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HomeMy WebLinkAbout2004-02-17; City Council; 17419; AD 2002-01 boundaries findings & formation4B# 17.41 9 YITG. 2/17/04 IEPT. FIN CtTY OF CARLSBAD - AGENDA BILL TITLE: ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) MAKING FINDINGS ON PETITION, ADOPTING THE PROPOSED BOUNDARIES, DECLARING INTENTION TO FORM THE ASSESSMENT DISTRICT, PASSING ON THE REPORT OF THE ASSESSMENT ENGINEER, SETTING A PUBLIC HEARING, AND RELATED ACTIONS DEPT.HD. !y‘- CITY ATTY. @? CITY MGR- RECOMMENDED ACTION: Adopt Resolution No. 2004-055 Proceedings and making appointments. Adopt Resolution No. 2004-056 Assessment District No. 2002-01 (Poinsettia Lane East). making findings on a petition for Special Assessment adopting a map showing the proposed boundaries of Adopt Resolution No. 2004-057 declaring intention to order the acquisition or construction of certain improvements in proposed Assessment District No. 2002-01 (Poinsettia Lane East); declaring the improvements to be of special benefit; describing the district to be assessed to pay the costs and expenses thereof; and providing for the issuance of bonds. Adopt Resolution No. 2004-058 setting a public hearing, and ordering the initiation of assessment ballot procedures. passing on the report of the assessment engineer, ITEM EXPLANATION: On January 21, 2003, the City Council approved an Acquisition/Financing Agreement with Lennar Bressi Ranch Venture, LLC and Real Estate Collateral Management Company (the developers) for the acquisition, construction, and financing of improvements to Poinsettia Lane, El Fuerte Street, and the widening of El Camino Real for a financing district (which has since been named Assessment District No. 2002-01 ). Under the Acquisition/Financing Agreement, the developers must construct the improvements to the City’s standards and the City will acquire qualifying improvements, subject to the approval of the City Engineer, solely from the proceeds of bonds issued for the assessment district. The purpose of this agenda item is to notify the public of the City’s intent to form the District and to set the public hearing date for the formation on May 4, 2004. It also approves the District boundaries and the preliminary engineer’s report. The date for the public hearing is pursuant to Assembly Bill 1521, effective on January 1, 2004, which establishes the earliest date for the mailed ballot election as May 4‘h. An assessment district is a mechanism to finance the acquisition or construction of public improvements and to spread the cost of such public improvements among the properties which will specially benefit from the improvements based upon the special benefit received by each such property. The City has participated in similar financing programs for Alga Road, Palomar Airport Road, College Boulevard, and improvements in the Carlsbad Ranch, Rancho Carrillo, Calavera Hills II and Robertson Ranch East developments. The boundaries of the proposed assessment district are shown on the location map and include the Bressi Ranch development consisting of an industrial area, residential area with 523 proposed residential single-family homes and several homeowners’ association recreation lots, one mixed use area (to be potentially developed with commercial retail, office, boys and girls club, 100 multi-family affordable units and an assisted living facility) one community facilities area (to be potentially developed with a church, daycare and private school) and open space areas. The boundaries also include the La Costa Greens development consisting of an industrial business park area, residential area with 799 proposed residential single-family homes, and 180 proposed multi-family affordable units, three homeowners’ association recreation lots and community uses including a proposed public elementary school, church, daycare, community park and open space areas. Page 2 of Agenda Bill No. l7 419 The assessment district, as proposed, complies with City Policy Statement No. 33 as revised on December 17, 2002. As required by Policy 33, the City's Special District Review Committee has reviewed this assessment district, finds that it complies with the terms and conditions of the Council's policy and recommends that the City Council proceed with the formation of the assessment district. The improvements proposed to be acquired by the City from the proceeds of bonds issued for the assessment district include 4 lanes of Poinsettia Lane from El Camino Real to the existing terminus of Poinsettia Lane at the westerly boundary of the Rancho Carrillo development including storm drain, water, sewer, recycled water and dry utilities; 4 lanes of El Fuerte Street from Palomar Airport Road to the existing terminus of El Fuerte Street at the southern boundary of the Bressi Ranch development including storm drain, water, sewer, recycled water and dry utilities; widening of El Camino Real along the frontage of the two developments (Bressi Ranch and La Costa Greens) in three segments from Palomar Airport Road to Poinsettia Lane including storm drain, water, recycled water and dry utilities. Included in the cost of acquiring such improvements, in addition to the actual cost of construction, are related costs for environmental, acquisition and creation of mitigation lands, engineering, and inspection. The primary improvements proposed to be financed through the assessment district include the widening of El Camino Real and the extension of Poinsettia Lane and El Fuerte Street, all of which are important links in the City's traffic circulation system and designated as arterials on the Circulation Element of the City's General Plan. Staff, therefore, supports a finding by the City Council that the improvements are consistent with the General Plan and are required in the public interest. ENVIRONMENTAL REVIEW: This assessment district has been deemed to be a "project" subject to the requirements of the California Environmental Quality Act (CEQA) since the levy of assessments and the issuance of bonds secured by such assessments are committed to a specific project which may result in a potentially significant physical impact on the environment. On October 23, 2001, the City Council adopted Resolution No. 2001-318 which certified the Environmental Impact Report, CEQA findings of fact, statements of overriding considerations, a mitigation monitoring and reporting program, and also approved a general plan amendment, La Costa master plan amendment, Villages of La Costa master plan, Local Facilities Management Plan for Zone IO, Local Facilities Management Plan Amendment for Zone 11, master tentative map and hillside development permit for the Greens, and a master tentative map, planned unit development permit, and a hillside development permit for the Ridge and the Oaks for the Villages of La Costa Project on 1,866.4 acres generally located 2,500 feet south of Palomar Airport Road, east of El Camino Real, north and east of La Costa Avenue, and straddling portions of Rancho Santa Fe Road in the Southeast Quadrant within Local Facilities Management Zones 10 and 11 (Case No. EIR 98-07/GPAI 98-01/MP 149(Q)/ MP 98-01/LFMP IO/LFMP 11 (B)/CT 99-03/HDP 99-01/CT 99-04/PUD 01-08/HDP 99-02). On July 9, 2002, the City Council adopted Resolution No. 2002-205 which certified the Environmental Impact Report, CEQA findings of fact, statements of overriding considerations, a mitigation monitoring and reporting program, and also approved a general plan amendment, zone change, Bressi Ranch Master Plan, Local Facilities Management Plan for Zone 17 for the Bressi Ranch project on 585.1 acres generally located south of Palomar Airport Road and east of El Camino Real within Local Facilities Management Plan Zone 17 (Case No. EIR 98-04/GPA, 98-03/ZC 98-04/MP 178/LFMP 17). Both of the EIR documents that were approved by the City Council included all of the improvements that are proposed to be acquired by the assessment district. Potentially significant impacts in the areas of air quality, biological resources, cultural resources and hydrology/water quality will be mitigated through the incorporation of mitigation measures contained in the above documents which are on file with and can be reviewed at the Planning Department. Page 3 of Agenda Bill No. 17,419 FISCAL IMPACT: The assessment district limited obligation improvement bonds, scheduled to be sold at the end of 2004, will fund the acquisition or construction of the proposed improvements and related costs totaling approximately $41.8 million. This amount includes formation costs, debt issuance costs, and the establishment of a 9% debt service reserve fund. The City is not responsible for the funding of the construction of any of the improvements included in the assessment district. The improvements will be constructed by the developers and acquired by the City after the bonds are sold. However, in the event that one or both of the developers default on their obligations to construct such improvements under their respective Subdivision Improvement Agreements, the Acquisition/Financing Agreement permits the City to utilize the remaining eligible proceeds of the improvement bonds, if necessary, to finance the completion of the improvements. The developers have requested to be allowed to pass through the assessment to the prospective purchasers of the individual lots. The City’s Special District Review Committee has reviewed this request and recommends that the City Council approve it since, as required by City Policy 33, the estimated total amount of taxes, assessments and special taxes appearing on the property tax bill will not exceed 1.8 percent of the initial sales price, as of the date of the close of escrow, of any residential dwelling unit. It is estimated