HomeMy WebLinkAbout1997-03-25; City Council; 14108; Flower Fields Fundingm -
CITY OF CARLSBAD - AGEhA BILL
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MTG. 3 -2s -93 FLOWER FIELDS FUNDING
DEPT. PLN & ClTYMGRXp
! RECOMMENDED ACTION: (Sp-207)
That the City Council ADOPT Resolution No. ??- Yl7 requesting $935,000 available at the
State and direct staff to establish a special revenue fund to hold the money and distribute grants for
the purpose of assisting production on the Carlsbad Ranch Flower Fields.
ITEM EXPLANATION:
As the Council will recall the Carlsbad Ranch Specific Plan contained the requirement to preserve
the Flower Fields on the project site “in perpetuity” as a condition of development. The Council
subsequently supported the formation of an independent non-profit entity “dedicated to ensuring the
long term production of the flower fields” (Resolution 96-231, June 25, 1996). A memo from the
Community Development Director dated February 20, 1997 (Exhibit 2) provides more detailed
background on this topic.
’ On July 15, 1996 the State of California made a budget allocation of $935,000 for floriculture
preservation on Carlsbad Ranch (available until June 30, 1997). The State Budget notes that this
money is available for Carlsbad Ranch specifically. Until recently, staff had understood that the
Coastal Conservancy could only transfer this money to some form of independent, non-profit entity.
Staff have been working on establishing such an entity in order to assist with efforts to preserve the
flower fields.
The City Attorney has now determined that the City is not required to establish an independent non-
profit organization in order to transfer the funds. This potentially relieves the City of the cost and the
associated tasks of hiring a consultant and setting up the non-profit entity. The City can now merely
request the State money and place it in a fund in its capacity as a non-profit organization.
The following three alternatives now exist;
1. Set up a special revenue fund to receive and distribute the State funds, for floriculture on
Carlsbad Ranch. Each grant request would be verified by an ad-hoc committee. Interest from
the funds would provide the source for grants and also finance the administration of the fund.
Staff is recommending this course of action.
2. If the Council still wishes to have an independent non-profit entity (“foundation”) rather than a
City administered account, staff could be directed to continue with the establishment of the non-
profit. (Note. This option can be accomplished after Option 1.)
3. The Coastal Conservancy could be requested to hold and administer the funds.
Staff is recommending that a special revenue fund be set up now to receive the funds before the
expiration of the June 30, 1997 deadline. Discussions are continuing with the Coastal Conservancy
regarding disposition of the funds at State level. Additionally the best method of holding and
dispersing the grants is still under review. It is therefore also recommended that staff return to
Council with a proposal for long term holding of funds and distribution of grants after the $935,000
has been secured.
Regardless of the course of action selected, because the level of funding currently available is
limited, at this point only assistance in flower field production can be provided. However the non-
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PAGE 2 OFAGENDA e3lLL NO. l‘i, /a%
profit entity, or special revenue fund could be established with the ability to receive donations grants
and gifts thereby further assisting in the goal of ensuring long term flower production in the future.
FISCAL IMPACT:
Because staff are currently just advising the Council to obtain the money from the Coastal
Conservancy there will be no fiscal impact with this present action. The $935,000 would be placed
in a special revenue fund and the City Council would determine how to administer these funds at a
later date.
EXHIBITS
1.
2.
City Council Resolution No. 9 3 - 4 I3
Memorandum from the Community Development Director to the City Manager dated
February 20, 1997.
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CITY COUNCIL RESOLUTION NO. 9 7 - 4 17
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, INSTRUCTING STAFF TO
REQUEST THE FUNDS ALLOCATED BY THE 1996
CALIFORNIA BUDGET FOR FLORICULTURE
PRESERVATION AT CARLSBAD RANCH AND DEPOSIT
SAID FUNDS IN A SPECIAL REVENUE ACCOUNT.
WHEREAS, on June 25, 1996 the City Council of the City of Carlsbad approved
a resolution supporting the formation of an entity “dedicated to ensuring the long term
production of the flower fields”; and
WHEREAS, the State of California has made a budget allocation of $935,000 for
floriculture preservation at Carlsbad Ranch and;
WHEREAS, the acquisition of such budget allocation by the City of Carlsbad for
future distribution,for floriculture on Carlsbad Ranch is consistent with the intent of the Council
Resolution of June 25, 1996 and;
WHEREAS, the State of California Coastal Conservancy has informed the City
that this budget appropriation is available to the City of Carlsbad on request;
NOW, THEREFORE, BE IT HEREBY RESOLVED by the City Council of the
City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That staff immediately request that the California Coastal Conservancy provide the
$935,000 allocated for floriculture preservation at Carlsbad Ranch.
