Cotati City Council
Agenda Staff Report
Item type: CONSENT CALENDAR (ACTION)
To: City Council
Subject: Veronda Falletti Ranch Livestock Care Agreement Date: April 12, 2022
Written by: Damien O'Bid, City Manager
Recommendation
It is recommended that the City Council authorize, by motion, the City Manager to appropriate the necessary funds and extend the livestock care agreement with Farmster.
Background
The City purchased the 4.37-acre Veronda-Falletti Ranch (Ranch) in 2008 through the Open Space and Agricultural Preservation District’s (Open Space District) Matching Grant Program. As part of this program, the funding recipient (the City in this case) is required to provide a 50% match for the property purchase, which is memorialized in the matching grant agreement and agree to the recordation of a conservation easement on the property. Both of these documents have certain restrictions and requirements that the City must comply with. In addition, the Open Space District requires review and approval of certain activities through a City work plan and pre-approval of some types of infrastructure.
Early in 2020, the City became the owners of most of the livestock on the Ranch. Given the transition in ownership, the City entered into a livestock care agreement with Farmster to ensure continued care and feeding of the livestock. The livestock agreement term began on April 27, 2020. The agreement covered Farmster staff time for livestock care and feeding though August 31, 2020 under the belief that a new license agreement would be in place by that time to replace the livestock agreement. The amended license agreement was subsequently approved by the City Council on October 22, 2021 (executed on October 25, 2021), which supersedes the livestock agreement.
Analysis/Discussion
From the start of the City’s ownership of the livestock through the start of the amended license agreement with Farmster on October 25, 2021, the City directly paid for feed, veterinary care, and other direct out of pocket expenses for the livestock. However, due to the expiration of the livestock agreement, no Farmster staff time was reimbursed between after September 1, 2020 until October 25, 2021 (the effective date of the new license agreement).
Farmster has requested reimbursement for labor (staff time) from the period between these two agreements (September 1, 2020 – October 25, 2021), as well as a brokerage fee for eight animals that were sold by the City. In addition to extra funds (described further below), the City will need to extend the term of the original livestock agreement to October 25, 2021.
Financial Considerations
All expenses to support the Ranch programs, activities and infrastructure are eligible against the City’s required Open Space Grant match. For Fiscal Year 21-22, the City budgeted a total of $125,000 in expenditures. Most of the budgeted funds are expected to be used for supporting public programs and activities at the Ranch under both Farmsters’ and Ammamma Tatis’ (Sandy Loam) workplans. Other related work utilizing this budget was a new fire sprinkler system installation in the Ranch House to meet State educational licensing requirements, improvements to the front areas (facing West Sierra) of the Ranch and developing concept designs for the barns.
The original livestock agreement reimbursed Farmster labor costs at a rate of $2,386.28 per month.
Separately, the City sold some livestock with Farmster acting as the broker for the City, with a brokerage fee of $100/animal. Farmster has requested reimbursement for 13.5 months (Sept. 1, 2020 - Oct. 25, 2021) of services (total of $32,213.70) and the brokerage fee of $100 for eight animals (pigs) sold (total of $800). As mentioned earlier, all out of pocket expenses were previously reimbursed. Therefore, to reconcile all past services with Farmster, an appropriation of $33,013.70 from the General Fund is requested.
Environmental Issues
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guideline section 15378.