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Mr. Ranells and Mr. Bergmann intend to grant a conservation easement on the entire 61 <br />acres, which includes both cropland and pasture. ERCD Staff and the County Attorney have <br />worked with the owners to prepare an easement agreement that meets their needs and the <br />County's interests. The easement also conforms to federal guidelines pursuant to the federal <br />Farm and Ranch Land Protection Program, which will also contribute funds to this project. <br />The Orange Water and Sewer Authority (OWASA) has agreed to partner with the County on <br />the purchase of this conservation easement. The easement would further OWASA's goals of <br />protecting water quality in the Cane Creek Watershed. The OWASA Board of Directors has <br />agreed to participate in the easement, and would -contribute up to $61,000 toward the <br />purchase price, with the final amount to be determined at a subsequent meeting of the <br />OWASA Board. <br />The easement would permanently protect the entire 61 -acre property for farm use. The <br />existing residence and farm buildings are clustered within a "Farmstead Area" located in the <br />middle of the property. No future residential buildings or subdivision would beallowed. <br />Future farm activities will need to be in accordance with a Conservation Plan prepared for this <br />site by the Orange Soil and Water Conservation District. All other future non-agricultural <br />development rights would be extinguished through the easement. ERCD will monitor the <br />property on an annual basis. A copy of the draft easement is attached. <br />A survey of the property is underway, which when completed may change the exact size of <br />the conservation easement property. <br />FINANCIAL IMPACT: Two appraisals were conducted to determine the fair market value of <br />the development rights that will be removed from the land. The purchase price for the <br />easement is $277,050. Including survey and other transaction costs, the total cost of the <br />project is approximately $283,000, with $138,525 of that amount to be reimbursed by the <br />federal Farm and Ranch Land Protection Program. Orange Water and Sewer Authority has <br />agreed to participate, and would potentially contribute $61,000 to the project (actual amount <br />subject to final approval of the OWASA board). <br />The County's share of the cost (approximately $83,550 with OWASA's full financial <br />participation, or up to $145,000 with a lesser amount from OWASA) would come from <br />existing funds budgeted from the $3.0 million in alternative financing for conservation <br />easements approved by the Board of Commissioners in FY 2002-03 and previously <br />appropriated. The Budget office will bring a Capital Project Ordinance for this project forward <br />in an upcoming budget amendment. <br />RECOMMENDATION: The Manager recommends that the Board adopt the resolution <br />approving the acceptance by Orange County of the conservation easement and authorize the <br />Chair and the Clerk to sign the conservation easement agreement, subject to final review by <br />staff and County Attorney, with a closing and recordation of the document expected to occur <br />on or about March 31, 2007. <br />