HomeMy WebLinkAbout2002 S EDC - Cooperative Agreement Between the USA Commodity Credit Corporation and OC for the Farmland Protection Program Agreement No. IS-4S32_ 2_vo4
COOPERATIVE AGREEMENT
BETWEEN THE
UNITED STATES OF AMERICA
COMMODITY CREDIT CORPORATION
and
Orange County,North Carolina
for the
FARMLAND PROTECTION PROGRAM
This Cooperative Agreement, made this 16+t'-day of September,2002 is entered into by
and between the United States of America, acting by and through the Commodity Credit
Corporation(CCC), and Orange County,North Carolina for the implementation of the
Farmland Protection Program(FPP). The CCC shall utilize the expertise and services of the
various agencies of the United States Department of Agriculture, including the Natural Resources
Conservation Service(NRCS) (hereinafter"the United States") and the Farm Service Agency
(FSA). For purposes of this Cooperative Agreement,the term"Parties"refers collectively to the
United States and Orange County,North Carolina(hereinafter"Orange County"or"the
County").
I. AUTHORITY.
This Cooperative Agreement is entered into by the United States under the authorities of
the Commodity Credit Charter Act, 15 U.S.C. 714 et seq.; Title II, Subtitle F, Section 2503 of the
Farm Security and Rural Investment Act of 2002 (Public Law 107 171) and Title VII, Section
714 of the Agriculture,Rural Development,Food and Drug Administration, and related Agencies
Appropriation Act of 2001 (Public Law 106-387). The CCC administers the FPP under the
general supervision of the Chief of the NRCS who is a Vice President of the CCC.
H. BACKGROUND AND PURPOSE.
Enacted on May 13, 2002, Section 2503 of the Farm Security and Rural Investment Act
of 2002 authorizes the Secretary of Agriculture to purchase conservation easements or other
interests in land that are subject to pending offers from a State, Tribal or units of local
government or eligible nongovernmental organizations for the purpose of protecting topsoil by
limiting non-agricultural uses of the land. To be eligible, the farm or ranch land must contain
prime,unique, or other productive soil or historical or archaeological resources. For fiscal year
2002,the Farm Security and Rural Investment Act of 2002 authorized up to $50,000,000 for the
FPP. On May 30, 2002, CCC published a notice in the Federal Register requesting proposals for
participation from Tribes, States, units of local government, and non-governmental
organizations. See Federal Register Volume 67,Number 104,Notices Page 37756.
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WHEREAS, Orange County and CCC have mutual interests in preventing the conversion
of agricultural lands to non-agricultural uses; and
WHEREAS, CCC administers the FPP, which is managed by MRCS; and
WHEREAS, Orange County administers a farmland protection program, and has pending
offers for acquiring agricultural conservation easements from landowners within the County, and
the United States and Orange County have agreed to combine their resources to assure that such
areas are protected from conversion to nonagricultural uses.
THEREFORE,the parties agree to enter into this Cooperative Agreement.
III. OBLIGATION OF FUNDS
Upon execution of this agreement, the CCC shall obligate the sum of$784,155 for the
acquisition of United States' interests in conservation easements or other interests inland.
Orange County must request payment of this amount in accordance with Part V of this
:Cooperative Agreement before September 30, 2004. After this date, any remaining funds will be
released from this obligation.
This Cooperative Agreement is the authorizing document that obligates CCC funds to
acquire easements or other interests in land. The CCC's contribution for the acquisition of each
conservation easement or other interest in land acquired by Orange County shall be up to but not
more than 50% of the appraised fair market value. The CCC contribution cannot be used for
closing and related administrative costs incurred in acquiring the conservation easement.
Attachment A to this Cooperative Agreement specifies the CCC funds to be used within the
County and includes a list with a detailed breakdown of the: (1)name and mailing address of the
landowner; (2) tax map number(s) of the property; (3)number of acres to be acquired; and(4) the
estimated conservation easement value. However,nothing in this document obligates the CCC
or Orange County to purchase all or any of the conservation easements or interests in the land
parcels listed. There may be further modifications, additions or deletions to the list depending on
the prices paid for the conservation easements, the ability to obtain good and clear title, future
funding for acquisitions, etc. Additions or deletions to the list will be made by mutual agreement
between the Parties to this Cooperative Agreement.
