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HomeMy Public PortalAbout20140828 - Agenda Packet - Board of Directors (BOD) - 14-23 SPECIAL MEETING BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Administrative Office – Board Room 330 Distel Circle, Los Altos, CA 94022 Thursday, August 28, 2014 SPECIAL MEETING BEGINS AT 5:00 A G E N D A 5:00 SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT – STUDY SESSION ROLL CALL 1. Overview of Measure AA Implementation Process (R-14-113) Staff Contact: Ana Ruiz, Assistant General Manager General Manager’s Recommendation: 1. Receive an informational presentation on the Measure AA implementation process, including an overview of the different major implementation components, their coordination and sequencing over the next two years, progress on Measure AA projects (to date and through the end of Fiscal Year 2014-15), and potential strategies to streamline project delivery. 2. Confirm level of full Board involvement and oversight on implementation of Measure AA over the next two years as set out in the staff report. 3. Direct the formation of a new Measure AA Implementation Ad Hoc Committee to provide the General Manager with strategic guidance during this next year on the initiation of new processes for the effective implementation and delivery of Measure AA projects. ADJOURNMENT 7:00 SPECIAL MEETING OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT ORAL COMMUNICATIONS – PUBLIC ADOPTION OF AGENDA SPECIAL ORDER OF THE DAY Presentation of Proclamation to Peninsula Open Space Trust Presentation of Proclamation to Save the Redwoods Meeting 14-23 Presentation of Proclamation to Committee for Green Foothills Presentation of Proclamation to Sempervirens Fund Presentation of Proclamation to Greenbelt Alliance CONSENT CALENDAR 1. Approve Minutes of the August 13, 2014 Regular Board Meeting 2. Approve Claims Report 3. Resolution Honoring East Bay Regional Park District Staff Contact: Shelly Lewis, Public Affairs Manager General Manager’s Recommendation: Adopt the resolution honoring and commending the East Bay Regional Park District on its 80th anniversary. 4. Amend Contract with Ascent Environmental for the Integrated Pest Management Program (R-14-109) Staff Contact: Cindy Roessler, Senior Resource Management Specialist General Manager’s Recommendation: Authorize the General Manager to amend the professional services contract with Ascent Environmental for the Integrated Pest Management Program to increase the total contract amount by $15,698 to a not to exceed amount of $332,065, for consultation regarding safety of pesticides and for revisions to the program documents. BOARD BUSINESS 5. Response to the 2013-14 Management Letter from the Auditor (R-14-110) Staff Contact: Michael Foster, Controller and Andrew Taylor, Accountant General Manager’s Recommendation: Accept the response to the Management Letter from the District Auditor, Chavan & Associates, received July 30, 2014. 6. Professional Services Contract Authorization for a Financial and Operational Sustainability Model Study (R-14-112) Staff Contact: Kevin Woodhouse, Assistant General Manager General Manager’s Recommendation: Authorize the General Manager to enter into a professional services contract with Management Partners, of San Jose, CA, for a not-to-exceed amount of $118,690, which includes the project proposal amount of $107,900 and a ten percent contingency amount of $10,790, to complete a Financial and Operational Sustainability Model Study. 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. A. Committee Reports B. Staff Reports C. Director Reports ADJOURNMENT TO ADDRESS THE BOARD: The President will invite public comment on agenda items at the time each item is considered by the Board of Directors. You may address the Board concerning other matters during Oral Communications. Each speaker will ordinarily be limited to three minutes. Alternately, you may comment to the Board by a written communication, which the Board appreciates. Consent Calendar: All items on the Consent Calendar may be approved without discussion by one motion. Board members, the General Manager, and members of the public may request that an item be removed from the Consent Calendar during consideration of the Consent Calendar. In compliance with the Americans with Disabilities Act, if you need assistance to participate in this meeting, please contact the District Clerk at (650) 691-1200. Notification 48 hours prior to the meeting will enable the District to make reasonable arrangements to ensure accessibility to this meeting. Written materials relating to an item on this Agenda that are considered to be a public record and are distributed to Board members less than 72 hours prior to the meeting, will be available for public inspection at the District’s Administrative Office located at 330 Distel Circle, Los Altos, California 94022. CERTIFICATION OF POSTING OF AGENDA I, Jennifer Woodworth, District Clerk for the Midpeninsula Regional Open Space District (MROSD), declare that the foregoing agenda for the Regular Meeting of the MROSD Board of Directors was posted and available for review on August 22, 2014, 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 this 22nd day of August, 2014, at Los Altos, California. R-14-113 Meeting 14-23 August 28, 2014 STUDY SESSION ITEM 1 AGENDA ITEM Overview of Measure AA Implementation Process GENERAL MANAGER’S RECOMMENDATIONS 1. Receive an informational presentation on the Measure AA implementation process, including an overview of the different major implementation components, their coordination and sequencing over the next two (2) years, progress on Measure AA projects (to date and through the end of Fiscal Year 2014-15), and potential strategies to streamline project delivery. 2. Confirm level of full Board involvement and oversight on implementation of Measure AA over the next two (2) years as set out in the staff report. 3. Direct the formation of a new Measure AA Implementation Ad Hoc Committee to provide the General Manager with strategic guidance during this next year on the initiation of new processes for the effective implementation and delivery of Measure AA projects. SUMMARY Following the passage of Measure AA on June 3, 2014, the District has outlined the implementation process and identified the critical components that are needed over the next two years to implement Measure AA. Included among the critical components are: prioritization and scheduling of Measure AA projects; completion of a Financial and Operational Sustainability Model study; determination of the initial bond issuance size and schedule; integration of Measure AA projects into the annual Action Plan, Budget, and 5-Year Capital Improvement Plan; and formation of the Bond Oversight Committee. In addition, the District will be evaluating strategies to streamline project delivery in order to successfully meet the timeline commitments of Measure AA, deliver the project priorities in a sustainable manner, and demonstrate timely implementation success to the public. The purpose of this Study Session is to provide an overview of the above Measure AA implementation efforts, both planned and under way, to familiarize the Board on the overall process and anticipated next steps. R-14-113 Page 2 BACKGROUND Measure AA was approved by more than 2/3 of the electorate on June 3, 2014. Passage of Measure AA authorizes the Midpeninsula Regional Open Space District (District) to issue up to $300 million in bonds at a tax rate not to exceed $3.18 per $100,000 of assessed property value to specifically implement the Vision Plan Top 25 Priority Actions. These Priority Actions, which were developed as part of a robust public visioning process, will improve hiking and biking access; protect and preserve redwood forests, natural open spaces, the scenic beauty of our region and coastline, and critical wildlife habitat; restore creeks to protect water quality; and reduce forest fire risk. Consistent with Measure AA’s Ordinance and Expenditure Plan, expenditures will be verified annually by a seven-member, at-large, bond oversight committee. Anticipating the possible successful outcome to Measure AA, the District identified a number of important next steps that would follow passage of the bond measure and included these steps as Key Projects in the Board-approved Fiscal Year (FY) 2014-15 Action Plan (R-14-38 and R-14- 59). DISCUSSION Following the successful passage of Measure AA, the public, as well as the District’s Board of Directors (Board), have asked how the District will proceed with implementing Measure AA, including: 1. Implementation schedule and sequencing of Measure AA projects 2. Timing and size of the first bond issuance 3. Formation of the Bond Oversight Committee 4. Incorporation of Measure AA projects into the District’s annual 5-Year Capital Improvement Plan (CIP), Action Plan, and Budget The purpose of this report and the August 28 Study Session is to clarify the Measure AA implementation process as currently envisioned over the next two (2) years, including key points of Board involvement and direction, as well as the necessary coordination and sequencing of the key implementation components. The August 28 Study Session will also prepare the Board for two upcoming study sessions when specific project components will be discussed in greater detail - one on September 10 to present and discuss the draft Measure AA project prioritization criteria, and the second on September 24 to present and discuss the recommended formation process and structure for the Bond Oversight Committee. Measure AA Implementation Components, Inter-dependencies, and Process Flow Successful implementation of Measure AA requires well-coordinated sequencing of several significant process flow components. The work flow and inter-dependencies of each are graphically displayed in Attachment 1, Flow Diagram of Measure AA Implementation Process, and further described below. R-14-113 Page 3 Measure AA Projects (Project Prioritization and Scheduling) • Development of Measure AA prioritization criteria Measure AA calls for the implementation of the 25 Top Vision Plan Priority Actions (portfolios) over the next 20 to 30 years. Each of these 25 Vision Plan portfolios includes many projects. The District is beginning to develop prioritization criteria to guide decisions about the timing for implementation of these projects. • Development of 5-year Measure AA project list with 6-10 year horizon Once the Board accepts the prioritization criteria, an implementation schedule will be developed that includes Measure AA projects for years 1 - 5, and a list of future projects for the 6 - 10 year horizon. This 5-year Capital Improvement Plan with a 6-10 year horizon for Measure AA portfolios will keep projects flowing, ensure sufficient resources are available over the course of the implementation time span for each project, and keep the District looking ahead as items are checked off the Measure AA implementation list. Nonetheless, this Measure AA implementation schedule will need to remain flexible to allow the District to quickly respond to new Measure AA-relevant opportunities as they arise (e.g. a new property purchase that was not previously scheduled during that year, and instead assumed to occur later in the 20-30 year implementation timeline). Moreover, this Measure AA implementation schedule will be subject to annual Board review as part of the annual Action Plan and Budget process to determine if any adjustment should be made based on new conditions. Financial and Operational Sustainability Model (FOSM) • Implementation of the FOSM study The purpose of the study is to evaluate existing District workflow processes, staff capacity, and organizational structure and identify options to accelerate completion of high priority projects, including Measure AA projects, while continuing to carry out the daily on-going business of the District in a financially prudent and sustainable manner. Results and recommendations from the study would be considered by District management and inform the General Manager’s organizational improvement recommendations to the Board. • Scope of work 1) Develop and analyze critical organizational structure, workflow, and staffing questions; 2) Study the District’s existing financial and organizational conditions; 3) Research and evaluate other similar agencies’ and industry standard best practices; and 4) Develop a set of options for improvements with relative advantages and disadvantages for each. Annual Action Plan and Budget Development • Integration with Annual Action Plan, Budget, and 5-Year Capital Improvement Plan The first set of Measure AA projects that are identified for years 1-5 will be folded into the District’s 5-Year Capital Improvement Plan and the annual Action Plan and Budget. As part of the Mid-Year and Year-End Action Plan and Budget Review (typically R-14-113 Page 4 scheduled for November and May, respectively), the Board will receive a status update on the progress and accomplishments made for each Measure AA project that is listed as part of that fiscal year. Bond Issuance • Determination of Bond Issuance Size (amount requested for first 3 years) Once the Measure AA project list for years 1-5 are identified, those projects that will be implemented over the course of the first 3 years will be grouped. The District will then estimate the project costs for this 3 year time frame, including resource loading requirements. The total anticipated Measure AA implementation cost for the 3-year timeframe will then be used to identify the Bond Issuance Amount to be requested as part of the first bond sale. • Bond Sale The first Bond Sale is currently scheduled to occur during the Spring of 2015. Proceeds from this bond sale will be used to fund projects over a 3-year timeframe, and proceeds can be applied to reimburse the District for costs incurred to date as of May 11, 2014 on Measure AA eligible projects that the District is currently working on as part of this fiscal year (refer to section of Progress Underway on Measure AA Projects, and Attachment 2 for more information on eligible projects). On July 9, 2014, the Board approved a Resolution declaring its intention to reimburse expenditures from the proceeds of General Obligation Bonds, permitting the District to be reimbursed for Measure AA expenditures made no earlier than 60 days from the date of the resolution (thus May 11, 2014), and not later than 18 months after the expenditures are paid. This Resolution was adopted to meet the official intent requirement per the IRS and U.S. Treasury regulations (R-14-92). Bond Oversight Committee (BOC) • BOC Formation and Annual Review of Expenditures Measure AA authorized the formation of a Bond Oversight Committee (BOC) comprised of seven members, who are District residents, to verify expenditures of bond proceeds. The BOC will meet annually to review the District’s Annual Audit and Annual Accountability report, verify conformity of District expenditures with the Expenditure Plan adopted in Measure AA, and present the BOC’s findings to the Board. The BOC may also meet as needed to review any proposed amendments to the Expenditure Plan. Prior to formation, the Board will need to review and adopt the BOC’s bylaws outlining its duties, process for appointment, member terms, etc. The BOC is intended to review and verify expenditures after they have been incurred by the District. Therefore, the core work for the BOC would not begin until one year after the first bond sale (following the close of FY2015-16). Progress Underway on Measure AA Projects As part of this forward-looking two-year overview on the Measure AA Implementation Process, it is important to note that progress is already underway on a number of Measure AA projects. These projects were included as part of the Fiscal Year (FY) 2014-15 Action Plan, as