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HomeMy WebLinkAboutAgreement A-16-581 with Pacific Forest and Watershed Lands Stewardship Council.pdfAgreement No . 16 -581 Funding Agreement to Implement Tax Neutrality Requirement-Wishon Reservoir Property in Fresno County This Funding Agreement to Implement Tax Neutrality Requirement ("Agreement") is entered into as of the Effective Date (defined below) by and between the Pacific Forest and Watershed Lands Stewardship Council , a California nonprofit public benefit corporation ("Stewardship Council") and County of Fresno, a polit ica l subdivision of the State of Ca lifornia ("County") with reference to the following facts : A. The Stewardship Council was created to oversee the "Land Conservation Commitmenf' described in ( 1) that certain Settlement Agreement among Pacific Gas and Electric Company ("PG&E"), PG&E Corpo ration , and the California Publ i c Utilities Commission (the "Commission") as modified and approved by the Commission in its Opinion and Order of December 18, 2003 (Decis ion 03-12-035) (the "Settlement Agreement"); and (2) that certain Stipulation Resolving Issues Regard ing the Land Conservation Commitment dated September 25, 2003 (the "Stipulation"). The Stewardship Council has lim ited assets and no foreseeable sources of revenue, and consequently the Stewardship Council is anticipated to dissolve or otherwise wind down or cease to operate in the future. B. Pursuant to the Settlement Agreement and Stipulation, certain lands owned by PG&E at the time of the Settlement (the "PG&E Watershed Lands") are to be conserved for a broad range of beneficial public values , including the protection of the natural habitat of fish, wildlife and plants; the preservation of open space ; outdoor recreat ion by the general public ; sustainable forestry; agricultural uses; and historic values . The Stewardship Counci l is charged with developing a Land Conservation Plan ("LCP") fo r the protection and enhancement of the PG&E Watershed Lands . C. In connection with the Land Conservation Commitment, PG&E has agreed to donate a portion of the PG&E Watershed Lands to eligible organizations , including the lands described below in Section 2. D . The Settlement Agreement requires that the LCP assess that any donation will not adversely impact local tax revenue , and the Stipu lation requires that an appropriate entity provide property tax revenue, other equ ivalent revenue source , or a lump sum payment so that the totality of the dispositions in each affected county under the Land Conservation Commitment will be tax neutral for that county ("Tax Neutrality Requirement"). By and through this Agreement, County and Stewardship Council desire, among other things, to confirm and acknowledge that the Tax Neutrality Requirement has been met for the Property that is the subject of this Agreement. E. The Stewardship Council board of directors has adopted the Property Tax Neutrality Methodology attached as Exhibit A. The methodology establishes a standard payment process when lands are transferred to organizations that are exempt from paying property taxes . The methodology outl ines three in-lieu payment options : a one-time lump sum payment from the Stewardship Council directly to counties ("Option A"); the Stewardship Council's establishment of an endowment account with an investment manager and trustee ("Designee Account Holder"), which account would be designed to generate enough investment income to make annual in-lieu payments to counties on an ongoing basis ("Option Page 1 B"): and annual installment payments for a maximum number of five years totaling the l umpsum amount ("Option C"). F. In consideration of the covenants and obligations set forth herein, the Stewardship Council intends that the funding be provided to County as descri bed in Sections 3 and 4, and County desires to accept such funding, all subject to the terms and conditions described in this Agreement. NOW, THEREFORE, IN CONSIDERATION of the foregoing recitals , and the mutual covenants and obligations of the parties herein conta in ed , the Stewardsh ip Council and County agree as follows : · 1. Effective Date and Term. Th is Agreement shall become effective as of the last date it has been signed by both parties . ("Effective Date"). The provisions of this Agreement shall survive the Stewardship Council's dissolution, winding down or ceasing operations. 2. Property . The Property consists of approx imately 167 acres of real property located in the County of Fresno , State of Ca lifornia , within what is commonly known as the Wishon Reservoir Planning Unit and as more particularly described in Exhibit B attached and incorporated by this reference . The Property was transferred to the United States of America, acting by and through the United States Forest Service , on July 12, 2016 ("Transfer Date"). 3. Funding Allocation. Within 60 days of the Effective Date, the Stewardship Council will set aside and provide for the sum of Thirteen Thousand Four Hundred Eighty Two Dollars ($13,482) ("Funding Allocation") based upon the Payment Calculation in Exhibit C_to satisfy the Tax Neutrality Requirement with regard to the donation of the Property. 4 . Payment Option Selected . County elects the payment method selected below as indicated by the checked box. fJ!( Option A: Lump Sum. The Funding Allocation will be paid to County in a single lump sum payment of $13 ,482 no later than 60 days after the Effective Date of this Agreement. o Option 8: Installment Payments by a Trustee . Annual installment payments will be paid to County initially by either the Stewardship Council or the Designee Account Holder and ultimately solely by the Designee Account Holder as described in more detail in Exhibit D . If County selects Option B, it is with the understanding that as of the Effective Date of this Agreement, a Designee Account Holder has not been selected by the Stewardship Council and the availability of Option B is contingent upon sufficient participation by counties in Option B to meet the Designee Account Holder's minimum account size. In the event that County elects Option B but the Stewardship Council determines that Option B is not viable , the Stewardship Council shall provide written notice to County that it can select either Option A or Option Cas the alternative payment method . Within 60 days of rece ipt of this notice, County shall notify the Stewardship Council which of the two alternative payment methods it has selected. If Option A is selected as the alternative, within 60 days of receipt of the County's notification that it has selected Page2 COUNTY OF FRESNO By:Z ~~-~ Chairman, Board of Su rv1so rs Date: q -!}y) -llo ATTEST: Clerk ofthe Board of Supervisors By: 3u ~ &shD)) Deputy Approved as to accounting form : Vicki Crow, C.P.A. Auditor-Controller/Treasurer-Tax Collector By: ~ C C&z_,4== Deputy Reviewed and Recommended for Approval : M. Rousseau , County Administrative Officer fvY'& 115"0 Sv.bc.Aos5 I 'l ;).o o Ac.ci . 3olo 0~ oyls' Page?