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Home My WebLink About2020-04-14; City Council; ; The Flower Fields Fund Grant Program: A request to award remaining funds due to economic hardship caused by the COVID-19 pandemicMeeting Date: April 14, 2020 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Jeff Murphy, Community Development Director jeff.murphy@carlsbadca.gov, 760-602-2783 Subject: The Flower Fields Fund Grant Program: A request to award remaining funds due to economic hardship caused by the COVID-19 pandemic Recommended Action Adopt a resolution authorizing the award of the remaining fund balance of the Flower Fields Fund Grant Program, currently $891,708, to The Flower Fields at Carlsbad Ranch, dissolving the Flower Fields Fund Grant Program and rescinding City Council Policy No. 85. Executive Summary In response to the state and county executive health orders regarding the COVID-19 epidemic, the Flower Fields at Carlsbad Ranch officially closed its operations to the public on March 9, 2020. The business expects to be closed for the entire flowering season. On March 21, 2020, the city received a letter from CB Ranch Enterprises, the operator of the flower fields, requesting an emergency grant from the city of the remaining funds available in the Flower Fields Fund Grant Program, which is currently $891,708, to help alleviate the severe financial impacts and economic hardship caused by the closure. City Council Policy No. 85 (Exhibit 2) establishes the guidelines for the establishment and management of the grant program. Under that policy, city staff is authorized to award no more than $50,000 per year. Given the amount requested, the City Council must authorize the award. Discussion Background For the past 20 years, city staff has administered grants to the Flower Fields at Carlsbad Ranch to help 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. City Council Policy No. 85 sets the guidelines for the establishment and management of the Flower Fields Fund Grant Program, which has a current balance of $891,708. The minimum grant to be provided under the program is $5,000 and the maximum grant funds that can be distributed per year shall be $50,000. Additional background on the program is provided in Exhibit 3. April 14, 2020 Item #7 Page 1 of 53 Request for Funds In response to Governor Newsom’s Executive Order N-33-20 and the County of San Diego Health Officer’s Order (Exhibit 4), which among other directives, limited public and private gatherings, required social distancing and the closure of all non-essential services during the COVID-19 pandemic, CB Ranch Enterprises officially closed the Flower Fields’ operations effective March 9, 2020, as noted above. The company expects the fields to remain closed for the duration of the flowering season, which runs from March 1 to May 15, with the virtually complete loss of the revenue from visitors’ services and cut flowers that support the farming operation. On March 21, 2020, the city received a letter from CB Ranch Enterprises (Exhibit 5) requesting an emergency grant for the remaining funds available in the Flower Fields Fund Grant Program, which is currently $891,708, to help alleviate the severe financial impacts and economic hardship caused by this closure. According to CB Ranch Enterprises, this closure will result in an estimated financial loss of roughly $2.7 million to its operations this year, exhausting the company’s cash reserves and its current operating lines of credit. CB Ranch Enterprises stated that the emergency grant will permit the Flower Fields to get through this year, and to secure the financing and operating lines of credit needed to have a flower growing season next year. In a subsequent letter (Exhibit 6), CB Ranch Enterprises provided further detail in how the funds would be used, which included itemized direct farming expenses such as water costs, labor, repair and maintenance, supplies and field work. City Council Policy No. 85 sets the guidelines for the establishment and management of the grant program. This policy authorizes city staff to award no more than $50,000 per year. Because the amount requested by CB Ranch Enterprises exceeds that amount, the City Council must authorize the award. Determination Staff finds that the actions and services listed above and described in the attached letters from CB Ranch Enterprises qualify as a “project/activity” as used in CA Public Resources Code §30171.5(b)(4) (Exhibit 7) and City Council Policy No.85. The activities to be performed by CB Ranch Enterprises further the City Council’s efforts to support open field floriculture research in the coastal zone and the preservation, enhancement and commercial viability of the Flower Fields. If awarded, this will deplete the balance in the Flower Fields Grant Program Special Revenue Fund to zero. As part of the action being considered, the City Council will be rescinding City Council Policy No. 85 and dissolving the program with the $891,708 award. Fiscal Analysis The Flower Fields Grant Program currently has an available balance of $891,708. If the emergency grant is approved, this will deplete the balance in the Flower Fields Grant Program Special Revenue Fund to zero, effectively dissolving the Program. Any future actions to financially support the Flower Fields at Carlsbad Ranch would require a contribution from other April 14, 2020 Item #7 Page 2 of 53 sources, such as the city’s General Fund, grant funding that CB Ranch Enterprises could apply and compete for under the city’s Agricultural Conversion Mitigation Fee Grant Program (Exhibit 8), or other non-city grant funding opportunities. Next Steps If authorized by the City Council, staff will distribute the remaining available grant balance to CB Ranch Enterprises and dissolve the Program. Environmental Evaluation (CEQA) This is an informational report so, in keeping with Public Resources Code section 21065, this action does not constitute a “project” within the meaning of the California Environmental Quality Act in that it 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 further environmental review. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. City Council resolution 2. City Council Policy No. 85 3. Staff Report November 13, 2018; Carlsbad Flower Fields Grant Program 4. State Executive Order and County Health Officer Order-COVID19 5. Letter from the CB Ranch Enterprises dated March 21, 2020 6. Letter from the CB Ranch Enterprises dated April 6, 2020 7. CA Public Resources Code §30171.5 8. Agricultural Conversion Mitigation Fee; §21.202.060(D)(2)(b) April 14, 2020 Item #7 Page 3 of 53 RESOLUTION NO. 2020-063 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE AWARD OF THE REMAINING FUND BALANCE OF THE FLOWER FIELDS FUND GRANT PROGRAM, CURRENTLY AT $891,708, TO THE FLOWER FIELDS AT CARLSBAD RANCH, DISSOLVING THE FLOWER FIELDS FUND GRANT PROGRAM, AND RESCINDING CITY COUNCIL POLICY NO. 85. WHEREAS, the Flower Fields of Carlsbad Ranch is located at 5704 Paseo Del Norte and for several decades has been one of the most unique attractions in Carlsbad drawing more than 100,000 visitors annually to its SO-acres of beautiful ranunculus flowers; and WHEREAS, the Flower Fields of Carlsbad Ranch predominately operates and is open to the public during the flowering season, which runs from March pt through May 15th, when it receives most of its revenues from visitors' services and cut flowers that support the farming operations; and WHEREAS, Governor Newsom's Executive Order N-33-20 and the Order of the County of San Diego Health Officer, among other directives, limited public and private gatherings, required social distancing and the closure of all non-essential services during the COVID-19 pandemic; and WHEREAS, in response to the orders, CB Ranch Enterprises, the operator of the Flower Fields of Carlsbad Ranch, officially closed their operations effective March 9, 2020, and they expect to remain closed for the duration of the flowering season; and, WHEREAS, CB Ranch Enterprises has stated that this closure will result in an estimated financial loss of roughly $2. 