HomeMy WebLinkAbout2003-09-16; City Council; 17310; Assessment District No. 2003-01 Public HearingAB# 17,310
MTG. 911 6/03
DEPT. FIN
RECOMMENDED ACTION:
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DEPT.S (6 d.9
TITLE: ASSESSMENT DISTRICT NO. 2003-01
(COLLEGE BOULEVARD AND CANNON ROAD EAST) -
FINAL PUBLIC HEARING, CONFIRMATION OF THE ASSESSMENTS,
APPROVAL OF THE FORM OF THE FIRST AMENDMENT TO THE
ACQUlSlTlONlFlNANClNG AGREEMENT AND SPECIAL
ASSESSMENT DISTRICT DISCLOSURE AGREEMENT
AND RELATED ACTIONS,
CITY ATTY.
CITY MGRa
Adopt Resolution No. 2003 - 744 approving the final report of the assessment engineer,
declaring the results of the assessment ballot tabulation, confirming the assessments and
ordering the acquisition or construction of improvements, together with appurtenances,
in Assessment District No. 2003-01 (College Boulevard and Cannon Road East).
Adopt Resolution No. 2003-245 approving the form of the First Amendment to
Acquisition/Financing Agreement and Special Assessment District Disclosure Agreement for
Assessment District No. 2003-01 (College Boulevard and Cannon Road East).
ITEM EXPLANATION:
On July 15, 2003, the City Council adopted a resolution stating its intent to form an assessment
district to fund certain public improvements necessary to serve the Calavera Hills and Robertson
Ranch East developments. At that time, the City Council also adopted a map of the proposed
assessment district, passed on the preliminary report by the assessment engineer, set the date
for this public hearing and ordered the initiation of the assessment ballot proceedings.
This agenda item contains the final actions necessary to complete the assessment district
formation, confirm the assessments on the parcels of land within the assessment district,
approve the First Amendment to Acquisition/Financing Agreement and the Special Assessment
District Disclosure Agreement.
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 properties which will specially benefit from the improvements based upon the special
benefit received by each such property.
The boundaries of the proposed assessment district are shown on the location map and include
the Calavera Hills II development consisting of Villages E-1, HI K, L-2, R, U, W, XI and Y with
689 proposed residential units, 2 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.
The improvements proposed to be acquired by the City from the proceeds of bonds issued for the assessment district include 4 lanes of College Boulevard from Carlsbad Village Drive to Cannon Road including sewer, water, recycled water and dry utilities; 4 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.
As required by Council Policy 33, the City’s Special District Review Committee has reviewed this
assessment district. The Committee finds that it complies with the terms and conditions of the
Council’s policy, with the clarifications and findings noted below, and recommends that the
City Council proceed with the formation of the assessment district.
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Page 2 of Agenda Bill No. 17,310
The exceptions to Policy 33 are as follows:
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 City Council may approve a special district that includes some land
without such approvals if the improvements to be financed are consistent with the General
Plan, and if the City Council finds the improvements are required in the public interest."
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. 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.
Paragraph 14 of Policy 33 states that it is the City's desire that any assessment be discharged
prior to the sale of the individual lots; however, it does allow the pass-through of the obligation
to the homebuyer at the City's sole discretion. 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 of any residential dwelling unit to each prospective homeowner.
This request is also consistent with the actions taken by the City Council on similar districts in
the past.
Special Assessment District Disclosure Anreement
When 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 attached Special Assessment District Disclosure
Agreement will provide for such notice and staff recommends approval of the agreement by the
Council. The significant elements of the agreement are as follows:
> Developer will disclose to prospective purchaser the total estimated assessment lien
amount, estimated annual payments on the property tax bill and the duration of payments
until the assessment bonds are paid in full. > Developer will provide the option to the prospective purchaser to either accept the
assessment lien and make the annual payments on the property tax bill or pay-off the
total assessment lien, plus prepayment penalties, interest charges and other charges,
at the time of close of escrow. > Developer will 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.
In addition, a notice of the assessment shall be prominently displayed in all sales offices
offering units for sale.
Page 3 of Agenda Bill No. 17,310
First Amendment to AcuuisitionlFinancing Agreement
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 proposed First Amendment to Acquisition/Financing Agreement is
virtually identical to provisions approved by the City and included in the Acquisition/Financing
Agreement for Assessment District No. 2002-01 (Poinsettia Lane East) which was approved
shortly after December 3, 2002. The significant changes to the Acquisition/Financing Agreement
are as follows:
> An improvement may be deemed "substantially complete" and, therefore, eligible for
payment even though it is subject to the completion of a punch list of items.
9 The amount to be paid for an improvement shall be the lesser of the actual cost paid or
the amount shown in the final engineer's report as amended prior to the sale of bonds to
reflect reductions in liens paid by the developer or property owner.
9 The developer shall be paid percent amounts of construction and need not show actual
payments for the cost of (i) developer's overhead, construction management,
and supervision at 4.5%, (ii) premiums for improvement and performance bonds at 1.5%,
and (iii) premiums paid for blanket liability insurance at 1.8%.
9 The developer will have one chance, at least 120 days before bond sale or such later
date approved by the Finance Director, to eliminate the lien amount for any parcels by
reducing the amount he will be paid for the improvements. > The formation of the assessment district and construction of improvements does not vest
any rights to the existing land use approvals for the property being assessed or to any
particular level, type or intensity development or use.
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/GPA, 99-03/MPI 150(H)/LFMP,
87-07(A)/ZC, 01 -OI/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 hydrologyhvater 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.
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Page 4 of Agenda Bill No.
FISCAL IMPACT:
17,310
The assessment district tax-exempt bonds, scheduled to be sold in two series, will fund the
acquisition or construction of the proposed improvements and related costs. The first series of bonds, which are estimated to be sold in the spring of 2004, will include all assessments in the Calavera Hills II development in an amount of approximately $12.83 million. The second series
of bonds, which will not be sold until the Robertson Ranch East property begins to develop, will be approximately $1 I .04 million. The total amount of bonds will equal approximately $23.87
million. This amount includes formation costs, debt issuance costs, and the establishment of a 9% debt service reserve fund. The total cost has been reduced from approximately $24.2 million, as shown in the preliminary assessment engineer’s report, due to favorable construction bids
received on this project.
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 with the proceeds of the bonds.
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 2 lanes, and (b) the special benefit attributed to parcels of land to be
owned by public agencies, non-profit organizations, homeowner’s 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 will contribute that portion of such costs representing such general benefit and such special benefit . 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 reimbursement would be paid by the owner of the Robertson Ranch West property, not by the City.
The assessment lien amounts on individual single-family homeowners are estimated to range
from $16,503 to $28,151. However, 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 of any residential dwelling unit. Homeowners may choose to pay-off the assessment lien at any time. The annual payments, which will be collected on the tax
roll, are estimated to range from $1,344 to $2,293.
EXHIBITS:
1. Location Map.
2. Order of Procedure.
3. Resolution No. 2003-244 approving the final report of the assessment engineer, declaring the results of the assessment ballot tabulation, confirming the
assessments and ordering the acquisition or construction of improvements, together with appurtenances, in Assessment District No. 2003-01 (College Boulevard and Cannon Road East).
4. Resolution No. 2003-245 approving the form of the First Amendment to Acquisition/Financing Agreement and Special Assessment District Disclosure Agreement
for Assessment District No. 2003-01 (College Boulevard and Cannon Road East).
First Amendment to Acquisition/Financing Agreement.
Special Assessment District Disclosure Agreement.
5.
6.
7. Final Engineer’s Report dated July 31, 2003.
DEPARTMENT CONTACT: Lisa H ild abrand, (760) 602-2430, I hild@ci. carlsbad . ca. us
EXHIBIT I
LOCATION MAP
s
LOCATION MAP
NO SCALE
EXHIBIT 2
ORDER OF PROCEDURE
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ORDER OF PROCEDURE
CITY OF CARLSBAD
(COLLEGE BOULEVARD AND CANNON ROAD EAST)
ASSESSMENT DISTRICT NO. 2003-01
DATE OF PUBLIC HEARING: SEPTEMBER 16,2003 AT 6:OO PM
Mayor: Direct the City Manager to provide the staff report.
City Manager: Introduce Item
“This is the time and place fixed for the public hearing related to:
a the proposed formation of Assessment District No. 2003-01
(College Boulevard and Cannon Road East),
the proposed levy of assessments within such assessment
district to pay debt service on bonds to be issued for such
assessment district, for the purpose of financing the cost to
acquire or construct certain public improvements to specially
benefit the properties within the proposed assessment district.”
e
Staff Report: Staff Introduce the item. Describe public hearing procedure, assessment
ballot procedure and assessment ballot tabulation. Note that noticing
requirements were completed in accordance with the law. Introduce the
Assessment Engineer.
Assessment Engineer: Present and summarize the Assessment
Engineer’s Report. Explain method and formula of assessment spread.
Staff
and Special Assessment District Disclosure Agreement.
Describe the First Amendment to Acquisition/Financing Agreement
End of staff report - - open public hearing
Mayor:
Mayor:
Mayor:
City Clerk:
Conduct the Public Hearing
"The City Council will hear from any interested person who desires to address
the City Council on this matter."
Upon completion of all public testimony
"The public hearing is now closed."
Council Questions and Comments
"Do any members of the City Council have any questions for staff or
consultants as a result of the public testimony."
City Council questions to and responses from staff & consultants
Request City Clerk to tabulate the ballots.
"The City Clerk will now tabulate the assessment ballots and, upon
completion of the tabulation, report the results to the City Council."
The City Council may wait until the tabulation is complete or may take a shod
recess.
"The tabulation of the assessment ballots has been completed. There were
ballots in support of the levy of the assessments and
ballots in opposition to the levy of the assessments.
Alternative No. 7 If the number of ballots in support of the levy of assessments exceeds
the number of ballots in opposition:
City Clerk: "Since the number of ballots in support of the levy of the assessments
exceeds the number of ballots in opposition to the levy of the assessments,
there is no majority protest."
Mayor: Request motion on the Resolutions.
"Since there is no majority protest, I would ask for a motion to adopt Resolution No. 2003-- Approving The Final Report of the Assessment
Engineer; Declaring the Results of Assessment Ballot Tabulation; Confirming
the Assessments and Ordering the Acquisition or Construction of
Improvements, Together with Appurtenances, in Assessment District No.
2003-01 (College Boulevard and Cannon Road East) and Resolution No.
2003-- Approving the Form of the First Amendment to the
Acquisition/Financing Agreement and Special Assessment District Disclosure
Agreement for Assessment District No. 2003-01 (College Boulevard and
Cannon Road East)."
City Council: Motion to adopt both resolutions, discussion and vote to adopt both
resolutions.
Alternative No. 2
City Clerk:
Mayor:
City Council:
If the number of ballots in opposition to the levy of assessments
exceeds the number of ballots in suppott:
"Since the number of ballots in opposition to the levy of the assessments
exceeds the number of ballots in support of such levy, there is a majority
protest .I'
Request motion to abandon the proceedings.
"Since there is a majority protest, I would ask for a motion to direct staff to
prepare a resolution abandoning the proceedings to form the Assessment
District for the next Council meeting."
Motion and vote to direct staff to prepare a resolution abandoning the
proceedings to form the Assessment District.
End of proceeding
EXHIBIT 3
RESOLUTION 2003- 244
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RESOLUTION NO. 2003-244
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING THE FINAL REPORT OF
THE ASSESSMENT ENGINEER, DECLARING THE RESULTS OF
THE ASSESSMENT BALLOT TABULATION, CONFIRMING THE
ASSESSMENTS AND ORDERING THE ACQUISITION OR
CONSTRUCTION OF IMPROVEMENTS, TOGETHER WITH
lCOLLEGE BOULEVARD AND CANNON ROAD EAST).
APPURTENANCES, IN ASSESSMENT DISTRICT NO. 2003-01
WHEREAS, the City Council of the City of Carlsbad, California, has previously adopted its
Resolution of Intention and initiated proceedings for the acquisition or construction of certain
mprovements, together with appurtenances and appurtenant work described in Exhibit A
attached hereto and incorporated herein by this reference (collectively, the “Improvements”), in a
special assessment district pursuant to the terms and provisions of the “Municipal Improvement
Act of 1913, being Division 12 of the Streets and Highways Code of the State of California
(the “Improvement Act”), such special assessment district known and designated as Assessment
District No. 2003-01 (College Boulevard And Cannon Road East) (the LIAssessment District”); and
WHEREAS, pursuant to such Resolution of Intention, a report (the “Preliminary Engineer’s
Report”) of Galen N. Peterson, Consulting Engineer, (the “Assessment Engineer”), as therein
xdered and as required by the Improvement Act, Article XlllD of the Constitution of the State of
Zalifornia (“Article XllID”) and the Proposition 21 8 Implementation Act (Government Code Section
53750 and following) (the Improvement Act, Article XlllD and the Implementation Act are referred
:o herein collectively as the “Assessment Law”), was presented, considered and preliminarily
approved; and
WHEREAS, as a result of the receipt of bids for the construction of certain of the
mprovements, the Assessment’Engineer has revised the Preliminary Engineer’s Report to reflect
such bids and submitted to the City Council a final Engineer‘s Report (the “Final Engineer’s
3eport”); and
WHEREAS, the Final Engineer’s Report, as prepared and submitted, contains all the
natters and items called for pursuant to the provisions of the Assessment Law, including the
ollowing:
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A. The plans and specifications for the Improvements proposed to be acquired or
constructed;
8. The Assessment Engineer's estimate of the itemized and total costs and expenses
of the construction of the Improvements and of the incidental expenses in connection therewith
contained in the Final Engineer's Report including that portion of such costs and expenses
representing the special benefit to be conferred by such Improvements on those parcels within the
Assessment District;
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 subdivisions of
land within such Assessment District, as the same existed at the time of the passage of such
Resolution of Intention, each of which subdivisions have been given a separate number upon
such diagram;
D. The proposed assessment upon the several subdivisions of land in the
Assessment District, in proportion to the estimated special benefits to be conferred on such
subdivisions, respectively, by the Improvements to be acquired or constructed, and of the
incidental expenses thereof; and
E.
