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HomeMy WebLinkAbout2003-07-15; City Council; 17247; Assessment District No. 2003-01AB# 17,247 MTG. 711 5/03 DEPT. FIN CITY OF CARLSBAD - AGENDA BILL TITLE: ASSESSMENT DISTRICT NO. 2003-01 (COLLEGE BOULEVARD AND CANNON ROAD EAST) MAKING FINDINGS ON PETITION, ADOPTING THE PROPOSED BOUNDARIES, DECLARING INTENTION TO FORM THE ASSESSMENT DISTRICT, PASSING ON THE REPORT OF THE ASSESSMENT ENGINEER, SETTING A PUBLIC HEARING, AND RELATED ACTIONS RECOMMENDED ACTION: Adopt Resolution No. 2003-195 Proceedings and making appointments. , making findings on a petition for Special Assessment Adopt Resolution No. 2003-196 Assessment District No. 2003-01 (College Boulevard and Cannon Road East). Adopt Resolution No. 2003-197 , declaring intention to order the acquisition or construction of certain improvements in proposed Assessment District No. 2003-01 (College Boulevard and Cannon Road East), declaring the improvements to be of special benefit, describing the district to be assessed to pay the costs and expenses thereof, and providing for the issuance of bonds. , adopting a map showing the proposed boundaries of Adopt Resolution No. 2003-198 , passing on the report of the assessment engineer, setting a public hearing for September 16, 2003, and ordering the initiation of assessment ballot procedures. ITEM EXPLANATION: On December 3, 2002, the City Council approved the agreement (the "Acquisition/Financing Agreement") with Calavera Hills II LLC (the developer) for the acquisition, construction, and financing of improvements to Cannon Road East and College Boulevard and to master drainage plan facilities BJB and BJA for Financing District No. 01-02 (which has since been renamed Assessment District No. 2003-01). Under the agreement, the developer must construct the improvements to the City's standards and the City will acquire qualifying improvements subject to the approval of the City Engineer solely from the proceeds of bonds issued for the assessment district. The purpose of the assessment district is to establish a mechanism to finance the acquisition or construction of the public improvements and to spread the cost of the public improvements among the properties which will specially benefit from the improvements based upon the special benefit received by each such property. The City has participated in similar financing programs for Alga Road, Palomar Airport Road, College Boulevard, and improvements in the Carlsbad Ranch and Rancho Carrillo developments. The boundaries of the proposed assessment district are shown on the location map and include the Calavera Hills II LLC development consisting of Villages E-I, H, K, L-2, R, U, W, X, and Y with 689 proposed residential units, two community facilities, and several homeowners' association recreation lots. The boundaries also include the Robertson Ranch East development, currently owned by Calavera Hills II LLC, consisting of approximately 500 proposed residential units, community recreation, and several homeowners' association recreation lots. ! Page 2 of Agenda Bill No. 17,247 Except as specified below, the assessment district, as proposed, complies with City Policy Statement No. 33 as revised on December 17, 2002. As required by Policy 33, the City's Special District Review Committee has reviewed this assessment district, finds that it otherwise complies with the terms and conditions of the Council's policy, and recommends that the City Council proceed with the formation of the assessment district. Paragraph 8 of Policy 33 requires that all property proposed to be included within the assessment district "shall have received environmental review and approval of all land use entitlements such as zoning, master plans, or Local Facilities Management Plans and regulatory permits." The necessary entitlements have been obtained for the Calavera Hills portion of the proposed assessment district (see "Environmental Review" below). Such entitlements have not been obtained for Robertson Ranch East. Calavera Hills II LLC has submitted an application for approval of a master plan for Robertson Ranch and City staff has requested certain revisions to the proposed master plan. Policy 33 provides that the City Council may approve an assessment district that includes some land without such land use entitlements if the improvements to be financed are consistent with the General Plan, and if the City Council finds that the improvements are required in the public interest. The improvements proposed to be acquired by the City from the proceeds of bonds issued for the assessment district include four lanes of College Boulevard from Carlsbad Village Drive to Cannon Road including sewer, water, recycled water'snd dry utilities; four lanes of Cannon Road from El Camino Real to College Boulevard including sewer, water, and dry utilities; storm drain detention basin BJB and storm drain line BJA (less any improvements be reimbursed to the developer from Master Plan Local Drainage Area Fees); and related costs for environmental, acquisition and creation of mitigation lands, engineering, and inspection. The primary improvements proposed to be financed through the assessment district include the extension of College Boulevard and Cannon Road, both important links in the City's traffic circulation system and designated as major arterials on the Circulation Element of the City's General Plan. Staff therefore supports a finding by the City Council that the improvements are consistent with the General Plan and are required in the public interest. ENVIRONMENTAL REVIEW: This assessment district has been deemed to be a "project" subject to the requirements of the California Environmental Quality Act (CEQA), since the levy of assessments and the issuance of bonds secured by such assessments are committed to a specific project which may result in a potentially significant physical impact on the environment. On January 15, 2002, the City Council adopted Resolution No. 2002-016 which certified the Environmental Impact Report, CEQA findings of fact, statements of overriding considerations, a mitigation monitoring and reporting program, and approving a general plan amendment, master plan amendment, Zone 7 Local Facilities Management Plan Amendment, zone change, master tentative map and hillside development permit within the Calavera Hills Master Plan on property generally located south of the City of Oceanside and west of Lake Calavera in the northeast quadrant of the City (Case No. EIR 98-02/GPAI 99-03/MP, 150(H)/LFMP, 87-07(A)/ZC, 01 -Ol/CT, 00-02/HDP 00-02). The EIR that was approved by the City Council included all of the improvements that are proposed to be acquired by the assessment district. Potentially significant impacts in the areas of air quality, biological resources, cultural resources, and hydrology/water quality will be mitigated through the incorporation of mitigation measures contained in the above documents which are on file with and can be reviewed at the Planning Department. Page 3 of Agenda Bill No. 17,247 FISCAL IMPACT: The assessment district tax-exempt bonds, scheduled to be sold in two series starting in spring 2004, will fund the acquisition or construction of the proposed improvements and related costs totaling approximately $24.2 million. This amouht includes formation costs, debt issuance costs, and the establishment of a 9% debt service reserve fund. The City is not responsible for the funding of the construction of any of the improvements included in the assessment district. The improvements will be constructed by the developer and acquired by the City after the bonds are sold. The developer has requested to be allowed to pass through the assessment to the prospective purchasers of the individual lots. The City’s Special District Review Committee has reviewed this request and recommends that the City Council approve it since, as required by City Policy 33, the estimated total amount of taxes, assessments, and special taxes appearing on the property tax bill will not exceed 1.8 percent of the initial sales price, as of the date of the close of escrow, of any residential dwelling unit to each prospective homeowner. If the assessments are permitted to be passed through to the residential homebuyers, Policy 33 requires that the developer provide full and complete disclosure of the assessment district to such prospective purchasers. The developer has agreed in the Acquisition/Financing Agreement to provide notice as required by Policy 33 and approved by the City Council. Staff intends to bring the proposed disclosure package to the City Council for its review and approval at the time of the public hearing to consider the formation of the assessment district. The bond funds used to acquire the improvements will not include that portion of the costs of such improvements representing (a) the general benefit to be derived from the arterial roadways, consisting of the center two lanes, and (b) the special benefit attributed to parcels of land to be owned by public agencies, non-profit organizations, homeowners’ associations, and property located outside of the assessment district in Robertson Ranch West which is fronting on Cannon Road and proposed as a public park and elementary school. The developer may request a reimbursement agreement for the cost of the special benefit for the property located outside of the assessment district in Robertson Ranch West. The developer will contribute that portion of such costs representing such general benefit and such special benefit through a corresponding reduction in the purchase price for the improvements to be acquired. EXHl BITS: 1. Location Map. 2. Resolution No. 2003-195 , making findings on a petition for Special Assessment Proceedings and making appointments. 3. Resolution No. 2003-196 , adopting a map showing the proposed boundaries of Assessment District No. 2003-01 (College Boulevard and Cannon Road East). 4. Resolution No. 2003-197 , declaring intention to order the acquisition or construction of certain improvements in proposed Assessment District No. 2003-01 (College Boulevard and Cannon Road East), declaring the improvements to be of special benefit, describing the district to be assessed to pay the costs and expenses thereof, and providing for the issuance of bonds. 5. Resolution No. 2003-198 , passing on the, report of the assessment engineer, setting a public hearing, and ordering the initiation of assessment ballot procedures. 6. Preliminary Engineer‘s Report dated June 25,2003. DEPARTMENT CONTACT: Lisa Hildabrand, (760) 602-2430, 1hildOci.carlsbad.ca.us 3 LOCAVON MAP NO SCALE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2003-195 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, MAKING FINDINGS ON A PETITION REQUESTING INITIATION OF PROCEEDINGS TO FORM CANNON ROAD EAST) AND MAKING APPOINTMENTS THEREIN ASSESSMENT DISTRICT NO. 2003-01 (COLLEGE BOULEVARD AND WHEREAS, the City Council of the City of Carlsbad, California, has been presented with an executed petition (the ”Petition”) submitted by the owners of certain real property located in the City of Carlsbad (the “City”) requesting that the City Council initiate proceedings pursuant to the ‘Municipal Improvement Act of 1913,” being Division 12 of the Streets and Highways Code of the State of California (the “Improvement Act“), to form an assessment district to be known and jesignated as Assessment District No. 2003-01 (College Boulevard and Cannon Road East) [the “Assessment Districr) for the purpose of financing the acquisition or construction of certain wblic improvements; and WHEREAS, such Petition was accompanied by evidence satisfactory to this City Council ,f the estimated fair market value of the land proposed to be assessed; and WHEREAS, Policy 33 of the City Council provides that all property to be included in an assessment district shall have already received environmental review and approval of all land use mtitlements such as zoning, master plans, specific plans, or Local Facilities Management Plans and regulatory permits (“Required Entitlements”); provided, however, such policy further provides hat the City Council may approve an assessment district that includes some land without such 1 approvals if the improvements to be financed are consistent with the General Plan of the City and f the City Council finds that the improvements are required in the public interest; and WHEREAS, while that portion of the proposed Assessment District known as Calavera iills and including approximately 689 dwelling units has received all Required Entitlements; lowever, that portion of the proposed Assessment District known as Robertson Ranch East and ncluding approximately 500 dwelling units has not received the Required Entitlements; and WHEREAS, the improvements proposed to be financed through the Assessment District nclude the extension of both College Boulevard and Cannon Road which are both important links n the City’s traffic circulation system and, as such, are required in the public interest; and 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, such improvements are designated as major arterials on the Circulation Element of the City's General Plan; and WHEREAS, this City Council desires to make certain findings regarding such Petition, to direct that proceedings to consider the formation of the Assessment District be initiated, and to make certain appointments related to such proceedings. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. That the above recitations are true and correct. That this City Council hereby finds as follows: A. The Petition has been executed by the owners, or the representatives of such owners legally authorized to execute such Petition for and on behalf of such owners, owning land constituting more than sixty percent (60%) of all'assessable land within the boundaries of the proposed Assessment District; B. The total estimated amount of the proposed assessment will not exceed 75% of the total estimated fair market value of the land proposed to be assessed after the proposed public improvements have been constructed; C. The Petition meetstall of the requirements of the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931" (Division 4 of the Streets and Highways Code of the State of California) (the "1931 Act") and, therefore, no further proceedings or limitations under the 1931 Act shall be applicable to these proceedings; D. The improvements to College Boulevard and Cannon Road are consistent with the General Plan of the City; and E. The completion of the extension of College Boulevard and Cannon Road is required in the public interest. 3. That this City Council hereby authorizes the initiation of proceedings pursuant to the Policy 33, the Improvement Act, Article XlllD of the Constitution of the State of California and the Proposition 21 8 Omnibus Implementation Act (Government Code Section 53750 and following) to consider the formation of the Assessment District. Page 2 of 3 of Resolution No. 2003-195 / t 1 2 3 4 5 6 7 8 9 IO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4. That the City Engineer is hereby appointed to perform all of the duties and 'unctions of the Superintendent of Streets, as such duties are specified in the Improvement Act, 'or these proceedings. 5. That the place for recordation of the assessment roll and diagram shall be in the Mice of the Superintendent of Streets. PASSED, APPROVED AND ADOFTED at a Regular Meeting of the City Council of the , 2003 by the following vote, to wit: 3ty of Carlsbad on the 15th day of JULY \YES: Council Members Lewis, Finnila, Kulchin, Hall, Pac VOES: None 4BSENT: None ATTEST: LORRAINE M. WOOW City Clerk (SEAL) Page 3 of 3 of Resolution No. 2003-195 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2003-196 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING A MAP SHOWING THE PROPOSED BOUNDARIES OF ASSESSMENT DISTRICT NO. 2003-01 (COLLEGE BOULEVARD AND CANNON ROAD EAST). WHEREAS, the City Council of the City of Carlsbad, 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 pursuant to the provisions and authority of the “Municipal Improvement Act of 1913,” being Division 12 of the Streets and Highways Code of the State of California; said assessment district known and designated as Assessment District No. 2003-01 (College Boulevard and Cannon Road East) (the “Assessment District”). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. That the above recitations are true and correct. That a map showing the boundaries of the proposed Assessment District and ands and property to be assessed to finance the costs and expenses of the acquisition or :onstruction of certain public improvements designated as “Proposed Boundaries of Assessment 3istrict No. 2003-01 (College Boulevard 2nd Cannon Road East)” is hereby submitted, and the same is hereby approved and adopted. 