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HomeMy WebLinkAbout1998-06-23; City Council; 14741; RANCHO CARILLO ASSESSMENT DISTRICT - 96-1 APPROVAL OF THE RESOLUTION OF INTENTION TO FORM AN ASSESSMENT DISTRICT, AND RELATED ACTIONS0 LM g 4 a" .. z 0 F 2 J i3 z 3 0 0 &7- 73 r' )CITY OF CARLSBAD - AGENLA * BILL AB# )% ?y/ TITLE: DEPT. HD. MTG. 6/23/98 APPROVAL OF THE RESOLUTION OF INTENTION TO CITYATTYC FORM AN ASSESSMENT DISTRICT, AND RELATED - DEPT. FIN ACTIONS CITY MGR 6 RANCHO CARRILLO ASSESSMENT DISTRICT - 96-1 RECOMMENDED ACTION: Adopt Resolution No. s8 -20' adopting a map showing the proposed bounda special Assessment District and making appointments. Adopt Resolution No.@8 -ar t) declaring intention to order the acquisition o improvements in a proposed Assessment District; declaring the improvements special benefit; describing the district to be assessed to pay the costs and ( thereof; and providing for the issuance of bonds. Adopt Resolution No.98-9'' passing on the report of the assessment engineer, public hearing and ordering the initiation of assessment ballot procedures. Adopt Resolution No. 48 ~8 IaTevising city Council Policy Statement 33. ITEM EXPLANATION: In April 1993, City Council approved proceeding with the formation of a financins to fund the construction of certain public improvements necessary to serve tt- Ranch area. In November 1996, Council accepted a petition from the Ranch developers to form a 191 3 Act assessment district and approved an acquisition a which allowed Continental Ranch, Inc. (the property owner) to proceed construction of public facilities included within the financing district. Under the a! the property owner must construct the improvements to the City's standards, an will acquire qualifying improvements subject to the approval of the City Engineer bonds for the District are issued. The purpose of the assessment district is to spread the cost of the public impr fairly among the property owners who will benefit from the improvements. Tht participated in similar financing programs for Alga Road, Palomar Airport Roac Blvd. and improvements in the Carlsbad Ranch area. Since those meetings, C Ranch, Inc. and City staff have worked to create a district financing plan that con City Council Policy Statement 33 (Assessment Districts), and the general directio the Council. THE PROPOSED DISTRICT The boundaries of the proposed district generally consist of the area of the Ranc Master Plan, including the Leo Carrillo Park site. The improvements to be pi assessment district include: Melrose Drive, from Palomar Airport Road to Alga Road. Six lanes (2 are ( general benefit and will be paid by the developer). Palomar Airport Road, 1000 feet east and 700 feet west of the Melrose interse Utility backbone systems 2 PAGE 2 OF AGENDn el ILL NO. / 4.7 q / a e Riparian mitigation Relocation of the Vallecitos Water District sewer mains 0 Incidental design and administration All work is subject to review and approval by the City Engineer and City Council. estimated costs for the improvements as shown in the attached preliminary e report is $23.3 million. The developer will pay for the costs related to the gener, portions of the road and for the special benefit attributed to the school site and Le park totaling about $759,500. Value to Lien Concerns: installation of the improvements to be financed. A project may be approved wii between 4:1 and a minimum of 3:l if the ratio is recommended by both bond coc the underwriter and if the City Council finds the reduced ratio to be within pa acceptable to them. In addition, there should be no overlapping bond assessmei liens unless the combined assessments are within the property value ratios nott and approved by the City Council, upon the advise of bond counsel. Based on the guidance provided by Policy 33, the following limits are being placc District. These guidelines have been developed upon the advice of the bond COL the underwriter. 1. The amount of bonds to be issued will be limited to an amount which would . 3:l value to lien on the total project. In addition, a certain amount of bond proceec escrowed (set aside in a trust fund) which will bring the value to lien ratio down to a villaae bv villaae basis. The escrowed bond proceeds will be released to the d when sufficient value has been demonstrated to the City’s satisfaction. AGcording to Policy 33, the project property value to lien ratio should be 4:l 2, A further restriction on the issuance of bonds will be that the estimated avc burden for any single family home in the District should not be expected to exceec the estimated purchase price. This may further restrict the size of the bond issue. 3. One other agreement that the developer will be asked to execute if Council is a prepayment agreement. Currently, the assessor‘s parcels on the property do r the Villages as proposed by the developer. As final maps are processed, the para subdivided to eventually yield the units as shown on the developer’s schedule. Ir: avoid the possibility of the yields being less than proposed by the developer; creating a lien on a property in excess of that of other similar properties in the prepayment agreement is being developed. The prepayment agreement will state that prior to the approval of a final map, a prl assessment spread will be performed. If the preliminary assessment spread sh engineer’s report, the excess must be paid by the developer into the Distric document will be available for Council review prior to the public hearing date. assessment exceeding more than 103% of the maximum assessment as shoi 3 ,/ PAGE 3 OF AGENJL NO. I 4; 7 Y 1 0 Pass through Agreement : Continental Ranch, Inc. has requested to be allowed to pass-through the assessm prospective purchasers of the individual lots. As required under Policy 33, a pas authorization agreement is being drawn up which is substantially the same as the by the Alga Road assessment district. This document will be available for Coun prior to the public hearing date. As required by Policy 33, the City's Staff Committee has reviewed this Assessme and finds that it complies with the terms and conditions of the Council's policy. Requested Actions The actions being taken by the Council at this time will accomplish the following ta$ are required as part of the district formation process: 1) Approval of the boundary map describing the area and parcels to be ass1 the subject improvements and appointing the consultants needed to con- District . Ordering the acquisition of the public improvements, and declaring the worl special benefit, describing the area to be assessed, and providing for th bonds to pay for the improvements. Approving the Engineer's Report which describes the costs to be assessed method of assessment to be used by the district, and setting the date for th6 public hearing. 2) 3) 4) Amend Council Policy Statement No. 33. All of the above actions are required under state law to be part of the process of foi district, issuing bonds, and levying assessments. CHANGES TO CITY COUNCIL POLICY STATEMENT 33 Due to the adoption of Proposition 218 and new titles for certain City staff, sor changes are being recommended to City Council Policy Statement 33. These are Exhibit 4. Proposition 21 8 requires that assessment districts only assess specia to property owners. General benefits cannot be included in the assessment dist Council Policy Statement 33 has been revised to make it clear that while there s mutual benefit to the City as well as to the property owners, the improvements do 1 special benefit to the property owners. FISCAL IMPACT: The Rancho Carrillo Assessment District will fund improvements and related cost approximately $23.3 million. This estimate includes debt issuance costs establishment of a 10% debt service reserve fund. The City will receive reimbursc certain administrative costs related to the formation of the Assessment District as 1 cover ongoing costs. The City is not responsible for the funding of any of the imprc included within the district. The calendar calls for bonds to be sold in September I! 4 PAGE 4 OF AGENDA @ ILL NO. / 7, 7 y/ 0 EXH l8lTSi 1. Location Map. 2. City of Carlsbad, Assessment District No. 96-1 Engineer’s Report, March 2, 1998. City Council Policy Statement 33 - Marked to show changes. Resolution No. 98 -do?adopting a map showing the proposed boundaries ( a special Assessment District and making appointments. Resolution No.%/J I D declaring intention to order the acquisition c improvements in a proposed Assessment District; declaring the improvemc of special benefit; describing the district to be assessed to pay the c expenses thereof; and providing for the issuance of bonds. Resolution NO.%~C?-II passing on the report of the assessment enginec preliminary approval, and setting a time and place for a public hearing and the initiation of assessment district ballot procedures. Resolution No.% e %/& adopting a revised City Council Policy Stateme (Rancho Carrillo) PI 3. 4. 5. 6. 7. Assessment District Financing of Public Improvements. 5 PROJECT NAME ASSESSMENT DISJRICJ 06-1 D?AN@HO CARRILLO) E 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 4 e RESOLUTION NO. 98-209 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING A MAP SHOWING THE PROPOSED BOUNDARIES OF A SPECIAL ASSESSMENT DISTRICT AND MAKING APPOINTMENTS WHEREAS, the CITY COUNCIL of the CITY OF Carisbad, CALIFORNIA, has been presented and has received a map showing and describing the boundaries of the area proposed to be assessed in an assessment district under the provisions and authority of the "Municipal Improvement Act of 1913", being Division 12 of the Streek- and Highways Code of the State of California; said assessment district known and designated as ASSESSMENT DISTRICT NO. 96-1 (RANCHO CARRILLO) (the "Assessment District"). NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: SECTION 1: The above recitals are all true and correct. SECTION 2: A map showing the boundaries of the proposed Assessment District and lands and property to be assessed to pay the costs and expenses of the proposed acquisition of certain public improvements designated as "PROPOSED BOUNDARIES OF ASSESSMENT DISTRICT NO. 96-1 (RANCHO CARRILLO)" is hereby submitted, and the same is hereby approved and adopted. SECTION 3: The original map of the boundaries of the proposed Assessment District and one copy thereof is to be filed in the Ofice of the City Clerk. SECTION 4: A certificate shall be endorsed on the original and on at least one copy of the map of the Assessment District, evidencing the date and adoption of this Resolution, and within fifteen (1 5) days after the adoption of the Resolution fixing the time and place of hearing on the formation or extent of the Assessment District, a copy ( such map shall be filed with the correct and proper endorsements thereon with the 1 I -- 1 2 3 4 5 6 7 8 g 10 11 12 13 14 I.5 l6 17 18 19 20 21 22 23 24 25 26 27 28 0 0 County Recorder, all in the manner and form provided in Section 31 11 of the Streets ai Highways Code of the State of California. SECTION 5: The City Engineer is hereby appointed to perform all of the dutie and functions of the Superintendent of Streets as said duties are specified and designated in the "Municipal Improvement Act of 191 3", being Division 12 of the Street and Highways Code of the State of California, for the above-referenced Assessment District. SECTION 6: The place for recordation of the assessment roll and diagram sh be in the Office of the Superintendent of Streets, and said assessment roll and diagran upon recordation, shall be kept as a permanent record. SECTION 7: The North County Times is hereby designated as the newspape for all publications as required by law and as necessary for completion of this Assessment District. SECTION 8: The firm of Berryman & Henigar is hereby appointed the Assessment Engineer for said proceedings, and said Assessment Engineer shall perform all of the duties and responsibilities as set forth by law as they relate to said Assessment District. SECTION 9: The law firm of Brown Diven Hessell & Brewer LLP is hereby appointed to act as Bond Counsel for the purposes of preparing proceedings and issui an approving opinion attesting to the validity of the proceedings and the enforceability the bonds. SECTION IO: The law firm of Jones Hall is hereby appointed to act as Disclos Counsel for the purposes of preparing an official statement for the sale of the bonds. SECTION 1 1 : That Kadie-Jensen Johnson & Bodnar is hereby appointed as tt Financial Advisor to the City for the purposes of preparing proceedings and issuance and sale of the bonds. .. I 2 1 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 0 e SECTION 12: That Stone & Youngberg LLC is hereby appointed as the Underwriter with respect to the sale and delivery of the bonds. SECTION 13: That this legislative body hereby establishes a special Improvement Fund designated by the name and number of the Assessment District, ai into said fund shall be placed all proceeds from the sale of bonds and cash collections In order to expedite the improvements or acquisition under these proceedings and as authorized by law, funds from any available source may be transferred into said speck fund. Any funds transferred are a loan to the fund and shall be repaid out of the proceeds of the sale of bonds as authorized by Section 1021 0 of the Streets and Highways Code of the State of California. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Counc of the City of Carlsbad, held on the 23rd day of following vote: June , 1998, by the AYES: Council Members Lewis, Finnila, Nygaard and Hall NOES: None ABSENT: Council Member Kulchiri ABSTAl N : None ATTEST: AL&iUTENKwNz, city Clerd P I?- .x 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 5 0 0 RESOLUTION NO. 98-210 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DECLARING INTENTION TO ORDER THE ACQUISITION OF CERTAIN IMPROVEMENTS IN A PROPOSED ASSESSMENT DISTRICT, DECLARING THE IMPROVEMENTS TO BE OF SPECIAL BENEFIT, DESCRIBING THE DISTRICT TO BE ASSESSED TO PAY THECOSTSAND EXPENSESTHEREOF,ANDPROVlDlNG FORTHE ISSUANCE OF BONDS Be it Resolved by the City Council of the City of Carlsbad (the "City") as follows SECTION 1. The public interest and convenience require, and it is the intentic of this body, pursuant to the provisions of Division 12 of the Streets and Highways Cod of the State of California (the "Municipal Improvement Act 191 3") (the "Improvement Act"), to order the acquisition of certain public improvements, together with appurtenances and appurtenant work, in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 96-1 (RANCHO CARRILLO) (hereinafte, referred to as the "Assessment District"). DESCRIPTION OF IMPROVEMENTS TO BE ACQUIRED A. The public improvements to be acquired are generally described as follows: roadway improvements to Melrose Drive from its existing north( termination north of Alga Road to Palomar Airport Road, improvements Palomar Airport Road approximately 1000 feet east and 700 feet west c the Melrose Drive intersection, sewer mains, water mains and reclaimec water mains and pressure reducing station along the roadway improvements, riparian mitigation for the roadway improvements, relocation of sewer mains and grading for expansion of Poinsettia Lane together with appurtenances and appurtenant work, all being necessaq .- 1 2 3 4 5 6 7 a 9 10 11 12 13 14 l5 16 17 18 19 20 21 22 23 24 25 26 27 28 e e for and to specially benefit properties within the boundaries of the Assessment District. All rights-of-way and easements required for the improvements shall be shown upon the plans referred to herein and to be filed with these proceedings. All of the improvements to be acquired are to be installed at the places and in the particular locations, and to the sizes, dimensions and materii to the lines, grades and elevations as shown and delineated upon the plans, profiles and specifications, all to be made a part of the Assessmc Engineer's Report. The description of the improvements contained in this Resolution is general in nature, and the plans and profiles of the work as contained ir the Assessment Engineer's Report shall be controlling as to the correct and detailed description thereof. DESCRIPTION OF ASSESSMENT DISTRICT B. C. D. SECTION 2. The improvements are of special benefit to the properties and I: within the Assessment District, and this legislative body hereby makes the expenses of the acquisition of such improvements chargeable upon the Assessment District, which is described as follows: All of that certain territory ir the proposed Assessment District included within the exterior boundary lines shown on the map exhibiting the property specially benefitted and proposed to assessed to pay the costs and expenses of the acquisition of the work and improvements described above, such map entitled "PROPOSED BOUNDARIE ASSESSMENT DISTRICT NO. 96-1 (RANCHO CARRILLO)", and which map was previously approved by this legislative body and is on file with the transcr 1 2 3 4 5 6 7 8 g 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 e 0 of these proceedings. For all particulars as to the boundaries of the Assessme District, reference is hereby made to such boundary map. REPORT OF THE ASSESSMENT ENGINEER SECTION 5. The proposed improvements are hereby referred to Berryman & Henigar (the “Assessment Engineer”), who is hereby directed to make and file a repori as required by the Improvement Act, Article XlllD of the Constitution of the State of California and the Omnibus Proposition 21 8 Implementation Act (Government Code Section 53750) (collectively, the “Assessment Law”), such report to be in writing and contain the following: A. B. Plans and specifications of the improvements proposed to be acquired; An estimate of the cost of the acquisition of the improvements proposec be acquired, including the cost of the incidental expenses, in connectior therewith; A diagram showing the Assessment District, which shall also show the boundaries and dimensions of the respective subdivisions of land withir such Assessment District, as the same existed at the time of the passa! of this Resolution of Intention, each of which subdivisions shall be giver separate number upon such diagram; The proposed assessment of the assessable costs and expenses of thc acquisition of the proposed improvements upon the several divisions of land in the Assessment District in proportion to the estimated special benefits to be received by such subdivisions, respectively, from such improvements. Such assessment shall refer to such subdivisions upon such diagram by the respective numbers thereof; The description of the improvements proposed to be acquired under these proceedings. C. D. E. 1 2 3 4 5 6 7 8 g 10 11 12 13 14 I-5 l6 17 18 19 20 21 22 23 24 25 26 27 28 0 * When any portion or percentage of the assessable costs and expenses of the acquisition of the improvements is to be paid from sources other than assessments, th amount of such portion or percentage shall first be deducted from the total estimated costs and expenses of such acquisition, and such assessment shall include only the remainder of the estimated costs and expenses. Such assessment shall refer to such subdivisions by their respective numbers as assigned pursuant to item D of this Sectio BONDS SECTION 4. Notice is hereby given that bonds to represent the unpaid assessments, and bear interest at the rate of not to exceed the current legal maximum rate of 12% per annum, will be issued hereunder in the manner provided in the Improvement Bond Act of 191 5 (Streets and Highways Code Section 8500 and following), which bonds shall be issued for a term not to exceed the legal maximum ter as authorized by law, THIRTY-NINE (39) YEARS from the second day of September next succeeding twelve (12) months from their date. The provisions of Part I I .I of SUI Act, providing an alternative procedure for the advance payment of assessments and i calling of bonds shall apply. The principal amount of the bonds maturing each year shall be other than an amount equal to an even annual proportion of the aggregate principal of the bonds, an the amount of principal maturing in each year, plus the amount of interest payable in tt year, will be generally an aggregate amount that is equal each year, except for the firs year's adjustment. Pursuant to the provisions of the Improvement Act and specifically Streets and Highways Code Section 10603, the Treasurer is hereby designated as the officer to collect and receive the assessments during the cash collection period. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 I.5 16 l7 18 19 20 21 22 23 24 25 26 27 28 0 0 IMPROVEMENT ACT SECJJON 5, Except a5 may otherwise be provided for in the issuance of the bonds described above, all of such improvements shall be acquired pursuant to the provisions of the Improvement Act. SURPLUS FUNDS SECTION 6. If any excess shall be realized from the assessment, it shall be used, in such amounts as the legislative body may determine, in accordance with the provisions of law for one or more of the following purposes: A. Transfer to the general fund; provided that the amount of any such transfer shall not exceed the lesser of One Thousand Dollars ($1 ,OOO,O( or five percent (5%) of the total from the Improvement Fund; B, As a credit upon the assessment and any supplemental assessment; C. D. To call bonds. For the maintenance of the improvements; or IMPROVEMENT FUND SECTION 7. The legislative body hereby establishes a special improveme fund identified and designated by the name of this Assessment District, and into such Fund monies may be transferred at any time to expedite the acquisition of .the authorizi improvements, and any such advancement of funds is a loan and shall be repaid out o the proceeds of the sale of bonds as authorized by law. GRADES SECTION 8. Notice is hereby given that the grade to which the work shall be done is to be shown on the plans and profiles therefor, which grade may vary from the existing grades. The work herein contemplated shall be done to the grades as indicatt on the plans and specifications, to which reference is made for a description of the gra I1 1 2 3 4 5 6 7 8 g 10 11 12 13 14 l5 l6 17 18 19 20 21 22 23 24 25 26 27 28 e 0 at which the work is to be done. Any objections or protests to the proposed grade sha be made at the public hearing to be conducted under these proceedings. PROCEEDINGS INQUIRIES SECTION 9. For any and all information relating to these proceedings, includ information relating to protest procedure, your attention is directed to the person designated below: LISA HILDABRAND, DIRECTOR OF FINANCE FINANCE DEPARTMENT CITY OF CARLSBAD 1200 CARLSBAD VILLAGE DRIVE CARLSBAD, CALIFORNIA 92008 (760) 434-2867 PUBLIC PROPERTY SECTION IO. All public property shall be subject to assessment in these proceedings unless otherwise expressly provided and listed herein. ACQUISITION SECTION 11. The public interest, convenience and necessity requires that certain land, rights-of-way or easements be obtained in order to allow the works of improvement as proposed for this Assessment District to be accomplished. The Assessment Engineer's Report, upon adoption, shall provide certification that the land, rights-of-way or easements have been acquired or will be acquired as part of the acquisition of the improvements, NO CITY LIABILITY SECTION 12. This legislative body hereby further declares not to obligate itself to advance available funds from the Treasury to cure any deficiency which may occur ii the bond redemption fund. This determination is made pursuant to the authority of 1 2 3 4 5 6 7 8 g 10 11 12 13 14 l5 l6 l7 18 19 20 21 22 23 24 25 26 27 28 0 0 Section 8769(b) of the Streets and Highways Code of the State of California, and such determination shall further be set forth in the text of the bonds issued pursuant to the "Improvement Bond Act of 191 5". WORK ON PRIVATE PROPERTY SECTION 13. It is hereby further determined to be in the best public interest ai convenience and more economical to do certain work on private property to eliminate any disparity in level or size between the improvements and the private property. The actual cost of such work is to be added to the assessment on the lot on which the wori done, and no work of this nature is to be performed until the written consent of the property owner is first obtained. ANNUAL ADMINISTRATIVE ASSESSMENT SECTION 14. It is hereby declared that this legislative body proposes to levy a annual assessment pursuant to Section 10204 of the Streets and Highways Code of tt State of California, such annual assessment to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of assessmei or from the administration or registration of any associated bonds and their related fun UTILITY IMPROVEMENTS SECTION 15. Pursuant to Section 101 10 of the Streets and Highways Code o the State of California, it is also the intention of this legislative body with respect to the improvements to be owned managed or controlled by any other public agency, regula1 public utility, or mutual water company, to enter into an agreement with the Vallecitos Water District or other public utility company or public agency with respect to improvements to be acquired prior to ordering the acquisition of improvements. 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 e PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, held on the 23rd day of , 1998, by the followin! vote: June AYES: Council Members Lewis, Finnila, Nygaard and Hall NOES: None ABSENT: Council Member Kulchin ABSTAIN: None ATTEST: J3 AL&M<EN~*~C- -5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT 6 0 m RESOLUTION NO. 98-211 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, PASSING ON THE REPORT OF THE ASSESSMENT ENGINEER, GIVING PRELIMINARY APPROVAL, AND SETTING A TIME AND PLACE FOR A PUBLIC HEARING AND ORDERING THE INITIATION OF ASSESSMENT BALLOT PROCEDURES WHEREAS, the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA, has instituted proceedings for the acquisition of certain public improvements and appurtenances under provisions of the "Municipal Improvement Act of 191 3" (the "Improvement Act"), being Division 12 of the Streets and Highways Code of the State of California (commencing with Section IOOOO), in a speciai assessment district known and designated as ASSESSMENT DISTRICT NO. 96-1 (RANCHO CARRILLO) (hereinafter referred to as the "Assessment District"; and, WHEREAS, there has been prepared and filed with the legislative bod! a Report of the Assessment Engineer (the "Report") as provided for in and required by Sections 10203 and 10204 of the Streets and Highways Code, Article XIllD of the Constitution of the State of California ("Article XlllD1') and t Proposition 21 8 Omnibus Implementation Act (Government Code Section 53750 and following) (the "Implementation Act") (the Improvement Act, Article XlllD and the Implementation Act are referred to herein collectively as the "Assessment Law") and the Report has been presented to this legislative bod for its consideration; 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 0 0 WHEREAS, a Resolution of Intention for the acquisition of the subject improvements was previously adopted by the legislative body; and the Repor as now presented shall stand as the Report for the purpose of subsequent proceedings hereunder. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1: The above recitals are all true and correct. SECTION 2: The Report of the Assessment Engineer referred to hereinabove is adopted, passed upon, and preliminarily approved, as follows: That the plans and specifications for the improvements proposc to be acquired, as contained in the Report, are hereby preliminarily approved and adopted; That the Engineer's estimate of the itemized and total costs anc expenses of the acquisition of the improvements and of the incidental expenses in connection therewith contained in the Report, and each of them are hereby preliminarily approved an adopted; That the diagram showing the Assessment District referred to and described in said Resolution of Intention, and also the boundaries and dimensions of the respective subdivisions of la within said Assessment District, as the same existed at the tim of the passage of said Resolution of Intention, each of which subdivisions have been given a separate number upon said diagram, as contained in the Report, is hereby preliminarily approved and adopted; A. B. C. *. 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 e 0 D. That the proposed assessment upon the several subdivisions c land in the Assessment District, in proportion to the estimated special benefits to be received by such subdivisions, respectively, from the improvements to be acquired, and of the incidental expenses thereof, as contained in the Report, are hereby preliminarily approved and adopted; That the descriptions of the improvements to be acquired contained in the Report are hereby preliminarily approved. E. SECTION 3: The Report shall stand as the Assessment Engineer's Report for the purpose of all subsequent proceedings had pursuant to the Resolution of Intention. SECTION 4: NOTICE IS HEREBY GIVEN THAT THE CITY COUNC OF THE CITY OF CARLSBAD WILL HOLD A PUBLIC HEARING ON THE ASSESSMENT DISTRICT AND THE PROPOSED ASSESSMENTS AT ITS REGULAR MEETING PLACE, BEING THE COUNCIL CHAMBERS AT 1200 CARLSBAD VILLAGE DRIVE, CARLSBAD, CALIFORNIA, ON SEPTEMBEF 1,1998 AT 6:OO PM. RIGHT TO SUBMIT ASSESSMENT BALLOT PURSUANT TO THE PROVISIONS OF THE ASSESSMENT LAW, EACHRECORDOWNEROFPROPERTYPROPOSEDTOBEASSESSED HAS THE RIGHT TO SUBMIT AN ASSESSMENT BALLOT IN FAVOR OF C IN OPPOSITION TO THE PROPOSED ASSESSMENT. ASSESSMENT BALLOTS WILL BE MAILED TO THE RECORD OWNER OF EACH PARCEL LOCATED WITHIN THE ASSESSMENT DISTRICT AND SUBJECT TO A PROPOSED ASSESSMENT. EACH SUCl I7 .i y: 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 6 0 OWNER MAY COMPLETE SUCH BALLOT AND THEREBY INDICATE THE SUPPORT FOR OR OPPOSITION TO THE PROPOSED ASSESSMENT. ALL SUCH BALLOTS MUST BE RECEIVED BY THE CITY CLERK AT THE FOLLOWING ADDRESS AT OR BEFORE THE TIME SET FOR THE CLOS OF THE PUBLIC HEARING: CITY CLERK CITY OF CARLSBAD 1200 CARLSBAD VILLAGE DRIVE CARLSBAD, CA 92008 A POSTMARK PRIOR TO SUCH DATE AND TIME WILL NOT BE SUFFICIENT. AT THE CONCLUSION OF THE PUBLIC HEARING, THE CITY COUNCIL SHALL CAUSE THE ASSESSMENT BALLOTS TIMELY RECEIV TO BE TABULATED. IF A MAJORITY PROTEST EXISTS, THE CITY COUNCIL SHALL NOT IMPOSE AN ASSESSMENT WITHIN THE ASSESSMENT DISTRICT. A MAJORITY PROTEST EXISTS IF, UPON THf CONCLUSION OF THE PUBLIC HEARING, ASSESSMENT BALLOTS SUBMITTED IN OPPOSITION TO THE ASSESSMENTS WITHIN THE ASSESSMENT DISTRICT EXCEED THE BALLOTS SUBMITTED IN FAVOF OF SUCH ASSESSMENTS. IN TABULATING THE BALLOTS, THE BALL0 SHALL BE WEIGHTED ACCORDING TO THE PROPORTIONAL FINANCIA OBLIGATION OF THE AFFECTED PROPERTY. SECTION 5. The City Clerk is hereby directed to mail notice of the Public Hearings and the adoption of the Resolution of Intention and of the filin 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 e 0 of the Report, together with the assessment ballot materials, to the record owners of all real property proposed to be assessed. SECTION 6: The City Clerk is hereby further directed to file a copy o the proposed boundary map in the Office of the County Recorder within fiftet (15) days of the adoption of the proposed boundary map; said boundary mal be in the manner and form as set forth in Division 4.5 of the Streets and Highways Code of the State of California. PASSED, APPROVED AND ADOPTED at a regular meeting of the C Council of the City of Carlsbad, held on the 23rd day of 1998, by the following vote: June AYES: NOES: None Council Members Lewis, Finnila, Nygaard and Hall ABSENT: Council Member Kulchin ABSTAIN: None ATTEST: ALETHA L. RAUTEN 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 0 0 RESOLUTION NO. 98-212 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING REVSIONS TO CITY COUNCIL POLICY STATEMENT NO. 33 WHEREAS, Proposition 21 8 was approved by the voters in 1996 and changec of the regulations regarding the use and methods by which assessment district financi be used; and WHEREAS, the City Council of the City of Carlsbad had previously ado Council Policy governing the use of assessment district financing of public improve and WHEREAS, the City has adopted new titles for certain City staff since tt revision of City Council Policy Statement 33 was approved. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cai California, as follows: 1. That the above recitations are true and correct. 2. That the revised City Council Policy 33 as shown in Exhibit I is hereby adop PASSED, APPROVED AND ADOPTED at a regular meeting of the Carlsba , 1998 by the following vote, to w Council held on the 23rd day of June AYES: Council Members Lewis, Finnila, Nygaard and Hall NOES: None ABSENT: Council Member Kulc ATTEST: (SEAL) ,f z 5 -.-..L...Y A c Pag CITY OF CARLSBAD Policy No. 33 Date Issued 6/2 Effective Date J General Subject: Assessment District Financing Cancellation Da of Public Improvements Supersedes No. Policy for Use of 1915 Act Bond City Council, City Manager, City Attorney, Department and D Employee Bulletin Boards, Press, File COUNCIL POLICY STATEMENT Specific Subject: Copies to: BACKGROUND In the past few years, the City Council has received several requests from property ow planned developments to use 19 15 Act Assessment District bond financing for public im be constructed as a condition of such developments. The City Council has determined tl financing and 1915 Act bonds should only be used if a mutual benefit to the City ca addition to the special benefit conferred to the properties within the development. determined further that such a mutual benefit can be found in the construction of arter compliment the City's arterial street system by linking communities within the Cit] assessment district financing for arterial streets may include sewer and water lines wl- Works Director determines it is necessary that they be located within the street right-of- may also include other incidental construction such as drainage facilities located with arterial highway and environmental mitigation required for the improvements. Council has also determined that it is necessary to establish circumstances under which the will approve assessment district financing as a guide to those who would seek to request it, PURPOSE To establish a policy regarding the requirements which must be met before the City Counci the financing of public improvements using 19 15 Act assessment district bonds. To establish a procedure for processing applications for assessment district financing and committee to apply the requirements of this policy to such applications. The commiL consider recommending that the City initiate a district. The policy is primarily intended to apply assessment districts proposed for prope predominantly undeveloped where the developers in the area propose to use public financ private financing for appropriate public improvements. It is not the intent of this policy to relieve any developer of responsibilities for public imF conditions of development related to the subdividing of property, the processing of tent parcel maps, or master plan developments. a Page Policy No. 33 Date Issued 712 Effective Date L General Subject: Assessment District Financing Cancellation Da of Public Improvements Supersedes No. Policy for Use of 19 15 Act Bond City Council, City Manager, City Attorney, Department and Dl Employee Bulletin Boards, Press, File CITY OF CARISBAD COUNCIL POLICY STATEMENT Specific Subject: Copies to: POLICY 1. The City may allow the financing of public improvements under the provisions of this the public facilities represent, in the City’s opinion, a mutual benefit to the corn special benefit to the prospective residents of the development. 2. Facilities which may be considered shall be public facilities in dedicated rights-of-wi and for which a public agency has on-going responsibility to maintain and operate. facilities to be financed are limited to: (a) Arterial streets identified on the circulation element of the Carlsbad General Plan. (b) Sewer and water lines to be located within the right-of-way of arterial streets wh (c) Drainage facilities and public utilities may be included which are appurtenant and (d) Environmental mitigation required for the project. Works Director determines it is necessary that they be so located. such streets. 3. Project property value to lien ratio should be 4: 1 after the installation of the improvemen financed. A project may be approved with a ratio between 4: 1 and a minimum of 3: 1 if t recommended by both bond counsel and the underwriter and if the City Council finds tht ratio to be within parameters acceptable to them. The value of the property proposed to ‘ shall be determined by an M.A.I. appraisal, performed by an appraiser selected by the Cit 4. Projects shall be at the stage where all criteria of this policy can be adequately assessed. Developments proposed for inclusion in a district shall have already received environme and shall have already received all legislative approvals such as zoning, master plans, spe Local Facilities Management Plans. The City Council may approve a district that include without legislative approvals if the improvement to be constructed is consistent with the and if the City Council finds the improvement is required in the public interest. 5. Assessment districts shall have the concurrence of the affected area’s property owner’s re not less than 60 percent, by area, of the land proposed to be assessed. The petition shall i acceptance of this policy and a waiver of the property owners’ rights under the Majority 1 The city Council is in no way required to proceed with the formation of an assessment dis $7 Pagl CITY OF CARLSBAD Policy No. 33 Date Issued 7/2 Effective Date 2 General Subject: Assessment District Financing Cancellation Dai of Public Improvements Supersedes No. Policy for Use of 1915 Act Bond City Council, City Manager, City Attorney, Department and Di Employee Bulletin Boards, Press, File Council finds that the creation of the district or the construction of the improvements wi best interest of the City. COUNCIL POLICY STATEMENT Specific Subject: Copies to: 6. The City shall select the assessment engineer, bond counsel, required, the financial con. required, an underwriter. In making such selections the City will take suggestions from proponents into account. The design engineer in consultation with and subject to approv Conflict of Interest related to real estate holdings within the district. The design enginee assessment engineer shall provide a Statement of Conflict of Interest as required under S 87100.1 of the Government Code (see attached). The bond counsel, underwriter and financial consultant will provide the City with a Statc 7. Bonds issued under this policy may be sold through a competitive or negotiated sale as ( the City Council. The Council will consider recommendations from staff and the City's consultant in selecting a method of sale. 8. A sum sufficient to pay all fees and costs for the proposed assessment district prior to aw contract shall be deposited with the City by the proponents of the district. The proponen be required to deposit with City a sum sufficient to cover all City costs incurred in conne review of a proposed district including staff review, legal review, administration, plan ch investigation, City Council review, inspection and property appraisals. These sums will 1 City to the degree used if the district is not successfilly completed or if such costs are not City from the district. If the district is confirmed any sum not retained by City shall be rt cash or applied as a credit against the assessments at the option of the proponents. 9. Improvements shall be constructed in accordance with the Municipal Improvement Act the assessment district bonds shall be issued in accordance with the Improvement Bond 1 unless the City Council determines otherwise. lO.Generally, there shall be no overlapping bond assessments or tax liens on the proposed SI assessment district at the time assessments are to be affirmed by the City. The City Cou advise of bond counsel, may approve an overlap provided the combined assessments are property value ratios of Paragraph 3 of this policy. 