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HomeMy WebLinkAbout1995-09-05; City Council; 13290; La Costa Downs AD 92-01 Final Public HearingCl- OF CARLSBAD - JAB # /Z o?po 1 TIKE: MTG. g/05/95 DEPT. ENG ASSESSMENT DISTRICT NO. 92-1 IA COSTA DOWNS FINAL PUBUC HEARING 1 INEPT. HD,$ RECOMMENDED ACTION: 1. Adopt Resolution No. $?fidc Approving Contracts for Ownership of Utility Improvements. 2. Adopt Resolution No. $‘!ZJ& Confirming the Assessment, Ordering the Improvements Made and Approving the Engineer’s “Report”. 3. Adopt Resolution No. m&Y Authorizing Issuance of Bonds and Approving Forms of Bond Documents. 4. Adopt Resolution No. SJMAwarding the Contract for the Construction of Certain Public Works of Improvement. I ITEM EXPLANATION: This project is located just east of Carlsbad Boulevard and immediately north of the Lanikai Mobile Home Park. The purpose of this assessment district is to construct local streets and all utilities for 40 single-family residential lots recorded in 1927. Council previously adopted a Boundary map, declared its intention to order improvements and sell bonds, advertised for construction bids, and held the first public hearing. The results of the bids are as follows: Basile Construction !$503,954.61 TNT Grading 505983.50 Shaw Equipment Rentals 521,275.55 L. R. Hubbard Construction 533,643.30 R. E. Hazard 586,067.50 Erreca’s 611,573.OO The above results are after correcting math errors and are for Schedule A (base bid) plus add Alternative II. Add Aiternative I (waterline in Ponto Drive) will not be awarded as it is currently being installed by an adjacent developer to the north (Seapointe Resort). References on the low bidder have been checked and are excellent. The award of contract is subject to the sale of bonds. Construction is expected to begin in approximately 35-40 days. The City’s contractor will trench and provide conduits and substructures for all franchise utilities. San Diego Gas and Electric Company and MCI will charge the district for the cost of their cabling and contracts for this have been submitted for approval. Pacific Bell and Daniel’s Cablevision will not charge for their cabling work, but Pacific Bell has submitted a contract for a small reimbursement to the district. c - . Page 2 of Agenda Bill No. 4290 The City received an excellent bid for the contract work and the utility work was also less than the Engineer’s Estimate. Therefore, the confirmed assessment will be significantly less than that contained in the preliminary Engineer’s Report. The details are presented in the Engineer’s Report on file in the City Clerk’s Cffice and are summarized here: i.~~Tj::..ij.i:~‘.‘:‘i-.:‘~~;i~~.~~li. : .. :. ., :,: .: :,: ,,;: j ,:: ,,: : : :::..:.::::: .: i ;:: :. : : .::::i.i: ir’:..‘.:“:.:;::::~~~~‘~‘:~‘~,~: ‘:I ;i’;wNFJRMEC):f;;;.; : ‘:.j i:>: : :.j ::j :.: :.: :.: : ..-:: .: :...: :.,.: ,. ,. .:...:.:: ..,.,.,..: .,., :,,: ., :: .y.:. . . ,. Construction Bid $679,624 $503,955 Franchise Utilities 142,000 94,762 Construction Contingency (15%) 123,244 89,808 II Incidental Costs I ~~ 222,430 -1 202,486 II I I Bond Discount I 30,000 I 30,000 Credits (37,662) (37,662) .: .:. : .! .:. ‘~B~~~~~~~r;EssMENr~:~~~~~~:,~i~,- ~:~:;l~~:~~~~~~~~,~~~,~,~~:~~.~~~~.~:~~~~~~~~~~~~~~~:.~,~,~:~,: : . . . . :..:. : :. : :,.:. ::.: ::,.:. :..:. :: : ..: : : : . . . . .: / / : : : : All rights-of-way required for this project have been obtained. Portions of La Costa Boulevard not required for this project are in process of being vacated. This action will take place at a future public hearing. Owners of the lots in this proposed assessment district are eager for the district to be formed. The City has received petitions in favor of the district from 100% of the owners. The property within the proposed assessment district was appraised. The overall district value-to-lien ratio exceeds 4: 1, FISCAL IMPACT: The La Costa Downs Assessment District Engineer’s Report shows an estimated cost of $883,349 for construction and other expenses. Property owners will receive a credit on their assessment for previous contributions totaling $23,500 for the appraisal and assessment engineering services. All other costs will be funded from the sale of the 1911 Act Bonds. Property owners will have 30 days after the confirmation of assessments to pay all or part of their assessment in cash, thus saving financial costs. Bonds with a 15 year term will be sold for the remaining assessments. One bond will be issued for each of the 40 lots with the bond equal to the unpaid assessment on each lot. A lien in the amount of the unpaid assessment is also placed on each parcel. Property owners will pay the principal and interest on their property’s bond on a bi-annual basis. Although the interest rate will not be known until the bonds are issued, a property - Page 3 of Agenda Bill No. ~~ 290 owner could expect to make annual debt service payments of approximately $3,100 at 9% interest rate. Delinquent property owner assessments for bond payments are subject to a 2% penalty per month. After issuance of the bonds, the General Fund will receive $30,000 for administrative costs associated with the assessment district, The funding will reimburse the Cii for staff time incurred with the district and bond issue. The General Fund will also receive payment for plan check fees, construction inspection, and other costs related to the district after the bonds are sold. EXHIBITS: 1. 2. 3. Location map. Order of Procedure. Resolution No. pm&@ A pproving Contracts for Ownership of Utility Improvements (copy of contracts attached).. 4. 5. 6. Resolution No. S-J&~ Confirming the Assessment, Ordering the Improvements Made and Approving the Engineer’s “Report”. Resolution No. m&7 Authorizing Issuance of Bonds and Approving Form of Bond Documents (copy of draft Bond Contract and Bond Indenture attached). Resolution No. s-&&Awarding the Contract for the Construction of Certain Public Works of Improvement. 7. Engineer’s Report (on file in the City Clerk’s office). 0. Assessment Diagram (on file in the City Clerk’s office). 9. Plans, Specifications and Estimate (on file in the Engineering Department). 10. Construction Bids (on file in the Engineering Department). LANIKAI LANE MOBILE HOME PARK -pRo#)BEb- mamcrBoc;NMRy L/r CONNECT8 LOT8 UNOER COMMON OWNER8HlP City of CuisW ORDER OF PROCEDURE CITY OF CARLSBAD ASSESSMENT DISTRICT NO. 92-1 (LA COSTA DOWNS) DATE OF SECOND PUBLIC HEARING: SEPTEMBER 5, 1995 PUBLIC HEARING HEARING REQUIRED PURSUANT TO THE “MUNICIPAL FOR CONSIDERATION: IMPROVEMENT ACT OF 1913” MAYOR: Announce that this is the time and place fixed for the second of two (2) public hearings relating to the proceedings for the formation of ASSESSMENT DISTRICT NO. 92-1 (LA COSTA DOWNS). CITY CLERK: Announce that notice of the Public Hearings has been given as required by law and a Certificate of Compliance is on file certifying the following: - Mailing notice to property owners within the District - Filing proposed boundary map in office of County Recorder - Publication of Notice Inviting Sealed Bids STAFF: MAYOR: - Explain purpose for Public Hearing. - Describe improvements and boundaries of District. - Present and summarize “Report”. - Presentation of utility agreements. - Explain method and formula of assessment spread. - Report on number of protests (% of area) received. d General summary. END OF STAFF REPORT - OPEN FOR PUBLIC DISCUSSION ASK EACH SPEAKER TO IDENTIFY THEMSELVES AND THEIR PROPERTY. First, ask to hear from anyone who wishes to speak against the improvement, the Assessment District, or the method of spread. Then, ask to hear from anyone who wishes to speak in favor of the proceedings. STAFF: - Report on final percentage of protests (Oh of area) received. - Presentation of any proposed changes or modifications to the Engineer’s “Report” and the Assessment District. CITY COUNCIL: Discussion. MAYOR: Declare Public Hearing CLOSED. EXHIBIT 2 T _- * . ORDEROFPROCEDURE CITY OF CARLSBAD ASSESSMENT DISTRICT NO. 92-1 (IA COSTA DOWNS) PAGE TWO DATE OF PUBLIC HEARING: - SEPTEMBER 5, 1995 CITY COUNCIL: CITY COUNCIL: CITY COUNCIL: CITY COUNCIL: IF THE LEGISLATIVE BODY WISHES TO PROCEED: Adopt RESOLUTION APPROVING UTILITY CONTRACTS: Formal action approving contracts for the ownership of certain utility improvements. Adopt RESOLUTION CONFIRMING ASSESSMENTS: Formal action ordering the improvements, confirming the assessments and approving the final Engineer’s “Report”. Adopt RESOLUTION AUTHORIZING ISSUANCE OF BONDS: This Resolution authorizes the issuance of bonds to finance the improvements. Adopt RESOLUTION AWARDING CONSTRUCTION CONTRACT: The adoption of this Resolution awards the construction contract to the lowest responsible bidder. l ** 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 RESOLUTION NO. 95-245 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA,APPROVING CONTRACTS FOR OWNERSHIP OF UTILITY IMPROVEMENTS WHEREAS, the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA, has, pursuant to the provisions of the tlMunicipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, by adoption of its Resolution of Intention, declared its intention to order the installation of certain works of improvement, together with appurtenances, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 92-1 (LA COSTA DOWNS) (hereinafter referred to as the "Assessment DistrictI'); and, WHEREAS, Streets and Highways Code Section 10110 specifies that before ordering any improvements which are to be owned, managed or controlled by another public agency or public utility, an agreement is required setting forth the terms and conditions of the installation, ownership, management and financing of the improvements; and, WHEREAS, at this time, contracts have been submitted and reviewed pursuant to the authorization of Section 10110 of said Streets and Highways Code. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That the agreements, herewith submitted, relating to the installation of certain utility improvement facilities that will be (a) under the ownership, management and 1 2 3 4 5 6 7 8 9 1c 11 12 13 14 15 1t 15 If 1: 2c 21 2: 2: 24 25 2E 27 28 i r control of another public agency or regulated public utility, and (b) the costs for those facilities will be assessed to benefiting properties, as submitted, are hereby approved. For particulars as to the specific improvements and related ownership, reference is made to the t'Reporttt of the Engineer as on file, and for all particulars reference is made copies of said agreements also on file and open for public inspection. SECTION 3. The Agreements, as approved, are hereby authorized for execution by the Mayor and City Clerk. Immediately upon execution, conformed copies of said Agreements shall be transmitted to the offices of the respective public agency or utility company, together with a copy of this Resolution. APPROVED and ADOPTED this 5th dday/?of/ S I 1995. ATTEST: a&& A. CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA CITY OF CARLSBAD STATE OF CALIFORNIA . STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CARLSBAD I, ALETHA RAUTENKRANZ, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 95-245 , was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, 7 II and attested by the City Clerk, all at the regular meeting of 8 9 10 11 12 13 said City Council held on the 5th day of September I 1995, and that the same was passed and adopted by the following vote: AYES: COUNCIL MEMBERS Lewis, Nygaard, Finnila, Hall NOES: COUNCIL MEMBERS ABSENT: COUNCIL MEMBERS Kulchin 14 II ABSTAIN: COUNCIL MEMBERS EXECUTED this 7th day of September , 1995, at Carlsbad, California. 15 16 17 18 CITY CLERK 19 CITY OF CARLSBAD STATE OF CALIFORNIA 20 21 22 23 24 25 26 27 28 RESOLUTION NO. g5-246 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, CONFIRMING THE ASSESSMENT, ORDERING THE IMPROVEMENTS MADE, TOGETHER WITH APPURTENANCES, AND APPROVING THE ENGINEER'S "REPORT" WHEREAS, the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA, has previously adopted its Resolution of Intention and initiated proceedings for the installation of certain public works of improvement, together with appurtenances and appurtenant work, including acquisition where appropriate, in a special assessment district pursuant to the terms and provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO. 92-l (LA COSTA DOWNS)(hereinafter referred to as the "Assessment District"); and, WHEREAS, pursuant to said Resolution of Intention, a "Report", as therein provided, was presented, considered and approved; and, WHEREAS, said "Report", as preliminarily approved, contained all the matters and items called for by law and as pursuant to the provisions of said "Municipal Improvement Act of 1913", including the following: 1. Plans and specifications of the proposed improvements; 2. Estimate of cost; 3. Diagram of Assessment District; 4. An assessment according to benefits; 5. A description of the works of improvement; and, WHEREAS, notices of said hearing were regularly mailed in 1 the time, form and manner required by law and as evidenced by 2 affidavits on file1 with the transcript of these proceedings, 3 and at this time all protests have been heard and considered, 4 and a full hearing has been given, all in the manner provided by 5 law; and, 6 WHEREAS, at this time it is determined that the owners of 7 one-half (l/2) of the area assessed for the cost of the project 8 did not file written protests against the said proposed 9 improvements and acquisition where appropriate, and this 10 legislative body did, after providing a full hearing, overrule 11 and deny all protests and objections; and, 12 WHEREAS, this legislative body is now satisfied with the 13 assessment and all matters contained in the ttReporttt as now 14 updated and submitted. 15 NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: 16 RECITALS 17 SECTION 1. That the above recitals are all true and 18 correct. I/ 19 PROTESTS 20 SECTION 2. That all protests and objections of every kind 21 and nature be, and the same hereby are, overruled and denied, 22 and it is further determined that said protests and objections 23 are made by the owners of less than one-half of the area of 24 property to be assessed for said improvements within said District. 