to accept the time kept by Parity as the official time. The
District assumes no responsibility for informing any bidder prior to the deadline for receiving bids
that its bid is incomplete or not received.
If a bidder submits an electronic bid for the Bond s, such bidder thereby agrees to the
following terms and conditions: (i) if any provision in this Official Notice of Sale with respect to
the Bonds conflicts with information or terms provided or required by Parity, this Official Notice
of Sale, including any amendments issued as described herein, shall control; (ii) each bidder
shall be solely responsible for making necessary arrangements to access Parity for purposes of
submitting its bid in a timely manner and in compliance with the requirements of this Official
Notice of Sale; (iii) the District shall not have any duty or obligation to provide or assure access
to Parity to any bidder, and the District shall not be responsible for proper operation of, or have
any liability for, any delays, interruptions or damages caused by use of Parity or any incomplete,
inaccurate or untimely bid submitted by any bidder through Parity; (iv) the District is using Parity
as a communication mechanism, and not as an agent of the District, to conduct the electronic
bidding for the Bonds; (v) Parity is acting as an independent contractor, and is not acting for or
on behalf of the District; (vi) the District is not responsible for ensuring or verifying bidder
compliance with any procedures established by Parity; (vii) the District may regard the electronic
transmission of a bid through Parity (including information regarding the purchase price for the
Bonds and interest rates for any maturity of the Bonds) as though the information were
submitted and executed on the bidder's behalf by a duly authorized signatory; (viii) if the
bidder's bid is accepted by the District, this Official Notice of Sale and the information that is
transmitted electronically through Parity shall form a contract, and the bidder shall be bound by
the terms of such contract; and (ix) information provided by Parity to bidders shall form no part
of any bid or any contract between the successful bidder and the District unless that information
is included in this Official Notice of Sale provided by the District.
Multiple Bids: If multiple bids are received from a single bidder by any means or
combination thereof, the District shall accept the bid representing the lowest true interest cost to
the District, and each bidder agrees by submitting any bid to be bound by such best bid.
Good Faith Deposit: Deposit: A Good Faith Deposit (“Deposit”) in the form of a
certified or cashier's check, a wire transfer, or a bid bond (“Financial Surety Bond”) in the
amount of $________ payable to the order of the District, must be provided by the purchaser of
the Bonds (the “Purchaser”) not later than 10:00 a.m., California time, on the next business day
following the award, as a guaranty that the Purchaser will accept and pay for the Bonds in
accordance with the terms of the bid. If a check is used, it must be drawn on a bank or trust
company having an office in San Francisco or Los Angeles, California. If the Deposit is made
by wire transfer, such wire transfer must be in immediately available funds and to the account at
the wire address specified by the District to the Purchaser. If a Financial Surety Bond is used, it
must be from a pre-qualified insurance company that has a claims paying ability rated in the
highest rating category by Moody's Investors Service or Standard & Poor's and that is licensed
to issue such a bond in the State of California. The form of such Financial Surety Bond is
subject to prior approval by Jones Hall, A Professional Law Corporation, San Francisco,
California, bond counsel, and such form must be submitted to _________, the District's financial
advisor, a minimum of 24 hours prior to the time bids are to be received. Such Financial Surety
Bond must provide that the surety shall make payment of the full amount of the Deposit by wire
transfer to the District within 24 hours of the receipt of written notice from either the District or
the Financial Advisor that the bidder has failed to submit the Deposit as required by this Official
Notice of Sale. The Financial Surety Bond must identify each bidder whose Deposit is
guaranteed by such Financial Surety Bond. If the Bonds are awarded to a bidder utilizing a
7
Financial Surety Bond, then the Purchaser is required to submit its Deposit to the District in the
form of a certified or cashier's check or wire transfer not later than 3:30 p.m., California time, on
the next business day following the award. If such Deposit is not received by that time, the
Financial Surety Bond may be drawn by the District to satisfy the Deposit requirement. The
Deposit will be applied to the purchase price of the Bonds. If after the award of the Bonds the
Purchaser fails to complete its purchase on the terms stated in its proposal, the Deposit will be
retained by the District. No interest on the Deposit will accrue to any bidder.
Statement of True Interest Cost: Each bidder is requested, but not required, to state
in its bid the total percentage true interest cost (TIC), which shall be considered as informative
only and not binding on either the bidder or the District.
Reoffering Price Certification: Upon notification of award of the bid, the successful
bidder for the Bonds shall provide initial offering prices for each maturity of the Bonds. Prior to
delivery of the Bonds, the successful bidder shall provide to the District a reoffering price
certification in form and substance substantially identical to the certificate attached hereto as
Exhibit A.
Qualification for Sale; Blue Sky: Compliance with Blue Sky laws shall be the sole
responsibility of the successful bidder, and the successful bidder shall indemnify and hold
harmless the District and its officers and officials from any loss or damage resulting from any
failure to comply with any such laws. The District will furnish such information and take such
action not inconsistent with law as the successful bidder may request and the District shall
deem necessary or appropriate to qualify the Bonds for offer and sale under the Blue Sky or
other securities laws and regulations of such states and other jurisdictions of the United States
of America as may be designated by the successful bidder; provided, however, that the District
shall not execute a general or special consent to service of process or qualify to do business in
connection with such qualification or determination in any jurisdiction. The successful bidder
will not offer to sell, or solicit any offer to buy, the Bonds in any jurisdiction where it is
unlawful for such successful bidder to make such offer, solicitation or sale, and the
successful bidder shall comply with the Blue Sky and other securities laws and
regulations of the states and jurisdictions in which the successful bidder sells the
Bonds.
Right of Rejection: The District reserves the right, in its discretion, to reject any and all
bids, to waive any irregularity or informality in any bid and to reoffer the Bonds for sale. The
District retains absolute discretion to determine whether any bid is timely. The District takes no
responsibility for informing any bidder prior to the time for receiving bids that its bid is
incomplete or not received.
Prompt Award: The District will take action awarding the Bonds or rejecting all bids not
later than twenty-four (24) hours after the expiration of the time herein prescribed for the receipt
of bids unless such time of award is waived by the successful bidder. Notice of the award will
be given promptly to the successful bidder.
8
Closing Procedures And Documents
Delivery and Payment: DELIVERY OF THE CERTIFICATES WILL BE MADE TO THE
SUCCESSFUL BIDDER THROUGH DTC AND IS EXPECTED TO OCCUR ON ___________,
2015. Payment for the Bonds must be made by wire transfer in immediately available funds.
Any expense of providing immediately available funds, whether by transfer of Federal Reserve
Bank funds or otherwise, shall be borne by the successful bidder. The cost of preparing the
Bonds will be borne by the District.
Right of Cancellation: The successful bidder shall have the right, at the bidder's
option, to cancel the contract of purchase if the District shall fail to issue the Bonds and tender
the same for delivery within sixty (60) days from the date of sale thereof, and in such event the
successful bidder shall be entitled to the return of such bidder's Deposit.
California Debt And Investment Advisory Commission Fee: Attention of bidders is
directed to California Government Code Section 8856, which provides that the lead underwriter
or the purchaser of the Bonds will be charged the California Debt and Investment Advisory
Commission fee payable with respect to the Bonds.
CUSIP Numbers, DTC Fees and Other Fees: It is expected that the successful bidder
will apply for CUSIP identification numbers for the Bonds and will furnish such CUSIP
identification numbers to Bond Counsel within two (2) business days after notice of award. It is
anticipated that such CUSIP identification numbers will be printed on the Bonds being delivered
to DTC, but neither the failure to print a CUSIP identification number nor any error with respect
thereto shall constitute cause for a failure or refusal by the successful bidder to accept delivery
of and pay for the Bonds in accordance with the terms and provisions of its bid and this Official
Notice of Sale. CUSIP Service Bureau charge for the assignment of CUSIP identification
numbers shall be paid by the successful bidder. All expenses in relation to the printing of the
CUSIP identification numbers on the Bonds shall be paid by the District. The successful bidder
shall also be required to pay all fees required by DTC, the Securities Industry and Financial
Markets Association, the Municipal Securities Rulemaking Board and any other similar entity
imposing a fee in connection with the issuance of the Bonds.
No Litigation: There is no litigation pending concerning the validity of the Bonds, the
corporate existence of the District, or the entitlement of the officers thereof to their respective
offices, and the purchaser will be furnished a no-litigation certificate certifying to the foregoing
as of and at the time of delivery of the Bonds.
Legal Opinion - Bond Counsel: The legal opinion of Jones Hall, A Professional Law
Corporation, Bond Counsel to the District, addressed to the District, approving the validity of the
Bonds and opining on the tax-exempt status of the Bonds will be furnished to the successful
bidder upon delivery of the Bonds. A copy of the proposed form of the opinion of Bond Counsel
is set forth in Appendix C of the Preliminary Official Statement.
Legal Opinion - Disclosure Counsel: The legal opinion of Jones Hall, A Professional
Law Corporation, Disclosure Counsel to the District, regarding the Official Statement, will be
furnished to the successful bidder upon delivery of the Bonds.
Official Statement: A Preliminary Official Statement has been prepared, copies of
which may be obtained upon request made to the Financial Advisor, [contact information to
come]. The Preliminary Official Statement is also available at www.i-dealprospectus.com. The
9
Preliminary Official Statement shall be "deemed final" by the District prior to or on the date of
sale of the Bonds for purposes of Securities and Exchange Commission Rule 15c2-12(b)(1), but
the Preliminary Official Statement is subject to revision, amendment and completion in a final
Official Statement. A copy of the certificate executed by the District indicating that the
Preliminary Official Statement has been deemed final as of its date will be provided to potential
bidders upon request to the Financial Advisor at the address provided above. The District will
furnish to the successful bidder, at no expense to the successful bidder, up to 25 copies of the
Official Statement no later than the business day prior to the date of delivery of the Bonds or, if
later, within seven (7) business days of the award date. Additional copies will be made
available upon request, submitted to the Financial Advisor no later than twenty-four (24) hours
after the time of receipt of bids, at the purchaser's expense, for use in connection with any
resale of the Bonds.
Certificate of District Relating to Official Statement: The District will provide to the
successful bidder for the Bonds a certificate, signed by an authorized officer of the District,
confirming to the successful bidder that, as of the date of the final Official Statement, to the best
of such officer's knowledge and belief, the Official Statement (excluding therefrom the
information provided by the successful bidder regarding the underwriting, reoffering and CUSIP
identification numbers for the Bonds, and the information set forth in Appendix F -"DTC and the
Book Entry Only System," such information being hereinafter referred to as the "Excluded
Information") does not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. Such Certificate of the District will
further certify: (i) that there has been no material adverse change in the condition or affairs of
the District, financial or otherwise, whether or not arising from transactions in the ordinary
course of the operations of the District, as such operations are described in the Official
Statement, which would make it unreasonable for such successful bidder to rely upon the
Official Statement in connection with the resale of the Bonds; (ii) that to the best of such officer's
knowledge, excluding therefrom the Excluded Information as to which no certification will be
provided, no event has occurred since the date of the Official Statement which either makes
untrue or incorrect in any material respect as of the date of delivery of the Bonds any statement
of a material fact or is not reflected in the Official Statement but should be reflected therein in
order to make the statements made therein, in the light of the circumstances under which they
were made, not misleading; and (iii) authorizing the successful bidder to distribute copies of the
Official Statement in connection with the resale of the Bonds.
By making a bid for the Bonds, the successful bidder agrees: (i) to disseminate to all
members of the underwriting syndicate, if any, copies of the final Official Statement, including
any supplements prepared by the District; (ii) to promptly file a copy of the final Official
Statement, including any supplements prepared by the District, with the Nationally Recognized
Municipal Securities Information Repositories; and (iii) to take any and all other actions
necessary to comply with applicable Securities and Exchange Commission and Municipal
Securities Rulemaking Board rules governing the offering, sale and delivery of the Bonds to the
ultimate purchasers.
10
Continuing Disclosure: In order to assist bidders in complying with Securities and
Exchange Commission Rule 15c2-12(b)(5) (the "Rule"), the District will undertake, pursuant to a
continuing disclosure undertaking, to provide certain annual financial information relating to the
District and notices of the occurrence of certain enumerated events. A description of this
undertaking is set forth in the Preliminary Official Statement and will also be set forth in the
Official Statement. See "Continuing Disclosure" in the Preliminary Official Statement.
Dated: _________________________, 2015 MIDPENINSULA REGIONAL OPEN SPACE
DISTRICT
By:
Secretary, Board of Directors
A-1
EXHIBIT A
FORM OF REOFFERING PRICE CERTIFICATE *
$______________
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
GENERAL OBLIGATION BONDS
SERIES 2015A
The undersigned, on behalf of _________________________, as purchaser (the
“Purchaser”) of the above-captioned bonds (the “Bonds”), hereby confirms our advice:
(i) Based upon reasonable expectations and actual facts that existed on
_______________, being the date upon which the Midpeninsula Regional Open Space District
(the “Issuer”) sold the Bonds to the Purchaser (the “Sale Date”), the Purchaser reasonably
expected that the first prices at which a substantial amount of each maturity of the Bonds (being
at least 10% of each maturity) would be offered and sold to the general public (excluding bond
houses, brokers or similar persons or organizations acting in the capacity of underwriters or
wholesalers) (the “General Public”) in a bona fide public offering at the prices, or in the case of
obligations sold on a yield basis, at the respective yields set forth in Schedule A attached hereto
and by this reference incorporated herein and shown on the cover or inside cover of the Official
Statement (together the “Initial Offering Prices”).
(ii) The aggregate of the Initial Offering Prices is $____________________.
(iii) The Initial Offering Prices of the Bonds of each maturity (and stated interest rate)
reflected the assessment by the Purchaser of not more than the fair market prices of the Bonds
as of the Sale Date and such offering prices were established by a bona fide public offering by
the Purchaser to the General Public.
(iv) As of the date hereof, 100% of the Bonds of each maturity were actually offered to
the general public in a bona fide public offering for the Initial Offering Prices.
(v) As of the Sale Date, the Purchaser, taking into account market conditions, had
no reason to believe any of the Bonds would be initially sold to the general public at prices
greater than the Initial Offering Prices.
(vii) As of the Sale Date, at least 10% of the principal amount of each maturity of the
Bonds initially was sold at the respective Initial Offering Price for that maturity shown in Exhibit
A except for the Bonds with the following maturities and stated interest rates.
Maturity Rate
Preliminary; subject to change
A-2
The Purchaser understands that Bond Counsel will rely upon this certificate, among
other things, in reaching its conclusion that the Bonds do not constitute “arbitrage bonds” within
the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, provided,
however, that nothing herein represents our interpretation of any laws, and in particular,
regulations under Section 148 of the Internal Revenue Code.
Dated: ________ __, 2015 ,
as Purchaser
By:
Authorized Officer
A-3
SCHEDULE A
Maturity Date
(September 1)
Principal
Amount
Interest
Rate
Reoffering
Price*
*Stated as a Percentage of Par.
FISCAL AGENT AGREEMENT
Between the
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
and
ZIONS FIRST NATIONAL BANK,
as Fiscal Agent
Dated as of _____________, 2015
Relating to
$______________
Midpeninsula Regional Open Space District
General Obligation Bonds
Series 2015A
ATTACHMENT 3
i
TABLE OF CONTENTS
ARTICLE I
DEFINITIONS; AUTHORITY
Section 1.01. Definitions ........................................................................................................................ 2
Section 1.02. Interpretation ................................................................................................................... 8
Section 1.03. Authority for this Agreement ............................................................................................ 8
ARTICLE II
THE BONDS
Section 2.01. Authorization ................................................................................................................... 9
Section 2.02. Terms of Bonds ............................................................................................................... 9
Section 2.03. Redemption. .................................................................................................................. 11
Section 2.04. Form of Bonds ............................................................................................................... 12
Section 2.05. Execution of Bonds ....................................................................................................... 12
Section 2.06. Transfer of Bonds .......................................................................................................... 12
Section 2.07. Exchange of Bonds ....................................................................................................... 13
Section 2.08. Bond Register ................................................................................................................ 13
Section 2.09. Temporary Bonds .......................................................................................................... 13
Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen .................................................................. 13
Section 2.11. Book-Entry; Limited Obligation of District ...................................................................... 14
Section 2.12. Representation Letter .................................................................................................... 14
Section 2.13. Transfers Outside Book-Entry System .......................................................................... 15
Section 2.14. Payments and Notices to the Nominee ......................................................................... 15
ARTICLE III
ISSUE AND SALE OF BONDS; APPLICATION OF PROCEEDS
Section 3.01. Issuance and Delivery of Bonds .................................................................................... 16
Section 3.02. Application of Proceeds of Sale of Bonds ..................................................................... 16
ARTICLE IV
FUNDS AND ACCOUNTS
Section 4.01. Bond Proceeds Fund ..................................................................................................... 17
Section 4.02. Debt Service Fund ......................................................................................................... 18
Section 4.03. Deposit and Investment of Moneys in Funds ................................................................. 19
Section 4.04. Acquisition, Disposition and Valuation of Investments .................................................. 19
ARTICLE V
COVENANTS OF THE DISTRICT
Section 5.01. Punctual Payment ......................................................................................................... 20
Section 5.02. Extension of Time for Payment ..................................................................................... 20
Section 5.03. Protection of Security and Rights of Bondowners ......................................................... 20
Section 5.04. Further Assurances ....................................................................................................... 20
Section 5.05. No Arbitrage .................................................................................................................. 20
Section 5.06. Federal Guarantee Prohibition ...................................................................................... 20
Section 5.07. Private Activity Bond Limitation ..................................................................................... 20
Section 5.08. Rebate Requirement ..................................................................................................... 21
Section 5.09. Maintenance of Tax Exemption ..................................................................................... 21
Section 5.10. Continuing Disclosure ................................................................................................... 21
Section 5.11. Collection of Taxes ........................................................................................................ 21
ii
ARTICLE VI
THE FISCAL AGENT
Section 6.01. Appointment of Fiscal Agent ......................................................................................... 22
Section 6.02. Compensation ............................................................................................................... 22
Section 6.03. Resignation of Fiscal Agent .......................................................................................... 22
Section 6.04. Removal of Fiscal Agent ............................................................................................... 22
Section 6.05. Appointment of Successor Fiscal Agent ....................................................................... 23
Section 6.06. Transfer of Rights and Property to Successor Fiscal Agent ......................................... 23
Section 6.07. Liability of Fiscal Agent .................................................................................................. 23
Section 6.08. Notice to Fiscal Agent ................................................................................................... 24
ARTICLE VII
EVENTS OF DEFAULT AND REMEDIES OF BONDOWNERS
Section 7.01. Events of Default. .......................................................................................................... 26
Section 7.02. Remedies of Bondowners. ............................................................................................ 26
Section 7.03. Non-Waiver. .................................................................................................................. 26
Section 7.04. Remedies Not Exclusive. .............................................................................................. 27
ARTICLE VIII
SUPPLEMENTAL AGREEMENTS
Section 8.01. Supplemental Agreements Effective Without Consent of the Owners .......................... 28
Section 8.02. Supplemental Agreements Effective With Consent to the Owners ............................... 28
Section 8.03. Owners' Meetings. ......................................................................................................... 28
Section 8.04. Procedure for Amendment with Written Consent of Owners. ....................................... 29
Section 8.05. Disqualified Bonds. ........................................................................................................ 29
Section 8.06. Effect of Supplemental Agreement. .............................................................................. 29
Section 8.07. Endorsement or Replacement of Bonds Issued After Amendments. ........................... 30
Section 8.08. Amendatory Endorsement of Bonds. ............................................................................ 30
ARTICLE IX
MISCELLANEOUS
Section 9.01. Benefits of Agreement Limited to Parties ...................................................................... 31
Section 9.02. Defeasance ................................................................................................................... 31
Section 9.03. Execution of Documents and Proof of Ownership by Bondowners .............................. 32
Section 9.04. Waiver of Personal Liability ........................................................................................... 33
Section 9.05. Destruction of Canceled Bonds ..................................................................................... 33
Section 9.06. Partial Invalidity ............................................................................................................. 33
Section 9.07. Unclaimed Moneys. ....................................................................................................... 33
Section 9.08. Notices to and Demands on District and Fiscal Agent. ................................................. 33
Section 9.09. Applicable Law. ............................................................................................................. 34
Section 9.10. Conflict with Act. ............................................................................................................ 34
Section 9.11. Conclusive Evidence of Regularity. ............................................................................... 34
Section 9.12. Payment on Business Day. ........................................................................................... 34
Section 9.13. Counterparts .................................................................................................................. 35
Exhibit A Form of Bond
Exhibit B Form of Account Requisition
1
FISCAL AGENT AGREEMENT
This Fiscal Agent Agreement (this “Agreement”) is made and entered into and dated as
of _____________, 2015, between the Midpeninsula Regional Open Space District, a regional
open space district organized and existing under the laws of the State of California (the
“District”) and ZIONS FIRST NATIONAL BANK, a national banking association duly organized
and existing under the laws of the United States of America, as Fiscal Agent (the “Fiscal Agent”)
W I T N E S S T H:
WHEREAS, a special bond election was duly and regularly held in the Midpeninsula
Regional Open Space District (the “District”) on June 3, 2014, for the purpose of submitting a
ballot measure to the qualified electors of the District (the "2014 Authorization"), and more than
two-thirds of the votes cast at the election approved the issuance of up to $300 million of
general obligation bonds to finance certain projects specified in the 2014 Authorization; and
WHEREAS, the District is empowered to issue general obligation bonds that are
authorized by two-thirds of the qualified electors of the District pursuant to Article 3
(commencing with Section 5500) of Chapter 3 of Division 5 of the Public Resources Code and
Article 4.5, commencing with Section 53506, of Chapter 3 of Part 1 of Division 2 of Title 5 of the
Government Code of the State of California (collectively, the “Act”); and
WHEREAS, for the purpose of financing the projects authorized by the 2014
Authorization (the “Projects”), the District has determined at this time to issue its General
Obligation Bonds, Series 2015A in the aggregate principal amount of not to exceed
$______________ (the “Bonds”) pursuant to the Act; and
WHEREAS, the Board of Directors hereby finds and determines that the issuance of the
Bonds at this time is in the best interest of the residents of the District;
NOW THEREFORE, the District and the Fiscal Agent agree as follows:
2
ARTICLE I
DEFINITIONS; AUTHORITY
Section 1.01. Definitions. The terms defined in this Section 1.01, as used and
capitalized herein, shall, for all purposes of this Agreement, have the meanings ascribed to
them below, unless the context clearly requires some other meaning.
“Act ” means, collectively, Article 3 (commencing with Section 5500) of Chapter 3 of
Division 5 of the Public Resources Code, and Article 4.5, commencing with Section 53506, of
Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California.
“Agreement” means this Fiscal Agent Agreement, as now or hereafter amended in
accordance with its terms.
“Articles, Sections” All references herein to “Articles,” “Sections” and other subdivisions
are to the corresponding Articles, Sections or subdivisions of this Agreement, and the words
“herein,” “hereof,” “hereunder” and other words of similar import refer to this Agreement as a
whole and not to any particular Article, Section or subdivision hereof.
"Beneficial Owner" means any person who has the power, directly or indirectly, to vote
or consent with respect to, or to dispose of ownership of, any Bonds, including persons holding
Bonds through nominees or depositories including, but not limited to, through the Nominee.
“Board” means the Board of Directors of the District.
“Bond Counsel” means Jones Hall, A Professional Law Corporation, and any other
attorney or firm of attorneys nationally recognized as expert in matters pertaining to the legality
and tax exempt status of securities issued by public entities.
“Bond Proceeds Fund” means the fund by that name established by Section 4.01
hereof.
“Bond Service Fund” means the fund by that name established by Section 4.02 hereof.
“Bond Year” means the one-year period beginning on September 2 in each year and
ending on the following September 1, except that the first Bond Year shall begin on the Closing
Date and end on September 1, 2015.
“Bonds” means the bonds of the District designated “Midpeninsula Regional Open
Space District General Obligation Bonds, Series 2015A,” dated the Closing Date, at any time
Outstanding under this Agreement.
“Business Day” means a day that is not a Saturday or Sunday or legal holiday on which
a banking institution in California or any state in which a Principal Office of the Fiscal Agent is
located.
“Capitalized Interest Account” means the account by that name within the Bond
Service Fund established by Section 4.02 hereof.
3
“Chief Financial Officer” means the primary, appointed financial officer of the District.
“Closing Date” means the date upon which there is a physical delivery of the Bonds in
exchange for the amount representing the purchase price of the Bonds by the Underwriter.
“Contractor” means any contractor(s) or vendor(s) from whom the District or any
Participating Entity has ordered or caused to be ordered or with whom the District or any
Participating Entity has contracted or caused to be contracted with respect to the construction of
any Project, or any portion of any Project.
“Continuing Disclosure Certificate” shall mean that certain Continuing Disclosure
Certificate, executed by a District Officer for the District and dated the date of issuance and
delivery of the Bonds, as originally executed and as it may be amended from time to time in
accordance with the terms thereof.
“Costs of Issuance Account” means the account within the Bond Proceeds Fund by
that name established by Section 4.01 hereof.
“Debt Service” means, during any period of computation, the amount obtained for such
period by totaling (a) the principal amount of all Outstanding Bonds coming due and payable by
their terms in such period, and (b) the interest which would be due during such period on the
Bonds which would be Outstanding in such period if the Bonds are retired as scheduled, but
deducting and excluding from such aggregate amount the amount of Bonds no longer
Outstanding.
“Debt Service Fund” means the fund by that name established by Section 4.02 hereof.
“Defeasance Obligations” means any of the following that at the time acquired or made
are legal investments for the District (under applicable State of California laws and the
investment policy of the District) for the moneys held hereunder then proposed to be invested
therein:
(a) cash;
(b) Federal Securities;
(c) Direct obligations of the Treasury which have been stripped by the
Treasury itself, CATS, TIGRS and similar securities;
(d) The interest component of Resolution Funding Corporation strips which
have been stripped by request to the Federal Reserve Bank of New York in book entry
form; and
(e) Bonds, debentures, notes or other evidence of indebtedness issued or
guaranteed by any of the following federal agencies and provided such obligations are
backed by the full faith and credit of the United States of America (stripped securities are
only permitted if they have been stripped by the agency itself): (i) direct obligations or
fully guaranteed certificates of beneficial ownership of the U.S. Export-Import Bank; (ii)
certificates of beneficial ownership of the Rural Economic Community Development
Administration (formerly the Farmers Home Administration); (iii) obligations of the
Federal Financing Bank; (iv) debentures of the Federal Housing Administration; (v)
4
participation certificates of the General Services Administration; (vi) guaranteed Title XI
financings of the U.S. Maritime Administration; and (vii) project notes, local authority
bonds, new communities debentures and U.S. public housing notes and bonds of the
U.S. Department of Housing and Urban Development.
"Depository" means any securities depository appointed to act as Depository under
Section 2.11 hereof.
“District” means the Midpeninsula Regional Open Space District, a regional open space
district duly organized and existing under and pursuant to California law, and having the office of
its Board of Directors in Santa Clara County, California.
“District Officer” means the President of the Board, General Manager, Assistant
General Manager, Controller, Treasurer, General Counsel or the Secretary or any other officer
or person authorized by resolution of the Board of Directors of the District to act on behalf of the
District with respect to this Agreement and the Bonds.
"Event of Default" shall have the meaning assigned to such term in Section 7.01.
“Fair Market Value” means the price at which a willing buyer would purchase the
investment from a willing seller in a bona fide, arm's length transaction (determined as of the
date the contract to purchase or sell the investment becomes binding) if the investment is traded
on an established securities market (within the meaning of section 1273 of the Tax Code) and,
otherwise, the term “Fair Market Value” means the acquisition price in a bona fide arm's length
transaction (as referenced above) if (i) the investment is a certificate of deposit that is acquired
in accordance with applicable regulations under the Tax Code, (ii) the investment is an
agreement with specifically negotiated withdrawal or reinvestment provisions and a specifically
negotiated interest rate (for example, a guaranteed investment contract, a forward supply
contract or other investment agreement) that is acquired in accordance with applicable
regulations under the Tax Code, (iii) the investment is a United States Treasury Security--State
and Local Government Series that is acquired in accordance with applicable regulations of the
United States Bureau of Public Debt, or (iv) any commingled investment fund in which the
District and related parties do not own more than a ten percent (10%) beneficial interest therein
if the return paid by the fund is without regard to the source of the investment.
“Federal Securities” means United States Treasury notes, bonds, bills or certificates of
indebtedness or those for which the faith and credit of the United States are pledged for the
payment of principal and interest.
“Fiscal Agent” means Zions First National Bank, the fiscal or paying agent appointed by
the District for the Bonds, its successors and assigns, and any other corporation or association
which may at any time be substituted in its place, all as provided in this Agreement.
“General Fund” means the general fund of the District.
“Interest Payment Dates” means each March 1 and September 1, commencing on
March 1, 2016.
“Issuance Expenses” means each of the legal and other fees incidental to or connected
with the authorization, issuance and sale of the Bonds, as set forth in the Ordinance, including,
but not limited to, filing and recording costs, settlement costs, printing costs, reproduction and
5
binding costs, legal fees and charges, initial fees and expenses of the Fiscal Agent, financial
and other professional consultant fees, costs of obtaining credit ratings, costs of obtaining bond
insurance, fees for execution, transportation and safekeeping of the Bonds and charges and
fees in connection with the foregoing. For purposes of the Tax Code, the Issuance Expenses
shall constitute “costs of issuance” for the Bonds.
"Nominee" means the nominee of the Depository as determined from time to time in
accordance with Section 2.11.
“Official Notice of Sale” means the Official Notice of Sale dated _______________,
2015 relating to the sale of the Bonds.
“Officer’s Certificate” means a written certificate, order, requisition or statement signed
by a District Officer
“Ordinance” means Ordinance No. 2014-02, adopted by the Board of Directors of the
District on February 26, 2014.
“Original Purchaser” means the first purchaser of the Bonds pursuant to the Official
Notice of Sale.
“Outstanding” means, when used as of any particular time with reference to Bonds, all
Bonds except:
(i) Bonds theretofore canceled by the Fiscal Agent or surrendered to
the Fiscal Agent for cancellation;
(ii) Bonds paid or deemed to have been paid within the meaning of
Section 9.02 hereof; and
(iii) Bonds in lieu of or in substitution for which other Bonds shall have
been authorized, executed, issued and delivered by the District
pursuant to the Agreement.
“Owner or Bondowner” means any person who shall be the registered owner of any
Outstanding Bond.
“Participant” means those broker-dealers, banks and other financial institutions from
time to time for which the Depository holds Bonds as a securities depository.
“Participating Underwriter” shall have the meaning ascribed thereto in the Continuing
Disclosure Certificate.
“Permitted Investments” means any of the following which at the time acquired or
made are legal investments for the District (under applicable State of California laws and the
District’s investment policy) for the moneys held hereunder then proposed to be invested
therein:
(i) Federal Securities;
6
(ii) obligations of any of the following federal agencies, which
obligations represent the full faith and credit of the United States of America:
(A) Export-Import Bank, (B) Farm Credit System Financial Assistance
Corporation, (C) Rural Economic Community Development Administration
(formerly the Farmers Home Administration), (D) General Services
Administration, (E) U.S. Maritime Administration, (F) Small Business
Administration, (G) Government National Mortgage Association (GNMA),
(H) U.S. Department of Housing & Urban Development (PHA’s), (I) Federal
Housing Administration, and (J) Federal Financing Bank;
(iii) direct obligations of any of the following federal agencies which
obligations are not fully guaranteed by the full faith and credit of the United
States of America: (A) senior debt obligations rated Aaa by Moody’s and AAA by
S&P issued by Fannie Mae, the Federal Home Loan Mortgage Corporation
(FHLMC) or the Student Loan Marketing Association (SLMA), (B) obligations of
the Resolution Funding Corporation (REFCORP), (C) senior debt obligations of
the Federal Home Loan Bank System, (D) consolidated systemwide bonds and
notes of the Farm Credit System, and (E) senior debt obligations of other
government-sponsored agencies;
(iv) U.S. dollar denominated deposit accounts, federal funds and
bankers’ acceptances with domestic commercial banks which have a rating on
their short term certificates of deposit on the date of purchase of A-1 or A-1+ by
S&P and P-1 by Moody’s or which are fully insured by FDIC and maturing no
more than 360 days after the date of purchase, provided that a rating on a
holding company is not considered to be the rating of the bank;
(v) commercial paper which is rated at the time of purchase in the
single highest classification, A-1+ by S&P and P-1 by Moody’s and which
matures not more than 270 days after the date of purchase;
(vi) investments in a money market fund registered under the Federal
Investment Company Act of 1940, whose shares are registered under the
Securities Act of 1933, comprised of investments described in clauses (i), (ii) or
(iii) or of repurchase agreements comprised of such investments, and having a
rating of “AAAm-G” or “AAAm” by S&P or “AAA” by Moody's, which fund may
include a fund for which the Fiscal Agent, its affiliates or subsidiaries provide
investment, advisory or other services;
(vii) any bonds or other obligations of any state of the United States of
America or of any agency, instrumentality or local government unit of any such
state which are not callable at the option of the obligor prior to maturity or as to
which irrevocable instructions have been given by the obligor to call on the date
specified in the notice, and (A) which are rated, based on an irrevocable escrow
account or fund (the “escrow”), in the highest rating category of S&P and
Moody’s or any successors thereto; or (B) with the prior written consent of S&P,
which are fully secured as to principal and interest and redemption premiums, if
any, by an escrow consisting only of cash or obligations described in paragraph
(ii) of this definition, above, which escrow may be applied only to the payment of
such principal of and interest and redemption premium, if any, on such bonds or
other obligations on the maturity date or dates thereof or the specified
7
redemption date or dates pursuant to such irrevocable instructions, as
appropriate, and which escrow is sufficient, as verified by a nationally recognized
independent certified public accountant, to pay principal of and interest and
redemption premium, if any, on the bonds or other obligations described in this
paragraph on the maturity date or dates specified in the irrevocable instructions
referred to above, as appropriate;
(viii) municipal obligations with a rating of at least A2/A or higher by
both Moody’s and S&P;
(ix) investment agreements, supported by appropriate opinions of
counsel, with notice to S&P and Moody's;
(x) the Local Agency Investment Fund of the State of California,
created pursuant to 11429.1 of the California Government Code, but only, in the
case of funds held by the Fiscal Agent, to the extent any monies invested by the
Fiscal Agent are subject to deposit and withdrawal solely by the Fiscal Agent;
(xi) obligations with a maximum remaining maturity of not more than
five years issued by any corporation organized and operating within the United
States of America having assets in excess of $500,000,000, which obligations
are rated in one of the two highest rating categories (without regard to numeric or
other modifier) by Moody's and S&P;
(xii) shares in a California common law trust (including the California
Asset Management Program) established pursuant to Title 1, Division 7,
Chapter 5 of the Government Code of the State of California which invests
exclusively in investments permitted by Section 53601 of Title 5, Division 2,
Chapter 4 of the Government Code of the State of California, as it may be
amended; and
(xiii) other forms of investments (including repurchase agreements)
with notice to S&P and Moody's.
"Person" means an individual, corporation, firm, association, partnership, trust or other
legal entity or group of entities, including a governmental entity or any agency or political
subdivision thereof.
“Principal Office” means the corporate trust office of the Fiscal Agent in Los Angeles,
California, or such other office as the Fiscal Agent may from time to time designate.
“Project” means any authorized use of the Bond proceeds pursuant to the Ordinance
and the 2014 Authorization.
“Project Costs” means (i) all eligible costs of the Projects, including, but not limited to
the payment of, or reimbursement for, acquisition, construction, installation and equipment of
any Project including, but not limited to, architect and engineering fees, contractor payments,
costs of feasibility and other reports, inspection costs, performance bond premiums and permit
fees, provided that any such costs are directly related to the acquisition or improvement of real
property, (ii) Issuance Expenses, and (iii) costs directly related to the administration of the funds
and accounts created under this Agreement.
8
“Record Date” means the fifteenth (15th) calendar day of the month preceding each
Interest Payment Date, whether or not such day is a Business Day.
“Project Account” means the Account within the Bond Proceeds Fund by that name
established by Section 4.01 hereof.
“Secretary” means the Secretary of the Board.
“Supplemental Agreement” means any agreement supplemental to or amendatory of
this Agreement, entered into in accordance with Article VIII hereof.
“Tax Code” means the Internal Revenue Code of 1986 as in effect on the date of
issuance of the Bonds or (except as otherwise referenced herein) as it may be amended to
apply to obligations issued on the date of issuance of the Bonds, together with applicable
proposed, temporary and final regulations promulgated, and applicable official public guidance
published, under the Tax Code.
“Treasurer” means the officer of the Board who is an elected member who acts as the
treasurer of the District.
Section 1.02. Interpretation.
(a) Unless the context otherwise indicates, words expressed in the singular shall
include the plural and vice versa and the use of the neuter, masculine, or feminine gender is for
convenience only and shall be deemed to include the neuter, masculine or feminine gender, as
appropriate.
(b) Headings of articles and sections herein and the table of contents hereof are
solely for convenience of reference, do not constitute a part hereof and shall not affect the
meaning, construction or effect hereof.
(c) All references herein to “Articles,” “Sections” and other subdivisions are to the
corresponding Articles, Sections or subdivisions of this Agreement; the words “herein,” “hereof,”
“hereby,” “hereunder” and other words of similar import refer to this Agreement as a whole and
not to any particular Article, Section or subdivision hereof.
Section 1.03. Authority for this Agreement. This Agreement is being entered into
pursuant to the authority set forth in the Act and this Agreement constitutes a continuing
agreement with the Owners of all of the Bonds issued or to be issued hereunder and then
Outstanding to secure the full and final payment of principal of and premiums, if any, and the
interest on all the Bonds pursuant to the provisions of the Act.
9
ARTICLE II
THE BONDS
Section 2.01. Authorization. Bonds in the combined initial aggregate principal amount
of $______________ are hereby authorized to be issued by the District under and subject to the
terms of the Act and which may from time to time be executed and delivered hereunder, subject
to the covenants, agreements, provisions and conditions herein contained. The Bonds shall be
designated as "Midpeninsula Regional Open Space District General Obligation Bonds, Series
2015A", in the initial aggregate principal amount of $______________.
Section 2.02. Terms of Bonds.
(a) Denominations; Numbering. The Bonds shall be issued as fully registered Bonds,
without coupons, in the denomination of $5,000 each or any integral multiple thereof. Bonds
shall be lettered and numbered as the Fiscal Agent shall prescribe.
(b) Date of Bonds. The Bonds shall be dated their date of delivery.
(c) CUSIP Identification Numbers: “CUSIP” identification numbers shall be imprinted
on the Bonds, but such numbers shall not constitute a part of the contract evidenced by the
Bonds and any error or omission with respect thereto shall not constitute cause for refusal of
any purchaser to accept delivery of and pay for the Bonds. In addition, failure on the part of the
District to use such CUSIP numbers in any notice to Owners of the Bonds shall not constitute an
event of default or any violation of the District's contract with such Owners and shall not impair
the effectiveness of any such notice.
(d) Maturities; Interest. The Bonds shall bear interest at the rate or rates set forth
below, payable on each Interest Payment Date, and shall mature and become payable as to
principal on September 1 of the years and in the amounts as set forth below.
10
Maturity Date
(September 1)
Principal
Amount
Interest
Rate
Each Bond shall bear interest from the Interest Payment Date next preceding the date of
registration and authentication thereof unless (i) it is registered and authenticated as of an
Interest Payment Date, in which event it shall bear interest from such date, or (ii) it is registered
and authenticated prior to an Interest Payment Date and after the close of business on the
fifteenth day of the month preceding such Interest Payment Date, in which event it shall bear
interest from such Interest Payment Date, or (iii) it is registered and authenticated on or prior to
February 15, 2016, in which event it shall bear interest from the date of original issuance and
authentication of the Bonds; provided, however, that if at the time of registration and
authentication of a Bond, interest is in default thereon, such Bond shall bear interest from the
Interest Payment Date to which interest has previously been paid or made available for payment
thereon.
Interest on the Bonds shall be calculated on the basis of a 360-day year composed of
twelve 30-day months.
(e) Payment. Interest on the Bonds (including the final interest payment upon
maturity) is payable by check mailed on the applicable Interest Payment Date to the Owner
thereof at his or her address as it appears on the registration books maintained by the Fiscal
Agent at the close of business on each Record Date, or at such other address as the Owner
may have filed with the Fiscal Agent for that purpose; provided that an Owner of $1,000,000 or
more aggregate principal amount of Bonds, or the Owner of all of the Bonds at the time
Outstanding, shall, at his or her option, receive payment of interest by wire transfer to an
account in the United States of America designated by such Owner to the Fiscal Agent no later
than the fifteenth (15) day of the month immediately preceding the applicable Interest Payment
Date. Principal of the Bonds is payable in lawful money of the United States of America at the
Office of the Fiscal Agent.
11
Section 2.03. Redemption.
(a) Optional Redemption. The Bonds maturing on or before September 1, ____ are
not subject to redemption prior to their respective maturity dates. Bonds maturing on or after
September 1, ____, shall be subject to redemption prior to their respective maturity dates as a
whole, or in part, on any date, from any moneys provided at the option of the District, in each
case on and after September 1, ____, at a redemption price equal to the principal amount of
Bonds called for redemption, plus accrued interest to the date fixed for redemption, without
premium.
The District shall provide notice to the Fiscal Agent of any such optional redemption at
least forty-five (45) days (or such lesser number of days acceptable to the Fiscal Agent, in the
sole discretion of the Fiscal Agent) prior to the date set for redemption. In the case of a
redemption in part, a District Officer shall designate to the Fiscal Agent, in writing from a District
Officer, those maturities to be redeemed in whole or in part (including as a maturity, for such
purposes, principal due on the Bonds on a particular September 1 as a result of a scheduled
mandatory sinking fund redemption). In the event a District Officer does not designate the
maturities of the Bonds to be redeemed, the Fiscal Agent shall select Bonds for redemption on a
proportionate basis among maturities. In the event a particular maturity of Bonds is to be
redeemed in part only, the Fiscal Agent shall select the Series Bonds of such maturity to be
redeemed by lot.
(c) Redemption Procedure. Regardless of whether the District has deposited funds
sufficient for any redemption with the Fiscal Agent, the Fiscal Agent shall cause notice of any
redemption to be mailed, first class mail, postage prepaid, at least thirty (30) days but not more
than sixty (60) days prior to the date fixed for redemption, to the respective Owners of any
Bonds designated for redemption, at their addresses appearing on the Bond registration books
maintained by the Fiscal Agent and to the Securities Depositories and to the Municipal
Securities Rulemaking Board as provided in the Continuing Disclosure Certificate; but such
mailing shall not be a condition precedent to such redemption and failure to mail or to receive
any such notice shall not affect the validity of the proceedings for the redemption of such Bonds.
Each notice relating to an optional redemption will further state that such optional redemption
may be rescinded by the District on or prior to the date set for redemption. The Fiscal Agent
shall send any notice of cancellation of an optional redemption in the same manner as it sent
the related notice of redemption.
Such notice shall state the redemption date, the redemption price and the CUSIP
numbers of the Bonds to be redeemed, and, if less than all of the then Outstanding Bonds are to
be called for redemption, shall designate the serial numbers of the Bonds to be redeemed by
giving the individual number of each Bond or by stating that all Bonds between two stated
numbers, both inclusive, or by stating that all of the Bonds of one or more maturities have been
called for redemption, and shall require that such Bonds be then surrendered at the Office of the
Fiscal Agent for redemption at the said redemption price, giving notice also that further interest
on such Bonds will not accrue from and after the redemption date. Any notice of optional
redemption shall also state that it is subject to cancellation on or prior to the date set for
redemption.
Upon surrender of Bonds redeemed in part only, the District shall execute and the Fiscal
Agent shall authenticate and deliver to the Owner, at the expense of the District, a new Bond or
12
Bonds, of the same maturity, of authorized denominations in aggregate principal amount equal
to the unredeemed portion of the Bond or Bonds.
From and after the date fixed for redemption, if notice of such redemption shall have
been duly given and funds available for the payment of the principal of and interest (and
premium, if any) on the Bonds so called for redemption shall have been duly provided, such
Bonds so called shall cease to be entitled to any benefit under this Agreement other than the
right to receive payment of the redemption price, and no interest shall accrue thereon on or after
the redemption date specified in such notice.
All Bonds redeemed pursuant to this Section 2.03 shall be canceled by the Fiscal Agent,
and a certificate of cancellation shall be submitted by the Fiscal Agent to the District.
Section 2.04. Form of Bonds. The Bonds, the form of the Fiscal Agent's certificate of
authentication and registration and the form of assignment to appear thereon shall be
substantially in the form, respectively, with necessary or appropriate variations, omissions and
insertions, as permitted or required by this Agreement, as are set forth in Exhibit A attached
hereto and hereby made a part hereof.
Section 2.05. Execution of Bonds. The Bonds shall be executed on behalf of the
District by the facsimile signatures of its President of the Board and Treasurer and
countersigned by the facsimile of its Secretary who are in office on the date hereof or at any
time thereafter. If any officer whose signature appears on any Bond ceases to be such officer
before delivery of the Bonds to the purchaser, such signature shall nevertheless be as effective
as if the officer had remained in office until the delivery of the Bonds to the purchaser. Any Bond
may be signed and countersigned on behalf of the District by such persons as at the actual date
of the execution of such Bond shall be the proper officers of the District although at the nominal
date of such Bond any such person shall not have been such officer of the District.
Only such Bonds as shall bear thereon a certificate of authentication and registration in
the form set forth in Exhibit A executed and dated by the Fiscal Agent, shall be valid or
obligatory for any purpose or entitled to the benefits of this Agreement, and such certificate of
the Fiscal Agent shall be conclusive evidence that the Bonds so registered have been duly
authenticated, registered and delivered hereunder and are entitled to the benefits of this
Agreement.
Section 2.06. Transfer of Bonds. Any Bond may, in accordance with its terms, be
transferred, upon the books required to be kept pursuant to the provisions of Section 2.08
hereof, by the person in whose name it is registered, in person or by his duly authorized
attorney, upon surrender of such Bond for cancellation at the Principal Office at the Fiscal
Agent, accompanied by delivery of a written instrument of transfer in a form approved by the
Fiscal Agent, duly executed. The District may charge a reasonable sum for each new Bond
issued upon any transfer and the Fiscal Agent shall require the payment by the Owner
requesting such transfer of any tax or other governmental charge required to be paid with
respect to such transfer.
Whenever any Bond or Bonds shall be surrendered for transfer, the District shall execute
and the Fiscal Agent shall authenticate and deliver a new Bond or Bonds of the same series
and maturity, for like aggregate principal amount.
13
The Fiscal Agent is not required to register the transfer of any Bond during the period the
Fiscal Agent is selecting Bonds for redemption or any Bond selected for redemption.
Section 2.07. Exchange of Bonds. Bonds may be exchanged at the Principal Office of
the Fiscal Agent for a like aggregate principal amount of Bonds of authorized denominations
and of the same maturity and series. The District may charge a reasonable sum for each new
Bond issued upon any exchange (except in the case of any exchange of temporary Bonds for
definitive Bonds) and the Fiscal Agent shall require the payment by the Owner requesting such
exchange of any tax or other governmental charge required to be paid with respect to such
exchange.
The Fiscal Agent is not required to register the exchange of any Bond during the period
the Fiscal Agent is selecting Bonds for redemption or any Bond selected for redemption.
Section 2.08. Bond Register. The Fiscal Agent shall keep or cause to be kept
sufficient books for the registration and transfer of the Bonds, which shall at all times be open to
inspection by the District upon reasonable notice; and, upon presentation for such purpose, the
Fiscal Agent shall, under such reasonable regulations as it may prescribe, register or transfer or
cause to be registered or transferred, on said books, Bonds as herein before provided.
Section 2.09. Temporary Bonds. The Bonds may be initially issued in temporary form
exchangeable for definitive Bonds when ready for delivery. The temporary Bonds may be
printed, lithographed or typewritten, shall be of such denominations as may be determined by
the District, and may contain such reference to any of the provisions of this Agreement as may
be appropriate. Every temporary Bond shall be executed by the District upon the same
conditions and in substantially the same manner as the definitive Bonds. If the District issues
temporary Bonds it will execute and furnish definitive Bonds without delay, and thereupon the
temporary Bonds may be surrendered, for cancellation, in exchange therefor at the Principal
Office of the Fiscal Agent and the Fiscal Agent shall deliver in exchange for such temporary
Bonds an equal aggregate principal amount of definitive Bonds of authorized denominations.
Until so exchanged, the temporary Bonds shall be entitled to the same benefits pursuant to this
Agreement as definitive Bonds executed and delivered hereunder.
Section 2.10. Bonds Mutilated, Lost, Destroyed or Stolen. If any Bond shall become
mutilated the District, at the expense of the Owner of such Bond, shall execute, and the Fiscal
Agent shall thereupon authenticate and deliver, a new Bond of like maturity and principal
amount in exchange and substitution for the Bond so mutilated, but only upon surrender to the
Fiscal Agent of the Bond so mutilated. Every mutilated Bond so surrendered to the Fiscal Agent
shall be canceled by it and delivered to, or upon the order of, the District. If any Bond shall be
lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the
District and, if such evidence be satisfactory to the District and indemnity satisfactory to it shall
be given, the District, at the expense of the Owner, shall execute, and the Fiscal Agent shall
thereupon authenticate and deliver, a new Bond of like maturity and principal amount in lieu of
and in substitution for the Bond so lost, destroyed or stolen. The District may require payment of
a sum not exceeding the actual cost of preparing each new Bond issued under this Section and
of the expenses which may be incurred by the District and the Fiscal Agent in the premises. Any
Bond issued under the provisions of this Section 2.10 in lieu of any Bond alleged to be lost,
destroyed or stolen shall constitute an original additional contractual obligation on the part of the
District whether or not the Bond so alleged to be lost, destroyed or stolen be at any time
enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this
Agreement with all other Bonds issued pursuant to this Agreement.
14
Section 2.11. Book-Entry; Limited Obligation of District. The Bonds may be issued
in the form of a separate single fully registered Bond (which may be typewritten) for each
maturity. The ownership of such Bond shall be registered in the registration books kept by the
Fiscal Agent in the name of the Nominee, as nominee of the Depository. The initial Depository
is The Depository Trust Company and the initial Nominee is Cede & Co.
With respect to Bonds registered in the registration books kept by the Fiscal Agent in the
name of the Nominee, the District and the Fiscal Agent shall have no responsibility or obligation
to such Participant or to any Person on behalf of which such a Participant holds an interest in
the Bonds. Without limiting the immediately preceding sentence, the District and the Fiscal
Agent shall have no responsibility or obligation with respect to (i) the accuracy of the records of
the Depository, the Nominee, or any Participant with respect to any ownership interest in the
Bonds, (ii) the delivery to any Participant or any other Person, other than as shown in the
registration books kept by the Fiscal Agent, of any notice with respect to the Bonds or (iii) the
payment to any Participant or any other Person, other than a Nominee as shown in the
registration books kept by the Fiscal Agent, of any principal of, premium, if any, or interest on
the Bonds. The District and the Fiscal Agent may treat and consider the Person in whose name
each Bond is registered in the registration books kept by the Fiscal Agent as the absolute
Owner of such Bond for the purpose of payment of principal of, premium, if any, and interest on
such Bond, for the purpose of giving notices of matters with respect to such Bond, for the
purposes of registering transfers with respect to such Bond, and for all other purposes
whatsoever.
The Fiscal Agent shall pay all principal, premium, if any, and interest with respect to the
Bonds, only to or upon the order of the respective Owners or their respective attorneys duly
authorized in writing, and all such payments shall be valid and effective to fully satisfy and
discharge the District's obligations with respect to payment of principal, premium, if any, and
interest on the Bonds to the extent of the sum or sums so paid. No person other than an Owner
shall receive a Bond evidencing the obligation of the District to make payments of principal,
premium, if any, and interest pursuant to this Fiscal Agent Agreement. Upon delivery by the
Depository to the Nominee, the Fiscal Agent and the District of written notice to the effect that
the Depository has determined to substitute a new nominee in place of the Nominee, and
subject to the provisions regarding the payment of the principal of and interest on the Bonds set
forth in Section 2.02(e), the word Nominee in this Agreement shall refer to such new nominee of
the Depository.
Section 2.12. Representation Letter. In order to qualify the Bonds for the Depository's
book-entry system, the District has executed, or shall execute, and deliver to such Depository a
letter from the District representing such matters as shall be necessary to so qualify the Bonds
(the "Representation Letter"). The execution and delivery of the Representation Letter shall not
in any way limit the provisions of Section 2.11 hereof or in any other way impose upon the
District or the Fiscal Agent any obligation whatsoever with respect to Persons having interests in
the Bonds other than the Owners. In the written acceptance of the Fiscal Agent, such Fiscal
Agent shall agree to take all actions necessary for all representations of the District in the
Representation Letter with respect to the Fiscal Agent to at all times be complied with. In
addition to the execution and delivery of the Representation Letter, the District shall take any
other actions, not inconsistent with this Agreement, to qualify the Bonds for the Depository's
book-entry system.
15
Section 2.13. Transfers Outside Book-Entry System. The District may, by written
request, at any time or for any reason, remove the Depository and appoint a successor or
successors thereto. In the event (i) the Depository determines not to continue to act as
securities depository for the Bonds, or (ii) the District determines that the Depository shall no
longer so act, then the District will discontinue the book-entry system with the Depository. If the
District fails to identify another qualified securities depository to replace the Depository then the
Bonds shall no longer be restricted to being registered in the registration books kept by the
Fiscal Agent in the name of the Nominee, but shall be registered in whatever name or names
Owners of such Bonds transferring or exchanging such Bonds shall designate, in accordance
with the provisions of Section 2.06.
Section 2.14. Payments and Notices to the Nominee. Notwithstanding any other
provision of this Agreement to the contrary, so long as any Bond is registered in the name of the
Nominee, all payments of principal of, premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given, respectively, as provided in the
Representation Letter or as otherwise instructed in writing by the Depository.
16
ARTICLE III
ISSUE AND SALE OF BONDS; APPLICATION OF PROCEEDS
Section 3.01. Issuance and Delivery of Bonds. At any time after the execution of this
Agreement the District may issue and deliver Bonds in the initial aggregate principal amount of
$______________.
A District Officer shall cause the Bonds substantially in the form attached hereto as
Exhibit A to be printed and signed, and to be delivered to the Underwriter through the
Depository on receipt of the purchase price therefor and upon performance of the conditions
contained in the Official Notice of Sale. The District Officers shall take any and all action any of
them deem reasonable in order to enable the District to issue and deliver the Bonds.
The Fiscal Agent shall deliver the Bonds to or upon the order of the Underwriter, upon
receipt of a Written Request of the District.
Section 3.02. Application of Proceeds of Sale of Bonds. Upon the receipt of
payment for the Bonds being $______________ (comprising the par amount of the Bonds, plus
original issue premium of $________________, less the discount of the Original Purchaser of
$________________), the proceeds thereof shall be paid to the Fiscal Agent who shall forthwith
set aside, pay over and deposit such proceeds as follows:
(a) Deposit in the Capitalized Interest Account of the Bond Service Fund the
amount of $_______________, representing a portion of the premium on
the Bonds;
(b) Deposit in the Costs of Issuance Account of the Bond Proceeds Fund
$______________; and
(c) Deposit in the Project Account of the Bond Proceeds Fund an amount
equal to $________________, representing the remainder of the
proceeds of the Bonds.
17
ARTICLE IV
FUNDS AND ACCOUNTS
Section 4.01. Bond Proceeds Fund.
(a) Creation of Fund. There is hereby created a separate fund to be known as the
“Midpeninsula Regional Open Space District General Obligation Bonds 2015A Bond Proceeds
Fund” (the “Bond Proceeds Fund”), and within such fund separate accounts designated the
“Project Account” and the “Costs of Issuance Account”, both of which shall be maintained by the
Fiscal Agent as a separate account, distinct from all other funds and accounts of the District,
into which shall be paid on receipt thereof, the portion of the Bond proceeds designated in
Section 3.02 of this Agreement.
(b) Disbursements. Amounts in the Project Account shall be disbursed for Project
Costs and amounts in the Costs of Issuance Account shall be disbursed for Issuance Expenses.
Disbursements from the Bond Proceeds Fund shall be made by the Fiscal Agent upon receipt of
a certificate requesting disbursement executed or approved by a District Officer along with a
completed W -9 for each payee that has not previously provided a completed W -9. Subject to the
provisions of this Section 4.01, each such certificate shall be in substantially the form set forth in
Exhibit B hereto and shall:
(i) set forth the amounts to be disbursed for payment or reimbursement of
previous payments of Issuance Expenses and/or Project Costs and the person or
persons to whom said amounts are to be disbursed and the Account from which the
disbursement is to be made;
(ii) state that the amounts to be disbursed constitute Issuance Expenses or
Project Costs, that such amounts are required to be disbursed pursuant to a contract
entered into therefor by or on behalf of the District, or were necessarily and reasonably
incurred and that such amounts are not being paid in advance of the time, if any, fixed
for payment; and
(iii) state that no amount set forth in the certificate was included in any
certificate requesting disbursement previously filed with the Fiscal Agent pursuant to this
Section 4.01. It is specifically intended that Issuance Expenses shall be paid out not later
than six months from the date of date of delivery of the Bonds and any amounts
remaining on deposit in the Costs of Issuance Account representing proceeds of the
Bonds shall be transferred to the Capitalized Interest Account and applied to pay interest
on the Bonds.
(c) Certificates. Each certificate requesting disbursement which is submitted
pursuant to subsection (b) and which relates to disbursement for a construction portion of any
Project the contract for which was awarded by the District, shall certify that insofar as such
certificate relates to payment for work, materials, equipment or supplies, such work was actually
performed, or such materials, equipment or supplies were actually installed in furtherance of the
construction of the Project or delivered to the appropriate site for such purpose, or delivered for
storage or fabrication at a place approved by the District.
18
(d) No Liens. Each certificate requesting disbursement which is submitted pursuant
to subsection (b) and which relates to payment to a Contractor shall be accompanied by a
certificate of said Contractor stating that no liens have been imposed on the Project which is the
subject of the contract as a result of said construction except liens that have not yet ripened or
that would attach by operation of law.
(e) Use of Funds Remaining. Amounts, if any, remaining in the Project Account of
the Bond Proceeds Fund on the date of receipt of an Officer’s Certificate certifying, with respect
to any such Project Account, that no further amounts are required to be disbursed for costs and
expenses of any Project shall be transferred by the Fiscal Agent to the Chief Financial Officer
for deposit in the Debt Service Fund to be applied to the payment of principal of any
Outstanding Bonds as the same become due and payable. Amounts, if any, remaining in the
Costs of Issuance Account of the Bond Proceeds Fund six months from the date of date of
delivery of the Bonds shall be transferred by the Fiscal Agent to the Capitalized Interest Account
without further direction.
Section 4.02. Debt Service Fund.
(a) Creation of Fund. There is hereby created a separate fund to be known as the
“Midpeninsula Regional Open Space District General Obligation Bonds, Series 2015A, Debt
Service Fund” (the “Debt Service Fund”), which shall be maintained by the Chief Financial
Officer as a separate fund, distinct from all other funds and accounts of the District.
(b) Payment of Interest. On or before the last day of February and August in each
year the Bonds are Outstanding, commencing in February, 2016, the Chief Financial Officer
shall transfer from the General Fund and set aside in the Debt Service Fund an amount which,
when added to the amount contained in the Debt Service Fund on that date, if any (and the
amount on deposit in the Capitalized Interest Account with respect to the Bonds), will be equal
to the aggregate amount of the interest becoming due and payable on the Outstanding Bonds
on the next succeeding Interest Payment Date.
(c) Payment of Principal. On or before the last day of August in each year the Bonds
are Outstanding, commencing on August 31, 2016, the Chief Financial Officer shall also transfer
from the General Fund and set aside in the Debt Service Fund an amount which, when added to
the amount contained in the Debt Service Fund on that date, if any, and after accounting for any
interest payment also due and payable on the next succeeding September 1 pursuant to
paragraph (a), will be equal to the principal becoming due and payable on the next succeeding
September 1.
(d) Disbursements. All moneys in the Debt Service Fund shall be used and
withdrawn by the Chief Financial Officer solely for the purpose of paying the principal of and
interest on the Bonds as the same shall become due and payable. On the last day of February
and August in each year commencing February 28, 2016, the Chief Financial Officer shall
transfer to the Fiscal Agent for deposit in the Bond Service Fund (which is hereby established
as a separate fund to be held by the Fiscal Agent into which all moneys received by the Fiscal
Agent from the District pursuant to this Section be deposited and which shall be used solely to
pay principal and interest on the Bonds when due) moneys on deposit in the Debt Service Fund
for application by the Fiscal Agent on the next succeeding Interest Payment Date to the
payment of principal of and interest on the Bonds.
19
Within the Bond Service Fund there is hereby established the Capitalized Interest
Account, into which the amount required by Section 3.02(a) shall be deposited. Amounts on
deposit in the Capitalized Interest Account shall be used only to pay interest on the Bonds
through September 1, 2015.
Section 4.03. Deposit and Investment of Moneys in Funds. All moneys held by the
Fiscal Agent in the Bond Proceeds Fund and the Bond Service Fund and not invested pursuant
to the second paragraph of this Section shall be deposited in money market funds meeting the
requirements of clause (vi) of the definition of “Permitted Investments”.
Moneys in the Project Account, the Bond Service Fund and the Costs of Issuance
Account shall be invested by the Fiscal Agent, at the written direction of the Chief Financial
Officer, in Permitted Investments maturing prior to the date on which such moneys are required
to be paid out hereunder. Moneys in the Debt Service Fund shall be invested by the Chief
Financial Officer in Permitted Investments that by their terms mature prior to the date on which
such moneys are required to be paid out hereunder. Obligations purchased as an investment of
moneys in any of such funds and accounts shall at all times be deemed to be part of each such
respective fund and account so invested, and all interest, gain or loss on the investment of
moneys in such respective fund and accounts shall be credited or charged thereto.
The Fiscal Agent or an affiliate may act as principal or agent of the District in the making
or disposing of any investment. Subject to Section 6.07, the Fiscal Agent shall not be
responsible for any loss in the disposing of any investment or any other consequences for
investments made in accordance with this Section.
The District acknowledges that to the extent regulations of the Comptroller of the
Currency or other applicable regulatory entity grant the District the right to receive brokerage
confirmations of security transactions as they occur, the District specifically waives receipt of
such confirmations to the extent permitted by law. The Fiscal Agent will furnish the District
periodic cash transaction statements which shall include detail for all investment transactions
made by the Fiscal Agent hereunder.
Section 4.04. Acquisition, Disposition and Valuation of Investments. The District
covenants that all investments of amounts deposited in any fund or account created by or
pursuant to this Agreement, or otherwise containing gross proceeds of the Bonds (within the
meaning of section 148 of the Tax Code) shall be acquired, disposed of, and valued (as of the
date that valuation is required by this Agreement or the Tax Code) at Fair Market Value.
Investments in funds or accounts (or portions thereof) that are subject to a yield restriction under
applicable provisions of the Code shall be valued at their present value (within the meaning of
section 148 of the Tax Code).
20
ARTICLE V
COVENANTS OF THE DISTRICT
Section 5.01. Punctual Payment. The District will punctually pay, or cause to be paid,
the principal of and interest on the Bonds, in strict conformity with the terms of the Bonds and of
this Agreement, and it will faithfully observe and perform all of the conditions, covenants and
requirements of this Agreement and of the Bonds. Nothing herein contained shall prevent the
District from making advances of its own moneys howsoever derived to any of the uses or
purposes permitted by law.
Section 5.02. Extension of Time for Payment. In order to prevent any accumulation of
claims for interest after maturity, the District will not, directly or indirectly, extend or consent to
the extension of the time for the payment of any claim for interest on any of the Bonds and will
not, directly or indirectly, approve any such arrangement by purchasing or funding said claims
for interest or in any other manner. In case any such claim for interest shall be extended or
funded, whether or not with the consent of the District, such claim for interest so extended or
funded shall not be entitled, in case of default hereunder, to the benefits of this Agreement,
except subject to the prior payment in full of the principal of all of the Bonds then Outstanding
and of all claims for interest which shall not have so extended or funded.
Section 5.03. Protection of Security and Rights of Bondowners. The District will
preserve and protect the security of the Bonds and the rights of the Bondowners, and will
warrant and defend their rights against all claims and demands of all persons. From and after
the sale and delivery of any of the Bonds by the District, the Bonds shall be incontestable by the
District.
Section 5.04. Further Assurances. The District will adopt, make, execute and deliver
any and all such further resolutions, instruments and assurances as may be reasonably
necessary or proper to carry out the intention or to facilitate the performance of this Agreement,
and for the better assuring and confirming unto the Owners of the Bonds of the rights and
benefits provided in this Agreement.
Section 5.05. No Arbitrage. The District shall not take, nor permit nor suffer to be
taken by the Fiscal Agent or otherwise, any action with respect to the proceeds of the Bonds
which, if such action had been reasonably expected to have been taken, or had been
deliberately and intentionally taken, on the date of issuance of the Bonds would have caused
the Bonds to be “arbitrage bonds” within the meaning of section 148 of the Tax Code.
Section 5.06. Federal Guarantee Prohibition. The District shall not take any action or
permit or suffer any action to be taken if the result of the same would be to cause the Bonds to
be “federally guaranteed” within the meaning of section 149(b) of the Tax Code and Regulations
promulgated thereunder.
Section 5.07. Private Activity Bond Limitation. The District shall assure that the
proceeds of the Bonds are not used as to cause the Bonds to satisfy the private business use
tests of section 141 (b) or the private loan financing test of section 141 (c) of the Tax Code as in
effect on the date of issuance of the Bonds or as it may be amended to apply thereafter.
21
Section 5.08. Rebate Requirement. The District shall take any and all actions
necessary to assure compliance with section 148(f) of the Tax Code, relating to rebate of
excess investment earnings, if any, to the federal government.
Section 5.09. Maintenance of Tax Exemption. The District shall take all actions
necessary to assure the exclusion of interest on the Bonds from gross income of the Owners of
the Bonds to the same extent as such interest is permitted to be excluded from gross income
under the Tax Code as in effect on the date of issuance of the Bonds.
Section 5.10. Continuing Disclosure. The District hereby covenants and agrees that it
will comply with and carry out all of the provisions of the Continuing Disclosure Certificates for
the Bonds. Notwithstanding any other provision of this Agreement, failure of the District to
comply with any Continuing Disclosure Certificate shall not be considered an Event of Default;
however, the Fiscal Agent , at the written request of any Participating Underwriter or the Owners
of at least 25% aggregate principal amount of Outstanding Bonds, shall, to the extent
indemnified to its satisfaction from and against any costs, claims, expenses and liabilities
related thereto, including, without limitation, fees and expenses of its attorneys, or any
Bondowner may, take such actions as may be necessary and appropriate, including seeking
mandate or specific performance by court order, to cause the District to comply with its
obligations under this Section.
Section 5.11. Collection of Taxes. At the time of making the general tax levy after the
issuance of the Bonds, and annually thereafter until the Bonds are paid or until there is a sum in
the treasury set apart for that purpose sufficient to meet all payments of principal and interest on
the Bonds as they become due, the Board shall and hereby covenants to cause to be levied and
collected a tax sufficient to pay interest on the Bonds and such part of the principal as will
become due before the proceeds of a tax levied at the next general tax levy will be available. To
this end, the Board covenants with the Owners of the Bonds that it will cause to be levied taxes
upon all taxable property within the District, without limitation as to rate or amount, for the
payment of the Bonds and the interest thereon. All of the proceeds of such taxes shall be
deposited in a special account of the General Fund of the District before the transfer thereof to
the Debt Service Fund.
22
ARTICLE VI
THE FISCAL AGENT
Section 6.01. Appointment of Fiscal Agent. The Fiscal Agent, at its Principal Office is
hereby appointed Fiscal Agent for the Bonds to act as the agent and depository of the District
for the purpose of receiving all moneys required to be paid to the Fiscal Agent hereunder, to
allocate, use and apply the same, to hold, receive and disburse funds held in the Bond
Proceeds Fund, and otherwise to hold all the offices and perform all the functions and duties
provided in this Agreement to be held and performed by the Fiscal Agent. The Fiscal Agent shall
signify its acceptance of the duties and obligations imposed upon it by this Agreement by
executing and delivering to the District a written acceptance thereof; and by executing and
delivering such acceptance, the Fiscal Agent shall be deemed to have accepted such duties
and obligations, but only upon the terms and conditions set forth in this Agreement.
Section 6.02. Compensation. The District shall pay to the Fiscal Agent from time to
time reasonable compensation for all services rendered under this Agreement, and also all
reasonable expenses, charges, counsel fees and other disbursements including those of its
attorneys, agents, and employees, incurred in and about the performance of their powers and
duties under this Agreement and the Fiscal Agent shall have a prior lien therefor on any and all
funds at any time held by it under this Agreement. The District further agrees, to the extent
permitted by law, to indemnify and save the Fiscal Agent, its officers, employees, directors and
agents harmless from and against all costs, claims, expenses or liabilities which it may incur in
the exercise and performance of its powers, functions and duties under this Agreement which
are not due to its own negligence or willful misconduct including but not limited to costs, claims,
liabilities or expenses arising out of, resulting from or in any way connected with (1) any Project
or the conditions, occupancy, use, possession, conduct or management of, or work done in or
about, or from the planning, design, acquisition, installation, operation or construction of any
Project, or any part hereof; (2) the sale of any Bonds and the carrying out of any of the
transactions contemplated by the Bonds and this Agreement; (3) any untrue statement or
alleged untrue statement or any material fact or omission or alleged omission to state a material
fact necessary to make the statements made, in light of the circumstances under which they
were made, not misleading in any official statement or other disclosure document utilized in
connection with the sale of the Bonds. The District further agrees, to the extent permitted by
law, to pay or to reimburse the Fiscal Agent and its officers, directors, employees and agents for
any and all costs, reasonable attorneys fees, liabilities or expenses incurred in connection with
any such liabilities or expenses. The District's obligations in Section 6.02 shall remain valid and
binding notwithstanding maturity and payment (whether by maturity, prepayment, acceleration,
defeasance or otherwise) of the Bonds.
Section 6.03. Resignation of Fiscal Agent. The Fiscal Agent may at any time resign
and be discharged of the duties and obligations created by this Agreement by giving not fewer
than sixty (60) days written notice to the District. Such resignation shall take effect on the date
on which the appointment of a successor Fiscal Agent under Section 6.05 becomes effective.
Section 6.04. Removal of Fiscal Agent. The Fiscal Agent shall be removed by the
District if at any time so requested by an instrument or concurrent instruments, in writing, filed
with the Fiscal Agent and the District, and signed by the Owners of a majority in principal
amount of the Bonds then Outstanding or their attorneys-in-fact duly authorized, excluding any
Bonds held by or for the account of the District. The District may remove the Fiscal Agent at any
23
time, except during the existence of an Event of Default as defined in Section 7.01 hereof, by
filing with the Fiscal Agent an instrument signed by a District Officer. Such removal shall take
effect on the date on which the appointment of a successor Fiscal Agent under Section 6.05
becomes effective.
Section 6.05. Appointment of Successor Fiscal Agent. In case at any time the Fiscal
Agent shall resign or shall be removed or shall become incapable of acting, or shall be adjudged
a bankrupt or insolvent, or if a receiver, liquidator or conservator of the Fiscal Agent, or of its
property or affairs is appointed, the District covenants and agrees that it will thereupon appoint a
successor Fiscal Agent. The District shall mail notice of any such appointment made by it to all
Owners of Bonds, such mailing to be made within twenty (20) days after such appointment.