1 1 .The proponents of the district must demonstrate to the satisfaction of the City Council th financing or other means is available for the developments to be included within the disti r' Pagc CITY OF CARZlSBAD Policy No. 33 Date Issued 7/28 Effective Date 2 General Subject: Assessment District Financing Cancellation Datc Supersedes No. - COUNCIL POLICY STATEMENT of Public Improvements Policy for Use of 1915 Act Bond City Council, City Manager, City Attorney, Department and Dil Employee Bulletin Boards, Press, File to meet all assessment obligations between the time the district is formed and the pay o bonds or their assumption by the purchasers of the individual homes within the propose development. As part of the review, the City Council may also consider any indebtedr existing against the properties to be assessed. The district proponents must bring all pr bills current and agree to keep them current prior to confirmation of the district. Specific Subject: Copies to: 12. If the City Council determines it is necessary, a financial feasibility study me be requirc consultant selected by the City to be accomplished at the expense of the proponents of 1 ascertain whether or not the proposed development will find market acceptance. The C may accept a private sale bond purchase agreement from a qualified underwriting firm conditions satisfactory to the City in lieu of such a study. 13. As part of the structuring of the financing for the district the City Council shall require t adequate reserve fund be established to cover any potential defaults. The City is not rec advance monies to the reserve fund to pay for delinquencies. It is the City’s intent that Fund not be obligated in any way for future delinquencies. 14. The City Council may require the district proponents to enter into an agreement with thc individually and jointly responsible for the cost of any foreclosures which the City detei necessary in regard to the assessment district bonds. The City may, at its option, retain , prosecute the foreclosures in a timely manner in the name of the City and the proponent be responsible for all costs of such foreclosures. If the City Council approves a pass thr bond to the purchaser of an individual lot, the proponents shall be relieved of their oblii the agreement for such lot. 15. It is the policy of the City Council in approving basic legislative authorization for devel as master plans for planned communities, to give such approvals as part of the City’s or planning process. That is, the City, reserves the right to modifl the approvals in the htu that the construction of any part of a development does not vest any rights to complete ( of the development. Construction of public improvements pursuant to an assessment di undeveloped land, shall not vest any rights to the existing legislative approvals for the p assessed or to any particular level, type or intensity of use. Proponents of a district shal acknowledgment of this policy as part of their petition and shall expressly waive on thei on behalf of their successors and assigns any cause of action based on the case of Fw v determine the public interest may require. Such approvals, when given, are subject to a qq pag CITY OF CARLSBAD Policy No. 33 Date Issued 7/2E Effective Date 1 General Subject: Assessment District Financing Cancellation Dat Supersedes No. - COUNCIL POLICY STATEMENT of Public Improvements Policy for Use of 1915 Act Bond City Council, City Manager, City Attorney, Department and Dii Employee Bulletin Boards, Press, File Specific Subject: Copies to: Sacramento which might be applicable to properties to be assessed. 16. It is the City’s desire that proponents discharge the assessment district bonds applicable property prior to the individual sale of individual lots. The City Council may approve a of the bond obligation to a prospective purchaser at their sole discretion. A developer u secure approval of a pass through must apply to the City in writing, requesting permissi The letter must contain a plan of how the prospective buyer will be notified and the step accomplish the pass through. The required procedure shall include, but not be limited tc following: a) Provide for full disclosure of this and any other assessment financing applicable to tl prospective purchasers including principal interest rate, duration and amount payments. b) List the amount of the assessment lien in all sales brochures, all advertising and all 1 documents adjacent to the sales price of the property and in the same size type. c) Give prospective purchaser an option to have the assessment lien discharged prior tc escrow or to assume the assessment lien by a pass through as a part of the sales prict house or by a reapportionment of the assessment. (Sample disclosure forms are attac policy). Once the request is received from the developer, it will be placed on the Cc agenda for consideration after a complete review of the request by staff and the Poli Committee. 17. The principal purpose for the City Council’s approval of assessment district financing i: the links in the City’s circulation system. The City Council in that regard will not favor district which contemplates the construction of a portion of an arterial street unless it is logical way to connect with the City’s existing circulation system. The City may requirc to complete such circulation. proponents of a district expand the area to be included within a proposed district as may 18. It is the Council’s policy that, in the event that there are surplus hds generated throug of an assessment district and the sale of bonds, these surplus funds shall be used as follo (a) To complete any work related to the project that the Council determines is equitable reasonable as allowed by the 19134915 Act statutes. (b) The Council may direct staff to use a portion of this surplus to offset assessmenl owners in following years in a manner consistent with the 191 3/15 Act statutes. Unc 46 Pa Policy No. 33 Date Issued 7/; Effective Date - General Subject: Assessment District Financing Cancellation Da of Public Improvements Supersedes No. Policy for Use of 1915 Act Bond City Council, City Manager, City Attorney, Department and DI Employee Bulletin Boards, Press, File CITY OF CARLSBAD COUNCIL POLICY STATEMENT Specific Subject: Copies to: policy, an amount of up to 5 percent of the total bond issue size not to exceed $1 millio to offset annual assessments without further Council action. (c) Unless otherwise directed by Council, any amount in excess of that used to offset i described in (b) above will be used to call bonds at an appropriate bond call date, as ( staff and the City’s financial advisor. PROCEDURE: 1. It is the intention of the City Council that proponents of a district have an early oppor the proposal reviewed by City staff for compliance with this policy. In that regard, the hereby directs the creation of the Project Review Committee. The Committee shall City Manager, City Attorney, Cornunity Development Director, Planning Director, Director, Administrative Services Director (Chairperson), and Finance Director. Th shall meet on request with proponents of a district to review a project to determine whet requirements of this policy have been satisfied. Committee review shall take place presentation of an assessment district project to the City Council. Whenever any SL presented to the Council it shall be accompanied by a report containing the recommendations of the Committee made in regard to such project. The Committee mi proponents to furnish any information necessary to the evaluation of the proposed I Committee may require all or any part of the deposits provided for in this policy to be I the commencing their review of the project. 2. Upon review of the proposed assessment district and after considering the report of tht the City Council shall determine whether or not to approve proceeding with the forn district. It is the policy of the City Council of the City of Carlsbad to limit projects to tl forth in this policy. The City Council reserves to itself the authority to approve or di! proposed improvement district based upon the evidence received at the hearings held Council. Any exceptions to the criteria of this policy will be approved only upon an ex] by the City Council that the project is so affected with a public interest that the City shc providing tax free financing for the improvement in order to satisfy a public need. If the ( approves proceeding with the formation of the district, City staff and the proponents sha do that in accordance with State Law and the requirements of this policy. 3. Where there are multiple proponents of a proposed district they shall designate a authorized to act for the proponents in their dealings with the City. The spokesm responsible for collecting any fees for deposit with the City, providing any necessary inl the City, and for communicating as necessary back to the proponents. 41 0 r : PRELlMlNARY ENGINEER'S REPORT FOR ASSESSMENT DISTICT NO. 96-1 (RANCHO CARRILLO) A CQUlSlTlON DISTRICT ClTY OF CARLSBAD SAN DIEGQ COUNTY CA LlFORNlA Prepared by: Berryman & Henigar 77590 West Bernard0 Court, Suite 700 San Diego, CA 92727-7622 JN: 14195.00 May 21,1998 d 0 0 Assessment District No, 96-1 (Rancho Carrillo) Acquisition District TABLE OF CONTENTS SECTION PAC INTRODUCTION AND CERTIFICATIONS ..................................................................... PART I Plans and Specifications ............................................................................. PART II Cost Estimates ............................................................................................ PART Ill Assessment Roll and Method of Assessment Spread ................................. PART IV Annual Administrative Assessment ............................................................ PART V Diagram of Assessment District .I..I1.I.....I.....................II.....I...................... ; Description of Facilities ............................................................................... : PART VI Appendix A- Resolution of Intention (After Adoption) Appendix B Acquisition Agreement Appendix C- Environmental Certification Appendix D- Property Owners List I- At Adoption of Resolution of Intention 2- At Confirmation of the Assessment District Appendix E- Acquisition Cost Information (Bound Separately, Approval Pending) Appendix F- Assessment Engineer’s Qualifications Appendix G- Exhibit Identifying Rancho Carrillo Master Plan Villages s:\$project\carlsbad\rancho carnllokngr repts\preeng 5-21 .doc Berryman & Henigi Q Pa{ City Of Carlsbad - Ass 9 ssment District No. 96-1 (Rancho 9 arrillo) Preliminary Engineer's Report - May 21, 1998 AGENCY: CITY OF CARLSBAD PROJECT: ASSESSMENT DISTRICT NO. 96-1 (Rancho Carrillo) TO: CITY COUNCIL ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTION 10204 OF THE STREETS AND HIGHWAYS CODE Pursuant to the provisions of Article XlllD of the State Constitution, the "Munici Improvement Act of 1913", being Division 12 of said Code, City of Carlsbad Policy and the Resolution of Intention, adopted by the City Council of the City of Carlsb State of California, in connection with the proceedings for Assessment District No. 9 (Rancho Carrillo), (hereinafter referred to as the "Assessment District"), I, JEFFREY COOPER P. E., a Registered Professional Engineer and authorized representative Berryman & Henigar, the duly appointed Engineer of Work, herewith submit "Report" for the Assessment District, consisting of six (6) parts as stated below. PART I This part contains the plans and specifications which describe the general natL location and extent of the proposed improvements to be acquired. The plans i specifications are referenced herein and made a part hereof. Said plans i specifications are on file in the Ofice of the Superintendent of Streets / City Engineer PART I1 This part contains an estimate of the cost of the improvements, including capitali; interest, incidental costs and expenses in connection therewith as set forth in Exhibit and 2 inclusive, attached hereto. PART 111 This part consists of a proposed assessment of the total amount of the costs : expenses of the proposed improvements upon the several subdivisions of land wit the Assessment District, in proportion to the estimated special benefits to be recei\ by such subdivisions from said improvements, as set forth upon the assessment filed herewith and made a part hereof. PART IV This part contains the proposed maximum annual administrative assessment to levied upon each subdivision or parcel of land within the Assessment District to pay s:\$pro]ect\carlsbad\rancho carnllo\engr reptsbreeng 5-21 doc c Berryman & Hen& City Of Carlsbad - Assarnent District No. 96- I (Rancho @rille) Preliminary Engineer’s Report - May 2 I, 1998 Pa9 costs incurred by the City of Carlsbad, and not otherwise reimbursed, resulting from administration and collection of assessments or from the administration and registral of any associated bonds and reserve or other related funds, PART V This part contains a map showing the boundaries of the Assessment District, anc diagram showing the Assessment District, the boundaries and the dimensions of i subdivisions of land within said Assessment District, as the same existed at the time the passage of the Resolution of Intention, is filed herewith and made a part hereof, E a part of the Assessment District Report. PART VI This part consist of a detailed description of the improvements to be funded by t accepted or to be accepted by the City of Carlsbad. This report is submitted on the 2Ist day of May, 1998. Assessment District and a right of way certificate certifying the status of the right of N 4 44= JEFFR . COO R P.E., R.C.E. No. 31572 (Expires 12/31/2000) BERRYMAN & HENIGAR ENGINEER OF WORK CITY OF CARLSBAD STATE OF CALIFORNIA Preliminary approval by the CITY COUNCIL of the CITY OF CARLSBAD, SAN DIEC COUNTY, CALIFORNIA, on the day of , 1998. ALETHA L. RAUTENKRANZ, CITY CLERb CITY OF CARLSBAD STATE OF CALIFORNIA Final approval by the CITY COUNCIL of the CITY OF CARLSBAD, SAN DIEC COUNTY, CALIFORNIA, on the day of , 1998. ALETHA L. RAUTENKRANZ, CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA \\fozzy\rnR$project\carlsbad\rancho carrillo\engr repts\preeng 5-21 doc Berryman & Henrig; ‘3 e 0 cify Of Carlsbad - Assessment Distrkt No. 96-1 (Rancho Carriiio) Preliminary Engineer's Report - May 21,1998 Part 1 Plans and Specifications P, The plans and specifications for the improvements to be constructed and/or acq generally include grading, roadway, utility relocation, landscape and irrigation, s drainage facilities, domestic water mains, pressure reducing station, reclaimed 1 System, sewer mains, riparian mitigation, dam repair and other ancillary improvem for the area described as Assessment District 96-1 (Rancho Carrillo) are refere herein and incorporated as if attached and a part of this Report. An acquisition rk has been prepared that analyzes the improvements for purchase eligibility, has I prepared and is on file with the City. Said plans include: I) Melrose Drive Grading, City Plan DWG. 331-1A, 2) Melrose Drive and Palomar Airport Road Street Improvements, City Plan D 3) Detention Embankment and Mitigation Area, City Plan No. 331-1D, preparec Rick Engineering; and 4) Irrigation and Landscape Plan City Plan DWG. 331-1M, prepared by C Landscape and Architecture Planning and Glenn Lukos Associates Inc. Said p were used as the basis for the determination of costs and benefits for Assessment District. 331-1, The plans and specifications for the improvements are on file in the office of Superintendent of Streets / City Engineer. Prior to acquiring the improvements, as-l drawings shall be reviewed for consistency with the Plans upon which this report based. Facility improvement diagrams showing the general location of the improvements tc constructed and/or acquired by the Assessment District are included in Part \ Description of Works of Improvements of this Report. All improvements to be acqu shall be constructed in accordance with the standards of the City of Carlsbad, Carls Municipal Water District, Vallecitos Water District and other agencies as approprial No improvements may be acquired until they have been accepted by the Citb Carlsbad or other appropriate agency. The proposed improvements include: 1. Roadway Improvements. The construction or acquisition of roadways gener consisting of the grading and paving of streets, installation of driveways, curl: gutters, sidewalks, medians, parkways, street lights and conduits, signing i striping, storm drain, detention embankment, damn repairs and riparian mitigai area necessary due to the impacts caused by the grading for Melrose Dr s:\$project\mrlsbad\rancho camllo\engr reptsbreeng 5-21 doc f Berryman & Henis e 0 City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer’s Report - May 21, 7998 I=+ including grading, planting, off-site easement acquisition maintenance monitoring , landscape and irrigation of medians, parkways, and adjacent SIC traffic control and utility relocation including relocation of 2,900 feet of 12” an( Vallecitos Water District sewer force mains impacted by the grading wor’ Melrose Drive, temporary high line piping including grading for future Poin! Lane which is necessary to relocate the sewer mains, and other appurtenant v as shown on the plans for Melrose Drive and a portion of Palomar Airport Road. 2. Domestic Water Improvements. The construction and/or acquisition of a t: bone domestic water distribution system located within Melrose Drive inch hydrants, pressure reducing station and other appurtenances necessary v Melrose Drive serving the Assessment District area. 3. Sewer Improvements. The construction and/or acquisition of gravity sev manholes, and appurtenances in Melrose Drive and within public easemeni serve the Assessment District area. 4. Reclaimed Water Improvements. The construction and/or acquisition 1 reclaimed water distribution system, and appurtenances for an irrigation sys within the Melrose Drive medians, parkways, mitigation areas, and adja roadway slopes in and adjacent to the public streets and public easements. The above improvements are more specifically described in Part VI of this report. s:\$project\carlsbad\rancho carnllo\engr reptswreeng 5-21 .doc 7 Berryman & Henis L @ 0 Cify Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Reporf - May 21,1998 Part II Cost Estimates Pi The following table provides a summary of costs for constructing and/or acquirin! works of improvements as identified in the description of improvements describ. Part VI. The Estimate of Costs includes construction costs, easement acquisition design and construction administration costs, incidentals expenses, financing cc developer contributions and the total amount to be assessed. See Exhibit 1, on the following page. s:\$project\carlsbad\rancho carnllolengr repts\preeng 5-21 .doc 13 Berryman & Hen& e * City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Report - May 21, 1998 Pa EXHIBIT 1 SUMMARY OF COSTS P re1 im inary Confirme ( Developer Requested) Roadway, Drainage, Landscaping and Reclaimed Water $1 3,248,524 Domestic Water $790,304 Sewer $53,380 Right of Way & Easements $426,300 Subtotal Hard Construction Costs $14,518,508 Design Engineering, Survey and Staking $1,081,393 Soils Engineering $524,453 Landscape Architecture $21,856 Permits/Fees/Bonds $1,205,033 Construction Adm. (2.5%)* $362,963 Construction Contingencies (5%)* $725,925 $3,921,623 Total Construction Costs: $1 8,440,132 Construction Hard and Soft Costs Riparian Mitigation (included in Roadway Costs) -- Subtotal Design & Const. Admin. Expenses Formation Expenses Appraisal Services $40,000 Assessment Engineering $27,000 Construction Acquisition Services $70,000 Special Counsel $50,000 City Administration $1 00,000 Fin an cia I Advisor $20,000 Printing, Advertising, Notices (Est.) $2,500 I ncidental Contingencies $1 6,288 Total Incidental Expenses: $325,788 Bond Financing Costs Underwriter's Discount 1.75% $394,000 Disclosure Counsel $35,000 Bond Reserve 10.00% $2,252,000 Funded Interest 12 * months 8.00% $1,801,000 Bond Registrar and Paying Agent (Est.) $1 5,000 Bond and Official Statement Printing (Est.) $1 5,000 Total Bond Costs: $4,512,000 Total : $23,277,920 Contribution (Estimate) ($762,919) $2231 5,000 TOTAL AMOUNT TO ASSESSMENT: * Subject to Approval \\fozzy\mtl$project\carlsbad\rancho carrillo\engr repts\preeng 5-21.doc (revised June 12, 1998) Berryman & Hen1 1- 0 a City Of Carlsbad - Assessmenf District No. 96-1 (Rancho Carrillo) Preliminary Engineer’s Report - May 21,1998 PE Exhibit 2 Construction Cost Estimates The following is a summary of estimated acquisition costs as provided by Continent Homes and as provided within contract documents presented by Continental Home These costs are preliminary and subject to approval upon completion of an acquisit audit. Details of the costs are shown in Acquisition Cost Information (Appendix “E”). Proposed Improvements Estimated