HomeMy WebLinkAboutItem 5g - Approve Grant Agreement for the Dixon Ranch Conservation Easement Item 5g
Department: Administration
Cost Center: 1005
For Agenda of: 6/7/2022
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Robert Hill, Sustainability & Natural Resources Official
SUBJECT: DIXON RANCH CONSERVATION EASEMENT
RECOMMENDATION
1. Approve a Grant Agreement with The Land Conservancy of San Luis Obispo County
in the amount of $100,000 towards the purchase of a Conservation Easement for the
Dixon Ranch; and
2. Authorize the City Manager to sign the Grant Agreement and any associated escrow
documents.
DISCUSSION
Background
The City of San Luis Obispo enjoys a long-standing public–private partnership with The
Land Conservancy of San Obispo County (LCSLO) in furtherance of land conservation
efforts within the City’s Greenbelt. Over the course of this nearly thirty-year relationship,
the City has partnered on numerous planning and land protection efforts, including the
Stenner Springs Natural Reserve, Maino Open Space, and Bowden Ranch Open Space
acquisitions, as well as the Guidetti Ranch, Stenner Ranch, Brughelli Ranch, and
O’Connor Ranch conservation easements, together with numerous other successful
projects.
Funding Request
LCSLO has reached an agreement to purchase a conservation easement interest in the
Dixon Ranch, located in the northeast portion of the City’s Greenbelt. On March 22, 2022,
the City received a letter from LCSLO requesting consideration of funding in the amount
of $100,000 towards the purchase of the Conservation Easement. LCSLO has secured a
primary grant from the State of California Department of Conservation’s Sustainable
Agriculture Land Conservation Program, as well as other private donations, and would
have all of the necessary funding to complete the transaction should Council approve the
request. The appraised value for the Conservation Easement is $1,020,000 (see
Attachment A, Draft Grant Agreement, and Attachment B, LCSLO Funding Request
Letter).
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Item 5g
Property Description and Conservation Values
As stated in LCSLO’s letter:
The Dixon Ranch conservation easement project will protect 200 acres within the
City’s Greenbelt. The property sits just above Edna Valley within a complex of long-
standing agricultural lands. Dixon Ranch is a prominent part of the San Luis Obispo
Greenbelt and is visible from many City vantage points and open space areas. The
ranch features serpentine outcrops that support rare and endemic plants,
remarkable sycamore-lined creeks, and diverse wildlife habitat. Agricultural uses
include carefully managed livestock grazing and a small family orchard.
The project will also accrue climate action and climate resilience benefits through the
prohibition of intensive land use changes and development on the perip hery of the City,
maintenance of upper watershed functions, local food production, and by preventing
further encroachment into the Wildland-Urban Interface where wildfire risk is a concern.
Previous Council Action
City Council’s most recent notable action related to land protection efforts within the San
Luis Obispo Greenbelt is the adoption of the Major City Goal (MCG) included with the
2021-23 Financial Plan, Climate Action, Open Space Protection, and Sustainable
Transportation. The MCG states that, “Continued proactive efforts in furtherance of
achieving the vision to expand and sustain the San Luis Obispo Greenbelt ” (p.56) is
expected. Further, MCG Strategy 4.3 states, “This Major City Goal work program affirms
the City's commitment to continuing to purchase open space land interests for permanent
conservation, habitat and watershed protection, and ensuring the integrity of wildlife
corridors and ecosystem functions” (p. 57).
Policy Context
There are numerous policies and programs included in the Conservation and Open Space
Element (2006) of the City’s General Plan. Most pertinent to this project are Program
8.7.1 (J) and (L) and Policy 9.1.1 (A):
8.7.1 Protect open space resources.
The City will take the following actions to protect open space, an d will encourage
individuals, organizations, and other agencies to take the same actions within their
areas of responsibility and jurisdiction:
J. Improve interagency cooperation for open space acquisition, greenbelt, creeks,
wetlands, and wildlife habitat protection in open space areas by coordinating with
other government agencies and organizations having interest or expertise in
resource protection.
L. Establish mutually respectful, long-term relationships with landowners, and
conservation organizations such as land trusts, and local environmental
organizations.
