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Resolution 2016-04RESOLUTION NO. 2016-04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY AMENDING COUNCIL RESOLUTION NO. 200445 TO MODIFY THE CITY'S AGRICULTURAL MITIGATION POLICY BY ELIMINATING THE IN -LIEU FEE AGRICULTURAL MITIGATION OPTION. WHEREAS, on May 17, 2004, the City Council adopted Resolution No. 2004 -45 approving M 02 -12, an application for approval of the City of Gilroy Agricultural Mitigation Policy; and WHEREAS, the City of Gilroy Agricultural Mitigation Policy identifies three mitigation options for the loss of agricultural lands: (1) purchase an equal amount of land (1:1 ratio) of agricultural land within the "Preferred Areas" and transfer ownership of this land to a City - approved agency; (2) purchase development rights to a 1:1 ratio on agricultural land within the "Preferred Areas" and transfer ownership of these rights to a City- approved agency; and (3) pay an in -lieu fee based upon the lowest appraisal of purchasing development rights in the "Preferred Areas"; and WHEREAS, the in -lieu mitigation fee was envisioned to be paid by the developer with no burden to City taxpayers and cover all costs associated with the purchase and placement of a conservation easement on a suitable agricultural property; and WHEREAS, upon close review and consideration of the in -lieu fee mitigation option, the adequacy of a fee to cover all associated costs and provide a full one to one replacement ratio of agricultural lands pursuant to the Agricultural Mitigation Policy has been determined to be infeasible based on the following: a. Legal and administrative costs for securing agricultural conservation easements can vary considerably based on factors including but not limited to property size, building improvements, agricultural viability, and willingness (or unwillingness) of property owners; b. An in -lieu mitigation fee is a one -time payment by a developer that may not be RESOLUTION NO. 2016-04 sufficient to cover ongoing costs associated with the mitigation such as program oversight, maintenance, monitoring, and verification for compliance with easement requirements; C. The Gilroy Agricultural Mitigation Policy requires the in -lieu fee to be calculated based on the "lowest appraisal" value for purchasing development rights in the preferred area, which may not be adequate to fully fund the required mitigation; d. An insufficient in -lieu fee may result in actual implementation that is less than the required 1:1 replacement ratio, or a potential for transferring the financial burden of achieving a developer's 1:1 mitigation to Gilroy taxpayers through the City's General Fund; and e. Administration costs to the City would continue in perpetuity, necessitating an appropriate funding mechanism for program longevity to eliminate any unintended financial consequence/burden to Gilroy taxpayers. WHEREAS, the City Council of the City of Gilroy held a duly noticed public hearing on January 4, 2016, at which time the City Council considered the public testimony, the staff reports dated November 16, 2015 and January 4, 2016, and all other documentation related to application M 13 -01; and WHEREAS, the Agricultural Mitigation Policy was determined to be consistent with the Environmental Impact Report prepared for the City of Gilroy General Plan at the time the policy was adopted, and elimination of the in -lieu fee mitigation option would not alter this determination as two other options remain to mitigate for the loss of agricultural lands. Also, in accordance with Section 15061(b)(3) of the State CEQA Guidelines, the proposed policy amendment is covered by the general rule which exempts activities that can be seen with certainty to have no possibility for causing a significant effect on the environment, and there is no substantial evidence that the project may have a significant effect on the environment; and WHEREAS, the location and custodian of the documents or other materials which constitute the record of proceedings upon which this project approval is based is the office of the City Clerk. NOW, THEREFORE, BE IT RESOLVED THAT: The amended Agricultural Mitigation Policy, M 13 -01, attached hereto as Exhibit "A ", should be and hereby is approved. RESOLUTION NO. 2016-04 PASSED AND ADOPTED this 4`h day of January 2016 by the following roll call vote: AYES: COUNCILMEMBERS: AULMAN, BRACCO, LEROE- MUNOZ, TUCKER, VELASCO and WOODWARD NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE APPROVED: 4W'e ward, Mayor ATTEST: 7 S reels, My Clerk RESOLUTION NO. 2016-04 Exhibit 'A' AGRICULTURAL MITIGATION POLICY City of Gilroy Adopted: May 3, 2004 Approved as Revised: January 4, 2016 Section 1.00 Statement of Intent It is the intent of this policy to set forth the specific criteria and guidelines, consistent with the City's General Plan policies on agriculture, to enable the continued viability of agriculture and agri- tourism in the Gilroy area through: (a) Recognition of agriculture's significant contribution to the local economy; (b) Protection of agricultural lands from urban encroachment; (c) Preservation of agricultural lands as a natural buffer between Gilroy and surrounding communities; and (d) Appreciation for the role of agricultural lands in enhancing Gilroy's semi - rural, character. Section 1.01 Definitions Agricultural Land or Farmland: Those lands within the City of Gilroy's General Plan 20 -year boundary that are deemed to meet the Thresholds of Significance