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HomeMy WebLinkAboutFederal Farm & Ranch Lands Protection Program FY 2007~® RESOLUTION 2008-728 ~~+.~°~ ADOPTED DOC ID: 4111 THIS IS TO CERTIFY THAT THE FOLLOWING RESOLUTION NO. 2008-728 WAS ADOPTED AT THE REGULAR MEETING OF THE SOUTHOLD TOWN BOARD ON JULY 29, 2008: RESOLVED that the Town Board of the Town of Southold hereby authorizes and directs Supervisor Scott A. Russell to execute Revision Number 1 to Cooperative Agreement No. 73-2C31-7-00956 between the USDA-Natural Resources Conservation Service (MRCS) and the Town of Southold in connection with an existing Cooperative Agreement between the United States of America Commodity Credit Corporation and the Town of Southold, dated June 26, 2007. The execution of this revision will include Attachment C to this Agreement and provide an additional $1,220,000.00 in financial support available to the Town of Southold for the implementation of the Federal Farm and Ranch Lands Protection Program FY 2007, subject to the approval of the Town Attorney. ~~~ Elizabeth A. Neville Southold Town Clerk RESULT: ADOPTED ~UNANIMOUS~ MOVER: Albert Krupski Jc, Councilman SECONDER: Thomas H. Wickham, Councilman AYES: Orlando, Krupski Jr., Wickham, Evans, Russell ABSENT: William Ruland Ya1tN1 SfatN GpArlanAM Of AoACUNun o MRCS Natural Resources Conservation Service 441 S. Salina Street 5'" Floor, Suite 354 Syracuse, NY 13202-2450 Phone: (315)477-6518 August 8, 2008 Town of Southold Department of Land Preservation Attn: Melissa Spiro, Land Preservation Coordinator P.O. Box 1179 Southold, NY 11971-0959 Re: Revision Number i to Cooperative Agreement # 73-2C31-7-00956 Dear Ms. Spiro: Enclosed is a fully executed copy of Revision Number 1 to Cooperative Agreement # 73-2C31-7-00956 between the Natural Resources Conservation Service and the Town of Southold for your files. If you have any questions, or if I can be of further assistance, please let me know. Sincerely, .. '/~~ ~~ '' Kimberl A. Stinson ~, Mana ment and Program Analyst Cc: Michael Fournier, FRPP Manager, NRCS, Syracuse, NY Maria A. Maniscalco, Budget Officer, NRCS, Syracuse, NY q,,~ ~^~~ D FIUJ ~ ~ a,UU DEPT. OF LAND Helping People Help the Land M EQUaI Opportunity Provitler antl Employer -~ TEMPLATE 2008 - 7/08/2008 -FINAL Agreement No. 73-2C31-7-00956 (Same as FY2007 Agreement No. with the same Cooperating Entity) REVISION NUMBER 1 TO COOPERATIVE AGREEMENT BETWEEN THE UNITED STATES OF AMERICA COMMODITY CREDIT CORPORATION WORKING THROUGH THE NATURAL RESOURCES CONSERVATION SERVICE and the [Town of Southold] for the FARM AND RANCH LANDS PROTECTION PROGRAM This Cooperative Agreement, made the e~~day of (/UN~ ;,~flp'~a,~d revised this ~h day of, flG>'hUS~, 2008 is entered into by and between the United States of America (the United States), acting by and through the Commodity Credit Corporation (CCC), and the Town of Southold for the implementation of the Farm and Ranch Lands Protection Program (FRPP). The CCC shall utilize the expertise and services of the United States Department of Agriculture, Natural Resources Conservation Service (MRCS) to administer this program and perform the duties set forth within this Cooperative Agreement. For purposes of this Cooperative Agreement, the term "Parties" refers collectively to the United States and the Town of Southold By executing the revision, the parties agree that the new document supplants the original agreement and represents the understanding of the parties. 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). In addition to these authorities, this Cooperative Agreement will be administered in accordance with the policies and procedures set forth in the FRPP regulation, 7 CFR part 1491. The CCC administers the FRPP under the general supervision of the Chief of the NRCS who is a Vice President of the CCC. TEMPLATE 2008 - 7/08/2008 -FINAL II. BACKGROUND AND PURPOSE. Enacted on May 13, 2002, Section 2503 of the Farm Security and Rural Investment Act of 2002 authorized the Secretary of Agriculture to purchase conservation easements 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. The Farm Security and Rural Investment Act of 2002 authorized funding for fiscal years 2002 through 2007. On Mazch 14, 2007, CCC published an Announcement of Program Funding on www.grants.gov requesting proposals for participation from Tribes, States, units of local government, and non-governmental organizations. See Catalog of Federal Assistance Number 10.913. WHEREAS, the Town of Southold and the United States have mutual interests in preventing the conversion of agricultural lands to non-agricultural uses; and WHEREAS, the United States administers the FRPP; and WHEREAS, the Towu of Southold administers a farmland protection program and has pending offers for acquiring