HomeMy WebLinkAbout06/02/1998, C5 - AUTHORIZATION OF APPLICATION FOR GRANT FUNDS FROM THE FEDERAL FARMLAND PROTECTION PROGRAM c `°�
council
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j acEnaa Report
CITY OF SAN LUIS OBISPO
FROM: Ken Hampian,Assistant City Administrative Officer
Prepared By: Neal HavW Natural Resources Manager
SUBJECT: AUTHORIZATION OF APPLICATION FOR GRANT FUNDS FROM THE
FEDERAL FARMLAND PROTECTION PROGRAM
CAO RECOMMENDATION
Adopt a resolution authorizing submittal of a grant application to the U. S. Natural Resources
Conservation Service in the amount of $350,000 in support of acquisition of a conservation
easement on the Morganti Ranch on Los Osos Valley Road.
DISCUSSION
The Federal Agriculture Improvement and Reform Act of 1996 established the Farmland Protection
Program(FPP)to supplement State and local farmland protection programs. This program makes
Federal fimds available to States, local governments, and Indian Tribes on a matching basis to
acquire conservation easements on prime, unique or other important agricultural soils for the
purpose of limiting conversion of such sites to nonagricultural uses.
The City of San Luis Obispo has, as part of its Greenbelt program, held discussions with a number
of landowners within the Greenbelt area One of these is the Morganti family, owners of a 160 acre
farm property adjacent to the City limits on Los Osos Valley Road. The Morganti Ranch was rated
as one of the highest priorities for acquisition in the "Saving Special Places" study because of its
strategic location adjacent to the City limits and importance in providing a variety of community
benefits. Family representatives have indicated interest in a conservation transaction with the City
that would preserve the agricultural productivity and use of the site, and preserve the wetlands
which occupy about one-third of the property. The grant, if successful, would provide finding
support for this transaction,which staff estimates to be in the range of$700,000.
FPP regulations require that a proposal provide for acquisition of an easement or other interest in
land for a minimum of 30 years, with preference given to those proposals providing permanent
protection. Higher priority will also be given to proposals which help to create or to buffer large
tracts of viable agricultural land, and on proposals which link to other programs or efforts that
complement farmland protection objectives. Staff feels that these criteria will give a proposal for
conservation of the Morganti Ranch a high priority, due to its location, and to the occurrence of
complementary program opportunities associated with the wetlands on the property.
FPP regulations also require that program fiords be matched on at least a 50-50 basis, and it is for
that reason that a grant request of$350,000 is recommended Application deadline is June 18,
1998,with notification to successful proposers expected to be made by September 30, 1998.
As a land purchase for conservation purposes,this project is exempt from both CEQA and NEPA.
FISCAL IMPACT
The grant,if successbA will have a beneficial fiscal effect by providing outside finding support for
this project. Staff has evaluated the project, and we believe that the 50% match may be
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accomplished with a mix of local, State, and other Federal funds that would be used to acquire fee
title to the wetland portion of the property, and support the easement transaction. A successful
program would ultimately require commitment of City General Funds on the order of$150,000.
General Fund monies allocated in both years of the 1997-99 Financial Plan were expended to
complete the Bishop Peak transaction. However, Council has indicated its willingness to consider
further General Fund allocations in order to match outside funding source to successfully complete
priority open space transactions. A successful transaction on the Morganti property, as presently
envisioned by staff, would meet these conditions. A final determination in this regard, however,
does not need to be made unless and until we are successful in obtaining the proposed grant.
ALTERNATIVE
The Council could decide to not authorize the application. This is not recommended as the
application itself does not constitute a commitment on the part of the City or of the Morganti
family. Assuming that discussions with the Morganti family are successfiil, the grant funds will
significantly assist in obtaining the fiords necessary for the acquisition.
