HomeMy WebLinkAbout2018-11-13; City Council; ; Carlsbad Flower Fields Grant Programprogram. The preservation of open field cultivated floriculture in the coastal zone was added as
an allowable use for the funds per California Assembly Bill No. 2659 approved in 1996.
The following additional actions were taken which ultimately resulted in a transfer of funding
from the State Statutory Fund to the city's local coastal program fund ($2,890,000} and Flower
Fields preservation grant fund ($935,000}:
1. The City approved a separate and distinct Agricultural Conversion Mitigation Fee for
properties within the Mello I and Mello II segments of the local coastal program in
Carlsbad .
2. State approved a transfer of $2,890,000 from the Statutory Fund to the city's local
coastal program mitigation fund.
3. The City Council supported the creation of an independent non-profit Carlsbad Flower
Fields Foundation per City Council Resolution No. 96-231. (Exhibit 3}
4. The city began administering the Flower Field Fund consistent with the agreement
noted above and provided grants for research and other projects associated with
preservation of the Flower Fields at Carlsbad Ranch.
In 1996, the noted Agricultural Mitigation Fee fund was held by the State of California Coastal
Conservancy and through the noted legislation, $935,000 from the statutory Agricultural
Mitigation Fund was set aside for floriculture specific grants. In 1996, the City of Carlsbad also
adopted by resolution (No. 96-231) the creation of an entity "dedicated to ensuring the long-
term production of the flower fields," (Exhibit 2) and followed that with the creation in 1997 of
a special revenue fund to which the funds were deposited ($935,000} upon receipt from the
State Coastal Conservancy.
On June 30, 1997 the city entered into a 20-year agreement with the California Coastal
Conservancy to administer grants supporting floriculture research for the preservation of the
Flower Fields at Carlsbad Ranch with $935,000 in funds set-aside from the statutory Agricultural
Mitigation Fund. For 20 years city staff administered floriculture research grants to Carlsbad
Ranch (only grantee) using the accrued interest only from the $935,000 that was placed into a
special Flower Fields Special Revenue Fund. On June 30, 2017 the agreement with the
Conservancy expired. Initially, the city understood that the $935,000 must be returned to the
state statutory Agricultural Mitigation Fund account. However, staff research discovered that in
1999, the state and the city mutually agreed that the $935,000 in grant funds should be
considered part of the city's Local Coastal Program (LCP} fund and did not need to be returned
to the state. The Conservancy provided a final determination, in writing, that the $935,000 in
grant funds may be retained by the city and the city may continue to administer a floriculture
grant program on its own without further contractual oversight by the Conservancy; the
correspondence from the Conservancy dated December 15, 2017 is attached as Exhibit 3 to this
report.
Although the State indicated that the funds could be deposited to the city's local agricultural
mitigation fund, city staff is presenting options to the City Council as to the deposit and
expenditure plan for the $935,000. The options considered by staff are:
November 13, 2018 Item #7 Page 2 of 12
1. Return the $935,000 and earned interest (approximately $30,000) to the State Coastal
Conservancy for distribution of grant funds for floriculture through the agency rather
than the City of Carlsbad.
2. Create a new City Council Policy to establish the Carlsbad Flower Fields Grant Program
and authorize the Finance Director to appropriate and disburse monies for grants from
the Flower Fields Special Revenue Fund as approved by the Community & Economic
Development Director or designee for projects meeting the criteria set forth in the new
City Council Policy.
3. Instruct staff to revise the Carlsbad Municipal Code (CMC 21.202.060 (D)) to add
floriculture research projects and programs as an eligible use under the city's existing
Agricultural Mitigation Fee Fund and grant review process, and deposit the full $935,000
plus accrued interest to the fund; the grant requests would then be reviewed by the
council-appointed advisory committee and recommendations on funding would be
made to the City Council for approval.
4. Complete a process to identify another conservation non-profit organization or
academic institution to endow with the $935,000 and earned interest and enter into an
agreement with that organization or institution to manage the grant program on behalf
of the city and expend funds to preserve floriculture in Carlsbad.