agricultural conservation easements from landowners within the Town of Southold, and the United States and the Town of Southold 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 United States shall obligate the sum of $ 0 for the acquisition of the United States' interests in conservation easements for the parcels listed on Attachment A and related ALTA U.S. title insurance policies (09/28/91) on behalf of the United States government. The Town of Southold must request payment of this amount in accordance with Part VI of this Cooperative Agreement before June 30, 2009. (NOTE: THE DATE "June 30, 2009" SHOULD BE REPLACED WITH "September 30, 2012" IF THE ENTITY EXERCISES THE INSTALLMENT PAYMENT OPTION). Upon execution of this agreement, the United States shall obligate the sum of $ 0 for the acquisition of the United States' interests in conservation easements for the parcels listed on Attachment B and related ALTA U.S. title insurance policies (09/28/91) on behalf of the United States government. The Town of Southold must request payment of this amount in accordance with Part VI of this Cooperative Agreement before June 30, 2010. (NOTE: THE DATE "June 30, 2010" SHOULD BE REPLACED WITH "September 30, 2013" IF THE ENTITY EXERCISES THE INSTALLMENT PAYMENT OPTION). Upon execution of this agreement, the United States shall obligate the sum of 2 TEMPLATE 2008 - 7/08/2008 -FINAL $ 1,220,000 for the acquisition of the United States' interests in conservation easements for the pazcels listed on Attachment C and related ALTA U.S. title insurance policies (09/28/91) on behalf of the United States government. The Town of Southold must request payment of this amount in accordance with Part VI of this Cooperative Agreement before June 30, 2010. (NOTE: THE DATE "June 30, 2010" SHOULD BE REPLACED WITH "September 30, 2013" IF THE ENTITY EXERCISES THE INSTALLMENT PAYMENT OPTION). If easements on all the pazcels listed on Attachment A or the replacements for those parcels are not closed by Mazch 31, 2009, any remaining funds will be released from this obligation unless the agreement is extended for specific easements, as provided for in pazagraph IX(C). If easements on all the parcels listed on Attachment B or the replacements for those parcels are not closed by March 31, 2010, any remaining funds will be released from this obligation unless the agreement is extended for specific easements, as provided for in paragraph IX(C). If easements on all the parcels listed on Attachment C or the replacements for those parcels aze not closed by March 31, 2010, any remaining funds will be released from this obligation unless the agreement is extended for specific easements, as provided for in paragraph IX(C). This Cooperative Agreement is the authorizing document that obligates CCC funds to acquire conservation easements. The United States' contribution for the acquisition of each conservation easement acquired by the Town of Southold shall be up to but not more than 50% of the appraised market value of the conservation easement in accordance with NRCS polices and procedures. The United States' contribution cannot be used for closing and related administrative costs incurred by the Town of Southold in acquiring the conservation easement. Attachments A, B, and C to this Cooperative Agreement specify the properties on which CCC funds will be used within the Town of Southold 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; (4) FRPP's matching share; (5) the estimated conservation easement value, and (6) the estimated cost of the ALTA U.S. title insurance policy (09/28/91). However, nothing in this document obligates the United States or the Town of Southold to purchase all or any of the conservation easements 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 Attachments A, B, and C will be made by mutual agreement between the Parties to this Cooperative Agreement. Additions to Attachments A, B, and C must have written pending offers and the parcels and the landowners must meet eligibility requirements. The pending offers may be from any year, 2008 or a previous or successive yeaz. The additions and deletions must be made by a formal amendment to this cooperative agreement and must contain the same deadlines for closing easements, requesting reimbursement, and certifying payments. TEMPLATE 2008 - 7/08/2008 -FINAL IV. FEDERAL CONTRIBUTION The Federal contribution for pazcels on Attachment A and B must be based on an appraisal of the conservation easement performed by a certified general appraiser in accordance with the Uniform Standards of Professional Appraisal Practices (USPAP) and the Uniform Appraisal Standazds for Federal Land Acquisitions (UASFLA) (Interagency Land Acquisition Conference, 2000) and policies and procedures in the NRCS Conservation Programs