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HomeMy WebLinkAbout2004-05-04; City Council; 17622; Assessment District No. 2002-01n w oc a a 6 a z 0 i= 2 6 z 3 0 0 MTG. 5/04/04 DEPT. FIN CITY OF CARLSBAD -AGENDA BILL TITLE: ASSESSMENT DISTRICT NO. 2002-01 AB# 17,622 (POINSETTIA LANE EAST) PUBLIC HEARING, CONFIRMATION OF THE ASSESSMENTS, APPROVAL OF THE FORM OF THE SPECIAL ASSESSMENT DISTRICT DISCLOSURE AGREEMENT AND RELATED ACTIONS RECOMMENDED ACTION: Adopt Resolution No. 2004-150 approving the final report of the assessment engineer, declaring the results of the assessment ballot tabulation, confirming the assessments and ordering the acquisition or construction of improvements, together with appurtenances, in Assessment District No. 2002-01 (Poinsettia Lane East). Adopt Resolution No. 2004-151 Disclosure Agreement for Assessment District No. 2002-01 (Poinsettia Lane East). approving the form of the Special Assessment District ITEM EXPLANATION: On February 17, 2004, the City Council adopted a resolution stating its intent to form an assessment district to fund certain public improvements necessary to serve the Bressi Ranch and La Costa Greens developments. At that time, the City Council also adopted a map of the proposed assessment district boundaries, passed on the preliminary report by the assessment engineer, set the date for this public hearing and ordered the initiation of the assessment ballot proceedings. This agenda item contains the final actions necessary to complete the assessment district formation, confirm the assessments on the parcels of land within the assessment district and approve the Special Assessment District Disclosure Agreement. 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 properties, which will specially benefit from the improvements based upon the special benefit received by each such property. The boundaries of the proposed assessment district are shown on the location map and include the 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. The improvements proposed to be acquired by the City from the proceeds of bonds issued for the assessment district total approximately $35 million and include the following: 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; and 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. 0 0 0 Page 2 of Agenda Bill No. 17,622 The cost of acquiring such improvements includes the actual cost of construction plus the related actual costs for environmental, acquisition and creation of mitigation lands, engineering, and inspection. The primary improvements 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. As required by City Council Policy 33, the City's Special District Review Committee has reviewed the proposed assessment district. The Committee finds that it complies with the terms and conditions of the Council's Policy 33, with the clarifications and findings noted below, and recommends that the City Council proceed with the formation of the assessment district. Paragraph 14 of City Council Policy 33 states that it is the City's desire that any assessment be discharged prior to the sale of the individual lots; however, it does allow the pass-through of the assessment obligation to the homebuyer at the City's sole discretion. Both of 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 Council Policy 33, the estimated total amount of taxes, assessments and special taxes appearing on the property tax bill will not exceed 1.8 percent of the initial sales price of any residential dwelling unit to each prospective homeowner within both developments. This request is also consistent with the actions taken by the City Council on similar assessment districts in the past. Special Assessment District Disclosure Asreement When the assessments are permitted to be passed through to the residential homebuyers, Policy 33 requires that the developer provide full and complete disclosure of the assessment district to such prospective purchasers. The attached Special Assessment District Disclosure Agreement will provide for such notice and staff recommends approval of the agreement by the Council. The significant elements of the agreement are as follows: 9 Developer will disclose to prospective purchaser the total estimated assessment lien amount, the estimated annual payments on the property tax bill and the duration of payments until the assessment bonds are paid in full. 9 Developer will provide the option to the prospective purchaser to either accept the assessment lien and make the annual payments on the property tax bill or pay-off the total assessment lien, plus prepayment penalties, interest charges and other charges, at the time of close of escrow. 