3. That the original map of the boundaries of the proposed Assessment District and me copy thereof are to be filed in the Office of the City Clerk. Yt Yt ftt It /I I/ It 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 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 (15) 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 of such map shall be filed with the correct and proper endorsements thereon with the County Recorder, all in the manner and form provided in Section 31 11 of the Streets and Highways Code of the State of California. ? PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 15th day of JULY , 2003 by the following vote, to wit: AYES: Council Members Lewis, Finnila, Kulchin, Hall, Packard NOES: None 4BSENT: None ATTEST: , LORRAINE M. WOHO, City Clerk' (SEAL) Page 2 of 2 of Resolution No. 2003-196 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2003-197 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DECLARING INTENTION TO ORDER THE ACQUISITION OR CONSTRUCTION OF CERTAIN IMPROVEMENTS IN PROPOSED CANNON ROAD EAST), DECLARING THE IMPROVEMENTS TO BE OF SPECIAL BENEFIT, DESCRlFlNG THE DISTRICT TO BE ASSESSED TO PAY THE COSTS AND EXPENSES THEREOF, AND PROVIDING FOR THE ISSUANCE OF BONDS. ASSESSMENT DISTRICT NO. 2003-01 (COLLEGE BOULEVARD AND BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CARLSBAD (THE “CITY”) 1s FOLLOWS: 1. The Improvements. The public interest and convenience require, and it is the ntention of this body, pursuant to the provisions of Division 12 of the Streets and Highways Code if the State of California (the “Municipal Improvement Act of 191 3”) (the “Improvement Act”), o order the acquisition or construction of certain public improvements, together with 3ppurtenance.s and appurtenant work, in a special assessment district known and designated as bsessment District No. 2003-01 (College Boulevard and Cannon Road East) (the “Assessment lis trict”). The improvements proposed to be financed through the levy of assessments on properties vithin the Assessment District are described in Exhibit A attached hereto and incorporated herein )y this reference, and appurtenances and appurtenant work, all necessary for and to specially Ienefit properties within the boundaries of the Assessment District (collectively, the Improvements”). The description of the Improvements contained in this Resolution is general in iature, and the plans and profiles of the Improvements as contained in the Engineer’s Report defined below) shall be controlling as to the correct and detailed description thereof. All of the Improvements to be acquired or constructed are to be installed at the places and n the particular locations, and to the sizes, dimensions and materials, to the lines, grades and slevations as shown and delineated upon the plans, profiles and specifications, all to be made a )art of the Engineer’s Report. All rights-of-way and easements reduired for the Improvements shall be shown upon the Aans referred to herein and to be filed with these proceedings. h, 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 2. Description Of Assessment District. The Improvements confer special benefit on the properties within the Assessment District. This legislative body hereby determines that the expenses of the acquisition or construction of such Improvements which reflect the special benefit to be conferred on the properties within the Assessment District from such Improvements are chargeable upon such properties. Such properties are described as follows: All of that certain territory in the proposed Assessment District included within the exterior boundary line5 shown on the map exhibiting the property specially benefited and proposed to be assessed to pay the expenses of the acquisition or construction of the Improvements described above, such map entitled "Proposed Boundaries of Assessment District No. 2003-01 (College Boulevard and Cannon Road East)," and which map was previously approved by this legislative body and is on file with the transcript of these proceedings. For all particulars as to the boundaries of the Assessment District, reference is hereby made to such boundary map. 3. Report of the Assessment Enqineer. The proposed Improvements are hereby ?eferred to Galen N. Peterson, Consulting Engineer (the "Assessment Engineer"), who is hereby jirected to make and file a report as required by the Improvement Act, Article XlllD of the 2onstitution 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 Nriting and contain the following: A. B. A description of the lpprovements; Plans and specifications of the Improvements sufficient to show or describe :he general nature, location and extent of the Improvements; C. An estimate of the cost of the acquisition or construction of the mprovements, including the cost of the incidental expenses, in connection therewith; D. A diagram showing, as the same existed at the time of passage of this qesolution, the following: 1. the exterior boundaries of the Assessment District and the benefit weas therein designated as Benefit Area No.1 and Benefit Area No. 2 (each, a "Benefit Area"); Il Il Il Page 2 of 6 of Resolution No. 2003-197 i 9 t 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. the lines and dimensions of each parcel of land within the Assessment District and each of the Benefit Areas; provided, however, such diagram may refer to the county assessor’s maps for a detailed description of such lines and dimensions, in which case such maps shall govern for all details concerning such lines and dimensions; and E. The proposed assessment of the total amount of the costs and expenses of the proposed Improvements upon the several divisions of land in the Assessment District and each of the Benefit Areas in proportion to the estimated special benefits to be conferred on such subdivisions, respectively, by such Improvements. Such assessment shall refer to such subdivisions upon such diagram by the respective numbers thereof. \ When any portion or percentage of the assessable costs and expenses of the construction of the Improvements is to be paid from sources other than assessments, the amount of such portion or percentage shall first be deducted from the total estimated costs and expenses of such construction, and such assessment shall include only the remainder of the estimated costs and expenses. 4. Financing of the Improvements. NOTICE IS HEREBY GIVEN that the City proposes to finance the cost of the acquisition or construction of the Improvements, including the cost of the incidental expenses, in connection therewith through the issuance of bonds (the “Improvement Bonds”) pursuant to the “Improvement Bond Act of 1915” (the “Bond Act”), Division 10 of the Streets and Highways Code of the State of California. The payment of the debt service on the Improvement Bonds shall be secured by the unpaid assessments within the District or the Benefit Area for which such series of the Improvement Bonds have been issued pursuant to the provisions of the Improvement Act and the Bond Act. . The provisions of Part 11.1 of the Bond Act, providing an alternative procedure for the advance payment of assessments and the calling of bonds shall apply to the Improvement Bonds. Ill Ill Ill Ill Page 3 of 6 of Resolution No. 2003-197 ’7 . *- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The principal amount of each series of the Improvement Bonds maturing each year shall be other than an amount equal to an even annual proportion of the aggregate principal of such series, and the amount of principal maturing in each year, plus the amount of interest payable in that year, will be generally an aggregate amount that is equal each year, except for the first 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. 5. Assessment Law. Except a& may otherwise be provided for in the issuance of the Improvement Bonds described above, all of the Improvements shall be constructed pursuant to the provisions of the Assessment Law. 6. Surplus Funds. 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 ($1,000) or five percent (5%) of the total from the Improvement Fund; B. C. D. To call Improvement Bonds. As a credit upon the assessment and any supplemental assessment; For the maintenance of the Improvements; or v 7. Improvement Fund. The legislative body hereby establishes a Special Improvement 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 or construction of the Improvements, and any such advancement of funds is a loan and shall be repaid out of the proceeds of the sale of bonds as authorized by law. 111 ‘I1 VI Page 4 of 6 of Resolution No. 2003-197 c- 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 8. Grades. 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 indicated on the plans and specifications, to which reference is made for a description of the grade at which the work is to be done. Any objections or protests to the proposed grade shall be made at the public hearing to be conducted under these proceedings. 9. Proceedings Inquiries. For any and all information relating to these proceedings, including information relating to protest procedure, your attention is directed to the person designated below: DAVID HAUSER, DEPUTY CITY ENGINEER CITY OF CARLSBAD 1635 FARADAY AVENUE CARLSBAD, CALIFORNIA 92008 (760) 602-2739 10. Public Propertv. All public property shall be subject to assessment in these proceedings unless otherwise expressly provided and listed herein. 1 I. Acquisition. The public interest, convenience, and necessity require that certain land, rights-of-way or easements be obtained in order to allow the Improvements as proposed for this Assessment District to be accomplished. The Engineer’s Report, upon adoption, shall set forth general description of the location and extent of easements andlor land necessary to be acquired. 12. No CiW Liability. This legislative body hereby further declares not to obligate itself to advance available funds from the Treasury to cure any deficiency that may occur in the bond redemption fund. This determination is made pursuant to the authority of 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 Bond Act. Ill Ill Ill Ill t ‘I1 Page 5 of 6 of Resolution No. 2003-197 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 13. Annual Administrative Assessment. It is hereby declared that this legislative body proposes to levy an annual assessment pursuant to Section 10204 of the Streets and Highways Code of the 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 assessments or from the administration or registration of any associated bonds and their related funds. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the , 2003 by the following vote, to wit: City of Carlsbad on the 15th day of JULY AYES: Council Members Lewis, Finnila, Kulchin, Hall, Packard NOES: None None 4BSENT: ' ATTEST: LORRAINE M. WOOa City Clerk (SEAL) Page 6 of 6 of Resolution No. 2003-197 Y City of Carlsbad -Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 36 Part VI A. Description of Improvements The Assessment Law provides for the legislative body of any municipality to finance certain capital facilities and services within or along its streets or any public way or easement. The following is a list of proposed improvements as allowed under the Assessment Law to be acquired, installed, maintained, repaired or improved under the provisions of the Assessment Law. For the general location of the improvements to be acquired reference is hereby made to the Plans and Specifications described in Part I of this report. The proposed improvements include the following: Improvement No. 1. College Boulevard from Cannon Road to Carlsbad Village Drive College Boulevard/Cannon Road connection as follows: College Boulevard from south end of Calavera Hills II development to Carlsbad Village Drive (Reach C, full width) - full width grading to major arterial standards including slopes not adjacent to development and any surcharge (but not to include grading outside of the right-of-way in future developed areas), additional grading and improvements for meandering regional trail for bicycles and pedestrians in a public trail easement which is a part of the City-wide trail system, asphalt pavement to major arterial standard width on each side of a raised improved (hardscaping, landscaping and irrigation) median, modification of existing median north of Carlsbad Village Drive to provide left turn pocket, non-master plan storm drain facilities ( which excludes any Drainage Master Plan facilities subject to reimbursement from Local Drainage Area Fees), curb, gutter and sidewalk, bus turnout and furniture, street lighting, median curb, sewer, water and reclaimed water lines and appurtenances (excluding any portion of such costs reimbursable from sewer andlor water connection fees), erosion control landscaping and irrigation (iocated within an easement granted to the City), traffic signal at Carlsbad Village Drive and College Boulevard (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees), striping and signage, protection and relocation of existing utilities as required, dry utilities' within the right-of-way, as well as environmental mitigation costs' and incidental costs of construction as described in the Acquisition/Financing Agreement. College Boulevard from Cannon Road to south end of Calavera Hills II development (Reach B center lanes) - full width grading to major arterial standards including slopes not adjacent to development and any surcharge (but not to include grading outside of the right-of-way in future developed areas), additional grading for meandering regional trail for bicycles and pedestrians in a public trail easement which is a part of the City-wide trail system, 18 feet of pavement on each side of a raised unimproved (with an AC cap) median, non-master plan storm drain facilities (which excludes any Drainage Master Plan facilities subject to reimbursement from Local Drainage Area Fees), median curb, sewer, water and reclaimed water lines and appurtenances (excluding any portion of such costs reimbursable from sewer andlor water connection fees), erosion control landscaping and irrigation (located within an easement granted to the City), transition to full improvements at inlet locations, southerly boundary of Calavera Hills and Cannon Road intersection including curb, gutter and additional paving, traffic signal at Cannon Road and College Boulevard (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees), striping and signage, protection and relocation of existing utilities as required, as well as environmental mitigation costs' and incidental costs of construction as described in the Acquisition/Financing Agreement. - "" I . ~ -- I I__ _--_I- _I - I --_I^ VI E-Prepared by Galen N. Peterson June 25, 2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 37 Detention Basin BJB (partial) - grading and construction of a 49 acre-foot Drainage Master Planned storm water retention basin, access road, and outlet structure (excluding any portion of the costs subject to reimbursement from Local Drainage Area Fees), as well as environmental mitigation costs and incidental costs of construction as described in the Acquisition/Financing Agreement. Improvement No. 2. College Boulevard from Cannon Road to south end of Calavera Hills II development (Reach 6 frontage improvements) - demolition of interim improvements, 12.5 feet 3f pavement (outside lanes), curb and gutter, sidewalk, meandering trail, street lighting, median hardscape, landscape and irrigation, dry utilities’ within the right-of-way, striping and signage, traffic signals (excluding those portions reimbursed from Traffic Impact Fees and Public ’acilities Fees) and appurtenances, sound walls, arterial road setback landscaping and lrriaation. as well as environmental mitiaation costs’ and incidental costs of construction as jescribed in the Acquisition/Financing igreement. Improvement No. 3. Cannon Road from El Camino Real to College Boulevard (Reach 3 , ’rontage improvements) - demolition of interim improvements, 12.5 feet of pavement (outside anes), curb and gutter, sidewalk, meandering trail, street lighting, median landscape and rrigation and median paving, dry utilities’ within the right-of-way, striping and signage, traffic signals (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities -ees) and appurtenances, sound walls, arterial road setback landscaping and irrigation, as well as environmental mitigation costs’ and incidental costs of construction as described in the 4cquisition/Financing Agreement. Notes: - 1/ The aggregate amount of the cost of dry utilities or mitigation land which are to be owned by an entity other than a “political subdivision” as such term is used in the Internal Revenue Code and regulations of the Internal Revenue Service which may be financed from the proceeds of tax exempt bonds issued for the Financing District shall be limited to 5% of the proceeds of such bonds which are eligible to be used to finance the acquisition of the Improvements. vl E-Prepared by Galen N. Peterson June 25,2003 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2003-198 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, PASSING UPON AND GIVING PRELIMINARY APPROVAL TO THE REPORT OF THE ASSESSMENT ENGINEER, SETTING THE TIME AND PLACE FOR A PUBLIC HEARING AND ORDERING ,THE INITIATION OF ASSESSMENT lCOLLEGE BOULEVARD AND CANNON ROAD EAST). BALLOT PROCEDURES FOR ASSESSMENT DISTRICT NO. 2003-01 WHEREAS, the City Council of the City of Carlsbad, California, has instituted proceedings to finance the cost of the acquisition or construction of certain public improvements and appurtenances pursuant to the 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 special assessment district known and jesignated as Assessment District No. 2003-01 (College Boulevard and Cannon Road East) :the “Assessment District”); and, WHEREAS, there has been prepared and filed with this legislative body a Report of the 4ssessment Engineer (the “Report”) as provided for in and required by the Improvement Act, :he Special Assessment Investigation, Lintitation and Majority Protest Act of 1931 (Division 4 of .he Streets and Highways Code) (the “Investigations Act”), Article XlllD of the Constitution of the State of California (“Article XlllD”) and the Proposition 21 8 omnibus Implementation Act :Government Code Section 53750 and following) (the “Implementation Act”) (the Improvement kt, the Investigations Act, Article XlllD and the Implementation Act are referred to herein :ollectively as the “Assessment Law”) and the Report has been presented to this legislative body ’or its consideration; and, WHEREAS, a Resolution of Intention declaring the intention of the City Council to finance he cost of the construction of the subject improvements through the levy of assessments within he Assessment District was previously adopted by such City Council; and the Report as now resented shall stand as the Report for the purpose of subsequent proceedings hereunder. I/ /I Il t 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, be it resolved by the City Council of the City of Carlsbad as follows: SECTION 1. SECTION 2. The above recitals are all true and correct. The Report referred to herein above is adopted, passed upon, and xeliminarily approved, as follows: A. The plans and specifications for the improvements proposed to be acquired 3r constructed, as contained in the Report, are hereby preliminarily approved and adopted; B. The Assessment Engineer's estimate of the itemized and total costs and 2xpenses of the acquisition or construction of the improvements and of the incidental expenses in Zonnection therewith contained in the Report including that portion of such costs and expenses -epresenting the special benefit to be conferred by such improvements on those parcels within the ksessment District, and each of them are hereby preliminarily approved and adopted; C. The diagram showing the Assessment District referred to and described in such Resolution of Intention, and also the boundaries and dimensions of the respective ubdivisions of land within such Assessment District, as the same existed at the time of the lassage of such Resolution of Intention, each of which subdivisions have been given a separate lumber upon such diagram, as contained in the Report, is hereby preliminarily approved and 3dopted; D. The proposed assessment upon the several subdivisions of land in the lssessment District, in proportion to the estimated special benefits to be conferred on such jubdivisions, respectively, by the improvements to be acquired or constructed, and of the ncidental expenses thereof, as contained in the Report, are hereby preliminarily approved and adopted; E. A description of the improvements to be acquired or constructed contained n the Report are hereby preliminarily approved and adopted. SECTION 3. The Report shall stand as the Assessment Engineer's Report for the Iurpose of all subsequent proceedings undertaken pursuant to the Resolution of Intention. I! I/ ? Page 2 of 4 of Resolution No. 2003-198 1'; 1 2 3 4 5 6 7 8 9 10 I1 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 4. NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING TO CONSIDER PROTESTS TO THE PROPOSED ASSESSMENTS IS HEREBY SCHEDULED TO BE HELD AT THE CITY COUNCIL MEETING ROOM OF THE CITY OF CARLSBAD LOCATED AT 1200 CARLSBAD VILLAGE DRIVE, CARLSBAD, CALIFORNIA 92008 ON SEPTEMBER 16, 2003 AT 6:OO P.M. RIGHT TO SUBMIT ASSESSMENT BALLOT PURSUANT TO THE PROVISIONS OF THE ASSESSMENT LAW, THE RECORD 3WNER OF EACH PARCEL PROPOSED TO BE ASSESSED HAS THE RIGHT TO SUBMIT AN 4SSESSMENT BALLOT IN FAVOR OF OR IN OPPOSITION TO THE ASSESSMENT DROPOSED TO BE LEVIED ON SUCH PARCEL. ASSESSMENT BALLOTS WILL BE MAILED TO THE RECORD OWNER OF EACH 'ARCEL LOCATED WITHIN THE ASSESSMENT DISTRICT AND PROPOSED TO BE SUBJECT TO AN ASSESSMENT. EACH SUCH OWNER MAY COMPLETE SUCH 9SSESSMENT BALLOT AND THEREBY INDICATE SUCH OWNER'S SUPPORT FOR OR 3PPOSITION TO THE PROPOSED ASSESSMENT. ALL SUCH ASSESSMENT BALLOTS MUST BE RECEIVED BY THE CITY CLERK AT THE FOLLOWING ADDRESS AT OR BEFORE THE TIME SET FOR THE CLOSE OF TH6 PUBLIC HEARING: CITY CLERK CITY OF CARLSBAD 1200 CARLSBAD VILLAGE DRIVE CARLSBAD, CALIFORNIA 92008 AN ASSESSMENT BALLOT RECEIVED AFTER THE CLOSE OF THE PUBLIC -1EARING WILL NOT BE TABULATED EVEN THOUGH THE POSTMARK ON THE ENVELOPE rRANSMlTTlNG THE ASSESSMENT BALLOT IS DATED ON OR BEFORE THE DATE OF THE WBLIC HEARING. AT THE CONCLUSION OF THE PUBLIC HEARING, THE CITY COUNCIL SHALL :AUSE THE TABULATION, PURSUANT TO GOVERNMENT CODE SECTION 53753, OF THE SSESSMENT BALLOTS TIMELY RECEIVED. IF A MAJORITY PROTEST, AS DESCRIBED !ELOW, EXISTS THE CITY COUNCIL SHALL NOT IMPOSE AN ASSESSMENT WITHIN THE GSESSMENT DISTRICT. A MAJORITY PROTEST EXISTS IF THE ASSESSMENT BALLOTS C' 1 Page 3 of 4 of Resolution No. 2003-198 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 SUBMITTED, AND NOT WITHDRAWN, Ik OPPOSITION TO THE PROPOSED ASSESSMENT EXCEED THE ASSESSMENT BALLOTS SUBMITTED, AND NOT WITHDRAWN, IN FAVOR OF SUCH ASSESSMENT. IN TABULATING THE ASSESSMENT BALLOTS, EACH ASSESSMENT BALLOT SHALL BE WEIGHTED BY THE AMOUNT OF THE PROPOSED ASSESSMENT TO BE IMPOSED UPON THE IDENTIFIED PARCEL FOR WHICH SUCH ASSESSMENT BALLOT NAS SUBMITTED. SECTION 5. The City Clerk is hereby directed to mail or cause to be mailed notice of the >ublic Hearing and the adoption of the Resolution of Intention and of the filing of the Report, .ogether with the assessment ballot materials, to the record owner of each parcel proposed to be assessed. SECTION 6. The City Clerk is hereby further directed to file or cause to be filed a copy of the proposed boundary map in the Office of the County Recorder within fifteen (15) days of the adoption of the proposed boundary map; such boundary map to be in the manner and form as set forth in Division 4.5 of the Streets and Highways Code of the State of California. \ SECTION 7. For purposes of tabulating the assessment ballots for these proceedings as required pursuant to the Assessment Law, the City Council hereby designates the City Clerk to act as the tabulation official to tabulate the assessment ballots submitted. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the Zity of Carlsbad on the day of JULY 4YES: Council Members Lewis, Finnila, Kulchin, Hall, Packard , 2003 by the following vote, to wit: .VOES: None 4BSENT: None ATTEST: (SEAL) Page 4 of 4 of Resolution No. 2003-198 PRELIMINARY ENGINEER’S REPORT FOR ASSESSMENT DISTRICT NO. 2003-01 (COLLEGE BOULEVARD AND CANNON ROAD EAST) CITY OF CARLSBAD SAN DIEGO COUNTY CALIFORNIA =t June 25,2003 Prepared By: Galen N. Peterson, Consulting Engineer San Diego, CA (858) 487-7000 Assess men t District N 0. 2003-0 I (College Boulevard and Cannon Road East) TABLE OF CONTENTS SECTION PAGE I NTRO D U CTI 0 N AND C E RTI FI CAT1 ON S PART I Plans and Specifications 1 PART II Cost Estimates 3 I PART Ill PART IV Annual Administrative Assessment Assessment Roll and Method of Assessment Spread 5 27 PART V Diagram of Assessment District 28 PART VI Description of Improvements and Right-of-way Certificate 36 Appendix A - Resolution of Intention Appendix B - Acquisition/Financing Agreement between City and Calavera Hills II LLC Appendix C - Environmental Certification Appendix D - Property Owners List Appendix E - Detailed Cost Information Appendix F - Detailed Spread Information Appendix G - Agreement between Calavera Hills II LLC and Carlsbad Municipal Water District (CMWD) Appendix H - Assessment Engineer’s Qualifications City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page I AGENCY: CITY OF CARLSBAD PROJECT: ASSESSMENT DISTRICT NO. 2003-01 (College Boulevard and Cannon Road East) TO: C ITY C OU N C I L ENGINEER’S “REPORT” PURSUANT TO THE PROVISIONS OF SECTION 10204 OF THE STREETS AND HIGHWAYS CODE Pursuant to the provisions of the Municipal Improvement Act of 191 3, being Division I2 of the Streets and Highways Code of the State of California (the “Improvement Act”), Article XlllD of the Constitution of the State of California (“Article XlllD”), and Proposition 21 8 Omnibus Implementation Act (Section 53750 and following of the Government Code) (the “Implementation Act”) (the Improvement Act, Article XIIID, and the Implementation Act are collectively referred to as the “Assessment Law”), and in accordance with City of Carlsbad Policy 33, and the Resolution of Intention, being Resolution No. 2003- adopted by the City Council of the City of Carlsbad, State of California, in connection with the proceedings for; Assessment District No. 2003-01 (College Boulevard and Cannon Road East), (hereinafter referred to as the “Assessment District”), I, GALEN N. PETERSON, P.E., Registered Professional Engineer, the duly appointed Assessment Engineer, submits herewith the “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 nature, location and extent of the proposed improvements to be constructed or acquired. The plans and specifications are referenced herein and made a part hereof. Said plans and specifications are on file in the Office of the Superintendent of Streets /City Engineer. Part II This part contains an estimate of the costs of the improvements, including capitalized interest, incidental costs and expenses in connection therewith as set forth in Exhibit 1 attached hereto. City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page ii Part 111 This part consists of a proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in proportion to the estimated special benefits to be received by such subdivisions from said improvements, as set forth upon the assessment roll filed herewith and made a part hereof. Part IV This part contains the proposed maximum annual administrative assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the City of Carlsbad, and not otherwise reimbursed, resulting from the administration and collection of assessments or from the administration and registration of any associated bonds and reserve or other related funds. Part V This part contains a map showing the boundaries of the Assessment District, and a diagram showing the Assessment District, the boundaries and the dimensions of the subdivisions of land within said Assessment District, as the same existed at the time of the passage of the Resolution of Intention, is filed herewith and made a part hereof, and a part of the Assessment District Report. Part VI This part consists of a detailed description of the improvements to be funded by the Assessment District and a right-of-way certificate certifying the status of the right-of-way accepted or to be accepted by the City of Carlsbad. This Report does not purport to contain all the terms associated with the acquisition, construction and financing of the improvements in the Assessment District. Some of the terms associated with the acquisition, construction and financing of the improvements in the Assessment District are set forth in an agreement dated December 11, 2002, between the City of Carlsbad and Calavera Hills II LLC, A California limited liability company, as it may be amended from time to time (the “Acquisition / Financing Agreement”) (see Appendix B). To the extent that there are inconsistencies between the terms in the Acquisition / Financing Agreement and the terms in this Report, the terms in this Report shall prevail. City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page iii This Report is submitted on the 25 day of 2003. ires 6/30/2005) ASSESSMENT ENGINEER CITY OF CARLSBAD COUNTY OF SAN DIEGO STATE OF CALIFORNIA Preliminary approval by the CITY COUNCIL of the CITY OF CARLSBAD, SAN DIEGO COUNTY, CALIFORNIA, on the day of 200-. LORRAINE M. WOOD, CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA Final approval by the CITY COUNCIL of the CITY OF CARLSBAD, SAN DIEGO COUNTY, CALIFORNIA, on the 200-. day of LORRAINE M. WOOD, CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 1 Part I Plans and Specifications The plans and specifications for the improvements to be constructed and/or acquired which generally include grading, roadway, utility relocation, landscape and irrigation, storm drainage facilities, domestic potable water system, recycled water system, sewer system, dry utilities and other ancillary improvements for the area described as Assessment District 2003-01 (College Boulevard and Cannon Road East) are referenced herein and incorporated as if attached and a part of this Report. Said plans include College Boulevard from a point located 336-feet north of Carlsbad Village Drive southerly to the intersection with Cannon Road and Cannon Road from El Camino Real easterly to the intersection with College Boulevard as shown on Drawing No. 390-9 consisting of 93 sheets and signed by the City of Carlsbad on November 26, 2002 and Drawing No. 300-9A consisting of 80 sheets and signed by the City of Carlsbad on October 22, 2002. Said plans also include Storm Water Basin BJB located east of College Boulevard and north of the future extension of Cannon Road and Storm Drain Line BJA located in College Boulevard. ’ The plans and specifications for the improvements are on file in the office of the Superintendent of StreetslCity Engineer. Prior to acquiring the improvements, as- built drawings will be reviewed for consistency with the plans upon which this report was based. A description of the improvements to be constructed and/or acquired by the Assessment District is included in Part VI - Description of Improvements of this Report. All improvements to be acquired shall be constructed in accordance with the standards of the City of Carlsbad, Carlsbad Municipal Water District and other agencies as appropriate. The payment of the purchase price for the acquisition of any improvement will be governed by the terms and conditions of the Acquisition/Financing Agreement. The proposed improvements include: 1. Roadway Improvements. The construction and/or acquisition of roadways generally consisting of the grading and paving of streets, installation of driveways, curbs, gutters, sidewalks, trails, medians, parkways, street lights and conduits, signing and striping, storm drain, planting, mitigation easement acquisition, environmental mitigation, landscape and irrigation of medians, parkways, and adjacent slopes, traffic control and utility relocation including relocation of utilities impacted by the grading and other appurtenant improvements. June 25,2003 7; vl E-Prepared by Galen N. Peterson ”, City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 2 3 -. -3 3. 4. 5. 6. Domestic Water Improvements. The construction and/or acquisition of a backbone domestic water distribution system within the public right-of-way including other appurtenances necessary to serve the Assessment District area. Sewer Improvements. The construction and/or acquisition of sewer mains, manholes, and appurtenances within the public right-of-way to serve the Assessment District area. Recycled Water Improvements. The construction and/or acquisition of a recycled water distribution system, and appurtenances for an irrigation system within the public right-of-way to provide irrigation water to (i) medians, parkways, adjacent roadway slopes (in and adjacent to the public streets and public easements) and trailhead easements (ii) landscaped areas of the wetland mitigation (iii) landscaped slopes and recreation lots within the home owners association open space areas and (iv) landscaped areas of Storm Water Basin BJB. Dry Utility Improvements. The construction and/or acquisition of dry utilities which are non-refundable or non-reimbursable by the utility agency and which are located within the right-of-way in an amount which does not exceed five percent (5%) of the amount of the bond issue. Such 5% limit includes a proportionate share of the Costs of Formation and Issuance, Capitalized Interest, Bond Discount and Bond Reserve, all as identified in Exhibit 1 below. Storm Water Basin BJB and Storm Drain Line BJA Improvements. The construction and/or acquisition of a storm water detention basin including storm drain lines and other appurtenances necessary to serve the Assessment District area. The above improvements are more specifically described in Part VI of this Report. vl E-Prepared by Galen N. Peterson , -> I ,, # c’ (f June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 3 Part II Cost Estimates The following table provides a summary of costs for constructing and/or acquiring the improvements as identified in the description of improvements found in Part VI. The Estimate of Costs includes construction costs, mitigation costs, design costs, administration costs, incidentals expenses, financing costs, developer contributions and the total amount to be assessed. Details of the costs provided by Calavera Hills II LLC (the “Developer”) are shown in Appendix E, Detailed Cost Information. The cost estimate divides College Boulevard into two reaches B and C. Reach B is located from Cannon Road northerly to the southern boundary of the Calavera Hills II development. Reach C is located from the southern boundary of the Calavera Hills II development northerly to Carlsbad Village Drive. The cost estimate further divides College Boulevard and Cannon Road into two components. The first component is labeled the “Core Improvements” which include full width grading of the roadway, paved road surface for two lanes (18-foot paved section on each side of the median for a total of 36 feet of paved section), transition pavement section at major intersections, median curbs, outside asphalt berms, temporary drainage in the parkway including asphalt drainage swales and other drainage improvements which are necessary to serve the center lanes and/or protect the roadway grading. In addition, the improvements include the cost for full mitigation of the environmental impacts of the construction of the improvements noted above. The soft costs included are design, contract administration, construction inspection, construction engineering, mitigation monitoring and land acquisition. The second component is labeled “Frontage Improvements” which includes all other improvements necessary to complete College Boulevard and Cannon Road to four lane major arterial roadway standards. These remaining frontage improvements would include paving beyond the 36-foot paved section, outside curb and gutters, sidewalks, street lights, any frontage landscaping and irrigation, median landscaping and irrigation, median hardscape, sewer, water, recycled water, franchise dry utilities, traffic signals and any other frontage improvements, which would normally be required of the adjacent development projects. The “Basin BJB and Storm Drain BJA Improvements” include all of the facilities necessary for a storm water detention basin and the storm drain line draining into the basin, however the cost estimate excludes those certain drainage facilities which are included in the City’s Drainage Fee Program. These excluded costs have been detailed in Table 3 of Appendix E of this Report. See Exhibit 1, on the following page, for a summary of the cost estimate. VI E-Prepared by Galen N. Peterson 0 -7 June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 4 EXHIBIT 1 CITY OF CARLSBAD (COLLEGE BOULEVARD AND CANNON ROAD EAST) ASSESSMENT DISTRICT NO. 2003-01 COST ESTIMATE AND TOTAL BOND SIZE Preliminary Confirmed Assessment Assessment 1, Construction Cost of Improvements (See Table 5) (1) a. College Blvd, Reach C, Core Improvements $ 2,100,491 b. College Blvd, Reach C, Frontage Improvements $ 4,386,971 c. College Blvd, Reach B, Core Improvements $ 3,532,465 d. College Blvd, Reach B, Frontage Improvements $ 1,326,968 e. Cannon Road, Reach 3, Core Improvements $ 5,543,442 f. Cannon Road, Reach 3, Frontage Improvements $ 3,072,711 g. Basin BJB and Storm Drain Line BJA lmprovments $ 1,317,103 Subtotal of Construction $ 21,280,152 (494.580) Adjustment for Dry Utilities in excess of 5% of Bond Amount $ Subtotal of Adjusted Construction $ $ 2. Land & Right-of-way (included in item 1) 3. Cost of Formation and Issuance (first series of bonds) a. b. d. e. f. 9. h. J. k. I. m C. I. City Administration Assessment Engineering Bidding Procedures and Audit of Acquisition Costs Bond Counsel Appraisal Absorption Consultant Financial Advisor Official StatemenffBond Printing Fiscal/Paying Agent Underwriters Counsel First 2 years additional Annual Administration Cost Previous City funded Engineering Costs 20,785,572 100,000 65,000 90,000 68,000 40,000 25,000 50,000 30,000 15,000 35,000 40,000 170,963 Contingency and cost of issuance for other bond series $ 500.000 Total Incidentals $ 1,228,963 SUBTOTAL $ 22,014,535 5. Less Special Benefit Contributions (2) $ (2.078.998) SUBTOTAL $ 19,935,537 7. Less Interest Earned $ 8. Capitalized Interest (1 yr @ 7% interest) $ 1,696,641 9. Financing Costs Bond Discount (1.75%) $ 424,160 GRAND TOTAL $ 24,237,735 4. Less General Benefit Contributions (subtracted within item 1) $ Bond Reserve (9%) $ 2,181,396 Notes: (1) Net of General Benefit Contributions (2) includes contribution for public, non-profit, HOA parcels, Village Y and parcels located outside of the assessment district VI E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 5 Part 111 Assessment Roll and Method of Assessment Spread On , 200- the City Council of the City Of Carlsbad, State of California, did, pursuant to the provisions of the Municipal Improvement Act of 1913, (Division 12 of the Streets and Highways Code of the State of California), Article XlllD of the Constitution of the State of California, and the Proposition 21 8 Omnibus Implementation Act (Section 53750 and following of the Government Code) (collectively, the "Assessment Law"), and in accordance with City of Carlsbad Policy 33, adopt its Resolution of Intention No. 2003- I for acquisition or construction of certain public improvements, together with appurtenances and appurtenant work in connection therewith, in a special assessment district known and designated as: ASSESSMENT DISTRICT NO. 2003-01 (College Boulevard and Cannon Road East) (hereinafter referred to as the "Assessment District"); and WHEREAS, said Resolution of Intention, as required by the Assessment Law, did direct the Assessment Engineer to make and file a "Report", consisting of the following as required by Section 10204 of the Act: a. Plans and specifications for the improvements proposed to be acquired or constructed in sufficient detail to show or describe the general nature, location and extent of the improvements; b. A general description of the improvements proposed to be acquired and any property necessary or convenient for the operation of such improvements; c. An estimate of the cost of the improvements and the costs of lands, right- of-way, easements, and incidental expense in connection with the improvements; d. Assessment Diagram showing the Assessment District exterior boundaries, the boundaries of any benefit areas within the district and the lines and dimensions of each parcel within the district and the benefit areas therein existing at the time of the adoption of the resolution of Intention; ~ vl E-Prepared by Gaien N. Peterson June 25,2003 '-'I f?, <p:' ; City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 6 e. A proposed assessment of the costs and expenses of the improvements levied upon the parcels within the boundaries of the Assessment District in proportion to the estimated special benefits to be received by each subdivision of property from the improvements; f. The proposed maximum annual assessment to be levied upon each subdivision or parcel of land within the Assessment District specially benefiting from the improvements and for which the assessment is unpaid to pay the costs incurred by the City and not otherwise reimbursed resulting from the administration and collection of assessments or from the administration and registration of any associated bonds and reserve or other related funds. For particulars, reference is made to the Resolution of Intention as previously adopted a copy of which is included in the Appendix "A" of this Report. NOW, THEREFORE, I, GALEN N. PETERSON, pursuant to the Assessment Law, do hereby submit the following: 1. 