7 million in operations this year, exhausting cash reserves and current operating lines of credit; and WHEREAS, CB Ranch Enterprises is requesting an emergency grant for the remaining funds available in the Flower Fields Fund Grant Program, which is currently $891,708, to help fund those activities and services described in the letter dated April 6, 2020 (Attachment 1), which CB Ranch Enterprises claims are necessary to ensure a flowering season next year; and WHEREAS, the City Council finds that the activities being funded comply with the provisions set forth under California Public Resources Code §30171.5(b)(4) and City Council Policy No. 85 in that the proposed activities meet the public purpose of preserving, enhancing or ensuring the ongoing commercial viability of the Carlsbad Flower Fields. 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 and are each incorporated by reference. 2. That the Deputy City Manager, Administrative Services is hereby authorized and directed to appropriate and disburse the remaining cash balance plus all interest earned during the month of March 2020 in the Flower Fields Grant Program Special Revenue Fund, which is currently $891,708, to CB Ranch Enterprises. April 14, 2020 Item #7 Page 4 of 53 3. That the Flower Fields Fund Grant Program be dissolved. 4. That City Council Policy No. 85 be rescinded. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 14th day of April 2020, by the following vote, to wit: AYES: Hall, Blackburn, Bhat-Patel, Schumacher NAYS: None. ABSENT: None. MATT HALL, Mayor \i1v11a w,rzwt1t1~ ~ARBARA ENGLESON, City Clerk (SEAL) ,,,1111111111,,,,,,, ~>'~ff CA~/'✓,/~ -$', ....... ~~ f'S':_...~--~ ··}il ~Of /: ;,;__))\C§ \ \_~J:/ l ~ C'"I,;-·····! ..... •~,~~ ✓,✓,,,,,";-IFO~~,,,,~ 1111111111111111111 April 14, 2020 Item #7 Page 5 of 53 ATTACHMENT 1Jeff Murphy Director of Community Development City of Carlsbad 1635 Faraday Carlsbad 92008 Dear Mr. Murphy: RE: Description of Project Flower Fields Emergency Grant April 6, 2020 Pursuant to your request the following is submitted to further define the specific project for which we request emergency funding. We also include a brief article highlighting the impact of Covid-19 on the cut flower industry generally and the Flower Fields specifically. We initiated our request for an emergency grant with a summary of the entire economic needs and intended use for sustaining The Flower Fields™ through the impact of the Covid-19 Emergency. This request is made in the context of a $2.7million loss from the collapse of cut flower sales and prohibition on visitors. The project for which the grant will be used is support of the field floral farming. 1. Use of Funds. An emergency grant of $892,000 will support direct farm expenses set forth on the attached from March 1 to September 30, 2020 ($1,019,000). Combined with other funding we intend to obtain it will support the farming cycle until we begin to receive significant revenue from cut sales and visitors March 1, 2021. The Grant will permit farming operations to continue while additional operating funds are identified. With these funds, the Flower Fields operation can survive, and we believe thrive as the Covid-19 impact dissipates. 1. The costs reflect the farming activities necessary to complete this cycle, prepare the fields for the next farming cycle beginning in September with the main block planting. 2. Most of the expenses are self-explanatory with the maintenance of the remaining crop managed to provide some opportunity for sales of cut flowers in late April and May if distribution channels reopen. 3. Costs associated with harvesting bulbs are included. Bulb sales are generally uncertain, but if they are realized it will be in fall-winter with online/mail order sales so no proceeds will be available to support the farming operations during the project period. 7220 AVENIDA ENCINAS SUITE 204 • CARLSBAD, CA 92011 TELEPHONE (760) 930-9123 FAX (760) 431-9020 WWW.THEFLOWERFIELDS.COM April 14, 2020Item #7 Page 6 of 53 I A B C D E F G H I J K L M 1 CB RANCH ENTERPRISES 2 FLOWER FIELDS -2020 3 PROJECTED FARMING EXPENSES 4 5 Proj Proj Proj Proj Proj Proj Proj 3/2020 -9/2020 6 FARMING DIVISION Mar-20 Apr-20 Mav-20 Jun-20 Jul-20 Aua-20 Sep-20 Total 7 8 FARMING EXPENSES: 9 10 Pesticides/Fertilizer 15,200 15 200 15,200 10 200 22,600 31 ,000 122,900 232 300 11 Weedina Labor 12 600 12 100 12,100 3,600 900 2,000 3 500 46 800 12 Field Prep 1,200 1 900 6,800 16,900 3 900 11 ,200 17,000 58,900 13 lrriaate 5 000 5 000 4 700 3 800 8 600 8,900 11 ,200 47 200 14 Pest Control 3,300 2 900 1,200 700 100 800 900 9 900 15 Diaaina Labor 700 800 8,500 16,100 13,000 2,100 800 42,000 16 Gradina Labor 0 0 0 800 30 200 4,200 0 35 200 17 Seedina Labor 3,700 1 200 6 900 5 900 5 400 0 0 23 100 18 Plantina (400\ 0 0 2,200 0 0 2,000 3,800 19 Misc. Labor 19 000 19 000 8 800 11 900 14 300 12 200 9 100 94 300 20 Payroll Taxes 8 000 8 000 7 000 4400 7 300 3 100 3,400 41 ,200 21 Worker's Compensation 3 500 3 500 3 400 3 500 3 900 4 100 4 000 25 900 22 Emplovee Benefits 1 900 2 800 4,200 7,000 2 000 1,600 3,900 23 400 23 Supplies 6,000 7 900 9 000 9 800 1 300 6,500 10,400 50 900 24 Gas & Oil 100 2,000 2,000 2,000 1,800 3,500 3,300 14,700 25 Eauipment Leasina 3 600 3 600 7 000 4 900 4 000 3 600 3,600 30,300 26 Licenses & Taxes 0 2 400 0 0 2100 100 0 4,600 27 Repairs & Maintenance 2 000 8 000 3 700 4 800 1 300 3,400 2 100 25 300 28 Teleohone 0 300 100 200 100 0 200 900 29 Miscellaneous/General 2 700 700 400 200 200 500 800 5 500 30 Utilities 0 0 0 0 0 0 0 0 31 Water 14,000 0 25,000 10,800 6 700 19 900 21 ,100 97 500 32 Outside Services 1,200 3 000 3 600 1 900 1 800 2,600 1,900 16 000 33 Manac ement Fee 12 500 12 500 12,500 12 500 12 500 12,500 12,500 87 500 34 Rent 241 241 241 241 200 200 200 1 564 35 Other 0 0 0 0 0 0 0 0 36 37 Total Farming Expenses 116,041 113,041 142,341 134,341 144,200 134,000 234,800 1,018,764 38 39 40 41 James R. Bornemann 2020 Forecast -Farming costs March 2020 -Sept 2020 1 of 1 4/6/2020 10:16 AM April 14, 2020 Item #7 Page 8 of 53 EXHIBIT 2 {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 Flowe~ 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 of2 November 13, 2018 Item #7 Page 7 of 12 April 14, 2020 Item #7 Page 9 of 53 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 Councii 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 April 14, 2020 Item #7 Page 10 of 53 EXHIBIT 3 EXECUTIVE DEPARTMENT STATE OF CALIFORNIA EXECUTIVE ORDER N-33-20 WHEREAS on March 4, 2020, I proclaimed a State of Emergency to exist in California as a result of the threat of COVID-19; and WHEREAS in a short period of time, COVID-19 has rapidly spread throughout California, necessitating updated and more stringent guidance from federal, state, and local public health officials; and WHEREAS for the preservation of public health and safety throughout the entire State of California, I find it necessary for all Californians to heed the State public health directives from the Department