If in a proper case no appointment of a successor Fiscal Agent shall be made pursuant
to the foregoing provisions of this Section within forty-five (45) days after the Fiscal Agent shall
have given to the District written notice, as provided in Section 6.03, or upon removal as
provided in Section 6.04 after a vacancy in the office of the Fiscal Agent shall have occurred by
reason of its inability to act or other reason set forth in this Section, the Fiscal Agent or the
Owner of any Bond may apply to any court of competent jurisdiction to appoint a successor
Fiscal Agent. Said court may thereupon, after such notice, if any, as such court may deem
proper and prescribe, appoint a successor Fiscal Agent. Any successor Fiscal Agent shall have
a capital and surplus balance aggregating at least fifty million dollars ($50,000,000).
Section 6.06. Transfer of Rights and Property to Successor Fiscal Agent. Any
successor Fiscal Agent appointed under this Agreement shall execute, acknowledge and deliver
to its predecessor Fiscal Agent, and also to the District, an instrument accepting such
appointment, and thereupon such successor Fiscal Agent, without any further act, deed or
reconveyance, shall become fully vested with all moneys, estates, properties, rights, powers,
duties and obligations of such predecessor Fiscal Agent, with like effect as if originally named
as Fiscal Agent; but the Fiscal Agent ceasing to act shall nevertheless, on the written request of
the District, or of the successor Fiscal Agent, execute, acknowledge and deliver such
instruments of conveyance and further assurance and do such other things as may reasonably
be required for more fully and certainly vesting and confirming in such successor Fiscal Agent
all right, title and interest of the predecessor Fiscal Agent in and to any property held by it under
this Agreement, and shall pay over, assign and deliver to the successor Fiscal Agent any money
or other property subject to the trusts and conditions herein set forth. Should any deed,
conveyance or instrument in writing from the District be required by such successor Fiscal
Agent for more fully and certainly vesting in and confirming to such successor Fiscal Agent any
estates, rights, powers and duties, any and all such deed, conveyances and instruments in
writing shall, on request, and so far as may be authorized by law be executed, acknowledged
and delivered by the District.
Any corporation into which the Fiscal Agent may be merged or converted or with which it
may be consolidated, or any corporation resulting from any merger, conversion or consolidation
to which the Fiscal Agent shall be a party, or any corporation succeeding to all or substantially
all the corporate trust business of the Fiscal Agent, shall be the successor of the Fiscal Agent
hereunder, provided such corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of any of the parties
hereto.
Section 6.07. Liability of Fiscal Agent. The recitals of facts, covenants and
agreements herein and in the Bonds contained shall be taken as statements, covenants and
24
agreements of the District, and the Fiscal Agent assumes no responsibility for the correctness of
the same, or makes any representations as to the validity or sufficiency of this Agreement, or of
the Bonds, or shall incur any responsibility in respect thereof, other than in connection with the
duties or obligations herein or in the Bonds assigned to or imposed upon it. The Fiscal Agent
shall not be liable in connection with the performance of its duties hereunder, except for its own
negligence or willful misconduct.
The Fiscal Agent shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Owners of not less than a
majority of aggregate principal amount of the Bonds at the time Outstanding relating to the time,
method and place of conducting any proceeding for any remedy available to the Fiscal Agent or
the Bondowners, or exercising any power conferred upon the Fiscal Agent under this
Agreement.
The permissive right of the Fiscal Agent to do things or omit to do things under this
Agreement shall not be construed as a duty.
The Fiscal Agent shall not be liable for any error of judgment made in good faith by a
responsible officer, unless it shall be proved that the Fiscal Agent was negligent in ascertaining
the pertinent facts. The Fiscal Agent shall not be liable for any action taken by it in good faith
and believed by it to be authorized or within the discretion or rights or powers conferred upon it
by this Agreement.
Except as otherwise provided herein, the Fiscal Agent shall not be required to ascertain
or inquire as to the performance or observance of any of the terms, conditions, covenants or
agreements herein, or in any of such agreements, documents or certificates executed in
connection with the Bonds, or as to the existence of an Event of Default hereunder of
thereunder. The Fiscal Agent shall not be deemed to have notice of any event of default
hereunder or in any such document or certificate until it shall have actual knowledge thereof, or
shall have received written notice thereof at its Principal Office. The Fiscal Agent shall not be
responsible for the validity of any collateral given to or held by it.
The Fiscal Agent has no obligation or liability to the Bondowners for the payment of
interest or principal with respect to the Bonds; but rather the Fiscal Agent's sole obligations are
to administer, for the benefit of the District and the Bondowners, the various funds and accounts
established in the Agreement and to perform the other duties expressly provided for herein.
The Fiscal Agent shall have no responsibility for or liability in connection with assuring
that all of the procedures or conditions to closing set forth herein have been met on the Closing
Date or, that all documents required to be delivered on the Closing Date to the parties are
actually delivered, except its own responsibility to receive the Bond proceeds and other sums
required to be delivered to it and to authenticate and deliver the Bonds and other certificates
expressly required to be delivered by it and its counsel. The Fiscal Agent may assume that the
District and the Underwriter have waived their rights to receive documents or to require the
performance of procedures if the parties to whom such documents are to be delivered or for
whom such procedures are to be performed do not require delivery or performance on or prior
to the Closing Date.
Section 6.08. Notice to Fiscal Agent. The Fiscal Agent shall be protected in acting
upon any notice, resolution, request, consent, order, certificate, report, warrant, Bond or other
paper or document believed by it to be genuine and to have been signed or presented by the
25
proper party or proper parties. The Fiscal Agent may consult with counsel, who may be of
counsel to the District, with regard to legal questions, and the opinion of such counsel shall be
full and complete authorization and protection in respect of any action taken or suffered by it
hereunder in good faith and in accordance therewith.
The Fiscal Agent shall not be bound to recognize any person as the Owner of a Bond
unless and until such Bond is submitted for inspection, if required, and the Owner's title thereto
satisfactorily established, if disputed.
Whenever in the administration of its duties under this Agreement the Fiscal Agent shall
deem it necessary or desirable that a matter be proved or established prior to taking or suffering
any action hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of bad faith on the part of the Fiscal Agent, be
deemed to be conclusively proved and established by a written certificate signed by a District
Officer and such certificate shall be full warrant to the Fiscal Agent for any action taken or
suffered under the provisions of this Agreement or any Supplemental Agreement upon the faith
thereof, but in its discretion the Fiscal Agent may, in lieu thereof, accept other evidence of such
matter or may require such additional evidence as to it may seem reasonable.
26
ARTICLE VII
EVENTS OF DEFAULT AND REMEDIES OF BONDOWNERS
Section 7.01. Events of Default. The following shall constitute Events of Default under
this Agreement:
(a) if default shall be made by the District in the due and punctual
payment of the principal of any Bond when and as the same shall become due
and payable, whether at maturity as therein expressed or by declaration or
otherwise; and
(b) if default shall be made by the District in the due and punctual
payment of any installment of interest on any Bond when and as such interest
installment shall become due and payable.
Section 7.02. Remedies of Bondowners. Upon the occurrence of an Event of Default,
any Bondowner shall have the right, for the equal benefit and protection of all Bondowners
similarly situated:
(a) by mandamus, suit, action or proceeding, to compel the District
and its members, officers, agents or employees to perform each and every term,
provision and covenant contained in this Agreement and in the Bonds, and to
require the carrying out of any or all such covenants and agreements of the
District and the fulfillment of all duties imposed upon it; or
(b) by suit, action or proceeding in equity, to enjoin any acts or things
which are unlawful, or the violation of any of the Bondowners' rights.
Section 7.03. Non-Waiver. Nothing in this Article VII or in any other provision of this
Agreement, or in the Bonds, shall affect or impair the obligation of the District, which is absolute
and unconditional, to pay the principal of and interest on the Bonds to the respective Owners of
the Bonds at the respective dates of maturity, as herein provided, or affect or impair the right of
action, which is also absolute and unconditional, of such Owners to institute suit to enforce such
payment by virtue of the contract embodied in the Bonds.
A waiver of any default by any Bondowner shall not affect any subsequent default or
impair any rights or remedies on the subsequent default. No delay or omission of any Owner of
any of the Bonds to exercise any right or power accruing upon any default shall impair any such
right or power or shall be construed to be a waiver of any such default or an acquiescence
therein, and every power and remedy conferred upon the Bondowners by this Article VII may be
enforced and exercised from time to time and as often as shall be deemed expedient by the
Owners of the Bonds.
If a suit, action or proceeding to enforce any right or exercise any remedy be abandoned
or determined adversely to the Bondowners, the District and the Bondowners shall be restored
to their former positions, rights and remedies as if such suit, action or proceeding had not been
brought or taken.
27
Section 7.04. Remedies Not Exclusive. No remedy herein conferred upon the
Owners of Bonds shall be exclusive of any other remedy and that each and every remedy shall
be cumulative and shall be in addition to every other remedy given hereunder or thereafter
conferred on the Bondowners.
28
ARTICLE VIII
SUPPLEMENTAL AGREEMENTS
Section 8.01. Supplemental Agreements Effective Without Consent of the Owners.
For any one or more of the following purposes and at any time or from time to time, the District
may enter into a Supplemental Agreement, which, without the requirement of consent of the
Owners of the Bonds, shall be fully effective in accordance with its terms:
(a) To add to the covenants and agreements of the District in this
Agreement, other covenants and agreements to be observed by the District
which are not contrary to or inconsistent with this Agreement as theretofore in
effect;
(b) To add to the limitations and restrictions in this Agreement, other
limitations and restrictions to be observed by the District which are not contrary to
or inconsistent with this Agreement as theretofore in effect;
(c) To confirm, as further assurance, any pledge under, and the
subjection to any lien or pledge created or to be created by, this Agreement, of
any moneys, securities or funds, or to establish any additional funds or accounts
to be held under this Agreement;
(d) To cure any ambiguity, supply and omission, or cure or correct
any defect or inconsistent provision in this Agreement; or
(e) To make such additions, deletions or modifications as may be
necessary to assure compliance with section 148(f) of the Tax Code relating to
required rebate of any amounts to the United States or otherwise as may be
necessary to assure exemption from federal income taxation of interest on the
Bonds.
Section 8.02. Supplemental Agreements Effective With Consent of the Owners.
Any modification or amendment of this Agreement and of the rights and obligations of the
District and of the Owners of the Bonds, in any particular, may be made by a Supplemental
Agreement, with the written consent of the Owners of at least a majority in aggregate principal
amount of the Bonds Outstanding at the time such consent is given. No such modification or
amendment shall permit a change in the terms of maturity of the principal of any Outstanding
Bonds or of any interest payable thereon or a reduction in the principal amount thereof or in the
rate of interest thereon, or shall reduce the percentage of Bonds the consent of the Owners of
which is required to effect any such modification or amendment, or shall change any of the
provisions in Section 7.01 hereof relating to Events of Default, or shall reduce the amount of
moneys pledged for the repayment of the Bonds without the consent of all the Owners of such
Bonds, or shall change or modify any of the rights or obligations of any Fiscal Agent without its
written assent thereto.
Section 8.03. Owners' Meetings. The District may at any time call a meeting of the
Owners. In such event the District is authorized to fix the time and place of said meeting and to
provide for the giving of notice thereof, and to fix and adopt rules and regulations for the conduct
of said meeting.
29
Section 8.04. Procedure for Amendment with Written Consent of Owners. The
District and the Fiscal Agent may at any time adopt a Supplemental Agreement amending the
provisions of the Bonds or of this Agreement or any Supplemental Agreement, to the extent that
such amendment is permitted by Section 8.01, to take effect when and as provided in this
Section. A copy of such Supplemental Agreement, together with a request to Owners for their
consent thereto, shall be mailed by first class mail, by the Fiscal Agent to each Owner of Bonds
Outstanding, but failure to mail copies of such Supplemental Agreement and request shall not
affect the validity of the Supplemental Agreement when assented to as in this Section provided.
Such Supplemental Agreement shall not become effective unless there shall be filed
with the Fiscal Agent the written consents of the Owners of at least a majority in aggregate
principal amount of the Bonds then Outstanding (exclusive of Bonds disqualified as provided in
Section 8.04) and a notice shall have been mailed as hereinafter in this Section provided. Each
such consent shall be effective only if accompanied by proof of ownership of the Bonds for
which such consent is given, which proof shall be such as is permitted by Section 9.04. Any
such consent shall be binding upon the Owner of the Bonds giving such consent and on any
subsequent Owner (whether or not such subsequent Owner has notice thereof) unless such
consent is revoked in writing by the Owner giving such consent or a subsequent Owner by filing
such revocation with the Fiscal Agent prior to the date when the notice hereinafter in this
Section provided for has been mailed.
After the Owners of the required percentage of Bonds shall have filed their consents to
the Supplemental Agreement, the District shall mail a notice to the Owners in the manner
hereinbefore provided in this Section for the mailing of the Supplemental Agreement, stating in
substance that the Supplemental Agreement has been consented to by the Owners of the
required percentage of Bonds and will be effective as provided in this Section (but failure to mail
copies of said notice shall not affect the validity of the Supplemental Agreement or consents
thereto). Proof of the mailing of such notice shall be filed with the Fiscal Agent. A record,
consisting of the papers required by this Section 8.04 to be filed with the Fiscal Agent, shall be
proof of the matters therein stated until the contrary is proved. The Supplemental Agreement
shall become effective upon the filing with the Fiscal Agent of the proof of mailing of such notice,
and the Supplemental Agreement shall be deemed conclusively binding (except as otherwise
hereinabove specifically provided in this Article) upon the District and the Owners of all Bonds at
the expiration of sixty (60) days after such filing, except in the event of a final decree of a court
of competent jurisdiction setting aside such consent in a legal action or equitable proceeding for
such purpose commenced within such sixty-day period.
Section 8.05. Disqualified Bonds. Bonds owned or held for the account of the District,
excepting any pension or retirement fund, shall not be deemed Outstanding for the purpose of
any vote, consent or other action or any calculation of Outstanding Bonds provided for in this
Article VIII, and shall not be entitled to vote upon, consent to, or take any other action provided
for in this Article VIII.
Section 8.06. Effect of Supplemental Agreement. From and after the time any
Supplemental Agreement becomes effective pursuant to this Article VIII, this Agreement shall
be deemed to be modified and amended in accordance therewith, the respective rights, duties
and obligations under this Agreement of the District and all owners of Bonds Outstanding shall
thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such Supplemental
30
Agreement shall be deemed to be part of the terms and conditions of this Agreement for any
and all purposes.
Section 8.07. Endorsement or Replacement of Bonds Issued After Amendments.
The District may determine that Bonds issued and delivered after the effective date of any
action taken as provided in this Article VIII shall bear a notation, by endorsement or otherwise,
in form approved by the District, as to such action. In that case, upon demand of the Owner of
any Bond Outstanding at such effective date and presentation of his Bond for that purpose at
the Office of the Fiscal Agent or at such other office as the District may select and designate for
that purpose, a suitable notation shall be made on such Bond. The District may determine that
new Bonds, so modified as in the opinion of the District is necessary to conform to such Owners'
action, shall be prepared, executed and delivered. In that case, upon demand of the Owner of
any Bonds then Outstanding, such new Bonds shall be exchanged at the Office of the Fiscal
Agent without cost to any Owner, for Bonds then Outstanding, upon surrender of such Bonds.
Section 8.08. Amendatory Endorsement of Bonds. The provisions of this Article VIII
shall not prevent any Owner from accepting any amendment as to the particular Bonds held by
him or her.
31
ARTICLE IX
MISCELLANEOUS
Section 9.01. Benefits of Agreement Limited to Parties. Nothing in this Agreement,
expressed or implied, is intended to give to any person other than the District, the Fiscal Agent
and the Owners of the Bonds, any right, remedy, claim under or by reason of this Agreement.
Any covenants, stipulations, promises or agreements in this Agreement contained by and on
behalf of the District shall be for the sole and exclusive benefit of the Owners of the Bonds.
Section 9.02. Defeasance.
(a) Discharge of Agreement. Bonds may be paid by the District in any of the
following ways, provided that the District also pays or causes to be paid any other sums payable
hereunder by the District:
(i) by paying or causing to be paid the principal of and interest on
Bonds Outstanding, as and when the same become due and
payable;
(ii) by depositing, at or before maturity, money or securities in the
necessary amount (as provided in Section 9.02(c) to pay Bonds
Outstanding; or
(iii) by delivering to the Fiscal Agent, for cancellation by it, Bonds
Outstanding.
If the District shall pay all Bonds Outstanding and shall also pay or cause to be paid all
other sums payable hereunder by the District, then and in that case, at the election of the
District (evidenced by a certificate of a District Officer, filed with the Fiscal Agent, signifying the
intention of the District to discharge all such indebtedness and this Agreement), and
notwithstanding that any Bonds shall not have been surrendered for payment, this Agreement
and all covenants, agreements and other obligations of the District under this Agreement shall
cease, terminate, become void and be completely discharged and satisfied, except only as
provided in Section 9.02(b) and the obligation of the District to assure that no action is taken or
is found to be taken that would adversely affect the exclusion of interest on the Bonds from
gross income and the Tax Code. In such event, upon request of the District, the Fiscal Agent
shall cause an accounting for such period or periods as may be requested by the District to be
prepared and filed with the District and shall execute and deliver to the District all such
instruments as may be necessary to evidence such discharge and satisfaction, and the Fiscal
Agent shall pay over, transfer, assign or deliver to the District all moneys or securities or other
property held by it pursuant to this Agreement which are not required for the payment of Bonds
not theretofore surrendered for such payment.
(b) Discharge of Liability on Bonds. Upon the deposit at or before maturity, of money
or securities in the necessary amount (as provided in Section 9.02(c) to pay any Outstanding
Bond upon its maturity, then all liability of the District in respect of such Bond shall cease and be
completely discharged, except only that thereafter the Owner thereof shall be entitled only to
payment of the principal of and interest on such Bond by the District, and the District shall
remain liable for such payment, but only out of such money or securities deposited with the
32
Fiscal Agent or an escrow holder as aforesaid for such payment, provided further, however, that
the provisions of Section 9.02(d) shall apply in all events.
The District may at any time surrender to the Fiscal Agent for cancellation by it any
Bonds previously issued and delivered, which the District may have acquired in any manner
whatsoever, and such Bonds, upon such surrender and cancellation, shall be deemed to be
paid and retired.
(c) Deposit of Money or Securities with Fiscal Agent. Whenever in this Agreement it
is provided or permitted that there be deposited with or held by the Fiscal Agent or an escrow
holder money or securities in the necessary amount to pay any Bonds, the money or securities
so to be deposited or held may include money or securities held by the Fiscal Agent in the funds
and accounts established pursuant to this Agreement and shall be:
(i) lawful money of the United States of America in an amount equal to the
principal amount of such Bonds and all unpaid interest thereon to maturity; or
(ii) Defeasance Obligations (not callable by the issuer thereof prior to
maturity) the principal of and interest on which when due, in the opinion of a certified
public accountant delivered to the District, will provide money sufficient to pay the
principal of and all unpaid interest to maturity on the Bonds to be paid, as such principal
and interest become due;
provided, in each case, that the Fiscal Agent shall have been irrevocably instructed (by the
terms of this Agreement or by request of the District) to apply such money to the payment of
such principal and interest with respect to such Bonds.
(d) Payment of Bonds After Discharge of Agreement. Notwithstanding any provisions
of this Agreement, any moneys held by the Fiscal Agent for the payment of the principal or
redemption price of, or interest on, any Bonds and remaining unclaimed for two years after the
principal of all of the Bonds has become due and payable (whether at maturity or upon call for
redemption or by acceleration as provided in this Agreement), if such moneys were so held at
such date, or two years after the date of deposit of such moneys if deposited after said date
when all of the Bonds became due and payable, shall be repaid to the District outright, and all
liability of the Fiscal Agent with respect to such moneys shall thereupon cease.
Section 9.03. Execution of Documents and Proof of Ownership by Bondowners.
Any request, declaration or other instrument which this Agreement may require or permit to be
executed by Bondowners may be in one or more instruments of similar tenor, and shall be
executed by Bondowners in person or by their attorneys appointed in writing.
Except as otherwise herein expressly provided, the fact and date of the execution by any
Bondowner or his attorney of such request, declaration or other instrument, or of such writing
appointing such attorney, may be proved by the certificate of any notary public or other officer
authorized to take acknowledgments of deeds to be recorded in the state in which he purports
to act, that the person signing such request, declaration or other instrument or writing
acknowledged to him the execution thereof, or by an affidavit of a witness of such execution,
duly sworn to before such notary public or other officer.
33
Except as otherwise herein expressly provided, the ownership of registered Bonds and
the amount, maturity, number and date of holding the same shall be proved by the registry
books.
Any request, declaration or other instrument or writing of the Owner of any Bond shall
bind all future Owners of such Bond in respect of anything done or suffered to be done by the
District, the Fiscal Agent or the Chief Financial Officer in good faith and in accordance therewith.
Section 9.04. Waiver of Personal Liability. No Boardmember, District Officer, agent or
employee of the District shall be individually or personally liable for the payment of the principal
of or interest on the Bonds; but nothing herein contained shall relieve any such Boardmember,
District Officer, agent or employee from the performance of any official duly provided by law.
Section 9.05. Destruction of Canceled Bonds. Whenever in this Agreement provision
is made for the surrender to the District of any Bonds which have been paid or canceled
pursuant to the provisions of this Agreement, a certificate of destruction duly executed by the
Fiscal Agent shall be deemed to be the equivalent of the surrender of such canceled Bonds and
the District shall be entitled to rely upon any statement of fact contained in any certificate with
respect to the destruction of any such Bonds therein referred to.
Section 9.06. Partial Invalidity. If any Section, paragraph, sentence, clause or phrase
of this Agreement shall for any reason be held illegal or unenforceable, such holding shall not
affect the validity of the remaining portions of this Agreement. The District hereby declares that
it would have adopted this Agreement and each and every other Section, paragraph, sentence,
clause or phrase hereof and authorized the issue of the Bonds pursuant thereto irrespective of
the fact that any one or more Sections, paragraphs, sentences, clauses, or phrases of this
Agreement may be held illegal, invalid or unenforceable. If, by reason of the judgment of any
court, the District is rendered unable to perform its duties hereunder, all such duties and all of
the rights and powers of the District hereunder shall be assumed by and vest in the Fiscal Agent
in trust for the benefit of the Bondowners.
Section 9.07. Unclaimed Moneys. Subject at all times to applicable unclaimed
property law and anything contained herein to the contrary notwithstanding, any moneys held by
the Fiscal Agent for the payment and discharge of the principal of, and the interest on, the
Bonds which remains unclaimed for two (2) years after the date when the payments of such
principal and interest have become payable, if such moneys was held by the Fiscal Agent at
such date, shall be repaid by the Fiscal Agent to the District as its absolute property, and the
Fiscal Agent shall thereupon be released and discharged with respect thereto and the Owners
shall look only to the District for the payment of the principal of, and interest on, such Bonds.
Section 9.08. Notices to and Demands on District and Fiscal Agent. Any notice or
demand which by any provision of this Agreement is required or permitted to be given or served
by the Fiscal Agent to or on the District may be given or served by being deposited postage
prepaid in a post office letter box addressed (until another address is filed by the District with the
Fiscal Agent) or by facsimile to:
Chief Financial Officer
Midpeninsula Regional Open Space District
330 Distel Circle
Los Altos, CA 94022
650-691-0485 (Fax)
34
Any notice or demand which by any provision of this Agreement is required or permitted
to be given or served by the District to or on the Fiscal Agent may be given or served by being
deposited postage prepaid in a post office letter box addressed (until another address is filed by
the Fiscal Agent with the District) or by facsimile to:
Zions First National Bank
Attn.: Corporate Trust Department
550 S. Hope Street, Suite 2875
Los Angeles, CA 90071
Fax: (866) 870-0209
Section 9.09. Applicable Law. This Agreement shall be governed by and enforced in
accordance with the laws of the State of California applicable to contracts made and performed
in the State of California.
Section 9.10. Conflict with Act. In the event of a conflict between any provision of this
Agreement with any provision of the Act as in effect on the Closing Date, the provision of the Act
shall prevail over the conflicting provision of this Agreement.
Section 9.11. Conclusive Evidence of Regularity. Bonds issued pursuant to this
Agreement shall constitute conclusive evidence of the regularity of all proceedings under the Act
relative to their issuance and the levy of the ad valorem taxes securing the payment of the
Bonds.
Section 9.12. Payment on Business Day. In any case where the date of the maturity
of interest or of principal of the Bonds or the date any action is to be taken pursuant to this
Agreement is other than a Business Day, the payment of interest or principal or the action need
not be made on such date but may be made on the next succeeding day which is a Business
Day with the same force and effect as if made on the date required and no interest shall accrue
for the period on and after such date.
35
Section 9.13. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original.
MIDPENINSULA REGIONAL OPEN
SPACE DISTRICT
By:
General Manager
ZIONS FIRST NATIONAL BANK,
as Fiscal Agent
By:
Authorized Officer
A-1
EXHIBIT A
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
GENERAL OBLIGATION BOND,
SERIES 2015A
INTEREST RATE: MATURITY DATE: ISSUE DATE: CUSIP:
REGISTERED OWNER:
PRINCIPAL SUM: DOLLARS
The MIDPENINSULA REGIONAL OPEN SPACE DISTRICT, a public corporation and
special district, duly organized and existing under and by virtue of the Constitution and laws of
the State of California (the “District”), for value received, hereby promises to pay to the
Registered Owner stated above, or registered assigns (the “Owner”), on the Maturity Date
stated above, the Principal Sum stated above, in lawful money of the United States of America,
and to pay interest thereon in like lawful money from the interest payment date next preceding
the date of authentication of this Bond (unless (i) this Bond is authenticated on an interest
payment date, in which event it shall bear interest from such date of authentication, or (ii) this
Bond is authenticated prior to February 15, 2016, in which event it shall bear interest from the
Issue Date stated above; provided however, that if at the time of authentication of this Bond,
interest is in default on this Bond, this Bond shall bear interest from the interest payment date to
which interest has previously been paid or made available for payment on this Bond) until
payment of such Principal Sum in full, at the rate per annum stated above, payable on March 1
and September 1 in each year, commencing March 1, 2016, calculated on the basis of 360-day
year composed of twelve 30-day months. Principal hereof is payable at the corporate trust office
of Zions First National Bank (the “Fiscal Agent”), in Los Angeles, CA. Interest hereon (including
the final interest payment upon maturity) is payable by check or draft of the Fiscal Agent mailed
by first class mail to the Owner at the Owner's address as it appears on the registration books
maintained by the Fiscal Agent as of the close of business on the fifteenth day of the month next
preceding such interest payment date, or at such other address as the Owner may have filed
with the Fiscal Agent for that purpose.
This Bond is one of a duly authorized series of Bonds of the District designated as
“Midpeninsula Regional Open Space District General Obligation Bonds, Series 2015A” (the
“Bonds”), in an aggregate principal amount of $______________, all of like tenor and date
(except for such variation, if any, as may be required to designate varying numbers, maturities,
interest rates or other provisions) and all issued pursuant to the provisions of Article 3
(commencing with Section 5500) of Chapter 3 of Division 5 of the Public Resources Code and
Article 4.5, commencing with Section 53506, of Chapter 3 of Part 1 of Division 2 of Title 5 of the
Government Code of the State of California (collectively, the “Act”), and pursuant to a Fiscal
Agent Agreement, dated as of _____________, 2015, (the "Fiscal Agent Agreement") by and
between the District and the Fiscal Agent. Reference is hereby made to the Fiscal Agent
A-2
Agreement (copies of which are on file at the office of the Secretary of the Board) and the Act
for a description of the terms on which the Bonds are issued and the rights thereunder of the
owners of the Bonds and the rights, duties and immunities of the Fiscal Agent and the rights and
obligations of the District thereunder, to all of the provisions of which Fiscal Agent Agreement
the Owner of this Bond, by acceptance hereof, assents and agrees.
The issuance of the Bonds was authorized by a vote of more than two-thirds of the
qualified electors of the District voting at an election held on June 3, 2014. The Bonds are the
initial series of bonds to be issued pursuant to such authorization.
This Bond and the interest hereon and on all other Bonds and the interest thereon (to
the extent set forth in the Fiscal Agent Agreement) are general obligations of the District and the
District has the power and is obligated to levy taxes for the payment of the Bonds and the
interest thereon upon all property within the District subject to taxation by the District.
The Bonds maturing on or before September 1, ____ are not subject to redemption prior
to their respective maturity dates. Bonds maturing on or after September 1, ____, shall be
subject to redemption prior to their respective maturity dates as a whole, or in part, on any date,
from any moneys provided at the option of the District, in each case on and after September 1,
____, at a redemption price equal to the principal amount of Bonds that are called for
redemption, plus accrued interest to the date fixed for redemption, without premium.
Regardless of whether the District has deposited funds sufficient for any redemption with
the Fiscal Agent, the Fiscal Agent shall cause notice of any redemption to be mailed, first class
mail, postage prepaid, at least thirty (30) days but not more than sixty (60) days prior to the date
fixed for redemption, to the respective Owners of any Bonds designated for redemption, at their
addresses appearing on the Bond registration books maintained by the Fiscal Agent and to the
Securities Depositories and the Information Services; but such mailing shall not be a condition
precedent to such redemption and failure to mail or to receive any such notice shall not affect
the validity of the proceedings for the redemption of such Bonds. The District shall have the
right to cancel the notice of any optional redemption by providing written notice of such
cancellation to the Fiscal Agent not less than five (5) days prior to the date set for redemption.
The Bonds are issuable as fully registered Bonds, without coupons, in denominations of
$5,000 and any integral multiple thereof. Subject to the limitations and conditions and upon
payment of the charges, if any, as provided in the Fiscal Agent Agreement, Bonds may be
exchanged for a like aggregate principal amount of Bonds of other authorized denominations
and of the same maturity.
This Bond is transferable by the Owner hereof, in person or by his attorney duly
authorized in writing, at said office of the Fiscal Agent in Los Angeles, CA, but only in the
manner and subject to the limitations provided in the Fiscal Agent Agreement, and upon
surrender and cancellation of this Bond. Upon registration of such transfer a new Bond or
Bonds, of authorized denomination or denominations, for the same aggregate principal amount
and of the same maturity will be issued to the transferee in exchange herefor.
The District and the Fiscal Agent may treat the Owner hereof as the absolute owner
hereof for all purposes, and the District and the Fiscal Agent shall not be affected by any notice
to the contrary.
A-3
The Fiscal Agent Agreement may be amended without the consent of the Owners of the
Bonds to the extent set forth in the Fiscal Agent Agreement.
It is hereby certified that all of the things, conditions and acts required to exist, to have
happened or to have been performed precedent to and in the issuance of this Bond do exist,
have happened or have been performed in due and regular time and manner as required by the
laws of the State of California, and that the amount of this Bond, together with all other
indebtedness of the District, does not exceed any limit prescribed by any laws of the State of
California, and is not in excess of the amount of Bonds permitted to be issued under the Fiscal
Agent Agreement.
This Bond shall not be entitled to any benefit under the Fiscal Agent Agreement or
become valid or obligatory for any purpose until the Certificate of Authentication hereon shall
have been signed by the Fiscal Agent.
A-4
IN WITNESS WHEREOF, the Midpeninsula Regional Open Space District has caused
this Bond to be executed in its name and on its behalf with the facsimile signatures of its
President and Treasurer and countersigned by its Secretary of the Board of Directors and its
seal to be reproduced hereon, all as of the Issue Date stated above.
MIDPENINSULA REGIONAL OPEN
SPACE DISTRICT
By:
President of the Board
By:
Treasurer
Attest:
By:
Secretary of the Board
A-5
[FORM OF FISCAL AGENT'S CERTIFICATE OF AUTHENTICATION]
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds described in the within-mentioned Fiscal Agent Agreement.
Authentication Date:
ZIONS FIRST NATIONAL BANK,
as Fiscal Agent
Authorized Signatory
B-1
EXHIBIT B
FORM OF ACCOUNT REQUISITION
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
$______________
General Obligation Bonds,
Series 2015A
WRITTEN REQUISITION NO. _____
FOR DISBURSEMENT FROM THE
[COSTS OF ISSUANCE ACCOUNT]
[PROJECT ACCOUNT]
OF THE BOND PROCEEDS FUND
The undersigned hereby states and certifies:
(i) that the undersigned is the _________________ of the Midpeninsula Regional
Open Space District (the “District”), a regional open space district organized and existing under
the laws of the State of California, and as such, is familiar with the facts herein certified and is
authorized and qualified to certify the same;
(ii) that pursuant to Section 4.01(b) of that certain Fiscal Agent Agreement, dated as
of _____________, 2015 (the “Fiscal Agent Agreement”), by and between the District and Zions
First National Bank, as fiscal agent (the “Fiscal Agent”), the undersigned hereby authorizes the
disbursement from the [Costs of Issuance Account][Project Account] of the Bond Proceeds
Fund (the “Account”) established under the Fiscal Agent Agreement, to the payee or payees set
forth on Schedule A attached hereto and by this reference incorporated herein, the amount set
forth opposite such payee for the purposes set forth on Schedule A (which purpose may include
reimbursement of the District for previous payments), and all such payments shall be made by
check or wire transfer in accordance with payment instructions contained in Schedule A and the
Fiscal Agent shall have no duty or obligation to authenticate such payment instructions or the
authorization thereof;
(iii) that the amounts to be disbursed constitute [Issuance Expenses][Project Costs];
(iv) that such amounts are required to be disbursed pursuant to a contract entered
into by or on behalf of the District, or were necessarily and reasonably incurred and such
amounts are not being paid in advance of the time, if any, fixed for payment;
(v) that no amount set forth in Schedule A was included in any certificate requesting
disbursement previously filed with the Fiscal Agent pursuant to Section 4.01 of the Fiscal Agent
Agreement;
(vi) [include this representation when requisition is for construction costs] that
payment for work, materials, equipment or supplies identified on Exhibit A was actually
performed, or such materials, equipment or supplies were actually installed in furtherance of the
B-2
construction of the Project, or were delivered to the appropriate site for such purpose, or
delivered for storage or fabrication at a place approved by the District;
(vii) [include this representation when requisition is for payment to a Contractor] that
accompanying this Certificate is a certificate of [Contractor] stating that no liens have been
imposed on the Project as a result of said construction except liens that have not yet ripened or
that would attach by operation of law;
(viii) [include this representation when requisition is for reimbursement to the District]
that the requested reimbursement is consistent with Resolution 14-26 adopted by the District on
July 9, 2014;.
Capitalized terms not otherwise defined shall have the meanings ascribed to them in the
Fiscal Agent Agreement.
Dated: ____________ MIDPENINSULA REGIONAL OPEN SPACE
DISTRICT
By:____________________________
District Officer
B-3
SCHEDULE A
DISBURSEMENTS FROM
[COSTS OF ISSUANCE ACCOUNT]
[PROJECT ACCOUNT]
OF THE BOND PROCEEDS FUND
Payee Name and Address Purpose of Obligation Amount
PRELIMINARY OFFICIAL STATEMENT DATED ________, 2015
NEW ISSUE — BOOK-ENTRY ONLY RATINGS: Fitch: "___"
S&P: "___"
(See "CONCLUDING INFORMATION — Ratings" herein.)
In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however to
certain qualifications described herein, under existing law, the interest on the Bonds is excluded from gross income for federal
income tax purposes and such interest is not an item of tax preference for purposes of the federal alternative minimum tax imposed
on individuals and corporations, although for the purpose of computing the alternative minimum tax imposed on certain corporations,
such interest is taken into account in determining certain income and earnings. In the further opinion of Bond Counsel, such interest
is exempt from California personal income taxes. See "TAX MATTERS."
[insert new MidPen logo]
$______________*
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
(Counties of Santa Clara, San Mateo and Santa Cruz, California)
General Obligation Bonds, Series 2015A
(Election of 2014)
Dated: Date of Delivery Due: September 1; see inside cover
Authorization and Purpose. The above-captioned Bonds (the "Bonds") will be issued by the Midpeninsula Regional Open
Space District (the "District"). The Bonds were authorized (i) at an election of the registered voters of the District held on June 3,
2014 (the "2014 Authorization"), which authorized the issuance of $300,000,000 principal amount of general obligation bonds to
finance certain projects authorized by the voters and (ii) by a resolution adopted by the Board on ____________, 2015 (the
"Resolution"). The Bonds are being issued pursuant to (i) the Constitution and laws of the State of California (the "State"), including
the provisions of Article 3 (commencing with Section 5500) of Chapter 3 of Division 5 of the Public Resources Code and Article 4.5,
commencing with Section 53506, of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the
"Act") and (ii) a Fiscal Agent Agreement, dated as of _________, 2015 (the "Fiscal Agent Agreement"), between the District and
Zions First National Bank, as fiscal agent (the "Fiscal Agent"). See "THE BONDS - Authority for Issuance; Purpose."
The Bonds are being issued (i) for the purpose of financing certain projects authorized by voters in the District, as more fully
described herein, and (ii) to pay costs of issuing the Bonds. See "THE BONDS - Authority for Issuance; Purpose."
Security. The Bonds are general obligation bonds of the District, payable solely from ad valorem property taxes levied by the
District and collected by Santa Clara County, San Mateo County and Santa Cruz County (the "Counties"). The Boards of
Supervisors of the Counties are empowered and are obligated to annually levy ad valorem taxes for the payment of interest on, and
principal of, the Bonds upon all property subject to taxation by the District, without limitation of rate or amount (except certain
personal property which is taxable at limited rates). The District has no other general obligation bonds outstanding. The Bonds and
all future series of general obligation bonds under the 2014 Authorization are payable from ad valorem taxes levied on parcels in the
District. See "SECURITY AND SOURCE OF PAYMENT FOR THE BONDS."
Book-Entry Only. The Bonds will be issued in book-entry form only, initially registered in the name of Cede & Co., New York,
New York, as nominee of The Depository Trust Company ("DTC"), New York, New York. Individual purchases of the Bonds will be in
principal amounts of $5,000 or in any integral multiples of $5,000. Purchasers will not receive physical certificates representing their
interests in the Bonds. See "THE BONDS" and "APPENDIX F - DTC AND THE BOOK-ENTRY ONLY SYSTEM."
Payments. Interest on the Bonds accrues from the date of delivery at the rates set forth on the maturity schedule on the inside
cover of this Official Statement (as calculated on the basis of a 360-day year of twelve 30-day months) and is payable semiannually
on March 1 and September 1 of each year, commencing March 1, 2016, by check mailed to the person in whose name the Bond is
registered. Payments of principal and interest on the Bonds will be paid by the Fiscal Agent to DTC for subsequent disbursement to
DTC Participants, which will remit such payments to the Beneficial Owners of the Bonds. See "THE BONDS - Payment of Principal
and Interest" and "- Book-Entry System."
Redemption. The Bonds are subject to redemption prior to their stated maturity as described in this Official Statement. See
"THE BONDS - Redemption of the Bonds."
MATURITY SCHEDULE
(See inside cover)
THIS COVER PAGE CONTAINS INFORMATION FOR GENERAL REFERENCE ONLY. IT IS NOT A SUMMARY OF THE
SECURITY OR TERMS OF THIS ISSUE. INVESTORS MUST READ THE ENTIRE OFFICIAL STATEMENT FOR A DISCUSSION
OF SPECIAL FACTORS WHICH SHOULD BE CONSIDERED, IN ADDITION TO THE OTHER MATTERS SET FORTH IN THIS
OFFICIAL STATEMENT, IN CONSIDERING THE INVESTMENT QUALITY OF THE BONDS. CAPITALIZED TERMS USED ON
THIS COVER PAGE AND NOT OTHERWISE DEFINED SHALL HAVE THE MEANINGS SET FORTH IN THIS OFFICIAL
STATEMENT.
The Bonds are offered when, as and if sold and issued, subject to the approval as to their legality by Jones Hall, A Professional
Law Corporation, San Francisco, California, Bond Counsel. Jones Hall is also serving as Disclosure Counsel to the District. Certain
legal matters will be passed upon for the District by its General Counsel. It is anticipated that the Bonds in book-entry form, will be
available for delivery through the facilities of DTC in New York, New York, on or about ________, 2015.
Dated: _______, 2015.
ATTACHMENT 4
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
(Counties of Santa Clara, San Mateo and Santa Cruz, California)
General Obligation Bonds, Series 2015A
(Election of 2014)
MATURITY SCHEDULE
(Base CUSIP†: _______)
Maturity Date
(September 1)
Principal
Amount
Interest
Rate
Yield
Price
CUSIP†
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
$_______ ___% Term Bond due September 1, 20__; Yield ___%; Price ___; CUSIP† ___
C: Priced to first par call on September 1, 20__.
† Copyright 2015, American Bankers Association. CUSIP data are provided by Standard & Poor’s CUSIP Service Bureau, a
division of The McGraw-Hill Companies, Inc., and are provided for convenience of reference only. None of the District or the
Underwriter assume any responsibility for the accuracy of these CUSIP data.
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
(Santa Clara, San Mateo and Santa Cruz Counties, California)
DISTRICT BOARD OF DIRECTORS
Pete Siemens, Ward 1 Board President
Yoriko Kishimoto, Ward 2 Board Vice President
Jed Cyr, Ward 3 Board Secretary
Curt Riffle, Ward 4 Board Treasurer
Nonette Hanko, Ward 5 Board Member
Larry Hassett, Ward 6 Board Member
Cecily Harris, Ward 7 Board Member
DISTRICT STAFF
Steve Abbors, General Manager
Mike Foster, Controller
Sheryl Schaffner, Esq., General Counsel
PROFESSIONAL SERVICES
Financial Advisor
Sohail Bengali
San Mateo, California
Bond Counsel and Disclosure Counsel
Jones Hall, A Professional Law Corporation
San Francisco, California
Fiscal Agent
Zions First National Bank
Los Angeles, California
GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT
No Offering May Be Made Except by this Official Statement. No dealer, broker, salesperson or
other person has been authorized to give any information or to make any representations with respect to the
Bonds other than as contained in this Official Statement, and if given or made, such other information or
representation must not be relied upon as having been authorized.
No Unlawful Offers or Solicitations. This Official Statement does not constitute an offer to sell or
the solicitation of an offer to buy in any state in which such offer or solicitation is not authorized or in which the
person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make
such offer or solicitation.
Effective Date. This Official Statement speaks only as of its date, and the information and
expressions of opinion contained in this Official Statement are subject to change without notice. Neither the
delivery of this Official Statement nor any sale of the Bonds will, under any circumstances, create any
implication that there has been no change in the affairs of the District or any other parties described in this
Official Statement.
Use of this Official Statement. This Official Statement is submitted in connection with the sale of the
Bonds referred to herein and may not be reproduced or used, in whole or in part, for any other purpose. This
Official Statement is not a contract with the purchasers of the Bonds.
Preparation of this Official Statement. The information contained in this Official Statement has
been obtained from sources that are believed to be reliable, but this information is not guaranteed as to
accuracy or completeness.
Document References and Summaries. All references to and summaries of the Fiscal Agent
Agreement or other documents contained in this Official Statement are subject to the provisions of those
documents and do not purport to be complete statements of those documents.
Bonds are Exempt from Securities Laws Registration. The issuance and sale of the Bonds have
not been registered under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as
amended, in reliance upon exemptions for the issuance and sale of municipal securities provided under
Section 3(a)(2) of the Securities Act of 1933 and Section 3(a)(12) of the Securities Exchange Act of 1934.
Stabilization of Prices. In connection with this offering, the Underwriter may overallot or effect
transactions which stabilize or maintain the market price of the Bonds at a level above that which might
otherwise prevail in the open market. Such stabilizing, if commenced, may be discontinued at any time. The
Underwriter may offer and sell the Bonds to certain dealers and others at prices lower than the public offering
prices set forth on the cover page hereof and said public offering prices may be changed from time to time by
the Underwriter.
Estimates and Projections. Certain statements included or incorporated by reference in this Official
Statement constitute "forward-looking statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995, Section 21E of the United States Securities Exchange Act of 1934, as amended,
and Section 27A of the United States Securities Act of 1933, as amended. Such statements are generally
identifiable by the terminology used such as "plan," "expect," "estimate," "budget" or other similar words.
THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH
FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND
OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS
DESCRIBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR
ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE
DISTRICT DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THOSE FORWARD-LOOKING
STATEMENTS IF OR WHEN ITS EXPECTATIONS, OR EVENTS, CONDITIONS OR CIRCUMSTANCES ON
WHICH SUCH STATEMENTS ARE BASED OCCUR.
District Website. The District maintains a website. However, the information presented there is not a
part of this Official Statement and should not be relied upon in making an investment decision with respect to
the Bonds.
i
TABLE OF CONTENTS
INTRODUCTION ....................................... 1
General ........................................................... 1
The District ..................................................... 1
Governing Board and Management ............... 1
Authority for the Bonds ................................... 2
Purpose .......................................................... 2
Security for the Bonds .................................... 2
Redemption .................................................... 2
Summaries Not Definitive ............................... 3
THE BONDS .............................................. 4
Authority for Issuance; Purpose ..................... 4
Estimated Sources and Uses of Funds .......... 4
Form and Registration .................................... 4
Payment of Principal and Interest .................. 5
Transfer of Bonds ........................................... 5
Redemption of the Bonds ............................... 6
Defeasance .................................................... 7
Investment of Bond Proceeds ........................ 7
Book-Entry System......................................... 8
DEBT SERVICE SCHEDULE .................... 9
DISTRICT TAX BASE INFORMATION .... 10
General ......................................................... 10
Debt Service Fund........................................ 10
No Debt Service Reserve Fund ................... 10
Ad Valorem Property Taxation ..................... 11
Allocation of Property Taxes ........................ 11
Assessed Valuations .................................... 11
Taxation of State-Assessed Utility Property 13
Assessed Valuation by Land Use ................ 13
Assessed Valuation of Single-Family
Residential Properties .............................. 14
Largest Secured Property Taxpayers in
District ...................................................... 15
Tax Rate Areas ............................................ 16
Appeals of Assessed Value ......................... 16
Property Tax Collections .............................. 17
Direct and Overlapping Debt Obligations .... 18
TAX MATTERS ........................................ 20
CONTINUING DISCLOSURE .................. 21
CONCLUDING INFORMATION ............... 22
Underwriting ................................................. 22
Legal Opinion ............................................... 22
Litigation ....................................................... 23
Ratings ......................................................... 23
Financial Statements ................................... 24
Miscellaneous .............................................. 24
APPENDIX A - DISTRICT FINANCIAL AND OPERATING INFORMATION; ECONOMIC AND
DEMOGRAPHIC INFORMATION REGARDING SANTA CLARA AND SAN MATEO
COUNTIES
APPENDIX B - ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED MARCH 31, 2014
APPENDIX C - FORM OF OPINION OF BOND COUNSEL
APPENDIX D - SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT
APPENDIX E - FORM OF CONTINUING DISCLOSURE CERTIFICATE
APPENDIX F - DTC AND THE BOOK-ENTRY ONLY SYSTEM
Location Map
Vista Point picture
$______________*
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
(Counties of Santa Clara, San Mateo and Santa Cruz, California)
General Obligation Bonds, Series 2015A
(Election of 2014)
INTRODUCTION
This introduction contains only a brief summary of certain of the terms of the Bonds
being offered, and a brief description of the Official Statement. All statements contained in this
introduction are qualified in their entirety by reference to the entire Official Statement.
General
The purpose of this Official Statement (which includes the cover page, inside cover page
and the Appendices) is to provide information concerning the issuance of the above-captioned
Bonds (the "Bonds").
The District
The Midpeninsula Regional Open Space District (the “District”) was formed in 1972 to
acquire and preserve public open space land in northern and western portions of Santa Clara
County. In June 1976, the southern and eastern portions of San Mateo County were annexed to
the District. The District annexed a small portion of the northern tip of Santa Cruz County in
1992, but presently no property taxes on this land go to the District. In September 2004, the
District completed the Coastside Protection Program, which extended the District boundaries to
the Pacific Ocean in San Mateo County, from the southern borders of Pacifica to the San
Mateo/Santa Cruz County line. The District now encompasses over 550 square miles of land in
Santa Clara County, San Mateo County and Santa Cruz County (the “Counties”).
Approximately 705,500 people live in the District based on 2010 census data.
Governing Board and Management
The seven-member Board of Directors, elected by ward, establishes policies for the
District. Specifically, the Board sets general operating objectives for the District, monitors
financial and long-range planning, establishes policies governing conditions of employment, and
sets policies to protect and enhance the natural and cultural resources of the District. Members
of the Board are elected for staggered four-year terms.
For additional information about the District’s operations and finances, see “APPENDIX
A - DISTRICT FINANCIAL AND OPERATING INFORMATION; ECONOMIC AND
DEMOGRAPHIC INFORMATION REGARDING SANTA CLARA AND SAN MATEO
COUNTIES."
* Preliminary; subject to change.
-2-
Authority for the Bonds
The Bonds are being issued pursuant to (i) the Constitution and laws of the State of
California (the "State"), including the provisions of Article 3 (commencing with Section 5500) of
Chapter 3 of Division 5 of the Public Resources Code and Article 4.5, commencing with Section
53506, of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the State of
California (the "Act ") and (ii) a Fiscal Agent Agreement, dated as of _________, 2015 (the
"Fiscal Agent Agreement"), between the District and Zions First National Bank, as fiscal agent
(the "Fiscal Agent"). The Bonds were authorized (i) at an election of the registered voters of
the District held on June 3, 2014 (the "2014 Authorization"), which authorized the issuance of
$300,000,000 principal amount of general obligation bonds, and (ii) by a resolution adopted by
the Board on _________, 2015 (the "Resolution").
Purpose
The proceeds of the sale of the Bonds will be used to (i) finance certain projects
specified in the 2014 Authorization, and (ii) pay costs of issuing the Bonds. See "THE BONDS -
Authority for Issuance; Purpose."
Security for the Bonds
The Bonds are general obligations of the District payable from ad valorem taxes
assessed within the District pursuant to the 2014 Authorization. The Boards of Supervisors of
the Counties are empowered and are obligated to levy ad valorem taxes upon all property
subject to taxation by the District in each year that the Bonds or other general obligation debt
are outstanding, without limitation as to rate or amount (except as to certain personal property
which is taxable at limited rates), in order to receive amounts sufficient to pay debt service on
the Bonds and other general obligation bonds of the District. Such taxes are in addition to other
taxes levied upon property within the District.
The Bonds are the first series of bonds to be issued under the 2014 Authorization. Any
future series of general obligation bonds issued pursuant to the 2014 Authorization shall be
payable on a parity with the Bonds from ad valorem taxes levied on parcels in the District. See
"SECURITY AND SOURCE OF PAYMENT FOR THE BONDS, General." "- Direct and
Overlapping Debt" and "- General Obligation Debt and Long-Term Obligations of the District,"
below.
The District is not funding a debt service reserve fund for the Bonds.
See "SECURITY AND SOURCE OF PAYMENT FOR THE BONDS."
Redemption
The Bonds are subject to optional and mandatory sinking fund redemption prior to their
stated maturity, as described in this Official Statement. See "THE BONDS – Redemption of the
Bonds."
-3-
Summaries Not Definitive
The summaries and references of documents, statutes, reports and other instruments
referred to in this Official Statement do not purport to be complete, comprehensive or definitive,
and each such summary and reference is qualified in its entirety by reference to each
document, statute, report, or instrument. The capitalization of any word not conventionally
capitalized, or otherwise defined in this Official Statement, indicates that such word is defined in
a particular agreement or other document and, as used in this Official Statement, has the
meaning given it in such agreement or document. See "APPENDIX D - SUMMARY OF
CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT" for summaries of certain of
such definitions.
Copies of the documents described in this Official Statement will be available at the
General Manager’s office, Midpeninsula Regional Open Space District, 330 Distel Circle, Los
Altos, California 94022, telephone: (650) 691-1200. The District may impose a charge for
copying and mailing.
[End of Introduction]
-4-
THE BONDS
Authority for Issuance; Purpose
The Bonds are issued pursuant to (i) the Constitution and laws of the State, including the
Act, and (ii) the Fiscal Agent Agreement. The Bonds are the first series of general obligation
bonds being issued pursuant to the 2014 Authorization. The Bonds are authorized to be issued
by the Resolution. For additional information about the provisions of the Fiscal Agent
Agreement, see "APPENDIX D - SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL
AGENT AGREEMENT".
The District will use the proceeds of the Bonds to finance the improvements authorized
by the voters under the 2014 Authorization.
Estimated Sources and Uses of Funds
The proceeds to be received from the sale of the Bonds are anticipated to be applied as follows:
SOURCES OF FUNDS:
Principal Amount of Bonds
Original Issue Premium
Total Sources:
USES OF FUNDS:
Project Account
Costs of Issuance Account(1)
Underwriter’s Discount
Total Uses:
(1) Includes legal fees, financial advisory fees, Fiscal Agent fees, printing expenses, rating fees and other costs of
issuing the Bonds.
Form and Registration
The Bonds will be issued in the form of fully registered Bonds, without coupons, in
denominations of $5,000 or any integral multiple of $5,000, and will be dated the date of
issuance to the original purchaser. The Bonds will mature on the dates and in the amounts set
forth on the inside front cover of this Official Statement.
The Bonds, when issued, will be registered in the name of Cede & Co., as registered
owner and nominee of The Depository Trust Company, New York, New York ("DTC"). So long
as DTC, or Cede & Co. as its nominee, is the registered owner of all Bonds, all payments on the
Bonds will be made directly to DTC, and disbursement of such payments to the DTC
"Participants" (as defined in APPENDIX F) will be the responsibility of DTC, and disbursement
of such payments to the Beneficial Owners (as defined in APPENDIX F) will be the
responsibility of the Participants, as more fully described in "– Book-Entry System."
-5-
Payment of Principal and Interest
The Bonds will mature on September 1 in the years indicated on the inside cover page
hereof and will bear interest at the rates set forth on the inside cover page hereof on March 1
and September 1 of each year, commencing on March 1, 2016 (each, an "Interest Payment
Date"), computed using a year of 360 days comprising twelve 30-day months.
Bonds authenticated and registered on any date prior to the close of business on
February 15, 2016, will bear interest from the date of their delivery. Bonds authenticated during
the period between the 15th day of the calendar month immediately preceding an Interest
Payment Date (the "Record Date") and the close of business on that Interest Payment Date will
bear interest from that Interest Payment Date. Any other Bond will bear interest from the Interest
Payment Date immediately preceding the date of its authentication. If, at the time of
authentication of any Bond, interest is then in default on outstanding Bonds, such Bond will bear
interest from the Interest Payment Date to which interest has previously been paid or made
available for payment thereon.
Payment of Interest. Payment of interest on any Bond on each Interest Payment Date
(or on the following business day, if the Interest Payment Date does not fall on a business day)
will be made to the person appearing on the registration books of the Fiscal Agent as the
registered owner thereof (the "Owner") on each Record Date, such interest to be paid by check
or draft mailed to such Owner at such Owner’s address as it appears on such registration books
or at such other address as the Owner may have filed with the Fiscal Agent for that purpose on
or before the Record Date. The Owner of an aggregate principal amount of $1,000,000 or more
of Bonds may request in writing to the Fiscal Agent that such Owner be paid interest by wire
transfer to the bank and account number on file with the Fiscal Agent as of the applicable
Record Date. So long as the Bonds are held by Cede & Co., as nominee of DTC, payment will
be made by wire transfer.
Payment of Principal. Principal will be payable at maturity, or upon redemption prior to
maturity, upon surrender of Bonds at the principal office of the Fiscal Agent. The interest,
principal and premiums, if any, on the Bonds will be payable in lawful money of the United
States of America from moneys on deposit in the Debt Service Fund of the District under the
Fiscal Agent Agreement, consisting of ad valorem taxes collected by the County Treasurer of
the respective Counties, together with any premium and accrued interest received upon
issuance of the Bonds. So long as all outstanding Bonds are held in book-entry form and
registered in the name of a securities depository or its nominee, all payments of principal of,
premium, if any, and interest on the Bonds and all notices with respect to such Bonds will be
made and given, respectively, to such securities depository or its nominee and not to Beneficial
Owners. See "APPENDIX F - DTC AND THE BOOK-ENTRY ONLY SYSTEM".
Transfer of Bonds
Any Bond may be transferred upon the registration books kept by the Fiscal Agent by
the person in whose name it is registered, in person or by his duly authorized attorney, upon
surrender of the Bond for cancellation, accompanied by delivery of a written instrument of
transfer in a form approved by the Fiscal Agent, duly executed and the payment of such
reasonable transfer fees as the Fiscal Agent may establish.
Bonds may be exchanged at the corporate trust office of the Fiscal Agent for a like
aggregate principal amount of Bonds of other authorized denominations of the same maturity.
-6-
The Fiscal Agent shall collect any tax or other governmental charge on the exchange of any
Bonds required to be paid with respect to such exchange. The Fiscal Agent is not required to
register the transfer or exchange of any Bond during the period the Fiscal Agent is selecting
Bonds for redemption or any Bond selected for redemption.
Redemption of the Bonds
Optional Redemption. The Bonds maturing on or before September 1, 20__ shall not
be subject to optional redemption prior to maturity. The Bonds maturing on or after September
1, 20__ shall be subject to redemption at the option of the District in whole or in part on any date
on or after September 1, 20__ from such maturities as are selected by the District (and by lot
within a maturity) from any available source of funds, at a redemption price equal to the principal
amount of Bonds to be redeemed, plus accrued but unpaid interest to the redemption date,
without premium.
The District shall give the Fiscal Agent written notice of its intention to redeem Bonds
under the Fiscal Agent Agreement, and the manner of selecting such Bonds for redemption
from among the maturities thereof and the amount of the redemption premium thereon, at least
thirty (30) but not more than sixty (60) days prior to the date set for redemption to enable the
Fiscal Agent to give notice of such redemption in accordance with the Fiscal Agent Agreement.
Mandatory Sinking Fund Redemption. The Bonds maturing on September 1, 20__
(the “Term Bonds”) are subject to redemption prior to their stated maturity dates, without a
redemption premium, in part by lot, from mandatory sinking fund payments on each September
1, on and after September 1, 20__ in the principal amounts as set forth in the following table:
Term Bond Due September 1, 20__
Payment Date
(September 1)
Payment
Amount
20__ (maturity)
Selection of Bonds for Redemption. Whenever less than all of the outstanding Bonds
of any one maturity are to be redeemed, the Fiscal Agent shall determine by lot by such method
as the Fiscal Agent shall deem fair and appropriate, the Bonds or portions thereof to be
redeemed, and shall notify the District thereof. For purposes of such selection, Bonds shall be
deemed to be composed of $5,000 multiples and any such multiple may be separately
redeemed. All Bonds redeemed pursuant to the Fiscal Agent Agreement shall be canceled and
shall, upon Written Request of the District, thereupon be delivered to the District. In the event
only a portion of any Bond is called for redemption, then upon surrender of such Bond the
District shall execute and the Fiscal Agent shall authenticate and deliver to the Owner thereof,
at the expense of the District, a new Bond or Bonds of the same series and maturity of
authorized denominations in aggregate principal amount equal to the unredeemed portion of the
Bond to be redeemed.
So long as the Bonds are registered in book-entry-only form and so long as DTC or a
successor securities depository is the sole registered Owner of the Bonds, partial redemptions
-7-
will be done in accordance with DTC procedures. It is the District’s intent that redemption
allocations made by DTC be made in accordance with the provisions described herein.
However, neither the District nor the Fiscal Agent has a duty to assure, and can provide no
assurance, that DTC will allocate redemptions among Beneficial Owners on such a proportional
basis, and neither the District nor the Fiscal Agent shall have any liability whatsoever to
Beneficial Owners in the event redemptions are not done on a proportionate basis for any
reason. The portion of any registered Bonds of a denomination of more than $5,000 to be
redeemed will be in the principal amount of $5,000 or any integral multiple thereof. See "– Book
Entry System," below.
Notice of Redemption. The Fiscal Agent on behalf and at the expense of the District
shall mail (by first class mail) notice of any redemption at least thirty (30) but not more than sixty
(60) days prior to the redemption date, to (i) the respective Owners of any Bonds designated for
redemption at their addresses appearing on the Registration Books, and (ii) DTC and the
Municipal Securities Rulemaking Board, which has been designated by the Securities and
Exchange Commission as the sole repository of disclosure information for purposes of
compliance with Securities Exchange Commission Rule 15c2 12(b)(5); but such mailing shall
not be a condition precedent to such redemption and neither failure to receive any such notice
nor any defect therein shall affect the validity of the proceedings for the redemption of such
Bonds or the cessation of the accrual of interest thereon. Such notice shall state the
redemption date and the redemption price, shall designate the CUSIP number of the Bonds to
be redeemed, state the individual number of each Bond to be redeemed or state that all Bonds
between two stated numbers (both inclusive) or all of the Bonds Outstanding are to be
redeemed, and shall require that such Bonds be then surrendered at the stated office of the
Fiscal Agent for redemption at the said redemption price, giving notice also that further interest
on such Bonds will not accrue after the redemption date. Each notice relating to an optional
redemption pursuant to the Fiscal Agent Agreement will further state that such optional
redemption may be rescinded by the District on or prior to the date set for redemption.
Defeasance
The Bonds may be paid by the District in any of the following ways, provided that the
District also pays or causes to be paid any other sums payable under the Fiscal Agent
Agreement by the District:
(i) by paying or causing to be paid the principal of and interest on Bonds
Outstanding, as and when the same become due and payable;
(ii) by depositing, at or before maturity, money or securities in the necessary
amount to pay Bonds Outstanding; or
(iii) by delivering to the Fiscal Agent, for cancellation by it, Bonds
Outstanding.
If the District pays all Bonds Outstanding and also pays or causes to be paid all other
sums payable by the District pursuant to the Fiscal Agent Agreement, then and in that case, at
the election of the District, and notwithstanding that any Bonds shall not have been surrendered
for payment, the Fiscal Agent Agreement will cease, terminate, become void and be completely
discharged and satisfied.
Investment of Bond Proceeds
-8-
Moneys in the Project Account, the Bond Service Fund and Costs of Issuance Account
(as such are established by and defined in the Fiscal Agent Agreement) will be invested by the
Fiscal Agent, at the written direction of the Chief Financial Officer of the District, in Permitted
Investments (as such are established by and defined in the Fiscal Agent Agreement) maturing
prior to the date on which such moneys are required to be paid out under the Fiscal Agent
Agreement. Moneys in the Debt Service Fund will be invested by the Chief Financial Officer in
Permitted Investments that by their terms mature prior to the date on which such moneys are
required to be paid out hereunder. Obligations purchased as an investment of moneys in any of
such funds and accounts will at all times be deemed to be part of each such respective fund
and account so invested, and all interest, gain or loss on the investment of moneys in such
respective fund and accounts will be credited or charged thereto.
Book-Entry System
DTC will act as securities depository for the Bonds. The Bonds will be issued as fully-
registered bonds registered in the name of Cede & Co. (DTC’s partnership nominee). One fully-
registered Certificate will be issued for each maturity of the Bonds, each in the aggregate
principal amount of such maturity, and will be deposited with DTC. See "APPENDIX F – DTC
AND THE BOOK-ENTRY ONLY SYSTEM."
The District and the Fiscal Agent cannot and do not give any assurances that DTC, DTC
Participants or others will distribute payments of principal, interest or premium, if any, with
respect to the Bonds paid to DTC or its nominee as the registered owner, or will distribute any
redemption notices or other notices, to the Beneficial Owners, or that they will do so on a timely
basis or will serve and act in the manner described in this Official Statement. The District and
the Fiscal Agent are not responsible or liable for the failure of DTC or any DTC Participant to
make any payment or give any notice to a Beneficial Owner with respect to the Bonds or an
error or delay relating thereto.
-9-
DEBT SERVICE SCHEDULE
The following table shows the debt service schedule with respect to the Bonds
(assuming no optional redemptions).
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
(Counties of Santa Clara, San Mateo and Santa Cruz, California)
General Obligation Bonds, Series 2015A
(Election of 2014)
Bond Year
Ending
September 1
Bonds
Principal
Bonds
Interest
Total
Bonds
Debt Service
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
Total
-10-
SECURITY AND SOURCE OF PAYMENT FOR THE BONDS
General
In order to provide sufficient funds for repayment of principal and interest when due on
the Bonds and other outstanding general obligation bonds of the District, the Boards of
Supervisors of the Counties of Santa Clara, San Mateo and Santa Cruz are empowered and are
obligated to levy ad valorem taxes upon all property subject to taxation by the District in each
year that the Bonds or other general obligation debt are outstanding, without limitation as to rate
or amount (except as to certain personal property which is taxable at limited rates). Such taxes
are in addition to other taxes levied upon property within the District. All of the proceeds of such
taxes will be deposited in a special account of the General Fund of the District before the
transfer thereof to the Debt Service Fund under the Fiscal Agent Agreement, for the Bonds, or
as set forth in the applicable governing agreements for other general obligation debt, which
taxes are to be used solely for the payment of the Bonds and such other general obligation
debt.
Debt Service Fund
Pursuant to the Fiscal Agent Agreement, the District will transfer an amount of legally
available funds to the Fiscal Agent for deposit in the debt service fund established pursuant to
the Fiscal Agent Agreement (the "Debt Service Fund") at the times and in the amounts
sufficient to pay debt service on the Bonds.
The Debt Service Fund will be held by the Fiscal Agent and so long as any Bonds are
outstanding, the amounts on deposit therein will be used to pay principal of, premium, if any,
and interest on the Bonds.
On or before the first (1st) Business Day preceding each Interest Payment Date, the
District is required to transfer to the Fiscal Agent for deposit in the Debt Service Fund an
amount which, when added to the amount contained in the Debt Service Fund on the date of
such transfer, equals the aggregate amount of the principal of and interest on the Outstanding
Bonds becoming due and payable on such Interest Payment Date, including pursuant to
mandatory sinking fund redemption (as such is provided for in the Fiscal Agent Agreement).
No Debt Service Reserve Fund
The Fiscal Agent Agreement does not require the District to establish a reserve fund for
the Bonds. Accordingly, in the event that the amounts described herein are insufficient for the
timely payment of debt service on the Bonds, the District will not have other funds available
therefor.
-11-
Ad Valorem Property Taxation Within the District
Taxes are levied by the Counties for each Fiscal Year on taxable real and personal
property which is situated in the District as of the preceding January 1. For assessment and
collection purposes, property is classified either as "secured" or "unsecured" and is listed
accordingly on separate parts of the assessment roll. The "secured roll" is that part of the
assessment roll containing State-assessed public utilities property and real property having a
tax lien which is sufficient, in the opinion of the County Assessors of the Counties, to secure
payment of the taxes. Other property is assessed on the "unsecured roll."
Property taxes on the secured roll are due in two installments, on November 1 and
February 1 of each Fiscal Year. If unpaid, such taxes become delinquent on December 10 and
April 10, respectively, and a 10% penalty attaches to any delinquent payment. Property on the
secured roll with respect to which taxes are delinquent becomes tax defaulted on or about June
30 of the Fiscal Year. Such property may thereafter be redeemed by payment of a penalty of
1.5% per month to the time of redemption, plus costs and a redemption fee. If taxes are unpaid
for a period of five years or more, the property is subject to sale.
Property taxes on the unsecured roll are due as of the January 1 lien date and become
delinquent, if unpaid, on August 31. A 10% penalty attaches to delinquent unsecured taxes. If
unsecured taxes are unpaid by 5:00 p.m. on October 31, an additional penalty of 1.5% attaches
to them on the first day of each month until paid. The taxing authority has four ways of
collecting delinquent unsecured personal property taxes: (1) bringing a civil action against the
taxpayer; (2) filing a certificate in the office of the County Clerk of a County specifying certain
facts in order to obtain a lien on certain property of the taxpayer; (3) filing a certificate of
delinquency for record in the County Clerk and County Recorder’s office of the applicable
County in order to obtain a lien on certain property of the taxpayer; and (4) seizing and selling
personal property, improvements, or possessory interests belonging or assessed to the
assessee.
Allocation of Property Taxes
The allocation of ad valorem property taxes to local governments and, accordingly, the
District, is subject to certain State statutes, which may change from time to time. However,
such allocation of ad valorem property taxes has received new constitutional protection in
recent years, and the District believes that any such change will not adversely affect its ability to
pay debt service on the Bonds or any other bonds issued pursuant to the 2014 Authorization.
See "APPENDIX A - DISTRICT FINANCIAL AND OPERATING INFORMATION; ECONOMIC
AND DEMOGRAPHIC INFORMATION REGARDING SAN MATEO AND SANTA CLARA
COUNTIES, CONSTITUTIONAL AND STATUTORY LIMITATIONS ON DISTRICT TAX
REVENUES AND APPROPRIATIONS, Proposition 1A; Proposition 22" for further information.
Assessed Valuations
The assessed valuation of property in the District is established by the County
Assessors of the Counties, except for public utility property, which is assessed by the State
Board of Equalization. Assessed valuations are reported at 100% of the "full value" of the
property, as defined in Article XIIIA of the California Constitution. The full value may be
adjusted annually to reflect inflation at a rate not to exceed 2% per year, or to reflect a reduction
in the consumer price index or comparable data for the area, or to reflect declines in property
value caused by substantial damage, destruction or other factors, including assessment
-12-
appeals filed by property owners. Prior to 1981-82, assessed valuations were reported at 25
percent of the full value of property. For a discussion of how properties currently are assessed,
see "APPENDIX A - DISTRICT FINANCIAL AND OPERATING INFORMATION; ECONOMIC
AND DEMOGRAPHIC INFORMATION REGARDING SAN MATEO AND SANTA CLARA
COUNTIES, CONSTITUTIONAL AND STATUTORY LIMITATIONS ON DISTRICT TAX
REVENUES AND APPROPRIATIONS."
Certain classes of property, such as churches, colleges, not-for-profit hospitals, and
charitable institutions, are exempt from property taxation and do not appear on the tax rolls. No
reimbursement is made by the State for such exemptions.
The 2014-15 assessed valuation of the District in Santa Clara County increased 6.3%
over 2013-14. The 2014-15 assessed valuation in San Mateo County increased 5.3% from
2013-14. The greatest majority of assessed valuation within the District is located in Santa Clara
County and San Mateo County. Although ad valorem taxes will be levied on the four parcels of
District property located in Santa Cruz County, assessed valuation of these Santa Cruz parcels
is not included in this table.
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
Summary of Assessed Valuation
Fiscal Years 2009-10 through 2014-15
Total Before Total After
Local Secured Utility Unsecured Rdv. Increment Rdv. Increment
Santa Clara County Portion Only
2009-10 $108,749,899,010 $5,136,776 $7,220,172,257 $115,975,208,043 $110,945,626,876
2010-11 108,672,176,967 5,136,776 6,448,240,993 115,125,554,736 110,403,735,361
2011-12 110,480,450,873 5,192,456 6,843,136,528 117,328,779,857 112,337,678,583
2012-13 115,665,767,418 5,192,456 7,574,405,026 123,245,364,900 117,796,453,103
2013-14 125,816,313,137 5,192,456 8,032,679,682 133,854,185,275 128,261,359,652
2014-15 134,293,818,913 3,616,356 8,134,278,301 142,431,713,570 136,364,265,861
San Mateo County Portion Only
2009-10 $51,288,838,067 $6,652,036 $2,039,518,086 $53,335,008,189 $49,431,098,412
2010-11 51,197,325,804 6,652,820 2,006,682,450 53,210,661,074 49,373,928,453
2011-12 51,670,520,965 2,464,668 1,952,159,401 53,625,145,034 49,913,049,371
2012-13 53,793,234,014 2,464,745 1,948,563,396 55,744,262,155 51,977,724,339
2013-14 57,513,572,325 2,335,966 2,180,554,159 59,696,462,450 55,714,674,355
2014-15 60,798,836,807 2,343,298 2,087,352,630 62,888,532,735 58,641,317,894
Total District
2009-10 $160,038,737,077 $11,788,812 $ 9,259,690,343 $169,310,216,232 $160,376,725,288
2010-11 159,869,502,771 11,789,596 8,454,923,443 168,336,215,810 159,777,663,814
2011-12 162,150,971,838 7,657,124 8,795,295,929 170,953,924,891 162,250,727,954
2012-13 169,459,001,432 7,657,201 9,522,968,422 178,989,627,055 169,774,177,442
2013-14 183,329,885,462 7,528,422 10,213,233,841 193,550,647,725 183,976,034,007
2014-15 195,092,655,720 5,959,654 10,221,630,931 205,320,246,305 195,005,583,755
Source: California Municipal Statistics, Inc.
