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HomeMy WebLinkAbout2013-12-03; City Council; Resolution 2013-276Exhibit 2 1 RESOLUTION NO. 2013-276 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING 3 THE MAYOR TO EXECUTE A PREPAYMENT AGREEMENT BETWEEN THE CITY OF CARLSBAD ^ AND CWV LA COSTA 49, LLC FOR THE FAIR OAKS 5 VALLEY PROJECT (CT 02-17) 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, the City of Carlsbad City Council has required that the funding of Rancho Santa Fe Road and Olivenhain Road (Project) must be guaranteed before any development takes place in the area bounded by Local Facilities Management Zones 11 and 12, and portions of Zone 6; and WHEREAS, the Council has directed city staff to proceed with the formation of a Community Facilities District (CFD No. 2) to finance the Project when needed; and WHEREAS, the Council is willing to consider alternative financing proposals during the period from the present to the formation date of CFD No. 2; and WHEREAS, the Council finds that the guarantee provisions related to the Project may be met through an interim financing program using an agreement between certain property owners and the city whereby the property owner agrees to prepay his/her fair share of costs associated with the Project; and WHEREAS, CVW La Costa 49, LLC intends to build 49 detached residential units in LFMZ 11 identified as CT 02-17; and WHEREAS, the City Engineer has determined that, due to the size of the residential development, there will be no major impact on the circulation system at the present time ifthe development is allowed to proceed; and, WHEREAS, the Council finds that CVW La Costa 49, LLC may enter into the attached Agreements to Pay Fair Share in satisfaction of their obligation under the Project financing conditions; and 1 2 3 4 5 6 7 8 9 // 10 // 11 // 12 // 13 // 14 // 15 // 16 // 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 // 28 Exhibit 2 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 Mayor is hereby authorized to enter into the attached agreements entitled "Petition, Waiver and Consent to Creation of a Community Facilities District and Agreement to Pay Fair Share Cost of Fair Oaks Valley (CT 02-17)" between the City of Carlsbad and CVW La Costa 49, LLC. 1 2 3 4 5 6 7 PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City of Carlsbad on the S''^ day of December 2013, by the following vote to wit: AYES: NOES: Council Members Hall, Packard, Wood, Blackburn, Douglas. None. ABSENT: None. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 ATTEST: fe^ARA ENGLESON/City Clerk EXHIBIT 3 PETITION, WAIVER, AND CONSENT TO CREATION OF A COMMUNITY FACILITIES DISTRICT AND AGREEMENT TO PAY FAIR SHARE COST OF FAIR OAKS VALLEY (CT 02-17). RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City Clerk CITYOF CARLSBAD 1200 Carlsbad Village Drive Carlsbad, CA 92008 Space Above This Line for Recorder's Usa Assessor Parcel No. 223-061-01-00; 223-061-02-00 PETITION. WAIVER AND CONSENT TO CREATION OF A COMMUNITY FACILITIES DISTRICT AND AGREEMENT TO PAY FAIR SHARE COST OF FAIR OAKS VALLEY (CT 02-17) ("AGREEMENT") WHEREAS, the undersigned Property Owner at this time Is processing for development with the City of Carlsbad (hereinafter referred to as "City") a development project known and identified as Fair Oaks Valley (CT 02-17), which consists of forty-nine (49) residential lots, (hereinafter refenred to as the "Project"); and, WHEREAS, the legal description for the Project is shown on Exhibit "A" attached hereto and incorporated herein by reference; and, WHEREAS, City has determined this Project is located within the boundaries of a proposed Community Facilities District known as Community Facilities District No. 2 - Rancho Santa Fe and Olivenhain Road (hereinafter referred to as "District"); and, WHEREAS, the District Is intended to be formed to finance those improvements generally described in Section 1 herein; and, WHEREAS, Property Owner desires to proceed with processing prior to the fomiation of District; and, WHEREAS, Condition No. 41 of Planning Commission Resolution No. 5954 dated August 17, 2005, recommending approval of Carisbad Tract Map No. 02-17 (CT 02-17), requires the developer to comply with all conditions and mitigation measures required as part of Zone 11 Local Facilities Management Plan; and, WHEREAS, pursuant to section 21.90.130 ofthe Municipal Code and pursuant to Local Facilities Management Plan, Zone 11, development permits can not be issued until the developer provides a financial guarantee towards its fair-share cost of improvements, which