Costs Melrose Drive and Paiomar Airport Road improvements Grading $6,730,212 Street Improvements $2,276,074 Drainage $0 Riparian Mitigation Grading $783,330 cco #I $68,572 Landscape Mitigation $494,044 Relocation of Vallecitos Water District Sewer Mains $1,385,761 Vallecitos Relocation Landscape and Irrigation Medians $1 19,763 Landscape and Irrigation Parkways $149,467 Reclaimed Water $191,834 $13,248,524 Landscape and Irrigation Slopes and Parkways $1,049,467 Water $790,304 Maintenance $0 Sewer $53,380 Mitigation Easement Acquisition $426,300 Total Construction Costs $14,518,508 s \$project\carlsbad\rancho carnllo\engr reptsbreeng 5-21 doc Berryman & Henis ir ‘3 0 0 City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Report - May 21,1998 Part 111 Assessment Roll and Method of Assessment Spread Pagt On , 1998 the City Council of the City Of Carlsbad, State of Californ did, pursuant to the provisions of the 1913 Act "Municipal Improvement Act of 191 being Division 12 of the Streets and Highways Code, of the State of California, Artii XlllD of the State Constitution, and City of Carlsbad Policy 33, adopt its Resolution Intention No. 98- , for acquisition of certain public improvements, together u appurtenances and appurtenant work in connection therewith, in a special assessmt district known and designated as: ASSESSMENT DISTRICT NO. 96-1 (RANCHO CARRILLO) (hereinafter referred to as the "Assessment District"); and WHEREAS, said Resolution of Intention, as required by law, did direct the Engineer Work to make and file a "Report", consisting of the following as required by Secti 10204 of the Act: a. Plans and specifications for the proposed improvements in sufficient detail to shl or describe the general nature, location and extent of the improvements; b. A general description of the works of improvements and any property necessary convenient for the operation of the improvements to be acquired as part of 1 improvement; c. An estimate of the cost of the improvement and the costs of lands, right-of-w: easements, and incidental expense in connection with the improvements d. Assessment Diagram showing the Assessment District exterior boundaries, t boundaries of any zones within the district and the lines and dimensions of ea parcel within the district existing at the time of the adoption of the resolution Intention; e. A proposed assessment of the costs and expenses of the works of improvemf levied upon the parcels within the boundaries of the Assessment District proportion to the estimated special benefits to be received by each subdivision property; f. The proposed maximum annual assessment to be levied upon each subdivision parcel of land within the Assessment District to pay the costs incurred by the C and not otherwise reimbursed resulting from the administration and collection assessments or from the administration and registration of any associated bon and reserve or other related funds. s:\$project\carlsbad\rancho carflllokngr reptspreeng 5-21 .doc 5er-man & Henig, 'i 2 e 0 City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Report - May 21, 1998 Pagt For particulars, reference is made to the Resolution of Intention as previously adoptec copy of which is included in the Appendix "A of this report. NOW, THEREFORE, I, JEFFREY M. COOPER the authorized representative BERRYMAN & HENIGAR, pursuant to Article XlllD of the California Constitution a the "Municipal Improvement Act of 1913", do hereby submit the following: 1. Pursuant to the provisions of law and the Resolution of Intention, I have assessed the costs and expenses of the works of improvement to be performed in the Assessment District upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the estimated special benefits to be received by each of said parcels. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto. 2. As required by law, a Diagram is attached, showing the Assessment District, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively have been given a separate number upon said Diagram and in said Assessment Roll. 3. The subdivisions and parcels of land the numbers therein as shown on the respective Assessment Diagram as attached hereto correspond with the numbers as appearing on the Assessment Roll as contained herein. 4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 191 57, to represent all unpaid assessments, which bonds shall be issued not to exceed the legal maximum term as authorized by law, THIRTY-NINE (39) YEARS from the 2nd day of September of the next succeeding twelve (12) months from the date of the bonds. Said bonds shall bear interest at a rate not to exceed the current legal maximum rate of 12% per annum. 5. By virtue of the authority contained in said "Municipal Improvement Act of 1913", and by further direction and order of the legislative body, I hereby recommend the following Assessment to cover the costs and expenses of the works of improvement for the Assessment District based on the costs and expenses as set forth below: s:\$project\carlsbad\rancho carrillo\engr repts\preeng 5-21 .doc Berryman & Henigi \n 0 0 City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer’s Report - May 21, 1998 Pagt As Preliminarily AS Approved Confirmed Construction and Incidental Costs : $1 8,440,132 Formation Expenses: $325,788 Financing and Bond Costs: $451 2,000 Total District Costs $23,277,920 Less Developer Contribution (1): ($762,919) Total Assessment: $22,515,000 For particulars as to the individual assessments and their descriptions, reference is made to Exhibit “A attached hereto. (1) The Developer contribution covers general benefit not assessed associated with a portion of Melrose Drive determined to confer general benefit as discussed in Exhibit A and prepayment or the special benefit conferred to the school and park parcels. Summary of Developer Contributions to Off-Set General Benefit and Public Parcel Assessment Prepayments Special Benefit General Benefit iota I Contribution Received by School and Park Melrose Drive $ 466,993 $ 295 , 926 $ 762,919 Benefit Received by 6. The Method and Formula of Spread of Assessment is as set forth in Exhibit “A’, which is attached hereto, referenced and so incorporated. \\fozzy\mn$project\carlsbad\rancho carrlilo\engr reptsjpreeng 5-21 doc (revised June 12,199~) Berryman & Henis 1- 0 a City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Report = May 21,1998 Pas( EXHIBIT 3 ASSESSMENT ROLL Construction Formation As Final Assessment Construction Incidental Incidentals & Contribution Preliminary Confirme Number costs Expenses Bond Costs Amount Assessment and Recorc I $ 64,280 $ 17,363 $ (81,643) $ 2 $ 14,454,228 $ 3,904,260 $4,838,023 $ (681,511) $ 22,515,000 $ 14,518,508 $ 3,921,623 $4,838,023 $ (763,154) $ 22,515,000 s.\$pro]ect\carlsbad\rancho carnllokngr reptswreeng 5-21 doc 14 5ertyman & Henig 0 @ City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer‘s Report - May 21,1998 Page EXHIBIT A METHOD AND FORMULA OF ASSESSMENT SPREAD Since the improvements are to be funded by the levying of assessments, the “Munici Improvement Act of I91 3” requires and the statutes provide that assessments must based on the estimated special benefit that the properties receive from the works improvement. In addition, Article XlllD of the State Constitution and the “Proposit 21 8 Omnibus Implementation Act” requires that a parcel’s assessment may not exce the reasonable cost of the proportional special benefit conferred on that parcel. Sect 4 of Article XlllD provides that only special benefits are assessable and the lo agency levying the assessment must separate the general benefits from the sper benefits. It also requires that publicly owned property which benefit from . improvements be assessed. Neither the Act nor the State Constitution specifies . method or formula that should be used to apportion the costs to properties in i special assessment district proceedings. apportionment of the costs to properties which benefit from the improvements rests \~\r the Assessment Engineer, who is appointed for the purpose of making an analysis the facts and determining the correct apportionment of the assessment obligation. order to apportion the assessments to each parcel in direct proportion with the spec and direct benefit which it will receive from the improvements, an in-depth analysis I- been completed and is used as the basis for apportioning costs to each property wit1 the Assessment District as explained below. Based upon an analysis of the special and direct benefit to be received by each par from the construction of the works of improvement, the Assessment Engint recommends the apportionment of costs as outlined herein. The final authority a action rests with the City Council after hearing all testimony and evidence presented a public hearing, and the tabulation of the assessment ballots previously mailed to record owners of property within the Assessment District. Upon the conclusion of t public hearing, the City Council must make the final determination whether or not t assessment spread has been made in direct proportion to the estimated spec benefits received by each parcel within the Assessment District. Ballot tabulation \ be finalized at that time and, if a majority of the ballots weighted by assessment amoi are not opposed to the Assessment District, then the City Council may form 1 Assessment District. The following sections define and explain the special benefits and general benefits, a special benefits to each parcel, and confirm that the Assessments are reasonable a justified . The responsibility for recommending set forth the methodology used to apportion the costs of the improvements providi s:\$project\carlsbad\rancho carnllokngr reptswreeng 5-21 .doc 20 Berryman & ffenig 0 e City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Report - May 21, 1998 Page The Method of Apportionment The Assessment District improvements have been assigned into four benr components; roadway, domestic water, sewer and incidental expenses. Roadh improvement costs are spread on vehicle trip generation. Water and sewer are spre on an equivalent dwelling unit basis, and incidental expenses have been prorated the hard costs. Because most of the assessor parcel boundaries do not coincide with the planni Village areas, some initial assessments will be placed in aggregate on multil assessor parcels until final maps are recorded and the new assessor parcels coinci with the Village Planning areas. The procedure of identifying and apportioning special benefit to the land uses a parcels has been organized as follows: A. Identification of Benefit Components A-I Backbone Roadway A-2 Backbone Water and Sewer A-3 Incidental Expenses B. Special Benefits C. General Benefits D. Proportioning Special Benefits D-I Land Use Categories D-2 Proportioning Roadway Costs D-3 Proportioning Utility Improvement Costs D-4 Proportioning Incidental Costs E. Proclamations E-I E-2 E-3 Future Apportionment Assessments Equal to or Less Than the Proportional special benefits Reasonableness and Justification of Assessments s:\$pro]ed\carlsbad\rancho carnllo\engr reptspreeng 5-21 .doc a( Berryman & Henigi e 0 City Of Carlsbad - Assessmenf District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Report - May 27, 7998 Page A. Identification of Benefit Components The improvements to be funded and acquired by the Assessment District are necessi for development of the Assessment District parcels and are required by the Ranc Carrillo Master Plan and the conditions of development. Without the improvements, 1 uses. It is unfeasible and impractical for the parcels to be utilized to their highest and best L without the backbone roadways and utilities that will be funded by the Assessmt District. A-I Backbone Roadway Construction Improvement Components The foremost purpose of the Assessment District is to provide backbone rc access so the Assessment District parcels can be developed. The most signific; and costly improvement is the work associated with the road construction. 7 road construction has created the need to relocate ValleCitOS Water District Sevl force mains, re-establish riparian habitat areas, and install landscaping and sto drains to protect the roadway. The road construction has created the need construct storm drains to protect the roadway and to relocate other facilities a provide wetland and upland habitat areas that would not have otherwise be necessary if the road was not constructed. The road and associated costs ha been placed into one roadway improvement component for the purpose of defini the roadway costs and apportioning special benefit. The costs of the back-bone reclaimed water distribution system have been spre in the same manner as the roadway expenses. The reclaimed water system provided as a back-up irrigation water system for roadway landscaping, cornrn areas, and habitat and open space areas. The roadway improvement component includes: Melrose Drive, Palomar Airp Road, relocation of utilities, establishment of habitat mitigation areas, a reclaimed water system to serve the roadway landscaping and habitat areas. parcels within the Assessment District can not be developed to their planned ultim: A-2 Backbone Water and Sewer Construction Improvement Components Coincidental to the roadway improvements, is the necessity to construct certi backbone utility improvements within the roadway right of way concurrently w construction of the roadway improvements. These improvements confer different benefit to the properties than the roadway improvements. Therefc water and sewer (other than relocated facilities for the roadway costs have bel separated into a wet utility components for purposes of defining special benef and allocating costs. s:\$project\carlsbad\rancho camllo\engr reptsbreeng 5-21 .doc 3p Berwrnan & Hen& 0 e Civ Of Carlsbad - Assessment District No, 964 (Rancho Carrillo) Preliminary Engineer's Report - May 27, 1998 A-3 Incidental Expense Components Page In addition to the improvement costs, there are incidental construci administration and Assessment District formation expenses. These costs incL construction administration, construction supervision, design, testing, survey1 assessment engineering, acquisition audit, financial advisors, bond couns( underwriting, bond printing, financing cost and establishment of a bond rese fund. The costs of the formation of the Assessment District, including the bc costs, have been determined to be eligible for inclusion and is included in Assessment District incidental costs. B. SPECIAL BENEFITS The purpose of this Assessment District is to fund the construction and acquisition public improvements required to serve the Assessment District Parcels. Special ben is received by each parcel within the boundaries of the Assessment District from n roadway access and the availability of utility services that are required and necess for the properties to develop to their highest and best use. The improvements to be constructed and/or acquired by the District accommodate planned development within the Assessment District area. The Rancho Carril Specific Plan environmental documents, and the Tentative map identify the need access and utilities and place conditions upon the parcels within the Assessmc District. The Assessment District Improvements satisfies the conditions of developmc by providing access and backbone utilities so the project can support its planned USE Without the improvements, the parcels within the Assessment District could not developed to their planned and conditionally approved uses. The special benefit conferred to the parcels within the Assessment District from ' proposed improvements include: increased development potential, relief from accc constraints, improved accessibility to utilities, fulfillment of development conditions a ensured investment returns. The benefit to each parcel is such that the parcels will allowed to gain access to a public street network and have water, sewer and reclaim water readily available, thereby allowing it to develop to its highest potential. Special benefit accrues to each parcel to be subdivided and served by the facilities be constructed. Since some of the areas within the Assessment District have not bE subdivided into individual lots at this time, the assessments will be placed in aggregi on one or more assessor parcels and apportionment of the assessments will take plz as final maps record. s.\$project\carlsbad\rancho carnllo\engr reptswreeng 5-21 .doc 25 Beryman & Henig 0 0 City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Report - May 21,1998 Page C. GENERAL BENEFITS Some public improvements will confer general benefit to properties or the public at lar outside the Assessment District. In making our analysis, a review was conducted oft] surrounding areas. The review resulted in identifying benefits accrued to propem outside the Assessment District. Melrose Drive is designated as an prime arterial roadway. Previously, Melrose Dri did not exist south of Palomar Airport Road. Six lanes are proposed to be construct€ Four lanes are required to serve the estimated volume of traffic generated by t Assessment District parcels. Two lanes, (one in each direction, the center or Cith and lanes) are required for through traffic. The costs associated with the construction al placement of the asphalt and base for the two (5* & 6" ) lanes has been determined be a general benefit and will not be assessed to parcels within the Assessment Distric Based on the estimated roadway construction costs, the cost of the roadway base a asphalt pavement to provide the two 5" & 6" lanes is approximately $295,926. TI grading beneath the two 5* & 6' lanes benefit the Assessment District because provides lateral support to the Assessment District paved lanes. This grading can r be eliminated from the overall roadway grading without constructing retaining walls tt- would unreasonable increase the Assessment District cost. Therefore all of the Melro: Drive grading provides special benefit to the Assessment District Properties. D. PROPORTIONING SPECIAL BENEFITS D-1 Land Use Relationships The following land use categories describe the relative relationships of spec benefit for different land use categories. Park Parcels - Active Park areas developed for community recreational purposf will be assessed by net active acreage. Park areas that are passive have be€ determined not to receive special benefit because they do not require access 1 utilities. Passive areas could have existed without the proposed improvements. School Parcels - Proposed, active and developed school areas will also t assessed by net active area acreage. Open Space - Non-active and undeveloped open space areas do not receil benefit from the works of improvements and will not be assessed. Open spac areas are those areas that are deeded or perpetually designated in easements. s:\$project\carlsbad\rancho carnllokngr reptswreeng 5-21 .doc a Y Beryman & Henigz 0 0 City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer’s Repott - May 21, 1998 Page D-2 Proportionate Special Benefit of Roadway Improvements Trip Generation Factors for Roadway improvements The use and need of roadway improvements is a function of the number of vehil trips per day generated by the use of the land served by the streets. Tra engineers have developed traffic generation factors which are related development density and type of land use. Therefore, trip generation is appropriate basis for apportioning roadway improvements and related co among the specially benefited parcels. Our trip generation factors will be estimai from the December 1996, Sandag Trip Generation Manual. Single Family Residential Trip Generation The Average Daily Trips (ADT) per detached single family dwelling is 10 AD’ The Rancho Carrillo single family dwelling product types are similar to the Sand study areas. Multi-Familv Residential Trip Generation The Average Daily Trips for each attached dwelling unit for multifamily unit is ADT. Communitv Facilitv Trip Generation This use has not been surveyed by Sandag. The Carrillo Ranch Master PI allows church and institutional uses in this zoning. The Sandag Trip Generati Manual generation rates ranging from 30-70 ADT for these uses. We recomme 40 ADT per gross acre for the community facility category. Dav Care Trip Generation The Average Daily Trips rates for day care use is 80 ADT per 1,000 square fec as established in the 1996 Sandag Trip Generation Manual. School Trip Generation The estimated Average Daily Trips generation for the proposed San Marc Elementary School is 60 ADT per gross acre, as established in the 1996 Sand, Trip Generation Manual. Park Trip Generation The Average Daily Trips generation for a community park is 20 ADT per grot acre, as established in the 1996 Sandag Trip Generation Manual. Proportionate Special Benefit of Utility improvements Construction Costs The most pertinent and reasonable utility improvement benefit variable is avera! daily demand. The detached single family home will be the basic equivalence fl measuring demand to other land use categories. Berryman & Henig: -7” A> s !