Pursuant to the Act, the District may issue bonds in an amount up to 5% of the assessed
valuation of taxable property within its boundaries. Prior to the issuance of the Bonds and based
on Fiscal Year 2014-15 assessed valuation, the District’s gross bonding capacity is
-13-
approximately $9.2 billion. The Bonds are the first and only series of general obligation bonds
outstanding as of the date of issuance of the Bonds.
Taxation of State-Assessed Utility Property
A small portion (less than 1%) of property tax revenue of the District is derived from
utility property subject to assessment by the State Board of Equalization ("SBE"). Property
valued by the SBE as an operating unit in a primary function of the utility taxpayer is known as
"unitary property", a concept designed to permit assessment of the utility as a going concern
rather than assessment of each individual element of real and personal property owned by the
utility taxpayer. State-assessed unitary and "operating nonunitary" property (which excludes
nonunitary property of regulated railways) is allocated to the counties based on the situs of the
various components of the unitary property. Except for unitary property of regulated railways
and certain other excepted property, all unitary and operating nonunitary property is taxed at
special county-wide rates and tax proceeds are distributed to taxing jurisdictions according to
statutory formulae generally based on the distribution of taxes in the prior year.
Assessed Valuation by Land Use
The following table describes a distribution of taxable real property located in the District
by principal purpose for which the land is used, and the assessed valuation and number of
parcels for each use.
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
2014-15 Assessed Valuation and Parcels by Land Use
2014-15 % of No. of % of
Non-Residential: Assessed Valuation (1) Total Parcels Total
Agricultural/Rural $ 466,276,675 0.24% 639 0.325
Commercial/Office 24,012,890,730 12.31 6,135 3.12
Industrial 13,827,815,919 7.09 2,354 1.20
Recreational 404,081,158 0.21 109 0.06
Government/Social/Institutional 1,210,386,952 0.62 1,145 0.58
Miscellaneous 451,724,691 0.23 826 0.42
Subtotal Non-Residential $40,373,176,125 20.69% 11,208 5.70%
Residential:
Single Family Residence $124,464,295,137 63.80% 139,150 70.71%
Condominium/Townhouse 14,985,342,369 7.68 29,688 15.09
Mobile Home 212,382,927 0.11 3,737 1.90
2-4 Residential Units 3,413,989,834 1.75 5,978 3.04
5+ Residential Units/Apartments 9,413,853,404 4.83 2,654 1.35
Miscellaneous Residential 27,795,222 0.01 65 0.03
Subtotal Residential $152,517,658,893 78.18% 181,272 92.12%
Vacant Parcels $2,201,820,702 1.13% 4,298 2.18%
Total $195,092,655,720 100.00% 196,778 100.00%
(1) Total Secured Assessed Valuation; excluding tax-exempt property.
Source: California Municipal Statistics, Inc.
-14-
Assessed Valuation of Single-Family Residential Properties
The following table focuses on single-family residential properties only, which comprise
approximately 64% of the assessed value of taxable property in the District. The table provides
a distribution of single-family residences in the District by assessed value. The average
assessed value is $894,461, and the median assessed value is $648,128.
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
Per Parcel 2014-15 Assessed Valuation of Single Family Homes
No. of 2014-15 Average Median
Parcels Assessed Valuation Assessed Valuation Assessed Valuation
Single Family Residential 139,150 $124,464,295,137 $894,461 $648,128
2014-15 No. of % of Cumulative Total % of Cumulative
Assessed Valuation Parcels (1) Total % of Total Valuation Total % of Total
$0 - $99,999 12,139 8.724% 8.724% $ 899,420,017 0.723% 0.723%
$100,000 - $199,999 16,307 11.719 20.443 2,318,013,697 1.862 2.585
$200,000 - $299,999 10,250 7.366 27.809 2,561,762,521 2.058 4.643
$300,000 - $399,999 8,926 6.415 34.223 3,118,494,254 2.506 7.149
$400,000 - $499,999 9,011 6.476 40.699 4,054,029,650 3.257 10.406
$500,000 - $599,999 8,962 6.441 47.140 4,924,404,391 3.956 14.362
$600,000 - $699,999 8,129 5.842 52.982 5,276,041,609 4.239 18.601
$700,000 - $799,999 7,793 5.600 58.582 5,842,600,643 4.694 23.296
$800,000 - $899,999 7,838 5.633 64.215 6,663,692,475 5.354 28.650
$900,000 - $999,999 7,057 5.072 69.286 6,695,729,603 5.380 34.029
$1,000,000 - $1,099,999 5,710 4.103 73.390 5,979,475,605 4.804 38.833
$1,100,000 - $1,199,999 4,597 3.304 76.693 5,268,231,112 4.233 43.066
$1,200,000 - $1,299,999 3,980 2.860 79.554 4,968,497,145 3.992 47.058
$1,300,000 - $1,399,999 3,524 2.533 82.086 4,750,943,995 3.817 50.875
$1,400,000 - $1,499,999 2,997 2.154 84.240 4,334,106,864 3.482 54.357
$1,500,000 - $1,599,999 2,816 2.024 86.264 4,356,939,166 3.501 57.858
$1,600,000 - $1,699,999 2,278 1.637 87.901 3,754,844,438 3.017 60.875
$1,700,000 - $1,799,999 2,119 1.523 89.424 3,703,894,191 2.976 63.851
$1,800,000 - $1,899,999 1,751 1.258 90.682 3,232,727,552 2.597 66.448
$1,900,000 - $1,999,999 1,474 1.059 91.741 2,871,412,502 2.307 68.755
$2,000,000 and greater 11,492 8.259 100.000 38,889,033,707 31.245 100.000
Total 139,150 100.000% $124,464,295,137 100.000%
(1) Improved single family residential parcels. Excludes condominiums and parcels with multiple family units.
Source: California Municipal Statistics, Inc.
-15-
Largest Secured Property Taxpayers in District
The twenty taxpayers in the District with the greatest combined secured assessed
valuation of taxable property on the 2014-15 tax roll, and the assessed valuations thereof, are
shown below.
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
Largest Local Secured Taxpayers
Fiscal Year 2014-15
2014-15 % of
Property Owner Primary Land Use Assessed Valuation Total (1)
1. Board of Trustees, Leland Stanford Jr. University Various Property Holdings $4,704,665,559 (2) 2.41%
2. Google Inc. Office Building 1,647,049,380 0.84
3. Apple Computer Inc. Office Building 919,902,506 0.47
4. Campus Holdings Inc. Manufacturing 654,540,067 0.34
5. Lockheed Missiles and Space Co. Inc. Manufacturing 635,029,323 0.33
6. Oracle Corporation Office Building 580,921,307 0.30
7. Network Appliance Inc. Office Building 564,700,634 0.29
8. Sobrato Interests Apartments 434,886,921 0.22
9. VII Pac Shores Investors LLC Office Building 410,057,593 0.21
10. Yahoo Inc. Office Building 384,728,781 0.20
11. Intuitive Surgical Inc. Office Building 352,794,364 0.18
12. Menlo & Juniper Networks LLC Office Building 341,130,138 0.17
13. Applied Materials Inc. Research and Development 337,985,697 0.17
14. HCP Life Science REIT Inc. Research and Development 332,893,961 0.17
15. Wells REIT II-University Circle LP Office Building 326,635,338 0.17
16. SPF Mathilda LLC Office Building 291,450,039 0.15
17. The Irvine Company Apartments 281,055,461 0.14
18. MT SPE LLC Office Building 276,453,512 0.14
19. Westport Office Park LLC Office Building 267,216,689 0.14
20. Tishman Speyer Archstone-Smith Apartments 251,078,164 0.13
$13,995,175,434 7.17%
(1) Based on 2014-15 Total Secured Assessed Valuation: $195,092,655.720.
(2) Net taxable value..
Source: California Municipal Statistics, Inc.
-16-
Tax Rate Areas
Contained within the District’s boundaries are numerous overlapping local agencies. The
following tables show ad valorem property tax rates for the 2014-15 tax year in the two largest
Tax Rate Areas of the District in each of San Mateo County and Santa Clara County
(representing approximately 14.42% of the assessed valuation of property within the District).
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
Assessed Valuation and Parcels by Land Use
Typical Total Tax Rates per $100 of Assessed Valuation(1)
Santa Clara County (Tax Rate Area 6-001)(2)
2010-11 2011-12 2012-13 2013-14 2014-15
General $1.00000 $1.00000 $1.00000 $1.00000 $1.00000
County Retirement Levy .03880 .03880 .03880 .03880 .03880
County Hospital Bond .00950 .00470 .00510 .00350 .00910
City of Palo Alto .01711 .01550 .01290 .01770 .01594
Palo Alto Unified School District .04450 .04560 .09510 .09140 .08510
Foothill-De Anza Community College District .03260 .02970 .02870 .02900 .02760
Total All Property $1.14251 $1.13430 $1.18060 $1.18040 $1.17654
Santa Clara Valley Water District - State Water Project .00700 .00630 .00690 .00700 .00650
Total Land and Improvement .00700 .00630 .00690 .00700 .00650
San Mateo County (Tax Rate Area 9-001)(3)
2010-11 2011-12 2012-13 2013-14 2014-15
General $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
Redwood City School District .0249 .0255 .0256 .0240 .0230
Sequoia Union High School District .0311 .0358 .0356 .0313 .0433
San Mateo Community College District Bond .0193 .0199 .0194 .0194 .0190
Total $1.0753 $1.0812 $1.0806 $1.0747 $1.0853
(1) Due to the District’s size and that it is located in two counties (Santa Cruz County excluded), there is no tax rate area that
represents the typical total tax rate for the District. The above tax rate areas are the largest in terms of assessed valuation for
each county’s portion of the district.
(2) 2014-15 assessed valuation of TRA 6-001 is $22,172,491,492, which is 10.80% of the District’s total assessed valuation.
(3) 2014-15 assessed valuation of TRA 9-001 is $7,440,799,747, which is 3.62% of the District’s total assessed valuation.
Source: California Municipal Statistics, Inc.
Appeals of Assessed Value
General. There are two types of appeals of assessed values that could adversely
impact property tax revenues within the District.
Appeals may be based on Proposition 8 of November 1978, which requires that for each
January 1 lien date, the taxable value of real property must be the lesser of its base year value,
annually adjusted by the inflation factor pursuant to Article XIIIA of the State Constitution, or its
full cash value, taking into account reductions in value due to damage, destruction,
depreciation, obsolescence, removal of property or other factors causing a decline in value. See
"APPENDIX A - DISTRICT FINANCIAL AND OPERATING INFORMATION; ECONOMIC AND
DEMOGRAPHIC INFORMATION REGARDING SAN MATEO AND SANTA CLARA
COUNTIES, RISKS AFFECTING THE DISTRICT," and "-CONSTITUTIONAL AND
STATUTORY LIMITATIONS ON DISTRICT TAX REVENUES AND APPROPRIATIONS."
-17-
Under California law, property owners may apply for a reduction of their property tax
assessment by filing a written application, in form prescribed by the State Board of Equalization,
with the applicable County board of equalization or assessment appeals board. In most cases,
the appeal is filed because the applicant believes that present market conditions (such as
residential home prices) cause the property to be worth less than its current assessed value.
Proposition 8 reductions may also be unilaterally applied by the applicable County Assessor.
Any reduction in the assessment ultimately granted as a result of such appeal applies to
the year for which application is made and during which the written application was filed. These
reductions are subject to yearly reappraisals and are adjusted back to their original values when
market conditions improve. Once the property has regained its prior value, adjusted for
inflation, it once again is subject to the annual inflationary factor growth rate allowed under
Article XIIIA. See "APPENDIX A - DISTRICT FINANCIAL AND OPERATING INFORMATION;
ECONOMIC AND DEMOGRAPHIC INFORMATION REGARDING SAN MATEO AND SANTA
CLARA COUNTIES, CONSTITUTIONAL AND STATUTORY LIMITATIONS ON DISTRICT TAX
REVENUES AND APPROPRIATIONS."
A second type of assessment appeal involves a challenge to the base year value of an
assessed property. Appeals for reduction in the base year value of an assessment, if
successful, reduce the assessment for the year in which the appeal is taken and prospectively
thereafter. The base year is determined by the completion date of new construction or the date
of change of ownership. Any base year appeal must be made within four years of the change of
ownership or new construction date.
Property Tax Collections
The District’s total secured tax collections and delinquencies are apportioned on a
County-wide basis, according to the District’s designated tax rate amount. Therefore, the total
secured tax levies, as well as collections and delinquencies reported, do not represent the
actual secured tax levies, collections and delinquencies of taxpayers within the tax areas of the
District. In addition, the District’s total secured tax levy does not include special assessments,
supplemental taxes or other charges that have been assessed on property within the District or
other tax rate areas of the Counties.
Each of Santa Clara County and San Mateo County has adopted the Alternative Method
of Distribution of Tax Levies and Collections and of Tax Sale Proceeds (the "Teeter Plan") as
provided for in the State Revenue and Taxation Code, which requires the County to pay 100%
of secured property taxes due to local agencies in the Fiscal Year such taxes are due. Under
these provisions, each county operating under the Teeter Plan establishes a delinquency
reserve and assumes responsibility for all secured delinquencies, assuming that certain
conditions are met.
The District is a participant in each of Santa Clara Coutny’s and San Mateo County’s
Teeter Plans. Because of this method of tax collection, districts located in counties operating
under the Teeter Plan and participating in the Teeter Plan are assured of 100% collection of
their secured tax levies if the conditions established under the applicable county’s Teeter Plan
are met. However, such districts are no longer entitled to share in any penalties due on
delinquent payments or in the interest that accrues on delinquent payments.
The Teeter Plan, as applicable to the District, is to remain in effect unless the Board of
Supervisors of a County orders its discontinuance or unless, prior to the commencement of any
-18-
Fiscal Year (which commences on July 1), the Board of Supervisors of such County has
received a petition for its discontinuance joined in by resolutions adopted by two thirds of the
participating revenue districts in such County, in which event the Board of Supervisors is
required to order discontinuance of the Teeter Plan effective at the commencement of the
subsequent Fiscal Year.
A County Board of Supervisors may, by resolution adopted not later than July 15 of the
Fiscal Year for which it is to apply after holding a public hearing on the matter, discontinue the
procedures under the Teeter Plan with respect to any tax levying agency or assessment levying
agency in the County if the rate of secured tax delinquency in that agency in any year exceeds
3% of the total of all taxes and assessments levied on the secured rolls for that agency. In the
event that the Teeter Plan was terminated, the amount of the levy of ad valorem taxes in the
District would depend upon the collections of the ad valorem property taxes and delinquency
rates experienced with respect to the parcels within the District.
So long as the Teeter Plan remains in effect with respect to each County, the District's
receipt of revenues with respect to the levy of ad valorem property taxes in the Counties will not
be dependent upon actual collections of the ad valorem property taxes by the Counties.
The Counties only provide secured tax charges and delinquencies as it relates to
general obligation bond debt services levies. As the Bonds are the District’s first series of
general obligation bonds, the Counties have not yet levied general obligation bond debt service
in the District.
See “APPENDIX A - DISTRICT FINANCIAL AND OPERATING INFORMATION;
ECONOMIC AND DEMOGRAPHIC INFORMATION REGARDING SANTA CLARA AND SAN
MATEO COUNTIES - Long-Term Obligations” for a description of long-term debt payable from
the District’s General Fund.
Direct and Overlapping Debt Obligations
Set forth below is a direct and overlapping debt report (the "Debt Report") prepared by
California Municipal Statistics, Inc. and effective April 1, 2015, for debt issued as of April 1,
2015, prior to the issuance of the Bonds. The Debt Report is included for general information
purposes only. The District has not reviewed the Debt Report for completeness or accuracy
and makes no representation in connection therewith.
The Debt Report generally includes long-term obligations sold in the public credit
markets by public agencies whose boundaries overlap the boundaries of the Dist rict in whole or
in part. Such long-term obligations generally are not payable from revenues of the District
(except as indicated) nor are they necessarily obligations secured by land within the District. In
many cases, long-term obligations issued by the specified public agency are payable only from
the general fund or other revenues of such public agency.
The contents of the Debt Report are as follows: (1) the first column indicates the public
agencies which have outstanding debt as of the date of the Debt Report and whose territory
overlaps the District; (2) the second column shows the percentage of the assessed valuation of
the overlapping public agency identified in column 1 which is represented by property located
within the District; and (3) the third column is an apportionment of the dollar amount of each
public agency’s outstanding debt (which amount is not shown in the table) to property in the
District, as determined by multiplying the total outstanding debt of each agency by the
percentage of the District’s assessed valuation represented in column 2.
-19-
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
Statement of Direct and Overlapping Bonded Debt
(April 1, 2015)
2014-15 Assessed Valuation: $205,320,246,305
DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT: % Applicable Debt 4/1/15
Santa Clara County 39.885% $ 318,752,943
Foothill-De Anza Community College District 93.264 592,291,021
San Mateo Community College District 37.940 204,064,082
West Valley-Mission Community College District 29.467 125,162,364
Palo Alto Unified School District 100. 293,929,249
Fremont Union High School District 85.109 239,228,725
Sequoia Union High School District 90.970 394,359,499
Other High School Districts Various 159,519,329
Belmont-Redwood Shores School District and School Facilities Improvement
Districts Nos. 1 and 2 8.050-93.749 39,477,272
Cupertino Union School District 75.157 187,455,433
Los Altos School District 100. 72,518,760
Los Gatos Union School District 98.438 97,325,651
Menlo Park City School District 100. 114,682,624
San Carlos School District 96.315 85,257,384
Saratoga Union School District 100. 37,170,075
Sunnyvale School District 100. 162,610,219
Other Unified and Elementary School Districts Various 298,603,495
Cities 0.020-100. 106,386,265
El Camino Hospital District 98.611 136,423,388
Special Districts 100. 3,518,737
Community Facilities Districts 100. 34,515,000
Santa Clara Valley Water District Benefit Assessment District 39.885 42,553,307
1915 Act Bonds (Estimate) 100. 36,610,334
TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $3,782,415,156
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Santa Clara County General Fund Obligations 39.885% $294,271,055
Santa Clara County Pension Obligations 39.885 148,150,300
San Mateo County General Fund Obligations 39.885 174,548,591
County Board of Education Certificates of Participation 37.940-39.885 7,756,046
Foothill Community College District Certificates of Participation 93.264 10,835,060
West Valley-Mission Community College District General Fund Obligations 29.467 19,147,657
Union High School District General Fund Obligations Various 11,086,417
Saratoga Union School District Certificates of Participation 100. 4,925,000
Other Unified and Elementary School District General Fund Obligations Various 5,232,540
City of Cupertino General Fund Obligations 92.670 37,049,466
City of Los Altos General Fund Obligations 100. 1,665,000
City of Palo Alto General Fund Obligations 100. 1,285,000
City of Redwood City General Fund Obligations 100. 2,378,400
City of Sunnyvale General Fund Obligations 99.994 20,858,748
Other City General Fund Obligations Various 10,160,606
Menlo Park Fire Protection District Certificates of Participation 100. 11,270,000
Santa Clara County Vector Control District Certificates of Participation 39.885 1,306,234
Midpeninsula Regional Open Space District General Fund Obligations 100. 127,086,851 (1)
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $889,012,971
Less: Santa Clara County supported obligations 206,402,056
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $682,610,915
OVERLAPPING TAX INCREMENT DEBT (Successor Agencies): 100. % $185,460,448
GROSS COMBINED TOTAL DEBT $4,856,888,575 (2)
NET COMBINED TOTAL DEBT $4,650,486,519
(1) Excludes accreted value of capital appreciation bonds.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and non-bonded capital lease
obligations.
-20-
Page 2. Midpeninsula Regional Open Space District
Ratios to 2014-15 Assessed Valuation:
Total Direct and Overlapping Tax and Assessment Debt ................... 1.84%
Combined Direct Debt ($127,086,851) ........................................... 0.06%
Gross Combined Total Debt............................................................... 2.37%
Net Combined Total Debt .................................................................. 2.26%
Ratios to Redevelopment Incremental Valuation ($10,314,662,550):
Total Overlapping Tax Increment Debt............................................... 1.80%
Source: California Municipal Statistics, Inc.
TAX MATTERS
In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California
(‘Bond Counsel"), subject, however to the qualifications set forth below, under existing law, the
interest on the Bonds is excluded from gross income for federal income tax purposes and such
interest is not an item of tax preference for purposes of the federal alternative minimum tax
imposed on individuals and corporations, provided, however, that, for the purpose of computing
the alternative minimum tax imposed on corporations (as defined for federal income tax
purposes), such interest is taken into account in determining certain income and earnings.
The opinions set forth in the preceding paragraph are subject to the condition that the
District comply with all requirements of the Internal Revenue Code of 1986, as amended (the
"Tax Code") that must be satisfied subsequent to the issuance of the Bonds. The District has
covenanted to comply with each such requirement. Failure to comply with certain of such
requirements may cause the inclusion of such interest in gross income for federal income tax
purposes to be retroactive to the date of issuance of the Bonds.
If the initial offering price to the public (excluding bond houses and brokers) at which a
Bond is sold is less than the amount payable at maturity thereof, then such difference
constitutes "original issue discount" for purposes of federal income taxes and State of California
personal income taxes. If the initial offering price to the public (excluding bond houses and
brokers) at which a Bond is sold is greater than the amount payable at maturity thereof, then
such difference constitutes "original issue premium" for purposes of federal income taxes and
State of California personal income taxes. De minimis original issue discount and original issue
premium is disregarded.
Under the Tax Code, original issue discount is treated as interest excluded from federal
gross income and exempt from State of California personal income taxes to the extent properly
allocable to each owner thereof subject to the limitations described in the first paragraph of this
section. The original issue discount accrues over the term to maturity of the Bond on the basis
of a constant interest rate compounded on each interest or principal payment date (with
straight-line interpolations between compounding dates). The amount of original issue discount
accruing during each period is added to the adjusted basis of such Bonds to determine taxable
gain upon disposition (including sale, redemption, or payment on maturity) of such Bond. The
Tax Code contains certain provisions relating to the accrual of original issue discount in the
case of purchasers of the Bonds who purchase the Bonds after the initial offering of a
substantial amount of such maturity. Owners of such Bonds should consult their own tax
advisors with respect to the tax consequences of ownership of Bonds with original issue
discount, including the treatment of purchasers who do not purchase in the original offering, the
allowance of a deduction for any loss on a sale or other disposition, and the treatment of
-21-
accrued original issue discount on such Bonds under federal individual and corporate
alternative minimum taxes.
Under the Tax Code, original issue premium is amortized on an annual basis over the
term of the Bond (said term being the shorter of the Bond's maturity date or its call date). The
amount of original issue premium amortized each year reduces the adjusted basis of the owner
of the Bond for purposes of determining taxable gain or loss upon disposition. The amount of
original issue premium on a Bond is amortized each year over the term to maturity of the Bond
on the basis of a constant interest rate compounded on each interest or principal payment date
(with straight-line interpolations between compounding dates). Amortized Bond premium is not
deductible for federal income tax purposes. Owners of premium Bonds, including purchasers
who do not purchase in the original offering, should consult their own tax advisors with respect
to State of California personal income tax and federal income tax consequences of owning such
Bonds.
In the further opinion of Bond Counsel, interest on the Bonds is exempt from California
personal income taxes.
Owners of the Bonds should also be aware that the ownership or disposition of, or the
accrual or receipt of interest on, the Bonds may have federal or state tax consequences other
than as described above. Bond Counsel expresses no opinion regarding any federal or state
tax consequences arising with respect to the Bonds other than as expressly described above.
CONTINUING DISCLOSURE
The District has covenanted for the benefit of the owners and beneficial owners of the
Bonds to provide certain financial information and operating data relating to the District by no
later than 210 days after the end of the District’s fiscal year (March 31 being the current fiscal
year-end) (the “Annual Report”), commencing with the report for the 2013-14 fiscal year, and to
provide notice of the occurrence of certain enumerated events either deemed to be material
under federal regulations or deemed by the District to be material under the facts and
circumstances. The Annual Report will be filed by the Trustee on behalf of the District with the
Electronic Municipal Market Access (EMMA) web facility operated by the Municipal Securities
Rulemaking Board. The notices of material events will be filed by the Trustee on behalf of the
District in the same manner as the Annual Reports. The specific nature of the information to be
contained in the Annual Report or the notices of significant events is set forth in the form of
Continuing Disclosure Certificate presented in “APPENDIX E.”
The District submitted its annual continuing disclosure information to its dissemination
agent each year during the past five years. However, the District’s continuing disclosure
information was not always fully linked to all of the applicable CUSIP numbers when it was
posted on EMMA. In addition, certain of the annual reports were missing updates to certain
financial data because it was not submitted in a format that could be uploaded, or did not
include updates of some of the financial and operating data that was not available to the District
and would have needed to be purchased from a third party provider. Also, the District did not
file notices of certain rating changes; however, such ratings were discussed in the
management’s discussion section of the District’s annual audited financial statements. The
District has made remedial filings to address these instances of non-compliance, and has
recently developed policies and procedures to ensure compliance with its continuing disclosure
undertakings.
-22-
Any failure by the District to comply with the provisions of the Continuing Disclosure
Certificate will not be a default under the Indenture or any other document, but Bondowners will
have any available remedy at law or in equity. Nevertheless, any failure to comply must be
reported as prescribed by Securities and Exchange Commission Rule 15c2-12 and must be
considered by any broker, dealer or municipal securities dealer before recommending the
purchase or sale of the Bonds in the secondary market. Consequently, such a failure could
adversely affect the transferability of the Bonds and an investor’s ability to sell any Bond prior to
its maturity. The Continuing Disclosure Certificate requirements for information in District Annual
Reports conforms to the District’s practice of including audited financial information of the
District and information derived from or based on such audited financial information and other
official information. Certain of the District’s prior continuing disclosure undertakings provided for
the inclusion or incorporation by reference of such reports in District Annual Reports. The
Continuing Disclosure Certificate for this issue conforms to District financial reporting practices
by limiting the specified content of District Annual Reports to the information presented in
“APPENDIX E.”
CONCLUDING INFORMATION
Underwriting
The Bonds were offered for purchase pursuant to a competitive bidding process and are
being purchased by ______________ (the "Underwriter") at a purchase price of $___________,
which represents the par amount of the Bonds ($______________) plus net original issue
premium of ($__________) and less an underwriter’s discount ($_________).
The Underwriter reserves the right to join with dealers and other underwriters in offering
the Bonds to the public. The Underwriter may offer and sell Bonds to certain dealers (including
dealers depositing Bonds into investment trusts) at prices lower than the public offering prices,
and such dealers may re-allow any such discounts on sales to other dealers. In reoffering
Bonds to the public, the Underwriter may over-allocate or effect transactions that stabilize or
maintain the market prices for Bonds at levels above those that might otherwise prevail. Such
stabilization, if commenced, may be discontinued at any time.
Legal Opinion
Bond Counsel, will render an opinion substantially in the form of Appendix C hereto with
respect to the validity of the Bonds. Jones Hall, A Professional Law Corporation, San Francisco,
California, is also serving as Disclosure Counsel to the District. Certain matters will passed
upon for the District by its General Counsel.
Fees payable to Bond Counsel and Disclosure Counsel are contingent upon issuance of
the Bonds.
-23-
Litigation
The District is not aware of any pending or threatened litigation concerning the validity of
the Bonds, or the District’s ability to receive ad valorem taxes and to collect other revenues, or
contesting the District’s ability to issue the Bonds. Furthermore, the District is not aware of any
pending or threatened litigation to restrain, enjoin, question or otherwise affect the political
existence of the District or the validity of the Resolution, or in any way contesting or affecting the
validity or enforceability of any of the foregoing or any proceedings of the District taken with
respect to any of the foregoing.
The District is routinely subject to lawsuits and claims. In the opinion of the District, the
aggregate amount of the uninsured liabilities of the District under these lawsuits and claims will
not materially affect the financial position or operations of the District.
Ratings
Fitch Ratings ("Fitch"), has assigned its municipal bond rating of "___" to the Bonds.
Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc.
("S&P"), has assigned its municipal bond rating of "___" to the Bonds.
These ratings reflect only the views of the rating agencies, and explanations of the
significance of these ratings, and any outlooks assigned to or associated with these ratings,
should be obtained from the respective rating agencies.
Generally, a rating agency bases its rating on the information and materials furnished to
it and on investigations, studies and assumptions of its own. The District has provided certain
additional information and materials to the rating agencies (some of which does not appear in
this Official Statement).
There is no assurance that these ratings will continue for any given period of time or that
these ratings will not be revised downward or withdrawn entirely by the rating agencies, if in the
judgment of the rating agencies, circumstances so warrant. Any such downward revision or
withdrawal of any rating on the Bonds may have an adverse effect on the market price or
marketability of the Bonds.
-24-
Financial Statements
Chavan & Associates, LLP, Certified Public Accountants (the "Auditor"), audited the
financial statements of the District for the Fiscal Year ended March 31, 2015. The Auditor’s
examination was made in accordance with generally accepted auditing standards and
Governmental Auditing Standards, issued by the Comptroller General of the United States. See
"APPENDIX B – ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED MARCH 31,
2015."
The District has not requested nor did the District obtain permission from the Auditor to
include the audited financial statements as an appendix to this Official Statement. Accordingly,
the Auditor has not performed any post-audit review of the financial condition or operations of
the District.
Miscellaneous
All of the descriptions of applicable law, the Resolution, the District, and the agreements
and other documents contained herein are made subject to the provisions of such documents
respectively and do not purport to be complete statements of any or all of such provisions.
Reference is hereby made to such documents on file with the District for further information in
connection therewith.
This Official Statement does not constitute a contract with the purchasers of the Bonds.
Any statements made in this Official Statement involving matters of opinion or estimates,
whether or not so expressly stated, are set forth as such and not as representations of fact, and
no representation is made that any of the estimates will be realized.
The execution and delivery of this Official Statement has been duly authorized by the
Board of Directors of the District.
MIDPENINSULA REGIONAL OPEN
SPACE DISTRICT
By:
General Manager
A-1
APPENDIX A
DISTRICT FINANCIAL AND OPERATING INFORMATION;
ECONOMIC AND DEMOGRAPHIC INFORMATION REGARDING
SANTA CLARA AND SAN MATEO COUNTIES
The information in this appendix concerning the operations of the District, the District’s
finances, risks and Constitutional and statutory limitations affecting the District, and the
Counties' economic and demographic characteristics is provided as supplementary information
only, and it should not be inferred from the inclusion of this information in this Official Statement
that the principal of or interest on the Bonds is payable from the general fund of the District or
either of the Counties. The Bonds are payable from the proceeds of an ad valorem tax
approved by the voters of the District pursuant to all applicable laws and Constitutional
requirements, and required to be levied on property within the District in an amount
sufficient for the timely payment of principal and interest on the Bonds. See "SECURITY
AND SOURCE OF PAYMENT FOR THE BONDS" in the Official Statement.
DISTRICT GENERAL INFORMATION
Objectives and Operations
In 1972, the citizens of northwestern Santa Clara County voted to establish the
Midpeninsula Regional Park District. In 1976, voters approved expansion of the District to
include southeastern San Mateo County. Later, the District became the “Midpeninsula Regional
Open Space District”. With the final approval of the Coastside Protection Program in 2004, the
District’s boundary was extended to the Pacific Ocean in San Mateo County, from the southern
borders of Pacifica to the San Mateo County/Santa Cruz County border.
The District’s boundaries include approximately 200 square miles in Santa Clara County
and 350 square miles in San Mateo County. Since 1992, the District has added 2.6 square
miles in Santa Cruz County, but presently no property taxes on this land go to the District. The
District’s territories appear on the map in the forepart of this Official Statement and vary from flat
terraces along the Pacific Ocean to rugged, forested ridges and canyons, to rolling and level
areas facing San Francisco Bay. The District includes 17 cities (Atherton, Cupertino, East Palo
Alto, Half Moon Bay, Los Altos, Los Altos Hills, Los Gatos, Menlo Park, Monte Sereno,
Mountain View, Palo Alto, Portola Valley, Redwood City, San Carlos, Saratoga, Sunnyvale, and
Woodside).
The Board originates, guides and enforces District policies, which are administered by a
125-person staff headed by Stephen E. Abbors, the General Manager. Mr. Abbors joined the
District in early 2008 after a 24-year career managing watersheds and recreation for the East
Bay Municipal Utility District, headquartered in Oakland, California. Prior to that, he was
employed for over a decade by the East Bay Regional Park District, also headquartered in
Oakland and the largest regional park district in the United States. He holds Bachelors and
Masters Degrees in Biological Sciences from California State University, East Bay. Other key
staff include Michael L. Foster, who has served as District Controller since 1978. Mr. Foster
received an undergraduate degree in economics and a Master of Business Administration
degree from Stanford University.
A-2
The District’s chief method for preserving open space is to buy land, using District
revenues as well as State and federal grants, receive gifts of open space land and undertake
joint projects with other governmental agencies and private nonprofit corporations. The District
also has the power of eminent domain except within the 220 square mile Coastside Protection
Area in San Mateo County, but the District cannot regulate land it does not own. The District
cannot adopt zoning or other land use restrictions; this power lies mainly with the local
jurisdictions within the District’s territory.
As part of the District’s 2011 Strategic Plan, the Board of Directors unanimously
approved the District’s revised strategic direction for a more balanced implementation of its
three-part mission statement to achieve beneficial impacts in (i) land preservation, (ii) resource
restoration and (iii) public access and recreation. This strategic direction served as the policy
foundation for the development of the District’s 2014 Vision Plan, a 40-year plan that identified
54 projects located across the District’s jurisdiction, aiming to expand public access to new
areas, improve recreational facilities, protect important open space, scenic, and agricultural
lands, and restore sensitive natural habitats.
Of the projects identified in the 2011 Strategic Plan, the highest priority projects were
identified to be financed with proceeds of the District’s general obligation bonds, including the
Bonds.
A-3
DISTRICT FINANCIAL INFORMATION
[TO BE UPDATED WITH 2014-15 AUDITED FINANCIALS]
The District keeps its books using the California State Controller’s fund accounting
principles for special districts, with a modified accrual basis of accounting in which the District
generally recognizes revenues when they become both available and measurable and
expenditures when it incurs the obligation (except for interest on long-term debt, which the
District recognizes when it falls due). The District’s fiscal year is April 1 through March 31. The
District’s certified public accountants are currently Chavan & Associates, LLP. See “APPENDIX
B” for the District’s audited financial statements for the fiscal year ending March 31, 2015.
Over the last six fiscal years, property taxes comprised 91% to 95% of the District’s total
revenues, excluding land donations and land acquisition grants. The District’s primary
expenditures are for debt service, capital expenditures for land and preserve improvements,
and land management and administrative expenses. The capital expenditures are made at the
District’s discretion and a majority of such future capital spending will be funded by up to $300
million of general obligation bonds, including the Bonds, which were approved by the voters on
November 4, 2014. Land management and administrative expenses increase subject to
changing management policy and controls. Over the last six fiscal years, administrative and
land management expenses were 50% to 56% of limited property tax revenue allocated to the
District. Over the same period, District employee salaries and benefits comprised, on average,
71% of administrative and land management expenses and 39% of limited property tax
revenue.
Driven by the strong economy in Silicon Valley, District property tax revenue increased
above its long-term trend line in fiscal 2014, growing by $2.2 million, or 7.1%. Tax revenue also
exceeded budget by $0.7 million, or 2.2%. The assessed valuation of secured and unsecured
property within the District for fiscal year 2014-15 increased by 6.1% over the prior fiscal year.
District tax revenue growth never exactly matches the rate of increase in assessed valuation
because the District’s hybrid fiscal year spans two tax years and redevelopment-related taxes
include some one-time distributions. The District received 67% of its tax revenue from Santa
Clara County and 33% from San Mateo County.
The District purchased $3.6 million of land and associated structures in fiscal 2014,
highlighted by a 148-acre addition to the Monte Bello Open Space Preserve. Over the last six
fiscal years, the District acquired a total of $88.3 million of land.
The District manages its expenditures within the annual budget. Excluding land
acquisition transactions and debt service, total District spending of $21.9 million in fiscal 2014
was $3.0 million, or 12.0%, below budget. As in most recent years, a large majority of the
budget variance was due to delays and deferrals of capital projects; the District spent 95% of
the amount it budgeted for salaries and benefits, and 90% of the amount it budgeted for
services and supplies.
Under California law, the District may acquire land or facilities by borrowing money or by
purchasing on contract, subject to certain limits (based on tax revenues projected for the five
years following the borrowing). The law limits the annual interest rate to 12%. For purchase
money financings using District promissory notes, the borrowing term may not exceed 30 years.
The District has never defaulted in the payment of any of its debt or other obligations.
A-4
The District budget for fiscal year 2015-16, adopted on ________, 2015, is shown in
Table 5.
On November 25, 2014, the District’s Board of Directors adopted a new reserve policy
(the Reserve Policy). The stated purpose of the Reserve Policy is to (i) provide adequate
funding to meet the District’s short-term and long-term plans, (ii) provide funds for unforeseen
expenditures related to emergencies, such as natural disasters, (iii) strengthen the financial
stability of the District against present and future uncertainties such as economic downturns and
revenue shortfalls, and (iv) maintain an investment-grade bond rating. This policy has been developed,
with input from the District auditors, to meet the requirements of GASB 54.
The Reserve Policy contemplates:
• a non-spendable fund balance, which shall be equal to the sum of the District’s
non-spendable assets;
• a restricted fund balance, which will include amounts reserved for specific,
externally imposed purposes;
• a committed fund balance, which will include amounts reserved for specific,
internally imposed purposes;
• an assigned fund balance, which included amounts intended for specific
purposes that are neither restricted nor unassigned; and
• an unassigned balance for amounts which are not otherwise classified.
Any spending from the unassigned fund will require approval of the board of directors of the
District and will be reimbursed from the general fund within two years. The general fund has a
minimum balance requirement of $10 million. The Reserve Policy may be changed by the
District at any time.
The following two tables present selected audited cash flow, balance sheet and budget
information.
A-5
TABLE A-1
DISTRICT GENERAL FUND AND DEBT SERVICE FUND REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
2009/10 -2014/15 (AUDITED) – 2015/16 (BUDGETED)
(IN THOUSANDS)
2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
2015/16
(budgeted)
REVENUES:
Property Taxes $27,631 $27,269 $28,737 $30,270 $32,433 $34,080 $36,305
Development Grants 159 143 450 538 1,676 813 0
Interest 80 294 375 288 150 186 145
Other(a) 1,135 1,506 1,560 1,527 1,567 1,584 1,761
TOTAL OPERATING REVENUES $29,005 $29,211 $31,121 $32,623 $35,826 $36,663 $38,211
EXPENDITURES:
Salaries and Benefits 9,935 10,910 11,179 11,836 13,079 13,400 14,878
Services and other(b) 3,840 3,325 4,613 5,567 5,259 7,000 8,859
SUBTOTAL $13,774 $14,235 $15,791 $17,403 $18,337 $20,400 $23,737
DEBT SERVICE:
Principal Repayment 2,900 3,301 4,457 2,843 2,999 3,145 4,361
Interest 4,919 4,786 5,355 6,034 5,859 5,749 5,522
SUBTOTAL DEBT SERVICE $7,819 $8,087 $9,812 $8,877 $8,858 $8,894 $9,883
SUBTOTAL EXPENDITURES 21,593 22,321 25,603 26,280 27,196 29,294 33,620
OPERATING CASH FLOW $7,412 $6,890 $5,518 $6,343 $8,630 $7,369 $4,591
OTHER NON-OPERATING ITEMS (NET) 2,520 -1,971 -5,310
STRUCTURES & IMPROVEMENTS 609 1,197 1,398 2,206 3,561 2,950 1,500
PROPERTY ACQUISITION (NET)(c) 14,484 8,579 9,066 5,820 3,410 4,003 1,003
EXCESS OF REVENUES OVER
EXPENDITURES (7,681) (2,886) (4,946) (4,202) 3,630 416 7,398
PROCEEDS FROM NOTES PAYABLE 0 850 20,000 0 0 0 0
NET EXCESS ($7,681) ($2,036) $15,054 ($4,202) $3,630 $416 $7,398
STARTING FUND BALANCE 38,012 30,331 28,295 43,349 39,147 42,776 43,192
ENDING FUND BALANCE $30,331 $28,295 $43,349 $39,147 $42,776 $43,192 $50,591
(a) Excludes donations of land.
(b) Excludes Structures & Improvements.
(c) Cost of land acquired net of associated grant and gift income
Sources: District audited financial statements and District Controller.
A-6
TABLE A-2
DISTRICT STATEMENT OF NET ASSETS
(IN THOUSANDS)
MARCH 31,
2015
MARCH 31,
2014
ASSETS:
Cash and Cash Investments $32,712
Restricted Cash 1,619
Taxes and Other Receivables 10,383
Deferred Charges 1,143
Net OPEB Assets 1,004
Land (at Cost) 383,509
Construction in Progress 4,710
Equipment & Vehicles 2,490
Structures and Improvements 7,202
Infrastructure 7,012
Total Assets $451,784
LIABILITIES:
Accounts Payable $744
Accrued Liabilities/Deposits 2,696
Notes Payable:
Due within One Year 3,309
Due in more than One Year 133,888
Total Liabilities $140,637
NET ASSETS:
Invested in capital assets, net
Of related debt $268,869
Restricted 4,327
Unrestricted 37,951
Total net assets $311,147
Source: District audited financial statements.
A-7
Long-Term Debt of the District
Set forth below is a table presenting the long-term obligations payable from the District’s
General Fund (each, a "Long-Term Obligation") of the District, outstanding at March 31, 2015:
TABLE A-3
DISTRICT GENERAL FUND DEBT OUTSTANDING
(IN THOUSANDS)
ORIGINAL
AMOUNT
OBLIGATION
OUTSTANDING
3/31/2015
2015/16
DEBT
SERVICE
FINAL
PAYMENT
Bear Creek $1,500 1,500 75 Apr. 2023
Sierra Azul 240 62 25 Oct. 2017
Russian Ridge 850 850 876 Nov. 2015
2012 Refunding Notes (a) 31,265 49,935 5,047 Sep. 2041
2007 Notes, Series A 52,415 20,385 1,174 Sep. 2027
2011 Revenue Bonds 20,500 33,230 1,033 Sep. 2041
2015 Refunding Notes 23,630 23,630 1,653 Sep. 2034
Total $138,670 $129,592 $9,883
(a) Outstanding balance for 2012 Refunding Notes include accreted interest of $2,924,794 as of March
31, 2015.
Source: District Controller.
Promissory Notes.
Daloai Land Purchase Contract Promissory Note. During the fiscal year ending 2003 the
District entered into a land purchase contract promissory note in the amount of $240,000. The
promissory note bears interest at a fixed rate of 6.25% and matures October 10, 2017. At March
31, 2015, the outstanding balance of the Daloia Land Contract note was $_______.
Hunt Living Trust Promissory Note. On April 1, 2003, the District entered into a
$1,500,000 promissory note with the Hunt Living Trust as part of a lease and management
agreement. The note is due in full on April 1, 2023 and bears interest at 5.5% semi-annually
through April 1, 2013 and 5.0% per annum until the maturity, or prior redemption, of the note. At
March 31, 2015, the outstanding balance on the note was $_______.
2005 Refunding Promissory Note. On June 30, 2005, the District issued $4,630,000 of
2005 Refunding Promissory Notes for the purpose of refunding all of its outstanding 1995
Promissory Notes. The 2005 notes bear interest rates from 3.25% to 5.00%. Principal and
interest rates are due semi-annually on March 1 and September 1. At March 31, 2015, the
outstanding balance was $______.
2010 Bergman Note. On Nov 30, 2010, the District issued a promissory note with
Principal of $850,000 and interest of 4% to finance the purchase of land. Interest is due on a
quarterly basis beginning February 28, 2011 and mature on November 30, 2015. The principal
is due in full at maturity. At March 31, 2015, the outstanding balance was $_______.
2012 Refunding Promissory Notes. On January 19. 2012, the District advance refunded
$34,652,643 in 1999 lease revenue bonds by issuing $31,264,707 in promissory notes. The
2012 notes bear interest rates ranging from 2.00% to 6.04%. The notes are a blend of current
A-8
interest and capital appreciation notes maturing through 2042. The net proceeds of $33,295,663
(after payment of $278,683 in underwriting fees, insurance, and other issuance costs and a
premium of $2,309,638) were used to purchase U.S government securities. Those securities
were deposited in an irrevocable trust with an escrow agent to provide for all future debt service
payments on the 1999 Series bonds. As a result, the 1999 Series bonds are considered to be
defeased and the liability for those bonds has been removed from the long-term debt in the
financial statements. At March 31, 2015, the outstanding balance of the notes, including
accreted interest of $1,918,995, was $_________.
2015 Refunding Promissory Notes (2004 Project Lease). On January 22. 2015, the
District current refunded $31,900,009.95 of the Authority’s 2004 Revenue Bonds by issuing
$23,630,000 in promissory notes. The 2015 notes bear interest rates ranging from 2.00% to
5.00%. The final maturity of the notes is September 1, 20134. The net proceeds of
$30,904,975.22 (after payment of $253,008.62 in underwriting fees, and other issuance costs
and a premium of $4,948,499.70) together with $2,326,475.22 of funds related to the 2004
Revenue Bonds, were used to purchase U.S government securities. Those securities were
deposited in an irrevocable trust with an escrow agent to redeem the 2004 Revenue Bonds in
full on March 1, 2015. At March 31, 2015, the outstanding balance of the notes was
$23,630,000.
Revenue Bonds.
2007 Series A Revenue Refunding Bonds and Series B-T Taxable Revenue Refunding
Bonds. On December 15, 2006 the District issued six series of promissory notes (2007 District
Notes) for the purpose of refunding its 1996 Project Lease, 1996 Promissory Notes, 1999
Project Lease, and 1999 Promissory Notes. On December 15, 2006 the Authority, on behalf of
the District, issued $52,415,000 of 2007 Series A Revenue Refunding Bonds and $6,785,000 of
2007 Series B-T Taxable Revenue Refunding Bonds for the purpose of defeasing the aggregate
purchase price of the2007 District Notes. The Series A bonds bear interest from 4.0% to 5.0%
and Series B-T bonds bear interest at 5.15%. Interest for both series A and B-T are due
semiannually on March 1 and September 1. Principal payments for the Series A bonds began
September, 2012 and are due annually, thereafter. Principal payments for the Series B-T bonds
are due annually on September 1. At March 31, 2015 the outstanding balance of the 2007
Series A Bonds is $_________. There is no remaining balance on the 2007 Series B-T Bonds.
2011 Revenue Bonds. On May 19, 2011, the Authority, on behalf of the District, issued
$20,500,000 of 2011 Revenue Bonds for the purpose of acquiring land to preserve and use as
open space and pay bond issue and related costs. The Bonds are not general obligations. Each
year, the District will appropriate revenues-mainly limited properly tax collections that Santa
Clara County and San Mateo County allocate to the District – to pay its obligations under a
Lease Agreement for use and occupancy of District land in addition to other District debt and
lease obligations unrelated to this financing. The Current Interest Bonds bear interest at 2.0% to
6.0% and are due semi-annually on March 1 and September 1. Principal payments on the
Current Interest Bonds are due annually September 1. At March 31, 2015, the outstanding
balance of these bonds was $_________.
The following table shows the District’s tax receipts for the past ten fiscal years of the
State (ended each June 30).
A-9
TABLE A-4
DISTRICT TAX RECEIPTS FOR PAST TEN STATE FISCAL YEARS
ENDING JUNE 30
DISTRICT SECURED AND UNSECURED TAX RECEIPTS (a,b)
STATE
FISCAL
YEAR (c)
CURRENT TAX RECEIPTS
SANTA CLARA
COUNTY
SAN MATEO
COUNTY TOTAL DISTRICT
2004/05 $11,621,394 $6,060,412 $17,681,806
2005/06 12,535,575 6,618,709 19,154,284
2006/07 15,009,587 7,676,989 22,686,576
2007/08 16,161,599 8,146,356 24,307,955
2008/09 17,641,902 8,737,514 26,379,416
2009/10 18,059,222 9,057,026 27,116,248
2010/11 17,836,555 9,020,424 26,856,979
2011/12 18,115,962 9,076,982 27,192,944
2012/13 19,141,070 9,455,338 28,596,408
2013/14 20,866,158 10,059,271 30,925,429
(a) The District also receives a share of delinquent taxes, redemption fees, supplemental taxes
and State subvention payments from each County in the District. This revenue totaled
$967,353 in 2013/14 and $646,240 in 2012/13.
(b) During 2013/14 and 2012/13, the District received $960,675 and $972,960, respectively,
related to the dissolution of redevelopment agencies within the District.
(c) Santa Clara County and San Mateo County both provide property tax receipt based on their
fiscal year ending June 30. The District’s fiscal year ends March 31.
Source: District Controller.
A-10
The following two tables present projected revenues for the District and historical and
projected debt service coverage for the District’s long-term general fund debt.
TABLE A-5
PROJECTED REVENUES FOR DISTRICT FISCAL YEARS ENDING MARCH 31
(IN THOUSANDS)
FISCAL
YEAR
TAX
REVENUES (a)
OTHER
REVENUE (b)
OPERATING
REVENUE
2014/15 $34,080 $1,770 $35,850
2015/16 36,310 1,910 38,220
2016/17 37,399 1,950 39,349
2017/18 38,521 1,980 40,501
2018/19 39,677 2,020 41,697
(a) Projected revenues reflect report assessed valuation for 2014/15 and 2015/16, and assume 3%
annual growth in 2016/17 and thereafter. Projected revenues do not include any future
development grants or tax levies for general obligation bonds.
(b) Includes revenues from property management and interest.
Source: District Controller.
TABLE A-6
HISTORICAL AND PROJECTED MAXIMUM ANNUAL DEBT SERVICE COVERAGE
(IN THOUSANDS)
2014/15 2015/16 2016/17 2017/18 2018/19
Projected Tax Revenues (a) $34,080 $36,310 $37,399 $38,521 $39,677
Senior Debt Service (b)* 5,569 8,415 8,415 8,415 8,415
Senior Coverage 6.12 4.31 4.44 4.58 4.72
Operating Revenue after Senior Debt (c) $30,281 $29,805 $30,934 $32,086 $33,282
Subordinate Obligations 3,324 2,149 1,944 1,994 1,944
Net Revenue Coverage 4.03 3.62 3.80 3.91 4.03
(a) From Table A-5.
(b) Includes the 2005 Notes and 2007B Bonds (both no longer outstanding) and the 2007A
Bonds, 2012 Promissory Notes and the 2015 Refunding Promissory Notes.
(c) Includes projected Other Revenue from Table A-5 .
Source: District Controller.
A-11
See “APPENDIX B” for the District’s audited financial statements for the fiscal year
ended March 31, 2015. The District has not requested, and the auditor has not provided, any
update or review of such statements in connection with their presentation in this Official
Statement.
Redevelopment Agencies Dissolution
The California Legislature adopted a bill, "ABX1 26," during the Fiscal Year 2011-12
State budget process, that purported to amend the California Community Redevelopment Law
to dissolve redevelopment agencies on a State-wide basis. On December 29, 2011, the
California Supreme Court upheld ABx1 26 in the face of an expedited legal challenge. As a
result, all California redevelopment agencies, including redevelopment agencies of cities
located within the District, were dissolved as of February 1, 2012, and such redevelopment
agencies were to cease operations and dismantle, and to transfer assets and responsibilities to
a successor entity as of the same date.
According to additional "trailer bill" legislation (AB 1484) effective on July 1, 2012, which
further amended the Community Redevelopment Law, each County Auditor-Controller, the
State Department of Finance and the State Controller may require the return of funds improperly
spent or transferred to a public entity in conflict with the provisions of ABx1 26 and AB 1484
(together, the "Dissolution Law") and, if funds are not returned within 60 days, the funds may
be recovered through an offset of sales and use tax or property tax allocations to the local
agency.
As a consequence of the operation of the Dissolution Law, the District, as well as
counties, school districts and other special districts, may receive higher amounts of ad valorem
property tax allocations, due to future receipt of property tax increment amounts that had
previously funded redevelopment agencies. However, such tax increment amounts may
currently be pledged to secure redevelopment agency bonds or otherwise contractually
encumbered, and the District cannot predict when its property tax receipts might increase or by
how much.
District Organization and Employee Relations
The District has 125 employees, represented by the following labor organizations:
[CONFIRM/UPDATE]
Labor Organization Represented Employees Contract Expiration
MROSD Employees Field
Assn
The terms and conditions of all expired Labor Organization contracts remain in full force
following the termination date of each agreement, pending renegotiation of subsequent
agreements.
Employee Retirement Systems
All permanent District employees are eligible to participate in the pension plan offered by
the California Public Employees' Retirement System ("CALP ERS"), an agent multiple employer
defined benefit plan which acts as a common investment and administrative agent for its
participating member employers. CALPERS provides retirement and disability benefits, annual
A-12
cost of living adjustments and death benefits to plan members, who must be public employees
and beneficiaries. Benefit provisions are established by State statute and District resolution.
Benefits are based on years of credited service, equal to one year of full time employment.
Funding contributions are determined annually on an actuarial basis as of June 30 by
CALPERS; the District must contribute these amounts.
The plan’s provisions and benefits in effect at March 31, 2015 are summarized as
follows: [update]
Benefit vesting schedule 5 years of service
Benefit payments Monthly for life
Retirement age 55
Monthly benefits, as a % of annual salary 2.0-2.5%
Required employee contribution rate 7.89%
Required employer contribution rate 17.04%
CALPERS determines contribution requirements using a modification of the Entry Age
Normal Method. Under this method, the District's total normal benefit cost for each employee
from date of hire to date of retirement is expressed as a level percentage of the related total
payroll cost. Normal benefit cost under this method is the level amount the District must pay
annually to fund an employee's projected retirement benefit. This level percentage of payroll
method is used to amortize any unfunded actuarial liabilities. The actuarial assumptions used to
compute contribution requirements are also used to compute the actuarial accrued liability. The
District does not have a net pension obligation since it pays these actuarially required
contributions bi-weekly.
CALPERS uses the market related value method of valuing the Plan's assets. An
investment rate of return of 7.50% is assumed, including inflation at 2.75%. Annual salary
increases are assumed to vary by duration of service. Changes in liability due to plan
amendments, changes in actuarial assumptions, or changes in actuarial methods are amortized
as a level percentage of payroll on a closed basis over twenty years. Investment gains and
losses are accumulated as they are realized and ten percent of the net balance is amortized
annually.
As required by State law, effective July 1, 2005, the District's Miscellaneous Plan was
terminated, and the employees in the plan were required by CALPERS to join new State-wide
pools. One of the conditions of entry to these pools was that the District true-up any unfunded
liabilities in the former Plans, either by paying cash or by increasing its future contribution rates
through a Side Fund offered by CALPERS. The District initially satisfied its Miscellaneous Plan's
unfunded liability of $2,510,958 by agreeing to contribute that amount to the Side Fund through
an addition to its normal contribution rates over the next 21 years. In 2013, the District made a
one-time payment of $2,510,958 to eliminate the liability. The required contributions
representing annual pension cost, for the year ended March 31 were as follows: [update for
2015]
Fiscal Year Ending
Annual Pension Cost (APC)
Percentage of APC
Contributed
3/31/2015 $ %
3/31/2014 1,461,069 100%
3/31/2013 4,298,913 100%
A-13
The latest available actuarial values of the State-wide pools (which differs from market
value) and funding progress are set forth below. The information presented below relates to the
State-wide pools as a whole, of which the District is one of the participating employers:
Valuation
Date
Accrued
Liability Value of Assets
Unfunded
(Overfunded)
Liability
Funded
Ratio
Annual
Covered
Payroll
Unfunded
(Overfunded)
Liability as %
of Payroll
6/30/2012 $2,254,622,362 $1,837,489,422 $417,132,490 81.5% $339,282,272 122.97%
Audited annual financial statements are available from CALPERS at PO Box 942709,
Sacramento, CA 94229-2709.
Pension Reform Act of 2013 (Assembly Bill 340). On September 12, 2012, the
State’s Governor signed AB 340, a bill that enacted the California Public Employees’ Pension
Reform Act of 2013 ("PEPRA") and that also amended various sections of the California
Education and Government Codes, including the County Employees Retirement Law of 1937.
AB 340 (i) increased the retirement age for new State, school, and city and local agency
employees depending on job function, (ii) capped the annual CALPERS pension benefit payout,
(iii) addressed numerous abuses of the system, and (iv) required State, school, and certain city
and local agency employees to pay at least half of the costs of their CALPERS pension
benefits. PEPRA applies to all public employers except the University of California, charter
cities and charter counties (except to the extent they contract with CALPERS.)
The provisions of AB 340 became effective on January 1, 2013 with respect to State
employees hired on that date and after; local government employee associations, including
employee associations of the District, will have a five-year window to negotiate compliance with
AB 340 through collective bargaining. If no deal is reached by January 1, 2018, a city, public
agency or school district could force employees to pay their half of the costs of CALPERS
pension benefits, up to 8 percent of pay for civil workers and 11 percent or 12 percent for public
safety workers.
CALPERS predicts that the impact of AB 340 on employers, including the District, and
employees will vary, based on each employer’s current level of benefits. To the extent that the
new formulas lower retirement benefits, employer contribution rates could decrease over time
as current employees retire and employees subject to the new formulas make up a larger
percentage of the workforce. This change would, in some circumstances, result in a lower
retirement benefit for employees than they currently earn. Additionally, CALPERS notes that
changes arising from AB 340 could ultimately have an adverse impact on public sector
recruitment in areas that have historically experienced recruitment challenges due to higher pay
for similar jobs in the private sector.
More information about AB 340 can be accessed through CALPERS’s website at
www.calpers.ca.gov/index.jsp?bc=/member/retirement/pension-reform-impacts.xml&pst=ACT&
pca=ST. The reference to this internet website is shown for reference and convenience only; the
information contained within the website may not be current and has not been reviewed by the
District and is not incorporated herein by reference.
The District is unable to predict what the amount of PERS liabilities will be in the future
or the amount of the CALPERS contributions which the District may be required to make, all as
a result of the implementation of AB 340, and as a result of negotiations with its Labor
Organizations.
A-14
Other Post-Employment Retirement Benefits
The District joined the California Employers' Retiree Benefit Trust (CERBT), an agent
multiple-employer plan administered by CALPERS, consisting of an aggregation of single-
employer plans. The District Board authorized a deposit of $1,900,000 in CERBT on June 5,
2008, to begin funding its OPEB liability.
By Board resolution and through agreements with its labor unit, the District provides
certain health care benefits for retired employees (spouse and dependents are not included)
under third-party insurance plans. A summary of eligibility and retiree contribution requirements
are shown below:
Eligibility
Service or disability retirement from the District
Age 50 and 5 years of service
Continue participated in Public Employees Medical
and Hospital Care Act (PEMHCA)
Retiree Medical Benefit
District pays retiree premiums up to:
$350 per month effective 1/1/2009
Must be at least equal to statutory PEMHCA minimum
($115 in 2013, $119 in 2014)
PEHMCA Administrative Fee District pays CALPERS administrative fees (0.33% of
premiums for 2013-14)
Surviving Spouse Continuation Retiree benefit continues to surviving spouse if retiree
elects survivor annuity under CALPERS retirement plan
Other OPEB None
As of March 31, 2015, approximately __ active employees and __ retirees were eligible
to receive retirement health care benefits.
Funding Policy. In accordance with the District's budget, the Annual Required
Contribution (ARC) is to be funded throughout the year as a percentage of payroll. Concurrent
with implementing Statement No. 45, the District’s Board of Directors passed a resolution to
participate in CERBT, an irrevocable trust established to fund OPEB. CERBT is managed by an
appointed board not under the control of the District. This Trust is not considered a component
unit by the District. Separately issued financial statements for CERBT may be obtained from
CALPERS at P.O. Box 942709, Sacramento, CA 94229-2709.
Annual OPEB Cost and Net OPEB Assets. The District's annual OPEB cost (expense)
is calculated based on the Annual Required Contribution ("ARC ") of the employer, an amount
actuarially determined in accordance with the parameters of GASB Statement 45. The ARC
represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost
each year and amortize any UAAL (or funding excess) over a period not to exceed 30 years.
The following table shows the components of the District’s annual OPEB cost for the year, the
amount actually contributed to the plan and changes in the District’s net OPEB obligation at
March 31, 2015: [update for 2015]
A-15
Annual Required Contribution
Interest on net OPEB asset
Adjustment to Annual Required Contribution
Annual OPEB cost (expense)
Contributions made (benefit payments)
Decrease/(Increase) in net OPEB asset
Net OPEB asset – beginning of year
Net OPEB asset – end of year
The District’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for the last three Fiscal Years are as follows:
Fiscal Year Ended
March 31
Annual OPEB
Cost
Percentage
Contributed
Net
OPEB Asset
2013 $237,000 0% $(1,097,306)
2014 265,000 65% (1,003,925)
2015
Source: Midpeninsula Regional Open Space District Annual Financial Report for the year ended March 31, 2015.
Funded Status and Funding Progress. Based upon the most recent actuarial valuation
for June 30, 2013, the most recent actuarial valuation date, the AAL for OPEB benefits was
$2,786,000. The 2013 actuarial value of plan assets was $2,339,701. UAAL was reported at
$446,299. The estimated annual covered payroll was $8,043,000, resulting in a UAAL as a
percent of payroll of 6%.
Actuarial Methods and Assumptions. The ARC was determined as part of a June 30,
2013 actuarial valuation using the entry age normal actuarial cost method. This is a projected
benefit cost method, which takes into account those benefits that are expected to be earned in
the future as well as those already accrued. The actuarial assumptions included (a) 6.25% to
7.25% investment rate of return, (b) 3.25% projected annual salary increase, and (c) health
inflation increases of 0% for 1 year, 1.5% for the next 5 years, and 3% thereafter. The actuarial
methods and assumptions used include techniques that smooth the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets. Actuarial calculations
reflect a long-term perspective and actuarial valuations involve estimates of the value of
reported amounts and assumptions about the probability of events far into the future. Actuarially
determined amounts are subject to revision at least biannually as results are compared to past
expectations and new estimates are made about the future. The District's OPEB unfunded
actuarial accrued liability is being amortized as a level percentage of projected payroll using a
30 year open amortization period.
Joint Powers Agreements
The District is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; injuries to employees; and natural disasters. Prior to July 1, 2002, the
District managed and financed these risks by purchasing commercial insurance. On July 1,
2002, the District joined the California Joint Powers Insurance Authority (CAL JPIA). CAL JPIA
is composed of 117 California public entities and is organized under a joint powers agreement
pursuant to California Government Code Section 6500 et seq. The purpose of CAL JPIA is to
A-16
arrange and administer programs for the pooling of self-insurance losses, to purchase excess
insurance or reinsurance, and to arrange for group-purchased insurance for property and other
coverages. CAL JPIA's pool began covering claims of its members in 1978. Each member
government has an elected official as its representative on the Board of Directors. The Board
operates through a 9-member Executive Committee.
Self-Insurance Programs Administered by the CAL JPIA.
The District is a pool member of the following insurance programs:
General and Automobile Liability. General Liability (GL) coverage includes bodily injury,
personal injury, or property damage to a third party resulting from a member activity, including
automobile liability. Members provide pool funding through annual contributions and
retrospective deposits. Annual contributions are posted each April; each member’s share of cost
is determined by their exposure (payroll) and experience (claims) relative to other members.
Retrospective adjustments, calculated each October, are based on the on-going claim
development of past coverage periods, and can result in either an additional deposit or a refund.
Costs are spread to members as follows: the first $30,000 to $750,000 are pooled
based on a member’s share of costs under $30,000; costs in excess of $750,000 are shared by
the members based upon each member’s payroll. Costs of covered claims above $5,000,000
are currently paid by reinsurance. The protection for each member is $50,000,000 per
occurrence, and $50,000,000 annual aggregate.
Worker’s Compensation. Workers’ Compensation (WC) coverage includes benefits to
employees who are injured or become ill as a result of their work activities. WC losses are
pooled by Cal JPIA members to $2,000,000; coverage above $2,000,000 is purchased with
statutory limits. The District is charged for the first $50,000 of each claim. Costs from $50,000 to
$100,000 per claim are pooled based on the member’s losses under its retention level. Costs
between $100,000 and $2,000,000 per claim are pooled based on payroll.
The WC program also includes Employers’ Liability of $10,000,000 per occurrence.
Employers’ Liability costs from $2,000,000 to $5,000,000 are paid by excess insurance
purchased by Cal JPIA.
Pollution and Remediation Legal Liability. This policy provides coverage for both first and
third party damages, including certain types of cleanups; fuel spill or hazmat incident; member
listed non-owned disposal sites; above ground and underground storage tanks; and for sudden
and gradual pollution at or from property, streets, sanitary sewer trunk lines and storm drain
outfalls owned by the District. Coverage is on a claims-made basis. There is a $50,000
deductible. During the three-year policy period, Cal JPIA has a limit of $50,000,000 and each
pool member has a $10,000,000 aggregate limit. The current term is July 1, 2014 through July
1, 2017.
Property Insurance. The property insurance program includes all-risk coverage for real
and personal property (such as, scheduled buildings, contents, equipment, vehicles, office
furniture, etc.). The insurance is underwritten by several insurance companies. The all-risk
deductibles are $5,000 per occurrence for property and $1,000 for non-emergency vehicles.
Premiums are paid annually and are not subject to retroactive adjustments.
A-17
Mechanical Breakdown Insurance. This optional coverage is purchased separately
under the property program. Coverage is for physical damage for sudden and accidental
breakdown of boilers and machinery, and electrical injury. There is a $5,000 per accident or
occurrence deductible for property damage; and $5,000 extra expense.
Crime Insurance. Coverage is provided for employee dishonesty, failure to faithfully
perform duties, forgery, counterfeiting, theft, robbery, burglary and computer fraud. Cal JPIA
contracts with Alliant Insurance Services for administering this program. District’s coverage limit
is $1,000,000 with a $2,500 per occurrence deductible. Premiums are paid annually and are not
subject to retroactive adjustments.
Special Event Insurance. This program provides liability insurance when member-
owned premises are used for special events or short-term activities (e.g., art festivals, yoga
classes, job fairs, etc.). Members administer the program, accept funds, and issue certificates
of insurance online with Alliant Insurance Services, with whom the Cal JPIA contracts for the
program. There is no deductible, and the member is added as an additional insur ed. Liability
limits are purchased in $1,000,000 per occurrence increments. Medical payments are also
available with limits of $5,000, with the option to purchase $5,000 in additional limits.
Vendors/Contractors Insurance. General Liability coverage is provided to
vendors/contractors who otherwise could not meet the District’s minimum insurance
requirements for General Liability, or General Liability and Professional Liability combined. Cal
JPIA contracts with Alliant Insurance Services for administering this program. The contract is
classified according to a hazard class, and the premium is based on the contract value. The
member collects the premium from the vendor/contractor and then remits the premium payment
to Alliant Insurance Services.
Investment of District Funds
The District’s Investment Policy and the California Government Code allow the District to
invest in the following, provided the credit ratings of the issuers are acceptable to the District
and approved percentages and maturities are not exceeded. The table below also identifies
certain provisions of the Government Code or the District’s Investment Policy where it is more
restrictive:
Authorized Investment Type
Maximum
Remaining
Maturity
Maximum % of
Portfolio
Maximum
Investment in One
Issuer
Medium Term Notes 5 years 30% No Limit
Money Market and Mutual Funds N/A 20% 10%
U.S. Treasury Obligations 5 years No Limit No Limit
Federal Agency Securities 5 years No Limit No Limit
Banker’s Acceptance 180 days 40% 30%
Commercial Paper 270 days 25% 10%
Negotiable Certificates of Deposit 5 years 30% No Limit
Repurchase Agreements 1 year No Limit No Limit
Reverse Repurchase Agreements 92 days 20% No Limit
Local Agency Investment Fund (LAIF) N/A $40 million per
account
No Limit
A-18
CONSTITUTIONAL AND STATUTORY LIMITATIONS ON DISTRICT TAX REVENUES AND
APPROPRIATIONS
Article XIIIA of the State Constitution
Article XIIIA of the State Constitution, known as Proposition 13, was approved by the
voters in June 1978 and has been amended on occasions, including most recently on
November 7, 2000 to reduce the voting percentage required for the passage of school bonds.
Section l(a) of Article XIIIA limits the maximum ad valorem tax on real property to 1% of "full
cash value," and provides that such tax shall be collected by the counties and apportioned
according to State statutes. Section l(b) of Article XIIIA provides that the 1% limitation does not
apply to ad valorem taxes levied to pay interest or redemption charges on any (1) indebtedness
approved by the voters prior to July 1, 1978, (2) bonded indebtedness for the acquisition or
improvement of real property approved on or after July 1, 1978, by two-thirds of the votes cast
by the voters voting on the proposition and (3) bonded indebtedness incurred by a school
district, community college district or county office of education for the construction,
reconstruction, rehabilitation or replacement of school facilities, including the furnishing and
equipping of school facilities or the acquisition or lease of real property for school facilities,
approved by 55 percent of the voters voting on the proposition.
Under current law, local agencies are no longer permitted to levy directly any ad valorem
property tax (except to pay voter-approved indebtedness).
Section 2 of Article XIIIA defines "full cash value" to mean the county assessor’s
valuation of real property as shown on the 1975-76 Fiscal Year tax bill, or thereafter, the
appraised value of real property when purchased, newly constructed, or a change in ownership
has occurred. The full cash value may be adjusted annually to reflect inflation at a rate not to
exceed 2% per year, or to reflect a reduction in the consumer price index or comparable data for
the taxing jurisdiction, or may be reduced in the event of declining property value caused by
substantial damage, destruction or other factors. See "Litigation Relating to Two Percent
Limitation" below. Legislation implementing Article XIIIA provides that, notwithstanding any
other law, local agencies may not levy any ad valorem property tax except to pay debt service
on indebtedness approved by the voters as described above. Such legislation further provides
that each county will levy the maximum tax permitted by Article XIIIA, which is $1.00 per $100 of
assessed market value.
Since its adoption, Article XIIIA has been amended a number of times. These
amendments have created a number of exceptions to the requirement that property be
reassessed when it is purchased, newly constructed or undergoes a change in ownership.
These exceptions include certain transfers of real property between family members, certain
purchases of replacement dwellings for persons over age 55 and by property owners whose
original property has been destroyed in a declared disaster, and certain improvements to
accommodate disabled persons and for seismic upgrades to property. These amendments
have resulted in marginal reductions in the property tax revenues attributable to the District.
Both the State Supreme Court and the United States Supreme Court have upheld the
validity of Article XIIIA.
