The purpose of this Chapter is to provide clear and consistent regulations to mitigate the loss of farmland due to development or conversion to non-agricultural uses in the unincorporated inland areas of the County of Monterey. The goal of these regulations is to promote the long-term protection, conservation, and enhancement of productive and potentially productive farmland. Further, the mitigation requirements are intended to ensure the commercial viability of Monterey County's agricultural industry, and support growth management policies that encourage growth in or near developed or developing areas and away from valuable farmland.

(Ord. No. 5414 , § 2, 3-12-2024)

For the purpose of this Chapter, certain terms used in this Chapter shall be as defined below. The definitions in Chapter 21.06 shall otherwise apply.

A.

"Agricultural Advisory Committee" means the Committee established to review and make recommendations relative to General Plan amendments or zone changes that may affect agricultural lands and County development projects on agricultural lands or projects that may support, enhance, or otherwise affect the agricultural industry. The Committee was established through Board of Supervisors Resolution No. 65-208 and subsequent amendments to the establishing Resolution.

B.

"Agricultural Order" means the Central Coast Regional Water Quality Control Board's Waste Discharge Requirements for discharges from irrigated lands, as may be amended. The Agricultural Order applies to landowners and operators of commercial irrigated land used for commercial crop production.

C.

"Agricultural Zone" means any land that has a zoning district designation of Farmland, Rural Grazing, Permanent Grazing pursuant to Chapter 21 of the Monterey County Code.

D.

"Alternative and Complementary Mitigation" means any mitigation method that is not an acquisition of a conservation easement, deed restriction, or in-lieu fees.

E.

"Appropriate Authority" means that person, official, or body designated to hear, grant, deny, modify, condition, revoke or otherwise act on permits required by Title 21 of the Monterey County Code.

F.

"Base Mitigation Ratio" is the mitigation ratio that would be required for a project, which may be reduced because of allowable reductions in this Chapter.

G.

"Farmland" means land that is classified as Prime Farmland, Farmland of Statewide Importance, Unique Farmland, or Farmland of Local Importance as determined by the Farmland Mapping and Monitoring Program of the California Department of Conservation.

H.

"Farmland Conservation Easement" means an easement encumbering Farmland for the purposes of restricting its use to agricultural operations, accessory uses, and other uses allowed consistent with the underlying zoning.

I.

"Farmland Deed Restriction" means the creation of a deed restriction or covenant for the purposes of restricting its use to agricultural operations, accessory uses, and other uses allowed consistent with the underlying zoning.

J.

"Farmland Mapping and Monitoring Program" or "FMMP" means the California Department of Conservation's non-regulatory program for classifying farmland quality.

K.

"Farmland Mitigation Plan" means the documentation required to be submitted for review and approval by the Appropriate Authority pursuant to Section 21.92.040.

L.

"Farmland of Local Importance" means land as so designated by the County of Monterey and mapped by the FMMP of the California Department of Conservation classified as Farmland of Local Importance.

M.

"Farmland of Statewide Importance" means land as identified and mapped by the FMMP of the California Department of Conservation classified as Farmland of Statewide Importance.

N.

"Good Faith Effort" means an applicant has provided documentation to establish it has: 1) has made a thorough effort to locate quality Mitigation Land that provides long-term protection and conservation of substantially equivalent farmland to the land being lost to development or conversion; and 2) has made a minimum of one bona fide offer for the Farmland Conservation Easement or Farmland Deed Restriction at the full appraised fair market value, but no seller has accepted the applicant's offer, if the applicant does not already own the proposed Mitigation Land.

O.

"Important Farmland" means lands as identified and mapped by the FMMP of the California Department of Conservation, classified as Prime Farmland, Farmland of Statewide Importance, Unique Farmland, and Farmland of Local Importance.

P.

"In-lieu Fees" means fees that the applicant pays to a Qualifying Conservation Entity.

Q.

"Mitigation Land" means land encumbered by a Farmland Conservation Easement or Farmland Deed Restriction for the purpose of mitigating development impacts and permanently protecting farmland from development.

R.