that the annual assessment for residential dwelling units will range from $2,000 to $3,000 in Bressi Ranch and between $1,000 and $1,500 in La Costa Greens. Final annual assessments will be calculated prior to the issuance of the proposed bonds. If the assessments are permitted to be passed through, Policy 33 requires that the developer provide full and complete disclosure of the assessment district to such prospective purchasers. The developers have agreed in the Acquisition/Financing Agreement to provide notice as required by Policy 33 and approved by the City Council. Staff intends to bring the proposed disclosure package to the City Council for its review and approval at the time of the public hearing to consider the formation of the assessment district. The bond funds used to acquire the improvements will not include that portion of the costs of such improvements representing (a) the general benefit to be derived from the Poinsettia Lane and El Fuerte Street arterial roadways, consisting of the paving for the center 2 lanes, and (b) the special benefit attributed to parcels of land to be owned by public agencies, non-profit organizations and homeowner’s associations. The developer will contribute that portion of such costs representing such general benefit and such special benefit through a corresponding reduction in the purchase price for the improvements to be acquired. EXHIBITS: 1. Location Map. 2. Resolution No. 2004-055 making findings on a petition for Special Assessment Proceedings and making appointments. 3. Resolution No. 2004-056 adopting a map showing the proposed boundaries of Assessment District No. 2002-01 (Poinsettia Lane East). 4. Resolution No. 2004-057 declaring intention to order the acquisition or construction of certain improvements in proposed Assessment District No. 2002-01 (Poinsettia Lane East); declaring the improvements to be of special benefit; describing the district to be assessed to pay the costs and expenses thereof; and providing for the issuance of bonds. 5. Resolution No. 2004-058 passing on the report of the assessment engineer, setting a public hearing, and ordering the initiation of assessment ballot procedures. 6. Preliminary Engineer‘s Report dated November 10,2003. DEPARTMENT CONTACT: Lisa Hildabrand, (760) 602-2430, Ihild@ci.carlsbad.ca.us 3 EXHIBIT I LOCATION MAP 4 LOCATION MAP \' LEGEND VTA BOUNDARY OF ASSESSMENT - PROPOSED FULL DIS TRlC T STREET IMPRO EMEN TS STREET IMPROVEMENTS PROPOSED HALF- WID lH >ROJECT NAME: ASSESSMENT DBIRICT NO. 2002-01 (POINSETTIA LANE EAST) 1 EXHIBIT, 1 . 'REPARED BY: PROJECT DESIGN CONSULTANTS EXHIBIT 2 RESOLUTION NO. 2004- 055 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2004-055 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, MAKING FINDINGS ON A PETITION REQUESTING INITIATION OF PROCEEDINGS TO FORM AND MAKING APPOINTMENTS THEREIN. ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) WHEREAS, THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ias been presented with executed petitions (collectively, the "Petition") submitted by the owners >f certain real property located in the City of Carlsbad (the "City") requesting that the City Council nitiate proceedings pursuant to the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California (the "Improvement Act"), to form 3n assessment district to be known and designated as Assessment District No. 2002-01 :Poinsettia Lane East) (the "Assessment District") for the purpose of financing the acquisition or :onstruction of certain public improvements; and WHEREAS, the Petition was accompanied by evidence satisfactory to this City Council of - the estimated fair market value of the land proposed to be assessed; and WHEREAS, the improvements proposed to be financed through the Assessment District nclude the extension of both Poinsettia Lane and El Fuerte Street and the widening of Et Camino Real all of which are important links in the City's traffic circulation system and, as such, are .equired in the public interest; and WHEREAS, such improvements are designated as arterials on the Circulation Element of the City's General Plan; and WHEREAS, this City Council desires to make certain findings regarding the Petition, to direct that proceedings to consider the formation of the Assessment District be initiated and to make certain appointments related to such proceedings. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 'I1 VI 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. That this City Council hereby finds as follows: A. The Petition has been executed by the owners, or the representatives of such owners legally authorized to execute such Petition for and on behalf of such owners, owning and constituting more than sixty-five percent (65%) of all assessable land within the boundaries of the proposed Assessment District; B. The total estimated amount of the proposed assessment will not exceed 75% of the total estimated fair market value of the land proposed to be assessed after the proposed public improvements have been constructed; C. The Petition meets all of the requirements of the "Special Assessment Investigation, Limitation and Majority Protest Act of 1931" (Division 4 of the Streets and Highways Code of the State of California) (the "1931 Act") and, therefore, no further proceedings or limitations under the 1931 Act shall be applicable to these proceedings; D. The improvements to Poinsettia Lane, El Fuerte Street and El Camino Real are consistent with the General Plan of the City; and E. The completion of the extension of Poinsettia Lane and El Fuerte Street and the widening of El Camino Real are required in the public interest. 3. That this City Council hereby authorizes the initiation of proceedings pursuant to City Council Policy 33, the Improvement Act, Article XlllD of the Constitution of the State of California and the Proposition 21 8 Omnibus Implementation Act (Government Code Section 53750 and following) to consider the formation of the Assessment District. 4. That the City Engineer is hereby appointed to perform all of the duties and functions of the Superintendent of Streets, as such duties are specified in the Improvement Act, for these proceedings. Ill Ill Ill Ill Ill Page 2 of Resolution No. 2004-055 1 5. That the place for recordation of the assessment roll and diagram shall be in the 2 3 4 5 6 7 8 9 10 11 12 Office of the Superintendent of Streets. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the ,2004 by the following vote, to wit: City of Carlsbad on the 17th day of February AYES: Council Members Lewis, Finnila, Kulchin, Hall and Packard ATTEST: EXHIBIT 3 RESOLUTION 2004- 056 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2004-056 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ADOPTING A MAP SHOWING THE PROPOSED BOUNDARIES OF ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST). WHEREAS, THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, has been presented and has received a map showing and describing the boundaries of the area proposed to be assessed in an assessment district pursuant to the provisions and authority of the “Municipal Improvement Act of 1913”, being Division 12 of the Streets and Highways Code of the State of California; said assessment district known and designated as Assessment District No. 2002-01 (Poinsettia Lane East) (the “Assessment District”). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That a map showing the boundaries of the proposed Assessment District and lands and property to be assessed to finance the costs and expenses of the acquisition or construction of certain public improvements designated as “Proposed Boundaries of Assessment District No. 2002-01 (Poinsettia Lane East)” is hereby submitted, and the same is hereby approved and adopted. 3. That the original map of the boundaries of the proposed Assessment District and one copy thereof are to be filed in the Ofice of the City Clerk. Ill Ill Ill Ill Ill Ill Ill Ill I1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 2 19 20 21 22 23 24 25 26 27 28 4. A certificate shall be endorsed on the original and on at least one copy of the map ,f the Assessment District, evidencing the date and adoption of this Resolution, and within ifteen (15) days after the adoption of the Resolution fixing the time and place of hearing on the ormation or extent of the Assessment District, a copy of such map shall be filed with the correct md proper endorsements thereon with the County Recorder, all in the manner and form provided n Section 31 11 of the Streets and Highways Code of the State of California. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the Xy of Carlsbad on the 17thday of February ,2004 by the following vote, to wit: AYES:Council Members Lewis, Finnila, Kulchin, Hall and Packard 4TTESS Page 2 of Resolution No. 2004-056 (SEAL) EXHIBIT 4 RESOLUTION NO. 2004- 057 1 8 9 10 1.1 12 13 14 15 16 l7 l8 l9 2o 21 22 23 24 25 26 RESOLUTION NO. 2004-057 ASFOLLOWS: 1. Th.e Imwovements. The public interest and convenience require, and it is the intention of this body, pursuant to the provisions of Division 12 of the Streets and Highways Code of the State of California (the “Municipal Improvement Act of 1913”) (the “Improvement Act”), to order the acquisition or construction of certain public improvements, together with appurtenances and appurtenant work, in a special assessment district known and designated as Assessment District No. 2002-01 (Poinsettia Lane East) (the “Assessment District”). The improvements proposed to be financed through the levy of assessments on properties within the Assessment District are described in Exhibit A attached hereto and incorporated herein by this reference, and appurtenances and appurtenant work, all necessary for and to specially benefit properties within the boundaries of the Assessment District (collectively, the “Improvements”). The description of the Improvements contained in this Resolution is general in nature, and the plans and profiles of the Improvements as contained in the Engineer’s Report (defined below) shall be controlling as to the correct and detailed description thereof. All of the Improvements to be acquired or constructed are to be installed at the places and in the particular locations, and to the sizes, dimensions and materials, to the lines, grades and elevations as shown and delineated upon the plans, profiles and specifications, all to be made a part of the Engineer‘s Report. All rights-of-way and easements required for the Improvements shall be shown upon the RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, DECLARING INTENTION TO ORDER THE ACQUISITION OR CONSTRUCTION OF CERTAIN IMPROVEMENTS IN PROPOSED ASSESSMENT DtSTRICT NO. IMPROVEMENTS TO BE OF SPECIAL BENEFIT; DESCRIBING THE DISTRICT TO BE ASSESSED TO PAY THE COSTS AND EXPENSES THEREOF; AND PROVIDING FOR THE ISSUANCE OF BONDS. 