Attachments
Resolution
Grant Program Summary
Location Map
�S
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING APPLICATION FOR GRANT FUNDS FOR THE FARMLAND
PROTECTION PROGRAM UNDER SECTION 388 OF THE FEDERAL
AGRICULTURE IMPROVEMENT AND REFORM ACT OF 1996 FOR THE PROJECT
KNOWN AS MORGANTI PROPERTY FEE AND EASEMENT ACQUISITION
WHEREAS, the Congress of the United States has enacted the Agriculture
Improvement and Reform Act of 1996, which provides funding support to States, Tribes,
and units of local government for the acquisition of conservation easements or other
interest in land for areas of prime, unique, or other productive soil; and
WHEREAS, the United States Department of Agriculture, Commodity . Credit
Corporation and Natural Resources Conservation Service have established procedures
and criteria for submittal and review of grant proposals; and
WHEREAS, successful applicants will enter into a cooperative agreement with the
Natural Resources Conservation Service State Conservationist; and
WHEREAS, the City of San Luis Obispo ("City") is a California Charter Municipal
Corporation; and
WHEREAS, City, acting through its City Council and through adopted public
procedures, has determined that certain lands surrounding the City of San Luis Obispo
are important to the scenic character, healthy natural environment, and economic and
social well-being of the community and its citizens and has designated these lands as the
San Luis Obispo Greenbelt; and
WHEREAS, within said Greenbelt, City seeks to preserve and conserve
characteristics such as visual quality, wildrife habitat, healthy agricultural economy, and
rural setting through a variety of techniques and programs, including purchase of land
and conservation easements; and
WHEREAS, the purchase. of fee title and/or conservation easements upon the
above-mentioned land in the judgment of City would act to preserve the values indicated
above and serve an important municipal purpose; and
WHEREAS, the City Council of the City of San Luis Obispo finds that the project is
exempt under Section 15325 of the California Environmental Quality Act (CEQA) and is a
categorical exclusion under Section 58.35(a)(5) of the National Environmental Policy Act
(NEPA), as the project consists of the acquisition of land or easements for wildlife habitat
and agricultural conservation purposes.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San
Luis Obispo hereby:
1. Authorizes the submittal of an application to the Farmland Protection Program of
the United States Department of Agriculture for grant support for the above project; and
2. Appoints the City Administrative Officer as agentof the City to conduct all
negotiations, execute and submit all documents, including, but not limited to, applications,
agreements, amendments, payment requests and so on, which may be necessary for the
completion of the aforementioned project.
Approved and adopted this 2nd day of June, 1998.
On motion of , seconded by and
on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of . 1998.
Allen K. Settle, Mayor
ATTEST:
Bonnie L. Gawf, City Clerk
APPROVED AS TO FORM:
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uonsmaiion Novisions
Farmland Protection Program Request[or Proposals(320!98)
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1 DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Natural Resources Conservation Service
Farmland Protection Program
AGM'Y-Commodity Credit Corporation and Natural Resources Conservation Service,United States Department
of Agriculture(USDA).
ACaON Notice of request for proposals (RFP).
SUMMARY.•-Swim 388 of the Federal Awic:uhure Improvement and Reform Act of 1996(the 10%Ad)
established the Farmland Prokmiun Propun(FPP). The FPP is administered under the arpavi dun of the Chirf or
dw Naturrd Rc wuruca Conn vadun Servioe(MRCS)who is a Vice Prusideut of the Commodity Crodit Cuipuiatiun
(CCC).CCC is requesting proposals Lout States,Tribes,and units orlocal govannment to cooperate in the
acquisition of conservation casements or other inures in prime,unique,or other productive soil that is subject to a
pending from a State,THK or local government for the purpose of limiting conversion to nonagriarlturd uses
ofthat
DAZE'S.•Proposals must be received in the MRCS State Office by June 18, 199L
ADDXFC4F_IE-Proposals are to he amt:tn the appropriate Stele ranwvatinnist,Natural Resources Conservation
Servlm United States Department of Agriculture.The telepbone numbers and addresses of the MRCS State
Conservationists are anchad in the appendix of this notice
FOR FURTBER B&ON"27ONCONTACT•Humberw He uaudci,Dir actor,Commuddy Assistance and Rural
Development Division,Natural Rcsourzes Conservation Service,phone:(202)720-2847;Em(202)690-0639;
e-mail cardd.nres2osda.gov. Subject:98FPP.
SUPPIEWNTARYWOR3dAI70N.
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Background ,
Aeeeiding to the 1987 Census of Agriculture, one-third of the Nation's agricultural products are produced in
metropolitan counties adjacent to large cities.Another one-f m*of these agricultural products are produced m
counties adjacent to significant urban populations.Historically, American settlements were located in areas where the
land was the most productive. Consequently,some of the Nation's most valuable and productive farmland is located
in urban and developing areas.Nearly 85 percent of domestic fnzit and vegetable production and 80 percent of our
dairy products come from urban4n8uenced areas.