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Item 5g
9.1.1 (A): Preserve natural and agricultural landscapes.
The City will implement the following policies and will encourage other agencies
with jurisdiction to do likewise:
A. Natural and agricultural landscapes that the City has not designated for urban
use shall be maintained in their current patterns of use.
Public Engagement
The Major City Goal strategy to protect open space is reflective of extensive public
engagement during the 2021-23 Financial Plan process, including the Community Forum,
Goal Setting Workshop, numerous survey and public input opportunities, Strategic
Budget Direction, and the final adoption of the Financial Plan itself. Any member of the
public may put forward either written or verbal comments to the City Council pertaining to
this agenda item.
CONCURRENCE
The Community Development Department concurs with the recommended action due to
the role of the proposed Conservation Easement in service of implementing the Land Use
Element (2014) of the City’s General Plan.
ENVIRONMENTAL REVIEW
The recommended action to provide grant funding for the purchase of a Conservation
Easement is not considered a Project under the California Environmental Quality Act.
Further, the acquisition of a Conservation Easement is categorically exempt from the
provisions of the California Environmental Quality Act (CEQA) because it involves
"acquisition of lands for fish and wildlife conservation purposes including (a) preservation
of fish and wildlife habitat...” (CEQA Guidelines § 15313), and because it involves the
"acceptance of ... easement interests in order to maintain the open space character of
the area" (CEQA Guidelines § 15317).
FISCAL IMPACT
Budgeted: No Budget Year: 2021-23
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
State
Federal
Other: Capital
Outlay via LRM
$230,000 $100,000 $130,000
Total $230,000 $100,000 $130,000 N/A
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Item 5g
The City Council annually approves funding for Open Space Protection through the Local
Revenue Measure (LRM). The current balance of $230,000 is sufficient to cover the amount
LCSLO has requested to complete the funding package and acquire the Conservation
Easement. The City’s grant of funds, if approved, would represent 9.8% of the total
purchase price. All ongoing costs and long-term administration of the Conservation
Easement are the responsibility of LCSLO.
ALTERNATIVES
The City Council may consider alternatives, including:
1. Request additional information or clarification from staff prior to taking action
on the recommendation.
2. Continue the item with specific direction if more information or discussion time
is required before taking action. This is not recommended as the transaction
described herein is consistent with prior City Council priorities and there are time
sensitivities associated with LCSLO’s Grant Agreement term.
ATTACHMENT
A. Draft Grant Agreement
B. LCSLO Funding Request Letter dated March 22, 2022
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GRANT AGREEMENT FOR
DIXON RANCH CONSERVATION EASEMENT ACQUISITION
THIS Grant Agreement (the “Agreement”) is made on ___________________________
by the CITY OF SAN LUIS OBISPO (“CITY”) and THE LAND CONSERVANCY OF
SAN LUIS OBISPO COUNTY (“LAND CONSERVANCY”) who are collectively
referred to as the “Parties”.
RECITALS
WHEREAS, LAND CONSERVANCY has reached an agreement with Dan and
Lori Dixon to acquire a Conservation Easement interest (the “Conservation Easement”)
in land commonly known as the Dixon Ranch, thereby ensuring the preservation of
approximately two-hundred acres of real property (the “Property”) located within CITY’s
established Greenbelt boundary, which Property is identified as San Luis Obispo County
Assessor Parcel Number 044-021-016; and
WHEREAS, both CITY and LAND CONSERVANCY desire to ensure the
preservation of the Property consistent with goals and policies set forth in CITY’s
Conservation and Open Space Element of its General Plan pertaining to protection of
wildlife corridors and contiguous habitat, as well as to protect the scenic, open space, and
agricultural values of the Property in perpetuity; and
WHEREAS, the purchase price for the Conservation Easement is $1,020,000.00
pursuant to a qualified appraisal; and
WHEREAS, CITY, in consideration of a request from LAND CONSERVANCY,
and of the Parties’ mutual goals and long-standing partnership in land conservation,
desires to make a grant in the amount of $100,000.00 towards the purchase price of the
Conservation Easement; and
WHEREAS, LAND CONSERVANCY has secured a primary grant from the
State of California Department of Conservation’s Sustainable Agriculture Land
Conservation Program, as well as other private donations, that will provide the remaining
funds needed to complete the transaction and provide for the long-term monitoring and
stewardship of the Conservation Easement; and
WHEREAS, LAND CONSERVANCY will enter into to the Conservation
Easement subject to certain contractual requirements by the State of California
Department of Conservation that include various protective measures to ensure that the
purposes of public expenditures of funds are adhered to and carried out in perpetuity; and
NOW, THEREFORE, in consideration of the promises herein and the mutual
benefits accruing to the Parties, and to the general public from the acquisition of the
Conservation Easement exclusively for conservation purposes as contemplated herein,
CITY and LAND CONSERVANCY hereby agree as follows:
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A. The Recitals herein are incorporated into and made a part of this
Agreement.