approved by the Board on March 26, 2014 (R-14-59). R-14-113 Page 5 Of the 96 projects approved in the FY2014-15 Action Plan, 24 of them are elements of the 25 Top Priority Actions listed in the Measure AA Expenditure Plan. Within these 24 projects are: construction of the Mount Umunhum Summit Trail at Sierra Azul OSP, securing of a Bay Trail Easement north of Ravenswood OSP, development of the Mindego Ranch Aquatic Species Management Plan at Russian Ridge OSP, demolition of abandoned structures at Sierra Azul OSP, and installation of new grazing infrastructure at La Honda Creek OSP (please refer to Attachment 2 for the complete project list). The Board-approved budget for these 24 projects totals $9.0M, of which all expenditures incurred as of May 11, 2014 that are not reimbursed through a separate grant may be eligible for reimbursement through Measure AA funds. At this time, estimated projected expenditures that may be eligible for Measure AA funds total $8.7M. Potential Strategies to Streamline Measure AA Project Delivery To meet the commitments under Measure AA, the District is evaluating various administrative, project management, and project flow strategies to streamline overall project delivery as listed below. Some of these strategies can be implemented internally and with minimal delay. Others require outside partnerships, additional data collection and analysis, and/or more substantial internal restructuring and training. Internal Processes • Efficiencies in internal processes and work flows based on recommendations from the FOSM study • Development of focused site plans versus comprehensive master plans to facilitate shorter implementation timeframes • Streamlined CEQA review and analysis • Additional project management and/or construction management expertise to facilitate consistent and expedited capital project delivery (i.e. standardized practices, training, construction contract revisions, etc.) • Contract and budget efficiencies with flexibility to use supplemental work allowances and contingencies to meet project delivery schedules • Improved accounting system design and reporting structure for project management through the District’s Integrated Accounting Finance Software (IAFS) Streamlined Board Review and Approval Processes • Expanded use of Board Committees for reviews and recommendations to the full Board • Focus on use of consent calendar to create more time for Board discussion of non-routine items • Use of informational reports to the Board on project implementation to enhance the Board’s understanding of a project’s overall scope, schedule, and budget • Improved Board understanding of critical project implementation timelines and time- critical decision-making to fulfill project delivery schedules to meet Measure AA requirements • Streamlined public process to inform Board decision-making to meet project delivery schedules and Measure AA requirements R-14-113 Page 6 External Processes • Continued collaboration with San Mateo County to streamline permitting process and standardize permitting requirements (i.e. use of Master Grading Permit or update of grading ordinance to include exceptions similar to that of Santa Clara County) • Streamlined permit review and oversight by regulatory agencies Recommended Level of Full Board Oversight on Measure AA Implementation The implementation process developed for Measure AA includes important steps, milestones, and deliverables, as well as the recommended check-ins and approvals from the full Board. These were carefully identified and deliberately included to ensure Board guidance on policy issues to align the implementation process with Board priorities and goals. The means for implementing the Board’s priorities and goals are the responsibility of the General Manager. The recommended level of full Board involvement as described below and in the attached flow chart allows for important milestones to be accomplished on time to meet bond requirements and achieve the highest return on the Measure AA eligible expenses incurred as of May 11, 2014. In addition to timely and thorough staff work, disciplined review and action by the Board is essential to meet project implementation schedules, especially as they relate to requirements for spending bond proceeds. Recommended Key Milestone Reviews and Approvals by the Full Board Project Implementation (including Scheduling) • Review and confirm Measure AA prioritization criteria • Review and approve the Measure AA project list (years 1-5, and draft 6-10 horizon) • Approve Use and Management Plans, Amendments, and New Purchases to allow for new land acquisitions, public access facilities, and other site improvements. • Approve all implementation contracts over $25,000 (includes contracts placed on the Board consent calendar) Annual Action Plan and Budget Development • Approve the 5-Year Capital Improvement Plan and subsequent annual updates • Review and Approve the annual Action Plan and Budget, including any recommended increases in the Operational Budget (staffing, services, supplies) • Receive the Midyear Action Plan and Budget Review providing a status update on projects and expenditures during the first six months of the current fiscal year • Receive the Year-End Action Plan and Budget Review describing the accomplishments and progress made during the prior fiscal year Financial and Operational Sustainability Model (FOSM) • Review and comment on the draft FOSM report and findings • Accept the final FOSM report and findings and approve any related staffing and operational efficiency recommendations through the action plan and budget process, including the mid-year update. R-14-113 Page 7 Bond Sale • Adopt the Bond Resolution and Official Statement indicating the desired funding amount and length of the first bond sale Bond Oversight Committee (BOC) • Review and Approve the BOC role, bylaws, membership composition, and recruitment process • Interview BOC applicants • Vote to select BOC members • Hold BOC Ceremonial Oath of Office • Receive BOC findings of their annual audit verifying Measure AA expenditures Recommended Formation of New Ad Hoc Committee Recognizing that the District is establishing new processes and incorporating new tools to successfully manage and meet the very specific requirements of Measure AA, which is the District's first source of General Obligation Bond revenue in its 44-year history, the General Manager recommends the formation of a Measure AA Implementation Ad Hoc Committee (AA Ad Hoc Committee) for guidance as these processes and tools are developed. The AA Ad Hoc Committee would also provide guidance as the General Manager prepares for upcoming and related public Board Study Sessions to ensure that the information is clear and effectively delivered to facilitate meaningful and productive discussion and clear Board direction. Consistent with Board Policy on Committees, the AA Ad Hoc Committee would be active for only one year following the date of its formation and be charged specifically with providing the General Manager guidance on the development of new processes, the incorporation of new tools, and the preparation of future and related Board meetings to support the successful delivery of Measure AA projects and the first bond issuance during the initial first year of implementation. The AA Ad Hoc Committee would not replace the existing Standing Committees. Therefore, any items that would normally go to a Standing Committee would continue to be reviewed by that Standing Committee. The only difference during this first year of Measure AA implementation is that the item may first go to the AA Ad Hoc Committee for initial guidance. Of note, the Board is reminded that the Capital Finance Ad Hoc Committee that was formed in November 2013 to guide the process for seeking additional sources of funding, including the placement of the General Obligation Bond on June 3, 2014, will be disbanded as its charge has ended and the Committee will soon reach its one year limit. FISCAL IMPACT There is no fiscal impact related to providing an overview on the Measure AA implementation process. Implementation of Measure AA Projects would be funded by the periodic issuance of bonds, as approved by the voters on June 3, 2014. Formation of a new Measure AA Implementation Ad Hoc Committee may result in a modest fiscal impact if the Board selects to make these meetings compensable. Per Board policy on Compensation of Directors and Payment of Expenses, the maximum allowable total compensation per Board member shall be R-14-113 Page 8 one hundred dollars ($100.00) per day and five hundred dollars ($500.00) per calendar month, irrespective of the number of meetings attended each day or each month (Chapter 6, Policy 6.03). The current budget does not include a specific allocation for the proposed new Ad Hoc Committee. PUBLIC NOTICE Notice was provided pursuant to the Brown Act. Members of the public who are part of the Vision Plan notification list were asked to opt-in to be added onto a new Measure AA Implementation notification list, as the vision planning process has ended. Notices were subsequently also sent to the new Measure AA Implementation notification list. CEQA COMPLIANCE This action is not a project under the California Environmental Quality Act (CEQA), and no CEQA analysis is therefore required. NEXT STEPS At the study session scheduled on September 10, 2014, staff will present Prioritization Criteria that will be used to screen and prioritize Measure AA projects over the first 5 years. Following this study session, staff will return to the Board at a future meeting with a list of projects for the first 5 years and for the 6 to 10 year horizon that have been screened through the criteria. The Measure AA project list will inform the bond issuance and the development of the Action Plan, Budget, and 5-year Capital Improvement Plan. At the study session scheduled on September 24, 2014, staff will provide recommended guidelines for the BOC formation, charges, and organization. Following the study session, staff will return to the Board at a future meeting with a resolution to adopt the BOC’s bylaws and formally organize the BOC. Concerning the FOSM Study, a thorough consultant selection process has been completed and authorization to enter into a contract with the top-selected firm is on the Board’s regular business agenda for tonight’s meeting (August 28, 2014). Attachments: 1. Flow Diagram of Measure AA Implementation Process 2. Measure AA Projects Currently Underway Responsible Manager: Steve Abbors, General Manager Prepared by: Ana Ruiz, AICP, Assistant General Manager Prioritization Criteria and Ranking Drafted Confirm Draft Criteria Develop Yrs 1-5 project list with 6-10 horizon Approve Project List PROJECT PRIORITIZATION & SCHEDULING Accept FOSM final report FINANCIAL OPERATIONAL SUSTAINABILITY MODEL (FOSM) Yrs 1-5 Measure AA project list incorporated into 5-year CIP Finalize total amount and length of Bond Issuance ABC Reviews Budget, 5-Yr CIP (M-AA & non M-AA projects) ANNUAL ACTION PLAN & BUDGET DEVELOPMENT Action Plan, Budget & 5- Yr CIP Initial Review Action Plan, Budget & 5-Yr CIP Approval Accept FY15-16 Year End Review (incl. M-AA project accomplishments) Selection of Financial Advisor and Trustee/ Paying Agent Receive Rating Bond Reso & Official Statement Bond SaleBOND ISSUANCE BOC Annual Review Receive BOC FindingsBOC Orientation BOC Oath of Office Select BOC BOC applicant interviews at Special Board Mtg (2) BOC Applications Due BOC openings announced Approve BOC role, bylaws, recruitment Develop BOC structure and recruitment process BOND OVERSIGHT COMMITTEE (BOC) ATTACHMENT 1 MEASURE AA IMPLEMENTATION FLOW CHART AUG 2014 FY15-16 Midyear Review (incl. M-AA project status) SEPT 2014 OCT 2014 JAN 2015 DEC 2014 NOV 2014 FEB 2015 MAR 2015 APR 2015 JUN 2015 MAY 2015 JUL 2015 AUG 2015 SEPT /OCT 2015 NOV / DEC 2015 JAN 2016 MAY / JUN 2016 JULY 2016 Add’l resource loading recomms. developed PROCESS BOARD OVERSIGHTCOMMITTEE REVIEW LEGEND FEB / MAR / APR 2016 Midyear Review documentation prepared Year End Review docs prepared Initial cost estimate informs total amount for May Bond Sale Review Draft FOSM report Yrs 1-5 project list with resource loading and project costs Develop Action Plan, Budget and 5-Yr CIP Resource loading for Yrs 1-5 project list Measure AA project list & initial resource loading folded into FOSM Cost refinements as needed to further refine 5-Yr CIP and Bond Sale amount 8/21/2014 4:48 PM MEASURE AA PROJECTS CURRENTLY UNDERWAY Projects approved by the Board of Directors as part of the Fiscal Year 2014‐15 Action Plan on March 26, 2014 Scope Schedule (Quarterly Milestones & Completion Date) Budget PROGRAM: GREENBELT PRESERVATION Priority 1 New Land Purchases (Core Function) Continue to grow the District's contiguous greenbelt. Pursue the purchase and gift of fee and conservation easement as new land additions to Purisima Creek Redwoods, La Honda Creek, Long Ridge, Sierra Azul FY14-15 $3,900,000 Majority of expenditures as of May 11 eligible for AA funding Real Property Real Property 3, 7, 16, 22, 23, 24, 25 Priority 2 Land Purchase Partnerships (Core Function) Create connections within District lands and with other park and open space lands. Cooperatively work with local land preservation organizations on the following property partnerships: 1. Alpine Ranch - POST 2. Monte Bello - Santa Clara County Parks 3.Bear Creek Redwoods - Santa Clara County Parks FY14-15 $3,100,000 All expenditures as of May 11 eligible for AA funding Real Property Real Property 15, 17, 21 PROGRAM: PUBLIC RECREATION AND ACCESS Priority 1 Mindego Area (Mindego Hill Trail) Provide access to Mindego Hill. Public's first introduction to cattle grazing operations on District lands. Design and permitting complete. Construct trail to top of Mindego Hill. Initiate planning for demolition of structure(s) as required as a condition of the County grading permit to build the trail. Q1-Q2 FY14-15: Construction $80,000 All expenditures as of May 11 eligible for AA funding No Committees, Q4 FY13-14 Board approval for CCC contract or other trailbuilding contract District-Wide 9 Mindego Area (Silva Driveway) To receive final on the Mindego Gateway Project, all outstanding permit issues with the Silva driveway must be resolved. Fire code-related driveway and turnaround upgrades, water tank system, and hydrant. Target completion date is September 2014 to comply with Mindego Gateway MOU. Refer to Real Property Action Plan for remaining house improvements. Q1 FY14-15: Permitting & Bidding Q2 FY14-15: Construction $97,000 (budget carried by Real Property) All expenditures as of May 11 eligible for AA funding No Committees District-Wide 9 Measure AA Priority Action(s)* (Portfolios) Key Project Purpose Board Committee Review Dept Lead Project Description PAGE 1 OF 7 8/21/2014 4:48 PM Scope Schedule (Quarterly Milestones & Completion Date) Budget Measure AA Priority Action(s)* (Portfolios) Key Project Purpose Board Committee Review Dept Lead Project Description PROGRAM: PUBLIC RECREATION AND ACCESS Continued Priority 1 Continued Purisima to the Sea (POST) Acquire new land in the Purisima/Lobitos Creek Watershed corridor to eventually create a Purisima to the Sea trail from Skyline Area Work with private property owner of Purisima Farms property to pursue lot line adjustment separating ownership of upland and private agricultural area of property. FY 14-15 $20,000 All expenditures as of May 11 eligible for AA funding Real Property 3 Potential Access Easements - Mt. Umunhum Obtain improved road access rights along Mt. Umunhum Road Work with neighboring land owners to improve road access easements along Mt. Umunhum Road FY14-15 $50,000 All expenditures as of May 11 eligible for AA funding Real Property 23 Mount Umunhum Public Access Implementation (Bald Mt to summit trail) (Element of the SA/BCR Master Plan project) Provide public multi-use trail access (hiking, biking, equestrian) from new Bald Mtn Staging Area to Mt. Umunhum summit Construct a trail connection between the Umunhum Summit and the yet to be built Bald Mountain staging area. Project is partially funded by State Coastal Conservancy and includes grant administration requirements. Trail construction to be done in segments. Three year completion schedule will accommodate crew scheduling and match timeline of other projects required to open summit. FY14-15: Complete steep section below summit to intersection with old road. FY 15-16: Complete 2nd segment to intersection with 2nd old road, add drainage crossings. FY 16-17: Complete trail from summit to Barlow Road. $25,000 Budget Carried by Planning Dept. Partially funded by Coastal Conservancy Grant with remaining expenditures as of May 11 eligible for AA funding Operations 23 Mt. Um Guadalupe Creek Overlook and Bridges Planning and Design Continue next phase of planning for Mt. Umunhum Trail (associated amenities) Research and design options for destination overlook platform, railings, and seating, and also up to two trail bridges over Guadalupe Creek as part of the Mt. Umunhum Trail. Apply for permits. Q1/Q3 FY14-15 $75,000 All expenditures as of May 11 eligible for AA funding PNR for review of overlook platform design /construction authorization Planning 23 PAGE 2 OF 7 8/21/2014 4:48 PM Scope Schedule (Quarterly Milestones & Completion Date) Budget Measure AA Priority Action(s)* (Portfolios) Key Project Purpose Board Committee Review Dept Lead Project Description PROGRAM: PUBLIC RECREATION AND ACCESS Continued Priority 1 Continued Bear Creek Stables RFP/Lease Create Stable Site Plan and Lease for the Bear Creek Stables 1. Complete development Bear Creek Stables site plan and lease. 