2002-01 (POINSETTIA LANE EAST); DECLARING THE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CARLSBAD (THE “CITY) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. Description Of Assessment District. The Improvements confer special benefit on the properties within the Assessment District. This legislative body hereby determines that the expenses of the acquisition or construction of such Improvements which reflect the special benefit to be conferred on the properties within the Assessment District from such Improvements are chargeable upon such properties. Such properties are described as follows: All of that certain territory in the proposed Assessment District included within the exterior boundary lines shown on the map exhibiting the property specially benefited and proposed to be assessed to pay the expenses of the acquisition or construction of the Improvements described above, such map entitled "Proposed Boundaries of Assessment District No. 2002-01 (Poinsettia Lane East)", and which map was previously approved by this legislative body and is on file with the transcript of these proceedings. For all particulars as to the boundaries of the Assessment District, reference is hereby made to such boundary map. ReDort of the Assessment Engineer. The proposed Improvements are hereby referred to Galen N. Peterson, Consulting Engineer (the "Assessment Engineer"), who is hereby directed to make and file a report as required by the Improvement Act, Article XlllD of the Constitution of the State of California and the Omnibus Proposition 218 Implementation Act (Government Code Section 53750) (collectively, the "Assessment Law"), such report to be in writing and contain the following: A. B. 3. A description of the Improvements; Plans and specifications of the Improvements sufficient to show or describe the general nature, location and extent of the Improvements; C. An estimate of the cost of the acquisition or construction of the Improvements, including the cost of the incidental expenses, in connection therewith; D. A diagram showing, as the same existed at the time of passage of this Resolution, the following: 1. the exterior boundaries of the Assessment District and the benefit areas therein designated as Benefit Area No.1 and Benefit Area No. 2 (each, a "Benefit Area"); Ill Ill Ill Page 2 of Resolution No. 2004-057 I5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. the lines and dimensions of each parcel of land within the Assessment District and each of the Benefit Areas; provided, however, such diagram may refer to the county assessor‘s maps for a detailed description of such lines and dimensions, in which case such maps shall govern for all details concerning such lines and dimensions; and E. The proposed assessment of the total amount of the costs and expenses of the proposed Improvements upon the several divisions of land in the Assessment District and each of the Benefit Areas in proportion to the estimated special benefits to be conferred on such subdivisions, respectively, by such Improvements. Such assessment shall refer to such subdivisions upon such diagram by the respective numbers thereof. When any portion or percentage of the assessable costs and expenses of the construction of the Improvements is to be paid from sources other than assessments, the amount of such portion or percentage shall first be deducted from the total estimated costs and expenses of such construction, and such assessment shall include only the remainder of the estimated costs and expenses. 4. Financing of the Improvements. NOTICE IS HEREBY GIVEN that the City proposes to finance the cost of the acquisition or construction of the Improvements, including the cost of the incidental expenses, in connection therewith through the issuance of bonds (the “Improvement Bonds”) pursuant to the “Improvement Bond Act of 1915” (the “Bond Act”), Division 10 of the Streets and Highways Code of the State of California. The payment of the debt service on the Improvement Bonds shall be secured by the unpaid assessments within the District or the Benefit Area for which such series of the Improvement Bonds have been issued pursuant to the provisions of the Improvement Act and the Bond Act. The provisions of Part 11 .I of the Bond Act, providing an alternative procedure for the advance payment of assessments and the calling of bonds shall apply to the Improvement Bonds. Ill Ill Ill Ill Page 3 of Resolution No. 2004-057 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The principal amount of each series of the Improvement Bonds maturing each year shall be other than an amount equal to an even annual proportion of the aggregate principal of such series, and the amount of principal maturing in each year, plus the amount of interest payable in that year, will be generally an aggregate amount that is equal each year, except for the first year’s adjustment. Pursuant to the provisions of the Improvement Act and specifically Streets and Highways Code Section 10603, the Treasurer is hereby designated as the officer to collect and receive the assessments during the cash collection period. 5. Assessment Law. Except as may otherwise be provided for in the issuance of the Improvement Bonds described above, all of the Improvements shall be constructed pursuant to the provisions of the Assessment Law. 6. Surplus Funds. If any excess shall be realized from the assessment, it shall be used, in such amounts as the legislative body may determine, in accordance with the provisions of law for one or more of the following purposes: A. Transfer to the General Fund; provided that the amount of any such transfer shall not exceed the lesser of one thousand dollars ($1,000) or five percent (5%) of the total from the Improvement Fund; B. C. D. To call Improvement Bonds. As a credit upon the assessment and any supplemental assessment; For the maintenance of the Improvements; or 7. Improvement Fund. The legislative body hereby establishes a Special Improvement Fund identified and designated by the name of this Assessment District, and into such Fund monies may be transferred at any time to expedite the acquisition or construction of the Improvements, and any such advancement of funds is a loan and shall be repaid out of the proceeds of the sale of bonds as authorized by law. Ill Ill 111 Page 4 of Resolution No. 2004-057 I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 8. Grades. Notice is hereby given that the grade to which the work shall be done is to be shown on the plans and profiles therefor, which grade may vary from the existing grades. The work herein contemplated shall be done to the grades as indicated on the plans and specifications, to which reference is made for a description of the grade at which the work is to be done. Any objections or protests to the proposed grade shall be made at the public hearing to be conducted under these proceedings. 9. Proceedings Inquiries. For any and all information relating to these proceedings, including information relating to protest procedure, your attention is directed to the person designated below: DAVID HAUSER, DEPUTY CITY ENGINEER CITY OF CARLSBAD 1635 FARADAY AVENUE CARLSBAD, CALIFORNIA 92008 (760) 602-2739 10. Public Propertv. All public property shall be subject to assessment in these proceedings unless otherwise expressly provided and listed herein. 11. Acquisition. The public interest, convenience and necessity requires that certain land, rights-of-way or easements be obtained in order to allow the Improvements as proposed for this Assessment District to be accomplished. The Engineer's Report, upon adoption, shall set forth general description of the location and extent of easements andlor land necessary to be acquired. 12. No Citv Liability. This legislative body hereby further declares not to obligate itself to advance available funds from the Treasury to cure any deficiency that may occur in the bond redemption fund. This determination is made pursuant to the authority of Section 8769(b) of the Streets and Highways Code of the State of California, and such determination shall further be set forth in the text of the bonds issued pursuant to the Bond Act. Ill Ill Ill Ill Page 5 of Resolution No. 2004-057 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 I9 20 21 22 23 24 25 26 27 28 ( 13. Annual Administrative Assessment. It is hereby declared that this legislative body proposes to levy an annual assessment pursuant to Section 10204 of the Streets and Highways Code of the State of California, such annual assessment to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of assessments or from the administration or registration of any associated bonds and their related funds. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the , 2004 by the following vote, to wit: City of Carlsbad on the 17th day of February AYES: Council Members Lewis, Finnila, Kulchin, Hall and Packard (SEAL) Page 6 of Resolution No. 2004-057 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 EXHIBIT A DESCRIPTION OF IMPROVEMENTS 1. Poinsettia Lan from El Camino Real easterly to connect to th- existing terminus of Poinsettia Lane at the westerly boundary of Rancho Carrillo including transition pavement lanes and appurtenances on El Camino Real as shown on Drawing Nos. 397-2H, 397-21, 397-25 and 397-2K. Full width grading to major arterial standards (but not to include grading outside of the right-of-way in future developed areas), erosion control landscaping and irrigation (located within an easement granted to the City), parkway landscaping and irrigation (located within an easement granted to the City), asphalt pavement to major arterial standard width on either side of a raised median, median curb, median hardscaping and landscaping with irrigation, curb and gutter, sidewalk, meandering regional trail for bicycles and pedestrians in a public trail easement which is a part of the City-wide trail system, storm drain facilities within the right-of-way (excluding any Master Drainage Plan facilities subject to reimbursement from Local Drainage Area Fees), sewer, water and reclaimed water lines and appurtenances within the right-of-way (excluding any portion of such costs reimbursable from sewer and/or water connection fees), dry utilities which are non-refundable or non-reimbursable by the utility agency and which are located within the right-of-way', street lights, three new traffic signals and a modification of an existing traffic signal at El Camino Real (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees), relocation of existing utilities, environmental mitigation' and incidental costs of construction to the extent permitted in the Acquisition/Financing Agreement included in Appendix B of the Engineer's Report. 2. El Fuerte Street from Palomar Airport Road southerly to connect to the existing terminus of El Fuerte Street at the southerly boundary of Bressi Ranch as shown on Drawing Nos. 400-8E and 400-8F. Full width grading to secondary arterial standards (but not to include grading outside of the right-of-way in future developed areas), erosion control landscaping and irrigation (located within an easement granted to the City), parkway landscaping and irrigation (located within an easement granted to the City), asphalt pavement to secondary arterial standard width, curb and gutter, sidewalk, meandering regional trail for bicycles and pedestrians in a public trail easement which is a part of the City-wide trail system, storm drain facilities within the right-of-way (excluding any Master Drainage Ptan facilities subject to reimbursement from Local Drainage Area Fees), sewer, water and reclaimed water lines and appurtenances within the right-of-way (excluding any portion of such costs reimbursable from sewer and/or water connection fees), dry utilities which are non-refundable or non-reimbursable by the utility agency and which are located within the right-of-way', street lights, three new traffic signals and a modification of an existing traffic signal at Palomar Airport Road (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees), relocation of existing utilities, environmental mitigation' and incidental costs of construction to the extent permitted in the Acquisition/Financing Agreement included in Appendix B of the Engineer's Report. 3. Widening of the east side of El Camino Real from Palomar Airport Road to the southerly boundary of Bressi Ranch as shown on Drawing No. 400-8G (Bressi Ranch portion). Grading to prime arterial standards (but not to include grading outside of the right-of-way in future developed areas), erosion control landscaping and irrigation (located within an easement granted to the City), parkway landscaping and irrigation (located within an easement granted to the City), asphalt pavement to prime arterial standard width (including transitions lanes outside of developer's ownership), raised median in certain areas, median curb, median hardscaping and landscaping with irrigation, curb and gutter, sidewalk, dry utilities which are non-refundable or non-reimbursable by the utility agency and which are located within the right-of-way', modification of an existing traffic signal at Street "A" (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees), relocation of existing utilities, environmental mitigation' and incidental costs of construction to the extent permitted in the Acquisition/Financing Agreement included in Appendix B of the Engineer's Report. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 4. Widening of the east side of El Camino Real from the southerly boundary of Bressi Ranch southerly as shown on Drawing No. 397-2R (Greens portion). Grading to prime arterial standards (but not to include grading outside of the right-of-way in future developed areas), erosion control landscaping and irrigation (located within an easement granted to the City), parkway landscaping and irrigation (located within an easement granted to the City), asphalt pavement to prime arterial standard width (including transitions lanes outside of developer’s ownership), raised median in certain areas, median curb, median hardscaping and landscaping with irrigation, curb and gutter, sidewalk, dry utilities which are non-refundable or non-reimbursable by the utility agency and which are located within the right-of-way‘, street lights, modification of an existing traffic signal at Camino Vida Roble (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees), relocation of existing utilities, environmental mitigation’ and incidental costs of construction to the extent permitted in the Acquisition/Financing Agreement included in Appendix B of the Engineer’s Report. 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. EXHIBIT 5 RESOLUTION NO. 2004- - 058 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2004-058 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, PASSING UPON AND GIVING PRELIMINARY APPROVAL TO THE REPORT OF THE ASSESSMENT ENGINEER, SETTING THE TIME AND PLACE FOR A PUBLIC HEARING AND ORDERING THE INITIATION OF ASSESSMENT {POINSETTIA LANE EAST). BALLOT PROCEDURES FOR ASSESSMENT DISTRICT NO. 2002-01 WHEREAS, THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, has instituted proceedings to finance the cost of the acquisition or construction of certain public improvements and appurtenances pursuant to the provisions of the “Municipal Improvement Act of 1913” (the “Improvement Act“), being Division 12 of the Streets and Highways Code of the State of California (commencing with Section IOOOO), in a special assessment district known and designated as Assessment District No. 2002-01 (Poinsettia Lane East) (the “Assessment District”); and WHEREAS, there has been prepared and filed with this legislative body a Report of the Assessment Engineer (the “Report”) as provided for in and required by the Improvement Act, the Special Assessment Investigation, Limitation and Majority Protest Act of 1931 (Division 4 of the Streets and Highways Code) (the “Investigations Act”), Article XlllD of the Constitution of the State of California (“Article XlllD”) and the Proposition 21 8 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) (the Improvement Act, the Investigations Act, Article XlllD and the Implementation Act are referred to herein collectively as the “Assessment Law“) and the Report has been presented to this legislative body For its consideration; and WHEREAS, a Resolution of Intention declaring the intention of the City Council to finance the cost of the construction of the subject improvements through the levy of assessments within the Assessment District was previously adopted by such City Council; and the Report as now presented shall stand as the Report for the purpose of subsequent proceedings hereunder. VI VI VI 1 2 3 4 5 6 7 a 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, be it resolved by the City Council of the City of Carlsbad as follows: SECTION 1. SECTION 2. The above recitals are all true and correct. The Report referred to herein above is adopted, passed upon, and preliminarily approved, as follows: A. The plans and specifications for the improvements proposed to be acquired or constructed, as contained in the Report, are hereby preliminarily approved and adopted; B. The Assessment Engineer’s estimate of the itemized and total costs and expenses of the acquisition or construction of the improvements and of the incidental expenses in connection therewith contained in the 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, and each of them are hereby preliminarily approved and adopted; C. The diagram showing the Assessment District referred to and described in such Resolution of Intention, and also the boundaries and dimensions of the respective 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, as contained in the Report, is hereby preliminarily approved and adopted; 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, as contained in the Report, are hereby preliminarily approved and adopted; E. A description of the improvements to be acquired or constructed contained in the Report are hereby preliminarily approved and adopted. SECTION 3. The Report shall stand as the Assessment Engineer’s Report for the purpose of all subsequent proceedings undertaken pursuant to the Resolution of Intention. Ill /If Page 2 of Resolution No. 2004-058 aq 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 SECTION 4. NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING TO