9 Developer will incorporate the amount of assessment lien into the advertised sales price of the home and clearly disclose the pass-through option in any sales literature. In addition, a notice of the assessment shall be prominently displayed in all sales offices offering units for sale. 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. Page 3 of Agenda Bill No. 17,622 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/GPA, 98-011MP 149(Q)/MP 98-01/LFMP IO/LFMP 11 (B)/CT 99-03/HDP 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). 99-01/CT 99-04/PUD OI-O8/HDP 99-02). 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. 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 public improvements described above and related costs totaling approximately $41.8 million. This amount includes district formation costs, debt issuance costs, capitalized interest and the establishment of a debt service reserve fund as well as the construction costs. 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 previously approved 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 City is also not responsible for the repayment of the bonds, when issued. The bonds will be secured by the property within the District and repaid through the levy of assessments on the property. 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 of 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 by the City. Council Policy 33 contains two financial tests that the District must meet to issue bonds and levy assessment on the property owners. The first one requires that the project property value to lien ratio be 4:l after the installation of the improvements to be financed. A project may be approved with a ratio between 4:l and a minimum of 3:l if the ratio is recommended by the underwriter and/or financial advisor and if the City Council finds the reduced ratio to be within parameters acceptable to them. It is anticipated that the District will meet this test. 3 Page 4 of Agenda Bill No. 17,622 The second test requires that the estimated total amount of taxes, assessments and special taxes appearing on the property tax bill not exceed 1.8 percent of the initial sales price of any residential dwelling unit. The assessment lien amounts on individual single-family residential dwelling units are estimated to range from $10,705 to $15,019 in the La Costa Greens development and $25,447 to $32,639 in the Bressi Ranch development. The annual payments for individual single-family residential dwelling units, which will be collected on the tax roll, are estimated to range from $800 to $1,300 in the La Costa Greens development and $2,000 to $2,700 in the Bressi Ranch development. Final annual assessments will be calculated prior to the issuance of the proposed bonds. At this time, it is believed that the District will also meet this test. Both of these tests will be applied again prior to bond issuance. EXHIBITS: 1. Location Map. 2. Resolution No. 2004-150 approving the final report of the assessment engineer, declaring the results of the assessment ballot tabulation, confirming the assessments and ordering the acquisition or construction of improvements, together with appurtenances, in Assessment District No. 2002-01 (Poinsettia Lane East). 3. Resolution No. 2004-151 approving the form of the Special Assessment District Disclosure Agreement for Assessment District No. 2002-01 (Poinsettia Lane East). 4. Special Assessment District Disclosure Agreement. 5. Final Engineer's Report dated March 29,2004. DEPARTMENT CONTACT: Lisa Hildabrand, (760) 602-2430, Ihild@ci.carlsbad.ca.us David Hauser, (760) 602-2730, dhaus@ci.carlsbad.ca.us EXHIBIT 1 LOCATION MAP 5 LOCAVON MAP POJECT NAME: ASSESSMENT DISTRICT NO. 2002-01 (POINSET77A LANE EAST) LEGEND EXHIBIT 1 p?A BOUNDARY OF ASSESSMENT DIS TRlC T - PROPOSED FULL STREET IMPRO VEMEN TS PROPOSED HALF- WD lH STREET IMPROVEMENTS 7 EXHIBIT 2 RESOLUTION 2004- 150 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 RESOLUTION NO. 2004-150 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE FINAL REPORT OF THE ASSESSMENT ENGINEER, DECLARING THE RESULTS OF THE ASSESSMENT BALLOT TABULATION, CONFIRMING THE ASSESSMENTS AND ORDERING THE ACQUISITION OR CONSTRUCTION OF IMPROVEMENTS, TOGETHER WITH {POINSETTIA LANE EAST). APPURTENANCES, IN ASSESSMENT DISTRICT NO. 2002-01 WHEREAS, the City Council of the City of Carlsbad, California, has previously adopted it: Resolution of Intention and initiated proceedings for the acquisition or construction of certair mprovements, together with appurtenances and appurtenant work described in Exhibit A attache( iereto and incorporated herein by this reference (collectively, the “Improvements”), in a specia assessment district pursuant to the terms and provisions of the “Municipal Improvement Act o 1913”, being Division 12 of the Streets and Highways Code of the State of Californi; [the “Improvement