2. 3. 4. Pursuant to the provisions of Assessment Law and the Resolution of Intention, I have assessed the costs and expenses of the acquisition or construction of the improvements 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 from the improvements. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto. As required by Assessment Law, a Diagram is attached, showing the Assessment District and the benefit areas therein, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District and the benefit areas therein 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. 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. 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 1915"), to represent all unpaid assessments, which bonds shall be issued not to exceed the legal maximum term as authorized by law, i.e., THIRTY-NINE (39) YEARS aG vl E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 7 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 the Assessment Law and by further direction and order of the legislative body, I hereby recommend the following Assessment to cover the costs and expenses of the acquisition or construction of the improvements for the Assessment District based on the costs and expenses as set forth below: As Preliminarily As Finally Approved Approved and Confirmed Construction and Incidental Costs less General Benefit $ 20,785,572 Formation and Issuance Costs $ 1,228,963 Less Special Benefit Contributions $ (2,078,998) Less Interest Earned $ - Capitalized Interest and Financing Costs $ 4,302.198 Total $ 24,237,735 Subtotal Benefit Area No. 1 (2) $ 13,018,725 Subtotal Benefit Area No. 2 (2) $ 11,219,010 Total Assessment (2) $ 24,237,735 For particulars as to the individual assessments and their descriptions, reference is made to Exhibit "A' attached hereto. The general benefit not assessed is associated with a portion of College Boulevard and Cannon Road as discussed in Exhibit A. An amount equal to such general benefit will be contributed by the Developer and not included in the purchase price for improvements to be acquired and not reimbursed from bond proceeds. Included in the total assessment are certain projected individual assessments representing the special benefit from the improvements to be conferred on public parcels (such as the community facility and community recreation park), non-profit organizations (such as open space parcels) and home owner association parcels to be created by the future subdivision of the existing parcels within the Assessment District. Assessments apportioned to such parcels upon the creation thereof will be contributed by the Developer either as a reduced purchase price for improvements be acquired and not reimbursed from bond proceeds or, if the purchase price of creation of any such parcel, by contribution equal to the amount necessary to pay off any such all improvements has been paid at the time VIE-Prepared by Galen N. Peterson ~ June 25,2003 City of Carlsbad -Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 8 Summary of Developer Contributions to Off-Set General Benefit and Special Benefit Assessments Total - General Benefit College Boulevard, Reach C, Street $ 194,761 Improvements College Boulevard, Reach B, Street $ 83,809 Improvements Cannon Road, Reach 3, Street $ 197,901 Improvements Total General Benefit $ 476,471 Special Benefit - Parcels Owned bv Public Calavera Hills II, Robertson Ranch Parcels located Auencies. Non-Profit Orqanizations. Home Benefit Area East, Benefit outside of the Owners Association and Darcels located No. 1 Area No. 2 Assessment inside or outside the Assessment District fl boundary District Two Community Facilities $ 365,467 $ $ Community Recreation $ -$ 6,217 $ $ -$ -$ 147,692 $ Public Park Elementary School $ -$ -$ 397,712 $ RV Storage (Robertson) $ -$ 14.625 $ -$ Home Owners Association (HOA) $ 40,616 $ 556 $ -$ Total 365,467 6,217 147,692 397,712 14,625 41,173 Village Y (Assessment No. 9) inside A.D. $ 1.106,112 $ $ $ 1,106.1 12 Total Special Benefit (I) $ 1,512,195 $ 21,399 $ 545,404 $ 2,078,998 $ 2,555,469 Total Developer Contributions (I) Notes: (1) Additional future parcels within the Assessment District which will be owned by Public Agencies, Non-Profit Organizations or Home Owners Associations are identified in Appendix F and the special benefits of these parcels will be apportioned at the time of subsequent subdivision of existing parcels. The assessments for these future parcels will be contributed by the Developer either as a reduced purchase price for improvements to be acquired and not reimbursed from bond proceeds or, if the purchase price for all improvements has been paid at the time of creation of any such parcel, by a cash contribution equal to the amount necessary to pay off any such assessment. An amount equal to the special benefit of parcels located outside of the Assessment District will be contributed by the Developer as a reduced purchase price for the improvements to be acquired subject to reimbursement from the owner(s) of such parcels in accordance with a reimbursement agreement between the City and Developer. VI E-Prepared by Galen N. Peterson -? 2 June 25,2003 4s City of Carlsbad -Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 9 6. The Method and Formula of SDread of Assessment is as set forth in Exhibit "A", which is attached hereto, referenced and so incorporated Assessment Number 1 2 3 4 5 6 7 8 9 10 Exhibit 2 Assessment Roll Land Use As Prelim inari I y As Finally Single Family Attached Development, Village E-I Community Facility, Village H (Paid Off) Single Family Development, Village K Single Family Development, Village L-2 Single Family Development, Village R Single Family Attached Development, Village U Single Family Development, Village W Single Family Development, Village X Mulit-Family Development/Community Facilities, Village Y (Paid Off) Robertson Ranch Development, Mixed Use Total Approved 1,978,746 1,455,735 252,112 85,927 2,929,422 3,234,728 3,082,055 11,219,010 24,237,735 Approved and Confirmed vl E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 10 EXHIBIT A METHOD AND FORMULA OF ASSESSMENT SPREAD Since the improvements are to be funded by the levying of assessments, the Assessment Law requires that assessments be based on the special benefit that the properties receive from the improvements. In addition, the Assessment Law provides that a parcel's assessment may not exceed the reasonable cost of the proportional special benefit conferred on that parcel. Further, only special benefits are assessable and the local agency levying the assessment must separate the general benefits from the special benefits. All publicly owned property must be assessed if it specially benefits from the improvements. The Assessment Law does not specify the method or formula that should be used to apportion the costs to properties in any special assessment district proceedings. The responsibility for recommending an apportionment of the costs to properties, which specially benefit from the improvements rests with the Assessment Engineer, who is appointed for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. In order to apportion the assessments to each parcel in direct proportion with the special benefit which it will receive from the improvements, an in-depth analysis has been completed and is used as the basis for apportioning costs to each property within the Assessment District as explained below. Based upon an analysis of the special benefit to be received by each parcel from the improvements, the Assessment Engineer recommends the apportionment of costs as outlined herein. The final authority and action rests with the City Council after hearing all testimony and evidence presented at a public hearing, and the tabulation of the assessment ballots previously mailed to all record owners of property within the Assessment District. Upon the conclusion of the public hearing, the City Council must make the final determination whether or not the assessment spread has been made in direct proportion to the special benefits to be received by each parcel within the Assessment District. Assessment ballot tabulation will be finalized at that time and, if a majority of the assessment ballots received prior to the close of the public hearing weighted by assessment amount are not opposed to the levy of the assessments, then the City Council may confirm the levy of the assessments. The following sections define and explain the special benefits and general benefits, and set forth the methodology used to apportion the costs of the improvements providing special benefits to each parcel, and confirm that the assessments are reasonable and justified. -.- "11~ TU vl E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad -Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 11 The Method of Apportionment The Assessment District improvements have been assigned into seven benefit components; roadway, potable water, recycled water, sewer, dry utilities, Storm Water Basin BJB and Storm Drain Line BJA, and incidental expenses. Roadway improvement costs are spread on vehicle average daily trip (ADT) generation. Potable water, sewer and dry utility costs are spread on an equivalent dwelling unit (EDU) basis. Recycled water costs are spread to the roadway and specific parcels based on the amount of recycled water used for the irrigation of each roadway and specific parcel. Storm Water Basin BJB and Storm Drain Line BJA costs are spread to parcels which drain into the basin based on assessment units. The incidental expenses have been based on either the actual cost to each component of the improvements or if the incidental costs apply to all such components then to the prorated construction cost of each such component. Because some of the assessor parcel boundaries do not coincide with the Village Planning Areas, some initial assessments will be placed in aggregate on multiple assessor parcels until final maps are recorded and the new assessor parcels coincide with the Village Planning Areas as applicable. The procedure of identifying and apportioning special benefit to the land uses and parcels has been organized as follows: A. Identification of Benefit Components A-I Roadway Core Improvements A-2 Roadway Frontage Improvements A-3 Backbone Potable Water and Sewer A4 Backbone Recycled Water A-5 Backbone Dry Utilities A-6 Storm Water Basin BJB and Storm Drain Line BJA A-7 Incidental Expenses vl E-Prepared by Galen N. Peterson 3s June 25, 2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 12 B. Special Benefits C. General Benefits D. Proportioning Special Benefits D-I Land Use Categories D-2 Proportionate Special Benefit of Roadway Improvements D-3 Proportionate Special Benefit of Utility Improvements D-4 Proportionate Special Benefit of Storm Water Basin BJB and Storm Drain BJA Improvements D-5 Proportioning Formation, Issuance and Financing Costs E. Proclamations E-I Assessments Equal to or Less Than the Proportional Special Benefits E-2 Reasonableness and Justification of Assessments E-3 Future Apportionment A. IDENTIFICATION OF BENEFIT COMPONENTS The improvements to be acquired or constructed by the City from the proceeds of bonds issued for each benefit area of the Assessment District are necessary for development of the Assessment District parcels and are required by the Calavera Hills II and by the Robertson Ranch Master Plans and the conditions of development as set forth in the land use entitlements approved by the City for each benefit area. Without the improvements, the parcels within the Assessment District cannot be developed to their planned ultimate uses pursuant to such land use entitlements. It is unfeasible and impractical for the parcels to be utilized to their highest and best use without the backbone roadways, utilities and storm drain basin that will be funded by the Assessment District. A-I Roadway Core Improvement Components The foremost purpose of the Assessment District is to provide financing for the backbone road access so the Assessment District parcels can be developed. The most significant and costly improvement is the work vl E-Prepared by Galen N. Peterson June 25,2003 3L City of Carlsbad -Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 13 associated with the road construction. The road construction has created the need to relocate utilities, re-establish habitat areas, and install landscaping to protect the roadway slopes. The road construction has created the need to construct storm drains to protect the rbadway and to relocate other facilities and provide mitigation areas that would not have otherwise been necessary if the road was not constructed. The road and associated costs have been placed into two roadway improvement components (identified in Part 2 of this Report) for the purpose of defining the roadway costs and apportioning special benefit. The first component is titled “Core Improvements” and the second component is titled “Frontage Improvements” which will be described in the following section A-2. The Core Improvements component includes: College Boulevard Reach C and Reach B, plus Cannon Road Reach 3, full width grading of the roadway, paved road surface for two lanes, transition pavement section at Cannon Road and El Camino Real intersections, other road related improvements, relocation of utilities, and establishment of mitigation areas. A percentage of the cost of the backbone recycled water distribution system has been spread in the same manner as the roadway core improvement expenses. This portion of the recycled water system improvements will provide an irrigation water system for the roadway landscaping. A-2 Roadway Frontage Improvement Components The Frontage Improvements component includes: College Boulevard Reach C and Reach B, plus a portion of Cannon Road Reach 3. The Frontage Improvements for College Boulevard Reach B, and a portion of Cannon Road Reach 3 will be constructed at a latter date after the Robertson Ranch final improvement plans have been completed. The Frontage Improvements for Cannon Road Reach 3 do not include the Frontage Improvements on the north side of Cannon Road along the frontage of parcels located outside of the Assessment District boundary in Robertson Ranch West since these Frontage Improvements will be paid by the Developer and not assessed. A percentage of the cost of the backbone recycled water distribution system has been spread in the same manner as the roadway Frontage Improvement expenses. This portion of the recycled water system improvements will provide an irrigation water system for the roadway landscaping. A-3 Backbone Potable Water and Sewer Construction Improvement Components Coincidental to the roadway improvements is the necessity to construct certain backbone utility improvements within the roadway right of way vl E-Prepared by Galen N. Peterson :$ +T June 25,2003 City of Carlsbad -Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 14 concurrently with construction of the roadway improvements. These improvements confer a different special benefit to the properties than the special benefit conferred by the roadway improvements. Therefore potable water and sewer (other than relocated facilities for the roadway costs) have been separated into wet utility components for purposes of defining special benefits and allocating the costs of such components. A4 Backbone Recycled Water Improvement Components Coincidental to the roadway improvements is the necessity to construct certain backbone recycled water improvements within the roadway right of way concurrently with construction of the roadway improvements. A percentage of these improvements confer a different special benefit to the properties than the special benefit conferred by the roadway improvements based on where the recycled water will be used. The recycled water facilities have been separated into a separate component for purposes of defining special benefits and allocating the costs of such components. A-5 Backbone Dry Utilities Improvement Components Coincidental to the roadway improvements is the necessity to construct certain backbone dry utility improvements within the roadway right of way concurrently with construction of the roadway improvements. These improvements confer a different special benefit to the properties than the special benefit conferred by the roadway improvements. Therefore the dry utilities have been separated into a separate component for purposes of defining special benefits and allocating the costs of such components. Ab Storm Water Basin BJB and Storm Drain Line BJA Coincidental to the roadway improvements is the necessity to construct Storm Water Basin BJB, located adjacent to the roadway right of way, and Storm Drain Line BJA, located in College Boulevard, concurrently with construction of the roadway improvements. These improvements confer a different special benefit to the properties than the special benefit conferred by the roadway improvements. Therefore the Storm Water Basin BJB, Storm Drain Line BJA and appurtenances have been separated into a separate component for purposes of defining special benefits and allocating the costs of such components. A-7 Incidental Expense Components In addition to the improvement costs, there are incidental construction administration and Assessment District formation expenses. These costs include, but are not limited to: construction administration, construction supervision, design, testing, surveying, assessment engineering, audit of acquisition costs, financial advisors, appraisals, bond counsel, underwriting, vl E-Prepared by Galen N. Peterson June 25,2003 38 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 15 official statement printing, financing cost and establishment of a bond reserve fund. The costs of the formation of the Assessment District, including the costs of issuance, have been determined to be eligible for inclusion and are included in the Assessment District incidental costs. Some of these costs can be assigned directly to one of the benefit components as shown in Appendix “E”. Other costs that cannot be assigned directly to one of the benefit components have been prorated to each assessment number in accordance with that assessment number’s share of the acquisition or construction cost. B. SPECIAL BENEFITS The purpose of this Assessment District is to fund the construction and acquisition or construction of public improvements required to serve the Assessment District Parcels. Special benefit is received by each parcel within the boundaries of the Assessment District from new roadway access and the availability of utility services that are required and necessary for the properties to develop to their highest and best use in accordance with and as permitted by the approved land use entitlements. The improvements to be constructed and/or acquired by the District accommodate the planned development within the Assessment District area in accordance with the approved land use entitlements. The Calavera Hills II and the Robertson Ranch Master Plan environmental documents and the Tentative Map identify the need for access and utilities, and place conditions upon the parcels within the Assessment District to provide those improvements. The Assessment District Improvements satisfy the conditions of development by providing access and backbone utilities so the projects can support their planned uses. Without the improvements, the parcels within the Assessment District could not be developed to their planned and conditionally approved uses. The special benefit conferred on the parcels