"Mitigation Ratios" means the replacement ratio on an acre-for-acre basis and is used to determine the required acreage to be protected using one of the mitigation requirements pursuant to Section 21.92.060.

S.

"Prime Farmland" means land as identified and mapped by the FMMP of the California Department of Conservation classified as Prime Farmland.

T.

"Qualifying Conservation Entity" means an entity eligible to hold a Farmland Conservation Easement, hold a Farmland Deed Restriction, or collect In-lieu Fees. The Appropriate Authority shall consider the following criteria when considering a Qualifying Conservation Entity for these purposes:

1.

Whether the entity is a non-profit 501(c)(3) corporation that is eligible to hold a conservation easement, hold a deed restriction, or collect in-lieu fees under California law, including but not limited to Civil Code section 815.3;

2.

If the entity has an office in the State of California and has direct knowledge and experience working in Monterey, Santa Cruz, San Benito, or San Luis Obispo County;

3.

Whether one of the entity's primary purposes is administering conservation easements or deed restrictions for the purpose of conserving and protecting land in agriculture;

4.

If the entity currently holds agricultural land for conservation purposes in the County of Monterey and the duration the entity has held agricultural land for conservation purposes;

5.

Demonstrate that they have an annual monitoring and reporting program; and

6.

That the Qualifying Conservation Entity can comply with Section 21.92.090.

U.

"Statewide, Unique, and Local Farmland" means land as identified and mapped by the FMMP of the California Department of Conservation, classified as Farmland of Statewide Importance, Unique Farmland, and Farmland of Local Importance.

V.

"Surface Water Follow-Up Work Plan" means the Follow-Up Surface Receiving Water Implementation monitoring and reporting work plan that meets the requirements of the Agricultural Order and Monitoring and Reporting Program.

W.

"Third-Party Group or Programs" means a Central Coast Regional Water Quality Control Board approved third-party program that can assist growers in achieving compliance with the Agricultural Order.

X.

"Unique Farmland" means land as identified and mapped by the FMMP of the California Department of Conservation classified as Unique Farmland.

Y.

"Water Supply" means evidence of a properly permitted onsite well, an easement to such a well, evidence of water from a source not located directly onsite, or surface water rights.

(Ord. No. 5414 , § 2, 3-12-2024)

A.

The provisions in Chapter 21.92 are applicable to projects in the unincorporated inland areas of the County of Monterey.

B.

Activities subject to this Chapter:

1.

Redesignation of land from an agricultural designation, pursuant to the 2010 County of Monterey General Plan (e.g., Farmland, Permanent Grazing, and Rural Grazing) to any designation other than an agricultural designation (e.g., Commercial, Industrial, Residential, or Public/Quasi-Public);

2.

Projects that require a Use Permit or Administrative Permit where Farmland in an Agricultural Zone is converted to non-agricultural; and

3.

Projects where Farmland in an Agricultural Zone is converted to non-agricultural use that require a variance where the maximum building site coverage is exceeded.

C.

Activities not subject to this Chapter:

1.

Subdivision of Farmland that preserves agricultural viability and is consistent with the minimum parcel size imposed by the Agricultural Zone;

2.

Use allowed not requiring an Administrative Permit or Use Permit consistent with the underlying zoning;

3.

Acreage used for inclusionary housing as defined in Chapter 18.40 of the Monterey County Code;

4.

Acreage used for affordable housing as defined in Section 21.06.005 of the Monterey County Code;

5.

A Community Area or Rural Center with a Plan that includes an agricultural mitigation program;

6.

Agricultural employee housing as defined in Section 21.06.014 of the Monterey County Code;

7.

Agricultural processing plant and agricultural support service as defined in Sections 21.06.020 and 21.06.030 of the Monterey County Code;

8.

Groundwater recharge or benefit projects supported by a recognized groundwater sustainability agency;

9.

Water quality improvement projects that address agricultural pollutants and provide multi-property or sub-watershed benefits that help irrigated agriculture growers comply with the discharge requirements of the Agricultural Order and supported by an approved Third-Party Group or Programs as recognized by the State of California Central Coast Regional Water Quality Board; and

10.