for Zone 11, includes segments of Rancho Santa Fe Road; and, WHEREAS, the City and Properiy Owner desire to agree to an altemative method of financing the improvements described in Section 1 herein that will allow Property Owner to discharge its fair share obligation for said improvements in lieu of, or in anticipation of, participation in District; and, WHEREAS, the City Council agrees that Property Owner, upon entering into this Agreement and upon payment of the fair share described herein, has met the requirement set forth in Condition No. 41 of Planning Commission Resolution No. 5954 dated August 17, 2005, and as referenced in City Council Resolution No. 2005-294, and further delineated in the Local Facilities Management Plan, Zone 11, to provide a financial guarantee forthe construction of those improvements described in Section 1 below; and, WHEREAS, Property Owner voluntarily enters into this Agreement with respect to the Project; and. 0 WHEREAS, the City Council has determined that due to the size of the proposed development, there will be no major impact on the circulation system at the present time if development of the Project is allowed to proceed with sufficient financial guarantees for the construction of Property Owner's fair share of the circulation improvements; NOW, THEREFORE, in consideration of proceeding with the processing of the Project, the undersigned Property Owner and City hereby agree and certify to the following: 1. Property Owner hereby petitions the City for the initiation of the proceedings for the fonnation of District which will cause the construction and installation and/or financing of the following improvements (hereinafter "Improvements") which are generally described as foliows: a) Rancho Santa Fe Road North Phase 1 (RSF No.1^ La Costa Avenue to east of Mahr Resen/oir b) Olivenhain Road Widening, and intersection improvements at Olivenhain and El Camino Real c) Rancho Santa Fe Road North Phase 2 (RSF No. 2^ Phase 1 End to Melrose Drive. d) Rancho Santa Fe Road South (RSF So.) (Assumes Secondarv Arterial Standard - Encinitas Citv Boundary to Olivenhain Road Full Improvements). 2. The cost of construction, engineering, environmental mitigations, legal and other incidental expenses as set forth in the Improvements Budget will be funded by the District, if formed, or by monies collected by the City for this purpose. 3. Property Owner acknowledges its right to notice of and participation in all phases of formation under the "Mello-Roos Community Facilities Act of 1982," expressly waives the proceedings required and all limitations contained In Titie 5, Division 2, Chapter 2.5 ofthe California Govemment Code and nonetheless with full knowledge of such rights, completely and forever waives such rights. Specifically, Property Owner hereby consents 3 to the proceedings and waives any right to protest the fonnation of the District and the ordering of the improvements under applicable California statutes and consent to and support fomnation of said District with respect to the Project. The City shall exclude the Project from the District boundary map if, prior to the adoption of a Resolution of Intention by the City Council to form said District, Property Owner has entered into this Agreement and has paid to the City all amounts due as described herein. 4. a) Property Owner agrees to pay to City, or provide, its fair share for the Improvements described in Section 1. b) Said payment, or provision, shall be made in the manner described in Exhibit "B", Rate and Method for Determining Fair Share Obligation Rancho Santa Fe and Olivenhain Road, which is incorporated herein by reference. c) The amount of Property Owner's fair share will be conclusively determined by the City Council in the manner described in Exhibit "B" attached hereto and incorporated herein by reference. d) Payment by Property Owner of its fair share of improvement costs as determined by City Council and set forth herein will satisfy their obligations for the construction of the Improvements described in Section 1, as required by Condition No. 41 of Planning Commission Resolution No. 5954 dated August 17, 2005, and as referenced In City Council Resolution No. 2005-294, and further delineated in the Local Facilities Management Plan, Zone 11, subject to adjustment as described in Section 9 herein. e) Altematively, if the District is formed and the Project is included within it, Property Owner's obligation to pay its fair share pursuant to the Agreement shall be satisfied upon payment of all taxes imposed, established and payable to said District. 