of Public Health. NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes of the State of California, and in particular, Government Code sections 8567, 8627, and 8665 do hereby issue the following Order to become effective immediately: IT IS HEREBY ORDERED THAT: 1) To preserve the public health and safety, and to ensure the healthcare delivery system is capable of serving all, and prioritizing those at the highest risk and vulnerability, all residents are directed to immediately heed the current State public health directives, which I ordered the Department of Public Health to develop for the current statewide status of COVID-19. Those directives are consistent with the March 19, 2020, Memorandum on Identification of Essential Critical Infrastructure Workers During COVID-19 Response, found at: https://covid 19.ca.qov/. Those directives follow: ORDER OF THE STATE PUBLIC HEALTH OFFICER March 19, 2020 To protect public health, I as State Public Health Officer and Director of the California Department of Public Health order all individuals living in the State of California to stay home or at their place of residence except as needed to maintain continuity of operations of the federal critical infrastructure sectors, as outlined at https://www.cisa.gov/identifying-critical-infrastructure-during-covid-19. In addition, and in consultation with the Director of the Governor's Office of Emergency Services, I may designate additional sectors as critical in order to protect the health and well-being of all Californians. Pursuant to the authority under the Health and Safety Code 120125, 120140, 131080, 120130/c), 120135, 120145, 120175 and 120150, this order is to go into effect immediately and shall stay in effect until further notice. The federal government has identified 1 6 critical infrastructure sectors whose assets, systems, and networks, whether physical or virtual, are' considered so vital to the United States that their incapacitation or April 14, 2020 Item #7 Page 11 of 53 activities prohibited by this Order, or the Executive Order, and that social distancing requirements are practiced. h. Daycare and childcare facilities shall operate under the following conditions: i) childcare must be carried out in stable groups of 10 or fewer ("stable" means that the same 10 or fewer children are in the same group each day); ii) children shall not change from one group to another; iii) if more than one group of children is cared for at one facility, each group shall be in a separate room; iv) groups shall not mix with each other; and v) childcare providers shall remain solely with one group of children. 1. A strong recommendation is made that all persons who are 65 years old or older, have a chronic underlying condition, or have a compromised immune system self- quarantine themselves at home. j. "Non-essential personnel," as defined in section 2(c) below, are prohibited from entry into any hospital or long-term care facility. All essential personnel who show any potential signs or symptoms of COVID-19 shall be strictly prohibited from entry into hospitals or long-term care facilities. k. Hospitals and healthcare providers shall take measures to preserve and prioritize resources including delaying non-emergent or elective surgeries or procedures where l feasible. 1. Hospitals, healthcare providers, and commercial testing laboratories shall report all COVID-19 test results to the Public Health Officer immediately after such results are received. m. All persons arriving in the county from international locations identified on the Centers for Disease Control and Prevention (CDC) Warning Level 2 or 3 Travel Advisory (available at: https://wwwnc.cdc.gov/travel/notices) shall be subject to 14- day home quarantine, self-monitoring. n. A strong recommendation is made for persons exhibiting mild to moderate symptoms of COVID-19 to self-isolate themselves in their place of residence unless seeking medical treatment. A guide to symptoms is found here: https ://www.cdc.gov/coronavirus/2019-ncov/symptoms-tesfu1g/symptoms.htinl . 2. For purposes of this Order: a. "Gathering" is any event or convening that brings together 10 or more people in a single room or single space at the same time, such as an auditorium, stadium, arena, theater, church, casino, conference room, meeting hall, cafeteria, or any other indoor or outdoor space. A gathering does not include: 1. Operations at airports, public transportation or other spaces where 10 or more persons may be in transit but able to practice social distancing. ii. Operations at businesses included in the designated sectors referenced in section 1 above, where many people are present but are able to practice social distancing. Nor does it prohibit said businesses from having 10 or more employees in the same room when able to practice social distancing. b. "Long term care facility" is a facility serving adults that require assistance with activities of daily living, including a skilled nursing facility, and that is licensed by the California Department of Community Care and Licensing, or the California Department ~f Public Health. Page 2 of 5 ORDER OF THE HEALTH OFFICER AND EMERGENCY REGULATIONS April 14, 2020 Item #7 Page 14 of 53 c. "Non-essential personnel" for the purpose of section IG) above, are employees, contractors, or members of the public who do not perform treatment, maintenance, support, or administrative tasks deemed essential to the healthcare mission of the long- term care facility or hospital. Non-essential personnel do not include first responders, nor State, federal, or local officials, investigators, or medical personnel carrying out lawful duties . Entry of visitors to hospitals and long-term care facilities are allowed upon the approval of the facility's director, or designee, for the purpose of allowing family and friends to visit a resident such as in an end of life situation, to allow parents or guardians to visit a child who is a patient, or any other circumstances deemed appropriate by the facility director, or designee, and where appropriate precautions by the facility that follow federal, State, and local public health guidance regarding COVID-19 are followed. d. "Social distancing" is maintaining a six-foot separation from all persons except for household members and medical providers with the appropriate personal protection equipment. 3. This Order is issued as a result of the World Health Organization's declaration of a worldwide pandemic of COVID-19 disease, also known as "novel coronavirus." 4. This Order is issued based on scientific evidence regarding the most effective approaches to slow the transmission of communicable diseases generally and COVID-19 specifically, as well as best practices as currently known and available to protect vulnerable members of the public from avoidable risk of serious illness or death resulting from exposure to COVID-19. The age, condition, and health of a significant portion of the population of the county places it at risk for serious health complications, including death, from COVID-19. Although most individuals who contract COVID-19 do not become seriously ill, persons with mild symptoms and asymptomatic persons with COVID-19 may place other vulnerable members of the public- such as older adults, and those with underlying health conditions-at significant risk. 5. The actions required by this Order are necessary to reduce the number of individuals who will be exposed to COVID-19, and will thereby slow the spread of COVID-19 in the county. By reducing the spread of COVID-19, this Order will help preserve critical and limited healthcare capacity in the county and will save lives. 