Staff is recommending Option #2 based on Resolution No. 96-231, where the city committed to
'ensuring the long-term production of the Flower Fields'. Under Option 2, the city would retain
the full amount of the funds ($935,000 plus earned interest of approximately $30,000) and
continue to fund grant requests to preserve the flower fields in Carlsbad.
It is important to note that over $800,000 in agricultural mitigation fees has been paid as result
of the development of Carlsbad Ranch, which includes the Flower Fields. It is staff's
understanding that the original intent of the legislation creating the floriculture grants from the
statutory agricultural mitigation fund was to preserve the Flower Fields in Carlsbad and ensure
their long-term commercial viability.
Staff reviewed several options for action by the City Council as noted in the Executive Summary
section above. Based on Resolution 96-231, that the city desires to continue efforts to preserve
the Flower Fields and ensure their long-term commercial viability, staff is recommending that
the City Council adopt a new policy to continue providing grants to support floriculture research
in Carlsbad, specifically for the Flower Fields at Carlsbad Ranch, and use the original $935,000
set-aside funds plus earned interest (estimated at approximately $30,000) to fund these grants.
The proposed guidelines and process for the Carlsbad Flower Fields Grant program are
summarized below:
1. Grant request shall be submitted on city provided application form during a designated
period of time, unless excepted by the Community & Economic Development Director
for unforeseen circumstances or conflicting time schedules for other grant applications.
2. Up to $50,000 in grants may be approved during a single fiscal year, using a combination
of interest and principal from the $935,000 endowment.
November 13, 2018 Item #7 Page 3 of 12
3. The Community & Economic Development Director or designee may approve the grants,
with a minimum grant requirement of $5,000 and a maximum grant amount per year to
not exceed $50,000.
4. Grant application must demonstrate that the project meets the purpose of the program
to preserve or ensure the ongoing commercial viability of the Carlsbad Flower Fields.
5. The policy will automatically expire at such time that the original $935,000 (and accrued
interest) in the special set-aside fund are depleted, unless the City Council approves an
additional appropriation to the special fund.
6. Staff will report annually to the City Council on the grants that are approved, and the
purpose for those grants. The report will include information on the balance of funds
available for the next year.
Fiscal Analysis
The Flower Fields Special Revenue Fund currently has the $935,000 original endowment funds
(from the State Coastal Conservancy) plus unspent interest earnings, which as of Oct. 15, 2018
was approximately $30,000. The set-aside fund will remain with the deposit of $935,000 plus
interest. The City Council Policy will direct the manner in which floriculture grants may be
approved by the Community & Economic Development Director or designee to preserve the
flower fields in Carlsbad. Depending on the number of grant requests received each year, the
city's agricultural mitigation program takes approximately 40-50 hours of staff time to
administer.
Next Steps
If the staff recommendation is adopted, staff will continue the grant program which will fund
future floriculture research.
Environmental Evaluation {CEQA)
Pursuant to Public Resources Code Section 21065 this action of creating a grant program using
the balance of funds from the Flower Fields Special Revenue Fund plus interest has no potential
to cause either a direct physical change in the environment, or a reasonably foreseeable
indirect physical change in the environment, and therefore does not require environmental
review.
Public Notification
This item was noticed in accordance with The Ralph M. Brown Act and was available for viewing
at least 72 hours prior to the meeting date.
Exhibits
1. City Council Resolution
2. Resolution No. 96-231 approving support for the creation of a Carlsbad Flower Fields Grant
Program dedicated to ensuring the long-term production of the flower fields.
3. Correspondence from the California Coastal Conservancy regarding retention of the
floriculture grant funds by the city.