Act”), such special assessment district known and designated as Assessmen District No. 2002-01 (Poinsettia Lane East) (the “Assessment District”); and WHEREAS, pursuant to such Resolution of Intention, a report (the “Preliminary Engineer’: Report”) of Galen N. Peterson, Consulting Engineer, (the “Assessment Engineer”), as thereir xdered and as required by the Improvement Act, Article XlllD of the Constitution of the State o Salifornia (“Article XlllD”) and the Proposition 21 8 Implementation Act (Government Code Sectior 53750 and following) (the Improvement Act, Article XlllD and the Implementation Act are referred tc ierein collectively as the “Assessment Law”), was presented, considered and preliminarily approvec ~y the City Council on February 17,2004; and WHEREAS, as a result of the receipt of bids for the construction of certain of thc mprovements, the Assessment Engineer has revised the Preliminary Engineer’s Report to reflec such bids and submitted to the City Council a final Engineer’s Report (the “Final Engineer’s Report”) and WHEREAS, the Final Engineer’s Report, as prepared and submitted, contains all the matter: md items called for pursuant to the provisions of the Assessment Law, including the following: 8 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 A. The plans and specifications for the Improvements proposed to be acquired 01 constructed; B. The Assessment Engineer's estimate of the itemized and total costs and expenses oi the construction of the Improvements and of the incidental expenses in connection therewitt contained in the Final Engineer's Report including that portion of such costs and expenses representing the special benefit to be conferred by such Improvements on those parcels within the Assessment District; C. The diagram showing the Assessment District referred to and described in suct Resolution of Intention, and also the boundaries and dimensions of the respective subdivisions oi land within such Assessment District, as the same existed at the time of the passage of suck Resolution of Intention, each of which subdivisions have been given a separate number upon suct diagram; D. The proposed assessment upon the several subdivisions of land in the Assessmeni District, in proportion to the estimated special benefits to be conferred on such subdivisions respectively, by the Improvements to be acquired or constructed, and of the incidental expenses thereof; and E. WHEREAS, the City Council did set the time and place for a public hearing for hearing protests to the proposed Improvements, the extent of the Assessment District or to the proposed assessment; and A description of the Improvements to be acquired or constructed. WHEREAS, notices of such hearing accompanied by assessment ballot materials were regularly mailed in the time, form and manner required by the Assessment Law and as evidenced by a certificate on file with the transcript of these proceedings, a full hearing has been given, and at this time all assessment ballots submitted pursuant to the Assessment Law have been tabulated by the City Clerk of the City as the tabulation official appointed by the City Council, all in the manner provided by the Assessment Law; and Ill Ill Page 2 of Resolution No. 2004-150 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 WHEREAS, the City Clerk has prepared and submitted to this legislative body a Certificate 0’ Tabulation Official and Statement of Assessment Ballots Submitted (the “Certificate of thc Tabulation Official”), a copy of which is attached as Exhibit B hereto and incorporated herein by thi: reference, which reflects the results of the tabulation of the assessment ballots; and WHEREAS, at this time based upon the Certificate of Tabulation Official this City Counci determines that the assessment ballots received in favor of the proposed assessment and weightec as required by the Assessment Law exceed the assessment ballots received in opposition to thr assessment and similarly weighted and, therefore, a majority protest pursuant to the Assessmen Law does not exist; and WHEREAS, as required by the City Council Policy 33 (“Policy 33’7, the City’s Special Distric Review Committee has reviewed this Assessment District and found that the Assessment Distric complies with the terms and conditions of Policy 33; and WHEREAS, the applicants for the Assessment District, have requested that tht assessments be permitted to pass-through to the prospective purchasers of the individual lots withir the proposed Assessment District; and WHEREAS, the Special District Review Committee has reviewed this pass-through reques and recommends that the City Council approve such request since, as required by Policy 33, tht estimated total amount of taxes, assessments and special taxes appearing on the property tax bil will not exceed 1.8 percent of the initial sales price of any residential dwelling unit to eact prospective homeowner; and WHEREAS, the Special District Review Committee has recommended that the City Counci proceed with the formation of the Assessment District; and WHEREAS, this legislative body is now satisfied with the assessment and all matter! contained in the Final Engineer’s Report as submitted. Ill Ill Ill ill Page 3 of Resolution No. 2004-150 le 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. 