IV. ENTITY'S CONTRIBUTION
Orange County may supplement its share of the conservation easement cost through a charitable
donation by the landowner of not more than 25 percent of the appraised fair market value of the
conservation easement or other interest in eligible land. Where a landowner's donation is
considered to be part of an entity's matching offer, the entity is required to contribute at least 25
percent of the appraised fair market value of the conservation easement or 50 percent of the
purchase price.
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Prior to signing the cooperative agreement, for a landowner's donation to be considered as part of
an entity's matching offer, the entity must have a current appraisal on the land in accordance with
the Uniform Standards of Professional Appraisal Practices or the Uniform Appraisal Standards
for Federal Land Acquisitions (Interagency Land Acquisition Conference, 1992).
V. PAYMENTS
Orange County shall notify NRCS when the CCC funds are to be paid. CCC funds shall
be paid to Orange County when NRCS is notified that the conservation easement has been
recorded and Orange County has paid the landowner(s). Where the County cannot obtain 100
percent of the funds to be paid at closing to the landowner(s) and requires NRCS to make its
payment at closing rather than on a reimbursable basis, the County may request a waiver for
NRCS to pay its share of the conservation easement purchase at closing. In the instance where a
waiver is requested, the County shall notify NRCS at least 60 days prior to closing. Where a
waiver is requested, CCC shall make payment to an authorized closing agent. These funds will
be transmitted to the Closing Agent by electronic transfer. The Closing Agent will hold the
funds in escrow for a period not to exceed 14 calendar days. Upon receipt of the funds, the
closing agent will sign a payment receipt form and return it to MRCS. If interest is earned upon
CCC funds, the Closing Agent must return any interest earned to CCC. All deeds used by
Orange County shall be approved by the Office of General Counsel (OGC)National office or
regional OGC office prior to purchase of the conservation easement or other interest in land.
Orange County will submit Form SF-270 (Request for Advance/Reimbursement of
Funds), and the information specified below to the North Carolina NRCS State Office. Prior to
submitting the SF-270,the County must also request a copy of closing agent requirements from
NRCS and ensure that the closing agent meets these requirements. Orange County may submit
the Form SF-270 after all the deeds have been recorded and the landowner has been paid or on a
quarterly basis for each quarter that conservation easements have been recorded and the
landowner has been paid.
At a minimum, the following information shall be included in, or attached to, the SF-270:
(1)the name of the County; (2)this cooperative agreement number; (3) conservation easement or
other land interest number; (4) total amount of dollars paid the landowner for the conservation
easement, specifying the CCC share and the non-CCC share of the conservation easement cost;
(5) term of conservation easement; (6) acres acquired; (7) Tax Identification Number(TIN) for
Orange County; (8)Federal Information Processing Standards (FIPS) number for Orange County;
(9)Bank routing number and account number for desired deposit location; and(10) copy of the
conservation easement deed that contains the contingent right clause as described in Part VI of
this Agreement. Where a landowner donation is accepted as part of the entity's matching offer, a
copy of the current appraisal and IRS Form 8283 must be submitted to NRCS.
VI. CONSERVATION EASEMENT REQUIREMENTS.
A. Orange County shall assure that conservation easements or other interests in land
acquired under this agreement:
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I. run with the land in perpetuity or a minimum of thirty years, in the case where a
conservation easement is acquired for a term less than perpetuity, Orange County
must secure approval of the NRCS National Office.
2. prevent the land from being converted to nonagricultural uses;
3. provide for the management and administration of the easement or other interests in
land by Orange County;
4. require management of the property in accordance with a conservation plan that is
developed utilizing the standards and specifications of the NRCS field office
technical guide,7 CFR Part 12, and is approved by the Conservation District;
5. where parcels are being enrolled in FPP based on historical and archaeological
resources, a paragraph identifying standards and guidelines for treatment and
maintenance of these resources is required within.the deed. These guidelines should
be based on the Secretary of Interior's Standards and Guidelines for Historic
Preservation. Orange County will ensure that title restriction to protect any historical
and archaeological structure(s) is appended to the deed and included in any
succeeding transfers; and
6. include the following"Contingent Right in the United States of America"provision
where title is held by Orange County:
"In the event that Orange County fails to enforce any of the terms of this easement[or other
interests in land],as determined in the sole discretion of the Secretary of the United States
Department of Agriculture,the said Secretary of Agriculture and his or her successors and
assigns shall have the right to enforce the terms of the easement through any and all
authorities available under Federal or State law. In the event that Orange County attempts
to terminate,transfer,or otherwise divest itself of any rights,title,or interests of this
easement[or other interests in Iand]or extinguish the conservation easement without the
prior consent of the Secretary of the United States Department of Agriculture and payment
of consideration to the United States,then,at the option of such Secretary,all right,title,
and interest in this easement[or other interests in land]shall become vested in the UNITED
STATES OF AMERICA."
