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F C) Ih7lieu Fees. The payment of an in-lieu fee is,subject to the following.provisioris: 1) The in Iieu fee shall include the casts of maria in .the ''ro Yert i g.. g P P y� ncludin�;.the . costs of admtmstering, monitoring and enforcing the farmland conservation casement or other i45trurrtent: 2) The fee shall be based on the.=ost.of.purchasing farmland conservation easements on land of comparable size an d agricultural quality; plus"the estimated cost ofaegal,-appraisal and othcrcosts;Including staff lime, to acquire and manage the`farrnland oonsemation easenrieiit or:other agricultural mitigati on'i nstrurnerit. 3) The Board of'Supervisors shall approve by resolution the amount and other terms of the in- lieu fee. 4) The.in-lieu fee shall be updated annually based on an ' that-takes into account the inflation of property values and should include'a standard assumption for the time it takes to acquire property,for agricultural mitigation. The inflator shall be calculated based on-a three year running average of the most recent available data from the House Price Index (HPI) for the Stockton Metropolitan Statistical Area, as compiled by the Office of Federal Housing Enterprise Oversight. Other cost components shall be updated annually based on the Consumer Price Index (CPI). 5) Within sixty(60) days after collection by the County, in- lieu fees shall be transferred to a fund administered by the Qualifying Entity. 6) The annual report described in Section 9-1080.9(b), shall describe the effectiveness of the use of in-lieu fees as provided for under this ordinance. During the fifth year, the Agricultural Technical Advisory Committee shall mendations to the Board of Supervisors include in the annual report recon regarding whether to maintain, amend, or remove the in-lieu fee requirement of the ordinance and to replace it with an in-kind only requirement. f) Final Approvals. Final approval of any project subject to Subsection (a) of this Section is contingent upon the execution of the legal instrument to provide agricultural mitigation land and payment of the administrative fee, or approval ' and payment of an in-lieu fee. Submission of the required legal instrument or payment of the in-lieu fee shall occur at the time of Grading Permit or Building ' Permit issuance. j g) Participation. Participation in the Agricultural Mitigation Program shall be considered during the environmental review for projects pursuant to the California Environmental Quality Act. Section 9-1080.4 Use of In-Lieu Fees. The in- lieu fees shall be administered by the Qualifying Entity in fulfillment of its programmatic responsibilities. These responsibilities cover, without exception, acquiring interests in land and administering, monitoring and enforcing the farmland conservation casement or other instrument designed to preserve the agricultural values of the land for farmland mitigation purposes. Page 4 of 10