Manual, Part 519 The Federal contribution for pazcels on Attachment C may be based on an appraisal of the conservation easement performed by a certified general appraiser in accordance with the Uniform Standards of Professional Appraisal Practices (USPAP) OR the Uniform Appraisal Standazds for Federal Land Acquisitions (UASFLA) (Interagency Land Acquisition Conference, 2000) and policies and procedures in the NRCS Conservation Programs Manual, Part 519. The appraisal must have an effective date that is within twelve months of the closing date. For appraisals on Attachment A and B,the appraiser must have completed training in using the Uniform Appraisal Standazds for Federal Land Acquisitions (UASFLA) as well as either eminent domain or conservation easements and have experience in appraising agricultural property with and without conservation easements. For appraisals on Attachment C, the appraiser must have completed training in either eminent domain or conservation easements and have experience in appraising agricultural property with and without conservation easements. The cooperating entities must submit four copies of each appraisal to NRCS no less than 90 days before for proposed closing date for administrative and technical review. Easements will not be closed until administrative and technical reviews aze completed on each appraisal and any deficiencies aze resolved. V. ENTITY'S CONTRIBUTION The Town of Southold or designated escrow agent must disburse 100 percent of the payment, representing the easement purchase price, to the landowner at the time of closing, unless it is paying for the easement in installments in accordance with V.B. herein. The entity must contribute in cash at least 50 percent of the appraised fair mazket value or purchase price of the easement. A landowner donation up to 25 percent of the appraised mazket value of the conservation easement may be considered as part of the entity's contribution. When the landowner's donation is 25 percent or less, the entity cash contribution is the difference between 50 percent of the appraised fair mazket value of the conservation easement and the landowner's donation. When the landowner donates between 25 and 50 percent of the appraised fair market value of the conservation easement, the entity cash contribution is a minimum of 25 percent of the appraised fair market value. When the landowner donates over 50 percent of the easement value, the remaining payment of the purchase price (appraised fair market value minus the landowner donation) is split equally between the entity and FRPP. Prior to NRCS accepting the conservation easement and issuing a payment, the Town of Southold shall self-certify on the NRCS CPA-230, Confirmation of Matching Funds, that the Town of Southold's share of matching funds has not come from additional donations, payments, loans or fees made by or chazged to the easement grantor, immediate family members, or 4 TEMPLATE 2008 - 7/08/2008 -FINAL organizations controlled by or funded by the easement grantor, either through formal or informal agreements. For parcels on Attachments A and B, the entity must have an appraisal of the conservation easement performed by a certified general appraiser in accordance with the Uniform Standards of Professional Appraisal Practices (USPAP) and the Uniform Appraisal Standards for Federal Land Acquisitions (UASFLA) (Interagency Land Acquisition Conference, 2000) and policies and procedures in the NRCS Conservation Programs Manual, Part 519. The appraisal must have an effective date that is within twelve months of the closing date. For pazcels on Attachment C, the entity must have an appraisal of the conservation easement performed by a certified general appraiser in accordance with the Uniform Standards of Professional Appraisal Practices (USPAP) OR the Uniform Appraisal Standazds for Federal Land Acquisitions (UASFLA) (Interagency Land Acquisition Conference, 2000) and policies and procedures in the NRCS Conservation Programs Manual, Part 519. The appraisal must have an effective date that is within twelve months of the closing date. For parcels on Attachments A and B, the appraiser must have completed training in using the Uniform Appraisal Standazds for Federal Land Acquisitions (UASFLA) as well as either eminent domain or conservation easements and have experience in appraising agricultural property with and without conservation easements. For parcels on Attachment C that are being appraised under the Uniform Appraisal Standazds for Federal Land Acquisitions (UASFLA), the appraiser must have completed training in using the Uniform Appraisal Standazds for Federal Land Acquisitions (UASFLA) as well as either eminent domain or conservation easements and have experience in appraising agricultural property with and