B. CITY shall make a grant of funds to LAND CONSERVANCY in the
amount of $100,000.00 which shall be deposited to an escrow account at First American
Title Company, number 5901522, which has been established for the benefit of this
transaction, upon LAND CONSERVANCY’s written request made at least 14 days in
advance to do so.
C. CITY’s funds shall only be used if, and only if, all other funds are
deposited to escrow and the Conservation Easement Deed that will encumber the
Property is duly executed, notarized, and recorded with the San Luis Obispo County
Clerk / Recorder. If the transaction is substantially delayed or does not take place for any
reason whatsoever, then LAND CONSERVANCY shall cause First American Title
Company to promptly return the funds to CITY.
D. LAND CONSERVANCY, or its successors and assigns, shall hold all
right, privilege and interests accruing from ownership of the Conservation Easement in
perpetuity.
STANDARD PROVISIONS
1. Amendments
CITY and LAND CONSERVANCY may amend this Agreement at any time provided
that such amendments make specific reference to this Agreement, and are executed in
writing, signed by a duly authorized representative of each organization, and approved by
the City Manager. Such amendments will not invalidate this Agreement, nor relieve or
release the CITY or LAND CONSERVANCY from its obligations under this Agreement,
except as expressly provided in writing in any subsequent amendments.
2. Financial Assurance
CITY reserves the right to request copies of invoices, account statements, or audits of
LAND CONSERVANCY’s financial records pertinent to this Agreement.
3. Civil Rights
Title VI of the Civil Rights Act of 1964
Under Title VI of the Civil Rights Act of 1964, no person will, on the grounds of race,
color, creed, religion, sex or national origin, be excluded from participation in, be denied
the benefits of, or be subjected to discrimination under any program or activity receiving
federal financial assistance.
Section 109 of the Housing and Community Development Act of 1974
No person in the United States will on the grounds of race, color, creed, religion, sex or
national origin be excluded from participation in, be denied benefits of, or be subjected to
discrimination under any program or activity funded in whole or in part with funds made
available under this title.
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Age Discrimination Act of 1975, as Amended
No person will be excluded from participation, denied program benefits, or subjected to
discrimination on the basis of age under any program or activity receiving federal
funding assistance. (42 U.S.C. 610 et. seq.)
Section 504 of the Rehabilitation Act of 1973, as Amended
No otherwise qualified individual will, solely by reason or his or her disability, be
excluded from participation (including employment), denied program benefits, or
subjected to discrimination under any program or activity receiving Federal funds. (29
U.S.C. 794)
Public Law 101-336, Americans with Disabilities Act of 1990
Subject to the provisions of this title, no qualified individual with a disability will, by
reason of such disability, be excluded from participation in or be denied the benefits of
the services, programs, or activities of a public entity, or be subjected to discrimination
by any such entity.
4. Assignability
LAND CONSERVANCY will not assign or transfer any interest in this Agreement
without the prior written consent of the City.
5. Conflict of Interest
No member of the CITY’s governing body and no other public official of such locality,
who exercises any functions or responsibilities in connection with the planning or
carrying out of the project, will have any personal financial interest, direct or indirect, in
this agreement; and LAND CONSERVANCY will take appropriate steps to assure
compliance.
