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MEMORANDUM
TO: Board of Supervisors
FROM: Carol J. Huchingson, County Administrative Officer
DATE: May 7, 2019
SUBJECT: Consideration of (a) Resolution authorizing the County Administrative Officer to execute a Funding Agreement with Pacific Forest and Watershed Lands Stewardship Council, approving the County’s receipt of $796,993 in lieu of property taxes related to the transfer of 891 acres, located near the Eel River, Lower Trout Creek area, from the Pacific Gas & Electric Company to the United States Forest Service; and (b) Resolution authorizing the County Administrative Officer to execute a Funding Agreement with Pacific Forest and Watershed Lands Stewardship Council, approving the County’s receipt of $56,428 in lieu of property taxes related to the transfer of 95 acres, located near the Eel River, Lower Trout Creek area, from the Pacific Gas & Electric Company to the Potter Valley Tribe
EXECUTIVE SUMMARY:
BACKGROUND:
The Stewardship Council has recommended that approximately 891 acres of PG&E Watershed lands located in Lake County be transferred to the United States Forest Service, a government agency. In connection with this transfer of real property, the Stewardship Council has agreed to make a lump sum payment to the County. The County General Fund will receive $182,135 of the current total estimated tax neutrality lump sum amount of $796,993.
The Stewardship Council has also recommended that the Potter Valley Tribe, a federally recognized tribe, receive a fee title donation to approximately 95 acres of PG&E Watershed lands located in Lake County. In connection with this transfer of real property, the Stewardship Council has agreed to make a lump sum payment to the County. The County General Fund will receive $12,895 of the $56,428 lump sum in exchange for the County agreeing to forego the collection of property taxes from the Potter Valley Tribe.
Tax neutrality funding agreements between the County and Pacific Forest and Watershed Lands Stewardship Council (“Stewardship Council”) are proposed to offset the loss in property tax revenues. The lump sum payments will be distributed to affected taxing agencies within the County.
The Pacific Forest and Watershed Lands is a nonprofit organization, which was formed as a result of a PG&E Settlement Agreement with the California Public Utilities Commission (CPUC) in 2003 and the Stipulation Resolving Issues Regarding the Land Conservation Commitment. The Stewardship Council is charged with implementing PG&E’s Land Conservation Commitment.
As part of the PG&E Settlement Agreement and Stipulation in 2003, a Land Conservation Commitment was established to permanently protect approximately 140,000 acres of PG&E watershed lands. Located across 22 counties, the lands encompass almost 1,000 parcels. The Watershed Lands stretch from Shasta County in the north and Kern County in the south, from the Sierra Nevada and Cascade ranges to the Eel River watershed in Lake and Mendocino Counties. For planning purposes, the parcel were grouped into 47 planning units.
Protecting the watershed lands will be accomplished through (1) PG&E’s grant of conservation easements to one or more public agencies or qualified conservation organizations so as to protect the natural habitat of fish, wildlife, and plants, the preservation of open space, outdoor recreation by the general public, sustainable forestry, agricultural uses, and historic values (collectively the Beneficial Public Values); and in some cases (2) PG&E’s donation of the watershed lands in fee to one or more public entities or qualified conservation organizations, whose ownership would be consistent with these conservation objectives.
In accordance with PG&E's Settlement Agreement, certain lands owned by PG&E are being donated to public agencies or qualified organizations for the protection of the lands. Because the land will be transferred from a privately-owned utility to a Tribal entity and a government agency, the transfer of lands has the potential for property tax implications. The Settlement Agreement requires that any donation will not adversely impact local tax revenue, and the Stipulation requires that an appropriate entity provide property tax revenue, other equivalent 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 the county.
FISCAL IMPACT: __ None __Budgeted __Non-Budgeted
Estimated Cost:
Amount Budgeted:
Additional Requested:
Annual Cost (if planned for future years):
FISCAL IMPACT (Narrative): The lump sum payments will be distributed to affected taxing agencies within the County. To cover costs of administration, the Stewardship Council also agrees to pay the County $3,000 for each agreement.
STAFFING IMPACT (if applicable): None
Recommended Action
RECOMMENDED ACTION:
(a) Staff recommends your Board adopt Resolution authorizing the County Administrative Officer to execute a Funding Agreement with Pacific Forest and Watershed Lands Stewardship Council, approving the County’s receipt of $808,065 in lieu of property taxes related to the transfer of 891 acres, located near the Eel River, Lower Trout Creek area, from the Pacific Gas & Electric Company to the United States Forest Service.
(b) Staff recommends your Board adopt Resolution authorizing the County Administrative Officer to execute a Funding Agreement with Pacific Forest and Watershed Lands Stewardship Council, approving the County’s receipt of $57,211in lieu of property taxes related to the transfer of 95 acres, located near the Eel River, Lower Trout Creek area, from the Pacific Gas & Electric Company to the Potter Valley Tribe