6. This Order is issued in accordance with, and incorporates by reference: a) the Declaration of Local Health Emergency issued by the Health Officer on February 14, 2020; b) the Proclamation of Local Emergency issued by the County Director of Emergency Services on February 14, 2020; c) the action of the County Board of Supervisors to ratify and continue both the local health emergency and local emergency on February 19, 2020; d) the Proclamation of a State of Emergency issued by the Governor of the State of California on March 4, 2020; e) Executive Order N-25 -20 issued by the Governor of the State of California on March 12, 2020 which orders that "All residents are to heed any orders and guidance of state and local health officials, including but not limited to the imposition of social distancing measures, to control COVID-19"; f) Proclamation 9984 regarding COVID-19 issued by the Page 3 of 5 ORDER OF THE HEALTH OFFICER AND EMERGENCY REGULATIONS April 14, 2020 Item #7 Page 15 of 53 President of the United States on March 11, 2020; and g) Executive Order N-33-20 issued by the Governor of the State of California on March 19, 2020. 7. This Order is issued to prevent circumstances often present in gatherings that may exacerbate the spread of COVID-19, such as: 1) the increased likelihood that gatherings will attract people from a broad geographic area; 2) the prolonged time period in which large numbers of people are in close proximity; 3) the difficulty in tracing exposure when large numbers of people attend a single event or are at a single location; and 4) the inability to ensure that such persons follow adequate hygienic practices. 8. This Order comes after the release of substantial guidance from the Health Officer, the California Department of Public Health, the CDC, and other public health officials throughout the United States and around the world. 9. This Order comes after the CDC issued: "Interim Additional Guidance for Infection Prevention and Control for Patients with Suspected or Confirmed COVID-19 in Nursing Homes." IO.Pursuant to Health and Safety Code section 120175.5 (b) all governmental entities in the county shall take necessary measures within the governmental entity's control to ensure compliance with this Order and to disseminate this Order to venues or locations within the entity's jurisdiction where gatherings may occur. 11. Violation of this Order is subject to fine, imprisonment, or both. (California Health and Safety Code section 120295.) 12. To the exte_nt necessary, this Order may be enforced by the Sheriff or chiefs of police pursuant to Government Code sections 26602 and 41601 and Health and Safety Code section 101029. 13. Once this Order takes effect it shall supersede the Amended Order of the Health Officer and Emergency Regulations dated March 16, 2020 and subsequent addenda. IS SO ORDERED: Date: March 27, 2020 County of San Diego Page 4 of 5 ORDER OF THE HEALTH OFFICER AND EMERGENCY REGULATIONS April 14, 2020 Item #7 Page 16 of 53 program. The 1preservation of open fie di cultivated florkulture in the coastal zone was added as an a I Iowa b le use for ·the fiu nds IP er Cail ifo rn • a Assembly Bill No. 2659' a pp rnv,e d in 1996. The fo lowi1ng additional actions were taken wh·ch ultimate1l:y resulted in a transfe·roffunding fr,om the State s1atutoiry Fund to the cTrty's llocal coastal program fund ($2,890,000) an,d Flow-er !Fields preservation grant fund ($935,000): 1. The C1rty approved a separate and distinct Agricu tural Gonvers!ion Mitig;afon 1F,ee 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 f1rom the Statutory Fund to the city's local c,oastal program mif gation fund. 3. The Ci y Council suppo1rted the creation ,of an independent non-profit Carlsbad Flower ,Fi1eldls foundation per City Council Reso ution No. '96-231. (Ex'hihit 3) 4. The city began administering the Flower Feld Fund consistent with the agr,eement noted above and provided graRts for research and other proj,ects. associated wirth preservation of the IF'l!ower f iields at Carlsbad Ranch. [n 1996, the noted Agricultural Mitig,atiion F,ee fund was held by the State of California Coastal Conservancy and through the noted l,egislafon, $93.S,000 from the statutory Agricultural Mitigaf on fund was set aside for floriculture specific grants .. In 1996•; the City of Carlsbad al.so 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 fol,l!owed that with the creation in 1'9·97 of a special revenue fund to whi,c1h the funds wer,e de,postted ($935,000) upon receipt from the, State Co.a1sta Conservancy. On June 30, 1997 the city entered into a .20-ye,ar aigreement with the Calit:orn·a coastal Conservancy to ,administer grants su,p,porting florkulture research for the preservaiti:on of the !Flower Fiell1ds at Carlsbad Ranch with $935,000 in funds set-aside from the .statutory Agricuhural Mitigaf on :Fund. for 20 years city staff admini,stered floriiculture research grants to Carlsbad Ranch (,only grantee) using the accrued interest •only from the $9'35,000 that was placed into a special Flo,wer f •elds Specia'I Revenue Fund. On June 30, 2017 the agr,eement with the Conservancy expiired. Initially, the city understood that the $935,000 must be returned to the state statutory A_griculrtural Mitigation Fund account. However, staff r,esearch discovered' that in 1999, the state .and the dty mutually agreed that the $935,000 in grant funds should be considered 1part of the citys local Coastal Program (LCP) fund aind did not need to be returned to the sta't!e. The Gons.ervancy prnvided a final determination, in wriit1iing, that the $·9351.000 in grant funds may be retained by the city and the city may conti1nue to administer a floriculture grant program ,on its ,own without further contractual ove,rsight by the Co'llSe1rvan,cy; the co r,espondence from the Conservancy dat,ed December 15, 2017 is attached ais Exhibit 3 to this r,eport . . Allthough ·the State indicated that the funds coulld be deposited to, the dty's llocal agriculltural mitigafon fund, city staff is presenting opt1ions to the City Council as t,o the deposit and expenditure p,l.an for the $935,000. The options considered by staff are .. April 14, 2020 Item #7 Page 19 of 53 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. Complet e a process to identify another conservation non-profit organization or academic institution to endow with the $93S,OOO 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 staffs 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 t o 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. April 14, 2020 Item #7 Page 20 of 53 3. The ,Community & Economic Devel,opment Director ,or designee may approve, the grants, wiirth ar minimum grant 1requ·reme:nt o· $5,000 and a maximum grant amount per ye.air to not exceed $50,000. 4. Grant application must demonstrate that the project meets the purpo,se of the program to preserve or ensure the ongo,ing commercial viabil'ty o,f the Carllsbad Flower Fields. 