without conservation easements. For parcels on Attachment C that aze being appraised under the Uniform Standards for Professional Appraisal Practice (USPAP), the appraiser must have completed training in either eminent domain or conservation easements and have experience in appraising agricultural property with and without conservation easements. The entity must make all contributions, use appraisers, and order appraisals in accordance with the policies and procedures in the NRCS Conservation Programs Manual, Part 519. VI. PAYMENTS A. The Town of Southold shall notify the United States when the CCC funds are to be paid. CCC funds shall be paid to the Town of Southold when the United States is provided a copy of the recorded easement and the Town of Southold has paid the landowner(s). Where a Town of Southold cannot obtain 100 percent of the funds to be paid at closing to the landowner(s) and requires the United States to make its payment at closing rather than on a reimbursable basis, the Town of Southold may request a waiver for the United States to pay its share of the conservation easement purchase at closing. In any instance where a waiver is requested, the Town of Southold shall notify the United States at least 60 days prior to closing. Where a waiver is requested, the United States 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 calendaz days. Upon receipt of the funds, the closing agent will sign a payment receipt form and return it to the United States. If interest is 5 TEMPLATE 2008 - 7/08/2008 -FINAL earned upon CCC funds, the Closing Agent must return any interest earned to the United States. All conservation easement deeds used by the Town of Southold shall be approved by NRCS and the Office of General Counsel (OGC) prior to purchase of the conservation easement. All conservation easement deeds must be submitted to NRCS 90 days before the intended closing date. In order to obtain payment of FRPP funds, the Town of Southold will submit Form SF- 270 (Request for Advance/Reimbursement of Funds), and the information specified below to the New York NRCS State Office. Prior to submitting the SF-270, the Town of Southold must also request a copy of closing agent requirements from the United States and ensure that the closing agent meets these requirements. The Town of Southold may submit the Form SF-270 prior to closing when a payment is issued at closing, 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(s) have been paid. At a minimum, the following information shall be included in, or attached to, the SF-270, prior to NRCS accepting the conservation easement and disbursing payment: (1) the name of the Town of Southold ; (2) this cooperative agreement number; (3) conservation easement numbers (if applicable); (4) landowner name; (5) landowner's tax identification number (TIN) or social security number; (6) total amount of dollars paid the landowner for each conservation easement, specifying the CCC share and the non-CCC shaze of the conservation easement cost; (7) term of conservation easement; (8) acres acquired for each easement; (9) Tax Identification Number (TIN) for Town of Southold; (10) Federal Information Processing Standards (FIPS) number for Town of Southold; (11) bank routing number and account number for desired deposit location; (12) copy of the recorded conservation easement deed(s) for each easement with language that has been approved by the OGC; (13) NRCS CPA-230, Confirmation of Matching Funds for each easement; and (14) the amount paid for the ALTA U.S. title insurance policy (09/28/91) for each easement and (15) a copy of the ALTA U.S. title insurance policy (09/28/91) for each easement. B. Upon request by a landowner, the Town of Southold may issue up to five annual installment payments to the landowner. Such an arrangement may occur only after the easement has been conveyed in its entirety and approval is obtained by the NRCS National Office and the Office of General Counsel. Cooperating entities wishing to issue payments in installments for FRPP acquisitions must issue a portion of the payment at closing and provide a copy of the recorded deed to the United States and an appropriate legal instrument detailing the payment schedule prior to CCC issuing installment payments. Once the easement has been recorded, the Town of Southold may request a payment from CCC on a reimbursable basis afrer a sum equal to the proportional amount due from the Town of Southold and the NRCS has been paid to the landowner. (For example, where the entity is contributing 25% of the appraised mazket value and FRPP is contributing 50% of the appraised mazket value, spread out in even payments over three years, the payment amounts for the entity would be 8.3%, 8.3%, 8.4% and the NRCS payments would be 16.6%, 16.7%, 16.7%. At the