HomeMy WebLinkAbout05/06/2003, C16 - AUTHORIZATION OF APPLICATION FOR GRANT FUNDS FROM THE STATE FARMLAND CONSERVANCY PROGRAM (FCP) AND council
j agenda Report CA L
CITY O F SAN LUIS O B I S P O
FROM: Wendy George,Assistant City Administrative Officer W
Prepared By: Neil Havlik,Natural Resources Manager
SUBJECT: AUTHORIZATION OF APPLICATION FOR GRANT FUNDS FROM THE
STATE FARMLAND CONSERVANCY PROGRAM (FCP) AND FEDERAL
FARMLAND PROTECTION PROGRAM (FPP)
CAO RECOMMENDATION
Adopt resolutions authorizing submittal of grant applications to the State Farmland Conservancy
Program and to the United States Department of Agriculture, Natural Resources Conservation
Service in the amount of$350,000 each (for a total of$700,000), in support of the acquisition of an
agricultural conservation easement on a 160 acre portion of the 391 acre Brughelli Ranch on
Buckley Road south of the Airport Area.
DISCUSSION
In 1996 the State Legislature established the Agricultural Land Stewardship Program as the State's
primary farmland protection program. This program makes State funds available to local
governments and nonprofit organizations to acquire conservation easements on prime, unique or
other important agricultural soils for the purpose of limiting or preventing the conversion of such
sites to nonagricultural uses. The program was recently renamed the Farmland Conservancy
Program(FCP) and has enjoyed increased funding in the last several years.
In 2002 the Congress passed a new Farm Bill, which provided funding to the Natural Resources
Conservation Service's Farmland Protection Program(FPP) for five years. The Service has recently
announced the availability of grant funds for consideration, and City staff believe that we have a
very attractive and competitive project in the Brughelli property agricultural conservation easement.
This program makes Federal funds available to State and local governments and nonprofit
organizations to acquire conservation easements on prime, unique or other important agricultural
soils for the purpose of limiting or preventing the conversion of such sites to nonagricultural uses. In
November of last year the Council authorized application to the State program, and we are now
prepared to pursue a Federal match to the State funds, which will allow us to double the acreage that
can be protected. Due to certain procedural changes to the State program that took effect on January
1 of this year is it necessary for the Council to reapprove that application. Thus the total grant
application for this project will be$700,000.
The Brughelli property is one of the largest single properties south of the Airport Area. It
consists of prime soils, about 50 acres of which is currently farmed, and non-prime soils on
rolling hills used for livestock grazing. Much of the land now used for grazing was dry-farmed
G/Havlik/councilagendalbrughelli3 �{
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in the past, as was the case on many properties in that area. Recently, with the assistance of Jim
Brabeck of the Farm Supply Company, the Brughellis indicated their willingness to consider sale
of a conservation easement on 160 acres forming the northern portion of their property facing
Buckley Road (map). Staff believes that a successful transaction with the Brughellis will elicit
the interest of other owners in the area in such programs.
Pursuant to earlier Council direction, staff has initiated an appraisal of the property, and has also
initiated discussions with the Brughellis. They have indicated that they would like to receive
$800,000, or$5,000 per acre, for an easement on 160 acres of their property. Indications are that
the appraisal will find this value or one very close to it.
It is anticipated that it will take between six and nine months to complete the transaction. Staff
anticipates the commitment of$100,000 from the City's Airport Open Space Impact Fee fund to
this project, with the balance to come from the State and Federal programs. The $100,000 will
exceed the requirements of both programs for a minimum match.
As an easement purchase for conservation purposes, this project is exempt from both CEQA and
NEPA.
FISCAL U14PACT
The grants, if successful,will have a beneficial fiscal effect by providing outside funding support for
this City-initiated project. The $100,000 in local funds consists of Airport Area open space impact
fees and no General Fund monies are needed for the project. Assuming that the applications are
successful, staff will return to the Council as soon as possible for consideration of a formal
transaction.
ALTERNATIVE
The Council could decide to not authorize the applications. This is not recommended as the
applications do not constitute a commitment on the part of the City or of the landowners, and would
constitute a reversal of previous direction from the Council.
