1. WILLIAMSON ACT AND AGRICULTURAL CONTRACTS WILLIAMSON ACT AND AGRICULTURAL CONTRACTS Fresno County Board of Supervisors February 26, 2008

2. WILLIAMSON ACT AND AGRICULTURAL CONTRACTS Brief History of Williamson Act and Farmland Security Zones

3. Williamson Act Contract and Farmland Security Zone (FSZ) History Added to California Statutes: Williamson Act:September 17, 1965 Farmland Security Zones:August 24, 1998 First Contract recorded in Fresno County: Williamson Act:June 9, 1967 Farmland Security Zones:January 23, 2001 WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

4. Williamson Act Contract and Farmland Security Zone (FSZ) Program Requirements Williamson Act:Located within an established agricultural preserve Existing commercial agricultural operation Meets parcel size requirements Farmland Security Zone Agreement:Located within a Farmland Security Zone Existing commercial agricultural operation Meets parcel size requirements Located on Prime Farmland as defined by the Williamson Act, or land designated on the Important Farmland Series maps as: Prime Farmland Farmland of Statewide Significance Unique Farmland Farmland of Local Significance Minimum Parcel Size: 20 acres on the Valley floor 40 acres east of the Friant-Kern Canal 40 acres west of Interstate 5 and the Pleasant Valley, Westlands and San Luis Water Districts WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

5. Williamson Act Contract and Farmland Security Zone (FSZ) Agreement Comparison Williamson Act contract term:10 years FSZ term:20 years Cancellation requirements for Williamson Act contract:Board of Supervisors Cancellation requirements for FSZ agreement:Board of Supervisors and Department of Conservation Cancellation fee for Williamson Act contract:12.5 percent of fair market value of land Cancellation fee for FSZ agreement:25 percent of fair market value of land Owner incentive for Williamson Act contract:Reduction of property taxes through changes in basis for assessment to the production capability, rather than the development value of the land. Owner incentive for FSZ agreement:35 percent reduction from the Williamson Act property tax level WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

6. Williamson Act Homesite Conveyance Provisions Prime Land:Original Parcel:At least 20 acres Resulting Parcels:At least 10 acres each Non-Prime Land:Original Parcel:At least 80 acres Resulting Parcels:At least 40 acres each Parcels are subject to: Joint Management Agreement Declaration acknowledging Both parcels shall continue to be used for agricultural purposes for the duration of the Williamson Act Contract Any residence must be incidental to the agricultural use of the parcel Material breach provisions of the Williamson Act The Board-adopted Interim Program Guidelines and Procedures (Interim Guidelines) adopted May 25, 2004 allow for processing of agricultural homesite exception parcels pending certain conditions including: 1) the resulting parcels are required to each be at least 10 acres; 2) the total of the two parcels must be at least 20 acres; 3) for prime land, the applicant and recipient enter into a Declaration of Intent and Acknowledge of Penalty for Unlawful Conveyance. WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

7. Locations and Orientation of Contracted and Agricultural Lands WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

10. Role of the Agricultural Land Conservation Committee WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

11. Role of the Agricultural Land Conservation Committee Term:Indefinite Qualification:Should be knowledgeable about agricultural matters and be aware of current land use trends in Fresno County Meetings:Monthly Duties:Review agricultural preserve and Farmland Security Zone applications Review Williamson Act Contract and FSZ Agreement applications Review petitions for Williamson Act Contract cancellation Actions:Advisory actions, forwarded to the Board of Supervisors as a recommendation WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

12. Role of the Agricultural Land Conservation Committee Agricultural Land Conservation Committee Composition: County Agricultural Commissioner Director of the Cooperative Extension Representative for the USDA, Soil Conservation Service Representative for the Fresno County Farm Bureau Representative for the California State University, Fresno, Agriculture Department Two members appointed by the Board of Supervisors, from potential appointees nominated by the following organizations Sierra Club Small & Large Acreage Farmers Nisei Farmers League Consolidated Irrigation District Fresno Irrigation District Kings River Conservation District Council of Fresno County Governments League of Women Voters Fresno Association of Realtors Building Industry Association WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

13. Role of the Department of Conservation WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

14. Role of the Department of Conservation The Department of Conservation is responsible for the interpretation of the Williamson Act, research of related issues and policies, and enforcement of Williamson Act provisions and restrictions. WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

15. Fiscal Implications WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

16. State Proposals Affecting Subvention Funding Jan ’03Governor Davis proposing removal of subvention funding from budget Aug’ 03Adopted budget includes subvention funding May ’07Governor Schwarzenegger presents a budget that would eliminate subvention funding Sep ’07Adopted budget includes subvention funding Jan ’08Governor Schwarzenegger presents a budget proposal that includes a 10% reduction in subvention funding WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

18. RECOMMENDATIONS WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

19. Options to Consider 1.Encourage State to provide relief from property tax breaks (or tax break equivalent to the subvention funding) to contract holders in the event subvention funding is withheld by the State. 2.Seek legislative relief to allow County the option to immediately suspend or cancel contracts in the event subvention funding is withheld by the State. 3.Seek to enact legislation to encourage the protection of Williamson Act subvention funding from discretionary cuts due to State budget fluctuations. 4.Discontinue acceptance of new Agricultural Land Conservation Contracts and Farmland Security Zone Agreements and Initiate Non-Renewal of all ALCC and FSZ Agreements. 5.Limit acceptance of new ALCC Contracts to Prime Farmland only and/or increase acreage of non-Prime contracted lands. WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

20. Options to Consider 6.Limit acceptance of new ALCC Contracts to Prime Farmland only and no longer accept FSZ Agreements 7.Limit acceptance of new ALCC Contracts to cities’ spheres of influence. 8.Continue to accept new ALCC Contract and FSZ Agreements, but include additional restrictions on minimum parcel size, permitted uses, division of land and ability to cancel ALCC Contracts and/or FSZ Agreements. 9.Delay consideration of Fresno County Williamson Act Program changes until after recommendations of the Farmland Conservation Model Program currently being coordinated by COG are completed. WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

23. 140 parcels totaling 3,667 acres restricted under Williamson Act Contract in Fresno Sphere of Influence WILLIAMSON ACT AND AGRICULTURAL CONTRACTS

24. 41 parcels totaling 1,228 acres restricted under Williamson Act Contract in Clovis sphere of influence WILLIAMSON ACT AND AGRICULTURAL CONTRACTS