time of the first payment, the Town of Southold can request reimbursement of 16.6% from NRCS, afrer paying the landowner 24.9% of the appraised market value.) The Town of Southold must issue all installment payments, 6 TEMPLATE 2008 - 7/08/2008 -FINAL including disbursement of all CCC funds and those of the [Tribe/State/County/Local Government/Non-governmental Organization] prior to September 30, 2012 for pazcels listed on Attachment A. The Towu of Southold must issue all installment payments, including disbursement of all CCC funds and those of the [Tribe/State/County/Local Government/Non- governmental Organization] prior to September 30, 2013 for parcels listed on Attachment B and C. VII. CONSERVATION EASEMENT REQUIREMENTS. The Towu of Southold shall ensure that conservation easements acquired under this agreement: 1. run with the land in perpetuity or the maximum allowable under State law, where State law prohibits a permanent easement. 2. protect topsoil by limiting nonagricultural uses of the land; 3. provide for the administration, management, and enforcement of the easement by the Town of Southold; 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. The following paragraphs shall be included in all conservation easements acquired using FRPP funds: As required by section 1238I of the Food Security Act of 1985, as amended, the Grantor, his hens, successors, or assigns, shall conduct all agricultural operations on the Protected Property in a manner consistent with a conservation plan prepared in consultation with NRCS and approved by the Conservation District. This conservation plan shall be developed using the standards and specifications of the NRCS Field Office Technical Guide and 7 CFR part 12 that are in effect on (INSERT EASEMENT SIGNATURE DATE). However, the Grantor may develop and implement a conservation plan [hat proposes a higher level of conservation and is consistent with the NRCS Field Office Technical Guide standards and specifications. NRCS shall have the right to enter upon the Property, with advance notice to the Grantor, in order to monitor compliance with the conservation plan. In the event of noncompliance with the conservation plan, NRCS shall work with the Grantor to explore methods of compliance and give the Grantor a reasonable amount of time, not to exceed twelve months, to take corrective action. If the Grantor does not comply with the conservation plan, NRCS will inform Grantee of the Grantor's noncompliance. The Grantee shall take all reasonable steps (including efforts at secwing voluntary compliance and, if necessary, appropriate legal action) to secwe compliance with the conservation plan following written notification from NRCS that (a) there is a substantial, ongoing event or circumstance ofnon-compliance with the conservation plan, (b) NRCS has worked with the Grantor to correct such noncompliance, and (c) Grantor has exhausted its appeal rights under applicable NRCS regulations. If the NRCS standards and specifications for highly erodible land are revised after the date of this Grant based on an Act of Congress, NRCS will work cooperatively with the Grantor to develop and implement a revised conservation plan. The provisions of this section apply to the highly erodible land conservation requtrements of the Farm and Ranch Lands Protection Program and aze not intended to affect any other natwal resowces conservation requirements to which the Grantor may be or become subject. TEMPLATE 2008 - 7/08/2008 -FINAL where parcels are being enrolled in FRPP based on historical and azchaeological resources include, at minimum, a pazagraph identifying standazds 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. The Towu of Southold will ensure that title restriction to protect any historical and azchaeological structure(s) is appended to the deed and included in any succeeding transfers; and 6. include the following "Rights of the United States of America" provision: "Under this Conservation Easement, the same rights are granted to the United States that are granted to the Town of Southold. However, the Secretary of the United States Department of Agriculture (the Secretary), on behalf of the United States, will only exercise these rights under the following circumstances: In the event that the Town of Southold fails to enforce any of the terms of this Conservation Easement, as determined in the sole discretion of the Secretary, the Secretary and his or her successors or assigns may exercise the United States' rights to enforce the terms of this Conservation Easement through any and all authorities available under Federal or State law. In the event that the Town of Southold attempts to terminate, transfer or otherwise divest itself of any rights, title, or interests in this Conservation Easement without the prior consent of the Secretary and, if applicable, payment of consideration to the United States, then, at the option of the Secretary, all right, title, and interest in this Conservation Easement shall become vested solely in the United States of America." 