November 13, 2018 Item #7 Page 4 of 12
RESOLUTION NO. 2018-192
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING A NEW CITY COUNCIL POLICY TO ESTABLISH THE
CARLSBAD FLOWER FIELDS GRANT PROGRAM, AND AUTHORIZING THE
ADMINISTRATIVE SERVICES DIRECTOR TO APPROPRIATE AND DISBURSE
MONIES FOR GRANTS FROM THE FLOWER FIELDS FUND AS APPROVED BY
THE COMMUNITY & ECONOMIC DEVELOPMENT DIRECTOR OR DESIGNEE
FOR PROJECTS MEETING THE CRITERIA SET FORTH IN THE NEW CITY
COUNCIL POLICY.
WHEREAS, the City Council of the City of Carlsbad, California entered into a twenty-year
agreement with the California Coastal Conservancy on June 30, 1997 to administer an endowment fund
to support floriculture research for the preservation of the Flower Fields at Carlsbad Ranch; and,
WHEREAS, for 20 years city staff administered annual grants to the Flower Fields using the
accrued interest from $935,000 that had been placed into the endowment (the Flower Fields Fund),
per the agreement; and,
WHEREAS, the agreement between the City of Carlsbad and the California Coastal Conservancy
expired on June 30, 2017; and,
WHEREAS, the City of Carlsbad fulfilled its obligation under the agreement and staff submitted
a final report that was accepted by the California Coastal Conservancy and a determination was
subsequently made by the California Coastal Conservancy that the city is not required to return the
$935,000 in original endowment funds and may continue to administer a floriculture grant fund
without any required oversight by the California Coastal Conservancy.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That the City Council hereby approves the new City Council Policy -Attachment A
establishing the Carlsbad Flower Fields Grant Program and authorizing the Community
& Economic Development Director or designee to approve grants for projects meeting
the criteria set forth in the approved City Council Policy.
3. That the Administrative Services Director is authorized to appropriate $50,000 for fiscal
year 2018-19 grants from the Flower Field Fund.
November 13, 2018 Item #7 Page 5 of 12
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 13th day of November, 2018, by the following vote, to wit:
AYES: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher.
NOES: None.
ABSENT: M. Packard.
MATT HALL, Mayor
{SEAL)
November 13, 2018 Item #7 Page 6 of 12
{city of
Policy No. 85
Date Issued: 11-13-2018
Carlsbad Effective Date: 11-13-2018
Resolution No: 2018-192
Cancellation Date: N/A
Supersedes No. N/A
Council Policy Statement
Category:
Specific Subject:
PURPOSE:
Carlsbad Flower Fields Fund Grant Program
Guidelines for the establishment and management of the Flower Fields
Fund Grant Program
The purpose of this policy is to:
• Establish criteria for the approval of grants from the Flower Fields Fund Grant
Program.
• Ensure that the Flower Fields Grant Program provides public benefit for the City of
Carlsbad and its residents.
• Authorize the Community & Economic Development Director or designee to
administer the grant program and approve grants with existing funds from the city's
Flower Fields Fund in an amount not to exceed $50,000 per year until such time that
all funds are depleted from the Flower Fields Fund.
BACKGROUND:
On June 25, 1996 the City Council of the City of Carlsbad approved Resolution 96-231
expressing support for the creation of an independent non-profit Carlsbad Flower Fields
Foundation "dedicated to ensuring the long-term production of the Flower Fields." On June
30, 1997 the city entered into an agreement with the California Coastal Conservancy to
administer grants supporting floriculture research for the preservation of the Flower Fields at
Carlsbad Ranch. For 20 years city staff administered grants to Carlsbad Ranch using the
accrued interest from $935,000 that was placed into a Flower Fields Fund. On June 30, 2017
the agreement between the California State Coastal Conservancy and the City of Carlsbad
expired; city staff submitted a final report which was accepted by the Coastal Conservancy
and a determination was made by the Coastal Conservancy that the $935,000 in funds may
remain with the city and the city may continue to approve floriculture research grants with no
further oversight required from the Coastal Conservancy if it desired to do so .