A-19
Article XIIIB of the State Constitution
In addition to the limits Article XIIIA imposes on property taxes that may be collected by
local governments, certain other revenues of the State and most local governments are subject
to an annual "appropriations limit" imposed by Article XIIIB which effectively limits the amount
of such revenues those entities are permitted to spend. Article XIIIB, approved by the voters in
July 1979, was modified substantially by Proposition 111 in 1990. The appropriations limit of
each government entity applies to "proceeds of taxes," which consist of tax revenues, State
subventions and certain other funds, including proceeds from regulatory licenses, user charges
or other fees to the extent that such proceeds exceed "the cost reasonably borne by such entity
in providing the regulation, product or service." "Proceeds of taxes" excludes tax refunds and
some benefit payments such as unemployment insurance. No limit is imposed on the
appropriation of funds which are not "proceeds of taxes," such as reasonable user charges or
fees, and certain other non-tax funds. Article XIIIB also does not limit appropriation of local
revenues to pay debt service on bonds existing or authorized by January 1, 1979, or
subsequently authorized by the voters, appropriations required to comply with mandates of
courts or the federal government, appropriations for qualified capital outlay projects, and
appropriation by the State of revenues derived from any increase in gasoline taxes and motor
vehicle weight fees above January 1, 1990 levels. The appropriations limit may also be
exceeded in case of emergency; however, the appropriations limit for the next three years
following such emergency appropriation must be reduced to the extent by which it was
exceeded, unless the emergency arises from civil disturbance or natural disaster declared by
the Governor, and the expenditure is approved by two-thirds of the legislative body of the local
government.
The following does not apply to the District - per Mike - Cheryl to confirm:
[[The State and each local government entity has its own appropriations limit. Each year,
the limit is adjusted to allow for changes, if any, in the cost of living, the population of the
jurisdiction, and any transfer to or from another government entity of financial responsibility for
providing services.
Proposition 111 requires that each agency’s actual appropriations be tested against its
limit every two years. If the aggregate "proceeds of taxes" for the preceding two-year period
exceeds the aggregate limit, the excess must be returned to the agency’s taxpayers through tax
rate or fee reductions over the following two years.]]
Article XIIIC and XIIID of the State Constitution
General. On November 5, 1996, the voters of the State approved Proposition 218,
known as the "Right to Vote on Taxes Act." Proposition 218 adds Articles XIIIC and XIIID to the
California Constitution and contains a number of interrelated provisions affecting the ability of
the District to levy and collect both existing and future taxes, assessments, fees and charges.
Taxes. Article XIIIC requires that all new local taxes be submitted to the electorate
before they become effective. Taxes for general governmental purposes of the District
("general taxes") require a majority vote; taxes for specific purposes ("special taxes"), even if
deposited in the District’s General Fund, require a two-thirds vote. The voter approval
requirements of Proposition 218 reduce the flexibility of the District to raise revenues for the
General Fund, and no assurance can be given that the District will be able to impose, extend or
increase such taxes in the future to meet increased expenditure needs.
A-20
Property-Related Fees, Charges and Assessments. Article XIIID also adds several
provisions making it generally more difficult for local agencies to levy and maintain property-
related fees, charges, and assessments for municipal services and programs. These provisions
include, among other things, (i) a prohibition against assessments which exceed the reasonable
cost of the proportional special benefit conferred on a parcel, (ii) a requirement that
assessments must confer a "special benefit," as defined in Article XIIID, over and above any
general benefits conferred, (iii) a majority protest procedure for assessments which involves the
mailing of notice and a ballot to the record owner of each affected parcel, a public hearing and
the tabulation of ballots weighted according to the proportional financial obligation of the
affected party, and (iv) a prohibition against fees and charges which are used for general
governmental services, including police, fire or library services, where the service is available to
the public at large in substantially the same manner as it is to property owners.
Reduction or Repeal of Taxes, Fees and Charges. Article XIIIC also removes
limitations on the initiative power in matters of reducing or repealing local taxes, assessments,
fees or charges. No assurance can be given that the voters of the District will not, in the future,
approve an initiative or initiatives which reduce or repeal local taxes, assessments, fees or
charges currently comprising a substantial part of the District’s General Fund. If such repeal or
reduction occurs, the District’s ability to pay debt service on certain of its Long-Term Obligations
could be adversely affected.
Burden of Proof. Article XIIIC provides that local government "bears the burden of
proving by a preponderance of the evidence that a levy, charge, or other exaction is not a tax,
that the amount is no more than necessary to cover the reasonable costs of the governmental
activity, and that the manner in which those costs are allocated to a payor bear a fair or
reasonable relationship to the payor’s burdens on, or benefits received from, the governmental
activity." Similarly, Article XIIID provides that in "any legal action contesting the validity of a fee
or charge, the burden shall be on the agency to demonstrate compliance" with Article XIIID.
Proposition 26. On November 2, 2010, California voters approved Proposition 26,
entitled the "Supermajority Vote to Pass New Taxes and Fees Act." Section 1 of Proposition 26
declares that Proposition 26 is intended to limit the ability of the State Legislature and local
government to circumvent existing restrictions on increasing taxes by defining the new or
expanded taxes as "fees." Proposition 26 amended Articles XIIIA and XIIIC of the State
Constitution. The amendments to Article XIIIA limit the ability of the State Legislature to impose
higher taxes (as defined in Proposition 26) without a two-thirds vote of the Legislature. The
amendments to Article XIIIC define "taxes" that are subject to voter approval as "any levy,
charge, or exaction of any kind imposed by a local government," with certain exceptions.
Impact on District’s General Fund. The approval requirements of Articles XIIIC and
XIIID reduce the flexibility of the District to raise revenues for the General Fund, and no
assurance can be given that the District will be able to impose, extend or increase the taxes,
fees, charges or taxes in the future that it may need to meet increased expenditure needs.
The District does not believe that any material source of General Fund revenue is
subject to challenge under Proposition 218 or Proposition 26.
Judicial Interpretation. The interpretation and application of Articles XIIIC and XIIID will
ultimately be determined by the courts with respect to a number of the matters discussed below,
and it is not possible at this time to predict with certainty the outcome of such determination.
A-21
Proposition 1A; Proposition 22
Proposition 1A of 2004. Proposition 1A of 2004, proposed by the Legislature in
connection with the State’s Fiscal Year 2004-05 Budget, approved by the voters in November
2004 and generally effective in Fiscal Year 2006-07, provided that the State may not reduce any
local sales tax rate, limit existing local government authority to levy a sales tax rate or change
the allocation of local sales tax revenues, subject to certain exceptions. Proposition 1A of 2004
generally prohibited the State from shifting to schools or community colleges any share of
property tax revenues allocated to local governments for any Fiscal Year, as set forth under the
laws in effect as of November 3, 2004. Any change in the allocation of property tax revenues
among local governments within a county had to be approved by two-thirds of both houses of
the Legislature.
Proposition 1A of 2004 provided, however, that beginning in Fiscal Year 2008-09, the
State may shift to schools and community colleges up to 8% of local government property tax
revenues, which amount must be repaid, with interest, within three years, if the Governor
proclaimed that the shift is needed due to a severe state financial hardship, the shift was
approved by two-thirds of both houses and certain other conditions were met. The State could
also approve voluntary exchanges of local sales tax and property tax revenues among local
governments within a county.
As the financial conditions of the State are improving, it is unlikely that the Governor will
proclaim a shift of additional local property tax revenue, including tax revenue of the District, is
needed due to severe financial hardship in the foreseeable future, and the District currently
holds no portions of its general fund in reserve to off-set additional shifts in tax revenues to the
State.
Proposition 22. Proposition 22, entitled "The Local Taxpayer, Public Safety and
Transportation Protection Act," was approved by the voters of the State in November 2010.
Proposition 22 eliminates or reduces the State’s authority to (i) temporarily shift property taxes
from cities, counties and special districts to schools, (ii) use vehicle license fee revenues to
reimburse local governments for State-mandated costs (the State will have to use other
revenues to reimburse local governments), (iii) redirect property tax increment from
redevelopment agencies to any other local government, (iv) use State fuel tax revenues to pay
debt service on State transportation bonds, or (v) borrow or change the distribution of State fuel
tax revenues.
Unitary Property
AB 454 (Chapter 921, Statutes of 1986) provides that revenues derived from most utility
property assessed by the State Board of Equalization ("Unitary Property"), commencing with
the 1988-89 Fiscal Year, are allocated as follows: (i) each jurisdiction will receive up to 102% of
its prior year State-assessed revenue; and (ii) if county-wide revenues generated from Unitary
Property are less than the previous year’s revenues or greater than 102% of the previous year’s
revenues, each jurisdiction will share the burden of the shortfall or benefit of the excess
revenues by a specified formula. This provision applies to all Unitary Property except railroads,
whose valuation will continue to be allocated to individual tax rate areas.
The provisions of AB 454 do not constitute an elimination of the assessment of any
State-assessed properties nor a revision of the methods of assessing utilities by the State
A-22
Board of Equalization. Generally, AB 454 allows valuation growth or decline of Unitary Property
to be shared by all jurisdictions in a county.
Future Initiatives
Article XIIIA, Article XIIIB, Article XIIIC, Article XIIID, and Propositions 1A of 2004, 22, 26
and 62 were each adopted as measures that qualified for the ballot through California’s initiative
process. From time to time other initiative measures could be adopted, further affecting the
District’s revenues.
A-23
A-24
A-25
ECONOMIC AND DEMOGRAPHIC INFORMATION REGARDING
SANTA CLARA AND SAN MATEO COUNTIES
General
Santa Clara and San Mateo Counties are two of nine counties in the San Francisco-
Oakland Bay Area.
Santa Clara County. Santa Clara County covers an area of over 1,300 square miles
and is located south of the San Francisco Bay in northern California. There are two distinct
valleys in Santa Clara County, which are referred to as North County and South County. South
County has more of an agricultural base and is comprised of only two cities, twenty miles apart
from each other. As a contrast, North County is densely populated, heavily industrialized and
extensively urbanized. This part of Santa Clara County is comprised of 13 cities, each adjacent
to another. Due to its high concentration of high-technology industries, the northwestern portion
of North County is commonly referred to as "Silicon Valley". Several small lakes and reservoirs
are scattered across the County and the highest peak can be found in San José at Mount
Hamilton with an elevation of 4,213 feet. Several major highways serve Santa Clara County,
including Highway 101 providing access to San Francisco and Los Angeles.
San Mateo County. San Mateo County shares its borders with the City and County of
San Francisco to the north and Santa Clara County to the south, the Pacific Ocean to the west
and San Francisco Bay to the east, Santa Clara County to the south and San Joaquin County to
the east. San Mateo County is a major employment base, accessible to downtown San
Francisco approximately 15 miles north, and is also accessible to the San Jose and Silicon
Valley areas approximately 30 miles south via Interstate 280 or U.S. Highway 101. San Mateo
County has an approximate total area of 741 square miles, of which 448 square miles is land
and 293 square miles is water. It is the third-smallest county in California by land area.
Population
The table below shows population estimates for the past six years for Santa Clara and
San Mateo Counties, according to the State Department of Finance.
SANTA CLARA COUNTY AND SAN MATEO COUNTY
AND STATE OF CALIFORNIA
Population Estimates
Calendar Years 2010 through 2014 as of January 1
Calendar
Year
Santa Clara
County
San Mateo
County
State of
California
2010 1,781,427 718,614 37,223,900
2011 1,794,337 722,372 37,427,946
2012 1,813,696 727,793 37,668,804
2013 1,840,895 736,647 37,984,138
2014 1,868,558 745,193 38,340,074
Source: State Department of Finance estimates (as of January 1).
A-26
Employment and Industry
Santa Clara County. Santa Clara County is part of the San Jose Sunnyvale-Santa
Clara Metropolitan Statistical Area (“MSA”), which is comprised of Santa Clara and San Benito
Counties. The unemployment rate in the San Jose-Sunnyvale-Santa Clara MSA was 4.8
percent in January 2015, up from a revised 4.5 percent in December 2014, but below the year-
ago estimate of 6.0 percent. This compares with an unadjusted unemployment rate of 7.3
percent for California and 6.1 percent for the nation during the same period. The unemployment
rate was 8.8 percent in San Benito County and 4.7 percent in the County.
The table below lists employment by industry group for the years 2010 through 2014.
Annual Figures are not yet available for the calendar year 2015.
SAN JOSE SUNNYVALE SANTA CLARA MSA
(San Benito And Santa Clara Counties)
Annual Average Civilian Labor Force, Employment and Unemployment,
Unemployment by Industry
(March 2014 Benchmark)
2010 2011 2012 2013 2014
Civilian Labor Force (1)(2) - - - - 1,025,100
Employment - - - - 970,600
Unemployment - - - - 54,500
Unemployment Rate - - - - 5.3%
Wage and Salary Employment: (3)
Agriculture 5,200 5,000 4,900 5,000 5,200
Mining and Logging 200 200 200 300 300
Construction 32,200 31,600 34,600 37,200 39,200
Manufacturing 151,500 155,300 155,900 155,700 159,100
Wholesale Trade 35,000 34,000 35,000 36,300 36,700
Retail Trade 78,900 81,800 84,100 84,900 85,900
Transportation, Warehousing, Utilities 12,000 12,100 13,000 14,200 15,000
Information 46,500 51,300 54,200 58,700 66,400
Finance and Insurance 18,300 19,400 20,400 20,900 21,700
Real Estate and Rental and Leasing 12,800 13,000 12,900 13,000 13,500
Professional and Business Services 160,900 166,700 178,200 191,200 203,800
Educational and Health Services 123,400 125,800 133,700 143,800 150,900
Leisure and Hospitality 74,900 77,400 82,500 87,500 91,800
Other Services 24,300 24,600 24,800 25,400 26,400
Federal Government 10,700 10,100 9,800 9,900 9,900
State Government 6,400 6,400 6,400 6,300 6,400
Local Government 77,300 76,100 75,200 75,600 77,400
Total all Industries (4) 870,400 890,900 925,800 965,900 1,009,500
(1) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers,
household domestic workers, and workers on strike.
(2) Civilian Labor Force numbers for years 2006-2008 will be recalculated by the State of California Employment
Development Department.
(3) Industry employment is by place of work; excludes self-employed individuals, unpaid family workers,
household domestic workers, and workers on strike.
(4) Totals may not add due to rounding.
Source: State of California Employment Development Department.
A-27
San Mateo County. San Mateo County is included in the San Francisco-San Mateo-
Redwood City Metropolitan District (“Metropolitan District”), which is comprised of Marin, San
Francisco, and San Mateo Counties. The unemployment rate in the San Francisco-San Mateo-
Redwood City MD was 3.7% in December 2014, down from a revised 4.2% in November 2014,
and below the year-ago estimate of 4.6%. This compares with an unadjusted unemployment
rate of 6.7% for California and 5.4% for the nation during the same period. The unemployment
rate was 3.4% in Marin County, 3.8% in San Francisco County, and 3.5% in San Mateo County.
The table below lists employment by industry group for the Metropolitan District for the
years 2009 through 2013. Annual figures are not yet available for calendar year 2014.
SAN FRANCISCO SAN MATEO REDWOOD CITY MD
(Marin, San Francisco, and San Mateo Counties)
Annual Average Civilian Labor Force, Employment and Unemployment
(March 2013 Benchmark)
2009 2010 2011 2012 2013
Civilian Labor Force (1) 965,900 972,000 989,400 1,018,300 1,032,700
Employment 883,500 884,700 909,300 948,300 975,900
Unemployment 82,400 87,300 80,100 70,000 56,800
Unemployment Rate 8.5% 9.0% 8.1% 6.9% 5.5%
Wage and Salary Employment: (2)
Agriculture 2,500 2,400 2,200 2,100 2,200
Mining and Lodging 200 200 200 100 100
Construction 35,100 32,300 33,200 35,500 37,900
Manufacturing 38,100 37,000 36,300 36,000 37,200
Wholesale Trade 24,500 23,900 24,600 26,000 27,400
Retail Trade 87,700 86,800 87,200 89,500 92,200
Transportation, Warehousing and
Utilities
37,800 36,400 36,000 37,600 40,000
Information 39,600 39,100 43,200 49,100 51,800
Finance and Insurance 57,300 54,900 53,800 54,400 55,000
Real Estate and Rental and Leasing 19,500 19,000 19,500 20,400 21,400
Professional and Business Services 200,600 200,200 213,200 231,600 244,600
Educational and Health Services 127,800 128,400 128,800 133,900 144,000
Leisure and Hospitality 122,200 122,700 127,700 135,100 141,700
Other Services 38,000 37,800 38,800 40,700 42,500
Federal Government 19,000 20,200 19,100 18,700 18,300
State Government 35,300 35,600 35,900 35,200 34,800
Local Government 81,400 80,600 81,400 81,100 81,300
Total All Industries (3) 966,400 957,400 980,900 1,027,000 1,072,300
(1) Labor force data is by place of residence; includes self-employed individuals, unpaid family workers, household domestic
workers, and workers on strike.
(2) Industry employment is by place of work; excludes self-employed individuals, unpaid family workers, household domestic
workers, and workers on strike.
(3) May not add due to rounding.
Source: State of California Employment Development Department.
A-28
The following tables list the largest manufacturing and non-manufacturing employers
within Santa Clara County as of 2015, in alphabetical order.
COUNTY OF SANTA CLARA
Largest Employers
March 2015
Employer Name Location Industry
Adobe Systems Inc San Jose Publishers-Computer Software (Mfrs)
Advanced Micro Devices Inc Sunnyvale Semiconductor Devices (Mfrs)
Apple Inc Cupertino Computers-Electronic-Manufactu
Bon Appetit-Cafe Adobe San Jose Restaurant Management
California's Great America Santa Clara Amusement & Theme Parks
Christopher Ranch Llc Gilroy Garlic (Mfrs)
E Bay Inc San Jose Auctioneers
El Camino Hospital Mountain View Hospitals
Fine Pitch Milpitas Solar Energy Equipment-Manufacturers
Gca Services Alviso Janitor Service
General Motors Advanced Tech Palo Alto Automobile-Manufacturers
Hewlett-Packard Co Palo Alto Computers-Electronic-Manufactu
Intel Corp Santa Clara Semiconductor Devices (Mfrs)
Kaiser Permanente Medical Ctr San Jose Hospitals
Kaiser Permanente Medical Grp San Jose Hospitals
Lockheed Martin Space Systems Sunnyvale Satellite Equipment & Systems-Mfrs
Microsoft Corp Mountain View Computer Software-Manufacturers
Nasa Mountain View Federal Government-Space Research/Tech
Net App Inc Sunnyvale Computers-Electronic-Manufactu
Philips Lumileds Lighting Co San Jose Lighting Fixtures-Supplies & Parts-Mfrs
Santa Clara Valley Medical Ctr San Jose Hospitals
Sap Center San Jose Stadiums Arenas & Athletic Fields
Stanford School of Medicine Stanford Schools-Medical
Texas Instruments Inc Santa Clara Semiconductor Devices (Mfrs)
Va Medical Ctr-Palo Alto Palo Alto Hospitals
Source: State of California Employment Development Department, extracted from The America's
Labor Market Information System (ALMIS) Employer Database, 2015 1st Edition.
A-29
The following table lists the largest employers within the San Mateo County area as of
January 2015.
COUNTY OF SAN MATEO
Major Employers
January 2015
(Listed Alphabetically)
Employer Name Location Industry
Ab Sciex Llc Redwood City Scientific Apparatus & Instruments-Mfrs
Caltrain San Carlos Transit Lines
Electronic Arts Inc Redwood City Game Designers (Mfrs)
Facebook Inc Menlo Park Internet Service
Forced Dump Debris Box Svc Burlingame Garbage Collection
Franklin Templeton Instnl Llc San Mateo Investments
Gate Gourmet San Francisco Caterers
Gilead Sciences Inc Foster City Biological Products (Mfrs)
Guckenheimer Inc Redwood City Marketing Programs & Services
Hyatt Regency-San Francisco Burlingame Hotels & Motels
Kaiser Permanente Medical Ctr South San Francisco Hospitals
Kaiser Permanente Medical Ctr Redwood City Hospitals
Oracle Corp Redwood City Computer Software-Manufacturers
Peninsula Medial Ctr Burlingame Hospitals
San Francisco Intl Airport-Sfo San Francisco Airline Companies
San Mateo County Behavior San Mateo Government Offices-County
San Mateo County Human Svc Belmont County Government-Social/Human Resources
San Mateo Medical Ctr San Mateo Hospitals
Seton Medical Ctr Health Sci Daly City Services NEC
Sri International Inc Menlo Park Research Service
Stanford Linear Accelerator Menlo Park Research Service
US Interior Dept Menlo Park Federal Government-Conservation Depts
Visa Inc Foster City Credit Card & Other Credit Plans
Visa International Svc Assn Foster City Credit Card & Other Credit Plans
Visa USA Inc Foster City Credit Card & Other Credit Plans
Source: America's Labor Market Information System (ALMIS) Employer Database, 2015 1st Edition.
Effective Buying Income
The following table is based on effective buying income, as reported in the annual
publication “Survey of Buying Power,” published by Sales and Marketing Management. Effective
buying income is defined as personal income less personal taxes and non-tax payments.
Personal income includes wages and salaries, other labor-related income, proprietor’s income,
rental income, dividends, personal interest income and transfer payments. Deductions are then
made for federal, state and local taxes, non-tax payments (such as fines and penalties) and
personal contributions for social insurance. The following items are not included in the definition
of effective buying income: (1) employer contributions to private pension funds, supplemental
unemployment insurance funds and privately administered workers’ compensation programs;
(2) imputed personal income, which includes the imputed value of services provided by
depository institutions and income earned by life insurance carriers and private noninsured
pension funds on the principal amounts contributed by policy holders and pension beneficiaries;
and (3) imputed rental income of owner-occupied nonfamily dwellings.
A-30
The table below summarizes the total effective buying income and the median
household effective buying income for the County of Santa Clara, the County of San Mateo, the
State and the United States from 2009 through 2013. Effective Buying Income data is not yet
available for calendar year 2014.
COUNTY OF SANTA CLARA AND COUNTY OF SAN MATEO,
STATE OF CALIFORNIA AND UNITED STATES
Effective Buying Income
For Calendar Years 2009 Through 2013
Year
Area
Total Effective
Buying Income
(000’s Omitted)
Median Household
Effective Buying
Income
2009 Santa Clara County $55,561,405 $71,077
San Mateo County 23,835,480 69,276
California 844,823,319 49,736
United States 6,571,536,768 43,252
2010 Santa Clara County $53,692,143 $68,047
San Mateo County 23,489,013 66,508
California 801,393,028 47,177
United States 6,365,020,076 41,368
2011 Santa Clara County $54,491,135 $67,801
San Mateo County 23,717,578 66,434
California 814,578,458 47,062
United States 6,438,704,664 41,253
2012 Santa Clara County $61,464,868 $68,852
San Mateo County 26,570,648 68,429
California 864,088,828 47,307
United States 6,737,867,730 41,358
2013 Santa Clara County $61,802,913 $70,595
San Mateo County 26,846,688 70,427
California 858,676,636 48,340
United States 6,982,757,379 43,715
Source: The Nielsen Company (US), Inc.
A-31
Construction Activity
The following tables provide a summary of residential building permit valuations and
nonresidential building permit valuations, and the total number of all building permit valuations
in Santa Clara County and San Mateo County during the past five years. Annual figures are not
yet available for calendar year 2014.
COUNTY OF SANTA CLARA
Building Permit Valuation - For Calendar Years 2009 through 2013
(Dollars in Thousands)
2009 2010 2011 2012 2013
Permit Valuation
New Single-family $245,033.4 $307,367.4 $366,126.4 $678,168.8 $694,884.6
New Multi-family 74,466.1 457,923.9 315,853.0 558,544.1 941,420.4
Res. Alterations/Additions 259,190.4 320,582.9 392,229.1 288,105.1 423,739.6
Total Residential 578,689.8 1,085,874.3 1,074,208.5 1,524,818.0 2,060,044.6
New Commercial 215,433.8 267,010.0 228,074.5 745,468.8 1,217,647.4
New Industrial 0.0 33,862.0 68,701.3 22,481.5 72,222.0
New Other 213,976.4 119,682.9 47,728.5 19,197.3 1,749,161.2
Com Alterations/Additions 758,365.7 735,059.6 1,122,235.2 1,115,633.3 1,293,656.1
Total Nonresidential 1,187,775.9 1,155,614.6 1,466,739.5 1,902,780.9 4,332,686.7
New Dwelling Units
Single Family 667 826 978 1,432 1,859
Multiple Family 450 3,627 2,234 4,245 6,009
TOTAL 1,117 4,453 3,212 5,677 7,868
Source: Construction Industry Research Board, Building Permit Summary.
COUNTY OF SAN MATEO
Building Permit Valuation
For Calendar Years 2009 through 2013
(Valuation in Thousands of Dollars)
2009 2010 2011 2012 2013
Permit Valuation
New Single-family $147,515.5 $189,296.6 $194,950.1 $245,163.9 $292,893.4
New Multi-family 74,329.6 21,309.0 107,040.0 171,390.4 151,019.5
Res. Alterations/Additions 204,482.0 262,592.1 289,619.5 201,543.1 299,830.5
Total Residential 426,327.0 473,197.6 591,609.6 618,097.4 743,743.4
New Commercial 17,942.0 62,510.5 28,247.6 83,374.0 165,578.7
New Industrial 5,000.0 0.0 3,359.4 2,021.6 15,724.2
New Other 70,410.1 66,274.8 26,029.4 1,975.6 58,726.5
Com. Alterations/Additions 235,373.3 283,752.5 244,089.0 167,438.8 263,460.8
Total Nonresidential $328,725.5 $412,537.8 301,725.4 254,810.0 503,490.2
New Dwelling Units
Single Family 236 216 213 264 350
Multiple Family 393 111 545 671 840
TOTAL 629 327 758 935 1,190
Source: Construction Industry Research Board, Building Permit Summary.
A-32
Commercial Activity
The following tables show historic taxable sales within Santa Clara County and San
Mateo County for calendar years 2009 through 2013. Figures are not yet available for calendar
year 2014.
COUNTY OF SANTA CLARA
Annual Taxable Transactions
Number of Permits and Valuation of Taxable Transactions
(Dollars in Thousands)
Retail Stores Total All Outlets
Number
of Permits
Taxable
Transactions
Number
of Permits
Taxable
Transactions
2009 26,695 $16,385,238 43,396 $27,427,709
2010 27,215 17,695,858 43,583 30,523,322
2011 27,252 19,419,542 43,390 33,431,217
2012 28,109 21,116,708 43,980 36,220,445
2013 29,545 22,424,641 45,274 37,621,606
Source: California State Board of Equalization, Taxable Sales in California (Sales & Use Tax).
COUNTY OF SAN MATEO
Taxable Retail Sales
2009 through 2013
Number of Permits and Valuation of Taxable Transactions
(Dollars in Thousands)
Retail Stores Total All Outlets
Number
of Permits
Taxable
Transactions
Number
of Permits
Taxable
Transactions
2009 11,143 $7,455,767 18,840 $11,327,022
2010 11,340 7,846,274 18,979 11,966,338
2011 11,470 8,536,043 18,995 13,020,643
2012 11,748 9,277,144 19,189 13,906,978
2013 12,438 9,935,641 19,808 14,611,618
Source: California State Board of Equalization, Taxable Sales in California (Sales & Use Tax).
B-1
APPENDIX B
ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED MARCH 31, 2014
C-1
APPENDIX C
FORM OF OPINION OF BOND COUNSEL
D-1
APPENDIX D
SUMMARY OF CERTAIN PROVISIONS OF THE FISCAL AGENT AGREEMENT
E-1
APPENDIX E
FORM OF CONTINUING DISCLOSURE CERTIFICATE
$______________
MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
(Counties of Santa Clara and San Mateo, California)
General Obligation Bonds, Series 2015A
(Election of 2014)
This CONTINUING DISCLOSURE CERTIFICATE (this "Disclosure Certificate") is
executed and delivered by the MIDPENINSULA REGIONAL OPEN SPACE DISTRICT (the
"District") in connection with the issuance of the General Obligation Bonds, Election of 2014,
Series 2015A captioned above (the "Bonds"). The Bonds are being issued pursuant to a Fiscal
Agent Agreement dated as of _________, 2015, between the District and Zions First National
Bank, as fiscal agent.
The District covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being
executed and delivered by the District for the benefit of the holders and beneficial owners of the
Bonds and in order to assist the Participating Underwriter in complying with S.E.C. Rule 15c2-
12(b)(5).
Section 2. Definitions. In addition to the definitions set forth above and in the Fiscal
Agent Agreement, which apply to any capitalized term used in this Disclosure Certificate unless
otherwise defined in this Section 2, the following capitalized terms shall have the following
meanings:
"Annual Report" means any Annual Report provided by the District pursuant to, and as
described in, Sections 3 and 4 of this Disclosure Certificate.
"Annual Report Date" means the date that is 210 days after the end of the District’s
Fiscal Year.
"Dissemination Agent" shall mean, initially, _________________, or any successor
Dissemination Agent designed in writing by the District and which has been filed with the then
current Dissemination Agent a written acceptance of such designation.
"Fiscal Year" means any twelve-month period beginning on January 1 in any year and
extending to the next succeeding March 31, both dates inclusive, or any other twelve-month
period selected and designated by the District as its official Fiscal Year period under a
Certificate of the District filed with the Fiscal Agent.
"MSRB" means the Municipal Securities Rulemaking Board, which has been designated
by the Securities and Exchange Commission as the sole repository of disclosure information for
purposes of the Rule, or any other repository of disclosure information that may be designated
by the Securities and Exchange Commission as such for purposes of the Rule in the future.
"Official Statement" means the final official statement executed by the District in
connection with the issuance of the Bonds.
E-2
"Participating Underwriter" means the original underwriter of the Bonds required to
comply with the Rule in connection with offering of the Bonds.
"Rule" means Rule 15c2-12(b)(5) adopted by the Securities and Exchange Commission
under the Securities Exchange Act of 1934, as it may be amended from time to time.
"Significant Events" means any of the events listed in Section 5(a) of this Disclosure
Certificate.
Section 3. Provision of Annual Reports.
(a) The District shall, or shall cause the Dissemination Agent to, not later than the
Annual Report Date, commencing October 27, 2015, provide to the MSRB, in an electronic
format as prescribed by the MSRB, an Annual Report for the fiscal year ending March 31, 2015,
that is consistent with the requirements of Section 4 of this Disclosure Certificate; provided that
the first Annual Report shall consist solely of the Official Statement. Not later than 15 Business
Days prior to the Annual Report Date, the District shall provide the Annual Report to the
Dissemination Agent (if other than the District). If by 15 Business Days prior to the Annual
Report Date the Dissemination Agent (if other than the District) has not received a copy of the
Annual Report, the Dissemination Agent shall contact the District to determine if the District is in
compliance with the previous sentence. The Annual Report may be submitted as a single
document or as separate documents comprising a package, and may include by reference other
information as provided in Section 4 of this Disclosure Certificate; provided that the audited
financial statements of the District may be submitted separately from the balance of the Annual
Report, and later than the Annual Report Date, if not available by that date. If the District’s
Fiscal Year changes, it shall give notice of such change in the same manner as for a Significant
Event under Section 5(c). The District shall provide a written certification with each Annual
Report furnished to the Dissemination Agent to the effect that such Annual Report constitutes
the Annual Report required to be furnished by the District hereunder.
(b) If the District does not provide (or cause the Dissemination Agent to provide) an
Annual Report by the Annual Report Date, the District shall provide (or cause the Dissemination
Agent to provide) to the MSRB, in an electronic format as prescribed by the MSRB, a notice in
substantially the form attached as Exhibit A.
(c) With respect to each Annual Report, the Dissemination Agent shall:
(i) determine each year prior to the Annual Report Date the then-applicable
rules and electronic format prescribed by the MSRB for the filing of annual
continuing disclosure reports; and
(ii) if the Dissemination Agent is other than the District, file a report with the
District certifying that the Annual Report has been provided pursuant to this
Disclosure Certificate, and stating the date it was provided.
Section 4. Content of Annual Reports. The District’s Annual Report shall contain or
incorporate by reference the following:
(a) The District’s audited financial statements prepared in accordance with generally
accepted accounting principles as promulgated to apply to governmental entities from time to
E-3
time by the Governmental Accounting Standards Board. If the District’s audited financial
statements are not available by the Annual Report Date, the Annual Report shall contain
unaudited financial statements in a format similar to the financial statements contained in the
final Official Statement, and the audited financial statements shall be filed in the same manner
as the Annual Report when they become available.
(b) Unless otherwise provided in the audited financial statements filed on or before the
Annual Report Date, financial information and operating data with respect to the District for the
preceding Fiscal Year, substantially similar to that provided in the corresponding tables in the
Official Statement:
(i) Changes, if any, in the operation of the Teeter Plan of the County
of Santa Clara or the County of San Mateo;
(ii) Assessed value of taxable property within the jurisdiction of the
District for the current Fiscal Year;
(iii) If and to the extent available from the County of Santa Clara or the
County of San Mateo, property tax collection delinquencies for the prior
Fiscal Year for the District in the event the Teeter Plan is discontinued in
either of such County; and
(iv) Amount of all debt of the District outstanding and payable from the
same source of payment as the Bonds, and total scheduled debt service
on such general obligation debt as of the preceding March 31 and for the
current tax year (July 1 through June 30).
(c) In addition to any of the information expressly required to be provided under this
Disclosure Certificate, the District shall provide such further material information, if any, as may
be necessary to make the specifically required statements, in the light of the circumstances
under which they are made, not misleading.
(d) Any or all of the items listed above may be included by specific reference to other
documents, including official statements of debt issues of the District or related public entities,
which are available to the public on the MSRB’s Internet web site or filed with the Securities and
Exchange Commission. The District shall clearly identify each such other document so included
by reference.
Section 5. Reporting of Significant Events.
(a) The District shall give, or cause to be given, notice of the occurrence of any of the
following Significant Events with respect to the Bonds:
(i) Principal and interest payment delinquencies;
(ii) Non-payment related defaults, if material;
(iii) Unscheduled draws on debt service reserves reflecting financial
difficulties;
E-4
(iv) Unscheduled draws on credit enhancements reflecting financial
difficulties;
(v) Substitution of credit or liquidity providers, or their failure to perform;
(vi) 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 material notices or determinations with
respect to the tax status of the security, or other material events affecting
the tax status of the security;
(vii) Modifications to rights of security holders, if material;
(viii) Bond calls, if material, and tender offers;
(ix) Defeasances;
(x) Release, substitution, or sale of property securing repayment of the
securities, if material;
(xi) Rating changes;
(xii) Bankruptcy, insolvency, receivership or similar event of the District or
other obligated person;
(xiii) The consummation of a merger, consolidation, or acquisition involving the
District or an obligated person, or the sale of all or substantially all of
the assets of the District or an 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, if material;
and
(xiv) Appointment of a successor or additional trustee or the change of name
of a trustee, if material.
(b) Whenever the District obtains knowledge of the occurrence of a Significant
Event, the District shall, or shall cause the Dissemination Agent (if not the District) to, file a
notice of such occurrence with the MSRB, in an electronic format as prescribed by the MSRB, in
a timely manner not in excess of 10 business days after the occurrence of the Significant Event.
Notwithstanding the foregoing, notice of Significant Events described in subsections (a)(8) and
(9) above need not be given under this subsection any earlier than the notice (if any) of the
underlying event is given to holders of affected Bonds under the Fiscal Agent Agreement.
(c) The District acknowledges that the events described in subparagraphs (a)(ii),
(a)(vii), (a)(viii) (if the event is a bond call), (a)(x), (a)(xiii), and (a)(xiv) of this Section 5 contain
the qualifier "if material." The District shall cause a notice to be filed as set forth in paragraph
(b) above with respect to any such event only to the extent that the District determines the
event’s occurrence is material for purposes of U.S. federal securities law.
(d) For purposes of this Disclosure Certificate, any event described in paragraph
E-5
(a)(xii) above is considered to occur when any of the following occur: the appointment of a
receiver, fiscal agent, or similar officer for the District in a proceeding under the United States
Bankruptcy Code or in any other proceeding under state or federal law in which a court or
governmental authority has assumed jurisdiction over substantially all of the assets or business
of the District, or if such jurisdiction has been assumed by leaving the existing governing body
and officials or officers in possession but subject to the supervision and orders of a court or
governmental authority, or the entry of an order confirming a plan of reorganization,
arrangement, or liquidation by a court or governmental authority having supervision or
jurisdiction over substantially all of the assets or business of the District.
Section 6. Identifying Information for Filings with the MSRB. All documents provided to
the MSRB under the Disclosure Certificate shall be accompanied by identifying information as
prescribed by the MSRB.
Section 7. Termination of Reporting Obligation. The District’s obligations under this
Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or payment in
full of all of the Bonds. If such termination occurs prior to the final maturity of the Bonds, the
District shall give notice of such termination in the same manner as for a Significant Event under
Section 5(c).
Section 8. Dissemination Agent. The District may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate,
and may discharge any Dissemination Agent, with or without appointing a successor
Dissemination Agent. Any Dissemination Agent may resign by providing 30 days’ written notice
to the District. Initially, Willdan Financial Services will act as dissemination hereunder.
Section 9. Amendment; Waiver. Notwithstanding any other provision of this Disclosure
Certificate, the District may amend this Disclosure Certificate, and any provision of this
Disclosure Certificate may be waived, provided that the following conditions are satisfied:
(a) if the amendment or waiver relates to the provisions of Sections 3(a), 4 or 5(a), it
may only be made in connection with a change in circumstances that arises from a change in
legal requirements, change in law, or change in the identity, nature, or status of an obligated
person with respect to the Bonds, or type of business conducted;
(b) the undertakings herein, as proposed to be amended or waived, would, in the
opinion of nationally recognized bond counsel, have complied with the requirements of the Rule
at the time of the primary offering of the Bonds, after taking into account any amendments or
interpretations of the Rule, as well as any change in circumstances; and
(c) the proposed amendment or waiver either (i) is approved by holders of the Bonds
in the manner provided in the Fiscal Agent Agreement for amendments to the Fiscal Agent
Agreement with the consent of holders, or (ii) does not, in the opinion of nationally recognized
bond counsel, materially impair the interests of the holders or beneficial owners of the Bonds.
If the annual financial information or operating data to be provided in the Annual Report
is amended pursuant to the provisions hereof, the first annual financial information filed
pursuant hereto containing the amended operating data or financial information shall explain, in
narrative form, the reasons for the amendment and the impact of the change in the type of
operating data or financial information being provided.
E-6
If an amendment is made to the undertaking specifying the accounting principles to be
followed in preparing financial statements, the annual financial information for the year in which
the change is made shall present a comparison between the financial statements or information
prepared on the basis of the new accounting principles and those prepared on the basis of the
former accounting principles. The comparison shall include a qualitative discussion of the
differences in the accounting principles and the impact of the change in the accounting
principles on the presentation of the financial information, in order to provide information to
investors to enable them to evaluate the ability of the District to meet its obligations. To the
extent reasonably feasible, the comparison shall be quantitative.
A notice of any amendment made pursuant to this Section 9shall be filed in the same
manner as for a Significant Event under Section 5(c).
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be
deemed to prevent the District from disseminating any other information, using the means of
dissemination set forth in this Disclosure Certificate or any other means of communication, or
including any other information in any Annual Report or notice of occurrence of a Significant
Event, in addition to that which is required by this Disclosure Certificate. If the District chooses
to include any information in any Annual Report or notice of occurrence of a Significant Event in
addition to that which is specifically required by this Disclosure Certificate, the District shall have
no obligation under this Disclosure Certificate to update such information or include it in any
future Annual Report or notice of occurrence of a Significant Event.
Section 11. Default. If the District fails to comply with any provision of this Disclosure
Certificate, the Participating Underwriter or any holder or beneficial owner of the Bonds may
take such actions as may be necessary and appropriate, including seeking mandate or specific
performance by court order, to cause the District to comply with its obligations under this
Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an Event
of Default under the Fiscal Agent Agreement, and the sole remedy under this Disclosure
Certificate in the event of any failure of the District to comply with this Disclosure Certificate
shall be an action to compel performance.
Section 12. Duties, Immunities and Liabilities of Dissemination Agent. (a) The
Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure
Certificate, and the District agrees to indemnify and save the Dissemination Agent, its officers,
directors, employees and agents, harmless against any loss, expense and liabilities which they
may incur arising out of or in the exercise or performance of its powers and duties hereunder,
including the costs and expenses (including attorneys fees) of defending against any claim of
liability, but excluding liabilities due to the Dissemination Agent’s negligence or willful
misconduct. The Dissemination Agent shall have no duty or obligation to review any information
provided to it by the District hereunder, and shall not be deemed to be acting in any fiduciary
capacity for the District, the Bond holders or any other party. The obligations of the District
under this Section shall survive resignation or removal of the Dissemination Agent and payment
of the Bonds.
(b) The Dissemination Agent shall be paid compensation by the District for its services
provided hereunder in accordance with its schedule of fees as amended from time to time, and
shall be reimbursed for all expenses, legal fees and advances made or incurred by the
Dissemination Agent in the performance of its duties hereunder.
E-7
Section 13. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of
the District, the Dissemination Agent, the Participating Underwriter and the holders and
beneficial owners from time to time of the Bonds, and shall create no rights in any other person
or entity.
Section 14. Counterparts. This Disclosure Certificate may be executed in several
counterparts, each of which shall be regarded as an original, and all of which shall constitute
one and the same instrument.
Date: _________, 2015
MIDPENINSULA REGIONAL OPEN
SPACE DISTRICT
By
General Manager
ACCEPTANCE OF APPOINTMENT
BY DISSEMINATION AGENT
_________________________,
as Dissemination Agent
By:
E-8
EXHIBIT A
NOTICE OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
(Counties of Santa Clara and San Mateo, California)
Name of Issue: $______________ Midpeninsula Regional Open Space District
(Counties of Santa Clara and San Mateo, California)
General Obligation Bonds, Series 2015A (Election of 2014)
Date of Issuance: __________, 2015
NOTICE IS HEREBY GIVEN that the District has not provided an Annual Report with
respect to the above-named Bonds as required by the Continuing Disclosure Certificate dated
________, 2015. The District anticipates that the Annual Report will be filed by
_______________.
Dated: _____________
DISSEMINATION AGENT:
By:
Its:
F-1
APPENDIX F
DTC AND THE BOOK-ENTRY ONLY SYSTEM
The following description of the Depository Trust Company ("DTC"), the procedures and
record keeping with respect to beneficial ownership interests in the Bonds, payment of principal,
interest and other payments on the Bonds to DTC Participants or Beneficial Owners,
confirmation and transfer of beneficial ownership interest in the Bonds and other related
transactions between DTC, the DTC Participants and the Beneficial Owners is based solely on
information provided by DTC. Accordingly, no representations can be made concerning these
matters and neither the DTC Participants nor the Beneficial Owners should rely on the foregoing
information with respect to such matters, but should instead confirm the same with DTC or the
DTC Participants, as the case may be.
Neither the District (the "Issuer") nor the Fiscal Agent appointed with respect to the
Bonds (the "Fiscal Agent") takes any responsibility for the information contained in this
Appendix.
No assurances can be given that DTC, DTC Participants or Indirect Participants will
distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with
respect to the Bonds, (b) certificates representing ownership interest in or other confirmation or
ownership interest in the Bonds, or (c) redemption or other notices sent to DTC or Cede & Co.,
its nominee, as the registered owner of the Bonds, or that they will so do on a timely basis, or
that DTC, DTC Participants or DTC Indirect Participants will act in the manner described in this
Appendix. The current "Rules" applicable to DTC are on file with the Securities and Exchange
Commission and the current "Procedures" of DTC to be followed in dealing with DTC
Participants are on file with DTC.
1. The Depository Trust Company ("DTC"), New York, NY, will act as securities
depository for the Bonds. The Bonds will be issued as fully-registered securities registered in
the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested
by an authorized representative of DTC. One fully-registered certificate will be issued for the
Bonds, in the aggregate principal amount of such issue, and will be deposited with DTC. If,
however, the aggregate principal amount of any issue exceeds $500 million, one certificate will
be issued with respect to each $500 million of principal amount and an additional certificate will
be issued with respect to any remaining principal amount of such issue.
2. DTC, the world’s largest depository, is a limited-purpose trust company organized
under the New York Banking Law, a "banking organization" within the meaning of the New York
Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the
meaning of the New York Uniform Commercial Code, and a "clearing agency" registered
pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds
and provides asset servicing for over 2.2 million issues of U.S. and non-U.S. equity, corporate
and municipal debt issues, and money market instrument from over 100 countries that DTC’s
participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade
settlement among Direct Participants of sales and other securities transactions in deposited
securities through electronic computerized book-entry transfers and pledges between Direct
Participants’ accounts. This eliminates the need for physical movement of securities certificates.
Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust
companies, clearing corporations, and certain other organizations. DTC is a wholly-owned
subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC, in turn, is owned
F-2
by a number of Direct Participants of DTC and Members of the National Securities Clearing
Corporation, Fixed Income Clearing Corporation, and Emerging Markets Clearing Corporation
(NSCC, FICC, and EMCC, also subsidiaries of DTCC), as well as by the New York Stock
Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities
Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non-
U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that
clear through or maintain a custodial relationship with a Direct Participant, either directly or
indirectly ("Indirect Participants"). DTC has a Standard & Poor’s rating of AA+. The DTC
Rules applicable to its Participants are on file with the Securities and Exchange Commission.
More information about DTC can be found at www.dtcc.com and www.dtc.org.
3. Purchases of Bonds under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest
of each actual purchaser of each Bond ("Beneficial Owner") is in turn to be recorded on the
Direct and Indirect Participants’ records. Beneficial Owners will not receive written confirmation
from DTC of their purchase. Beneficial Owners are, however, expected to receive written
confirmations providing details of the transaction, as well as periodic statements of their
holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into
the transaction. Transfers of ownership interests in the Bonds are to be accomplished by entries
made on the books of Direct and Indirect Participants acting on behalf of Beneficial Owners.
Beneficial Owners will not receive certificates representing their ownership interests in Bonds,
except in the event that use of the book-entry system for the Bonds is discontinued.
4. To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC
are registered in the name of DTC’s partnership nominee, Cede & Co. or such other name as
may be requested by an authorized representative of DTC. The deposit of Bonds with DTC and
their registration in the name of Cede & Co. or such other nominee do not effect any change in
beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds;
DTC’s records reflect only the identity of the Direct Participants to whose accounts such Bonds
are credited, which may or may not be the Beneficial Owners. The Direct and Indirect
Participants will remain responsible for keeping account of their holdings on behalf of their
customers.
5. Conveyance of notices and other communications by DTC to Direct Participants, by
Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time. Beneficial Owners of Bonds may
wish to take certain steps to augment transmission to them of notices of significant events with
respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the
security documents. For example, Beneficial Owners of Bonds may wish to ascertain that the
nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to
Beneficial Owners, in the alternative, Beneficial Owners may wish to provide their names and
addresses to the registrar and request that copies of the notices be provided directly to them.
6. Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue
are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each
Direct Participant in such issue to be redeemed.
7. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with
respect to the Bonds unless authorized by a Direct Participant in accordance with DTC’s
Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as
F-3
possible after the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting
rights to those Direct Participants to whose accounts the Bonds are credited on the record date
(identified in a listing attached to the Omnibus Proxy).
8. Principal and interest payments on the Bonds will be made to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC, or such other
nominee as may be requested by an authorized representative of DTC. DTC’s practice is to
credit Direct Participants’ accounts, upon DTC’s receipt of funds and corresponding detail
information from Issuer or Agent on payable date in accordance with their respective holdings
shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by
standing instructions and customary practices, as is the case with securities held for the
accounts of customers in bearer form or registered in "street name," and will be the
responsibility of such Participant and not of DTC nor its nominee, Agent, or Issuer, subject to
any statutory or regulatory requirements as may be in effect from time to time. Payment of
redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other
nominee as may be requested by an authorized representative of DTC) is the responsibility of
Issuer or Agent, disbursement of such payments to Direct Participants will be the responsibility
of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility
of Direct and Indirect Participants.
9. DTC may discontinue providing its services as securities depository with respect to
the Bonds at any time by giving reasonable notice to Issuer or Agent. Under such
circumstances, in the event that a successor securities depository is not obtained, security
certificates are required to be printed and delivered.
10. The Issuer may decide to discontinue use of the system of book-entry-only transfers
through DTC (or a successor securities depository). In that event, security certificates will be
printed and delivered to DTC.
11. The information in this section concerning DTC and DTC’s book-entry system has
been obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility
for the accuracy thereof.
R-15-73
Meeting 15-13
May 13, 2015
AGENDA ITEM 8
AGENDA ITEM
Resolution of Support Endorsing Six Priority Conservation Areas in San Mateo County and Nine
Priority Conservation Areas in Santa Clara County nominated by the Midpeninsula Regional
Open Space District ; and a Resolution of Support for Two Priority Conservation Areas
Nominated by the California State Coastal Conservancy and a Resolution of Support for One
Priority Conservation Area Nominated by the City of Menlo Park
GENERAL MANAGER’S RECOMMENDATIONS
1. Adopt a resolution of support endorsing the nomination of six (6) Priority Conservation
Areas in San Mateo County and nine (9) Priority Conservation Areas in Santa Clara County,
as well as the PCA designation categories selected for the existing and new Priority
Conservation Areas.
2. Adopt resolutions of support for the nomination of the following Priority Conservation Areas
by other agencies: 1) the Menlo Park and East Palo Alto Baylands, which includes
Ravenswood Open Space Preserve, nominated by the City of Menlo Park and 2) the corridors
for the California Coastal Trail and San Francisco Bay Area Water Trail nominated by the
California State Coastal Conservancy.
SUMMARY
At its January 14, 2015 meeting, the District Board of Directors (Board) received an
informational presentation on the ABAG’s Priority Conservation Area (PCA) program (R-15 -
02). Since then, District staff has coordinated and collaborated extensively with multiple
juris dictions, agencies, and partners to seek input on and further refine the District’s proposed
nomination of six (6) PCAs in San Mateo County and nine (9) PCAs in Santa Clara County.
Staff has also identified which PCA categories to assign to the five existing PCAs that were
nominated during the first round of PCA nominations in 2007. The PCA application, which is
due by May 30, requires a Board -adopted resolution for the PCA nominations and categories. In
addition, the District has been asked for resolutions of support for three separate PCAs being
nominated by the California State Coastal Conservancy (Coastal Conservancy) and the City of
Menlo Park.
R-15 -73 Page 2
DISCUSSION
The PCA program is a voluntary program for local jurisdictions, which includes Counties, Cities
and Open Space Special Districts, to contribute to a list and mapping of regionally significant
open space areas that have evidence-based conservation, restoration, and/or recreation value.
ABAG is administering this 2014 -15 PCA program as the second round of PCA nominations
following the initial PCA program in 2007 -08. Specific projects within PCAs would potentially
be eligible and/or better positioned for future funding. If approved by the Board, approximately
95% of District lands will be within a Priority Conservation Area.
An important consideration for the District is that future funding sources may favor PCA
designations. For example, the first PCA grant program that was piloted in 2013 required that all
projects be located within a designated PCA. Discussions regarding the next round of the PCA
grant program are anticipat ed to begin this summer as the 2015 update to Plan Bay Area begins.
It is possible that other grant funding sources, such as the highly anticipated new Proposition 1
grant program, could consider includ ing a PCA designation as an evaluation criterion.
General Approach for new PCA nominations
The General Manager is proposing new PCAs that would:
• Integrate with the 2008-adopted PCAs, where new PCAs would promote contiguous open
space/parklands and regional trail connectivity and close remaining gaps;
• Focus on priority conservation areas as identified by the District’s Vision Plan; and
• Reflect areas of high importance to biodiversity, water quality and supply, agriculture,
community health, regional recreation, and climate change resiliency ; and receive broad
consensus and support from local jurisdictions and partner agencies.
Outreach
The 2014-15 PCA program requires nominating agencies to outreach to affected local
jurisdictions. Since the fall of 2014, District staff has been coordinating extensively with a wide
range of partners and jurisdictions to receive input and garner support on the proposed PCAs
(Table 1).
Table 1. Outreach to Jurisdictions, Agencies, and Partners
1. County of Santa Clara
a. Parks and Recreation Department
b. Planning Department
2. County of San Mateo
a. Parks and Recreation Department
b. Planning Department
c. Farm Bureau
d. Agricultural Advisory Committee
e. Pescadero Municipal Advisory Council
f. Parks Commission
g. Planning Commission
h. Board of Supervisors
3. City of Cupertino
4. Town of Los Altos Hills
5. Town of Los Gatos
6. City of Menlo Park
7. City of Palo Alto
8. Town of Portola Valley
a. Planning Commission
b. Town Council
9. City of San Jose
10. City of Saratoga
11. Town of Woodside
a. Open Space Committee
b. Town Council
12. Santa Clara County/Cities Managers’
Association
13. San Mateo County City Managers’
Association
14. Santa Clara Valley Water District
15. Peninsula Open Space Trust
16. Hidden Villa
17. The Nature Conservancy
18. Bay Area Ridge Trail
19. Greenbelt Alliance
R-15 -73 Page 3
In January, the District sent written notification letters and maps to the affected jurisdictions to
provide the required 90 days for their staff and elected bodies to formally consider or comment
on the nominations, where the comment period ended on May 1, 2015. The very e arly
consultation and ongoing collaboration has resulted in productive discussions and broad
consensus and support for the nominations, including multiple resolutions and letters of support
that will be included in the District’s application.
Proposed PCAs in San Mateo County
In San Mateo County, the District is nominating six PCAs (Attachment 5) for which the General
Manager is recommending that the Board adopt a resolution of support. These six PCAs include
District -owned lands at eleven preserves: Miramontes Ridge, Purisima Creek Redwoods, El
Corte de Madera Creek, Tunitas Creek, La Honda Creek, Teague Hill, Windy Hill, Coal Creek,
Russian Ridge, Skyline Ridge, and Long Ridge Open Space Preserves. In addition, San Mateo
County Parks requested that Huddart and Wunderlich County Parks be included as part of the
District’s proposed Teague Hill PCA (SM3) due to their adjacency and future partnership
opportunities to help implement the Master Plan for Huddart and Wunderlich County Parks.
Map
Key
Proposed
PCAs
Open Space
Preserves
Affected
Jurisdictions
Vision Plan
Priority #s
Proposed
Categories
SM1 Miramontes Miramontes Ridge County of San
Mateo 1, 27 & 28
Regional Recreation,
Natural Landscapes,
Agricultural Lands
SM2 North Skyline
Purisima and El
Corte de Madera
Creek
County of San
Mateo 3, 4 & 33 Regional Recreation,
Natural Landscapes
SM3 Teague Hill Teague Hill
County of San
Mateo/
Woodside
34 Regional Recreation,
Natural Landscapes
SM4 Southern San
Mateo Coast
Tunitas Creek & La
Honda
County of San
Mateo
7, 13, 14, 32,
39, 42, 43, 44
& 48
Regional Recreation,
Natural Landscapes,
Agricultural Lands
SM5 Windy Hill Windy Hill & Coal
Creek
County of San
Mateo/
Portola Valley
6, 8, 10 & 40 Regional Recreation,
Natural Landscapes
SM6 South Skyline
Russian Ridge,
Skyline Ridge, and
Long Ridge
County of San
Mateo 15, 16 & 46 Regional Recreation,
Natural Landscapes
Proposed PCAs in Santa Clara County
In Santa Clara County, the District is nominating nine PCAs (Attachment 6) for which the
General Manager is recommending that the Board adopt a resolution of support. These nine
PCAs include District -owned lands at seven preserves: Los Trancos, Monte Bello, Rancho San
Antonio, El Sereno, Sierra Azul, St. Joseph’s Hill, and Bear Creek Redwoods Open Space
Preserves. In addition, Santa Clara County Parks requested that Rancho San Antonio, Stevens
Creek, Sanborn-Skyline , and Lexington Reservoir County Parks be included as part of the
District’s proposed PCAs (SC3, SC4, SC5, SC6 and SC8), since the County was not nominating
PCAs in this round. The Town of Los Gatos requested that their Novitiate Park be included as
part of the District’s proposed PCA for El Sereno/Sierra Azul (SC7).
Deleted: , Agricultural Lands
R-15 -73 Page 4
Map
Key Proposed P CAs Open Space
Preserves
Affected
Jurisdictions
Vision Plan
Priority #s
Proposed
Categories
SC1 Palo Alto Open
Space
Los Trancos and
Monte Bello Palo Alto 47 Regional Recreation,
Natural Landscapes
SC2
Hidden Villa /
Rancho San
Antonio
Rancho San
Antonio Los Altos Hills 11 & 41
Regional Recreation,
Natural Landscapes,
Agricultural Lands
SC3 Southeast Rancho
San Antonio
Rancho San
Antonio
County of
Santa Clara N/A Regional Recreation,
Natural Landscapes
SC4 Cupertino Open
Space
Rancho San
Antonio Cupertino 11 Regional Recreation,
Natural Landscapes
SC5 Stevens Creek Monte Bello County of
Santa Clara 17 & 47 Regional Recreation,
Natural Landscapes
SC6 Saratoga-to-the-Sea N/A Saratoga 18 Regional Recreation,
Natural Landscapes
SC7 El Sereno / Sierra
Azul
El Sereno, St.
Joseph’s Hill,
and Sierra Azul
Los Gatos 19, 24, & 53 Regional Recreation,
Natural Landscapes
SC8 Critical Wildlife
Linkage
El Sereno, Bear
Creek
Redwoods, and
Sierra Azul
County of
Santa Clara
19, 20, 21,
22, 23,25 &
54
Regional Recreation,
Natural Landscapes
SC9 Eastern Sierra Azul Sierra Azul San Jose 24 Regional Recreation,
Natural Landscapes
Proposed Categories for Existing and New PCAs
The 2014-15 PCA program is also requiring nominating agencies to identify categories for each
new PCA and for existing PCA that was nominated in 2007-08 (Attachment 7). These
applicable categories are as follows:
1. Natural Landscapes – Areas critical to the functioning of wildlife and plant habitats,
aquatic ecosystems and the region's water supply and quality.
2. Agricultural Lands – Farmland, grazing land, and timberland that support the region's
agricultural economy and provide additional benefits such as habitat protection and
carbon sequestration .
3. Urban Greening – Existing and potential green spaces in cities that increase habitat
connectivity, improve community health, capture carbon emissions, and address
stormwater.
4. Regional Recreation – Existing and potential regional parks, trails, and other publicly
accessible recreation facilities.
The District has four existing PCAs and the Peninsula Open Space Trust has one existing PCA
for the Lobitos Ridge Corridor. The General Manager recommend s assigning the following
proposed categories as listed below. The District has consulted with POST on the proposed
categories for their Lobitos Ridge Corridor, and POST supports these categories.
R-15 -73 Page 5
Existing PCAs (2007 -08) Proposed Categories
Gateway to the San Mateo County Coast Regional Recreation, Natural Landscapes,
Agricultural Lands
Upper San Gregorio Creek Headwaters Regional Recreation, Natural Landscapes,
Agricultural Lands
Upper Stevens Creek Watershed Area Regional Recreation, Natural Landscapes,
Agricultural Lands
Upper Los Gatos Creek Watershed Regional Recreation, Natural Landscapes
Lobitos Ridge Corridor (originally nominated by
POST)
Regional Recreation, Natural Landscapes,
Agricultural Lands (supported by POST)
Support for Other Nominating Agency PCAs
Three PCAs are being nominated by other lead agencies within the District’s jurisdiction for
which the General Manager is recommending that the Board adopt resolutions of support. These
include:
1) The Menlo Park and East Palo Alto Baylands. The City of Menlo P ark intends to nominate a
PCA in partnership with the City of East Palo Alto and the District for an area that will
extend along the baylands of both cities and include Ravenswood Open Space Preserve
(Attachment 8). The City of Menlo Park has coordinated extensively with affected agencies,
jurisdictions, and property owners in the immediate area, including the City of East Palo
Alto, the City of San Jose, San Francisco Public Utility Commission, and the San
Francisquito Creek Joint Powers Authority. They are seeking a resolution of support from
the District for their nominated PCA, which would be designated with the Regional
Recreation, Natural Landscapes, and Urban Greening categories. The General Manager
recommends supporting the City of Menlo Park’s nomination for the Menlo Park and East
Palo Alto Baylands PCA.
2) Corridors for the Coastal Trail and San Francisco Bay Area Water Trail. The Coastal
Conservancy (Conservancy) intends to nominate the Coastal Trail as a PCA in the Regional
Recreation category (Attachment 9). It is a network of public trails extending along the
1,200-mile California coastline. This designation would be similar to the existing PCAs that
include the San Francisco Bay Trail and the Bay Area Ridge Trail, which both received
funding from the 2013 PCA grant program. The Conservancy is working with the Counties
of San Mateo, San Francisco, Marin, and Sonoma on resolutions by the boards of supervisors
supporting the nomination of the Coastal Trail. The District has also been approached for a
resolution of support, and the General Manager recommends supporting the Conservancy on
this PCA nomination. The District’s support of the Coastal Trail PCA would not commit the
District to long-term maintenance or management of the Coastal Trail.
The Conservancy also intends to nominate the San Francisco Bay Area Water Trail (Water
Trail) as a PCA in the Regional Recreation category (Attachment 10). The Conservancy has
notified the District of this proposed Water Trail PCA due to the shoreline lands at
Ravenswood Open Space Preserve and Cooley Landing, where no designated Water Trail
R-15 -73 Page 6
sites have yet been identified. The General Manager recommends supporting the
Conservancy on this PCA nomination. The District’s support of the Water Trail PCA would
not commit the District to long-term maintenance or management of the Water Trail.
FISCAL IMPACT
Nominations may in the future help leverage outside grant funds.
BOARD COMMITTEE REVIEW
This item was presented to the full Board as an informational item on January 14, 2015.
PUBLIC NOTICE
Public notice was provided as required by the Brown Act.
CEQA COMPLIANCE
This action is not a project under the California Environmental Quality Act (CEQA), and no
CEQA analysis is therefore required.
NEXT STEPS
With Board adoption, staff will submit an application for the nominated PCAs to ABAG at the
end of May to meet ABAG’s May 30 deadline.
Attachments
1. Resolution of Support for the District’s nomination of 15 PCAs in San Mateo and Santa
Clara Counties
2. Resolution of Support for the City of Menlo Park’s Menlo Park and East Palo Alto
Baylands PCA
3. Resolution of Support for the California State Coastal Conservancy’s Coastal Trail PCA
4. Resolution of Support for the California State Coastal Conservancy’s San Francisco Bay
Area Water Trail PCA
5. Map of Proposed New Priority Conservation Areas in San Mateo County (2014-15)
6. Map of Proposed New Priority Conservation Areas in Santa Clara County (2014-15)
7. Map of Existing Priority Conservation Areas (2007-08)
8. Map of Menlo Park and East Palo Alto Baylands PCA
9. Map of Coastal Trail PCA (provided by California State Coastal Conservancy )
10. Map of San Francisco Bay Area Water Trail PCA (provided by California State Coastal
Conservancy)
Responsible Department Head:
Jane Mark, AICP, Planning Manager
Prepared by:
Tina Hugg , Senior Planner
Jane Mark, AICP, Planning Manager
Casey Hiatt, GIS Administrator
Graphics prepared by:
Casey Hiatt, GIS Administrator
Michele Childs, GIS Technician
Attachment 1
1
RESOLUTION NO. 15-___
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT
ENDORSING NOMINATIONS OF PRIORITY CONSERVATION AREAS
IN SAN MATEO AND SANTA CLARA COUNTIES AND THE
PROPOSED CATEGORIES TO ASSIGN TO THE PRIORITY
CONSERVATION AREAS
WHEREAS , the Association of Bay Area Governments (ABAG) has established Priority
Conservation Areas (PCAs ) as an integral part of the Plan Bay Area multi-agency regional
planning initiative ; and
WHEREAS , in 2007, ABAG requested nominations from local governments and land
conservation organizations for Priority Conservation Areas (PCAs) pursuant to the “Focusing
our Vision” (FOCUS) program, a multi-agency regional planning initiative; and
WHEREAS , in August 2007, the Midpeninsula Regional Open Space District (District)
nominated four PCAs as part of the FOCUS program and submitted applications for the Gateway
to the San Mateo County Coast, Upper San Gregorio Creek Headwaters , Upper Stevens Creek
Watershed Area, and Upper Los Gatos Creek Watershed PCAs in San Mateo and Santa Clara
Counties; and
WHEREAS , in August 2007, in addition to the District’s nomination, the Peninsula
Open Space Trust (POST) and District jointly submitted a nomination for the Lobitos Ridge
Corridor PCA in San Mateo County; and
WHEREAS, PCAs are intended to be areas which contain important agricultural, natural
resource, watershed, historic, scenic, cultural, recreational, and/or ecological values and
ecosystem functions deserving of conservation funding; and
WHEREAS, PCA designations will provide enhanced grant opportunities for long-term
conservation activities and improvements to designated open space areas; and
WHEREAS, the five PCAs that were nominated in 2007 by the District and POST, and
subsequently approved by ABAG , are mutually compatible and complementary, and represent a
diverse and balanced mix of conservation priorities in San Mateo and Santa Clara Counties; and
WHEREAS , in July 2014, ABAG adopted updates and revisions to the PCA program
and a new application process for public agencies and open space districts to nominate new
PCAs, and requested nominations from local governments and special districts for new PCAs;
and
WHEREAS , in December 2014, ABAG undertook a confirmation process for the
existing PCAs that ABAG approved in 2008, notified local jurisdictions of the existing PCAs
that the District and POST nominated in 2007, and received no objections to the District’s and
POST’s existing PCAs during this 90-day comment period; and
Attachment 1
2
WHEREAS , on January 14, 2015, the District’s Board of Directors received an
informational presentation on the PCA program and an overview of the 15 proposed PCAs in
San Mateo and Santa Clara Counties prior to the District notifying the affected local jurisdictions
as part of the District’s PCA outreach; and
WHEREAS , on January 29, 2015, the District issued a notification letter to the Counties
of San Mateo and Santa Clara and eight cities regarding the proposed PCA within their
jurisdiction s; an d the District received no objections to the nominations at the conclusion of the
90-day notification period that ended on May 1, 2015; and
WHEREAS , between February and May 2015, the District conducted extensive outreach
to public agency staff, elected officials and partner organizations on the proposed PCAs, and
received Resolutions of Support from the Towns of Los Gatos, Portola Valley and Woodside,
and letters of support from POST, Greenbelt Alliance and the City of Saratoga for the District’s
nominations; and
WHEREAS, within San Mateo County, the District met with the San Mateo County
Planning Office and Parks Department, and presented the proposed PCAs to the San Mateo
County Farm Bureau, Agricultural Advisory Committee, Pescadero Municipal Advisory Council
and County Parks Commission as part of the PCA outreach prior to seeking support from by the
County Planning Commission and Board of Supervisors; and
WHEREAS, within Santa Clara County, the District met with the Santa Clara County
Planning Office and Parks Department, where the Planning Office informed the County Board of
Supervisors of the District’s and other agencies’ proposed PCAs, and the District met with and
received broad consensus from the Santa Clara Valley Water District, Hidden Villa and other
partners on the proposed PCAs; and
WHEREAS, as part of this 2014-2015 PCA application process, ABAG is seeking
recommendations for assigning categories to the existing PCAs that the District and POST
nominated in 2007, and the District is recommending Regional Recreation, Natural Landscapes
and Agricultural Lands categories for the District’s existing PCAs for Gateway to the San Mateo
County Coast, Upper San Gregorio Creek Headwaters, Upper Stevens Creek Watershed Area,
and the District is recommending Regional Recreation and Natural Landscapes categories for the
District’s existing PCA Upper Los Gatos Creek Watershed, and POST concurs with the
District’s recommendations for Regional Recreation, Natural Landscapes and Agricultural Lands
categories for POST’s Lobitos Ridge Corridor PCA; and
WHEREAS , the Board finds that nominating these PCAs is not a project under CEQA.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Midpeninsula Regio nal Open Space District as follows:
1. The Board hereby endorses the District’s nominations for 15 Priority Conservation Areas and
their assigned categories, listed below and described in Exhibits A and B, which are attached
hereto and incorporated herein by this reference:
• SM1: Miramontes: Regional Recreation, Natural Landscapes, and Agricultural Lands
• SM2: North Skyline: Regional Recreation and Natural Landscapes
Attachment 1
3
• SM3: Teague Hill: Regional Recreation and Natural Landscapes
• SM4: Southern San Mateo Coast: Regional Recreation, Natural Landscapes, and
Agricultural Lands
• SM5: Windy Hill: Regional Recreation, and Natural Landscapes.
• SM6: South Skyline: Regional Recreation and Natural Landscapes
• SC1: Palo Alto Open Space: Regional Recreation and Natural Landscapes
• SC2: Hidden Villa/Rancho San Antonio: Regional Recreation, Natural Landscape and
Agricultural Lands
• SC3: Southeast Rancho San Antonio: Regional Recreation and Natural Landscapes
• SC4: Cupertino Open Space: Regional Recreation and Natural Landscapes
• SC5: Stevens Creek: Regional Recreation and Natural Landscapes
• SC6: Saratoga-to -Sea: Regional Recreation and Natural Landscapes
• SC7: El Sereno/Sierra Azul: Regional Recreation and Natural Landscapes
• SC8: Critical Wildlife Linkage: Regional Recreation and Natural Landscapes
• SC9: Eastern Sierra Azul: Regional Recreation and Natural Landscapes
2. The Board hereby endorses the assigned categories for the District and POST’s five existing
Priority Conservation Areas as listed below:
• Gateway to the San Mateo County Coast: Regional Recreation, Natural Landscapes
and Agricultural Lands
• Upper San Gregorio Creek Headwaters: Regional Recreation, Natural Landscapes
and Agricultural Lands
• Upper Stevens Creek Watershed Area: Regional Recreation, Natural Landscapes and
Agricultural Lands
• Upper Los Gatos Creek Watershed : Regional Recreation and Natural Landscapes
• Lobitos Ridge Corridor: Regional Recreation, Natural Landscapes and Agricultural
Lands
3. The General Manager and General Counsel are authorized to execute any and all other
documents necessary or appropriate to submit an application for the nominated Priority
Conservation Areas to the Association of Bay Area Governments.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional
Open Space District on the 13th of May 2015, at a Regular Meeting thereof, by the following
vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Deleted: and
Deleted: , and Agricultural Lands
Deleted: ,
Deleted: and Agricultural Lands
Attachment 1
4
ATTEST: APPROVED:
Secretary
Board of Directors
Pete Siemens, President
Board of Directors
APPROVED AS TO FORM:
General Counsel
I, the Interim 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.