5. The poll icy w·11 automati:cally expire at such time that the origin I $935,000 (and accrued interest) in the special set-aside fund are dep,l•eted; unless the -city Counc 'rl approves an additional appropriation to the special fond. 6. Staff will report annrua ly to the City Council on the grants that are approved, a,nd the purpose for those grants. The report willl incllude information on the balance of fonds avail! alb le for the next year. IFisc~I Ana1[vsis The Flower Fields Special Revenue Fund curr,ently has the $935,000 •originarl endowment funds (from the State Coastal Conservancy) plus unsp,ent interest earnings, wh·ch as of Oct. 15, 2018 was a,pprrox:mately $30,000. The set-aside fund w]II r,emain with the d•eposk of $935,000 phis int,erest. The City Coundl Policy willl direct the manner in which floriculture grants may be ap,p oved by the Community & Economic Development Oiredo or d,esignee to preserve the flo,wer fi.elds i11 Carlsbad. Depending on the number o,f gran·t r,eques.ts r,eceivedl each year,, the city s agr" cu litu ra I mitigation program tak,es a pp roxi mat1e ly 40-50 hours of staff tiime to ad min is.ter. Next Step,s If the staff ecommendation is adopted,. staff wiill continue the grant program which wiill fund future Hor° culltu re resea1rch. Envlronmental EvaluationjCEQA) Pursuant to Public Resources Code Section 21065 this action of creating a grant progr:am us·ing the balance of funds from t-he IIFlower Frieldls Sp,ecial Revenue Furn di plllus int,erest has n,o potential to cause either a dirrect physical chang,e rin the env,·r,onment, or a rreasonably foreseeable indirect physical change in the ,environment, and therefo e does not require environmental reV1i1ew. Public Notification This Item was noticed in accordance with The Ralph M. Brown .A.ct and wa1s available fo.r viewing at ~east 72 hours prior to the meeting date. Exhibits 1. City Council Resolution 2. IResorluti·On No,. 96-231 approving su1ppo,rt for the creation of a Carlsbad Flower Fields Grant Prrogr.am dedicart,ed to ensuring ·the long-term production of the flower ~1elds . 3. Correspondence from the Californiar Coastal! Conservancy regarding r,etention of the floricu lture gira nt funds by the city. April 14, 2020 Item #7 Page 21 of 53 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. April 14, 2020 Item #7 Page 22 of 53 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) April 14, 2020 Item #7 Page 23 of 53 ~ityof 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 April 14, 2020 Item #7 Page 24 of 53 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 of the 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 April 14, 2020 Item #7 Page 25 of 53 Exhibit 2 I 1 2 3 4 5 6 7 8 9, 10 n 12, 13 14 15 ']6 17 18, 19 I 20 21 22 23 24 25 I 26 27 28 • REOL ON O.JJi-231 A RBSOLUTIO OF THE CITY 00 CIL OF TIIE CITY OF CAR.tSBAD EXPRES IN SUPPORT FOR TIIE CREA TIO_ OF INDEPENDENT O -PROFIT CARLSBAD FLOWER EIBLDS EOUNP,AIION WHEREAS, the flower fields represent an important amenity to fu Carlsbad. Ranch project and to the City of Car]sbad; and \VHBREAS, the City is desitol!IS of supporting appropriate 1Jle8S'U[es: to· ensure the long term productivity of the flower fie]dls;, and WHEREAS, an independent. on-profit foundation dedicated to funding research and development projects related to improving the viability of local flowering crops, and to enhance the public experience i.11 and around the flow fields is an appropriate measw::e to assist in ensuring fue long term producti ity of 1h flower fi ]ds. 0 • rnEREFORE. BE IT RESOLVED< by the City Council of the · "ty ,o.f C-arlsba:d, California as follows: Th _ City Co®ci fotm.cally suppo,J/13 the c:.reation ofth Carlsbad Flcrw:er Fields Foundation dedicated to ensuring the lon,g term production of the .ilowe-r: fields. April 14, 2020 Item #7 Page 26 of 53 Exhibit 3 ~ Coastal Conse1vancy C a December 15, 2017 M{;lrisa Ll.ln.dlstedt Chief O~rating Officer ity o ,rlsbad 1635 Faraday Av nue Cmdsbad, CA 92008 Laureen Ryan Manag,erncmt. Analyst · ommunity & , conomic O lopnulrt City ofCadsbad '1635 Faraday venue Carlsbad, 1 A 920 Os: R ·~ •rding State Co.astal Conserva:ncy Grant Agreement 96-08 l Dear fs. Lun.dstedt and . Ryan· ln a letterto you dated October 11,201.7 I r,equested that the City of Carlsbad imbmM to the Conservancy $935,000 ro ,comply wi1'h the abov~referenced grant agreement, whic:h gr. nted 935,000 to the City o C.arJslbad to cs.1ablish an endowroe,nt fund for floric11lrure: research reJate:d top ervat'ion ofCarJsbad Ranch. The grant agreement includes a prov'ision requiring that, at l1e end ofnventy years (he ndowm,ent principal be r,emrncd to th.e C-0mservancy's Ca lsbad Agri ultt ral Mitigatiom. Account ("CAMA''), which w.as establish din the Sta -Coastal ons ·rvancy u11d pursuant to P1t.1bl,ic Resources Code section 3 0 l 71 . S. The provisi.on requ iri ll g the retu r.n of the pri_ncipall includes an exc-epti.011 to repaym ,·nt if the City has already nmimed the flllnd to the CA A. By email dated Nove:m'lbe.r 1; 20]7, Ro anne M11blmeister, Senior Accourntantforthi? City, pointed out ~hat ill the fate 1'990s:, when the Conservancy foi-warded lo the ity th09e non-MA ftgricultural fe.e that fie Conservancy had eollee d o.n b hal:fofth City for sev ral yeat II 011I;ervancy retained $9-35,000 of those 1!10111-CAMA fees: fo.rthe CAMA i.n light of tile grant agreement, 01ereby. in effeot r,erunf ng the gnm't funds 1,0 the CAMA. I hav r i w d the document yoil1 provided a: U asthe Consel"Vancy's files. 1 concur II i.th your conclusion · hat the CAMA has a'lready been credited the 935 000 that as granted by this grant agreeme111l. Therefore tha · grant agreement has been satisfied and no fu11he-ll' payment t,o t 1 011~~rvancy · required .. hank you foF bringing dt ora· accoun illlg information to our attention. 1515 lay Srn:er, I th Floor &kl;rnd, Cal ifomi;i 9-16 2-1-101 510·286-IOlS h ::511 ·28MH7 f Q 'I" 11 s t t e C o asta] Co :nserv ll C y April 14, 2020 Item #7 Page 28 of 53 Sheila Cobian From: Sent: To: Subject: Manager Internet Email Tuesday, April 14, 2020 1 :51 PM City Clerk; Sheila Cobian FW: 4 14 2020 Council Meeting Agenda Item #7 From: Carl Pope _ Sent: Tuesday, April 14, 2020 12:17 PM To: Council Internet Email <CityCouncil@carlsbadca.gov> Cc: Manager Internet Email <Manager@CarlsbadCA.gov> Subject: 4 14 2020 Council Meeting Agenda Item #7 All Receive -Agenda Item# 1 For the Information of the: TY COUNCIL oat CA ✓cc ~ CM_ ............-15CM(3-_ Dear Mayor and Council Members; regarding Item #7 -The Flower Fields Fund Grant Program, I find it odd that staff did not include any options other than to grant the full remaining balance of funds and to dissolve the program. Isn't granting the maximum of $50,000 allowed by current policy also an option? Also, if the full remaining amount is granted as requested, can it be stipulated that an additional grant fund not be requested or created using general fund moneys for a period of at least three years? Is this not a private for profit business that will be receiving this gift (this is not a loan, right?) of public funds? Is there any other business that will receive this large of a grant proportional to its operating expenses? Thank you for your consideration, Carl Pope CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe_ 1 Sheila Cobian Subject: FW: Flower Fields grant request From: John S. Wright Sent: Monday, April 13, 2020 1:37 PM To: City Clerk <Clerk@carlsbadca.gov> Subject: FW: Flower Fields grant request To cl arify, please read into the record: If the City gives the flower fields a grant, I'd suggest vouchers for the next few years for residents. It could be contracted in the form of pre-purchased tickets. Thank you, John Wright From: John S. Wright Sent: Monday, April 13, 2020 1:32 PM To: 'clerk@carlsbadca.gov' <cl erk@carlsbad ca.gov> Subject: Flower Fields grant request Hi If the City gives the flower fields a grant, I'd suggest vouchers for the next few years for residents. Think