within the Assessment District from the proposed improvements include: increased development potential, relief from access constraints, improved accessibility to utilities, fulfillment of development conditions and ensured investment returns. The special benefit to each parcel is such that the parcels will be allowed to gain access to a public street network, be provided with storm water protection and have water, sewer, recycled water and dry utilities readily available, thereby allowing them to develop to their highest potential. Special benefit accrues to each parcel to be subdivided and served by the improvements to be constructed. Since the areas within the Assessment District have not been subdivided into individual lots at this time, the assessments will be placed in aggregate on one or more existing assessor parcels and apportionment of the assessments will take place as final maps record. VI E-Prepared by Galen N. Peterson ‘3 4 June 25,2003 City of Carlsbad -Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 16 C. GENERAL BENEFITS Some public improvements will confer general benefit to properties or the public at large outside the Assessment District. In making an analysis, a review was conducted of the surrounding areas. The review resulted in identifying general benefits that accrued to properties outside the Assessment District. College Boulevard is designated as a major arterial roadway and will be constructed from Carlsbad Village Drive south to connect to Cannon Road. Four lanes are proposed to be constructed. Two lanes are required to serve the estimated volume of traffic generated by the Assessment District parcels. Two center lanes (one in each direction) are required for through traffic originating outside of the Assessment District. The costs associated with the construction and placement of the asphalt and aggregate base for the two center lanes have been determined to be a general benefit and will not be assessed to parcels within the Assessment District. Cannon Road is also designated as a major arterial roadway. Previously, Cannon Road did not exist east of El Camino Real. Four lanes are proposed to be constructed. Two lanes are required to serve the estimated volume of traffic generated by the Assessment District parcels. Two center lanes (one in each direction) are required for through traffic originating outside of the Assessment District. The costs associated with the construction and placement of the asphalt and aggregate base for the two center lanes have been determined to be a general benefit and will not be assessed to parcels within the Assessment District . Based on the estimated roadway construction costs, the cost of the roadway aggregate base and asphalt pavement to provide the two center lanes for both College Boulevard and Cannon Road is approximately $476,471. The grading beneath the two center lanes of each roadway benefits the Assessment District because it provides lateral support to the Assessment District paved lanes. This grading can not be eliminated from the overall roadway grading without constructing retaining walls that would unreasonably increase the Assessment District cost. Therefore all of the College Boulevard and Cannon Road grading provides special benefit to the Assessment District Properties. D-I Land Use Categories The following land use categories are included in the Assessment District: single-family detached and single-family attached residential, apartments (affordable housing), elementary school, public park, community facilities -." -- Lfd vl E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 17 (such as day care facilities), home owners association recreation areas and open space. The non-active and undeveloped open space areas do not receive special benefit from the works of improvements and will not be assessed. Open space areas are those areas that are deeded or perpetually designated in easements. D-2 Proportionate Special Benefit of Roadway Improvements Trip Generation Factors for Roadway Improvements The use of and need for roadway improvements is a function of the number of vehicle trips per day generated by the use of the land served by the streets. Traffic engineers have developed traffic generation factors, which are related to development density and type of land use. Therefore, trip generation is an appropriate basis for apportioning roadway improvements and related costs among the specially benefited parcels. The trip generation factors will be estimated from the July 1998, SANDAG Trip Generation Manual and weighted as explained below. SANDAG categorizes trips as primary, diverted and pass-by. This analysis uses only the primary trip percentages for the non-residential land use categories to avoid double counting of the residential trips. Single Familv Detached Trip Generation The Average Daily Trips (ADT) per detached single-family dwelling is 10 ADT. The Assessment District single-family dwelling product types are similar to the SANDAG study areas. Single Familv Attached Trip Generation The Average Daily Trips per attached dwelling unit or for a condominium unit is 8 ADT. Apartment Affordable Housinq Trip Generation The Average Daily Trips for each affordable housing unit, based on the I998 SANDAG Trip Generation Manual for apartments, is 6 ADT. School Trip Generation The Average Daily Trips for an elementary school is 60 ADT per net acre. The primary trip percentage for an elementary school site is 57%. vl E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 18 Communitv Facilitv Trip Generation The Average Daily Trips rates for a community facility use is equivalent to a day care use, which is permitted in this use category and mentioned as a possible use in the Master Plans. The Average Daily Trips rates for day care use is 80 ADT per 1,000 square feet. The Floor Area Ratio for the day care sites is estimated at 0.1 of building per net land area. Therefore, the 80 ADT per 1,000 square feet is equivalent to approximately 348 ADT per net acre (80 times 43,560/1,000 times 0.1). The primary trip percentage for a day care is 28%. Home Owners Association Recreation Areas Trip Generation The Average Daily Trips generation for the home owner’s association (HOA) recreation areas with parking, which is equivalent to a neighborhood park, is 5 ADT per net acre. In order to avoid double counting the residential trips, the primary trip percentage used for external trips is 25%. This only applies to one of the lots in Village X. Public Park Trip Generation The Average Daily Trips generation for a regional park is 20 ADT per net acre. The primary trip percentage for a regional park is 66%. College Boulevard and Cannon Road, Core Improvements - College Boulevard and Cannon Road Core Improvement roadway costs specially benefit all of the village planning areas in Benefit Area No. 1 and 2 as well as village planning areas 8 and 9 in Robertson Ranch West, located outside of the Assessment District boundary. Therefore, College Boulevard and Cannon Road Core Improvement roadway costs were allocated to the assessment numbers for these village planning areas based on the ADT generation factors. College Boulevard, Reach C, Frontage Improvements - College Boulevard, Reach C, Frontage Improvement roadway costs specially benefit only those villages which front on, or adjoin Reach C. This includes villages E-I, U, W, X and Y. Therefore, College Boulevard, Reach C Frontage Improvement roadway costs were allocated to the assessment numbers for these villages based on the ADT generation factors. College Boulevard, Reach B and Cannon Road, Reach 3, Frontage Improvements - College Boulevard, Reach B and Cannon Road, Reach 3, Frontage Improvement roadway costs specially benefit only those village planning areas which front on, or adjoin Reaches B and 3. This includes village planning areas 10, 1 IA, 1 I B, 14, and 15. Therefore, College Boulevard, Reach B and Cannon Road, Reach 3, Frontage Improvement roadway costs were allocated to the assessment numbers for these village vl E-Prepared by Galen N. Peterson LA * * --I June 25, 2003 ! City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 19 I Single Family Detached planning areas based on the ADT generation factors. Village planning area 8 in Robertson Ranch West was not included since the Developer will construct and pay for these Frontage Improvements at a later date. 550 gallons / day D-3 Proportionate Special Benefit of Utility Improvements The most pertinent and reasonable utility improvement special benefit variable is average daily demand. The detached single family home will be the basic equivalence for measuring demand to other land use categories. Potable Water and Sewer Water and sewer demand was obtained from the 2002 update of the City of Carlsbad Water Master Plan. A summary of the water and sewer usage is shown below: I Land Use I Potable Water and Sewer Usaqe 1 1 Single Family Attached 1 250 gallons / day I Non Residential I 2,300 gallons / 10,000 SF /day I A single family detached unit has been assigned an equivalent dwelling unit (EDU) weight of 1 .O EDU. By converting the gallons per day to EDU we arrive at the following table: Land Use I Potable Water and Sewer EDU I Single Family Detached I 1.0 EDU / Unit I Single Family Attached I 0.5 EDU / Unit I Non Residential 1 4.2 EDU / 10,000 SF The City of Carlsbad Water Master Plan estimates water demand for a public park as 2.5 acre-foot per acre per year. This translates to 2,230 gallons per acre per day (2.5 x 43,560 x 7.481365). Potable water demand for park is estimated as 10% of the demand for recycled water for irrigation, resulting in 0.4 EDU per acre (0.1 x 2,230/550) of parkland. vl E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad -Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 20 Home owner association (HOA) lots water usage was estimated based on the characteristics of the parcels and their expected land use. The HOA lots are identified in Table 1 of Appendix F. The water and sewer costs were allocated to the appropriate frontage improvements for each reach of the roadway as shown in Table 7 of Appendix F. These allocated costs were then spread only to the assessment numbers that specially benefit from such water and sewer costs as shown in Table 8 of Appendix F and as set forth below: College Boulevard, Reach C, Frontage Improvements -Water costs for College Boulevard, Reach C, Frontage Improvement specially benefit only assessment numbers 1 through 9. The Assessment Diagram identifies a benefit zone for the sewer improvements as Sewer Zone B. Sewer costs for College Boulevard, Reach C, Frontage Improvement specially benefit only assessment numbers 6 through 9, which are located within Sewer Zone B. Therefore, water and sewer costs for College Boulevard, Reach C, Frontage Improvement were allocated only to assessment numbers 1 through 9 based on the applicable EDU factors and further limited for sewer costs to only the area within Sewer Zone B. College Boulevard, Reach B, and Cannon Road, Reach 3 Frontage Improvements - Water and sewer costs for College Boulevard, Reach B, Frontage Improvement specially benefit only assessment number IO. The Assessment Diagram identifies a benefit zone for the sewer improvements as Sewer Zone C. Therefore, College Boulevard, Reach B, Frontage Improvement water and sewer costs were allocated only to assessment number 10 based on the applicable EDU factors and further limited for sewer costs to only the area within Sewer Zone C. vl E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 21 Land Use Category Single Family Single Family Detached Attached Apartment (Affordable Housing ) School Community Facility (Day Care) Homeowners Association Rec Areas Community (Regional) Park Summary of Special Benefit Factors Roadway Improvements Utilities 1 Primary Trip Adjusted I ADT % Applied ’ ADT EDUs 10 I DU - 10IDU 1 .O I DU 8lDU - 81DU 0.5 I DU 6lDU 6lDU 0.5 I DU 60 IAC 57% 34.2 I AC 4.2 I IOksf, 28% 97.4 I AC 4.2 / 1Oksf 4.2 I 1 Oksf and per site - 80 I 1,000 SF 1.25 I AC 5lAC 25% 20 AC 66% 13.2 I AC 0.4 I AC 1. Primary Trips are defined by SANDAG as “one trip directly between origin and primary destination.” Recycled Water The recycled water system located within the public right-of-way will provide irrigation water to (i) medians, parkways, and adjacent roadway slopes (in and adjacent to the public streets and public easements) and trailhead easements (ii) landscaped areas of the wetland mitigation (iii) landscaped slopes and recreation lots within the home owners association open space areas and (iv) landscaped areas of Basin BJB. The recycled water system specially benefits only the four categories stated above. Therefore, the recycled water system costs were allocated only to the irrigated area of these four categories as shown in Table 2 of Appendix F. The percentage of area in each category, determined from the total area in all three categories, was multiplied times the cost of the recycled water system to arrive at the cost to be applied to each category. The resulting recycled water system cost for the first category was added to the cost for the street portion of College Boulevard, Reach C, Frontage Improvements and spread to all of the assessment numbers that specially benefit from that roadway. The resulting recycled water system cost for the second category was added to the cost for the street portion of Core Improvements for College Boulevard, Reaches B and C, and Cannon Road, Reach 3, and VI E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 22 spread to all of the assessment numbers that specially benefit from the street portion of the Core Improvements. The resulting recycled water system cost for the third category was spread to all of the residential units within the homeowners association that specially benefits from the open space areas. The resulting recycled water system cost for fourth category was added to the cost for Basin BJB and Storm Drain BJA and spread to the assessment numbers that benefit from those improvements. Dry Utilities The demand for dry utilities is considered to be similar to the factors used for water and sewer as shown above. The dry utilities costs (limited by the Internal Revenue Service to five percent of the bond issue amount in order for the bonds to qualify for tax-exempt status) were allocated based on EDU factors using the same methodology and the same factors as were used in allocating water and sewer costs. The dry utilities costs were allocated to the appropriate core and frontage improvements for each reach of the roadway as shown in Table 7 of Appendix F. These allocated costs were then spread only to the assessment numbers that specially benefit from such dry utilities costs as shown in Table 8 of Appendix F. D-4 Proportionate Special Benefit of Storm Water Basin BJB and Storm Drain BJA Improvements The Assessment Diagram identifies a benefit zone for the Drainage Basin BJB and Storm Drain BJA improvements. Drainage Zone A includes all of the Assessment District parcels that drain by gravity and therefore benefit from the Basin BJB and Storm Drain BJA improvements. Drainage Zone A includes all of villages R, U and W plus portions of villages K, L-2 and X. The remaining parcels in the Assessment District do not benefit from the Basin BJB and Storm Drain BJA improvements. The measure of benefit for Basin BJB and Storm Drain BJA improvements is an assessment unit, which is equivalent to a single family lot located within Drainage Zone A. Basin BJB and Storm Drain BJA costs benefit only assessment numbers in Drainage Zone A, as shown on the Assessment Diagram. Therefore, Basin BJB and Storm Drain BJA costs were allocated only to assessment numbers 3, 4, 5, 6, 7 and 8 within Drainage Zone A based on the applicable assessment units. There was no assessment for Basin BJB and Storm Drain BJA costs to the remaining assessment numbers. I 4 4 VI E-Prepared by Gaien N. Peterson June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 23 D-5 Proportioning Formation, Issuance and Financing Costs The costs to form this Assessment District, including the costs of issuance, have been determined to be eligible for inclusion in the Assessment District funding. These costs that cannot be assigned directly to any one of the benefit components and therefore have been separated into a separate component for purposes of defining special benefits and allocating costs on a pro-rata basis relative to the improvement costs associated with each parcel as shown in Table 10 of Appendix F. The financing costs (bond discount and bond reserve), including capitalized interest, have also been assessed on a pro-rata basis relative to the improvement costs associated with each parcel. E. PROCLAMATIONS E-I Assessments are equal to or less than the proportional special benefit each parcel receives The special benefit received from the Assessment District improvements exceeds the assessment allocated to each parcel. The improvements provided will increase the value of each parcel by more than the assessment levied upon it. To ensure that the assessments will be equal to or less than the proportional special benefit conferred, a review was made of similar properties in the vicinity. Comparison of recent sales records indicated that the average price per square foot of raw land increased in an amount greater than the costs of the assessments per square foot after backbone roadway and utility improvements were in place. E-2 Reasonableness and Justification of Assessments It is well known and understood by the development community that public infrastructure is required for raw land to develop to its highest and best use. After the passage of Proposition 13 and Assembly Bill 1600, developers and investors realize that they must provide the public infrastructure to support their developments without burdening existing properties. The Assessment District improvements are estimated to add 9% or more value to each parcel's overall value. A review of other developments has shown that this percentage is consistent with the costs of providing backbone access and utilities to raw land in similar developments. Therefore this Assessment levy is reasonable in relationship to the added value the improvements provide to the parcels. E-3 Future Apportionment of Special Benefit Special benefit will accrue to each parcel created by the subdivision of the property within the Assessment District. Since certain existing parcels within vl E-Prepared by Galen N. Peterson IC* k / June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 24 the Assessment District will not, at the time of formation of the Assessment District, have been subdivided into final lots, the initial assessments established at the time of formation of the Assessment District will be placed in the aggregate on the assessors parcels existing at the time of formation of the Assessment District. An assessment levied on a parcel existing at the time of formation of the Assessment District will be apportioned among those parcels created by the subsequent subdivision of such existing parcel. Assessments apportioned to any parcel created by the subdivision of an existing parcel which is to be owned by a public agency (each, a “Public Parcel”) or a non-profit 501 (c)(3) organization (each, a “501 (c)(3) Parcel”) or a home owners association (each, a “HOA Parcel”) must be paid off in full prior to the recordation of the final subdivision map creating such Public Parcel or 501 (c)(3) Parcel or HOA Parcel or contributed by the Developer as a reduced purchase price for improvements to be acquired pursuant to the