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Home My WebLink AboutAGENDA REPORT 2019 0717 REG CCSA ITEM 10CCITY OF MOORPARK, CALIFORNIA City Council Meeting of July 17, 2019 ACTION A pproved Staff Recommendation, Including Adoption of Resolution No. 2019-3839. BY B.Garza C. Consider Establishing an Open Space Acquisition Fund (2019); and a Resolution Amending Fiscal Year (FY) 2018/19 Budget and Authorizing the Transfer of $2,171,306 from the Endowment Fund. Staff Recommendation: Approve Resolution No. 2019-____ authorizing the creation of Open Space Acquisition Fund and amending the FY 2018/19 Budget by appropriating $2,178,025.09 and authorizing the transfer of $2,178,025.09 from the Endowment Fund (2018) to the Open Space Acquisition Fund (2019). (ROLL CALL VOTE) (Staff: Irmina Lumbad) Item: 10.C. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Irmina Lumbad, Interim Finance Director DATE: 07/17/2019 Regular Meeting SUBJECT: Consider Establishing an Open Space Acquisition Fund (2019); and a Resolution Amending Fiscal Year 2018/19 Budget and Authorizing the Transfer of $2,171,306 from the Endowment Fund SUMMARY An Open Space Acquisition Fund (2019) is proposed to be established to manage in- lieu of open space fees and to ensure that receipts and interest earnings will be used solely for acquisition of open space. Between 2013 and 2014, the City collected $3,717,026 open space in-lieu fees from the development known as the Masters at Country Club Estates Tract 5463. These funds were deposited in the Endowment Fund (2018) and were used to fund Phase 2 of the Moorpark North-East Open Space Property Purchase Project. In September 2018, the City completed the acquisition of 129.81 acres for $1,539,000.91. The remaining $2,178,025.09 of the open space in-lieu fee is recommended to be transferred from the Endowment Fund (2018) to the Open Space Acquisition Fund (2019). BACKGROUND On August 4, 1986, City Council adopted the Open Space, Conservation and Recreation (OSCAR) element of the General Plan to maintain the overall quality of life for Moorpark residents by providing a comprehensive and long-term program to ensure that the City’s natural resources, open space and potential recreation areas are protected. Per Chapter 15.40 of the City’s Municipal Code, development agreements are prepared for proposed plans of development for specific properties. This assures the property owner that he can develop in accordance with the terms and conditions of said agreement and assures the city that the property will be developed in the manner agreed to specifically: Item: 10.C. 117 Honorable City Council 07/17/2019 Regular Meeting Page 2 • To achieve consistency with the general plan and any applicable specific plan; • To contribute to strengthening the planning process; • To encourage private participation in the planning process; and • To reduce the economic costs of development to the public. DISCUSSION Since 1995, the City Council has approved 29 development agreements. Certain agreements included provisions for dedication of areas for open space and/or an in- lieupayments for open space. The in-lieu payment may be expended by the City in its sole, unfettered discretion for open space acquisition and maintenance and habitat restoration and preservation. On July 18, 2007, the City Council adopted Ordinance No. 352 Approving Amendment No. 1 to Development Agreement No. 2004-01 (DA) between the City of Moorpark and Toll Land XX Limited Partnership for 43.04 acres north of Championship Drive and east of Grimes Canyon Road. Section 6.23 of the DA was amended to allow the City to accept in lieu of the purchase of the seventy-two acres of open space, Developer shall pay $2,680,000 to the City to be used in its sole and unfettered discretion for open space preservation purposes. This fee shall be adjusted annually, commencing January 1, 2018. This development became known as the Masters at Country Club Estates Tract 5463. The fees collected total $3,717,026 and were recorded in the Endowment Fund 2018: Receipt Date Reference Amount 6/4/2013 1st installment $670,000.00 4/30/2014 Escalator adjustment on first installment $254,866.00 9/9/2014 2nd and 3rd installment $1,861,440.00 12/19/2014 Final installment $930,720.00 Total Open Space In-Lieu Fees $3,717,026.00 This one-time revenues should not be used for on-going operational costs and should be accounted for separately from the Endowment Fund, which has been used to finance various capital projects such as construction of the Public Services Facilities, Police Services Center and streetlight acquisition from SCE to name a few. An Open Space Acquisition Fund (2019) is proposed to be established to manage in-lieu of open space fees and to ensure that receipts and interest earnings will be used solely for acquisition of open space. 