for CEQA purposes, or those that are designated "Prime" or lands of "Statewide Importance" by the State Department of Conservation as shown on their latest "Important Farmland Map." This also includes land that has been used for agriculture but has not been irrigated for six years or more as defined by the California State Farmland Mapping Program. Agricultural Mitigation Land: Agricultural land encumbered by a farmland deed restriction, a farmland conservation easement or such other farmland conservation mechanism acceptable to the City. Agricultural Operations: Any agricultural activity, operation, or facility including but not limited to, the cultivation and tillage of the soil, dairying, the production, irrigation, frost protection, cultivation, growing, harvesting, and processing of any commercial agricultural commodity, including viticulture, apiculture or horticulture, the raising of livestock, fur - bearing animals, fish or poultry, agricultural spoils areas, and any practices performed by a farmer or on a farm as incidental to or in conjunction with such operations, including the legal application of pesticides and fertilizers, use of farm equipment, storage or preparation for market, delivery to storage or to market, or to carriers for transportation to market. Farmland Conservation Easement: An easement over agricultural land for the purpose of restricting its use to agriculture. The interest granted pursuant to a farmland conservation easement is an interest in land, which is less than fee simple. However, the farmland conservation easement is permanent. Farmland Deed Restriction: The creation of a deed restriction, covenant or condition, which precludes the use of the agricultural land subject to the restriction for any non - agricultural purpose, use, operation or activity. The deed restriction shall provide that the land subject to the restriction will permanently remain agricultural land. Natural Trail: An unimproved trail. Preferred Preservation Area: The agricultural lands located in the Santa Clara County agricultural preserve, specifically the agricultural lands located outside of Gilroy's General Plan boundary and within Gilroy's Sphere of Influence (See Attachment 1 "Preferred Preservation Areas'). Wildlife Habitat: A wildlife sanctuary that provides water, food, shelter and places to raise young for native wildlife. Wildlife Sanctuary: An area where native wildlife are safe from people or non - native animals such as dogs and cats. Section 1.02 Agricultural Mitigation Requirements (A) Those lands that require agricultural mitigation are identified in Figure 4.4 -2 and Table 4.4 -5 of the City of Gilroy's General Plan 2020 EIR (See Attachments Z 3 and 4). Mitigation requirements are not limited to these lands but would include the loss of agricultural lands due to the conversion to urban uses (including actions such as USA amendments, extension of services, or annexation) when the following criteria are met: (1) The City of Gilroy shall require agricultural mitigation for the loss of agricultural lands due to conversion to urban uses for land defined as "prime farmland or farmland of "Statewide Importance" in Section 1.01 Definitions. Mitigation shall only be required for that portion of the land that no longer will be designated agricultural land and /or will be converted to a non - agricultural use. One acre of agricultural land shall be protected for every one acre that is changed to a non- agricultural zoning classification and /or converted to a non - agricultural use (1:1 ratio of land); and (2) The project site is deemed a significant impact based upon the completion of a Land Evaluation and Site Assessment Model (General Plan EIR Appendix F -2) as administered through the standard CEQA process during project review. (3) With the following exceptions: a. A maximum of 100 feet of the land that will remain in a permanent agricultural buffer; or b. An area intended for city public facilities, as set forth in the City's General Plan or Parks Master Plan, that is adjacent to City roads and with nearby city infrastructure that can serve the project. Such public facilities would include public parks and /or public recreational facilities; permanent natural open space that is not disturbed by the development; trails and developed open space that is open to the public; and public school sites. C. Lands dedicated for lanes, median islands, bike lanes, and pedestrian facilities which qualify for Traffic Impact Fund reimbursement or funding and are not required solely due to the proposed development project, shall not be included in the acre count for agricultural mitigation. Typically these lands include the median and all sections of the roadway except the first travel lane along the frontage and the parking /shoulder lanes for arterials. For expressways all lanes including parking, bike, and shoulder plus pedestrian facilities are included. The lands for these lanes, median islands, bike lanes, and pedestrian facilities are for the common good of the community and are not considered specific to the development. (4) Specific plan areas may provide agricultural mitigation on -site as established in the specific plan if approved by the City Council. All proposed mitigation in the specific plan must be consistent with the intent of the General Plan EIR Mitigation Measure 4.4 -A and this policy as feasible mitigation for the loss of agricultural lands. Additional mitigation acreage may be required outside