CONSIDER PROTESTS TO THE PROPOSED ASSESSMENTS IS HEREBY SCHEDULED TO BE HELD AT THE CITY COUNCIL MEETING ROOM OF THE CITY OF CARLSBAD LOCATED AT 1200 CARLSBAD VILLAGE DRIVE, CARLSBAD, CALIFORNIA 92008 ON MAY 4,2004 AT 6:OO P.M. RIGHT TO SUBMIT ASSESSMENT BALLOT PURSUANT TO THE PROVISIONS OF THE ASSESSMENT LAW, THE RECORD OWNER OF EACH PARCEL PROPOSED TO BE ASSESSED HAS THE RIGHT TO SUBMIT AN ASSESSMENT BALLOT IN FAVOR OF OR IN OPPOSITION TO THE ASSESSMENT PROPOSED TO BE LEVIED ON SUCH PARCEL. ASSESSMENT BALLOTS WILL BE MAILED TO THE RECORD OWNER OF EACH PARCEL LOCATED WITHIN THE ASSESSMENT DISTRICT AND PROPOSED TO BE SUBJECT TO AN ASSESSMENT. EACH SUCH OWNER MAY COMPLETE SUCH ASSESSMENT BALLOT AND THEREBY INDICATE SUCH OWNER’S SUPPORT FOR OR OPPOSITION TO THE PROPOSED ASSESSMENT. ALL SUCH ASSESSMENT BALLOTS MUST BE RECEIVED BY THE CITY CLERK AT THE FOLLOWING ADDRESS AT OR BEFORE THE TIME SET FOR THE CLOSE OF THE PUBLIC HEARING: CITY CLERK CITY OF CARLSBAD 1200 CARLSBAD VILLAGE DRIVE CARLSBAD, CALIFORNIA 92008 AN ASSESSMENT BALLOT RECEIVED AFTER THE CLOSE OF THE PUBLIC HEARING WILL NOT BE TABULATED EVEN THOUGH THE POSTMARK ON THE ENVELOPE TRANSMITTING THE ASSESSMENT BALLOT IS DATED ON OR BEFORE THE DATE OF THE PUBLIC HEARING. AT THE CONCLUSION OF THE PUBLIC HEARING, THE CITY COUNCIL SHALL CAUSE THE TABULATION, PURSUANT TO GOVERNMENT CODE SECTION 53753, OF THE ASSESSMENT BALLOTS TIMELY RECEIVED. IF A MAJORITY PROTEST, AS DESCRIBED BELOW, EXISTS THE CITY COUNCIL SHALL NOT IMPOSE AN ASSESSMENT WITHIN THE ASSESSMENT DISTRICT. A MAJORITY PROTEST EXISTS IF THE ASSESSMENT BALLOTS a5 Page 3 of Resolution No. 2004-058 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 SUBMITTED, AND NOT WITHDRAWN, IN OPPOSITION TO THE PROPOSED ASSESSMENT EXCEED THE ASSESSMENT BALLOTS SUBMITTED, AND NOT WITHDRAWN, IN FAVOR OF SUCH ASSESSMENT. IN TABULATING THE ASSESSMENT BALLOTS, EACH ASSESSMENT BALLOTSHALLBEWEIGHTEDBYTHEAMOUNTOFTHE PROPOSEDASSESSMENTTO BE IMPOSED UPON THE IDENTIFIED PARCEL FOR WHICH SUCH ASSESSMENT BALLOT WAS SUBMITTED. SECTION 5. The City Clerk is hereby directed to mail or cause to be mailed notice of the Public Hearing and the adoption of the Resolution of Intention and of the filing of the Report, together with the assessment ballot materials, to the record owner of each parcel proposed to be assessed. SECTION 6. The City Clerk is hereby further directed to file or cause to be filed a copy of the proposed boundary map in the Office of the County Recorder within fifteen (15) days of the adoption of the proposed boundary map; such boundary map to be in the manner and form as set forth in Division 4.5 of the Streets and Highways Code of the State of California. SECTION 7. For purposes of tabulating the assessment ballots for these proceedings as required pursuant to the Assessment Law, the City Council hereby designates the City Clerk to act as the tabulation official to tabulate the assessment ballots submitted. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the , 2004 by the following vote, to wit: City of Carlsbad on the 17th day of February AYES:Council Members Lewis, Finnila, Kulchin, Hall and Packard NOES: None A "V ATTEST: \n Pdge 4 of Resolution No. 2004-058 (SEAL) ab EXHIBIT 6 PRELIMINARY ENGINEER’S REPORT dated November IO, 2003 PRELIM1 NARY ENGINEER’S REPORT FOR ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) CITY OF CARLSBAD SAN DIEGO COUNTY CALIFORNIA November IO, 2003 Prepared By: Galen N. Peterson, Consulting Engineer San Diego, CA (858) 487-7000 Assessment District No. 2002-01 (Poinsettia Lane East) TABLE OF CONTENTS SECTION PAGE INTRODUCTION AND CERTIFICATIONS i PART I Plans and Specifications PART II Cost Estimates PART Ill PART IV Annual Administrative Assessment PART V Assessment Roll and Method of Assessment Spread Diagram of Assessment District 1 3 5 27 28 PART VI Description of Improvements and Right-of-way Certificate 32 Appendix A - Resolution of Intention Appendix B - Acquisition/Financing Agreement between City and Developers Appendix C - Environmental Certification Appendix D - Property Owners List Appendix E - Detailed Cost Information Appendix F - Detailed Spread Information Appendix G - Assessment Engineer’s Qualifications Appendix H - Exhibits of Improvements City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page i AGENCY: CITY OF CARLSBAD PROJECT: ASSESSMENT DISTRICT NO. 2002-01 (Poinsettia Lane 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 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 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. adopted by the City Council of the City of Carlsbad, State of California, in connection with the proceedings for; - Assessment District No. 2002-01 (Poinsettia Lane 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. 2002-01 (Poinsettia Lane 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 January 21,2003, between the City of Carlsbad and Lennar Bressi Ranch Venture, LLC, a California limited liability company, and Real Estate Collateral Management Company, a Delaware corporation, 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. 31 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page iii 2003. +!d This Report is submitted on the /o day of GALEN N. PETERkON - ’ R.C.E. No. 18,364 ?Expires 6/30/2005) ASSESSMENT ENGINEER CITY OF CARLSBAD COUNTY OF SAN DIEGO STATE OF CALIFORNIA Preliminary approval by the CITY COUNCIL of the CITY OF CARLSBAD, SAN DIEGO COUNTY, CALIFORNIA, on the day of mnn LUU-. LORRAINE M. WOOD, CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA -c 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 33, City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane 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 2002-01 (Poinsettia Lane East) are referenced herein and incorporated as if attached and a part of this Report. Said plans include: 1) Poinsettia Lane from El Camino Real easterly to connect to the existing terminus of Poinsettia Lane at the westerly boundary of Rancho Carrillo including transition pavement lanes and appurtenances on El Camino Real as shown on Drawing No. 397-2H, consisting of 24 sheets, Drawing No. 397-21, consisting of 71 sheets, Drawing No. 397-2J, consisting of 1 -l sheets, and Drawing No. 397-2K, consisting of 36 sheets. 2) El Fuerte Street from Palomar Airport Road southerly to connect to the existing terminus of El Fuerte Street at the southerly boundary of Bressi Ranch as shown on Drawing No. 400-8E, consisting of 23 sheets, and Drawing No. 400- 8F, consisting of 19 sheets. 3) Widening of the east side of El Camino Real from Palomar Airport Road to the southerly boundary of Bressi Ranch as shown on Drawing No. 400-8G, consisting of 16 sheets, (Bressi Ranch portion). 4) Widening of the east side of El Camino Real from the southerly boundary of Bressi Ranch southerly as shown on Drawing No. 397-2R, consisting of 7 sheets, (Greens portion). The plans and specifications for the improvements are on file in the office of the Superintendent of Streets/City Engineer. Prior to acquiring the improvements, as- built drawings will be reviewed for consistency with the plans upon which this report was based. Exhibits of facilities showing the general location of the improvements to be constructed and/or acquired by the Assessment District are included in Appendix H of this Report and described 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 that certain Acquisition/Financing Agreement dated as of January 21, 2003, amongst the City, 33 Prepared by Galen N. Peterson November 10,2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 2 Lennar Bressi Ranch Venture, LLC, and Real Estate Collateral Management Company (collectively as the “Developers”) The proposed improvements include: 1. Roadway Improvements. The construction and/or acquisition of roadways generally consisting of the grading and paving of streets, installation of driveways, curbs, gutters, sidewalks, 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 sewer mains and other utilities impacted by the grading and other appurtenant improvements. 2. Domestic Water Improvements. The construction and/or acquisition of a backbone domestic water distribution system within the public right-of-way including: hydrants, pressure reducing station and 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, and adjacent roadway slopes (in and adjacent to the public streets and public easements) (ii) landscaped slopes and pocket parks within the home owners association open space areas (iii) landscaped areas of the public park (iv) landscaped areas of the school (v) landscaped areas of the private school and (vi) landscaped areas of the industrial section. 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 Disqunt and Bond Reserve, all as identified in Exhibit 1 below. The above improvements are more specifically described in Part VI of this Report. 