WHEREAS, the City Council did set the time and place for a public hearing for hearing
protests to the proposed Improvements, the extent of the Assessment District or to the proposed
assessment: and
A description of the Improvements to be acquired or constructed.
WHEREAS, notices of such hearing accompanied by assessment ballot materials were
regularly mailed in the time, form and manner required by the Assessment Law and as evidenced
by a certificate on file with the transcript of these proceedings, a full hearing has been given, and
at this time all assessment ballots submitted pursuant to the Assessment Law have been
tabulated by the City Clerk of the City as the tabulation official appointed by the City Council, all in
the manner provided by the Assessment Law; and
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Page 2 of Resolution No. 2003-244
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WHEREAS, the City Clerk has prepared and submitted to this legislative body a Certificate
of Tabulation Official and Statement of Assessment Ballots Submitted (the “Certificate of the
Tabulation Official”), a copy of which is attached as Exhibit B hereto and incorporated herein by
this reference, which reflects the results of the tabulation of the assessment ballots; and
WHEREAS, at this time based upon the Certificate of Tabulation Official this City Council
determines that the assessment ballots received in favor of the proposed assessment and
weighted as required by the Assessment Law exceed the assessment ballots received in
opposition to the assessment and similarly weighted and, therefore, a majority protest pursuant to
the Assessment Law does not exist; and
WHEREAS, as required by the City Council Policy 33 (“Policy 337, the City‘s Special
District Review Committee has reviewed this Assessment District and found that the Assessment
District complies with the terms and conditions of Policy 33 except for paragraph 8 thereof
requiring 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; and
WHEREAS, 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; and
WHEREAS, Calavera Hills It LLC, the applicant for the Assessment District, has requested
that the assessments be permitted to pass-through to the prospective purchasers of the individual
lots within the proposed Assessment District; and
WHEREAS, the Special District Review Committee has reviewed this pass-through
request and recommends that the City Council approve such request 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 of any residential dwelling unit
to each prospective homeowner; and
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Page 3 of Resolution No. 2003-244
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WHEREAS, the Special District Review Committee has recommended that the City
Council proceed with the formation of the Assessment District; and
WHEREAS, this legislative body is now satisfied with the assessment and all matters
contained in the Final Engineer's Report as submitted.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
1.
2.
RECITALS. The above recitals are all true and correct.
FINDINGS. Based upon the determinations and recommendations of the Special
District Review Committee, the Final Engineer's Report, the staff report and the foregoing recitals,
this City Council hereby finds that:
A. the proposed Assessment District complies with the terms and conditions of
Policy 33 except for paragraph 8 thereof requiring 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;
B. the necessary entitlements have been obtained for that portion of the
proposed Assessment District commonly known as Calavera Hill but such entitlements have not
been obtained for that portion commonly known as Robertson Ranch East;
C. the Improvements proposed to be acquired by the City from the proceeds of
bonds issued for the Assessment District include two roadway improvements that are a part of the
City's General Plan circulation system, Le., 4 lanes of College Boulevard from Carlsbad Village
Drive to Cannon Road and 4 lanes of Cannon Road from El Camino Real to College Boulevard,
which are necessary to complete important links in the City's traffic circulation system, the primary
purpose for utilizing Special District financing pursuant to Policy 33;
D.
are required in the public interest;
,I/
/I/
the Improvements proposed to be financed through the Assessment District
Page 4 of Resolution No. 2003-244
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E. the estimated total amount of taxes, assessments and special taxes
appearing on the property tax bill for lots within the Assessment District will not exceed 1.8
percent of the initial sales price of any residential dwelling unit to each prospective homeowner;
and
F. the assessment ballots submitted pursuant to the Assessment Law in favor
of the assessment and weighted as required by the Assessment Law exceed the assessment
ballots submitted in opposition to the assessment and similarly weighted and it is therefore
determined that a majority protest pursuant to Assessment Law does not exist.
3. SPECIAL BENEFITS RECEIVED. Based upon the Final Engineer’s Report and the
testimony and other evidence received at the public hearing, it is hereby determined that:
A. All properties within the boundaries of the Assessment District receive a
special benefit from the Improvements;
B. The proportionate special benefit derived by each parcel proposed to be
assessed has been determined in relationship to the entirely of the cost of construction of the
Improvements;
C. No assessment is proposed to be imposed on any parcel which exceeds
the reasonable cost of the proportional special benefit to be conferred on such parcel from the
Improvements;
D.
E.
Only special benefits have been assessed; and
There are parcels both within and outside of the Assessment District which
are owned or to be owned by non-profit public benefit organizations and home owners
associations or to be owned by the City and Carlsbad Unified School District which are agencies
as such term is defined in Article XlllD and other such parcels owned and which specially benefit
from the Improvements. A contribution equal to the special benefit to be received by such parcels
shall be made by Calavera Hills II LLC in the form of a reduced purchase price for the acquisition
of the Improvements.
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Page 5 of Resolution No. 2003-244
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4. PUBLIC INTEREST AND CONVENIENCE. The public interest and convenience
require the acquisition or construction of the Improvements and, therefore, it is hereby ordered
that the Improvements be acquired or constructed, as set forth in the Resolution of Intention
previously adopted and as set forth in the Final Engineer’s Report presented and considered, and
as now approved.
5. FINAL ENGINEER’S REPORT. The Final Engineer’s Report, as now submitted, is
hereby approved and such Report shall stand as the report as required by the Assessment Law
for all future proceedings for this Assessment District.
6. CONFIRMATION OF ASSESSMENTS. The assessments, as now filed in the Final
Engineer’s Report and diagram for the Improvements to be acquired or constructed, together with
appurtenances and appurtenant work in connection therewith, are hereby confirmed.
The assessments contained in the Final Engineer’s Report are hereby levied and
approved as follows:
A. The final assessments represent the costs and expenses to finance that
portion of the cost of construction of the Improvements representing the special benefit conferred
by the Improvements on the parcels within the Assessment District, as authorized for these
proceedings.
6. The annual assessment to pay for administrative costs in an amount not to
exceed the maximum annual assessment as set forth in the Final Engineer‘s Report.
This City Council hereby approves a pass-through of the assessments to the purchasers
of individual lots subject to the approval by the City Council of a disclosure program as required by
paragraph 16 of Policy 33.
7. RECORDATION OF ASSESSMENT. The City Clerk shall forthwith deliver to the
Superintendent of Streets the assessment, together with the diagram attached thereto and made
a part thereof, as confirmed, with her certificate of such confirmation attached and the date
thereof; and that such Superintendent of Streets shall then immediately record such diagram and
assessment in his Office in a suitable book to be kept for that purpose and attach thereto his
certificate of the date of such recording.
Page 6 of Resolution No. 2003-244
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8. COUNTY RECORDER NOTICE. Upon confirmation of the assessments and
recordation of the assessment roll and diagram, a certified copy of the assessment diagram shall
be immediately filed in the Office of the County Recorder. Immediately thereafter, a copy of the
notice of assessment shall be recorded in the Office of the County Recorder in the manner and
form as set forth by law and specifically Section 31 14 of the Streets and Highways Code of the
State of California. .
9. MAILED NOTICE. Upon recordation of the diagram and assessment, a notice shall
be mailed to each owner of real property within the Assessment District at his last known address,
as such address appears on the last equalized tax rolls of the County, such notice to set forth a
statement containing a designation of the property assessed, as well as the amount of the final
confirmed assessment, and further indicating that bonds will be issued pursuant to the
“Improvement Bond Act of 191 5.
10. PUBLICATION. Notice shall also be given by publication in a newspaper of general
circulation, such notice setting forth the amount of the final assessment and indicating that such
assessment is now due and payable, and further indicating that if such assessment is not paid
within the allowed thirty (30) day cash collection period, bonds shall be issued as authorized by
law.
11. ASSESSMENT COLLECTION. The County Auditor is hereby authorized and
directed, in accordance with the provisions of Section 8682 of the Streets and Highways Code of
the State of California, to enter into his assessment roll on which property taxes will next become
due, opposite each lot or parcel of land affected, in a space marked “public improvement
assessment” or by other suitable designation, the next and several installments of such
assessment coming due during the ensuing fiscal year covered by the assessment roll and that
such entry then shall be made each year during the life of the bonds for the proceedings for the
above-referenced Assessment District. This authorization is continual until all assessment
obligations have been discharged and the bonds terminated.
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Page 7 of Resolution No. 2003-244
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As an alternate, and when determined to be in the best interests for bondholders of the
Assessment District, this legislative body may, by Resolution, designate an official other than the
County Tax Collector andlor other agent, to collect and maintain records of the collection of the
assessments, including a procedure other than the normal property tax collection procedure.
In accordance with the provisions of Section 8685 of the Streets and Highways Code, if
any lot or parcel of land affected by any assessment is not separately assessed on the tax roll so
that the installment of the assessment to be collected can be conveniently entered thereon, then
the Auditor shall enter on the roll a description of the lot or parcel affected, with the name of the
owners, if known, but otherwise the owners may be described as "unknown owners", and extend
the proper installment opposite the same.
12. ASSESSMENT VERIFICATION STATEMENT. The County Auditor shall, within
90 days after any special assessment installment becomes delinquent, render and submit a
detailed report showing the amounts of the installments, interest, penalties and percentages so
collected, for the preceding term and installment date, and from what property collected, and
further identify any properties which are delinquent and the amount and length of time for such
delinquency, and further set forth a statement of percentages retained for the expenses of making
such collections. This request is specifically made pursuant to the authorization of Section 8683
of the Streets and Highways Code of the State of California.
13. ASSESSMENT DISTRICT FUNDS. The Finance Director is hereby authorized at
this time, if not previously done, to establish the following funds as necessary for the payment of
costs and expenses and administration of the proceedings for this Assessment District:
A. IMPROVEMENT FUND: All monies received from cash collections shall be
placed into the Improvement Fund.
6. REDEMPTION FUND: All monies received from the payment of
assessments shall be placed in the Redemption Fund.
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Page 8 of Resolution No. 2003-244
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For particulars as to the administration and handling of the Funds, the specific terms and
conditions shall be set forth in a Bond Indenture to be approved by the subsequent adoption of a
Resolution Authorizing the Issuance of Bonds.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the
, 2003 by the following vote, to wit: 2ity of Carlsbad on the 16th day of SEPTEMBER
4YES: Council Members Lewis, Finnm Kulchin, Hall, Packard
UOES: None
4BSENT: None
4TTEST:
@&.
LORRAINE M. W&D, City Clerk
Page 9 of Resolution No. 2003-244
(SEAL)
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EXHIBIT A
DESCRIPTION OF IMPROVEMENTS
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 no1
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
Acq&ition/Financing Agreement.
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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 Fees
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:
- 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.
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EXHIBIT B
CE RTI FlCATE 0 F TABU LATlO N OFFICIAL
AND STATEMENT OF ASSESSMENT BALLOTS SUBMllTED
STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO
CITY OF CARLSBAD )
) ss.
The undersigned, the duly authorized tabulation official appointed by the City Council of
the City of Carlsbad, DOES HEREBY CERTIFY that pursuant to the provisions of Article
XlllD of the Constitution of the State of California and the Proposition‘ 218 Omnibus
Implementation Act (Government Code Section 53750 and following), I did tabulate the
assessment ballots timely submitted in the assessment ballot proceedings pertaining to
Assessment District No. 2003-01 (College Boulevard and Cannon Road East).
I FURTHER CERTIFY that this Statement of Assessment Ballots Received shows the
assessment ballots submitted in favor of the assessment and the assessment ballots
submitted in opposition to the assessment, each total weighted according to the financial
obligation of the affected properties for which the assessment ballots were submitted.
Assessment ballots received in favor of
the proposed assessment: 3
Assessment ballots received
opposition to the proposed assessment: 1 0
This certification is executed this 17th n day of SEPT. , 2003 in Carlsbad,
California. *m
f the City of Carlsbad,
as the T ulation Official 9”
EXHIBIT 4
RESOLUTION NO. 2003- 2b5
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RESOLUTION NO. 2003-245
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROVING THE FORM OF THE
FIRST AMENDMENT TO THE ACQUISITION/FINANCING
AGREEMENT AND SPECIAL ASSESSMENT DISTRICT
DISCLOSURE AGREEMENT FOR ASSESSMENT DISTRICT NO.
2003-01 (COLLEGE BOULEVARD AND CANNON ROAD EAST).
WHEREAS, the City Council of the City of Carlsbad, California, pursuant to the provisions
3f the Division 12 of the Streets and Highways Code of the State of California (the Municipal
Improvement Act of 191 3) (the "Improvement Act") has undertaken proceedings to form and has
formed an Assessment District for the purpose of financing the acquisition or construction of
Zertain works of improvement, together with appurtenances, such special assessment district
known and designated as Assessment District No. 2003-01 (College Boulevard and Cannon
Road East) (the "Assessment District"); and
WHEREAS, the City Council did previously approve an Acquisition/Financing Agreement
(the "Acquisition/Financing Agreement") made and entered into December 11, 2002 by and
between the City of Carlsbad and Calavera Hills II LLC (the "Developer") to establish the terms
and conditions upon which the Improvements (as defined in the Acquisition/Financing Agreement)
would be acquired by the City; and
WHEREAS, the City and the Developer desire to amend the Acquisition/Financing
Agreement by entering into the First Amendment to the Acquisition/Financing Agreement,
the form of which has been presented to the City Council (the "First Amendment"); and
WHEREAS, the Developer requested that the assessments be permitted to pass-through
to the purchasers of individual lots within the Assessment District; and
WHEREAS, the City Council has approved the pass-through of such assessments subject
to the approval by the City Council of a disclosure program as required by paragraph 16 of the
City Council's Policy 33; and
WHEREAS, the City and the Developer desire to enter into a Special Assessment District
Disclosure Agreement, the form of which has been presented to the City Council (the "Disclosure
Agreement"), to establish such a disclosure program.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
1. The above recitals are all true and correct.
2. The form of First Amendment to the Acquisition/Financing Agreement, herewith
submitted, is approved substantially in the form submitted. The Mayor is hereby authorized to
execute the final form of such agreement on behalf of the City. The City Manager, subject to the
review of the City Attorney and Bond Counsel, is authorized to approve changes in such
agreement deemed to be in the best interests of the City, approval of such changes to be
evidenced by the execution of such agreement.
