Town of Carmel Valley moves closer to vote as LAFCO softens demand for fees.

Following a barrage of criticism—including an angry letter from Rep. Sam Farr—the Local Agency Formation Commission has indicated that it won’t charge Carmel Valley incorporation proponents upwards of $660,000 in fees after all.

“As a former Chairman of LAFCO, I am surprised that your concern is not to move the application to the ballot, but to collect sizeable fees for the benefit of the agency’s budget,” said Farr in a July 24 letter to LAFCO, the agency that coordinates municipal authorities in Monterey County. “As a matter of fair government and good public policy, I urge LAFCO to exercise its discretion to waive fees and allow the proposed formation of the new Town of Carmel Valley to proceed to a vote.”

According to LAFCO estimates, the agency needs $159,250.48 to continue processing the application. If the commission—and then Carmel Valley voters—approve it, Carmel Valley will become its own town, and will no more be a part of unincorporated Monterey County.

But in the meantime, there are bills to pay. In addition to the processing fees, LAFCO also wants an indemnification agreement—intended to protect LAFCO, the county and cities against potential legal challenges from incorporation opponents—that includes a $500,000 deposit as a guarantee.