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BACKGROUND In May, 2006, the City Council adopted the Bernal Property Phase II Specific Plan, which allows for temporary agricultural use of undeveloped portions of the property. As outlined in the Plan, agricultural acreage will gradually be reduced and be replaced by a variety of uses, including a 50 acre community park, open space, native woodlands, and meadows. Bill Rose, who previously farmed the entire Bernal Property under a lease with the San Francisco Water Department, expressed an interest in continuing to farm a portion of the central parcel once the City assumed ownership of the land. In September 2002, prior to approval of the Phase II Specific Plan, the City Council approved a five (5) year lease Agreement with Mr. Rose to continue farming 90 acres of the central parcel. Farming continued until 2006, when in anticipation of Phase I construction for Bernal Community Park, the City began stock-piling soil in the southern portion of the site. Stockpiling operations, coupled with the construction of Bernal Creek, effectively removed 30 acres from the farming operation. With this significant acreage removal, Mr. Rose indicated that he was no longer interested in continuing his farming activities. DISCUSSION Construction of Bernal Community Park, Phase 1 (lighted baseball fields) is expected to commence in mid-January, 2008. Construction activities will occur on approximately 20 acres of the central parcel, located south of the existing tree line. That area will be fenced, and not affect the remaining acreage of the central parcel. Tom Greene, a local farmer who had previously assisted Bill Rose when he farmed the central parcel, has expressed an interest in farming the remaining area located to the north of the central parcel tree line. The term of the proposed Farming Lease is for one (1) year, from January 16, 2008 to January 16, 2009, and would be automatically renewed unless terminated by either party prior to December 1 of each year. In future years, as subsequent improvements occur on the site, the lease would be terminated without cost to the City. Mr. Greene anticipates planting oat hay in late January to early February each year, and harvesting in May or June. The proposed lease requires Mr. Greene to use modern farming practices, limit the use of herbicides, minimize dust generation, remove and dispose of rocks on the property, control rodents, limit the growth of weeds, and otherwise keep the property in good condition. Farming activities would be limited to 8:00 am to 6:00 pm, Monday through Friday, and 9:00 am to 6:00 pm, Saturday and Sunday. Extended hours or days for planting or harvesting due to weather may be approved by the Parks Maintenance Superintendent. As noted in the Bernal Property Phase II Specific Plan, farming the central parcel is consistent with historic practices. Dry farming also provides a low cost maintenance Page 2 of 3