Uses identified in the 2010 County of Monterey General Plan Chapter 9.J Agricultural and Winery Corridor Plan as a use allowed or permitted, such as a restaurant, delicatessen, or inn.

(Ord. No. 5414 , § 2, 3-12-2024)

A.

The applicant shall submit a Farmland Mitigation Plan to the Appropriate Authority for projects subject to this Chapter when the applicant submits an application to the County. The Farmland Mitigation Plan shall contain all information and documentation in sufficient detail, as specified in this Section:

1.

Map and calculate the applicable project acreage of the following: Prime Farmland and Statewide, Unique, and Local Farmland; and

2.

The proposed type of mitigation that will be provided in order to mitigate for conversion of Farmland.

B.

Before consideration by the Appropriate Authority, the applicant shall submit an updated Farmland Mitigation Plan for the change in land use designation, Use Permit, Administrative Permit, or variance where the maximum building site coverage is exceeded. The Farmland Mitigation Plan shall contain all information and documentation in sufficient detail, as specified in this Section:

1.

The Qualifying Conservation Entity that will hold the Mitigation Land or administer the In-lieu Fees, if applicable;

2.

The acreage that would be preserved through mitigation, the amount of in-lieu fees that would be paid, or the proposed alternative and complementary mitigation;

3.

The location of the Mitigation Land, if applicable; and

4.

The proposed Farmland Conservation Easement or Farmland Deed Restriction, if applicable.

(Ord. No. 5414 , § 2, 3-12-2024)

A.

Mitigation Lands protected by a Farmland Conservation Easement, Farmland Deed Restriction, or by a Qualifying Conservation Entity purchased using In-Lieu Fees shall meet all of the following criteria.

1.

Be designated as Farmland and in an Agricultural Zone;

2.

Be acquired from willing sellers only;

3.

Be of adequate size, configuration, and location to be viable for continued agricultural operations and use;

4.

Be of substantially equivalent FMMP Important Farmland Category or better;

5.

Have a Water Supply available for continued agricultural operations and use;

6.

Be located within the County of Monterey; and

7.

Not be on land that has an existing easement or deed restriction that prevents converting the property to nonagricultural use. Unless the land is under a Williamson Act contract, per Government Code section 51200 et seq.

(Ord. No. 5414 , § 2, 3-12-2024)

A.

Mitigation shall be required for all activities subject to this Chapter pursuant to Section 21.92.030.

B.

The applicant cannot utilize Mitigation Land or the portion of Mitigation Land that was previously dedicated from a separate project or separate actions by a third party to satisfy their mitigation requirements.

C.

The Base Mitigation Ratio shall be determined by the Important Farmland classification as mapped by the FMMP of the California Department of Conservation at least five years before the date of application submittal.

D.

Base Mitigation Ratio for activities outside of Community Areas, Rural Centers, and Affordable Housing Overlays:

1.

Prime Farmland shall be mitigated for at a replacement ratio of 2:1. This means for every acre of Prime Farmland converted or developed two acres shall be protected.

2.

Statewide, Unique, and Local Farmland shall be mitigated for at a replacement ratio of 1.75:1. This means for every acre of Statewide, Unique, and Local Farmland converted or developed, one and three-fourths acres shall be protected.

E.

Base Mitigation Ratio for activities inside of Community Areas, Rural Centers, and Affordable Housing Overlays:

1.

Prime Farmland shall be mitigated for at a replacement ratio of 1.5:1. This means for every acre of Prime Farmland converted or developed, one and one-half acres shall be protected.

2.

Statewide, Unique, and Local Farmland shall be mitigated for at a replacement ratio of 1.25:1. This means for every acre of Statewide, Unique, and Local Farmland converted or developed, one and one-quarter acres shall be protected.

F.

Priority Projects. If the land being converted is for the development of dwelling units (pursuant to Section 21.06.370) and has a gross density (pursuant to Section 21.06.300) of twenty-five (25) dwelling units/acre gross or greater, the Base Mitigation Ratio shall be reduced by up to a maximum of .125.

