HomeMy WebLinkAbout1997-06-03; City Council; 14184; A REQUEST FOR THE COASTAL CONSERVANCY TO SEPARATE CARLSBAD AG-MITIGATION FUNDS INTO TWO ACCOUNTSI
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CITY MGR TWO ACCOUNTS DEPT. PLN
CITY ATTY. A REQUEST FOR THE COASTAL CONSERVANCY TO MTG. 6/3/97
TITLE: X), ‘ DEPT. HD.
SEPARATE CARLSBAD AG-MITIGATION FUNDS INTO
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RECOMMENDED ACTION:
That Council ADOPT Resolution No. 9 7- qh ’2 directing staff to request
California Coastal Conservancy separate the Carlsbad originated Agriculture Conversion
Fees into two distinct accounts and to enter into negotiations to establish an agreeme Conservancy to administer the two accounts.
ITEM EXPLANATION:
In 1984, the California Legislature amended the Public Resources Code (Section 3(
establish a fee and a “statutory” account to be administered by the California Coastal Cor
The purpose of the fee was to provide mitigation for the urban conversion of designated i
properties located in Carlsbad but lying outside of the City’s Mello I and !I LCP segmt
legislation also stipulated that the Conservancy expend the fees to benefit coastal reso
coastal access in Carlsbad and it established the order of priority for such expenditures (S
~ A).
In 1985, Carlsbad amended its Mello I and II LCP segments to establish mitigation optic
urban conversion of designated agricultural properties located within the Mello I ar
segments. One of the options was a payment of a fee. This fee option was structured sin
one established by the Public Resources Code in that the fee was to range between $
for similar purposes and in similar priority. The Mello I and II LCP fee option is differer
Public Resources Code ”Statutory” fee in several significant ways:
$10,000, be deposited in a State Coastal Conservancy fund and be expended by the Co
1. The City Council establishes the amount of the LCP fee.
2. The LCP fee expenditure priorities include assistance to agriculture ar
include activities benefiting natural resources except at Batiquitos Lagoon.
3. The LCP fee was not established by the legislature and its value and adn
including expenditure priorities could be modified only through a City spon!
amendment. (See Exhibit B.)
It has come to Carlsbad’s attention that the Conservancy co-mingled the two fees into or
which they have been administering since 1984. The Conservancy has agreed that this w
error and it has requested that the City either formally ask for the establishment o
accounts and enter into an agreement on the administration of the LCP account or th;
amend its Mello I and I1 LCP segments to provide for an alternate administration of the fee.
Staff is recommending that the City first request the separation of the accounts an
temporary freeze on any expenditure from the Mello LCP account while negotiatic
administration are in process. If an acceptable agreement on the administration of the LC
can be reached, the moratorium on expenditures would be ended. However, if a E
agreement cannot be negotiated, Carlsbad would request the continued expenditure r
while the City goes through the procedure to establish an alternative administration of th
mitigation funds.
PAGE 2 OF AGENDA B ILL NO. 19; 18 Y e
Staff would recommend that the criteria for an acceptable agreement would include the foll
1. The City, with recommendations from the Conservancy, would have final a
2. Funds in the separate LCP account would earn interest.
3. The fee charged by the Conservancy to administer grants paid out 01
account would be equal to or less than the costs the City would bear if
administer the grants. (Current Conservancy estimate of the grant adminis
is approximately 6% of the grant.)
4. The grant administration fees should be paid from the interest that the accol
In summary: 1) the City and the Coastal Conservancy have agreed that Agricultural C
Mitigation Fees held by the Conservancy should be split into two separate accounts (i.e.
and LCP accounts); 2) the Conservancy requests that the City formally ask for the separa
accounts and enter negotiations regarding the administration of the LCP account; I
recommending that if a satisfactory agreement can be reached, that the Conservancy adrr
LCP account; 4) Staff is recommending that the criteria noted above plus any other Counc
Council request that the Conservancy place a moratorium on the expenditure of funds fror
account until a satisfactory agreement on the account's administration can be reached.
ENVIRONMENTAL REVIEW:
The action on this item is not subject to environmental review per Section 15061(b)(3) of
Guidelines because there is no possibility that the manner in which the accounts are hell
agency administers the funds may have a significant impact on the environment.
FISCAL IMPACT:
If Council concurs with staffs recommendation and the negotiations result in the Co
administering the LCP account, the Conservancy would be reimbursed for administrative
of the interest earned by the LCP account. There would be additional City costs relat,
review and report preparation and presentation. It is anticipated that for these City cost:
approximately $ 500 to $ 750 per grant application. It is possible that the City costs COL
reimbursed from the LCP account.