2. Identify possible capital improvements for stable area. Q4 FY14-15 $10,000 All expenditures as of May 11 eligible for AA funding Real Property 21 Cooley Landing Previously listed under Long Range Planning Cooley Landing Adding new elements to existing Phase 2 park. Coordinate with City and provide technical assistance during next phase of design (Phase 3 - Education Center). Wrap up outstanding easement/agreement/institutional control agreements with City and other agencies. If asked by City, evaluate the following uses: fishing, kayaking, canoeing. Assist City with other Phases of work, including amendments to U&M Plan and Partnership Agreement. Dependent on City's schedule Tentatively: FY13-14: Planning and design of education center FY14-15 and FY15-16: Construction of education center FY15-16: Future phases $10,000 All expenditures as of May 11 eligible for AA funding Q1 or Q2 FY14- 15 PNR review of use agreement with Menlo Fire, City of EPA, and District District-Wide 2 New SFPUC Bay Trail Easement (RP) and Bay Trail Design Implementation (PL) Previously listed under Long Range Planning Obtain new Bay Trail Easement through lands of SFPUC, and Bay Trail Implementation to complete critical gap in Bay Trail adjacent and partially in Ravenswood Open Space Preserve Obtain concurrence on final trail alignment from SFPUC, complete environmental analysis of Bay Trail alignment, and complete trail easement conveyance by SFPUC. For grant, coordinate with the Cities of East Palo Alto and Menlo Park, and San Francisquito Joint Powers Authority to establish project lead. Deferred: Finalize $400,000 Santa Clara County grant agreement and seek construction grant. Begin planning and design. Begin work on geotechnical surveys, construction documents, and additional public outreach. FY14-15: Easement and CEQA Deferred: Planning, design, and permitting Bay Trail Easement: $60,000 All expenditures as of May 11 eligible for AA funding Easement: Real Property Deferred: Trail Implementation: Planning & Nat Res Committee District-Wide 2 PAGE 3 OF 7 8/21/2014 4:48 PM Scope Schedule (Quarterly Milestones & Completion Date) Budget Measure AA Priority Action(s)* (Portfolios) Key Project Purpose Board Committee Review Dept Lead Project Description PROGRAM: PUBLIC RECREATION AND ACCESS Continued Priority 1 Continued Vehicle Bridge Evaluation and Repair (Core Function) Previously listed under Public Safety, Law Enforcement, and Fire Protection Provide for continued vehicle access for emergency response, patrol, maintenance, and public use. Finalize bridge designs and apply for required permits. FY14-15 Q1 Finalize Designs Q2 Apply for Permits FY15-16 Construction $32,000 Permits $78,000 Design $110,000 Total All expenditures as of May 11 eligible for AA funding Operations 3 Priority 2 Stevens Creek Trail Bridge Repair Repair or replace failing bridge. Conduct permitting and design for repair or replacement of bridge on the Stevens Canyon Trail. Q4 FY 14-15 $40,000 All expenditures as of May 11 eligible for AA funding Operations 17 PROGRAM: PUBLIC RECREATION AND ACCESS Continued Priority 3 El Corte de Madera Creek Staging Area and Trail Improvements (Phase III/IV - Oljon Trail) Continues Phases III and IV of overall staging area and trails project. If time allows, includes "No Parking" highway signage. If time allows, complete trail design and permitting for Phase III/IV trails. Complete Phase II culvert and Phase IV puncheon permitting. $15K plan preparation/consultant fees. $5K permit fee. If time allows, complete "No Parking" signage component of staging area project, including County Board of Supervisor and Caltrans approval. Q3/4 FY14-15: Permitting $35,000 All expenditures as of May 11 eligible for AA funding Planning 4 PAGE 4 OF 7 8/21/2014 4:48 PM Scope Schedule (Quarterly Milestones & Completion Date) Budget Measure AA Priority Action(s)* (Portfolios) Key Project Purpose Board Committee Review Dept Lead Project Description PROGRAM: ENVIRONMENTAL RESTORATION AND REMEDIATION Priority 1 Mindego Ranch Aquatic Species Management Plan Previously listed under Resource Management Define a habitat restoration and long-term management plan for sensitive aquatic species at Mindego Ranch area of Russian Ridge Open Space Preserve. Collect additonal San Francisco Garter Snake and other sensitive aquatic species distribution and abundance data. *Board action on November 20, 2013 authorized contract. Q1-FY14-15 - Begin first year monitoring and staff training Q4 FY14 - 15 Year 1 Report Complete $55,000 All expenditures as of May 11 eligible for AA funding Natural Resources 9 La Honda Creek Master Plan Phase I Implementation - Roads Watershed Protection Upgrade Upgrade ranch road system to prevent erosion and sediment input to anadromous streams. Design road upgrade program to address priority sites. Q1 FY14-15 Consultant Design Documents Complete Q2 FY2014-15 Obtain permits, conduct bidding process Q3 FY2014-15 Begin Construction $50,000 Approx. $30k grant- funded through CDFW Fisheries Restoration Grant Program with remaining expenditures as of May 11 eligible for AA funding Q3 FY14-15 Board Award Construction Contract Natural Resources 7 El Corte de Madera Creek Watershed Protection Program Reduce sedimentation to ECdM and San Gregorio Creeks. Construction at 4 locations, construction oversight, design. Preconstruction biological monitoring. Complete second phase of road fill removal/trail restoration to close abandoned alignments. Q2 FY14-15 Construction of next phase complete (1 phase remaining) in FY 2015/16 $70,000 All expenditures as of May 11 eligible for AA funding Natural Resources 4 Rebuild Pond DR05 Continue implementation of the Driscoll Ranch Pond Management Plan, repairing additional failed/failing ponds on the property. Submit for permits; bid and construct the project. Q1 FY14-15 - Permits Submitted Q2 FY14-15 - Award Construction Contract Q3 FY14-15 - Construction Complete $170,000 All expenditures as of May 11 eligible for AA funding Q2 FY14-15 Board Award Construction Contract Natural Resources 7 PAGE 5 OF 7 8/21/2014 4:48 PM Scope Schedule (Quarterly Milestones & Completion Date) Budget Measure AA Priority Action(s)* (Portfolios) Key Project Purpose Board Committee Review Dept Lead Project Description PROGRAM: ENVIRONMENTAL RESTORATION AND REMEDIATION Continued Priority 1 Continued Mindego Ranch Landfill Remediation Remediate contaminated site on Mindego Ranch property. Landfill: complete stormwater runoff control plan and install signs restricting access. Q2 FY14-15 - Construction of stormwater runoff control structure and sign installation $25,000 All expenditures as of May 11 eligible for AA funding Natural Resources 9 Priority 2 Demolition and Clean up of Abandoned Structures [Foothills Area] (Core Function) Remove abandoned structures, limit environmental pollution, and limit employee exposure to hazardous materials. Evaluate and choose highest priority structures for demolition in the Foothills area. Contract out the demolition and clean up of listed structures. Only buildings which are deemed not to have historic value will be included in this project. FY14-15 Q1-2 Evaluate, Permit, and Abate Q3-4 Demolish $600,000 (updated cost now estimated at $460,000) All expenditures as of May 11 eligible for AA funding Planning and Natural Resources Q4 FY13-14 Operations 24 Demolition and Clean up of Abandoned Structures [Skyline] (Core Function) Remove abandoned structures, limit environmental pollution, and limit employee exposure to hazardous materials. Evaluate and choose highest priority structures for demolition in the Skyline area. Obtain permits as necessary. Only buildings which are deemed not to have historic value will be included in this project. FY14-15 Q1-2 Evaluate, Permit, and Abate Q3-4 Demolish $120,000 Expenditures for La Honda ($59,168) incurred as of May 11 are eligible for AA funding Planning and Natural Resources Q4 FY 13-14 Operations 5 Priority 3 POST Hendrys Creek Property Land Restoration Environmental restoration of Hendrys Creek property Schedule is dependent upon SCVWD schedule for environmental review. Next steps following CEQA completion: develop plans and specs for a) SWPPP preparation, b) permitting, and c) contractor bidding. Coordinate with SC County, SCVWD, and regulatory agencies including DFW, USFWS, RWQCB, ACOE. CEQA Review costs to be reimbursed by SCVWD. Q3/4 FY14-15: Design & Permitting (dependent on schedule of SCVWD's CEQA review) Budget carried by Real Property Estimated at $25,000 All expenditures as of May 11 eligible for AA funding Planning 22 PAGE 6 OF 7 8/21/2014 4:48 PM Scope Schedule (Quarterly Milestones & Completion Date) Budget Measure AA Priority Action(s)* (Portfolios) Key Project Purpose Board Committee Review Dept Lead Project Description PROGRAM: AGRICULTURAL LAND MANAGEMENT Priority 1 Mindego Grazing Infrastructure Improve grazing infrastructure at Russian Ridge OSP (Mindego Ranch). Install water system and new corrals to reintroduce grazing to Russian Ridge OSP. Q4 FY14-15 $150,000 All expenditures as of May 11 eligible for AA funding District-Wide 9 La Honda Creek Grazing Infrastructure Improve grazing infrastructure at La Honda Creek OSP (McDonald Ranch). Work with tenant to improve water system infrastructure and fencing to reintroduce grazing to La Honda Creek OSP. Q4 FY14-15 $135,000 All expenditures as of May 11 eligible for AA funding Q3 FY14-15 Board Award Construction Contract Natural Resources 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Sierra Azul: Rancho de Guadalupe Family Recreation Sierra Azul: Loma Prieta Area Public Access, Regional Trails, and Habitat Projects Miramontes Ridge:  Gateway to the Coast Public Access, Stream Restoration, and Agriculture Enhancement Regional: Bayfront Habitat Protection and Public Access Partnerships  Purisima Creek Redwoods: Purisima‐to‐Sea Trail, Watershed Protection and Conservation Grazing El Corte de Madera Creek: Bike Trail and Water Quality Projects La Honda Creek: Upper Area Recreation, Habitat Restoration, and Conservation Grazing Projects  Windy Hill:  Trail Improvements, Preservation, and Hawthorns Area Historic Partnership La Honda Creek: Driscoll Ranch Public Access, Endangered Wildlife Protection, and Conservation Grazing  La Honda Creek/Russian Ridge:  Preservation of Upper San Gregorio Creek Watershed and Ridge Trail Completion Russian Ridge: Public Recreation, Grazing, and Wildlife Protection Projects   Coal Creek: Improve Alpine Road for Trail Use Rancho San Antonio: Interpretive Improvements, Refurbishing, and Transit Solutions Peninsula/South Bay Cities: Partner to Complete Middle Stevens Creek Trail Cloverdale Ranch: Wildlife Protection, Grazing, and Trail Connections  Regional: Trail Connections and Campgrounds El Sereno: Dog Trails and Connections South Bay Foothills: Wildlife Passage and Ridge Trail Improvements Bear Creek Redwoods: Public Recreation and Interpretive Projects Sierra Azul: Cathedral Oaks Public Access and Conservation Projects Sierra Azul: Mt. Umunhum Public Access and Interpretation Projects Regional: Redwood Protection and Salmon Fishery Conservation  Long Ridge: Trail, Conservation, and Habitat Restoration Projects Regional:  Complete Upper Stevens Creek Trail South Bay Foothills: Saratoga‐to‐Sea Trail and Wildlife Corridor * Numbers correspond to the numbered Priority Actions as listed in the Measure AA Expenditure Plan and provided below.  As a reminder, embedded within each Priority Action (Portfolio) is a list of multiple  projects.  Those projects that are currently on the existing FY2014‐15 Action Plan as a Key Project and therefore underway are listed above.   PAGE 7 OF 7 August 13, 2014 Board Meeting 14-21 REGULAR MEETING BOARD OF DIRECTORS MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Administrative Office – Board Room 330 Distel Circle Los Altos, CA 94022 August 13, 2014 DRAFT MINUTES I. CALL TO ORDER President Harris called the Regular Meeting of the Midpeninsula Regional Open Space District Board of Directors to order at 7:00 p.m. II. ROLL CALL Members Present: Jed Cyr, Nonette Hanko, Cecily Harris, Larry Hassett, Yoriko Kishimoto, Curt Riffle, and Pete Siemens Members Absent: None Staff Present: General Manager Steve Abbors, Assistant General Manager Kevin Woodhouse, General Counsel Sheryl Schaffner, Natural Resources Manager Kirk Lenington, Planner III Matt Baldzikowski, Acting Operations Manager Michael Newburn, Contingent Project Manager Aaron Hébert, Planning Manager Jane Mark, Project Manager Gina Coony, Public Affairs Manager Shelly Lewis, Volunteer Programs Manager Paul McKowan, Real Property Manager Mike Williams, Administrative Services Manager Kate Drayson, and District Clerk Jennifer Woodworth III. ORAL COMMUNICATIONS Kathy Helgerson spoke in favor of cleaning up Stevens Creek Park stating stating it is polluted and in disrepair. IV. ADOPTION OF AGENDA Motion: Director Cyr moved, and Director Hanko seconded the motion to adopt the agenda. Meeting 14-21 Page 2 VOTE: 7-0-0 V. SPECIAL ORDER OF THE DAY Public Affairs Manager Shelly Lewis introduced Public Affairs Administrative Assistant Jenny Gibbons. VI. CONSENT CALENDAR Director Hassett requested Item 4 be pulled from the Consent Calendar and heard at the end of the Board Business portion of the agenda. Director Hanko pulled Item 2 from the Consent Calendar. Director Kishimoto pulled Item 5 from the Consent Calendar following public comments on the Consent Calendar. Motion: Director Kishimoto moved, and Director Hanko seconded the motion to approve the Consent Calendar as modified with the exception of Items 2, 4 and 5. VOTE: 7-0-0 The Board considered pulled Consent Calendar Item 4 following Item 6. 1. Approve Minutes of the Regular Board Meeting of July 23, 2014. 