G.

Priority Areas for Mitigation. Mitigation Lands within a priority area shall have the following adjustment factors applied, where relevant, to modify the Base Mitigation Ratio:

1.

If the Mitigation Land is under a Williamson Act contract, per Government Code section 51200 et seq., the Base Mitigation Ratio shall be increased by up to a maximum of .50.

2.

If the Mitigation Land is determined to be in a high potential groundwater recharge area identified by a recognized groundwater sustainability agency, the Base Mitigation Ratio shall be reduced by up to a maximum of .125.

3.

If the Mitigation Land is determined to include a water quality improvement project that addresses agricultural pollutants and provides multi-property or sub-watershed benefits that help meet the discharge requirements intended to comply with the Irrigated Lands Regulatory Program and supported by an approved Third-Party Group or Programs, as recognized by the State of California Central Coast Regional Water Quality Board, the Base Mitigation Ratio shall be reduced by up to a maximum of .125.

4.

If the Mitigation Land is located in Priority Areas for Mitigation or as identified by the Board of Supervisors, the Base Mitigation Ratio shall be reduced by up to a maximum of .125. Such Priority Areas for Mitigation include both of the following:

a.

Areas along the exterior boundary of Community Areas and Rural Centers as identified in the 2010 County of Monterey General Plan or as amended; and

b.

Areas along the exterior boundary of permanent growth boundaries or permanent agricultural edges, as identified in Board of Supervisor approved agreements between the County and cities.

(Ord. No. 5414 , § 2, 3-12-2024)

A.

Farmland Conservation Easements or Farmland Deed Restrictions. The following minimum requirements shall be incorporated into all Farmland Conservation Easements or Farmland Deed Restrictions to satisfy the requirements of this Chapter. This shall include the conveyance of land within an agricultural land mitigation bank that the Qualifying Conservation Entity manages.

1.

It shall be the applicant's sole responsibility to obtain the required Farmland Conservation Easement or Farmland Deed Restriction, and to ensure they are held by a Qualifying Conservation Entity, pursuant to Section 21.92.090.

2.

The proposed Mitigation Land for Farmland Conservation Easement or Farmland Deed Restriction shall be within the same General Plan Planning Area as the proposed project.

3.

The proposed Mitigation Land for Farmland Conservation Easement or Farmland Deed Restriction shall not move from a subbasin with no exceedances of its minimum thresholds in the applicable groundwater sustainability plan, to a different subbasin with exceedances of its minimum thresholds in its applicable groundwater sustainability plan as identified by the recognized groundwater sustainability agency.

4.

If after at least one Good Faith Effort the applicant cannot locate a Farmland Conservation Easement or Farmland Deed Restriction pursuant to the criteria in Subsections A.2 and A.3 of this Section, then the applicant shall be required to locate a Farmland Conservation Easement or Farmland Deed Restriction elsewhere in Monterey County.

5.

The Farmland Conservation Easement or Farmland Deed Restriction shall include, at a minimum, the following terms:

a.

It shall run with the land, be in perpetuity, and be recorded; unless the County, Qualifying Conservation Entity, and landowner collectively agree to move or transfer the Farmland Conservation Easement or Farmland Deed Restriction;

b.

It shall protect and retain the Water Supply on the Mitigation Land;

c.

It shall prohibit any activity that substantially impairs or diminishes the agricultural productivity of the land;

d.

It shall prohibit the sale, lease, or conveyance of any interest in the Mitigation Land except for fully compatible agricultural uses; and

e.

It shall name and authorize the Qualifying Conservation Entity to enforce all terms of the Farmland Conservation Easement or Farmland Deed Restriction.

6.

The applicant, if applicable, shall pay the one-time price to purchase the Farmland Conservation Easement or Farmland Deed Restriction and all associated transaction costs (including, but not limited to, escrow, recording, title policy, appraisal, the Qualifying Conservation Entity's administrative costs), plus a one-time payment sufficient to cover the costs of administering, monitoring, and enforcing the Farmland Conservation Easement or Farmland Deed Restriction.