Acquisition/Financing Agreement. The City shall not provide to the owner or subdivider of such existing parcel a certificate as required by Government Code Section 66493(f) for any subdivision certifying that the City Council has determined that provision has been made for the segregation of the responsibility of each of the proposed new parcels for a portion of the assessment unless payment in full of the assessments apportioned to all Public Parcels, 501 (c)(3) Parcels and HOA Parcels created by such subdivision has been received by the City or otherwise contributed as described above. It is the City of Carlsbad’s policy that final lots that receive similar special benefit also have similar final assessments. If the future subdivision of any planning area does not yield the estimated number of dwelling units, the City reserves the right to require upon application of assessment reapportionment, that a portion of the outstanding assessment be paid by the property owners to ensure that the assessments remain consistent within and between the planning areas as further provided in the Acquisition/Financing Agreement. All reapportionments will be subject to City of Carlsbad policies and procedures. FINDINGS AND DETERMINATIONS OF ASSESSMENT ENGINEER The undersigned, Galen N. Peterson, hereby finds and determine as follows: A. The proportionate special benefit derived by each parcel proposed to be assessed has been determined in relationship to the entirety of the costs of the improvements to be funded from the proceeds of the bonds issued for the Assessment District and the cash collections. vl E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 25 B. No assessment is proposed to be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. C. Only special benefits have been assessed. D. Parcels within the Assessment District that are owned or used by any agency, the State of California or the United States and which receive a special benefit from the improvements have been assessed accordingly. In conclusion, it is my opinion that the assessments for the referenced Assessment District have been spread in direct accordance with the estimated special benefits that each parcel receives from the improvements. R.C.E. No. 18,364\(Expires 06/2005) ASSESSMENT ENGINEER CITY OF CARLSBAD SAN DIEGO COUNTY STATE OF CALIFORNIA vl E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 26 I, LORRAINE M. WOOD, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the day of , 200-. CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA I, LORRAINE M. WOOD, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was preliminarily approved by the City Council of the CITY OF CARLSBAD, CALIFORNIA, on the day of , 200-. CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA I, LORRAINE M. WOOD, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was approved and confirmed by the City Council of said City on the day of 1 200-. CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA I, GLENN PRUIM, Superintendent of Streets / City Engineer of the CITY OF CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the day of ,200-. SUPERINTENDENT OF STREETS /CITY ENGINEER CITY OF CARLSBAD STATE OF CALIFORNIA T .r-j vl E-Prepared by Galen N. Peterson 6 June 25,2003 .& c-c" City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 27 Part IV Ann u a I Ad m i n i stra tive Assess men t A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District specially benefiting from the improvements and for which the assessment is unpaid to pay for necessary costs and expenses incurred by the City of Carlsbad, and not otherwise reimbursed, resulting from the administration and collection of assessments and/or from the administration or registration of any associated bonds and reserve or other related funds. This maximum assessment hereinafter set forth is authorized pursuant to the provisions of Section 10204(f) of the Streets and Highways Code, and said maximum assessment shall not exceed five percent (5.0%) of the annual assessment per individual assessment parcel per year. The annual administrative assessment will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the improvements. - r*"- ; i 4i VI E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad -Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 28 Part V Diagram of Assessment District Reduced copies of the Assessment Diagram are shown on the following pages. Full-size copies of the Assessment Diagram are on file in the Office of the City Clerk, of the City of Carlsbad. As required by the Assessment Law, the Assessment Diagram shows the exterior boundaries of the Assessment District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Part Ill. The Assessor's parcel number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of the County of San Diego for the boundaries and dimensions of each parcel of land. vl E-Prepared by Galen N. Peterson June 25,2003 <y- -7 J c-., 6 & b 1 I ! \ ‘\ l- b (0 I In In M K W m I 2 z r m c W W I m h LL 0 N + W W I v) h PI W c I W W rr) K w m I 3 z -- I r W W I VI I- LL 0 n I- W W I cn I / i i -flH b b W I (0 W n c 9: ’/ a m w I 3 z x w QN ZO / / - VI I- w w I VI l- LL 0 I- C W W I cn I ID ID n w I 3 z a m City of Carlsbad -Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 36 Part VI A. Description of Improvements The Assessment Law provides for the legislative body of any municipality to finance certain capital facilities and services within or along its streets or any public way or easement. The following is a list of proposed improvements as allowed under the Assessment Law to be acquired, installed, maintained, repaired or improved under the provisions of the Assessment Law. For the general location of the improvements to be acquired reference is hereby made to the Plans and Specifications described in Part I of this report. The proposed improvements include the following: Improvement No. 1. College Boulevard/Cannon Road connection as follows: College Boulevard from Cannon Road to Carlsbad Village Drive College Boulevard from south end of Calavera Hills II development to Carlsbad Village Drive (Reach C, full width) - full width grading to major arterial standards including slopes not adjacent to development and any surcharge (but not to include grading outside of the right-of-way in future developed areas), additional grading and improvements for meandering regional trail for bicycles and pedestrians in a public trail easement which is a part of the City-wide trail system, asphalt pavement to major arterial standard width on each side of a raised improved (hardscaping, landscaping and irrigation) median, modification of existing median north of Carlsbad Village Drive to provide left turn pocket, non-master plan storm drain facilities ( which excludes any Drainage Master Plan facilities subject to reimbursement from Local Drainage Area Fees), curb, gutter and sidewalk, bus turnout and furniture, street lighting, median curb, sewer, water and reclaimed water lines and appurtenances (excluding any portion of such costs reimbursable from sewer and/or water connection fees), erosion control landscaping and irrigation (located within an easement granted to the City), traffic signal at Carlsbad Village Drive and College Boulevard (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees), striping and signage, protection and relocation of existing utilities as required, dry utilities’ within the right-of-way, as well as environmental mitigation costs’ and incidental costs of construction as described in the Acquisition/Financing Agreement. College Boulevard from Cannon Road to south end of Calavera Hills II development (Reach B center lanes) - full width grading to major arterial standards including slopes not adjacent to development and any surcharge (but not to include grading outside of the right-of-way in future developed areas), additional grading for meandering regional trail for bicycles and pedestrians in a public trail easement which is a part of the City-wide trail system, 18 feet of pavement on each side of a raised unimproved (with an AC cap) median, non-master plan storm drain facilities (which excludes any Drainage Master Plan facilities subject to reimbursement from Local Drainage Area Fees), median curb, sewer, water and reclaimed water lines and appurtenances (excluding any portion of such costs reimbursable from sewer and/or water connection fees), erosion control landscaping and irrigation (located within an easement granted to the City), transition to full improvements at inlet locations, southerly boundary of Calavera Hills and Cannon Road intersection including curb, gutter and additional paving, traffic signal at Cannon Road and College Boulevard (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees), striping and signage, protection and relocation of existing utilities as required, as well as environmental mitigation costs’ and incidental costs of construction as described in the Acquisition/Financing Agreement. k3 vl E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 37 Cannon Road from El Camino Real to College Boulevard (Reach 3 center lanes) - full width grading to major arterial standards including slopes not adjacent to development and any surcharge (but not to include grading outside of the right-of-way in future developed areas), additional grading for meandering regional trail for bicycles and pedestrians in a public trail easement which is a part of the City-wide trail system, 18 feet of pavement on each side of a raised unimproved (with AC cap) median, any transition improvements needed along El Camino Real, non-master plan storm drain facilities (which excludes any Drainage Master Plan facilities subject to reimbursement from Local Drainage Area Fees), street lighting (partial), median curb, sewer, water and reclaimed lines and appurtenances (excluding any portion of such costs reimbursable from sewer and/or water connection fees), erosion control landscaping and irrigation (located within an easement granted to the City), transition to full improvements at inlet locations and Cannon Road with College Blvd and El Camino Real intersections including curb, gutter and additional paving, signal modification at Cannon Road and El Camino Real (excluding those portions reimbursed from Traffic Impact Fee? and Public Facilities Fees), striping and signage, as well as environmental mitigation costs and incidental costs of construction as described in the Acquisition/Financing Agreement. Detention Basin BJB (partial) - grading and construction of a 49 acre-foot Drainage Master Planned storm water retention basin, access road, and outlet structure (excluding any portion of the costs subject to reimbursement from Local Drainage Area Fees), as well as environmental mitigation costs and incidental costs of construction as described in the Acquisition/Financing Agreement. Improvement No. 2. College Boulevard from Cannon Road to south end of Calavera Hills II development (Reach B frontage improvements) - demolition of interim improvements, 12.5 feet of pavement (outside lanes), curb and gutter, sidewalk, meandering trail, street lighting, median hardscape, landscape and irrigation, dry utilities’ within the right-of-way, striping and signage, traffic signals (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees) and appurtenances, sound walls, arterial road setback landscaping and irrigation, as well as environmental mitigation costs’ and incidental costs of construction as described in the Acquisition/Financing Agreement. Improvement No. 3. Cannon Road from El Camino Real to College Boulevard (Reach 3 frontage improvements) - demolition of interim improvements, 12.5 feet of pavement (outside lanes), curb and gutter, sidewalk, meandering trail, street lighting, median landscape and irrigation and median paving, dry utilities’ within the right-of-way, striping and signage, traffic signals (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees) and appurtenances, sound walls, arterial road setback landscaping and irrigation, as well as environmental mitigation costs’ and incidental costs of construction as described in the Acquisition/Financing Agreement. Notes: .I/ - The aggregate amount of the cost of dry utilities or mitigation land which are to be owned by an entity other than a “political subdivision” as such term is used in the Internal Revenue Code and regulations of the Internal Revenue Service which may be financed from the proceeds of tax exempt bonds issued for the Financing District shall be limited to 5% of the proceeds of such bonds which are eligible to be used to finance the acquisition of the Improvements. VI E-Prepared by Galen N. Peterson June 25,2003 City of Carlsbad -Assessment District No. 2M13-01 (College Boulevard and Cannon Road East) Page 38 B. Right-of-way Certificate STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CARLSBAD The undersigned, GLENN PRUIM, hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct. That at all times herein mentioned, the undersigned was, and now is, the duly appointed SUPERINTENDENT OFbTREETS/ CITY ENGINEER of the CITY OF CARLSBAD, CALIFORNIA. That there have now been instituted proceedings pursuant to the provisions of the Municipal Improvement Act of 1913, being Division 12 of the Streets and Highways Code of the State of California (the “Improvement Act”), Article XlllD of the Constitution of the State of California (“Article XlllD”), and Proposition 218 Omnibus Implementation Act, Section 53750 and following of the Government Code (the “Implementation Act”) (the Improvement Act, Article XIIID, and the Implementation Act are collectively referred to as the “Assessment Law”) and the City of Carlsbad Municipal Code, as amended, for the construction of certain public improvements in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 2003-01 (College Boulevard and Cannon Road East) (hereinafter referred to as the “Assessment District”). THE UNDERSIGNED STATES ANIHERTIFIES AS FOLLOWS: It is acknowledged that the proposed Improvements must be located within public rights-of-way, land, or easements owned by or licensed to the CITY OF CARLSBAD, County of San Diego, State of California, at the time of the acquisition of the Improvements, and the undersigned hereby further certifies that all rights-of-way necessary for the Improvements will be obtained and in possession of the City, County, or State prior to acceptance by the City of Carlsbad. EXECUTED this day of , ZOO-, at City of Carlsbad, California. Superintendent of Streets / City Engineer City of Carlsbad State of California -y By: Superintendent of Streets / City Engineer __ /1 June 25,2003 I&-* vl E-Prepared by Galen N. Peterson .+ Recording Requested By and when Recorded Mail to: City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: City Clerk OFFICIRL RECORDS SfN DIEGO COUNTY RECORDER’S OFFICE GREGORY J. SHITHi COlNTY RECORDER FEES: 36.00 SPECIAL, ASSESSMENT DISTRICT DISCLOSURE AGREEMENT This Agreement entered into as of this 16’ day of September, 2003 by and between the City of Carlsbad, a municipal corporation (“City”) and Cal El LLC, aDelaware limited liability company (‘Developer”). WEREAS, Developer has petitioned the City Council of the City to initiate and the City has initiated proceedings for the formation of a special assessment district pursuant to the terms and provisions of the “Municipal Improvement Act of 1913”, being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO 2003-01 (College Boulevard and Cannon Road East) (hereinafter referred to as the “Assessment District”); and WHEREAS, the City has adopted policies relating to the utilization of Assessment District financing which require Developer to extinguish the lien on any parcel created as a result of the confirmation of assessments of the Assessment District prior to the close of escrow on the sale of such parcel to a residential home buyer unless Developer shall have provided full disclosure of the existence of the assessment lien, the amount thereof, the annual assessment installments, the duration of the assessment lien and such other information as may be required by the City, and has provided the residential home buyer with the option to (a) take title subject to the applicable Assessment District special assessment against their parcel, or (b) discharge the special assessment obligation prior to or concurrent with the close of such escrow; and WHEREAS, the parties hereto have entered into this Disclosure Agreement to establish the terms and conditions which must be satisfied by Developer should it desire to allow residential home buyers to take title subject to the assessment obligation established for any parcel or parcels within the Assessment District. NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: Section 1. The above recitals are all true and correct. 911 1103 9009.14 A&O: #I0355 VI Section 2. Developer owns property proposed to be subject to assessment obligations within the boundaries of the Assessment District. Developer’s property is described and set forth in the attached, referenced and incorporated Exhibit “A”. Section 3. The escrow for the sale to any residential home buyer of any lot or parcel, including condominium unit, within the Assessment District shall not close or title to such parcel be otherwise conveyed to such residential home buyer without first causing the assessment lien created as a result of the confirmation of the Assessment District, if any, on such parcel to be extinguished except as provided for herein below. An assessment lien on a parcel within the Assessment District proposed to be sold to a residential home buyer need not be extinguished prior to the close of the escrow for the sale or other conveyance to such residential home buyer if Developer shall have given the residential home buyer a copy of the Notice of Special Assessment and Pre-Payment Option Election, the form of which is attached hereto as Exhibit “B” and incorporated herein by ths reference, and such Notice shall have been duly executed by the residential home buyer or buyers and deposited into escrow. Section 4. Developer shall incorporate the amount of assessment lien into the advertised sales price of the home and clearly disclose the pass-through option in any sales literature. Sales literature for this purpose shall not be deemed to include media advertising, billboards, signs or other like advertisements. In addition, notice of the assessment in a form and size similar to Exhibit “C” shall be prominently displayed in all sales offices offering units for sale that are subject to the Assessment District lien. 8/26/03 9009.14 H&O: #7222 v4 2 Section 5. This obligation shall be binding on all heirs, assigns or successors-in-interest of the parties hereto, and the City shall cause a copy of this Agreement to be recorded in the Office of the County Recorder upon its execution. Section 6. Developer shall indemnify and hold harmless the City of Carlsbad from any claims arising out of Developer’s failure to adequately perform under the provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the & ?? ay of 7 2003. n Cal El LLC (All signatures must be notarized) 8/26/03 9009.14 H&O: #7222 v4 3 On <>yrk-~~Lc~ 4 2;u3 befire me, G- a notary public in and for ;aid State, personally appeared 5ki,,ha1 f. %\< dSdvt ,. ~4-4’~ personally known to me (erpmvect to me on tine basis of satisfactory evicierfce) to be the person(s) whose name(s) &/are subscribed to the within instrument and acknowledged to me that-h&he/they executed the same in &dher/their authorized capacity(ies), and that byhidherltheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. ~ammtrslon X 1317082 WITNESS my hand and official seal. Signature STATE OF CALIFORNIA 1 ) ss. COUNTY OFSN DIG0 1 on 10-3-03 before me,an I a ‘tTWiFi5Q a notary public in and for said State, personally appeared (-‘J&jw A * XEUJ/S Y personally known to me (b be the person(+ whose name@ idam subscribed to the within instrument and acknowledged to me that he/slm%ey executed the same in his/hfthir authorized capacity(*, and that by his-r signature@ on the instrument the person(+, or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. . Signatur (Seal) 8126103 9009.14 H&O: #7222 v4 4 EXHIBIT A DESCRIPTION OF SUBJECT PROPERTY THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: BEING A SUBDIVISION OF : ALL OF PARCEL MAP NO. 16233, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, AS FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, SEPTEMBER 2 1,1990 AS FILE NO. 90-5 18471 OF OFFICIAL RECORDS. 