3. That the funds, when received from the Conservancy, be deposited into a City Special
Revenue Fund.
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4. That interest earned from said funds be used to provide assistance for projects and
activities that will ensure the long term production of open field floriculture at
Carlsbad Ranch and to reimburse Carlsbad’s costs for administering said funds.
PASSED, APPROVED AND ADOPTED at a regular meeting of the
Carlsbad City Council held on the 25th day of March 1997, by the
following vote, to wit:
AYES: Council Members Lewis, Finnila and Hall
NOES: None
ABSENT: Council Members Nygaard and Kulchin
ABSTAIN : None
ALETHA L. RAUTENKRANZ, City Clerk
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FEBRUARY 20,1997
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EXfifBlT 2
TO: CITY MANAGER
FROM: Community Development Director
CARLSBAD FLOWER FIELDS “FOUNDATION”
This memo is to update you on recent developments in the progress of the Carlsbad Flower Fields
“Foundation” and provide a more detailed history of the budget allocation and how money has been
held at the State.
Prior Council Action
On June 25, 1996 the Council passed a resolution supporting the formation of a non-profit entity
(such as a Foundation) “dedicated to ensuring the long term production of the flower fields”. At that
time the Council also embraced the concept of recycling Williamson cancellation fees to the
“Foundation” and supported Assembly Bill 2683 (Kaloogian) which was supposed to provide the
mechanism to utilize a State budget allocation to fund the “Foundation” out of the Coastal
Conservancy’s Carlsbad Agriculture Conversion Mitigation fee program. In July 1996 the Governor
approved a Budget Bill which allocated $935,000 from an Agricultural Conversion Mitigation Fund
for local assistance to floriculture at Carlsbad Ranch.
Coastal Conservancy Account Merging
State law and the City of Carlsbad Local Coastal Program (LCP) established two Agriculture
Conversion Mitigation funds for the City of Carlsbad:
A. The Statutory Fund (established by Section 30171.5 of the Coastal Act)
B. The Local Coastal Program Conversion fund.
These funds are created from Agricultural Mitigation Fees paid by developers to “convert” their
designated Coastal Zone property from agricultural use to a developed site. The two funds are created
from developer payments in two geographically separate areas of the City (developers with land
outside the Mello LCP area pay into the “Statutory” fund and developers with land inside the Mello
LCP area pay into the “Local Coastal Program” fund). The Coastal Conservancy was supposed to
create and hold this money in two separate funds but, they have not done so and the funds are
currently held in a single account. The Coastal Conservancy is awaiting a request from the City of
Carlsbad to establish two separate accounts with the LCP account controlled by the City of Carlsbad.
Budget Bills and the Kaloo&ur Bills
Initially a draft Budget Bill was drawn up for $1.5 million from the State General Fund to be
available without encumbrance, or fiscal year limitation, for local assistance to floriculture. This Bill
was proposed by Carltas as an attempt to “reclaim” a portion of the Williamson cancellation fees
which Carltas was required to pay (different from funds “A” and “B” above). The final Budget Bill
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CARLSBAD FLOWER rfELDS FOUNDATION
FEBRUARY 20,1997
signed by the Governor in July 1996, was, however, very different from the draft in the following
respects:
l it appropriated $935,000 instead of $1.5 million;
l it did not recycle the Williamson fees;
l it appropriated the money from The Statutory Account (fund “A” above). This is not the account
to which Carlsbad Ranch will contribute Agricultural Conversion Mitigation Fees. Carlsbad
Ranch lies in a different geographic area and it will pay into The Local Coastal Program fund
(fund “B” above). Additionally, fifty percent of the money in this Statutory account is required to
fund Batiquitos Lagoon projects.
If the $935,000 is not encumbered by the Flower Fields by June 30, 1997 this special appropriation
will expire. The sum of $935,000 would not completely disappear from the Statutory Account,
however, and it would remain to fund other projects according to the established legal priorities and
Carlsbad Ranch would have to compete for funding.
The Budget appropriation was accompanied by AI3 2683 (Kaloogian) which was intended to direct
that the $935,000 be drawn from the same, separate, State Agriculture Mitigation account that
Carlsbad Ranch was to pay into. This Bill, however, contained errors in drafting. Some attempts
were made to correct the legislation and the Kaloogian Bill was not “chaptered” i.e. not effectuated.