7. include signature of a responsible NRCS official on the Conservation deed, accepting
the United States' property interest in the deed.
B. Unless otherwise agreed to by the Parties, Orange County shall hold title to any
conservation easement or interest in land. However, title may be held by the United States at the
request of the Secretary of Agriculture upon mutual agreement of the Parties, or when the
contingent right provision is activated.
VII. RESPONSIBILITIES.
A. Those of the United States -
1. The United States,by and through the NRCS, shall provide technical and other
services required to assist the landowner in developing an appropriate conservation plan in
accordance with 7 CFR Part 12. To ensure that the conservation plan is implemented in
accordance with 7 CFR Part 12, the NRCS will be provided the opportunity to conduct periodic
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field visits on lands that are enrolled in the FPP and associated lands owned or managed by the
landowner which are also subject to 7 CFR Part 12.
2. The CCC shall, subject to the availability of funds, disburse the appropriate funds to
Orange County in accordance with Part III and V of this Cooperative Agreement.
3. Prior to NRCS accepting the conservation easement or other land interest terms and
processing payment, NRCS shall ensure that a conservation plan for highly erodible lands
developed in accordance with 7 CFR Part 12 be developed and that an AD-1026,Highly Erodible
Land and Wetland Certification form has been filed at the appropriate USDA Service Center.
B. Those of Orange County-
1. Orange County shall perform necessary legal and administrative actions to ensure
proper acquisition and recordation of valid easements or interests in land.
2. Orange County shall use all awarded funds under this agreement for the acquisition of
conservation easements within approved FPP areas. CCC funds shall pay for not more than 50%
of the appraised fair market value, of the conservation easement in land acquired.
3. Orange County shall pay all costs of conservation easement or other interest in land
procurement and will operate and manage each conservation easement or other interest in land in
accordance with Orange County program, this Cooperative Agreement, and the FPP. The United
States shall have no responsibility for the costs or management of the conservation easements or
other interests in land.purchased by Orange County. To the extent permitted by North Carolina
Law, Orange County shall indemnify, defend, and hold the United States harmless for any costs,
damages, claims, liabilities, and judgments arising from past,present, and future acts or
omissions of Orange County in connection with the acquisition and management of the
conservation easements [or other interests in land] acquired pursuant to this Cooperative
Agreement. This indemnification'and hold harmless provision includes but is not limited to acts
and omissions of the County's agents, successors, assigns, employees, contractors, or lessees in
connection with the acquisition and management of the conservation easements acquired
pursuant to this Cooperative Agreement which result in: (1) violations of any laws and
regulations which are now or which may in the future become applicable, and including but not
limited to the Resource Conservation and Recovery Act, as amended, 42 U.S.C. 6901 et seq., the
Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq., the Comprehensive
Environmental Response, Compensation, and Liability Act, as amended, 42 U.S.C. 9601 et seq.,
the Toxic Substances Control Act, as amended 15 U.S.C. 2601 et seq., the Federal Insecticide,
Fungicide, and Rodenticide Act, as amended, 7 U.S.C. 136 et seq., and the Safe Drinking Water
Act, as amended, 42 U.S.C. 300f et seq.; (2)judgments, claims, demands,penalties, or fees
assessed against the United States; (3) costs, expenses, and damages incurred by the United
States; or(4)the release or threatened release of any solid waste,hazardous waste,hazardous
substance, pollutant, contaminant, oil in any form, or petroleum product into the environment.
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4.Non-governmental organizations shall continue to meet the requirements specified in
Title H, Subtitle F, Section 2503 of the Farm Security and Rural Investment Act of 2002. The
Act states that eligible organizations are"any organization that—
(A)is organized for, and at all times since the formation of the organization has been
operated principally for, 1 or more of the conservation purposes specified in clause
(i), (ii), (iii), or(iv) of section 170(h)(4)(A) of the Internal Revenue Code of 1986;
(B)is an organization described in section 501(c)(3) of that Code that is exempt from
taxation under 501 (a) of that Code;
(C)is described in section 509 (a)(2) of that Code; or
(D)is described in section 509(a)(3) of that Code and is controlled by an organization
described in section 509 (a)(2) of that Code."