5. Property Owner acknowledges that this Agreement to pay its fair share and participate in the financing of improvements is voluntary and that without this Agreement, Property Owner would be precluded from obtaining final map approvals or building and other development permits under the provisions of the General Plan, Chapter 21.90 of the Carisbad Municipal Code, applicable zone plan, finandng plans and related documents until a satisfactory financing program has been developed to fund the construction of the Improvements described in Section 1. 6. Property Owner hereby waives its right to challenge the amount, establishment or Imposition of said fair share and further waive any rights to pay said fair share under protest. 7. This Agreement does not affect, in any way whatsoever, the obligation of Property Owner to pay any other fees or assessments associated with Property Owner's development and/or to post improvement bonds as required by the City Engineer. Nor does this Agreement relieve Property Owner from providing other public facilities required under conditions placed upon the Project by the City. 8. Property Owner agrees that payment of its fair share is not a fee and waives any and ail rights to notice of or challenges to the establishment or imposition of said fair share as a fee under provisions of Government Code section 66000 et seq.. or any successor or related statutes. 9. a) If the District is formed subsequent to the payment by Property Owner of the fair share pursuant to this Agreement, Property Owner's financial obligation shall be recalculated using the taxing formula established for the District for the Improvements described In Paragraph 1. If that obligation is lower than the amount previously paid or provided by Property Owner to City, City shall refund any excess, in the manner described below. b) Any refund shall be made from funds available within District upon District fomnation and shall not be an obligation of City's General fund or other revenue sources. c) In the event that sufficient funds are not available from District's resources. Property Owner shall be reimbursed, as determined by the City Council, through the payment of one-time taxes or annual undeveloped land taxes to the District. The City is not required to establish an undeveloped land tax within the District to provide such refund. d) No reimbursement is required until the City Council determines that sufficient funds are available. Any refund to Property Owner shall not include interest. e) Any payment received by the City under this Agreement shall be deposited in a special interest bearing fund and may only be used to fund the construction of the facilities described herein. Upon the fomiation of a CFD to fund these same Improvements, any amount remaining In the special fund may be transferred to the CFD fund, at the discretion of the Administrative Sen/ices Director. 10. Upon completion of the Improvements, and recording of the Notice of Completion for the final phase of the Improvements, the City Engineer shall determine the total cost of all phases of the Improvements and all related work (Costs), and the Administrative Services Director shall detemnine the total amount of revenue including fees, taxes, interest earned on funds restricted to use only on the Improvements, and other sources of funds received by the City dedicated to paying for the construction of the Improvements (Revenues). The Administrative Services Director shall then compare the amount of Costs and Revenues to determine if there are any excess Revenues as described below. If excess Revenues of more than $100,000 exist, the Administrative Sen/ices Director shall provide refunds to all eligible parties of all excess Revenues in an amount and in the manner described below. If excess Revenues are equal to, or less than $100,000, the City shall retain these funds in a special fund to be used to finance street repair, maintenance, and landscaping within the Improvements. a) The total amount of excess Revenues shall be determined by deducting the amount of the project Costs from the available Revenues. Total project Costs shall include all costs to plan, design, construct, mitigate environmental impacts, inspect, and othenA/ise complete the project to the satisfaction of the City Engineer, including applicable charges for City staff services. Total Revenues shall include all monies held by the City dedicated exclusively to the construction of the Improvements including any fee revenues earmarked for the Project, CFD #2 taxes, applicable CFD #1 taxes, grants, and