New legislation was drawn up (AB 2659) and approved, but it was still in error. The only effective
changes made were to eliminate the mandate that the money go to a “foundation” and that the final
priority of spending of the funds would also include open field floriculture. If the purpose of the
legislation was to earmark and recycle the Agricultural Mitigation fees paid by Carltas to support the
Flower Fields then the money was still allocated from the incorrect account.
Staff Efforts to Resolve the Above Problems
In the past staff have discussed alternative solutions with the Coastal Conservancy to resolve the
above problems, ranging from separating the accounts to resolving which account the money should
be drawn from. Concurrently, staff have been working on establishing a non-profit entity in
anticipation of receiving the funds (which are available only until June 30 1997).
The City Attorney has recently advised staff that due to the change in the Kaloogian Bill it is no
longer necessary to establish a non-profit entity (“Foundation”) to receive the $935,000. The City
can merely request this money and set up an account to receive and distribute it to Carlsbad Ranch
(provided each request is verified to be used for floriculture). Because the State Budget Bill
specifically earmarks the funds for Carlsbad Ranch it is not mandated to set up an independent body
(i.e. the “Foundation”) which would determine how to distribute the funds between competing
applicants. This now potentially relieves the City of the cost of hiring a consultant to set up the non-
profit entity and the associated tasks.
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CARLSBAD FLOWER r IELDS FOUNDATION
FEBRUARY 20,1997
Other Claimants for the grants
A related issue is the question of equity of distribution of the grant money. Priorities are established
in the law governing the Agriculture Mitigation accounts which require that money be provided to
other bodies (e.g. the Batiquitos Lagoon Foundation and the Buena Vista Lagoon Foundation) before
the Carlsbad Ranch Flower Fields. If the city were to request the $935,000 and administer the grant
fund for Carlsbad Ranch with the knowledge that this action could deplete the account in the short
term, this could cause controversy among other claimants for the account. This controversy could
also be exacerbated by the confusion over the State accounts and Kaloogian Bill. This could be
unavoidable however if the City is to pursue this money decisively in the time available. It’s staffs
interpretation that because the Budget Bill specifically allocates this money to the Carlsbad Ranch
Flower Fields any other claims on the funds are superseded. The exact wording of the State Budget
Bill is as follows; “For local assistance, State Coastal conservancy, payable from the Carlsbad
Mitigation Fee Account in the State Coastal Conservancy Fund . . . . . . .Floriculture-Preservation,
Carlsbad Ranch - $935,000.” California Budget Act 1996.
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CAFUSBAD FLOWER FIELDS FOUNDATION
Following are draft amendments to the Assembly Budget bill; the same amendments would
be made in the Senate vehicle.
Amendment 1 to AB 2049, as introduced:
On page 129, after line 19, add the following:
3760-803-5652 For local assistance, State Coastal
Conservancy, payable from the
State Coastal Conservancy Fund of 1976 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,395,ooo
, Schedule:
(a) Amount payable from General Fund
(Item 3760-301-0000). . . . . . . . . . . . . . . . . . . . . . . .-1,500,OOO
Provisions:
(1) The funds appropriated by this item are available for encumbrance
for local assistance without regard to fiscal year.
(2) The funds appropriated by this item shall be used for purposes of
open field cultivated floriculture, consistent with paragraph (4) of
subsection (b) of Section 30171.5 of the Public Resources Code.
3760-301-0000 For local assistance, State
Coastal Conservancy, for payment to
Item 3760-803-5652, payable from the
General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500,000
DRAFT AMENDMENTS
. AB 2683 nialoogIan).oduced
(Suggested Amendments to Bill as Introduced in Italics)
SECTION 1. Section 30 17 1.5 of the Public Resources Code is amended to read:
30171.5. (a) The amount of the mitigation fee for development on nonprime
agricultural lands in the coastal zone in the City of Carlsbad that lie outside of the areas
described in subdivision (f) of Section 30171 and subdivision (b) of Section 30171 shall
be determined in the applicable segment of the local coastal program of the City of
Carlsbad, but shall not be less than five thousand dollars ($5,000), nor more than ten
thousand dollars ($lO,OOO), per acre. All mitigation fees collected under this section shall
be deposited in the State Coastal Conservancy Fund.
(b) All mitigation fees collected pursuant to this section are hereby appropriated
to, and shall be expended by the State Coastal Conservancy for the following purposes in
the following order of priority:
(1) Restoration of natural resources and wildlife habitat in Batiquitos Lagoon.
(2) Development of an interpretive center at Buena Vista Lagoon.