3d Prepared by Galen N. Peterson November 10,2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane 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 Lennar Bressi Ranch Venture, LLC, and Rea! Estate Collateral Management Company (the “Developers”) are shown in Appendix E, Detailed Cost Information. The cost estimate divides Poinsettia Lane into two segments. Segment 1 is from El Camino Real easterly to the boundary of the Greens development and the Bressi Ranch development (Greens portion) and also includes transition pavement lanes and appurtenances on El Camino Real. Segment 2 is from the boundary of the Greens development and the Bressi Ranch development easterly to connect to the existing terminus of Poinsettia Lane at the westerly boundary of the Rancho Carrillo development (Bressi Ranch portion). The cost estimate also divides El Camino Real into two segments. El Camino Real (Bressi Ranch portion) is from Palomar Airport Road southerly to the boundary of the Bressi Ranch development. El Camino Real (Greens portion) includes three reaches from the boundary of the Bressi Ranch development and the Greens development southerly to Poinsettia Lane and also includes transition pavement lanes and appurtenances on El Camino Real. See Exhibit I, on the following page, for a summary of the cost estimate. Prepared by Galen N. Peterson 9 November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 4 EXHIBIT 1 CITY OF CARLSBAD (POINSETTIA LANE EAST) ASSESSMENT DISTRICT NO. 2002-01 COST ESTIMATES Preliminary Confirmed Assessment Assessment 1. Construction Cost of Improvements (See Table 5, Appendix "F") (1) a. Poinsettia Lane, Segment 1 (Greens portion) $ 14,062,920.84 b. Poinsettia Lane, Segment 2 (Bressi Ranch portion) $ 6,689,936.63 c. El Fuerte Street $ 1 1,241,194.77 d. El Camino Real (Bressi Ranch portion) $ 1,280,881.65 e. El Camino Real (Greens portion) $ 1,720,357.34 Subtotal of Construction $ 34,995,291.23 2. Land & Right-of-way (included in item 1) $ 3. Cost of Formation and Issuance a. City Administration b. Assessment Engineering c. Audit of Acquisition Costs d. Bond Counsel e. Appraisal f. Absorption Consultant g. Financial Advisor h. Official StatementlBond Printing i. FiscaVPaying Agent j. Underwriters Counsel k. First 2 years additional Annual Administration Cost $ 100,000.00 $ 65,000.00 $ 70,000.00 $ 65,000.00 $ 40,000.00 $ 25,000.00 $ 50,000.00 $ 30,000.00 $ 15,000.00 $ 35,000.00 $ 40,000.00 I. Contingency and cost of issuance for other bond series $ 753.41 7.00 Total Incidentals $ 1,288,417.00 SUBTOTAL $ 36,283,708.23 Less General Benefit Contributions (subtracted within item 1) $ $ (1,930,891.12) Less Special Benefit Contributions for public, non-profit and HOA parcels SUBTOTAL $ 34,352,817.11 Less Interest Earned Capitalized Interest (lyr @ 7% interest) Financing Costs Bond Discount (1.75%) $ $ 2,923,644.01 $ 730,911.00 Bond Reserve (9%) $ 3,758,970.85 *. GRAND TOTAL $ 41,766,342.97 Notes: (1) Net of General Benefit Contributions (2) Includes contributions for public, non-profit, HOA parcels, Assessment No. 33 and a portion of No. 22 (for daycare) 36 Prepared by Galen N. Peterson November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 5 Part 111 Assessment Roll and Method of Assessment Spread On 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 218 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. 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: , 200- the City Council of the City Of Carlsbad, State of , for ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE 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. b. C. d. e. 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; A general description of the improvements proposed to be acquired and any property necessary or convenient for the operation of such improvements; 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; 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; 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; Prepared by Galen N. Peterson 37 November 10,2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 6 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 Appendix "A" of this Report. NOW, THEREFORE, I, GALEN N. PETERSON, pursuant to the Assessment Law, 1 2 3. 4. do hereby submit the following: Pursuant to the provisions of Assessment Law and the Resolution of Intention, I have assessed the costs and expenses of the acquisition or construction of the improvements upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the estimated special benefits to be received by each of said parcels from the improvements. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto. As required by Assessment Law, a Diagram is attached, showing the Assessment District and the benefit areas therein, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District and the benefit areas therein as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively have been given a separate num'ber upon said Diagram and in said Assessment Roll. The subdivisions and parcels of land, the numbers therein as shown on the respective Assessment Diagram as attached hereto, correspond with the numbers as appearing on the Assessment Roll as contained herein. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 1915"), to represent all unpaid assessments, which bonds shall be issued not to exceed the legal maximum term as authorized by law, Le., THIRTY-NINE (39) YEARS from the 2nd day of September of the next succeeding twelve (12) months from the date of the bonds. Said bonds shall bear interest at a rate not to exceed the current legal maximum rate of 12% per annum. Prepared by Galen N. Peterson 36 November IO, 2803 City of Carisbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 7 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 Confirmed Approved Approved and Construction and Incidental Costs less $ 34,995,291.23 General Benefit (1) Formation and Issuance Expenses I ,288,417.00 Less Special Benefit Contributions (1,930,891.12) Less Interest Earned Capitalized Interest and Financing Costs 7,413,525.86 Total Assessment (2) $41,766,342.97 Subtotal Benefit Area No. 1 (2) $29,417,441.97 Subtotal Benefit Area No. 2 (2) $12,348,901 .OO Total Assessment (2) $41,766,342.97 For particulars as to the individual assessments and their descriptions, reference is made to Exhibits 2 and A attached hereto. (1) The general benefit not assessed is associated with a portion of Poinsettia Lane and El Fuerte as discussed in Exhibit A. An amount equal to such general benefit will be contributed by the developers as a deduction from the purchase price for improvements to be acquired and not reimbursed from bond proceeds. (2) Included in the total assessment are projected individual assessments representing the special benefit from the improvements to be conferred on public parcels (such as the school and 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 developers either as a deduction from the purchase price for improvements to be acquired and not reimbursed frcm 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. Prepared by Galen N. Peterson 39 November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 8 Summary of Developer Contributions to Off-Set General Benefit and Special Benefit Assessments Bressi Ranch (Benefit Area No. 1) General Benefit Poinsettia Lane - Segment 1, Street $ 219,539.28 Improvements Poinsettia Lane - Segment 2, Street $ 92,493.55 Improvements El Fuerte - Street Improvements $ 381.360.00 Total General Benefit $ 693,392.82 La Costa Greens (Benefit Area No. 2) Total $ 193,460.72 $ 413,000.00 $ 81,506.45 $ 174,000.00 $ - 381.360.00 $ 274,967.18 $ 968,360.00 Special Benefit - Parcels Owned by Public Agencies, Non-Profit Ornanizations and Home Owners Association (1 1 City Park $ - $ 460,797.79 $ 460,797.79 Open Space $ 48,567.87 $ 26,635.11 $ 75,202.98 Total Special Benefit (1) $ 48,567.87 $ 507,573.06 $ 556,140.93 Home Owners Association (HOA) - 20,140.16 $ 20,140.1 6 $ Total Developer Contributions (1) $ 741,960.69 $ 782,540.24 $ 1,524,500.93 Notes: (1) Additional future parcels 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 developers either as a deduction from the 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. 6. The Method and Formula of Spread of Assessment is as set forth in Exhibit "A', which is attached hereto, referenced and so incorporated 1)D Prepared. by Galen N. Peterson November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 9 Assessment Number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 Exhibit 2 Assessment Roll Land Use As Preliminarily As Finally Planned Industrial Planned Industrial Planned Industrial Planned Industrial Planned Industrial Single Family Development Single Family Development Single Family Development Single Family Development & HOA Single Family Development & HOA Single Family Development Single Family Development & HOA Church, Day Care & School Planned Industrial Retail Office. Multdamily. Assisted Living. Boys 8 Girls Club and Open Space Open Space (OS) OS (Assm'nt Contributed by Developer) Open Space (OS) Open Space (OS) Open Space (OS) Open Space (OS) Open Space (OS) Park (Assm'nt Contributed by Developer) Single Family Development & School Single Family Development Open Space (OS) HOA (Assm'nt Contributed by Developer) Single Family Development Open Space (OS) Single Family Development HOA (Assm'nt Contributed by Developer) Multifamily (Affordable) (Assm'nt Contributed by Developer) Townhome/Single Family Dev Open Space (OS) Open Space (OS) HOA (Assm'nt Contributed by Developer) Open Space (OS) OS (Assm'nt Contributed by Developer) Total Industrial/Businesr Park, Church Day Care and Townhcines/Single Family Dev Approved Approved and Confirmed 133,110.09 1,487,685.30 2,832,724.07 2,619,254.43 1,741,701 50 2,493,790.47 1,526,810.49 2,417,449.94 1,802,430.14 2,155.046.02 81 5,981.03 2,319,874.24 1,250,040.16 74,691.03 5,746,853.07 1,127,846.77 3,053,281.02 2,357,989.35 2,746,861.05 512,367.86 2,550,554.95 $ 41,766,342.97 Prepared by Galen N. Peterson November 10,2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane 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. The Method of Apportionment The Assessment District improvements have been assigned into six benefit components; roadway, potable water, recycled water, sewer, dry utilities and @ Prepared by Galen N. Peterson November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 11 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. 