118 Honorable City Council 07/17/2019 Regular Meeting Page 3 Over the years, the City has received 11 parcels or 241.96 acres of dedicated open space areas from various developers. Parcel No Acres Description 2 & 3 174.63 Meridian Hills Equestrian Staging Area 57 & 58 21.98 Virginia Colony Open Space (SDI) 1 6.06 Country Club Equestrian Staging Area 40; 41; 42 & 45 20.25 East Miller Parkway 47 4.77 Crawford Canyon 59 14.27 East of Happy Camp Canyon Road Total Acres 241.96 In addition, the City acquired 80 acres South of Tierra Rejada in 2011 for $1,982,429.38 using Endowment Fund 2018. This parcel was subsequently transferred to the Moorpark Watershed, Parks, Recreation and Conservation Authority, a joint power agreement between the City and the Santa Monica Mountains Conservancy. The annual maintenance costs of these parcels are funded by either the Open Space Maintenance Fund 2155 or the responsible landscape maintenance assessment district where these parcels are located. On October 18, 2017, the City Council approved the purchase of 125 acres of open space from Waste Management Inc., in the area of Moorpark College. The purchase was funded by a portion of the sustainability fee paid by the Simi Valley Landfill and Recycling Center to the County of Ventura. The final cost of 125 acres was $1,493,158.41. Then on June 20, 2018, the City Council approved the acquisition of Phase 2 of the Moorpark North-East Open Space Property Purchase Project located in the vicinity of Moorpark College and appropriated $1,545,720 from the Endowment Fund (2018), specifically using the open space in-lieu fees received from the Masters at Country Club Estates (tract 5463). The purchase of 129.81 acres was completed in September 2018 for total cost of $1,539,000.91. The remaining $2,178,025.09 is recommended to be transferred into a new fund Open Space Acquisition Fund (2019) to be used specifically for open space acquisition. FISCAL IMPACT A budget amendment of $2,178,025.09 will be required from Endowment Fund. At June 30, 2019, the Endowment fund is projected to have an estimated remaining fund balance of $10,363,000 which will be $2.178 million less due to the transfer out of the open space funds acquired from the Master at Country Club Estates project. 119 Honorable City Council 07/17/2019 Regular Meeting Page 4 STAFF RECOMMENDATION (ROLL CALL REQUIRED) Approve Resolution No. 2019-____ Authorizing the creation of Open Space Acquisition Fund and amending the Fiscal Year 2018/2019 budget by appropriating $2,178,025.09 and authorizing the transfer of $2,178,025.09 from the Endowment Fund (2018) to the Open Space Acquisition Fund (2019) Attachment: Resolution No. 2019-_____ 120 ATTACHMENT RESOLUTION NO. 2019-_____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AUTHORIZING THE CREATION OF AN OPEN SPACE ACQUISITION FUND (2019); AMENDING THE FISCAL YEAR 2018/2019 BUDGET BY APPROPRIATING $2,178,025.09; AND AUTHORIZING THE TRANSFER OF $2,178,025.09 FROM THE ENDOWMENT FUND (2018) TO THE OPEN SPACE ACQUISITION FUND (2019) WHEREAS, on August 4, 1986, City Council approved Resolution No. 86-330 adopting the Open Space, Conservation and Recreation Element of the General Plan; and WHEREAS, certain development agreements may require provisions for dedicating parcels of land for purposes of permanent open space preservation; or payment to the City of open space fees to be used solely for open space preservation purposes; and WHEREAS, staff report has been presented to City Council proposing to establish an “Open Space Acquisition” Fund (2019) to manage one-time revenues of open space fees and to generate investment income that would be used solely for acquisition of open space; and WHEREAS, the same staff report summarized the open space revenues posted to date in the Endowment Fund 2018 totaling $3,717,026.00 from development known as Masters at Country Club Estates Tract 5463; the approved expenditure of $1,539,000.91 for acquisition of Phase 2 of the Moorpark North-East Open Space Purchase Property Project; and the remaining balance of $2,178,025.09, which is recommended to be transferred to the Open Space Acquisition Fund (2019); and WHEREAS, on June 20, 2018, the City Council adopted the Operating and Capital Improvement Budget for FY 2018/19 which excludes any transfers from the Endowment Fund (2018); and WHEREAS, a budget amendment of $2,178,025.09 from the Endowment Fund (2018) is requested to account for the transfer of the remaining open space fees to the Open Space Acquisition Fund (2019); and WHEREAS, Exhibit A, attached hereto and made a part hereof, describes said budget amendment and the resultant impacts to the budget line item. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The creation of Open Space Acquisition Fund (2019), and designated solely for acquisition of open space, is hereby approved. 121 Resolution No. 2019-____ Page 2 SECTION 2. An aggregate budget amendment and fund transfer of $2,178,025.09, as more particularly described in Exhibit A, is hereby approved. SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 17th day of July, 2019. ________________________________ Janice S. Parvin, Mayor ATTEST: ____________________________________ Ky Spangler, City Clerk Attachments: Exhibit A 122 Resolution No. 2019-____ Page 3 Budget Amendment for Endowment Fund (2018) for Transfer of Remaining Open Space In-Lieu Fees FY 2018/2019 A. Fund Allocation Fund/Account No.Fund Description Amount 2018-000-00000-33990 Endowment Fund $2,178,025.09 2019-000-00000-33990 Open Space Acquisition Fund ($2,178,025.09) Total $0.00 B. Revenue Budget Allocation Fund/Account No.Current Budget Revision Amended Budget 2019-000-00000-49010 $0.00 $2,178,025.09 $2,178,025.09 Total $0.00 $2,178,025.09 $2,178,025.09 C. Expenditure Appropriation Budget Number Current Budget Revision Revised Budget 2018-000-00000-59010 $0.00 $2,178,025.09 $2,178,025.09 Total $0.00 $2,178,025.09 $2,178,025.09 D. Interfund Transfer Transfer FROM TO 2018-000-00000-59010 2019-000-00000-49010 $2,178,025.09 Total $2,178,025.09 Exhibit A 123