3. The form of Disclosure Agreement, herewith submitted, is approved substantially in
the form submitted. The Mayor is hereby authorized to execute the final form of such agreement
on behalf of the City. The City Manager, subject to the review of the City Attorney and Bond
Counsel, is authorized to approve changes in such agreement deemed to be in the best interests
of the City, approval of such changes to be evidenced by the execution of such agreement.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the
City of Carlsbad on the 16th day of SEPTEMBER , 2003 by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Kulchin, Hall, Packard
NOES: None
CLAUDE A. LwyMwd(
ATTEST:
(SEAL)
Page 2 of Resolution No. 2003-245
EXHIBIT 5
FIRST AMENDMENT TO
ACQUISITION/FINANCING
AGREEMENT
a7
FIRST AMENDMENT TO ACQUISITION/FINANCING AGREEMENT
This FIRST AMENDMENT TO ACQUISITIONRINANCING AGREEMENT
(“First Amendment”) by and between the CITY OF CARLSBAD, a municipal corporation duly
organized and validly existing under the Constitution and laws of the State of California (the
“City”), and CALAVERA HILLS 11, LLC, a California limited liability company (the
“Developer”), is made and entered into this 1 6th day of September, 2003.
RECITALS
WHEREAS, City and Developer entered into that certain AcquisitiodFinancing
Agreement dated December 1 1,2002 (the “Agreement”); and
WHEREAS, pursuant to the Agreement, City and Developer have commenced
proceedings to form Assessment District No. 2003-01 (College Boulevard and Cannon Road
East) (the “Financing District”); and
WHEREAS, City and Developer desire to amend certain provisions of the
Agreement in order to implement the Financing District, as set forth in this First Amendment.
NOW, THEREFORE, it is mutually agreed between the respective parties as
follows:
1. Recitals. The above recitals are all true and correct.
2. Definitions. Capitalized terms not otherwise defined in this First
Amendment shall have the meanings described to them in the Agreement.
3. Amendments.
(a) The first paragraph of Section 5 is hereto amended to read as
follows:
“SECTION 5. Eligibility of Payment of the Base Increment or Retained Increment. Once
an Improvement is substantially complete, then such Improvement shall be eligible for payment
of the Base Increment of the Purchase Price (as defined in Section 7 below). For purposes of this
Agreement, an Improvement shall be deemed “substantially complete” when construction or
work with respect to the Improvement has progressed to the point where it is sufficiently
complete in the judgment of the City Engineer of the City or his or her designee (the “City
Engineer”) so that the Improvement is open to the public or otherwise could be opened to the
public but for the fact that such opening has been withheld or delayed solely by the City. &
Immovement may be deemed bv the City Engineer to be “substantiallv complete” pursuant to the
preceding sentence even though such Improvement is subject to the completion of a punch list of
items before such Improvement would be elizible for acceptance bv the City.”
(b) The first paragraph of Section 7(a) of the Agreement is hereby
amended to read as follows:
911 1/03 9009. I4 H&O: #?286 v3
“(a) acquired from Developer (the ”Purchase Price”) shall, as to each such Improvement, be
determined by City in accordance with the provisions of this Section. The Purchase Price shall
equal the lesser of the actual cost or the value of the Improvement; provided, however, if the
Financing District is an assessment district, the value of an Improvement shall equal the
aggregate special benefit received by the Property from the Improvement as determined by the
assessment engineer retained by the City and shown in the final assessment engineer’s report as
for the Financing District as such final engineer’s reDort may be
amended prior to the issuance of Bonds for the Financing District to reflect adjustments to
assessment lien amounts on specific prouerties made uursuant to Section 3 1 hereof.”
Amount of Purchase Price. The amount to be paid by City for the Improvements to be
(c) following sentence at the end of such subsection:
Subsection 7(a) of the Agreement is hereby amended to add the
“The amounts in Sections 7(a)(v). (vi) and (viii) are straight Dercentage amounts
and the Develouer need not provide seuarate cost and payment iustifications for
those amounts.”
(d) The Agreement is hereby amended to add new Section 3 1 as
follows:
“SECTION 3 1. Adiustment of Lien Amount. The Darties acknowledge that the
presence of assessment liens on certain properties could affect the feasibility of
the use of such properties for certain purposes. Developer shall have one
opuortunitv to discharge the lien amount for any such urouertv or uroperties
within each benefit zone of the Financing District as such Developer mav elect by
ameeing to a reduction in the purchase price for the Improvements for which such
property or uroperties is being assessed. Any discharge of a lien pursuant to this
Section 3 1 must be comdeted not less than 120 calendar davs prior to the
estimated date of issuance of the bonds that would otherwise be secured bv such
lien or such later date apuroved bv the Finance Director of the Citv. Nothing in
this Section shall prohibit any property owner from mepaying the assessment on
such owner’s propertv within the Financing District uursuant to the applicable
Financin g District law. ”
(e) The Agreement is hereby amended to add new Section 32 as
follows:
“SECTION 32. Development Rights. Developer acknowledges formation of the
Financing District and construction of the Improvements does not. in and of itself,
vest any rights to the then existing land use approvals for the propertv to be
assessed for such Improvements or to any particular level. twe. or intensity of
develoDment or use. Developer hereby waives on its behalf and on behalf of its
successors and assi-gns any cause of action against the Citv at law or in equity
including, but not limited to. taking or damaging of prouerty. for reassessment of
proDerty or denial of any right Drotected by USC Section 1983 which might be
applicable to the properties to be assessed and asserting the Financing District and
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construction of the Immovements vests rikts to existing land use aDprovals or to
4. Counterparts. This First Amendment may be executed in counterparts,
each of which shall be deemed an original.
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5. Authority Signatories. Each signatory of a party hereto represents and warrants to the
other party that it has legal authority, capacity and direction from the principal to enter into this
First Amendment, and that all resolutions and/or other actions have been taken so as to enable
such party to enter into this First Amendment.
EXECUTED BY AND BETWEEN the parties hereto on the day and year first
above written.
ATTEST:
City bf Cdlsbad
State of California
“DEVELOPER’
CALAVERA HILLS I1 LLC, a California limited liability
company
By: McMillin Companies LLC, a Delaware limited
liability company,
Its: Manager
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EXHIBIT 6
SPECIAL ASSESSMENT DISTRICT
DISCLOSURE AGREEMENT
Recording Requested By
and when Recorded Mail to:
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Attn: City Clerk
SPECIAL, ASSESSMENT DISTRICT
DISCLOSURE AGREEMENT
This Agreement entered into as of this 1 6th day of September, 2003 by and between the City
of Carlsbad, a municipal corporation (“City”) and Cal El LLC, a Delaware 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 PARTlES
AS FOLLOWS:
Section 1. The above recitals are all true and correct.
9/11/03 9009.14
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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.
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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 Ofice
of the County Recorder upon its execution.
Section 6. Developer shall indemnifL 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*, 2003.
Cal El LLC
A Delaware lipd liability cornp R
By:
Its:
By:
Its:
(All signatures must be notarized)
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,a f' ~~\~ &%dv& , On -=Z; y*x~b* 4 203 before me, bvay L
notary public in and for ;aid State, personally appeared
personally known to me (erprrmed TO me on the basis ot satisktory evideifce) to be the person(s)
whose name(s) &/are subscribed to the withm instrument and acknowledged to me thatke/ske/they
executed the same in hdhedtheir authorized capacityties), and that byki4fkerhheir signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
WITNESS my hand and official seal.
Signature
STATE OF CALlFORNLA 1
COUNTY OF 1
) ss.
On before me, ,a notary public in and for said State, personally appeared 9
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
WITNESS my hand and official seal.
Signature (Seal)
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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 21,1990
AS FILE NO. 90-5 18471 OF OFFICIAL RECORDS.
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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 from 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 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
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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: #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 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
163 5 Faraday Avenue
Carlsbad, CA 92008
8/26/03 9009.14
H&O: #7222 v4 9
EXHIBIT 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
EXHBIT 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: #I222 v4 11
Recording Requested By
and when Recorded Mail to:
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Attn: City Clerk
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 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.
9/11/03 9009.14
H&O: #I0357 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 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
Ill
8/26/03 9009.14
mo: m22 ~4 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 indemnifL 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.
es hereto have executed this Agreement on the /% ;f%- ay
McMillin Montara, LLC
a Delaware limited liability company
By: McMillin Management Services, LP
a California liability partnership
Its: Manager
Construction Services, Inc
By:
Its:
By:
Its:
(All signatures must be notarized)
8/26/03 9009.14
H&O: #7222 v4 3
STATE OF CALIFORNIA 1
COUNTY OF )
) ss.
On before me, a
notary public in and for said State, personally appeared ,
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) idare subscribed to the withm instrument and acknowledged to me that he/she/they
executed the same in hishedtheir authorized capacity(ies), and that by hishedtheir signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
WITNESS my hand and official seal.
Signature (Seal)
STATE OF CALIFORNIA 1
COUNTY OF )
) ss .
On before me, ,a notary public in and for said State, personally appeared Y
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) idare subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
WITNESS my hand and official seal.
Signature (Seal)
8/26/03 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:
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
H&O: ti7222 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 ($ ). 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
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.
Ill
Ill
Ill
Ill
Ill
Ill
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
1635 Faraday Avenue
Carlsbad, CA 92008
8/26/03 9009.14
H&O: #7222 v4 9
EXHIBIT 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: #I222 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
Recording Requested By
and when Recorded Mail to:
City of Carlsbad
1200 Carlsbad Village Drive
Carlsbad, CA 92008
Attn: City Clerk
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 IT, 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 PARTIES
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 perform under the provisions of this
Agreement.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the /&f$
Of+ ,2002.
CALAVERA HILLS II, a California limited
liability company
By: McMillin Companies, LLC, a Delaware
By:
Its:
By:
Its:
(All signatures must be notarized)
8/26/03 9009.14
H&O: #7222 v4 3
STATE OF CALIFORNLA 1
COUNTY OF )
1 ss .
on b-fore m
notary public in and for said State, personally appeared
. '9 ,a
? personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) idare subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in hishedtheir authorized capacity(ies), and that by hdhedtheir signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument.
WITNESS my hand and official seal.
Signature
STATE OF CALJFORNIA )
COUNTY OF 1
1 ss.
On before me, ,a
notary public in and for said State, personally appeared 9 personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s)
whose name(s) idare subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in hidherheir authorized capacitflies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the
instrument .
WITNESS my hand and official seal.
Signature (Seal)
8/26/03 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 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, INCLUSNE, 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 CAlUSBAD 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.
LOT 1,2 AND 4 OF CARLSBAD TRACT NO. 00-02 CALAVERA HILLS PHASE IT, 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 l"OR SUBDIVISION NO. MS 02-09 CALAVERA HILLS IT
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 9009.14
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 REAT, 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 ($ ). 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 fi-om 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: At7222 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: #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. I4
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. I4
H&O: #7222 v4 9
EXHIBIT 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. I4
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
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H&O: #7222 v4 11
EXHIBIT 7
FINAL ENGINEER’S REPORT
dated July 31,2003
FINAL
ENGINEER’S REPORT.