of it as pre- buying tickets. Thanks for the daily updates. I love Carlsbad government. Cheers, John Wright La Costa CAUTION: Do not open attachments or click on links unless you recognize the sender and know the content is safe. 1 Flower Fields Research Grant Program April 14, 2020 Item #7 Page 30 of 53 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. April 14, 2020 Item #7 Page 31 of 53 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 April 14, 2020 Item #7 Page 32 of 53 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 April 14, 2020 Item #7 Page 33 of 53 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 April 14, 2020 Item #7 Page 34 of 53 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. April 14, 2020 Item #7 Page 35 of 53 Carlsbad Flower Fields Grant Program Debbie Fountain, Community and Economic Development Director Laureen Ryan, Management Analyst November 13, 2018 April 14, 2020 Item #7 Page 36 of 53 Background •Resolution 96-231 •1997 20-year Agreement with the California Coastal Conservancy April 14, 2020 Item #7 Page 37 of 53 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 April 14, 2020 Item #7 Page 38 of 53 City Council Policy Overview •Purpose •Policy •Guidelines April 14, 2020 Item #7 Page 39 of 53 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. April 14, 2020 Item #7 Page 40 of 53 Summary of Projects •Alternative to Methyl Bromide •Herbicide Trials •Varietal Selection April 14, 2020 Item #7 Page 41 of 53 EXHIBIT 5 Jeff Murphy Community Development Director City of Carlsbad 1200 Carlsbad Village Drive Carlsbad 92008 RE: Request for Emergency Flower Fields Grant March 21, 2020 The purpose of this letter is to request an emergency grant of the remaining funds available in the Flower Fields Grant Program to support survival and continuation of the Flower Fields through the impact of the COVID-19 emergency. Our need is critical. As you are aware the emergency actions implemented to slow the spread of the COVID-19 virus hit at the very beginning of the Flower Fields Season (March 1-May 15) and required that we close the fields, essentially losing the entire revenue for the seasonal operations. In addition, the market for cut flowers has collapsed and all orders have been cancelled. While we have immediately reduced the costs associated with the visitor services, the bulk of the farming costs had been incurred in growing the crop to March 1. Some of these costs will continue as we preserve 2 fields against the relatively remote possibility that opening may be possible for the last two weeks-May 1-15. We are plowing under 2/3 of the fields to immediately reduce farming costs .. As summarized on the attached, even with the immediate steps to reduce costs, we are confronted with a loss of more than $2,700,000 through the end of this season (June 30) and the need to find another $2- 3,000,000 to be able to have a season next year. A grant received within the next 60-90 days, can provide the cash necessary to permit us to survive this year and to identify the financing we will require for the remaining loss from this year and operational costs to get us to the start of the season next year. Even though no one envisioned this kind of disaster, the support from the fund can help to carry out the City's objective of preserving and sustaining the fields. Please let us know if any additional information would be useful. Sincerely Yours, Christopher Calkins Christopher C. Calkins President 7220 AVENIDA ENCINAS SUITE 204 • CARLSBAD, CA 92011 TELEPHONE (760) 930-9123 FAX (760) 431-9020 WWW.THEFLOWERFIELDS.COM April 14, 2020 Item #7 Page 42 of 53 CB Ranch Enterprises Projected Profit and Loss Statement Fiscal Year Ending June 30, 2020 SALES Admissions/Tour Floral Sales Bulb Sales Bulb/Floral Cost of Sales Gross Margin Bulb/Floral Sales Other Sales Other Cost of Sales Gross Margin-Cost of Sales Total Gross Margin EXPENSES Retail Operations Marketing & Promotions General & Administrative Total Expenses Net Proceeds From Operations Before Interest, Depreciation & Amortization INTEREST Visitor Services Farming Term Loan Total Interest Net Proceeds from Operations After Interest $ 161,024 394,775 138,939 2,063,638 (1,529,924) 353,174 6,200 346,974 (1,021,926) 625,035 426,455 541,395 1,592,885 (2,614,811) 11,110 17,021 72,897 101,028 (2,715,839) April 14, 2020 Item #7 Page 43 of 53 EXHIBIT 6Jeff Murphy Director of Community Development City of Carlsbad 1635 Faraday Carlsbad 92008 Dear Mr. Murphy: RE: Description of Project Flower Fields Emergency Grant April 6, 2020 Pursuant to your request the following is submitted to further define the specific project for which we request emergency funding. We also include a brief article highlighting the impact of Covid-19 on the cut flower industry generally and the Flower Fields specifically. We initiated our request for an emergency grant with a summary of the entire economic needs and intended use for sustaining The Flower Fields™ through the impact of the Covid-19 Emergency. This request is made in the context of a $2.7million loss from the collapse of cut flower sales and prohibition on visitors. The project for which the grant will be used is support of the field floral farming. 1. Use of Funds. An emergency grant of $892,000 will support direct farm expenses set forth on the attached from March 1 to September 30, 2020 ($1,019,000). Combined with other funding we intend to obtain it will support the farming cycle until we begin to receive significant revenue from cut sales and visitors March 1, 2021. The Grant will permit farming operations to continue while additional operating funds are identified. With these funds, the Flower Fields operation can survive, and we believe thrive as the Covid-19 impact dissipates. 1. The costs reflect the farming activities necessary to complete this cycle, prepare the fields for the next farming cycle beginning in September with the main block planting. 2. Most of the expenses are self-explanatory with the maintenance of the remaining crop managed to provide some opportunity for sales of cut flowers in late April and May if distribution channels reopen. 3. Costs associated with harvesting bulbs are included. Bulb sales are generally uncertain, but if they are realized it will be in fall-winter with online/mail order sales so no proceeds will be available to support the farming operations during the project period. 7220 AVENIDA ENCINAS SUITE 204 • CARLSBAD, CA 92011 TELEPHONE (760) 930-9123 FAX (760) 431-9020 WWW.THEFLOWERFIELDS.COM April 14, 2020Item #7 Page 44 of 53 I A B C D E F G H I J K L M 1 CB RANCH ENTERPRISES 2 FLOWER FIELDS -2020 3 PROJECTED FARMING EXPENSES 4 5 Proj Proj Proj Proj Proj Proj Proj 3/2020 -9/2020 6 FARMING DIVISION Mar-20 Apr-20 Mav-20 Jun-20 Jul-20 Aua-20 Sep-20 Total 7 8 FARMING EXPENSES: 9 10 Pesticides/Fertilizer 15,200 15 200 15,200 10 200 22,600 31 ,000 122,900 232 300 11 Weedina Labor 12 600 12 100 12,100 3,600 900 2,000 3 500 46 800 12 Field Prep 1,200 1 900 6,800 16,900 3 900 11 ,200 17,000 58,900 13 lrriaate 5 000 5 000 4 700 3 800 8 600 8,900 11 ,200 47 200 14 Pest Control 3,300 2 900 1,200 700 100 800 900 9 900 15 Diaaina Labor 700 800 8,500 16,100 13,000 2,100 800 42,000 16 Gradina Labor 0 0 0 800 30 200 4,200 0 35 200 17 Seedina Labor 3,700 1 200 6 900 5 900 5 400 0 0 23 100 18 Plantina (400\ 0 0 2,200 0 0 2,000 3,800 19 Misc. Labor 19 000 19 000 8 800 11 900 14 300 12 200 9 100 94 300 20 Payroll Taxes 8 000 8 000 7 000 4400 7 300 3 100 3,400 41 ,200 21 Worker's Compensation 3 500 3 500 3 400 3 500 