2. Approve the Claims Report Item 2 was heard after approval of the Consent Calendar. Director Hanko recused herself and left the room at 7:20 p.m. Motion: Director Riffle moved, and Director Siemens seconded the motion to approve the check numbers 67177, 67152, 67231, 67318, 67337, 67274, and any other line items related to Verizon, AT&T, and PG&E on the claims report. VOTE: 6-0-0 (Director Hanko recused) Director Hanko returned to the dais at 7:22 p.m. Motion: Director Cyr moved, and Director Riffle seconded the motion to approve the claims reports with the exception of check numbers 67177, 67152, 67231, 67318, 67337, 67274, and any other line items related to Verizon, AT&T, and PG&E. VOTE: 7-0-0 3. Written Communication to R. Sundahl Meeting 14-21 Page 3 Director Kishimoto suggested that the draft response be modified to read, “…a large scale proposal would likely not be consistent with the District’s mission, objectives and current policies.” 4. Contract for the Administrative Office Mansard Roof Replacement Project (R-14- 102) Director Hassett inquired regarding the process for choosing the vendor. Planner III Gina Coony explained the use of the base bid is the legal criteria for selecting the low bid. Motion: Director Riffle moved, Director Cyr seconded the motion to: 1. Authorize the General Manager to enter into a contract with Decon Environmental Services, Inc. of Hayward CA, for a not-to-exceed amount of $425,335 which includes the base bid amount of $369,853 for demolition, and a 15% contingency amount of $55,478, to complete the Sierra Azul Remediation and Demolitions Project at the Sierra Azul Open Space Preserve. 2. Determine that the recommended actions are categorically exempt from the California Environmental Quality Act, as set out in the staff report. VOTE: 7-0-0 Following action on Item 4, the Board resumed the regular order of the agenda at Item 7. 5. Contract for Completion of the McDonald and Sherrill Remediation and Demolition Projects at La Honda Creek Open Space Preserve and Monte Bello Open Space Preserve (R-14-104) Public hearing opened at 7:13 p.m. Doniga Markegard, current grazing tenant at McDonald Ranch, urged the Board consider approving application for a farm worker house permit in conjunction with the demolition permit for proposed demolition at the McDonald Ranch. Public hearing closed at 7:18 p.m. Director Kishimoto pulled Item 5 from the Consent Calendar. Item 5 was heard following action on Item 2. Public hearing opened at 7:24 p.m. Ryan Borich, a business owner from Half Moon Bay, inquired if Board has ever considered reclamation instead of demolition of District buildings. Gina Coony, Planner III, commented that staff has sought reclamation contractors for previous projects. The problem she encountered previously is that many contractors did not pay prevailing wages nor did they meet the District’s insurance requirements. She stated that she will collect Mr. Borich’s contact information for future bid notices. Meeting 14-21 Page 4 Public hearing closed at 7:29 p.m. General Manager Steve Abbors and Contingent Project Manager Aaron Hébert commented on the extensive procedure used by staff to notify interested parties, contractors, and members of the public regarding the project and request bids for the project. Director Hanko expressed her concerns regarding removal of the current bat habitat by demolishing the McDonald Ranch house stating that the bats currently living there may not relocate to the nearby Red Barn if the structure is demolished. Mr. Hébert provided information on research completed by the District’s bat consultant and recommendations made by the consultant regarding best practices for demolition of the structure to protect the bat species living there. Natural Resources Manager Kirk Lenington commented that the bats living in the Red Barn were studied previously and found that the habitat was not near capacity. Director Riffle inquired as to the progress of the construction and demolition policy. Mr. Hébert responded that staff is working on the construction and demolition policy and until it is adopted, staff has augmented its bid package to address recycling, reclamation, and salvage. Director Riffle inquired about the possibility of exploring Ms. Markegard’s suggestion of farm worker housing. Real Property Manager Mike Williams commented on the state of the McDonald structure stating that its current condition is irreparable. Demolition of the structure does not preclude future Board decisions to explore farm worker housing or other infrastructure buildings at the site. The Board directed staff to return at a future Board meeting with information regarding farm worker housing and an update on the construction and demolition policy. Motion: Director Hassett moved, and Director Hanko seconded the motion to: 1. Authorize the General Manager to enter into a contract with Asbestos Management Group of California, Inc. of Oakland, CA, for a not-to-exceed amount of $114,454, which includes the base bid amount of $99,525 for demolition, and a 15% contingency amount of $14,929 to complete the McDonald and Sherrill Remediation and Demolition Projects at La Honda Creek Open Space Preserve and Monte Bello Open Space Preserve. 2. Determine the recommended actions on the Sherrill Remediation and Demolition Project are categorically exempt from the California Environmental Quality Act, as set out in the staff report. VOTE: 7-0-0 VII. BOARD BUSINESS 6. Accept Two Trail Easements, Two Rights of First Offer and Rights of First Refusal, and a Conditional Grant Deed conveyance, to properties adjacent to Monte Bello and Meeting 14-21 Page 5 Rancho San Antonio Open Space Preserves, located in the City of Palo Alto and unincorporated Santa Clara County (Portions of Santa Clara County Assessor’s Parcel Numbers 351-09-003, 351-09-023, 351-09-025, 351-10-037 & 351-12-067); and Bi-annual public meetings with Lehigh; all in Exchange for Dismissal of Appeal in Midpeninsula Regional Open Space District v. County of Santa Clara et al, Court of Appeal Case No. H040839 (Lehigh EIR challenge); Adoption of Related Preliminary Use and Management Plan; and Approval of a Categorical Exemption in accordance with the California Environmental Quality Act (R-14-98) General Counsel Sheryl Schaffner provided the staff report outlining the public benefits received in exchange for settlement of the District’s lawsuit against the County of Santa Clara regarding the county’s approval Lehigh Quarry’s Reclamation Plan Environmental Impact Report. Ms. Schaffner summarized the history of Midpen’s litigation as well as litigation pursued by other agencies. Ms. Schaffner summarized the settlement terms and conditions proposed for approval by the Board of Directors. Finally, Ms. Schaffner explained the options before the Board for consideration this evening. The Board members asked various questions to clarify the proposed terms and conditions of the settlement terms and conditions. Public hearing opened at 8:46 p.m. Tim Brand, resident of Cupertino, spoke against the East Materials Storage Area and the proposed settlement terms and conditions. Karen del Campara, resident of Cupertino, spoke regarding Lehigh Quarry’s past actions, pollution at the East Materials Storage Area and surrounding areas, and the current Lehigh Cement Plant. Kathy Helgerson spoke against the proposed settlement terms and conditions and urged litigation regarding the Lehigh Cement Plant. Leslie Fowler spoke regarding pollution she has experienced at the Rancho San Antonio Open Space Preserve. Barry Chang, Cupertino City Councilmember and President of the Board for Bay Area for a Clean Environment but speaking for himself, thanked the District for their work in the lawsuit and spoke against Lehigh Quarry. Public hearing closed at 9:01 p.m. Director Hassett inquired if any safeguards existed to protect the District from accepting the 55- acre parcel if it is heavily polluted. Mr. Abbors explained that the property would be examined before the District considers acceptance, nor do any of the settlement terms and conditions preclude the Board from taking future actions against Lehigh if deemed necessary by the Board. Director Hassett inquired why Lehigh Cement Plant was not included in negotiations. Meeting 14-21 Page 6 Ms. Schaffner explained that the Lehigh Cement Plant was not included in the Environmental Impact Report or litigation, and Lehigh was not interested in negotiating regarding the Cement Plant. Director Kishimoto inquired regarding the metrics being used to monitor whether the East Materials Storage Area has increased in size. Planner III Matt Baldzikowski described the various metrics which will be used to monitor the size of the East Materials Storage Area. The Board members thanked staff for their efforts both study and monitor the area and negotiate the terms and conditions of the settlement. Motion: Director Kishimoto moved, and Director Siemens seconded the motion to: 1. Adopt a Resolution authorizing acceptance of the following property rights conveyances from Lehigh: A. Amend Grant of Trail Easement to widen existing Quarry Trail from 20 to 200 feet; B. New Public Trail Easement to Monte Bello Open Space Preserve; C. Rights of First Offer and Rights of First Refusal to two properties adjacent to Rancho San Antonio Open Space Preserve totaling 265 acres; D. Conditional Grant Deed to one property adjacent to San Antonio Open Space Preserve. 2. Adopt a Preliminary Use and Management Plan for the property as contained in the staff report. 3. Indicate the Board’s intention to dedicate the Quarry Trail, and defer dedication of the new trail easement until it is complete. 4. Approve settlement and dismissal of the pending litigation on the terms outlined in the staff report. 5. Determine that the recommended actions are categorically exempt from the California Environmental Quality Act (CEQA) as set out in the staff report. VOTE: 7-0-0 The Board recessed at 9:27 p.m. and reconvened at 9:39 p.m. with all members present. 7. Discussion of Criteria for Inclusion on District Volunteer Memorial Signs (R-14- 108) Ms. Schaffner provided the staff report summarizing the actions taken at the last Board meeting. Public hearing opened at 9:59 p.m. Brandon Kwan spoke in favor the Board reaching a compromise regarding the issue, stating that some volunteers may serve the District for only five years but contribute much to the District. Those individuals could be considered for inclusion on a case by case basis. Mr. Kwan also suggested the District take donations to pay for the upkeep of the signs. Public hearing closed at 10:03 p.m. Meeting 14-21 Page 7 The Board discussed the various criteria for inclusion on the District Volunteer Memorial Signs. Motion: Director Hanko moved, and Director Kishimoto seconded the motion to approve the criteria of including memorializing deceased volunteers and docents who have provided a significant contribution to the District and have volunteered for at least 10 years and provided 250 hours of volunteer service with a provision that the General Manager can make exceptions in extraordinary cases. VOTE: 4-3-0 (Directors Hassett, Cyr, and Siemens opposed) 8. Approval of Response to San Mateo County Civil Grand Jury Report dated May 19, 2014 Regarding Website Transparency (R-14-101) District Clerk Jennifer Woodworth provided the staff report summarizing the San Mateo Civil Grand Jury’s report and the District’s response to the report. Public hearing opened at 10:22 p.m. No speakers present. Public hearing closed at 10:22 p.m. Motion: Director Siemens moved, and Director Kishimoto seconded the motion to approve and authorize the President of the Board of Directors to execute the proposed response to the San Mateo County Civil Grand Jury’s report of May 19, 2014 regarding special district website transparency. VOTE: 7-0-0 VIII. COMMITTEE REPORTS Director Riffle reported that the Capital Finance Ad Hoc Committee met to discuss the process for implementing Measure AA. IX. STAFF REPORTS General Manager Steve Abbors commended General Counsel Sheryl Schaffner and Real Property Manager Mike Williams for their efforts related to negotiating the terms and conditions for the Lehigh settlement. X. DIRECTOR REPORTS The Board submitted their compensatory forms to the District Clerk. Director Riffle reported that he will be attending the Pescadero Arts and Fun Festival with members of District staff and docents. Director Cyr reported that he recently hiked at Pescadero Marsh. Meeting 14-21 Page 8 Director Hassett provided comments on South Skyline Association’s recently published book The South Skyline Story. XI. ADJOURNMENT President Harris adjourned the regular meeting of the Board of Directors of the Midpeninsula Regional Open Space District at 10:32 p.m. ________________________________ Jennifer Woodworth, CMC District Clerk Page 1 of 2 CLAIMS REPORT MEETING 14-23 DATE 08-28-14 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Check Number Notes Vendor No. and Name Invoice Description Check Date Payment Amount 67381 10487 - TKO GENERAL ENGINEERING & CONSTRUCTION Construction Progress for Bald Mtn Staging Area (SAU)08/13/2014 $18,843.25 67383 *10216 - VALLEY OIL COMPANY Fuel for District Vehicles & Equipment 08/13/2014 $14,883.76 67355 10509 - GEOCON CONSULTANTS INC Geotechnical Consulting - Bald Mtn Staging Area (SAU)08/13/2014 $5,277.50 67358 11091 - JODI MCGRAW CONSULTING Vision Plan Consulting Work (Apr- Jun 2014)08/13/2014 $4,560.00 67370 10932 - RDO EQUIPMENT COMPANY Mowing Tractor Rental for Various Preserves 08/13/2014 $4,276.74 67366 10925 - PAPE` MACHINERY Dozer Rental Road Work at Various Preserves 08/13/2014 $4,132.50 67363 10073 - NORMAL DATA Training Database Work 08/13/2014 $2,682.50 67385 *11118 - WEX BANK Fuel for District vehicles 08/13/2014 $2,332.27 67350 10027 - CRESCO EQUIPMENT RENTALS Excavator Rental Ancient Oaks Trail (RR)08/13/2014 $2,127.63 67379 11033 - THE CREATIVE GROUP Public Affairs Assistant - Mello 08/13/2014 $2,109.24 67345 11391 - CHAVAN & ASSOCIATES, LLP Professional Services - Financial Audit (FY 2013-2014)08/13/2014 $1,950.00 67351 11213 - CRYSTAL SPRINGS CATERING Catering for Legislative Luncheon 08/13/2014 $1,848.09 67344 11402 - CENTRAL SUPPLY COMPANY INC.Concrete for Ancient Oaks Trail Construction (RR)08/13/2014 $1,764.61 67376 11268 - SANTA CLARA COUNTY PLANNING OFFICE Plan Check fees for 3 Bridges - Mt Umunhum Trail (SAU)08/13/2014 $1,744.00 67361 10135 - MADCO Welder - SFO Shop 08/13/2014 $1,465.78 67367 *10180 - PG & E Electric - AO 08/13/2014 $1,460.43 Electric - AG Pump 08/13/2014 Electric - Apple Orchard Property (LH)08/13/2014 Electric - Event Center 08/13/2014 67357 10123 - HOME DEPOT CREDIT SERVICES Bolts, PVC Pipes, Shop Towels, Hinges, Wrench, Cement, Grass Shear, Pliers, Paint, Staples 08/13/2014 $1,283.78 67342 10840 - CALIFORNIA PENSION GROUP, LLC Consulting Services for Pension Reform (July 2014)08/13/2014 $1,000.00 67369 *11184 - PURCHASE POWER - PITNEY BOWES POSTAGE Postage - AO 08/13/2014 $1,000.00 67356 11195 - GOODYEAR AUTO SERVICE CENTER Tires & Installation of Tires - P96 08/13/2014 $904.17 67346 10352 - CMK AUTOMOTIVE INC Vehicle Maintenance & Repairs - P98 08/13/2014 $862.68 Vehicle Maintenance & Repairs - A68 08/13/2014 Vehicle Maintenance & Repairs - A94 08/13/2014 Vehicle Maintenance & Repairs - M46 08/13/2014 67339 10004 - ACCOUNTEMPS Accounting Temp 08/13/2014 $836.93 67359 11102 - KOENIG, PEGGY Reimbursement for Legislative Picnic (July 2014)08/13/2014 $713.36 67340 11170 - ALEXANDER ATKINS DESIGN, INC.Proclamations 08/13/2014 $685.00 67341 11322 - AMERMEX UPGRADES Lighting Repairs - AO 08/13/2014 $680.00 67368 10140 - PINE CONE LUMBER CO INC Lumber for Fencing (DHF/RSA)08/13/2014 $637.86 67373 10136 - SAN JOSE WATER COMPANY Water Service (RSA/CP)08/13/2014 $547.80 67349 10540 - CRAFTSMEN PRINTING Business Cards - Generic 08/13/2014 $342.56 67377 10107 - SUNNYVALE FORD Maintenance & Repairs - P43 08/13/2014 $317.17 Maintenance & Repairs - P88 08/13/2014 67374 11179 - SAN MATEO COUNTY ASSESSOR OFFICE GIS Data Text File Fee 08/13/2014 $305.00 67347 10184 - CONTINUING EDUCATION OF THE BAR Subscription Service Update "CA Civil Proceed Before