LAND CONSERVANCY agrees to abide by the provisions of 24 CFR 84.42 and
570.611, which includes maintaining a written code or standards of conduct that will
govern the performance of its officers, employees or agents engaged in the award and
administration of contracts supported by Federal funds.
6. Severability
If any provision of this Agreement is held invalid, the remainder of the Agreement will
not be affected thereby, and all other parts of this Agreement will nevertheless be in full
force and effect.
7. Entire Agreement
This Agreement constitutes the entire agreement between CITY and LAND
CONSERVANCY for the use of funds received under this Agreement and it supersedes
all prior communications and proposals, whether electronic, oral, or written between City
and LAND CONSERVANCY with respect to this Agreement.
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8. No Agency or Employment
LAND CONSERVANCY is solely responsible for the conduct of its activities in
association with this Agreement. Nothing in this Agreement creates a formal partnership,
agency, joint venture, employment, or any other type of relationship. LAND
CONSERVANCY shall not represent itself as an agent of CITY for any purpose and has
no authority to bind the CITY in any manner whatsoever. LAND CONSERVANCY and
all of its agents, representatives, or participants in an y manner in the performance of its
obligations and duties hereunder, shall be employees, independent contractors, or
volunteers solely of LAND CONSERVANCY. They shall not for any purpose be
considered employees or agents of the CITY.
9. Indemnification
LAND CONSERVANCY agrees, to the fullest extent permitted by law, to defend,
indemnify, and hold harmless CITY and its officers, directors, affiliates, employees, and
agents, from and against any and all claims, liabilities, losses and expenses (including
reasonable attorney’s fees) directly, indirectly, wholly or partially arising from or in
connection with any act or omission of LAND CONSERVANCY, its employees or
agents, in accepting the funds, in expending or applying funds, or in carrying out the
project as set forth.
CITY agrees, to the fullest extent permitted by law, to defend, indemnify, and hold
harmless LAND CONSERVANCY its officers, directors, affiliates, employees, and
agents, from and against any and all claims, liabilities, losses and expenses (including
reasonable attorney’s fees) directly, indirectly, wholly or partially arising from or in
connection with any act or omission of CITY, its employees or agents, in expending or
applying funds, or in carrying out the project as set forth.
10. Termination
The CITY or LAND CONSERVANCY may initiate termination of this Agreement in the
event of a substantial breach of the terms of this Agreement, or in the event of gross
negligence, upon ten (10) days written notice to the other Party. Said termination shall be
effective thirty (30) days after receipt by certified mail of a notice of termination to the
other Party.
11. Compliance with Human Relations Commission “By Laws”
LAND CONSERVANCY hereby certifies and agrees that it will comply with the Human
Relations Commission’s “Bylaws” which creates an environment within the City in
which all persons can enjoy equal rights and opportunities regardless of race, religion,
sex, national origin, sexual orientation, age, physical, mental or economic status.
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12. Notices
For purposes of notice under this agreement, all notices shall be considered effective
upon being sent by certified mail to the following addresses:
To CITY:
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
Attn: City Manager
To LAND CONSERVANCY:
The Land Conservancy of San Luis Obispo County
1137 Pacific Street, Suite A
San Luis Obispo, CA 93401
Attn: Executive Director
IN WITNESS WHEREOF, the Parties have executed the foregoing as of the date year
first above written.
CITY OF SAN LUIS OBISPO:
By: ________________________________ Date:_____________________
Derek Johnson, City Manager
APPROVED AS TO FORM:
By:_________________________________ Date:_____________________
J. Christine Dietrick, City Attorney
THE LAND CONSERVANCY OF SAN LUIS OBISPO COUNTY:
By:_________________________________ Date:______________________
Kaila Dettman, Executive Director
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March 22, 2022
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Attn: Derek Johnson, City Manager
c/o Bob Hill, Sustainability & Natural Resources Official
RE: Dixon Ranch Conservation Easement
Dear Mr. Johnson,
The Land Conservancy of San Luis Obispo County (“The Land Conservancy”) respectfully requests the
City Council’s consideration of $100,000 in funding toward a conservation easement on the Dixon
Ranch, located on Righetti Road south of San Luis Obispo. The Dixon Ranch is part of the scenic
greenbelt surrounding the City of San Luis Obispo (“City”). A conservation easement on this ranch will
permanently protect a suite of scenic, agricultural, and environmental conservation values.