Attachments
1. Project Location Map
2. Grant Program Summaries
3. Resolutions
G/Havl ik/councilagenda/brughell i3
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CITY OF SAN LUIS OBISPO
GREENBELT PROTECTION PROGRAM
Brughelli Property Conservation Easement Acquisition
Scale 1"=2,000•
ATTACHMENT 2
Chapter 1: The CFCP Grant Program
Chapter 1 : Grants
"a
Program Purpose and Authority
The Department of Conservation's The CFCP is authorized to work throughout
California Farmland Conservancy Program California. Within the coastal zone (as
provides grants to local governments and defined in Section 30103 of the Public
qualified nonprofit organizations for: Resources Code) the CFCP works in
consultation with the State Coastal
• voluntary acquisition of conservation Conservancy (Public Resources Code
easements on agricultural lands that are Section 10225).
under pressure of being converted to
non-agricultural uses;
• temporary purchase of agricultural lands This Request for Grant Applications details
that are under pressure of being requirements and guidelines for grant
converted to non-agricultural uses, as a application submission. All applications for
phase in the process of placing an funding submitted as of the date of this
agricultural conservation easement; publication should conform to the format of
• restoration of and improvements to this edition of the Request for Grant
agricultural land already under Applications until a subsequent edition of
easement; and the Request for Grant Applications is
• agricultural land conservation planning published.
and policy projects.
The CFCP is designed to work in concert
with local planning and zoning strategies to
conserve agricultural land. The Program
was created by the California Farmland
Conservancy Program Act of 1995,
contained within Division 10.2 of the Public
Resources Code (Sections 10200 to 10277)
and the Revenue and Taxation Code
(Sections 421.5 and 422.5). Related
regulations are located in the California
Code of Regulations,Title 14, Division 2,
Chapter 6, Sections 3000 through 3015?
' The Codes are available on the internet at
http:/www.leginfo.ca.goy/calaw.html, or upon
request to the Department of Conservation.
2 Available on the CFCP website:
www.consrv.ca.gov/dlrp/cfcp
1-1
ATTACHMENT 2
[Billing Code: 3410-161
DEPARTMENT OF AGRICULTURE
Commodity Credit Corporation
Farmland Protection Program
AGENCY: Commodity Credit Corporation, Department of Agriculture (USDA).
ACTION: Notice of request for proposals.
SUMMARY: Section 2503 of the Farm Security and Rural Investment Act of 2002
(Public Law 107-171) amended the Food Security Act of 1985 to include the Farmland
Protection Program(FPP), providing up to $100 million in financial assistance in fiscal
year 2003, for the purposes described in FPP. Congress delegated authority for FPP to
the Chief of the Natural Resources Conservation Service (NRCS). NRCS, on behalf of
the Commodity Credit Corporation (CCC) and using its authorities, requests proposals
from Federally recognized Indian tribes, States, units of local government, and
nongovernmental organizations to cooperate in the acquisition of conservation easements
on farms and ranches. Eligible land includes farm and ranch land that has prime, unique,
or other productive soil, or that contains historical or archaeological resources. These
lands must also be subject to a pending offer from eligible entities for the purpose of
protecting topsoil by limiting conversion of that land to nonagricultural uses.
DATES: Proposals must be received in the NRCS State Office within—[45 days from
the date of this notice].
ADDRESSES: Written proposals should be sent to the appropriate NRCS State
Conservationist, Natural Resources Conservation Service, USDA. The telephone
ATTACHMENT 2
numbers and addresses of the NRCS State Conservationists are in the appendix of this
notice.
FOR FURTHER INFORMATION CONTACT: Denise Coleman, NRCS; phone: (202)
720-9476; fax: (202) 720-0745; or e-mail: denise.coleman@usda.sov; Subject: FPP or
consult the NRCS Web site at:
http://www.nrcs.usda.gov/programs/farmbill/2002/PubNotc.html
SUPPLEMENTARY INFORMATION:
Background
Urban sprawl continues to threaten the Nation's farm and ranch land, as social and
economic changes over the past three decades have influenced the rate at which land is
converted to non-agricultural uses. Population growth, demographic changes,
preferences for larger lots, expansion of transportation systems, and economic prosperity
have contributed to increases in agricultural land conversion rates.
The amount of farm and ranch land lost to development and the quality of farmland being
converted are significant concerns. In most States, prime farmland is being converted at
two to four times the rate of other, less-productive agricultural land.