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 or Neighborhoods, 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 or Neighborhoods 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 Backbone Roadway Improvement Components A-2 Backbone Potable Water and Sewer Improvement Components A-3 Backbone Recycled Water Improvement Components A4 Backbone Dry Utilities Improvement Components A-5 Incidental Expenses Components B. Special Benefits C. General Benefits D. Proportioning Special Benefits D-I Land Use Categories D-2 Proportionate Special Benefit of Roadway Improvements D-3 Proportionate Special Benefit of Utility Improvements D-4 Proportioning Formation, Issuance and Financing Costs Ll3 Prepared by Galen N. Peterson November 10,2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 12 E. Proclamations E-I Assessments Equal to or Less Than the Proportional Special Benefits E-2 Reasonableness and Justification of Assessments E-3 Future Apportionment A. IDENTIFICATION OF BENEFIT COMPONENTS The improvements to be acquired or constructed by the City from the proceeds of bonds issued for each benefit area of the Assessment District are necessary for development of the Assessment District parcels and are required by the Villages of La Costa (The Greens) and by the Bressi 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 and utilities that will be funded by the Assessment District. A-I Backbone Roadway 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 associated with the road construction. The road construction has created the need to relocate sewer mains and utilities, re-establish habitat areas, and install landscaping to protect the roadway slopes. The road construction has also 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 one roadway improvement component for the purpose of defining the roadway costs and apportioning special benefit. A percentage of the cost of the backbone recycled water distribution system has been spread in the same manner as the roadway expenses. This portion of the recycled water system improvements will provide an irrigation water system for the roadway landscaping. The roadway improvement component includes: Poinsettia Lane, El Fuerte, El Camino Real, relocation of utilities, establishment of habitat mitigation areas, and a portion of the recycled water system to serve the roadway landscaping. l-r4 Prepared by Galen N. Peterson November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 13 A-2 Backbone Potable Water and Sewer Improvement Components Coincidental to the roadway improvements is the necessity to construct certain backbone 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 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. A-3 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-4 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 -5 Incidental Expense Components In addition to the improvement costs, there are incidental construction administration and Assessment District formation expenses. These costs include, but are not limited to: construction administration, construction supervision, design, testing, surveying, assessment engineering, audit of acquisition costs, financial advisors, appraisals, bond counsel, underwriting, 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 45 Prepared by Galen N. Peterson November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 14 components have been prorated to each assessment number in accordance with that assessment number’s share of the construction cost. B. SPECIAL BENEFITS The purpose of this Assessment District is to fund the construction and acquisition 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 Villages of La Costa (The Greens) and the Bressi Ranch Specific 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 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 some of 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. 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. Prepared by Galen N. Peterson l./b November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 15 Poinsettia Lane is designated as a prime arterial roadway. Previously, Poinsettia Lane 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 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. El Fuerte Street is designated as a secondary arterial roadway and will be constructed from Palomar Airport Road south to connect to the existing terminus of El Fuerte Street at the southerly boundary of Bressi Ranch. 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 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 base and asphalt pavement to provide the two center lanes for both Poinsettia Lane and El Fuerte Street is approximately $968,360. 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 Poinsettia Lane and El Fuerte Street grading provides special benefit to the Assessment District Properties. D. PROPORTIONING SPECIAL BENEFITS D-I Land Use Categories The following land use categories are included in the Assessment District: planned industrial, business park, community retail, office, single-family detached and single-family attached residential, apartments (affordable housing), assisted living, daycare center, boys and girls club, church, school, home owners association recreation areas, park and open space. Except for the irrigated areas in Assessment Numbers 17 and 39 (Village Green OS-2 and open space lot 34), 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. Prepared by Galen N. Peterson November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 16 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 Family 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. Affordable Housing (Bressi Ranch) Trip Generation The Average Daily Trips for each affordable housing unit, based on the formula in footnote R of the 1998 SANDAG Trip Generation Manual, is 6.4ADT (-2.169 Ln(100 units/5.13 ac) + 12.85). Apartment Affordable Housinq (Greens) Trip Generation The Average Daily Trips for each affordable housing unit, based on the 1998 SANDAG Trip Generation Manual for apartments, is 6 ADT. Assisted Livina Trip Generation The Average Daily Trips for each assisted living room, based on 1998 SANDAG Trip Generation Manual for congregate care facility, is 2 ADT Industrial Trip Generation The Average Daily Trips for industrial park is 80 ADT per net acre. The primary trip percentage for industrial park is 79%. I.rg Prepared by Galen N. Peterson November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 17 Communitv Retail Trip Generation The Average Daily Trips for commercial shops - specialty retaihtrip commercial is 40 ADT per 1,000 square feet. The primary trip percentage for this land use is 45%. Office Trip Generation The Average Daily Trips for corporate headquarters office is 7 ADT per 1,000 square feet. The primary trip percentage for this land use is 82%. 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%. Church Trip Generation The Average Daily Trips for a church is 30 ADT per net acre. The primary trip percentage for a church site is 64%. Dav Care Trip Generation 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%. Bovs & Girls Club TriD Generation The Average Daily Trips for a multi-purpose recreational facility is 90 ADT per net acre. The primary trip percentage for this land use is 52%. Home Owners Association Recreation Areas Trip Generation The Average Daily Trips generation for the home owner’s association (HOA) recreation areas, 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%. The HOA lots 47, 48 and 49 within Benefit Area No. 2 were assigned IO, 2.8 and 1.9 ADT per site, respectively. The three HOA areas in Planning Areas 9, 10 and 12 and the Village Green area (OS-2) within Benefit Area No. 1 were assigned 13.9 ADT. The Village Square area in Planning Area 15 within Benefit Area No. 1 was assigned 2.5 ADT. Park Trip Generation The Average Daily Trips generation for a regional park is 20 ADT per net acre. The primary trip percentage for a regional park is 66%. Y7 Prepared by Galen N. Peterson November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 18 Road Poinsettia Lane El Fuerte Weighted Benefit by Land Use for Roadway Improvements Relative Benefit Residential Industrial Commercial and Other 0.4 0.7 1 .o 0.2 0.8 1 .o The geographic concentration and placement of major land uses (residential, commercial retail and office, and industrial) within the Assessment District boundaries indicates that their impact on, hence their special benefits from, the roadway improvements are not uniform and should be weighted. The results of a study performed by Urban Systems, Inc. shown at the end of Appendix “F” indicates that the relative weighting for industrial and commercial land use compared to residential land uses on each roadway improvements is as follows: I El Camino Real 1 0.6 0.5 1 .o These weights were applied to the ADT generation factors discussed above in order to arrive at an allocable share for each of the three roadway improvement costs. The costs for each of the roadway improvements were allocated only to the assessment numbers that specially benefit from such roadway improvements as set forth below: Poinsettia Lane - Poinsettia Lane roadway costs specially benefit all assessment numbers in the Assessment District. Therefore, Poinsettia Lane roadway costs were allocated to all assessment numbers based on the ADT generation factors and weighting applicable to Poinsettia Lane. El Fuerte - El Fuerte roadway costs specially benefit only assessment numbers 1 through 21. Therefore, El Fuerte roadway costs were allocated only to assessment numbers I through 21 based on the ADT generation factors and weighting applicable to El Fuerte. El Camino Real (Bressi Ranch portion) - El Camino Real (Bressi Ranch portion) roadway costs specially benefit only assessment numbers 1 through 21. Therefore, El Camino Real (Bressi Ranch portion) roadway costs were allocated only to assessment