7.

The applicant shall provide documentation to the Appropriate Authority that the Farmland Conservation Easement or Farmland Deed Restriction is consistent with this Chapter, and that the terms are acceptable to the Qualifying Conservation Entity.

B.

In-lieu Fees. The payment of an In-lieu Fee shall be subject to the following provisions:

1.

Applicants shall make two Good Faith Efforts before applicants are allowed to pay In-lieu Fees to the Qualifying Conservation Entity.

2.

The payment of an In-lieu Fee shall be subject to all the following provisions:

a.

The amount of the In-lieu Fee shall be determined by using the appraised fair market value of acquiring a conservation easement on the land being converted. The value of the conservation easement shall be determined by an independent real property appraiser with experience valuing conservation easements for the California Department of Conservation Sustainable Agricultural Lands Conservation Program (SALC) or a similar program.

b.

The appraisal of the fair market value of acquiring a conservation easement on the land being converted shall be completed within 90 days from consideration by the Appropriate Authority. The appraisal shall be considered by the Agricultural Advisory Committee, and the Agricultural Advisory Committee may recommend that the applicant obtain a second appraisal and return to the Agricultural Advisory Committee for consideration of the second appraisal.

c.

In addition to the one-time In-lieu Fee for mitigation, the applicant shall pay to the Qualifying Conservation Entity an amount sufficient to cover the costs of managing a Farmland Conservation Easement or Farmland Deed Restriction, including the cost to administer, monitor, and enforce a Farmland Conservation Easement or Farmland Deed Restriction, and the payment of the estimated transaction costs associated with acquiring a Farmland Conservation Easement or Farmland Deed Restriction.

d.

The In-lieu Fees shall be paid to the Qualifying Conservation Entity, and the applicant shall provide evidence of the payment of the In-lieu Fees to the Appropriate Authority.

e.

Agricultural Advisory Committee shall consider and make a recommendation to the Appropriate Authority regarding any proposed In-lieu Fees.

3.

The applicant shall provide documentation to the Appropriate Authority that the In-lieu Fee is consistent with this Chapter, and that the terms are acceptable to the Qualifying Conservation Entity.

C.

Alternative and Complementary Mitigation. The applicant may propose Alternative and Complementary Mitigation at any stage of the mitigation process.

1.

All of the following projects contain the means for achieving Alternative and Complementary Mitigation measures:

a.

Projects that implement a groundwater sustainability plan to comply with the Sustainable Groundwater Management Act;

b.

Projects for water quality improvement that help implement an approved Surface Water Follow-Up Work Plan intended to help irrigated agriculture growers in the County of Monterey comply with the discharge requirements of the Agricultural Order and supported by an approved Third-Party Group or Programs as recognized by the State of California Central Coast Regional Water Quality Board;

c.

Projects that are part of a recognized regional plan (such as an Integrated Regional Water Management Plan or a Storm Water Resource Plan) that conserve or improve water quantity and/or quality for the benefit of agriculture in the County of Monterey; and

d.

Projects that fulfill the purpose of this Chapter, as specified in Section 21.92.010, and demonstrate they will protect, preserve, or benefit Farmland and the agricultural industry in the County.

2.

The total dollar value of the Alternative and Complementary Mitigation project must be equal to or valued more than the appraised fair market value of acquiring a conservation easement on the land being converted. The applicant shall provide documentation substantiating the total dollar value of the Alternative and Complementary Mitigation project. The fair market value of the conservation easement shall be determined by an independent real property appraiser with experience valuing conservation easements for the California Department of Conservation Sustainable Agricultural Lands Conservation Program (SALC) or a similar program.

3.

The appraisal of the fair market value of acquiring a conservation easement on the land being converted shall be completed within 90 days from consideration by the Appropriate Authority. The appraisal shall be considered by the Agricultural Advisory Committee, and the Agricultural Advisory Committee may recommend that the applicant obtain a second appraisal and return to the Agricultural Advisory Committee for consideration of the second appraisal.

4.