1 BENEFITS RECEIVED 2 SECTION 3. That it is hereby determined that all properties 3 within the boundaries of the Assessment District receive a local 4 and direct benefit from the works of improvement as proposed for 5 said Assessment District, and it is hereby further determined 6 and declared that all assessable costs and expenses have been 7 apportioned and spread over the properties within the boundaries 8 of the Assessment District in direct proportion to the benefits 9 received thereby. 10 PUBLIC INTEREST AND CONVENIENCE 11 SECTION 4. That the public interest and convenience require 12 the proposed improvements to be made, and therefore it is hereby 13 ordered that the work be done and improvements be made, together 14 with appurtenances and appurtenant work in connection therewith, 15 including acquisition where appropriate, in said Assessment 16 District, as set forth in the Resolution of Intention previously 17 adopted and as set forth in the "Report" presented and 18 considered, and as now approved. 19 ENGINEER'S "REPORT" 20 SECTION 5. That the "Report" of the Engineer, as now 21 submitted, updated and amended as appropriate, is hereby 22 approved and said "Report" shall stand as the "Report" for all 23 future proceedings for this Assessment District. 24 CONFIRMATION OF ASSESSMENT 25 SECTION 6. That the assessments, as now filed in the 26 Engineer's "Report" and diagram for the improvements, together 27 with appurtenances and appurtenant work in connection therewith, 28 including acquisition where appropriate, are hereby confirmed. I . .- . 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 The assessments contained in the final Engineer's ttReporttt are hereby levied and approved as follows: A. The final assessments to represent the costs and expenses to finance the public works of improvement, as ;authorized for these proceedings. B. The annual assessment to pay for administrative costs in an amount not to exceed the maximum annual assessment as set forth in said ttReporttt. RECORDATION OF ASSESSMENT SECTION 8. That the City Clerk shall forthwith deliver to the Superintendent of Streets the assessment, together with the diagram attached thereto and made a part thereof, as confirmed, with'his certificate of such confirmation attached and the date thereof; and that said Superintendent of Streets shall then immediately record said diagram and assessment in his Office in a suitable book to be kept for that purpose and attach thereto his certificate of the date of such recording. COUNTY RECORDER NOTICE SECTION 9. Upon confirmation of the assessments and recordation of the assessment roll and diagram, a certified copy of the assessment diagram shall be immediately filed in the Office of the County Recorder. Immediately thereafter, a copy of the notice of assessment shall be recorded in the Office of the County Recorder in the manner and form as set forth by law and specifically Section 3114 of the Streets and Highways Code of the State of California. MAILED NOTICE SECTION 10. That upon recordation of the diagram and assessment, a notice shall be mailed to each owner of real property within the Assessment District at his last known address, as said address appears on the last equalized tax rolls of the County, said notice to set forth a statement containing a designation of the property assessed, as well as the amount of the final confirmed assessment, and further indicating that bonds will be issued pursuant to the "Improvement Act of 1911". PUBLICATION SECTION 11. That notice shall also be given by publication in the designated legal newspaper, said notice setting forth the amount of the final assessment and indicating that said assessment is now due and payable, and further indicating that if said assessment is not paid within the allowed thirty (30) day cash collection period, bonds shall be issued as authorized by law. No publication shall be required if all (100%) of the assessed property owners have timely filed a properly executed waiver of the cash collection period. ASSESSMENT COLLECTION AND BOND SERVICE SECTION 12. TheTreasurer is hereby authorized anddirected, in accordance with the applicable provisions of "Improvement Act of 1911", being Division 7 of the Streets and Highways Code of the State of California, to perform the following: A. To prepare and mail the appropriate semi- annual billing slips to all property owners within the 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 - boundaries of the Assessment District advising them of their unpaid balance and the date for the annual submittal. B. Upon collection of all monies, to timely transmit payment to all registered bondholders at the respective name and addresses as set forth in the bond register on file in the Office of the Treasurer. C. To prepare a BOND REGISTER book setting forth names and addresses of bondholders and further setting forth all information regarding collection of and payment on all unpaid special assessments. ASSESSMENT DISTRICT FUNDS SECTION 13. The Treasurer is hereby authorized atthistime, if not previously done, to establish the following funds as necessary for the payment of costs and expenses and administration of the proceedings for this Assessment District: A. IMPROVEMENT FUND: All monies received from cash collections, proceeds from the sale of bonds and applicable contributions shall be placed into the Improvement Fund. B. REDEMPTION FUND: All monies received from the payment of assessments shall be placed in the Redemption Fund. For particulars as to the administration and handling of the Funds, the specific terms and conditions shall be set forth in a Bond Indenture to be approved by the subsequent adoption of a Resolution Authorizing the Issuance of Bonds. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1e li 18 11 2( 21 2: 21 2i 21 2i 2; 21 APPROVED and ADOPTED this 1995. CITY OF CARLSBA6 STATE OF CALIFORNIA ATTEST: cl-Gdd!+ CITY CLERK ' CITY OF CARLSBAD STATE OF CALIFORNIA * . t 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 STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CARLSBAD I, ALETHA RAUTENKRANZ, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 95-246 , was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 5th day of September I 1995, and that the same was passed and adopted by the following vote: AYES: COUNCIL MEMBERS Lewis, Nygaard, Finnila, Hall NOES: COUNCIL MEMBERS ABSENT: COUNCIL MEMBERS Kulchin ABSTAIN: COUNCIL MEMBERS EXECUTED this 7th day of September , 1995, at Carlsbad, California. . - CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA RESOLUTION NO. 95-247 2 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING ISSUANCE OF BONDS AND APPROVING 3 FORMS OF BOND DOCUMENTS FOR A SPECIAL ASSESSMENT DISTRICT 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 WHEREAS, the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA, is conducting proceedings for the installation of certain public improvements in a special assessment district pursuant to the terms and provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO. 92-l (LA COSTA DOWNS) (hereinafter referred to as the I'Assessment District8'); and, WHEREAS, this legislative body has previously declared in its Resolution of Intention to issue bonds to finance said improvements, said bonds to issue pursuant to the terms and provisions of the "Improvement Act of 1911", being Division 7 of said Code; and, WHEREAS, at this time this legislative body is desirous to set forth the general terms and conditions relating to the authorization, issuance and administration of said bonds; and, WHEREAS, there has been presented, considered and is ready for approval a bond indenture setting forth the terms and conditions relating to the issuance and sale of bonds; and, WHEREAS, there has been presented for consideration by this legislative body a form of Bond Purchase Contract authorizing the sale of bonds to Stone & Youngberg, the designated underwriter; and, 28 . . . ( 1 WHEREAS, this legislative body hereby determines that the 2 unpaid assessments shall be specifically in the amount as shown 3 and set forth in the Certificate of Paid and Unpaid Assessments 4 as certified by and on file with the Treasurer, and for 5 particulars as to the amount of said unpaid assessments, said 6 Certificate and list shall control and govern. 7 NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: 8 RECITALS 9 SECTION 1. That the above recitals are true and correct. 10 BOND AUTHORIZATION 11 SECTION 2. That this legislative body does authorize the 12 issuance of special assessment bonds in an aggregate principal 13 amount not to exceed the aggregate principal amount of the 14 unpaid assessments pursuant to the terms and provisions of the 15 "Improvement Act of 1911", being Division 7 of the Streets and 16 Highways Code of the State of California, and also pursuant to 17 the specific terms and conditions as set forth in the Bond 18 Indenture presented herein. 19 BOND INDENTURE 20 SECTION 3. That the Bond Indenture is approved substantially 21 in the form presented herein. The Finance Director is hereby 22 authorized and directed for and on behalf of the City to execute 23 the Bond Indenture with such additions thereto or changes 24 therein as may be approved by the Finance Director, subject to 25 the review of Bond Counsel, such approval by the Finance 26 Director to be conclusively evidenced by the execution and 27 delivery thereof. A copy of said Bond Indenture shall be kept 28 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 Zen file with the transcript of these proceedings and open for I public inspection. BOND PURCHASE CONTRACT SECTION 4. That the Bond Purchase Contract as submitted by Stone & Youngberg, the designated underwriter, is hereby approved substantially in the form presented herein. The Finance Director is hereby authorized and directed for and on behalf of 'the City to evidence the City's acceptance of the terms and provisions of the Bond Purchase Contract in the form presented 'to the City Council at this meeting, with such changes therein as are approved by the Finance Director, such approval by the Finance Director to be conclusively evidenced by the execution and delivery thereof; provided, however, the Finance Director shall execute the Bond Purchase Contract only if the aggregate principal amount of the Bonds is equal to the unpaid assessments within the Assessment District, the underwriter's discount does not exceed $30,000.00 and the interest rate on the Bonds shall not exceed nine percent (9%) per annum. FINAL BOND DELIVERY SECTION 5. No further action will be required by this legislative body if the bonds are priced, sold and delivered on or prior to December 31, 1995. FINAL ASSESSMENTS SECTION 6. That the Certificate of Paid and Unpaid Assessments, as certified by the Treasurer, shall remain on file in that office and be open for public inspection for all particulars as it relates to the amount of unpaid assessments to secure bonds for this Assessment District. 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 1995. 4TTEST: OTHER ACTS SECTION 7. All actions heretofore taken by the officers and agents of the City with respect to the sale and issuance of the bonds are hereby approved, confirmed and ratified, and the Finance Director and any and all other officers of the City are hereby authorized and directed, for and in the name and on behalf of the City, to do any and all things and take any and all actions relating to the execution and delivery of any and all certificates, requisitions, agreements and other documents which they may deem necessary or advisable in order to zonsummate the lawful issuance and delivery of the bonds in accordance with this resolution. APPROVED and ADOPTED this CITY OF CARLSBAD STATE OF CALIFORNIA CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA 1 STATE OF CALIFORNIA COUNTY OF SAN DIEGO 2 CITY OF CARLSBAD 3 I, ALETHA RAUTENKRANZ, CITY CLERK of the CITY OF CARLSBAD, 4 CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, 5 II being Resolution No. 95-247 , was duly passed, approved and 6 -1ladopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of 8 Ilsaid City Council held on the 5th day of September I 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1995, and that the same was passed and adopted by the following vote: AYES: COUNCIL MEMBERS Lewis, Nygaard, Finnila, Hall NOES: COUNCIL MEMBERS ABSENT: COUNCIL MEMBERS Kulchin ABSTAIN: COUNCIL MEMBERS EXECUTED this 7th day of September , 1995, at Carlsbad, California. . CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA 1 f c c 4 r c t c 1 I ! l( 11 1: 1: 14 1E If 1; 18 l! 2( 21 2: 21 24 2: 2t 2; 2r RESOLUTION NO. 95-248 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AWARDING THE CONTRACT FOR THE CONSTRUCTION OF CERTAIN PUBLIC WORKS OF IMPROVEMENT IN A SPECIAL ASSESSMENT DISTRICT WHEREAS, the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA, did publicly open, examine and declare all sealed proposals or bids for doing certain of the works of improvement as set forth and shown on the plans and specifications which were approved for proceedings in a special assessment district, said proceedings being taken pursuant to the provisions of the "Municipal Improvement Act of 1913ff, being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO. 92-l (LA COSTA DOWNS) (hereinafter referred to as the "Assessment District"). NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. That the above recitals are all true and correct. SECTION 2. That this legislative body hereby rejects all of said proposals or bids except that herein mentioned, and does hereby award the construction contract for doing said work and making improvements in the Assessment District to the lowest responsible bidder, to-wit: BASILE CONSTRUCTION, INC. at the prices named in the bid of said bidder on file with the transcript of these proceedings and open for public inspection. SECTION 3. That this award of contract is hereby conditioned upon and made subject to the receipt of monies and proceeds from the issuance and sale of bonds. The Contractor I . . 