$project\carlsbad\ncho camllokngr reptswreeng 5-21 doc e a City Of Carlsbad - Assessment District No. 96-7 (Rancho Carrillo) Preliminary Engineer's Report - May 27, 1998 Page Domestic Water and Sewer Water and sewer demand is proportional to occupancy. The average San Die County single family detached dwelling has a per dwelling occupancy of 3.5. multifamily dwelling unit averages 3.0 persons per dwelling unit. Based on t lower average occupancy per dwelling unit for multifamily land uses, we hz assigned an equivalent dwelling unit (EDU) weight of 0.85 to multifamily units. To compare demand for service of non-residential uses to residential, \ compared non-residential water and sewer demand per gross acre, to per I persons to determine a per gross acre relationship. According to the McGraw-t- Handbook of Essential Enqineerinq Information and Data; copyright 1991, t median metropolitan metered water demand is 150 gallons per capita per day Based on commercial facility uses, schools and active park area historic deman It has been estimated that the average demand per gross acre of commercial us is equivalent to approximately five and half single family dwellings. We ha therefore assigned an equivalent rate of 5.5 EDUs per gross acre for commerc park areas uses, And an equivalent rate of 4.0 EDUs per gross acre for schools and acti Exhibit 4 Summary of Special Benefit Factors Land Use Category Estimated Average Daily Water & Sewer Traffic Generation EDUs Single Family, Detached 10 I DU 1 .O I DU Multi-Family and Duplex, 8 IDU 0.85 IDU Attached Community Facility 40 I AC 5.5 I AC Day Care 80 I 1,000 SF 5.5 I AC Recreation Vehicle Storage 10IAC 2.0 I AC School 35 I AC 4.0 I AC Park 20 I AC 4.0 I AC D-4 Proportioning Incidental Costs The costs to form this Assessment District have been determined to be eligible fi inclusion in the Assessment District Funding. Incidental and financing costs ha\ been assessed on a pro-rata basis relative to the improvement costs associate with each parcel. s:\$project\carlsbad\rancho carrillo\engr repts\preeng 5-21 .doc 26 Berwman & Henigz e 0 City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer’s Reporf - May 21, 1998 Page E. PROCLAMATIONS E-I Assessments are equal to or less than the proportional special benefit ea parcel receives The special benefit received from the Assessment District improvements excee the assessment allocated to each parcel. The improvements provided \ increased the value of each parcel by more than the assessment levied upon To ensure that the assessments will be equal to or less than the proportioi special benefit conferred, a review was made of similar properties in the offices COMPS InfoSystems, Inc.. Comparison of recent sales records indicated that I average price per square foot of raw land increased in an amount greater than 1 costs of the assessments per square foot after backbone roadway and uti improvements were in place. E-2 Reasonableness and Justification of Assessments It is well known and understood, by the development community that put: infrastructure is required for raw land to develop to its highest and best use. Af the passage of Proposition 13 and Assembly Bill 1600, developers and investc realize that they must provide the public infrastructure to support th developments without burdening existing properties. The Assessment Disti improvements in Rancho Carrillo are estimated to add 15% or more value to t each parcel’s overall value. A review of other developments has shown that ti percentage is consistent with the costs of providing backbone access and utiliti to raw land in similar developments. Therefore this Assessment levy is reasonal in relationship to the added value the improvements provide to the parcels. Special Benefit will accrue to each parcel to be subdivided. Since sor Assessment District parcels have not yet been subdivided into final lots, t assessments will be placed in aggregate on one or more assessor parcel: Apportionment of the assessments will take place from time to time as final ma record . It is the City of Carlsbad’s policy that final lots that receive similar special bene also have similar final assessments. If the future subdivision of any Villa planning area does not yield the estimated number of dwelling units, the C reserves the right to require upon application of assessment reapportionment, ti- a portion of the outstanding assessment be paid by the property own( Continental Homes, to ensure that the assessments remain consistent within ai between the planning areas. All reapportionments will be subject to City Carlsbad policies and procedures. E-3 Future Apportionment Of Special Benefit s \$project\carlsbad\ncho carnllo\engr reptswreeng 5-21 doc 27- Berryman & Henig, e 0 City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Report - May 21,1998 Page Exhibit 5 Summary of Parcel Data Trip Water and Adjusted Planned Equivalent Master Villages Village Data Acres* (PEDUy Factors Trips Factor ED1 A Multifamily Dwellings 11.5 166 8 / Unit 1,328.0 0.85 / Unit 141 B Multifamily Dwellings 14.4 220 8 / Unit 1,760.0 0.85 / Unit 187. C Multifamily Dwellings 5.5 114 8 1 Unit 912.0 0.85 /Unit 96. D Single Family Dwellings 28.0 87 10 I Unit 870.0 1.00 I Unit 87. E Single Family Dwellings 16.5 95 10 / Unit 950.0 1.00 / Unit 95. F Single Family Dwellings 12.7 97 IO / Unit 970.0 1.00 / Unit 97. G Single Family Dwellings 20.0 39 10 / Unit 390.0 1.00 / Unit 39. H Single Family Dwellings 28.3 72 10 / Unit 720.0 1.00 / Unit 72. J Single Family Dwellings 27.0 65 10 / Unit 650.0 1 .OO / Unit 65. K Single Family Dwellings 41.6 95 10 / Unit 950.0 1.00 / Unit 95. L Multifamily Dwellings 5.1 82 8 / Unit 656.0 0.85 / Unit 69. M Single Family Dwellings 38.3 67 10 / Unit 670.0 1.00 / Unit 67. N Multifamily Dwellings 12.9 102 8 / Unit 816.0 0.85 / Unit 86 0 Single Family Dwellings 20.5 49 10 I Unit 490.0 1.00 I Unit 49 P Single Family Dwellings 20.5 56 10 / Unit 560.0 1.00 / Unit 56 Q Single Family Dwellings 73.9 182 10 I Unit 1,820.0 1.00 I Unit 182 R Single Family Dwellings 17.0 45 10 I Unit 450.0 1.00 I Unit 45. S School 14.0 0 35 /net ac 322.0 4.00 /net ac 36. T Community Fac. Use 3.4 40 I acre 136.0 5.50 I acre 18. ___ Day Care 2.4 2100 sf 80 11000sf 168.0 5.50 I acre 13. City Park Park, Active Gross Are 2.5 20 / acre 50.0 4.00 /acre IO. Plan Gross ~~~lli~~ Units Generation Sewer * = Quantities obtained from the 'Village Tabulation' of the Rancho Carrillo Master Plan of Villages To apportion the special benefit appropriately, a 15% reduction has been applied to 1 maximum number of multifamily units. Development plans for the multifamily areas are I expected to yield the maximum allowable units. This would have unfairly shifted assessmf burden to the multifamily parcels. See Appendix G for Village locations. \\fozzy\mtl$project\carlsbad\rancho carrillo\engr reptsbreeng 5-21.doc (revised June 12, -y8) Berryman & Hen& 1. 7; ,.,/ w '. A 1 I I i / I 2 '\ \ \ '> \\ I, q $0.00 $249,349.55 215-030-09 :::::::::: $0.00 215-031-06 $0.00 221-010-18 $1,355,241.77 22 1 -0 1 2-08 $356,255.97 22 1 -0 1 2-09 $2,274, I 6 1.80 222-01 0-02 $3,746,801.01 222-01 1-05 $2,294,729.1 6 222-01 1-06 $1,537,180.99 222-01 2-09 $1,401,797.66 222-01 2-02 $1,067,691.89 221-012-12 $1,377,278.22 221 -01 2-1 3 $6,854,511.98 Page i City Of Carlsbad - Assessment e District No. 96-1 (Rancho P arrillo) Preliminary Engineer's Report - May 21, 7998 FJNDJNGS AND DETERMINATIONS OF ASSESSMENT ENGINEER The undersigned, acting on behalf of Berryman & Henigar, hereby finds and determit as follows: A. The proportionate special benefit derived by each parcels proposed to I assessed has been determined in relationship to the entirety of the costs of tl improvements to be funded from the Assessment District proceeds. B. No assessment is proposed to be imposed on any parcel which exceeds tl reasonable cost of the proportional special benefit conferred on that parcel. C. Only special benefits have been assessed. D. Parcels within the District that are owned or used by any agency, the State California or the United States and which receive a special benefit from tl improvements have been assessed accordingly. In conclusion, it is my opinion that the assessments for the referenced Assessme District have been spread in direct accordance with the estimated special benefits tt- each parcel receives from the works of improvement. Dated: May 21, 1998 Berryman & Henigar BY: JEFFREY M. g6& ER P.K. R.C.E. No. 31572, (Expires 12/31/2000) ASSESSMENT ENGINEER CITY OF CARLSBAD SAN DIEGO COUNTY, STATE OF CALIFORNIA \\fozzy\mfi$project\carlsbad\rancho carrillo\engr repts\preeng 5-21 .doc -L. $ Berryman & Henig 1 e 0 Cify Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Report - May 21, 1998 Page I, Aletha L. Rautenkranz, CITY CLERK of the CITY OF CAWLSBAD, CALIFORNIA dc hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the day of , 1998. CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA I, Aletha L. Rautenkranz, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA hereby certify that the foregoing Assessment, together with the Diagram attact- thereto, was preliminarily approved by the City Council of the CITY OF CARLSBk CALIFORNIA, on the day of , 1998. CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA I, Aletha L. Rautenkranz, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA hereby certify that the foregoing Assessment, together with the Diagram attach C of , 1998. thereto, was approved and confirmed by the City Council of said City on the CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA I, Lloyd B. Hubbs, Superintendent of Streets / City Engineer of the CITY ( CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, togetk with the Diagram attached thereto, was filed in my office on the day of 1998. SUPERINTENDENT OF STREETS /CITY ENGINEER STATE OF CALIFORNIA CITY OF CARLSBAD s:\$projectbrlsbad\ranctio carrillokngr reptsbreeng 5-21 .doc 3\ Berryman & Henigi 0 0 City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Report - May 27, 7998 Part IV An n ual Adm in istrative Assess men t Page A proposed maximum annual administrative assessment shall be levied on each par of land and subdivision of land within the Assessment District to pay for necessi resulting from the administration and collection of assessments and/or from t administration or registration of any bonds and reserve or other related funds. TI maximum assessment hereinafter set forth is authorized pursuant to the provisions Section 10204(f) of the Streets and Highways Code, and said maximum assessmc shall not exceed five percent (5.0%) of the annual assessment per individi assessment parcel per year. The annual administrative assessment will be collected in the same manner and in t same installments as the assessment levied to pay for the cost of the works improvement . costs and expenses incurred by the City of Carlsbad, and not otherwise reimburs s:L$project\carlsbad\rancho carnilokngr reptsbreeng 5-21 .doc ?? Berryman & Henigi 0 a City Of Carlsbad - Assessment District No. 964 (Rancho Carrillo) Preliminary Engineer's Report - May 21, 7998 Part V Diagram of Assessment Page Reduced copies of the Boundary Map, initial Assessment Diagram, and fi Assessment Diagram are shown on the following pages. Full-size copies of , Boundary Map, initial Assessment Diagram, and final Assessment Diagram are on in the Office of the City Clerk, of the City of Carlsbad. As required by the Act, the Assessment Diagram shows the exterior boundaries of' Assessment District and the assessment number assigned to each parcel of Is corresponding to its number as it appears in the Assessment Roll contained in Part I The Assessor's parcel number is also shown for each parcel as they existed at the ti of the passage of the Resolution of Intention and reference is hereby made to ' Assessor's Parcel Maps of the County of San Diego for the boundaries and dimensic of each parcel of land. s:k§pro)ect\carlsbad\rancho carrillo\engr reptsbreeng 5-21 .doc '3 > Berryman & Hen& PROPOSED BOUNDARY MAP ASSESSMENT DISTRICT NO. 96-1 (RANCHO CARRILLO) CITY OF CARLSBAD COUNTY OF SAN DIEGO, CALIFORNIA FILED IN mE omcE OF THE an CLERK OF i CARLSBAO. niis __ DAY OF FILED niis __ OAY OF we_. *r niE nWR OF o'aocK ,u. mmom OF niE COUNW OF SAN DIEGO. C.ALIFCWNIA. LEGEND IN EDDY PACE OF MAPS OF AsyssUENl DISTRICTS IN THE OmCE of IWE CWNW - District Boundary Right-of-way Line By: un aERK UlY OF CARLSBAO STAJE OF CALIFORNIA Assessor Parcel Line By: CWNTY RECORDER ANNETTE EVANS CWNTY OF SAN DIEGO STATE OF CALIFORNIA I HEREBY CERTIFY THAT THE mmiN MAP woi IN mE un OF CARLSBAD, COUNTY of SAN c cin OF URLSBAD AT A REGULAR umffi mn PRWOYD BOONOAWES OF ASSESWENT OISSTRI CALIFORNIA. WAS APPROKD BY WE UTY CW ON THE - DAY OF BY lE RESCLUTION NO. By: UW CLERK CITY OF CARLSBAO STAE OF CALIFORNIA 22i-om-ia 221-012-13 - 222-0l0-0z I 222-012-09 222-012-02 FOR THE LINES AND OIYEHSIONS OF EACH PARCEL WITHIN THE DISTRICT REFER TO THE 1997 COUNTY OF s, 3'1 , ASSESSOR'S MAPS. Berryman & Henigar HB9 Cmdfmtr. lnc - Hsnbrx & ROX I~c CAffRILLO.OWG I st ASSESSMENT DIAGRAM ASSESSMENT DISTRICT No. 96-1 (RANCHO CARRILLO) CITY OF CARLSBAD COUNTY OF SAN DIEGO, CALIFORNIA LED mis - DAY OF FIiEO IN ME OmIX Cf WE UTYNERK Cf ME CITYOF CARLSBAD. mis - DAY OF 799- ATTHEHWROF OUOCr- INBWK ,PAGE OFY ASWENT DlSlRlCTS I THE WFIE OF THE RECORDER OF THE CWNTY OF SAN DlEGa WI Br ClW UERK CITY OF CARLSBAD STATE OF CAlJFORNIA BY CWNlY RECORIIER ANNETTE E COUNJY OF SAN OlEGO STATE OF CALIFORNIA AN ASSSAOT WAS LEMEO BY THE UlY COUNCU. OF THE UP/ OF CARLSEAD ON WE LOTS PIECES AN0 PARCELS OF UNO mow ON mls ASWWENT DIACRAU WE A~ESSUENT WAS LEUED w mE - OAY OF , 199- mE AEESWWT OIACRNA AND A-T RCU MERE RE~RD~ !XAYAM$UEDW&iE ~S~s~~N~L~~~I~~~~~~~~ a mIE * IN WE OmE OF ME WPfRINlENOENT Of STREETS FOR ME BY CITY UERK STATE Cf CALIFORNIA N TS CITY OF WIRLSBAD LEGEND - District Boundary 221-012-13 Right-of-way Line 221-010-16 Assessor Parcel Line I ASSESSMENT ASSESSOR NUUBER PARCEL NO @ 222-011-03 @ 215-030-09 215-031-04 215-031-05 215-031-06 221-010-18 221-072-0a 221-012-09 221-012-12 221-012-13 222-010-02 222-011-05 222-011-06 222-012-02 222-012-09 + 1 222-012-09 FOR THE UNES AND OIYENSIONS OF EACH PARCEL WITHIN THE DlSTRlCl REFER TO THE 1997 COUNN OF 54 ASSESSOR'S YAPS. or 37 Berryman & Henigar Hag cwarllalz 1°C - H.nlprr c nor bC CARRILLO DWG LP .. 5m City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Report - May 21,1998 Page Part VI A. Description of Facilities Section 101 00 of the Act provides for the legislative body of any municipality to final certain capital facilities and services within or along its streets or any public way easement. The following is a list of proposed improvements as allowed under the to be acquired, installed, maintained, repaired or improved under the provisions of Act. For the general location of the improvements to be acquired referenced is herc made to the Plans and Specifications described in Part I of this report and the faci map at the end of this section. The proposed improvements include: 1. Melrose Drive Roadway Improvements. The roadway improvements generi consist of the hard and soft costs required to construct Melrose Drive, from Palor Airport Road to the existing northern termination of Melrose Drive north of A Road. Six lanes will be constructed including left turn lanes, medians and shouh improvements. The costs associated with the construction of Melrose Dr includes clearing and grubbing demolition, grading, the relocation or reconstruct of public improvements subgrade preparation, base, asphalt pavement, curbs 2 gutters, sidewalks, concrete medians, street lighting, storm drainage, guard r traffic control and striping, irrigation and landscaping of medians, parkways E adjacent slopes, 1 developer is dedicating the necessary roadway easement for all roadm imp rovemen ts . 2. Palomar Airport Road, Approximately 1000 feet east and 700 feet west oft Melrose Drive Intersection. The Palomar Airport Road improvements include t construction of left-turn pockets, acceleration lane, deceleration lane and medi break. The work of improvements includes clearing, site grading, subgra preparation, saw cutting, removal of existing pavement, curbs, gutters, medi island landscaping and hardscape, median stamped concrete, sub-base, asph pavement, curbs and gutters, medians, street lighting, storm drainage, traffic cont and striping and signing within the public streets and easements and ott appurtenant works as shown on the plans. 3. Utility Backbone Systems (water, sewer, and reclaimed water). The propos utility system will include water mains, sewer mains, reclaimed water mail pressure reducing station. The work to provide these services will include: clearir grading, trenching, trench shoring, back-fill, saw cutting, removal of existii pavement, placing pipes(PVC L? DIP) valves, fire hydrants, air release valves, vaul connections to existing systems, testing, inspection, manholes, asphalt paveme s \$pro~ect\carlsbad\rancho carnllo\engr reptsbreeng 5-21 doc >a Berryman & Henig, and other appurtenant works as shown on the plans. / 0 0 City Of Carlsbad - Assessment District No. 96-7 (Rancho Carrjiio) Preliminary Engineer’s Reporf - May 27, 7998 Page replacement, traffic control and other appurtenant works as shown on the pk within the public streets and easements.. 4. Riparian Mitigation. Riparian Mitigation includes the creation of Approximately acres of riparian area, replacing, creating and preserving riparian habitat arc impacted caused by the grading for Melrose Drive. The work includes grading, stc drain, dam repair, irrigation, planting, off-site easement acquisition, maintenan and monitoring. The construction of Melrose Drive and other Assessment Dist improvements impacted existing wetlands and upland habitat that requi mitigation. This work consists of permit processing, grading, irrigation a landscaping, necessary to restore and mitigate the impacts at a new mitigation ai immediately east of El Fuerte. 5. Relocation of Vallecitos Water District Sewer Mains. Two existing sewer foi mains, approximately 2,900 feet of 12” and 24” require relocation due to the grad work for Melrose Drive. The work includes grading within future Poinsettia LE which is necessary to relocate the mains, trenching, force mains construction, E temporary high line piping. 6. Incidental Design and Administration. The Incidental Resign and Administrati consist of, but is not limited to: the acquisition of lands, easements, rights-of-wi licenses, franchises, and permits; the preliminary and final design engineerii environmental engineering, legal consultation, construction engineerii construction inspection, geotechnical engineering, testing and surveying. s \$project\carlsbad\ncho carnllo\engr reptswreeng 5-21 doc ,.