HomeMy WebLinkAbout11/18/1997, C-9 - AUTHORIZATION OF APPLICATION FOR GRANT FUNDS FROM THE STATE COASTAL CONSERVANCY IN SUPPORT OF THE ACQUISITION OF A PORTION OF BISHOP PEAK council
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C I T Y OF SAN LUIS OBISPO •
FROM: Ken Hampian,Assistant City Administrative Officer P�—
Prepared By: Neil Havlik,Natural Resources Manager cy,-
SUBJECT: AUTHORIZATION OF APPLICATION FOR GRANT FUNDS
FROM THE STATE COASTAL CONSERVANCY IN SUPPORT OF
THE ACQUISITION OF A PORTION OF BISHOP PEAK
CAO RECOMMENDATION
Adopt a resolution authorizing staff to complete and submit an application for grant monies in
amount of$350,000 to the State Coastal Conservancy to support the open space acquisition of a
portion of the Ray Bunnell property on Bishop Peak.
DISCUSSION
Negotiations to acquire the Bishop Peak property have been underway, on and of� since late 1995.
In June of this year, negotiations essentially stopped because of the City's unsuccessful application
to the Environmental Enhancement and Mitigation Fund for a State grant critical to the project.
Later in the summer, however, staff was approached by State Coastal Conservancy staff seeking
support for a special allocation in the State budget for conservation purposes. If such an allocation
could be made,another grant to assist with the Bishop Peak acquisition would become possible.
With the support of both Assembly member Tom Bordonaro and Senator Jack O'Connell, an
allocation of$1.5 million to the Coastal Conservancy was included in the State budget and signed
by the Govemor. Conservancy staff then informed City staff that they were prepared to recommend
grant support of$350,000 to the City in support of the Bishop Peak acquisition.
With this information, negotiations with Mr. Bunnell commenced again and, by or near the
November 18' Council meeting, staff expects to have reached tentative agreement with Mr.
Bunnell on all remaining issues. Therefore the City is now at a point where it is appropriate to
formally submit a grant application to the State Coastal Conservancy for these grant fimds.
FISCAL IMPACT
Consistent with earlier closed session direction, City staff agreed to Mr. Bunnell's last asking price
of $895,000, subject to a finding of such value by an independent appraisal. As such, staff
contracted with the firm of Schenberger, Taylor, McCormick& Jecker for the appraisal, which we
expect will verify the appropriateness of the purchase price.
To fimd the above amount, $100,000 in Habitat Conservation Fund monies are under contract, and
the Sierra Club is expected to contribute $45,000 toward the acquisition. In addition, $200,000 is
available in the 1997-98 Budget for open space purposes. Staff continues to pursue additional
outside funding options and will bring a final recommended funding program to the Council when
a purchase agreement is ready for Council action. To summarize, funding is currently available to
support the transaction as follows:
Council Agenda Report-Authorization of Application for Grant Funds
Page 2
City General Fund $200,000
Coastal Conservancy Grant $350,000
Habitat Conservation Fund Grant $100,000
Sierra Club Morros Preservation Fund 45,000
Total Curently Available $6959000
Balance Needed $200,000
NEXT KEY STEPS
Staff expects to bring a final Bishop.Peak acquisition agreement to Council on December 2, 1997,
along with a final recommended funding program. The City's grant application is expected to be
considered by the Board of the Coastal Conservancy on December 5th, when final action will be
taken. As noted above, the Coastal Conservancy grant will make the completion of the transaction
much more feasible;without that support,the project will simply not be successful.
Plans are now underway to assemble a delegation to attend the Conservancy hearing. This
delegation will include the Mayor and City staff, Mr. Bunnell, and representatives from Assembly
member Bordonaro and Senator O'Connell's offices, the Sierra Club, and.the Chamber of
Commerce. The acquisition of this property, including the "signature' summit, will probably be
one of the most significant open space acquisitions in the County's history and a strong, unified
presentation before the Conservancy board is essential.
ALTERNATIVE
The Council could decide not to pursue the grant. This is not recommended, since that course
of action would simply result in the demise of the project, which has been identified as a high
priority by the Council,with little likelihood of the opportunity arising again in the near future.
AITACE3MNT
Resolution
C- 9-Z
RESOLUTION NO. (1997 SERIES)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO
FOR AUTHORIZATION OF APPLICATION FOR GRANT FUNDS FROM THE
CALIFORNIA COASTAL CONSERVANCY IN SUPPORT OF THE
PROJECT KNOWN AS BISHOP PEAK ACQUISITION
WHEREAS, the State Legislature has established the State Coastal Conservancy
(pursuant to Public Resources Code 31000-31400) and authorized it to award grants to local
public agencies and nonprofit organizations; and
WHEREAS, said grants are awarded pursuant to guidelines established by the Coastal
Conservancy for determination of project eligibility for funds; and
WHEREAS, the procedures established by the Coastal Conservancy require the applicant
to certify by resolution approval of the application prior to submission of said application to the
State; and
WHEREAS, the City of San Luis Obispo, 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, the City seeks to preserve and conserve characteristics
such as visual quality, wildlife habitat, healthy agricultural economy, and rural setting through a
variety of techniques and programs,including purchase of land; and
WHEREAS, the City of San Luis Obispo, City of Morro Bay, County of San Luis Obispo,
and the State of California all consider the preservation of the chain of peaks stretching from Monro
Bay to San Luis Obispo, commonly known as the "Morros", to be a high priority for the
community and for the people of the State, and
WHEREAS, these agencies, with technical support and assistance of the Coastal
Conservancy, have formed a citizens' advisory committee, known as the Morros Advisory
Committee, whose goal is to develop a long-term plan for protection and proper stewardship of the
Morros; and
WHEREAS, Mr. Ray B. Bunnell is owner of certain lands which lie within said Greenbelt,
and which are of scenic, ecological, and agricultural value to the City and County of San Luis
Obispo; and
WHEREAS, said lands include the summit and upper elevations of the tallest of the
Morros, known as Bishop Peak, and are therefore of great interest to agencies represented by the
Morros Advisory Committee,and to the State of California; and
WHEREAS, Mr. Bunnell is desirous of preserving such values of said property by the sale
of the property for permanent open space purposes to the City of San Luis Obispo; and
c- 93
WHEREAS, the purchase of said land in the judgment of the City Council of the City of
San Luis Obispo would act to preserve the values indicated above and serve important municipal
and Statewide purposes; and
WHEREAS, the State Coastal Conservancy is in a position to provide funding support for
the purchase of the Bunnell property that will permit the transaction to be successfully completed.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis
Obispo hereby authorizes submittal of an application to the California Coastal Conservancy for
grant funds in support of the acquisition of Bishop Peak for public benefit purposes; and
BE IT FUTHER RESOLVED that City Council hereby appoints the City Administrative
Officer as agent 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.
Moved by , seconded by and adopted
this day of by the following votes:
FOR:
AGAINST:
ABSTAIN:
ABSENT:
The foregoing resolution was adopted this day of , 1997.
Allen K. Settle,Mayor
ATTEST:
Bonnie L. Gawf, City Clerk
APPROVED AS TO FORM:
Jeffrey 6. Jorgensen, City Attorney