3 900 4 100 4 000 25 900 22 Emplovee Benefits 1 900 2 800 4,200 7,000 2 000 1,600 3,900 23 400 23 Supplies 6,000 7 900 9 000 9 800 1 300 6,500 10,400 50 900 24 Gas & Oil 100 2,000 2,000 2,000 1,800 3,500 3,300 14,700 25 Eauipment Leasina 3 600 3 600 7 000 4 900 4 000 3 600 3,600 30,300 26 Licenses & Taxes 0 2 400 0 0 2100 100 0 4,600 27 Repairs & Maintenance 2 000 8 000 3 700 4 800 1 300 3,400 2 100 25 300 28 Teleohone 0 300 100 200 100 0 200 900 29 Miscellaneous/General 2 700 700 400 200 200 500 800 5 500 30 Utilities 0 0 0 0 0 0 0 0 31 Water 14,000 0 25,000 10,800 6 700 19 900 21 ,100 97 500 32 Outside Services 1,200 3 000 3 600 1 900 1 800 2,600 1,900 16 000 33 Manac ement Fee 12 500 12 500 12,500 12 500 12 500 12,500 12,500 87 500 34 Rent 241 241 241 241 200 200 200 1 564 35 Other 0 0 0 0 0 0 0 0 36 37 Total Farming Expenses 116,041 113,041 142,341 134,341 144,200 134,000 234,800 1,018,764 38 39 40 41 James R. Bornemann 2020 Forecast -Farming costs March 2020 -Sept 2020 1 of 1 4/6/2020 10:16 AM April 14, 2020 Item #7 Page 46 of 53 CA Pub Res Code § 30171.5 (2017) (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 30170 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 ($10,000), 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 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, including 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) 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 interest accruing on that money in the special account shall be expended pursuant to subdivision (b). (d) Not less than 50 percent of collected and bonded mitigation fees shall be expended for the purpose specified in paragraph (1) of subdivision (b). (e) Other than to mitigate the agricultural conversion impacts for which they are collected, none of the 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. April 14, 2020 Item #7 Page 50 of 53 EXHIBIT 84/1/2020 21.202.060 Development of coastal agricultural land. Carlsbad Municipal Code Up Previous Next Main Search Print No Frames Title 21 ZONING ChaRter 21.202 COASTAL AGRICULTURE OVERLAY ZONE 21.202.060 Development of coastal agricultural land. Coastal agricultural lands may be converted from agricultural to urban uses pursuant to the following procedures: A. Zoning Approvals: 1. For property over one hundred acres in area a master plan shall be submitted and processed according to the provisions of Chapter 21_.3 8 of this code. The uses permitted pursuant to the master plan shall be those permitted by the provisions of the Carlsbad general plan and certified local coastal program in effect at the time the application is submitted. 2. For property less than one hundred acres in area, a planned development permit shall be submitted and processed pursuant to Chapter 21_.45 or 21_.47 of this code, whichever is applicable. The uses pennitted pursuant to the planned development permit and the development standards shall be as follows: Land Designation on Carlsbad General Plan Residential low density Residential low medium density Residential medium density Residential medium to high density Planned industrial Permitted Uses and Development Standards R-1 40000 R-1 10000 RD-M RD-M P-M (Map Y of the certified local coastal program shows existing permitted land use categories) B. Development Permitted Based Upon Mitigation of Lands Zoned Coastal Agricultural. A master plan or planned development permit for urban development of lands zoned coastal agriculture shall, in addition to complying with all aspects of the city's general plan, include the following items: 1. An enforceable, nonrevocable commitment by the property owner to preserve permanently one acre of prime agricultural land within the California coastal zone for each net impacted acre of non-prime coastal agricultural land in the local coastal program proposed for development. The preserved land shall be located in an area selected by the State Coastal Conservancy and approved by the city council. This enforceable commitment shall require, prior to issuance of a building permit, the permanent transfer or dedication of interest in the prime agricultural land to a grantee that is a local or state agency, or a tax exempt organization qualifying under Section 50l(c)(3) of the U.S. Internal Revenue Code. Grantees also shall be limited to organizations and agencies whose principal purposes are consistent with the preservation of agriculture. 2. The following documentation pertaining to the prime agricultural land outside the local coastal program that is being permanently preserved: a. Parties. Identification of the grantor and grantee (i.e., property owner, and government agency or tax exempt organization having a letter determination from the IRS documenting qualification per Section 50l(c)(3) of the Internal Revenue Code). b. Legal Description. A legal description of the prime agricultural lands being preserved. c. Type and Purpose of Easement. A clear statement defining the type and purpose of the easement or other form of property interest being used to protect prime agriculture. Acceptable interests include, but shall not be limited to, conservation easements, transfers in trust, common law easements, open space easements, restrictive covenants, equitable servitudes, fee ownership or any other permanent restriction approved by the city council. www.qcode.us/codes/carlsbad/view.php ?topic=21-21 _ 202-21 _ 202 _ 060&frames=on 1/3 April 14, 2020 Item #7 Page 51 of 53 4/1/2020 21.202.060 Development of coastal agricultural land. d. Statement of Intent. A statement of intent by the grantor shall be submitted declaring an intent to protect agricultural land through the creation of easements or other interests running with the property, and a declaration of intent by the grantee to honor such grantor intent in perpetuity. e. Documentation. Maps, reports, aerial photographs shall be incorporated into the easement showing evidence of the agricultural lands that grantor and grantee intend to preserve. f. Rights, Restrictions, Permitted Uses and Reservations. Grantee shall demonstrate the necessary authority to monitor and enforce compliance with terms of the agreement as the trustee or guardian. Restrictions shall prescribe all reasonable foreseeable activities that could be potentially harmful to conservation values. g. Executory Limitation. Provisions for forfeiture of the easement or interest by the grantee to another qualified organization should the grantee fail to maintain the land for agricultural use, shall be included. h. Assignment. Grantee shall agree to hold easements or interests for conservation purposes and guarantee that he or she will not transfer the easement except to an organization qualified to hold such interests under the relevant California and federal laws and the terms of this section. 1. Habendum Clause. The interest in property shall inure to the benefit of the grantee. All restrictions shall bind all subsequent purchasers or title holders of the restricted land and shall continue as a servitude running with the land in perpetuity. 3. Prior to building permit issuance, the property owner shall present to the city manager proof of dedication by grantor and acceptance by grantee of an appropriate interest in prime agricultural lands pursuant to subsection (B)(2) of this section. C. Urban Development of Lands Shown to be not Feasible for Continued or Renewed Agricultural Use. In lieu of the procedures established by subsection B or subsection D of this section property owners may complete an agricultural feasibility study prior to conversion of lands designated coastal agriculture. The purpose of the feasibility study shall be to determine, consistent with Section 30242 of the Coastal Act, if continued or renewed agriculture is feasible on the subject property. 