interest earned on restricted funds as detennined by the Administrative Sen/ices Director. b) The amount of the refund due to any party shall be based on the proportion of that party's payments under this Agreement based on its proportional share of Equivalent Dwelling Units constructed or to be constructed by that party, weighted as described in Exhibit B, divided by the total number of EDUs constructed or to be constructed within, and participating in, CFD #2 and/or CFD #2 agreements to prepay taxes. The amount of the refund shall be detennined by multiplying the proportional share computed above by the total amount of excess revenues. c) In order to share In the refund of any portion of the excess Revenues, the eligible party must request to be included in the distribution of funds. Such request must be made within 90 days after the City Council's acceptance of the Notice of Completion for the final phase of the Improvements. Each request must be accompanied by documents indicating clear titie to the refund unless the request is being made by the party who originally paid the taxes to the City under a prepayment Agreement or to CFD #2. d) The Administrative Services Director shall compute the amount of the refund due each party as described above. Funds may be disbursed to the eligible parties following Council approval of such refunds. e) If the City does not receive requests for refund from all eligible parties within the specified period, and all funds cannot be disbursed as provided by this section, any remaining funds shall be held in a special fund to be used to support road and roadway maintenance in and around the Improvements area, as determined to be necessary by the City Engineer, and approved by the City Council. f) As a courtesy to all interested parties, the City will maintain a file of those individuals or companies entitled to a refund, and will mail notices of refund availability to the names and addresses in this file following the City Council's acceptance of the final Notice of Completion. It is the eligible party's responsibility to notify the City if the right to any refunds under this section is assigned to another party, or if there is a change in name or address for the eligible party. The City takes no responsibility for the accuracy of the infonnation included in this file, and is under no obligation to locate persons or entities that are entitled to refunds. Failure to notify any party of the availability of excess Revenues shall not obligate the City in any way to extend or modify the above refund procedures. 11. Compliance with this Agreement will be accepted by City as an altemate to the method described in the current Local Facilities Management Plan for local facilities Management Zone 11 for financing the Improvements described in Paragraph 1. This Agreement does not require City to issue building permits or other development pennits or grant approvals or relieve Property Owner of the obligation to comply with all applicable provisions of law, including but not limited to Carisbad Municipal Code Titles 18, 19, 20 and 21. 12. Compliance with the provisions of this Agreement is a condition of all future discretionary approval for the Improvements. If Property Owner does not comply with the provisions of this Agreement, approval of the Project will not be consistent with the General Plan, the Growth Management Program, and the Local Facilities Management Plan, and all subsequent discretionary approvals and pennits for the Project may be withheld by City. 13. In addition, the City will not approve any pending final maps, issue grading, building or other development permits or take any discretionary action until the Property Owner has complied with the tenns of this Agreement due to be satisfied at the time such approval is required. 8 14. The City may, at its discretion, elect to pursue any remedy, legal or equitable against Property Owner and Property Owner's successors, heirs, assigns, and transferees ofthe Project to secure compliance with this Agreement. 15. City shall not, nor shall any officer or employee of City, be liable or responsible for any loss or damage incurred by Property Owner or any successor or assign of Property Owner, or by any occupant in Property Owner's buildings, as a result of the exercise of any remedies provkied to City In this Agreement. Property Owner agrees to indemnify City for any liabilities incurred by City as a result of City's exercise of these remedies. 