FOR
ASSESSMENT DISTRICT NO. 2003-01
(COLLEGE BOULEVARD AND CANNON ROAD EAST)
CITY OF CARLSBAD
SAN DIEGO COUNTY
CALIFORNIA
July 31, 2003
Prepared By:
Galen N. Peterson, Consulting Engineer
San Diego, CA
(858) 487-7000
45
Assessment District No. 2003-01
(College Boulevard and Cannon Road East)
TABLE OF CONTENTS
SECTION PAGE
INTRODUCTION AND CERTIFICATIONS i
PART I Plans and Specifications 1
PART II Cost Estimates 3
PART 111 Assessment Roll and Method of Assessment Spread 5
PART IV Annual Administrative Assessment 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 I1 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: CITY COUNCIL
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 I91 3, 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 XI1 ID”), 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. 2003-1 97
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
J&L l! 2003
ASSESSMENT ENGINEER
CITY OF CARLSBAD
COUNTY OF SAN DIEGO
STATE OF CALIFORNIA
Preliminary approval by the CITY COUNCIL of the CITY OF CARLSBAD, SAN
the /Faday of
UORRA NE M. WOOD, CITY CLERK-
CITYJ CARLSBAD
ST OF CALIFORNIA
Final 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
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 StreetdCity 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:
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.
v2A-Prepared by Galen N. Peterson ' July 31, 2003 50
City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 2
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
___
v2A-Prepared by Galen N. Peterson July 31, 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.
v2A-Prepared by Galen N. Peterson July 31, 2003 5J
City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 4
EXHIBIT 1
CITY OF CARLSBAD
ASSESSMENT DISTRICT NO. 2003-01
(COLLEGE BOULEVARD AND CANNON ROAD EAST)
COST ESTIMATE AND TOTAL BOND SIZE
Preliminary
Assessment
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
$ 1.317.103
Subtotal of Construction $ 21,280,152
1. Construction Cost of Improvements (See Table 5) (1)
g. Basin BJB and Storm Drain Line BJA Improvements
Adjustment for Dry Utilities in excess of 5% of Bond Amount$
Subtotal of Adjusted Construction $
$
a. City Administration $
b. Assessment Engineering $
c. Bidding Procedures and Audit of Acquisition Costs $
d. Bond Counsel $
e. Appraisal $
f. Absorption Consultant $
g. Financial Advisor $
h. Official StatemenffBond Printing $
i. FiscaVPaying Agent $
j. Underwriters Counsel $
k. First 2 years additional Annual Administration Cost $
I. Previous City funded Engineering Costs $
2. Land & Right-of-way (included in item 1)
3. Cost of Formation and Issuance (first series of bonds)
(494.580)
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
m. 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) $ (2,078,9981
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
Confirmed
Assessment
$ 2,253,289
$ 4,523,233
$ 3,154,460
$ 1,379,057
$ 5,336,934
$ 3,123,955
$ 1.361.536
$ 21,132,464
$ (707,694)
$ 20,424,770
$ -
$ 100,000
$ 65,000
$ 90,000
$ 68,000
$ 40,000
$ 25,000
$ 50,000
$ 30,000
$ 15,000
$ 35,000
$ 40,000
$ 170,963
$ 500,000
$ 1,228,963
$ 21,653,733
.$ -
$ (2.026.631 )
$ 19,627,102
$
$ 1,670,392
$ 417,598
$ 2,147,646
$ 23,862,738
(2) includes contribution for public, non-profit, HOA parcels, Village Y and parcels located outside of the assessment district
v2A-Prepared by Galen N. Peterson July 31, 2003 53
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 July 15, 2003 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. 2003-197, 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;
- - ___
July 31, 2003 5l v2A-Prepared by Galen N. Peterson
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. 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.
2. 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.
3. The subdivisions and parcels of land, the numbers therein as shown on
the respective Assessment Diagram as attached hereto, correspond with
the numbers as appearing on the Assessment Roll as contained herein.
4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with
Division 10 of the Streets and Highways Code of the State of
California (the "Improvement Bond Act of 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
v2A-Prepared by Galen N. Peterson July 31, 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 (I) $ 20,785,572 $ 20,424,770
Formation and Issuance Costs $ 1,228,963 $ 1,228,963
Less Special Benefit Contributions $ (2,078,998) $ (2,026,631)
Less Interest Earned $ -$ -
Capitalized Interest and Financing Costs $ 4,302,198 $ 4,235,636
Total $ 24,237,735 $ 23,862,738
$ 13,018,725 $ 12,826,845 Subtotal Benefit Area No. 1 (2)
Subtotal Benefit Area No. 2 (2) I I ,219,OI 0 $ 11,035,893
Total Assessment (2) $ 24,237,735 $ 23,862,738
For particulars as to the individual assessments and their descriptions,
reference is made to Exhibit "AI attached hereto.
(1) 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.
(2) 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 to be acquired and not reimbursed from bond
proceeds or, if the purchase price for all improvements has beet? 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.
v2A-Prepared by Galen N. Peterson July 31, 2003 5b
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 $ 261,220
Improvements
College Boulevard, Reach B, Street $ 112,805 Improvements
Cannon Road, Reach 3, Street $ 266.369 - - Improvements
Total General Benefit $ 640,394
Special Benefit - Parcels Owned by Public Calavera Hills II, Robertson Ranch Parcels located
Aaencies. Non-Profit Oraanizations. Home Benefit Area East, Benefit Area outside of the Total
Owners Association and parcels located No. 1 No. 2 Assessment
inside or outside the Assessment District
Two Community Facilities $ 354,424 $
District
boundary
$ 354,424
fu
Community Recreation $ -$ 5,947 $ 5,947
Public Park $ -$ -$ 141,798 $ 141,798
Elementary School $ -$ -$ 380,915 $ 380,915
RV Storage (Robertson) $ -$ 14,053 $ -$ 14,053
Home Owners Association (HOA) $ 41,719 $ 524 $ -$ 42,243
Village Y (Assessment No. 9) inside A.D. $ 1.087.250 $ $ $ 1.087.250
Total Special Benefit (1) $ 1,483,393 $ 20,524 $ 522,713
Total Developer Contributions (1)
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.
6. The Method and Formula of Spread of Assessment is as set forth in
Exhibit "A', which is attached hereto, referenced and so incorporated
$ 2,026,631
$ 2,667,025
v2A-Prepared by Galen N. Peterson July 31, 2003 57
City of Carlsbad -Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 9
Assessment
Number
1
2
3
4
5
6
7
8
9
10
Exhibit 2
Assessment Roll
As Finally Land Use As Preliminarily
Approved
Single Family Attached Development, Village E-1 $ 1,978,746
Community Facility, Village H (Paid Off) $
Single Family Development, Village K $ 1,455,735
Single Family Development, Village L-2 $ 252,112
Single Family Development, Village R $ 85,927 Single Family Attached Development, Village U $ 2,929,422
Single Family Development, Village W $ 3,234,728
Single Family Development, Village X $ 3,082,055
Multi-Family DevelopmentICommunity
Facilities, Village Y (Paid Off)
Robertson Ranch East Development,
Mixed Use $ 1 1.21 9.01 0
Total $ 24,237,735
$
Approved and
Confirmed
$ 1,930,813
$
$ 1,407,257
$ 243,633
$ 83,546
$ 2,899,859
$ 3,209,194
$ 3,052,544
$
$ 11,035,893
$ 23,862,738
v2A-Prepared by Galen N. Peterson July 31, 2003 58
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.
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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
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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-1 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
E3 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-1 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
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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 roadway 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
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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.
A-6 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, undewriting,
v2A-Prepared by Galen N. Peterson July 31, 2003 63
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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.
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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
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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.
Sinqle 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.
Sinqle 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
1998 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%.
v2A-Prepared by Galen N. Peterson July 31, 2003
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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 AD7 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 Cy 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, 11 A, 1 1 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
v2A-Prepared by Galen N. Peterson July 31, 2003 6’7
City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 19
Single Family Attached
Non Residential
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.
250 gallons / day
2,300 gallons / 10,000 SF /day
D-3 Proportionate Special Benefit of Utility Improvements
Single Family Attached
Non Residential
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.
0.5 EDU / Unit
4.2 EDU / 10,000 SF
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: .
Land Use I Potable Water and Sewer Usage 1 1 Single Family Detached I 550 gallons / day
A single family detached unit has been assigned an equivalent dwelling
unit (EDU) weight of 1.0 EDU. By converting the gallons per day to EDU
we arrive at the following table:
I Land Use 1 Potable Water and Sewer EDU
1 Single Family Detached I 1.0 EDU / Unit
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 7.48/365). 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.
-~
v2A-Prepared by Galen N. Peterson July 31, 2003 68
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City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page ZO
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.
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City of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 21
Land Use Category
Single Family
Single Family
Apartment (Affordable
Detached
Attached
Housina)
Summary of Special Benefit Factors
Roadway Improvements
Primary Trip Adjusted
ADT % Applied ’ ADT
10 I DU - 10 I DU
81DU - 8lDU
61DU - 61DU
School
Com m u n ity Facility
(Day Care)
Homeowners
Association Rec Areas
Community (Regional) Park
60 I AC 57% 34.2 I AC
28% 97.4 I AC
1.25 I AC 5lAC 25%
2o AC 66% 13.2 I AC
80 I 1,000
SF
EDUs I
1.OlDU I
0.5 I DU
0.5 I DU
4.2 I 1Oksf
4.2 I 10ksf
4.2 11Oksf
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
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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.
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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
v2A-Prepared by Galen N. Peterson July 31, 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.
v2A-Prepared by Galen N. Peterson July 31, 2003 73
.. . __ .. . :-
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.
Dated: 3/ *day of \/UL,V , 2003
R.C.E. No. 18,364 (Expires 06/2005)
ASSESSMENT ENGINEER
CITY OF CARLSBAD
SAN DIEGO COUNTY
STATE OF CALIFORNIA
v2A-Prepared by Galen N. Peterson ' July 31, 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 Assessm
filed in my office on the
2003.
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 pre
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 I
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
-Prepared by Galen N. Peterson
City Of Carlsbad - Assessment District No. 2003-01 (College Boulevard and Cannon Road East) Page 27
Part IV
Annual Administrative Assessment
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.
___~
v2A-Prepared by Galen N. Peterson July 31, 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 111. 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.
v2A-Prepared by Galen N. Peterson July 31, 2003
I! h
L b P
c E-
L x
b c
c
b i
78
79
1 t
3 J
83
5. h 3 8
84
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 I1 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, asphalf 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 AcquisitionlFinancing Agreement.
College Boulevard from Cannon Road to south end of Calavera Hills I1 development (Reach B
cents 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, proteytion 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.
v2A-Prepared by Galen N. Peterson July 31, 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 Fees 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 6 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, averial 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 eligibte to be used to finance the
acquisition of the Improvements.
gb v2A-Prepared by Galen N. Peterson July 31, 2003
City of Carlsbad - Assessment District No. 2003-01 (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 OF STREETS/ 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 UNDERSIGNEB STATES AND CERTIFIES 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 2 2 -day of JUL,~ , 2003, at City of Carlsbad,
California.
.Idd
Superintendent of Streets / City Engineer
Citv of Carlsbad
By:
Superintendent of Streets / City Engineer
g’i Prepared by Galen N. Peterson
CERTIFICATE OF COMPLIANCE
WITH NOTICE REQUIREMENTS
CITY OF CARLSBAD
(COLLEGE BOULEVARD AND CANNON ROAD EAST)
ASSESSMENT DISTRICT NO. 2003-01
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CARLSBAD
LORRAINE M. WOOD , under penalty of perjury, CERTIFIES as follows:
The undersigned is now, and at all times mentioned herein was, the duly qualified and acting
CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA, and as such, accomplished or
caused the accomplishment of the following notice requirements in connection with the
referenced Assessment District, as noted:
RECORDATION
The original of the ASSESSMENT ROLL AN
appointed Superintendent of Streets on the & a day of 5c,p&,h PJ , 2003.
A copy of the ASSESSMENT DIAGRAM was filed in the Office of the County Recorder, in
Book of Assessment a d Community Facilities District Maps, Book 7.7 , Page(s) 49 ,onthe 17 f!! dayof 5t=0&~~c~ , 2003, as Document No. 2 ~b 3://'
DIAGRAM was recorded in the Office of the
I 0582
A copy of the NOTICE OF ASSESSMENT was recorded in the Office of the County Recorder
on the ./ 7Jhday of 5 epk-bgv , 2003, as Document No. 2. uu 3- t/ # 45 7 7
PUBLICATION
The STATEMENT OF ASSESSMENT was published in the
pursuant to Section 6066 of the Government
Code of the State of California once a week for two successive weeks, with at least five days
intervening between publications; said publications being accomplished on the day of
NORTH COUNTY TIMES
22nd
September ,2003, and on the 29th day of September , 2003.
MAILING
The STATEMENT OF ASSESSMENT was mailed, postage prepaid, to each person owning
property in the Assessment District at the last known address as it appears on the tax rolls of the
County, or on file in the office of Galen N. Peterson Consulting Engineer, the Assessment
Engineer, which Notice designated the property belonging to each such owner and contained a
statement of the amount to be assessed; said mailing being accomplished on the ! 7 {h day of 5e,,jCP*he r' , 2003.
Certificate of Compliance
1
EXECUTED this 22nd day of SEPTEMBER - ,2003, at Carlsbad, California.
/ /]
STATE’OF CALIFORNIA
Certificate of Compliance
2
ASSESSMENT BALLOT
City of Carlsbad
Assessment District No. 2003-01
(College Boulevard and Cannon Road East)
This assessment ballot is for the use of the owner of the parcel identified below (the
“Identified Parcel”) which is located within the boundaries of the proposed City of
Carlsbad Assessment District No. 2003-01 (College Boulevard and Cannon Road East)
(“Assessment District”). Please advise the City Clerk of the City of Carlsbad at (760)
434-2808 if you are not the owner of the Identified Parcel.
This assessment ballot may be completed by the owner of the Identified Parcel or a
legally authorized representative of such owner to express such owner’s support for or
opposition to the assessment proposed to be levied on the Identified Parcel for the
Assessment District. The amount of the proposed assessment is set forth below.
THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS
ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS
ASSESSMENT BALLOT. You must follow these instructions in completing this
assessment ballot to insure that this assessment ballot will be accepted.
Certification of Voter:
I certify under penalty of perjury that I am the owner of the Identified Parcel or a
___-__I___ __ - ._ Do you support or oppose the levy of the assessment set
forth below on the Identified Parcel? r
Identified Parcels: Village E-I
Cal E-I, LLC
c/o Brookfield Homes
Attn: Sandra Moore, CFO
12865 Pointe Del Mar
Del Mar, CA 92014
APN 168-041 -08
Proposed assessment:
$1,978,746.00
ASSESSMENT BALLOT
Identified Parcels: Villages K, L-2 and R
McMillin Montara, LLC
c/o McMillin Homes
Attn: Diane Erickson
2727 Hoover Avenue
National City, CA 91950
APNs 168-31 1-01, 168-280-49 & 168-292-29
City of Carlsbad
Assessment District No. 2003-01
(College Boulevard and Cannon Road East)
Proposed assessment:
$1,793,774.00
This assessment ballot is for the use of the owner of the parcel identified below (the
"Identified Parcel") which is located within the boundaries of the proposed City of
Carlsbad Assessment District No. 2003-01 (College Boulevard and Cannon Road East)
("Assessment District"). Please advise the City Clerk of the City of Carlsbad at (760)
434-2808 if you are not the owner of the Identified Parcel.