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 - shall not commence construction or order equipment until he has received a written Notice to Proceed. Any progress payment to the Contractor for work completed may be delayed if monies have not been received from the sale of bonds. SECTION 4. That the works of improvement shall be constructed in the manner and form as set forth in the plans and specifications for these proceedings, as previously approved as a part of the ffReportff, as required by law and specifically the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California. SECTION 5. That the Mayor and City Clerk are hereby authorized to execute the Agreement for the works of improvement District, and a copy of said with the transcript of these relating to said Assessment Agreement shall be on file proceedings. SECTION 6. That all mon ies to pay for the costs and expenses of the above-referenced Assessment District shall be paid from the funds as deposited in the Improvement Fund, including any interest earned thereon. APPROVED and ADOPTED this 5th 1995. SeDtember CITY OF CARLSBAD ATTEST: STATE OF CALIFORNIA CITY CLERK 1 CITY OF CARLSBAD STATE OF CALIFORNIA , . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CARLSBAD I, ALETHA RAUTENKRANZ, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution, being Resolution No. 95-248 , was duly passed, approved and adopted by the City Council, approved and signed by the Mayor, and attested by the City Clerk, all at the regular meeting of said City Council held on the 5th day of September I 1995, and that the same was passed and adopted by the following vote: AYES: COUNCIL MEMBERS Lewis, Nygaard, Finnila, Hall NOES: COUNCIL MEMBERS ABSENT: COUNCIL MEMBERS Kulchin ABSTAIN: COUNCIL MEMBERS EXECUTED this day Of 7th SeDtember , 1995, at Carlsbad, California. CITY CLERK CITY OF CARLSBAD / STATE OF CALIFORNIA 20 /I 2111 22 23 24 25 26 27 28 Submitted to Applicant By: Patricia Good AGREEMENT FOR EXTENSION AND CONSTRUCTION OF GAS & ELECTRIC PARTIES This Agreement, dated Sept. 6, 1995, is made and entered into, by and between SAN DIEGO GAS ti ELECTRIC COMPANY, a corporation, hereinafter called "Utility", and CITY OF CARLSBAD, a mmicipal corporation , hereinafter called "Applicant". RECITALS Whereas, Applicant requests Utility to furnish gas and electric service to the subdivision known as Carlsbad Assessment District 92-1, located at Ponto Dr. & Franciscan Road @ Descanso Blvd., Carlsbad. AGREEMENT Therefore, in consideration of the mutual promises herein, the parties agree as follows: 1. GENERAL. In accordance with California Public Utilities Commission Rules 15 and/or 16, the allocation of work on Work Order(s) and the c i!i st information summarised in Appendix A and contained in the Appen ix C&I, which Appendix is attached hereto and by this reference incorporated herein, Utility and/or Applicant shall construct a gas and electric extension. 2. CONTRACT EXPIRATION. Once Applicant has started to perform the work required : 1 the Contract Documents, Applicant agrees to exercise reasL,,able diligence in pursuing such work to completion within one year after the date of the Contract Documents. If such work has not been completed within one year after the date of the Contract Documents, Utility shsll have the right, upon giving written notice to Applicant, to cancel and terminate the Contract Documents. If Utility elects to cancel and terminate the Contract Documents, Utility shall return to Applicant an amount equal to the above cash advance, minus Utility's costs. "Utility's costs" are defined as the actual costs (including but not limited to FORM 106-44140 (c/95) labor, materials and overhead) incurred by Utility prior to such cancellation and termination in connection with work done in furtherance of Applicant's project, plus the actual costs of removing any of the installed facilities which Utility desires to salvage, minus the salvage value of such facilities. In the event Utility's costs exceed the above cash advance, Applicant agrees to pay Utility a sum equal to the amount by which the Utility's costs exceed the advance. Upon exercise of its right to cancel and terminate-and upon payment to Applicant, all of Utility's obligations under the Contract Documents shall cease. 3. CONTRACT COMPLIANCE. If, after six (6) months following the date the Utility is first ready to serve residential loads for which allowances were grantedi or one (1) year for non-residential loads for which allowances were granted, Applicant fails to take service, or fails to use the service contracted for, Applicant shall pay the Utility an additional Contribution, based on the allowances for the loads actually installed. 4. EXCESS FACILITIES. If the loads provided by Applicant result in the Utility installing facilities which are in excess of those needed to serve the actual loads, and the Utility elects to reduce such excess facilities, Applicant shall pay the Utility its estimated total cost to remove, abandon, or replace its excess facilities, less the estimated salvage value of any removed facilities. 5. EASEMENTS. Applicant shall, upon Utility'5 request, execute Utility's standard form easements for the construction, service, presence, maintenance or inspection of Utility'5 facilities as may be required hereunder. 6. PAYMENT OPTIONS. Applicant has the option of advancing a non- refundable or refundable amount as described in the Appendix(es). The total refundable amount shall be subject to refund, without interest, in accordance with the following provisions: a) Refunds will be made within ninety (90) days after the date Applicant becomes eligible for a refund, except that refunds may be accumulated to a $50 minimum or the total refundable balance, if less than $50. b) Residential. Refunds will be made on the basis of a'new customer’s permanent load connecting to the line extension which produces additional revenues to Utility. Such refundable amount will be that amount which is on file at the time the refund(s) become eligible. The refund will be deducted from the total refundable amount, and the remaining amount subject to refund represents that portion of the extension cost not supported by revenues. cl Non-Residential. Refunds will be made on the basis of Applicant's or new customer's permanent load connecting to the line extension which produces additional revenues to Utility. Utility shall be responsible to review Applicant's actual base annual revenue for the first three years from the date Utility is first ready to serve. Applicant shall be responsible for notifying Utility if new, permanent load is added in the fourth through tenth year from the date Utility is first ready to serve. Such review shall determine if additional revenue supports any refunds to Applicant. -2- FORM 106-44140 ('j/95) 7. ASSIGNMENTS. This Agreement may be assigned by Applicant only upon the assignee's written acceptance of said assignment, and the prior approval of Utility as evidenced by written endorsement thereon; however, such approval shall not constitute a release of Applicant's obligation hereunder unless expressly 50 provided in said endorsement. Utility may refuse to accept an assignment of this Agreement unless executed on form furnished and approved by Utility. 8. COMMISSION CHANGES. Applicant shall be governed by Utility's applicable Rates and Rules on file with the California Public Utilities Commission, which Rates and Rules are made a part hereof by reference, and a copy of which will be furnished to Applicant on request. This Agreement shall at all times be subject to such changes or modifications as said Commission may, from time to time, direct in the exercise of its jurisdiction. ELECTRIC AGREEMENT 9. CONSTRUCTION RESPONSIBILITIES. Applicant shall perform at its expense all trenching/excavation, backfilling and compaction, including furnishing any imported backfill material required, and will furnish and install all distribution and feeder conduit and substructures required, all in accordance with Utility's General Conditions and Specifications, attached hereto and made a part hereof by this reference. Upon Utility's final acceptance of said installation in accordance with the referenced General Conditions, Applicant hereby grants, sells and conveys to Utility all its rights, title and interest in and to all materials installed. Once the extension receives final acceptance, Utility agrees to own, operate and maintain such extension. 10. - 11. BETTBBMENT. Where mutually agreed upon by Utility and Applicant, Applicant shall perform additional work to install additional facilities in accordance with Utility's specifications, timing, and applicable tariffs. Utility shall reimburse Applicant, Utility's estimated installed cost of such facilities and work, by applying a credit toward Applicant's advance. Any amount not 50 credited shall be reimbursed to Applicant upon final acceptance of the work and facilities by Utility. OWNERSHIP COSTS. When any portion of a refundable amount has not qualified for a refund at the end of twelve (12) months from the date Utility is first ready to serve, Applicant will pay to Utility an ownership charge on the remaining refundable balance. The difference between the total refundable advance and any refunds made or eligible to be made to Applicant shall serve as the basis of a monthly ownership charge which is determined as customer financed facilities, in accordance with Rule 2. A monthly ownership charge is in addition to the refundable amount and will normally be accumulated and deducted from refunds due to Applicant. This provision does not apply to individual residential Applicants. Any unrefunded amount remaining at the end of the ten (10) year period shall become the property of the Utility. -3- FORM 106-44140 (6/95) GAS AGREEMENT 12. CONSTRUCTION RESPONSIBILITIES. Utility is responsible for the installation of distribution main, valves, regulators, and other related distribution equipment required to complete the extension, including all necessary trenching/excavation, backfilling and compaction, and any imported backfill material required, as delineated in the Work Order(s) mentioned herein. 13. CONSTRUCTION OPTIONS. Where mutually agreed upon by Utility and Applicant, Applicant shall have the option of performing all excavation, backfilling and compaction, including furnishing any imported backfill material, and substructures required, all in accordance with Utility's General Conditions and Specifications, attached hereto and made part hereof by this reference. Utility shall reimburse Applicant, Utility's estimated installed cost of such facilities and work, by applying a credit toward Applicant's advance. Any amount not 50 credited shall be reimbursed to Applicant upon final acceptance of said work and facilities by Utility. 14. OWNERSHIP COSTS. When any portion of a refundable amount has not qualified for a refund at the end of thirty-six (36) months from the date Utility is first ready to serve, Applicant will pay to Utility an ownership charge on the remaining refundable balance. The difference between the total refundable advance and any refunds made or eligible to be made to Applicant shall serve as the basis of a monthly ownership charge which is determined as customer financed facilities, in accordance with Rule 2. A monthly ownership charge is in addition to the refundable amount and will normally be accumulated and deducted from refunds due to Applicant. This provision does not apply to individual residential Applicants. Any unrefunded amount remaining at the end of the ten (10) year period shall become the property of the Utility. APPLICANT INSTALLATION 15. Where the Applicant Installation option is selected, the Applicant, shall use qualified contractors to install that portion of the new extension normally installed by the Utility. Such installation shall be in accordance with the Utility's design and General Conditions and Specifications, attached hereto and made a part hereof by this reference. -4- FORM 106-44140 (6/95) 16. 17. 18. PAYMENT OPTIONS. Applicant has chosen one of the following: 1 I A refundable contribution representing the Utility's total estimated installed cost as described in the Appendix(es) or; [Xl A non-refundable contribution representing a percentage of the refundable amount as described in the Appendix(es) to this agreement. AUTHORIZED SIGNATURE. If Applicant is a corporation, partnership, joint venture or a group of individuals, the subscriber hereto represents that he has the authority to bind said corporation, partners, joint venture or individuals as the case may be. EFFECTIVE DATE. The Contract Documents shall become effective only upon the date signed by the authorised Utility representative. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed for and on behalf of each, by their duly authorised agents, partners, or corporate officers. APPLICANT: SAN DIEGO GAS & ELECTRIC COMPANY, a corporation By: (Authorized Individual-Utility) TITLE: Mayor Date Executed: Date: September 6, 1995 Tvoe of Customer Address: Residential [ ] Non-Residential [ ] 1200 Carlsbad Village Drive Individual [ ] Subdiv/Devl [ ] Carlsbad, CA 92083 t- Telephone: 434-2821 Social Security Number or Tax 1-D Number: 95-6004793 Applicant is a corporation: Yes [X] No I I municipal FORM 106-44140 (6/95) -5- APPENDIX A - SUMMARY 1. Amount Subject to Refund after Final Acceptance of Work From Appendix C $-O- From Appendix I $9,865 Total $9,865 2. Amount Subject to Future Refund From Appendix C $38,539 From Appendix I S-O- Total $38,539 3. Total Advance From Appendix C $19,292 From Appendix I $13,902 Total $33,194 -6- FORM 106-44140 (6/95) ! : : *a w v) m m 0 0 (3 : pl) In 0 r l-u . m co i z 3 Y 7 zr m W 2 i m . m- N Yui AW -2 r- -=f pm’ W ZW --I k’ $2 i? kl- aed ZW nz 2 \o 0 e- I- w r- fu 0 N 0 8DD\oootim N-a~Nm l- . co zt t$ . . .g.. . ki r N m v- N WJ i bit- 0’ d c * t? - Submitted to Applicant By: PATRICIA GOOD AGREEMENT FOR REPLACEMENT OF OVERHEAD WITH UNDERGROUND FACILITIES THIS AGREEMENT, made and entered into, by and between SAN DIEGO GAS & ELECTRIC COMPANY, a corporation, hereinafter called “Utility,” and City of Carlsbad, a municipal corporation, hereinafter called “Applicant(s)“. WITNESSETH: WHEREAS, Applicants are the owners, lessees, or others having a legal interest in those certain premises known as Carlsbad Assessment District 92-l. WHEREAS, Applicants desire that existing overhead facilities be replaced with underground facilities, and in consideration of the desirability and value which said underground facilities will add and contribute to the above premises; NOW, THEREFORE, it is agreed by and between Utility and Applicants as follows: Subject to the conditions hereinafter provided, Utility, upon obtaining satisfactory easements for any required rights of way, shall remove its existing overhead electric power facilities serving Applicants and shall replace these facilities with underground facilities, in accordance with its Rule 20.8 for Replacement of Overhead with Underground Facilities as filed with the California Public Utilities Commission. All work performsd by the Utility and Applicants pursuant to this Agreement shall be in conformity with the General Conditions and the Specifications attached hereto and by this reference made a part hereof. Utility shall furnish underground electric service to the premises shown on Specifications and, upon completion of the work specified herein, Utility shall not furnish overhead electric service to any of such premises. This Agreement shall become effective only upon compliance with all of the following conditions: a. All Applicants shall execute this Agreement and shall perform all of the conditions herein contained. b. All Applicants shall execute a companion agreement with each company, municipality, or agency that is a joint user with Utility of poles, or maintains other poles, within the 106-2759L -l- 04/91 4 area from which Utility’s pole will be removed pursuant to Section 1, for providing communication service, traffic signals, police or fire alarm boxes, or street or safety lighting supplied by overhead wiring. Such agreement or agreements will provide for such service to be discontinued or converted and maintained through underground circuits or other appropriate and lawful means, so that all of said poles can be removed from the area within a reasonable time after Utility has removed its poles. C. Applicants will, at their expense and in conformity with the Contract Documents as defined in the General Conditions, furnish and install the material, and facilities and perform the work indicated below by a check mark. The material, facilities and work listed below which are not indicated with a check mark shall be furnished, installed and performed by Utility at Applicants’ expense. X Excavation, backfill and compaction X Conduits X Concrete substructures d. Utility shall notify Applicants, in writing, of final acceptance of the work specified herein. Applicants hereby grant to Utility all facilities installed by Applicants pursuant to this Agreement, said grant to be effective upon receipt of Utility’s written final acceptance. e. Each Applicants shall, at his expense, promptly provide any necessary changes to the existing facilities on his property so as to receive underground electric service at the points specified on the Specifications. .The Applicants’ work shall be in accord with Utility’s Rule on Service Connections filed with the California Public Utilities Commission effective as of the date of this Agreement, and in accord with the Contract Documents. Underground electric service will not be supplied until all affected premises are equipped to receive electric service in accordance with said plan and specifications. 4. Receipt is acknowledged from Applicant(s) of $35,470, which is an amount equal to the estimated cost of Utility’s conversion work computed in accordance with its Filed Rule on Replacement of Overhead with Underground Facilities. Said amount includes any engineering fee or fees that may have been paid to Utility in contemplation of the work provided for in Section 2. 5. In the event any additions, rearrangements, or changes to the electric wiring are required or performed on Applicants’ several premises, other than the work pursuant to Section 3.e. above, Applicants shall cause said additions, rearrangements, and changes to be made at their expense. 6. All wires, cables, conductors, conduits, ducts, connectors and appurtenances installed by Utility, or its agents, on the premises of Applicants, or elsewhere, and all facilities granted to Utility by Applicants, shall become and remain the property of Utility notwithstanding any payment made under this Agreement. Such facilities will be maintained and operated by Utility in accordance with its Rules for the Sale of Electric Enerav on file with the California Public Utilities Commission. 7. a. Utility shall be under no obligation to perform and complete the work undertaken by its pursuant to this Agreement until Applicants’ obligations incurred pursuant to Paragraphs 3.b. and 3.e. of this Agreement shall have been fulfilled. 106-2759L 04191 -2- a. 9. 10. 11. b. If the Specifications attached hereto require the installation of new street lighting standards, Utility shall be under no obligation to remove and cease operating its overhead electric facilities nor to furnish underground electric service to any of the premises shown on the Specifications until said street lighting standards have been installed and energized. C. Utility at its sole election, may undertaken to perform the work to be performed by it prior to the occurrence of the conditions specified in subsections (a) and (bl of this Section. The commencement of any such work by Utility under the provisions of this subsection shall not constitute a waiver of any of the requirements imposed upon any Applicants under subsections (a) or (b) of this Section, or under any other provisions of this Agreement. d. If any Applicants shall, within one year of the date of this Agreement, fail or refuse to comply with any of the conditions hereof or to perform all work required under the contracts executed pursuant to Paragraph 3.b of this Agreement, Utility shall have the right to make such changes and to impose such further conditions upon the Applicants as may be necessary to protect its rights under any existing agreement for any increase in its costs of installation, and to provide in any other manner for the accomplishment of the purposes of this Agreement consistent with applicable rules, laws, ordinances and its contractual obligations hereunder. Once Applicant has started to perform the work required by the Contract Documents, Applicants agrees to exercise reasonable diligence in pursuing such work to completion within one year after the effective date of the Contract Documents. If such work has not been completed within one year after the effective date of the Contract Documents, Utility shall have the right, upon giving written notice to Applicants, to cancel and terminate the Contract Documents. If Utility elects to cancel and terminate the Contract Documents, Utility shall return to Applicants an amount equal to the above cash advance, minus Utility’s costs. Utility’s costs is defined as the actual cost (including but not limited to labor, materials and overhead) incurred by Utility prior to such cancellation and termination in connection with work done in furtherance of Applicants’ project, plus the actual cost of removing any of the Utility installed facilities which Utility desires to salvage, minus the salvage value of such facilities. Upon exercise of its right to cancel and,terminate and upon payment to Applicants, all of Utility’s obligations under the Contract Documents shall cease. This Agreement shall at all times be subject to such changes or modifications by the California Public Utility Commission as said Commission may, from time to time, direct in the exercise of its jurisdiction. All terms and situations heretofore made and agreed to by the parties in relation to said electric line replacement are set forth in this Agreement and no representation of any agent or employees shall be binding upon Utility except as expressed herein. Appendix B attached hereto is solely for use by Utility and nothing contained therein shall in any way alter or vary any term, condition or stipulation contained in this Agreement. If Applicant is a corporation, partnership, joint venture or a group of individuals, the subscriber hereto represents that he has the authority to bind said corporation, partners, joint venture or individuals as the case may be. Each Applicant signing this Agreement agrees that he shall be jointly and severally liable under the terms of this Agreement with every other Applicant signing the Agreement. 106-2759L -3- 04/91 - 12. All of the terms and conditions of this Agreement shall be binding upon and shall insure to the benefit of the parties hereto, their heirs, administrators, executors, personal representatives, trustees, successors and assigns. ‘r 13. The Contract Documents shall become effective only upon the date signed by the authorized representative of Utility. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed for and on behalf of each, by their duly authorized agents, partners, or corporate officers. AP SAN DIEGO GAS & ELECTRIC COMPANY, a corporation By: By: Authorized Signature-Utility TITLE: Mayor Date: Date: September 6, 1995 Address: 1200 Carlsbad Village Drive Carlsbad, CA 92008 Social Security Number or Tax I. D. Number: 95-6004793 Applicant is a corporation: Yes ix1 No [ I municipal 106-2759L 04/91 -4- e P s - c Sk. n N m . Y s t- a 3 wo ui - K Y 5 Y i g - - I;; 8. a Submitted to Applicant By: Patricia Good AGREEMENT FOR UTILITY PAYMENT TO APPLICANT FOR INSTALLATION OF GAS TRENCH SYSTEM AND/OR ELECTRIC DISTRIBUTION SYSTEM REQUIRED BY UTILITY This Agreement is made and entered into by and between SAN DIEGO GAS & ELECTRIC COMPANY, a corporation, hereinafter called “Utility”, and City of Carlsbad, hereinafter called “Applicant”. a municipal corporatik Project name Carlsbad Assessment District 92-1 In consideration of the mutual promises herein, the parties agree as follows: ELECTRIC 1. Applicant shall construct, in accordance with the Utility’s Specifications, trench, conduit and substructure system as shown on W.O.#2475850 is delineated as SDG&E convenience facilities. The system is subject to change as necessitated by conflicts, obstacles, or difficult soil conditions revealed by actual examination during construction. Applicant agrees to perform at its sole expense all trenching, excavation, backfilling, compaction, and pavement replacement necessary to construct said conduit and substructure system, including that which is necessitated by any change in location. 2. Utility shall pay as the agreed value of the trench, conduit and substructure provided by Applicant at &lity’s request the sum of $2,213, within 30 days of the Utility’s final acceptance of work pursuant to the General Conditions. 3. Applicant hereby agrees that title to the trench, conduit and substructure provided by Applicant for Utility shall vest in Utility upon final inspection and acceptance by Utility. 4. The Contract Documents shall become effective only upon the date signed by the authorized representative of Utility. 106-311400 11-26-75 -l- IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed for and on behalf of each, by their duly authorized agents, partners, or corporate officers. SAN DIEGO GAS a corporation & ELECTRIC COMbANY, By: Authorized Signature-Utility TITLE: Mayor Date: Date: September 6, 1995 Address: 1200 Carlsbad Village Drive Carlsbad, CA 92008 Social Security Number or Tax I. D. Number: 95-6004793 Applicant is a corporation: Yes kl No [I municipal lQ6-31140C 11-26-75 -2- - REIMBURSEMENT AGREEMENT THIS REIMBURSEMENT AGREEMENT (hereinafter referred to as the “Agreement”) is made and entered into and effective as of the m day of , 1995, by and SEP~ER between MCI METRO ACCESS TRANSMISSION SERVICES, INC., a Delaware corporation (hereinafter referred to as “MCI”), whose mailing address is 2250 Lakeside Boulevard, Richardson, Texas 75082, and the CITY OF CARLSBAD, hereinafter referred to as “Reimburser”), whose mailing address is 2075 Las Palmas Drive, Carlsbad, California 92009. WITNESSETH WHEREAS, Reimbursor proposes to construct the development known as La Costa Downs in Carlsbad, California, along the rights-of-way of San Diego Northwestern Railroad, which rights-of-way contain an MCI fiber optic cable system; WHEREAS, as a result of Reimbursor’s construction activity, Reimbursor is requiring MCI to relocate its fiberoptic cable system within the existing right-of-way in accordance with Exhibits A and B attached hereto and incorporated herein; and WHEREAS, MCI, under the terms hereinafter stated, is willing to undertake such fiberoptic cable relocation project (hereinafter referred to as the “Project”) in order to accommodate Reimbursor, provided Reimbursor reimburses MCI for all of its reasonable costs, both direct and indirect, associated with the Project. NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained, MCI hereby agrees to undertake the Project in accordance with the attached Exhibit A, subject to the following terms and provisions: 8/21/95 1. Reimburser agrees that Exhibit A represents the scope of work for the Project in Carlsbad, California. 2. Reimbursor may, at its own expense, inspect MCI’s construction activity undertaken in connection with the Project. 