The city desires to continue to administer a grant program to support the preservation and
enhancement of the Carlsbad Flower Fields, and desires to continue the set-aside of $935,000
and any accrued interest for the purpose of approving floriculture research grants. Because
there is no longer an agreement with the California Coastal Conservancy for administration of
the grant program, this City Council Policy is required to set forth the policies and grant
criteria for the subject grant program.
Page 1 of 2
November 13, 2018 Item #7 Page 7 of 12
POLICY:
It is the policy of the City Council of the City of Carlsbad to fund research and development
projects related to preserving and/or improving the commercial viability of local flowering
crops, and to enhance the public experience in and around the Flower Fields. This policy is an
appropriate measure to assist in ensuring the long-term productivity of the Flower Fields and
the appropriate use of the $935,000 and accrued interest set-aside by the City Council for the
purpose of floriculture research to preserve and/or enhance the commercial viability ofthe
Carlsbad Flower Fields.
Activities undertaken through this grant program shall demonstrate that they support the City
Council's purpose to support floriculture research and more specifically the preservation,
enhancement and commercial viability of the Carlsbad Flower Fields. The minimum grant to
be provided under this program is $5,000, and the maximum grant funds to be disbursed per
fiscal year shall be $50,000. An annual report to Council on the grants approved under this
program shall be provided at the end of each fiscal year, until such time as all funds (including
interest) are depleted.
Once the full amount of $935,000 and accrued interest has been fully expended, this policy
shall automatically expire and the Flower Fields Grant Program will be discontinued, unless
the policy is extended by City Council with an additional appropriation of funding.
Grant Criteria and Process:
1. Grant request to be submitted on city provided application form and must be submitted
by an authorized agent of the flower fields operations or administrative team.
2. The grant application may be submitted January -March, and the grant request shall be
for no less than $5,000 and no more than $50,000 per fiscal year (July 1 to June 30).
3. The grant application must demonstrate that the proposed project or program meets the
public purpose of preserving, enhancing or ensuring the ongoing commercial viability of
the Carlsbad Flower Fields.
4. The application will be reviewed and evaluated by Community & Economic Development
(CED) staff, and a recommendation then made to the CED Director or designee for
approval. The CED Director or designee has final approval authority of all grants under this
program. If the CED Director or designee denies a grant under this program for any
reason, the applicant may appeal directly to the City Council.
5. An annual report will be submitted to the City Council on all grants made during the fiscal
year from this fund.
Page 2 of 2
November 13, 2018 Item #7 Page 8 of 12
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• •
RESOLUTION NO. 96-231
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD EXPRESSING SUPPORT FOR THE CREATION
OF AN INDEPENDENT NON-PROFIT CARLSBAD FLOWER
FIELDS FOUNDATION
WHEREAS, the flower fields represent an important amenity to the Carlsbad
Ranch project and to the City of Carlsbad; and
WHEREAS, the City is desirous of supporting appropriate measures to ensure the
long term productivity of the flower fields; and
WHEREAS, an independent non-profit foundation dedicated to funding research
and development projects related to improving the viability of local flowering crops, and to
enhance the public experience in and around the flower fields is an appropriate measure to assist
in ensuring the long term productivity of the flower fields.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Carlsbad, California as follows:
The City Council formally supports the creation of the Carlsbad Flower Fields
Foundation dedicated to ensuring the long term production of the flower fields.
Exhibit 2
November 13, 2018 Item #7 Page 9 of 12
~
Coastal
Conservancy
C a
December 15, 2017
Marisa Lundstedt
Chief Operating Officer
City of Carlsbad
1635 Faraday Avenue
Carlsbad, CA 92008
Laureen Ryan
Management Analyst
Community & Economic Development
City of Carlsbad
1635 Faraday Avenue
Carlsbad, CA 92008
Regarding State Coastal Conservancy Grant Agreement 96-081
Dear Ms. Lundstedt and Ms. Ryan;
In a letter to you dated October 11, 2017, I requested that the City of Carlsbad submit to the Conservancy
$935,000 to comply with the above-referenced grant agreement, which granted $935,000 to the City of
Carlsbad to establish an endowment fund for floriculture research related to preservation of Carlsbad
Ranch. The grant agreement includes a provision requiring that, at the end of twenty years, the
endowment principal be returned to the Conservancy's Carlsbad Agricultural Mitigation Account
("CAMA"), which was established in the State Coastal Conservancy Fund pursuant to Public Resources
Code section 30171.5. The provision requiring the return of the principal includes an exception to
repayment if the City has already returned the funds to the CAMA.