7. include provisions regarding the amount of impervious surfaces permitted on the Property, in accordance with the NRCS Conservation Programs Manual, Part 519. 8. include signature of a responsible NRCS official on the Conservation deed, accepting the United States' property interest in the deed. 9. identify the United States as a grantee in the deed along with the Town of Southold. 10. Include other terms that may be required by OGC or FRPP policy, such as a general indemnification clause and hazardous materials warranty. VIII. 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 field visits on lands that are enrolled in the FRPP and associated lands owned or managed by the TEMPLATE 2008 - 7/08/2008 -FINAL 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 the Town of Southold in accordance with Part III and VI of this Cooperative Agreement. 3. Prior to NRCS accepting the conservation easement and processing the payment, NRCS shall: ensure that a conservation plan for highly erodible lands is developed in accordance with 7 CFR part 12 and that an AD-1026, Highly Erodible Land and Wetland Certification form has been filed at the appropriate USDA Service Center; ensure that aCCC-526, Adjusted Gross Income Certification has been filed at the appropriate USDA Service Center; obtain approval of the conservation easement deed or conservation easement deed template from the Office of General Counsel; and acquire: a signed letter from the closing agent indicating that the agent meets FRPP closing agent requirements, an executed NRCS CPA-230, Confirmation of Matching Funds, and a copy of the title commitment. In addition, NRCS shall obtain an American Land Title Association (ALTA) U.S. Policy (09/28/91) through the Town of Southold insuring the United States' interest in the easement based on the amount paid for the conservation easement by the United States. The title insurance will have a liability amount not less than a sum that is 50 percent of the first $100,000 and 25 percent of that portion of the amount of the value in excess of that amount. NRCS will reimburse the cooperating entity for the title insurance premium. 4. NRCS shall conduct administrative and technical reviews of appraisals in accordance with NRCS Conservation Programs Manual, Part 519. 5. NRCS shall certify payment for all conservation easements for parcels listed on Attachment A acquired by September 30, 2009, including the first payment made for conservation easements with installment payments. NRCS shall certify payment for all conservation easements for pazcels listed on Attachment B and C acquired by September 30, 2010, including the first payment made for conservation easements with installment payments. B. Those of Town of Southold - 1. The Town of Southold shall perform necessary legal and administrative actions to ensure proper acquisition and recordation of valid easements. 2. The Towu of Southold shall use funds provided for under this agreement for the acquisition of conservation easements and related title insurance policies for the United States for NRCS approved properties. CCC funds shall pay for not more than 50% of the appraised fair mazket value of the conservation easement acquired and for the cost of the premium for the United States' title insurance policy. 3. The Town of Southold shall pay all costs of conservation easement procurement and will operate and manage each conservation easement in accordance with the Town of Southold program, this Cooperative Agreement, and 7 CFR part 1491. The United States shall have no responsibility for the costs or management of the conservation easements purchased by the Town TEMPLATE 2008 - 7/08/2008 -FINAL of Southold unless it exercises its rights under a conservation easement. The Town of Southold shall indemnify, and hold the United States harmless for any costs, damages, claims, liabilities, and judgments arising from past, present, and future acts or omissions of the Towu of Southold in connection with its acquisition and management of the conservation easements acquired pursuant to this Cooperative Agreement. This indemnification and hold harmless provision includes but is not limited to acts and omissions of the Town of Southold 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 violations of any laws and regulations which are now or which may in the future become applicable. 4. Non-governmental organizations shall continue to meet the requirements specified in Title II, 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. The Town of Southold shall incorporate into each deed in which CCC funds aze used as part of the acquisition the required clauses set forth in Part VII of this Cooperative Agreement. 