5. Orange County shall incorporate into each deed in which CCC funds are used as part of
the acquisition the "Contingent Right in the United States of America"provision described in
Part V of this Cooperative Agreement, as well as the other required clauses set forth in Part V
Section A5 of this Cooperative Agreement.
6. Prior to payment certification, Orange County shall ensure that all lands for which a
conservation easement or other interest in land has been acquired will have a conservation plan, as
described in Part VI of this Cooperative Agreement.
7. Orange County shall prohibit all non-agricultural uses of the encumbered properties,
excluding recreational uses, such as hiking,hunting, fishing,boating, horseback riding that will
not conflict with the purpose of Section 2503 of the Farm Security and Rural Investment Act of
2002 (Pub. L. 107– 171.).
8. Orange County shall monitor FPP parcels on at least an annual basis to ensure that the
conservation easement is being implemented according to the deed provisions.
9. In acquiring conservation easements or other interests in land, Orange County shall
ensure that the title to the lands or interests therein shall be unencumbered or, if encumbered by
outstanding or reserved interests, Orange County shall ensure that any outstanding interest are
subordinated to the conservation easement. Orange County shall assure that proper title evidence
is secured and that the title of the interest acquired by the United States is insured to the amount
of the CCC price paid for the United States interest. Orange County shall ensure that American
Land Title Association(ALTA) title insurance or other title insurance company doing business in
North Carolina and approved by NRCS will be issued for all acquisitions, and that the title
insurance company complies with all state laws, including title insurance and reserve
requirements, and is approved by the State Insurance Commissioner. In the event of a failure of
title, Orange County will reimburse the United States for the amount paid by CCC, less any
amount paid to the United States from title insurance.
10. Orange County shall ensure that the consideration paid to any landowners for the
conveyance to Orange County of any conservation easements or other interests in lands is no
more than the fair market value of the land or interests conveyed. Prior to cooperative agreement
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signatures, a copy of Orange County current appraisal policy and standards shall be provided to
NRCS. To determine fair market value an appraisal methodology consistent with the Uniform
Standards of Professional Appraisals Practices, the Uniform Appraisal Standards for Federal
Land Acquisitions (Interagency Land Acquisition Conference, 1992), or other real estate
valuation techniques approved and used by the state when expending state funds for land
acquisition shall be used. If requested, appraisals shall be provided to NRCS. In cases where the
conservation easement acquisition involves Federal funds of more than$250,000, an appraisal in
accordance with the Uniform Standards of Professional Appraisals Practices or the Uniform
Appraisal Standards for Federal Land Acquisitions (Interagency Land Acquisition Conference,
1992) is required.
11. Orange County shall certify payment(s)received by submitting a transmittal letter that
references; (i) the cooperative agreement number; (ii)the conservation easement or other land
interest contract number; (iii) total amount of dollars paid or to be paid to the landowner for the
conservation easement, specifying the CCC share and the non-CCC share of the conservation
easement cost; (iv)term of conservation easement; (v) acres acquired; (vi) a copy of the recorded
deed containing the contingent right clause as described in Part V of this Agreement; (vii) IRS
Form 8283 and a current appraisal when a landowner donation accounts for a portion of the
entity's matching share. Certification of payment for all conservation easements or other
interests in land acquired must occur on or before September 30, 2004.
12. Performance Reporting- Orange County will conduct annual monitoring of
conservation easements or other land interests to ensure that the conservation easements or other
interests in land are being implemented according to the deed provisions. An annual report of the
status of conservation easements and pending conservation easement acquisition will be
submitted to CCC, or when requested by CCC or NRCS. This report format will be defined by
NRCS and submitted to the NRCS representative for this Agreement.
13. No person who is an official, member, or employee of Orange County shall participate,
directly or indirectly, in the annual monitoring of conservation easement compliance on his or
her own land.
14. When a conservation plan violation is reported to the cooperating entity by MRCS,
after all administrative and appeal rights have been exhausted by the landowner in accordance
with 7 CFR Part 12 and 7 CFR Part 614, Orange County shall implement easement enforcement
procedures.
VIII. GENERAL PROVISIONS.
A. The term of this agreement shall be from the date of the last signature affixed hereto through
September 30, 2004.
B. No assignment in whole or in part shall be made of any right or obligation under this
Cooperative Agreement without the joint approval of both the United States and Orange County.
Nothing herein shall preclude the United States or Orange County from entering into other
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mutually acceptable arrangements or agreements. Such documents shall be in writing, reference
this agreement, and be maintained as part of the official agreement file.
C. This Cooperative Agreement may be amended, extended, or modified by written amendment
signed by the authorized officials of the United States and Orange County.