3. As provided in paragraph 4, Reimbursor agrees to bear all direct and indirect costs incurred by MCI and relating to any construction by MCI in connection with the Project, including, but not limited to, labor, materials, construction, damages, administrative overhead, taxes and legal fees. 4. The total cost of the Project is estimated to be TWENTY SIX THOUSAND, NINETY SEVEN AND 41/l 00 DOLlARS ($26,097.41), as detailed in Exhibit B. MCI shall promptly provide notice to Reimbursor when MCI becomes aware that the final actual costs of the Project will exceed the estimate by more than ten percent (10%). 5. After sixty (60) days following completion of the Project, MCI shall make an accounting of the final costs and provide Reimbursor with a copy of said accounting and an itemized invoice therefor. Reimbursor shall pay the full invoice within thirty (30) days after receipt of same from MCI. 6. No work shall be performed by Reimbursor within the existing right-of-way until the Project has been completed. 7. Exclusive of Saturday, Sunday, and legal holidays, Reimbursor shall give MCI notice at least forty-eight (48) hours in advance of commencement of any work on or adjacent to the fiberoptic cable, except in the event of an emergency. Said notice shall be given to those individuals enumerated on the Contact List attached hereto as a part of Exhibit A. 8. This Agreement supersedes every antecedent or concurrent oral and/or written declaration and/or understanding by and between MCI and Reimbursor pertaining to the Project. 2 8/21/95 - 9. The terms of this Agreement shall be binding on and inure to the benefit of the parties hereto and their successors and assigns. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and year first above written. ATTEST: MCI METRO ACCESS TRANSMISSION SERVICES By: Name: Title: By: Name: Steven D. Shannon Title: Director (Corporate Seal) ATTEST/WITNESS: . REIMBURSOR:, By: By: I Tile: Mayor (Corporate Seal) 3 8121195 EXHIBIT A Exhibit A consists of plans and specifications for the Project on file in the City of Carlsbad Engineering Department. MCI Metro fiber Implementation Cost Proposal EXHIBIT B PROJECT NUMBER: 1597- TOTAL FIBERS: CUSTOMER FIBERS: EXISTING CABLE LENGT NEW CABLE LENGTH: TOTAL FIBER LENGTB: NEW ROUTE LENGTH: 45 31 0 1,160 1,160 1,060 Date Prep: 03106195 DATE REV: ~XXKVXX Bud (B), FFP (F). Asbuilt (A): B Ln Costa Downs Relocation Carlsbad, CA TERMINATION LOCATION 1: N/A TERMINATION LOCATION 2: N/A ENGINEER E.Gdin OSP Construction Quantity Unit Cost FFP Cost con- Cod Existing Conduit to Be Used 221~Conduit to Rod and Rope ( N=Rod and Rope not required, F=during FFP, C=during Construction) + Meho Condull Footage :.! i‘ $I ,‘,~! .sJ.il:J + Teln Cmdutl Footage si f;: “;(:.(,(i + Power Coadult F&age :> :‘, z;; .;;; ::;<‘: g; + Cu- Coadutt Foah@ :.: ;: gt ,‘,? ‘it: cl: Total ExlslinS CwdulI Foofagt : ! Tota $0.00 $0.00 $0.00 $0.00 411 - Innerduct to Install in existing Conduit (N=Not required, F-during FFP,C=during construction) + In Metro Coadult Footage $f,:.: ‘<: 1; 1 ‘;.‘ ‘$1.*,32.:1:‘: + In Ttlm Condadl Foolage z1; I \i j;-: :gi.()~ + In Pam Cmduli Footay 5 (‘ i,: :x: p>, I.:!> + In Cu- Condull Fata~e :.: ;: :; ‘: .F +: ‘ic: CL; %1,632.00 $0.00 SO.00 $0.00 New Conduit to be Constructed 210- UG Conduit to Construct with Innerduct Installed + Place L4” PVC/IaM :i $X.<.ili: + Place ?-4”PVuInM :? .I,y.S i:i: + Place?-4”PVC/IaM :c, ,>,;i,;.j i:i: 270-Bm Alpban :,: 1;: >,:-:,I 2aaIuR collaac L; \ .’ : ” .’ -1 ii 3lOA-Pbo Bldg RWLtrl(4”) :: :‘. .: ,.;, .., . . \.b, 3lOBPhceBrld~Altach(4”) :.: S?“,,.*~. 310?. ‘.! 1:: ;::: 1lO-Jack & Bore (4”) :: ‘Z.5 :: ;:;; 630-DCa# Bore (4”) :‘: .,.,. .i :..i.. .a.._ .“.. :.: :;p ;,: [Z 320-Core Bon (sscb) :: j;::.< i:i: 7tCPlace Bwkd Ca Marker :‘-:: . . .I.. \.>. MnnholesfTIandhoies to Set 25oPke Manhole 24aPIpa mdh0b 33aPdi Box :! :.. ; ‘.,:::: :::,: $0.00 :: + ,.%?,^ ::.c A.. $0.00 :: 3; ;:;: ::;: $0.00 Underground Cable to Install 4IaPd Cabb h comdun SIOA-PlowCabb 5105PbwHDPm!abb SlOCTremcWke Cnbb :.,.<.. _. . . . . 5 i .z .: $1,611.20 :: ‘.,i :;.; $0.00 :: -: ‘?-/ .I . $0.00 :: :; i ,.T >7 $0.00 Aerial Construction StO-Place Aerial Cn/Stmd SZOA-Remove ExIstlag Aerial Cable SZOB-AtrId Make RadylF’ob . . . . . . ..,., ” : “< .I‘ I_ $i.ji:.W $450.00 ::. !>. ‘;r .A2 ‘1:. ; ;j. ‘.T ..; i> 31,337.50 $0.00 OSP Construction Supervision 81 Inspection Travel Expenses :: Conhad larp&ws Days .! Supervlrloa (Hrs) CONTRACT ;.; Supav(sh @In) METRO . . . ,.;, ,. . . , . ;j..~X:Z,i’.:: t.:;: <::: .y,y;: i:(: FFP Cost Constuction Total $0.00 \.: :-ii. %;i; 1 . k . . , 31,120.oo :;I .Z(i().(.(! $1,200.00 :::I ,.j[:~.()l.: %1,400.00 I Total Supervision and inspection $0.00 $3,720.00 %3,720.00 MCI Metro fiber Implementation Cost Proposal e MCI splldngfInvel @Irs) FFP Cod Construction htm A- (Hrs) .: Coatmet Splkm Man Days (2 mea) Total Splicing Labor y;;: ;:,.: i, . ..“.. i.!x<;.<;r: $280.00 S,:*i-:.l:~-: <iI. :>,(j,(jij $1,520.00 so.00 S3,120.00 $3,120.00 Hnadbob Pull Box Manbob Fmmsr Mombob Covers Awlal Cabb Tags LMS System ACT Isolated Protectors ACTSsitcbKlt w-g skm Wamlng Tape Innerduct Slnglcaoda Flbr “Opthal Cabb” “Opthal Cabb” “Optional Cabb” ;: .j i & :.r :! .: :j :>..;i ., T. i ;;q:‘! ;: ;i I! $0.00 SO.00 $0.00 $0.00 ‘ij fi .I.:<.: $16.00 $0.00 ‘,I(;(;.(j(j $100.00 $0.00 ,55.:.l:r: $52.00 $0.00 ‘<:A:,.: a:, $604.80 3; .<,:a ? .$I.; %3,087.00 $0.00 $0.00 $0.00 Total OSP Material $604.80 %8,055.00 %8,659.80 Splicing Material (Eng Supplied) splh Kltr spike Carr :I:‘:-: .I_ . ., *.*. 5 :: :: 57 ,: a: $C ::;: <il.; ;:;: FFP Cost lmplemantalhx Total ::j .~Y.ci.; $125.00 $:‘?.;t: <)I: $330.00 60.00 $0.00 II Total Salicinv Mater&al so.00 s455.00 %455.00 I Fiber Termination Material (Eng Supplied) FFP Cost Implementatlott Totn: Equlpment Racks FDC/STB Mod& (6 Flber) Plgtallr T’! ‘:.;A: ::i: :! ..;.:.<:, ;,;; L1‘_.. I . ..Y : ! sjj;:,;‘:;-: :i >..:.: i::: :! :.. .,. . ,,\. ,.I. :.: $2, ;::,: c;: i:i: Total Flber Termination Material $0.00 $0.00 $0.00 SO.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Cwh Dr@ Et@DrftNew PtmWt Coon Project En@nemr @Its) Metro Supv. Eaglnm (Hrs) Contr Pole Make Ready :: :.:: ::i: $0.00 ( y:: ::i: %1,680.00 $0.00 :: “‘i::. , .:: .,.> . . ~... $0.00 Y.\ndn,\DDn IEPTC\Isa7lnPnrT WEL, MCI Metro fiber Implementation Cost Proposal ‘ROJECT NUMBER: 1597 ENGINEERING Carlsbad, CA COST ESTIMATE TERMINATION LOCATION 1 I NI FOR TERMINATION LOCATION 2: N/ La Costa Downs ENGINEER: E.Griffin DATE PRINTED: 06/29/95 FFP Cost Impkmcatatkn Project Total rlaterial Cabb Hlsc Matl(Aetlal,Bwkd,Ua&r*rground) EPBdJS remdaanotl ::. :.:. _,.. ,.\. :t.$i;??.<i~ p;.,,:;a ?.<.W $&< .zn 5.i :>,jy 0:) .,. . . \.: i7’i s,; . ,; I . c:: ;:i? “..:p,?,:,:, :;,jyl;,[,(i i;; ;;;; p,i <j\l $0 ,I.: !: lIaterial Total $604.80 $8,510.00 $9,114.80 kight and Tnr Sabs Tax Frelgbt ‘i-eight and Tax Total 5-i :. ; ‘;, <.: :.:s:z .::j :;; .gj .Gj $12.::’ s i”<) ‘?Z) ,.. >[*? .I<: s435.46 $808.45 %1,243.91 MP Engineering Labor conhactorLabor YCI Metro Labor i;: ;:<;.:,;..;: ..I. c, :. :I :\:,I. :.I:, yS. ; (j; ,i.;(j $$.I:; ;:;: ‘?i’ is, .‘).‘, /. s.., \, ::; ,$p,,:.!:<: Inglnccring Lnbor Total $1,890.00 %1,890.00 %3,780.00 ENG TRAVEL FXPENSE :‘;i ;);I :<I.: .I,:(: ‘rojcct Totals $2,930.26 %11,208.45 $14,138.71 - MCI Metro fiber Implementation Cost Proposal Constructton Expenses :<;.I, <>c: Const TOTAL S1,632.00 $7,206.70 %8,838.70 Splicing Contract hbor Metro Labor MCI Labor Splicing TOTAL .&: t.:; : .:: ‘i 7’) .).j I _.\ \ \ $1,520.00 %.-. nn ., sxil.;)!J S280.00 pn ;:;: v : ‘; ‘:, :,:, , . ,.. S1,320.00 SO.00 S3.120.00 S3,120.00 Eng Total 2,930.26 11,206.45 14,136.71 u Project Total 4,562.26 21,535.15 26,097.41 3 c PACIFIC~~BELL . A Pacific Telesis Company August 21, 1995 : PLEASE CALL : 619-563-2280 FOR INSPECTION City of Carlsbad - La Costa Downs Assessment District #92-l 2075 Las Palmas Drive Carlsbad, CA 92009-1576 Attention: Richard Allen This is to confirm the arrangements made between City of Carlsbad - La Costa Downs Assessment Dist #92-l ("Applicant") and Pacific Bell ("Pacific") for providing telephone service to your project La Costa Downs - Unit 1, by means of underground facilities. The applicant hereby agrees to the following conditions: 1. The applicant shall provide positions in trench and will place substructures for Pacific's use as specified in the attached drawings 1 of 2 of Pacific's job number DB(1917362R. The cover over telephone facilities must be in accordance with the specifications on Pacific's attached drawings. Minimum cover in all cases should not be less than 24" below finish grade unless otherwise specified on drawings. 2. The applicant shall excavate, backfill and compact the trench in accordance with the specifications of the City or County that has jurisdiction over the project. 3. The applicant shall notify Pacific at 619-563-2280, at least fifteen (15) working days in advance of starting trenching so Pacific may coordinate the placing of its facilities with other operations. The applicant further agrees that trenching will begin on or before October 15, 1995, and will be completed on or before February 15, 1996. If the applicant cannot complete trenching within said time period, Pacific may at its sole option terminate this contract and bill the applicant for all engineering costs incurred -by Pacific. Pacific shall incur no liability as a result of such termination. 4. In order to prevent damage to Pacific's facilities, the applicant shall provide supervision over and coordination between the various contractors working within the project until said facilities are ready for service and tested by Pacific. It is recommended, in order to reduce the possibility of damage to Pacific's facilities, that the placement of these facilities be deferred until sewer and water utilities have completed their installation. 5. 6. 7a. 7b. The applicant agree to submit a final bill to Pacific no later than fortyfive (45) days following acceptance of the work as outlined herein. Notwithstanding the above, if Pacific does not receive a bill from the applicant within (90) days of said acceptance, Pacific will consider the amount settled and all conditions of this contract fulfilled and Pacific shall not be liable to the applicant for the payment referred to in paragraph 7b below. Billing should specify the location of the trenching work by street address or other reasonable identification and should refer to Pacific's job number DB(19)7362R. All bills should be mailed to: For the total sum of : Pacific Bell - Joint Trench San Diego Construction 4042 37th Street, Room 215 San Diego, CA 92105 Attention: Jane Rettig Said bill shall be based on the cost of Pacific's conduit and/or Pacific's share of trench as specified by the applicable tarriff on file with the California Public Utilities Commission. The estimated amount to be reimbursed by Pacific is based upon the following estimated footages and established schedule of rates. $ 4,246.48 214 feet of H-ALL Trench for Telco's sole use @p $2.05 per foot = $ 438.70 1,328 feet of jointly occupied main trench 8 $.85 per foot = 1,128.80 490 feet of jointly occupied service trench @ $.90 per foot = 441.00 1,962 feet of 4" PTS 77 conduit with 3/8" pull line placed and associated fittings and 24 bends = 1,836.18 732 feet of 2" PTS 66 conduit with 3/8" pull line placed and associated fittings and 11 bends 401.80 Provide conduit (1" Schedule 40 Standard - equipped with line) as the underground supporting structure and trench for service connection facilities within the interior boundaries of all lots, from property line to the riser protection conduit at the foundation, at no cost to Pacific. Conduits must be placed and sized as shown on Attachment A. Prior to the commencement of any work to be performed hereunder, or at a mutually agreed time thereafter, the applicant shall grant Pacific all necessary easements for Pacific's communication facilities in the specified locations and in a form satisfactory to Pacific. 8. In the event Pacific is required by the applicant to make significant changes in the drawings referred to in paragraph 1 above, the applicant shall pay Pacific for any additional engineering costs resulting therefrom at Pacific's current loaded labor rate. 9. Applicant shall perform all the work specified hereunder and any amendments hereto in a good and skillful manner and the work shall be free from faulty or defective workmanship. All material furnished by applicant shall be free from defects. Applicant shall immediately, upon notification from Pacific, remedy, repair or replace without cost to Pacific and to the satisfaction of Pacific's representative, and to the satisfaction of governmental official having jurisdiction, all defects, damages or imperfections, including, but not limited to caving, sinking or settling which may appear in the work within a period of two (2) years after the date of final completion and acceptance of the work by Pacific. Pacific shall exercise reasonable diligence to discover and report to applicants, as work progresses, all unsatisfactory material and workmanship furnished by applicant. In emergencies or due to applicant's inability, refusal or neglect to do so, Pacific shall have the right to correct such defects and applicant shall reimburse Pacific for the costs thereof within ten (10) days after receipt of a bill therefor. Neither acceptance of the work by Pacific nor payments to applicant hereunder shall relieve applicant of these obligations. All equipment and tools furnished by applicant shall be in good and serviceable condition and shall be capable of performing the work in an efficient manner. 10. If trench is closed without inspection by Pacific, potholing may be required at Pacific's discretion to verify that all specifications have been met. All potholing will be done at applicant's expense. 11: When the applicant has placed to Pacific's satisfaction the underground supporting structures for which reimbursement is specified in paragraph 7 above, ownership thereof, including the materials supplied by the applicant, will be vested in Pacific. 