(3) Provision of access to public beaches in the City of Carlsbad.
(4) Any other project or activity benefiting or enhancing the use of natural
resources or open field cultivated floriculture in the coastal zone in the City of Carlsbad
that is provided for in the local coastal program of the City of Carlsbad.
(c) Not less than 50 percent of collected and bonded mitigation fees shall be
expended for the purpose specified in paragraph (1) of subdivision (b), except that all
mitigation fees collectedfor the Car&bad Ranch project, as specified in City of Carlsbad
Ci& Council Resolution 96-1, shall be expended for a Carlsbad Flower Fields
Foundation program of field cultivated floriculture, as specified in paragraph (4) of
subdivision (b).
(d) Other than to mitigate the agricultural conversion impacts for which they are
collected, none of he mitigation fees collected pursuant to this section shall be used for
elements of a project which cause that project to be in compliance with this division or to
mitigate a project which would otherwise be inconsistent with this division. When
reviewing a potential project for consistency with this subdivision, the State Coastal
Conservancy shall consult with the commission.
temp/carlmch/lgdrftl .doc
3f 13196
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PACE 2
Display 1995-1996 Bill Text - INFORFlATION
BILL NUMBIM: AB 2659 BILL TEXT
THE PEOPLE OF TEE STATE OF CALIFORNIA DO ENACT AS FbLLOWS:
SECTION 1. the Legislature hereby finds and declares all of the -- --- -- --- followiny:
(a) It ie the intent of the Leqislature in enacting this ------- -- msagure to enhance and preserve natural resources within the City
of Cnrlubiid. --..- L --
- .(b, ~'9 9pen field cultivation of floriculture in the coastal - -* zone within the City of Carlabad is an activity that contributes --- - -. . . to the conservation and p rotection of natural resources in the -- "..-*.- - - - __.._
zone.
(c) The City of Carlebad City Council Resolutions 96-231, 96-232, -- --.,..%..“a and 96-233 are consistent with effort8 to preeerve natural resources - - - -...-."-..I.- - - within the aity. - e .,.. SEC. 2. Section 30171.5 of the Public Resources Code is unrended to _,.- - LoAd :
30171.5. (a) The amount of the mitigation fee kor development on nonprime
agricultural lands in the coastal zone in the City of Carlsbad that lie
outeride of the areas described in subciiviaion (f) of Section 30170 and
subdivision (b) of Section 30171 shall be determined in the applicable segment
of the local coalstal program of the City of Carlsbad, but shall not be less
than five thousand dollars ($5,000), nor more than ten thousand dollar8 . ($lO,OOo), per acre. All mitigation fees collected under this section shall
be deposited in the State Coastal Conservancy Fund.
(b) All mitigation fees collected pureuant to this section are hereby
appropriated to, and shall be expended by, the State Coaetal Coneervancy in
the following order of priority: (1) Restoration of natural re8ources and wildlife habitat in Batiquitos
Lagoon.
(21 Development of an interpretive center at Bucna Vista Lagoon.
(3) Provision of access to public beaches in the City of Carlsbad.
(4) Any other project or activity benefiting or enhancing the use of - - ..- - natural resources, including ~~cn field cultivated floriculture, in ohs - -_. coastal zone in the City of Carlsbad that is provided for in the local coastal
program of the City ot Carlsbad.
(c) The State Coastal Conservancy may establish a special account in the
State Coastal Conservancy Fund and deposit mitigation fees collected pursuant
to this section in the special account, Any intereet accruing on ttkt. money in the special account shall be expended pursuant to 8ubdivision (b),
(d) Not less than 50 Percent of collected and bonded mitigation fees shall
1~ expended for the Purpose specified in paragraph (1) of subdivision (L),
(e) Othar than to mitigate the agriculLura1 conversion impacts for which
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To: MSTRO From: Reuben Martinez Subject: PHONE CALL 4 CC Date: 3/25/97 Time: 1:23PM
Marilyn,
THE
CPQ
CL
A Dr. Nora LaCorta called re: an item on tonight's agenda (Flower Field Funding). She wanted to convey to the Mayor and Council Members four points. They are as follows: 1. She supports the funding 100% 2. Would like to see the City retain control of the money
3. Would like to see the fields open a bit later than the current time of 5:30 P.M. or at
least till dusk, so that those people who work
normal hours can enjoy the fields as well.
4. Would like to see fee paid to developer
and not by the developer.
Those were the four points Dr. LaCorta would like
conveyed to the CC prior to tonight's meeting. If
there are any questions for her, her number is 431-
1007.
Reuben