16. This Agreement and the covenants contained herein shall be binding upon and inure to the benefit of the successors, heirs, assigns, and transferees of Property Owner with respect to the Project only and City, and shall run with the Project and create an equitable sen/itude upon the Project. 17. All notices provided for under this Agreement shall be in writing and shall be delivered in person or served by certified mail postage prepaid. Delivery of notice to Property Owner shall be presumed to have been made on the date of mailing regardless of receipt by Property Owner. Notices required to be given to Property Owner shall be addressed as follows: CWV La Costa 49. LLC Attn : Jack A. Hepworth 5927 Priestly Drive. Ste. 110 Carisbad, CA 92008 Notices to the City shall be delivered to: Administrative Sen/ices Director City of Carisbad 1635 Faraday Avenue Carlsbad. CA 92008 Each party shall notify the other Immediately of any change that would require any notice delivered hereunder to be directed to another party. 18. This Agreement shall be recorded but shall not create a lien or security interest in the property. 19. The undersigned Property Owner further states, under penalty of perjury, that they are Owner of the property as described herein on Exhibit "A", or an authorized agent of the Owner, and have the authority to execute this document, including the binding authorizations herein. (Remainder of Page Intentionally Left Blank) 10 ii? PROPERTY OWNER CWV La Costa 49 LLC, A Delaware Limited liability company CITY OF CARLSBAD, a municipal corporation of the State of California By: (sign (print name/title) ATTEST: (e-mail address) ^By: ^,^^J|^|NGLESON (sign here) (print name/title) (e-mail address) If required by City, proper notary acknowledgment of execution by contractor must be attached. If a Corporation. Agreement must be signed by one corporate officer from each ofthe following two groups. *Group A. **Group B. Chairman, Secretary, President, or Assistant Secretary, Vice-President CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CELIA A. BREWER. City Attorney AssiSterrfCity Attomey 11 1^ CALIFORNIA ALL-PURPOSE CERTIFICATE OF ACKNOWLEDGMENT State of Califomia County of Sgv^ On before me, (Here insert iame and title of the offi^) personally appeared who proved to me on the basis of satisfactory evidence to be the personfs-) whose name^s) is/afe subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/het#ie4r authorized capacity(i©&), and that by his/hef^^their signature(fr) on the instrument the person^), or the entity upon behalf of which the person^ acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws ofthe State ofCalifornia that the foregoing paragraph is true and correct. ijn iii" " jr^^Z MORGEN FRY f J r.nmmission # 1918442 C WITNESS my hand and official seal. Signature ofNotary Public MORGEN FRY Commission # 1918442 Notary Public - California | y San Diego County - Mv Comm. Expires Dec 24,20141 (Notary Seal) ADDITIONAL OPTIONAL INFORMATION DESCRff TION OF THE ATTACHED DOCUMENT (Title or description of attached document) (Title or description of attached document continued) Number of Pages Document Date (Additional information) CAPACITY CLAIMED BY THE SIGNJ • Individual (s) • Corporate Officer (Title) • Partneri • Attoiliey-in-Fact • Trustee(s) • Other INSTRUCTIONS FOR COMPLETING TfflS, Any acknowledgment completed in California must cormitr'^rbiage exactly as appears above in the notary section or a separate gpkmwledgment fonn must be properly completed and attached to that doofirt^t. The only exception is if a document is to be recorded outside of Cahfertmia. In such instances, any alternative acknowledgment verbiage as may be,>pnnted on such a document so long as the verbiage does not require the n^Ofy to do something that is illegal for a notary in Califomia (i.e. certifying tije^thorized capacity ofthe signer). Please check the document carefuUy for^^per notarial wording and attach this form if required. State mdC<Smty information must be the State and County where the document signa»(sfpersonally appeared before the notary public for acknowledgment. teof notarization must be the date that the signer(s) personally appeared which 'must also be the same date the acknowledgment is completed. The notary public must print his or her name as it appears within his or her commission followed by a comma and then your title (notary public). Print the name(s) of document signer(s) who personally appear at the time of notarization. Indicate the correct singular or plural forms by crossing off incorrect forms (i.e. hft/she/theyr is /ate) or circling the correct forms. Failure to correctly indicate this infonnation may lead to rejection