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  Time Set   #   33.    
Board of Supervisors   
Meeting Date: 06/25/2013  
Brief Title:    Yolo Lands 320, LLC Property Purchase Agreement
From: John Bencomo, Director, Planning and Public Works
Staff Contact: Linda Sinderson, Deputy Director, Planning and Public Works, x8859

Subject
9:00 a.m. - Planning & Public Works

Hold a public hearing, receive comments, and consider adoption of a resolution (Attachment A) authorizing the execution of an agreement (Attachment B) with the Yolo Lands 320, LLC in the amount of $2.39 million for purchase of approximately 298.85 acres; authorize interim financing through the Demeter Endowment Fund for the property purchase while awaiting permanent financing; adopt a resolution (Attachment C) adjusting the Landfill's 2012-13 budget (BU 194-1) to represent an increase of $790,800; and authorize staff to file a Notice of Exemption from the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3) and related authorities. (No general fund impact) (4/5 vote required) (Bencomo/Sinderson)
Recommended Action
  1. Hold a public hearing, receive comments, and consider the proposed property acquisition and draft resolution (Attachment A) with findings pertaining to the public purposes served by the acquisition, CEQA review, and related matters;
     
  2. Authorize the Chair of the Board to sign the purchase agreement (Attachment B) between the County of Yolo and the Yolo Lands 320, LLC for purchase of real property;
     
  3. Authorize a six-month loan of $960,000 from the Demeter Endowment fund  to the Sanitation Enterprise Fund for the property purchase in accordance with County policy on inter-fund borrowing;
     
  4. Adopt the budget resolution (Attachment C) increasing the Sanitation Enterprise fiscal 2012-13 budget (BU 194-1) by $790,800.00, and increasing the appropriations and fund use in the Demeter Fund (BU 166-1) by $960,000; and
     
  5. Authorize the County Counsel and the Director of the Planning and Public Works Department (or their designees) to take all further actions necessary to complete the acquisition, including signing a certificate of acceptance, filing a Notice of Exemption pursuant to CEQA, and signing escrow instructions.
Strategic Plan Goal(s)
Protect open space and the environment
Provide fiscally sound, dynamic and responsive services
Reason for Recommended Action/Background
The subject property (about 323 overall acres) is directly west of the Yolo County Central Landfill (see Exhibit A to the Purchase Agreement for a depiction of the property). The acquisition of a 298.85-acre portion of the property will help achieve four longstanding objectives: establishment of a buffer area between the landfill and privately-owned properties to the west; provide additional land that may be used to expand the Landfill’s groundwater mitigation activities, consisting primarily of farming kenaf and fescue; provide land for potential use as a stormwater detention basin; and provide a potential source for soil cover material as needed. Other potential (but less likely) future uses include a site for additional solar energy facilities or as an easement area for Swainson’s hawk or other species mitigation. No new landfill cells or operations will be located on the parcel. If the purchase is approved, the property is expected to remain in farming (grazing land) for several years. Any significant future change in use, such as utilizing the property for Landfill soil cover, will be preceded by a full environmental review process under the California Environmental Quality Act (CEQA), public outreach, and Board consideration.

On May 29, 2012, Landfill staff presented the Landfill’s business plan to the Board of Supervisors. Staff discussed the implementation of the current projects (cell closures) and the array of constituent recycling programs. New state mandates and associated costs were outlined along with the county’s strategies to maintain compliance with the growing state requirements for the county and city partners (i.e., proposed “green bio-digester” project). The Landfill has achieved state permits for operations until 2081; however, to ensure continued cost effectiveness and longevity of the Landfill services, several operational objectives must be achieved over time (including the four objectives mentioned in the preceding paragraph).

The proposed acquisition of the subject property represents the culmination of a lengthy due diligence effort. Over the past several years, County staff has endeavored to locate property with the potential to address some or all of the identified operational objectives at the appropriate point in time. The subject property presents a superior option to others considered for a number of reasons. As noted above, its immediate adjacency to the landfill makes it well-suited as a buffer area and a potential future site for Landfill-related farming undertaken for mitigation purposes. For the same reason, the property is also appropriate to consider as a future soil borrow site because its proximity minimizes transportation costs. Its soils are also generally of lower quality than those on other parcels near the Landfill, likely making it a more suitable candidate (in the context of potential agricultural resource impacts) for conversion to non-agricultural uses on a temporary or permanent basis. Ownership of the property also ensures greater control over the impacts of stormwater and groundwater migration on landfill operations.

The continuing decrease in waste disposal volumes due to the economic downturn and increased state recycling mandates means that Landfill cell closures—which typically require a substantial amount of soil—will likely occur over a longer period of time than projected in the past. This is one of the main reasons why the current farming (grazing) use of the property is expected to continue following the purchase, possibly with the addition of agricultural uses (kenaf and fescue) currently undertaken within the Landfill for groundwater mitigation. A more intensive use of the property is possible in the future, but the timing and nature of any such use remain unknown at the present time. Nonetheless, because of the wide range of potential future uses of the property and its ability to satisfy various objectives, staff strongly recommended proceeding to acquire the property at the present time.

In response to the Board’s interest in increased public noticing and process transparency, staff has provided public notice by mail to landowners within 3,000 feet of the Landfill (see Attachment D). There is no state law requirement for notice by mail prior to an acquisition of property. Notice of the hearing on the proposed acquisition has also been published in the Davis Enterprise three times in June 2013. As noted, prior to any significant future change in the use of the property, County staff will perform environmental review under CEQA (including but not limited to the consideration of alternatives), engage in a public outreach process developed in consultation with the County Administrator and Board of Supervisors, and seek Board approval of any such use.  A 2012 appraisal for the property is Attachment E hereto.
Other Agency Involvement
The Planning and Public Works Department and Division staff worked with the offices of County Counsel, County Auditor and County Administrator.

Fiscal Impact
Fiscal impact (see budgetary detail below)
Fiscal Impact (Expenditure)
Total cost of recommended action:    $   2,390,800
Amount budgeted for expenditure:    $   1,600,000
Additional expenditure authority needed:    $   790,800
One-time commitment     Yes
Source of Funds for this Expenditure
$1,430,800
$960,000
Explanation (Expenditure and/or Revenue)
Further explanation as needed:
The division's 2012-13 budget does not include the entire $2.39 million property purchase price. To purchase the property and meet the afore-mentioned objectives, requires an interim loan from the Demeter Endowment Fund while awaiting permanent financing and budget increase of $790,800. In accordance with the County Policy on Borrowing, Debts and Obligations:
  1. The Auditor-Controller has determined that inter-fund borrowing is the best option for this interim financing
  2. The loan does not adversely affect the lending fund (Demeter)
  3. The loan of $960,000 will be repaid in its entirety within six months with interest equal to the Treasurer's pool interest
  4. The loan, transfers and repayment will be recorded in the County's general ledger.
Attachments
PDF_Staff Report
Att. A. Resolution Regarding Acquisition
Att. B. Purchase and Sale Agreement
Att. C. Budget Resolution
Att. D. Public Notice
Att. E. Appraisal

Form Review
Inbox Reviewed By Date
Phil Pogledich Phil Pogledich 06/19/2013 03:31 PM
Ivan Vonk Ivan Vonk 06/19/2013 03:48 PM
Auditor Howard Newens 06/19/2013 05:10 PM
Pat Wright Pat Wright 06/19/2013 05:29 PM
County Counsel Robyn Drivon 06/20/2013 08:46 AM
Form Started By: Linda Sinderson Started On: 06/04/2013 04:57 PM
Final Approval Date: 06/20/2013

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