These areas are continually&reatened by rapid development and urban sprawl Several social and economic changes
over the past three decades have influenced the rate at which land is converted to urban and industrial uses.
Population gtowtl. shift in age dist Iamon,inexpensive energy cost,transportation,and eamomie development
have conurbuted to increases in agricultural land conversion rates.Urban development has been a major ante of .
farudand conversion Since 1960,Farmland has been converted to other uses at a rate of approximately 1.5 million.
acnes per year.
The gross acreage of farmland converted to urban development is not necessarily the most troubling concern A
greater cause for warm is the quality and the panem of thrmland being converted.In most States,prime farmland
is being converted at 2 to 4 times the rate of other le wproductive land.Most urbanization takes place as sprawl
instead of orderly growth management.In addition,rcuuciniug farmland is placed under greater emviroamezIMl,
economic,and social strain as agrarian and urban171 interests compote.Fur the agricultural producer,in=m d
costs of production and liability risks are negative;side effects of urban development Agricultural producers are also
induced by the development pressuu c to farm the remaining acreage more intensively,thus,generating adverse
impacts on water quality and sort health For urban dwellers,the loss of open space,and issues related to agricultural
production such as pesticide ovaVmy,animal nutricmt odors,dust,and noise arc conflicting concerns.
There is,therefore,an important national interest in the protection of farmland. Once devdoped,productive
farmland with rich topsoil is lost forever,placing fimne food security for the Nation at risk In addition,agricultural
lands are important components of environmental quality,historic landscapes,and are equallyimporta t mrply for
their scenic beauty.
Tn fLwW years 1y9h and 1.y97,the CaCC signed cooperative agreements with 41 State and local government entities
in 18 States and obligated $16.2 million in 5mds to partner in acquiring conservation easements or other interests in
land to limit conversion to nonagricultural uses of the land.Once acquisitions of the pending easement offers are
cmnpleted,approximately xo ow acres ofvaluable farmland on about 230 farms with an estimated easement value of
5134 million will be prrrtected in part with Federal funds.
AvaHa WW of Funding in Fiscal Year(FY MS
EMC&C on the dare of publication of this notice,the CCC 1s annolm til the avallal ty of up to$1723 million for
the PPP for FY 1998. Selection,will be based on the PPP cataria established in this notice.Government cuddes
responding to this RFP m - have an existing farmland protection program,have pending offers,and be able to
provide fimds for at kart So percent of the fair ma kat value of the pending offers.CCC will evaluate the merits of
the requests for participation utilizing the FPP criteria desmind in this notice and will enter into cooporawc
agreements with the States,rubes,or units of local government that have proposals that CCC determines will
effectively meet the objectives of the FPP.CCC must receive proposals for participation by June 18, 19919.
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Overview of the Farmland Protection Program
CCC will accept proposals submitted to the NRCS State Offices from States,Tribes, and units of local government
that have pending offers with landowners fbr the acquWdon of conservation easemems or other interests m lands
that watain pimir,unique, or other productive sorts.The pending offers in=be for the primary purpose of
Protecting topsoil by limillux wnversion to nonagriculoual uses ofthe land Reference information regarding the
TPP can be found in the Catalog urFaleral Domestic Assistance#10.913.
A pending offer is a bid, contract, or option eatendal W a landowner by a State,Tribe,or local government entity to
acquire a conservation easement or other interests in laud W limit nonagricultural uses of the land before the legal
title to these rights has been conveyed.The pending offer must be made as of the date when the cooperative
agreement is signed
Government entities must work with the appropriate NRCS Statc Consuvationist to devolop proposals and to
develop operating agreements once selected.The State Conservationist may consult with the State Technical
Committee(established put meant to 16 U.S.C.3861)to evaluate the technical merits cf proposals submitted in that
State.All requests must be submitted to the appropriate NRCS State conservationist by hese 193 1998.