6. Prior to payment certification, the Town of Southold shall ensure that all lands for which a conservation easement has been acquired will have a conservation plan, as described in Part VII of this Cooperative Agreement. 7. The Town of Southold shall prohibit all non-agricultural uses of the encumbered properties, except for recreational uses, such as hiking, hunting, fishing, boating, horseback riding to the extent those activities do not conflict with the purpose of Section 2503 of the Farm Security and Rural Investment Act of 2002 (Pub. L. 107 - 171). 8. At a minimum, the Town of Southold shall monitor FRPP parcels on an annual basis to ensure that the conservation easements are being implemented according to the deed provisions. An annual report of the status of acquired conservation easements and conservation easements pending acquisition will be submitted to the NRCS representative at the State level. The NRCS representative will define the format of this report. 9. In acquiring conservation easements, the Town of Southold shall ensure that the title to the lands or interests therein shall be unencumbered or, if encumbered by outstanding or reserved interests, the Town of Southold shall ensure that any outstanding interests are subordinated to the conservation easement or that any exceptions from this subordination 10 TEMPLATE 2008 - 7/08/2008 -FINAL requirement aze approved by the NRCS and are consistent with the purposes of the Farm and Ranch Lands Protection Program. The Town of Southold shall provide to NRCS a copy of the title commitment or title report 90 days before the intended closing date and any other requested documentation related to title so that OGC may issue a title opinion for the United States prior to closing. The Town of Southold shall assure that proper title evidence is secured. When purchasing title insurance, the Town of Southold agrees to purchase an American Land Title Association (ALTA) U.S. policy (09/28/91) from the same title insurance company on behalf of the United States to ensure the federal interest. Under this Cooperative Agreement, NRCS will reimburse the cooperating entity for the title insurance premium for the United States policy. 10. The Town of Southold shall have an appraisal conducted on the Property prior to NRCS accepting an interest in the easement. The appraisal shall be conducted by a certified general appraiser and shall conform to the Uniform Standards of Professional Appraisals Practices and the Uniform Appraisal Standazds for Federal Land Acquisitions (Interagency Land Acquisition Conference, 2000). 11. The Town of Southold shall not use FRPP funds to place an easement on a property in which the Town of Southold employee or board member, with decision-making involvement in matters related to easement and acquisition and management, has a property interest. The Town of Southold shall not use FRPP funds to place an easement on a property in which a person who is an immediate family member or household member of an employee or boazd member, with decision-making involvement in matters related to easement acquisition and management, has a property interest. Further, the Town of Southold agrees to generally conduct itself in a manner so as to protect the integrity of conservation easement deeds which it holds as well as avoid the appearance of impropriety or actual conflicts of interests in its acquisition and management of conservation easements. 12. The Town of Southold agrees that it will not at any time, when the Town of Southold is named as a Grantee on the conservation deed, seek to acquire the remaining fee interest in the Property. Likewise, if the Town of Southold enters into an agreement with another entity to manage/monitor the conservation easement, and the entity seeks to acquire the underlying fee, the Town of Southold agrees to immediately terminate such a relationship and arrange for an uninterested party to manage/monitor the conservation easement. 13. When a conservation plan violation is reported to the cooperating entity by NRCS, after all administrative and appeal rights have been exhausted by the landowner in accordance with 7 CFR part 12 and 7 CFR part 614, the Town of Southold shall implement easement enforcement procedures. 14. Pazagraphs 3, 4, 8, 9, 12, 13, and 14 of this Section shall survive the termination or expiration of this agreement. IX. GENERAL PROVISIONS. 