By email dated November I, 2017, Roxanne Muhlmeister, Senior Accountant for the City, pointed out
that in the late 1990s, when the Conservancy forwarded to the City those non-CAMA agricultural fees
that the Conservancy had collected on behalf of the City for several years, the Conservancy retained
$935,000 of those non-CAMA fees for the CAMA in light of the grant agreement, thereby, in effect,
returning the grant funds to the CAMA. I have reviewed the documents you provided as well as the
Conservancy's files. I concur with your conclusion that the CAMA has already been credited the
$935,000 that was granted by this grant agreement. Therefore that grant agreement has been satisfied and
no furiher payment to the Conservancy is required. Thank you for bringing the old accounting
information to our attention.
f o r n 1 a S t a t e Coas t a l
15 15 Clay Street, 10th Floor
Oakland, California 94612-1401
510·286·1015 Fax: 510·286'0470
Co n servancy
Exhibit 3
November 13, 2018 Item #7 Page 11 of 12
Flower Fields Research Grant
Program
Background
•In 1996, as a part of the overall plan for the
Carlsbad Ranch and recruiting Legoland, the
City and Carltas persuaded the legislature to
direct funding a research program for the
Flower Fields, intending the source of the
funding to be the agricultural mitigation fees
required to be paid by Carltas to convert some
of the farmland to Legoland Carlsbad.
Funded Work
•During the nearly 20 years of the grant
program, the annual grants have allowed
setting aside productive areas and labor, to
experiment with new materials, to trial new
and different floral products, and test
alternative ways to manage water, soil and
labor.
•And to be able to do so with the risk of failure
Variety of Work Supported
Examples
•Ongoing research to find a safe and effective
soil treatment to allow bulb production
•Selecting, nurturing and experimenting for
sale with unusual colors and forms
•Trying new products like a dwarf calla lily from
Australia
•Testing new treatments for weeds and
diseases
The Need Now and in the Future
Examples
•Controlling pests, disease, and nutrition in a
single crop-the challenge of monoculture
•Increasing the productivity of each plant
( PhD plant breeder engaged)
•Increasing and improving the productivity of
the workforce with innovation in planting,
harvesting and post production handling
•Improving control and efficiency of water usage
The Promise of the future
•By continuing to invest in research and
development the Flower Fields, and the
production of its signature flower-the
ranunculus-will continue as a part of the
fabric of the Carlsbad Community.
Carlsbad Flower Fields
Grant Program
Debbie Fountain, Community and Economic Development Director
Laureen Ryan, Management Analyst
November 13, 2018
Background
•Resolution 96-231
•1997 20-year Agreement with the California Coastal
Conservancy
Options to Consider
•Return the $935,000 and earned interest
•Create a new City Council Policy
•Revise the Carlsbad Municipal Code (CMC
21.202.060 (D))
•Identify another conservation non-profit
organization or academic institution
City Council Policy Overview
•Purpose
•Policy
•Guidelines
Recommendation
Adopt a Resolution approving a new City Council Policy to establish the Carlsbad Flower Fields Grant Program and authorizing the Administrative Services Director to appropriate and disburse monies for grants from the Flower Fields Fund as approved by the Community & Economic Development Director or designee for projects meeting the criteria set forth in the new City Council Policy.
Summary of Projects
•Alternative to Methyl Bromide
•Herbicide Trials
•Varietal Selection