Agenda - 02-18-2014 - 6a - Laserfiche WebLink

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7 1 6 =f- Resolution of Approval — Hughes- Morgan Conservation Easement Donation - -must 2 be removed from the consent agenda to discuss whether the BOCC wishes to accept 3 the conservation easement without the liability insurance provisions found in section 5(c) 4 of the draft conservation easement. The grantor objects to the liability insurance 5 requirements. 6 7 8 Approval of Remaining Consent Agenda 9 A motion was made by Commissioner Rich, seconded by Commissioner McKee to 10 approve the remaining items from the consent agenda. 11 12 VOTE: UNANIMOUS 13 14 Discussion and Approval of the Items Removed from the Consent Agenda 15 16 f. Resolution of Approval — Hughes- Morgan Conservation Easement 17 Donation 18 The Board considered a resolution to approve the acceptance by Orange County of a 19 conservation easement to protect a portion of the Hughes- Morgan property and to authorize the 20 Chair and Clerk to sign. 21 22 John Roberts said this item was removed from the consent agenda in order for the 23 Board to discuss whether the BOCC wishes to accept the conservation easement without the 24 liability insurance provisions found in section 5(c) of the draft conservation easement. He said 25 the grantor objects to the liability insurance requirements. 26 John Roberts said the landowners do not want to pay for liability insurance of $300,000, 27 which is stated in the document. He said this amount was removed from these easement 28 documents by the past attorney in 2002. He recommends that some type of liability insurance 29 needs to be attached to a conservation easement. He said if the Board wants to approve this 30 subject to liability negotiations between staff and landowners, this would be fine. He does not 31 recommend that the Board waive the liability insurance provision, though this is possible. 32 Chair Jacobs asked if there had been some investigation of the cost to the property 33 owner. 34 Michael Talbert said their risk manager followed up on this and found out that it would 35 cost the landowners about $100 per year for this type of insurance. He said it is his opinion that 36 the insurance is needed as part of the documentation. 37 Commissioner Price asked John Roberts for clarification on his statement about 38 allowing the approval and then letting staff follow up with the landowner regarding the insurance 39 amount. 40 John Roberts said the landowner wanted a reduced amount of liability insurance. He 41 said the Board could approve the resolution and authorize the manager to negotiate the 42 insurance. 43 Commissioner Rich asked if there are any precedents or best practices that can be 44 referred to for this issue. 45 John Roberts said the best practice amount would be $500,000, however this is an 11 46 acre easement, and there is no case in North Carolina that attaches liability to a conservation 47 easement holder. He does not object to a lower liability amount. 48 Chair Jacobs said he spoke the director of the N.C. Land Trust, and this organization 49 requires insurance liability on all easements.