This assessment ballot may be completed by the owner of the Identified Parcel or a
legaiiy authorized representative of such owner to express such owner's support for or
opposition to the assessment proposed to be levied on the Identified Parcel for the
Assessment District. The amount of the proposed assessment is set forth below.
THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS
ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS
ASSESSMENT BALLOT. You must follow these instructions in completing this
assessment ballot to insure that this assessment ballot will be accepted.
Certification of Voter:
I certify under penalty of perjury that I am the owner of the Identified Parcel or a
representative of such owner and a complete this assessment
ballot on behalf of such owner. BLl: MCH.II$.U M~M~UC~J LLC
A Q@lw-c \.h-i,&,,&, hF7 I3 I &A,I\:n, IVImAeCn?ehk5ew.~,L: 'I A~~~~, \l&\i? peNa,p
Y'14tQl.L714y 0 &&p"firmo& z€k" (5+m4( gemA)trrr- -_I - I_ - I - I_
53. MICJn(p&-L 8 -cvzk &4,lLrJ c~.~LuL.+:o4sc:
I Do you support or oppose the levy of the assessment set I SUPPORT m/l
forth below on the Identified Parcel? OPPOSE 0
ASSESSMENT BALLOT
Identified Parcels: APNs and Legal
Description shown on attached Exhibit “A”
Calavera Hills II LLC
c/o McMillin Communities
Attn: Brian Milich
2727 Hoover Avenue
National City, CA 91950
City of Carlsbad
Assessment District No. 2003-01
(College Boulevard and Cannon Road East)
Proposed assessment:
$20,465,215.00
This assessment ballot is for the use of the owner of the parcel identified below (the
“Identified Parcel”) which is located within the boundaries of the proposed City of
Carlsbad Assessment District No. 2003-01 (College Boulevard and Cannon Road East)
(“Assessment District”). Please advise the City Clerk of the City of Carlsbad at (760)
434-2808 if you are not the owner of the Identified Parcel.
This assessment ballot may be completed by the owner of the Identified Parcel or a
legally authorized representative of such owner to express such owner’s support for or
opposition to the assessment proposed to be levied on the Identified Parcel for the
Assessment District. The amount of the proposed assessment is set forth below.
THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS
ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS
ASSESSMENT BALLOT. You must follow these instructions in completing this
assessment ballot to insure that this assessment ballot will be accepted.
Certification of Voter:
I certify under penalty of perjury that I am the owner of the Identified Parcel or a
representative of such owner and am legally authorized to complete this assessment
ballot on behalf of such owner. CAUVW 4IU5 14
- - - -- _I - . _. - . __ -- Do you support or oppose the levy of the
forth below on the Identified Parcel? r- OPPOSE 0
EXHIBIT “A”
IDENTIFIED PARCELS
Assessor Parcel Number
Village H: 167-1 01-1 9
Village U: 168-3 10-04
Village W: 168-3 10-02
Village X: 168-3 10-01
Robertson Ranch: 168-050-47
168-050-48
Lend Description
Village Y (CF Parcel): PARCEL 2 OF PARCEL MAP NO. 19252, IN THE CITY OF
CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, FILED IN THE
OFFICES OF THE COUNTY RECORDER OF SANDIEGO COUNTY, JUNE 5,2003 AS
FILE NO. 2003-0665946 OF OFFICIAL RECORDS.
College/Cannon Assessment College/Cannon Assessment District No. 2003District No. 2003--0101FormationFormation
!!Dec. 2001Dec. 2001!!Dec. 2002Dec. 2002••Authorized to begin work on Authorized to begin work on DistrictDistrict••Approved Acquisition AgreementApproved Acquisition Agreement••Allowed development to proceed while Allowed development to proceed while District was being formedDistrict was being formed••Agreed to:Agreed to:••Acquire the road improvementsAcquire the road improvements••Reimburse the developer from the District, Reimburse the developer from the District, ••When, and if, the District was approved by When, and if, the District was approved by CouncilCouncilHistoryHistory
PurposePurpose!!Form the DistrictForm the District""Staff reportStaff report""Public hearingPublic hearing""Count the ballotsCount the ballots""Approve the DistrictApprove the District!!Approve changes to the Acquisition Approve changes to the Acquisition AgreementAgreement!!Approve the Disclosure ProgramApprove the Disclosure Program
AgendaAgenda1.1.Staff ReportStaff Report2.2.Public HearingPublic Hearing3.3.Council Questions and CommentsCouncil Questions and Comments4.4.Count the ballots and report (City Clerk)Count the ballots and report (City Clerk)5.5.Council ActionCouncil Action##If in favor; adopt the Resolutions If in favor; adopt the Resolutions ##If not in favor; direct staff to abandon processIf not in favor; direct staff to abandon process
Compliance with Policy 33Compliance with Policy 33!!Reviewed by Committee and found to Reviewed by Committee and found to generally comply with requirementsgenerally comply with requirements!!Two Areas of Note:Two Areas of Note:""Stage of Development ProjectStage of Development Project""PassPass--through of Assessmentthrough of Assessment
Stage of Development ProjectStage of Development Project!!Policy requires land use entitlements, Policy requires land use entitlements, unless findings can be made unless findings can be made !!Robertson Ranch East does not have all Robertson Ranch East does not have all entitlementsentitlements!!Findings required:Findings required:""Consistent with the General PlanConsistent with the General Plan""Improvements required in the public Improvements required in the public interest interest
PassPass--Through of AssessmentThrough of Assessment!!PassPass--Through allowed at the Through allowed at the City’s sole City’s sole discretiondiscretion••Does not allow pass through for residential Does not allow pass through for residential CFD’sCFD’s!!Acquisition Agreement limits assessment to no Acquisition Agreement limits assessment to no more than 1.8% total tax ratemore than 1.8% total tax rate!!Council has approved passCouncil has approved pass--through in other through in other Assessment DistrictsAssessment Districts••Alga Road Alga Road ••Rancho CarrilloRancho Carrillo
Galen PetersonGalen PetersonAssessment EngineerAssessment Engineer
College Blvd – Reaches B,CCannon Road – Reach 3Calavera Hills IIRobertson Ranch East
Robertson Ranch Assessment District 2003-01
Proposed Residential Units in Proposed Residential Units in the Assessment Districtthe Assessment District!Calavera Hills II DevelopmentSingle Family Detached Units 331Single Family Attached Condo Units 252Multi-Family Affordable Apts 106!Robertson Ranch East DevelopmentSingle Family Detached Units 425Multi-Family Affordable Apts 75Total Units 1189
Final Engineer’s Report Final Engineer’s Report !!Plans and SpecificationsPlans and Specifications!!Cost Estimate of ProjectCost Estimate of Project!!Proposed Assessment to all ParcelsProposed Assessment to all Parcels!!Maximum Annual Administrative AssessmentMaximum Annual Administrative Assessment!!Map of the Boundaries of District and parcels Map of the Boundaries of District and parcels assessedassessed!!Description of the ImprovementsDescription of the Improvements
Method and Formula of Method and Formula of Assessment SpreadAssessment Spread!!Roadway Core Improvements spread based on ADTRoadway Core Improvements spread based on ADT!!Roadway Frontage Improvements spread to Villages fronting on theRoadway Frontage Improvements spread to Villages fronting on theroadway and then allocated by ADT within the Villageroadway and then allocated by ADT within the Village!!Potable Water and Sewer Improvements spread based on EDU and Potable Water and Sewer Improvements spread based on EDU and limited to Zones of Benefitlimited to Zones of Benefit!!Recycled Water Improvements spread based on the amount of Recycled Water Improvements spread based on the amount of recycled water used and then to the area benefitingrecycled water used and then to the area benefiting!!Dry Utility Improvements spread based on EDU and limited to 5% oDry Utility Improvements spread based on EDU and limited to 5% of f the amount of the bond issuethe amount of the bond issue!!Storm Water Basin BJB and Storm Drain Line BJA Improvements Storm Water Basin BJB and Storm Drain Line BJA Improvements spread based on number of lots and limited to the area draining spread based on number of lots and limited to the area draining to the to the basinbasin!!Cost of Formation, Issuance and Financing Costs spread proCost of Formation, Issuance and Financing Costs spread pro--rata rata based on the total improvement costs to each parcel based on the total improvement costs to each parcel
Construction Cost of Construction Cost of ImprovementsImprovementsCollege Blvd, Reach C, Core Improvements $ 2,253,289College Blvd, Reach C, Frontage Improvements 4,523,233College Blvd, Reach B, Core Improvements 3,154,460College Blvd, Reach B, Frontage Improvements 1,379,057Cannon Road, Reach 3, Core Improvements 5,336,934Cannon Road, Reach 3, Frontage Improvements 3,123,955Basin BJB and Storm Drain Line BJA Improvements 1,361,536Construction Cost of Improvements $21,132,464Less Adjustment for Dry Utilities in excess of 5% <707,694>Net Construction Cost Assessed $20,424,770
Cost Estimate for the ProjectCost Estimate for the Project!!Total Cost of ConstructionTotal Cost of Construction$21,772,858$21,772,858!!Less General Benefit Contribution by DevLess General Benefit Contribution by Dev<640,394><640,394>!!Less cost of Dry Utilities exceeding 5%Less cost of Dry Utilities exceeding 5%<707,694><707,694>Net Construction Cost AssessedNet Construction Cost Assessed$20,424,770$20,424,770!!Cost of Formation and Bond IssuanceCost of Formation and Bond Issuance1,228,9631,228,963!!Less Special Benefit Contribution by DevLess Special Benefit Contribution by Dev<2,026,631><2,026,631>!!Capitalized Interest for one yearCapitalized Interest for one year1,670,3921,670,392!!Bond DiscountBond Discount417,598417,598!!Bond Reserve FundBond Reserve Fund2,147,6462,147,646Total Amount AssessedTotal Amount Assessed$23,862,738$23,862,738
Assessment RollAssessment RollVillageVillageProposed AssessmentProposed AssessmentEE--1 Single Family Attached Development1 Single Family Attached Development$1,930,813$1,930,813H Community Facility (paid by Dev)H Community Facility (paid by Dev)00K Single Family DevelopmentK Single Family Development1,407,257 1,407,257 LL--2 Single Family Development2 Single Family Development243,633243,633R Single Family DevelopmentR Single Family Development83,54683,546U Single Family Attached DevelopmentU Single Family Attached Development2,899,8592,899,859W Single Family DevelopmentW Single Family Development3,209,1943,209,194X Single Family DevelopmentX Single Family Development3,052,5443,052,544Y MultiY Multi--Family Development (paid by Dev)Family Development (paid by Dev)____ 0____ 0CalaveraCalaveraHills II Dev Hills II Dev (First Bond Series)(First Bond Series)12,826,84512,826,845Robertson Ranch East Development Robertson Ranch East Development (Second Bond Series)(Second Bond Series)11,035,89311,035,893Total AssessedTotal Assessed$23,862,738$23,862,738
Assessment per Future UnitAssessment per Future UnitApproxApproxVillageVillageAssessment Assessment Annual CostAnnual Cost(per Unit) (per Unit)(per Unit) (per Unit)EE--1 Single Family Attached Development 1 Single Family Attached Development $16,503 $1,344$16,503 $1,344H Community Facility (paid by Dev)H Community Facility (paid by Dev)0000K Single Family DevelopmentK Single Family Development16,753 1,36516,753 1,365LL--2 Single Family Development2 Single Family Development17,40217,4021,4171,417R Single Family DevelopmentR Single Family Development20,88620,8861,7011,701U Single Family Attached DevelopmentU Single Family Attached Development21,480 1,75021,480 1,750W Single Family DevelopmentW Single Family Development28,15128,1512,2932,293X Single Family DevelopmentX Single Family Development26,54426,5442,1622,162Y MultiY Multi--Family Development (paid by Dev) Family Development (paid by Dev) 0000Robertson Ranch East Development, SFDRobertson Ranch East Development, SFD23,50823,5081,9151,915
ScheduleSchedule!!Council hearing to form Council hearing to form Assessment DistrictAssessment District!!First Bond Sale for Calavera First Bond Sale for Calavera Hills II developmentHills II development!!College Blvd and Cannon Rd College Blvd and Cannon Rd open for trafficopen for traffic!!Second Bond Sale for Second Bond Sale for Robertson Ranch EastRobertson Ranch EastTonightTonightEstimated April ’04 Estimated April ’04 Estimated Estimated Summer’04Summer’04Estimated 2006Estimated 2006
!!Written disclosure to purchaser ofWritten disclosure to purchaser of""Assessment lienAssessment lien""Annual paymentAnnual payment""Term of paymentsTerm of payments!!Provide option to payProvide option to pay--off or passoff or pass--through through (in writing)(in writing)!!Show assessment lien in sales literatureShow assessment lien in sales literature!!Post “Notice of Assessment” in sales Post “Notice of Assessment” in sales officesofficesDisclosure ProgramDisclosure Program
Acquisition AgreementAcquisition Agreement!!First AmendmentFirst Amendment!!Technical clarifications:Technical clarifications:""Definition of “substantially complete”Definition of “substantially complete”""Definition of purchase price for the improvementsDefinition of purchase price for the improvements""Fixed percentages for certain “soft costs”Fixed percentages for certain “soft costs”""Ability to pay off lien through a reduction of the Ability to pay off lien through a reduction of the purchase pricepurchase price""Clarifies that agreement does not vest any rights Clarifies that agreement does not vest any rights to the developerto the developer
Actions RequestedActions Requested1.1.Hold the Public HearingHold the Public Hearing2.2.Council Questions and CommentsCouncil Questions and Comments3.3.Clerk count the ballots and report Clerk count the ballots and report 4.4.Council ActionCouncil Action##If in favor; adopt Resolutions in the agenda If in favor; adopt Resolutions in the agenda billbill##If not in favor; direct staff to abandon If not in favor; direct staff to abandon processprocess
MEMORANDUM
July 22, 2003
FROM: Galen Peterson
TO: Lisa Hildabrand /
David Hauser
Kevin Branca
Lorraine Wood
Warren Diven (Best, Best & Krieger)
ASSESSMENT DISTRICT NO. 2003-01
(COLLEGE BOULEVARD AND CANNON ROAD EAST)
REVISED NOTICE AND ASSESSMENT BALLOT MAILING
I was recently made aware of ownership changes that will occur before the public
hearing on September 16, 2003. As a result, I have revised and mailed out new
Notices and Assessment Ballots.