the specific plan area to meet the 1:1 ratio mitigation requirement. (B) Mitigation may be accomplished with one of the following two options and the options shall include all costs to cover program administration, monitoring and management of established easements as outlined in Section 1.02 (E): (1) Mitigation 1: Purchase an equal amount of land (1:1 ratio) of agricultural land within the "Preferred Preservation Areas" (see Section 1.01 Definitions) and the transfer of the ownership of this land to the Silicon Valley Land Conservancy or other City- approved agency. (2) Mitigation 2: Purchase of development rights to a 1:1 ratio on agricultural land within the "Preferred Preservation Areas" and the transfer of ownership of these rights to the Silicon Valley Land Conservancy or other City- approved agency. (C) At the time of any initial land use application approval, the applicant shall enter into a deferred payment or dedication agreement establishing the specific criteria and timing for implementing any required mitigation. This deferred agreement shall be recorded with the County Recorder's Office against the proposed project property. All required mitigation must be completed prior to final map approval, or if no map is required, no later than issuance of the first building permit. (D) Lands deemed acceptable for preservation are: (1) Those lands designated as "Prime" or of "Statewide Importance" by the State Department of Conservation in the Preferred Areas as defined in Section 1.01 Definitions; and (2) Has an adequate water supply to support the historic agricultural use on the land. The water supply for the land shall be protected in the farmland conservation easement, the farmland deed restriction or other document evidencing the agricultural mitigation. (E) Programs with those City- approved agencies handling conservation easements in the "Preferred Preservation Areas" (Section 1.01 Definitions), shall include the financial responsibility by the developers for program administration, outreach to landowners, monitoring, and management of established easements. An additional nominal fee to cover these items, the amount of which shall be established by the Silicon Valley Land Conservancy or other City - approved agency in concert with the City, shall be required in addition to the mitigation options outlined in Section 1.02 (8). Section 1.03 Right to Farm Deed Restrictions (A) All lands located within one thousand (1,000) feet of any agricultural lands deemed for preservation, as shown on the Farmland Preservation Area map (Attachment 1), shall be subject to the placement of a "right to farm" deed restriction that conforms with both Santa Clara County restrictions as well as the State of California real estate transfer disclosure requirements as a condition of approval for any discretionary permit. (B) The deed restriction shall include the following wording: "You are hereby notified that the property you are purchasing is located within 1,000 feet of agricultural land, agricultural operations or agricultural processing facilities. You may be subject to inconvenience or discomfort from lawful agricultural operations. Discomfort and inconvenience may include, but are not limited to, noise, odors, fumes, dust, smoke, burning, vibrations, insects, rodents, and /or the operation of machinery (including aircraft) during any 24 -hour period. One or more of the inconveniences described may occur as a result of agricultural operations, which are in compliance with existing laws and regulations and accepted customs and standards. If you live near an agricultural area, you should be prepared to accept such inconveniences or discomfort as a normal and necessary aspect of living in an area with a strong rural character and an active agricultural sector. Lawful ground rig or aerial application of pesticides, herbicides and fertilizers occur in farming operations. Should you be concerned about spraying, you may contact the Santa Clara County Agricultural Commission." (C) The Right to Farm Deed Restriction shall be included in all subsequent deeds and leases for this property and shall conform with both Santa Clara County restrictions as well as the State of California real estate transfer disclosure as defined by this policy. Section 1.04 Agricultural Buffer (A) To minimize future potential conflicts between agricultural and non - agricultural land uses, all new developments adjacent to designated agricultural, agricultural preserve, agricultural open space, greenbelt/agricultural buffer areas shall be required to provide an agricultural buffer /agricultural transition area. (B) The agricultural buffer /agricultural transition area shall be a minimum of one hundred fifty (150) feet measured from the edge of the agricultural, agricultural preserve, greenbelt area. No public access shall be allowed in this transition area due to the potential for complaints about and exposure to the dust and spraying associated with agricultural activities. (C) This agricultural buffer /agricultural transition area shall be comprised of two components: (1) A one hundred (100) foot minimum wide agricultural buffer zone located adjacent to the agricultural lands or greenbelt area. The following uses in the one hundred (100) foot or greater agricultural buffer area shall be limited to: L Native plants, trees or hedge rows ii. Drainage channels, storm retention ponds, natural areas such as creeks or drainage swales iii. Railroad tracks or other utility