8/26/03 9009.14 H&O: #?222 v4 5 EXHIBIT B NOTICE OF SPECIAL ASSESSMENT AND PRE-PAYMENT OPTION ELECTION Assessment District No. 2003-1 (College Boulevard and Cannon Road East) of the City of Carlsbad TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: Lot Number: Tract Number: Street Address: Estimated Original Assessment Lien: $ THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCHASING THIS PROPERTY. This property is within the above-named assessment district. The City of Carlsbad has issued bonds for the assessment district to finance the acquisition or construction of certain public improvements that are of direct and special benefit to property within the assessment district. The bonds will be repaid fiom annual assessment installments on property within the assessment district. The property is subject to annual assessment installments of the assessment district that will appear on your property tax bills, but which are in addition to the regular property taxes and any other charges and levies that will be listed on the property tax bill. If you fail to pay assessment installments when due each year, the property may be foreclosed upon and sold. The annual assessment installment against this property for the - tax year is dollars ($3. Assessment installments will be collected each year on your property tax bill in semi-annual installments until the assessment bonds are repaid in tax year -- The public facilities that are being paid for by the money received from the sale of bonds that are being repaid by the assessments are: 0 Roadway improvements to College Blvd. and Cannon Road generally consisting of grading and paving of streets, installation of curbs, gutters, sidewalks, guardrail, signing and striping, storm drainage pipelines and other facilities, water, sewer and reclaimed 8/26/03 9009.14 H&O: #7222 v4 6 water mains, dry utilities, environmental mitigation, landscaping of medians, parkways and adjacent slopes and other appurtenant works; and 0 Storm drain improvements including a storm water detention basin east of College Boulevard north of the easterly extension of Cannon Road. These facilities may not yet have all been constructed or acquired and it is possible that some of such facilities may never be constructed or acquired. YOU SHOULD TAKE THIS ASSESSMENT AND THE BENEFITS FROM THE PUBLIC FACILITIES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY. YOU MAY OBTAIN A COPY OF THE RESOLUTION C0”G ASSESSMENTS (RESOLUTION NO. 2003- ) THAT SPECIFIES MORE PRECISELY HOW THE ASSESSMENTS ARE APPORTIONED AMONG PROPERTIES IN THE ASSESSMENT DISTRICT FROM THE CITY OF CARLSBAD BY CALLING (760 ) OR ON THE CITY WEBSITE AT WWW.CI.CARCSBAD.CA.US. THEE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE ESTIMATED REASONABLE COST OF PROVIDING THE DOCUMENT. PRE-PAYMENT OPTION ELECTION When you purchase the property, you will be solely responsible for the payment of the assessment. Prior to the close of escrow, you have the option to elect to either (a) pay off the assessment obligation in semi-annual assessment installments (“Option (a)”) during the term of the bonds or (b) pre-pay the entire assessment obligation at the close of escrow on the sale of the property to you in order to extinguish the assessment lien (“Option (b)”). If you elect Option (a) the assessment on the property will be collected in semi- annual installments which will be included in the property tax bill for the property. The annual assessment installments are estimated to be approximately $ per year to be collected through tax year - . In the event you elect Option (b), the amount required to pay-off the assessment in order to extinguish the assessment lien will be determined at the close of escrow. 8/26/03 9009. I4 H&O: #7222 v4 7 RECEIPT, ACKNOWLEDGEMENT AND PAYMENT OPTION ELECTION By signing this Notice, Buyer acknowledges that: 1. The property that Buyer is purchasing is located within the boundaries of Assessment District No. 2003-01 (College Boulevard and Cannon Road East). 2. Buyer has had an opportunity to read and review this Notice, and has received a copy of this Notice prior to opening escrow for the purchase of the property, or, if received after the opening of such escrow, with sufficient time for Buyer to make any reasonable inquiries that Buyer deems necessary regarding the assessment against the property prior to the close of escrow. BUYER UNDERSTANDS THAT BUYER MAY TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT AFTER RECEIVING THIS NOTICE FROM THE OWNER OR AGENT SELLING THE PROPERTY. THE CONTRACT MAY BE TERMINATED WITHIN THREE DAYS IF THE NOTICE WAS RECEIVED IN PERSON OR WlTHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER OR AGENT SELLING THE PROPERTY. 3. Buyer hereby elects the following option (check one): (a) pay the assessment in annual installments estimated to be approximately $ per year through the tax year - . (b) pay-off the entire assessment lien at one time at the close of escrow for the Property. The mount will be determined in escrow. The pay-off amount may include prepayment penalties, interest charges and other charges so that it may exceed the original asessment lien mount. 8/26/03 9009.14 H&O: #I222 v4 8 4. If Buyer elects Option (a), Buyer assumes the assessment against the property, and will be solely responsible for the payment of such assessment for as long as the Buyer owns the property and Seller shall have no liability for such payment. Further Buyer agrees to the amount and purpose of the assessment on the property and that Buyer forever waives any right of complaint of protest to the City pertaining to the nature, extent, duration and amount of the assessment against the property. Notwithstanding Buyer’s election of Option (a) at this time, Buyer may pay the entire assessment at any time in the hture if Buyer so chooses. BUYER Name (Please Print) Signature Date Name (Please Print) Signature Date A COPY OF THIS EXECUTED NOTICE OF SPECIAL ASSESSMENT AND PRE- PAYMENT OPTION ELECTION SHALL BE PROVIDED TO THE FINANCE DIRECTOR OF THE CITY AT THE CLOSE OF ESCROW. Please mail executed copy to: Finance Director City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008 8/26/03 9009.14 H&O: #7222 v4 9 EXHIBIT C (Example of Sales Office sim - Use no smaller than Font size 30 for heading and 20 for text) NOTICE OF SPECIAL TAXES AND ASSESSMENTS The homes being sold in (name of development) are within Carlsbad Assessment District No. 2003-01 (College Boulevard and Cannon Road East) and the Carlsbad Unified School District Community Facilities District No. and are subject to an assessment lien and special taxes. This may require the homeowner to make semi-annual payments of assessment installments and special taxes over a term of 30 or more years. The payments are made at the same time and in the same manner as your property taxes. More information can be found in the Notice of Special Assessment and Pre- Payment Option Election form and the Notice of Special - Tax, both of which must be read and signed prior to purchasing a (name of Development) home. Your sales representative will provide a copy of these Notices and is available to answer questions. 8/26/03 9909.14 H&O: #7222 v4 10 EXHIBIT C (Example of Price Sheet Notice - Use no small than Font size 12 for Notice) Price Sheet First home Second home Third home Fourth home Notice: The homes being sold in (name of development) are within Assessment District No. 2003-01 (College Boulevard and Cannon Road East) and are subject to an assessment lien of approximately $ approximately $ Notice of Special Assessment and Pre-Payment Option Election form. Please see your sales representative for a copy of the Notice. . This may require the homeowner to make annual payments of over a term of 30 or more years. More information can be found in the 8/26/03 9009.14 H&O: #7222 v4 11 nac # 2003-1229942 Recording Requested By and when Recorded Mail to: City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: City Clerk OFfICIAL RECORDS SAN DIEM COUNTY RE#RI”S OFFICE GREGORY J. S#IMr COUMY k!CfMR FEES: 41.00 SPECIAL ASSESSMENT DISTRICT DISCLOSURE AGREEMENT This Agreement entered into as of this 16* day of September, 2003 by and between the City of Carlsbad, a municipal corporation (“City”) and Calavera Hills II, LLC, a California limited liability company (“Developer”). WHEREAS, Developer has petitioned the City Council of the City to initiate and the City has initiated proceedings for the formation of a special assessment district pursuant to the terms and provisions of the “Municipal Improvement Act of 1913”, being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO 2003-01 (College Boulevard and Cannon Road East) (hereinafter referred to as the “Assessment District”); and WHEREAS, the City has adopted policies relating to the utilization of Assessment District financing which require Developer to extinguish the lien on any parcel created as a result of the confirmation of assessments of the Assessment District prior to the close of escrow on the sale of such parcel to a residential home buyer unless Developer shall have provided full disclosure of the existence of the assessment lien, the amount thereof, the annual assessment installments, the duration of the assessment lien and such other information as may be required by the City, and has provided the residential home buyer with the option to (a) take title subject to the applicable Assessment District special assessment against their parcel, or (b) discharge the special assessment obligation prior to or concurrent with the close of such escrow; and WHEREAS, the parties hereto have entered into this Disclosure Agreement to establish the terms and conditions which must be satisfied by Developer should it desire to allow residential home buyers to take title subject to the assessment obligation established for any parcel or parcels within the Assessment District. NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTES AS FOLLOWS: Section 1. The above recitals are all true and correct. 8/26/03 9009.14 H&O: #7222 v4 Section 2. Developer owns property proposed to be subject to assessment obligations within the boundaries of the Assessment District. Developer’s property is described and set forth in the attached, referenced and incorporated Exhibit “A”. Section 3. The escrow for the sale to any residential home buyer of any lot or parcel, including condominium unit, within the Assessment District shall not close or title to such parcel be otherwise conveyed to such residential home buyer without first causing the assessment lien created as a result of the confirmation of the Assessment District, if any, on such parcel to be extinguished except as provided for herein below. An assessment lien on a parcel within the Assessment District proposed to be sold to a residential home buyer need not be extinguished prior to the close of the escrow for the sale or other conveyance to such residential home buyer if Developer shall have given the residential home buyer a copy of the Notice of Special Assessment and Pre-Payment Option Election, the form of which is attached hereto as Exhibit “B” and incorporated herein by this reference, and such Notice shall have been duly executed by the residential home buyer or buyers and deposited into escrow. Section 4. Developer shall incorporate the amount of assessment lien into the advertised sales price of the home and clearly disclose the pass-through option in any sales literature. Sales literature for this purpose shall not be deemed to include media advertising, billboards, signs or other like advertisements. In addition, notice of the assessment in a form and size similar to Exhibit “C” shall be prominently displayed in all sales offices offering units for sale that are subject to the Assessment District lien. 8/26/03 9009.14 H&O: #7222 v4 2 Section 5. This obligation shall be binding on all heirs, assigns or successors-in-interest of the parties hereto, and the City shall cause a copy of this Agreement to be recorded in the Office of the County Recorder upon its execution. Section 6. Developer shall indemnify and hold harmless the City of Carlsbad from any claims arising out of Developer’s failure to adequately perfonn under the provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the CALAVERA HILLS It, a California limited liability company By: McMillin Companies, LLC, a Delaware limited liability company (All signatures must be notarized) 8/26/03 9009.14 H&O: #7222 v4 3 STATE OF CALIFORNIA 1 A before me, ,a *, ersonahy appeared \ personally known to me ( whose nameM is/+ subsbo me that he/- executed the same in hi- . authorized capacity@& and that by hishe&heir signature instrument. ' nce) to be the personM instrument the person?$, or the entity upon behalf of whch the person&) acted, STATE OF CALIFORNIA personally known to me ( whose name@ is/ executed the same instrument the perso instrument. Signatur 8/26/03 9009.14 H&O: 6'222 v4 4 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California } SS. County of .ccu? ';i)!EGO On , before meJfifi IdE, I Eh3E Date Name and Title of Officer (e g , "Jane DodNotary Publifl - Ll33l5 Name@) of Signer@) personally appeared A a personally known to me 0 proved to me on the basis of satisfactory evidence to be the person(+ whose name(+ is/- subscribed to the within instrument and acknowledged to me that he/ey executed the same in hislhed-thir authorized capacity(@, and that by his-r signature(+ on the instrument the person@), or the entity upon behalf of which the personfsj acted, executed the instrument. Place Notary Seal Above WITNESS my hand and official seal. OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Document Date: -\\0-03 Number of Pages: I 1 Title or Type of Document: aSSrG5Ma AT Signer(s) Other Than Named Above: 6gIhn I 11 ch OH m,* LC Capacity(ies) Claimed by Signer Signer's Name: 111 Individual C Corporate Officer - Title(s): 0 Partner - Limited n General Attorney in Fact 0 Trustee 0 Guardian or Conservator U Other: Signer Is Representing: 0 1999 Natlonal Notary Association * 9350 De Solo Ave., P.O. Box 2402 Chalsworth. CA 91313-2402 * www.nationalnotary.org Prcd. No. 5907 Reorder: Call Toll-Free 1-800-676-6827 EXHIBIT A DESCRJPTION OF SUBJECT PROPERTY THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCFUBED AS FOLLOWS: BEING A SUBDIVISION OF A PORTION OF LOT "J" OF THE RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO THE PARTITION MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON NOVEMBER 16,1896. LOTS 85 THROUGH 92, INCLUSIVE, OF CARLSBAD TRACT NO. 01-02, CALAVERA HILLS VILLAGE 'K', IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 14622, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY 1,2003. LOTS 15 THROUGH 17, INCLUSIVE, OF CARLSBAD TRACT NO. 01-02, CALAVERA HILLS VILLAGE %2', IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 14623, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY 2,2003. LOT 1,2 AND 4 OF CARLSBAD TRACT NO. 00-02 CALAVERA HILLS PHASE II, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 14541, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, FEBRUARY 12,2003. PARCEL 2 OF CARLSBAD MINOR SUBDIVISION NO. MS 02-09 CALAVERA HILLS II VILLAGE Y, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO PARCEL MAP NO. 19252, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JUNE 5,2003. Assessors Parcel Number Robertson Ranch: 168-050-47 168-050-48 8/26/03 9009. I4 H&O: #7222 v4 5 EXHIBIT B NOTICE OF SPECIAL ASSESSMENT AND PRE-PAYMENT OPTION ELECTION Assessment District No. 2003-1 (College Boulevard and Cannon Road East) of the City of Carlsbad TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: Lot Number: Tract Number: Street Address: Estimated Original Assessment Lien: $ THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCHASING THIS PROPERTY. This property is within the above-named assessment district. The City of Carlsbad has issued bonds for the assessment district to finance the acquisition or construction of certain public improvements that are of direct and special benefit to property within the assessment district. The bonds will be repaid &om annual assessment installments on property within the assessment district. The property is subject to annual assessment installments of the assessment district that will appear on your property tax bills, but which are in addition to the regular property taxes and any other charges and levies that will be listed on the property tax bill. If you fail to pay assessment installments when due each year, the property may be foreclosed upon and sold. The annual assessment installment against this property for the - tax year is dollars ($ ). Assessment installments will be collected each year on your property tax bill in semi-annual installments until the assessment bonds are repaid in tax year -- - The public facilities that are being paid for by the money received fiom the sale of bonds that are being repaid by the assessments are: 0 Roadway improvements to College Blvd. and Cannon Road generally consisting of grading and paving of streets, installation of curbs, gutters, sidewalks, guardrail, signing and striping, storm drainage pipelines and other facilities, water, sewer and reclaimed 8/26/03 9009.14 H&O: #7222 v4 6 water mains, dry utilities, environmental mitigation, landscaping of medians, parkways and adjacent slopes and other appurtenant works; and 0 Storm drain improvements including a storm water detention basin east of College Boulevard north of the easterly extension of Cannon Road. These facilities may not yet have all been constructed or acquired and it is possible that some of such facilities may never be constructed or acquired. YOU SHOULD TAKE THIS ASSESSMENT AND THE BENEFITS FROM THE PUBLIC FACILITIES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY. YOU MAY OBTAIN A COPY OF THE RESOLUTION CONFIRMING ASSESSMENTS (RESOLUTION NO. 2003- ) THAT SPECIFIES MORE PRECISELY HOW THE ASSESSMENTS ARE APPORTIONED AMONG PROPERTIES IN THE ASSESSMENT DISTRICT FROM THE CITY OF CARLSBAD BY CALLING (760 ) OR ON THE CITY WEBSITE AT WWW.CI.CARLSBAD.CA.US. THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE ESTIMATED REASONABLE COST OF PROVIDING THE DOCUMENT. PRE-PAYMENT OPTION ELECTION When you purchase the property, you will be solely responsible for the payment of the assessment. Prior to the close of escrow, you have the option to elect to either (a) pay off the assessment obligation in semi-annual assessment installments (“Option (a)”) during the term of the bonds or (b) pre-pay the entire assessment obligation at the close of escrow on the sale of the property to you in order to extinguish the assessment lien (“Option (b)”). If you elect Option (a) the assessment on the property will be collected in semi- annual installments which will be included in the property tax bill for the property. The annual assessment installments are estimated to be approximately $ per year to be collected through tax year - . In the event you elect Option (b), the amount required to pay-off the assessment in order to extinguish the assessment lien will be determined at the close of escrow. 