1. An applicant or group of applicants may complete an agricultural feasibility analysis for one or any combination of the following study areas: a. All coastal agricultural lands in the local coastal program area; b. Individual feasibility analyses for each of five sub-units in the local coastal program (refer to Map x; located in the local coastal program land use plan); Approximate Acres Site II 377 275 109 120 301.38 Site III Site IV Lusk/Bankers Site Carltas Site c. An individual study for the Hunt property may be submitted as part of a submitted master plan for each of its sub-units; or d. Feasibility studies may be submitted for contiguous land holdings of one hundred acres or more in single ownership. 2. Feasibility studies submitted for the purpose of determining the viability of continued or renewed agriculture on coastal agricultural parcel(s) shall provide the following: a. Description of the farm unit under study including discussions of land capabilities, crop patterns, and minimum economic farm size. b. Investment cost analysis including cost ofland for agricultural purposes. c. Farm unit cash flow analysis (production costs, income, etc.). www.qcode.us/codes/carlsbad/view.php?topic=21-21 _ 202-21 _ 202 _ 060&frames=on 2/3 April 14, 2020 Item #7 Page 52 of 53 4/1/2020 21.202.060 Development of coastal agricultural land. d. Tax considerations relative to feasibility. e. Implications of future trends in water cost and availability, land and labor costs, and market competition. 3. Upon completion, the agricultural study shall be submitted to the city for review and approval concurrent with the filing ofa master plan or planned development permit. a. If the study finds that continued or renewed agriculture is feasible, the property owner has the choice of: (1) maintaining agricultural uses; or (2) proceeding with conversion and mitigation pursuant to the procedures set forth in subsection B of this section. b. If the feasibility study finds that continued or renewed agriculture is not feasible and city council concurs, the city shall review the submitted master plan or planned development permit on its merits and for consistency with the other provisions of this code and the local coastal program. If city council determines that the development is in conformance with all provisions of the code and the local coastal program, it may be approved without mitigation for conversion of agricultural land. The approved feasibility study and master plan or planned development permit approved by the city shall be prepared as a local coastal program amendment and submitted to the Coastal Commission for certification. The master plan, planned development permlt or coastal permit shall not be final unless the local coastal program amendment is approved by the Coastal Commission. D. Agricultural Conversion Mitigation Fee and Expenditure Plan. In lieu of the procedures established by subsection B or subsection C of this section, property may be converted to urban uses upon payment of an agricultural conversion mitigation fee. 1. This fee is separate and distinct from the mitigation fee established by Section 301717.5 of the Public Resources_Code, which applies to certain properties outside the Mello I and Mello II segments of the city's local coastal program, is collected and administered by the State Coastal Conservancy and has different expenditure priorities. 2. The amount of the fee shall be determined by the city council at the time it considers a coastal development permit for urban development of the property. The fee shall not be less than five thousand dollars nor more than ten thousand dollars per net converted acre of agricultural land and shall reflect the approximate cost of preserving prime agricultural land pursuant to subsection B of this section. The fees shall be paid prior to the issuance of building permits for the project. All mitigation fees collected under this section shall be deposited in the City of Carlsbad LCP agricultural mitigation fees fund and shall be expended by the City of Carlsbad subject to the recommendations of an advisory committee to be established by city council action. The advisory committee shall have city and coastal conservancy staff and community representation. The intent is not to establish priorities for program use, but rather to promote equitable distribution amongst the allowable uses outlined below. The advisory committee may also develop policies or procedures for the review ofrequests and the allocation of funds. The allowable uses for the agricultural mitigation fees are: a. Restoration of the coastal and lagoon environment including but not limited to acquisition, management and/or restoration involving wildlife habitat or open space preservation; b. Purchase and improvement of agricultural lands for continued agricultural production, or for the provision of research activities or ancillary uses necessary for the continued production of agriculture and/or aquaculture in the city's coastal zone, including, but not limited to, farm worker housing; c. Restoration of beaches for public use including, but not limited to local and regional sand replenishment programs, vertical and lateral beach access improvements, trails, and other beach-related improvements that enhance accessibility, and/or public use of beaches; and d. Improvements to existing or proposed lagoon nature centers. E. Site I Special Restrictions. Notwithstanding anything to the contrary in this chapter, Site I as shown on Map x shall not be converted to urban use except as specifically permitted by the local coastal program provisions for urban development of Site I. (Ord. NS-752 § 1, 2005; Ord. NS-711 § 1, 2004; Ord. NS-365 § 21, 1996) View the mobile version. www.qcode.us/codes/carlsbad/view.php?topic=21-21 _ 202-21 _ 202 _ 060&frames=on 3/3 April 14, 2020 Item #7 Page 53 of 53 Carlsbad Flower Field Fund Grant Program Emergency Fund Request Item #7 April 14, 2020 Jeff Murphy, Community Development Director Reason for the Request •State & County COVID-19 Executive Orders •Flower Fields closed to public March 9 •Expect to be closed entire flowering season (March 1 to May 15) 2 Reason for the Request •Letter requesting remaining funds ($891,708) •CB Ranch states closure will result in financial loss of $2.5M •Money will help alleviate severe financial impact and economic hardship 3 Reason for the Request •CB Ranch details how the funds will be spent •Other possible sources of funding: –Paycheck Protection SBA loans –Existing lines of credit –Operating lines of credit 4 City Council Policy #85 •Applies specifically to the Flower Fields •Sets guidelines for the fund program •Staff is authorized to award up to $50,000 per year •Considering the amount of the request, City Council must authorize 5 Findings •The actions described by CB Ranch qualify as a “project/activity” under CA Public Resources Code and Policy #85 •The actions described will help further City Council’s efforts to support the… –Preservation, enhancement and commercial viability of the Flower Fields 6 Recommendation •Authorize the request for emergency grant •If granted… –Rescind Policy 85 –Dissolve the program 7 Carlsbad Flower Field Fund Grant Program Emergency Fund Request April 14, 2020 Jeff Murphy, Community Development Director