-- 7, Berryman & tfenigi -4 (RANCHO CARRILLQ) LEGEND - District Boundary Assessw Parcel tine ---- - Roadway Improvements (-4 Riparian Mitigation Area EXHIBIT 1 Roadway Improvements and Riparian Mitigation Area cMwIuo.owG LA '"t- P FACILITY MAP (RANCHO CARRILL lEGEND - District Boundmy -__- Assessor Pmcel Line - Relocated Vdlecitos Serer Mams - Domestic and Reclokned Water EXHIBIT 2 Sewer, Water and Reclaimed Water CARRIUO.DM: W .,- r 2,7 0 City Of Carlsbad - Assessment District No. 96-1 (Rancho Carrillo) Preliminary Engineer's Report - May 21,1998 Page B. RIGHT-OF-WAY CERTIFICATE STATE OF CALIFORNIA COUNTY OF SAN DlEGO CITY OF CARLSBAD The undersigned, Lloyd B. Hubbs, hereby CERTIFIES UNDER PENALTY ( PERJURY that the following is all true and correct. That at all times herein mentioned, the undersigned was, and now is, the authoriz representative of the duly appointed SUPERINTENDENT OF STREETS/ CI ENGINEER of the CITY OF CARLSBAD, CALIFORNIA. That there have now been instituted proceedings under the provisions of Article XlllD the California Constitution, the "Municipal Improvements Act of 191 3," being Division of the Streets and Highways Code of the State of California, and the City of Carlsb Municipal Code, which is Chapter 7 of Division H of Title II of the Code of Ordinances the City of Carlsbad, State of California, as amended, for the construction of cert; public improvements in a special assessment district known and designated ASSESSMENT DISTRICT NO. 96-1 (hereinafter referred to as the "Assessmc District"). THE UNDERSIGNED STATES AND CERTIFIES AS FOLLOWS: It is acknowledged that the proposed Works of Improvement must be located wit1 public rights-of-way, land, or easements owned by or licensed to the CITY ( CARLSBAD, County of San Diego, State of California, at the time of the acquisition the Works of Improvement, and the undersigned hereby further certifies that all righ of-way necessary for the Works of Improvements will be obtained and in possession the City, County, or State prior to acceptance by the City of Carlsbad. EXECUTED this day of , 1998, at City of Carlsbad, California. Superintendent of Streets / City Engineer City of Carlsbad State of California By: Lloyd B. Hubbs, Superintendent of Streets / City Enginee s:\$pro~ect\carlsbad\rancho carnllo\engr reptsbreeng 5-21 doc c ,\ Berryman & Henig, * e AGREEMENT FOR THE ACQUISITION, CONSTRUCTION AND FINANCING OF CERTAIN PUBLIC IMPROVEMENTS (RANCHO CARRILLO) ASSESSMENT DISTRICT NO. 96-1 THIS AGREEMENT is made and entered into this 9 th day of DECEMBER ,1996, by and the CITY OF CARLSBAD, a public agency of the State of California (hereinafter referred to a and CONTINENTAL RANCH, INC. (hereinafter referred to as "Property Owner"). WHEREAS, the City is considering the formation of a special assessment district under the te conditions of the "Municipal Improvement Act of 191 3", being Division 12 of the Streets and H Code of the State of California, for the construction of certain public improvements, toget appurtenances and appurtenant work within the jurisdictional limits of said City, said special ass district known and designated as ASSESSMENT DISTRICT NO. 96-1 (RANCHO CARRIUO) (he referred to as the "Assessment District"); and, WHEREAS, Section 66462 of the Government Code of the State of California ("Subdivision M expressly authorizes financing and completion of public improvements under an appropriate assessment act, and Section 101 02 of the Streets and Highways Code ("Municipal lmprovemei 191 3") expressly authorizes the acquisition of any improvements authorized to be constmcted unl WHEREAS, Property Owner, in order to proceed in a timely way with its development, de construct and has constructed certain public works of improvement that are proposed to be includ the works of improvement for the Assessment District, namely, the improvements as set fol described in the attached, referenced and incorporated Exhibit "A"; and, WHEREAS, the City and Property Owner are in agreement that the determined eligible w improvement may be included within the Assessment District financing at prices determined by si to be reasonable; and, WHEREAS, it is the intent of this Agreement to provide that Property Owner shall, upon a SUC confirmation of assessment and sale of bonds for the Assessment District, be paid for the wt improvement which are integral and a part of the Assessment District, at the prices as determined City Engineer; and, law: and, WHEREAS, the properties Within the boundaries of the Assessment District will be assessed c those portions of the works of improvement that benefit the properties within the boundaries Assessment District, and this Agreement will only cover those portions of said works of improvt and, WHEREAS, in performing under this Agreement, it is mutually understood that Property owner is as an independent contractor and not an agent of the City, and City shall have no responsibil payment to any contractor, subcontractor or supplier of the Property Owner; and, WHEREAS, Property Owner shall be the owner of and retain title to all of the works of improvl constructed pursuant to this Agreement until such time as the City, acting pursuant to the provisic the "Municipal Improvement Act of 191 3", shall acquire such works of improvement. Upon such tra such improvements shall become the property of the public agency andor regulated utility authori; provide the service to the Assessment District; and, I Ll> e 0 WHEREAS, the City has no objection to purchasing the improvements from said Propem Own Property owner is desirous that the City purchase said improvements, and at this time said improv are owned by Property Owner; and, WHEREAS, if the work is not being constructed in a timely manner, the City may, at its option, p and install authorized facilities pursuant to applicable public contract laws, with payment to be ma( bond proceeds. Upon exercising this option, the work being constructed shall automatically be 4 from this Agreement. NOW, THEREFORE, IT IS MUTUALLY AGREED between the respective parties as follows: SECTION 1. That the above recitals are all true and correct. SECTION 2. The City has no financial obligation to construct the improvements, and all expel said improvements, including all incidentals thereto, shall be bome by owners of PI within the Assessment District. SECTION 3. That said City does intend to proceed with the adoption of a Resolution of Intentic the formation of a special Assessment District for the improvements above des however, the City resewes the right to determine the timing of such actions I subsequent sale of the bonds for those facilities which are eligible for final fundir That the City agrees to acquire and finance through the use of special assea proceedings, and Property Owner agrees to convey all completed improvements City, those improvements being all as set forth in the previously referenced Exhit: Property Owner agrees to post with the City the required bonds to guarantc performance of the work and payment of all labor and materials, said bonds to be amounts as determined by the City. Property Owner shall be responsible for the maintenance and shall maintaii improvements in a satisfactory condition prior to any final transfer and acceptancc NO acquisition money shall be paid for any discrete component comprising a pori an improvement until such discrete component to be acquired has been inevc offered for dedication by the Property Owner free and clear of all liens, claim encumbrances. The final payment for an improvement to be acquired shall not bc unless such improvement has been irrevocably offered for dedication by the Prc Owner and accepted by the City Council free and clear of all liens, claims encumbrances. Property Owner does hereby indemnify the City against all liens, c or encumbrances relating to any improvement to be acquired hereunder. The final facilities and actual prices to be paid for said improvements are those th, City believes to be integral and reasonable and to confer special benefit on prop! within the Assessment District. The estimated prices for the improvements and incidental expenses are set forth i attached, referenced and incorporated Exhibit "B". Final prices shall be based up01 prices and quantities as determined by the City to be reasonable, and no other cost however, final payment for the work shall not exceed the maximum amoun construction as set forth in the Engineer's "Report" as confirmed by the City Counl SECTION 4. SECTION 5. SECTION 6. expenses shall be allowed unless expressly authorized by the legislative body of the 2 7 cl 0 a Further limitations to the amount of assessment debt shall be the following: 1. The total public lien on any property of all outstanding special assessmi Mello-Roos special tax obligations will not exceed 113 of the appraised vd 2. The annual installment for any public special assessment and/or Mello-Roc will not exceed .8% of the estimated purchase price of the property. The Finance Director of the City will make determinations as to the above pric final confirmation of the assessment. SECTION 7. The estimated quantities set forth in the previously referenced Exhibit "r shall be to reflect the actual quantities of works of improvement actually constructed at F determined by the City. Any final detemination shall be made by the City a prices and quantities to be paid. The Property Owner shall provide all substantiating documentation and certifia authenticity as requested by the City in the determination of either the quantities constructed or the prices to be paid for such improvements. The costs of acquisition shall also include the necessary engineering and incidental expenses, including, but not limited to, the preparation of plans, specifit bidding and all related documentation. Said final costs and expenses are determined upon the completion of the works of improvement and certified by tl The cost for said works of improvement shall be spread in accordance with the I received, as determined by the City Engineer in consultation with the Asse Engineer for the Assessment District. SECTION 8. SECTION 9. SECTION 10. All plans and specifications shall be submitted by the Property Owner, improvements shall be bid and constructed in full compliance with all applicab wles and regulations as established and approved by the City Engineer. Property agrees to keep records and to allow the City to review said records for all bi contracts let for any of the improvements. City shall have the right to inspect al of improvement at any time during construction. SECTION 11. At any time that the work is not progressing within a reasonable time limit as dete by the City Engineer, the City may provide written notice to the Property Owner. event that Property Owner does not cause progress to be made on the work satisfaction of the City within 60 days afterreceipt of such notice, this Agreement terminated by ten (10) days' written notice. Following termination, upon satisfac the other provisions of this Agreement relating to payment for improvements or d components thereof, the Property Owner shall be paid for any component improvements set forth on Exhibit "C" hereto which it has completed prior termination. Upon termination, the City may proceed to advertise and bid the bal; ally imprOVemenk 61 Components thereof that have not been completed by PI Owner, and the City will have no further obligation to pay Property Owner und Agreement with respect to the improvements or components so bid by the City. 3 cis 0 0 SECTION 12. Upon execution of this Agreement and completion of the improvements, the C have the right to use said improvements as determined necessary and integra works of improvement within the Assessment District. SECTION 13. The acquisition monies, upon the sale of bonds, shall be distributed pursuant tc instructions executed by the Property Owner herein and any mortgagee or ber under any mortgage or deed of trust where proceeds of a loan were utilized to i financing any portion of the improvements. Cash distribution will be rnac execution of the appropriate written instructions, and in the absence of instructions, the purchase price for the improvements shall be paid to the Propert) and any mortgagee or beneficiary of a deed of trust as their interests may (Streets and Highways Code Section 1031 1 3). SECTION 14. The City agrees that, prior to the final completion and acceptance of an impra listed in Exhibit "A", it will make payments to the Property Owner for certain c components of the improvements as set forth in Exhibit "C" hereto. The paymer made to the Property Owner with respect to each discrete component listed in Ext shall be determined in accordance with the procedures set forth in Section 6 Agreement as certified by the City Engineer and shall not exceed the maximum a set forth in Exhibit "C". A reasonable amount of money due under this Agreemc to exceed 10% of the cost of the improvement or discrete component thereof beir for, may be withheld to cover final possible corrections or adjustments in the worl find payment with respect to an improvement shall be made within 30 days of u Council's acceptance of the improvement. SECTION 15. This Agreement is contingent upon the confirmation of assessments and successi of bonds, and it shall be null and void if said bonds are not sold within a three (: period following the date of this Agreement, or any mutually agreed extension; ho this time can be extended by request of the Property Owner and concurrence legislative body. Any sale of bonds shall be based upon recommendations of Ci and authorized consultants retained for the purposes of assisting and establishing and conditions for the sale of bonds. SECTION 16. Property Owner hereby agrees to provide written notice to any potential purchx lots in a form satisfactory to City so advising the potential owner of the fact proposed or confirmed Assessment District, with said document being executed potential owner during escrow procedures. Such notice shall be provided to the pa owner a reasonable time before the potential owner becomes contractually commi, purchase the lot so that the potential owner may knowingly consider the impact %SMment in the decision to purchase the lot. A copy of dl such notices execui actual purchasers shall be sent to the City. SECTION 17. Property Owner agrees to and shall assume the defense of, indemnify and hold har the City, its officers and agents, from any action, damages, claims or losses of anl resulting from this Agreement, including without limitation the design, engine construction bidding, award of the contracU and construction of the improvemenb provision as contained herein shall in any way limit the extent of the responsibility c Property Owner for payment of damages resulting from the construction c improvements and/or any contractual relationships between Property Ownei contractor and/or subcontractors. Li 6 4 0 0 SECTION 18. This Agreement is binding upon heirs, assigns, and successors-in-interest. SECTION 19. This Agreement, by its execution, amends and supersedes any terms and cont may be inconsistent in any previous agreement, including any subdivision iml agreement, relating to the construction, installation or financing of said improl SECTION 20. The prevailing party in any litigation refating to, interpreting or enforcing this A! shall be entitled to reasonable attorney's fees as determined by the Court. SECTION 21. This Agreement and the constnrction of the improvements shall be subject tc laws and ordinances relating to the requirement of improvement agreeme division, improvement security or other applicable development requirements. SECTION 22. The term "City" shall mean the City Council, unless otherwise stated herei Agreement. EXECUTED by and between the parties hereto on the day and year first hereinabove written. "CITY" CITY OF CARLSCAD AT7TEST: STATE :3F C,."' ,,zORNIA CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA ''PROPERTY OWNER" CONTINENTAL RANCH, INC. By: b,a: & 5 i( 7- a CALIFORNIA ALLPU a SE ACKNOWLEDGMENT 0 PerSonally known t0 me - OR -&roved to me on the basis of satisfactory evidence to be the pers whose name(@ idmesubscribed to the within instnr and acknowledged to me that he/s+te/they-executel same in his/ktr/theirauthorited capacityrn, and th his/hffftherrs ’ ignature(s)on the instrument the perso or the entity upon behalf of which the person@) ac executed the instrument. Description of Attached Document Signer@) Other Than Named Above: Capacityfies) Claimed by Signer(s) El Individual 0 Individual 0 Corporate Officer 0 Partner - 0 Limited 0 General 0 Corporate Officer 0 Partner - Limited General 0 Attorney-in-Fact 0 Guardian or Conservator Title( si): Signer Is Representing: Reorder: Call Ton-Fm 1- Pd. NO. 5907 Lif olewNaUonalNotaryAsscaa~*8236RernmetAve. PO. Box7184*CaMgaPark,CA9130971&1 EXHIBIT "A" fl) m THE FACILITIES Facility Description Melrose Avenue: Grading, storm drainage facilities, Between Palomar Airport Road and mains, sewer mains, reclaimed $ the existing northern termination of mains, pressure reducing station, e Melrose Avenue gutters, sidewalks, medians, road and pavement, striping and signs, landscaping of medians, parkways, ' adjacent slopes. Palomar Airport Road: Improvements necessary for Approximately 1000' east and 700' construction of left-tun pod west of the intersection of Melrose acceleration lane, deceleration lane, Avenue median break Includes subgi preparation, sawcut and remove exis pavement, curbs, gutters, median id landscape and hardscape, mad base ( pavement, striping and signs, and tri control. Improvements necessary for the relocat of two existing force mains required duc the grading work for Melrose Avenl Includes grading within future Poinsei Lane which is necessary to relocate 1 mains, trenching, force mains, a1 temporary high line piping. Riparian Mitigation: The creation and presentation of ripari: Creation of approximately 11 acres of habitat areas due to the impacts to existir riparian area 2 riparian habitat caused by the grading f Melrose Avenue. Includes gradin! planting, offsite easement acquisitioi maintenance, and monitoring. Relocation of Vallecitos Water District Sewer Mains: Approximately 2,900 of 12" and 24" Force Main ciq Grading Vallecitos Sewer Mains Subtotal Construction Costs 724,730 I 409,231 I I $1,133,! Contingency at 15% Engineering, Management, Inspection, Permits, Staking, Assessment Engineering, Bond Counsel, Appraisal, Financial, 2% Printing at 20% Total Incidental Costs 2,046,602 2,728,803 $4,775,4[ Bond Reserve (10%) Bond Discount and fssuance (5%) Capitalized Interest (8%) 1,841,942 920,097 1,473,554 Total Financing Costs I $4,235,59 Grading Slope Landscaping and Imgation Storm Drain Water CMWD Sewer. Subtotal Constmction Costs 3,372,760 2,032,330 1,650,203 762,884 58,015 $7,87( Street Improvements Parkway Landscaping and Irrigation Median Landscape and Irrigation Median Stamped Concrete Subtotal Construction Costs 2,914,726 I 126,644 I 96,300 342,100 $1,133 $3,479 Grading Vallecitos Sewer Mains Subtotal Constnrdion Costs 724,730 586,622 $1,311 Grading 1 199,500 Landscape installation 285,200 Maintenance 62,500 Monitoring 29,500 , Offsite Easement Acquisition 400,000 Subtotal Construction Costs $976,' City Of Carlsbad - As 9 ssment District No. 96-7 (Rancho 6 arrillo) Preliminary Engineer’s Report - March 27, 1998 CERTIFICATION OF COMPLETION OF ENVIRONMENTAL PROCEEDINGS STATE OF CALIFORNIA COUNTY OF SAN DlEGO CITY OF CARLSBAD The undersigned, under penalty of perjury, CERTIFIES as follows: 1. That I am the person authorized to prepare and process all environmental documentation as needed as it relates to the formation of the special assessment district being formed pursuant to the provisions of the “Municipal Improvement Act 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. 96-1, Rancho Carrillo (herein after referred to as tl- “Assessment District”). 2. The specific environmental proceedings relating to this Assessment District that have been completed are as follows: 3. I do hereby certify that all environmental evaluation proceedings necessary for the formation of the Assessment District have been completed to my satisfaction, and that no further environmental proceedings are necessary. EXECUTED this day of , 1998, at Carlsbad, California. CITY OF CARLSBAD STATE OF CALIFORNIA Berryman & Heniga 53 s:\$project\carlsbad\rancho carrillo\engr reptsbreeng 5-21 .doc 0 9EFFREYM. COOF Assessment Engir Education 8, Registrations M. S. C. E., Universify of California, Berkeley, 1977 B. S. C.E., University of California, Berkeley, 1976 B.A. in Economics, Washingfon Sfafe University, 1973 Registered Civil Engineer: California, 4980; Arizona, f 984; Nevada, 1987 Professional Affiliations American Society of Civil Engineers California Water Pollution Control Federation American Water Works Association American P ublic Works Association EXPERIENCE Mr. Cooper has extensive professional consulting engineering experience providing management of planning, design, construction and inspection services for water resourc water, wastewater, general civil, and assessment district engineering projects. Mr. Cooper I excellent presentation and project management skills, developed through many years managing capital improvement projects, private projects and assessment districts. MANAGEMENT & FINANCE Mr. Cooper has more than 19 years of experience in project management and the formation all types Of special financing districts. Mr. Cooper has served as District Engineer/Special 7 Consultant for the formation and administration of Mello-Roos Community Facilities Districts numerous communities. He has served as District Assessment Engineer for the formation districts under the authority of the Municipal Improvement Acts of 1913 and 1931 Debt Li Reports, Benefit Assessment Act of 1982, the Landscape and Lighting Act of 1972, and Artic 3.6 of the Government Code to form Fire Suppression Assessments for numero communities. Mr. Cooper is a registered Civil Engineer in the State of California, Arizona a Nevada. Mr. Cooper's specific expertise in assessment engineering and Mello-Roos includes: Municipal Improvement Act of 1913 . Flood Protection Restoration Assessment District, San Joaquin Area Flood Control Agent . Undergrounding Assessment District No. 63 (Newport Island), City of Newport Beach . Undergrounding Assessment District No. 64 (Channel Road), City of Newport Beach . Undergrounding Assessment District No. 72 (Balboa Coves), City of Newport Beach . Summerhill Assessment District 90-1A, City of Lake Elsinore . Golden Lantern Assessment District 87-1, County of Orange . South Santa Fe Road Assessment District No. 90-1, City of Vista . Mission Valley HeightsIFriars Road Mission Center Acquisition District, City of San Diego . 