Interim District Clerk
Exhibit A
May 13, 2015
680
Portola
Redwoods State Park
¡84
Milpitas
Jasper
Ridge
Ravenswood
Thornewood
Foothills
Stevens CreekShorelineNature Study Area
Picchetti
Ranch
St. Joseph's Hill
Felton Station
East
Palo
Alto
Palo AltoFoothills
Park
Pearson-ArastraderoPreserve
Loch
LomondRecreation Area
Stevens CreekCountyPark
Henry Cowell Redwoods
State
Park
Henry Cowell Redwoods(Fall Creek
Unit)
Monte
Sereno
Swanton PacificRanch
Don Edwards National Wildlife Refuge
¡9
¡9
¡17
Santa Clara
Portola
Valley
Atherton
¡17
¡011¡802
¡85
¡85
¡87
237
Los Altos
Menlo Park
Los
Altos
Hills
Cupertino
Midpen Proposed Priority Conser vation
Areas, Santa Clara County
SC1
SC2
SC4
SC3
SC5
SC6
SC7
SC8
SC9
Existing Priority
Conservation
Areas
Rancho
San Antonio
Monte
Bello
Los
Trancos
Saratoga
Gap
El Sereno
Sierra Azul
Open Space
Preserve
Sanborn-
Skyline
Sanborn-
Skyline
Hidden
Villa
(Exhibit B)
May 13, 2015
Attachment 2
RESOLUTION NO. 15-______
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT SUPPORTING THE CITY OF MENLO
PARK’S NOMINATION OF MENLO PARK AND EAST PALO ALTO
BAYLANDS AS A PRIORITY CONSERVATION AREA
WHEREAS, in 2014, the Association of Bay Area Governments requested nominations from local
governments and special districts for Priority Conservation Areas pursuant to the Plan Bay Area multi -
agency regional planning initiative; and
WHEREAS, Priority Conservation Areas are areas of regional significance which contain
important agricultural, natural resource, watershed, historic, scenic, cultural, recreational, and/or
ecological values and ecosystem functions deserving of conservation funding; and
WHEREAS, the City of Menlo Park is the nominating agency for the Menlo Park and East Palo
Alto Baylands (Baylands) Priority Conservation Area, which include s Ravenswood Open Space Preserve
(Preserve), owned by the Midpeninsula Regional Open Space District (District); and
WHEREAS, the categories for this nominated Priority Conservation Area include Regional
Recreation, Natural Landscapes, and Urban Greening; and
WHEREAS, the District supports the designation of the regionally-significant Baylands as a
Priority Conservation Area, which would make it eligible for crucial funding; and
WHEREAS, the District’s support of the City of Menlo Park’s Priority Conservation Area
nomination does not commit the District to long-term management and maintenance of areas outside
District lands; and
NOW, THEREFORE, be it resolved that the District hereby supports the designation of the Menlo Park
and East Palo Alto Baylands as a Priority Conservation Area.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space
District on the 13th of May 2015, at a Regular Meeting thereof, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST: APPROVED:
Secretary
Board of Directors
Pete Siemens, President
Board of Directors
Attachment 2
APPROVED AS TO FORM:
General Counsel
I, the Interim 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.
Interim District Clerk
Attachment 3
RESOLUTION NO. 15-___
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT SUPPORTING THE CALIFORNIA
COASTAL TRAIL AS A PRIORITY CONSERVATION AREA
WHEREAS, in 2014, the Association of Bay Area Governments requested nominations from local
governments and special districts for Priority Conservation Areas pursuant to the Plan Bay Area multi -
agency regional planning initiative; and
WHEREAS, Priority Conservation Areas are areas of regional significance which contain
important agricultural, natural resource, watershed, historic, scenic, cultural, recreational, and/or
ecological values and ecosystem functions deserving of conservation funding; and
WHEREAS, the California Coastal Trail is a network of public recreation trails for walkers,
bicyclists, equestrians, wheelchair riders and others along the 1,200 -mile California coastline; and
WHEREAS, the County of San Mateo hosts a portion of the California Coastal Trail alignment
within its boundaries, providing opportunities for solitude and passive and active recreation, including
promoting fitness through healthy exercise; and
WHEREAS, the County of San Mateo, Parks and Recreation Department, supports the designation
of the regionally-significant California Coastal Trail as a Priority Conservation Area, which would make
it eligible for crucial funding; and
WHEREAS, the Midpeninsula Regional Open Space District (District) also supports the
designation of the regionally-significant California Coastal Trail as a Priority Conservation Area, which
would make it eligible for crucial funding; and
WHEREAS, the District’s support of the Coastal Trail, nominated by the California State Coastal
Conservancy, does not commit the District to long-term management and/or maintenance of the statewide
trail; and
NOW, THEREFORE, be it resolved that the District hereby supports the designation of the California
Coastal Trail as a Priority Conservation Area.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space
District on the 13th of May 2015, at a Regular Meeting thereof, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Attachment 3
ATTEST: APPROVED:
Secretary
Board of Directors
Pete Siemens, President
Board of Directors
APPROVED AS TO FORM:
General Counsel
I, the Interim 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.
Interim District Clerk
Attachment 4
RESOLUTION NO. 15-______
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT SUPPORTING THE SAN FRANCISCO
BAY AREA WATER TRAIL AS A PRIORITY CONSERVATION AREA
WHEREAS, in 2014, the Association of Bay Area Governments requested nominations from local
governments and special districts for Priority Conservation Areas pursuant to the Plan Bay Area multi -
agency regional planning initiative; and
WHEREAS, Priority Conservation Areas are areas of regional significance which contain
important agricultural, natural resource, watershed, historic, scenic, cultural, recreational, and/or
ecological values and ecosystem functions deserving of conservation funding; and
WHEREAS, the California State Legislature enacted the Water Trail Act (AB 1296) in 2005
establishing the San Francisco Bay Area Water Trail (Water Trail), a growing network of launching and
landing sites that allows non-motorized small boat users to better enjoy the historic, scenic, cultural, and
environmental richness of San Francisco Bay; and
WHEREAS, the Water Trail benefits the region by improving and increasing recreational access
for non-motorized small boat use by persons of all abilities, fosters stewardship of the Bay and reduces
impacts to sensitive wildlife and habitat through education of boaters, and provides economic benefits to
waterfront and water-oriented businesses by promoting opportunities for single and multi -day excursions
on the Bay; and
WHEREAS, the Midpeninsula Regional Open Space District (District) supports the designation of
the regionally-significant Water Trail as a Priority Conservation Area, which would make it eligible for
crucial funding; and
WHEREAS, the District’s support of the Water Trail, nominated by the California State Coast al
Conservancy, does not commit the District to long-term management and/or maintenance of the regional
trail; and
NOW, THEREFORE, be it resolved that the District hereby supports the designation of the San
Francisco Bay Area Water Trail as a Priority Conservation Area.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space
District on the 13th of May 2015, at a Regular Meeting thereof, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
Attachment 4
ATTEST: APPROVED:
Secretary
Board of Directors
Pete Siemens, President
Board of Directors
APPROVED AS TO FORM:
General Counsel
I, the Interim 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.
Interim District Clerk
Ul Proposed Priority Conservation Areas
San Mateo County (Attachment 5)
Nati-
MIDPENINSULA
VREGIONAL
OPEN
, SPACE
i
Bu
Ranch State
SM4: Southern
San Mateo Coast
SM1: Miramontes
Wildlife
San Carlos Refuge
[gas ��—
e Redwood
East, �o
Palo oC
\O
on Edwards
National
Palo Alto Wildlife
Refuge
Jasper
Wunderlich w, g Mountain
unty ty Park Ride t ;Q,,,
Thornewood " .
Portola - - -
Los Altos
ssian Monte®
idge Bell SM6 : South
Skyli � Skyline
Ri
Existing Priority
Conservation Areas
\Stevens Creek
Shoreline
Nature
Study Area
Midpen Proposed Priority Conservation
Areas, Santa Clara County (Attachment 6)
Dan Edwards
National
Wildlife
Henry Cowell
Redwoods
(Fall Creek
Unit)
Stevens Creek
Shoreline
Nature
Study Area
Existing Priority
Conservation
Upper Stevens
Creek Watershed
Upper Stevens
Creek Watershed
(Attachment 7)
•
.4
Proposed Priority Conservation Area Within
Menlo Park and East Palo Alto (Attachment 8)
San
Francisco
Bay
I
r
fib.
Bedw
• Bayfr
rk
'U—•-•-•-.
I
I
I
/
i
;' Proposed 45.
Priority `♦
/ Conservation Area\
i 4
i 5
Don Edwards
San Francisco Bay
National Wildlife Refuge
Menlo Park
Ravenswood
Open Space
Preserve
Don Edwards
San Francisco Bay
S.
_.1
National Wildlife
Refuge
S.
♦.
♦,
• •' ••. O Imes° Park' -J � *IN*
,�
♦.� East Palo i�
.•
East ��
Palo '
I A se om`� - Num IQa� •
y Alto �,•�
'`� + Baylands •
gee ,�- �o.� Nature 5
uito G J +.. , $ Preserve i
•
,111
k- ' j
s Palo Alt •
ova
Proposed PCA
•
•
•
11
0
1 0 0.275 0.55 1.1 Miles
• I I I I
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!!!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!!
!
!!!!!!!!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
C O L U S A
L A K E
M E N D O C I N O
M O N T E R E Y
N A P A
N E V A D A
P L A C E R
S A N
B E N I T O
S A N
J O A Q U I N
S A N T A
C R U Z
S O N O M A
S T A N I S L A U S
S U T T E R
Y O L O
C O N T R A
C O S T A
A L A M E D A
S A N
F R A N C I S C O
M A R I N
S O L A N O
S A C R A M E N T O
S A N
M A T E O
S A N T A
C L A R A
San FranciscoWater District
San FranciscoWatershedLands
SierraAzul OS
The Forestof NiseneMarks SP
Briones RP
CastleRock SP
CoastDairies
EdenLanding ER
LakeBerryessa
Annadel SP
Grizzly IslandWildlife Area
Pacheco SP
Henry W.Coe SP
HollisterHills SVRA
Joseph D.Grant Park
KnoxvilleWildlife Area
Lake SonomaWildlife Area
LosVaquerosWatershed
Marin MunicipalWater DistrictWatershed
CedarRoughsACEC
MountDiablo SP
MountTamalpais SP
Big BasinRedwoods SP
Napa --Sonoma MarshesWildlife Area
PescaderoCreek Park
Point ReyesNationalSeashore
DonEdwardsNWR
Jenner
Headlands
San Pablo BayWildlife Area
Ohlone Reg.Wilderness
Big BasinCemex
San PabloBay NWR
GualalaRiverForest
Antioch
Brentwood
Concord
Martinez
Pittsburg
Richmond
WalnutCreek
Calistoga
Napa
St.Helena
Yountville
Novato
SantaCruz
Watsonville
Fremont
Hayward
Oakland
Healdsburg
Sonoma
DavisWinters
HalfMoonBay Redwood City
Campbell
Cupertino
Gilroy
LosAltos
Milpitas
Morgan
Hill
San Jose
Santa Clara
Saratoga
Vacaville
Benicia
Dixon
Fairfield
Hollister
San JuanBautista
Danville
SanRamon
Dublin
Pleasanton
·þ260
·þ262
·þ112
·þ183
·þ131
·þ61
·þ87
·þ37
·þ123
·þ92
·þ175
·þ12
·þ152
·þ25
·þ129
·þ116
·þ121
·þ4
·þ29
·þ82
·þ35
·þ84
·þ113
·þ1
·þ1
·þ128
·þ1
·þ12
·þ237
·þ13
·þ221
·þ242
·þ220
·þ24
·þ17
·þ156
·þ85
·þ9
·þ130
£¤101
£¤101
£¤101
£¤101
£¤101
£¤101
£¤101
§¨¦80
§¨¦280
§¨¦505
§¨¦580 §¨¦680 §¨¦205
§¨¦380
§¨¦980
§¨¦238
§¨¦80
§¨¦780
§¨¦880
§¨¦505
§¨¦280
§¨¦580
§¨¦680
Elk h orn Slo u g h
P a c h e c o C r e e k
San Joaquin River
R o c k S l o u g h
O l d R i v e rSacramento R iv er
Miner Slough
NewYor
k
Slough
C
a
c
h
e
S
l
o
u
g
h
Alameda C r e e k
P a j a ro Riv e r
C
o
y
ote
C
re
e
k
R
ussia
n
Riv
er
Protected Areas
!!
!!!
!!3 Mile State Line
California Coastal TrailBAY AREA REGION
Existing California Coastal Trail
Attachment 9
Attachment 10
R-15-77
Meeting 15-13
May 13, 2015
AGENDA ITEM 9
AGENDA ITEM
Intent to Accept a Gift of a Conservation Easement over three Los Trancos County Water
District Parcels, two located in unincorporated San Mateo County (Assessor Parcel Numbers
080-060-126 and 080-071-010) and one located in the Town of Portola Valley (Assessor Parcel
Number 080-241-410)
GENERAL MANAGER’S RECOMMENDATIONS
1. Authorize the General Manager to negotiate the terms and conditions of a Conservation
Easement over three Los Trancos County Water District (LTCWD) parcels with San Mateo
County and Woodside Fire Protection District, the successors in interest to the LTCWD
property, to conform to the terms specified herein. This authorization is contingent upon the
completion of the LTCWD dissolution and transfer of properties as further described in this
report.
2. Direct the General Manager to return to the Board of Directors for acceptance of the
Conservation Easement once the various dissolution and property transfer approvals are
secured through other agencies.
SUMMARY
The Midpeninsula Regional Open Space District (District) is being offered a gift of a 3.28-acre
property (Red Shed Property) and a 1.78-acre property (comprised of two parcels that form the
Lake Property), both located along Lake Road in the community of Los Trancos Woods. These
two properties are currently owned by the Los Trancos County Water District (LTCWD), which
is undergoing dissolution and is preparing to transfer fee title of the Lake Property to San Mateo
County (County) and fee title of the Red Shed Property to the Woodside Fire Protection District
(Fire District). Residents of the Los Trancos Woods community have a strong desire to ensure
the protection of the conservation values of these two properties so that they remain in an
undeveloped, natural open space condition in perpetuity. As such, they have worked closely
with the San Mateo County Local Agency Formation Commission (LAFCo) and San Mateo
County Supervisor Don Horsley to facilitate discussions with the District on the potential
transfer of a conservation easement. Although not contiguous to District lands, these properties
do lie within the District’s jurisdictional boundaries and provide habitat for birds and small
mammals.
R-15-77 Page 2
DISCUSSION
The LTCWD is an independent special district that was originally formed to provide water to the
Los Trancos Woods community. The LTCWD’s remaining assets include three parcels within
the Los Trancos Woods community: a 3.28-acre parcel that is largely undeveloped with the
exception of a small Red Shed, and two parcels totaling 1.78 acres that together are mostly
comprised of an impounded reservoir (refer to additional property details below and Attachment
1). In 2005, the LTCWD sold its water system to California Water Service Company and
continued to exist as a district collecting property tax although it no longer performed its original
core function. This situation became the subject of an investigation by the San Mateo County
Civil Grand Jury in 2008-09, which recommended the dissolution of the LTCWD. Many
discussions with multiple potential take-out partners have been facilitated by LAFCo since 2009,
including discussions with the District to consider fee title ownership of the Lake Property. This
proposal was reviewed and considered multiple times by the District with consistent findings that
the property does not meet District criteria for ownership (small parcel, not contiguous to District
land, largely surrounded by development, no direct connection to District trails, not of regional
significance).
Just recently, San Mateo County (County) has agreed to take fee title of the Lake Property and
the Woodside Fire Protection District (Fire District) has agreed to take fee title of the Red Shed
Property. Both agreements include ongoing property maintenance and management. To solidify
the land exchange and proceed with dissolution, the Los Trancos Woods community is seeking
additional assurances that the natural conditions of both properties will be protected in
perpetuity. To this end, LAFCo, Supervisor Horsley, LTCWD Board members, and various
community residents have modified the original request that was made to the District to instead
request acceptance of a conservation easement over both properties.
Red Shed Property
The Red Shed Property is located at 126 Lake Road in unincorporated San Mateo County, within
the Sphere of Influence of the Town of Portola Valley. The property is zoned R-1/S-108 - One
Family Residential District. This parcel is largely in a natural condition with the exception of a
small storage structure commonly referred to as The Red Shed. Although this parcel is small and
largely bordered by Lake Road to the north and east, and neighboring private residences to the
south and west, it does provide habitat for local wildlife, particularly birds and small mammals.
During years of very heavy rainfall, this parcel can retain standing water.
Lake Property
The Lake Property is located just west of Lake Road, opposite the Old Spanish Trail that extends
through property owned by the Town of Portola Valley. This property is comprised of two
parcels, one located in unincorporated San Mateo County, within the Sphere of Influence of the
Town of Portola Valley, and the other located within the Town’s jurisdiction. The parcels are
zoned R-1/S-108 - One Family Residential District and M-R/7.5A/SD-3/DR – Mountainous
Residential District, 7.5 acres. The Lake Property largely consists of a dammed reservoir that
retains year-round water with minimal upland habitat and a small viewing area with one bench.
The reservoir serves as a flyover resting place for local waterfowl. The Lake Property is
bordered by a Town of Portola Valley parcel to the north and west that includes the Lake Trail,
which passes through the common area of the Blue Lakes Subdivision, and by the one-lane Lake
Road and Old Spanish Trail (road) and private residences to the south and west.
R-15-77 Page 3
Neither of these properties is contiguous to District land nor directly accessible via District trails.
However, both properties do lie within the District’s larger jurisdiction. These properties can be
indirectly assessed from the Windy Hill and Coal Creek Open Space Preserves via either Town
of Portola Valley trails or paved roads through the Los Trancos Woods community. The
proposed Conservation Easement over both properties may be made as an addition to Windy Hill
Open Space Preserve.
At this time, the requesting parties are seeking the District’s Board of Directors (Board) intent to
accept the Conservation Easement so that negotiation of terms and conditions can proceed. If
this proposal is supported by the Board, the General Manager recommends finalizing the terms
and conditions of the Conservation Easement once all of the prior approvals necessary for
dissolution and property transfer are obtained for these properties. These approvals would be
managed by the LTCWD and the County, and include: 1) a vote by the LTCWD Board to
approve dissolution, 2) approval of the dissolution application by LAFCO, 3) approval by the
County Board of Supervisors to receive fee title of the Lake Property and establish a County
Maintenance District to receive the ongoing tax assessment for maintenance and management of
the properties, and 4) approval by the Fire District to receive fee title of the Red Shed Property.
Once the approvals are secured, the General Manager would finalize the terms and conditions of
the Conservation Easement prior to bringing the easement to the Board of Directors for approval.
At this time, the General Manager recommends the following proposed terms, which are subject
to change based on further discussions with the affected parties and additional review of the
properties:
Initial Proposed Terms:
• County and Fire District, as fee owners, to be responsible for enforcing their own
ordinances (e.g., trespassing, illegal dumping)
• County and Fire District, as fee owners, to retain all liability and maintenance
responsibility for water bodies, dams, etc.
• County and Fire District to perform all maintenance, repairs (e.g. mowing, fences)
• County and Fire District to perform Phase I and share results with District prior to
acceptance of the Conservation Easement
• District to prepare a baseline site conditions document
• District to perform annual monitoring of the Conservation Easement.
• District at its sole discretion may assign the Conservation Easement should a more
appropriate easement holder emerge in the future.
• No third party beneficiaries to the Conservation Easement
The proposed Conservation Easement would be held solely by the District, who would be
responsible for monitoring the easement and notifying the County and Fire District of any
violations to the easement. The easement would require that both properties be maintained in
their current condition, with no changes in land use and restrict any new infrastructure, including
roads, structures or additional improvements. The County and Fire District, as fee title owners,
would remain responsible for the ongoing maintenance, repairs, and management, including
actions to correct any noted violations. The conservation easement would remain on the
properties in the event of property ownership transfer.
R-15-77 Page 4
FISCAL IMPACT
The proposed easement interests would be granted to the District at no cost. Ongoing monitoring
of the conservation easement would result in a nominal fiscal impact, primarily associated with
staff time to conduct an annual site inspection and prepare a report to be shared with the County
and Fire District. These costs are estimated at approximately $500-$750 per year (in 2015
dollars). Initial discussions with the LTCWD indicate a possibility to have these costs
reimbursed through the continued LTWCD tax assessment.
BOARD COMMITTEE REVIEW
Given the time sensitivity of the easement proposal, this item was not previously reviewed by a
Board Committee.
PUBLIC NOTICE
Notice has been provided as required by the Brown Act. Additional notice was also provided to
all residents that lie within the Los Trancos County Water District.
CEQA COMPLIANCE
Authorization to negotiate the terms and conditions of a Conservation Easement is not
considered a project under the California Environmental Quality Act (CEQA). Future Board
acceptance of a Conservation Easement will be subject to CEQA review.
NEXT STEP
If authorized by the Board, the General Manager will direct staff to negotiate the terms and
conditions of the Conservation Easement once all of the approvals for the dissolution and fee
title transfer have occurred. The Conservation Easement, including terms and conditions, is
expected to return to the Board for acceptance in the summer.
Attachment: Map
Responsible Manager:
Stephen E. Abbors, General Manager
Prepared by:
Ana Ruiz, AICP, Assistant General Manager
Contact person:
Same as above
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
!!
!!
!!
!!
!!
!!
!!
!!
!!
!!
!!
!!
!!
!!
!!
!!
!
!
!!
!
!
!
!
!
!
!!
!!
!
!
!
!
!!
!!
!!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!!
!
!
!
!
!
!
!
!
!
!
!
!
!!
!!
!!
!
!
!
!
!!
!!
!!
!!!!!
!
!
!
!
!
!!!!!!
!!
!
!
!
!
!
!
!!
!!
!!
!!!
!
!
!
!!
!
!
!!
!
!
!
!
!!
!
!
!
!
!!
!
!
!
!
!
!
!!
!!
!!
!
!
!
!
!!
!!
!!
!!
!
!
!
!
!!
!!
!!
!
!
!!
!!
!!
!!
!!
!
!
!!
!!
!!
Coal CreekOpen Space Preserve
L o s Tr a n c o s C o u n t y Wa t e r D i s t r i c t P a r c e l s
MROSD Lands
Other Public Open Space
I
0 0.09 0.180.045 Miles
G:\Projects\Los_Trancos\LosTrancosWater\WaterDistrictParcelsthreeParcels.mxd
Produced by Midpeninsual RegionalOpen Space District, May 2015
SantaClaraCounty
San
MateoCounty
Los Trancos WoodsSubdivision
Los Trancos County Water District Parcels
T o w n o f
P o r t o l a V a l l e y
U n i n c o r p o r a t e d
S a n M a t e o C o u n t y
Watershed Land
Foothills Park (City of Palo Alto)
AlpineRd.
080-060-580Water District Parcel within UnicorporatedSan Mateo County(Red Shed Property)
080-071-010Water District Parcel within UnicorporatedSan Mateo County(Lake Property)
080-241-410Water District Parcel within Town of Portola Valley(Lake Property)
LosTran
c
o
s
R
d
.
MROSD Conservation Easement
R-15-74
Meeting 15-13
May 13, 2015
AGENDA ITEM 10
AGENDA ITEM
Proposed Purchase of the Ashworth Property as an addition to La Honda Creek Open Space
Preserve located on Bear Gulch Road in unincorporated San Mateo County (Assessor’s Parcel
Number 075-340-240).
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 purchase of the Ashworth property.
3. Adopt a Preliminary Use and Management Plan for the property, as set out in the staff report.
4. Indicate the intention to withhold the Ashworth property as public open space.
SUMMARY
The Midpeninsula Regional Open Space District (District) is proposing to purchase the 5.07-acre
Ashworth property for $525,000 as an addition to the La Honda Creek Open Space Preserve
(Preserve). Because of its strategic location, this property may serve a critical role in connecting
El Corte de Madera and La Honda Creek Open Space Preserves in the future. The following
report presents a description of the Ashworth property, a Preliminary Use and Management Plan,
the District’s environmental review, the purchase terms and conditions, and financial
considerations. The proposed purchase is identified as part of Measure AA Project #5. The
Fiscal Year (FY) 2015-16 Budget contains sufficient funds to cover the cost of this purchase.
MEASURE AA
The purchase of the Ashworth property would further the District’s Vision Plan and qualify as a
Measure AA Project. A 5-year Measure AA Project List was approved by the Board at the
October 29, 2014 meeting, which includes Project #5.1 (Pursue Land Conservation Opportunities
at La Honda Creek Open Space Preserve). This project meets the criteria to further the goals of
Project #5.1 as it conserves open space, increases recreational opportunities, and protects the
headwaters of Harrington Creek watershed and its wildlife habitats.
R-15-74 Page 2
DISCUSSION
The Ashworth property is adjacent to the 6,068-acre La Honda Creek Open Space Preserve and
contains the headwaters of Harrington Creek. The 2,906 acre El Corte De Madera Creek Open
Space Preserve is located across Bear Gulch Road in close proximity. The Ashworth property
may serve a critical role in establishing a future connection between the two preserves.
Property Description and Regional Context (see attached map)
The 5.07-acre Ashworth property is located on the east side of Bear Gulch Road approximately
1.5 miles from the intersection of Skyline Boulevard, in unincorporated San Mateo County. The
rectangular shaped parcel is bounded by the Preserve and private property to the south and by
private parcels to the north, east and west.
The parcel was created in 1985 as part of the subdivision of a larger 40-acre property. The
subdivision created three developable parcels and two of the three are improved with single
family residences. The subdivision also required the creation of a Timber Harvest Agreement
with San Mateo County as the property is zoned Timberland Preserve-Coastal Zone (TPZ-CZ).
The Timber Harvest Agreement requires that if a timber harvest occurs, all three parcels be
harvested jointly.
The property is characterized by down sloping terrain that flows into the Harrington Creek
watershed. Redwood, Douglas fir, and mixed evergreen forest grow on the property’s slopes,
with grassy meadows on the flatter plateaus. The property provides varied habitat, forage, and
unimpeded movement for local species. A narrow, unimproved driveway provides access from
Bear Gulch Road and connects to an old road on the La Honda Creek Open Space Preserve.
Improvements and Land Use
The property is not improved with residential or agricultural structures. There are two wood
stage structures and a former shed structure on the property as well as a network of single track
trails and an old road. Prior percolation and water well testing indicate that a single family home
would be supported. The property has electrical service via an above ground PG&E transmission
line that passes through the property.
USE AND MANAGEMENT
Planning Considerations
The property is comprised of one legal parcel, located in unincorporated San Mateo County. The
5.07-acre parcel has a General Plan designation of Timber Production-Rural, with a zoning
designation of TPZ-CZ (Timberland Preserve - Coastal District). Per the County General Plan,
outdoor recreation, open space, and outdoor education are allowable uses in rural land use areas
with a TPZ-CZ designation. Per the zoning designation, only one dwelling unit is permitted. No
applications are on file.
Per the County’s General Plan Rural Land Use Element, land within the TPZ District “may not
be divided into parcels less than 160 acres in size unless a timber management plan is approved
by a four-fifths vote of the Board of Supervisors.” A Timber Management Plan was adopted as
part of a Timber Harvest Agreement (THA) by the San Mateo County Board of Supervisors on
June 23, 1987 (Resolution No. 49266), in conjunction with approval of an application to
subdivide the former 40-acre timberland preserve property into three parcels. The subject parcel
R-15-74 Page 3
is one of the three parcels that resulted. The other two private parcels were residentially
developed. Under the terms of the THA, all obligations, term, conditions, and restrictions of the
THA binds all owners and successors of all parcels that resulted.
If purchased by the District, the property would be incorporated into the La Honda creek Open
Space Preserve and the proposed Preliminary Use and Management Plan would be implemented.
A subsequent planning process would analyze opportunities for natural resource management
and public use compatible with surrounding rural land use. Further environmental review would
be prepared as needed.
Preliminary Use and Management Plan
The Preliminary Use and Management Plan (PUMP) establishes a status quo land management
approach in the interim between the purchase and the completion of a subsequent long-term plan.
The PUMP takes effect at the close of escrow and remains effective until the plan is amended or
the Comprehensive Use and Management Plan or Preserve Plan is amended for La Honda Creek
Open Space Preserve. The PUMP includes site security, new signage, and maintenance of the
property in its natural condition, as described more fully below. If changes to land use or the
physical environment are proposed in the future, the plan would be subject to further
environmental review and public input.
Public Access: Designate the property as closed to public use at this time. Issue
seller/neighbor permits on a case-by-case basis allowing hiking use
consistent with historical use patterns.
Signs and Site
Security:
Fences and
Gates:
Roads and
Trails:
Patrol:
Install Preserve boundary and closed area signs, where appropriate.
Install gates/fencing as necessary to prevent unauthorized vehicular entry.
Maintain access route into the site in a serviceable condition. Implement
maintenance and minor erosion and sediment control measures for access
roads in accordance with District standards.
Routinely patrol property using existing access.
Structures and
Improvements:
Remove existing improvements on the property, including the two stages,
seating areas, and any other unnecessary items.
Resource
Management:
Conduct invasive plant and animal management activities consistent with the
District’s standard policies and procedures.
Wildfire Fuel
Management:
Implement standard District-wide fuel management and defensible space
practices.
Site Safety
Inspection:
No evidence of hazardous materials detected.
Name: Name the property as an addition to La Honda Creek Open Space Preserve.
R-15-74 Page 4
Dedication: Indicate your intention to withhold the subject property as open space.
CEQA COMPLIANCE
Project Description
The project consists of the purchase of the 5.07-acre Ashworth property as an addition to the
District’s open space preserve system and concurrent adoption of a Preliminary Use and
Management Plan. Minor erosion and sediment control measures in accordance with District
standards may be conducted along the existing access routes/trails to prevent water quality
degradation. Minor resource management activities may be conducted to control invasive plants.
Minor demolition work may occur to remove the existing stages and associated improvements.
The land would be permanently preserved as open space and maintained in a natural condition.
CEQA Determination
The District concludes that this project will not have a significant effect on the environment. It is
categorically exempt from the California Environmental Quality Act (CEQA) under Article 19,
Sections 15301, 15316, 15317, 15325 and 15061 of the CEQA Guidelines as follows:
Section 15301 exempts the repair, maintenance, or minor alteration of existing public or private
structures, facilities, or topographical features, involving negligible or no expansion of use
beyond that existing at the time of the lead agency’s determination, including the demolition of
individual small structures. The project proposes demolishing the two stage structures,
performing erosion control work as necessary along existing roads, and performing minor
restoration activities to return the demolition sites to a natural condition.
Section 15316 exempts the acquisition of land in order to create parks if the land is in a natural
condition and the management plan proposes to keep the area in a natural condition. The
Preliminary Use and Management Plan specifies that the land will not be developed and will
remain in a natural condition.
Section 15317 exempts the acceptance of fee interests to maintain the open space character of an
area. The District will acquire fee interest to maintain the open space character of the property.
Section 15325 exempts transfers of ownership of interests in land to preserve open space. This
acquisition will transfer fee ownership of the property to the District and ensure that the open
space will be preserved. The Preliminary Use and Management Plan ensures that the property is
preserved as open space by incorporating it into the La Honda Creek Open Space Preserve.
Section 15061(b)(3) exempts actions recommended in the Preliminary Use and Management
Plan as it has been determined that there is no possibility the recommended actions will have a
significant effect on the environment.
TERMS AND CONDITIONS
The 5.07-acre Ashworth property is proposed for purchase at a price of $525,000. The property
has fair market value determined to be $525,000 based upon the property being listed and
exposed to the market. There is a back up purchase offer from a private party in the event the
R-15-74 Page 5
District does not approve the proposed purchase. The Seller is responsible for removing the
remnants of the shed structure from the property before the close of escrow. The property would
be purchased on an all cash basis.
FISCAL IMPACT
Fiscal Year (FY) 2015–2016 Budget for New Land Purchases:
New Land Purchases Budget (FY 2015-16) $11,000,000.00
Previous Land approved for purchase this year ($0)
Ashworth Property ($ 525,000.00)
POST (Hendrys Creek) Property (also on this agenda) Partner Funded
New Land Purchase Budget Remaining $10,475,000.00
The District Controller was consulted on this proposed purchase and has indicated that,
considering cash flow and account balances, funds are available for this property purchase.
Installation of boundary demarcation and gates/fencing as necessary to prevent unauthorized
vehicular entry is estimated at $10,000 and the costs to remove the stage improvements are
estimated at $10,000. These costs are included in the Real Property Budget for FY2015-16. No
other capital costs are required as part of the purchase.
BOARD COMMITTEE REVIEW
This item was not previously brought before the Real Property Committee as the District needed
to move very quickly to secure this opportunity given the active second offer on this property.
However, the acquisition was discussed with and approved by the General Manager pending
Board action.
PUBLIC NOTICE
Public notice was provided as required by the Brown Act. Property owners of land located
adjacent to or surrounding the subject property have also been mailed a copy of this Agenda.
NEXT STEPS
Upon Board approval, the General Manager with direct staff to proceed with the close of escrow
for the purchase of the property and implement the Preliminary Use and Management Plan. Real
Property staff will work towards having the stage improvements removed and the District’s
Skyline Field Office will manage the property as an addition to La Honda Creek Open Space
Preserve.
Attachments:
1. Resolution
2. Exhibit A: Location Map
Responsible Department Head:
Michael Williams, Real Property Manager
R-15-74 Page 6
Prepared by:
Allen Ishibashi, Senior Real Property Agent
Elish Ryan, Real Property Planner III
Contact person:
Allen Ishibashi, Senior Real Property Agent
Graphics prepared by:
Michele Childs, GIS Technician
RESOLUTION 15-___
RESOLUTION OF THE BOARD OF DIRECTORS OF MIDPENINSULA REGIONAL OPEN
SPACE DISTRICT AUTHORIZING ACCEPTANCE OF PURCHASE AGREEMENT,
AUTHORIZING THE GENERAL MANAGER OR OTHER OFFICER TO EXECUTE
CERTIFICATE OF ACCEPTANCE OF GRANT TO DISTRICT, AND AUTHORIZING
GENERAL MANAGER TO EXECUTE ANY AND ALL OTHER DOCUMENTS
NECESSARY OR APPROPRIATE TO CLOSING OF THE TRANSACTION (LA HONDA
CREEK OPEN SPACE PRESERVE - LANDS OF JOHN S. ASHWORTH A MARRIED MAN
AS HIS SOLE AND SEPARATE PROPERTY)
The Board of Directors of Midpeninsula Regional Open Space District (District) does resolve as
follows:
SECTION ONE. The Board of Directors of Midpeninsula Regional Open Space District does
hereby accept the offer contained in that certain Purchase and Sale Agreement between John S.
Ashworth, a married man as his sole and separate property, and the Midpeninsula Regional
Open Space District, a copy of which purchase 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 (“the Ashworth Property”).
SECTION TWO. The General Manager, President of the Board of Directors, or other
appropriate officer is authorized to execute the Certificate of Acceptance for the Grant Deed on
behalf of the District.
SECTION THREE. The General Manager or the General Manager’s designee shall cause to be
given appropriate notice of acceptance to the seller and to extend escrow if necessary.
SECTION FOUR. The General Manager or the General Manager’s designee is authorized to
expend up to $5,000.00 to cover the cost of title insurance, escrow fees, and other miscellaneous
costs related to this transaction and up to $20,000 for the demolition, restoration, and site
security of the property.
SECTION FIVE. The General Manager and General Counsel are further authorized to approve
any technical revisions to the attached Agreement and documents, which do not involve any
material change to any term of the Agreement or documents, which are necessary or appropriate
to the closing or implementation of this transaction.
SECTION SIX. The purpose of this Section is to enable the District to reimburse its general
fund for the cost of certain land acquisitions. The District wishes to finance certain of these real
property acquisitions and expects to use tax-exempt debt, such as bonds, but a tax-exempt
financing is not cost-justified for the District unless the principal amount of the financing is large
enough to justify the related financing costs. Consequently, it is the District’s practice to buy
property with its general funds and, when a tax-exempt financing is cost-justified based on the
aggregate value of acquisitions, to issue tax-exempt obligations to reimburse itself for previous
expenditures of general funds. These general funds are needed for operating and other working
capital needs of the District and are not intended to be used to finance property acquisitions on a
long-term basis.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space
District on _____, 2015, 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 Interim 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.
Inerim District Clerk
Thornewood
Djerassi Resident Artists
35
El Corte de Madera CreekOpen Space Preserve
Ashworth ParcelAPN: 075-340-2405.07 Acres
La Honda CreekOpen Space Preserve 84
35
Djerassi
Wunderlich County Park
S k y lin e Blvd .(C A 35)BearGulch Roa d
Bear Gulch Road
AllenRoad S t a r woodD r i v e
SkylineTrail
1800
1400
1200
1000
2200
1600
2000
2200
2 0 0 0
1600
2200
1600
2200
2000
2000
2200
2000
1600
1
6
0
0
2200
2 0 0 0
2000
Lawrence CreekTrail
G o r don MillTrail
Blue Blos s o m T ra
i l
Midpeninsul a Regiona lOpen Spa ce D istrict
A s h wo rt h Pr op er t y
April, 2015
Path: G:\Projects\La_Honda_Creek\Ashworth\Ashworth_BoardPacket_Landscape_8.5x11.mxd
Created By: mchilds
0 0.50.25Miles
(MROS D)Hig hlight ed Proper ty
Ot her Prot ected Ope n Spac eor Park Lands
Non MROS D Conservat ion or Ag ricult ur al Easem ent MROS D Prese rves Private Pr oper t y
Developed Land
While the District strives to use the best available di gital data, this data does not represent a legal survey a nd is m erely a graphic illustration of geographic features.
San Mateo
Area ofDetail
280
84
Half MoonBay
H
a
r
r
i
n
g
t
o
n
Creek
Other Pub lic Agency
35
1
La Honda
R-15-71
Meeting 15-13
May 13, 2015
AGENDA ITEM 11
AGENDA ITEM
Proposed purchase of the Peninsula Open Space Trust (Hendrys Creek) property in partnership
with Santa Clara Valley Water District as an addition to the Cathedral Oaks Area of the Sierra
Azul Open Space Preserve, located at 20610 Aldercroft Heights Road, Los Gatos in
unincorporated Santa Clara County (Santa Clara County Assessor’s Parcel Numbers 558-27-007,
558-27-008, and 558-51-005).
GENERAL MANAGER’S RECOMMENDATIONS
1. Adopt a Resolution approving the Initial Study/Mitigated Negative Declaration and the
Mitigation Monitoring Program for Hendrys Creek Project in accordance with the California
Environmental Quality Act (CEQA), and adopt the findings set out in the Draft Resolution.
2. Adopt a Resolution authorizing execution of a Memorandum of Understanding with
Peninsula Open Space Trust and Santa Clara Valley Water District to purchase the property
and convey a Conservation Easement and Long-term Management Plan to Santa Clara
Valley Water District.
3. Adopt the Amended Preliminary Use and Management Plan, which will be incorporated into
the Long-term Management Plan, and name the property as an addition to the Cathedral Oaks
Area of Sierra Azul Open Space Preserve.
4. Dedicate the property as public open space pursuant to the District’s Annual Policy for
Dedication of Lands.
SUMMARY
The Midpeninsula Regional Open Space District (District) is proposing to enter into a
Memorandum of Understanding (MOU) with Peninsula Open Space Trust (POST) and Santa
Clara Valley Water District (SCVWD) to purchase the Hendrys Creek property from POST. The
property will be conveyed in fee title to the District, and SCVWD will fund the full purchase
price of $1,500,000. In return, the District will convey a Conservation Easement and Long-term
Management Plan to SCVWD. Because of the restrictions in the conservation easement related
to resource sensitivity, this property will be designated as a Conservation Management Unit
(CMU) closed to public excess except by permit. The following report presents a description of
R-15-71 Page 2
the Hendrys Creek Property, Conservation Easement, Long-term Management Plan, Amended
Preliminary Use and Management Plan, environmental review, terms and conditions, and
financial impacts of the proposed transaction.
MEASURE AA
The purchase of the Hendrys Creek property would further the District’s Vision Plan and is an
eligible Measure AA Project. A 5-year Measure AA Project List was approved by the Board at
the October 29, 2014 meeting, which includes Project #22.1 (Hendrys Creek Restoration –
Design and Implementation) (Report R-14-130). This project meets the criteria and aligns with
the goals of Project #22.1 to preserve open space in the Los Gatos Creek Watershed, protect and
restore riparian and wetland habitats of the Hendrys Creek watershed, preserve ecological
connectivity and wildlife dispersal corridors, and allow for a desirable addition to the Sierra Azul
Open Space Preserve.
DISCUSSION
The Hendrys Creek property is located east of the Lexington Reservoir, adjacent to the Cathedral
Oaks area of Sierra Azul Open Space Preserve (Preserve), in the middle portion of Hendrys
Creek canyon. The property consists of three legal parcels totaling 117.14 acres. Previously, the
District purchased a 70-acre property along Weaver Road in the upper watershed of Hendrys
Creek from Mr. Sal Carilli, the former owner of the POST Hendrys Creek property (see Report
R-90-29).. As part of that transaction, the District received a right of first refusal on the adjacent
two parcels totaling 116.14 acres still owned at that time by Mr. Carilli (Parcel 1 = 78.06 acres
and Parcel 2 = 38.08 acres, shown on Attachment 1). Subsequently, , Mr. Carilli purchased
another adjoining one acre parcel in 2007, identified as Parcel 3 on the attached map .Together
these three parcels total 117.14 acres.
Since 2010, the SCVWD has been interested in partnering with the District to protect the
Hendrys Creek watershed and the flows that it contributes to Lexington Reservoir. In 2011,
POST entered into an agreement to purchase the three parcels of the remaining 117.14-acre
Hendrys Creek property owned by Mr. Carilli for $1,500,000, while the District worked with
SCVWD on a potential partnership to eventually purchase the property from POST. In August
2011, the District entered into a Lease and Management Agreement with POST for the District to
manage the property until the agreement with the SCVWD was finalized (see Report R-11-84).
The Lease and Management Agreement went into effect at the time the property was transferred
to POST and the District has managed the property as a closed portion of the Preserve since that
time.
The property purchase will be funded from the SCVWD’s Multi-Year Stream Maintenance
Program, which requires permitting agency review and approval. Since 2011, the District and
SCVWD have been in negotiation with three permitting agencies (U.S. Army Corps of
Engineers, California Department of Fish and Wildlife, and San Francisco Regional Water
Quality Control Board) to develop the terms and conditions of a Conservation Easement and
Long-term Management Plan. General agreement on those terms and conditions was reached by
all parties in March 2015.
R-15-71 Page 3
Property Description
The 117.14-acre Hendrys Creek property is located east of Lexington Reservoir in the middle
and upper portions of Hendrys Creek canyon. The property is bounded to the north by the
former Moore property, purchased from POST in 2009 (see Report R-09-14) and the Cathedral
Oaks area of the Preserve to the south and east. Private properties border the property to the
west and along its southeastern corner. The property is accessible from a deeded access road that
runs along Hendrys Creek to the west via Aldercroft Heights Road.
In most years, Hendrys Creek is a year-round creek that flows from the Preserve into Lexington
Reservoir. The property is characterized by steep north and south-facing forested side-slopes,
several tributaries, drainages and springs, all of which flow into Hendrys Creek canyon.
Vegetation on the property includes bay, big leaf maple, sycamore, white alder, oaks and some
Douglas fir. The upper south-facing slopes include chamise-mixed Manzanita, chaparral, and
sagebrush. Common mammals in the chaparral community include black-tailed deer, bobcat,
gray fox, mountain lion, and brush rabbit. Trout up to 12 inches in length migrate upstream from
Lexington Reservoir and have been spotted in Hendrys Creek. The property also provides
potential Foothill yellow-legged and California red-legged frog habitat. The Hendrys Creek
canyon is a natural extension of the Preserve because of its watershed and wildlife corridor
values.
Existing Structures and Improvements
A dirt access road traverses approximately two-thirds the length of the property along the north
side of Hendrys Creek, with a number of culverted stream crossings where side tributaries enter
Hendrys Creek. Graded earthen pads formerly occupied by unpermitted structures and trailers
and a one acre grassy meadow formally used as a private golf green are still visible along this
road. The only public utilities serving the property are telephone service lines. As a part of
POST’s purchase of the property in 2011, all structures, improvements, personal property, and
debris were removed by the seller. A Phase I Environmental Site Assessment was done in 2011
indicating no evidence of environmental hazardous conditions associated with the property.
USE AND MANAGEMENT
Planning Considerations
The property is located in unincorporated Santa Clara County and zoned HS (Hillside), requiring
a 20-to-160-acre minimum lot size, based upon the County’s slope density formula. The
property consists of three legal parcels. Parcel 1 is approximately 78.06 acres, and Parcel 2 is
approximately 38.08 acres. Parcel 3 is a legal, non-conforming 1.00 acre parcel. Each of these
parcels is accessed from the dirt access road via Aldercroft Heights Road. Most of the property
is steeply sloping canyon and riparian zone. Per the Santa Clara County General Plan and the
County’s zoning regulations, the allowable land uses in HS districts include low intensity
recreation, open space, and natural preserves. A finding for compliance with the General Plan for
all open space acquisitions by the District in Santa Clara County was made by the Santa Clara
County Planning Department in 1999.
If purchased, the property would be incorporated into the Preserve. In keeping with District
practices, subsequent planning for the property would be coordinated with the District’s larger-
R-15-71 Page 4
scale planning efforts for the Preserve, and include a public process and consultation with
appropriate agencies and organizations. The planning effort would analyze opportunities for
natural resource management and compatible public trail use as outlined in Measure AA Priority
Project #22. The planning process would include public workshops to gather input and review
draft and final plans. Further environmental review would be prepared as needed.
Williamson Act Considerations
Parcels One and Two of the Hendrys Creek property are subject to a Land Conservation
Agreement between the County of Santa Clara and Salvatore V. Carilli and Carolynne A. Carilli
under the California Land Conservation Act of 1965 (also known as the Williamson Act). The
Williamson Act Contract (Contract) is a voluntary agreement between a landowner and the
County to encourage ongoing commercial agricultural use in exchange for property tax
reduction. The Contract covering both parcels was recorded on February 17, 1977, and also
provides for the compatible uses of open space and recreation. A contract non-renewal for
Parcel Two was filed by the Salvatore V. Carilli with the County on July 17, 2007. The Contact
for Parcel Two will therefore terminate on January 1, 2017. A contract non-renewal for Parcel
One was filed by the Salvatore V. Carilli with the County on October 10, 2008 and will
terminate on January 1, 2018. If the purchase is approved, the District will continue to comply
with the Contract provisions during the non-renewal period until the Contract termination dates.
Amended Preliminary Use and Management Plan (PUMP)
A Preliminary Use and Management Plan (PUMP) for the property was originally adopted by the
District Board of Directors in 2011 as part of the approval of a Lease and Management
Agreement with POST to manage the land as an addition to the Sierra Azul Open Space
Preserve. As of this 2011 approval, the PUMP has been amended as follows to incorporate the
newly required use and management conditions that are included as part of the Conservation
Easement and Long Term Management Plan. This amended PUMP would remain in effect as of
the close of escrow until any future change or a Comprehensive Use and Management Plan, or
Preserve Plan is approved for the Cathedral Oaks Area of the Sierra Azul Open Space Preserve.
Also, any future changes to the PUMP will require approval by SCVWD and the permitting
agencies and potentially be subject to additional environmental review. The PUMP, as specified
below, calls for initial stream restoration and sediment-reduction practices, including excavation
of fill material from stream channels. Otherwise, the property would be maintained in its current
condition with no use changes anticipated.
Conservation
Easement and
Long-term
Management
Plan:
Use and manage the Property in a manner that is consistent with the
Conservation Easement and the associated Long-term Management Plan.
Public Access: Designate the Property as a Conservation Management Unit (CMU), so that
use is confined to activities that are consistent with creek and riparian corridor
protection, watershed and riparian habitat, and ecologically sensitive public
enjoyment of the Property, consistent with the Conservation Easement.
R-15-71 Page 5
Close the Property to public use, except for infrequent hiking tours led by
MROSD docents and a limited number of hiking permits issued on a case-by
case basis on existing roads in non-sensitive areas.
Resource
Management:
Manage the Property in a natural condition, consistent with the District’s
Resource Management Policies and the Property’s Long-term Management
Plan. Perform a detailed resource inventory to identify presence of special
status species on the Property.
De-compact and re-vegetate the former building sites for erosion control
purposes.
Conduct non-native invasive species management activities consistent with
the District’s standard policies and procedures, performing intensive removal
at stream crossing rehabilitation sites and upland disturbed areas within the
first six years , consistent with the Long-term Management Plan.
Study, design, and implement stream crossing rehabilitation work at priority
sites to prevent and reduce sediment releases to the sensitive stream
environment. Maintain, repair, replace or remove existing road crossing
facilities such as bridges and culverts. If needed to respond to changing
stream conditions, perform corrective stream maintenance.
Roads and
Trails:
Maintain existing unpaved roads below the cleared, level area known as the
former “golf green” in serviceable, seasonal-use condition passable to ATV
for patrol, monitoring, and resource management purposes. De-compact and
re-vegetate the unpaved roads above the “golf green”.
Prepare a more detailed road and trail assessment of the entire Property and
implement the revegetation of spur roads and trails not providing patrol
access, prioritizing those sites closest to streams and tributaries. Implement
minor maintenance and erosion control measures on roads as needed to adapt
to changing conditions in accordance with District standards.
The easement access road is to be used for District patrol, maintenance and
emergency purposes and not for general public access. Work with the private
property owner and other easement holders to formalize use and maintenance
of the easement access road from Aldercroft Heights Road in a mutually
acceptable manner.
Patrol: Routinely patrol the Property utilizing existing roads and trails to enforce
Midpeninsula Regional Open Space District's "Regulations for Use of
Midpeninsula Regional Open Space District Lands," and any amendments
thereto.
R-15-71 Page 6
Signs and Site
Security:
Install boundary and closed area signs where appropriate.
Install a vehicle gate at appropriate roadway access points, as well as closed
area, private property, and preserve boundary signs where the Property is
relatively accessible from adjacent private property.
Public Safety: Work with law enforcement officials to secure the Property, and prevent
trespass and illegal activity.
Wildfire Fuel
Management:
Further assess vegetative communities to determine wildfire management
needs. Coordinate work on the Property with overall fuel management
strategies for Sierra Azul Open Space Preserve. Conduct wildfire fuel
management activities consistent with Midpeninsula Regional Open Space
District practices and Resource Management Policies.
Structures and
Improvements:
Not applicable - no structures or major improvements are present.
Dedication: Dedicate the Property for public use under California Public Resources Code
Section 5500 et seq
Subsequent
Planning:
Integrate the Property into the completion of the Sierra Azul Open Space
Preserve Plan in the future. All subsequent planning shall take into account
the Conservation Easement and Long-term Management Plan.
Name: Name the Property as an addition to the Cathedral Oaks Area of Sierra Azul
Open Space Preserve.
CEQA COMPLIANCE
Project Description
The proposed project consists of the purchase of the 117.14 acre Hendrys Creek property by the
District for open space preservation purposes, and the concurrent adoption of an Amended
Preliminary Use and Management Plan to manage the property as part of the District’s Sierra
Azul Open Space Preserve. The District would manage the property in a natural condition and
continue to maintain it as closed to the public. The project also includes implementation of a
Long-term Management Plan to restore road and stream crossings over Hendrys Creek and its
tributaries and rehabilitate disturbed upland areas.
The existing roadway creek crossings within the project site are susceptible to failure after large
storm events, and in some locations are contributing excessive fine-grained sediment to the Hendrys
Creek watershed. Three unpermitted, short-span vehicle bridges and one foot bridge, all in poor
condition, would be removed. A portion of the existing roadway system would be restored and
maintained to provide vehicular access within the project site for maintenance, routine patrols, and
management of the property. Restoration of these road-stream crossings would reduce the potential
R-15-71 Page 7
of these degraded areas to adversely affect the streams and other natural resources, and would reduce
future maintenance needs.
Initial Study/Mitigated Negative Declaration Preparation
In 2014, the District retained the independent consulting firm of Ascent Environmental, Inc. to
prepare an Initial Study/Mitigated Negative Declaration (collectively, MND) for the Project,
pursuant to the requirements of the California Environmental Quality Act (CEQA, Public
Resources Code sections 21000 et seq.) and the CEQA Guidelines (14 Cal. Code Regulations
sections 15000 et seq.).
The MND, dated March 2015 (Attachment 2), identified potentially significant adverse effects
on the environment from the proposed project, and found that mitigation measures for the
proposed Project would avoid the effects or mitigate the effects to below a level of significance.
Prior to public release, the draft MND was reviewed by the regulatory permitting agencies,
including the SCVWD, County of Santa Clara Planning Department, US Army Corps of
Engineers, California Department of Fish and Wildlife, Regional Water Quality Control Board,
and the Bay Area Air Quality Management District to ensure that all concerns of the permitting
agencies would be incorporated into the environmental analysis, and to develop mitigations with
those agencies for potentially significant impacts.
Public Review Period and Availability
A Notice of Intent (NOI) to adopt the MND (Attachment 3) was released by the District on
March 20, 2015 notifying the public that the MND would be circulated for public review for a
period of 30 days, commencing on March 20, 2015 and ending on April 20, 2015.
The NOI to adopt a MND was distributed to the California Office of Planning and Research’s
State Clearinghouse, interested agencies, individuals, adjacent property owners, and nearby
residents. It was posted in a general circulation newspaper, at the County of Santa Clara Clerk
Recorder’s Office, and on the District’s website, notifying all interested parties of the availability
and 30‐day public review period. Copies of the full MND were available on the District’s
website, at the District’s Administrative Office at 330 Distel Circle, Los Altos, CA 94022, at the
Santa Clara Valley Water District Headquarters at 5750 Almaden Expressway, San Jose, CA
95118, and through the State Clearinghouse. Printed copies were available upon request.
Public Comments
In accordance with section 15088 of the CEQA Guidelines, the District as the lead agency has
reviewed all comments received on the Project. As of the close of the public review period, one
written comment letter was received from County of Santa Clara Parks and Recreation
Department. The comment letter referenced the County’s regional trail network in the vicinity of
the Project but did not challenge the adequacy of the MND. The District has acknowledged
receipt of this letter and District staff has confirmed that the project will not impact
implementation of the Santa Clara County Countywide Trails Master Plan Update. No other
comment letters have been received.
R-15-71 Page 8
CEQA Determination
The District concludes that the Project will not have a significant effect on the environment. The
environmental analysis revealed potentially significant impacts in the following areas: Biological
Resources, Cultural Resources, and Hazards and Hazardous Materials; however, potential
impacts have been reduced to less-than-significant levels through the incorporation of mitigation
measures into the Project. All potentially significant impacts and mitigation measures are
summarized below.
Biological Resources
Implementation of the proposed project could result in potentially significant impacts to special-
status wildlife and plant species. Implementation of Mitigation Measures 3.4-1 through 3.4-4 to
incorporate protocols to avoid or minimize impact on special status species, including California
red-legged frog, Foothill yellow-legged frog, San Francisco Dusky-footed Woodrat, nesting
birds, bats, and special status plants would reduce the project’s impact on these species to a less-
than-significant level.
The MND also includes mitigation measures to reduce potential impacts resulting from
temporary construction-related impacts to wetlands or waters of the U.S. Any a ctivities occurring
within jurisdictional waters would be considered a significant impact to waters of the United
States. Construction activities would result in temporary impacts to Hendrys Creek and its
tributaries related to removal of creek crossings and sediment. Implementation of Mitigation
Measure 3.4-5 includes submission of a wetland delineation report to the US Army Corp of
Engineers; based upon their jurisdictional determination, compliance with the permitting
requirements will reduce the project’s impact on wetlands to a less-than-significant level.
Cultural Resources
Although no archaeological resources were identified in the project area, the potential exists that
unidentified archaeological resources could be discovered during construction, which could
result in a potentially significant impact. Implementation of Mitigation Measure 3.5-1 to comply
with procedures in the event of a discovery of archaeological resources would reduce the
project’s impact on archaeological resources to a less-than-significant level.
No evidence suggests that any prehistoric or historic-era human interments are present within or
near project site. However, there is a possibility that human remains could be uncovered during
construction activities; therefore a potentially significant impact could occur. Implementation of
Mitigation Measure 3.5-2 to comply with legally compliant procedures in the event of a
discovery of human remains would reduce the project’s impact on human remains to a less-than-
significant level.
Hazards and Hazardous Materials
The Project site is located within the designated Wildfire and Urban Interface Fire Area with a
fire hazard zone classification of very high; therefore, impacts related to wildfire would be
potentially significant. Implementation of Mitigation Measure 3.8-1 to reduce potential for
wildland fire ignition during routine maintenance and/or construction activities would reduce the
impact to a less-than-significant level.
R-15-71 Page 9
Mitigation Monitoring Program
In accordance with the requirements of CEQA, the District has prepared a Mitigation Monitoring
Program (MMP), which describes the project-specific mitigation measures and monitoring
process (Attachment 4). Adoption of the MMP ensures that all measures intended to mitigate
potentially significant environmental impacts will be implemented as part of the project.
TERMS AND CONDITIONS
The 117.14 acre Hendrys Creek property is being purchased as a three party partnership between
POST, SCVWD, and the District. The three parties will enter into a Memorandum of
Understanding (MOU) for the District and SCVWD to purchase the property from POST at a
price of $1,500,000, which is based on an independent fair market value appraisal commissioned
by the District. The MOU includes the following key terms and conditions:
1. SCVWD will pay the full purchase price of $1,500,000 into escrow.
2. POST will convey fee title in the property to the District.
3. The District will convey a Conservation Easement and Long-term Management Plan to
SCVWD.
4. SCVWD will also reimburse the District for the cost of District’s CEQA analysis and
consultant costs to prepare the Initial Study/Mitigated Negative Declaration and the
Mitigation Monitoring Program. These costs are not to exceed $40,000.
Conservation Easement and Long-term Management Plan
The purpose of the Conservation Easement is to protect and preserve the property’s streams,
springs, natural vegetation, habitats and biological connectivity values in perpetuity, including
2.4 miles of creeks and 8.3 acres of wetland habitat. A Long-term Management Plan prepared
by District staff is attached and incorporated into the Conservation Easement. Permitted and
prohibited uses on the property under the Conservation Easement are summarized below:
• Permitted uses on the property include patrol and maintenance vehicle use, fire safety,
erosion control measures, invasive plant removal, existing trails/road maintenance, creek
rehabilitation and restoration, and docent and limited permit-only public hiking.
• Prohibited uses on the property include equestrian and bicycle uses, construction of
structures or improvements, dumping, tree removal, altering water courses, transfer of
development rights, commercial, industrial or agricultural uses.
The Long-term Management Plan establishes minimum management responsibilities and
prevents uses that will impair or interfere with the resource values of the Hendrys Creek
property. This plan allows for patrol and enforcement of the District’s land-use regulations such
as trespass and illegal activities, and provides for routine road and corrective stream maintenance
as needed.
In addition, the Long-term Management Plan allows for the optional rehabilitation and
restoration of fourteen (14) identified priority stream crossing sites. The District plans to initiate
design and permits for the creek rehabilitation work in 2016 to reduce potential sedimentation
impacts from degraded areas on the property that could adversely affect streams and natural
R-15-71 Page 10
resources of the property. This rehabilitation work has an estimated cost of $245,000 and is
anticipated to commence in FY2016-17. The Long-term Management Plan incorporates by
reference the conditions of the Preliminary Use and Management Plan (PUMP). Future
amendments to the PUMP will require approval by SCVWD and the permitting agencies.
FISCAL IMPACT
Fiscal Year (FY) 2015–16 Budget for New Land Purchases:
New Land Purchases Budget (FY2015-16) $11,000,000.00
Previous Land approved for purchase this year ($0)
POST (Hendrys Creek) Property Partner Funded
Ashworth Property (also on this agenda) ($ 525,000.00)
New Land Purchase Budget Remaining $10,475,000.00
Because SCVWD is providing the full amount of the purchase funds of $1,500,000 for the
Hendrys Creek property, title and escrow costs estimated at $5,000 are the only District land-
purchase cost associated with this partnership acquisition. SCVWD is also reimbursing the
District for the CEQA costs of approximately $40,000 to prepare the MND. Installation of
boundary gates/fencing as necessary to prevent unauthorized vehicular entry to the property were
already completed under the District’s 2011 Lease and Management Agreement with POST.
The Lease and Management Agreement will terminate at the close of escrow.
BOARD COMMITTEE REVIEW
The Real Property Committee held a meeting on the property on October 2, 2012. Two of the
three committee members were in attendance and support the Hendrys Creek purchase. The
owners of the Lupin Lodge were in attendance, and supported the property purchase at that time.
PUBLIC NOTICE
Property owners adjacent to or surrounding the subject property have been mailed written notice
of the proposed partnership purchase. Public notice was provided as required by the Brown Act.
No additional notice is required.
NEXT STEPS
Upon approval by the District Board of Directors, the transactional documents will be executed
by the District. SCVWD’s Board of Directors will consider approval of this project at their
meeting on June 9, 2015. It is anticipated that the partnership purchase will close escrow by the
end of June 2015. The District’s South Area Outpost Field Office will continue to manage the
property as an addition to the Cathedral Oaks area of Sierra Azul Open Space Preserve.
Attachments:
1. Location Map
2. Initial Study/Mitigated Negative Declaration
R-15-71 Page 11
3. Notice of Intent to Adopt a Mitigated Negative Declaration
4. Mitigation Monitoring Program
5. Resolution to Adopt CEQA
6. Purchase Resolution
Prepared by:
Michael C. Williams, Real Property Manager
Elish Ryan, Real Property Planner III
Contact person:
Michael C. Williams, Real Property Manager
Graphics prepared by:
Casey Hiatt, GIS Administrator
H e n d r y s C r e e k
LosGatos
C
r
e
e
k
SA17
SA19
2
F o r m e r S o d a S p ri n g s T r a il
Road
Heig
h
t
s
Road
Holy City Rd.
Broadway
R e dwood
Ry landRes.
R
o
a
d
Heights
Laurel
Rd.
R o a d
G u l c h
H o o k e r
Cathedral Oaks Area
S i e r r a A z u l O p e n S p a c e P r e s e r v e
S a n J o s e W a t e r C o m p a n yDrive
Road
Weaver Road
Springs
Soda
Roa d
A i r p o r tStewart Dr.
Pan
o
r
amaD r .
TrailClosed
OldSanta
Cru
z
H
w
y.
Cathedral Oaks Area
T r a il C l o s e d
2716
Ralph's Mountain
Loma
Aldercroft
Mountain
W ea v er
Locus
t
D
r.
1
Al
d
e
r
c
r
o
ft
Summit
17
Lexi ng to nRes.
S a n J o s e W a t e rCompan y
Midpeninsula Regi on a lOpen Spac e Dist ric tAttachment 1 : P ro p o s ed P u r cha se o f P OS T (H en d ry s Cr ee k ) p r ope rty i n p ar tn e rs hip w i t h SC V WD a s a n ad di ti o n to th e C a th ed ral O aks Ar ea o f S i e r ra Az u l OS P
May, 2015
Path: G:\Projects\Sierra_Azul\Carilli_Property\Carilli_Property_Powerpoin
t.mxd
Created By: mc
hilds
0 10.5Miles
(M R O SD )
While the Dis trict stri ves to use th e best ava ilable digit al data, thi s data do es not re presen t a legal sur vey a n d i s m e re ly a graph ic illu s tratio n o f geog ra phic features.
MRO SD Co nse rva tionor Ag ricu l tu ral Easem ent
Hendrys CreekProperty
MRO S D Op en SpacePreserves
POST (H endr ys Cree k ) Prope rt y
AccessEasement
Othe r Prot e cte d Op en Spaceor Park L an ds
Watersh ed L and
Othe r Public Age ncy
Pri vate Pr opert y
Parcel 178.06 ac Parcel 238.08 ac
Parcel 31.0 ac
Lan d Trus t
Non-M RO SD C ons ervati on Easem e nt
14010055.01
Hendrys Creek Restoration Project
Initial Study/Mitigated Negative Declaration
PREPARED FOR
Midpeninsula Regional Open Space District
Meredith Manning, Project Manager
330 Distel Circle
Los Altos, CA 94022
650/691-1200
PREPARED BY
Ascent Environmental
Mike Parker, AICP, Project Manager
455 Capitol Mall, Suite 300
Sacramento, CA 95841
916/444-7301
March 2015
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/MND i
TABLE OF CONTENTS
Chapter Page
ACRONYMS AND ABBREVIATIONS ...................................................................................................................... iii
1 INTRODUCTION ................................................................................................................................... 1-1
1.1 Introduction and Regulatory Guidance ...................................................................................... 1-1
1.2 Why this Document? ................................................................................................................... 1-1
1.3 Summary of Findings .................................................................................................................. 1-2
1.4 Environmental Permits ................................................................................................................ 1-3
1.5 Document Organization .............................................................................................................. 1-3
2 BACKGROUND AND PROJECT DESCRIPTION ...................................................................................... 2-1
2.1 Introduction .................................................................................................................................. 2-1
2.2 Project Background and Need .................................................................................................... 2-1
2.3 Project Location ........................................................................................................................... 2-2
2.4 Site Description ........................................................................................................................... 2-2
2.5 Project Objectives ........................................................................................................................ 2-9
2.6 Description of Proposed project ................................................................................................. 2-9
3 ENVIRONMENTAL CHECKLIST ............................................................................................................. 3-1
3.1 Aesthetics..................................................................................................................................... 3-4
3.2 Agriculture and Forest Resources .............................................................................................. 3-9
3.3 Air Quality ................................................................................................................................... 3-12
3.4 Biological Resources ................................................................................................................. 3-17
3.5 Cultural Resources .................................................................................................................... 3-31
3.6 Geology and Soils ...................................................................................................................... 3-35
3.7 Greenhouse Gas Emissions ...................................................................................................... 3-39
3.8 Hazards and Hazardous Materials ........................................................................................... 3-42
3.9 Hydrology and Water Quality ..................................................................................................... 3-46
3.10 Land Use and Planning ............................................................................................................. 3-50
3.11 Mineral Resources .................................................................................................................... 3-52
3.12 Noise .......................................................................................................................................... 3-53
3.13 Population and Housing ............................................................................................................ 3-58
3.14 Public Services........................................................................................................................... 3-59
3.15 Recreation .................................................................................................................................. 3-62
3.16 Transportation/Traffic ............................................................................................................... 3-63
3.17 Utilities and Service Systems .................................................................................................... 3-65
3.18 Mandatory Findings of Significance ......................................................................................... 3-68
4 REFERENCES ...................................................................................................................................... 4-1
5 LIST OF PREPARERS ........................................................................................................................... 5-1
Table of Contents Ascent Environmental
Midpeninsula Regional Open Space District
ii Hendrys Creek Long-Term Management Plan IS/MND
Appendices
A SCVWD Stream and Watershed Protection Program Mitigation and Monitoring Plan
B Air Quality Modeling
C Archaeological Survey Report
D MROSD Best Management Practices and Standard Operating Procedures for Routine
Maintenance Activities in Water Courses
E Construction Noise Calculations
Exhibits
Exhibit 2-1 Regional Location ........................................................................................................................ 2-3
Exhibit 2-2 Project Location ........................................................................................................................... 2-4
Exhibit 2-3 Regional Watersheds .................................................................................................................. 2-5
Exhibit 2-4 Habitat Types ............................................................................................................................... 2-7
Exhibit 2-5 Previously Disturbed Areas ......................................................................................................... 2-8
Exhibit 2-6 Crossing Locations and Proposed Area of Disturbance .......................................................... 2-10
Exhibit 3.1-1 Hendrys Creek Channel .............................................................................................................. 3-5
Exhibit 3.1-2 Hendrys Creek Channel with Crossing ....................................................................................... 3-5
Exhibit 3.1-3 Tributary ....................................................................................................................................... 3-6
Exhibit 3.1-4 Access Road ................................................................................................................................ 3-6
Exhibit 3.1-5 Hendrys Creek Crossing H4 ........................................................................................................ 3-7
Exhibit 3.4-1 Vegetation Communities ........................................................................................................... 3-19
Exhibit 3.12-1 Sensitive Receptor Locations ................................................................................................... 3-54
Tables
Table 2-1 Hendrys Creek Crossings ............................................................................................................ 2-9
Table 2-2 Tributary Crossings .................................................................................................................... 2-11
Table 3.3-1 Maximum Project Construction Emissions (lbs/day) .............................................................. 3-14
Table 3.4-1 Potential for Sensitive Species to Occur on the Project site................................................... 3-23
Table 3.7-1 Summary of Estimated Emissions of Carbon Dioxide Equivalent Associated with
Project-Related Activities (MT CO2e/year) ............................................................................... 3-41
Table 3.12-1 Equipment Reference Noise Levels ......................................................................................... 3-56
Ascent Environmental Table of Contents
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/MND iii
ACRONYMS AND ABBREVIATIONS
ADI Area of Direct Impact
ASR Archaeological Survey Report
BAAQMD Bay Area Air Quality Management District
BMP best management practice
CAL FIRE California Department of Forestry and Fire Protection
Caltrans California Department of Transportation
CCR California Code of Regulations
CEQA California Environmental Quality Act
CO2 carbon dioxide
CRHR California Register of Historical Resources
DFG California Department of Fish and Game
DGC Diablo Green Consulting
DTSC California Department of Toxic Substances Control
EIR Environmental Impact Report
ESA Environmental Site Assessment
FMMP Farmland Mapping and Monitoring Program
GHGs greenhouse gases
IPCC Intergovernmental Panel on Climate Change
IPM Integrated Pest Management
IS/Proposed MND Initial Study/Proposed Mitigated Negative Declaration
LTMP Long-term Management Plan
MROSD Midpeninsula Regional Open Space District
MT CO2e/yr metric tons of CO2 equivalent per year
NOX nitrogen oxides
NPDES National Pollutant Discharge Elimination System
OHP Office of Historic Preservation
PM10 particulate matter, exhaust
PM2.5 particulate matter, exhaust
POST Peninsula Open Space Trust
PRC Public Resources Code
Preserve Sierra Azul Open Space Preserve
ROG reactive organic gases
Table of Contents Ascent Environmental
Midpeninsula Regional Open Space District
iv Hendrys Creek Long-Term Management Plan IS/MND
SB Senate Bill
SCCFD Santa Clara County Fire Department
SCVWD Santa Clara Valley Water District
SMP 2002 Multi-Year Stream Maintenance Program
VMT vehicle miles traveled
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 1-1
1 INTRODUCTION
1.1 INTRODUCTION AND REGULATORY GUIDANCE
This Initial Study/Proposed Mitigated Negative Declaration (IS/Proposed MND) has been prepared by the
Midpeninsula Regional Open Space District (MROSD) to evaluate potential environmental effects resulting
from implementation of the Hendrys Creek Long-term Management Plan (LTMP), including rehabilitation of
road crossings and upland areas. The 117-acre Hendrys Creek Property (project site) would be purchased by
MROSD as an addition to the Sierra Azul Open Space Preserve (Preserve). The proposed project would
provide compensatory mitigation for wetland impacts associated with the Santa Clara Valley Water District’s
(SCVWD) 2002 Multi-Year Stream Maintenance Program (SMP). A perpetual Conservation Easement would
be held by the SCVWD describing a commitment to specifically preserve and protect the conservation values
of the project site while also allowing opportunities for ecologically sensitive public enjoyment of the
property. The goal of the mitigation is to preserve, protect and improve the ecological condition of selected
local streams and their associated watersheds. The project site includes stream, riparian and upland habitat
and is strategically located within a large preserved landscape and watershed, which would enable the
protection of ecological functions, values, and processes that are important for the regional ecosystem. The
permitting agencies accepting compensatory mitigation include the San Francisco District of the U.S. Army
Corps of Engineers, the California Department of Fish and Wildlife, and the San Francisco Regional Water
Quality Control Board. Ascent Environmental, Inc. has been retained by MROSD to prepare this analysis on
their behalf.