To qualify as Alternative and Complementary Mitigation, the proposed alternative shall satisfy all of the following criteria:

a.

The proposed Alternative and Complementary Mitigation may be up to but shall not exceed five percent of the total acreage or total value of the required mitigation, as applicable. Any Alternative and Complementary Mitigation exceeding five percent of the total acreage or total value of the required mitigation shall provide documentation to the Agricultural Advisory Committee and Appropriate Authority detailing how the proposed Alternative and Complementary Mitigation is as protective as a Farmland Conservation Easement of a similar acreage or value.

b.

The proposed Alternative and Complimentary Mitigation shall promote the long-term protection, conservation, and enhancement of productive or potentially productive Farmland in the County.

c.

The applicant shall bear all the costs of the County or a third party reviewing, approving, managing, and enforcing the mitigation.

5.

Agricultural Advisory Committee shall consider and make a recommendation to the Appropriate Authority regarding any proposed Alternative and Complementary Mitigation.

(Ord. No. 5414 , § 2, 3-12-2024)

A.

The timing of mitigation for all applicable projects shall meet the requirements of this Section.

B.

Projects that change the land use designation of agriculturally designated land to non-agriculturally designated land shall be conditioned to provide the mitigation within twenty-four (24) months of the approval of the zone change or prior to commencement of use, whichever occurs first. The change in land use designation shall not become operative unless the applicant submits evidence to the County of Monterey that the mitigation has been completed. If the applicant does not submit evidence that the mitigation has been completed within twenty-four (24) months of the approval of the zoning change, the change in land use designation will revert to the prior land use designation.

C.

Projects that require a Use Permit or Administrative Permit or a variance where the maximum building site coverage is exceeded shall provide the Farmland Conservation Easement, Farmland Deed Restriction, payment of In-lieu Fees, or Alternative and Complementary Mitigation prior to or concurrent with the recordation of a parcel or final map or prior to issuance of the first construction permit, whichever occurs first.

D.

If a project is required to mitigate pursuant to the criteria in Subsection B and C of this Section, the applicant will be required to comply with whichever timing requirements occur first.

(Ord. No. 5414 , § 2, 3-12-2024)

A.

The Appropriate Authority shall determine whether an entity qualifies as a Qualifying Conservation Entity.

B.

The Appropriate Authority shall require that a Qualifying Conservation Entity that receives a Farmland Conservation Easement, Farmland Deed Restriction, or In-lieu Fees for mitigation purposes under this Chapter conform to all of the following requirements.

1.

Use of In-lieu Fees. The Qualifying Conservation Entity shall administer In-lieu Fees. These responsibilities cover, without exception, ensuring that In-lieu Fees are held in a separate account adequate to cover the cost of acquiring a Farmland Conservation Easement, Farmland Deed Restriction, and administering, monitoring, and enforcing their long-term use for agricultural mitigation purposes.

2.

Enforcement and Monitoring. The Qualifying Conservation Entity shall monitor all Farmland Conservation Easements, Farmland Deed Restrictions, or In-lieu Fees for mitigation purposes acquired in accordance with these regulations and shall review and monitor the implementation of all management and maintenance plans for these lands and easement areas. It shall enforce compliance with the terms of the Farmland Conservation Easement and Farmland Deed Restriction.

3.

Reporting. The Qualifying Conservation Entity shall, on or before January 31, each year, make available upon request of the Appropriate Authority an annual report describing the activities undertaken by the entity within the past calendar year under Chapter 21.92. The report(s) shall provide the Appropriate Authority an accounting of the use of In-lieu Fees remitted to it and the status of all new and existing Farmland Conservation Easements or Farmland Deed Restrictions maintained by the Qualifying Conservation Entity in the County of Monterey.

4.

Termination. If a Qualifying Conservation Entity intends or reasonably expects to cease operations, it shall assign any Farmland Conservation Easements, Farmland Deed Restrictions, or In-lieu Fees resulting from this Chapter to another Qualifying Conservation Entity as acceptable and approved by the County of Monterey.

(Ord. No. 5414 , § 2, 3-12-2024)