12. Be advised that working telephone service cannot be provided for approximately thirty (30) days after the work is completed. This would include final grading, conduit with pull lines, and enclosures placed as specified. 13. The applicant shall indemnify Pacific and save it harmless from all loss or liability of any character whatsoever, including damage to Pacific's facilities, arising directly or indirectly out of or in connection with the work performed by the applicant hereunder, its contractors, employees, agents or permittees. 14. Applicant shall, until acceptance of the work by Pacific, maintain in full force and effect the following insurance with insurance carriers authorized to do business in California. (a) For work in California, Worker's Compensation Insurance in compliance with all Worker's Compensation Laws of the State of California, or in lieu thereof, to have become a qualified self- insurer of Worker's Compensation benefits. (b) Products and Completed Operations Insurance. (cl Comprehensive Liability,Insurance, including automobile which shall protect applicant from any claims for bodily injury to or death of any persons, and for damage to or destruction of any property which may arise from work performed hereunder, and which does not exclude explosion,collapse, or underground property damage hazards. Said Comprehensive Liability Insurance shall also provide contractual liability coverage with respect to liability assumed by applicant hereunder. Furthermore, said Comprehensive Liability Insurance shall protect applicant against any liability which applicant may incur (a) on account of bodily injuries to or the death of one person and consequential damages arising therefrom, to the extent of not less than $500,000 and on account of bodily injuries to or the death of more than one such person and consequential damages arising therefrom as a result of any one occurrence, to the extent of not less than $l,OOO,OOO (b) on account of damage to any property, other than Pacific's property occupied or used by or in the care, custody or control of applicant, to the extent of not less than $250,000 for each accident and $500,000 aggregate; or in lieu of (a) and (b); (c) a combined single limit on account of both bodily injuries and property damage of not less than $l,OOO,OOO. Such insurance shall include Pacific as Additional Insured: be primary insurance to the full limits of liability herein before stated and should Pacific have other valid insurance, Pacific insurance shall be excess insurance only: and include a severability of interest clause worded substantially as follows: "The insurance afforded applies separately to each insured against whom claim is made or suit is brought, but the inclusion hereunder of more than one insured shall not operate to increase the limits of the insurance carrier's liability. The inclusion of any person or organization as an insured shall not affect any right that such person or organization would have as a claimant if not so included". 15. Applicant hereby declares and agrees that applicant is engaged in an independent business and will perform its obligations hereunder as an independent contract of and not as the agent, employee o'r servant of Pacific: that applicant has and hereby retains the right to exercise full control of and supervision over the applicant's performance of applicant's obligations hereunder and full control over the employment, direction, compensations and discharge of all employees assisting in the performance of such obligations; that applicant will be solely responsible for all matters relating to payment of such employees including compliance with social security, withholding and al 1 other regulations governing such matters; and that applicant will l)O responsible for applicant's own acts and those of applicant's subordinates, employees, agents and subcontractors during the performance of applicant's obligations under this contract. In the performance of the work hereunder, applicant shall not employ any person who is a full-time or part-time employee of Pacific. 16. The attachment entitled "Exhibit-Executive Orders and Associated Regulations" is hereby made a part hereof. As used in the Exhibit, "Contractors" shall mean the applicant. Those orders and regulations applicable as indicated in the attachment are incorporated by reference herein. APPROVED DATED J.F. Retti.g Administrator/Joint Trench Coordinator San Diego Construction Enclosures REPRESENTATIVE Claude A. Lewis, Mayor ~~ NAME & TITLE (PLEASE PRINT) Sept. 6, 1995 DATE *PACIFIC BELL- 3 NEVADA BELL- -J& Tdmb Corrornr I EXHIBIT A - EXECUTIVE ORDERS AND ASSOCIATED REGULATIONS Pacific Bell and Nevada Bell, as common terriers of telecommunications services, ‘qgage in work as contmctors for various departments and agencies of the United itaces Government. Also. certain facilities may be constructed pursuant to federally :;sisted construction programs. Because of the forrgoing, work under this contract Tay be subject to the provisions of certain Executive Orders, federsl lawe and isociated regulations. To the extent that such Executive Orders, federal laws and jsociated regulations apply to the work under this contact. and only to that extent, -Xuractor agreee to comply with the provisions of all such Executive Orders, federal %vs and associated requlations. as now in force or as may be amended in the future, xluding. but not limited to the following: . EQUAL EMPLOYMENT OPPORTUNITY PROVISIONS In accordance with Executive Order 11246. dated September 24. 1966. and 41 ’ F.R.56G1.4, the parties incorporate herein by this reference the regulations and ontract clauses required by those provisions to be made a part of nonexempt sntracts and subcontracts. CERTIFICATION OF NONSEGREGATED FACILITIES In accordance with Executive Order 11246. dated September 24. 1965, and 41 : FR.@O-1.8, Contractor certifies that it does not and will not maintain or provide or its employees any facilities segregated on the basis of race, color. religion, sex, - national origin at any of its establishments, and that it does not and will not permit :s employees to perform their services at any location, under its control, where ich segregated facilities are maintained. The term “facilities” as used herein leans waiting rooms, work areas, restaurants and other eating areas, time clocks, zstrooms, wash rooms, locker rooms and other storage or dressing areas, parking XS, drinking fountains, recreation or entefiainment areas. transportation. and Dusing facilities provided for employees, provided that separate or single-user :Ilet and necessary changing facilities shall be provided to assure privacy between -e sexes. Contractor will obtain similar certifications from proposed subcontractors *Ior to the award of any nonexempt subcontract. CERTIFICATION OF AFFIRMATIVE ACTION PROGRAM Contractor certifies that it has developed and is maintaining an Affirmative Action ‘an as required by 41 C.FR.660-1.40. CERTIFICATION OF FILING Contractor certifies that it will file annually. on or before the 31st day of March, Implete and accurate reports on Standard Form 100 (EEO-1) or such forms as ‘ay be promulgated in its place as requrred by 41 C.F.R.660.1.7. AFFIRMATIVE ACTION FOR DISABLED VETERANS AND VETERANS OF HE VIETNAM ERA In accordance with Executtve Order 11701. dated January 24, 1973. anb 41 F.R.560-250.20. the parties incorporate herein by this reference the regulations ‘,d contract clauses required by those prowsions to be made a pat-l of Government Intracts and subcontracts. AFFIRMATIVE ACTION FOR HANDICAPPED PERSONS In accordance with Executive Order 11758. dated Jan&y 15. 1974. and 41 F R.g60-741.20. the partres inccrporate herein by this reference the regulations ld contract clauses required by those provisions to be made a part of Government Intracts and subcontracts. UTtLlZATlON OF SMALL BUSINESS CONCERNS AND SMALL DISADVAN- AGED BUSINESS CONCERNS 46 C.F.R.. Ch. 1. 619.704(4) and 19 706(a) require that the following clause is eluded: Ufilization of Small Business Concerns and Small Disadvantaged Business ‘oncerns (June. 1985) (a) It IS the policy of the United States thal small business concerns and small Jslnesa concerns owned and controlled by socially and economically disadvan- iged indtwduals shall have the maximum practicable opportunity to participate in *r-forming contracts let by any Federal agency. including contracts and subcon- acts for ~subsyslems. assemblies, components, and related services for major /stems. It IS further the policy of the United States that its prime contractors ;tablish procedures to ensure the timely payment of amounts due pursuant to the +rms of their subcontracts with small business concerns and small business Incerns owned and controlled by socially and economically disadvantaged indi- duals. (b) The Contractor hereby agrees to carry out this policy in the awarding of &contracts to the fullest extent consistent with efficient contract performance. le Contractor further agrees to cooperate in any studies or surveys as may be snducted by the United States Small Business Administration or the awarding .gency of the United States as may be necessary to determine the extent of the ,ontractor’s compliance with thls clause. (c) As used in this contract. the term “small business concern” shall mean a nail busmess as defined pursuant to section 3 of the Small Business Act and +ievant regulations promulgated pursuant thereto. The term “small business cncern owned and controlled by socrally and economically disadvantaged indivrd- als” shall mean a small business concern - (1) Whtch IS at least 61 percent owned by one or more socially and economi- ally disadvantaged indlvrduals: or. in the case of any publicly owned business, al +asr 51 percentum of the stock of whrch is owned by one or more socially and zonomlcally drsadvantaged individuals; and (2) Whose management and dally busmess operations are controlled by one or Tore of such indtwduals. The Contractor shall presume that socially and economrcally disadvantaged :dlvlduals Include Slack Amencans. HlspanC Amencans. Naftve Amencans. slan-Paclfrc Amerrcans. &ran-lndlan Amencans and other minorrtles, or any other .dlvldual found to be disadvantaged by the AdmWtratlOn pursuant to section 8(a) I :he Small Busmess Act. GA 1501 (7/86) (d) COntractOrS acting in good faith may rely on written representations by their subcontractors regarding their status as either a small business concern or a small business Concern owned and controlled by socially and economically disadvan- taged individuals. Small Business and Small Disadvantaged Business Sukonfracting Pfan Contractor. unless it is a small business concern. as defined in section 3 of the Small Business Act, agrees to adopt and comply with a small business and small disadvantaged business subcontracting plan, which shall be included in and made a part of this contract. The parties incorporate herein by this reference the regulations and contract clauses required by 48 C.F.R.. Ch. 1.$19.7&a(4) and 19.706(b) to be made a part of Government contracts and subcontracts. 6. WOMEN-OWNED SMALL BUSINESSES As prescribed in 48 C.F.R., Ch. 1, S19.992. the following clause is included in solicitations and contracts when the contract amount is expected to be over the small purchase threshold, unless (a) the contract is to be performed entirely outside the United States, its possessions, Puerto Rico, and the Trust Territory of the Pacific Islands. or (b) a oersonal services contract is contemolated: (a) “Women-owned small businesses,” as used in thi&use. means businesses that are at least 51 percent owned by women who are United States citizens and who also control and operate the business. “Control,” as used in this clause means exercising the power to make policy decisions. “Operate: as used in the clause, means being actively involved in the day-today management of the business. (b) I1 is the policy of the United States thaf women-owned small businesses shall have the maximum practicable opportunity to participate in performing contracts awarded by any Federal agency. (c) The Contractor agrees to use its best efforts to give women-owned small businesses the maximum practicable opportunity to participate in the subcontracts it awards to the fullest extent consistent with the efficient performance of its contract. 9. LASOR SURPLUS AREA CONCERNS As prescribed in 48 C.F.R.. Ch. 1,520.302(a)(b), the following clauses are included: (a) Applicability. This clause is applicable if this contract exceeds the appropriate small purchase limitation in Part 13 of the Federal Acquisition Regulation. (b) Policy. It is the policy of the Government to award contracts to concerns that agree to perform substantially in labor surplus areas (LSA’s) when this can be done consistent with the efficient performance of the contracl and at prices no higher than are obtainable elsewhere. The Contractor agrees to use its best efforts to place subcontracts in accordance with this policy. (c) Order of Preference. In complying with paragraph (b) above and with paragraph’(c) of the clause of this contract entitled Utilitation of Small Business Concerns and Small Disadvantaged Business Concerns. the Contractor shall observe the following order of preference in awarding subcontracts: (1) small business concerns that are LSA concerns, (2) other small business concerns. and (3) other LSA concerns. (d) Definitions. “Labor surplus area,” as used in this clause. means a geographi- cal area identified by the Department of Labor in accordance with 20 C.FR.