EXHIBITS:
1. City Council Resolution No. 9 9 - ~6 ?
2. Expenditure Priorities of the Statutory Account
all grant applications.
serve as the basis of determining a satisfactory agreement; and 5) Staff is recomme
3. Expenditure Priorities of the LCP Account.
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RESOLUTION NO. 97-467
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, DIRECTING STAFF TO
REQUEST THAT THE CALIFORNIA COASTAL
CONSERVANCY SEPARATE THE CARLSBAD ORIGINATED
AGRICULTURAL CONVERSION MITIGATION FEES INTO
TWO SEPARATE ACCOUNTS AND ENTER INTO
NEGOTIATIONS FOR THE ADMINISTRATION OF THE
SEPARATE ACCOUNTS! b
WHEREAS, the California Coastal Conservancy has agreed
inadvertently commingled the Carlsbad originated Agricultural Conversion
Fees; and:
WHEREAS, the CITY and the California Coastal Conservancq
the accumulated fees be placed into separate accounts; and
WHEREAS, the California Conservancy is required to adn
“statutory” account; and
WHEREAS, the City desires to have the “Mello LC:
administered efficiently and cost effectively; and
WHEREAS, the California Coastal Conservancy has the exF
expertise to administer the “Mello LCP” account.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of
Carlsbad, California as follows:
1. That the above recitations are true and correct.
2. Staff is directed to request that the California Coastal Conservancy
Carlsbad originated Agricultural Mitigation Fees into two accounts with the monie!
the future derived placed into the appropriate account.
I 3. Staff is directed to enter into negotiations with the Calif01
Conservancy for the administration of the “Mello LCP” account.
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4. The California Coastal Conservancy is requested to suspend any ex
from the commingled account except for the state budget appropriation of $ 935,1
Carlsbad Flower Fields or the “Mello LCP” account upon its creation until an agreen
administration of the “Mello LCP” account has been established.
PASSED AND ADOPTED at a regular meeting of the City Council of
Carlsbad on the 3rd day of June 1997, by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Nygaard, Kulchin,
NOES: None
ABSENT: None
ATTEST:
rr,
_a&b aii. KnZ
ALETHA L. RAUl?ENKRANZ, City Clerk
(SEAL)
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0 0 EXk
EXPENDITURE PRIORITIES
FOR THE STATUTORY FUND
Section 301 71.5 (PRC)
(b) All mitigation fees collected pursuant to this section are here
appropriated to, and shall be expended by, the State Coastal Conservancy in t
following order of priority:
(1) Restoration of natural resources and wildlife habitat in Batiquii
Lagoon.
(2) Development of an interpretive center at Buena Vista Lagoon.
(4) Any other project or activity benefiting or enhancing the use of natu
resources, includinq oDen field cultivated floriculture, in the coastal zone in the Ci
of Carlsbad that is provided for in the local coastal program of the City of Carlsbac
(c) The State Coastal Conservancy may establish a special account in t
State Coastal Conservancy Fund and deposit mitigation fees collected pursuant
this section in the special account. Any interest accruing on that money in t
special account shall be expended pursuant to subdivision (b).
(d) Not less that 50 percent of collected and bonded mitigation fees sh
be expended for the purpose specified in paragraph (I) of subdivision (b).
(e) Other than to mitigate the agricultural conversion impacts for whi
they are collected, none of the mitigation fees collected pursuant to this secti
shall be used for elements of a project which cause that project to be in complian
with this division or to mitigate a project which would otherwise be inconsiste
with this subdivision, the State Coastal Conservancy shall consult with t
commission.
(3) Provision of access to public beaches in the City of Carlsbad.
'a e 0 EXH,
EXPENDITURE PRIORITIES
FOR THE LCP FUND
All mitigation -fees collected under this section shall be deposited in the St2
Coastal Conservancy Fund and shall be expended by the State Coastal Conservan
in the following order or priority:
a. Restoration of natural resources and wildlife habitat in Batiquitos Lago
including, but not limited to, payment for operation and maintenance 01
Lagoon enhancement program.
b. Development of an interpretive center at Buena Vista Lagoon.
c. Restoration of beaches managed for public use in the coastal zone in the Ci
of Carlsbad.
d. Purchase of agricultural lands for continued agricultural production within t
Carlsbad Coastal Zone as determined by the Carlsbad City Council.
e. Agricultural Improvements which will aid in continuation of agricultu
productions within the Carlsbad Coastal Zone as determined by the Carlsb
City Council.
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Tuesday, 3 June, 1997
AB #I 4.1 84 Request to separate Agriculture Mitigation
fees into two separate accounts( and priorities)
My name is Guy Moore and I live at 6503 El Camino Real, Carlsbad,
Ca. 92009.
Dear Mayor and Council members:
I would like to support the long overdue separation of this account into
two segments as proposed, however, I feel that the proposed priorities
would only hasten the demise of agriculture along Black Rail Road.
This agricultural element was the original Mello I1 area containing
about 40 acres and could yield $400,000 in conversion fees. Without
vehicular access , vital infrastructures such as natural gas, sanitation
facilities and emergency vehicle .access it is highly dubious that exiting
businesses can endure. For this reason we fee; that the improvement
of Black Rail Road be placed as priority one on the expenditure priority
list.
Ty /
Guy S. Moore Jr.
f/LDQRE 47 6/3/97 Goudcrc 1 s~~~~m~~7 REA^ BY m'.
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