The NRCS State Conservationist will review and evaluate the requests for participation for consistency with USDA
criteria based on the State, Tribal,or local program eligibility and the hind eligibility.1freceived more than one
propMal,the NRCS State Conservationist may consolidate proposals and determine the priority ofthe pending
offers for selection acing a ranking system described in this notice, such as:(1)The quality ofthe land considering
the soils,economic viability, size,and product sales,(2)otter factors including the scale ofthe contiguous track,
historical,scenic, and environmental gialities;and(3)the likelihood of conversion considering developmental
pressure,zoning,utility availability,and other related factors. If received only one proposal,the MRCS State
Conservationist has the option of accenting the submitting entity's priority ranking provided that the lands are eligible
for participation in the HE
The State Conservationist will submit a cover letter with a recommended USE of the prioritized proposals that meet
the caitctia established is ibis notice to the appropriate MRCS Regional Conservauorust by July 20, 1998.The NRCS
Regional ConservaWnist will then for war d pmupusds submittal frum the region to the MRCS Nativad OMf c in
Washington,D.C.by August 31 1998.Proposals will not be accepted by the NRCS National Office without having
gone through the MRCS State and Regional Conservationists.Proposals sent W the NRCS National OTke without
having been sent through the NRCS State and regional oIDces will be returned to the submitting entity.
Once all proposals for participation arc received in the NRCS National Office,the Chief of MRCS,who is a Vice
Prsudwt of the CCC,will authorise cooperative agreements to be developed and signed by September 30, 19983
with specific tams ofthc FR for each proposal accepted An equitable allocation ofthe fiords to the siwec&ifd.
cooperating entities will he made by considering such factors as: The capability of each entity to fiord at least half of
the fair market easement cost of each ofthe pending offers sleeted for imilin ;the economic and environmental
value of such offers;the probability of integrating other Federal, State,Tribal,or local conservation efforts;and the
total mmiber of eligible acres included in the offers.
To be selected for participation is the FFP,a pending offer must provide for the acquisition by a State,Tribe,local
govlammemtt unit,or other entity approved by the NRCS, of an easement or other interests in land for a minimum
duration of 30 years,with priority given to those offers providing permanent protection If a pending afl'er is selected
for participation in the FPP,the conveyance document used by the State,tubal,or local government entity will need
to be reviewed and approved by the NRCS National office.A strong preference will be given to reserved rout=
eases If We to the=wmets is held by an entity other than the United States,the conveyance document will
contain a reversionary clause that all rights conveyed by the landowner under the docamew will become vested in the
United States, should the State,tubal,or local government entity abandon.tamma g,or abrugate the a mvm of the
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rights so acquired.As a condition for participation,all lands enrolled shall be encompassed by a conservation plan
developed and implemented according to the NRCS Feld Office Technical Guide
Eligible State,Tribal,or Local Farmland Protection Programs
To be digtblc,a State.Trrbc,or unit of local govermnew must have a farmland protection program that provides for
the purchase of agricultural conservation easements for the purpose of protectmg topsoil by Budit conversion to
nonagriouhural uses of land.A program must ahw have pentlutg orders when submitting the proposal A State;
Tubal,or local government entity may apply for participation as a cooperating entity by submitting responses to tltc
RFP to the appropriate MRCS State Conservationist
The NRCS State Conscevadonist will evaluate the State,Tubal,or local program based an the conservation bencfits
derived from such farmland protection efforts.An cligiblc Statc,Tribal,or local government entity most have a
farmland protection program that: (1)Demonstratcs a commitmcat to long tarn conservation of agriadtural lands
through legal devices,*such as right-to-farm laws, agricultural districts,zoning, or land use plans;(2)uses voluntary
easements or other legal devices to protect farmland from conversion to noangriwltural uses;(3)demonstrates a
eapabiTrty to acquire,manage, and enforce easements and other interests in land; and(4)demonstrates that funds
equal to at least 50 percent ofthe total fair market value ofthe easement are available.