This document has been prepared in accordance with the California Environmental Quality Act (CEQA) (Public
Resources Code Section 21000 et seq.) and the State CEQA Guidelines (California Code of Regulations
Section 15000 et seq.). An initial study is prepared by a lead agency to determine if a project may have a
significant effect on the environment (State CEQA Guidelines Section 15063[a]), and thus to determine the
appropriate environmental document. In accordance with State CEQA Guidelines Section 15070, a “public
agency shall prepare…a proposed negative declaration or mitigated negative declaration…when: (a) The
Initial Study shows that there is no substantial evidence…that the project may have a significant impact on
the environment, or (b) The Initial Study identifies potentially significant effects but revisions to the project
plans or proposal are agreed to by the applicant and such revisions would reduce potentially significant
effects to a less-than-significant level.” In this circumstance, the lead agency prepares a written statement
describing its reasons for concluding that the proposed project would not have a significant effect on the
environment and, therefore, does not require the preparation of an Environmental Impact Report (EIR). By
contrast, an EIR is required when the project may have a significant environmental impact that cannot
clearly be reduced to a less-than-significant effect by adoption of mitigation or by revisions in the project
design.
1.2 WHY THIS DOCUMENT?
As described in the environmental checklist (Chapter 3), the proposed project would not result in any
unmitigated significant environmental impacts. Therefore, an IS/Proposed MND is the appropriate document
for compliance with the requirements of CEQA. This IS/Proposed MND conforms to these requirements and
to the content requirements of State CEQA Guidelines Section 15071.
Under CEQA, the lead agency is the public agency with primary responsibility over approval of the proposed
project. MROSD is the CEQA lead agency because they are responsible for purchasing the project site and
implementing the proposed LTMP. The purpose of this document is to present to decision-makers and the
Introduction Ascent Environmental
Midpeninsula Regional Open Space District
1-2 Hendrys Creek Long-Term Management Plan IS/Proposed MND
public information about the environmental consequences of implementing the proposed project. This
disclosure document is being made available to the public for review and comment. This IS/Proposed MND
will be available for a 30-day public review period from March 20, 2015 to April 20, 2015.
Supporting documentation referenced in this document is available for review at:
Midpeninsula Regional Open Space District
330 Distel Circle
Los Altos, CA 94022
Phone: (650) 691-1200
Comments should be addressed to:
Meredith Manning, Senior Planner
Midpeninsula Regional Open Space District
330 Distel Circle
Los Altos, CA 94022
Phone: (650) 691-1200
Fax: (650) 691-0485
E-mail comments may be addressed to: mmanning@openspace.org
If you have questions regarding the IS/Proposed MND, please call Meredith Manning at (650) 691-1200.
If you wish to send written comments (including via e-mail), they must be postmarked by April 20, 2015.
After comments are received from the public and reviewing agencies, MROSD may (1) adopt the MND and
approve the proposed project; (2) undertake additional environmental studies; or (3) abandon the project. If
the project is approved and funded, MROSD may proceed with the project.
1.3 SUMMARY OF FINDINGS
Chapter 3 of this document contains the analysis and discussion of potential environmental impacts of the
proposed project.
Based on the issues evaluated in that chapter, it was determined that the proposed project would have
either no impact or a less-than-significant impact related to all but three of the issue areas identified in the
Environmental Checklist, included as Appendix G of the State CEQA Guidelines. These include the following
issue areas:
aesthetics
agricultural resources
air quality
geology and soils
greenhouse gas emissions
hazards and hazardous materials
hydrology and water quality
land use and planning
mineral resources
population and housing
public services
recreation
noise
transportation/traffic
utilities and service systems
mandatory findings of significance
Potentially significant impacts were identified for biological resources, cultural resources, and hazards and
hazardous materials; however, mitigation measures included in the IS/Proposed MND would reduce all
impacts to a less-than-significant level.
Ascent Environmental Introduction
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 1-3
1.4 ENVIRONMENTAL PERMITS
In addition to MROSD approval, the project may require a Section 404 Permit from the U.S. Army Corps of
Engineers, compliance with California Department of Fish and Game Code Sections 1602 and 2080.1,
Section 401 certification from the San Francisco Regional Water Quality Control Board. As a government
agency, the District is exempt from obtaining a grading permit from the County of Santa Clara.
1.5 DOCUMENT ORGANIZATION
This IS/Proposed MND is organized as follows:
Chapter 1: Introduction. This chapter provides an introduction to the environmental review process. It
describes the purpose and organization of this document as well as presents a summary of findings.
Chapter 2: Project Description and Background. This chapter describes the purpose of and need for the
proposed project, identifies project objectives, and provides a detailed description of the proposed project.
Chapter 3: Environmental Checklist. This chapter presents an analysis of a range of environmental issues
identified in the CEQA Environmental Checklist and determines if project actions would result in no impact, a
less-than-significant impact, a less-than-significant impact with mitigation incorporated, or a potentially
significant impact. If any impacts were determined to be potentially significant, an EIR would be required. For
this project, however, none of the impacts were determined to be significant after implementation of
mitigation measures.
Chapter 4: References. This chapter lists the references used in preparation of this IS/Proposed MND.
Chapter 5: List of Preparers. This chapter identifies report preparers.
Introduction Ascent Environmental
Midpeninsula Regional Open Space District
1-4 Hendrys Creek Long-Term Management Plan IS/Proposed MND
This page intentionally left blank.
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 2-1
2 BACKGROUND AND PROJECT DESCRIPTION
2.1 INTRODUCTION
The proposed project would include implementation of a Long-term Management Plan (LTMP) for the
Hendrys Creek Property, which would be purchased by Midpeninsula Regional Open Space District (MROSD)
and become part of the existing Sierra Azul Open Space Preserve (Preserve). Implementation of the LTMP
would include restoration of road/stream crossings across Hendrys Creek and its tributaries and
rehabilitation of disturbed upland areas.
2.2 PROJECT BACKGROUND AND NEED
The Hendrys Creek Property is located on 117 acres and is proposed by MROSD for purchase, environmental
enhancement, and addition to the adjacent approximately 19,000-acre Preserve. The proposed project
would also satisfy a mitigation requirement for another agency, the Santa Clara Valley Water District
(SCVWD) by providing compensatory mitigation in perpetuity for wetland impacts associated with SCVWD’s
2002 Multi-Year Stream Maintenance Program (SMP), as required by the Final Environmental Impact Report
for the Multi-Year SMP (2001, SCH 2000102055). Peninsula Open Space Trust (POST) is the current
property owner, and as part of a collaborative agreement between MROSD, SCVWD, and POST, the property
would be acquired and placed under permanent ownership by MROSD, with a perpetual conservation
easement held by SCVWD. The conservation easement property includes approximately 99 acres of Stream
and Watershed Protection Buffers for 8.3 acres of freshwater wetland mitigation credit. Stream and
Watershed Protection buffers are described in the SCVWD Stream and Watershed Protection Program
Mitigation and Monitoring Plan (see Appendix A). The buffers constitute land preservation areas containing
streams and their adjacent watersheds from 50 to 500 feet from the stream centerlines, as defined in the
program. Mitigation requirements for the SMP are described in the U.S. Army Corps of Engineers Permit No
22525S (August 7, 2002), San Francisco Bay Regional Water Quality Control Board Waste Discharge Order
No. R2-2002-0028 (March 5, 2002), California Department of Fish and Wildlife Lake or Streambed
Alteration Agreement No. R3-2001-0119 (July 8, 2002), and Agreement No. 1600-2009-0361-R3 (January
11, 2011).
MROSD’s mission is “to acquire and preserve a regional greenbelt of open space land in perpetuity, protect
and restore the natural environment, and provide opportunities for ecologically sensitive public enjoyment
and education.” MROSD currently owns and manages more than 62,000 acres in 26 open space preserves,
including the Sierra Azul Open Space Preserve to which the Hendrys Creek Property would be added. All
open space preserves are managed by MROSD for low-impact recreational opportunities and the
preservation and restoration of natural habitat.
Prior to purchase of the property by POST, the property was privately owned by individuals. Use of the
Hendrys Creek Property is believed to have started in the 1930s, and numerous level pads and road
networks were created and graded by the previous owner for small home sites, recreational vehicle trailers,
and a one-acre golf green. All structures, septic tanks, personal property and debris were removed prior to
POST’s purchase of the property with the exception of an existing network of roads and driveways, two
vehicle bridges, several culverted road/stream crossings, and a pedestrian bridge.
Background and Project Description Ascent Environmental
Midpeninsula Regional Open Space District
2-2 Hendrys Creek Long-Term Management Plan IS/Proposed MND
2.2.1 Applicable Planning Documents and Studies
The following planning documents and technical studies, which are referenced throughout this IS/Proposed
MND, apply directly or indirectly to the Hendrys Creek property and the proposed project. They are available
on MROSD’s website, www.openspace.org.
Resource Management Policy Document. MROSD adopted updated Resource Management Policies in
2011, which define the practices used by MROSD to protect and manage MROSD lands. These policies
apply to all MROSD lands, including the entire Preserve.
Regulations for Use of Midpeninsula Regional Open Space MROSD Lands. MROSD adopted these
regulations for use of MROSD lands in 1993, and most recently revised them in 2014. These policies
apply to all MROSD lands, including the entire Preserve.
Integrated Pest Management (IPM) Program. MROSD’s IPM program guides the pest management and
invasive species control District-wide, including properties leased and managed by MROSD like Hendrys
Creek.
2.3 PROJECT LOCATION
The project site is located at 20610 Aldercroft Heights Road in unincorporated Santa Clara County. The
project site is east of Lexington Reservoir within the Los Gatos Creek watershed and is located along the
northeast side of the Santa Cruz Mountains between Santa Clara Valley and Monterey Bay (See Exhibits 2-1
through 2-3). The project site is accessible from a deeded access road through private property to Aldercroft
Heights Road. Surrounding land uses include the Preserve to the north, south, and east, and private property
to the west and along its southeastern corner.
2.4 SITE DESCRIPTION
The 117-acre project site is characterized by steep, rugged terrain that ranges from 800 feet to
approximately 2,600 feet in elevation. The project site is transversed by Hendrys Creek, which is a year-
round spring-fed creek. An unpaved road extends up Hendrys Creek canyon with several short spur roads
that served as driveways to former home sites. There are 14 stream crossings (all tributaries to Hendrys
Creek) along these roads that have been evaluated for rehabilitation; eight along Hendrys Creek Road and
six on other spur roads. The crossings consist of culverts, bridges, and unimproved wet fords; all are either
structurally deficient or have high potential to deliver sediment to the aquatic ecosystem.
Ascent Environmental Background and Project Description
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 2-3
Exhibit 2-1 Regional Location
Background and Project Description Ascent Environmental
Midpeninsula Regional Open Space District
2-4 Hendrys Creek Long-Term Management Plan IS/Proposed MND
Exhibit 2-2 Project Location
Ascent Environmental Background and Project Description
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 2-5
Exhibit 2-3 Regional Watersheds
Background and Project Description Ascent Environmental
Midpeninsula Regional Open Space District
2-6 Hendrys Creek Long-Term Management Plan IS/Proposed MND
2.4.1 On-site Vegetation
Hendrys Creek watershed supports a mix of upland plant communities including riparian woodland, mixed
evergreen forest, coastal scrub, and developed/ruderal (Exhibit 2-4). These general habitat types are
described briefly below. A detailed description of the specific vegetation types is provided in the attached
Environmental Checklist (see Section 3.4, “Biological Resources”):
Riparian Woodland is dominated by a canopy of native trees including alders, maples, sycamore, and
bays with an understory of shrubs including poison oak, blackberry, and thimbleberry.
Mixed Evergreen Forest is dominated by a canopy of native trees including oaks, bays, buckeyes, and
maples with an understory of native shrubs and herbs such as poison oak, California hazelnut, and
blackberry.
Coastal Scrub is dominated by a dense cover of native shrubs and herbs including coyote brush, poison
oak, sticky monkeyflower, and California blackberry.
Developed/Ruderal Habitat consists of heavily disturbed areas associated with roads and former
development and is either unvegetated or dominated by weedy, non-native grasses and forbs.
2.4.2 On-site Streams, Watersheds, and Aquatic Habitat
Aquatic habitats within the project site include one perennial stream (Hendrys Creek), approximately nine
first or second order tributaries of Hendrys Creek, and numerous seeps and springs. These are described
briefly below and in greater detail in the attached Environmental Checklist (see Section 3.4, “Biological
Resources”):
Hendrys Creek is a spring-fed perennial creek that flows from the Preserve into Lexington Reservoir in
the Los Gatos Creek watershed. Hendrys Creek forms part of the headwaters of Los Gatos Creek, which
has one of the largest watersheds in Santa Clara County. Vegetation along the creek is primarily well
developed riparian woodland.
Hendrys Creek Tributaries are primarily ephemeral channels that are between 2 and 5 feet wide with
riparian woodland vegetation and some disturbed areas with non-native species.
Seeps and Springs occur throughout the project site. The extensive network of groundwater seeps and
springs partially feed surface water to the on-site creeks.
2.4.3 Onsite Structures
All structures and septic tanks were completely removed before POST’s purchase of the property. The only
improvements within the project site are unpaved roads, bridges, and culverts. Exhibit 2-5 shows areas of
the project site that have been previously disturbed.
2.4.4 Public Access
The Hendrys Creek property is not currently open to the public.
Ascent Environmental Background and Project Description
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 2-7
Exhibit 2-4 Habitat Types
Background and Project Description Ascent Environmental
Midpeninsula Regional Open Space District
2-8 Hendrys Creek Long-Term Management Plan IS/Proposed MND
Exhibit 2-5 Previously Disturbed Areas
Ascent Environmental Background and Project Description
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 2-9
2.5 PROJECT OBJECTIVES
The proposed project is intended to achieve the following primary objectives:
preserve, protect, and improve the ecological condition of selected local streams and their associated
watersheds;
reduce the potential for sedimentation to the aquatic environment;
maximize long-term benefit while minimizing impacts from the restoration actions implemented; and
maintain access throughout property for routine maintenance and emergency vehicle access.
2.6 DESCRIPTION OF PROPOSED PROJECT
The project site is accessed from an unpaved driveway along an access easement from Aldercroft Heights Road
to a system of unpaved roads throughout the property. Prior to purchase of the property by POST, the unpaved
roadways provided access to future home sites and a cleared meadow used as a golf green on-site. The existing
roadway creek crossings within the project site are susceptible to failure after large storm events, and in some
locations are contributing excessive fine-grained sediment to the Hendrys Creek watershed. A portion of the
existing roadway system would be maintained to provide vehicular access within the project site for maintenance,
routine patrols, and management of the property. Restoration of these crossings would reduce the potential of
these degraded areas to adversely affect the streams and other natural resources, and would reduce future
maintenance needs. The proposed project would include road/stream crossing improvements, and rehabilitation
of disturbed adjacent upland areas. The end result will be a network of stream channels that as a system
contributes less fine-grained sediment to the aquatic environment by virtue of being more resilient to large
storm events. The proposed actions are described in more detail below.
2.6.1 Restoration of Road/Stream Crossings
HENDRYS CREEK CROSSINGS
There are currently five crossings on Hendrys Creek; two of these are on Hendrys Creek Road and the other
three are on spur roads (Exhibit 2-6). Only one of these crossings (Crossing H4) would be needed for future
access. The remaining four crossings are no longer needed and would be removed by excavating the existing
fill and restoring the excavated channel. Current plans call for all bridges, culverts, and other “built” structures
at road/stream crossings to be removed, including site H4, and the stream channel “daylighted” (meaning all
fill material will be excavated from the channel bottom), leaving behind a functioning stream channel that is as
close to a more natural state or original configuration as practical. Table 2-1 includes a description of each
crossing along Hendrys Creek. Rehabilitation of Crossing H4 is described in more detail below.
Table 2-1 Hendrys Creek Crossings
Crossing Number Location Existing Crossing Proposed Improvement
H1-1 Hendrys Creek Road Culvert Remove
H1-2 Hendrys Creek above H1-1 None Remove existing stream blockage and associated sediment
H2 Foot Path Bridge Remove
H3 Spur Road Bridge Remove
H4 Hendrys Creek Road Bridge New bridge, embedded culvert, or temporary wet ford
H5 Spur Road Bridge Remove
Source: Best 2012, revised by MROSD
Background and Project Description Ascent Environmental
Midpeninsula Regional Open Space District
2-10 Hendrys Creek Long-Term Management Plan IS/Proposed MND
Exhibit 2-6 Crossing Locations and Proposed Area of Disturbance
Ascent Environmental Background and Project Description
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 2-11
Hendrys Creek Crossing H4
Crossing H4 is currently an 11-foot bridge at Hendrys Creek Road, which is the primary access road to the
interior of the property. The existing bridge was constructed within the active stream channel and has signs
of degradation and undercutting by stream bank erosion, which could compromise bridge stability and
safety. Because this crossing is a primary access point for the property, the existing crossing would be
replaced rather than removed. The existing bridge, abutments, and fill would be removed and replaced by a
temporary wet ford, embedded culvert, or new bridge. The level and area of ground disturbance would be
similar for each option.
Tributary Crossings
In addition to the Hendrys Creek crossings described above, there are currently nine crossings on tributaries
to Hendrys Creek (six culverts and three fords). Six of these crossings are located on Hendrys Creek Road
and the other three are located on spur roads. All of these crossings are currently in poor condition, and
several have failed. Several of the tributary crossings are also located on the debris fans, which places these
crossings at risk for sediment deposition to the stream. Deposition could infill these crossings rendering
them impassable and requiring ongoing maintenance to clear the crossings of debris or to reconstruct the
crossing.
Table 2-2 includes a description of each tributary crossing.
Table 2-2 Tributary Crossings
Number Location Existing Crossing
Type Proposed Improvement
T4
(Upstream) Hendrys Creek Road Culvert If replace w/ bridge or culvert, replace with culvert or ford.
If replace with ford, realign stream and install ford or abandon.
T5 Hendrys Creek Road Ford Realign stream and remove
T6 Hendrys Creek Road Ford Realign stream and remove
T7-1 Hendrys Creek Road Ford Realign stream
T7-2 Spur Road Culvert Remove
T7-A Graded Stream Channel None Restore stream channel
T8-1 Spur Road Culvert Remove
T8-2 Hendrys Creek Road Culvert Realign stream and remove
T9 Spur Road Diverted Maintain diversion
T12
(Downstream) Hendrys Creek Road Culvert Replace with culvert or ford
Source: Best 2012; modified by MROSD
The level of future use expected for the property requires only minimal vehicular access for patrol, invasive
plant removal, and monitoring the restoration activities by ATV in dry weather or on foot in inclement
weather. The upper crossings at the spur roads are no longer required for vehicle or ATV access; therefore,
at H4, the lowest road/stream crossing in the watershed on the property, a seasonal wet ford crossing,
embedded culvert, or new bridge will be constructed to allow for seasonal patrol access via four-wheel drive
all-terrain vehicle. Fords would include dips constructed through the creek channel by removing the majority
of the crossing fill and reestablishing the native channel alignment where possible. Maintenance would not
be required for ford crossings; however, the crossing may not be passable during periods of high runoff, and
high stream flows can undercut the approaches making the crossing impassable. Crossings at the spur
roads would be abandoned by removing the crossing structures and excavating any residual fill material.
Background and Project Description Ascent Environmental
Midpeninsula Regional Open Space District
2-12 Hendrys Creek Long-Term Management Plan IS/Proposed MND
There are two types of fords under consideration: 1) an unsurfaced “earth ford” or 2) a “rock ford” where the
outlet and road bed are armored. Earth fords are more commonly used when the road bed is comprised of
native rocky soils, such as found at Hendrys Creek, and when only seasonal access is required. Rock fords
are more permanent structures constructed by armoring the outer edge of the crossing with large rock riprap
and surfacing the road bed with coarse bed material. The rock used to armor the outer edge of the road
would be sized to resist moving under the design storm flows. This would typically require 18-inch diameter
rock that would need to be imported to the site; however, there is 12 inch rock onsite that may be used to
armor some of the crossings.
2.6.2 Restoration of Disturbed Uplands
The proposed project would include rehabilitation of disturbed upland areas in addition to the creek
crossings. All of the roads on the property are poorly drained with few drainage structures (e.g., dips). As a
result, road runoff concentrates for long distances and results in erosion. To mitigate erosion, drainage dips
would be installed approximately every 75 to 100 feet along all roads on-site.
Potentially unstable fill material also exists along some of the graded pads and along the outer edge of some
roads. Because this material may be unstable, there is increased risk of erosion. These areas would be
graded to remove unstable fill.
2.6.3 Public Access
Implementation of the LTMP would include designating the project as a Conservation Management Unit, and
confining land uses to activities that are consistent with creek and riparian corridor protection, watershed
and riparian habitat, and ecologically sensitive public enjoyment of the site.
Consistent with this designation, the project site would not be open to the general public, except for
infrequent hiking tours led by MROSD docents and a limited number of hiking permits issued on a case-by-
case basis for the use of existing roads in non-sensitive areas.
2.6.4 Project Construction
Construction of the proposed project is expected to take approximately three months with a maximum of six
construction workers on-site at any given time. Equipment and materials would be temporarily stored on-site
during construction of the proposed project. Equipment and materials would be limited to that needed to
perform rehabilitation work. Total estimated area of disturbance is 11.3 acres. Project construction would
occur during the daytime on weekdays and Saturdays.
Best management practices (BMPs) would be implemented during construction including placing silt fencing
and wattles around storage areas for equipment and materials. Equipment and materials storage areas
would be sited outside of sensitive habitats, and in areas with little to no slope to prevent transport of
material. Any disturbed areas would be revegetated following construction.
The construction contractor would comply, to the extent practical and feasible, with the following the Bay
Area Air Quality Management District (BAAQMD) standard BMPs during project construction to reduce
emissions of criteria air pollutants:
All exposed surfaces (e.g., parking areas, staging areas, soil piles, graded areas, and unpaved access
roads) will be watered two times per day.
All haul trucks transporting soil, sand, or other loose material off-site will be covered.
Ascent Environmental Background and Project Description
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 2-13
All visible mud or dirt track-out onto adjacent public roads will be removed using wet power vacuum
street sweepers at least once per day. The use of dry power sweeping is prohibited.
All vehicle speeds on unpaved roads will be limited to 15 miles per hour.
Idling times shall be minimized either by shutting equipment off when not in use or reducing the
maximum idling time to 5 minutes (as required by the California airborne toxics control measure Title 13,
Section 2485 of California Code of Regulations). Clear signage shall be provided for construction
workers at all access points
All construction equipment shall be maintained and properly tuned in accordance with manufacturer’s
specifications. All equipment shall be checked by a certified mechanic and determined to be running in
proper condition prior to operation.
A sign will be posted in a publicly visible location with the telephone number and person to contact at
MROSD regarding dust complaints. This contact person will respond and take corrective action within 48
hours of complaints. The BAAQMD’s phone number will also be visible to ensure compliance with
applicable regulations.
2.6.5 Maintenance and Operation
The overall long-term management goal for the project site is to enhance the aquatic habitats and native
vegetation on-site through monitoring, adaptive management, and restoration, if needed. Long-term
management of the project site would include conducting ongoing patrols and monitoring of streams,
springs, native vegetation, and habitats to determine stability and trends. Invasive species would also be
monitored and removed as needed. Long-term management of the property would be primarily conducted by
MROSD’s Operations, Planning, Real Property, and Natural Resources departments, and other staff as
appropriate in close coordination with the SCVWD as the Conservation Easement holder.
A phased approach would be undertaken to provide long-term maintenance and management of the
biological resources within the project site. In the first phase, the biological resources would be evaluated
and mapped to establish a baseline, and priorities and a schedule for implementation actions would be
developed. This phase would last several months and would occur in the first spring and summer following
adoption of the LTMP. During the second phase, which is expected to be approximately six (6) years, actions
would be taken to control stream erosion and remove high priority invasive plants. The third phase would
consist primarily of annual monitoring to detect and respond to events such as floods or fires, and would
consist of routine management that would continue in perpetuity.
As part of its maintenance of the project site, MROSD would evaluate invasive plants on-site, and make
recommendations for work that would require the use of pesticides. A limited number of herbicides would be
allowed for use at the project site, and no herbicides would be used within 15 feet of water. Manual control
treatments may also be used for the removal of small weed populations, individual occurrences, and
populations near special-status species and their habitat or sensitive natural communities. Additionally,
manual weed removal may be used as a follow-up treatment in areas where larger populations have been
sprayed with an herbicide. An Integrated Pest Management Program was recently approved that directs
these maintenance activities. A separate Environmental Impact Report evaluated the potential impacts of
these District-wide activities.
Equipment and materials would also be stored on-site periodically for maintenance and management
purposes. Equipment would be limited to that needed to perform work.
BMPs similar to those described above for construction would be used for any equipment or materials
storage areas.
Background and Project Description Ascent Environmental
Midpeninsula Regional Open Space District
2-14 Hendrys Creek Long-Term Management Plan IS/Proposed MND
The project site would be monitored and maintained as part of the routine management of the Preserve, and
no additional staffing would be required for management of the project site. The proposed project provides
very limited additional public access and amenities; therefore, maintenance activities are expected to
generate few, if any, additional vehicle trips (i.e., no more than 2 trips per day).
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-1
3 ENVIRONMENTAL CHECKLIST
PROJECT INFORMATION
1. Project Title: Hendrys Creek Long-Term Management Plan (LTMP)
2. Lead Agency Name and
Address:
Midpeninsula Regional Open Space District (MROSD)
330 Distel Circle, Los Altos, CA 94022
3. Contact Person and Phone
Number:
Meredith Manning, (650) 691-1200
4. Project Location: 20610 Aldercroft Heights Road, Los Gatos, CA, unincorporated Santa
Clara County (Assessor’s Parcel Numbers 558-27-007, 558-27-008 &
558-51-005)
5. Project Sponsor’s Name and
Address:
Santa Clara Valley Water District Midpeninsula Regional Open Space District
5750 Almaden Expressway 330 Distel Circle
San Jose, CA 95118-3686 Los Altos, CA 94022-1404
6. General Plan Designation: Santa Clara County: HS (Hillside)
7. Zoning: Santa Clara County: Hillside
8. Description of Project: (Describe the whole action involved, including but not limited to later phases of
the project, and any secondary, support, or offsite features necessary for its implementation. Attach
additional sheets if necessary.)
See attached project description.
9. Surrounding Land Uses and
Setting: (Briefly describe the
project’s surroundings)
Adjacent land uses consist predominantly of residential, recreational,
and open-space use. Please see attached project description.
10: Other public agencies whose
approval is required: (e.g.,
permits, financing approval,
or participation agreement)
Santa Clara Valley Water District (Approval of the LTMP and Conservation
Easement)
U.S. Army Corps of Engineers (USACE) (Section 404 Permit)
California Department of Fish and Wildlife (CDFW) (Section 1602 and 2080.1
compliance)
Regional Water Quality Control Board (RWQCB) (Section 401 certification)
Bay Area Air Quality Management District (BAAQMD) (notification of
demolition)
ENVIRONMENTAL FACTORS POTENTIALLY AFFECTED:
The environmental factors checked below would be potentially affected by this project, involving at least
one impact that is a “Potentially Significant Impact” as indicated by the checklist on the following pages.
Aesthetics Agriculture and Forest Resources Air Quality
Biological Resources Cultural Resources Geology / Soils
Greenhouse Gas Emissions Hazards & Hazardous Materials Hydrology / Water Quality
Land Use / Planning Mineral Resources Noise
Population / Housing Public Services Recreation
Transportation / Traffic Utilities / Service Systems Mandatory Findings of
Significance
None With Mitigation
Environmental Checklist
Ascent Environrnental
DETERMINATION (To be completed by the Lead Agency)
On the basis of this initial evaluation:
❑ I find that the proposed project could not have a significant effect on the environment, and a
NEGATIVE DECLARATION will be prepared.
I find that although the proposed project COULD have a significant effect on the environment,
there WILL NOT be a significant effect in this case because revisions in the project have been
made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be
prepared.
❑ I find that the proposed project MAY have a significant effect on the environment, and an
ENVIRONMENTAL IMPACT REPORT is required.
❑ I find that the proposed project MAY have a "potentially significant impact" or "potentially
significant unless mitigated" impact on the environment, but at least one effect 1) has been
adequately analyzed in an earlier document pursuant to applicable legal standards, and 2)
has been addressed by mitigation measures based on the earlier analysis as described on
attached sheets. An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only
the effects that remain to be addressed.
❑ I find that although the proposed project could have a significant effect on the environment,
because all potentially significant effects (a) have been analyzed adequately in an earlier EIR
or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or
mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or
mitigation measures that are imposed upon the proposed project, nothing further is required.
3//9/P12/
sig =ture Date
Jane Mark, AICP
Printed Name
Midpeninsula Regional Open Space District
Agency
Planning Manager
Title
3-2
Midpeninsula Regional Open Space District
Hendrys Creek Long -Term Management Plan IS/Proposed MND
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-3
EVALUATION OF ENVIRONMENTAL IMPACTS
1. A brief explanation is required for all answers except “No Impact” answers that are adequately
supported by the information sources a lead agency cites in the parentheses following each question.
A “No Impact” answer is adequately supported if the referenced information sources show that the
impact simply does not apply to projects like the one involved (e.g., the project falls outside a fault
rupture zone). A “No Impact” answer should be explained where it is based on project-specific factors
as well as general standards (e.g., the project will not expose sensitive receptors to pollutants, based
on a project-specific screening analysis).
2. All answers must take account of the whole action involved, including off-site as well as on-site,
cumulative as well as project-level, indirect as well as direct, and construction as well as operational
impacts.
3. Once the lead agency has determined that a particular physical impact may occur, then the checklist
answers must indicate whether the impact is potentially significant, less than significant with
mitigation, or less than significant. “Potentially Significant Impact” is appropriate if there is substantial
evidence that an effect may be significant. If there are one or more “Potentially Significant Impact”
entries when the determination is made, an EIR is required.
4. “Negative Declaration: Less Than Significant With Mitigation Incorporated” applies where the
incorporation of mitigation measures has reduced an effect from “Potentially Significant Impact” to a
“Less Than Significant Impact.” The lead agency must describe the mitigation measures, and briefly
explain how they reduce the effect to a less than significant level (mitigation measures from “Earlier
Analyses,” as described in (5) below, may be cross-referenced).
5. Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, an
effect has been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D).
In this case, a brief discussion should identify the following:
a) Earlier Analysis Used. Identify and state where they are available for review.
b) Impacts Adequately Addressed. Identify which effects from the above checklist were within the
scope of and adequately analyzed in an earlier document pursuant to applicable legal standards,
and state whether such effects were addressed by mitigation measures based on the earlier
analysis.
c) Mitigation Measures. For effects that are “Less than Significant with Mitigation Measures
Incorporated,” describe the mitigation measures which were incorporated or refined from the
earlier document and the extent to which they address site-specific conditions for the project.
6. Lead agencies are encouraged to incorporate into the checklist references to information sources for
potential impacts (e.g., general plans, zoning ordinances). Reference to a previously prepared or
outside document should, where appropriate, include a reference to the page or pages where the
statement is substantiated.
7. Supporting Information Sources: A source list should be attached, and other sources used or
individuals contacted should be cited in the discussion.
8. This is only a suggested form, and lead agencies are free to use different formats; however, lead
agencies should normally address the questions from this checklist that are relevant to a project’s
environmental effects in whatever format is selected.
9. The explanation of each issue should identify:
a) the significance criteria or threshold, if any, used to evaluate each question; and
b) the mitigation measure identified, if any, to reduce the impact to less than significance.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-4 Hendrys Creek Long-Term Management Plan IS/Proposed MND
3.1 AESTHETICS
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
I. Aesthetics. Would the project:
a) Have a substantial adverse effect on a scenic
vista?
b) Substantially damage scenic resources, including,
but not limited to, trees, rock outcroppings, and
historic buildings within a state scenic highway?
c) Substantially degrade the existing visual character
or quality of the site and its surroundings?
d) Create a new source of substantial light or glare
which would adversely affect day or nighttime
views in the area?
3.1.1 Environmental Setting
The project site has a high degree of visual quality (Exhibits 3.1-1 through 3.1-3) that is characterized by
steep, rugged topography and dense, intact, native California bay forest. The water features that transverse
the property contribute to the site’s high scenic quality, including several tributaries, drainages and springs,
all of which flow into Hendrys Creek canyon. Much of Hendrys Creek has a step pool configuration with a
waterfall near the northern portion of the property. The site is largely undeveloped, with the development
being limited to several unpaved roads with creek crossings (Exhibits 3.1-4 and 3.1-5) and leveled pads for
former home sites.
Views from the property are largely obscured by intervening vegetation and topography; however,
surrounding open space within the Preserve can be viewed to the north, south and east from the higher
elevations. The Preserve has a high scenic quality generally characterized by the beauty and ruggedness of
unspoiled wildlands. The highest portions of the project site offer some scenic views; however, the property
is not open to the public and access to these areas is limited by steep topography and dense vegetation.
State Route 17, which is eligible for listing as a State-designated scenic highway (Caltrans 2013), is located
approximately 1.5 miles west of the project site. However, views of the project site from the highway are
obscured by vegetation and topography.
MROSD policies included in the “Resource Management Policies” document (MROSD 2011) are intended to
reduce District-wide visual impacts. Applicable Resource Management Policies include minimizing evidence
of human impacts by minimizing visibility of infrastructure and maintaining significant natural landscapes by
controlling vegetation to maintain scenic views and requiring tenants to maintain landscapes.
Nighttime views in the project area are very dark and generally free of light pollution. There are currently no
sources of light or glare within the property.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-5
Exhibit 3.1-1 Hendrys Creek Channel
Exhibit 3.1-2 Hendrys Creek Channel with Crossing
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-6 Hendrys Creek Long-Term Management Plan IS/Proposed MND
Exhibit 3.1-3 Tributary
Exhibit 3.1-4 Access Road
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-7
Exhibit 3.1-5 Hendrys Creek Crossing H4
3.1.2 Discussion
a) Have a substantial adverse effect on a scenic vista?
No Impact. The majority of off-site views from the property are obscured by topography and vegetation;
therefore, scenic viewpoints within the property are generally limited to those from the highest elevations.
However, views from these scenic vistas are currently not available to the public, and implementation of the
proposed project would only allow limited public access to the site. In addition, the proposed project would
involve minor physical modifications that would generally improve the visual character of the site by
removing man-made features and restoring the creek to a more natural condition. These improvements
would be confined primarily to within and along the waterways within the property. Therefore, these changes
would not interfere with any existing scenic views (either onsite or offsite). No impact would result.
b) Substantially damage scenic resources, including, but not limited to, trees, rock outcroppings, and historic buildings
within a state scenic highway?
No Impact. The nearest scenic highway to the project site is State Route 17, which is approximately 1.5
miles to the west. Views of the proposed project would not be visible from State Route 17 because of
intervening vegetation, topography, and distance. The proposed project would include removal or
replacement of degraded road crossings, which would improve the visual character of the project site by
returning Hendrys Creek to a more natural state. The proposed project would not result in tree removal or
removal of rock outcroppings. Therefore, because the proposed project would not substantially damage
scenic resources that could be visible from a state scenic highway, no impact would occur.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-8 Hendrys Creek Long-Term Management Plan IS/Proposed MND
c) Substantially degrade the existing visual character or quality of the site and its surroundings?
Less than Significant. There would be some temporary changes to the visual character of the project site
during construction due to presence of construction equipment and materials; however, due to intervening
topography, vegetation, and distance, these changes would not be clearly visible from surrounding areas.
Implementation of the proposed project would include replacement or removal of degraded road crossing
across Hendrys Creek and its tributaries. Removal or replacement of the crossings would improve the visual
character of the project site and return the site to a more natural state by removing human made structures
that are currently in poor condition. In addition, only limited vehicle access would be allowed on the project
site so there would be very little increase in the number of viewers that would have visual access to the
changes. The proposed changes would not be visible from off site. Therefore, the proposed project would
improve the project site and would not result in substantial degradation of the existing visual character or
quality of the site. This would be a less-than-significant impact.
d) Create a new source of substantial light or glare which would adversely affect day or nighttime views in the area?
No Impact. The proposed project includes no development of structures or other occupied facilities and
would not include any new lighting or other sources of light or glare. Construction activities would occur
during the daytime hours and would not require the use of nighttime lighting. Public access would be allowed
only during periodic site tours led by MROSD staff, which would only occur during the day. The project would
result in no impact on light and glare.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-9
3.2 AGRICULTURE AND FOREST RESOURCES
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
II. Agriculture and Forest Resources.
In determining whether impacts to agricultural
resources are significant environmental effects, lead
agencies may refer to the California Agricultural Land
Evaluation and Site Assessment Model (1997, as
updated) prepared by the California Department of
Conservation as an optional model to use in assessing
impacts on agriculture and farmland. In determining
whether impacts to forest resources, including
timberland, are significant environmental effects, lead
agencies may refer to information compiled by the
California Department of Forestry and Fire Protection
regarding the state’s inventory of forest land, including
the Forest and Range Assessment Project and the
Forest Legacy Assessment project; and forest carbon
measurement methodology provided in Forest Protocols
adopted by the California Air Resources Board.
Would the project:
a) Convert Prime Farmland, Unique Farmland, or
Farmland of Statewide Importance (Farmland), as
shown on the maps prepared pursuant to the
Farmland Mapping and Monitoring Program of the
California Resources Agency, to non-agricultural
use?
b) Conflict with existing zoning for agricultural use or
a Williamson Act contract?
c) Conflict with existing zoning for, or cause rezoning
of, forest land (as defined in Public Resources
Code section 12220(g)), timberland (as defined
by Public Resources Code section 4526), or
timberland zoned Timberland Production (as
defined by Government Code section 51104(g))?
d) Result in the loss of forest land or conversion of
forest land to non-forest use?
e) Involve other changes in the existing environment,
which, due to their location or nature, could result
in conversion of Farmland to non-agricultural use
or conversion of forest land to non-forest use?
3.2.1 Environmental Setting
The majority of the Hendrys Creek Property is natural wildlands with steep hillsides, and is not in agricultural
production. In addition, the project site is not designated as Farmland of Statewide or Local Importance,
Unique Farmland, or Prime Farmland by the Farmland Mapping and Monitoring Program (FMMP). The FMMP
designates the land within the project site and surrounding area as “Other Land” (land that does not meet
the criteria of any of the other categories) (Department of Conservation 2012).
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-10 Hendrys Creek Long-Term Management Plan IS/Proposed MND
The California Land Conservation Act of 1965—commonly referred to as the Williamson Act—enables local
governments to enter into contracts with private landowners for the purpose of restricting specific parcels of
land to agricultural or related open space use. In return, landowners receive property tax assessments which
are much lower than similarly situated properties because they are based upon farming and open space
uses as opposed to full market value. Local governments receive an annual subvention of forgone property
tax revenues from the state via the Open Space Subvention Act of 1971. The project site is divided into three
parcels, and Parcels 1 and 2, which total 116 acres of the 117-acre property, are subject to a Williamson Act
Contract dated February 17, 1977, with the County. The remaining one-acre parcel is not subject to this
contract. The former owner requested a non-renewal of these contracts in 2007 (Parcel 2) and 2008 (Parcel
1), but they will remain in effect throughout the nine-year non-renewal period (until 2017 and 2018
respectively). However, maintenance of project site in its natural state for the purpose of preserving open
space is one of the compatible uses allowed in the Williamson Act Contract for the site.
3.2.2 Discussion
a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps
prepared pursuant to the Farmland Mapping and Monitoring Program of the California Resources Agency, to non-
agricultural use?
No Impact. The FMMP identifies the project site as “other land.” No Prime Farmland, Unique Farmland, or
Farmland of Statewide or Local Importance occurs on the project site (Department of Conservation 2012). In
addition, no agricultural uses exist on the project site and no grazing currently occurs within project site. The
proposed project would include preservation of open space and removal of road crossings along Hendrys
Creek, and therefore would not preclude use of the property for agricultural purposes in the future. The
proposed project would have no impact on the conversion of Prime, Unique, or Farmland of statewide
importance.
b) Conflict with existing zoning for agricultural use or a Williamson Act contract?
Less than Significant. The Santa Clara County General Plan designates the property as Hillside, which allows
for agricultural uses, mineral extraction, low-density recreation, land in its natural state, wildlife refuges, very
low density residential development, and commercial, industrial, or industrial uses that require remote
settings or support recreation or appreciation of the natural environment. Thus, preservation of the project
site as open space and removal of stream crossings would be consistent with the current zoning.
The majority of the project site (116 acres) is in the 9-year non-renewal period of a Williamson Act contract,
which will terminate by 2018.Compatible uses under the Williamson Act, as amended, include “Open Space
Use” and “Recreational Use.” “Recreational Use” is defined in the Williamson Act (Cal. Government Code
51201(n)) as the use of land in its agricultural or natural state by the public, with or without charge, for any
of the following: walking, hiking, picnicking, camping, swimming, boating, fishing, hunting, or other outdoor
games or sports for which facilities are provided for public participation.
MROSD’s mission to preserve, protect, and maintain lands as open space meets the intent and purpose of
the Williamson Act, and preservation of the project site as open space with limited recreational access is
consistent with the Williamson Act. Therefore, the project would result in a less-than-significant impact
associated with conflicts with zoning or Williamson Act contracts.
c) Conflict with existing zoning for, or cause rezoning of, forest land (as defined in Public Resources Code section
12220(g)), timberland (as defined by Public Resources Code section 4526), or timberland zoned Timberland
Production (as defined by Government Code section 51104(g))?
No Impact. As mentioned above under “b,” the project site is zoned as Hillside, which is not considered
forest land or timberland. The proposed project would not require a rezoning of the project site. The
proposed project would only minimally remove or trim live trees, dead trees, brush and/or woody debris
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-11
where required for stream channel restoration, by fire protection agencies, for treatment of disease, for
public safety, for patrol vehicle access, for recreational limited access, or fire breaks including for defensible
space purposes at utility lines or at the Property lines, and would not require substantial tree removal.
Therefore, the project would result in no impact related to conflicts with the zoning of forest land or
timberland.
d) Result in the loss of forest land or conversion of forest land to non-forest use?
Less than Significant. The project site does not contain any timberlands and riparian forest within the site
located along Hendrys Creek and tributaries. Implementation of the proposed project does not include
development of new structures or facilities that would require tree removal or conversion of riparian forest.
As described in Section 3.4, “Biological Resources,” any disturbance to riparian areas as a result of road
crossing removal would be temporary and would be fully restored to an improved state following
construction. In addition, recreational access within the property would be limited by MROSD, with permits
granted on a case-by-case basis and periodic staff-led tours, so there would be no long-term loss of riparian
forest due to overuse. Therefore, implementation of the proposed project would result in a less-than-
significant impact on loss of forest land.
e) Involve other changes in the existing environment, which, due to their location or nature, could result in conversion of
Farmland to non-agricultural use or conversion of forest land to non-forest use?
No Impact. Implementation of the proposed project would not involve other changes that could result in
conversion of farmland or forest land to non-agricultural or non-forest use. As described in the discussions
under “a” through “d” above, implementation of the proposed project would result in no impact related to
conversion of agricultural or forest land.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-12 Hendrys Creek Long-Term Management Plan IS/Proposed MND
3.3 AIR QUALITY
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
III. Air Quality.
Where available, the significance criteria established
by the applicable air quality management or air
pollution control district may be relied on to make the
following determinations.
Would the project:
a) Conflict with or obstruct implementation of the
applicable air quality plan?
b) Violate any air quality standard or contribute
substantially to an existing or projected air quality
violation?
c) Result in a cumulatively considerable net increase
of any criteria pollutant for which the project
region is non-attainment under an applicable
federal or state ambient air quality standard
(including releasing emissions which exceed
quantitative thresholds for ozone precursors)?
d) Expose sensitive receptors to substantial
pollutant concentrations?
e) Create objectionable odors affecting a substantial
number of people?
3.3.1 Environmental Setting
The project site is located in Santa Clara County, which lies within the jurisdiction of BAAQMD. Santa Clara
County is in State nonattainment for ozone, PM2.5, and PM10. Santa Clara County is in federal nonattainment
for ozone, PM2.5, and unclassified for PM10.
Air quality within Santa Clara County is regulated by such agencies as the U.S. Environmental Protection
Agency, and California Air Resources Board (ARB) at the federal and state levels, respectively, and locally by
the BAAQMD. The BAAQMD seeks to improve air quality conditions in Santa Clara County through a
comprehensive program of planning, regulation, enforcement, technical innovation, and promotion of the
understanding of air quality issues. The clean air strategy of the BAAQMD includes the development of
programs for the attainment of ambient air quality standards, adoption and enforcement of rules and
regulations, and issuance of permits for stationary sources. BAAQMD also inspects stationary sources,
responds to citizen complaints, monitors ambient air quality and meteorological conditions, and implements
other programs and regulations required by the federal Clean Air Act, federal Clean Air Act Amendments of
1990, and the California Clean Air Act.
BAAQMD’s June 2010 adopted thresholds of significance were challenged in a lawsuit. On March 5, 2012
the Alameda County Superior Court issued a judgment finding that BAAQMD had failed to comply with CEQA
when it adopted the thresholds. The court found that the adoption of the thresholds was a project under
CEQA and ordered BAAQMD to examine whether the thresholds would have a significant impact on the
environment under CEQA before recommending their use. The court issued a writ of mandate ordering
BAAQMD to set aside the thresholds and cease dissemination of them until BAAQMD had complied with
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-13
CEQA. The court’s order permits BAAQMD to develop and disseminate these CEQA Guidelines, as long as
they do not implement the thresholds of significance.
As discussed in BAAQMD’s updated CEQA guide that was released in May 2012, an analysis of
environmental impacts under CEQA includes an assessment of the nature and extent of each impact
expected to result from the project to determine whether the impact will be treated as significant or less
than significant. CEQA gives lead agencies discretion whether to classify a particular environmental impact
as significant. Ultimately, formulation of a standard or “threshold” of significance requires the lead agency to
make a policy judgment about where the line should be drawn distinguishing adverse impacts it considers
significant from those that are not deemed significant. This judgment must, however, be based on scientific
information and other factual data to the extent possible. (State CEQA Guidelines Section 15064[b]).
As discussed above, due to the existing court order on BAAQMD’s adopted 2010 CEQA Thresholds of
Significance, BAAQMD cannot recommend specific thresholds of significance for use by local governments at
this time. BAAQMD states that lead agencies will need to determine appropriate air quality thresholds to use
for each project they review based on substantial evidence that they should include in the administrative
record for the project. One resource BAAQMD provides as a reference for determining appropriate thresholds
is the CEQA Thresholds Options and Justification Report developed by staff in 2009 (BAAQMD 2009). The
CEQA Thresholds Options and Justification Report outlines substantial evidence supporting a variety of
thresholds of significance.
MROSD has independently reviewed BAAQMD recommended thresholds from June 2010 including
BAAQMD’s Justification Report which explains the agency’s reasoning for adopting the thresholds, and
determined that they are supported by substantial evidence and are appropriate for use to determine
significance in the environmental review of this project. Specifically, MROSD has determined that the
BAAQMD thresholds are well-founded based on air quality regulations, scientific evidence, and scientific
reasoning concerning air quality. Therefore, for the purposes of this project, the following thresholds of
significance, as included in the aforementioned report, will be used to determine if an impact on air quality
would be significant. The project would result in a significant air quality impact if it would result in an
exceedance of any of the following levels:
reactive organic gases (ROG): 54 lbs/day;
nitrogen oxides (NOX): 54 lbs/day;
particulate matter, exhaust (PM10): 82 lbs/day;
particulate matter, exhaust (PM2.5): 54 lbs/day; and
particulate matter, fugitive dust (PM2.5/PM10): best management practices (BMPs)
3.3.2 Discussion
a) Conflict with or obstruct implementation of the applicable air quality plan?
Less than Significant. The emission inventories used to develop a region’s air quality attainment plans are
based primarily on projected population growth and vehicle miles traveled (VMT) for the region, which are
based, in part, on the planned growth identified in regional and community plans. Therefore, projects that
would result in increases in population or employment growth beyond that projected in regional or
community plans could result in increases in VMT above that planned in the attainment plan, further
resulting in mobile source emissions that could conflict with a region’s air quality planning efforts. Increases
in VMT beyond that projected in area plans generally would be considered to have a significant adverse
incremental effect on the region’s ability to attain or maintain state and federal ambient air quality
standards.
The proposed project would include road/stream crossing improvements and rehabilitation of disturbed
upland areas. In addition, the project site would be designated as a Conservation Management Unit; the
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-14 Hendrys Creek Long-Term Management Plan IS/Proposed MND
project site would not be open to the general public, except for limited recreational access by MROSD
permit, granted on a case-by-case basis, and periodic staff-led tours. Thus, the proposed project would not
generate demand for any new permanent employees or result in an increase in visitors or associated vehicle
trips (e.g., employee trips, visitation trips). Temporary construction activities would result in slight increases
in trips associated construction workers. However, these would be temporary and would only occur during
the 3-month construction period. The project would not result in any new employment opportunities or new
housing and, therefore, it would not change the amount of development projected for Santa Clara County,
and it would be consistent with the population growth and VMT projections contained in the BAAQMD’s
AQMP. The project would not interfere with the region’s ability to attain or maintain state and national
ambient air quality standards. Thus, implementation of the proposed project would not conflict with or
obstruct implementation of any air quality planning efforts. As a result, this impact would be less than
significant.
b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation?
Less than Significant. Operation of the project would not result in any increases in mobile sources and
therefore this is not discussed further. Implementation of the proposed project would result in minor
construction activities. The use of heavy equipment would be minimal and would be primarily limited to
removal of creek crossings and restoration of associated uplands. Therefore, emissions of criteria air
pollutants (e.g., NOX, ROG, and Diesel PM) would be minimal and project construction activities would not
result in emissions of criteria air pollutants that could exceed applicable BAAQMD emissions thresholds.
Emissions associated with construction were estimated and compared to BAAQMD emissions thresholds as
shown in Table 3.3-1, below. Detailed model outputs are also included in Appendix B of this IS/MND.
Table 3.3-1 Maximum Project Construction Emissions (lbs/day)
ROG NOx PM10 Exhaust PM10 Fugitive Dust PM2.5 Exhaust PM2.5 Fugitive Dust
Maximum Construction Daily Emissions 0.9 8.0 0.5 13.6 0.44 7.5
BAAQMD Threshold 54 54 82 Implement BMPs 54 Implement BMPs
Notes: BMP = best management practice
Source: Modeled by Ascent Environmental from BAAQMD CalEEMod 2015
Although emissions of criteria air pollutants, including emissions of fugitive dust (i.e., PM10 and PM2.5) would
be below applicable BAAQMD thresholds, all projects within the BAAQMD jurisdiction are required to
implement BMPs during construction activities. As described in the project description, the project would
implement BMPs during construction activities that would further reduce fugitive dust and exhaust
emissions. These include watering of exposed surfaces twice daily, covering all haul trucks carrying dust or
loose material, reducing vehicle speeds on unpaved roads, reducing engine idle times, using well maintained
equipment, and cleaning dirt track-out from construction equipment daily. Therefore, project-generated
emissions would not violate or contribute substantially to an existing or projected air quality violation. This
impact would be less than significant.
c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non-
attainment under an applicable federal or state ambient air quality standard (including releasing emissions which
exceed quantitative thresholds for ozone precursors)?
Less than Significant. Past, present and future development projects contribute to the region’s adverse air
quality impacts on a cumulative basis. By its very nature, air pollution is largely a cumulative impact. No
single project is sufficient in size to, by itself, to result in nonattainment of ambient air quality standards.
Instead, a project’s individual emissions contribute to existing cumulatively significant adverse air quality
impacts. As explained in BAAQMD’s CEQA Guidelines, and consistent with CEQA, if a project’s contribution to
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-15
the cumulative impact is considerable, then the project’s impact on air quality would be considered
significant.
In developing thresholds of significance for air pollutants, air districts consider the emission levels for which
a project’s individual emissions would be cumulatively considerable. If a project exceeds the identified
significance thresholds, its emissions would be cumulatively considerable, resulting in significant adverse air
quality impacts to the region’s existing air quality conditions. Thus, as discussed in the analysis under item
“b” above, project-generated emissions would not exceed applicable thresholds and, therefore, would not
violate an existing air quality standard. Additionally, the project would not result in an increase in mobile
source emissions, and construction-related emissions would be minimal and temporary (i.e., 3 months) and
below the applicable thresholds of significance. As a result, project-generated emissions of criteria air
pollutants and precursors would not be cumulatively considerable. This impact would be a less than
significant.
d) Expose sensitive receptors to substantial pollutant concentrations?
Less than Significant. No demolition would occur as part of the proposed project. The project would result in
removal of several stream crossings; however, the crossings are primarily made of wood and steel with some
concrete reinforcement. These materials do not typically contain asbestos; therefore there is no potential for
the release of asbestos and this issue is not discussed further.
As discussed in “b” above, project implementation would not result in regional (e.g., ROG, NOX, PM10) or local
(e.g., carbon monoxide) emissions of criteria air pollutant or precursors from construction or operational-
related activities.(e.g., ROG, NOX, PM10) that would exceed applicable thresholds of significance. Thus,
project-generated criteria air pollutant and precursor emissions would not expose sensitive receptors to
substantial pollutant concentrations.
The project would result in short-term diesel exhaust emissions from onsite construction equipment.
Particulate exhaust emissions from diesel-fueled engines (diesel PM) were identified as a TAC by the ARB in
1998. The potential cancer risk from the inhalation of diesel PM, as discussed below, outweighs the
potential for all other health impacts (ARB 2003), so diesel PM is the focus of this discussion.
The primary source of diesel PM from the proposed project would be from construction-related activities
(e.g., exhaust from off-road heavy diesel equipment). Sensitive receptors surrounding the project site include
residences located in the hills on either side of Aldercroft Heights Road located over 1,000 feet from the
proposed disturbance area (see Exhibit 3.12-1 in in Section 3.12, “Noise”). Based on the emission modeling
conducted, the highest level of PM10 (i.e., diesel PM) that would occur on the worst construction day would
be less than 1 lb/day (See Table 3.3-1 above). This level is substantially lower than the recommended
threshold of 82 lbs/day. Additionally, the construction phase would be very short (i.e., 3 months) and would
involve minor earthwork. Thus, considering the substantially low amount of emissions predicted from this
project and the short duration of construction-related activities, the project would not be anticipated to result
in the exposure of sensitive receptors to substantial pollutant concentrations.
As discussed above, the project would result in regional (e.g., ROG, NOX, PM10) or local (e.g., carbon
monoxide) emissions of criteria air pollutant or precursors from construction or operational-related
activities.(e.g., ROG, NOX, PM10) that would exceed applicable thresholds of significance. In addition, the
project would include BMPs during construction, to the extent practical and feasible, that would further
reduce short-term construction emissions. These include watering of exposed surfaces twice daily, covering
all haul trucks carrying dust or loose material, reducing vehicle speeds on unpaved roads, reducing engine
idle times, using well maintained equipment, and cleaning dirt track-out from construction equipment daily.
Construction would be relatively short in duration (i.e., 3 months) and estimated diesel PM emissions would
be considered low. Thus, project-related construction and operation would not expose nearby sensitive
receptors to substantial levels of pollutants and this impact would be less than significant.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-16 Hendrys Creek Long-Term Management Plan IS/Proposed MND
e) Create objectionable odors affecting a substantial number of people?
Less than Significant. The occurrence and severity of odor impacts depend on numerous factors, including
the nature, frequency, and intensity of the source; wind speed and direction; and the presence of sensitive
receptors. Although offensive odors rarely cause any physical harm, they still can be very unpleasant, leading
to considerable distress and often generating citizen complaints to local governments and regulatory
agencies.
BAAQMD has established Regulation 7 (Odorous Emissions) to address odor issues. Regulation 7 places
general limitations on odorous substances and specific emission limitations on certain odorous compounds.
Project implementation would not result in any major sources of odor and the project type is not one of the
common types of facilities or activities that are known to produce odors (e.g., landfill, coffee roaster,
wastewater treatment facility). In addition, the diesel exhaust from the use of heavy equipment during
construction activities would be intermittent and temporary, and would dissipate rapidly from the source with
an increase in distance. In this case, sensitive receptors are located over 1,000 feet away from any
construction-related odor source. Also, construction activity would not occur at any single location for an
extended period of time. Therefore, project implementation would not create objectionable odors affecting a
substantial number of people. As a result, this impact would be less than significant.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-17
3.4 BIOLOGICAL RESOURCES
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
IV. Biological Resources. Would the project:
a) Have a substantial adverse effect, either directly
or through habitat modifications, on any species
identified as a candidate, sensitive, or special-
status species in local or regional plans, policies,
or regulations, or by the California Department of
Fish and Wildlife or the U.S. Fish and Wildlife
Service?
b) Have a substantial adverse effect on any riparian
habitat or other sensitive natural community
identified in local or regional plans, policies, or
regulations or by the California Department of Fish
and Wildlife or the U.S. Fish and Wildlife Service?
c) Have a substantial adverse effect on federally
protected wetlands as defined by Section 404 of
the Clean Water Act (including, but not limited to,
marsh, vernal pool, coastal, etc.) through direct
removal, filling, hydrological interruption, or other
means?
d) Interfere substantially with the movement of any
native resident or migratory fish or wildlife species
or with established native resident or migratory
wildlife corridors, or impede the use of native
wildlife nursery sites?
e) Conflict with any local policies or ordinances
protecting biological resources, such as a tree
preservation policy or ordinance?
f) Conflict with the provisions of an adopted Habitat
Conservation Plan, Natural Community
Conservation Plan, or other approved local,
regional, or state habitat conservation plan?
3.4.1 Environmental Setting
The following discussion is based on the vegetation, habitat, and species description included in the LTMP.
HABITAT AND SPECIES DESCRIPTIONS
The majority of the Hendrys Creek Property is comprised of natural wildlands with steep hillsides. The
Hendrys Creek project area provides high quality natural habitat for many species including the San
Francisco dusky-footed woodrat, mountain lion (Puma concolor), bats, and Nuttall’s woodpecker (Picoides
nuttallii) and contains mature riparian forest, perennial seeps and springs, oak/bay forests, chaparral, rock
outcrops, and preserved jurisdictional waters of the United States. Scattered stands of non-native annual
grass and French broom (Genista monspessulana) also occur on areas where the former building pads were
located.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-18 Hendrys Creek Long-Term Management Plan IS/Proposed MND
A map of the vegetation communities (categorized based on the CNPS Manual of California Vegetation
1995) is included below as Exhibit 3.4-1. A map of the stream corridors on the property is included as Exhibit
2-3 in Chapter 2, “Project Description.”
Watershed and Stream Corridor Characteristics
The riparian canyon of the Hendrys Creek watershed traverses the project site with over 2.4 miles of
streams, including one perennial multi-order stream (Hendrys Creek) and at least nine first or second order
tributaries of Hendrys Creek (Exhibit 2-3).
Hendrys Creek is a spring-fed perennial creek which flows from the Sierra Azul Preserve into Lexington
Reservoir. Hendrys Creek forms part of the headwaters of Los Gatos Creek, which has one of the largest
watersheds in Santa Clara County. The Los Gatos Creek has a total drainage area of 55 square miles, 37 of
which are located upstream of Lexington Reservoir. Los Gatos Creek starts from the headwaters and its
smaller tributaries northwest of Loma Prieta Peak and traverses northwestward collecting contributions from
various smaller tributaries and empties into Lake Elsman into which Austrian Gulch Creek flows as well. Los
Gatos Creek continues its northwest path to its confluence with Hendrys Creek at the upstream end of
Lexington Reservoir, a groundwater recharge reservoir. Los Gatos Creek exits the north end of Lexington
Reservoir and flows northward through the City of Los Gatos and to its terminus at Guadalupe River near
downtown San Jose.
The Hendrys Creek tributaries drain narrow and steep gradient watersheds. The north uppermost slopes of
the watershed are prone to landslides. These existing and potential new landslides are subject to
accelerated soil erosion. The project site is located on the low-gradient depositional reach of Hendrys Creek,
and is therefore more likely to be the location where the stream’s natural sediment and debris load is
deposited. Debris fans have formed at the mouths of these drainages from naturally high sediment loads
and infrequent debris flow landslides that extend down the tributary channel. The tributary stream channels
draining across the debris fans are generally shallow and their location can naturally change over time in
response to large depositional events. These natural events are likely to continue in the future regardless of
any rehabilitation work or careful land management.
Fire has also been an important natural influence on the Hendrys Creek watershed. Much of the upper Los
Gatos Creek watershed is in a state of regeneration and forest succession from major past disturbances
including historic logging and fires. In July 1985, a wildfire burned 22 square miles of steep, predominantly
chaparral-covered terrain extending from Lexington Reservoir to the top of Priest Rock Trail to Loma Prieta.
The burned area included much of the Property’s upper hillsides along the north side. The burned area may
still be prone to mass downslope soil movements when the heavy rains occur.
Potential septic discharges and all water supply diversions on the Property that could have degraded surface
water quality have been removed with the elimination of the former mobile home trailers and residence sites
in winter of 2011/2012. Similarly, the active heavy road use, grading and clearing associated with the
residential use of the Property has been eliminated, further benefitting water quality and general stream
conditions. No known water supply diversions, septic tanks or human-influenced soil disturbance occurs
upstream. In the Property’s current condition, potential for lowered water quality still exists when high
sediment runoff is prevalent. This condition could occur during periods of high rainfall and surface water
runoff along roadways, at road/stream crossings, disturbed level clearings, or areas affected by future fire or
earthquake events.
Hendrys Creek and its tributaries are well-shaded by mature riparian vegetation. The extremely permeable
streambeds are well-drained and rocky, dominated by native gravels, blocky cobbles, and bedrock. Only
minimal large woody debris is present and the banks are of native soils. Much of Hendrys Creek has a step
pool configuration with a waterfall present near the uppermost end of the project site, and a large rock
cascade present near the upper end of a tributary. Tributary channels are predominantly confined by
bedrock slopes. All streams appear laterally and vertically stable with little or no evidence of direct human
modification outside of the disturbed areas associated with the road system and former residence sites.
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-19
Exhibit 3.4-1 Vegetation Communities
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-20 Hendrys Creek Long-Term Management Plan IS/Proposed MND
In these disturbed areas the channel, geometry is evolving to adjust to in-stream modifications, with recent
landslide debris present in the streambed. Flooding does not appear to be an issue due to the permeability
of the soil, although road crossing failure during high flow events remains a distinct possibility.
The Project site contains numerous seeps and springs, many of which were partly developed to facilitate use
for residential drinking water, now no longer occurring. Based upon topographic map interpretation and site
observations, groundwater flow beneath the site is inferred to be in a westerly direction towards Lexington
Reservoir. No ponds are present on the project site. Two small instream ponds are found downstream on the
adjacent private property. Streams, seeps and springs are considered to be sensitive habitats due their
potential support for special-status species.
Floodplains and uplands on the project site are predominantly in a natural, vegetated condition. No
impervious surfaces exist on or upstream of the Property. Human influences affecting floodplain and upland
conditions consist of the road system and the level clearings formerly occupied by residential structures
which contain exotic garden plants and occurrences of invasive plants.
Vegetation Characteristics and Habitat Types
General Vegetation Characteristics
Site vegetation is primarily native and includes well-developed stream side and hillside forests, including
dense, intact, native California bay (Umbellularia californica) forests and areas of chamise (Adenostoma
facsciculatum) chaparral blanketing the upper slopes. Coast live oak (Quercus agrifolia) is also common,
and other typical hardwood forest species of the Santa Cruz range, such as California buckeye (Aesculus
californicus) and madrone (Arbutus menziesii) are present but not as abundant. In addition to the
predominant woodland species of the site, dense-canopied deciduous riparian forests occur along Hendrys
Creek and some tributaries. Big-leaf maple (Acer macrophyllum), white alder (Alnus rhombilfolium), and
some scattered, very large California sycamores (Platanus racemosa) are present. Steep moist bedrock
exposures host numerous fern species. Giant chain fern (Woodwardia fimbriata) is present at the seeps and
springs. Exhibit 3.4-1, Vegetation Map, shows the distribution of these plant communities based on the
CNPS Manual of California Vegetation 1995 system. Each mapping unit depicted within the Property
boundary in Exhibit 3.4-1 is described in more detail below.
Disturbance events such as wildfires in the region and repeated human influences may have altered the
historic distribution of plant communities on the site. The interspersed pattern of the shrublands and forest
on the site’s northwestern upper slopes areas may be the result of fire patterns from the recent major fire.
Invasive plants are present in the disturbed, former residential areas of the Property. The sunny upland
clearings are bordered by invasive French broom (Genista monspessulana), and the some creek banks are
covered with invasive periwinkle (Vinca major).
California Bay Association
This habitat type is found scattered on hillsides and along streams throughout the northern half of the
Property and is dominated (greater than 75% relative cover) by dense (greater than 80%), intact California
bay forests. A few scattered big-leaf maple, alder, and mixed hardwoods are also found in the overstory of
this habitat association.
California Bay-Coast Live Oak Multiple Series Mapping Unit
The California Bay–Coast Live Oak Multiple Series Mapping Unit dominates in the areas immediately upslope
of the Hendrys Creek riparian corridor. It is a mixed broad-leaved evergreen forest with dense components of
California bay, madrone and coast live oak in the overstory; California bay and coast live oak co-dominate.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-21
White Alder Series
Dense-canopied deciduous riparian forest, classified as white alder series, occurs along portions of Hendrys
Creek as well as tributaries 4 and 5. This series is noted to be found primarily in the mid and upper portions
of watersheds along perennial streams. White alder dominates, but big-leaf maple, California bay and some
large California sycamores are also present.
Big-leaf Maple Series
The big-leaf maple series mapped on the project site consists of dense-canopied deciduous riparian forest
along the remaining portions of Hendrys Creek not mapped as white alder series. It also occurs along stream
3, a tributary to Hendrys Creek. This habitat type is dominated by big-leaf maple with California bay also
contributing to the overstory.
Chamise Series
This habitat type is found blanketing the upper slopes in the northern half of the Property. Dense chamise
dominates with greater than 80% relative cover. Other chaparral species can be found as a minor
component at the edges of the mapped polygons. Some of the open areas within this habitat type are
covered with dense mats of bushy spikemoss (Selaginella bigelovii), which is unusual in the Santa Cruz
Mountains although more common farther south.
Chamise-Mixed Manzanita Multiple Series Mapping Unit
Small areas of the chamise-mixed manzanita multiple series mapping unit are also found on the upper
slopes of the project site in slightly more mesic settings than the pure stands of chamise. As the name
suggests, various species of manzanita including brittle-leaf Manzanita (Arctostaphylos crustacean ssp.
crustacea) codominate with chamise in this habitat type.
Birch-leafed Mountain Mahogany-Mesic Chaparral Mapping Unit
Two small areas of birch-leafed mountain-mahogany-mesic chaparral mapping unit are mapped on upper
slopes in the northern part of the project site. This habitat type is characterized by birch-leafed mountain
mahogany (Cercocarpus betuloides var. betuloides) interspersed with other chaparral species.
Built-up/Urban Disturbance
Until recently, the Hendrys Creek project site contained numerous unpermitted structures, trailers, and a
former recreational golf green located on numerous level pads that had been cleared and graded. The
location mapped as built-up/urban disturbance occurs near the confluence of Hendrys Creek and Stream 4,
and is the area where the most concentrated prior residential use had occurred. The only improvements that
remain on the project site are bridges, roads, and culverts, but residual disturbed habitat remains in this
area, in particular.
Wildlife
The project site provides many of the physical and biological resources required by wildlife for survival and
reproduction. The site potentially provides habitat for a suite of special-status species and migratory
songbirds in addition to a wide variety of more common species.
Riparian and seasonal or perennial aquatic habitat is present along the streams, comprised of deciduous
forest (alder or maple-dominated) or mixed evergreen forest (bay and oak) similar to that of adjacent upland
slopes. Stream-related habitat provides benefits to several species in the form of shade, cover, nesting
opportunities, and food. Stream habitats also serve as important movement corridors for a variety of wildlife
species. The stream habitats intergrade with the dense bay forests and chamise chaparral of the project
site, providing additional habitat variety.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-22 Hendrys Creek Long-Term Management Plan IS/Proposed MND
Common Species
The project site is known or expected to support a wide array of bird, mammal, amphibian and reptile
species including: Pacific treefrog (Hyla regilla), California newt (Taricha torosa), California slender
salamander (Batrachoseps attenuatus), Pacific giant salamander (Dicamptodon tenebrosus), western fence
lizard (Sceloporus occidentalis), northern alligator lizard (Elgaria coerulea), Santa Cruz garter snake
(Thamnophis atratus), gopher snake (Pituophis catenifer), western rattlesnake (Crotalus viridis), California
quail (Callipepla californica), mourning dove (Zenaida macroura), Anna’s hummingbird (Calypte anna), great
horned owl (Bubo virginianus), red-tailed hawk (Buteo jamaicensis), Northern flicker (Colaptes auratus),
Nuttall’s woodpecker, Bewick’s wren (Thryomanes bewickii), California towhee (Pipilo crissalis), black
phoebe (Sayornis nigricans), dark-eyed junco (Junco hyemalis), Western scrub-jay (Aphelocoma californica),
Steller’s jay (Cyanocitta stelleri), Botta’s pocket gopher (Thomomys bottae), brush rabbit (Sylvilagus
bachmani), raccoon (Procyon lotor), striped skunk (Mephitis mephitis), coyote (Canis latrans), gray fox
(Urocyon cinereoargenteus), bobcat (Lynx rufus), mountain lion, and black-tailed deer (Odocoileus
hemionus).
Native fish assemblages in Hendrys Creek are assumed to be potentially similar to that of Los Gatos Creek,
which hosts riffle sculpin (Cottus gulosus), California roach (Lavinia symmetricus) Sacramento suckers
(Catostomus occidentalis), and rainbow trout (Oncorhynchus mykiss), the landlocked form of steelhead
trout. However, the two instream impoundments as well as the culvert underneath Alma Bridge Road
downstream are most likely a barrier to fish passage onto the Property. Juvenile trout were observed in
Hendrys Creek in August 2004.
Endangered and Threatened Species
California Red-legged Frog
The multiple drainages on the project site may serve as refugia and foraging habitat and movement corridors
for California red-legged frog (CRLF), which, in addition to its federal listing, is also a state species of special
concern. CRLF breeding is likely not present on the site due to the steepness of the streams and the
absence of any off-stream ponds.
No CRLF have been observed on the project site, to date; however, extensive surveys have not been
conducted the species. Five documented occurrences of CRLF are found within 1.5 miles of the site. The two
closest locations are approximately 2,500 feet downstream of the project site where Hendrys Creek joins
Lexington Reservoir.
Rare Species and Species of Special Concern
There are several other sensitive species known or expected to utilize the Property. Some of these species
are discussed in more detail below.
Foothill yellow-legged Frog
The foothill yellow-legged frog (FLYF) is a state species of special concern with the potential occur on the
project site. Potential refugia, foraging habitat, and movement corridors for this species are present. The
existing conditions assessment prepared for MROSD’s Sierra Azul Preserve in 1999 identified FYLF in
several areas within the Preserve. The closest sighting is a historic occurrence just upstream of the subject
property on MROSD land (1968). The Los Gatos Creek mainstem likely provides suitable habitat for FYLF,
and the steeper tributaries of Hendrys Creek may also serve as refugia, foraging habitat, and movement
corridors for the FYLF. Surveys were conducted for FYLF several times in 2013-14 and they were not found
despite historical observations nearby.
San Francisco Dusky-footed Woodrat
The San Francisco dusky-footed woodrat, a state species of special concern, has been observed by MROSD
staff on the project site. Given the riparian nature of the species and the minimal human disturbance in the
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-23
vicinity of the site, woodrats are expected to thrive on the project site and throughout the upper Los Gatos
Creek watershed.
Other Sensitive Species
In addition to the species above, a number of other special-status species could potentially occur on the
project site based on the presence of suitable habitat and/or documented occurrences nearby, and
information collected by MROSD biologist as a component of the LTMP. Table 3.4-1 provides a list of special-
status species and describes their potential to occur on the project site.