Project Overview
The Dixon Ranch conservation easement project will protect 200 acres within the City’s Greenbelt. The
property sits just above Edna Valley within a complex of long-standing agricultural lands. Dixon Ranch is
a prominent part of the southern San Luis Obispo Greenbelt and is visible from many City vantage points
and open space areas. The ranch features serpentine outcrops that support rare and endemic plants,
remarkable sycamore-lined creeks, and diverse wildlife habitat. Agricultural uses include carefully
managed livestock grazing and a small family orchard.
The proposed conservation easement will permanently protect these scenic, environmental, and
agricultural conservation values by restricting development to the current developed footprint and
prohibiting future subdivision of the property. Additional restrictions will prohibit intensive land uses,
activities that lead to soil erosion, unnecessary removal of native vegetation, and other perpetual land use
restrictions. The outcome will be the permanent protection of the Dixon Ranch for conservation purposes
as part of the scenic viewshed south of San Luis Obispo.
Support for City Goals
Protecting the Dixon Ranch will address multiple City policy goals. The City’s 2021-2023 Financial Plan
includes specific, community-supported climate action and open space protection as identified in the City
Council’s adopted Major City Goal. In addition, a core objective of the Conservation and Open Space
Element of the City’s General Plan is to implement the Greenbelt Projection Program. Implementation of
this program includes stewardship, planning, and conservation acquisitions. The Dixon Ranch
conservation easement will directly support this objective by protecting 200 acres within the City’s
Greenbelt.
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The permanent protection of the Dixon Ranch will further support the City’s climate action goals in two
key ways. First, the diverse conservation values of the property will be protected from future land use
change. This will allow the ranch to adapt to climate change without additional stressors. Second,
prohibiting intensive land use change, particularly subdivision and residential development, will limit
exurban development opportunities within San Luis Obispo’s greenbelt. Additional protected properties
within the greenbelt will prevent encroachment of the wildland urban interface near the City, encourage
development closer to built areas, and prevent additional strain from exurban development, such as
vehicle miles and the need for residential services. This variety of benefits directly address climate
impacts to both ecosystem functions and human wellbeing due climate change, including wildfire risk,
clean air and water, and maintaining existing wildlife habitat.
Finally, the proposed Dixon Ranch conservation easement would add to the long history of successful
conservation partnerships between the City and The Land Conservancy. Multiple greenbelt, open space,
wildlife habitat, and riparian protection projects have been completed through this partnership. This
includes Bowden Ranch, Stenner Springs, Maino Open Space, and Guidetti Ranch, among many other
conservation and ecosystem restoration projects in the greater City region. Dixon Ranch is an important
contribution to this remarkable legacy of successful land conservation projects that happened only
through the long-standing public / private partnership between the City and The Land Conservancy.
Funding, Timeline, and Long-Term Stewardship
City funding toward this conservation easement will be heavily leveraged by the California Department of
Conservation’s Sustainable Agricultural Lands Conservation Program ($690,000) and private donations
to The Land Conservancy specifically gifted for this project ($230,000). These two match funding sources
amount to 90% of the appraised conservation easement value of $1,020,000. This easement will be fully
funded and able to close before December 2022 should the City choose to contribute $100,000
representing the final “gap” needed to successfully complete this project.
Once acquired, the conservation easement will be held and stewarded by The Land Conservancy. The
permanent conservation of the property will be realized through a perpetual commitment to annual
monitoring of the easement and, if required, enforcement of easement terms. Funding for this perpetual
stewardship commitment will be donated by the landowner at the time of close and will be held in The
Land Conservancy’s dedicated Easement Stewardship and Defense account.
Thank you for your consideration of this funding request to protect a key property within the City
Greenbelt. Maps and photos of the Dixon Ranch have been included below. Please contact Kyle Walsh,
Conservation Director at 805-544-9096 or kylew@lcslo.org with any questions or to request additional
information.
Sincerely,
Kyle Walsh
Conservation Director
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Photos
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