§664. Subpart A. as an area of concentrated unemployment or underemployment or an area of labor surplus. “Labor surolus area concern.” as used in this clause. means a concern that together withits first-tier subcontractors will perform substantially in labor surplus areas. Performance is substantially in labor surplus areas if the costs incurred under the contract on account of manufacturing. production, or performance of appropriate services in labor surplus areas exceed 50 percent of the contract price. Labor Surplus Area Subcontracting Program (a) See the Utilitation of Labor Surplus Area Concerns clause of this contract tar applicable definitions. (b) The Contractor agrees to establish and conduct a program to encourage labor surplus area (LSA) concerns to compete for subcontracts within their capabilities when Ihe subcontracts are consistent with the efficient performance Of the contract at prices no higher than oblainable elsewhere. The Contractor shall - (1) Designate a liaison officer who will (i) maintain liaison with authorized representatives of the Government on LSA matters. (ii) supervise comPliance with lhe Ulilizahon of Labor Surplus Area Concerns clause, and (iii) administer the Contractor’s labor surplus area subcontracting program; (2) Provide adequate and timely consideration of the potentialities Of LSA concerns in all make-or-buy decisions: (3) Ensure that LSA concerns have an equitable opportunity IO Compete !Or subcontracts. particularly by arranging solicilations. time for the preparation of offers, quantities, specifications, and delivery schedules so as 10 facililate the parhctpahon of LSA concerns: (4) Include the Utilizahon of Labor Surplus Area Concerns clause in subcon- tracts that offer substantial LS.4 subcontracting oppottuniues; and (5) Mamtam records showing (i) the procedures adopted and (II) the Contrac- tor’s performance, to comply with thus clause. The records WIII be kept available for rewew by the Government until the exprration of 1 year after the award of thts contract, or for such longer period as may be required by any other clause Of this contract or by applicable law or regutatiOnS. (c) The Contractor further agrees to insert in any related subcontract that may exceed f609.9r)O and that contains the Utilization of Labor SurpluS Area Concerns clause. terms that conform substantially IO the language of this clause. including thts paragraph (c), and to notrfy the Contracting Officer Of the names Of SUbcOntraC- tars. 3Y aLNLnAL s?cCl~ltAnONS 3ctirar fury VE@IPY THL LOCATION Ot TELWWNL COUPANY rrRUCluRES ELCORL u(cAvATtoN, l~P4ln. DC nmDu ton Au TRCWNING ml0 l ovlM WNGUIT WI mar roclrmNc 01 nlc TnLfKw. BorM cmuoN AN0 suAnArc. u vtQIIco 8Y ME lEu?HoNc COVNIY ImlMlm, K RCSWSl@U ION THC UCUCM QC CWGUIT UWIIOINC TO TELfrnnOlC ecuwaY PfcIIcAToNS AN0 UNOLR Tnf INwfcTlQN # A MLOwQlrE coucAHY rncMa4 IIOCLcToa. CuPluOr YLQiC aT10nt mf Avub~u ma111(a~fff won nfa~fm. ‘*oCK TcumoNc UlU OOCurC Tt4c Tw mSlTloN IN AU TRCIVQ(U urmca rro ~~awu~~~cu mu onan umiliu 86 u.LorvLO ASOVL Ta 1CumoNL cow*)II roSmoN. TMWCRC WILL ff NOotANGC IN OCSIGNWlTMGnT”f CONC”Rnt”Cf 3 YMI TfLfMONL SOLVWY TRf)(o1 INOfCIoR AHO CNGINfCk zBT~~AC!~IC TCCCMONC TRfNO4 e#)RGlNAlOn i714 )mO WLLIQ PRIOR TO COMTIlUCTlGN TO UlubroI . rrc-IIUCYION MEETING OATL ‘IlEMCN: ALL TAC- BAClKFlLL MATCRIAL Cc&SC 0) AN0 Q)L’*mo( TO K IN KCOIIOUUC WITH YUNICICAVCDU~ PIOCI~ ry# YINWUU RADIAL CLIARANCI To Of l? INO(fS MOM AU TIEIO( WCUPANlS UCCM UT.V, Mll V.U.L GLNIRAL oRDen Ia YlNlM8.U COVER TO CC U PCCICICO IN TRM) OETAJL :. mnO&JlT MATClllAL TO CC l-WC ??C CC IOI i *Ho m n FOR 4: : I(rzuRf l?IAT AU OUCTS AIL CLfAR AND ~%J~WRO?YL. CJ8C NLL LINU ARt IN PLKL :. IEIIOl. Mtfi 011 GRADE OUI(GU MAVINC A luoll 01 0 rccr on uss on A atrOt ewm ot za ma47 1113 of. GnCP) on Yonc UU$r Be CrWcD USING SCPAMWNS w LtQMoucc mn4 uu smw ~cwcic~m~S - LurcnuL XII w*. I AGGIIEGATC T-WC I CfMtNT. 1. uD( SccrroN To BC uYlTco To mo (0 0cGlcc IAmollY l cmc C+(D MO uonc nrul mm a0 omut news oc mm UK THAN n CUT MmJC AN0 CxcCmoNC Mum DC A?. l ovco &I TncNal lnPEcrOn. P*cIClc TfLLfmoNc WALL mowof PCCIF~C*lowS 8940 Is mEcnoN FOR wwsInucTloN. C00nOlNATt W)1)1( WITH ?ACICIC TLLEMONfSTnE)rC)( lNSf6 Ton MO oimx ALL coa-rnuFTtow nwmo Quwr~c~~ 10 lMHE TCLCMONE COYCANT TRLMn lNC?CffOII VU . TREND XI l E IN9LCTCO AND AaECTEO BT TfLU mm TQ BULItlLL ONELofLR to: l UAIMYAIN YINIYUU COVER OF 24-W RJBUC Wwrq tr 01 PRIVATE ?RoPCm . UAWTAIN YINIYM lr CllOM ALL T”LIM( -AMC CXM CA1.V. MR CIufORNIA NCLIC UTIUW Qy YISloW GCNEML OAOfA 1lC . AU TRE)ro( O*ctCCILL MATCRIAL To BE Cw I *rcD coW*cTION To CC IN rccOROAMCf WITM YcrwKlfAU WUNTY SIEClf CATtOM. l TMNOI l0 DC I(rSlfCTSO MO -FTC0 IYTELUWNC wu?ANv TRCNCM INPEcroR cnlon To CAcKflU mu . VEIIWV mC WCATION OF T&wWE Cowrwl RIS CT-MS SCFORC CXUVATION II-AU) !LOPER To: INTAIN UWlyUU Q)Wl OF 1C W CUCLK oQuu& lo- IWVATE PRWCWY TaNal l CWIU MArEmu m K CLlg -r ANG &loN To Df IN *ccQRGA%E lllTn YUUICPW JNlY OECIFlc*TloNC 3~31 rG K WSMeRO MO UCWTCO BY TEWNGNE run rnmai uwmon muon m WI~ILL ULL WV THE ~ounow oc TELCmGNc oLD11II su, umunu *wow ExuvAnm tie64~4ua PACIFIC BELL STANDARD UNDERGROUND SERVING AAR4NGEMENt MR RESIDENTIAL BUILDINGS (1 TO 4 LIVING UNITS) BNllOOW OR EQUIVALENT ATTACHMENT ‘A’ I Stone & Youngberg ,,I Established 1931 $1,159,636* City of Carlsbad Assessment District No. 92-1 (La Costa Downs) Limited Obligation Improvement Bonds CONTRACT OF PURCHASE The Mayor and City Council City of earlsbad 1200 Carlsbad Village Drive Carlsbad, California 92008- 1989 October -, 1995 Dear Mayor and City Council: Pursuant to discussions with Bond Counsel, Brown, Diven & Hentschke, and our investigation and analysis of the above captioned Bond issue of the City of Carlsbad (the “City”), Stone & Youngberg (the “Underwriter”), hereby offers to purchase all of the above-referenced Bonds subject to the following conditions: 1. 2. 3. 4. 5. The Bonds shall be issued pursuant to the provisions of the Improvement Act of 1911 (Division 7 of the California Streets and Highways Code) (the “Bond A&“) and a resolution of the City adopted on September 5, 1995 (the “Resolution of Issuance”) authorizing their issuance. The Bonds shall be as described in, and shall be issued and secured under and pursuant to a Bond Indenture, dated October 1, 1995. The Bonds shall mature in amounts such that debt service will be approximately equal each year (except in 1997) from January 2, 1997 through January 2,201l. The Bonds shall be callable in advance of their stated maturity at 105% plus interest to the next interest payment date. Interest on the Bonds shall be paid semiannually each January 2, and July 2, commencing July 2, 1996. The total principal amount of the Bonds to be issued shall not exceed $1,159,636. ’ Preliminary, not to exceed. -l- 1372 15260 VENTURA BOULEVARD - SHERMAN OAKS, CALIFORNIA 3,403 - TELEPHONE 818 789 2663 6. All Bonds shall be issued in registered form based on instructions to be delivered by the Underwriter to the City prior to delivery of the Bonds. Each Bond issued shall be accompanied by an attached principal and interest schedule. 7. Bonds shall bear interest at the rate of percent per annum ( %). The purchase price shall not exceed $30,000. . 8. The Bonds shall be dated and delivered October -, 1995. 9. The City shall, within 7 business days of the date hereof, deliver final Official Statements to the Underwriter in sufficient quantity to comply with applicable Securities and Exchange Commission and Municipal Securities Rulemaking Board regulations. 10. The City represents to and agrees with the Underwriter that: (a) the City is and will be at the date of Closing duly authorized and existing under the Constitution and laws of the State of California with the powers and authority, among others, (i) to issue the Bonds pursuant to the Constitution of the State of California and the Bond Act, (ii) to execute and deliver this Contract of Purchase, and (iii) to carry out and consummate the transactions contemplated by this Contract of Purchase and the Bond Indenture; (b) when delivered to and paid for by the Underwriter at the Closing in accordance with the provisions of this Contract of Purchase, the Bonds will have been duly authorized, executed, issued and delivered and will constitute valid and binding limited obligations of the City of the character permitted to be issued by the Bond Act, in conformity with, and entitled to the benefit and security of the Bond Indenture; (c) by official action of the City prior to or concurrently with the acceptance hereof, the City duly adopted the Resolution of Issuance and authorized and approved the execution and delivery of, and the performance by the City of the obligations on its part contained in the Bonds, the Bond Indenture and this Contract of Purchase; (d) the adoption of a resolution of the City authorizing the Bonds issuance and the execution and delivery of the Bonds and this Contract of Purchase, and compliance with the provisions on the City’s part contained herein, will not conflict with or constitute a breach of or default under any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the City is party or is otherwise subject, nor will any such execution, delivery, adoption or compliance result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the City under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided by the Bond Indenture; (e) to the best of its knowledge, there is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, governmental agency, public board or body, pending or threatened against the City affecting the existence of the City or the titles of its officers to their respective offices or seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Bonds or the collection of revenues pledged or to be pledged to pay the principal of, and premium, if any, and interest on the Bonds, or the pledge thereof, or in any way contesting or -2- 1372 affecting the validity or enforceability of the Bonds, the Bond Indenture, or this Contract of Purchase, or contesting the powers of the City or its authority to issue, enter into, adopt or perform its obligations under any of the foregoing; (I) all approvals, consents, authorizations, certifications and other orders of any governmental authority, board, agency or commission having jurisdiction, and all filings with any such entities, which would constitute conditions precedent to or would materially adversely affect the performance by the City of its obligations hereunder or under the Bond Indenture, have been duly obtained and no further consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the City that has not been obtained is or will be required for the issue and sale of the Bonds or the consummation by the City of the other transactions contemplated by this Contract of Purchase, except as such may be required under the state securities or Blue Sky laws in connection with the distribution of the Bonds by the Underwriter. (g) this Contract of Purchase and the Bond Indenture, have been duly authorized, executed and delivered or adopted, as the case may be, by the City and constitute valid, binding and enforceable limited obligations of the City in accordance with their respective terms except as the same may be limited by bankruptcy, insolvency and other laws affecting creditors’ rights generally. Il. The purchase price of the Bonds shall be paid in full in federal funds to the order of the City, upon delivery to the Underwriter of the Bonds accompanied by: (a) The approving legal opinion of Brown, Diven & Hentschke, Bond Counsel. The legal opinion shall be printed on the Bonds at no charge to the Underwriter. (b) A no-litigation certificate of the City. (c) The opinion of Brown, Diven & Hentschke, Bond Counsel, dated the date of Closing, to the effect that (1) the Bonds are not subject to the registration requirements of the Securities Act of 1933, as amended, and the Bond Indenture is exempt from qualification pursuant to the Trust Indenture Act of 1939, as amended; and (2) the Contract of Purchase has been duly authorized, executed and delivered by the City and (assuming due authorization, execution and delivery by, and enforceability against, the Underwriter) constitutes a valid and binding agreement of the City. (d) An executed copy of the Continuing Disclosure Agreement. 12. (a) The City shall pay the following expenses incidental to the performance of the City’s obligations hereunder: (i) the cost of the printing of the bonds, the Preliminary Official Statement and the Official Statement; (ii) the fees, expenses and disbursements of engineers, accountants, Bond Counsel, tax and special assessment services and of any other experts or consultants retained by the City; and (iii) any other expenses and costs of the City incident to the performance of its obligations in connection with the authorization, issuance and sale of the Bonds, including out-of-pocket expenses of the City. (b) The Underwriter shall pay all expenses incurred by them. -3- 1372 “C *: , 13. The obligation of the Underwriter to accept delivery of and pay for the Bonds on the closing date shall be subject, at the option of the Underwriter, to the following additional conditions: (a) At the Closing Date, the Bond Indenture and any other applicable agreement shall be in full force and effect, and shall not have been amended, modified or supplemented except as may have been agreed in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bonds and with the transactions contemplated thereby and by this Contract of Purchase, all such actions as, in the opinion of Bond Counsel shall be necessary and appropriate; (b) Between the date hereof and the Closing Date, the market price or marketability of the Bonds at the initial official prices set forth herein shall not have been materially adversely affected, in the judgment of the Underwriter (evidenced by a written notice to the City terminating the obligation of the Underwriter to accept delivery of and pay for the Bonds) by reason of any of the following: (1) (2) Legislation enacted or pending by the Congress of the United States of America or a decision rendered by a court established under Article III of the Constitution of the United Sates of America or by the Tax Court of the United States of America or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Treasury Department, the Joint Tax Committee, or the Internal Revenue Service of the United States of America, with the purpose or effect, directly or indirectly, of imposing federal income taxation upon the interest as would be received by the owners of the Bonds; Legislation enacted or pending by the Congress of the United States of America, or an order, decree or injunction issued by any court of competent jurisdiction or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds, or the Bonds, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Bond Indenture is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the Bonds, or of the Bonds including any or all underwriting arrangements, as contemplated hereby or by the Official Statement or otherwise is or would be in violation of the federal securities laws as amended and then in effect; (3) Any amendments to the Federal or California Constitution or action by any Federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the City, its property, income, securities (or interest thereon), validity or enforceability of the assessments or the ability of the City to acquire the improvements or undertake the financing as contemplated by the Bond Indenture and the Official Statement; or -4- 1372 (4) Any event occurring, or information becoming known which, in the judgment of the Underwriter, makes untrue or misleading in any material respect any statement or information contained in the Official Statement concerning the City, the Improvements, or the property assessed. 