4-S Ranch, County of San Diego . Valley Center Sewer District, County of San Diego McFadden Square Assessment District No. 59, City of Newport Beach Berryman & Heniga 5q e 9EFFREYM. COOP Assessment Engir; . JoshuaNVest Main Street Assessment District No. 90-1, City of Hesperia Sepulveda Boulevard Assessment District No. 92-1, City of Carson I Arroyo Vista Assessment District No. 92-1, City of Desert Hot Springs . Assessment District No. 1993-1 Review, Mammoth County Water District . LomaNia Escola, City of Orange . Westminster Boulevard Assessment District No. 92-1, City of Westminster Landscape and Street Lighting Maintenance Districts (1972 Acts) . Proposition "A" - Los Angeles Countywide Park and Open Space Maintenance Dist Mountains Recreation and Conservation Authority, State of California . Park Maintenance Districts, Los Angeles County Department of Parks & Recreation . County Landscape and Lighting District No. 1979-3 (LL-2), Contra Costa County . Open Space District No. 94-1, Santa Clara County Open Space Authority . Park and Open Space District, County of Sacramento . Districtwide Lighting and Landscape Maintenance District, Valley-Wide Recreation i Park District . Landscape Maintenance District No. 1, City of Clovis . Whiteface Development Open Space District, Rancho Simi Recreation and Park District . Citywide Landscape and Street Lighting Maintenance District, City of Lake Elsinore . 1-1 0 Corridor Beautification District Feasibility Study, San Bernardino Association Governments . Citywide Street Lighting District, City of Poway . Landscape Maintenance Districts No. 83-1, 86-1, 86-2, 86-3, 87-1, City of Poway . Citywide Street Lighting and Median Maintenance District, City of Stanton . Santee Town Center Landscape Maintenance District, City of Santee . Landscape Maintenance District, City of Santee . Urban Design Program Maintenance District, City of Beverly Hills . Citywide Landscape and Street Lighting Maintenance District, City of El Monte . Citywide Landscape and Lighting Maintenance District, City of South Pasadena . Citywide Landscape and Lighting Maintenance District, City of Monrovia . Landscape and Street Lighting Maintenance District, City of Pomona . Citywide Landscape and Street Lighting District, City of Manhattan Beach . Landscape and Street Lighting Maintenance Districts, City of Tustin . Citywide Street lighting and Landscape Maintenance District, City Of Calimesa . Citywide Landscape Maintenance District, City of Vista . Park and Safety Lighting District, City of Palm Springs . Citywide Landscaping and Lighting District, City of Lawndale . Citywide Lighting and Landscape Maintenance District, City of Rancho Palos Verdes Citywide Landscape and Street Lighting Maintenance District No. 1, City of La Quinta Library Services Assessments and Special Taxes . Community Facilities District No. 8 (Library Services), County of Los Angeles Public Libra . Additional Library Services Assessment District No. 96-2, City of Sacramento . Sacramento Public Library Community Facilities District No. 1996-01, County of Sacrame . New Library and Carnegie Rehabilitation & Museum Assessment District, City of Alamed; . Preliminary Library Services Assessment Feasibility Study, County of Los Angeles Pub Library Berryman & Henigz 5% e 9lFFREYM. COOP Assessment Engir . County Service Area Assessment for Library Services, El Dorado County Library . Library Services Special Tax, City of South Pasadena Mello-Roos Community Facilities Districts . Community Facilities District No. 8 (Library Services), County of Los Angeles PI Library . Community Facilities District No. 1996-01 (Sacramento Public Library), County Sacramento a Cottonwood Hills Community Facilities District No. 91-3, City of Lake Elsinore . Summerhill Community Facilities District No. 91-2, City of Lake Elsinore * North Lake Elsinore Hills Community Facilities District No. 90-3, City of Lake Elsinore Tuscany Hills Community Facilities District No. 90-2, City of Lake Elsinore . Scenic Ridge Community Facilities District No. 91-4, City of Lake Elsinore . Hacienda DriveIBuena Vista Creek Community Facilities District No. 90-2, City of Vista . North County Square Community Facilities District No. 92-1 , City of Vista . Belgate Community Facilities District No. 91-1, City of Hesperia . Gateway Community Facilities District No. 93-1, City of Norco . Public Safety Community Facilities District No. 93-1 , City of Desert Hot Springs Vehicle Parking District Act of 7943 . Analysis and Review of Existing Districts, City of Pomona Benefit Assessment Act of 1982 . Citywide Street Maintenance District, City of Vista . Citywide Street Maintenance District Feasibility Study, City of Westminster . Citywide Street Maintenance District Feasibility Study, City of Lawndale Fire Suppression Assessments . Fire Suppression Assessment, Ventura County Fire Protection District . Fire Suppression Assessment, City of Palos Verdes Estates % . Fire Suppression Assessment, Bennett Valley Fire Protection District . Fire Suppression Assessment, City of lndio . Fire Suppression Assessment, Mid-Valley Fire Protection District . Fire Suppression Assessment, North County Fire Protection District . Fire Suppression Assessment, San Miguel Fire Protection District . Fire Suppression Assessment, City of Santa Fe Springs . Fire Suppression Assessment, Jenny Lind Fire Protection District . Fire Suppression Assessment, City of South Pasadena . Fire Suppression Assessment, City of Glendale Fire Department . Fire Suppression Assessment, Coachella Fire Protection District . Fire Suppression Assessment, City of Covina Conference Presentations and Workshops . League of California Cities, Alternative Mechanisms for Fundinq Public Safety Service October 1993, San Francisco, CA National Recreation and Park Association Congress for Recreation and Pari Successful Park Bond Acts, October 1993, San Jose, CA Berryman & Henig; S? 0 9FFREYM. COOPl Assessment Engin1 . California Library Association, Fallout From SB566 -- What's Next?, November IS Oakland, CA . California Fire Chiefs AssociationIFire Districts Association of California, 1 Suppression Assessments, May 1993, San Jose, CA * California Association of Recreation and Park Districts, Landscape Maintenai Districts, May 1993, Sacramento, CA California and Pacific Southwest Recreation and Park Conference, How to Forn Landscaping and Lightins District, February 1994, Anaheim, CA . California Contract Cities Association, Cost Effective Public Works Proiects Can Si Your City Monev, May 1996, Palm Springs, CA Bergman & Henigi 60 m 0 Muster Plan Villages 62 I r agt: Policy No. 33 Effective Date 7/ General Subject: Assessment District Financing Cancellation Datt Supersedes No. ; OF CARLSBAD 0 COUNCIL POLICY STATEMENT Date Issued 7/28 of Public Improvements Policy for Use of 1915 Act Bond City Council, City Manager, City Attorney, Department and Dil Employee Bulletin Boards, Press, File Specific Subject: Copies to: BACKGROUND In the past few years, the City Council has received several requests from property owr be constructed as a condition of such developments. The City Council has determined thl financing and 1915 Act bonds should only be used if a mutual y benefit to be found in addition to the special benefit confeired to the properties within the developmenl Council has determined further that such a mutual benefit can be found in the constructit streets that compliment the City’s arterial street system im+emswJr, 2- -& li&& communities within the City. The use of assess financing for arterial streets may include sewer and water lines when the Public Works : Jhg-mew determines it is necessary that they be located within the street right-of-way. Projl include other incidental construction such as drainage facilities located within an eli, highway and environmental miti@on required for the inipro,rovemenls.7 Council has also determined that it is necessary to establish circumstances under which the will approve assessment district financing as a guide to those who would seek to request it. planned developments to use 1915 Act Assessment District bond financing for public imp PURPOSE To establish a policy regarding the requirements which must be met before the City Council the financing of public improvements using 191 5 Act assessment district bonds. To establish a procedure for processing applications for assessment district financing and a committee to apply the requirements of this policy to such applications. The commit1 consider recommending that the City initiate a district. The policy is primarily intended to apply assessment districts proposed for proper predominantly undeveloped where the developers in the area propose to use public financi private financing for appropriate public improvements. It is not the intent of this policy to relieve any developer of responsibilities for public imp1 conditions of development related to the subdividing of property, the processing of tents parcel maps, or master plan developments. rc 1- ’/ 0 Page : PolicyNo. 33 Date Issued 7/28 Effective Date 7/ General Subject: Assessment District Financing Cancellation Datc Supersedes No. 1 C Ilt OFCARLSBAD COUNCIL POLICY STATEMENT of Public Improvements Policy for Use of 1915 Act Bond City Council, City Manager, City Attorney, Department and Dit Specific Subject: Copies to: Employee Bulletin Boards, Press, File POLICY 1. The City may allow the financing of public improvements under the provisions of this the public facilities represent, in the City’s opinion, a w mutual benefi the community and a special benefit to the prospective residents of the developmentT,h v. 2. Facilities which may be considered shall be public facilities in dedicated rights-of-wa and for which a public agency has on-going responsibility to maintain and operate. facilities to be financed are limited to: .. (a) Arterial streets identified on the circulation element of the Carlsbad General Plan. (b) Sewer and water lines to be located within the right-of-way of arterial streets WJ Engineer determines it is necessary that they be so located. such streets. (c) Drainage facilities and public utilities may be included which are appurtenant and (d) Environmeiital mitigation required for the project. 3. Project property value to lien ratio should be 4:l after the installation of the improvemenl financed. A project may be approved with a ratio between 4: 1 and a minimum of 3: 1 if t recommended by both bond counsel and the underwriter and if the City Council finds thc ratio to be within parameters acceptable to them. The value of the property proposed to 1 shall be determined by an M.A.I. appraisal, performed by an appraiser selected by the Cit 4. Projects shall be at the stage where all criteria of this policy can be adequately assessed. Developments proposed for inclusion in a district shall have already received environmer and shall have already received all legislative approvals such as zoning, master plans, spec Local Facilities Management Plans. The City Council may approve a district that include without legislative approvals if the improvement to be constructed is consistent with the and if the City Council finds the improvement is required in the public interest. 5. Assessment districts shall have the concurrence of the affected area’s property owner’s rt not less than 60 percent, by area, of the land proposed to be assessed. The petition shall i acceptance of this policy and a waiver of the property owners’ rights under the Majority The city Council is in no way required to proceed with the formation of an assessment di Council finds that the creation of the district or the construction of the improvements will best interest of the City. G ii 0 Page Policy No. 33 Date Issued 7/28, General Subject: Assessment District Financing Cancellation Datc Supersedes No. i C 01 OFCARLSBAD COUNCIL POLICY STATEMENT Effective Date 71 of Public Improvements Specific Subject: Policy for Use of 1915 Act Bond Copies to: City Council, City Manager, City Attorney, Department and Div Employee Bulletin Boards, Press, File 6. The City shall select the assessment engineer, bond counsel, required, the financial cons required, an underwriter. In making such selections the City will take suggestions from proponents into account. The design engineer in consultation with and subject to approv: The bond counsel, underwriter and financial consultant will provide the City with a State Conflict of Interest related to real estate holdings within the district. The design engineei assessment engineer shall provide a Statement of Conflict of Interest as required under S 87100.1 of the Government Code (see attached). 7. Bonds issued under this policy may be sold through a competitive or negotiated sale as d the City Council. The Council will consider recommendations from staff and the City’s consultant in selecting a method of sale. 8. A sum sufficient to pay all fees and costs for the proposed assessment district prior to aw; contract shall be deposited with the City by the proponents of the district. The proponent be required to deposit with City a sum sufficient to cover all City costs incurred in conne review of a proposed district including staff review, legal review, administration, plan chc investigation, City Council review, inspection and property appraisals. These sums will k City to the degree used if the district is not successfully completed or if such costs are not City from the district. If the district is confirmed any sum not retained by City shall be re cash or applied as a credit against the assessments at the option of the proponents. 9, Improvements shall be constructed in accordance with the Municipal Improvement Act the assessment district bonds shall be issued in accordance with the Improvement Bond J unless the City Council determines otherwise. lO.Generally, there shall be no overlapping bond assessments or tax liens on the proposed SI assessment district at the time assessments are to be affirmed by the City. The City COUI advise of bond counsel, may approve an overlap provided the combined assessments are property value ratios of Paragraph 3 of this policy. 1 1 .The proponents of the district must demonstrate to the satisfaction of the City Council tE financing or other means is available for the developments to be included within the dist to meet all assessment obligations between the time the district is formed and the pay of or their assumption by the purchasers of the individual homes within the proposed devel part of the review, the City Council may also consider any indebtedness presently existii properties to be assessed. The district proponents must bring all property tax bills curren keep them current prior to confirmation of the district. f $- TA Page 0 Policy No. 33 Date Issued 7/28, Effective Date 7/ General Subject: Assessment District Financing Cancellation Datc Supersedes No. 1 C 1c1 OFCARLSBAD COUNCIL POLICY STATEMENT of Public Improvements Specific Subject: Policy for Use of 1915 Act Bond Copies to: City Council, City Manager, City Attorney, Department and Div Employee Bulletin Boards, Press, File 12. If the City Council determines it is necessary, a financial feasibility study me be require consultant selected by the City to be accomplished at the expense of the proponents oft ascertain whether or not the proposed development will find market acceptance. The C may accept a private sale bond purchase agreement fi-om a qualified underwriting firm ( conditions satisfactory to the City in lieu of such a study. 13. As part of the structuring of the financing for the district the City Council shall require tl adequate reserve fund be established to cover any potential defaults. The City is not req advance monies to the reserve fund to pay for delinquencies. It is the City’s intent that i Fund not be obligated in any way for future delinquencies. 14. The City Council may require the district proponents to enter into an agreement with the individually and jointly responsible for the cost of any foreclosures which the City deter necessary in regard to the assessment district bonds. The City may, at its option, retain i prosecute the foreclosures in a timely manner in the name of the City and the proponent be responsible for all costs of such foreclosures. If the City Council approves a pass thrc bond to the purchaser of an individual lot, the proponents shall be relieved of their oblig the agreement for such lot. 15. It is the policy of the City Council in approving basic legislative authorization for develc as master plans for planned communities, to give such approvals as part of the City’s on planning process. That is, the City reserves the right to modify the approvals in the futui determine the public interest may require. Such approvals, when given, are subject to a I that the construction of any part of a development does not vest any rights to complete o of the development. Construction of public improvements pursuant to an assessment dis undeveloped land, shall not vest any rights to the existing legislative approvals for the pr assessed or to any particular level, type or intensity of use. Proponents of a district shall acknowledgment of this policy as part of their petition and shall expressly waive on theii on behalf of their successors and assigns any cause of action based on the case of Fury v Sacramento which might be applicable to properties to be assessed. 16. It is the City’s desire that proponents discharge the assessment district bonds applicable 1 property prior to the individual sale of individual lots. The City Council may approve a of the bond obligation to a prospective purchaser at their sole discretion. A developer w: secure approval of a pass through must apply to the City in writing, requesting permissic The letter must contain a plan of how the prospective buyer will be notified and the steps accomplish the pass through. &G .. Page 0 Policy No. 33 Date Issued 7/28) Effective Date 7/ Supersedes No. J C fi OFCARLSBAD COUNCIL POLICY STATEMENT General Subject: Assessment District Financing Cancellation Date SpeGif2G Subject: of Public Improvements Policy for Use of 1915 Act Bond Copies to: The required procedure shall include, but not be limited to, all of the following: a) Provide for full disclosure of this and any other assessment financing applicable to th prospective purchasers including principal interest rate, duration and amount of monthly b) List the amount of the assessment lien in all sales brochures, all advertising and all pui documents adjacent to the sales price of the property and in the same size type. c) Give prospective purchaser an option to have the assessment lien discharged prior to c house or by a reapportionment of the assessment. (Sample disclosure forms are attache policy). Once the request is received from the developer, it will be placed on the Cow agenda for consideration after a complete review of the request by staff and the Policy Committee. City Council, City Manager, City Attorney, Department and Div Employee Bulletin Boards, Press, File escrow or to assume the assessment lien by a pass through as a part of the sales price ( 17. The principal purpose for the City Council’s approval of assessment district financing is the links in the City’s circulation system. The City Council in that regard will not favor district which contemplates the construction of a portion of an arterial street unless it is logical way to connect with the City’s existing circulation system. The City may require proponents of a district expand the area to be included within a proposed district as may to complete such circulation. 