Trial"08/13/2014 $280.79 67354 10187 - GARDENLAND POWER EQUIPMENT Parts for Equipment Hoses 08/13/2014 $266.93 67365 10233 - PACIFIC WATER SYSTEMS Water Supplies (FO)08/13/2014 $254.69 67348 10185 - COSTCO Kitchen & Janitorial Supplies (FFO)08/13/2014 $216.01 67384 10685 - WEST VALLEY COLLECTION Garbage Service (SAO)08/13/2014 $174.80 Garbage Service (ES)08/13/2014 67343 10170 - CASCADE FIRE EQUIPMENT COMPANY Pumper Nozzles 08/13/2014 $167.79 Page 2 of 2 CLAIMS REPORT MEETING 14-23 DATE 08-28-14 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Check Number Notes Vendor No. and Name Invoice Description Check Date Payment Amount 67353 11151 - FASTENAL COMPANY Tools & Field Supplies (FFO)08/13/2014 $155.99 67375 11059 - SAN MATEO COUNTY HEALTH DEPT Tick Testing 08/13/2014 $125.00 67362 *10664 - MISSION TRAIL WASTE SYSTEMS Garbage Service - AO 08/13/2014 $120.16 67380 11408 - THRIVE ALLIANCE Thrive Non-Profit Membership 2014-2015 08/13/2014 $100.00 67371 10228 - RHF INC Radar Gun Calibration 08/13/2014 $81.00 67378 10162 - TERMINIX PROCESSING CENTER Pest Control Services - AO 08/13/2014 $71.00 67338 *10810 - A T & T Telephone - Daniel Nature Center 08/13/2014 $66.17 67364 10670 - O'REILLY AUTO PARTS Windshield Wiper Fluid 08/13/2014 $49.73 Solar Battery Charger - M202 08/13/2014 Mini Light Bulb - M33 08/13/2014 67352 *11210 - DATA SAFE Shredding Service - AO 08/13/2014 $40.00 67386 11268 - SANTA CLARA COUNTY PLANNING OFFICE Building Permit Search Record Fee for Parcel 351-16-020 08/13/2014 $40.00 67382 11037 - US HEALTHWORKS MEDICAL GROUP PC Employee Medical Services 08/13/2014 $25.00 67372 10256 - ROBERT'S HARDWARE Hardware for Portola Heights Gate 08/13/2014 $16.34 67360 10119 - KWIK KEY LOCK & SAFE CO INC Keys for Rental Residence 08/13/2014 $7.34 Grand Total $83,833.35 *Annual Claims BC = Bear Creek LH = La Honda Creek PR = Pulgas Ridge SG = Saratoga Gap TC = Tunitas Creek CC = Coal Creek LR = Long Ridge PC = Purisima Creek SA = Sierra Azul WH = Windy Hill ECdM = El Corte de Madera LT = Los Trancos RSA = Rancho San Antonio SR= Skyline Ridge AO = Administrative Office ES = El Sereno MR = Miramontes Ridge RV = Ravenswood SCS = Stevens Creek Shoreline Nature FFO = Foothills Field Office FH = Foothills MB = Monte Bello RR = Russian Ridge TH = Teague Hill SFO = Skyline Field Office FO = Fremont Older PR = Picchetti Ranch SJH = St Joseph's Hill TW = Thornewood SAO = South Area Outpost RR/MIN = Russian Ridge - Mindego Hill GP = General Preserves Page 1 of 3 CLAIMS REPORT MEETING 14-23 DATE 08-28-14 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Check Number Notes Vendor No. and Name Invoice Description Check Date Payment Amount 67396 *10845 - CITY OF MOUNTAIN VIEW-FINANCE Dispatch Services - Apr-Jun 2014 08/20/2014 36,219.00 67387 11369 - BANK OF THE WEST COMMERCIAL CARD USA $339.97 - Vehicle Maintenance & Repairs 08/18/2014 24,977.65 $312.53 - Batteries, Label Tape, Key Rings, Snake Food 08/18/2014 $175.33 - Replacement Camera for Natural Resources Department 08/18/2014 $510.21 - Supplies for Stream Temp Monitoring (RSA)08/18/2014 $73.21 - Ranger Supplies 08/18/2014 $1,153.00 - Registration Fee + Travel for CALPELRA Conference 08/18/2014 $765.29 - Water Storage Tank Repairs, Hard Hat System, Tool 08/18/2014 $595.92 - Web Charges 08/18/2014 $446.06 - Materials for Ancient Oaks Bridge (RR)08/18/2014 $1,480.19 - Legal Ads, APA Conference, Mt Umunhum Trail Bridges 08/18/2014 $945.00 - Debris Boxes (RR/PCR)08/18/2014 $867.81 - Event Center Water Infrastructure (LHC)08/18/2014 $105.49 - Restroom Repairs (MB)08/18/2014 $227.46 - Office Supplies, Lunch Meeting 08/18/2014 $109.04 - Asbestos Air Sampling Equipment 08/18/2014 $104.50 - Volunteer Supplies 08/18/2014 $653.54 - Heavy Equipment Parts 08/18/2014 $34.98 - Toter Rack System for Rhino 08/18/2014 $1,595.00 - ESRI Conference Registration - GIS 08/18/2014 $2,355.42 - IAFS Training Conference, Security Software 08/18/2014 $1,155.98 - APA California Conference and Travel Expenses 08/18/2014 $688.54 - Office & Kitchen Supplies, Training & Conference Fees 08/18/2014 $944.20 - Radio Charger, Vehicle Repair, Office Supplies 08/18/2014 $12.64 - Battery for Patrol Camera 08/18/2014 $157.63 - Office Supplies, Presentation Materials 08/18/2014 $2,582.90 - Name Badges, Advertising, Promo Items 08/18/2014 $1,150.00 - APA California Conference Fees 08/18/2014 $689.01 - Business Lunch, CSDA Conference Registration 08/18/2014 $207.92 - Volunteer Supplies 08/18/2014 $302.87 - Field Supplies (FFO)08/18/2014 $796.50 - Recruitment Internet Job Posting Fees 08/18/2014 $56.88 - Business Meeting Expense 08/18/2014 $1,988.83 - ICMA Membership Fees, Airline Travel ICMA Conf, Binders 08/18/2014 $64.42 - Computer Supplies 08/18/2014 $14.01 - Postage Due for Return of CEB Handbook 08/18/2014 $170.41 - Business Lunch & Farm Bureau Membership 08/18/2014 $319.56 - Supplies for Docent Meeting, Geocaching Program 08/18/2014 $735.00 - Int Instit of Municipal Clerks Membership Fee, CSDA Conference Fee 08/18/2014 $90.40 - Laminating Tools 08/18/2014 67401 10540 - CRAFTSMEN PRINTING Printing Services - Maps & Brochures of Various Preserves 08/20/2014 21,771.64 Business Cards - Gibbons 08/20/2014 67415 *10180 - PG & E Electric for Well Pump (SR)08/20/2014 5,184.52 Electric (SFO)08/20/2014 Page 2 of 3 CLAIMS REPORT MEETING 14-23 DATE 08-28-14 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Check Number Notes Vendor No. and Name Invoice Description Check Date Payment Amount Electric (AO)08/20/2014 Gas (AO)08/20/2014 67414 10925 - PAPE` MACHINERY Bulldozer Rental for Ancient Oaks Trail (RR)08/20/2014 4,567.50 67409 11409 - LA OFERTA Translation & Publication Notice of Election 08/20/2014 4,300.00 67402 11194 - CREEKSIDE CENTER FOR EARTH OBSERVATION Selection & Installation of Plots & Data Collection (RR)08/20/2014 3,000.00 67398 11171 - COMMUNICATION ADVANTAGE Consultation, Writing, Measure AA History, Lehigh, CSDA 08/20/2014 2,662.50 67399 11318 - CONFLUENCE RESTORATION Mindego Gateway Planting & Landscape Maintenance July 2014 (RR)08/20/2014 2,164.33 67395 11402 - CENTRAL SUPPLY COMPANY INC.Concrete for Bridge Piers / Ancient Oaks Trail (RR)08/20/2014 1,536.34 Concrete Pumping for Bridge Piers / Ancient Oaks Trail (RR)08/20/2014 67423 *10952 - SONIC.NET, INC.Internet for AO & FFO - Sept 2014 08/20/2014 1,519.00 1188 **10203 - WOODSIDE & PORTOLA PRIVATE PATROL Patrol Services - Hawthorn (WH)08/14/2014 1,200.00 67422 10585 - SOL'S MOBILE SERVICE Maintenance & Repairs - M23 08/20/2014 884.80 67389 10004 - ACCOUNTEMPS Accounting Temp 08/20/2014 844.88 67410 10189 - LIFE ASSIST First Aid Supplies 08/20/2014 677.66 67397 10352 - CMK AUTOMOTIVE INC Vehicle Maintenance & Repairs - A40 08/20/2014 667.13 67413 10271 - ORLANDI TRAILER INC Tail Lights 08/20/2014 637.83 Repair Trailer Brakes 08/20/2014 67412 11063 - O'BRIEN, PAT Legislative Consulting - May 2014 08/20/2014 600.00 67403 10038 - ERGO VERA Ergonomic Evaluations & Reports 08/20/2014 541.20 67392 10684 - BUTANO GEOTECHNICAL ENGINEERING Bridge Construction Consulting - Ancient Oaks Trail (RR)08/20/2014 540.00 67418 11268 - SANTA CLARA COUNTY PLANNING OFFICE Hicks Demolition Permit (SA)08/20/2014 421.56 67427 11176 - ZORO TOOLS Caution Tape 08/20/2014 406.24 67424 10146 - TIRES ON THE GO Tires & Installation of Tires - M46 08/20/2014 370.94 67393 *10454 - CALIFORNIA WATER SERVICE CO-949 Water Service (FFO)08/20/2014 356.67 67394 10170 - CASCADE FIRE EQUIPMENT COMPANY Spray Cover for Truck - M202 08/20/2014 337.61 67411 10073 - NORMAL DATA Permits Database Work 08/20/2014 326.25 67420 11268 - SANTA CLARA COUNTY PLANNING OFFICE Maas Demolition Permit (SA)08/20/2014 268.09 67421 11268 - SANTA CLARA COUNTY PLANNING OFFICE Crites Demolition Permit (SA)08/20/2014 257.18 67390 10593 - ALAMO LIGHTING Janitorial Supplies (AO)08/20/2014 213.97 67426 11360 - YUNKER, CHRISTINA Reimbursement for Field Equipment and Gear 08/20/2014 212.19 67419 11268 - SANTA CLARA COUNTY PLANNING OFFICE SAO Demolition Permit (SA)08/20/2014 190.84 67391 10817 - AMICI'S EAST COAST PIZZERIA Ops Business Meeting Meal 08/20/2014 156.50 Docent Training Meal 08/20/2014 67405 10168 - G & K SERVICES INC Shop Towel Service (FFO & SFO)08/20/2014 131.61 67408 10267 - HALF MOON BAY REVIEW Legal Ad for Mindego Ranch Water Infrastructure Project 08/20/2014 120.00 67400 11180 - COPY FACTORY Flyer & Proclamation Printing 08/20/2014 114.19 67404 *10186 - FEDERAL EXPRESS Shipping (AO)08/20/2014 100.00 67388 *10810 - A T & T Fax Line (FFO)08/20/2014 65.24 67417 11089 - SANTA CLARA COUNTY CLERK RECORDER Sherrill Demo CEQA NOE Recording Fee 08/20/2014 50.00 67425 10200 - TOOLAND INC Drill Bits for Tools 08/20/2014 46.82 67406 10187 - GARDENLAND POWER EQUIPMENT Chain Saw Repairs 08/20/2014 30.00 67407 10287 - GRAINGER INC Drill Bits 08/20/2014 27.90 67416 10134 - RAYNE OF SAN JOSE Water Service (FOOSP)08/20/2014 26.25 Grand Total 118,726.03 Page 3 of 3 CLAIMS REPORT MEETING 14-23 DATE 08-28-14 MIDPENINSULA REGIONAL OPEN SPACE DISTRICT Check Number Notes Vendor No. and Name Invoice Description Check Date Payment Amount *Annual Claims **Hawthorn Expense BC = Bear Creek LH = La Honda Creek PR = Pulgas Ridge SG = Saratoga Gap TC = Tunitas Creek CC = Coal Creek LR = Long Ridge PC = Purisima Creek SA = Sierra Azul WH = Windy Hill ECdM = El Corte de Madera LT = Los Trancos RSA = Rancho San Antonio SR= Skyline Ridge AO = Administrative Office ES = El Sereno MR = Miramontes Ridge RV = Ravenswood SCS = Stevens Creek Shoreline Nature FFO = Foothills Field Office FH = Foothills MB = Monte Bello RR = Russian Ridge TH = Teague Hill SFO = Skyline Field Office FO = Fremont Older PR = Picchetti Ranch SJH = St Joseph's Hill TW = Thornewood SAO = South Area Outpost RR/MIN = Russian Ridge - Mindego Hill GP = General Preserves R-14-109 Meeting 14-23 August 28, 2014 AGENDA ITEM 4 AGENDA ITEM Amend Contract with Ascent Environmental for the Integrated Pest Management Program GENERAL MANAGER’S RECOMMENDATION Authorize the General Manager to amend the professional services contract with Ascent Environmental for the Integrated Pest Management Program to increase the total contract amount by $15,698 to a not to exceed amount of $332,065, for consultation regarding safety of pesticides and for revisions to the program documents. SUMMARY Midpeninsula Regional Open Space District (the District) has an existing agreement with Ascent Environmental for development of an Integrated Pest Management (IPM) program and environmental review (Report R-13-06). An initial amendment was approved in 2013 to utilize expertise of a subconsultant to address an immediate concern of neighbors regarding protection of their drinking water, and that information was incorporated into the IPM Program (Report R- 13-47). A second amendment extended the contract to December 31, 2014 to accommodate delays in the project while District staff was focused on completing the Vision Plan. This third amendment allows for the evaluation of alternative rodenticide products, response to in-depth public comments and revisions to the IPM Guidance Manual. DISCUSSION The District entered into an agreement with Ascent Environmental on February 6, 2013, for the development of a District-wide IPM program and environmental review for a not-to-exceed amount of $303,947 (Report R-13-06). An initial amendment, adding $12,420 to the contract, allowed District staff to provide additional information about the environmental fate of the herbicides glyphosate and aminopyralid and their potential to affect drinking water in response to spraying District staff conducted at the Galloway property of El Corte de Madera Open Space Preserve. The spraying was conducted in a manner consistent with all regulations and with the District’s best management practices to protect the environment. Insight gained from this evaluation has been added to the IPM Program. The second amendment added no monies but extended the contract date from May 31, 2014 to December 31, 2014 in order to allow District staff more time to focus on the Vision Plan and also to develop the Weed Manager Database with Calflora (Report R-14-47) to assist in the monitoring and reporting requirements of the IPM Program. R-14-109 Page 2 This third amendment will provide funding to allow the evaluation of alternative rodenticide products and also to evaluate all pesticides in greater depth than originally proposed under the current agreement. Additional research and data review will be conducted and the IPM Program will be revised to include an explanation of the fate of these pesticides in air, water, soil, their potential effects on the environment, wildlife, the health of workers and the public, and how adverse effects can be avoided. This amendment will include funds for responding to possible in-depth comments on the IPM Environmental Impact Report regarding pesticide use and safety. It will also allow for reorganization of the IPM Guidance Manual to more clearly represent the pest management scenarios that various District departments undertake throughout the year. FISCAL IMPACT Funds in the amount of $15,698 for this contract amendment are available in the Natural Resources Department Adopted FY2014-15 Budget approved by the Board on March 26, 2014 (Report R-14-60). BOARD COMMITTEE REVIEW The FY2014-15 Action Plan scheduled full Board review of this District-wide project at key milestones, so committee review is not necessary. PUBLIC NOTICE Notice has been provided as required by the Brown Act. No additional notice is required. CEQA COMPLIANCE A Draft Environmental Impact Report is currently under preparation and is expected to be released for a 45-day public review period in late September, 2014, extending through mid- November 2014. NEXT STEPS Upon Board authorization, the General Manager will amend the contract with Ascent Environmental for an additional $15,698. Responsible Department Head: Kirk Lenington, Natural Resources Manager Prepared by: Cindy Roessler, Senior Resource Management Specialist Resolutions/2014/14-XX_EBRPD 80th Anniversary 1 RESOLUTION NO. 14-XX THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT RESOLUTION HONORING AND COMMENDING THE EAST BAY REGIONAL PARK DISTRICT ON ITS 80TH ANNIVERSARY WHEREAS, the East Bay Regional Park District, which serves the Counties of Alameda and Contra Costa, was formed in 1934, as the first regional park district in the nation and now includes 65 parks, 114,000 acres, 1200 miles of trails and serves 2.5 million residents; and WHEREAS, the East Bay Regional Park District was founded by a spirited and visionary group of community activists and residents who, despite the Great Depression of the 1930s, were willing to tax themselves to preserve the excess watershed lands in the Oakland hills, and thus established what would become the largest regional park district in the nation; and WHEREAS, the tireless efforts of those early members created the core of the local park district movement, encouraging others such as the Midpeninsula Regional Open Space District to follow in their footsteps mirroring their leadership to protect, in perpetuity, a regional greenbelt; and WHEREAS, over the past 80 years, the East Bay Regional Park District, guided by its environmental ethic, has remained true to its mission to preserve a priceless heritage of natural and cultural resources, open space and parkland, recreation areas and regional trails providing enjoyment and healthful recreation for generations to come, and; WHEREAS, the East Bay Regional Park District serves as a role model to other park, open space and conservation agencies in program development, resource management and outdoor education resulting in a nation of preserved landscapes of scenic beauty and cultural significance with public access to natural areas; and WHEREAS, on September 13, 2014, community leaders, partners, the board of directors, staff, volunteers and public will celebrate 80 years of open space preservation which has created a world-class public park and trail system. NOW THEREFORE, BE IT RESOLVED that the Board of Directors of the Midpeninsula Regional Open Space District does hereby commend and congratulate the East Bay Regional Park District for having joined together to create the outstanding achievements that have been accomplished over the past 80 years, achievements to be proud of for generations to come, and extends its most sincere wishes and encouragement for continued success. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Resolutions/2014/14-XX_EBRPD 80th Anniversary 2 PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space District on _____, 2014, at a Regular Meeting thereof, by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: APPROVED: Secretary Board of Directors President Board of Directors APPROVED AS TO FORM: General Counsel I, the District Clerk of the Midpeninsula Regional Open Space District, hereby certify that the above is a true and correct copy of a resolution duly adopted by the Board of Directors of the Midpeninsula Regional Open Space District by the above vote at a meeting thereof duly held and called on the above day. District Clerk R-14-110 Meeting 14-23 August 28, 2014 AGENDA ITEM 5 AGENDA ITEM Response to the 2013-14 Management Letter from the Auditor DISTRICT CONTROLLER’S RECOMMENDATION Accept the response to the Management Letter from the District Auditor, Chavan & Associates, received July 30, 2014. SUMMARY The Management Letter from the Auditor has been received for the completed audit of Fiscal Year 2013-14. Although the Auditor did not identify any material deficiencies, six areas have been identified with recommended changes to strengthen the District’s internal controls, which the District intends to adopt, as further described in this report. DISCUSSION On February 12, 2014, the Board approved the appointment of Chavan & Associates (Chavan) as the Auditor for the Midpeninsula Regional Open Space District (District) to complete the Fiscal Year (FY) 2013-14 audit. Chavan completed its audit of the District’s FY2013-14 financial statements in June, published the audited financial statements with a clean opinion on July 1, and submitted the final version of its Management Letter on July 30, 2014 (see attachment). As stated in the third paragraph of the letter, Chavan did not identify any deficiencies in District internal controls that they consider to be a material weakness. However, Chavan has identified six areas for which they recommend changes that could strengthen the District’s internal controls. Several of these items were already planned for 2015 and Chavan’s detailed recommendations are very helpful in implementing the accounting improvements needed to accommodate the future Measure AA bonds, comply with GASB requirements, and make financial operations more efficient. The District is pleased that Chavan took the time to prepare a thoughtful and comprehensive management letter, which is the first the District has received from its auditors in many years. The District plans to adopt all six of the recommendations. Listed below, for each of the six recommendations, is a summary of the Auditor’s suggestions and the District response and plan for implementation. 1. General Ledger and Fund Accounting. Chavan recommends that the District establish five accounting funds in its general ledger. Staff agrees and plans to implement this recommendation over the remainder of the fiscal year such that implementation is complete R-14-110 Page 2 in time for the next year’s audit. Since inception, the District has accounted for its finances in one General Fund, similar to a small business. At the end of each fiscal year, the external auditors reconfigure the numbers into the variety of fund statements shown in our official annual financial statements needed to satisfy GASB reporting requirements. There are currently only two funds within our accounting system — the General Fund and the Hawthorn Fund. Fixed assets are accounted for in the General Fund and detailed on a spreadsheet, a growing headache for accounting. The advantage of this legacy approach was its simplicity for financial planning, clarity, and focus on total consolidated revenue, expenses, capital expenditures, debt service, and cash. A good contrast can be seen by comparison to the comprehensive and very complicated financial statements of the East Bay Regional Park District. Chavan recommends that it is now time for the District to establish the foundation needed to account for future general obligation bonds and become able to generate GASB-compliant financial statements on an interim basis, while increasing the efficiency of the accounting staff. The District’s New World System accounting software is designed to operate exactly as Chavan recommends. New World’s consultant has already trained District staff to implement the auditor’s recommendation to establish the five suggested funds. Once the funds are established in the system and spreadsheet asset data is transferred, depreciation and other entries will be automatically calculated by the accounting software. The Hawthorn Fund will continue as a separate sub-fund within the General Fund. 2. Project Accounting. Chavan recommends that the District eliminate the excessive use of one-off project numbers to segregate costs by effectively utilizing the project codes built into the New World System software and modify the District’s chart of accounts to accommodate more object codes. Staff agrees and is in the process of implementation. Henceforth, all project numbers will be authorized by Accounting and will be assigned in logical groups by fund, source of funding (e.g. Measure AA bond, grant, general fund, etc.), function, department, project name, and general ledger account code. Roll-ups (e.g. by Top 25 projects) will be relatively easy and automatic. 3. Grant Billing and Reconciliation. Chavan recommends that Accounting prepare, following completion of all federal or state-funded grant projects, a reconciliation of grant awards, expenditures, claims and cash receipts. Staff agrees and will implement this for all future federal and state grants. 4. New Employee Checklists. Chavan recommends that the new employee checklist, completed for all new employees, be kept in the employee’s file. The auditors suggested this when they interviewed Human Resources staff. This recommendation was accepted and implemented immediately by Human Resources. 5. Fund Balance Policy. Chavan recommends that the District adopt a fund balance policy that meets the requirements of GASB 54. Staff agrees. Presentation of a proposal for a more detailed reserve policy was already on the agenda for the mid-year financial review. A proposal, aligned with the auditor recommendation, will be presented at the Action Plan and Budget Committee (ABC) meeting on November 18. It is currently anticipated that the proposal will include Restricted funds for Hawthorn and OPEB, Committed Funds for (non- Measure AA-funded) infrastructure, emergency (fire, earthquake and flood) response, and equipment replacement, and minimum balance requirements for the General Fund for working capital liquidity and land acquisitions prior to general obligation bond reimbursement. The proposal will include the purpose of each fund, authority for R-14-110 Page 3 establishment and change, amount of each fund, trigger for usage, procedure for replenishment, and frequency of review. The objective is for the Board to adopt the new policy in December or January. 6. Grant Documentation and Organization. In completing the Single Audit of the federally- funded Mount Umunhum Project, Chavan found that the Project financial files contained too much documentation and it was unnecessarily difficult to conform the general ledger numbers to the source documents. Upon review, Chaven confirmed that the District was fully in compliance with federal regulations. However, Chaven recommends that Accounting establish a simple standard procedure for documenting grant claims and reimbursements. Staff agrees and will establish such a procedure. FISCAL IMPACT No additional fiscal impact is anticipated. The Auditor’s recommendations can be implemented by the District within the current annual budget for FY2014-15. BOARD COMMITTEE REVIEW Acceptance of the Management Letter does not require committee review, however certain recommendations, particularly the Fund Balance Policy, will be brought before the Action Plan and Budget Committee for consideration prior to implementation. 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 Following Board acceptance of this report and the proposed response, staff will proceed with implementing the recommendations as described above. Attachment: 1. Management Letter from Chavan & Associates Prepared by: Michael Foster, Controller Andrew Taylor, Accountant Contact persons: Michael Foster, Controller Andrew Taylor, Accountant Page | 1 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408-217-8749 • E-Fax: 408-872-4159 sheldon@cnallp.com • www.cnallp.com Midpeninsula Regional Open Space District 330 Distel Circle, Los Altos, CA 94022 In planning and performing our audit of the basic financial statements of Midpeninsula Regional Open Space District as of and for the year ended March 31, 2014, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, we considered Midpeninsula Regional Open Space District’s internal control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of Midpeninsula Regional Open Space District’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. Our consideration of internal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. As a result of the procedures performed during our audit, we identified the following areas that could strengthen internal controls: 1. General Ledger and Fund Accounting As discussed with management during the audit, the District would benefit from a reorganization of the number and type of funds in its general ledger. This will establish the foundation needed to account for future bond issuances, reduce the risk of reporting errors and improve transparency. We recommend that the District include the following funds:  General Fund – The purpose of this fund is to handle the day to day operations of the District. No capital assets or long-term debt should be reported in this fund. Currently the District accounts for the restricted cash and activity from the Hawthorne property in a separate fund that is included in the general fund for reporting purposes. We recommend that the District continue this practice.  Capital Projects Fund(s) – The District can have one or multiple capital projects funds in its general ledger. However, we recommend that the District present one capital projects fund in its audited financial statements. The purpose of the capital projects fund is to account for resources used to purchase and construct capital related items. Typically a local government would report revenues from bond issuances and expenditures on construction projects in a Attachment 1 Page | 2 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408-217-8749 • E-Fax: 408-872-4159 sheldon@cnallp.com • www.cnallp.com capital projects fund. Note that cash restricted for debt service requirements in a bond issuance should be reported as revenue and cash in a debt service fund and not in a capital projects fund.  Debt Service Fund(s) – The District can have one or multiple debt service funds in its general ledger. However, we recommend that the District present one debt service fund in its audited financial statements. The purpose of a debt service fund is to account for the restricted cash required to be set-aside from bond issuances, the property taxes collected to pay future debt service requirements, and the actual payment of future debt service requirements. The balance sheet will generally include cash with fiscal agent for both the reserve requirement and the balance of any collections over payments made during the year.  General Fixed Assets Fund – The purpose of this fund is to account for all property, plant, equipment (Capital Assets) and related depreciation owned and maintained by the District. The District should remove all Capital Asset balances from its general fund. The general fixed assets fund is not a true fund for accounting purposes and a separate fund for the fixed assets will not be presented in the audited financial statements. However, having this fund in the general ledger will provide more accountability, improved reporting and allow the District to convert from the governmental fund financial statements to the government-wide financial statements more efficiently. As an alternative, the District may be able to utilize a fixed assets module within its current general ledger software that accomplishes the same goals.  General Long-Term Debt Fund – The purpose of the general long-term debt fund is to account for all of the District’s long-term debt. The items to include in this fund would be promissory notes, revenue bonds, general obligation bonds, compensated absences, net OPEB assets/liabilities, deferred losses on early retirement of debt, premiums on the issuance of debt, discounts on the issuance of debt and any other items that have the potential to be debt and long-term in nature. Note that the net OPEB asset should be included in the GLTDF because it can be an asset or liability depending on how it is funded. The GLTDF is not a legal fund and does not require a board resolution. This fund would be for internal use only and improve the accountability of the District’s long-term debt. The District would use this fund to convert from the governmental fund to the government-wide financial statements. 2. Project Accounting During the audit, we discussed the benefits of tracking expenditures for capital projects by project and resource. In conjunction with our recommendation to expand the use of funds in the District’s general ledger, the District is in the process of restructuring its chart of accounts to improve the accountability over spending of bond proceeds. It appears that the District will accomplish this by utilizing the modules within the District’s current software and by modifying the District’s current chart of accounts. An example of a typical chart of accounts for local governments with multiple resources and projects is Fund-Resource-Function-Department- Project-Object (000-0000-0000-000-0000-0000). 3. Grant Billing and Reconciliation In order to improve the control over grant billings, related receivables and allowable grant expenditures, we recommend that the District have staff in Administrative Services prepare a reconciliation of grant awards, expenditures, claims and receipts by grant. The name of the grant, Attachment 1 Page | 3 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408-217-8749 • E-Fax: 408-872-4159 sheldon@cnallp.com • www.cnallp.com grant number, CFDA number (if federal), award date and end date should be included in the master reconciliation. This only applies if the District continues to receive federal and state grants. 4. New Employee Checklists The District has a procedure where a new employee checklist is completed for all new employees. However, the checklist is not kept in the employee’s file. In order to ensure compliance with federal and state requirements, we recommend that the District maintain a copy of the new hire checklist in each new employee’s file going forward. This document provides a clear audit trail and reduces the risk of error. 5. Fund Balance Policy As discussed with management during the audit, we recommend that the District pass a resolution adopting a fund balance policy as required by GASB 54. The policy should identify the required components of fund balance and the level of management authorized to approve balances in each component. The following summarizes the categories of fund balance:  Nonspendable fund balance includes amounts that cannot be spent either because it is not in spendable form or because of legal or contractual constraints. For example, prepaid insurance.  