D. This agreement may be terminated by either party hereto by a written notice to the other party
at least 30 calendar days in advance of the effective date of the termination. The United States
may terminate this agreement if the United States determines that Orange County has failed to
comply with the provisions of this agreement. In the event that this agreement is terminated for
any reason, the financial obligations of the parties will be as set forth in 7 CFR Part 1403,Part
3016 and Part 3019, as applicable.
E. This Cooperative Agreement shall be enforced and interpreted in accordance with applicable
Federal laws and regulations, directives, circulars, or other guidance. When signed, this
Cooperative Agreement will become binding on Orange County and the United States to be
administered in accordance with 7 CFR Part 3015 Uniform Federal Assistance Regulations Part
3016-Uniform Administrative Requirements for Grants and Cooperative Agreements to State and
Local Governments, or Part 3019-Uniform Administrative Requirements for Grants and
Cooperative Agreements with Institutions of higher Education, Hospitals, and Other Non-Profit
Organizations, as applicable.
F. As a condition of this Cooperative Agreement, Orange County assures and certifies that it is in
compliance with, and will comply in the course of the agreement with the 7 CFR Part 3016-
Uniform Administrative Requirements for Grants and Cooperative Agreements to State and
Local Governments, or Part 3019-Uniform Administrative Requirements for Grants and
Cooperative Agreements with Institutions of higher Education, Hospitals, and Other Non-Profit
Organizations, as appropriate.
G. Orange County agrees that it will comply with Title VI of the Civil Rights Act of 1964, Title
IX of the Education Amendments of 1972, Section 504 of the Rehabilitation Act of 1973, the
Age Discrimination Act of 1975, and all requirements imposed by the Regulations of the
Department of Agriculture (7 CFR Part 15), Department of Justice(28 CFR Parts 42 and 50) to
the effect that, no person in the United States, shall, on the grounds of age, sex, disability, color,
race, or national origin, be excluded from participation in, or be denied the benefits of, or be
otherwise subjected to discrimination under any program or activity for which the applicant
received Federal financial assistance from the Department; and hereby gives assurance that it will
immediately take any measures necessary to effectuate this agreement.
H. The activities under this agreement will be in compliance with Title V of the Drug-Free
Workplace Act of 1988, 41 U.S.C. 702, and 7 CFR, Part 3017, Subpart F.
I. Employees of Orange County shall not be considered to be Federal employees or agents of the
United States for any purpose under this agreement.
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J. Orange County shall give CCC,MRCS, or the Comptroller General,through any authorized
representative, access to and the right to examine all records,books,papers, or documents related
to this agreement.
K. If any recipient of Federal funds under this Cooperative Agreement materially fails to comply
with the terms of this Cooperative Agreement,the United States reserves the right to wholly or
partially recapture funds provided in accordance with 7 CFR Parts 1403, 3015, 3016, and 3019.
L. Orange County agrees to comply with all applicable Federal, state, and local laws.
IX. PRINCIPAL CONTACTS.
The United States representative for this Cooperative Agreement is:
Mary K. Combs
State Conservationist
Natural Resources Conservation Service
on behalf of the Commodity Credit Corporation
4405 Bland Road
Raleigh,North Carolina 27609
919-873-2101
The Orange County representative for this Cooperative Agreement is:
David Stancil, Director
Orange County Environment and Resource Conservation Department
P.O. Box 8181
Hillsborough,NC 27278
919-245-2590
IN WITNESS WHEREOF,the following authorized representatives of the United States
and Orange County have executed this Cooperative Agreement.
ORANGE COUNTY
By: Barry Ja s, air
Oran County f ommissioners
UNITED STATES OF AMERICA
COMMODITY CREDIT CORPORATION
A b ff6YJLA)
By: St to n ervationist
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Attachment A
List of Pending Conservation Easement Offers
Priority Landowner Parcel(s) Acres Easement Estimated Federal
Name(s) Identification Type Price Share
1 Walters 2.42..5 228.47 Permanent $676,300 $338,150
7119 High Rock Rd. 2.42..11
Efland,NC 27243 2.42-11A
2 Cheek 7.21..14 75.25 Permanent $480,000 $235,255
1811 Dairyland Rd.
Chapel Hill,NC 27516
3 Ward 3.8..18 120.27 Permanent $421,500 $210,750
1515 Ira Road 3.8..1
Efland,NC 27243 3.8..22
3.8..23
Totals 423.99 $1,577,800 $784,155
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