Agenda Item Wording:
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Approve Agreements for the 2024-2025 Land Fallowing Program - Authorize the City Manager to sign the Greater Kaweah Groundwater Sustainability Agency (GKGSA) 2024-2025 Pilot Fallowing Program contracts for a combined 138.91 field acres in the total amount of $69,455 to be paid to the City of Visalia.
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Deadline for Action: 11/18/2024
Submitting Department: Public Works
Contact Name and Phone Number: Nick Bartsch 559-713-4428
Department Recommendation:
Staff recommends that the Council authorize the City Manager to sign the Greater Kaweah Groundwater Sustainability Agency (GKGSA) 2024-2025 Pilot Fallowing Program contracts for a combined 138.91 field acres, related to APNs: 073-110-036, 073-110-049, 073-110-051, 073-110-068, and 103-100-052, in the total amount of $69,455 to be paid to the City of Visalia.
Background Discussion:
Based on the health and condition of the walnut orchards, historical and projected crop production, and associated uncertainties related to groundwater sustainability regulations, the City Council directed City staff to stop farming its 130 acres of Walnuts, just north of the Water Reclamation Facility (WRF), in December 2023. This direction also included the removal of the walnut orchard and the exploration of long-term lease options that would be compatible with the Wastewater Treatment Plant operations.
The GKGSA has established a Land Fallowing Pilot Program in order to immediately reduce groundwater extraction within the GKGSA’s jurisdictional boundaries, reduce impacts to domestic and irrigation wells, and effectuate the objectives of GKGSA’s Groundwater Sustainability Plan and the Sustainable Groundwater Management Act (“SGMA”). Under this program, the land shall remain fallowed from October 1, 2024 through September 30, 2025. Any farm within GKGSA’s boundaries with four or more acres was eligible to bid. Growers had to be in good standing with the GKGSA and compliant with all other rules, regulations, statues, and laws. The Program’s process consisted of a determination of need on the part of the GKGSA, the submission of bids, scoring and awarding of bids.
With Council’s direction to cease the farming of its walnuts, and while City Staff continues to explore the most beneficial use of this land, they submitted a proposal to the GKGSA to fallow the land currently occupied by its walnut orchards (APNs 073-110-036, 073-110-049, 073-110-051, 073-110-068), as well as a City-owned parcel just southwest of Oakes Basin (APN 103-100-052) under its 2024-2025 Fallowing Program.
The GKGSA received, and independently and anonymously evaluated, bids from twenty-five applicants. Bids ranged from $150 - $1,680 per acre. Because the process was conducted as a uniform price auction, the GKGSA determined to award a uniform price to all bidders that submitted a bid per acre under the aggregate dollar amount approved. This resulted in a price of $500 per field acre that is fallowed. The City’s proposed amount for its 138.91 field acres qualified under this criteria.
Fiscal Impact:
The farmland surrounding the Water Reclamation Facility (WRF) (APNs: 073-110-036, 073-110-049, 073-110-051, 073-110-068) is owned by the Wastewater Fund (431), and operated under the Farming Division (4344). Therefore, the revenue of $60,435 generated under this fallowing contract would be credited to the Wastewater Fund (431). This could be utilized to offset the one-time expense of the removal and disposal of the walnut orchards. The land southwest of the Oakes Basin (APN: 103-100-052) is owned by the General Fund (001) and Storm Sewer Defficiency (222), so the associated revenue of $9,020 related to the fallowing of this parcel would be credited proportionally to the General Fund and Storm Sewer Defficiency funds at a rate of 86% and 14%, respectively.
In total, the fallowing of land in accordance with the proposed agreements under the GKGSA 2024-2025 Pilot Fallowing Program would generate $69,455 of revenue to the City of Visalia.
Prior Council Action: - December 18, 2023 - City Council was presented an update to the city-owned farmland and farming operations and provided direction to cease farming operations of the 130 acres of walnuts.
Alternatives: Do not participate in the proposed GKGSA 2024-2025 Land Fallowing Program.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to authorize the City Manager to sign the Greater Kaweah Groundwater Sustainability Agency 2024-2025 Pilot Fallowing Program contracts for a combined 138.91 field acres in the total amount of $69,455 to be paid to the City of Visalia.
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CEQA Review: N/A
Attachments: Attachment #1 - GKGSA 2024-2025 Pilot Fallowing Program Contract - APNs: 073-110-036, 073-110-049, 073-110-051, 073-110-068
Attachment #2 - GKGSA 2024-2025 Pilot Fallowing Program Contract - APN: 103-100-052
Attachment #3 - Maps of Proposed Land to be Fallowed under the GKGSA 2024-2025 Fallowing Program