8/26/03 9009.14 H&O: #?222 v4 7 RECEIPT, ACKNOWLEDGEMENT AND PAYMENT OPTION ELECTION By signing this Notice, Buyer acknowledges that: 1. The property that Buyer is purchasing is located within the boundaries of Assessment District No. 2003-01 (College Boulevard and Cannon Road East). 2. Buyer has had an opportunity to read and review this Notice, and has received a copy of this Notice prior to opening escrow for the purchase of the property, or, if received after the opening of such escrow, with sufficient time for Buyer to make any reasonable inquiries that Buyer deems necessary regarding the assessment against the property prior to the close of escrow. BUYER UNDERSTANDS THAT BUYER MAY TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT AFTER RECEIVING THIS NOTICE FROM THE OWNER OR AGENT SELLING THE PROPERTY. THE CONTRACT MAY BE TERMINATED WITHIN THREE DAYS IF THE NOTICE WAS RECEIVED IN PERSON OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER OR AGENT SELLING THE PROPERTY. 3. Buyer hereby elects the following option (check one): (a) pay the assessment in annual installments estimated to be approximately $ per year through the tax year - . (b) pay-off the entire assessment lien at one time at the close of escrow for the Property. The amount will be determined in escrow. The pay-off amount may include prepayment penalties, interest charges and other charges so that it may exceed the original assessment lien amount. 8/26/03 9009.14 H&O: #7222 v4 8 4. If Buyer elects Option (a), Buyer assumes the assessment against the property, and will be solely responsible for the payment of such assessment for as long as the Buyer owns the property and Seller shall have no liability for such payment. Further Buyer agrees to the amount and purpose of the assessment on the property and that Buyer forever waives any right of complaint of protest to the City pertaining to the nature, extent, duration and amount of the assessment against the property. Notwithstanding Buyer’s election of Option (a) at this time, Buyer may pay the entire assessment at any time in the future if Buyer so chooses. . BUYER Name (Please Print) Signature Date Name (Please Print) Signature Date A COPY OF THIS EXECUTED NOTICE OF SPECIAL ASSESSMENT AND PRE- PAYMENT OPTION ELECTION SHALL BE PROVIDED TO THE FINANCE DIRECTOR OF THE CITY AT THE CLOSE OF ESCROW. Please mail executed copy to: Finance Director City of Carlsbad 163 5 Faraday Avenue Carlsbad, CA 92008 8/26/03 9009.14 H&O: #7222 v4 9 EXHIE3IT C (Example of Sales Office sign - Use no smaller than Font size 30 for heading and 20 for text) NOTICE OF SPECIAL TAXES AND ASSESSMENTS The homes being sold in (name of development) are within Carlsbad Assessment District No. 2003-0 1 (College Boulevard and Cannon Road East) and the Carlsbad Unified School District Community Facilities District No. and are subject to an assessment lien and special taxes. This may require the homeowner to make semi-annual payments of assessment installments and special taxes over a term of 30 or more years. The payments are made at the same time and in the same manner as your property taxes. More information can be found in the Notice of Special Assessment and Pre- Payment Option Election form and the Notice of Special Tax, both of which must be read and signed prior to purchasing a (name of Development) home. Your sales representative will provide a copy of these Notices and is available to answer questions. 8/26/03 9009.14 H&O: #E22 v4 10 EXHIBIT C (Example of Price Sheet Notice - Use no small than Font size 12 for Notice) First home Second home Third home Fourth home Price Sheet Notice: The homes being sold in (name of development) are within Assessment District No. 2003-01 (College Boulevard and Cannon Road East) and are subject to an assessment lien of approximately $ approximately $ Notice of Special Assessment and Pre-Payment Option Election form. Please see your sales representative for a copy of the Notice. . This may require the homeowner to make annual payments of over a term of 30 or more years. More information can be found in the 8/26/03 9009.14 H&O: #7222 v4 11 nac # 2003u1229943 Recording Requested By and when Recorded Mail to: City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: City Clerk OFFICIAl RECRDS SAN DIEGO CUMTY EoER’S OFFICE FEES: 41.00 GREGOKY J. HITHY GWNTY RECORDER SPECIAL ASSESSMENT DISTRICT DISCLOSURE AGREEMENT This Agreement entered into as of this 16* day of September, 2003 by and between the City of Carlsbad, a municipal corporation (“City”) and McMillin Montara, LLC, a Delaware limited liability company (“Developer”). WHEREAS, Developer has petitioned the City Council ofthe City to initiate and the City has initiated proceedings for the formation of a special assessment district pursuant to the terms and provisions of the “Municipal Improvement Act of 1913”, being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO 2003-01 (College Boulevard and Cannon Road East) (hereinafter referred to as the “Assessment District”); and WHEREAS, the City has adopted policies relating to the utilization of Assessment District financing which require Developer to extinguish the lien on any parcel created as a result of the confirmation of assessments of the Assessment District prior to the close of escrow on the sale of such parcel to a residential home buyer unless Developer shall have provided full disclosure of the existence of the assessment lien, the amount thereof, the annual assessment installments, the duration of the assessment lien and such other information as may be required by the City, and has provided the residential home buyer with the option to (a) take title subject to the applicable Assessment District special assessment against their parcel, or (b) discharge the special assessment obligation prior to or concurrent with the close of such escrow; and WHEREAS, the parties hereto have entered into this Disclosure Agreement to establish the terms and conditions which must be satisfied by Developer should it desire to allow residential home buyers to take title subject to the assessment obligation established for any parcel or parcels within the Assessment District. NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: Section 1. The above recitals are all true and correct. 9/11/03 9009.14 H&O: #I0357 vl Section 2. Developer owns property proposed to be subject to assessment obligations within the boundaries of the Assessment District. Developer’s property is described and set forth in the attached, referenced and incorporated Exhibit “A”. Section 3. The escrow for the sale to any residential home buyer of any lot or parcel, including condominium unit, within the Assessment District shall not close or title to such parcel be otherwise conveyed to such residential home buyer without first causing the assessment lien created as a result of the confirmation of the Assessment District, if any, on such parcel to be extinguished except as provided for herein below. An assessment lien on a parcel within the Assessment District proposed to be sold to a residential home buyer need not be extinguished prior to the close of the escrow for the sale or other conveyance to such residential home buyer if Developer shall have given the residential home buyer a copy of the Notice of Special Assessment and Pre-Payment Option Election, the form of which is attached hereto as Exhibit “B” and incorporated herein by this reference, and such Notice shall have been duly executed by the residential home buyer or buyers and deposited into escrow. Section 4. Developer shall incorporate the amount of assessment lien into the advertised sales price of the home and clearly disclose the pass-through option in any sales literature. Sales literature for this purpose shall not be deemed to include media advertising, billboards, signs or other like advertisements. In addition, notice of the assessment in a form and size similar to Exhibit “C” shall be prominently displayed in all sales offices offering units for sale that are subject to the Assessment District lien. Ill Ill Ill Ill 8/26/03 9009.14 H&O: #7222 v4 2 Section 5. This obligation shall be binding on all heirs, assigns or successors-in-interest of the parties hereto, and the City shall cause a copy of this Agreement to be recorded in the Office of the County Recorder upon its execution. Section 6. Developer shall indemnify and hold harmless the City of Carlsbad from any claims arising out of Developer’s failure to adequately perform under the provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the /B ?F ay of+ , 2002. McMillin Montara, LLC a Delaware limited liability company By: McMillin Management Services, LP a California liability partnership Its: Manager ction Services, Inc By: Its: By: Its: (All signatures must be notarized) 8/26/03 9009.14 H&0: #7222 v4 3 STATE OF CALIFORMA cted, executed the instrument. #eal) whose name(s) idare s executed the same in his/her/their a instrument the person(s), or the instrument. of which the person(s) acted, executed the (Seal) 8/26/03 9009. I4 H&O: #7222 v4 4 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT I State of California 1 ss. County of - On 10- 3 0 3 , before me,,fAf, &k/rd EU Date Name and Title of Officer (e g , 'Jane Doe, Mtary Public") / personally appeared &-m 'D& *fl- uf.d 15 Narne(s) of Signer(s) $(personally known to me 0 proved to me on the basis of satisfactory evidence to be the person(+ whose name(+ is/= subscribed to the within instrument and acknowledged to me that he/slw&xy executed the same in his/be%kr ' authorized capacity(@, and that by his/he&beir signature@+ on the instrument the personm, or the entity upon behalf of which the personfsj acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above OPTlONA L Though the information below is not required by law, if may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: 11 Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer Signer's Name: 0 Individual U Corporate Officer - Title(s): 0 Partner - 0 Limited Ll General 0 Attorney in Fact 0 Trustee 0 Guardian or Conservator 0 Other: Signer Is Representing: 0 1999 National Notary Association * 9350 De Solo Ave.. P.O. Box 2402 - Chatsworth. CA 91313-2408 * w.nalionalnata~.org Prod. No. 5907 Reorder: Call Toll-Free 1-800-876-6827 EXHIBIT A DESCRIPTION OF SUBJECT PROPERTY THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRTBED AS FOLLOWS: LEGAL DESCRIPTION OF VILLAGE K LOTS 1 THROUGH 84, INCLUSIVE, OF CARLSBAD TRACT NO. 01-02, CALAVERA HILLS VILLAGE ‘K, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 14622, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY 1 , 2003. LEGAL DESCRIPTION OF VILLAGE L-2 LOTS 1 THROUGH 14, INCLUSIVE, OF CARLSBAD TRACT NO. 01-02, CALAVERA HILLS VILLAGE ‘L-2’, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 14623, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JULY 2,2003. LEGAL DESCRIPTION OF VILLAGE R BEING A SUBDIVISION OF A PORTION OF LOT 168 AND THE REMAINDER PARCEL CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 12951 , FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON JULY 16,1992. OF CARLSBAD TRACT NO. 83-19 CALAVERA HILLS VILLAGE “T”, IN THE CITY OF SAID PROPERTY BEING DESCRIBED AS PARCEL A IN A CERTIFICATE OF OFFICIAL RECORDS OF SAID SAN DIEGO COUNTY. COMPLIANCE RECORDED SEPTEMBER 20,2000 AS FILE NO. 2000-0503706 OF 8/26/03 9009.14 N&O: U7222 v4 5 EXHIBIT B NOTICE OF SPECIAL ASSESSMENT AND PRE-PAYMENT OPTION ELECTION Assessment District No. 2003-1 (College Boulevard and Cannon Road East) of the City of Carlsbad TO: THE PROSPECTIVE PURCHASER OF THE REAL, PROPERTY KNOWN AS: Lot Number: Tract Number: Street Address: Estimated Original Assessment Lien: $ THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCHASING THIS PROPERTY. This property is within the above-named assessment district. The City of Carlsbad has issued bonds for the assessment district to finance the acquisition or construction of certain public improvements that are of direct and special benefit to property within the assessment district. The bonds will be repaid fiom annual assessment installments on property within the assessment district. The property is subject to annual assessment installments of the assessment district that will appear on your property tax bills, but which are in addition to the regular property taxes and any other charges and levies that will be listed on the property tax bill. If you fail to pay assessment installments when due each year, the property may be foreclosed upon and sold. The annual assessment installment against this property for the - tax year is dollars ($2. Assessment installments will be collected each year on your property tax bill in semi-annual installments until the assessment bonds are repaid in tax year - . The public facilities that are being paid for by the money received fiom the sale of bonds that are being repaid by the assessments are: e Roadway improvements to College Blvd. and Cannon Road generally consisting of grading and paving of streets, installation of curbs, gutters, sidewalks, guardrail, signing and striping, storm drainage pipelines and other facilities, water, sewer and reclaimed 8/26/03 9009.14 H&O: #7222 v4 6 water mains, dry utilities, environmental mitigation, landscaping of medians, parkways and adjacent slopes and other appurtenant works; and Storm drain improvements including a storm water detention basin east of College Boulevard north of the easterly extension of Cannon Road. These facilities may not yet have all been constructed or acquired and it is possible that some of such facilities may never be constructed or acquired. YOU SHOULD TAKE THIS ASSESSMENT AND THE BENEFITS FROM THE PUBLIC FACILITIES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY. YOU MAY OBTAIN A COPY OF THE RESOLUTION CONFIRMING ASSESSMENTS (RESOLUTION NO. 2003- ) THAT SPECIFIES MORE PRECISELY HOW THE ASSESSMENTS ARE APPORTIONED AMONG PROPERTIES IN THE ASSESSMENT DISTRICT FROM THE CITY OF CARLSBAD BY CALLING (760 ) OR ON THE CITY WEBSITE AT WWW.CI.CARLSBAD.CA.US. THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE ESTIMATED REASONABLE COST OF PROVIDING THE DOCUMENT. PRE-PAYMENT OPTION ELECTION When you purchase the property, you will be solely responsible for the payment of the assessment. Prior to the close of escrow, you have the option to elect to either (a) pay off the assessment obligation in semi-annual assessment installments (“Option (a)”) during the term of the bonds or (b) pre-pay the entire assessment obligation at the close of escrow on the sale of the property to you in order to extinguish the assessment lien (“Option (b)”). If you elect Option (a) the assessment on the property will be collected in semi- annual installments which will be included in the property tax bill for the property. The annual assessment installments are estimated to be approximately $ per year to be collected through tax year - , In the event you elect Option (b), the amount required to pay-off the assessment in order to extinguish the assessment lien will be determined at the close of escrow. 8/26/03 9009.14 H&O: #7222 v4 7 RECEIPT, ACKNOWLEDGEMENT AND PAYMENT OPTION ELECTION By signing this Notice, Buyer acknowledges that: 1. The property that Buyer is purchasing is located within the boundaries of Assessment District No. 2003-01 (College Boulevard and Cannon Road East). 2. Buyer has had an opportunity to read and review this Notice, and has received a copy of this Notice prior to opening escrow for the purchase of the property, or, if received after the opening of such escrow, with sufficient time for Buyer to make any reasonable inquiries that Buyer deems necessary regarding the assessment against the property prior to the close of escrow. BUYER UNDERSTANDS THAT BUYER MAY TERMINATE THE CONTRACT TO PURCHASE OR DEPOSIT RECEIPT AFTER RECEIVING THIS NOTICE FROM THE OWNER OR AGENT SELLING THE PROPERTY. THE CONTRACT MAY BE TERMINATED WITHIN THREE DAYS IF THE NOTICE WAS RECEIVED IN PERSON OR WITHIN FIVE DAYS AFTER IT WAS DEPOSITED IN THE MAIL BY GIVING WRITTEN NOTICE OF THAT TERMINATION TO THE OWNER OR AGENT SELLING THE PROPERTY. 3. Buyer hereby elects the following option (check one): (a) pay the assessment in annual installments estimated to be approximately $ per year through the tax year - . (b) pay-off the entire assessment lien at one time at the close of escrow for the Property. The amount will be determined in escrow. The pay-off amount may include prepayment penalties, interest charges and other charges so that it may exceed the original assessment lien amount. 8/26/03 9009.14 H&O: #7222 v4 8 4. If Buyer elects Option (a), Buyer assumes the assessment against the property, and will be solely responsible for the payment of such assessment for as long as the Buyer owns the property and Seller shall have no liability for such payment. Further Buyer agrees to the amount and purpose of the assessment on the property and that Buyer forever waives any right of complaint of protest to the City pertaining to the nature, extent, duration and amount of the assessment against the property. Notwithstanding Buyer’s election of Option (a) at this time, Buyer may pay the entire assessment at any time in the future if Buyer so chooses. BUYER Name (Please Print) Signature Date Name (Please Print) Signature Date A COPY OF THIS EXECUTED NOTICE OF SPECIAL ASSESSMENT AND PRE- PAYMENT OPTION ELECTION SHALL BE PROVIDED TO THE FINANCE DIRECTOR OF THE CITY AT THE CLOSE OF ESCROW. Please mail executed copy to: Finance Director City of Carlsbad 163 5 Faraday Avenue Carlsbad, CA 92008 8/26/03 9009.14 H&O: #7222 v4 9 EXHlBIT C (Example of Sales Office sign - Use no smaller than Font size 30 for heading and 20 for text) NOTICE OF SPECIAL TAXES AND ASSESSMENTS The homes being sold in (name of development) are within Carlsbad Assessment District No. 2003-0 1 (College Boulevard and Cannon Road East) and the Carlsbad Unified School District Community Facilities District No. and are subject to an assessment lien and special taxes. This may require the homeowner to make semi-annual payments of assessment installments and special taxes over a term of 30 or more years. The payments are made at the same time and in the same manner as your property taxes. More information can be found in the Notice of Special Assessment and Pre- Payment Option - Election form and the Notice of Special Tax, both of which must be read and signed prior to purchasing a (name of Development) home. Your sales representative will provide a copy of these Notices and is available to answer questions. 8/26/03 9009.14 H&O: #7222 v4 10 EXHIBIT C (Example of Price Sheet Notice - Use no small than Font size 12 for Notice) Price Sheet First home Second home Third home Fourth home Notice: The homes being sold in (name of development) are within Assessment District No. 2003-01 (College Boulevard and Cannon Road East) and are subject to an assessment lien of approximately $ approximately $ Notice of Special Assessment and Pre-Payment Option Election form. Please see your sales representative for a copy of the Notice. . This may require the homeowner to make annual payments of over a term of 30 or more years. More information can be found in the 8/26/03 9009.14 H&O: #7222 v4 11