corridors (2) A fifty (50) foot agricultural transition area located between the one hundred (100) foot minimum agricultural buffer area and any new development. The following uses are allowed in the fifty (50) foot agricultural transition area: L Native plants, trees or hedge rows ii. Drainage channels, storm retention ponds natural areas such as creeks or drainage swales iii. Bike paths, benches, lighting, trash enclosures and fencing iv. Other non - residential uses determined by the Planning Commission to be consistent with the use of the property as an agricultural buffer; such as natural trails, bike paths, wildlife habitats, wildlife sanctuaries, or community service facilities like detention basins. (D) The agricultural buffer /transition area shall be constructed by the developer of any land adjacent to agricultural uses, subject to approved plans by the Community Development Department. This area shall be maintained by the developer according to standards approved by the City until the area is dedicated to and accepted by the City or other City approved agency at which time they shall be responsible for maintenance. City of Gilroy PREFERRED PRESERVATION AREAS D D C7 2 m z r —� (I l\ - r i Figure 4.4 -2 Important Farmland Map • .Iron ,n^ P�.I � '. _ CITY UN IS - -_ N YEAR FS ANW46 SQL *A)ARY O'RCP'OSEDI IN— Fr+,bHM aM PWIMN of SINW -ft Inpno,w Add- I. Vw, g A w a E—" F—*.W VIA" N R~9 Arai V4— \ M D..V -tw WaAd ODD„ SPSM N - Ukr-- ne Fan —'-..m b Rr+ W bn M PW'WQ A4- CIRCULATION LEGEND FREEWAY -. E%PRES"AY ARTERIAL - - -- _ COLLLCTOR 0 e0 City of Gilroy (} General Plan D C7 2 M z N ATTACHMENT 3 Table 4.4-5 Changes to Land Use Designations or General Plan Boundary' Involving Agricultural Lands Area Notes Acres ID (Approx.) A Prime farmland proposed for removal from the planning area (274 acres total of which -234 40 acres is rural residential). With the proposed General Plan, the site will be designated as County agricultural and rural residential. B Prime farmland to be designated as Campus /General Industrial to better align the 93 planning boundary along the east side of planning area. ( "Other land" of 15 acre in northernmost area not included in table or on Figure 4.4 -2) C Prime farmland to be added to the planning area and redesignated as Campus 664 Industrial (430 acres) and Open Space (234 acres). The Open Space area is not expected to be actively farmed due to the fact that it would be bound on the west by drainage /recreational uses upon development of the 430 acres of Campus Industrial, on the east by Llagas Creek, and the land between the two is expected to be too narrow to be effectively farmed. See more details in the following section. D Prime farmland to be added to the planning area as Public Facility. This land to be 49 used by the South County Regional Wastewater Authority (SCRWA). F Prime and Statewide - Important farmland to be added to the planning area as Public 380 Facility for the South County Regional Wastewater Authority. E, G, Prime and Statewide - Important farmland within the existing and proposed General Plan 381 H, I, J, areas to be redesignated from Open Space to urban uses. See below for more K, L information. M Ranchlands to be added to the planning area and designated as Open Space. The 1,470 new designation does not permit any urban development but does permit grazing; therefore it is not considered an urban use nor a conversion of agricultural land. Farmland Proposed to Be Added to Planning Area 952 Farmland Proposed to Be Added /Converted 1,333 from City or County open space or agricultural designation to an urban land use designation 'The General Plan Boundary used for this analysis is the "Boundary of the Planning Area" shown in the General Plan map dated 1/7/98 with changes approved in the amendment for the Gilroy Sports Park. ATTACHMENT 4 AGRICULTURAL MITIGATION POLICY APPLICABILITY GENERAL PLAN EIR = Additional Agricultural Mitigation Measures (4.4.a) Is the site located within an area identified in the Yes, subject to No continue to next GP EIR as being converted to urban designation mitigation through the question (see attachments 2 and 3 of Ag Policy)? Ag Policy. Is the site designated as farmland that is either of prime or statewide importance according to the Yes, continue to CEQA No, not subject to State Department of Conservation Important Review policy Farmland Mapping? California Environmental Quality Act (CEQA) Review Does it score as significant based on the California Yes, mitigation through No, continue to next Department of Conservation Agricultural Land the Ag Policy is question Evaluation and Site Assessment (LESA) model? required Are there any Williamson Act Contracts in place on Yes, significant No mitigation required, less than the property? unavoidable impact significant impact * CEQA requires all feasible mitigation for significant unavoidable impacts. Upon certification of the General Plan EIR, the City Council declared that an Agricultural Mitigation Program is deemed feasible mitigation. Therefore significant impacts as determined under CEQA would be subject to the City's Agricultural Mitigation Policy. I, SHAWNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2016 -04 is an original resolution, or true and correct copy of a city Resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 41h day of January, 2016 at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 5`1' day of January, 2016. Shawna Freels, MMC City Clerk of the City of Gilroy (Seal)