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Home My WebLink About1999-03-09; City Council; 15093; Administration Of LCP Agricultural Mitigation Fee- - . . p 2 AB# 15,093 MTG.3+‘?? DEPT. PLN+ CITY OF CARLSBAD - AGEhA BILL TITLE- -- CITY ADMINISTRATION OF THE LCP AGRICULTURAL MITIGATION FEE DEPT. HD. CITY ATTY. CITY MGR- RECOMMENDED ACTION: That the City Council ADOPT Resolution No. q 9 m 86 requesting that the California Coastal Conservancy: Reimburse the “Statutory” Agricultural Mitigation Fee Account $935,000 from the LCP Agricultural Mitigation Fee Account; return the resulting balance of the LCP Account to the City for Carlsbad to administer pursuant to the City’s LCP; and direct staff to process any required LCP amendments to the City’s LCP to effectuate City administration of the LCP Account. ITEM EXPLANATION: Over the last several years, there have been a number of events that lead to the above staff recommended action. 1. The City discovered that the California Coastal Conservancy had inadvertently co-mingled two agricultural mitigation fee programs. One program was established by the legislature and it applied to the conversion of designated agricultural properties located outside the City’s Mello 1 and 2 LCP segments. This program is referred to as the “Statutory Program”. The other was established when the City amended its LCP in 1985, and is therefore, referred to as the “LCP Program”. The two programs are similar in application (designated properties pay a mitigation fee upon conversion to urban uses). However, they differ somewhat significantly in the priorities for the expenditure of the accumulated fees. 2. On June 3, 1997, the City Council approved a resolution requesting that the Conservancy separate the agricultural fee account held by the Conservancy into a “Statutory Account” and a “LCP Account”. The Council also directed staff to enter into negotiations with the Conservancy for the Conservancy to administer the “LCP Program”. The Council established guidelines for the negotiations which were contained in the June 3rd agenda bill. On December 5, 1997, the Conservancy Board approved the separation of the accounts and directed its staff to negotiate the agreement for the Conservancy to administer the program. The Board also established a “sunset” date of March 31, 1998 for the negotiations. If an agreement could not be reached by that date, the Conservancy staff was directed to return the balance of the LCP account to the City. An acceptable agreement could not be reached and on April 14, 1998, The City Council directed staff to take the necessary steps for the City to administer the “LCP Program”. 3. In a related set of actions, the State Legislature in 1996 appropriated $935,000 from the Conservancy held Agricultural Mitigation Fee Program to assist long term floriculture at the Carlsbad Ranch. On March 25, 1997, the City requested a $935,000 Conservancy grant for the “Flower Fields” at Carlsbad Ranch. In mid-1997, the City was awarded the grant and deposited the funds into an interest earning special revenue account. The interest earnings of the account are earmarked to provide financial assistance to flower production at Carlsbad Ranch. Staff is currently negotiating with the Conservancy for the return of the “LCP Account” balance. At question is which account (LCP or Statutory) should be debited the $935,000 “Flower Fields” grant which the City is now holding and administering. There is some confusion about which account the Legislature had authority from which to appropriate the $935,000. Since the agricultural mitigation fees paid by the developers of the Carlsbad Ranch are attributed to the “LCP Account”, there was a desire by both the City and the Conservancy that the $935,000 grant be debited from the “LCP Account”. On March 25, 1997, when the Council directed staff to request the $935,000 Conservancy grant for the “Flower Fields” it approved a minute motion (3-0, Nygaard and Kulchin absent) directing staff to work with the Conservancy to develop a means to reimburse the “Statutory Account” if the funds were appropriated from that account. I - A PAGE 2 OF AGENDA alLL NO. j ?f3q 3 The Conservancy believes (on advice of legal counsel) that since the $935,000 grant was awarded to the City prior to the actual separating of the two accounts (‘Statutory” .and “LCP”), there is no need to reimburse the “Statutory Account”. According to the Conservancy, all the City would have to do is agree to accept the balance of the “LCP Account” minus the $935,000. The Conservancy would then return $2,812,250 to the City. This money would be added to an existing account (Agricultural Conversion Mitigation Account) that the City established in June, 1998, and that has a current balance of $276,565. It is important to note that the agreement for the $935,000 grant contains a stipulation that if floriculture is no longer feasible at Carlsbad Ranch, the principal would be returned to the account that funded the grant. The current balances of the special revenue account administered by the City for the “Flower Fields” and the “Statutory and LCP Accounts” currently held by the Conservancy are contained on Exhibit 2. The balance of the “Statutory Account” assumes that the $935,000 grant was debited from the “LCP Account”. FISCAL IMPACT: City administration of the LCP Agricultural Mitigation Fee Program would involve establishing a new interest earning special revenue account. There would be City costs related to staff review, report preparation and presentation. There would be additional City costs associated with contract administration and monitoring. Administrative costs can be funded from the interest earned by the special revenue account and it is possible that all City costs would be reimbursed from that interest. Currently the Conservancy is not authorized by the legislature to place the LCP account balance into an interest bearing account. EXHIBITS: 1. City Council Resolution No. q? e 86 2. Various Agricultural Mitigation Account Balances. d RESOLUTION NO. 99-86 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, REQUESTING THAT THE CALIFORNIA COASTAL CONSERVANCY RETURN THE BALANCE OF THE “LCP ACCOUNT” FOR CITY ADMINISTRATION OF THE LCP AGRICULTURAL MITIGATION FEE PROGRAM. 6 Whereas, the City of Carlsbad has caused the establishment of separate 7 agricultural mitigation fee accounts currently held and administered by the California Coastal 8 Conservancy; and 9 Whereas, both the City and the Conservancy desire that the balance of the 10 “Statutory Account” reflect that the $935,000 “Flower Fields” grant was attributed to the “LCP 11 Account”; and 12 Whereas, The Conservancy further desires to return the balance of the “LCP 13 Account” to the City for its administration pursuant to the Mello 1 and 2 LCP segments; and 14 Whereas, The City of Carlsbad desires to administer the subject “LCP Account”. 15 NOW, THEREFORE IT BE RESOLVED, that: 16 1. The above recitations are true and correct. 17 18 2. The City hereby submits the attached invoice in the amount of $2,812,250, (Attachment A) to the California Coastal Conservancy and requests return of the 19 balance of the “LCP Account”. 20 21 22 23 24 25 26 27 . . . . . . . . I . . . . I! 4 - f i E 9 1c 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the 9th day of March 1999, by the following vote, to wit: AYES: Council Members Lewis, Hall, Finnila, Nygaard and Kulchin NOES: None ATTEST: NK@NZ, City Clerk (SEAL) -2- 4 ATTACHMENT R JNVOICE To: California Coastal Conservancy 1330 Broadway, 11” Floor Oakland, CA 94612-2530 The City of Carlsbad hereby requests the return of the balance of the “LCP Account” ($2,812,250) which upon receipt will be deposited into an interest earning account and utilized according to the requirements of the City’s Local Coastal Program (Mello 1 & 2 LCP segments). 2075 Las Palmas Dr. - Carlsbad, CA 92009-l 576 - (760) 438-l 161. FAX (760) 438-0894 0 u EXHIBIT, 2