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HomeMy WebLinkAboutAGENDA REPORT 2017 0607 CCSA REG ITEM 10G ITEM 10.G. CITY OF EMSOORPARK,CALIFORNIA City,Council Meeting Of G - 7 aoa MOORPARK CITY COUNCIL =v:_ AGENDA REPORT TO: Honorable City Council FROM: Steven Kueny, City 9 Manager c� / DATE: May 26, 2017 (CC Meeting of 6/7/2017) SUBJECT: Consider Making a Determination that the $6,500.00 Loan to the Mountains Recreation Conservation Authority Has Been Satisfied by Other Services Rather than Payment BACKGROUND/DISCUSSION In 2009, the City advanced a total of $6,500.00 from the Endowment Fund to the Mountains Recreation and Conservation Authority (MRCA) to conduct a real property appraisal for the approximate 3,800 acres directly east of the City limits and north of SR 118. This was done in anticipation of possible State funding being authorized to acquire open space properties. The State funding was not authorized. The agreement to advance the funds required MRCA to repay the $6,500.00 without interest by June 30, 2012, or within 60 days of the State's reauthorization of MRCA's Proposition 84 Grant, whichever came first. As of May 26, 2017, the funds have not been repaid, and the City has a Loan Receivable for $6,500.00. The MRCA staff previously offered to provide services such as assisting the City with open space acquisition and grant applications in order to satisfy the loan. However, the City may deem the loan satisfied through other work and services already performed by the MRCA such as the services undertaken by MRCA to form the Moorpark Watershed, Parks, Recreation and Conservation Authority and file required forms regarding that entity's formation with required agencies. The Moorpark Watershed, Parks, Recreation and Conservation Authority (Moorpark Authority) has been created as a Joint Powers Agreement between the City and Santa Monica Mountains Conservancy (SMMC). There is now a formal collaborative effort on matters referenced in the Authority's name as well as open space acquisition and maintenance. The MRCA is also an Authority 221 Honorable City Council June 7, 2017 Page 2 established by the SMMC and other public agencies for similar purposes as the Moorpark Authority. The 2009 appraisal is the type of collaborative effort the City expects to participate in with the Moorpark Authority. Had the Moorpark Authority been formed in 2009 it most likely would have funded the appraisal with funding participation by the City since the subject property was primarily in the City's area of interest. It is recommended that the City forgive the $6,500.00 loan on the basis that the services provided by the MRCA in connection with the 2009 appraisal, other City space acquisition efforts including the purchase of 80 acres by the City in 2011 and formation of the Moorpark Authority are comparable services that have been performed and thus satisfy the value of the loan. FISCAL IMPACT The City currently has about $1,800,000.00 in the Endowment Fund designated for open space acquisition. The Loan forgiveness will result in $6,500.00 not being available for other open space acquisition activities funded by the Endowment Fund. STAFF RECOMMENDATION (Roll Call Vote) Determine that the $6,500.00 loan to the MRCA from City's Endowment Fund has been satisfied by the MRCA. 222