of document recording. The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area permits, otherwise complete a different acknowledgment form. Signature of the notary public must match the signature on file with the office of the county clerk. • Additional information is not required but could help to ensure this acknowledgment is not misused or attached to a different document. • Indicate title or type of attached document, number of pages and date. • Indicate the capacity claimed by the signer. If the claimed capacity is a corporate officer, indicate the title (i.e. CEO, CFO, Secretary). Securely attach this document to the signed document 2008 Version CAPA vll. 10.07 800-873-9865 www.NotaryClasses.com CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT eiVILCODEf 1189 state of California County of ^^^g^ } On October 21. 2013before me, Date M.K. Stuckey, notary public Here Insert Name and Title of the Officer personally appeared Donald W. Fontana Name(s) of Signer(s) M. K.STUCKEY f Comnntsslon # 1933217 t Notary Public - Caiifornia i a San Diego County ^ 4 ^"ggg^ My Comm. Expires May 16.20151 who proved to me on the basis of satisfactory evidence to be the person(^) whose name^) Is/aKfe subscribed to the within instrument and acknowledged to me that he/^e/th^y executed the same in his/l^r/thi^r authorized capaclty(i^), and that by his/rt^r/trt^r signatureOj) on the instrument the personA^, or the entity upon behalf of which the person(4^ acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Place Notary Seal Above WITNESS my hand and official seal. Signature: AA J^ -^ 'Signature of Notary Publi* i Though the mformation below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capaclty(ies) Claimed by Signer(s) Signer's Name: • Corporate Officer — Title(s): • Individual • Partner — • Umited • General • Attorney in Fact • Trustee • Guardian or Conservator • Other: Signer Is Representing: FLIGHT tHlJMePRfpJT OF SIGNER Top of tinumb here Signer's Name: • Corporate Officer — Title(s): • Individual • Partner — • Limited • General • Attorney in Fact • Trustee • Guardian or Conservator • Other: Signer Is Representing: RIGHTTHUMBPRINT OFSIGNER Top of thumb here © 2010 fvlational Notary Association • NaiionalNotary.org • l-SOO-US NOTARY (1-800-876-6827) Item #5907 to MEMBERS' ACTION OF CALIFORNIA WEST COMMUNITIES, LLC, a California limited liability company The following action is taken by Robert H. Thome, Trustee of The Thome Family Tmst udt Dated August 31, 2004 ("Thorne Trust"); Gregory E. Harris, Tmstee of The Gregory And Leslie Harris Family Tmst u/d/t March 2, 2000 ("Harris Trust"); and Donald W. Fontana, an individual ("Fontana"), the sole Members of CALIFORNIA WEST COMMUNITIES, LLC, a Califomia limited liability company ("Company"), by unanimous written consent without a meeting. WHEREAS, the Company is acting as the Manager of CWV LA COSTA 49 LLC, a Delaware limited liability company ("CWV LA COSTA") and is authorized, pursuant to the terms ofthe Limited Liability Company Agreement of CWV LA COSTA, to execute and deliver the following documents, which are necessary to develop CWV LA COSTA's property: (a) Declaration of Restrictive Covenant, (b) Amendment ofthe Affordable Housing Agreement, (c) Fair Share Costs Agreement, (d) Covenant of Easement Landscape at Lots 37-41, (e) Covenant of Easement Private Storm Drain Easement, (f) Encroachment Agreement Private Storm Drain Cleanout, (g) Hold Harmless Agreement Panhandle Lots 47 & 52, (h) Street Tree Maintenance Agreement, and (i) Encroachment Agreement Private Street Lights (the "Project Documents"). WHEREAS, Thome Trust, Harris Trust, and Fontana desire to authorize and empower each of Thome Tmst, Harris Trust, and Fontana, acting unilaterally to execute and deliver the Project Documents for and on behalf of and in the name of Company. RESOLVED FURTHER, that each of Authorized Agents are authorized to perform all acts and do all things which he deems necessary or desirable to consummate the transactions contemplated by the Project Documents, with such modifications, amendments or further agreements, certificates and other instmments or documents as he, in his discretion, may deem necessary or desirable and in the best interest of the Company in his capacity as a Managing Member ofthe Company. The members of the Company are hereby directed to file this Member's Action with the minutes of the proceedings of the Company. Dated: October 2013 ^- Gregory Harris, trustee of the Gregory and Leslie Harris Family Tmst u/d/t March 2,2000, Member Robert H. Thome, Trustee of the Thome