14. This contract is conditioned upon the successful consummation of the proceedings and should said proceedings relating to the Assessment District No. 92-1 (La Costa Downs) for any reason fail to be successfully consummated, there shall be no obligation on the part of the City. Respectfully submitted, STONE & YOUNGBERG By: Partner Accepted this day of October, 1995 CITY OF CARLSBAD By: Lisa Hildabrand Finance Director -5- 1372 . * DRAFT . . BOND INDENTURE r This Bond Indenture (the “Indenture”) dated as of October 1, 1995, is entered into and approved by the City of Carlsbad, (the “Issuer”) to establish the terms and conditions pertaining to the issuance of bonds in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 92-1 (LA COSTA DOWNS) (the “Assessment District”). This Indenture and the Bonds shall constitute a contract between the Issuer and the registered owners of the Bonds and shall in all respects be governed by the provisions of the Improvement Act of 1911. SECTION .l . SECTION 2. SECTION 3. SECTION 4. SECTION 5. SECTION 6. SECTION 7. Unpaid Assessments. The Treasurer shall, immediately upon the completion of the 30- day cash collection period, determine the assessments which are unpaid and the aggregate amount thereof. Registered Bonds. Said bonds shall be issuable only as fully registered bonds in the respective denominations of the unpaid assessments against each lot or parcel of land assessed in said special assessment district. Date of Bonds. All of said bonds shall be dated the - day of October, 1995, and interest shall accrue from that date. Maturity and Denomination. The bonds shall be issued to represent each unpaid assessment of One Hundred Fifty Dollars ($150,00) or more in serial form. The term of the bonds shall be fourteen (14) years from the second day of January next succeeding the next September 1st following their date and, at the expiration of said time, the whole principal sum then unpaid shall be due and payable. On the second day of January of each year, following the next September 1st after their date, a substantially even proportion of the aggregate amount is due and payable to the registered owner of each bond, until the whole is paid, with all accrued interest, as set forth on Schedule A attached hereto. Interest. Each bond shall bear interest at the rate of % per annum. Interest shall be payable semiannually on the second days of January and July of each year, commencing July 2, 1996. Place of Payment. The principal and interest on the bonds shall be payable in lawful money of the United States of America at the Office of the Treasurer. Principal and interest on said bonds shall be paid by check to the registered owner thereof at the registered owner’s address as it appears on the books of registration, or at such address as may have been filed with the Treasurer for that purpose, as of the 15th day of the month immediately preceding said interest payment date (the “Record Date”). Redemption. The bonds may be redeemed by the owner of, or any person interested in any lot or parcel of, the land described therein, at any time before maturity and before commencement of proceedings for sale, upon payment to the Treasurer, for the registered owner of the bond, of the amount then unpaid on the principal thereof, with interest thereon (if not previously paid) up to the next succeeding January 2 or July 2, as the case may be, at the rate set forth herein, and all penalties accrued and unpaid, together with a premium of five percent (5%) of said unmatured principal. . SECTION 8. Default. Should default be made in the annual payment upon the principal, or in the r payment of interest from the owner of said lot or parcel of land, or anyone in his or her behalf, the registered owner of the Bond i s entitled on or after the second day of January or July, as the case may be, following such default to declare the whole unpaid amount to be due and payable, and to have said lot or parcel of land advertised and sold forthwith, in the manner provided by law; provided however, that any bond may be reinstated after such default in the manner provided in the Improvement Act of 1911. In the event of a default in the annual payment from the principal hereof or in any payment of the interest hereon from the owner of said lot or parcel of land, the Issuer shall have no obligation to initiate proceedings to foreclose on said lot or parcel unless and until the Owner of the Bond provides the City Treasurer with evidence that the registered owner of this bond has been given notice of the delinquency to the Owner of such parcel pursuant to Section 6500 of the Improvement Act. The Issuer shall have no obligation to purchase such lot or parcel which is subject to foreclosure sale as a result of a default in the annual payment upon the principal hereof or in any payment of the interest hereon. In case of such default there shall be immediately added to such defaulted amount, two percent (2%) of the amount thereof, and on the first day of each month following such default there shall be added a further penalty of two percent (2%) of such defaulted amount. The two percent (2%) penalty first imposed shall be retained by the Treasurer as a cost of servicing the delinquency and all subsequent penalties shall be paid to the registered owner of the bond along with and as a part of such defaulted payment. SECTION 9. Exchange of Registered Bonds. Fully registered bonds may be exchanged for a like aggregate principal amount of bonds of the same series, interest rate and maturity, subject to the terms and conditions provided in the system of registration for registered debt obligations, including the payment of certain charges, if any, upon surrender and cancellation of this bond. Upon such transfer and exchange, a new registered bond or bonds of any authorized denomination or denominations of the same maturity for the same aggregate principal amount will be issued to the transferee in exchange therefore. SECTION 10. Books of Registration. There shall be kept by the Treasurer sufficient books for the registration and transfer of the bonds and, upon presentation for such purpose, the Treasurer shall, under such reasonable regulations as the Treasurer may prescribe, register or transfer or cause to be registered or transferred, on said register, bonds as hereinbefore provided. SECTION 11. Execution of Bonds. The bonds shall be executed manually or in facsimile by the Treasurer. In case an officer who shall have signed or attested to any of the bonds by facsimile or otherwise shall cease to be such officer before the authentication, delivery and issuance of the bonds, such bonds nevertheless may be authenticated, delivered and issued, and upon such authentication, delivery and issue, shall be as binding as though those who signed and attested the same had remained in office. SECTION 12. Authentication. Only such of the bonds as shall bear thereon a certificate of authentication substantially in the form below, manually executed by the transfer agent and registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this Indenture, and such certificate of the transfer agent and registrar shall be conclusive evidence that the bonds so authenticated have been duly executed, authenticated and delivered hereunder, and are entitled to the benefits of this Indenture. 2 FORM OF CERTIFICATE OF AUTHENTICATION AND REGISTRATION This bond has been authenticated and registered on CITY TREASURER OF THE CITY OF CARLSBAD, CALIFORNIA as Paying Agent, Transfer Agent and Registrar SECTION 13. Negotiability, Registration and Transfer of Bonds. The transfer of any bond may be registered only upon surrender thereof to the transfer agent and registrar, together with an assignment duly executed by the owner or the owners attorney or legal representative, in satisfactory form. Upon any such registration of transfer, a new bond or bonds shall be authenticated and delivered in exchange for such bond, in the name of the transferee, of any denomination or denominations authorized by this Indenture, and in an aggregate principal amount equal to the principal amount of such bond or principal amount of such bond or bonds so surrendered. In all cases in which bonds shall be exchanged or transferred, the transfer agent and registrar shall authenticate at the earliest practical time, bonds in accordance with the provisions of this Indenture. All bonds surrendered in such exchange or registration transfer shall forthwith be cancelled. The legislative body may make a charge for every such exchange or registration of transfer of bonds sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or registration of transfer. The transfer agent and registrar shall not be required to make such exchange or registration of transfer of bonds between a Record Date and the next succeeding interest payment date. SECTION 14. Ownership of Bonds. The person in whose name any bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal and redemption premium, if any, of any such bond, and the interest on any such bond, shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such bond, including the redemption premium, if any, and interest thereon, to the extent of the sum or sums so paid. SECTION 15. Mutilated, Destroyed, Stolen or Lost Bonds. In case any bond secured hereby shall become mutilated or be destroyed, stolen or lost, the legislative body shall cause to be executed and authenticated a new bond of like date and tenor in exchange and substitution for and upon the cancellation of such mutilated bond or in lieu of and in substitution for such bond destroyed, stolen or lost, upon the owners paying the reasonable expenses and charges in connection therewith, and, in the case of a bond destroyed, stolen or lost, his filing with the legislative body of evidence satisfactory to it and to the Treasurer thereof that such bond was destroyed, stolen or lost, and of his ownership thereof, and furnishing the legislative body with indemnity satisfactory to it. SECTION 16. Cancellation of Bonds. All bonds paid or redeemed, either at or before maturity, shall be cancelled upon the payment or redemption of such bonds, and shall be delivered to the transfer agent and registrar when such payment or redemption is made. All bonds cancelled under any of the provisions of this Indenture shall be destroyed by the transfer agent and registrar, which shall execute a certificate in duplicate describing the bonds so destroyed, and shall retain said executed certificate in its permanent files for the issue. 3 r . ‘r SECTION 17. L SECTION 18. SECTION 19. SECTION 20. IN WITNESS Improvement Fund. The proceeds from the sale of the bonds, after deposit of required amounts in the Redemption Fund, shall be placed in the fund hereby created, pursuant to Sections 10602 and 10424 of the California Streets and Highways Code, as amended, which shall be designated by this name of the Assessment District and called the “Improvement Fund”, and the monies in said Fund shall be used only for the purposes authorized in said assessment proceedings. Any surplus in the Improvement Fund after completion of the improvements shall remain in the Improvement Fund for a period not less than two (2) years from the receipt of bond proceeds as provided in Section 10427.1 of the California Streets and Highways Code, and thereafter shall be utilized or distributed as determined by the legislative body. Redemption Fund. Principal of and interest on said bonds shall be paid out of the Redemption Fund as authorized pursuant to the “Improvement Act of 191 l”, being Division 7 of the Streets and Highways Code of the State of California. Accrued interest paid by the purchaser of the bonds, if any, shall be deposited in the Redemption Fund. In all respects not recited herein, said bonds shall be governed by the provisions of the Improvement Act of 1911. Order to Print and Authenticate Bonds. The Treasurer is hereby instructed to cause bonds, as set forth above, to be printed, and to proceed to cause said bonds to be authenticated and delivered to an authorized representative of the purchaser, upon payment of the purchase price as set forth in the accepted proposal for the sale of bonds. Arbitrage Certificate. On the basis of the facts, estimates and circumstances now in existence and in existence on the date of issue of the bonds, as determined by the Treasurer, said Treasurer is hereby authorized to certify that it is not expected that the proceeds of the issue will be used in a manner that would cause such obligations to be arbitrage bonds. Such certification shall be delivered to the purchaser together with the bonds. WHEREOF, the Issuer has executed this Bond Indenture on the day and year first hereinabove written. CITY OF CARLSBAD By: FINANCE DIRECTOR 4