18. It is the Council’s policy that, in the event that there are surplus funds generated througl of an assessment district and the sale of bonds, these surplus funds shall be used as follo7 (a) To complete any work related to the project that the Council determines is equitable reasonable as allowed by the 19 13/19 15 Act statutes. (b) The Council may direct staff to use a portion of this surplus to offset assessment owners in following years in a manner consistent with the 1913/15 Act statutes, policy, an amount of up to 5 percent of the total bond issue size not to exceed $1 m used to offset annual assessments without further Council action. (c) Unless otherwise directed by Council, any amount in excess of that used to offset a: described in (b) above will be used to call bonds at an appropriate bond call date, 2 by staff and the City’s financial advisor. e .-_I .-. “k v Page 0 PolicyNo. 33 Date Issued 7/28, Effective Date 7/ General Subject: Assessment District Financing Cancellation Datt Supersedes No. _1 C R? OFCARLSBAD COUNCIL POLICY STATEMENT of Public Improvements Policy for Use of 1915 Act Bond City Council, City Manager, City Attorney, Department and Div Employee Bulletin Boards, Press, File Specific Subject: Copies to: PROCEDURE: 1. It is the intention of the City Council that proponents of a district have an early opport the proposal reviewed by City staff for compliance with this policy. In that regard, the hereby directs the creation of the Project Review Committee. The Committee shall ( City Manager, City Attorney, Community Development Director, Planning D JhgmeePublic Works Director, Administrative Services Director- (Chairperson), &Finance Director, 1, a*- The Committee shall meet on request with proponents of a district to review a project whether or not the requirements of this policy have been satisfied. Committee review sh prior to the presentation of an assessment district project to the City Council. Whene project is presented to the Council it shall be accompanied by a report containing the recommendations of the Committee made in regard to such project. The Committee m; proponents to furnish any information necessary to the evaluation of the proposed ( Committee may require all or any part of the deposits provided for in this policy to be 1 the commencing their review of the project. 2. Upon review of the proposed assessment district and after considering the report of th the City Council shall determine whether or not to approve proceeding with the fon district. It is the policy of the City Council of the City of Carlsbad to limit projects to t forth in this policy. The City Council reserves to itself the authority to approve or di proposed improvement district based upon the evidence received at the hearings helc Council. Any exceptions to the criteria of this policy will be approved only upon an elc by the City Council that the project is so affected with a public interest that the City sh providing tax fiee financing for the improvement in order to satisfy a public need. If the approves proceeding with the formation of the district, City staff and the proponents sh do that in accordance with State Law and the requirements of this policy. 3. Where there are multiple proponents of a proposed district they shall designate authorized to act for the proponents in their dealings with the City. The spokes] responsible for collecting any fees for deposit with the City, providing any necessary i the City, and for communicating as necessary back to the proponents. f ;: 1- -. - e + I Page 1 CITY OF CARLSBAD Policy No. 33 Date Issued 61231' Effective Date 6/; General Subject: Assessment District Financing Cancellation Date Supersedes No. 2 COUNCIL POLICY STATEMENT of Public Improvements Policy for Use of 1915 Act Bond Specific Subject: Copies to: City Council, City Manager, City Attorney, Department and Divi Employee Bulletin Boards, Press, File BACKGROUND In the past few years, the City Council has received several requests from property own1 planned developments to use 1915 Act Assessment District bond financing for public imp1 be constructed as a condition of such developments. The City Council has determined ths financing and 1915 Act bonds should only be used if a mutual benefit to the City can addition to the special benefit conferred to the properties within the development. determined further that such a mutual benefit can be found in the construction of arteriz compliment the City's arterial street system by linking communities within the City. assessment district financing for arterial streets may include sewer and water lines whe Works Director determines it is necessary that they be located within the street right-of-N may also include other incidental construction such as drainage facilities located withi arterial highway and environmental mitigation required for the improvements. Council has also determined that it is necessary to establish circumstances under which the will approve assessment district financing as a guide to those who would seek to request it. PURPOSE To establish a policy regarding the requirements which must be met before the City Council the financing of public improvements using 191 5 Act assessment district bonds. To establish a procedure for processing applications for assessment district financing and committee to apply the requirements of this policy to such applications. The commi consider recommending that the City initiate a district. The policy is primarily intended to apply assessment districts proposed for propc predominantly undeveloped where the developers in the area propose to use public financ private financing for appropriate public improvements. It is not the intent of this policy to relieve any developer of responsibilities for public im conditions of development related to the subdividing of property, the processing of ten parcel maps, or master plan developments. 3 f v Page : CITY OF CARLSBAD Policy No. 33 Date Issued 6/23/ Effective Date 6/ General Subject: Assessment District Financing Cancellation Datt Supersedes No. i COUNCIL POLICY STATEMENT of Public Improvements Specific Subject: Policy for Use of 1915 Act Bond Copies to: POLICY City Council, City Manager, City Attorney, Department and Dii Employee Bulletin Boards, Press, File 1. The City may allow the financing of public improvements under the provisions of this the public facilities represent, in the City’s opinion, a mutual benefit to the comi special benefit to the prospective residents of the development. 2. Facilities which may be considered shall be public facilities in dedicated rights-of-wa and for which a public agency has on-going responsibility to maintain and operate. facilities to be financed are limited to: (a) Arterial streets identified on the circulation element of the Carlsbad General Plan. (b) Sewer and water lines to be located within the right-of-way of arterial streets whr (c) Drainage facilities and public utilities may be included which are appurtenant and (d) Environmental mitigation required for the project. Works Director determines it is necessary that they be SO located. such streets. 3. Project property value to lien ratio should be 4: 1 after the installation of the improvemen financed. A project may be approved with a ratio between 4: 1 and a minimum of 3: 1 if 1 recommended by both bond counsel and the underwriter and if the City Council finds th ratio to be within parameters acceptable to them. The value of the property proposed to shall be determined by an M.A.I. appraisal, performed by an appraiser selected by the Cit 4, Projects shall be at the stage where all criteria of this policy can be adequately assessed, Developments proposed for inclusion in a district shall have already received environme and shall have already received all legislative approvals such as zoning, master plans, spe Local Facilities Management Plans. The City Council may approve a district that includt without legislative approvals if the improvement to be constructed is consistent with the and if the City Council finds the improvement is required in the public interest. 5. Assessment districts shall have the concurrence of the affected area’s property owner’s r not less than 60 percent, by area, of the land proposed to be assessed. The petition shall acceptance of this policy and a waiver of the property owners’ rights under the Majority The city Council is in no way required to proceed with the formation of an assessment d Council finds that the creation of the district or the construction of the improvements wil best interest of the City. I Page CITY OF CAIUSBAD PolicyNo. 33 Date Issued 6/23) Effective Date 6/ General Subject: Assessment District Financing Cancellation Date Supersedes No. 2 COUNCIL POLICY STATEMENT of Public Improvements Specific Subject: Policy for Use of 1915 Act Bond Copies to: City Council, City Manager, City Attorney, Department and Div Employee Bulletin Boards, Press, File 6. The City shall select the assessment engineer, bond counsel, required, the financial cons1 required, an underwriter. In making such selections the City will take suggestions from i proponents into account. The design engineer in consultation with and subject to approw The bond counsel, underwriter and financial consultant will provide the City with a State Conflict of Interest related to real estate holdings within the district. The design engineei assessment engineer shall provide a Statement of Conflict of Interest as required under SI 87100.1 of the Government Code (see attached). 7. Bonds issued under this policy may be sold through a competitive or negotiated sale as d the City Council. The Council will consider recommendations from staff and the City’s consultant in selecting a method of sale. 8. A sum sufficient to pay all fees and costs for the proposed assessment district prior to aw; contract shall be deposited with the City by the proponents of the district. The proponenl be required to deposit with City a sum sufficient to cover all City costs incurred in conne review of a proposed district including staff review, legal review, administration, plan chc investigation, City Council review, inspection and property appraisals. These sums will t City to the degree used if the district is not successhlly completed or if such costs are not City from the district. If the district is confirmed any sum not retained by City shall be rf cash or applied as a credit against the assessments at the option of the proponents. 9. Improvements shall be constructed in accordance with the Municipal Improvement Act the assessment district bonds shall be issued in accordance with the Improvement Bond. unless the City Council determines otherwise. 1 O,Generally, there shall be no overlapping bond assessments or tax liens on the proposed s assessment district at the time assessments are to be affirmed by the City. The City Cou advise of bond counsel, may approve an overlap provided the combined assessments are property value ratios of Paragraph 3 of this policy. 1 1 .The proponents of the district must demonstrate to the satisfaction of the City Council tl financing or other means is available for the developments to be included within the dis to meet all assessment obligations between the time the district is formed and the pay oi or their assumption by the purchasers of the individual homes within the proposed deve part of the review, the City Council may also consider any indebtedness presently existi properties to be assessed. The district proponents must bring all property tax bills currer keep them current prior to confirmation of the district. - Page I) CITY OF CARLSBAD PolicyNo. 33 Date Issued 6/23/‘ Effective Date 6/; General Subject: Assessment District Financing Cancellation Date Supersedes No. 7/ COUNCIL POLICY STATEMENT of Public Improvements Specific Subject: Policy for Use of 1915 Act Bond Copies to: City Council, City Manager, City Attorney, Department and Divi Employee Bulletin Boards, Press, File 12. If the City Council determines it is necessary, a financial feasibility study me be requirec consultant selected by the City to be accomplished at the expense of the proponents of tk ascertain whether or not the proposed development will find market acceptance. The Ci may accept a private sale bond purchase agreement from a qualified underwriting firm o conditions satisfactory to the City in lieu of such a study. 13. As part of the structuring of the financing for the district the City Council shall require th adequate reserve find be established to cover any potential defaults. The City is not reqi advance monies to the reserve fund to pay for delinquencies. It is the City’s intent that i1 Fund not be obligated in any way for future delinquencies. 14. The City Council may require the district proponents to enter into an agreement with the individually and jointly responsible for the cost of any foreclosures which the City deten necessary in regard to the assessment district bonds. The City may, at its option, retain a prosecute the foreclosures in a timely manner in the name of the City and the proponent I be responsible for all costs of such foreclosures. If the City Council approves a pass thrc bond to the purchaser of an individual lot, the proponents shall be relieved of their oblig; the agreement for such lot. 15. It is the policy of the City Council in approving basic legislative authorization for develc as master plans for planned communities, to give such approvals as part of the City’s on- planning process. That is, the City reserves the right to modify the approvals in the futur that the construction of any part of a development does not vest any rights to complete o of the development. Construction of public improvements pursuant to an assessment dis undeveloped land, shall not vest any rights to the existing legislative approvals for the pi assessed or to any particular level, type or intensity of use. Proponents of a district shall acknowledgment of this policy as part of their petition and shall expressly waive on thei on behalf of their successors and assigns any cause of action based on the case of Fury \ Sacramento which might be applicable to properties to be assessed. determine the public interest may require. Such approvals, when given, are subject to a < 16. It is the City’s desire that proponents discharge the assessment district bonds applicable property prior to the individual sale of individual lots. The City Council may approve a of the bond obligation to a prospective purchaser at their sole discretion. A developer w secure approval of a pass through must apply to the City in writing, requesting permissic The letter must contain a plan of how the prospective buyer will be notified and the step accomplish the pass through. . 1 Page CITY OF CARLSBAD PolicyNo. 33 Date Issued 61231s Effective Date 6/; General Subject: Assessment District Financing Cancellation Date Supersedes No. 2 COUNCIL POLICY STATEMENT of Public Improvements Policy for Use of 1915 Act Bond City Council, City Manager, City Attorney, Department and Divi Employee Bulletin Boards, Press, File Specific Subject: Copies to: The required procedure shall include, but not be limited to, all of the following: a) Provide for full disclosure of this and any other assessment financing applicable to the prospective purchasers including principal interest rate, duration and amount of monthly I: b) List the amount of the assessment lien in all sales brochures, all advertising and all purc documents adjacent to the sales price of the property and in the same size type. c) Give prospective purchaser an option to have the assessment lien discharged prior to cl escrow or to assume the assessment lien by a pass through as a part of the sales price o house or by a reapportionment of the assessment. (Sample disclosure forms are attachec policy). Once the request is received from the developer, it will be placed on the Counc agenda for consideration after a complete review of the request by staff and the Policy : Committee. 17. The principal purpose for the City Council’s approval of assessment district financing is 1 the links in the City’s circulation system. The City Council in that regard will not favor a district which contemplates the construction of a portion of an arterial street unless it is e logical way to connect with the City’s existing circulation system. The City may require proponents of a district expand the area to be included within a proposed district as may 1 to complete such circulation, 18. It is the Council’s policy that, in the event that there are surplus funds generated through of an assessment district and the sale of bonds, these surplus funds shall be used as follob (a) To complete any work related to the project that the Council determines is equitable i reasonable as allowed by the 1913/1915 Act statutes. (b) The Council may direct staff to use a portion of this surplus to offset assessments owners in following years in a manner consistent with the 1913/15 Act statutes. policy, an amount of up to 5 percent of the total bond issue size not to exceed $1 mil used to offset annual assessments without further Council action. (c) Unless otherwise directed by Council, any amount in excess of that used to offset as: described in (b) above will be used to call bonds at an appropriate bond call date, a: by staff and the City’s financial advisor. I 4% k Page CITY OF CARLSBAD Policy No. 33 Date Issued 6/23/! Effective Date 6/' General Subject: Assessment District Financing Cancellation Date COUNCIL POLICY STATEMENT of Public Improvements Supersedes No. ; Specific Subject: Copies to: Policy for Use of 1915 Act Bond City Council, City Manager, City Attorney, Department and Div Employee Bulletin Boards, Press, File PROCEDURE: 1. It is the intention of the City Council that proponents of a district have an early opport. the proposal reviewed by City staff for compliance with this policy. In that regard, the 1 hereby directs the creation of the Project Review Committee. The Committee shall c City Manager, City Attorney, Community Development Director, Planning Director, P Director, Administrative Services Director (Chairperson), and Finance Director. Thc shall meet on request with proponents of a district to review a project to determine whet1 requirements of this policy have been satisfied. Committee review shall take place presentation of an assessment district project to the City Council. Whenever any su presented to the Council it shall be accompanied by a report containing the j recommendations of the Committee made in regard to such project. The Committee ma proponents to furnish any information necessary to the evaluation of the proposed c Committee may require all or any part of the deposits provided for in this policy to be I the commencing their review of the project. 2. Upon review of the proposed assessment district and after considering the report of thr the City Council shall determine whether or not to approve proceeding with the forn district. It is the policy of the City Council of the City of Carlsbad to limit projects to tl forth in this policy. The City Council reserves to itself the authority to approve or di! proposed improvement district based upon the evidence received at the hearings held Council. Any exceptions to the criteria of this policy will be approved only upon an ex] by the City Council that the project is so affected with a public interest that the City shc providing tax free financing for the improvement in order to satisfy a public need. If the approves proceeding with the formation of the district, City staff and the proponents shi do that in accordance with State Law and the requirements of this policy. 3. Where there are multiple proponents of a proposed district they shall designate i responsible for collecting any fees for deposit with the City, providing any necessary ir the City, and for communicating as necessary back to the proponents. authorized to act for the proponents in their dealings with the City. The spokesr I -\