Restricted fund balance includes amounts that are constrained for specific purposes which are externally imposed by providers, such as creditors or amounts constrained due to constitutional provisions or enabling legislation.  Committed fund balance includes amounts that are constrained for specific purposes that are internally imposed by the government through formal action of the highest level of decision making authority and does not lapse at year-end. Committed fund balances are imposed by the District’s board of directors.  Assigned fund balance includes amounts that are intended to be used for specific purposes that are neither considered restricted or committed. Fund balance may be assigned by the General Manager or other management as deemed appropriate by the board and identified in the District’s policy.  Unassigned fund balance includes positive amounts within the general fund which have not been classified within the above mentioned categories and negative fund balances in other governmental funds. The District can label amounts within each fund balance type as needed. For example, assigned fund balance can include reserves for contingencies. 6. Grant Documentation and Organization We recommend that each grant reimbursement claim include support only for the specific claim made and that each claim be printed and directly supported by invoices and general ledger reports Attachment 1 Page | 4 1475 Saratoga Ave, Suite 180, San Jose, CA 95129 Tel: 408-217-8749 • E-Fax: 408-872-4159 sheldon@cnallp.com • www.cnallp.com in chronological order behind that claim in the file. Only support for expenditures actually included in the reimbursement claim should be included in the file and directly behind the claim document. We also recommend that the District include a reconciliation in the file directly behind the claim for any differences from a general ledger report and a reimbursement request. The purpose of this communication, which is an integral part of our audit, is to describe, for management and those charged with governance, the scope of our testing of internal control and the results of that testing. Accordingly, this communication is not intended to be and should not be used for any other purpose. San Jose, CA July 3, 2014 Attachment 1 R-14-112 Meeting 14-23 August 28, 2014 AGENDA ITEM 6 AGENDA ITEM Professional Services Contract Authorization for a Financial and Operational Sustainability Model Study GENERAL MANAGER’S RECOMMENDATION Authorize the General Manager to enter into a professional services contract with Management Partners, of San Jose, CA, for a not-to-exceed amount of $118,690, which includes the project proposal amount of $107,900 and a ten percent contingency amount of $10,790, to complete a Financial and Operational Sustainability Model Study. SUMMARY Completion of an organizational management study is identified as a major project in the Fiscal Year 2014-15 Action Plan and Budget. On June 27, 2014, following the successful passage of Measure AA, the District released a Request for Qualifications and Proposals (RFQP) for a Financial and Operational Sustainability Model (FOSM) study. The purpose of the FOSM study is to evaluate existing District workflow processes, staff capacity, and organizational structure and identify options to accelerate completion of high priority projects while continuing to carry out the daily on-going business of the District in a financially prudent and sustainable manner. Eight consulting firms attended the mandatory pre-proposal meeting on July 8 and seven firms submitted proposals before the July 24 deadline. Following proposal review by a five member staff team, the top three firms were interviewed by a four member staff panel on August 12. Following interviews, thorough reference checks were performed for the top two firms. The interview team then presented their top-recommended firm to the General Manager. The General Manager recommends to the Board the selection of Management Partners to conduct the FOSM study for a not-to-exceed amount of $118,690. DISCUSSION Background In 2011, the Board of Directors adopted a Strategic Plan that purposefully balances the activities of the District between the restoration, public access/education, and acquisition legs of the Mission. Subsequently, the District’s Vision Plan was completed, with broad public input, identifying 54 significant projects to pursue over the next 30 or more years. In order to fund the capital costs of the 25 highest-priority projects, a general obligation bond measure was placed on R-14-112 Page 2 the June 3, 2014 ballot. Measure AA successfully passed, and the District is now authorized to issue up to $300 million in bonds over the next 30 years to finance the capital costs of the high priority projects. The District is now at a point in its history where it needs to look ahead and assess how its current staffing levels, structure, and processes need to be augmented or reconfigured to best deliver the priority actions of the Vision Plan in a responsive manner to the public’s interest: efficiently and effectively, within required project timeframes, and in a financially sustainable manner. The Financial and Operational Sustainability Model study has been designed to address the following central question: How should the District be structured (department and division structures and work flow processes), and staffed to most effectively and efficiently implement the top 25 Vision Plan projects, while affording on-going operational costs created by those projects and continuing the District’s current operational workload and projects that are not part of the top 25 Vision Plan projects? To answer this question, the FOSM study will: 1. Develop and analyze critical organizational structure, workflow, and staffing questions; 2. Study the District’s existing financial and organizational conditions; 3. Research and evaluate other similar agencies’ and industry standard best practices; 4. Develop a set of options for improvements with relative advantages and disadvantages for each. Results and recommendations from the FOSM study will be considered by District management and inform into the future the General Manager’s organizational improvement recommendations to the Board of Directors. Selection Process The process for identifying and selecting a qualified firm to conduct this study began with staff research into the design of other agencies’ organizational studies, development of a detailed Request for Qualifications and Proposals (RFQP) setting forth the envisioned scope of work for such a study for the District, and creation of a list of more than 20 known consulting firms that may be interested in the project. The RFQP was finalized following review by Department Managers, the Vision Plan Implementation Guide team (now known as the Measure AA Projects team), and the Assistant General Managers, General Manager, General Counsel, and Controller. The RFQP was released on June 27, 2014 (directly sent to 22 firms and posted on the District’s website), and eight firms attended the mandatory pre-proposal meeting on July 8. The following seven firms submitted proposals by the July 24 deadline, with cost proposals that ranged from $71,000 to $149,000: • CPS-HR Consulting • Harvey M. Rose Associates, LLC • LA Consulting, Inc. • Management Partners • Matrix Consulting Group • Olive Grove • The Wilfred Jarvis Institute R-14-112 Page 3 These proposals were reviewed and rated by a five-member team consisting of the Controller, both Assistant General Managers, the Planning Manager, and the Skyline Area Superintendent. Proposals were evaluated according to the Evaluation Criteria specified in the RFQP: a. Quality of Proposal - Consistency with project and RFQP objectives - Demonstrates a thorough understanding of the project and the District - Fulfills proposal requirements as described in this RFQP - Overall presentation of proposal: clear, concise, and relevant b. Project approach - Proposed approach to executing the project - Proposed approach to coordination with District project team - Ability to meet project schedule c. Implementation Expertise - Proven track record and technical ability to accomplish the purpose of the study - Background, qualifications, experience, and expertise on similar projects, including track record of completing similar projects on schedule and within budget (or clear explanations of cost overruns). d. Project Fee & Insurance - Reasonableness of the fee requested to do the work and comparability of the fee to similar services offered by other qualified consultants. - Ability to provide appropriate insurance in required amounts. The review panel arrived by consensus on a clear top three list of proposers to advance to the interview phase. Interviews were held on August 12, 2014. The panel consisted of Assistant General Manager Woodhouse, Planning Manager Mark, Skyline Area Superintendent Malone, and Skyline Area Maintenance Supervisor Beckman. The consensus top two firms following the interviews were then reference checked through a process involving conversations with four references for each of the two firms. The interview team then presented their final recommendation to the General Manager, who affirmed Management Partners as the top selection. Management Partners is a national consulting firm with offices in San Jose and Costa Mesa, CA, and Cincinnati, Ohio. They were founded in 1994 with the specific mission to help local government leaders improve their service to the public. Management Partners is staffed with 80 professionals who are experienced public service managers as well as qualified management consultants. They have served more than 200 California local governments and through this experience have insight into best practices and industry standards with respect to all public services. For this project, they have assembled a robust team of 11 members, which will be led and managed by their Regional Vice President Andrew Belknap. Mr. Belknap has been with the firm for fourteen years and has extensive prior experience as a city manager, public works director, and public finance and economics, as well as land conservancy experience with the Ojai Valley Land Conservancy. Project Workplan Summary Based on the Scope of Work identified in the RFQP and augmented with their experience on similar projects, Management Partner’s proposal includes six workplan activities, summarized as follows: R-14-112 Page 4 1. Project kick-off, scoping, and scheduling: This activity will carefully define expectations and roles and responsibilities, including background information and logistics related to scheduling staff interviews, regular update meetings with the project team, and a project launch communication to staff and the Board; 2. Finalize Work Plan: A project work plan showing detailed tasks and sub-tasks will be finalized based on the project kick-off meeting results; 3. Research Phase: The details of this significant activity are summarized in Attachment 1, an excerpt from the draft scope of work for the contract. In summary, this activity includes review of all key documents, interviews and focus groups with staff and workgroups, review of financial information, identification of key project types and project delivery issues, field tours as necessary, identification of evaluation criteria, and a preliminary benchmarking plan. At the conclusion of this activity, Management Partners will have a complete understanding of the District’s current and future responsibilities, its organizational culture, and the challenges for where the District is headed; 4. Analysis Phase: The details of this significant activity are summarized in Attachment 2, an excerpt from the draft scope of work for the contract. In summary, this activity will analyze the results of the research phase, further develop the evaluation criteria/performance objectives, and conduct benchmarking with other agencies’ best practices. A critical milestone during this activity will be a check-in and update with the full Board of Directors or a Board Committee. At the conclusion of this activity, Management Partners will have developed potential options for how the District moves forward, which will be further developed in the next activity; 5. Develop Sustainable Organization Models: This activity will develop two or three model options for organizational restructuring and revisions to workflow processes, along with staffing recommendations for consideration by the District. Each model will have a detailed rationale, explaining advantages and disadvantages; 6. Preparation of Draft and Final FOSM Study Reports: This final activity entails preparation and review of the report, a study session with the Board, drafting of an implementation plan for the recommendations, and a final presentation to the Board for acceptance of the report. These activities constitute the core of the FOSM study as identified in the RFQP and Management Partners’ proposal, and will be confirmed and refined during activities 1 and 2 at the beginning of the project. FISCAL IMPACT Approval of the General Manager’s recommendation will cost the District a not-to-exceed amount of $118,690, which includes the project proposal amount of $107,900 and a ten percent contingency amount of $10,790, to complete a Financial and Operational Sustainability Model Study. The FY2014-15 Adopted Budget includes $100,000. The remaining $18,690 will be covered by savings elsewhere in the Services and Supplies budget. The General Manager recommends a ten percent contingency amount for this study in the event important activities arise, such as additional research, analysis, or modeling, that were not anticipated in the original scope of services. However, unless any such unanticipated activities come to light and are approved by the General Manager, staff anticipates that Management Partners will complete the study within the base budget amount. R-14-112 Page 5 BOARD COMMITTEE REVIEW This study was included in the Fiscal Year 2014-15 Action Plan and Budget, which was reviewed by the Action Plan and Budget Committee and recommended to the full Board in late February, 2014. Due to the magnitude and importance of this study, the scope of work anticipates full Board input during the study, unless the Board directs this input to a Board Committee. PUBLIC NOTICE Public notice was provided as required by the Brown Act. CEQA COMPLIANCE This item is not a project subject to the California Environmental Quality Act. NEXT STEPS Upon Board authorization, the General Manager will enter into a contract with Management Partners to conduct the FOSM study. The project kick-off meeting is anticipated to occur by the week of September 29, 2014. Completion of the FOSM study is targeted by January 31, 2015, and in time for Board consideration of initial implementation recommendations through the budget and action plan development process for Fiscal Year 2015-16. Attachments 1. Research Phase Scope of Work 2. Analysis Phase Scope of Work Responsible Department Head: Steve Abbors, General Manager Prepared by: Kevin S. Woodhouse, Assistant General Manager Attachment 1 Midpeninsula Regional Open Space Districl Financial and Operational Sustainability Model Study Activity 3: Conduct Organization-wide Scan for Stabilization Issues and Opportunities (Research Phase) This activity will represent the start of substantive work on the project. The goal of this activity is to completely understand the District's current and future responsibilities, as well as its organizational culture. We will focus on gaining this understanding so we can begin to