11 TEMPLATE 2008 - 7/08/2008 -FINAL A. The term of this agreement for parcels listed on Attachment A shall be from the date of the last signature affixed hereto through September 30, 2009. (NOTE: THE DATE "September 30, 2009" SHOULD BE REPLACED WITH "September 30, 2012" IF THE ENTITY EXERCISES THE INSTALLMENT PAYMENT OPTION). The term of this agreement for parcels listed on Attachment B and C shall be from the date of the last signature affixed hereto through September 30, 2010. (NOTE: THE DATE "September 30, 2010" SHOULD BE REPLACED WITH "September 30, 2013" IF THE ENTITY EXERCISES THE INSTALLMENT PAYMENT OPTION). If easements on all the pazcels listed on Attachment A or the replacements for those pazcels are not closed by Mazch 31, 2009, any remaining funds will be released from this obligation unless the agreement is extended for specific easements, as provided for in paragraph D{(C). If easements on all the parcels listed on Attachment B and C or the approved substitutions for those pazcels are not closed by March 3l, 2010, any remaining funds will be released from this obligation unless the agreement is extended for specific easements, as provided for in paragraph IX(C). 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 the Town of Southold . Nothing herein shall preclude the United States or the Town of Southold from entering into other mutually acceptable arrangements or agreements, except as identified in Part VIII of this cooperative agreement. Such documents shall be in writing, reference this agreement, and shall be maintained as part of the official agreement file. C. This Cooperative Agreement may be amended or modified by written amendment signed by the authorized officials of the United States and the Town of Southold .The agreement may only be extended with the permission of the Deputy Chief for Programs of the Natutal Resources Conservation Service and only if extenuating circumstances occur with the individual easements for which an extension is requested. D. The United States may terminate this agreement if the United States determines that the Town of Southold has failed to comply with the provisions of this agreement or if it determines that it is in the best interests of the United States to terminate. 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. Although this Cooperative Agreement does not constitute financial assistance and, therefore, does not fall under the Uniform Federal Assistance Regulations at 7 CFR parts 3015, 3016 and 3019, for the purposes of administering this Agreement, the procedures set forth at 7 CFR parts 3015, 3016 and 3019 as well as OMB Circulaz A-122 shall apply, as determined appropriate by NRCS. 12 TEMPLATE 2008 - 7/08/2008 -FINAL F. It is the intent of NRCS to fulfill its obligations under this Agreement. However, NRCS cannot make commitments in excess of funds authorized by law or made administratively available. If NRCS cannot fulfill its obligations under this Agreement because of insufficient funds, this agreement will automatically terminate. G. Employees of the Town of Southold shall not be considered to be Federal employees or agents of the United States for any purpose under this agreement. H. The Town of Southold shall give CCC, the United States, 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. I. The Town of Southold agrees to comply with all applicable Federal, State, and local laws. X. PRINCIPAL CONTACTS. The United States representative for this Cooperative Agreement is: State Conservationist Natural Resources Conservation Service on behalf of the Commodity Credit Corporation City, State Zip Code Phone Number 13 TEMPLATE 2008 - 7/08/2008 -FINAL The Town of Southold representative for this Cooperative Agreement is: Supervisor Town of Southold 116 Hampton Road Southampton, New York 11968 Phone IN WITNESS WHEREOF, the following authorized representatives of the United States and the Town of Southold have executed this Cooperative Agreement. THE Town of By: Supervisor Town of Southold UNITED STATES OF AMERICA 14 COMMODITY CREDIT CORPORATION TEMPLATE 2008 - 7/08/2008 -FINAL Attachment A List of Pending Conservation Easement Offers on Which the Obligation of FY 2007 Funds is Based Priority Landowner's Parcel Acres Estimated Federal Title Name and Identification Conservation Share Insurance Address Easement Premium Value 15 TEMPLATE 2008 - 7/08/2008 -FINAL Attachment B List of Pending Conservation Easement Offers on Which the Obligation of FY 2008 Funds before May 23, 2008 is Based Priority Landowner's Parcel Acres Estimated Federal Title Name and Identification Conservation Share Insurance Address Easement Premium Value 16 . ~- _ TEMPLATE 2008 - 7/08/2008 -FINAL Attachment C List of Pending Conservation Easement Offers on Which the Obligation of FY 2008 Funds After May 23, 2008 is Based Priority Landowner's Name and Address Parcel Identification Acres Estimated Conservation Easement Value Federal Share Title Insurance Premium High ZIP Peconic Wells, LLC 30 Acres $2,490,000 $1,220,000 $3,500 17