Enclosed is my new “Certificate of Compliance with Notice and Assessment Ballot
Requirements” and a copy of the three Assessment Ballots mailed today to the
property owners.
Per Warren Diven’s instructions, no ballot was mailed to the owner of Village Y,
Assessment Number 9, since the entire assessment amount will be paid off.
CERTIFICATE OF COMPLIANCE
WITH NOTICE AND ASSESSMENT BALLOT REQUIREMENTS
CITY OF CARLSBAD
(COLLEGE BOULEVARD AND CANNON ROAD EAST)
ASSESSMENT DISTRICT NO. 2003-01
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CARLSBAD
1 ss
The undersigned, under penalty of perjury, CERTIFIES AS FOLLOWS:
The undersigned is now, and at all times mentioned herein was, the duly appointed, qualified and
acting Assessment Engineer to the City Of Carlsbad, California, pertaining to the proceedings
related to the above captioned Assessment District, and as such, certifies that the following
requirements in connection with such captioned Assessment District have been accomplished
and satisfied:
MAILING
The NOTICE OF PUBLIC HEARING AND ASSESSMENT BALLOT PROCEDURE, together
with the assessment ballot package, was mailed to the record owners of all real property ~- proposed to be assessed according to the names and addresses of such owners as the same appear
on the last County Assessment Roll, or at the address as known to the undersigned; such mailing
being accomplished on the 2 2. ~/UL V , 2003, being at least forty-five (45)
days prior to the date set for the final public hearing. (ATTACH A COPY OF THE COMPLETE
NOTICE AND ASSESSMENT BALLOT PACKAGE)
day of
4.i EXECUTED this 2 a day of JuL ,2003, at d&k L 5 California.
ASSESSMENT BALLOT
Do you support or oppose the levy of the assessment set
forth below on the Identified Parcel?
City of Carlsbad
Assessment District N 0.2003-0 I
(College Boulevard and Cannon Road East)
SUPPORT 0
OPPOSE 0
This assessment ballot is for the use of the owner of the parcel identified below (the
“Identified Parcel”) which is located within the boundaries of the proposed City of
Carlsbad Assessment District No. 2003-01 (College Boulevard and Cannon Road East)
(“Assessment District”). Please advise the City Clerk of the City of Carlsbad at (760)
434-2808 if you are not the owner of the Identified Parcel.
Identified Parcels: APNs and Legal
Description shown on attached Exhibit “A’
Calavera Hills II LLC
c/o McMillin Communities
Attn: Brian Milich
2727 Hoover Avenue
National City, CA 91950
This assessment ballot may be completed by the owner of the Identified Parcel or a
legally authorized representative of such owner to express such owner’s support for or
opposition to the assessment proposed to be levied on the Identified Parcel for the
Assessment District. The amount of the proposed assessment is set forth below.
Proposed assessment:
$20,465,215.00
THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS
ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS
ASSESSMENT BALLOT. You must follow these instructions in completing this
assessment ballot to insure that this assessment ballot will be accepted.
Certification of Voter:
I certify under penalty of perjury that I am the owner of the Identified Parcel or a
representative of such owner and am legally authorized to complete this assessment
ballot on behalf of such owner.
Signature of person completing this assessment ballot
EXHIBIT “A”
IDENTIFIED PARCELS
Assessor Parcel Number
Village H: 1 67-1 01 - 1 9
Village U: 168-3 10-04
Village W: 168-310-02
Village X: 168-3 10-0 1
Robertson Ranch: 168-050-47
168-050-48
Legal Description
Village Y (CF Parcel): PARCEL 2 OF PARCEL MAP NO. 19252, IN THE CITY OF
CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, FILED IN THE
OFFICES OF THE COUNTY RECORDER OF SANDIEGO COUNTY, JUNE 5,2003 AS
FILE NO. 2003-0665946 OF OFFICIAL RECORDS.
Instructions:
How to complete this assessment ballot: You may indicate whether you support or
oppose the levy of the proposed assessment on the property identified below by placing
a cross (+) using a pen in the box next to the word “SUPPORT” or the word “OPPOSE”.
Mark only one box. You must sign this assessment ballot in the space provided for
your signature. By signing this assessment ballot you are certifying that you are either
(a) the owner of the Identified Property or (b) a representative of such owner legally
authorized to complete this assessment ballot on behalf of such owner. This
assessment ballot will be disqualified if it is not signed.
How to return this assessment ballot: Seal the assessment ballot in the
accompanying pre-addressed envelope and either (a) deposit the envelope in the U.S.
mail or (b) deliver the envelope containing the assessment ballot to the following
address: City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, California
92008.
Deadline for Return of this assessment ballot: If returned by deposit in the U.S. mail,
the envelope must be received by the City Clerk not later than 5:OO pm on
September 16, 2003. If mailing this assessment ballot, you must allow sufficient time to
ensure that this assessment ballot is received prior to such date and time. If delivering
this assessment ballot, it must be delivered to and received by the City Clerk at the
above address not later than the closure of the public hearing for the assessment
district scheduled to be held at 6 pm on September 16, 2003.
If such public hearing is continued to a subsequent date, the deadline for receipt of this
assessment ballot shall also be extended to the close of such public hearing. No notice
of such continuance shall be provided.
Withdrawing or changing this assessment ballot: This assessment ballot may be
withdrawn at any time prior to the closure of the public hearing by request of the person
signing the assessment ballot made to the City Clerk.
This assessment ballot may be changed at any time prior to the closure of the public
hearing by withdrawing this assessment ballot and requesting a replacement
assessment ballot. Only the person signing this assessment ballot may make such a
request. The replacement assessment ballot must be received by the City Clerk prior to
the deadline set forth above.
Questions: If you have questions regarding these instructions or this assessment
ballot, please call the City Clerk between 8 am and 5 pm Monday through Friday on
Friday at the following phone number:
City Clerk
City of Carlsbad
(760) 434-2808
NOTICE OF PUBLIC HEARING AND ASSESSMENT BALLOT PROCEDURE
CITY OF CARLSBAD
(COLLEGE BOULEVARD AND CANNON ROAD EAST)
ASSESSMENT DISTRICT NO. 2003-01
The purpose of this notice is to provide information to the record owners of property within the proposed
boundaries of Assessment District No. 2003-0 1 (College Boulevard and Cannon Road East) (the "Assessment
District") of the City of Carlsbad (the "City") regarding the proceedings being undertaken by the City to consider the
formation of the Assessment District and the levy of assessments on properties within the Assessment District for the
purpose specified below.
Reason for the Assessment.
Assessments are proposed to be levied within the Assessment District to fund (a) the acquisition or
construction of improvements generally located within or adjacent to College Boulevard Reach B and C and Cannon
Road Reach 3 and specially benefiting the properties within the Assessment District including roadway, landscape,
irrigation, storm drain, domestic potable water, recycled water, sewer and dry utility improvements, grading and utility
relocation (collectively, the "Improvements"), (b) incidental expenses related to the foregoing, (c) the costs of
formation of the Assessment District, (d) the costs of issuance of bonds for the Assessment District, and (d)
capitalized interest and a reserve fund for such bonds.
The Total Assessment Proposed to be Charged to the Entire Assessment District.
The amount of the assessments proposed to be charged to the entire Assessment District is $24,237,735
Assessment Proposed to be Charged to Your Property.
specifically set forth on the accompanying Assessment Ballot.
Duration of the Assessments.
The amount of the assessment proposed to be charged against the property for which this notice is given is
The assessments may be payable over a period not to exceed 40 years or until the bonds secured by such
assessments are paid off, whichever occurs first. The payment of the principal amount of the assessments will be
amortized over the term thereof. Such principal payments, together with interest on the assessments, will be billed on
the property tax bill and will be payable annually in two equal installments. See "Issuance of Bonds'' below.
Basis upon which the Proposed Assessments are Calculated.
The Improvements have been assigned into seven (7) benefit components: (1) roadway, (2) potable water, (3)
recycled water, (4) sewer, (5) dry utilities, (6) Storm Water Basin BJB and Storm Drain Line BJA and (7) incidental
expenses. Roadway improvement costs are proposed to be apportioned on vehicle average daily trip (ADT)
generation. Potable water, sewer and dry utility costs are proposed to be apportioned on an equivalent dwelling unit
basis. Recycled water costs are proposed to be apportioned to the roadway and specific parcels based on the amount
of recycled water used for irrigation of each such roadway or specific parcel. Storm Water BJB and Storm Drain Line
BJA costs are proposed to be apportioned to parcels which drain into the basin based on assessment units. Incidental
expenses are proposed to be apportioned 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.
Reference is made to the Preliminary Engineer's Report described below in the section entitled "Documents
Available for Review." The basis upon which the proposed assessments are calculated contained in this notice is only
a brief description of and guide to, and is qualified by, the more complete and detailed information contained in the
Preliminary Engineer's Report. Record owners and other interested persons are strongly encouraged to review the
Preliminary Engineer's Report.
Page 1 of 4
Annual Assessment for Unreimbursed Administrative Expenses.
In addition to the assessments described above, the City proposes to levy and collect an annual assessment to
pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection ofthe
assessments or from the administration or registration of any bonds and reserve or other related funds. The proposed
maximum annual assessment shall not exceed five percent (5.0%) ofthe annual assessment per individual assessment
parcel per year.
Public Hearing.
Notice is hereby given that a public hearing on the proposed assessment will be held in the regular
meeting place of the City Council of the City, being the Council Chambers, 1200 Carlsbad Village Drive,
Carlsbad, California, 92008 at the following date and at the following time:
SEPTEMBER 16,2003 AT 6:OO P.M.
At that time the City Council will hold a public hearing on the proposed assessment. The City Council shall consider
all objections and protests, if any, to the proposed assessment. Any interested person shall be permitted to present
written and/or oral testimony. The City Council may impose reasonable time limits on both the length ofthe entire
public hearing and the length of each interested person's oral testimony. The City Council may also continue the
public hearing from time to time.
Assessment Ballot Proceeding.
In addition to the right to participate in the public hearing described above, each record owner of
property proposed to be assessed has the right under the provisions of the Assessment Law to submit an
assessment ballot in favor of or in opposition to the proposed assessment.
An assessment ballot has been enclosed with this notice. Each record owner, or the legally authorized
representative of such record owner, may complete the assessment ballot and thereby indicate such owner's support
for or opposition to the proposed assessment. After the conclusion ofthe public hearing, the City Council shall cause
the assessment ballots received prior to the close of the public hearing to be tabulated by the City Clerk. It is not
necessary for record owner to be a citizen of the United States or a resident of the City, the State of California
or the United States in order to eligible to complete an assessment ballot.
If a majority protest exists, the City Council shall not impose the assessment upon the Assessment
District. For purposes of the assessment ballot procedure, a majority protest exists if, upon conclusion of the
public hearing, assessment ballots submitted in opposition to the proposed assessments within the Assessment
District exceed assessment ballots submitted in favor of such proposed assessments. In tabulating the
assessment ballots, each assessment ballot shall be weighted by the amount of the proposed assessment to be
imposed upon the parcel for which such assessment ballot was submitted.
THE INSTRUCTIONS FOR THE COMPLETION AND DELIVERY OF THE ASSESSMENT
BALLOT ARE PRINTED ON THE REVERSE SIDE OF THE ASSESSMENT BALLOT. These instructions
also specify the deadline for receipt of assessment ballots. Please follow the instructions carefully and
completely in filling out the assessment ballot to ensure that the assessment ballot will be tabulated. TO BE
ELIGIBLE TO BE TABULATED, ASSESSMENT BALLOTS MUST BE RECEIVED BY THE CITY
CLERK OF THE CITY NOT LATER THAN THE CLOSE OF THE PUBLIC HEARING.
An assessment ballot will not be tabulated if:
a. The document received is a photocopy of an assessment ballot which does not contain an
original signature;
The assessment ballot is not signed;
The assessment ballot is received by the City Clerk after the public hearing is closed;
The assessment ballot is not marked with an identifiable "yest' or "no"; or
b.
C.
d.
Page 2 of 4
.
e. The assessment ballot appears tampered with or otherwise invalid based upon its
appearance, method of delivery or other circumstances known to the City Clerk.
Questions.
If you have questions regarding the instructions on the assessment ballot or your assessment ballot is lost or
destroyed, please call the City Clerk between 8 am and 5 pm Monday through Friday at the following phone number:
City Clerk, City of Carlsbad
(760) 434-2808
Please contact the Assessment Engineer listed below if you have any questions regarding the Assessment
District or this notice:
Galen N. Peterson, Consulting Engineer
(858) 487-7000
Documents Available for Review.