numbers 1 through 21 based on the ADT generation factors and weighting applicable to El Camino Real (Bressi Ranch portion). El Camino Real (Greens portion) - El Camino Real (Greens portion) roadway costs specially benefit only assessment numbers 22 through 39. - Prepared by Galen N. Peterson m November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 19 Land Use Single Family Detached Single Family Attached Non Residential Therefore, El Camino Real (Greens portion) roadway costs were allocated only to assessment numbers 22 through 39 based on the ADT generation factors and weighting applicable to El Camino Real (Greens portion). Potable Water and Sewer Usage 550 gallons / day 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: 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: Land Use 1 Potable Water and Sewer EDU 1 1 Single Family Detached 1 1.0 EDU / Unit I I I The City of Carlsbad Water Master Plan estimates water demand for 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. Prepared by Galen N. Peterson 51 November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 20 Home owner association (HOA) lots water usage was estimated based on the characteristics of the parcels and their expected land use. The HOA lots 47, 48 and 49 within Benefit Area No. 2 were assigned 2.41, 2.08 and 1.43 EDU per site, respectively. The three HOA areas in Planning Areas 9, IO and 12 and the Village Green area (OS-2) within Benefit Area No. 1 were assigned 3.8 EDU. The Village Square area in Planning Area 15 within Benefit Area No. 1 was assigned 1 .O EDU. The Assessment Diagram identifies two benefit zones for sewer improvements. Sewer Zone A includes all of the Assessment District parcels that benefit from the sewer improvements. Sewer Zone B includes the remaining Assessment District parcels that do not benefit from the sewer improve men ts . The water and sewer costs for new facilities (sewer relocation related to the construction of the road was allocated with the street costs) related to each street segment were allocated only to the assessment numbers that specially benefit from such water and sewer costs as set forth below: Poinsettia Lane Segment 1 - Poinsettia Lane Segment 1 water costs specially benefit only assessment numbers 22 through 39. Therefore, Poinsettia Lane Segment 1 water costs were allocated only to assessment numbers 22 through 39 based on the applicable EDU factors. Poinsettia Lane Segment 2 - Poinsettia Lane Segment 2 water costs specially benefit only assessment numbers 1 through 21. Therefore, Poinsettia Lane Segment 2 water costs were allocated only to assessment numbers 1 through 21 based on the applicable EDU factors. El Fuerte - El Fuerte water costs specially benefit only assessment numbers 1 through 21. Therefore, El Fuerte water costs were allocated only to assessment numbers 1 through 21 based on the applicable EDU factors. El Camino Real (Bressi Ranch portion) - El Camino Real (Bressi Ranch portion) water costs specially benefit only assessment numbers 1 through 21. Therefore, El Camino Real (Bressi Ranch portion) water costs were allocated only to assessment numbers 1 through 21 based on the applicable EDU factors. El Camino Real (Greens portion) - El Camino Real (Greens portion) water costs specially benefit only assessment numbers 22 through 39. Therefore, El Camino Real (Greens portion) water costs were allocated only to assessment numbers 22 through 39 based on the applicable EDU factors. 55 Prepared by Galen N. Peterson November 10,2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 21 Sewer costs benefit only assessment numbers in Sewer Zone A, as shown on the Assessment Diagram. Therefore, sewer costs for each road segment were allocated to the respective assessment numbers that the water was allocated to, but only to parcels within Sewer Zone A based on the applicable EDU factors. There was no assessment for sewer costs to the assessment numbers in Sewer Zone B, as shown on the Assessment Diagram. Summary of Special Benefit Factors 1. Primary Trips are defined by SANDAG as "one trip directly between origin and primary destination." Prepared by Galen N. Peterson November 10,2003 53 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 22 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) (ii) landscaped slopes and pocket parks within the home owners association open space areas (iii) landscaped areas of the public park (iv) landscaped areas of the school (v) landscaped areas of the private school and (vi) landscaped areas of the industrial section. The recycled water system specially benefits only the six categories stated above. Therefore, the recycled water system costs were allocated only to the irrigated area of these six categories. The percentage of area in each category, determined from the total area in all six 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 roadways and spread to all of the assessment numbers that specially benefit from the roadways. The resulting recycled water system cost for the second 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 the last four categories was spread to the assessment numbers that correspond to those areas. 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, except as noted below, the same factors as were used in allocating water costs. Due to the unique characteristics of the home owner association lots, the following dry utilities EDU factors were used for these lots: The HOA lots 47, 48 and 49 within Benefit Area No. 2 were assigned 1.5, 0.3 and 0.3 EDU per site, respectively. The three HOA areas in Planning Areas 9, 10 and 12 and the Village Green area (OS-2) within Benefit Area No. 1 were assigned 2.4 EDU. The Village Square area in Planning Area 15 within Benefit Area No. 1 was assigned 1 .O EDU. D-4 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 Prepared by Galen N. Peterson 9 November 10,2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 23 funding. Some of the incidental costs can be assigned directly to one of the benefit components as shown in Appendix “E”. 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 1 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 7% 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 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 Prepared by Galen N. Peterson SS November 10,2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 24 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, an “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. 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. Sb Prepared by Galen N. Peterson November 10,2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 25 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. E 20@ 2!f Dated: /b day of &$$v #e-,-, R.C.E. No. 18,364 (Expires 06/2005) ASSESSMENT ENGINEER CITY OF CARLSBAD SAN DIEGO COUNTY STATE OF CALIFORNIA 57 Prepared by Galen N. Peterson November 10, 2003 City of Carlsbad -Assessment District No. 2002-01 (Poinsettia Lane East) Page 26 I, LORRAINE M. WOOD, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the day of ,200-. I, LORRAINE M. WOOD, ClTYtCLERK CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA of the CITY OF CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was preliminarily approved by the City Council of the CITY OF CARLSBAD, CALIFORNIA, on the day of 9 200-. CITY CLERK CITY OF CARLSBAD STATE OF CALIFORNIA I, LORRAINE M. WOOD, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was approved and confirmed by the City Council of said City on the day of 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-. t SUPERINTENDENT OF STREETS /CITY ENGINEER CITY OF CARLSBAD STATE OF CALIFORNIA 58 Prepared by Galen N. Peterson November 10, 2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 27 Part IV An n ua I Ad m i n istrat ive Assess men t A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District specially benefiting from the improvements and for which the assessment is unpaid to pay for necessary costs and expenses incurred by the City of Carlsbad, and not otherwise reimbursed, resulting from the administration and collection of assessments and/or from the administration or registration of any bonds and reserve or other related funds. This maximum assessment hereinafter set forth is authorized pursuant t the provisions of assessment shall not exceed five percent (5.0%) of the annual assessment per individual assessment parcel per year. Section 10204(f) of the Streets and Highways Code, an ! said maximum 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. ___ Prepared by Galen N. Peterson 54 Fjovember 10,2003 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 28 Part V Diagram of Assess men t District Reduced copies of the Assessment Diagram are shown on the following pages Full-size copies of the Assessment Diagram are on file in the Office of the City Clerk, of the City of Carlsbad. As required by the Assessment Law, the Assessment Diagram shows the exterior boundaries of the Assessment District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Part Ill. The Assessor's parcel number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of the County of San Diego for the boundaries and dimensions of each parcel of land. bQ Prepared by Galen N. Peterson November 10, 2003 ASSESSMENT DIAGRAM OF ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) LEGEND -I I - ASYSMNT DlSlRlCT HWNDARY RIGHT-OF-WAY LINE BOVNDARY of ASWNT NU#.?€R AND PARCEL LWES VlClNrrY MAP BOUNDARY OF AD 2002-01 (POINSE7lIA LANE EAST) ASSESSMENT DIAGRAM OF ASSESSMENT DISTRICT NO. 2002-01 (POINSElTIA LANE EAST) OFTHEclTYOFcAFLsBAD couFcry OF SAN DEQO, STATE OF CALFORW LEGEND BENEFIT AREA NO. 1 I ASSESSMENT DIAGRAM OF ASSESSMENT DISTRICT NO. 2002-01 (POINStrA LANE EAST) LEGEND 3-#-OS UX