There continues to be an important national interest in the protection of farmland. Land
use devoted to agriculture provides an important contribution to environmental quality,
protection of the Nation's historical and archaeological resources, and scenic beauty.
ATTACHMENT 2
Availability of Funding
Effective on the publication date of this notice, NRCS announces the availability of up to
up to $100 million for FPP, until September 30, 2003. The NRCS State Conservationist
must receive proposals for participation within 45 days of the date of this notice. State,
Tribal, and local government entities and nongovernmental organizations may apply.
Selection will be based on the criteria established in this notice, and additional criteria
developed by the applicable State Conservationist. Pending offers by an eligible entity
must be for acquiring an easement for perpetuity, except where State law prohibits a
permanent easement.
Under the Farmland Protection Program, NRCS may provide up to 50 percent of the
appraised fair market value of the conservation easement. Landowner donations up to
25 percent of the appraised fair market value of the conservation easement may be
considered part of the entity's matching offer. For the entity, two cost-share options are
available when providing its matching offer. One option is for the entity to provide in
cash at least 25 percent of the appraised fair market value of the conservation easement..
The second option is for the entity to provide at least 50 percent of the purchase price in
cash, of the conservation easement. The second option may be preferable to an entity in
the case of a large bargain sale by the landowner. If the second option is selected, the
NRCS share cannot exceed the entity's contribution.
The following two a ples illustrXhowtheseo cost-share options ma nction.
Under Option where 25 percent oair market value ' elected by the
;entity, total appraised fair mark iservatio asement is $1 million.
ndowner chooses to d ate 40 percent of the app sed fair market value, resulting
3 c��- �
ATTACHMENT 3,.
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING APPLICATION FOR GRANT FUNDS FROM THE
CALIFORNIA DEPARTMENT OF CONSERVATION'S
FARMLAND CONSERVANCY PROGRAM FOR THE
PROJECT KNOWN AS BRUGHELLI EASEMENT ACQUISITION
WHEREAS, the Legislature of the State of California has established the Farmland Conservancy
Program within the Department of Conservation,and through said program is providing assistance to conserve
important agricultural land resources that are subject to conversion pressures;and
WHEREAS, the City of San Luis Obispo intends to acquire agricultural conservation easements on
one or more areas surrounding the City in cooperation with landowners for the purpose of conserving
important agricultural resources;and
WHEREAS, the City Council certifies that any easements obtained will meet the eligibility
requirements set forth in Public Resources Code Section 10251 and incorporated herein by reference;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis Obispo
hereby:
1. Authorizes the filing of an application for grant assistance from the State Farmland Conservancy
Program for the above project;and
2. Appoints the City Administrative Officer as agent of 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.
On motion of seconded by and on the following roll
call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of 2003.
Allen K.Settle,Mayor
ATTEST: APPROVED AS T FO
Lee Price,City Clerk rt Trujillo,Acting City Attorney
ATTACHMENT 3 6
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
AUTHORIZING APPLICATION FOR GRANT FUNDS FROM THE
FEDERAL FARMLAND PROTECTION PROGRAM(FPP)FOR THE
PROJECT KNOWN AS BRUGHELLI EASEMENT ACQUISITION
WHEREAS, the Congress of the United States has established the Farmland Protection Program,
administered by the U. S. Department of Agriculture, Natural Resources Conservation Service, and through
said program is providing assistance to conserve important agricultural land resources that are subject to land
use conversion pressures;and
WHEREAS, the City of San Luis Obispo has an active program designed to acquire agricultural
conservation easements on one or more areas surrounding the City in cooperation with landowners for the
purpose of conserving important agricultural resources;and
WHEREAS, Ercole and Naomie Brughelli have indicated their desire to sell a conservation easement
on 160 acres of land on their property,which land meets the eligibility requirements for enrollment in the FPP.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis Obispo
hereby:
1. Authorizes the filing of an application for grant assistance from the Federal Farmland Protection
Program for the above project;and
2. Appoints the City Administrative Officer as agent of 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.
On motion of seconded by and on the following roll
call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this day of 2003.
David F. Romero,Mayor
ATTEST: APPROVED AS TO FORM:
Lee Price,City Clerk ruj' ,Acting City Attorney