The following documents pertaining to the proposed Improvements, the Assessment District and the proposed
assessments are available for review Monday through Thursday from 7:30 am to 5:30 pm or Friday from 8:OO am to
5:OO pm in the Engineering Department of the City of Carlsbad:
0 Preliminary Engineer's Report containing a description ofthe Improvements, a cost estimate for the project, a
diagram showing the parcels within the Assessment District, the assessment proposed to be levied against each
parcel within the Assessment District that specially benefits from the Improvements, and a description of the
proposed rate and method of apportioning such costs;
Carlsbad and Calavera Hills I1 LLC which establishes the terms and conditions pursuant to which the contracts
for the construction of the Improvements will be bid, awarded and administered, the Improvements will be
acquired by the City and bonds will be issued for the Assessment District.
0 The Acquisition/Financing Agreement made and entered into December 1 1,2002 by and between the City of
The Engineering Department is located at the following address:
1635 Faraday Avenue
Carlsbad, California 92008
Authority for Proceedings and Notice.
The proceedings of the City to consider the formation ofthe Assessment District and the levy ofassessments
on properties within the Assessment District are being undertaken and this notice is being given pursuant to and in
accordance with the provisions of:
0 Article XIIID of the Constitution of the State of California,
the Municipal Improvement Act of 1913 (Section 10000 and following ofthe California Streets and
Highways Code),
the Special Assessment Investigation, Limitation and Majority Protest Act of 193 1 (Division 4 ofthe
Streets and Highways Code),
the Improvement Bond Act of 1915 (Section 8500 and following of the California Streets and
Highways Code),
and the Proposition 218 Omnibus Implementation Act (Section 53750 and following of the
California Government Code).
0
e
0
0
(such constitutional and statutory provisions are referred to collectively as the "Assessment Law").
Page 3 of 4
Issuance of Bonds.
If the City Council approves the formation of the Assessment District and the levy of assessments. a thirty
(30) day cash collection period will follow. During the cash collection period property owners may pay all or any
portion of the assessment levied against their property. Upon the completion of the cash collection period, the City
Council intends to issue limited obligation improvement bonds (the "Bonds") pursuant to the "Improvement Bond Act
of 1915", Division 10 of the Streets and Highways Code of the State of California, in an amount equal to all
assessments that then remain unpaid. Annual assessment installments in amounts necessary to pay the debt service on
the Bonds will be collected on the property tax bill from those properties for which the assessments are unpaid
following the end of the cash collection period.
Page 4 of 4
, <.-
I
ASSESSMENT BALLOT
Identified Parcels: Village E-I
Cal E-I, LLC
c/o Brookfield Homes
Attn: Sandra Moore, CFO
12865 Pointe Del Mar
Del Mar. CA 92014
APN 168-041 -08
City of Carlsbad
Assessment District No. 2003-01
(College Boulevard and Cannon Road East)
Proposed assessment:
$1,978,746.00
This assessment ballot is for the use of the owner of the parcel identified below (the
“Identified Parcel”) which is located within the boundaries of the proposed City of
Carlsbad Assessment District No. 2003-01 (College Boulevard and Cannon Road East)
(“Assessment District”). Please advise the City Clerk of the City of Carlsbad at (760)
434-2808 if you are not the owner of the Identified Parcel.
This assessment ballot may be completed by the owner of the Identified Parcel or a
legally authorized representative of such owner to express such owner’s support for or
opposition to the assessment proposed to be levied on the Identified Parcel for the
Assessment District. The amount of the proposed assessment is set forth below.
THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS
ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS
ASSESSMENT BALLOT. You must follow these instructions in completing this
assessment ballot to insure that this assessment ballot will be accepted.
Certification of Voter:
I certify under penalty of perjury that I am the owner of the Identified Parcel or a
representative of such owner and am legally authorized to complete this assessment
ballot on behalf of such owner.
Signature of person completing this assessment ballot
Do you support or oppose the levy of the assessment set
forth below on the Identified Parcel?
OPPOSE 0
Instructions:
How to complete this assessment ballot: You may indicate whether you support or
oppose the levy of the proposed assessment on the property identified below by placing
a cross (+) using a pen in the box next to the word “SUPPORT” or the word “OPPOSE”. Mark only one box. You must sign this assessment ballot in the space provided for
your signature. By signing this assessment ballot you are certifying that you are either
(a) the owner of the Identified Property or (b) a representative of such owner legally
authorized to complete this assessment ballot on behalf of such owner. This
assessment ballot will be disqualified if it is not signed.
How to return this assessment ballot: Seal the assessment ballot in the
accompanying pre-addressed envelope and either (a) deposit the envelope in the U.S.
mail or (b) deliver the envelope containing the assessment ballot to the following
address: City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, California
92008.
Deadline for Return of this assessment ballot: If returned by deposit in the U.S. mail,
the envelope must be received by the City Clerk not later than 500 pm on
September 16, 2003. If mailing this assessment ballot, you must allow sufficient time to
ensure that this assessment ballot is received prior to such date and time. If delivering
this assessment ballot, it must be delivered to and received by the City Clerk at the
above address not later than the closure of the public hearing for the assessment
district scheduled to be held at 6 pm on September 16, 2003.
If such public hearing is continued to a subsequent date, the deadline for receipt of this
assessment ballot shall also be extended to the close of such public hearing. No notice
of such continuance shall be provided.
Withdrawinq or changing this assessment ballot: This assessment ballot may be
withdrawn at any time prior to the closure of the public hearing by request of the person
signing the assessment ballot made to the City Clerk.
This assessment ballot may be changed at any time prior to the closure of the public
hearing by withdrawing this assessment ballot and requesting a replacement
assessment ballot. Only the person signing this assessment ballot may make such a
request. The replacement assessment ballot must be received by the City Clerk prior to
the deadline set forth above.
Questions: If you have questions regarding these instructions or this assessment
ballot, please call the City Clerk between 8 am and 5 pm Monday through Friday on
Friday at the following phone number:
City Clerk
City of Carlsbad
(760) 434-2808
NOTICE OF PUBLIC HEARING AND ASSESSMENT BALLOT PROCEDURE
CITY OF CARLSBAD
(COLLEGE BOULEVARD AND CANNON ROAD EAST)
ASSESSMENT DISTRICT NO. 2003-01
The purpose of this notice is to provide information to the record owners of property within the proposed
boundaries of Assessment District No. 2003-0 1 (College Boulevard and Cannon Road East) (the "Assessment
District") of the City of Carlsbad (the "City") regarding the proceedings being undertaken by the City to consider the
formation of the Assessment District and the levy of assessments on properties within the Assessment District for the
purpose specified below.
Reason for the Assessment.
Assessments are proposed to be levied within the Assessment District to fund (a) the acquisition or
construction of improvements generally located within or adjacent to College Boulevard Reach B and C and Cannon
Road Reach 3 and specially benefiting the properties within the Assessment District including roadway, landscape,
irrigation, storm drain, domestic potable water, recycled water, sewer and dry utility improvements, grading and utility
relocation (collectively, the "Improvements"), (b) incidental expenses related to the foregoing, (c) the costs of
formation of the Assessment District, (d) the costs of issuance of bonds for the Assessment District, and (d)
capitalized interest and a reserve fund for such bonds.
The Total Assessment Proposed to be Charped to the Entire Assessment District.
The amount of the assessments proposed to be charged to the entire Assessment District is $24,237,735.
Assessment Proposed to be Charged to Your Propertv.
specifically set forth on the accompanying Assessment Ballot.
The amount of the assessment proposed to be charged against the property for which this notice is given is
Duration of the Assessments.
The assessments may be payable over a period not to exceed 40 years or until the bonds secured by such
assessments are paid off, whichever occurs first. The payment of the principal amount of the assessments will be
amortized over the term thereof. Such principal payments, together with interest on the assessments, will be billed on
the property tax bill and will be payable annually in two equal installments. See "Issuance of Bonds" below.
Basis upon which the Proposed Assessments are Calculated.
The Improvements have been assigned into seven (7) benefit components: (1) roadway, (2) potable water, (3)
recycled water, (4) sewer, (5) dry utilities, (6) Storm Water Basin BJB and Storm Drain Line BJA and (7) incidental
expenses. Roadway improvement costs are proposed to be apportioned on vehicle average daily trip (ADT)
generation. Potable water, sewer and dry utility costs are proposed to be apportioned on an equivalent dwelling unit
basis. Recycled water costs are proposed to be apportioned to the roadway and specific parcels based on the amount
of recycled water used for irrigation of each such roadway or specific parcel. Storm Water BJB and Storm Drain Line
BJA costs are proposed to be apportioned to parcels which drain into the basin based on assessment units. Incidental
expenses are proposed to be apportioned 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.
Reference is made to the Preliminary Engineer's Report described below in the section entitled "Documents
Available for Review." The basis upon which the proposed assessments are calculated contained in this notice is only
a brief description of and guide to, and is qualified by, the more complete and detailed information contained in the
Preliminary Engineer's Report. Record owners and other interested persons are strongly encouraged to review the
Preliminary Engineer's Report.
Page 1 of 4
e
Annual Assessment for Unreimbursed Administrative Expenses.
In addition to the assessments described above. the City proposes to levy and collect an annual assessment to
pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection ofthe
assessments or from the administration or registration of any bonds and reserve or other related funds. The proposed
maximum annual assessment shall not exceed five percent (5.0%) ofthe annual assessment per individual assessment
parcel per year.
Public Hearing.
Notice is hereby given that a public hearing on the proposed assessment will be held in the regular
meeting place of the City Council of the City, being the Council Chambers, 1200 Carlsbad Village Drive,
Carlsbad, California, 92008 at the following date and at the following time:
SEPTEMBER 16,2003 AT 6:OO P.M.
At that time the City Council will hold a public hearing on the proposed assessment. The City Council shall consider
all objections and protests, if any, to the proposed assessment. Any interested person shall be permitted to present
written and/or oral testimony. The City Council may impose reasonable time limits on both the length ofthe entire
public hearing and the length of each interested person's oral testimony. The City Council may also continue the
public hearing from time to time.
Assessment Ballot Proceeding.
In addition to the right to participate in the public hearing described above, each record owner of
property proposed to be assessed has the right under the provisions of the Assessment Law to submit an
assessment ballot in favor of or in opposition to the proposed assessment.
An assessment ballot has been enclosed with this notice. Each record owner, or the legally authorized
representative of such record owner, may complete the assessment ballot and thereby indicate such owner's support
for or opposition to the proposed assessment. After the conclusion ofthe public hearing, the City Council shall cause
the assessment ballots received prior to the close of the public hearing to be tabulated by the City Clerk. It is not
necessary for record owner to be a citizen of the United States or a resident of the City, the State of California
or the United States in order to eligible to complete an assessment ballot.
If a majority protest exists, the City Council shall not impose the assessment upon the Assessment
District. For purposes of the assessment ballot procedure, a majority protest exists if, upon conclusion of the
public hearing, assessment ballots submitted in opposition to the proposed assessments within the Assessment
District exceed assessment ballots submitted in favor of such proposed assessments. In tabulating the
assessment ballots, each assessment ballot shall be weighted by the amount of the proposed assessment to be
imposed upon the parcel for which such assessment ballot was submitted.
THE INSTRUCTIONS FOR THE COMPLETION AND DELIVERY OF THE ASSESSMENT
BALLOT ARE PRINTED ON THE REVERSE SIDE OF THE ASSESSMENT BALLOT. These instructions
also specify the deadline for receipt of assessment ballots. Please follow the instructions carefully and
completely in filling out the assessment ballot to ensure that the assessment ballot will be tabulated. TO BE
ELIGIBLE TO BE TABULATED, ASSESSMENT BALLOTS MUST BE RECEIVED BY THE CITY
CLERK OF THE CITY NOT LATER THAN THE CLOSE OF THE PUBLIC HEARING.
An assessment ballot will not be tabulated if
a.
b.
C.
d.
The document received is a photocopy of an assessment ballot which does not contain an
original signature;
The assessment ballot is not signed;
The assessment ballot is received by the City Clerk after the public hearing is closed;
The assessment ballot is not marked with an identifiable "yes" or "no"; or
Page 2 of 4
e. The assessment ballot appears tampered with or otherwise invalid based upon its
appearance, method of delivery or other circumstances known to the City Clerk.
Questions.
If you have questions regarding the instructions on the assessment ballot or your assessment ballot is lost or
destroyed, please call the City Clerk between 8 am and 5 pm Monday through Friday at the following phone number:
City Clerk, City of Carlsbad
(760) 434-2808
Please contact the Assessment Engineer listed below if you have any questions regarding the Assessment
District or this notice:
Galen N. Peterson, Consulting Engineer
(858) 487-7000
Documents Available for Review.
The following documents pertaining to the proposed Improvements, the Assessment District and the proposed
assessments are available for review Monday through Thursday from 7:30 am to 5:30 pm or Friday from 8:OO am to
5:OO pm in the Engineering Department of the City of Carlsbad:
0 Preliminary Engineer's Report containing a description ofthe Improvements, a cost estimate for the project, a
diagram showing the parcels within the Assessment District, the assessment proposed to be levied against each
parcel within the Assessment District that specially benefits from the Improvements, and a description of the
proposed rate and method of apportioning such costs;
Carlsbad and Calavera Hills I1 LLC which establishes the terms and conditions pursuant to which the contracts
for the construction of the Improvements will be bid, awarded and administered, the Improvements will be
acquired by the City and bonds will be issued for the Assessment District.
0 The Acquisition/Financing Agreement made and entered into December 1 1,2002 by and between the City of
The Engineering Department is located at the following address:
1635 Faraday Avenue
Carlsbad, California 92008
Authority for Proceedines and Notice.
The proceedings of the City to consider the formation of the Assessment District and the levy of assessments
on properties within the Assessment District are being undertaken and this notice is being given pursuant to and in
accordance with the provisions of:
Article XIIID of the Constitution of the State of California,
the Municipal Improvement Act of 1913 (Section 10000 and following of the California Streets and
Highways Code),
the Special Assessment Investigation, Limitation and Majority Protest Act of 193 1 (Division 4 ofthe
Streets and Highways Code),
the Improvement Bond Act of 1915 (Section 8500 and following of the California Streets and
Highways Code),
and the Proposition 218 Omnibus Implementation Act (Section 53750 and following of the
California Government Code).