Table 3.4-1 Potential for Sensitive Species to Occur on the Project site
Common Name Scientific Name Federal Status1 State
Status1 Other Status1 Potential to Occur on the Project Site2
AMPHIBIANS
California red-legged frog Rana draytonii Threatened SCC L, Drainages provide foraging and refugia,
however, the site lacks suitable breeding habitat
due to due its steepness and the absence of off-
stream ponds, Known to occur within 2,500 ft of
project site.
Foothill yellow-legged frog Rana boylii None SSC M, Drainages provide foraging, refugia, and
movement corridors, however, none have been
identified during recent surveys conducted in
2014-15.
REPTILES
Western pond turtle Emys marmorata None SSC U, Potential movement corridors, but the narrow
canyon does not provide open aquatic habitat. In-
stream impoundments offsite downstream may
be used periodically. Marginal nesting habitat
present in localized areas on south-facing slopes.
BIRDS
Cooper’s hawk Accipiter cooperii None WL L, Dense forested areas provide suitable foraging
and nesting habitat.
Sharp-shinned hawk Accipiter striatus None WL L, Dense forested areas provide suitable foraging
and nesting habitat.
Ferruginous hawk Buteo regalis BCC WL L, May forage in onsite grassland, chamise, and
outcroppings. Site lacks large tracts of open
grassland, sparse shrub or desert habitat typical
of foraging. Not known to nest in California.
Osprey Pandion haliaetus None WL U, Site lacks open water habitat suitable for
foraging, and snag trees adjacent to open water
for nesting.
Vaux’s swift Chaetura vauxi None SSC L, Lacks typical lake and pond foraging habitat,
but may forage over forested, grassland, and
chamise habitats in the site. Forested areas and
bridges provide suitable structure for cup nests.
Allen’s hummingbird Selasphorus sasin BCC None L, Scrub, chaparral, and forests areas suitable
nesting and foraging habitat
Nuttall’s woodpecker Picioides nuttallii BCC None O. Oak woodlands provide suitable nesting and
foraging habitat.
Olive sided flycatcher Contopus cooperi BCC SSC L, Forested areas provide suitable nesting and
foraging habitat.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-24 Hendrys Creek Long-Term Management Plan IS/Proposed MND
Table 3.4-1 Potential for Sensitive Species to Occur on the Project site
Common Name Scientific Name Federal Status1 State
Status1 Other Status1 Potential to Occur on the Project Site2
Yellow warbler Dendroica petechia
brewsteri
BCC SSC U, Site lacks typical willow and cottonwood
riparian nesting sites.
Purple martin Progne subis None SSC U, Site lacks concentration of nesting cavities
with low canopy cover and relatively open air
space, or suitable large bridges.
Oak titmouse Baeolophus inornatus BCC None L, Forested and riparian areas provide suitable
foraging and nesting habitat.
MAMMALS
Townsend’s big-eared
bat
Corynorhinus townsendii None Candidate
Threatened
U. Typically roost in caves or cave analogues -
tunnels, mineshafts, buildings, and older bridges.
No such structures exist within the proposed
disturbance area.
Western red bat Lasirurs blossevillii None SSC L, Suitable roosting trees in forested areas and
foraging habitat over grasslands and chamise.
Pallid bat Antrozous pallidus None SSC L, Suitable roosting sites in trees and under small
bridges, may forage in grasslands, shrublands,
and forested areas.
San Francisco dusky-
footed woodrat
Neotoma fuscipes
annectens
None SSC O, Known to nest in riparian areas within the site.
PLANTS
Mt. Hamilton fountain
thistle
Cirsium fontinale var.
campylon
None None CRPR 1B.2 U, Site lacks suitable serpentine seeps or
streams.
Brewer’s clarkia Clarkia breweri None None CRPR 4.2 U, Site lacks suitable serpentine soils.
Santa Clara Red ribbons Clarkia concinna ssp.
automixa
None None CRPR 4.3 M, Chamise and woodlands may provide suitable
habitat, but the species has not been observed
during preliminary surveys.
Serpentine phlox-leaf
bedstraw
Galium andrewsii ssp. None None CRPR 4.2 U, Site lacks suitable serpentine soils.
Loma Prieta hoita Hoita strobilina None None CRPR: List 1B.1 U, Site lacks suitable serpentine soils.
Serpentine leptosiphon Leptosiphon ambiguous None None CRPR 4.2 U, Site lacks suitable serpentine soils.
Large-flowered
leptosiphon
Leptosiphon grandiflorus None None CRPR 4.2 U, Site lacks typical sandy habitat. Species was
not observed during preliminary surveys of the
area.
Serpentine phlox-leaf
bedstraw
Leptosiphon grandiflorus None None CRPR 4.2 U, Site lacks suitable serpentine soils.
Woolly-headed lessingia Lessingia hololeuca None None CRPR 3 U, Site lacks suitable serpentine soils.
Smooth lessingia Lessingia micradenia var.
glabrata
None None CRPR 1B.2 U, Site lacks suitable serpentine soils.
Spring lessingia Lessingia tenuis None None CRPR 4.2 M, May occur in opening in chaparral and
woodland habitats.
Robust monardella Monardella villosa spp.
globosa
None None None U, Typically occurs in forested, chaparral, or
grassland habitats with rocky soils sedimentary in
origin.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-25
Table 3.4-1 Potential for Sensitive Species to Occur on the Project site
Common Name Scientific Name Federal Status1 State
Status1 Other Status1 Potential to Occur on the Project Site2
Woodland woolythreads Monolopia gracilens None None CRPR: List 1B.2 U, Site lacks suitable serpentine soils.
Metcalf Canyon
jewelflower
Streptanthus
glandulosus ssp. albidus
Endangered None CRPR 1B.1 U, Site lacks suitable serpentine soils.
Notes:
1 Status codes: BCC = Fish and Wildlife Service: Birds of Conservation Concern; SSC = California Species of Special Concern; WL= Watch List; CRPR = California Rare Plant
Ranks –Plants rare, threatened, or endangered in California (formerly CNPS Lists)
2 O=observed on site, L=Likely to occur, M=May occur, U=unlikely to occur
Biological Connectivity
The project site is linked on all sides to existing open space, park and watershed lands, promoting biological
connectivity. The adjoining Sierra Azul Open Space Preserve contains a wide variety of habitats supporting
many wildlife species and contains considerable biodiversity.
3.4.2 Discussion
a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a
candidate, sensitive, or special-status species in local or regional plans, policies, or regulations, or by the California
Department of Fish and Wildlife or the U.S. Fish and Wildlife Service?
Less than Significant with Mitigation Incorporated. Two special‐status wildlife species: San Francisco dusky‐
footed woodrat and Nuttall’s woodpecker have been documented within the project site, and ten others are
likely to or may occur, including California red-legged frog, Foothill yellow-legged frog, Coopers Hawk, Sharp-
shinned hawk, Vaux’s swift, Allen’s hummingbird, Olive sided flycatcher, oak titmouse, pallid bat, and
western red bat. Trees, shrubs, and herbaceous vegetation within the project site may also provide nesting
habitat for bird species protected under the Migratory Bird Treaty Act and California Fish and Game Code.
In addition, 29 special‐status plants have been documented in the project vicinity, many of which occur on
serpentine soils which are not within the project area. Three of the special status plant species, Santa Clara
red ribbons, Spring lessingia, and robust monardella have been identified within three miles of the project
site and may occur, but have not been observed during preliminary surveys of the property.
Special-Status Amphibians and Reptiles
Although no special-status amphibians or reptiles have been documented within the project site, California
red-legged frog and Foothill yellow-legged frog have potential to occur. California red-legged frog is federally
listed as threatened and considered a species of special concern by California Department of Fish and
Wildlife (CDFW). For successful reproduction, this species requires deep pools in slow-moving streams or
ponds with riparian and/or emergent marsh vegetation. The project site does not support breeding habitat
for California red-legged frog; however, low numbers may stray into the site during certain times of the year
for foraging, sheltering, and dispersal along Hendry’s Creek (MROSD 2012a). (Note that the CNDDB search
identified occurrence of western pond turtle, a CDFW species of special concern, within three miles of the
project site; however, the potential for occurrence on the project site is considered low because the creek’s
narrow canyon within the site does not provide open aquatic habitat.)
Potential refugia, foraging habitat, and movement corridors for Foothill yellow-legged frog are present on the
project site, and individuals have historically been observed adjacent to the project site. Although this
species was not identified in the most recent surveys, it is possible that this species could be present on the
project site.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-26 Hendrys Creek Long-Term Management Plan IS/Proposed MND
Implementation of the LTMP is intended to improve the quality of stream habitat and therefore may also
improve conditions for California red-legged frog by removing creek crossings that are causing erosion and
restoring Hendrys Creek and its tributaries to a more natural state. However, California red-legged frog could
be affected during removal and replacement of the creek crossings or other in-stream work occurring within
the project site, potentially resulting in direct mortality during construction.
In the short-term, BMPs, described in Chapter 2, “Project Description,” would be implemented, including
reducing erosion from construction, not storing equipment in environmentally sensitive areas, and using silt
fencing and wattles around stockpiles. Long-term measures (also described in Section 2) to reduce impacts
to sensitive species would include monitoring, adaptive management in areas where habitat degradation is
occurring, and management of invasive species. Although these measures would reduce short-term and
long-term impacts on special-status amphibians and reptiles, and the proposed project is expected to
improve habitat in the long term, the potential still exists for short-term impacts to occur during construction.
Because individual California red-legged frog CRLF may accidentally be injured by construction equipment or
smothered during sediment removal, this impact is considered potentially significant.
Mitigation Measure 3.4-1
MROSD shall implement the following measures to avoid and minimize impacts to California red-legged frog
and Foothill yellow-legged frog.
Worker Education Seminar. Prior to conducting any action that may negatively affect listed species, all
staff, contractors and persons associated with the project shall attended a worker-education seminar
delivered by a qualified MROSD biologist or other qualified biologist. The seminar shall include written
information regarding California red-legged frog and Foothill yellow-legged frog identification, natural
history and habitat, legal status, and provisions and penalties under the Endangered Species Act, as
applicable. Names and phone numbers of the biological monitors and USFWS and CDFW contacts should
be included in the written information. MROSD shall maintain a signature sheet to document compliance,
which will be made available upon request.
Biological Construction Monitoring. A qualified biologist shall conduct a pre-activity survey for California red-
legged frog and Foothill yellow-legged frog prior to implementing actions that include ground disturbance,
vegetation removal, or other activities associated with culvert or crossing removal that could otherwise
harm California red-legged frog or Foothill yellow-legged frog. A qualified biologist shall inspect the work
area while vegetation and debris is removed during the initial phase of construction. If no California red-
legged frogs or Foothill yellow-legged frogs are observed during either the pre-activity survey or during
removal of vegetation and debris, then work may proceed without a qualified biologist present. If California
red-legged frogs or Foothill yellow-legged frog are observed at any time before or during construction within
the work area by anyone involved in the project, work shall cease and USFWS and/or CDFW shall be
contacted for guidance.
Special-Status Mammals
Potential roosting habitat for pallid bat and western red bat occurs in mature trees and snags on the project
site, and possibly (though unlikely) under the small bridges spanning Hendrys Creek or in the man-made bat
houses. Pallid bat and western red bat are considered species of special concern by CDFW. In addition,
seven San Francisco dusky-footed woodrat houses have been observed within the project site primarily in
mixed evergreen forest and coastal scrub habitats, and more are expected to occur in the surrounding area
(MROSD 2012a). Dusky-footed woodrat is also considered a species of special concern by CDFW. Roost
destruction, or work in close proximity to roost sites, could result in adverse impacts to special-status bat
species, and ground disturbance associated with project construction could adversely impact woodrat
houses. Therefore, this impact is considered potentially significant.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-27
Mitigation Measure 3.4-2
MROSD shall implement the following measures to avoid and minimize impacts special-status mammals.
Special-Status Bats. Within 30-days prior to initiating ground disturbance or vegetation removal, a qualified
bat biologist shall inspect the area of disturbance and areas adjacent (within 50 feet) for bat roosts (most
likely mature trees and snags and possibly (although unlikely) under the small bridges spanning Hendrys
Creek. Surveys will consist of a daytime pedestrian survey looking for evidence of bat use (e.g., guano)
and/or an evening emergence survey to note the presence or absence of bats. The type of survey will
depend on the condition of the habitat. If no bat roosts are found (excluding the bat houses), then no
further study is required. If evidence of bat use is observed, the number and species of bats using the roost
will be determined. Bat detectors may be used to supplement survey efforts, but are not required. If roosts
of pallid or western red, bats are determined to be present within the survey area, direct disturbance to the
roost, such as tree removal or bridge replacement that are occupied by bats, shall be avoided during the
breeding season (April 1 through August 31). The bat roosts will not be disturbed.
San Francisco Dusky-Footed Woodrat. Within 30 days prior to project construction, a qualified biologist
shall inspect the disturbance area and adjacent areas within 50 feet for woodrat houses. If none are
found, then no additional measures are necessary. If a woodrat house is identified within 50 feet of the
work area, an exclusion zone shall be erected around the existing woodrat houses using flagging or a
temporary fence that does not inhibit the natural movements of wildlife (such as steel T-posts and a single
strand of yellow rope or similar materials). The work area shall be relocated as necessary to avoid
impacting woodrat houses, even if avoidance is by only a few feet. If woodrat houses cannot be avoided by
the trail, CDFW shall be contacted for approval to relocate individuals by live-trapping and building a nearby
artificial house as a release site. Approval to relocate shall be acquired from CDFW.
Nesting Birds
Nesting habitat is present for Coopers Hawk, Sharp-shinned hawk, Vaux’s swift, Allen’s hummingbird, Olive
sided flycatcher, and oak titmouse as well as other native birds in trees, shrubs, and herbaceous vegetation
on the project site and surrounding area. Vegetation removal, as well as noise and other disturbance during
construction, could adversely impact nesting bird species, if present, potentially resulting in nest destruction
or abandonment. This impact is considered potentially significant.
Mitigation Measure 3.4-3
MROSD shall limit vegetation removal to the minimum necessary to conduct the project. For all construction
activities that could result in potential noise and other land disturbances that could affect nesting birds (e.g.,
tree removal, mowing, mastication, brush removal), the construction area shall be surveyed to evaluate the
potential for nesting birds. Tree removal will be limited, whenever feasible, based on the presence or absence
of nesting birds. For all other construction activities, if birds exhibiting nesting behavior are found within the
treatment sites during the bird nesting season (March 15 – August 30 for smaller bird species such as
passerines and February 15 - August 30 for raptors) impacts on nesting birds will be avoided by the
establishment of appropriate buffers around active nests. The distance of the protective buffers surrounding
each active nest site are: 500 feet for large raptors such as buteos, 250 feet for small raptors such as
accipiters, and 250 feet for passerines. The size of the buffer may be adjusted by an MROSD biologist in
consultation with CDFW and USFWS depending on site specific conditions. Monitoring of the nest by an
MROSD biologist during and after construction activities will be required if the activity has potential to
adversely affect the nest. Construction may resume in these areas after an MROSD biologist or designated
biological monitor confirms that the young have fully fledged, are no longer being fed by the parents, and have
left the nest site. For construction activities that clearly would not have adverse impacts to nesting birds (e.g.
non-powered hand tool work), no survey for nesting birds would be required.
Special Status Plants
Actions planned under the proposed project, such as roadway erosion and damage repair, and removal and
replacement of creek crossings, could result in smothering, compaction of soils, or crushing of root systems
of special-status plants. Portions of the project site support suitable habitat for Santa Clara red ribbons,
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-28 Hendrys Creek Long-Term Management Plan IS/Proposed MND
Loma Prieta hoita, woodland woollythreads, Santa Cruz Mountains beardtongue, and white-flowered rein
orchid. If these species occur in the vicinity of the project site, individuals could be adversely impacted
during project implementation, including mortality of individuals by crushing or habitat destruction.
Therefore, the impact is considered potentially significant.
Mitigation Measure 3.4-4
MROSD shall implement the following measures to avoid and minimize impacts to special-status plants.
MROSD shall utilize qualified staff or a contractor to conduct protocol-level preconstruction special-status
plant surveys for all potentially occurring species within the project footprint that has not previously been
surveyed. Prior to ground-disturbance or vegetation management in potentially suitable habitat, surveys
shall be conducted during the appropriate blooming period when they are most readily identifiable in
accordance with Protocols for Surveying and Evaluating Impacts to Special Status Native Plant Populations
and Natural Communities (DFG 2009). If no special-status plants are found during focused surveys, the
findings shall be documented in a letter report, and no further mitigation shall be required.
If special-status plant populations are present in the project footprint, MROSD shall determine if the
population can be avoided by adjusting the project design.
If the impact to special-status plants cannot be avoided, MROSD shall consult with CDFW or USFWS, as
appropriate depending on species’ status, to determine the appropriate measures to ensure no net loss of
occupied habitat or individuals. These measures may include preserving and enhancing existing
populations, creation of off-site populations on project mitigation sites through seed collection or
transplantation, and/or restoring or creating suitable habitat in sufficient quantities to achieve the no-net-
loss standard.
Level of Impact after Implementation of Mitigation Measures
Implementation of Mitigation Measures 3.4-1 through 3.4-4 would reduce impacts to special-status wildlife
and plant species by implementing measures that would minimize effects on California red-legged frog,
Foothill yellow-legged frog, and nesting birds. San Francisco dusky-footed woodrat houses and the roosts of
special status bat species would be avoided. Surveys would be conducted for special-status plants and
avoidance and/or compensatory measures would be implemented to minimize potential take of these
species or adversely affecting their habitat. This impact would be reduced to a less-than-significant level.
b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or
regional plans, policies, or regulations or by the California Department of Fish and Wildlife or the U.S. Fish and
Wildlife Service?
Less than Significant. Sensitive natural communities are of limited distribution statewide or within a county or
region that provide important habitat value to native species. Most types of wetlands and riparian communities
are considered sensitive natural communities due to their limited distribution in California. In addition, sensitive
natural communities include habitats that are subject to USACE jurisdiction under Section 404 of the Clean
Water Act (CWA), Section 1602 of the California Fish and Game Code, and the state’s Porter-Cologne Water
Quality Control Act. Sensitive natural communities are of special concern because they have high potential to
support special-status plant and animal species. Sensitive natural communities can also provide other important
ecological functions, such as enhancing flood and erosion control and maintaining water quality.
Sensitive natural communities within the project site include riparian woodland and wetlands. Project
improvements, ongoing maintenance, and occasional recreational uses within the project site could adversely
affect these sensitive natural communities through vegetation removal, soil compaction, and introduction of
invasive weeds. However, very few trees would be removed as part of the project, and because the project is a
restoration project that would reduce erosion, restore native topography, and increase the ecological functions
and values of the project site, potential impacts to sensitive habitat would be minimized. In addition, the LTMP
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-29
includes elements and tasks to avoid/reduce long-term impacts on sensitive natural communities including
monitoring, adaptive management in areas where habitat degradation is occurring, and management of
invasive species. Implementation of these measures would ensure that potential impacts of the proposed
project on sensitive natural communities would be less than significant.
c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act
(including, but not limited to, marsh, vernal pool, coastal, etc.) through direct removal, filling, hydrological
interruption, or other means?
Less than Significant with Mitigation Incorporated. Hendrys Creek and associated tributaries on the project site
are tributaries to Lexington Reservoir in the Los Gatos Creek watershed (U.S. Geological Survey 1953 cited in
MROSD 2012a). Based on the reconnaissance field visits of the project site conducted by Coast Range
Biological, LLC, Hendrys Creek has a bed, bank, and ordinary high water mark and would be considered a
potential jurisdictional “other waters” by USACE. “Other waters” are seasonal or perennial water bodies, such
as lakes, stream channels (including intermittent or ephemeral streams), drainages, ponds, and other surface
water features that exhibit an ordinary high water mark but lack positive indicators of one or more of the three
wetland parameters (hydrophytic vegetation, wetland hydrology, hydric soils) (Federal Register 1986 cited in
MROSD 2012a). Tributaries to Hendrys Creek and seeps located on-site would also be considered waters of
the U.S. Construction activities would result in temporary impacts to Hendrys Creek and its tributaries related
to removal of creek crossings and sediment. Any activities occurring within jurisdictional waters would be
considered a significant impact to waters of the United States.
The LTMP includes numerous actions to protect or improve watershed resources and aquatic habitat in the
long term, such as removing road crossings and restoring the creek banks, monitoring erosion, and removal
of invasive species. In addition, the project is proposed as mitigation in perpetuity for wetland impacts
associated with the SCVWD 2002 Multi-Year SMP. Therefore, the proposed project would not have any long-
term impacts to wetlands or waters of the U.S.
Although the project would not result in any long-term impacts to waters of the U.S., the temporary
construction-related impacts to waters located on-site would be considered potentially significant.
Mitigation Measure 3.4-5
MROSD operates under a special agreement known as “Waste Discharge Requirements and Section 401
Water Quality Certifications for Routine Maintenance Activities (Order No. R2-2010-0083)” with the California
Regional Water Quality Control Board. In addition, MROSD holds a similarly-structured agreement known as the
Final Lake or Streambed Alteration Agreement (Notification No. 1600-2012-0444-R3) District-wide Routine
Maintenance Agreement with the California Department of Fish and Wildlife. A portion of the work proposed
under this project will apply under these two permitting authorities and agreements; the remainder of the
project work will comply with the following measures to compensate for the temporary loss of wetlands and
other waters of the United States:
MROSD will submit a wetland delineation report to USACE and request a preliminary jurisdictional
determination. Based on the jurisdictional determination, MROSD will determine the exact acreage of
waters of the U.S. and waters of the state that would be filled as a result of project implementation.
MROSD will replace on a “no net loss” basis (minimum 1:1 ratio) (in accordance with USACE and/or
RWQCB) the acreage and function of all wetlands and other waters that would be removed, lost, or
degraded as a result of project implementation. Wetland habitat will be restored on-site as determined
during the Section 401 and Section 404 permitting processes.
MROSD will coordinate with the USACE to obtain either a Nationwide Permit or a USACE Section 404
Permit and RWQCB Section 401 certification before any groundbreaking activity within 50 feet of any
wetland or water of the United States. MROSD will implement all permit conditions.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-30 Hendrys Creek Long-Term Management Plan IS/Proposed MND
Level of Impact after Implementation of Mitigation Measures
Implementation of Mitigation Measure 3.4-5 would reduce impacts to wetlands and waters of the U.S. by
restoring any disturbed areas within the waterways on-site. This impact would be reduced to a less-than-
significant level.
d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with
established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites?
Less than Significant. Wildlife corridors are features that provide connections between two or more areas of
habitat that would otherwise be isolated and unusable. Often drainages, creeks, or riparian areas are used
by wildlife as movement corridors as these features can provide cover and access across a landscape.
The project site and surrounding Preserve provide corridors for movement of large wildlife such as deer,
mountain lions, and raptors. The project site is linked on all sides to existing open space, park, and
watershed lands promoting biological connectivity. The adjoining Preserve contains a wide variety of habitats
supporting many wildlife species and contains considerable biodiversity.
The proposed project includes removal of stream crossings and restoration of these areas along Hendrys
Creek. Implementation of the proposed project would improve habitat within the project site, and very
limited, docent-led public access would be allowed within the property. No actions proposed under the LTMP
would fragment interior habitat or impede the movement of wildlife or fish throughout the property. Also, no
new lighting is proposed that could inhibit the nocturnal movement of species. Therefore, implementation of
the proposed project would result in a less-than-significant impact to wildlife corridors.
e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or
ordinance?
Less than Significant. The Santa Clara County General Plan includes policies and goals related to protecting
biological resources. In addition, the Santa Clara County Tree Preservation and Removal Ordinance (County
Code, Sections C16.1 to C16.17) serves to protect all trees measuring 12 inches diameter at breast height.
The LTMP would allow removal or trimming of live trees, dead trees, brush, and/or woody debris where
required by fire protection agencies, or for treatment of disease, public safety, patrol vehicle access,
recreational access; however, the proposed project would be designed to avoid tree removal to the extent
possible; as a result, very few trees would be removed. In addition, the measure included in the LTMP and
mitigation measures included in this document would minimize potential adverse effects on sensitive
habitats to less-than-significant levels. Should such a need arise for a tree to be removed, MROSD would
follow Santa Clara County requirements and remain in compliance with local ordinances. Therefore, this
impact is considered less than significant.
f) Conflict with the provisions of an adopted Habitat Conservation Plan, Natural Community Conservation Plan, or other
approved local, regional, or state habitat conservation plan?
No Impact. The property is not located within the Santa Clara Valley Habitat Plan (which is a Habitat
Conservation Plan and Natural Community Conservation Plan) study area and is not subject to an adopted or
proposed Habitat Conservation Plan, Natural Community Conservation Plan or other habitat conservation
plan. Therefore, no impact would occur.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-31
3.5 CULTURAL RESOURCES
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
V. Cultural Resources. Would the project:
a) Cause a substantial adverse change in the
significance of a historical resource as defined in
Section 15064.5?
b) Cause a substantial adverse change in the
significance of an archaeological resource
pursuant to Section 15064.5?
c) Directly or indirectly destroy a unique
paleontological resource or site or unique geologic
feature?
d) Disturb any human remains, including those
interred outside of formal cemeteries?
3.5.1 Environmental Setting
The primary source referenced for this section is the Archaeological Survey Report for Hendrys Creek
Property, Sierra Azul Open Space Preserve, Santa Clara County, California prepared by Mark Hylkema MA,
RPA (See Appendix C).
Localized environmental conditions within the vicinity of the study area influenced patterns of prehistoric
and historic land use, which span the millennia during which the ancestral Ohlone Indians developed, and
then on through the early years of Spanish colonization, subsequent Mexican rule, and finally up to
contemporary American occupation and the eventual establishment of Lexington Reservoir. A description of
this timeline, including brief depictions of the Ohlone lifeways, is provided in the Archaeological Survey
Report (ASR) included as Appendix C; the following discussion focuses on the results of the literature search
and field visit conducted by Mark Hylkema.
A review of archaeological records was conducted through the Northwest Regional Information Center at
Sonoma State University to determine if previously recorded archaeological sites were known to exist within,
or adjacent to the project Study Area. The Information Center serves as the regional archive for the State
Office of Historic Preservation (OHP) where archaeological records are kept and curated. The record search
did not find any previously recorded archaeological sites within a half mile of the study area, although the
nearby township of Alma (typically submerged below the waters of Lexington Reservoir) had been surveyed
and recorded in 2010 by Cabrillo College when the reservoir had been emptied for reinforcement of the
dam.
A review of historic maps resulted in the identification of a structure and road within the study area,
established sometime before 1916. The road is likely the same one used today.
A field reconnaissance of the project site was done on October 27, 2014 by Mark Hylkema (MA RPA
Archaeologist with 34 years professional experience in California Archaeology), and Dan Cearley (MA
Archaeologist with 24 years professional experience).
The project site was mostly too steep to have been likely to exhibit any archaeological resources, and the
survey was largely restricted to the stream corridor and terraces immediately adjacent to the stream within
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-32 Hendrys Creek Long-Term Management Plan IS/Proposed MND
the Area of Direct Impact (ADI) for the proposed stream improvements project. (See Appendix C for an exhibit
showing the ADI.) A series of project pictures were taken and are presented in Appendix A of the ASR,
included as Appendix C of this Initial Study.
Immediately noticeable in the study area were many tiers of graded terraces paralleling the stream corridor.
These terraces represent an elaborate system of leveling that was done over the past fifty or so years to
make suitable locations for a variety of small houses, shacks and sheds. MROSD staff indicated that the
former resident had leased numerous sites for residential use without permits or real concern for the effects
to the natural environment. Many terraces were created and some still exhibit stacked stone retaining walls-
which held soil for gardens and other domestic, non-native plants. Indeed, the landscape abounds with
exotic species like cactus, fruit trees, decorative shrubs, etc. Trash associated with the former residences is
still evident throughout the ADI.
None of the former structure site locations could be considered historic or otherwise construed as features
of an historic landscape. However, one location of a former structure, referred to here as Feature 1 (see
pictures in Appendix A of the ASR—Appendix C of this Initial Study), exhibited fragmented bottles and
ceramics that appeared to date to the early 1920s and later (embossed bottles with seams, transfer ware
ceramics). Also, stone foundations and the use of lime mortar rather than cement at various places suggest
an earlier establishment of Feature 1. Regardless, this feature also evidenced a more contemporary litter of
metal and glass, as well as foundation alignments of a much more recent temporal context indicating a
general lack of integrity.
A variety of structural and historic debris scattered around the larger graded area that once supported the
structure of Feature 1 further confirmed the conclusion that this feature was not worth recording or detailing
further in the present ASR. Moreover, the proposed project does not include removal of the remaining traces
of Feature 1.
The field survey also found the alignment of a narrow grade that perhaps once functioned as a road or path.
Presently, many shrubs and trees grow within its footprint suggesting that it has not been used for many
years; however, the sizes of the laurel and scrub oak trees growing in the grade are not older than about fifty
years. The road traversed southwest from the junction of Hendrys Creek and Tributary 11, trended upward
around the toe of slope, and then after an inclined u-turn it followed a fairly straight course east towards the
higher elevation of the ridge separating Hendrys Creek from Hooker Creek to the south. The alignment is
outside of the project ADI and does not show up in historic maps. Therefore this potential linear feature is
not considered further in the ASR.
3.5.2 Discussion
a) Cause a substantial adverse change in the significance of a historical resource as defined in Section 15064.5?
Less than Significant. Historical resources include standing buildings (e.g., houses, barns, outbuildings,
cabins) and intact structures (e.g., dams, bridges). A significant historical resource is defined as “a resource
listed or eligible for listing on the California Register of Historical Resources (CRHR)” (Public Resources Code
[PRC] Section 5024.1). A historical resource may be eligible for listing on the CRHR if it:
1. is associated with events that have made a significant contribution to the broad patterns of California’s
history and cultural heritage; or
2. is associated with the lives of persons important in our past; or
3. embodies the distinctive characteristics of a type, period, region, or method of construction, or
represents the work of an important creative individual, or possess high artistic values; or
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-33
4. has yielded, or may be likely to yield, information important in prehistory or history.
Eligibility for listing on the CRHR rests on twin factors of significance and integrity. A property must have both
significance and integrity to be considered eligible. Loss of integrity, if sufficiently great, will overwhelm
historical significance a property may possess and render it ineligible. Likewise, a property can have
complete integrity, but if it lacks significance, it must also be considered ineligible.
There are no standing buildings (houses, barns, outbuildings, or cabins) located on the project site, but there
are culverts and creek crossings. Research into the project site did not reveal significant associations with
the orchards or ranching development in San Mateo County, any important persons associated with local
history, nor any specific history related to the crossings. In addition, the crossings do not embody any
distinctive characteristics, as shown by hodge-podge of architecture visible at these crossings; the re-use of
older materials (cobbles and wood) contrasts with the mix of modern materials (cement, wood, cinder block,
and cement brick). This also shows the crossings have no remaining integrity as they appear to have been
modified recently, possibly due to being washed out.
Therefore, the creek crossings do not appear to be eligible for listing in the CRHR and are not considered to
be historically significant for the purposes of CEQA. This impact would be less than significant.
b, c) Cause a substantial adverse change in the significance of an archaeological or paleontological resource pursuant to
Section 15064.5?
Less than Significant with Mitigation Incorporated. As described above under the environmental setting,
neither the literature review nor field survey resulted in the identification of significant cultural resources
within the study area. Remnants of structural remains, (cement and stone house foundation alignments,
gardens, graded surfaces, etc.), lack any historic integrity and do not meet the criteria of significance. The
landscape has been severely altered within the past forty years and no longer resembles its original natural
or historical setting. The ASR prepared for this project identified negative findings.
Although no archaeological resources were identified in the ASR, the potential exists that unidentified
archaeological resources could be discovered during construction. This is considered unlikely due to the
level of disturbance of the project site, but damage to an unknown archaeological resources would be a
potentially significant impact.
Mitigation Measure 3.5-1
In the event that any prehistoric or historic-era subsurface archaeological features or deposits are discovered
during construction, all ground-disturbing activity within 100 feet of the find shall be halted and a qualified
professional archaeologist shall be retained to assess the significance of the find. If the find is determined to
be significant by the qualified archaeologist (i.e., because it is determined to constitute either an historical
resource or a unique archaeological resource), the archaeologist shall develop appropriate procedures to
protect the integrity of the resource and ensure that no additional resources are affected. Procedures could
include but would not necessarily be limited to preservation in place, archival research, subsurface testing, or
contiguous block unit excavation and data recovery. If the archaeologist determines that some or all of the
affected property qualifies as a Native American Cultural Place, including a Native American sanctified cemetery,
place of worship, religious or ceremonial site, or sacred shrine (Public Resources Code Section 5097.9) or a
Native American historic, cultural, or sacred site, that is listed or may be eligible for listing in the California
Register of Historical Resources pursuant to Public Resources Code Section 5024.1, the archaeologist shall
recommend, and MROSD shall implement, potentially feasible procedures that would preserve the integrity of the
site or minimize impacts on it.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-34 Hendrys Creek Long-Term Management Plan IS/Proposed MND
Significance after Mitigation
Implementation of this Mitigation Measure would require the performance of professionally accepted and
legally compliant procedures for the discovery of archaeological and paleontological resources and would,
therefore, reduce this impact to a less-than-significant level.
d) Disturb any human remains, including those interred outside of formal cemeteries?
Less than Significant with Mitigation Incorporated. Based on the documentary research described above, no
evidence suggests that any prehistoric or historic-era marked or un-marked human interments are present
within or in the immediate vicinity of the project site. However, there is a possibility that unmarked,
previously unknown Native American or other graves could be present and could be uncovered during
construction activities. California law recognizes the need to protect historic-era and Native American human
burials, skeletal remains, and grave-associated items from vandalism and inadvertent destruction and any
substantial change to or destruction of these resources would be a potentially significant impact.
Mitigation Measure 3.5-2
In accordance with the California Health and Safety Code, if human remains are uncovered during ground-
disturbing activities, the foreman shall immediately halt potentially damaging excavation in the area of the
burial and notify the County Coroner and a professional archaeologist to determine the nature of the remains.
The coroner is required to examine all discoveries of human remains within 48 hours of receiving notice of a
discovery on private or state lands (Health and Safety Code Section 7050.5[b]). If the coroner determines that
the remains are those of a Native American, he or she must contact the Native American Heritage Commission
by phone within 24 hours of making that determination (Health and Safety Code Section 7050[c]). Following
the coroner’s findings, the archaeologist, and the NAHC-designated Most Likely Descendent shall determine
the ultimate treatment and disposition of the remains and take appropriate steps to ensure that additional
human interments are not disturbed. The responsibilities for acting upon notification of a discovery of Native
American human remains are identified in California Public Resources Code Section 5097.94.
Significance after Mitigation
Implementation of this Mitigation Measure would require the performance of professionally accepted and
legally compliant procedures for the discovery of human remains and would, therefore, reduce this impact to
a less-than-significant level.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-35
3.6 GEOLOGY AND SOILS
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
VI. Geology and Soils. Would the project:
a) Expose people or structures to potential
substantial adverse effects, including the risk of
loss, injury, or death involving:
i) Rupture of a known earthquake fault, as
delineated on the most recent Alquist-Priolo
Earthquake Fault Zoning Map issued by the
State Geologist for the area or based on other
substantial evidence of a known fault? (Refer
to California Geological Survey Special
Publication 42.)
ii) Strong seismic ground shaking?
iii) Seismic-related ground failure, including
liquefaction?
iv) Landslides?
b) Result in substantial soil erosion or the loss of
topsoil?
c) Be located on a geologic unit or soil that is
unstable, or that would become unstable as a
result of the project, and potentially result in on- or
off-site landslide, lateral spreading, subsidence,
liquefaction, or collapse?
d) Be located on expansive soil, as defined in Table
18-1-B of the Uniform Building Code (1994, as
updated), creating substantial risks to life or
property?
e) Have soils incapable of adequately supporting the
use of septic tanks or alternative waste water
disposal systems where sewers are not available
for the disposal of waste water?
3.6.1 Environmental Setting
The project site is within the central portion of the Coast Ranges Province of California, which is a series of
coastal mountain chains dominated by a central northwest-southeast ridgeline. The project site lies on the
northeastern flank of the rural Santa Cruz Mountains between Santa Clara Valley and Monterey Bay. The
Santa Cruz Mountain terrain is variable and consists of rounded ridge crests with steep-sided slopes and
deeply incised, V-shaped valleys. Topography within the property is characterized by steep north and south
facing slopes that form Hendrys Creek canyon, with elevations ranging from approximately 800 feet to 2,600
feet (MROSD 2012b).
The project site is located within a seismically active area. The San Andreas Fault Zone is located less than 1
mile southwest of the project site. The San Andreas Fault is capable of generating a Maximum Moment
Magnitude 7.9 earthquake with a recurrence interval of roughly 210 years (Petersen et al. 1996 in MROSD
2012b). Surface rupture along this segment of the fault occurred in both the 1906 San Francisco and 1989
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-36 Hendrys Creek Long-Term Management Plan IS/Proposed MND
Loma Prieta earthquakes (Wiegers and Clahan 2002 in MROSD 2012b). Uplift along the San Andreas and
associated faults are responsible for the high, rugged topography of the project vicinity. The north uppermost
slopes of the watershed are prone to landslides, resulting in thin soils with little capacity to hold water
(MROSD 2012b).
Geology of the area is dominated by rocks from the Cretaceous and Jurassic Age Franciscan Complex
(McLaughlin et al. 2001). The main stem of Hendrys Creek is Pleistocene and Holocene stream and fan
deposits consisting of unconsolidated sand, gravel, and boulders. The valley bottom is formed by a series of
discontinuous fluvial terraces (MROSD 2012b).
Soil types found within and adjacent to the project site include the Mouser-Katykat-Sanikara complex, 50 to
75 percent slopes; Sanikara-Mouser-Rock complex, 50 to 75 percent slopes; and Sanikara-Rock Outcrop
complex, 75 to 100 percent slopes (NRCS 2013). All three soil types are well-drained and typically found on
mountain slopes. The Mouser-Katykat-Sanikara is derived from sandstone colluvium over residuum and has
a loam texture in the upper 24 inches. The Sanikara-Mouser-Rock is cobbly-loam textured in the upper 12
inches, and bedrock below 12 inches, and the Sanikara Outcrop soil is gravelly coarse sandy loam and very
gravelly sandy loam textured in the upper 13 inches, with bedrock present below 13 inches (MROSD 2012a).
3.6.2 Discussion
a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death
involving:
i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map
issued by the State Geologist for the area or based on other substantial evidence of a known fault? (Refer to
California Geological Survey Special Publication 42.)
Less than Significant. The project site is located within a seismically active area, and is less than 1 mile from
the San Andreas Fault Zone. However, the proposed project would permanently preserve the project site as
open space, and existing road crossings would be removed or replaced. No additional structures would be
developed as part of the proposed project. Public access to the project site would be limited by MROSD, with
permits granted on a case-by-case basis and periodic staff-led tours. Visitors would be outside and would not
typically be directly exposed to risk from rupture of an earthquake fault. This impact would be less than
significant.
Note that visitors may be subject to indirect events induced by fault rupture, most notably landslides. Risk to
visitors from landslides is discussed below under “iv.”
ii) Strong seismic ground shaking?
Less than Significant. As indicated above under “i,” the proposed project would include the removal or
replacement of road crossings and would not include any habitable structures. Public access to the project
site would be “permit only,” and visitors would be relatively unexposed to hazards associated with seismic
ground shaking. The impact would be less than significant.
iii) Seismic-related ground failure, including liquefaction?
Less than Significant. Although the proposed project is in a seismically active location, liquefaction and other
seismic-related ground failure primarily affect structures. Because there are currently no structures on-site,
and the proposed project would not result in construction of any new structures, impacts related to
liquefaction would be less than significant.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-37
iv) Landslides?
Less than Significant. The Hendrys Creek tributaries drain narrow and steep gradient watersheds, and the
north uppermost slopes of the watershed are prone to landslides. These existing and potential new
landslides are subject to accelerated soil erosion. The project site is located on the low-gradient depositional
reach of Hendrys Creek, and is therefore more likely to be the location where the stream’s natural sediment
and debris load is deposited. Debris fans have formed at the mouths of these drainages from naturally high
sediment loads and infrequent debris flow landslides that extend down the tributary channel.
Landslides are likely to continue on the property in the future regardless of any rehabilitation work or land
management that occurs on the project site. However, the proposed project would include replacement of
existing creek crossings and would not include construction of any new structures on site, and permit-only
access would be allowed within the property. Therefore, because the proposed project would not increase
the exposure of people or structures to landslides, this impact would be less-than-significant.
b) Result in substantial soil erosion or the loss of topsoil?
Less than Significant. The project site is located in the moderately steep to very steep hills of the Santa Cruz
Mountains. The north uppermost slopes of the watershed are prone to landslides, and these existing and
potential new landslides are subject to accelerated soil erosion. Grading associated with construction could
also temporarily increase erosion at localized locations within property. However, implementation of the
proposed project would include removal of stream crossings that are currently causing erosion and
reshaping the crossings so that regular maintenance is no longer needed and future erosion is largely
prevented. During the second phase of the project, concentrated efforts would also be made to control
stream erosion. In addition, there are currently District-wide requirements in place to protect water quality
during maintenance activities. As outlined in MROSD’s Best Management Practices and Standard Operating
Procedures for Routine Maintenance Activities in Water Courses (see Appendix D), which has been reviewed
and approved by the RWQCB and CDFW, MROSD follows specifications and guidelines designed to protect
water quality. Additionally, maintenance work in watercourses will meet standards and be consistent with
the current RWQCB Memorandum of Understanding for routine maintenance activities on MROSD lands.
These standards would be followed, as applicable, based on site conditions and specific project
requirements.
Because MROSD would implement the above-described measures to reduce soil erosion and
implementation of the project would reduce erosion in the long-term, impacts associated with erosion would
be less-than-significant with implementation of the proposed project.
c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and
potentially result in on- or off-site landslide, lateral spreading, subsidence, liquefaction, or collapse?
Less than Significant. Generally, impacts associated with unstable soils relate to potential damage to
structures. The proposed project would remove or replace existing creek crossing and would not develop any
new structures. Therefore, no structures would be affected by unstable soils. Landslide-related hazards
associated with proposed public access are addressed under “a-iv” above. Project-related impacts related to
unstable soils would be less than significant.
d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building Code (1994, as updated), creating
substantial risks to life or property?
Less than Significant. Similar to the discussion under “c” above, substantial risk to life or property would
generally occur to habitable buildings, which could experience compromised structural integrity due to
expansive soils. The proposed project would include removal or replacement of creek crossings and would
not include construction of any new structures. Therefore, similar to “c” above, the impact would be less
than significant.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-38 Hendrys Creek Long-Term Management Plan IS/Proposed MND
e) Have soils incapable of adequately supporting the use of septic tanks or alternative waste water disposal systems
where sewers are not available for the disposal of waste water?
No Impact. All septic tanks have been removed from the project site and the proposed project would not
include any new restrooms and would therefore not require any septic system or other form of waste water
disposal. No impact would result.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-39
3.7 GREENHOUSE GAS EMISSIONS
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
VII. Greenhouse Gas Emissions. Would the project:
a) Generate greenhouse gas emissions, either
directly or indirectly, that may have a significant
impact on the environment?
b) Conflict with an applicable plan, policy or
regulation adopted for the purpose of reducing the
emissions of greenhouse gases?
3.7.1 Environmental Setting
Certain gases in the earth’s atmosphere, classified as greenhouse gases (GHGs), play a critical role in
determining the earth’s surface temperature. GHGs are responsible for “trapping” solar radiation in the
earth’s atmosphere, a phenomenon known as the greenhouse effect. Prominent GHGs contributing to the
greenhouse effect are carbon dioxide (CO2), methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons,
and sulfur hexafluoride.
Human-caused emissions of these GHGs in excess of natural ambient concentrations are responsible for
intensifying the greenhouse effect and have led to a trend of unnatural warming of the earth’s climate,
known as global climate change or global warming. It is extremely unlikely that global climate change of the
past 50 years can be explained without the contribution from human activities (Intergovernmental Panel on
Climate Change [IPCC] 2007). By adoption of AB 32, the California Global Warming Solutions Act of 2006,
and Senate Bill (SB) 97, the State of California has acknowledged that the effects of GHG emissions cause
adverse environmental impacts.
Emissions of GHGs have the potential to adversely affect the environment because such emissions
contribute, on a cumulative basis, to global climate change. Although the emissions of one single project will
not cause global climate change, GHG emissions from multiple projects throughout the world could result in
a cumulative impact with respect to global climate change.
Legislation and executive orders on the subject of climate change in California have established a statewide
context and a process for developing an enforceable statewide cap on GHG emissions. Given the nature of
environmental consequences from GHGs and global climate change, CEQA requires that lead agencies
consider evaluating the cumulative impacts of GHGs, even relatively small (on a global basis) additions.
Small contributions to this cumulative impact (from which significant effects are occurring and are expected
to worsen over time) may be potentially considerable and therefore significant.
Therefore, the global climate change analysis presented in this section estimates and analyzes the GHG
emissions associated with construction- and operations-related activities that would occur under the
proposed LTMP for the Hendrys Creek property.
The BAAQMD is the local agency overseeing air quality considerations in Santa Clara County. On June 2, 2010,
the BAAQMD adopted new CEQA significance thresholds including a threshold for GHGs of 1,100 metric tons of
CO2 equivalent per year (MT CO2e/yr) for evaluating operation-related emissions (BAAQMD 2010). This
threshold was designed to establish the mass emissions level at which a project’s contribution would be
considered a significant environmental impact under CEQA. The threshold was developed based on overall
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-40 Hendrys Creek Long-Term Management Plan IS/Proposed MND
projections of development in the region, and how the region would come into compliance with the goals
established by AB 32.
On March 5, 2012, the Alameda County Superior Court issued a judgment finding that the BAAQMD had
failed to comply with CEQA when it adopted these thresholds. The court did not determine whether the
thresholds were valid on the merits, but rather found that the adoption of the thresholds was a project under
CEQA. The court issued a writ of mandate ordering the BAAQMD to set aside the thresholds and cease their
dissemination until the BAAQMD had complied with CEQA.
CEQA gives lead agencies discretion whether or not to classify a particular environmental impact as
significant. Ultimately, formulation of a standard or “threshold” of significance requires the lead agency to
make a policy judgment about where the line should be drawn distinguishing adverse impacts it considers
significant from those that are not deemed significant. This judgment must, however, be based on scientific
information and other factual data to the extent possible (State CEQA Guidelines Section 15064[b]).
Although the Alameda County Superior Court has ordered the BAAQMD to cease dissemination of the
previously adopted threshold of 1,100 MT CO2e/yr, the court has made no finding on the applicability or the
merits of the quantitative threshold. BAAQMD states that lead agencies will need to determine appropriate
air quality thresholds to use for each project they review based on substantial evidence that they should
include in the administrative record for the project. One resource BAAQMD provides as a reference for
determining appropriate thresholds is the CEQA Thresholds Options and Justification Report developed by
staff in 2009 (BAAQMD 2009). The CEQA Thresholds Options and Justification Report outlines substantial
evidence supporting a variety of thresholds of significance.
Therefore, because the proposed project would result emissions of GHGs from construction and regular
maintenance, and is located within the BAAQMD’s jurisdiction for which these thresholds were determined to
be applicable, MROSD considers the threshold of 1,100 MT CO2e/yr to be an acceptable threshold for CEQA
significance with regards to GHG emissions.
3.7.2 Discussion
a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the
environment?
Less than Significant. Implementation of the proposed project would not result in a noticeable increase in
visitation. Any additional vehicle trips generated during operation of the project would be negligible.
Therefore, greenhouse gas emissions associated with increased vehicle trips would be minimal. Proposed
construction activities include limited heavy construction equipment associated primarily with the removal of
stream crossings and other creek restoration activities. To estimate GHG emissions, GHG modeling was
conducted using the BAAQMD-approved California Emissions Estimator Model, Version 2001.1.1
(CalEEMod). A summary of estimated GHG emissions is provided below in Table 3.7-1.
Based on the modeling conducted, project-related activities would result in 36 MT per year (MT/year) of
CO2e emissions. These emissions levels would be less than BAAQMD’s threshold of significance of 1,100
MT/year. Thus, project-generated emissions would not result in a cumulatively considerable net increase of
GHGs. As a result, this impact would be less than significant.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-41
Table 3.7-1 Summary of Estimated Emissions of Carbon Dioxide Equivalent Associated with Project-Related
Activities (MT CO2e/year)
Construction-Related Activities (average annual) 36
Operations (mobile- and area sources, energy use) --
Total 36
BAAQMD Threshold of Significance 1,100
Notes: MT/year = metric tons per year; CO2e = carbon dioxide-equivalent
Detailed assumptions and modeling output files are included in Appendix B, including construction and methane emissions from cattle.
Any emissions from vehicle trips and power usage would be negligible and therefore were not modeled.
Emissions associated with construction activities were estimated using the BAAQMD-approved CalEEMod model.
Source: Modeling Conducted by Ascent Environmental 2014.
b) Conflict with an applicable plan, policy or regulation adopted for the purpose of reducing the emissions of
greenhouse gases?
Less than Significant. As discussed under item a) above, the total GHG emissions associated with the
proposed project would be less than BAAQMD’s threshold of 1,100 MT/year. Because BAAQMD’s threshold
is based on the emissions reduction targets established by AB 32 for the year 2020 project-generated GHG
emissions would not conflict with any other applicable plans, policies, or regulations established for the
purposes of reducing GHG emissions. Therefore, this impact would be less than significant.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-42 Hendrys Creek Long-Term Management Plan IS/Proposed MND
3.8 HAZARDS AND HAZARDOUS MATERIALS
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
VIII. Hazards and Hazardous Materials. Would the project:
a) Create a significant hazard to the public or the
environment through the routine transport, use,
or disposal of hazardous materials?
b) Create a significant hazard to the public or the
environment through reasonably foreseeable
upset and/or accident conditions involving the
release of hazardous materials into the
environment?
c) Emit hazardous emissions or handle hazardous
or acutely hazardous materials, substances, or
waste within one-quarter mile of an existing or
proposed school?
d) Be located on a site which is included on a list of
hazardous materials sites compiled pursuant to
Government Code Section 65962.5 and, as a
result, would it create a significant hazard to the
public or the environment?
e) For a project located within an airport land use
plan or, where such a plan has not been adopted,
within two miles of a public airport or public use
airport, would the project result in a safety hazard
for people residing or working in the project
area?
f) For a project within the vicinity of a private
airstrip, would the project result in a safety
hazard for people residing or working in the
project area?
g) Impair implementation of or physically interfere
with an adopted emergency response plan or
emergency evacuation plan?
h) Expose people or structures to a significant risk
of loss, injury, or death involving wildland fires,
including where wildlands are adjacent to
urbanized areas or where residences are
intermixed with wildlands?
3.8.1 Environmental Setting
During the purchase of the property, POST, the previous property owner, contracted with an environmental
firm to prepare a Phase I Environmental Site Assessment (ESA). The Phase I ESA identified the use of
significant quantities of hazardous substances at properties in the project vicinity; however, no use, storage,
disposal, or release of hazardous substances were identified within the project site. The Lupin Naturalist
Club (located outside the project site property) had one 520-gallon underground storage tank that resulted
in soil contamination. A soil and groundwater investigation plan was produced in December 1999 and the
County of Santa Clara granted a Complete-Case Closed on July 2001 for this site. Because this release was
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-43
limited to soils and based on its position relative to the project site, it is unlikely this former site affected the
property (DGC 2011).
Wildfire has had an important role on the natural communities within Hendrys Creek watershed and the
surrounding Los Gatos Creek watershed including a July 1985 wildfire that burned 22 square miles between
Lexington Reservoir and Loma Prieta. This fire also burned much of the upper hillsides along the northern
portion of the project site. This portion of the project site, as well as much of the upper Los Gatos Creek
watershed, is undergoing regeneration and forest succession from this fire and other major past
disturbances. The project site is within the designated Wildfire and Urban Interface Fire Area with a fire
hazard zone classification of very high.
There are no schools within 0.25 mile of the project site and the project site is not within 2 miles of an
airport or private airstrip.
3.8.2 Discussion
a) Create a significant hazard to the public or the environment through the routine transport, use, or disposal of
hazardous materials?
Less than Significant. MROSD Ordinance 93-1, Section 409.2 prohibits the general public from possessing
or using harmful substances on MROSD lands. The proposed project does not include routine use of
hazardous materials on the project site with the exception of small quantities of common household
hazardous materials such as pesticides, fuels, oils, lubricants, solvents, and detergents. A controlled amount
of pesticides would occasionally be applied to control invasive weeds. Pesticide applications would comply
with label instructions and all applicable local, state, and federal regulations. Implementation of the
proposed LTMP would not pose a significant hazard to the public or the environment. This impact is less
than significant.
b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and/or accident
conditions involving the release of hazardous materials into the environment?
Less than Significant. As discussed under “a” above, no hazardous materials were found on-site during the
Phase 1 ESA, and all structures, personal property, and debris were removed prior to POST’s purchase of the
property, with the exception of a network of roads and driveways, two vehicle bridges, several culverted
road/stream crossings, and a pedestrian bridge. Therefore, the proposed project would not involve the
demolition or removal of any structures that contain hazardous materials. Public access within the project
site would be limited to hiking (by permit only), which is a low-intensity, non-motorized, and non-emitting use,
and would primarily be led by MROSD docents. The possibility of the incidental release of motor vehicle oil,
grease, or fuel is therefore limited to the infrequent use of roads by MROSD patrol and maintenance
vehicles, occasional emergency responders, and vehicles and machinery used during the temporary
construction process. Any release of minor amounts of hazardous material resulting from the limited
vehicular use does not pose a significant hazard to the public. This impact would be less than significant.
c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within one-
quarter mile of an existing or proposed school?
No Impact. As discussed under “a” above, the proposed project would not result in the use, transport, or
disposal of substantial hazardous materials. In addition, the project site is not located within one-quarter
mile of an existing or proposed school. The nearest school is Lexington Elementary School, more than 1.5
miles north of the project site boundary. No impact would occur.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-44 Hendrys Creek Long-Term Management Plan IS/Proposed MND
d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code
§65962.5 and, as a result, would it create a significant hazard to the public or the environment?
Less than Significant. The Hazardous Waste and Substances Sites (Cortese) List is a planning document
used by the State, local agencies, and developers to comply with the CEQA requirements in providing
information about the location of hazardous materials release sites. Government Code section 65962.5
requires the California Environmental Protection Agency to develop at least annually an updated Cortese
List. California Department of Toxic Substances Control (DTSC) is responsible for a portion of the information
contained in the Cortese List. Other State and local government agencies are required to provide additional
hazardous material release information for the Cortese List. DTSC’s EnviroStor database provides DTSC’s
component of Cortese List data.
The 2011 Phase I ESA included a review of a regulatory agency database report prepared for the project site,
which indicated that no records of any hazardous materials were identified for the project site. The search of
California Department of Oil, Gas, and Geothermal Resources well records on-line indicates that no oil and
gas wells are located on the project site (DGC 2011). The proposed project site is not identified on the
Cortese list or other State and county hazardous materials lists; therefore, this impact would be less than
significant.
e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a
public airport or public use airport, would the project result in a safety hazard for people residing or working in the
project area?
No Impact. The project site is not located within 2 miles of a public airport and is not located within an
airport land use plan. No impact would occur.
f) For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or
working in the project area?
No Impact. The project site is not located within 2 miles of a private airstrip; therefore, construction and
implementation of the project would not result in a safety hazard to people residing or working in the area.
No impact would occur.
g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation
plan?
No Impact. There are no adopted emergency response plans or emergency evacuation plans affecting the
project site. The proposed project includes very limited, permit-only public access for recreation. No
structures are proposed, and no public vehicle access is proposed. The proposed project would provide
appropriate emergency vehicle access. Therefore, implementation of the proposed project would not
interfere with an adopted emergency response plan or emergency evacuation plan. The proposed project
would therefore result in no impact to emergency response plans or emergency evacuation plans. See
Section 3.16, Public Services for more detailed discussion regarding emergency response.
h) Expose people or structures to a significant risk of loss, injury, or death involving wildland fires, including where
wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands?
Less than Significant with Mitigation Incorporated. The proposed project would decrease risk of wildland fire
due to the vegetation and invasive weed management on the property, which would reduce on-site fuels by
controlling vegetation during the fire season. In addition, no new structures are proposed on-site and public
access to the property would be permit-only and therefore very limited.
While fire protection within current MROSD boundaries is provided by the jurisdictional local fire
departments and CAL FIRE, MROSD works cooperatively with these jurisdictional fire agencies to reduce fire
risk by assisting them to respond quickly and effectively to wildland fires. MROSD maintains fire breaks to
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-45
slow or arrest the spread of wildland fires, and a system of MROSD-maintained fire roads ensures adequate
access to remote areas. MROSD lands are patrolled routinely by trained staff members in vehicles equipped
with wildland fire suppression equipment, providing first response assistance until the jurisdictional fire
agencies arrive and take over the scene.
MROSD Ordinance 93-1 Section 404 prohibits fires and smoking on MROSD lands. In addition, MROSD
Rangers will regularly patrol the project site and are trained and equipped for initial response in the Incident
Command System for fire suppression, assisting with the response of jurisdictional fire agencies to the
scene of a fire. MROSD’s radio and repeater system combined with ranger patrols and staff on call 24 hours
per day enables prompt and effective communication with emergency service providers in the event of a
wildland fire or emergency response call.
Although these measures would be taken to reduce the potential for wildfires on-site, the project site is
within the designated Wildfire and Urban Interface Fire Area with a fire hazard zone classification of very
high. Therefore, this impact would be potentially significant.
Mitigation Measure 3.8-1
To further reduce the potential for wildland fire ignition, the following additional mitigation measure is required:
To reduce fire ignition risk, MROSD currently requires the following measures for all maintenance and
construction activities:
All equipment to be used during construction and maintenance activities must have an approved
spark arrestor.
Grass and fuels around construction sites where construction vehicles are allowed to be parked will
be cut or reduced.
Mechanical construction equipment that can cause an ignition will not be used when the National
Weather Service issues a Red Flag Warning for the San Francisco Bay Area.
Hired contractors shall be required to:
Provide water and/or fire extinguisher to suppress potential fires caused by the work performed.
Remind workers that smoking is prohibited at the work site and on any MROSD land per contract
conditions and MROSD Ordinance.
Maintain working ABC fire extinguishers on all vehicles in the work area.
Level of Impact after Implementation of Mitigation Measures
Implementation of Mitigation Measure 3.8-1 would reduce construction-related wildfire impacts by requiring
fire prevention measures for construction equipment and construction workers to reduce the potential for
ignition and spread of fire. This impact would be reduced to a less-than-significant level.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-46 Hendrys Creek Long-Term Management Plan IS/Proposed MND
3.9 HYDROLOGY AND WATER QUALITY
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
IX. Hydrology and Water Quality. Would the project:
a) Violate any water quality standards or waste
discharge requirements?
b) Substantially deplete groundwater supplies or
interfere substantially with groundwater recharge
such that there would be a net deficit in aquifer
volume or a lowering of the local groundwater
table level (e.g., the production rate of pre-existing
nearby wells would drop to a level that would not
support existing land uses or planned uses for
which permits have been granted)?
c) Substantially alter the existing drainage pattern of
the site or area, including through the alteration of
the course of a stream or river, in a manner which
would result in substantial on- or off-site erosion or
siltation?
d) Substantially alter the existing drainage pattern of
the site or area, including through the alteration of
the course of a stream or river, or substantially
increase the rate or amount of surface runoff in a
manner which would result in on- or off-site
flooding?
e) Create or contribute runoff water which would
exceed the capacity of existing or planned
stormwater drainage systems or provide
substantial additional sources of polluted runoff?
f) Otherwise substantially degrade water quality?
g) Place housing within a 100-year flood hazard area
as mapped on a federal Flood Hazard Boundary or
Flood Insurance Rate Map or other flood hazard
delineation map?
h) Place within a 100-year flood hazard area
structures that would impede or redirect flood
flows?
i) Expose people or structures to a significant risk of
loss, injury, or death involving flooding, including
flooding as a result of the failure of a levee or
dam?
j) Result in inundation by seiche, tsunami, or
mudflow?
3.9.1 Environmental Setting
The project site is within the Los Gatos Creek watershed, which is one of the largest watersheds in Santa
Clara County, draining 55 square miles. Los Gatos Creek starts from the headwaters and small tributaries
northwest of Loma Prieta Peak and then flows northwest collecting flows from various smaller tributaries
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-47
until flowing into Lake Elsman. It then continues to the northwest where it joins Hendrys Creek at the
upstream end of Lexington Reservoir.
Hendrys Creek and its tributaries are the primary hydrologic features within the project site. Hendrys Creek is a
spring-fed perennial creek that flows from the Preserve into Lexington Reservoir and drains an approximately
710-acre watershed. There are approximately nine tributaries to Hendrys Creek within the project site that are
characterized as ephemeral streams ranging from 2 to 5 feet wide. Many of the tributaries are draining steep
slopes and are experiencing erosion and sedimentation. Most of the tributaries have culvert crossings that are
in poor condition or have failed (MROSD 2012b). The project site also contains numerous seeps and springs.
No ponds are present within the project site; however, two small instream ponds are found downstream on the
adjacent private property. These off-site ponds are owned and managed by Lupin Naturalist Lodge and San
Jose Water Company.
The creek hydrology on-site is primarily driven by seasonal surface runoff, and the extensive network of
groundwater seeps and springs. Most of the rainfall in this region occurs from November to April with the
majority occurring between January and March. Average annual rainfall ranges from 60 inches on the peaks
and ridges of the region to 47 inches in the stream and creek valleys. The intense rainfall, thin soils, and
steep topography of this region result in a high volume of runoff within short periods of time that can result
in erosion and water quality degradation. No impervious surfaces exist within or upstream of the project site;
however, existing unpaved roads and road crossings that are in poor condition are contributing to erosion
along the waterways within the project site.
Los Gatos Creek has been classified as an impaired water body due to diazinon from urban/stormwater
runoff by the San Francisco RWQCB’s 303(d) List of Impaired Water Bodies in the San Francisco Bay Region.
No other waterways within the project site are listed as Impaired Water Bodies.
3.9.2 Discussion
a) Violate any water quality standards or waste discharge requirements?
Less than Significant. As discussed in the Environmental Setting above, there are erosion and sedimentation
issues on the project site associated with several creek crossings. The proposed project would remove the
existing failed crossings, excavate residual fill material, and regrade the crossing sites to reduce erosion and
sedimentation, improve storm water drainage patterns, reduce drainage concentration on roads, and reduce
immediate storm flow diversion potential. MROSD would also implement BMPs as part of the LTMP, such as
soil stabilization, minimization of stream bank disturbance, and materials storage area stabilization, to
further reduce short- and long-term erosion and water quality impacts.
In addition to these BMPs, runoff water quality is regulated by the National Pollution Discharge Elimination
System (NPDES) Program (established through the federal CWA). The NPDES program objective is to control
and reduce pollutant discharges to surface water bodies. Compliance with NPDES permits is mandated by
State and federal statutes and regulations. Locally, the NPDES Program is administered by the RWQCB.
According to the water quality control plans of the RWQCB, any construction activities, including grading, that
would result in the disturbance of 1 acre or more would require compliance with the General Permit for
Stormwater Discharges Associated with Construction and Land Disturbance Activity (Construction General
Permit). The project includes a total disturbance area of approximately 11.3 acres and would be subject to
compliance with the Construction General Permit.
Current District-wide requirements protect water quality during maintenance activities. As outlined in
MROSD’s Best Management Practices and Standard Operating Procedures for Routine Maintenance
Activities in Water Courses (Appendix D), which has been reviewed and approved by the RWQCB and CDFW,
MROSD follows specifications and guidelines designed to protect water quality. Additionally, maintenance
work in watercourses will meet standards and be consistent with the current RWQCB Memorandum of
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-48 Hendrys Creek Long-Term Management Plan IS/Proposed MND
Understanding for routine maintenance activities on MROSD lands. These standards would be followed, as
applicable, based on site conditions and specific project requirements.
In addition, no public vehicle access would be allowed, and only limited permit-only public access would be
allowed on-site. Therefore, there would be no additional erosion caused by the public’s use of on-site roads.
Because BMPs would be used to minimize short-term construction-related impacts to water quality and the
proposed project would result in a long-term beneficial effect on water quality, this impact would be less
than significant.
b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there
would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate of
pre existing nearby wells would drop to a level that would not support existing land uses or planned uses for which
permits have been granted)?
Less than Significant. The proposed project does not involve groundwater pumping or interference with
groundwater recharge. There would be no long-term water usage associated with the proposed project, and
impervious surfaces would not be added to the project site. Therefore, groundwater recharge would not be
adversely affected by the proposed project. Impacts associated with groundwater depletion and recharge
would be less than significant.
c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a
stream or river, in a manner which would result in substantial on- or off-site erosion or siltation?
Less than Significant. Overall, the proposed project seeks to maintain and improve the existing drainage
patterns on the project site, and impervious surfaces would not be added to the project site. Therefore, the
rate of runoff would not increase. As described under “a” above, the proposed project includes measures to
remove existing creek crossings, excavate residual fill material, and regrade crossing sites to improve storm
water drainage patterns, reduce drainage concentration on roads, and reduce immediate storm flow
diversion potential. Removal of sediment from Hendrys Creek and its tributaries would occur during the dry
season and would be used as part of the creek and upland restoration. Therefore, the proposed project
would improve drainage on-site, and would not substantially increase the rate or amount of surface runoff
such that on- or off-site erosion or siltation would occur. This impact would be less than significant.
d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a
stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result in on- or
off-site flooding?
Less than Significant. Impervious surfaces would not be added to the project site; therefore, the rate of
runoff would not increase. In addition, the proposed project would maintain and improve the existing on-site
drainage patterns. As described under “a” above, the proposed project includes measures to remove the
existing failed crossings, excavate residual fill material, and regrade crossing sites to improve storm water
drainage patterns, and reduce immediate storm flow diversion potential. The proposed project would
improve the drainage and removal of sediment would improve conveyance of the waterways on-site.
Therefore, the project would not substantially increase the rate or amount of surface runoff such that on- or
off-site flooding would occur. This impact would be less than significant.
e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage
systems or provide substantial additional sources of polluted runoff?
Less than Significant. The proposed project would not adversely affect the drainage patterns or rate of runoff
on the project site because the project seeks to maintain or improve the existing drainage patterns. As
described under “a” above, the proposed project incorporates measures to improve drainage on-site.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-49
Therefore, the proposed project would not substantially increase the rate or amount of surface runoff such
that exceedance of drainage system capacity would occur. This impact would be less than significant.
f) Otherwise substantially degrade water quality?
Less than Significant. Non-point source pollution results from land use practices where waste is not
collected and disposed of in some identifiable manner. Non-point sources of pollution include: urban
drainage, agricultural runoff, road construction activities, mining, grassland management, logging and other
harvest activities, and natural sources such as fires, floods, and landslides.
As mentioned above under Environmental Setting, the project site is located within the Los Gatos Creek
watershed, and Los Gatos Creek has been classified as an impaired water body due to diazinon from
urban/stormwater runoff. Although the proposed restoration, removal of creek crossings, and limited,
permit-only public access would not adversely affect long-term water quality within the watershed,
construction of the proposed project has the potential to result in temporary degradation of water quality.
However, as discussed under “a” above, MROSD would also implement BMPs as part of the LTMP to further
reduce short- and long-term erosion and water quality impacts. The proposed project would also be required
to obtain a NPDES permit to reduce pollutants associated with construction of the project.
Implementation of these project measures and BMPs would minimize the potential for water quality on the
project site to be degraded. The impact would be less than significant.
g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood
Insurance Rate Map or other flood hazard delineation map?
No Impact. The proposed project does not include any new housing or other structures. Furthermore, the
lowest portion of the project site is 720 feet above sea level, and is not located within or near a flood zone.
Therefore, there would be no impact related to flood hazards and housing.
h) Place within a 100-year flood hazard area structures that would impede or redirect flood flows?
No Impact. As indicated under “g” above, the proposed project does not include any structures and the
project site is not located within the 100-year flood zone. Therefore there would be no impact associated
with impeding or redirecting flood flows.
i) Expose people or structures to a significant risk of loss, injury, or death involving flooding, including flooding as a
result of the failure of a levee or dam?
Less than Significant. No new structures would be constructed on-site, and public access would be limited
by MROSD, with permits granted on a case-by-case basis and periodic staff-led tours. In addition, staff would
not typically access the project site during a heavy storm event. Impacts from exposure to flooding would be
less than significant.
j) Result in inundation by seiche, tsunami, or mudflow?
Less than Significant. The project site is more than 700 feet above sea level at its lowest point. Seiche or
tsunamis from the Pacific Ocean are located too far away to impact the site. The soil conditions and
potential for prolonged rain events have the potential to produce mudflows. A mudflow could expose MROSD
personnel or members of the general public to potentially life threatening situations if they were present
while a mudflow event occurred. However, because of the low probability of such an event and the limited
likelihood of MROSD personnel or the public to be in harm’s way during an intense storm necessary to
precipitate such an event would reduce this potential impact to a less-than-significant level.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-50 Hendrys Creek Long-Term Management Plan IS/Proposed MND
3.10 LAND USE AND PLANNING
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
X. Land Use and Planning. Would the project:
a) Physically divide an established community?
b) Conflict with any applicable land use plan, policy,
or regulation of an agency with jurisdiction over
the project (including, but not limited to, a
general plan, specific plan, local coastal program,
or zoning ordinance) adopted for the purpose of
avoiding or mitigating an environmental effect?
c) Conflict with any applicable habitat conservation
plan or natural community conservation plan?
3.10.1 Environmental Setting
The project site is located in the rural western portion of unincorporated Santa Clara County in the Santa
Cruz Mountains. Prior to purchase of the property by POST, the project site was privately owned and
numerous level pads and road networks were created and graded by the previous owner for small home
sites, recreational vehicle trailers, and a 1-acre golf green. Currently, the only access to the site is by MROSD
staff and occasional trespassers. All structures, septic tanks, personal property, and debris were removed
prior to POST’s purchase of the property, with the exception of a network of roads and driveways, two vehicle
bridges, several culverted road/stream crossings, and a pedestrian bridge.
The Santa Clara County General Plan designates the property as Hillside, which allows for agricultural uses,
mineral extraction, low-density recreation, land in its natural state, wildlife refuges, very low density
residential development, and commercial, industrial, or industrial uses that require remote settings or
support recreation or appreciation of the natural environment. The Santa Clara County General Plan also
includes development policies for any new development in the Los Gatos Watershed (Santa Clara County
1994). The project site is zoned HS (Hillside), requiring a 20- to 160-acre minimum lot size. This zoning
designation provides for preserving mountainous lands in open space. The property consists of three parcels
that are 78 acres, 38 acres, and a one- acre legal-nonconforming parcel, respectively.
There are currently two easements for the Hendrys Creek property including: a public easement for
navigation and the incidents of navigation such as boating, fishing, swimming, and other recreational uses in
Hendrys Creek and Frenchman’s Creek (See Tributary 11 on Exhibit 2-4), and an easement for ingress and
egress and public utilities from Alma Road, a public road, to and through the Hendrys Creek property.