formulate what elements will be required for a stable, efficient and effective future organization. In our many years of work we have found that virtually all organizations have evolved "best practices" in some facet of their operations. We have found that is beller to build from these • existing best practices within the organization than to "import" some new management or organizational system, so during this activity we will be identifying what the District currently does well, with an eye to growing these capacities as the organization expands to meet Measure AA requirements. A good deal of work in this activity will center on conducting interviews and focus groups with District staff and workgroups. Before we begin these activities in earnest, Management Partners' team will review important District documentation such as the Strategic Plan, budget and financial information, the Vision Plan, the Coastal Annexation Service Plan and other relevant documents. During this work we will build a repository of data to be used throughout the analysis phase of the project. We will include the above information and also previous budgets, budget analysis work, organization charts, position classifications and appropriate contracts. We will also familiarize ourselves with the open-space assets of the District by visiting representative preserves and projects. As will be shown in the section describing our proposed project team later in this proposal, our team includes planning, parks, and engineering experts that will gain a great deal of understanding from seeing the assets that the District must manage and the challenges inherent in restoration and public access projects. We know the assets are often on sensitive lands with numerous regulatory issues. After we have gained fqmiliarity on the District from work described above we will interview District leaders (including elected officials, as appropriate) to understand their perspectives on the challenges ahead. Because a critical focus of this work is to develop the organization to successfully implement the Vision Plan we will interview the Vision Plan Implementation team to understand the challenges ahead and how they differ from the District's historical work program. Specifically we will gain an understanding of all 54 Vision projects with particular emphasis on the 25 priority projects and the priorities as projected by staff over the next ten years. As part of this task we will also work with staff to identify key project types, which will be analyzed in rnore detail to gain an understanding of project delivery issues and to define appropriate project delivery objectives. This will help us develop the organizational capacity to meet objectives for the variety of projects for which the District is responsible. Another critical part of the research phase will be to meet with District financial staff to understand the financial model. We will need to understand the assumptions used in the model and the degree to which the District has flexibility with current operating revenues in the new Measure AA environment. During our interviews we will discuss with the District staff potential peer agencies and criteria for comparisons. We will explore what characteristics will make comparisons with other similar agencies beneficial. As explained in the next activity, peer benchmarking will be an important part of the analysis work. Attachment 1 Another important part of our work during this activity will be preparing for and holding focus groups with representative groups of District workers, especially frontline field staff involved in maintenance and ranger activities. Parteof Management Partners' methodology for focus groups is to develop two or three important questions for the focus group participants to discuss. These questions and the overall agenda for the focus groups will be developed based on the initial interview and research stage. Another part of our methodology for gathering input from important stakeholders is to develop and execute En online survey instrument. This this tool will be discussed during our project start activities. At the conclusion of Activity 3 we do not expect to have answers 'as to the best organizational .arrangements for the District, but we will have a complete list of issues and the "specifications" for what the District needs to become. Specifically we will have completed the following: • Obtained an understanding of the financial model and conducted sensitivity testing, so as to appreciate the constraints and opportunities facing the District. • Completed field tours to understand open space property in all stages of development and operations. Met with the VPIG team to understand the Vision Plan and project types and delivery issues. • Modeled workload and planned outcomes from Vision Plan including top 54 Vision Plan projects and 25 priority projects, including coastal annexation service plan obligations, as well as current activities. • Diagramed typical projects to understand workflow and issues associated with the package of projects the District is tasked with delivering. • Identified performance measures, other criteria and competencies critical to successful project delivery. • Developed draft guidelines/criteria for successful "going forward" organization. • Developed a preliminary benchmarking plan. At the conclusion of work on this activity, Management Partners will prepare a presentation to serve as the basis of a discussion with the project team. It will outline the sustainability issues that need to be addressed in the next phase of work. Management Partners, Inc. Attachment 2 Midpenfnsu!a Regional Open Space District Financial and Operational Sustainability Model Study Activity 4: Develop and Execute Analysis Plan to Create Innovative Options to Resolve Sustainability Issues Now we begin the primary analysis phase of the project. Our predominant task during this activity will be to take the preliminary guidelines/criteria developed in Activity 3 for the "going forward" organization and to finalize thern: This will allow the project team to begin focusing on organizational models that would provide the District with a sustainable, efficient and effective organization . • Many sustainability issues or questions will have been identified in Activity 3. Now Management Partners will "run these issues to ground" through the application of various analytical methodologies. This work will start with a thorough analysis of focus group and interview themes completed in the research phase. This analysis will disclose sustainability issues and also suggest potential solutions. The potential solutions developed by the Management Partners team, will now be tested with empirical analysis, using benchmarking and best practice identification/application methodologies. Benchmarking against the best state and national practices will be a thread that runs through this entire project. To ensure that the benchmarking work is of maximum utility, as discussed previously, early in the project we will define the appropriate criteria to be used in defining peer agencies, as well as national best practices. By focusing on the criteria that makes for valid comparisons, we will be able to identify peers that are meaningful and objectively derived. Since the service delivery profile of the District will vary across program areas, we will work with the GMO project team and staff to ensure benchmarks and best practices are measured in service delivery environments similar to that faced by the District. At this stage in the project we will also complete a research survey of how comparable agencies measure their performance and optimize resources. Sin,ce we are charged with ensuring that how agencies similar to Midpeninsula achieve maximum productivity and measurable performance at the least cost. This research will provide meaningful comparisons on such issues as capital project delivery, project planning and permitting, real estate operations, maintenance, and public access management. Alternative service delivery, such as contracting for services, and other ideas identified by the project team will be evaluated for potential utility to the District. Specific areas for benchmarking will include: • Identifying best practices relative to service, systems, and management in comparable agencies. • Identifying best practice mechanisms for measuring mission effectiveness. • Identifying best practice tools for optimizing resource allocation towards mission and for achieving maximum cost efficiencies. • Identifying staffing and service level norms in comparable agencies. In addition to identifying best practices via benchmarking we also use industry sources for such information. For example the process of delivering capital projects of various types has been examined by a variety of industry organizations such as the California Multi-Agency CIP Benchmarking Study, a group of large public agencies working to optimize project planning and delivery. Data sources exist for many of the types of project and administrative work accomplished by the District. Attachment 2 (At this juncture we want to mention that ollr final project cost budget slightly exceeded the District's budget of $100,000, by approximately $7,900. In looking at ways to reduce costs we concluded the logical place would be in the best practices and benchmarking area because we recommend a robust approach and this requires a significant investment of time. However, in the fee proposal section we offer two approaches: one that will meet the budget constraint by scaling back benchmarking while still meeting the needs of the District, and an "enhanced" benchmarking approach at a slightly higher cost.) Another tool Management Partners utilizes is the use of case studies to identify how other agencies have created best practice approaches. An example would be the CIP best management practices document created by the San Diego County Water Authority. Finally, Management Partners' work with public agencies all over the State of California is another 'source of best practice information. Having worked with over 70% of the cities in California with populations of over 100,000, we know what sy�tems are being successfully utilized. This work will allow us to finalize the draft evaluation criteria/guidelines previously developed. We envision an evaluation criteria matrix that provides the criteria developed, the rationale for the criteria and a discussion of potential alternatives for meeting the criteria. Because these will become crucial assumptions going into development of a master plan for the "going forward" organization, we expect it will be appropriate to present the results of the analysis to the Board of Directors or a Board Committee. Management Partners will develop an appropriate presentalion and review it with the GMO project team. Once the guidelines/criteria for successful "going forward" organization have been developed and approved we will be in position to finalize organizational concepts. Essentially'we will overlay the criteria and what we have learned about other successful organizations on the District's current organization to get a sense of what the realigned organization will look like. There will still be design work to do but the question of what needs to be accomplished will have been answered and we will have solid ideas about how the organization needs to develop to meet the sustainability objective. At this stage we will also be using the District's financial model to do some sensitivity testing and provide a "reality check" with respect to the future organization. Options developed in the next phase will have to fit within the umbrella of fiscal sustainability. To summarize, during Activity 4 we will have accomplished the following: • Analyzed results from interviews and focus groups, to determine potential sustainable organizational issues and solutions. • Conducted focused peer agency benchmarking. • Applied best practices from applicable fields (financial practices, CI P management, project planning, real property, infrastructure maintenance / operations) to further develop and refine evaluation criteria. • Developed performance objectives for successful sustainable organization, and created matrix of attributes of future organization together with rationale and options. • Review preliminary observations with GMO team. o Hold a workshop to discuss the performance objectives (evaluation criteria and guidelines with associated matrix) to be used in drafting organizational master plan. o Overlay best practices and other analytical work (evaluation criteria and guidelines) on Vision Plan working with VPIG team. Develop a preliminary idea of organizational attributes necessary for successful implementation, including preliminary costs and cost! benefit analyses. o Conduct a fiscal sustainability stress test using district financial model and needs identified in the task above. • Develop a presentation for GMO that discusses challenges in developing the optimal organizational approach to resource constraints. Outline possible options for stUdy during Activity 5. Management Partners, Inc. From:Jennifer Woodworth To:Jennifer Woodworth Subject:Board Member Questions for 8/28/14 Date:Wednesday, August 27, 2014 3:40:21 PM Attachments:image001.png Good afternoon all, Please see responses to Director Harris’s questions regarding tomorrow night’s agenda materials below in blue. Copies of the responses will also be available to the public at the meeting. If you have additional questions prior to the meeting, please send them as soon as possible, so staff may prepare a response. Thank you. Jen 1) If the Board approves the project list in October 2014, what if FOSM due as draft in December make other staffing or organizational recommendations? Given the overlapping nature of the FOSM and development of the project list, we will need to take an iterative approach between these two processes and the development of the Action Plan/Budget/5-Yr CIP. We will be feeding as much current information as we can on a continual basis to FOSM and FOSM will be feeding as much current information as it can to the Action Plan/Budget/CIP process between October and February. As such, it may be that not all of the staffing and organizational recommendations will be able to be incorporated into the new Action Plan/Budget/CIP by March (when final approval is scheduled). Those recommendations that do not make the Action Plan/Budget/CIP will be integrated at a later date, either through a separate Board authorization (if urgent) at Midyear or as part of the next year's Action Plan/Budget/CIP process. 2) When would an Ad Hoc start meeting if this is the will of the Board? The new Ad Hoc Committee would begin meeting as soon as possible in September. 3) For FOSM, can I get a copy of the full Management Partners proposal including the cost estimate? I think that there is information missing that would help me understand it better. Management Partners' full proposal, including activity breakdown and fee proposal, is now uploaded to Dropbox for Boardmembers' information. 4) Who is on the VIPIG team? Note: VPIG is now known as MAAP (Measure AA Projects) GM Office: Steve Abbors, Ana Ruiz, Kevin Woodhouse Administration: Warren Chan, Lynn Tottori Natural Resources: Kirk Lenington, Julie Andersen Operations: Brian Malone, Michael Newburn, Gordon Baillie Planning: Jane Mark, Tina Hugg, Meredith Manning, Gina Coony, Lisa Bankosh, Casey Hiatt Real Property: Mike Williams, Elaina Cuzick 5) What is the GMO team that Activity 4 mentions? The General Manager's Office (GMO) team identified in Activity 4 will consist of both AGMs and the GM. Jennifer Woodworth, CMC District Clerk jwoodworth@openspace.org Midpeninsula Regional Open Space District 330 Distel Circle, Los Altos, CA 94022 P: (650) 691-1200 - F: (650) 691-0485