0
0
0
0
(such constitutional and statutory provisions are referred to collectively as the "Assessment Law").
Page 3 of 4
Issuance of Bonds.
If the City Council approves the formation of the Assessment District and the levy of assessments, a thirty
(30) day cash collection period will follow. During the cash collection period property owners may pay all or any
portion of the assessment levied against their property. Upon the completion of the cash collection period, the City
Council intends to issue limited obligation improvement bonds (the "Bonds") pursuant to the "Improvement Bond Act
of 1915", Division 10 of the Streets and Highways Code of the State of California, in an amount equal to all
assessments that then remain unpaid. Annual assessment installments in amounts necessary to pay the debt service on
the Bonds will be collected on the property tax bill from those properties for which the assessments are unpaid
following the end of the cash collection period.
Page 4 of 4
.
ASSESSMENT BALLOT
Do you support or oppose the levy of the assessment set
forth below on the Identified Parcel?
City of Carlsbad
Assessment District No. 2003-01
(College Boulevard and Cannon Road East)
SUPPORT 0
OPPOSE 0
This assessment ballot is for the use of the owner of the parcel identified below (the
“Identified Parcel”) which is located within the boundaries of the proposed City of
Carlsbad Assessment District No. 2003-01 (College Boulevard and Cannon Road East)
(“Assessment District”). Please advise the City Clerk of the City of Carlsbad at (760)
434-2808 if you are not the owner of the Identified Parcel.
Identified Parcels: Villages K, L-2 and R
McMillin Montara, LLC
c/o McMillin Homes
Attn: Diane Erickson
2727 Hoover Avenue
National City, CA 91950
APNs 168-31 1-01 168-280-49 & 168-292-29
This assessment ballot may be completed by the owner of the Identified Parcel or a
legally authorized representative of such owner to express such owner’s support for or
opposition to the assessment proposed to be levied on the Identified Parcel for the
Assessment District. The amount of the proposed assessment is set forth below.
Proposed assessment:
$1,793,774.00
THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS
ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS
ASSESSMENT BALLOT. You must follow these instructions in completing this
assessment ballot to insure that this assessment ballot will be accepted.
Certification of Voter:
I certify under penalty of perjury that I am the owner of the Identified Parcel or a
representative of such owner and am legally authorized to complete this assessment
ballot on behalf of such owner.
Signature of person completing this assessment ballot
Instructions:
How to complete this assessment ballot: You may indicate whether you support or
oppose the levy of the proposed assessment on the property identified below by placing
a cross (+) using a pen in the box next to the word “SUPPORT” or the word “OPPOSE”.
Mark only one box. You must sign this assessment ballot in the space provided for
your signature. By signing this assessment ballot you are certifying that you are either
(a) the owner of the Identified Property or (b) a representative of such owner legally
. authorized to complete this assessment ballot on behalf of such owner. This
assessment ballot will be disqualified if it is not signed.
How to return this assessment ballot: Seal the assessment ballot in the
accompanying pre-addressed envelope and either (a) deposit the envelope in the U.S.
mail or (b) deliver the envelope containing the assessment ballot to the following
address: City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, California
92008.
Deadline for Return of this assessment ballot: If returned by deposit in the U.S. mail,
the envelope must be received by the City Clerk not later than 500 pm on
September 16, 2003. If mailing this assessment ballot, you must allow sufficient time to
ensure that this assessment ballot is received prior to such date and time. If delivering
this assessment ballot, it must be delivered to and received by the City Clerk at the
above address not later than the closure of the public hearing for the assessment
district scheduled to be held at 6 pm on September 16, 2003.
If such public hearing is continued to a subsequent date, the deadline for receipt of this
assessment ballot shall also be extended to the close of such public hearing. No notice
of such continuance shall be provided.
Withdrawinq or chanqinq this assessment ballot: This assessment ballot may be
withdrawn at any time prior to the closure of the public hearing by request of the person
signing the assessment ballot made to the City Clerk.
This assessment ballot may be changed at any time prior to the closure of the public
hearing by withdrawing this assessment ballot and requesting a replacement
assessment ballot. Only the person signing this assessment ballot may make such a
request. The replacement assessment ballot must be received by the City Clerk prior to
the deadline set forth above.
Questions: If you have questions regarding these instructions or this assessment
ballot, please call the City Clerk between 8 am and 5 pm Monday through Friday on
Friday at the following phone number:
City Clerk
City of Carlsbad
(760) 434-2808
NOTICE OF PUBLIC HEARING AND ASSESSMENT BALLOT PROCEDURE
CITY OF CARLSBAD
(COLLEGE BOULEVARD AND CANNON ROAD EAST)
ASSESSMENT DISTRICT NO. 2003-01
The purpose of this notice is to provide information to the record owners of property within the proposed
boundaries of Assessment District No. 2003-01 (College Boulevard and Cannon Road East) (the "Assessment
District") ofthe City of Carlsbad (the "City") regarding the proceedings being undertaken by the City to consider the
formation of the Assessment District and the levy of assessments on properties within the Assessment District for the
purpose specified below.
Reason for the Assessment.
Assessments are proposed to be levied within the Assessment District to fund (a) the acquisition or
construction of improvements generally located within or adjacent to College Boulevard Reach B and C and Cannon
Road Reach 3 and specially benefiting the properties within the Assessment District including roadway, landscape,
irrigation, storm drain, domestic potable water, recycled water, sewer and dry utility improvements, grading and utility
relocation (collectively, the "Improvements"), (b) incidental expenses related to the foregoing, (c) the costs of
formation of the Assessment District, (d) the costs of issuance of bonds for the Assessment District, and (d)
capitalized interest and a reserve fund for such bonds.
The Total Assessment Proposed to be Charged to the Entire Assessment District.
The amount of the assessments proposed to be charged to the entire Assessment District is $24,237,735,
Assessment Proposed to be Charged to Your ProDerty.
specifically set forth on the accompanying Assessment Ballot.
The amount of the assessment proposed to be charged against the property for which this notice is given is
Duration of the Assessments.
The assessments may be payable over a period not to exceed 40 years or until the bonds secured by such
assessments are paid off, whichever occurs first. The payment of the principal amount of the assessments will be
amortized over the term thereof. Such principal payments, together with interest on the assessments, will be billed on
the property tax bill and will be payable annually in two equal installments. See "Issuance of Bonds" below.
Basis upon which the Proposed Assessments are Calculated.
The Improvements have been assigned into seven (7) benefit components: (1) roadway, (2) potable water, (3)
recycled water, (4) sewer, (5) dry utilities, (6) Storm Water Basin BJB and Storm Drain Line BJA and (7) incidental
expenses. Roadway improvement costs are proposed to be apportioned on vehicle average daily trip (ADT)
generation. Potable water, sewer and dry utility costs are proposed to be apportioned on an equivalent dwelling unit
basis. Recycled water costs are proposed to be apportioned to the roadway and specific parcels based on the amount
of recycled water used for irrigation of each such roadway or specific parcel. Storm Water BJB and Storm Drain Line
BJA costs are proposed to be apportioned to parcels which drain into the basin based on assessment units. Incidental
expenses are proposed to be apportioned 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.
Reference is made to the Preliminary Engineer's Report described below in the section entitled "Documents
Available for Review." The basis upon which the proposed assessments are calculated contained in this notice is only
a brief description of and guide to, and is qualified by, the more complete and detailed information contained in the
Preliminary Engineer's Report. Record owners and other interested persons are strongly encouraged to review the
Preliminary Engineer's Report.
Page 1 of 4
Annual Assessment for Unreimbursed Administrative ExDenses.
In addition to the assessments described above, the City proposes to levy and collect an annual assessment to
pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection ofthe
assessments or from the administration or registration of any bonds and reserve or other related funds. The proposed
maximum annual assessment shall not exceed five percent (5.0%) ofthe annual assessment per individual assessment
parcel per year.
Public Hearing.
Notice is hereby given that a public hearing on the proposed assessment will be held in the regular
meeting place of the City Council of the City, being the Council Chambers, 1200 Carlsbad Village Drive,
Carlsbad, California, 92008 at the following date and at the following time:
SEPTEMBER 16,2003 AT 6:OO P.M.
At that time the City Council will hold a public hearing on the proposed assessment. The City Council shall consider
all objections and protests, if any, to the proposed assessment. Any interested person shall be permitted to present
written and/or oral testimony. The City Council may impose reasonable time limits on both the length ofthe entire
public hearing and the length of each interested person's oral testimony. The City Council may also continue the
public hearing from time to time.
Assessment Ballot Proceeding.
In addition to the right to participate in the public hearing described above, each record owner of
property proposed to be assessed has the right under the provisions of the Assessment Law to submit an
assessment ballot in favor of or in opposition to the proposed assessment.
An assessment ballot has been enclosed with this notice. Each record owner, or the legally authorized
representative of such record owner, may complete the assessment ballot and thereby indicate such owner's support
for or opposition to the proposed assessment. After the conclusion of the public hearing, the City Council shall cause
the assessment ballots received prior to the close of the public hearing to be tabulated by the City Clerk. It is not
necessary for record owner to be a citizen of the United States or a resident of the City, the State of California
or the United States in order to eligible to complete an assessment ballot.
If a majority protest exists, the City Council shall not impose the assessment upon the Assessment
District. For purposes of the assessment ballot procedure, a majority protest exists if, upon conclusion of the
public hearing, assessment ballots submitted in opposition to the proposed assessments within the Assessment
District exceed assessment ballots submitted in favor of such proposed assessments. In tabulating the
assessment ballots, each assessment ballot shall be weighted by the amount of the proposed assessment to be
imposed upon the parcel for which such assessment ballot was submitted.
THE INSTRUCTIONS FOR THE COMPLETION AND DELIVERY OF THE ASSESSMENT
BALLOT ARE PRINTED ON THE REVERSE SIDE OF THE ASSESSMENT BALLOT. These instructions
also specify the deadline for receipt of assessment ballots. Please follow the instructions carefully and
completely in filling out the assessment ballot to ensure that the assessment ballot will be tabulated. TO BE
ELIGIBLE TO BE TABULATED, ASSESSMENT BALLOTS MUST BE RECEIVED BY THE CITY
CLERK OF THE CITY NOT LATER THAN THE CLOSE OF THE PUBLIC HEARING.
An assessment ballot will not be tabulated if
a.
b.
C.
d.
The document received is a photocopy of an assessment ballot which does not contain an
original signature;
The assessment ballot is not signed;
The assessment ballot is received by the City Clerk after the public hearing is closed;
The assessment ballot is not marked with an identifiable "yes" or "no"; or
Page 2 of 4
e. The assessment ballot appears tampered with or otherwise invalid based upon its
appearance, method of delivery or other circumstances known to the City Clerk.
Questions.
If you have questions regarding the instructions on the assessment ballot or your assessment ballot is lost or
destroyed, please call the City Clerk between 8 am and 5 pm Monday through Friday at the following phone number:
City Clerk, City of Carlsbad
(760) 434-2808
Please contact the Assessment Engineer listed below if you have any questions regarding the Assessment
District or this notice:
Galen N. Peterson, Consulting Engineer
(858) 487-7000
Documents Available for Review.
The following documents pertaining to the proposed Improvements, the Assessment District and the proposed
assessments are available for review Monday through Thursday from 7:30 am to 5:30 pm or Friday from 8:00 am to
5:OO pm in the Engineering Department of the City of Carlsbad:
e Preliminary Engineer’s Report containing a description ofthe Improvements, a cost estimate for the project, a
diagram showing the parcels within the Assessment District, the assessment proposed to be levied against each
parcel within the Assessment District that specially benefits from the Improvements, and a description of the
proposed rate and method of apportioning such costs;
Carlsbad and Calavera Hills I1 LLC which establishes the terms and conditions pursuant to which the contracts
for the construction of the Improvements will be bid, awarded and administered, the Improvements will be
acquired by the City and bonds will be issued for the Assessment District.
e The AcquisitionEinancing Agreement made and entered into December 1 1,2002 by and between the City of
The Engineering Department is located at the following address:
1635 Faraday Avenue
Carlsbad, California 92008
Authoritv for Proceedinm and Notice.
The proceedings of the City to consider the formation ofthe Assessment District and the levy of assessments
on properties within the Assessment District are being undertaken and this notice is being given pursuant to and in
accordance with the provisions of:
e Article XIIID of the Constitution of the State of California,
Highways Code),
Streets and Highways Code),
Highways Code),
California Government Code).
a the Municipal Improvement Act of 191 3 (Section 10000 and following ofthe California Streets and
e the Special Assessment Investigation, Limitation and Majority Protest Act of 193 1 (Division 4 ofthe
the Improvement Bond Act of 1915 (Section 8500 and following of the California Streets and
and the Proposition 218 Omnibus Implementation Act (Section 53750 and following of the
e
e
(such constitutional and statutory provisions are referred to collectively as the “Assessment Law”).
Page 3 of 4
Issuance of Bonds.
If the City Council approves the formation of the Assessment District and the levy of assessments, a thirty
(30) day cash collection period will follow. During the cash collection period property owners may pay all or any
portion of the assessment levied against their property. Upon the completion of the cash collection period. the City
Council intends to issue I imited obligation improvement bonds (the "Bonds") pursuant to the "Improvement Bond Act
of 1915", Division 10 of the Streets and Highways Code of the State of California, in an amount equal to all
assessments that then remain unpaid. Annual assessment installments in amounts necessary to pay the debt service on
the Bonds will be collected on the property tax bill from those properties for which the assessments are unpaid
following the end of the cash collection period.
Page 4 of 4