Propnasls
In addition to meeting program eligibility requirements,a prospective cooperating entity must submit a proposal that
has: (1)An overview ofthe program,including components described in the section of"Ogrble State, Tribal,or
Local Farmland Protection Programs":(2)a map showing the tasting protected area;(3)the amount and source of
funds curranly available for easement acquisition;(4)the criteria used to set the acquisition priorities;and(5)a
listing of the pending offers including the(a)priority of the oftbr,(b)name(s)of the landowner(s).(c)location
identified on the map;(d)size of the parcel in acres for the PPP easement or other interests;(e)saes of the prime,
unique,or other productive soil in the parcel for the FPP easement or other interests;(f)area participating in or its
relative proximity to parcels pwuQpatmg in other conservation efforts identified on the map;(g)estimated costs of
the easement or other interests,(h)type of the PPP easement or other interests w be used;n;Amli.m of the
accessibility to markets G)indication of an existing agricultural infiastrucwre and other support system;(1)level of
threat from urban development;(1)other factors from an evaluation and assessment system used for setting priorities
for easement acqu union by the erdity;and(m)other information that may be relevant
To avoid double scanting,local and county programs must coordinate their proposals with each other and the St dc
program if particular parcels arc subject to pending offers under multiple programs.
Eligible Land
Once program eligibility and the merits of each proposal have been evaluated,NRCS shall detem ine whether the
farmland is eligible for enrollment and whether the Ianda may he included in the'b'PP.The following land,if subject to
a pending offer by a State,Tnhe,or unit of load government,is eligible for enrollment in the 1--PP-(1)TBnd with
prime,unique, or other productive soil;and(2)other incidental land that would not otherwise be eligible,but when
considered as part of a pending offer.MRCS determines that the ittc union of such land would dpmcm*augment
the protection ofthe assoclated flirmiand
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Prime farmland is land that has the bei combination ofphysicd and chemical characteristics for producing food
food,forage,fiber,and oilseed crops,urd b also avau7ab1c for these uses.D ineduties c ruphmd,pasture land,
rangeland,and forest land.Unique farmland is Ind other than prime farmland that is used for the production of
specific high value food and fiber crops, such as nuts,citrus,olives,cranberries,fruits,vegetables,and herbs.Other
productive soil refers to farmland of statewide or local importance for the production of food,food,fiber,finragc,and
oil•socd crops. Additional information on the definition of prime,un*e,or other productive soil can be found in
section 1540(cX1)of the Farmland Protection Policy Act(Pub.L.97-98, 1981, 7 U.S.C.4201).
NRCS will only consider enrolling eligible land in the program that is configured in a size and with boundaries that
allow for the efficient management of the area or for establishing a buffer zone for the purposes of the FPP.The land
must have access to markets for its products and an infrastructure appropriate for agricultural production.NRCS
will not enroll land in the FFP that is owned in fee tide by an agency of the United States,or land that is already
subject to an easement or deed restriction that limits the conversion of the land to nonagricultural use.NRCS will
not enroll otberaw eligible lands if MRCS determines that the protection provided by the FPP would not be
effective because of on-site or off-site conditions.
Ranking C:nasidmtinns
Pending offers by a StaM Tnbe,or unit of local government rust be for the acquisition of an easement or other
interest In land for a minimum duration of 30 years.MRCS shall place a priority on acquiring easements or other
itueresrs in lands that provide the longest period of protection$oro conversion to nonagricultural use.NRCS will
place a higher priority on Inds and locations that help create a large track of protected area for viable agricultural
production or buffer zones.MRCS will place a higher priority on lands and locations that link to other Fedend,Statc,
Tubal, of luwl conservadun cffwu with cxmrplcmentary farmland proLoAkm objectives.NRCS may place a Mehta
priority on lands that provide special social,economic,and environmental benefits to the region.A bigher priority
may be given to certain geographic regions where the enrollment of particular lands may help achieve national, State,
and regional goals and objectives,or enhance eusting government or private conservation projects.
Cooperative Agn mets
The CCC will use a cooperative agreement with a scicetod State,Tobe,or unit of loud government as the
mcAaaism for participation in the FPP.The cooperative agreement will address the following; (1)The interests in
land to be acquired,including the form of the easements to be used and tams and conditions;(2)the management
and enforcement of the rights acquired;(3)the technical assistance that may be provided by the MRCS;(4)the
holder of the easement or other interests in the land enrolled in the FPP;and(5)other requirements deemed
necessary by the CCC to protect the interests of the United States.The cooperative agreement will also include an
attachment that lista the pending offers accepted in the FPP,landowners'names,addresses,locations,and other
relevant information.
Signet at Washingteo,Dr,cm March 16, 1998.
Pearke S Reed
Chiu Natural Resources Conservation Services Vim Prc adeno Commodity Credit Corporation.
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