Family Trust udt Dated August 31,2004, Member Donald W.Tonlanp/an individual. Member It EXHIBIT "A" LEGAL DESCRIPTION Real Property in the City of Carlsbad, County of San Diego, State of California, more particularly described as foliows: A portion of the east half of lot 6 of Rancho Las Encinitas, in the City of Carisbad, County of San Diego, State of California, according to map thereof no. 848, filed in the office of the county recorder of San Diego County, June 27,1898 Assessor's parcel numbers: 223-061-01-00 223-061-02-00 (Remainder of Page Intentionally Left Blank) EXHIBIT "B" RATE AND METHOD FOR DETERMINING FAIR SHARE OBLIGATION RANCHO SANTA FE AND OLIVENHAIN ROADS The City Council shall use the following rate and method for determining the fair share obligation for funding the construction of Rancho Santa Fe and Olivenhain Roads due from property conditioned to participate in the financing of these facilities. This calculation is done as part of an Agreement titled PETITION, WAIVER AND CONSENT TO CREATION OF A COMMUNITY FACILITIES DISTRICT AND AGREEMENT TO PAY FAIR SHARE (Agreement) which has been voluntarily entered into by the City of Carisbad and certain property owner wishing to proceed with development of their property In advance of the creation of Community Facilities District No. 2 (CFD No. 2). It is the City and property owner intent to fonn CFD No. 2 to provide funding for those improvements described within the Agreement The following rate and method shall be used to detemiine the fair share and amount due from any property owner wishing to take advantage ofthis alternate funding mechanism. Basis for Cost Allocation The basis for allocation of costs to property conditioned with the financing of the improvements described in the Agreement shall be the Equivalent Dwelling Unit (EDU), which is defined per product classification as follows: Product Classification Equivalent Dwellina Units Single Family - Detached Units 1.0 EDU Single Family - Attached Units 0,8 EDU Multi-Family Units 0.6 EDU Churches 4.0 EDU per Acre Commercial/Industrial and other 10.0 EDU per Acre The number of each type of unit included in a development shall be detennined by the City Engineer based on the most recent final map submitted to the City for approval. The EDU determination for non-residential development shall be made by the City Engineer when such a determination is requested by the property owner. The City Engineer may request additional infonnation from any property owner as may be necessary to make his determination. The City Engineer is not required to make a detennination on the number of EDUs for any project until adequate information is available. The City Engineer's determination shall be submitted to the City Council in the table below. The Ci^ Council shall make the final determination of the number of EDUs to be used in computing the fair share obligation for any project. 2M Fair Share Amount and Method of Pavment The fair share amount, as previously determined by the City Council, was $10,250 for each EDU. On June 23, 2009, through Resolution No. 2009-154, City Council approved a partial refund of the fair share amount totaling $2,850 for each EDU to property owners who satisfied their fair share obligation prior to June 23, 2009. As a result, the fair share amount Is now assessed at $7,400 for each EDU. The City shall collect $7,400 for each EDU as detennined by the City Council. This amount shall be collected in one payment of $7,400 per EDU to be paid prior to Council consideration of final map approval as described below. 1) Prior to the approval of a final map by the City Council, the property Owner shall pay to the City an amount equal to the number of EDUs included in said final map, as detennined by the City Engineer, times $7,400. If the City Council detennined that the City Engineer's calculation of the number of EDUs included on the final map Is in error, the Council shall direct the City Engineer to amend his calculations and direct staff to bring the final map back for approval when such correction has taken place. Funds must be paid to the City before the final map will be scheduled for Council consideration. Computation of Fair Share Obligation Fair Oaks Valley CTNo. Type of Unit EDU Cost per EDU Amount Due CT 02-17 Single Family Detached Units 49.0 $7,400 $362,600 2) If the property owner has already obtained a final map for units conditioned with the financing of Rancho Santa Fe and Olivenhain Road, the property owner shall pay to the City the net amount due shown above prior to entering into this Agreement. 25