Adjacent land uses in the Hendrys Creek watershed consists predominantly of rural residential, recreational,
and open-space uses. There is no established residential community located within the immediate vicinity of
the project site. The surrounding area is sparsely populated, with a few residences located along Soda
Springs Road, Weaver Road, and Aldercroft Heights Road in the upper watershed. The adjoining private
property to the west is owned by Lupin Naturalist Lodge, which currently has approximately 50 residents.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-51
3.10.2 Discussion
a) Physically divide an established community?
No Impact. There are no structures on the project site; therefore, no established community exists within the
immediate vicinity of the proposed improvements. The community of Los Gatos is located approximately 8
miles north of the project site. Because the proposed project would be an extension of an existing open
space preserve, and is located in a rural area used primarily for agriculture, grazing, and open space uses,
the proposed project would not divide an established community. Therefore, there would be no impact.
b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project
(including, but not limited to, a general plan, specific plan, local coastal program, or zoning ordinance) adopted for
the purpose of avoiding or mitigating an environmental effect?
Less than Significant. As indicated above under “Environmental Setting,” the Santa Clara County General
Plan designates the project site as Hillside, which allows for low-density recreation, land in its natural state,
and wildlife refuges. The project site is also zoned as HS (Hillside). This zoning designation provides for
preserving mountainous lands in open space. The overall goal of the LTMP is to foster the viability of the
Waters of the U.S/State, native vegetation, habitats, and connectivity within the project site. Implementation
of the proposed project would not conflict with the County’s land use designation and zoning for the project
site. Therefore, the proposed project would have a less-than-significant impact on applicable land use plans,
policies or regulations.
c) Conflict with any applicable habitat conservation plan or natural community conservation plan?
No Impact. The proposed project does not contain areas subject to a habitat conservation plan or natural
community conservation plan. No impact would result.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-52 Hendrys Creek Long-Term Management Plan IS/Proposed MND
3.11 MINERAL RESOURCES
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
XI. Mineral Resources. Would the project:
a) Result in the loss of availability of a known
mineral resource that would be of value to the
region and the residents of the state?
b) Result in the loss of availability of a locally
important mineral resource recovery site
delineated on a local general plan, specific plan,
or other land use plan?
3.11.1 Environmental Setting
According to the Santa Clara County General Plan EIR, there are a number of mineral resource deposits in
Santa Clara County that are of regional or state-wide significance, and eight of those deposits are currently
being quarried (Santa Clara County 1994). However, none of these sites are located within the project site.
3.11.2 Discussion
a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of
the state?
No Impact. The Santa Clara County General Plan EIR identifies eight mineral deposits within the county that
are of regional or state-wide significance; however, none of these sites are within the project site. In addition,
removal of the road crossings within the site would not result in the loss of any known mineral resources, or
preclude future access to any mineral resources. Therefore, there would be no impact.
b) Result in the loss of availability of a locally important mineral resource recovery site delineated on a local general
plan, specific plan, or other land use plan?
No Impact. There are no known mineral resource recovery sites within the project site. As discussed under
“a” above, the proposed project would result in the loss of or preclude future access to any mineral
resources. Therefore, there would be no impact.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-53
3.12 NOISE
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
XII. Noise. Would the project result in:
a) Exposure of persons to or generation of noise
levels in excess of standards established in the
local general plan or noise ordinance, or in other
applicable local, state, or federal standards?
b) Exposure of persons to or generation of excessive
groundborne vibration or groundborne noise
levels?
c) A substantial permanent increase in ambient
noise levels in the project vicinity above levels
existing without the project?
d) A substantial temporary or periodic increase in
ambient noise levels in the project vicinity above
levels existing without the project?
e) For a project located within an airport land use
plan or, where such a plan has not been adopted,
within two miles of a public airport or public use
airport, would the project expose people residing
or working in the project area to excessive noise
levels?
f) For a project within the vicinity of a private
airstrip, would the project expose people residing
or working in the project area to excessive noise
levels?
3.12.1 Environmental Setting
Existing noise conditions are governed by the presence of noise-sensitive receptors, the location and type of
noise sources, and overall ambient noise levels. Noise-sensitive land uses are generally considered to
consist of those uses where noise exposure could result in health-related risks to individuals, as well as
places where a quiet setting is an essential element of their intended purpose. Residential dwellings are of
primary concern because of the potential for increased and prolonged exposure of individuals to both
interior and exterior noise levels. Additional parks and recreation areas are also generally considered
sensitive to increases in exterior noise levels. These noise-sensitive land uses are also considered vibration-
sensitive.
The project site is located east of Lexington Reservoir, within unincorporated Santa Clara County (see Exhibit
2-2). The project site lies is located along the northeast side of the Santa Cruz Mountains between Santa
Clara Valley and Monterey Bay.
There are no sensitive receptors located within the project site. The property is bounded by the Preserve to
the north, south, and east, and private property to the west and along its southeastern corner. The nearest
offsite sensitive receptors include rural residences located over 1,000 feet from the project disturbance area
and Lupin Naturalist Lodge located approximately 0.3 mile to the west (see Exhibit 3.12-1).
Noise sources that may contribute to the existing noise environment consist of aircraft flyover and natural
sounds such as leaves rustling and birds chirping.
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/MND 3-54
Exhibit 3.12-1 Sensitive Receptor Locations
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-55
The County of Santa Clara has established noise guidelines and standards to protect citizens from potential
hearing damage and other adverse physiological and social effects associated with noise. Applicable policies
and regulations are contained in the Santa Clara County Zoning Regulations.
The Santa Clara Countywide Airport Land Use Plan (Santa Clara County 2008) describes the five airports
within the County: Palo Alto, Reid Hillview, and South County (all general aviation airports), Moffett Field
(military airport), and San Jose International Airport. All of these airports are over 10 miles from the project
site.
COUNTY OF SANTA CLARA ZONING REGULATIONS
The Santa Clara County Noise Ordinance (Chapter VIII: Control of Noise and Vibration) contains the following
applicable provisions:
Construction noise is exempt from Exterior Noise standards, except for work between weekday and
Saturday hours of 7:00 pm and 7:00 am, or any time on Sundays or holidays, such that the sound
creates a noise disturbance across a residential or commercial property line. (Sec. B11-156 and B11-
154).
The County Noise Ordinance (B11 154(b) states that, where technically and economically feasible,
construction activities shall be conducted in such a manner that the maximum noise levels at affected
properties will not exceed those listed in the following schedule:
(i) Mobile equipment. Maximum noise levels for nonscheduled, intermittent, short-term operation
(less than 10 days) of mobile equipment:
Single- and Two-Family
Dwelling Residential Area
Residential Area Multifamily
Dwelling Commercial Area
Daily, except Sundays and legal
holidays 7:00 a.m.--7:00 p.m. 75 dBA 80 dBA 85 dBA
Daily, 7:00 p.m. to 7:00 a.m. and all
day Sunday and legal holidays 50 dBA 55 dBA 60 dBA
(ii) Stationary equipment. Maximum noise levels for repetitively scheduled and relatively long-term
operation (periods of 10 days or more) of stationary equipment:
Single- and Two-Family
Dwelling Residential Area
Residential Area Multifamily
Dwelling Commercial Area
Daily, except Sundays and legal
holidays 7:00 a.m.--7:00 p.m. 60 dBA 65 dBA 70 dBA
Daily, 7:00 p.m. to 7:00 a.m. and all
day Sunday and legal holidays 50 dBA 55 dBA 60 dBA
3.12.2 Discussion
a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or
noise ordinance, or in other applicable local, state, or federal standards?
Less-Than-Significant. The project would not result in noticeable increase in noise during operation because
only limited, permit-only public access would be allowed, and staff would continue to access the site with
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-56 Hendrys Creek Long-Term Management Plan IS/Proposed MND
approximately the same frequency as under current conditions. The proposed project would result in a
temporary increase in construction-generated noise resulting from the creek restoration activities. These
activities could require some earth movement and truck hauling. Therefore, noise-generating equipment that
would likely be used includes dozers, haul trucks, and loaders. Reference noise levels for these types of
equipment are shown below in Table 3.12-1 and noise level estimates are shown in Appendix E.
Table 3.12-1 Equipment Reference Noise Levels
Type of Equipment Noise Level (Lmax) at 50 feet
Dozer 85
Dump Truck 84
Front End Loader 80
Source: Data compiled by Ascent Environmental in 2014
Noise generated from these pieces of equipment would be intermittent and short in duration as typical use
is characterized by short periods of full-power operation followed by extended periods of operation at lower
power, idling, or powered-off conditions. However, as a worst-case scenario, if these pieces of equipment
were to operate at full capacity for an entire hour, noise levels could reach up to 46 dBA Lmax at the nearest
offsite sensitive receptors located over 1,000 feet from the construction area.
As identified in Santa Clara County Code of Ordinances, Section B11-156(d), Construction noise is exempt
from the County’s Exterior Noise Standards. The County Code of Ordinances Section B11-154 sets limits for
daytime and nighttime construction noise. As indicated in Section B11-154(b)(i), the daytime limit for
construction noise is 75 dBA for single-family residences and the nighttime limit is 50 dBA. The construction
noise generated by the proposed project (approximately 54 dBA Lmax) is modeled to be below the daytime
construction noise standards established by the Santa Clara County Code of Ordinances. No nighttime
construction would occur for this project, and the project would result in a less-than-significant impact.
b) Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels?
No Impact. The proposed project could involve the use of some heavy construction equipment for various
creek restoration activities. These activities include, primarily the removal of existing stream crossings and
site preparation and digging for new crossings and restoration of associated upland areas. No heavy impact
equipment such as drilling or blasting would occur. The types of construction activities that are proposed
include minimal site disturbance and are not the types of activities that could result in excessive ground
vibrations. Considering the type and number of construction equipment and the distance to the nearest
sensitive receptor (over 1,000 feet away from the construction area), the proposed project would not expose
people to excessive ground vibration. The project would result in no impact.
c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the
project?
No Impact. As described above under “a,” construction activities associated with the proposed creek
restoration activities would be minor and temporary and would not result in noise levels that exceed any
applicable Santa Clara County noise standard and therefore would not expose any nearby sensitive
receptors to excessive noise levels. No new stationary noise sources or land development would be included
in the proposed project. Therefore, the proposed project would not result in any permanent increase in
ambient noise levels. There would be no impact.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-57
d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing
without the project?
Less-Than-Significant. As discussed under “a” above, the proposed project would involve the use of some
noise-generating construction equipment. These types of noise-generating equipment do not operate for
extended periods of time and would not exceed any applicable Santa Clara County noise standard, during
the daytime or the nighttime due to the distance from sensitive receptors (over 1,000 feet away from the
construction area). Therefore, this temporary increase in ambient noise would not result in a significant
increase in noise levels at sensitive receptors. This impact would be less than significant.
e) For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a
public airport or public use airport, would the project expose people residing or working in the project area to
excessive noise levels?
No Impact. As mentioned above, the Santa Clara Countywide Airport Land Use Plan (2008) identifies five
airports within the county. All five airports are over ten miles from the projects site. The proposed project
does not include any occupied structures. Therefore, airport-related noise would not substantially affect the
proposed project. No impact would occur.
f) For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project
area to excessive noise levels?
No Impact. There are no active private airstrips within two miles of the project site. The proposed project
would not expose people within the project area to excessive noise impacts. No impact would occur.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-58 Hendrys Creek Long-Term Management Plan IS/Proposed MND
3.13 POPULATION AND HOUSING
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
XIII. Population and Housing. Would the project:
a) Induce substantial population growth in an area,
either directly (for example, by proposing new
homes and businesses) or indirectly (for example,
through extension of roads or other
infrastructure)?
b) Displace substantial numbers of existing homes,
necessitating the construction of replacement
housing elsewhere?
c) Displace substantial numbers of people,
necessitating the construction of replacement
housing elsewhere?
3.13.1 Environmental Setting
According to the US Census Bureau, in 2013 Santa Clara County’s population totaled 1,862,041 with 642,663
total housing units and an occupation rate of 2.91 persons per household (US Census Bureau 2014). Located
in the unincorporated area of Santa Clara County, the project vicinity is sparsely populated, with housing
consisting mostly of rural residences, farmhouses, and estates. There is no housing within the project site.
3.13.2 Discussion
a) Induce substantial population growth in an area, either directly (for example, by proposing new homes and
businesses) or indirectly (for example, through extension of roads or other infrastructure)?
No Impact. The proposed project does not include construction of new housing or commercial business.
Therefore, no direct population growth would result from implementation of the proposed project. Construction
would be minimal and short-term, and is not expected to result in employees relocating to the project site. No
additional permanent staff would be needed for operation and maintenance of the proposed project. In
addition, the long-term use of the project site would be for preservation of open space and would include limited
public access controlled by permit. Therefore, the proposed project would have no impact on population growth.
b) Displace substantial numbers of existing homes, necessitating the construction of replacement housing elsewhere?
No Impact. The propose project would not include removal of any homes. Numerous unpermitted structures
and trailers were located within the project site; however, all of these structures were removed prior to the
property being purchased and there are currently no structures on-site. Therefore, the proposed project
would have no impact on displacement of homes.
c) Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere?
No Impact. As described under “b” above, no homes would be displaced as a result of the proposed project.
Therefore, no people or existing residences would be displaced, and there would be no impact.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-59
3.14 PUBLIC SERVICES
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
XIV. Public Services. Would the project:
a) Result in substantial adverse physical impacts
associated with the provision of new or physically
altered governmental facilities, or the need for
new or physically altered governmental facilities,
the construction of which could cause significant
environmental impacts, in order to maintain
acceptable service ratios, response times, or
other performance objectives for any of the public
services:
Fire protection?
Police protection?
Schools?
Parks?
Other public facilities?
3.14.1 Environmental Setting
MROSD participates in fire protection of the Preserve, which will include the project site, in collaboration with
other agencies, and primarily relies on CAL FIRE and Santa Clara County Fire Department (SCCFD), with first
response and support to the jurisdictional fire agencies by MROSD staff. Fire protection within Santa Clara
County is currently provided by 10 municipal fire districts, six county fire districts, two local fire districts, and
CAL FIRE. The unincorporated areas of the county, including the project site, are served by the Santa Clara
County Central Fire Protection District and CAL FIRE (Santa Clara County 1994). CAL FIRE and SCCFD
provide fire suppression, basic and advanced rescue, advanced life support first response medical services,
hazardous materials and technical rescue response, fire inspection, fire investigation, disaster
preparedness, and public education. There are 259 full time firefighters and 40 volunteer firefighters within
the county that are based at 17 fire stations (SCCFD 2010).
MROSD maintains a fire program to assist these agencies with fire response. If a fire occurs on or is
threatening MROSD lands, MROSD staff helps establish Incident Command if first on scene, evacuates or
closes the Preserves for visitor safety, performs initial attack when safe and effective to do so, provides
logistical assistance given staff knowledge of the property, monitors and extinguishes spot fires, and
supplies additional water for primary agency engines. MROSD operates a maintenance-style water truck for
use in providing water for fire suppression.
Police Protection
MROSD rangers are peace officers authorized to carry out duties in patrolling MROSD preserves to promote
visitor safety and provide for the protection of the natural resources of the preserves. MROSD has a total of
27 badged (rangers) (who have attended an MROSD-approved Academy and wear a peace officer badge). In
an emergency, any or all of these personnel could be summoned to assist at an incident. In addition, the
Santa Clara County Sheriff Office is the primary jurisdictional law enforcement agency that provides law
enforcement service to unincorporated areas of Santa Clara County. MROSD staff is responsible for
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-60 Hendrys Creek Long-Term Management Plan IS/Proposed MND
enforcing MROSD regulations most importantly pertaining to vandalism, trespassing, and parking, whereas
the Santa Clara County Sheriff Office is primarily responsible for criminal enforcement and all other code
sections.
Schools
The project site is located within the Los Gatos Union School District. The nearest school is Lexington
Elementary School, located approximately 1.5 miles north of the project site.
Parks
Several large open space preserves are located in the vicinity of the project site including the Sierra Azul
Open Space Preserve, which borders the project site to the north, south, and east; Bear Creek Redwoods
Open Space Preserve (MROSD Preserve located approximately 2 miles east of the site); and Lexington
Reservoir County Park (located approximately 1 mile north of the site).
3.14.2 Discussion
a) Result in substantial adverse physical impacts associated with the provision of new or physically altered
governmental facilities, or the need for new or physically altered governmental facilities, the construction of which
could cause significant environmental impacts, in order to maintain acceptable service ratios, response times, or
other performance objectives for any of the public services:
Fire protection?
Less than Significant. MROSD assists with fire protection of the existing Preserve in collaboration with other
agencies, primarily in reliance on the jurisdictional fire agencies of CAL FIRE and SCCFD, with first response
and support to the jurisdictional fire agencies by MROSD staff. The proposed LTMP does not include
development of structures in an area where no structures currently exist. In addition, as described in Section
3.8, “Hazards and Hazardous Materials,” with the implementation of mitigation measures the proposed
project would not result in a substantial increase in risk of wildland fire. Therefore, a substantial increase in
demand for fire protection service would not occur, such that new or expanded facilities would be required to
maintain appropriate level of service. In addition, Element 6A.3 and corresponding tasks in the LTMP
indicate that patrol vehicle access will be maintained within the project site and that wildfire fuel
management will be performed. Because the project is not expected to increase the wildfire potential for the
site and the site would be managed to minimize fuel load, this impact is considered less than significant.
Police protection?
Less than Significant. Law enforcement service in the vicinity of the project site is currently provided by the
Santa Clara County Sheriff’s Department (criminal) and MROSD rangers (resource protection).
Implementation of the proposed project would provide limited, permit-only public access to areas that are
not currently accessed by the public. No structures would be developed on the project site. Most emergency
responses would be handled internally by MROSD staff and would not tax other law enforcement agencies.
Implementation of the proposed project would not result in increased demand for police protection such that
new or expanded facilities are necessary to maintain current service levels. This impact is less than
significant.
Schools?
No Impact. The nearest school is 1.5 miles from the project site and the proposed project would not directly
affect any schools. In addition, the proposed project does not include development of new residences and
therefore would not result in a substantial effect on the permanent population in the area that would
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-61
increase the demand for educational services. Implementation of the proposed project would have no
impact on schools.
Parks?
Less than Significant. The project site would become part of the existing Preserve, and the proposed project
would provide additional open space with limited, permit-only public access. Implementation of the proposed
project is not expected to increase the demand for other parks and open space facilities, such that new or
expanded facilities would be required. This impact is less than significant.
Other public facilities?
No Impact. The proposed project does not include development of new residences and therefore would not
affect the population in the project area that would increase the demand for other public facilities such as
libraries and community centers. Therefore, implementation of the project would have no impact on these
other services.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-62 Hendrys Creek Long-Term Management Plan IS/Proposed MND
3.15 RECREATION
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
XV. Recreation. Would the project:
a) Increase the use of existing neighborhood and
regional parks or other recreational facilities such
that substantial physical deterioration of the
facility would occur or be accelerated?
b) Include recreational facilities or require the
construction or expansion of recreational facilities
that might have an adverse physical effect on the
environment?
3.15.1 Environmental Setting
As mentioned in Section 3.14, “Public Services” above, there are several large open space preserves and
parks located in the vicinity of the project site including the Sierra Azul Open Space Preserve, which borders
the project site to the north, south, and east; Bear Creek Redwoods Open Space Preserve (MROSD Preserve
located approximately 2 miles east of the site); and Lexington Reservoir County Park (located approximately
1 mile north of the site). Sierra Azul Open Space Preserve provides for hiking, biking, equestrian use, and
Bear Creek Redwoods Open Space Preserve allows hiking and equestrian use. Lexington Reservoir County
Park provides hiking, biking, fishing, picnicking, and non-power boating.
3.15.2 Discussion
a) Increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial
physical deterioration of the facility would occur or be accelerated?
Less than Significant. As mentioned above in Section 3.14, “Public Services,” the proposed project would
provide additional open space that would provide limited, permit-only public access. The proposed project
would be connected to the existing Preserve; however, because the project site would only provide limited
public access, the proposed project is not expected to increase the demand for other parks and open space
facilities, such that new or expanded facilities would be required. This impact is less than significant.
b) Include recreational facilities or require the construction or expansion of recreational facilities that might have an
adverse physical effect on the environment?
Less than Significant. See the discussion under “a” above. The proposed project would not increase demand
for other parks and open space facilities, such that new or expanded facilities would be required and would
therefore result in a less than significant impact.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-63
3.16 TRANSPORTATION/TRAFFIC
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
XVI. Transportation/Traffic. Would the project:
a) Conflict with an applicable plan, ordinance or
policy establishing measures of effectiveness for
the performance of the circulation system, taking
into account all modes of transportation including
mass transit and non-motorized travel and
relevant components of the circulation system,
including but not limited to intersections, streets,
highways and freeways, pedestrian and bicycle
paths, and mass transit?
b) Conflict with an applicable congestion
management program, including, but not limited
to level of service standards and travel demand
measures, or other standards established by the
county congestion management agency for
designated roads or highways?
c) Result in a change in air traffic patterns, including
either an increase in traffic levels or a change in
location that results in substantial safety risks?
d) Substantially increase hazards due to a design
feature (e.g., sharp curves or dangerous
intersections) or incompatible uses (e.g., farm
equipment)?
e) Result in inadequate emergency access?
f) Conflict with adopted policies, plans, or programs
regarding public transit, bicycle, or pedestrian
facilities, or otherwise decrease the performance
or safety of such facilities?
3.16.1 Environmental Setting
The project site is accessible from a deeded access road through private property to Aldercroft Heights Road.
Visitors to the project site would either be accompanied by an MROSD docent and access the project site via
Aldercroft Heights Road, or would access the property by hiking. There are currently no parking areas within
the project site, and because the project site would not be open to the public, designated parking areas
would not be provided. The haul route that would be used during construction includes Highway 17 and
Aldercroft Heights Road.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-64 Hendrys Creek Long-Term Management Plan IS/Proposed MND
3.16.2 Discussion
a) Conflict with an applicable plan, ordinance or policy establishing measures of effectiveness for the performance of
the circulation system, taking into account all modes of transportation including mass transit and non-motorized
travel and relevant components of the circulation system, including but not limited to intersections, streets, highways
and freeways, pedestrian and bicycle paths, and mass transit?
Less than Significant. The proposed project does not include public access, except by permit only. No
additional MROSD staff are necessary for the proposed project. The proposed creek restoration would
generate minimal additional traffic in the long-term (no more than two trips per day), although some trip
generation would occur during construction. Construction-related trips would include construction worker
trips, as well as haul trips for moving equipment and materials. It is anticipated that project construction
would result in no more than 10 worker trips and 2 haul trips per day. Therefore, no substantial short-term or
long-term vehicle trip generation would result. The proposed project would not substantially affect the
performance of the circulation system and would therefore not conflict with any applicable transportation
plans, ordinances, or policies. The project would result in a less-than-significant impact.
b) Conflict with an applicable congestion management program, including, but not limited to level of service standards
and travel demand measures, or other standards established by the county congestion management agency for
designated roads or highways?
Less than Significant. See discussion under “a” above. The proposed project would generate minimal vehicle
trips. Therefore the proposed project would not conflict with a congestion management plan, including level
of service standards and other standards for roadway/highway congestion management. The impact is less
than significant.
c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that
results in substantial safety risks?
No Impact. Implementation of the proposed project would not involve development of any tall structures and
would not alter air traffic patterns. Therefore, the proposed project would result in no impact.
d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections) or
incompatible uses (e.g., farm equipment)?
No Impact. No vehicle access would be provided to the project site. Therefore, no traffic hazards would
result. The proposed project would result in no impact.
e) Result in inadequate emergency access?
Less than Significant. The proposed project would maintain access throughout property for routine
maintenance and emergency vehicle access. Also see the discussion of emergency access in Section 3.14
“Public Services.” Therefore, a less-than-significant impact would result.
f) Conflict with adopted policies, plans, or programs regarding public transit, bicycle, or pedestrian facilities, or
otherwise decrease the performance or safety of such facilities?
No Impact. As mentioned above under “a,” the proposed project includes limited public access (by permit
only) and would not affect the number of visitors that would utilize trails within the existing Preserve.
Therefore, demand for bicycle facilities and other alternative modes of transportation would not be affected
by the proposed project. There would be no impact.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-65
3.17 UTILITIES AND SERVICE SYSTEMS
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
XVII. Utilities and Service Systems. Would the project:
a) Exceed wastewater treatment requirements of
the applicable Regional Water Quality Control
Board?
b) Require or result in the construction of new water
or wastewater treatment facilities or expansion of
existing facilities, the construction of which could
cause significant environmental effects?
c) Require or result in the construction of new storm
water drainage facilities or expansion of existing
facilities, the construction of which could cause
significant environmental effects?
d) Have sufficient water supplies available to serve
the project from existing entitlements and
resources, or are new or expanded entitlements
needed?
e) Result in a determination by the wastewater
treatment provider that serves or may serve the
project that it has adequate capacity to serve the
project’s projected demand, in addition to the
provider’s existing commitments?
f) Be served by a landfill with sufficient permitted
capacity to accommodate the project’s solid
waste disposal needs?
g) Comply with federal, state, and local statutes and
regulations related to solid waste?
3.17.1 Environmental Setting
Previously, water for domestic purposes was piped from the seeps and springs within the property. Electricity
was provided by generators, solar panels, and batteries, and underground septic systems with leach lines
were used for wastewater. However, all structures and septic systems, and the majority of the water piping
have been removed from the project site, and the only public utility present on-site is telephone lines.
Stormwater run-off from the site drains naturally. There is no municipal or other formal drainage system;
however, culverts and other drainage facilities convey stormwater flow across or through roadways.
The project site is not open to the public, and MROSD does not provide regular trash collection services to
the site. MROSD ordinance prohibits public littering or dumping of any material onto Preserves. Illegal trash
is removed from the Preserve by MROSD staff and properly disposed of.
Downstream of the project site, Lupin Naturalist Lodge serves approximately 50 residents with their
domestic water system. Also downstream, San Jose Water Company draws surface water from an in-stream
impoundment in Hendrys Creek. The water is then piped to a pump station where it enters their supply
network.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-66 Hendrys Creek Long-Term Management Plan IS/Proposed MND
3.17.2 Discussion
a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board?
No Impact. As discussed in the Environmental Setting, all septic systems have been removed from the
project site. In addition, no restrooms would be constructed as part of the proposed project, and no
wastewater would be generated. The proposed project would result in no impact related to wastewater
treatment requirements.
b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities,
the construction of which could cause significant environmental effects?
No Impact. See discussion under “a” above. The proposed project would result in no impact related to
construction of new or expanded wastewater treatment facilities.
c) Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the
construction of which could cause significant environmental effects?
Less than Significant. For the most part, drainage of stormwater runoff occurs naturally on the project site,
with the exception of features such as culverts that convey drainage through roadways. The proposed project
involves improvements to existing road crossings to prevent erosion and improve water quality, by removing
culverts and bridges and installing one new wet ford crossing instead. Environmental impacts associated
with these improvements are evaluated in this IS. Impacts associated with installing these drainage facilities
are less than significant.
d) Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or
expanded entitlements needed?
No Impact. As discussed above, the majority of the water piping has been removed from the project site. In
addition, the project site would have limited, permit-only public access and no potable water would be
provided at the site. No water service is required for implementation of the project. Therefore, the proposed
project would result in no impact related to water supply capacity.
e) Result in a determination by the wastewater treatment provider that serves or may serve the project that it has
adequate capacity to serve the project’s projected demand, in addition to the provider’s existing commitments?
No Impact. See discussion under “a” above. The proposed project would result in no impact related to
wastewater treatment capacity.
f) Be served by a landfill with sufficient permitted capacity to accommodate the project’s solid waste disposal needs?
Less than Significant. As discussed above, all structures have been removed from the property; however,
implementation of the proposed project would require removal of four bridges and a culvert. Removal of
these structures would generate solid waste. Material would be recycled to the greatest extent possible and
otherwise hauled to appropriate disposal facilities. Any hazardous material would be abated first per state
requirements (see Section 3.9, “Hazards and Hazardous Materials”) and would be disposed of at
appropriate hazardous waste disposal facilities. The volume of solid waste generated during structure
removal would not be substantial.
As mentioned under the Environmental Setting, MROSD does not provide regular trash collection services.
Public access to the property would be allowed by permit only, and visitors would be required to dispose of
their own trash. MROSD prohibits littering or dumping of any material onto the Preserve. MROSD staff
removes any illegal trash, which is typically not substantial in volume, and properly disposes of it. Because
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-67
implementation of the proposed LTMP involves very limited generation of solid waste, implementation of the
proposed project would not conflict with solid waste regulations and impacts to landfills would be less than
significant.
g) Comply with federal, state, and local statutes and regulations related to solid waste?
Less than Significant. As described under “f” above, the proposed project involves very limited solid waste
generation and would not conflict with federal, state, and local statutes or regulations related to solid waste.
The impact is less than significant.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-68 Hendrys Creek Long-Term Management Plan IS/Proposed MND
3.18 MANDATORY FINDINGS OF SIGNIFICANCE
ENVIRONMENTAL ISSUES
Potentially
Significant
Impact
Less Than
Significant with
Mitigation
Incorporated
Less Than
Significant
Impact
No Impact
XVIII. Mandatory Findings of Significance.
a) Does the project have the potential to
substantially degrade the quality of the
environment, substantially reduce the habitat of
a fish or wildlife species, cause a fish or wildlife
population to drop below self-sustaining levels,
threaten to eliminate a plant or animal
community, reduce the number or restrict the
range of an endangered, rare, or threatened
species, or eliminate important examples of the
major periods of California history or prehistory?
b) Does the project have impacts that are
individually limited, but cumulatively
considerable? (“Cumulatively considerable”
means that the incremental effects of a project
are considerable when viewed in connection with
the effects of past projects, the effects of other
current projects, and the effects of probable
future projects.)
c) Does the project have environmental effects that
will cause substantial adverse effects on human
beings, either directly or indirectly?
Authority: Public Resources Code Sections 21083, 21083.5.
Reference: Government Code Sections 65088.4.
Public Resources Code Sections 21080, 21083.5, 21095; Eureka Citizens for Responsible Govt. v. City of Eureka (2007) 147 Cal.App.4th 357; Protect the Historic
Amador Waterways v. Amador Water Agency (2004) 116 Cal.App.4th at 1109; San Franciscans Upholding the Downtown Plan v. City and County of San Francisco (2002)
102 Cal.App.4th 656.
3.18.1 Discussion
a) Does the project have the potential to substantially degrade the quality of the environment, substantially reduce the
habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to
eliminate a plant or animal community, reduce the number or restrict the range of an endangered, rare, or threatened
species, or eliminate important examples of the major periods of California history or prehistory?
Less than Significant. As described in the biological resources analysis of this IS (Section 3.4),
implementation of the proposed project, including mitigation measures included in this IS/Proposed MND,
would result in less-than-significant impacts related to biological resources. Natural Resource Management
is one of the overarching goals of the proposed project, including protecting and enhancing habitat and
wildlife populations. The proposed project does not have the potential to substantially degrade fish or wildlife
habitat, adversely affect wildlife populations, or restrict the range of special-status species. Also, as
indicated in the cultural resources analysis of this IS/Proposed MND (Section 3.5), implementation of the
proposed project would not adversely affect existing historic structures and mitigation measures would
prevent substantial adverse effects to unknown archaeological resources or human remains. These impacts
are considered less than significant.
Ascent Environmental Environmental Checklist
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3-69
b) Does the project have impacts that are individually limited, but cumulatively considerable? (“Cumulatively
considerable” means that the incremental effects of a project are considerable when viewed in connection with the
effects of past projects, the effects of other current projects, and the effects of probable future projects.)
Less than Significant. The proposed project includes very little soil disturbance and does not include
construction of new structures or an increase in impervious surfaces. The proposed project is designed to
protect and enhance existing natural and cultural resources. As indicated throughout this IS/Proposed MND,
implementation of the proposed project would not result in any individually significant impact. In addition,
the effects of the proposed project would not combine with the effects of other past, present, or future
projects in a cumulatively considerable fashion. The cumulative impacts associated with the proposed
project are less than significant.
c) Does the project have environmental effects that will cause substantial adverse effects on human beings, either
directly or indirectly?
Less than Significant. The proposed project does not include any new sources of pollution and would not
generally involve the use, handling, or transport of hazardous materials. No hazardous materials are
identified on the project site that could result in exposure of construction workers or the public to
contamination. This impact is less than significant.
Environmental Checklist Ascent Environmental
Midpeninsula Regional Open Space District
3-70 Hendrys Creek Long-Term Management Plan IS/Proposed MND
This page intentionally left blank.
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/MND 4-1
REFERENCES 4
BAAQMD. See Bay Area Air Quality Management District.
Bay Area Air Quality Management District. 2009. Draft CEQA Guidelines September 2009. Available:
http://www.baaqmd.gov/~/media/Files/Planning%20and%20Research/CEQA/Workshop%20Draft%
20-%20BAAQMD%20CEQA%20Guidelines%209-2009%20Superseded.ashx?la=en.
______. 2010 (June). California Environmental Quality Act Air Quality Guidelines. Available:
<http://www.baaqmd.gov/Divisions/Planning-and-Research/CEQA-GUIDELINES/Updated-CEQA-
Guidelines.aspx>.
California Department of Fish and Game. 2009 (November). Protocols for Surveying and Evaluating Impacts
to Special Status Native Plant Populations and Natural Communities.
California Department of Transportation. 2013 (December 19). Eligible and Officially Designated Routes.
http://www.dot.ca.gov/hq/LandArch/scenic/cahisys.htm. Accessed September 2014.
Caltrans. See California Department of Transportation.
Department of Conservation 2012. Department of Conservation Farmland Mapping and Monitoring Program.
Available at <ftp://ftp.consrv.ca.gov/pub/dlrp/FMMP/pdf/2012/scl12.pdf>. Accessed October
2014.
DFG. See California Department of Fish and Game.
DGC. See Diablo Green Consulting.
Diablo Green Consulting. 2011 (August 1). Phase 1 Environmental Site Assessment of Carilli Property.
Prepared for Peninsula Open Space Trust. San Ramon, CA.
District. See Midpeninsula Regional Open Space District.
Federal Register. 1986 (November 13). Department of the Army, Corps of Engineers, 33 CFR Parts 320
through 330, Regulatory Programs of the Corps of Engineers; Final Rule. Vol. 51, No. 219; page
41217.
Intergovernmental Panel on Climate Change. 2007. Climate Change 2007: They Physical Basis. Contribution
of Working Group I to the Fourth Assessment Report of the IPCC. Geneva, Switzerland. Available:
<http://www.ipcc.ch/ipccreports/ar4-wg1.htm>. Accessed October 2014.
IPCC. See Intergovernmental Panel on Climate Change.
McLaughlin, R.J., Clark, J.C., Brabb, E.E., Helley, E.J., and Colon, C.J., 2001, Geologic maps and structure
sections of the southwestern Santa Clara Valley and Southern Santa Cruz Mountains, Santa Clara
and Santa Cruz Counties, California: U. S. Geological Survey, Miscellaneous Field Studies MF‐2373,
scale 1:24,000.
Midpeninsula Regional Open Space District. 2012a (May). Biotic Assessment: Hendrys Creek, Sierra Azul
Open Space Preserve. Prepared by Coast Range Biological, LLC and Biosearch Associates. Los Altos,
CA.
References Ascent Environmental
Midpeninsula Regional Open Space District
4-2 Hendrys Creek Long-Term Management Plan IS/MND
______. 2012b (June 8). Hendrys Creek Road and Stream Channel Conceptual Restoration Project.
Prepared by Timothy Best in association with Restoration Design Group, LLC and Butano
Geotechnical. Los Altos, CA.
Santa Clara County 2008. Santa Clara Countywide Airport Land Use Plan. Accessed November 3, 2014.
Available at:<http://www.sccgov.org/sites/planning/PlansPrograms/ALUC/Documents/
ALUC_20081119_SJC_CLUP.pdf>.
Santa Clara County. 1994 (December 20). Santa Clara County General Plan: Book B. Available
at:<http://www.sccgov.org/sites/planning/PlansPrograms/GeneralPlan/Pages/GP.aspx>. Accessed
August 2014.
Santa Clara County Fire Department. Strategic Plan: January 2010 – December 2014. Available
at:<http://www.sccfd.org/forms/strategic_plan.pdf>. Accessed September 2014.
SCCFD. See Santa Clara County Fire Department.
Petersen, M.D., Bryant, W.A., Cramer, C.H., Cao, T., Reichle, M.S., Frankel, A.D., Lienkaemper, J.J., McCrory,
P.A., and Schwartz, D.P. 1996. Probabilistic Seismic Hazard Assessment for the State of California:
California Department of Conservation, Division of Mines and Geology Open File Report 96‐08; U.S.
Geological Survey, Open File Report 96‐706 cited in District 2012b.
U.S. Census Bureau. 2014 (July 8). State & County quick Facts, Santa Clara County.
http://quickfacts.census.gov/qfd/states/06/06085.html. Accessed August 2014.
U.S. Geological Survey. 1953. Los Gatos, CA 7.5 minute topographic quadrangle (photo revised 1980) cited
in District 2012a.
Wiegers, M. O., and Clahan, K. B. 2002. Section 2: Earthquake‐induced landslide evaluation report:
Earthquake‐induced landslide zones in the Los Gatos 7.5‐minute quadrangle, Santa Clara County,
CA; in Seismic Hazard Zone Report for the Los Gatos 7.5‐minute cited in MROSD 2012b.
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/MND 5-1
LIST OF PREPARERS 5
LEAD AGENCY
Midpeninsula Regional Open Space District
Meredith Manning ........................................................................................................................... Project Manager
ENVIRONMENTAL CONSULTANT
Ascent Environmental, Inc.
Gary Jakobs, AICP ........................................................................................................................ Principal-in-Charge
Mike Parker, AICP ........................................................................ Project Manager/Senior Environmental Planner
Stephanie Rasmussen ......................................................................................................... Environmental Planner
Dimitri Antoniou ......................................................... Assistant Project Manager/Air Quality and Noise Specialist
Honey Walters .......................................................................................... Principal Air Quality and Noise Specialist
Linda Leeman .................................................................................................................................... Senior Biologist
Alta Cunningham ................................................................................................................... Architectural Historian
Amber Giffin ........................................................................................................................... Document Preparation
Gayiety Lane .......................................................................................................................... Document Preparation
List of Preparers Ascent Environmental
Midpeninsula Regional Open Space District
5-2 Hendrys Creek Long-Term Management Plan IS/MND
This page intentionally left blank.
Notice of Intent to Adopt a Mitigated Negative Declaration
A notice, pursuant to the California Environmental Quality Act of 1970, as amended (Public Resources
Code 21,000, et sec.) that the following project will not have a significant effect on the environment.
File Number TAZ APN(s) Date
n/a n/a 558-27-007, 558-27-008 &
558-51-005 March 20, 2015
Project Name Project Type (Use)
Hendrys Creek Long Term Management Plan Long Term Management Plan including rehabilitation of
stream crossings and disturbed uplands
Owner Applicant
Midpeninsula Regional Open Space District Midpeninsula Regional Open Space District
Project Location
20610 Aldercroft Heights Road, Los Gatos, CA, in unincorporated Santa Clara County. The project site is east of
Lexington Reservoir within the Los Gatos Creek watershed and is located along the northeast side of the Santa
Cruz Mountains between Santa Clara Valley and Monterey Bay. The project site is accessible from a deeded
access road through private property to Aldercroft Heights Road.
Project Description
The proposed project would include the implementation of a Long-term Management Plan (LTMP) for the
Hendrys Creek Property, which would be purchased by Midpeninsula Regional Open Space District and become
part of the existing MROSD Sierra Azul Open Space Preserve (Preserve). Implementation of the LTMP would
include restoration of road/stream crossings across Hendrys Creek and its tributaries and rehabilitation of
disturbed upland areas.
The existing roadway creek crossings within the project site are susceptible to failure after large storm events, and in
some locations are contributing excessive fine-grained sediment to the Hendrys Creek watershed. A portion of the
existing roadway system would be maintained to provide vehicular access within the project site for maintenance,
routine patrols, and management of the property. Restoration of these crossings would reduce the potential of these
degraded areas to adversely affect the streams and other natural resources, and would reduce future maintenance
needs.
The proposed project would include road/stream crossing improvements, and rehabilitation of disturbed adjacent
upland areas. There are currently five crossings on Hendrys Creek; two of these are on Hendrys Creek Road and the
other three are on spur roads. Only one of these crossings (Crossing H4) would be needed for future access. The
remaining four crossings are no longer needed and would be removed by excavating the existing fill and restoring
the excavated channel. Current plans call for all bridges, culverts, and other “built” structures at road/stream
crossings to be removed, including site H4, and the stream channel “daylighted” (meaning all fill material will be
excavated from the channel bottom), leaving behind a functioning stream channel that is as close to a more natural
state or original configuration as practical.
For complete details of Project Description, refer to Chapter 2 of the IS/MND, available at www.openspace.org.
Purpose of Notice
The purpose of this notice is to inform you that MROSD Staff has recommended that a Mitigated Negative
Declaration be approved for this project. MROSD Staff has reviewed the Initial Study for the project, and based
upon substantial evidence in the record, finds that the proposed project could not have a significant effect on the
environment with implementation of mitigation measures.
Public Review Period: Begins: March 20, 2015 Ends: April 20, 2015 (5:00 pm)
Public comments regarding the correctness, completeness, or adequacy of this mitigated negative declaration
are invited and must be received on or before the end of the public review period. Such comments should be
based on specific environmental concerns. Written public comments must be received on or before the end of
the public review period and should be addressed to Meredith Manning, Midpeninsula Regional Open Space
District, 330 Distel Circle, Los Altos, CA 94022 or sent electronically via email to mmanning@openspace.org.
For additional information regarding this Mitigated Negative Declaration, please contact Meredith Manning,
Senior Planner at 650-691-1200 or mmanning@openspace.org.
Public Meeting: Date: May 13, 2015 Time: 7:00 pm Place: MROSD Office (see address below)
Action is tentatively scheduled on this proposed Mitigated Negative Declaration by the MROSD Board of
Directors on May 13, 2015, beginning at 7:00 pm in the MROSD Administrative Office, located at 330 Distel
Circle, Los Altos, CA, 94022. It should be noted that the approval of a Mitigated Negative Declaration does not
constitute approval of the project under consideration. The decision to approve or deny the project will be made
separately. Meeting information will be posted on the Midpeninsula Regional Open Space District website at:
http://www.openspace.org/about_us/meetings.asp or you may contact the District Clerk at 650 691-1200.
The Mitigated Negative Declaration and Initial Study may be viewed at the following locations:
(1) Midpeninsula Regional Open Space District, 330 Distel Circle, Los Altos, CA 94022
(2) Santa Clara Valley Water District, 5750 Almaden Expressway, San Jose, CA 95118
(3) The document is also available online during the review period at: www.openspace.org.
Other Agencies sent a copy of this document:
U.S. Army Corps of Engineers
California Department of Fish and Wildlife
County of Santa Clara Planning Department
Santa Clara Valley Water District
Regional Water Quality Control Board
Bay Area Air Quality Management District
Potentially Significant effects on the environment:
IV Biological Resources, b) Implementation of the proposed project could result in potentially significant impacts
to special-status wildlife species, including California red-legged frog (CRLF), Foothill yellow-legged frog (FYLF),
pallid bat, western red bat, San Francisco dusky-footed woodrat, Coopers hawk, Sharp-shinned hawk, Vaux’s
swift, Allen’s hummingbird, Olive sided flycatcher, and oak titmouse, as well as special-status animal species,
including for Santa Clara red ribbons, Loma Prieta hoita, woodland woollythreads, Santa Cruz Mountains
beardtongue, and white-flowered rein orchid. Implementation of Mitigation Measures 3.4-1 through 3.4-4 would
reduce the project’s impact on these species to a less-than-significant level.
IV Biological Resources, c) Any activities occurring within jurisdictional waters would be considered a significant
impact to waters of the United States. Construction activities would result in temporary impacts to Hendrys
Creek and its tributaries related to removal of creek crossings and sediment. Implementation of Mitigation
Measure 3.4-5 would reduce the project’s impact on wetlands to a less-than-significant level.
V Cultural Resources, b) and c) Although no archaeological resources were identified in the project area, the
potential exists that unidentified archaeological resources could be discovered during construction, which could
result in a potentially significant impact. Implementation of Mitigation Measure 3.5-1 would reduce the project’s
impact on archaeological resources to a less-than-significant level.
V Cultural Resources, d) No evidence suggests that any prehistoric or historic-era human interments are present
within or near project site. However, there is a possibility that human remains could be uncovered during
construction activities; therefore a potentially significant impact could occur. Implementation of Mitigation
Measure 3.5-2 would reduce the project's impact on human remains to a less -than -significant level.
VIII Hazards and Hazardous Materials, h) the project site is within the designated Wildfire and Urban Interface
Fire Area with a fire hazard zone classification of very high. Therefore, impacts related to wildfire would be
potentially significant. Implementation of Mitigation Measure 3.8-1 would reduce the impact to a less -than -
significant level.
Mitigation Measures included in the project to reduce potentially significant impacts to a less than
significant level:
Mitigation Measure 3.4-1 would reduce potentially significant impacts to special -status amphibians (CRLF and
FYLF) by requiring worker education, construction monitoring, and response actions if species are found during
construction.
Mitigation Measure 3.4-2 would reduce potentially significant impacts to special -status bats (pallid bat, western
red bat, and San Francisco dusky -footed woodrat) by requiring pre -construction surveys by a qualified biologist
and response actions if species are identified, including avoidance or relocation (for woodrat) with approval by
CDFW.
Mitigation Measure 3.4-3 would reduce potentially significant impacts to special status birds (Coopers hawk,
Sharp -shinned hawk, Vaux's swift, Allen's hummingbird, Olive sided flycatcher, and oak titmouse) by limiting
vegetation removal, requiring pre -construction surveys, avoidance using protective buffers, and monitoring of
any identified nests.
Mitigation Measure 3.4-4 would reduce potentially significant impacts to special -status plants by requiring
protocol -level preconstruction surveys, adjusting design to avoid, and consultation with CDFW and USFWS to
ensure no net loss of habitat or individuals.
Mitigation Measure 3.4-5 would reduce potentially significant impacts to wetlands by requiring the Distirct to
submit a wetland delineation report to USACE, replace wetlands on a "no net loss" basis, and coordinate with
USACE to obtain a Nationwide or Section 404 Permit, along with Section 401 certification.
Mitigation Measure 3.5-1 would reduce potentially significant impacts to currently unknown archaeological
resources by requiring stop -work and development of appropriate procedures (by a qualified archaeologist) in
the event that an archaeological feature or deposit is discovered during construction.
Mitigation Measure 3.5-2 would reduce potentially significant impacts to human remains by requiring stop -work
and specific procedures, including coroner examination, contact of Native American Heritage Commission, and
treatment requirements, in the event that human remains are uncovered during construction.
Mitigation Measure 3.8-1 would reduce potentially significant impacts related to wildfire hazard by requiring
spark arrestors on all construction/maintenance equipment, cutting of grass and other fuels around construction
sites, prohibiting mechanical construction equipment on Red Flag Warning days, provision of water/fire
extinguishers during construction, prohibiting smoking, and maintenance of fire extinguishers on all vehicles in
the work area.
A reporting or monitoring program must be adopted for measures to mitigate significant impacts at the time the
Negative Declaration is approved, in accord with the requirements of Sec.21081.6 of the Public Resources Code.
Prepared by: Meredith Manning, Senior Planner /G0— ONbE (r-(jr— 31160115
Signature,4/fr /T1f /01fi frI6r ' date
Approved by:
Jane Mark, AICP, Planning Manager i� ' ti----- J I L/s
Signature ate
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 1
MITIGATION MONITORING PROGRAM
FOR
HENDRYS CREEK LONG-TERM MANAGEMENT PLAN
MITIGATION MONITORING PROGRAM CONTENTS
This mitigation monitoring program (MMP) includes a brief discussion of the legal basis and purpose of the
program, a key to understanding the monitoring matrix, discussion and direction regarding noncompliance
complaints, and the mitigation monitoring matrix itself.
LEGAL BASIS AND PURPOSE OF THE MITIGATION MONITORING
PROGRAM
Public Resources Code (PRC) 21081.6 requires public agencies to adopt mitigation monitoring or reporting
programs whenever certifying an environmental impact report or mitigated negative declaration. This
requirement facilitates implementation of all mitigation measures adopted through the California
Environmental Quality Act (CEQA) process.
MONITORING MATRIX
The following page provides a table identifying the mitigations incorporated into the Hendrys Creek Long‐Term
Management Plan (the project). These mitigations are reproduced from the Initial Study/Mitigated Negative
Declaration (IS/MND) for the project. The columns within the tables have the following meanings:
Impact: This column refers to the Initial Study section where the mitigation is discussed.
Mitigation
Measure(s):
This column lists the specific mitigation identified within the Mitigated
Negative Declaration.
Timing: This column identifies at what point in time, review process, or phase the
mitigation will be completed. The mitigations are organized by order in which
they appear in the Mitigated Negative Declaration
Monitoring
Responsibility:
This column references the District department that will ensure
implementation of the mitigation.
Verification: This column will be initialed and dated by the individual designated to confirm
implementation.
Mitigation Monitoring Program Ascent Environmental
2 Mitigation Monitoring Plan
NONCOMPLIANCE COMPLAINTS
Any person or agency may file a complaint asserting noncompliance with the mitigation measures associated
with the project. The complaint shall be directed to the District’s General Manager in written form, providing
specific information on the asserted violation. The General Manager shall cause an investigation and determine
the validity of the complaint; if noncompliance with a mitigation measure has occurred, the General Manager
shall cause appropriate actions to remedy any violation. The complaint shall receive written confirmation
indicating the results of the investigation or the final action corresponding to the particular noncompliance
issue.
Ascent Environmental Mitigation Monitoring Program
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 3
HENDRYS CREEK LONG‐TERM MANAGEMENT PLAN
Impact Mitigation Measure(s) Timing Monitoring Responsibility –
District Department
Verification
(Date & Initials)
Mitigation in
Section IV
Biological
Resources
Mitigation Measure 3.4-1
MROSD shall implement the following measures to avoid and minimize
impacts to California red-legged frog and Foothill yellow-legged frog.
Worker Education Seminar. Prior to conducting any action that
may negatively affect listed species, all staff, contractors and
persons associated with the project shall attended a worker-
education seminar delivered by a qualified MROSD biologist or
other qualified biologist. The seminar shall include written
information regarding California red-legged frog and Foothill
yellow-legged frog identification, natural history and habitat, legal
status, and provisions and penalties under the Endangered
Species Act, as applicable. Names and phone numbers of the
biological monitors and USFWS and CDFW contacts should be
included in the written information. MROSD shall maintain a
signature sheet to document compliance, which will be made
available upon request.
Biological Construction Monitoring. A qualified biologist shall
conduct a pre-activity survey for California red-legged frog and
Foothill yellow-legged frog prior to implementing actions that
include ground disturbance, vegetation removal, or other
activities associated with culvert or crossing removal that could
otherwise harm California red-legged frog or Foothill yellow-
legged frog. A qualified biologist shall inspect the work area while
vegetation and debris is removed during the initial phase of
construction. If no California red-legged frogs or Foothill yellow-
legged frogs are observed during either the pre-activity survey or
during removal of vegetation and debris, then work may proceed
without a qualified biologist present. If California red-legged frogs
or Foothill yellow-legged frog are observed at any time before or
Prior to and during
construction activities
(including
maintenance-related
construction).
MROSD Operations Dept.
(Resource Specialist) with
Planning PM in consultation
with USFWS and CDFW, as
necessary.
Mitigation Monitoring Program Ascent Environmental
Midpeninsula Regional Open Space District
4 Hendrys Creek Long-Term Management Plan IS/Proposed MND
HENDRYS CREEK LONG‐TERM MANAGEMENT PLAN
Impact Mitigation Measure(s) Timing Monitoring Responsibility –
District Department
Verification
(Date & Initials)
during construction within the work area by anyone involved in
the project, work shall cease and USFWS and/or CDFW shall be
contacted for guidance.
Mitigation in
Section IV
Biological
Resources
Mitigation Measure 3.4-2
MROSD shall implement the following measures to avoid and minimize
impacts special-status mammals.
Special-Status Bats. Within 30-days prior to initiating ground
disturbance or vegetation removal, a qualified bat biologist shall
inspect the area of disturbance and areas adjacent (within 50
feet) for bat roosts (most likely mature trees and snags and
possibly (although unlikely) under the small bridges spanning
Hendrys Creek. Surveys will consist of a daytime pedestrian
survey looking for evidence of bat use (e.g., guano) and/or an
evening emergence survey to note the presence or absence of
bats. The type of survey will depend on the condition of the
habitat. If no bat roosts are found (excluding the bat houses),
then no further study is required. If evidence of bat use is
observed, the number and species of bats using the roost will be
determined. Bat detectors may be used to supplement survey
efforts, but are not required. If roosts of pallid or western red, bats
are determined to be present within the survey area, direct
disturbance to the roost, such as tree removal or bridge
replacement that are occupied by bats, shall be avoided during
the breeding season (April 1 through August 31). The bat roosts
will not be disturbed.
San Francisco Dusky-Footed Woodrat. Within 30 days prior to
project construction, a qualified biologist shall inspect the
Prior to construction
activities.
MROSD Operations Dept.
(Resource Specialist) with
Planning PM in consultation
with CDFW, as necessary.
Ascent Environmental Mitigation Monitoring Program
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 5
HENDRYS CREEK LONG‐TERM MANAGEMENT PLAN
Impact Mitigation Measure(s) Timing Monitoring Responsibility –
District Department
Verification
(Date & Initials)
disturbance area and adjacent areas within 50 feet for woodrat
houses. If none are found, then no additional measures are
necessary. If a woodrat house is identified within 50 feet of the
work area, an exclusion zone shall be erected around the existing
woodrat houses using flagging or a temporary fence that does
not inhibit the natural movements of wildlife (such as steel T-
posts and a single strand of yellow rope or similar materials). The
work area shall be relocated as necessary to avoid impacting
woodrat houses, even if avoidance is by only a few feet. If
woodrat houses cannot be avoided by the trail, CDFW shall be
contacted for approval to relocate individuals by live-trapping and
building a nearby artificial house as a release site. Approval to
relocate shall be acquired from CDFW.
Mitigation in
Section IV
Biological
Resources
Mitigation Measure 3.4-3
MROSD shall limit vegetation removal to the minimum necessary to
conduct the project. For all construction activities that could result in
potential noise and other land disturbances that could affect nesting birds
(e.g., tree removal, mowing, mastication, brush removal), the construction
area shall be surveyed to evaluate the potential for nesting birds. Tree
removal will be limited, whenever feasible, based on the presence or
absence of nesting birds. For all other construction activities, if birds
exhibiting nesting behavior are found within the treatment sites during the
bird nesting season (March 15 – August 30 for smaller bird species such
as passerines and February 15 - August 30 for raptors) impacts on
nesting birds will be avoided by the establishment of appropriate buffers
around active nests. The distance of the protective buffers surrounding
each active nest site are: 500 feet for large raptors such as buteos, 250
feet for small raptors such as accipiters, and 250 feet for passerines. The
size of the buffer may be adjusted by an MROSD biologist in consultation
Before, during, and
after construction.
MROSD Operations Dept.
(Resource Specialist) with
Planning PM in consultation
with USFWS and CDFW, as
necessary.
Mitigation Monitoring Program Ascent Environmental
Midpeninsula Regional Open Space District
6 Hendrys Creek Long-Term Management Plan IS/Proposed MND
HENDRYS CREEK LONG‐TERM MANAGEMENT PLAN
Impact Mitigation Measure(s) Timing Monitoring Responsibility –
District Department
Verification
(Date & Initials)
with CDFW and USFWS depending on site specific conditions.
Monitoring of the nest by an MROSD biologist during and after
construction activities will be required if the activity has potential to
adversely affect the nest. Construction may resume in these areas after
an MROSD biologist or designated biological monitor confirms that the
young have fully fledged, are no longer being fed by the parents, and
have left the nest site. For construction activities that clearly would not
have adverse impacts to nesting birds (e.g. non-powered hand tool work),
no survey for nesting birds would be required.
Mitigation in
Section IV
Biological
Resources
Mitigation Measure 3.4-4
MROSD shall implement the following measures to avoid and minimize
impacts to special-status plants.
MROSD shall utilize qualified staff or a contractor to conduct
protocol-level preconstruction special-status plant surveys for all
potentially occurring species within the project footprint that has
not previously been surveyed. Prior to ground-disturbance or
vegetation management in potentially suitable habitat, surveys
shall be conducted during the appropriate blooming period when
they are most readily identifiable in accordance with Protocols for
Surveying and Evaluating Impacts to Special Status Native Plant
Populations and Natural Communities (DFG 2009). If no special-
status plants are found during focused surveys, the findings shall
be documented in a letter report, and no further mitigation shall
be required.
If special-status plant populations are present in the project
footprint, MROSD shall determine if the population can be
avoided by adjusting the project design.
Prior to construction. MROSD Operations Dept.
(Resource Specialist) with
Planning PM in consultation
with CDFW and/or USFWS, as
necessary.
Ascent Environmental Mitigation Monitoring Program
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 7
HENDRYS CREEK LONG‐TERM MANAGEMENT PLAN
Impact Mitigation Measure(s) Timing Monitoring Responsibility –
District Department
Verification
(Date & Initials)
If the impact to special-status plants cannot be avoided, MROSD
shall consult with CDFW or USFWS, as appropriate depending
on species’ status, to determine the appropriate measures to
ensure no net loss of occupied habitat or individuals. These
measures may include preserving and enhancing existing
populations, creation of off-site populations on project mitigation
sites through seed collection or transplantation, and/or restoring
or creating suitable habitat in sufficient quantities to achieve the
no-net-loss standard.
Mitigation in
Section IV
Biological
Resources
Mitigation Measure 3.4-5
MROSD operates under a special agreement known as “Waste
Discharge Requirements and Section 401 Water Quality Certifications for
Routine Maintenance Activities (Order No. R2-2010-0083)” with the
California Regional Water Quality Control Board. In addition, MROSD
holds a similarly-structured agreement known as the Final Lake or
Streambed Alteration Agreement (Notification No. 1600-2012-0444-R3)
District-wide Routine Maintenance Agreement with the California
Department of Fish and Wildlife. A portion of the work proposed under
this project will apply under these two permitting authorities and
agreements; the remainder of the project work will comply with the
following measures to compensate for the temporary loss of wetlands and
other waters of the United States:
MROSD will submit a wetland delineation report to USACE and
request a preliminary jurisdictional determination. Based on the
jurisdictional determination, MROSD will determine the exact
acreage of waters of the U.S. and waters of the state that would
be filled as a result of project implementation.
Prior to construction
activities near or within
a wetland or other
waters of the U.S.
MROSD Operations Dept.
(Resource Specialist) with
Planning PM in consultation
with USACE.
Mitigation Monitoring Program Ascent Environmental
Midpeninsula Regional Open Space District
8 Hendrys Creek Long-Term Management Plan IS/Proposed MND
HENDRYS CREEK LONG‐TERM MANAGEMENT PLAN
Impact Mitigation Measure(s) Timing Monitoring Responsibility –
District Department
Verification
(Date & Initials)
MROSD will replace on a “no net loss” basis (minimum 1:1 ratio)
(in accordance with USACE and/or RWQCB) the acreage and
function of all wetlands and other waters that would be removed,
lost, or degraded as a result of project implementation. Wetland
habitat will be restored on-site as determined during the Section
401 and Section 404 permitting processes.
MROSD will coordinate with the USACE to obtain either a
Nationwide Permit or a USACE Section 404 Permit and RWQCB
Section 401 certification before any groundbreaking activity within
50 feet of any wetland or water of the United States. MROSD will
implement all permit conditions.
Mitigation in
Section V
Cultural
Resources
Mitigation Measure 3.5-1
In the event that any prehistoric or historic-era subsurface archaeological
features or deposits are discovered during construction, all ground-
disturbing activity within 100 feet of the find shall be halted and a qualified
professional archaeologist shall be retained to assess the significance of
the find. If the find is determined to be significant by the qualified
archaeologist (i.e., because it is determined to constitute either an
historical resource or a unique archaeological resource), the
archaeologist shall develop appropriate procedures to protect the integrity
of the resource and ensure that no additional resources are affected.
Procedures could include but would not necessarily be limited to
preservation in place, archival research, subsurface testing, or contiguous
block unit excavation and data recovery. If the archaeologist determines
that some or all of the affected property qualifies as a Native American
Cultural Place, including a Native American sanctified cemetery, place of
worship, religious or ceremonial site, or sacred shrine (Public Resources
Code Section 5097.9) or a Native American historic, cultural, or sacred site,
During construction. MROSD Operations Dept.
(Resource Specialist) with
Planning PM
Ascent Environmental Mitigation Monitoring Program
Midpeninsula Regional Open Space District
Hendrys Creek Long-Term Management Plan IS/Proposed MND 9
HENDRYS CREEK LONG‐TERM MANAGEMENT PLAN
Impact Mitigation Measure(s) Timing Monitoring Responsibility –
District Department
Verification
(Date & Initials)
that is listed or may be eligible for listing in the California Register of
Historical Resources pursuant to Public Resources Code Section 5024.1,
the archaeologist shall recommend, and MROSD shall implement,
potentially feasible procedures that would preserve the integrity of the site
or minimize impacts on it.
Mitigation in
Section V
Cultural
Resources
Mitigation Measure 3.5-2
In accordance with the California Health and Safety Code, if human
remains are uncovered during ground-disturbing activities, the foreman
shall immediately halt potentially damaging excavation in the area of the
burial and notify the County Coroner and a professional archaeologist to
determine the nature of the remains. The coroner is required to examine
all discoveries of human remains within 48 hours of receiving notice of a
discovery on private or state lands (Health and Safety Code Section
7050.5[b]). If the coroner determines that the remains are those of a
Native American, he or she must contact the Native American Heritage
Commission by phone within 24 hours of making that determination
(Health and Safety Code Section 7050[c]). Following the coroner’s
findings, the archaeologist, and the NAHC-designated Most Likely
Descendent shall determine the ultimate treatment and disposition of
the remains and take appropriate steps to ensure that additional human
interments are not disturbed. The responsibilities for acting upon
notification of a discovery of Native American human remains are
identified in California Public Resources Code Section 5097.94.
During construction. MROSD Operations Dept.
(Resource Specialist) with
Planning PM
Mitigation in
Section VIII
Hazards and
Hazardous
Materials
Mitigation Measure 3.8-1
To further reduce the potential for wildland fire ignition, the following
additional mitigation measure is required:
During construction
and maintenance
activities
MROSD Administration and
Operations Depts.
Mitigation Monitoring Program Ascent Environmental
Midpeninsula Regional Open Space District
10 Hendrys Creek Long-Term Management Plan IS/Proposed MND
HENDRYS CREEK LONG‐TERM MANAGEMENT PLAN
Impact Mitigation Measure(s) Timing Monitoring Responsibility –
District Department
Verification
(Date & Initials)
To reduce fire ignition risk, MROSD currently requires the
following measures for all maintenance and construction
activities:
All equipment to be used during construction and
maintenance activities must have an approved spark
arrestor.
Grass and fuels around construction sites where
construction vehicles are allowed to be parked will be cut or
reduced.
Mechanical construction equipment that can cause an
ignition will not be used when the National Weather Service
issues a Red Flag Warning for the San Francisco Bay
Area.
Hired contractors shall be required to:
Provide water and/or fire extinguisher to suppress
potential fires caused by the work performed.
Remind workers that smoking is prohibited at the work
site and on any MROSD land per contract conditions
and MROSD Ordinance.
Maintain working ABC fire extinguishers on all vehicles
in the work area.
Resolutions/2015/15-___Hendrys Creek – Adopt MND 1
RESOLUTION NO. 15-____
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA
REGIONAL OPEN SPACE DISTRICT ADOPTING A MITIGATED NEGATIVE
DECLARATION INCLUDING A MITIGATION MONITORING PROGRAM IN
CONNECTION WITH THE PURCHASE OF THE PENINSULA OPEN SPACE TRUST
(POST) HENDRYS CREEK PROPERTY AS AN ADDITION TO THE
SIERRA AZUL OPEN SPACE PRESERVE
I. The Midpeninsula Regional Open Space District (“MROSD”) is a lead agency, as
provided for under section 21067 of the California Environmental Quality Act (CEQA,
Public Resources Code sections 21000 et seq.).
II. The Board of Directors of MROSD has reviewed the proposed POST Hendrys Creek
Property Purchase (“Project”) as an addition to the Sierra Azul Open Space Preserve.
III. An Initial Study and Mitigated Negative Declaration (collectively referred to as the
MND), attached to the MROSD Board Report, dated May 13, 2015, and incorporated
into this Resolution as if fully set forth herein; was prepared for the Project pursuant to
the requirements of the California Environmental Quality Act (CEQA, Public Resources
Code sections 21000 et seq.) and the CEQA Guidelines (14 Cal. Code. Regulations
sections 15000 et seq.).
IV. A Notice of Intent (NOI) to adopt a MND was distributed to the California Office of
Planning and Research’s State Clearinghouse, interested agencies, individuals, adjacent
property owners, and nearby residents, and posted in a general circulation newspaper, at
the County of Santa Clara Clerk Recorder’s Office, and on the MROSD website,
notifying all interested parties of the availability and 30‐day public review period of the
MND from March 20, 2015 to April 20, 2015. Copies of the full MND were available on
the MROSD website, at the MROSD Administrative Office at 330 Distel Circle, Los
Altos, CA 94022, at the Santa Clara Valley Water District Headquarters at 5750 Almaden
Expressway, San Jose, CA 95118, and printed copies were available upon request.
V. The MND identified potentially significant adverse impacts on the environment,
including specific impacts to Biological Resources, Cultural Resources, and Hazards and
Hazardous Materials, and found that mitigation for the proposed Project would avoid or
mitigate these impacts to below a level of significance by adoption and implementation
of the proposed mitigation measures as part of the Project and through implementation of
the Mitigation Monitoring Program (MMP).
VI. A Mitigation Monitoring Program was prepared to ensure compliance with the MND’s
mitigation measures and attached to the MROSD Board Report, dated May 13, 2015, and
incorporated into this Resolution as if fully set forth herein.
VII. On May 13, 2015, the Board of Directors of MROSD conducted a duly noticed public
meeting whereby all oral and written comments received during the public review period
ATTACHMENT 5
Resolutions/2015/15-___Hendrys Creek – Adopt MND 2
and a staff recommendation for approval of the MND were presented to the Board of
Directors of MROSD. The Board of Directors of MROSD reviewed and considered the
information in the MND, administrative record, and Staff Reports for completeness and
compliance with CEQA and the CEQA Guidelines.
NOW, THEREFORE, BE IT RESOLVED that, based upon the Initial Study, Mitigated Negative
Declaration, Mitigation Monitoring Program, all comments received, and all substantial evidence
in light of the whole record presented, the MROSD Board of Directors finds that:
1. The MND and NOI were prepared and publicly noticed in accordance with all legal
requirements pursuant to the California Environmental Quality Act (CEQA, Public
Resources Code sections 21000 et seq.) and the CEQA Guidelines (14 Cal. Code.
Regulations sections 15000 et seq.).
2. All interested parties desiring to comment on the MND were given the opportunity to
submit oral and written comments on the adequacy of the MND prior to this action by
the MROSD Board of Directors and all comments raised during the public comment
period and at the public meeting on the MND were responded to adequately.
3. Prior to approving the Project, the MROSD Board has considered the MND, along with
all comments received during the public review process.
4. The MND identified all potentially significant impacts to the environment and finds
potentially significant impacts will be mitigated to less than significant or avoided by
adoption of the mitigation measures as described in the MND as part of the Project and
through implementation of the MMP.
5. The MROSD Board finds that, on the basis of the whole record before it, including the
MND and all comments received, there is no substantial evidence that the Project will
have a significant effect on the environment in that, although the Project could have a
significant effect on the environment, there will not be a significant effect since
Mitigation Measures have been made a part of the Project to avoid such effects.
6. The MROSD Board determines that the MND reflects MROSD’s independent
judgment and analysis and adopts the MND.
7. The MROSD Board adopts the MMP and finds that contractual documents between the
MROSD and the Santa Clara Valley Water District ensure that these mitigation
measures are fully enforceable conditions on the Project and shall be implemented as
part of the Project.
8. The location and custodian of the documents or other material which constitute the
record of proceedings upon which this decision is based are located at the offices of the
General Manager of the Midpeninsula Regional Open Space District, 330 Distel Circle,
Los Altos, California 94022.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
Resolutions/2015/15-___Hendrys Creek – Adopt MND 3
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space
District on _____, 2015, 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 Interim 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.
Interim District Clerk
RESOLUTION 15-____
RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL
OPEN SPACE DISTRICT AUTHORIZING ACCEPTANCE OF A MEMORANDUM
OFAGREEMENT, AUTHORIZING THE GENERAL MANAGER OR OTHER OFFICER TO
EXECUTE A CERTIFICATE OF ACCEPTANCE OF GRANT DEED TO DISTRICT,
AUTHORIZING THE GENERAL MANAGER OR OTHER OFFICER TO EXECUTE THE
CONSERVATION EASEMENT DEED, AND AUTHORIZING GENERAL MANAGER TO
EXECUTE ANY AND ALL OTHER DOCUMENTS NECESSARY OR APPROPRIATE TO
THE CLOSING OF THE TRANSACTION (SIERRA AZUL OPEN SPACE PRESERVE -
LANDS OF PENINSULA OPEN SPACE TRUST HENDRYS CREEK PROPERTY)
The Board of Directors of Midpeninsula Regional Open Space District does resolve as follows:
SECTION ONE. The Board of Directors of Midpeninsula Regional Open Space District
(”MROSD”) does hereby accept the offer contained in that certain Memorandum of
Understanding between Peninsula Open Space Trust, Santa Clara Valley Water District, and the
Midpeninsula Regional Open Space District, a copy of which 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 Memorandum of Agreement and all related transactional
documents on behalf of the District to acquire the real property described therein (the “Hendrys
Creek Property”).
SECTION TWO. 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 THREE. The General Manager, President of the Board of Directors, or other
appropriate officer is authorized to execute a Conservation Easement Deed for the real property
rights being conveyed to Santa Clara Valley Water District.
SECTION FOUR. The General Manager or the General Manager’s designee shall cause to be
given appropriate notice of acceptance to the seller and to extend escrow if necessary.
SECTION FIVE. The General Manager or the General Manager’s designee is authorized to
expend up to $5,000.00 to cover the cost of title insurance, escrow fees, and other miscellaneous
costs related to this transaction.
SECTION SIX. The General Manager and General Counsel are further authorized to approve
any technical revisions to the attached Agreement and documents, which do not involve any
material change to any term of the Agreement or documents, which are necessary or appropriate
to the closing or implementation of this transaction.
SECTION SEVEN. The purpose of this Section is to enable MROSD to reimburse its general
fund for the cost of certain land acquisitions. MROSD wishes to finance certain of these real
property acquisitions and expects to use tax-exempt debt, such as bonds, but a tax-exempt
financing is not cost-justified for MROSD unless the principal amount of the financing is large
enough to justify the related financing costs. Consequently, it is MROSD’s practice to buy
property with its general funds and, when a tax-exempt financing is cost-justified based on the
aggregate value of acquisitions, to issue tax-exempt obligations to reimburse itself for previous
expenditures of general funds. These general funds are needed for operating and other working
ATTACHMENT 6
capital needs of MROSD and are not intended to be used to finance property acquisitions on a
long-term basis.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional
Open Space District on _____, 2015, 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 Interim 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.
Interim District Clerk