2. RECITALS. The above recitals are all true and correct. FINDINGS. Based upon the determinations and recommendations of the Special District Review Committee, the Final Engineer's Report, the staff report and the foregoing recitals, this City Council hereby finds that: A. the proposed Assessment District complies with the terms and conditions of Policy 33; B. the Improvements proposed to be acquired by the City from the proceeds of bonds issued for the Assessment District include three roadway improvements that are a part of the City's General Plan circulation system, i.e., 4 lanes of Poinsettia Lane from El Camino Real easterly to connect to the existing terminus of Poinsettia Lane at the westerly boundary of the Rancho Carrillo development, 4 lanes of El Fuerte Street from Palomar Airport Road southerly to connect to the existing terminus of El Fuerte Street at the southerly boundary of the Bressi Ranch developmeni and 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, which are necessary to complete important links in the City's traffic circulation system, the primary purpose for utilizing Special District financing pursuant to Policy 33; C. the Improvements proposed to be financed through the Assessment Districi are required in the public interest; D. the estimated total amount of taxes, assessments and special taxes appearing on the property tax bill for lots within the Assessment District will not exceed 1.8 percenl of the initial sales price of any residential dwelling unit to each prospective homeowner; and E. the assessment ballots submitted pursuant to the Assessment Law in favor of the assessment and weighted as required by the Assessment Law exceed the assessment ballots submitted in opposition to the assessment and similarly weighted and it is therefore determined that a majority protest pursuant to Assessment Law does not exist. Ill Page 4 of Resolution No. 2004-150 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 3. SPECIAL BENEFITS RECEIVED. Based upon the Final Engineer’s Report and the :estimony and other evidence received at the public hearing, it is’hereby determined that: A. All properties within the boundaries of the Assessment District receive a special benefit from the Improvements; B. The proportionate special benefit derived by each parcel proposed to be assessed has been determined in relationship to the entirety of the cost of construction of the Improvements; C. No assessment is proposed to be imposed on any parcel, which exceeds the reasonable cost of the proportional special benefit to be conferred on such parcel from the I m provem en ts ; D. E. Only special benefits have been assessed; and There are parcels within the Assessment District which are owned or to be owned by non-profit public benefit organizations and home owners associations and other parcel: which are owned or to be owned by the City and Carlsbad Unified School District which are agencies as such term is defined in Article XlllD which specially benefit from the Improvements. A contributior equal to the special benefit to be received by such parcels shall be made by the developers in the form of a reduced purchase price for the acquisition of the Improvements. 4. PUBLIC INTEREST AND CONVENIENCE. The public interest and convenience require the acquisition or construction of the Improvements and, therefore, it is hereby ordered tha the Improvements be acquired or constructed, as set forth in the Resolution of Intention previousl) adopted by this City Council on February 17, 2004 by Resolution No. 2004-057 and as also set fortt in the Final Engineer’s Report presented to and considered by this City Council. 5. FINAL ENGINEER’S REPORT. The Final Engineer’s Report, as now submitted, i: hereby approved and such Report shall stand as the report as required by the Assessment Law fo all future proceedings for this Assessment District. 6. CONFIRMATION OF ASSESSMENTS. The assessments, as now filed in the Fina Engineer’s Report, and the diagram for the Improvements to be acquired or constructed, togethe with appurtenances and appurtenant work in connection therewith, are hereby confirmed. Page 5 of Resolution No. 2004-150 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The assessments contained in the Final Engineer’s Report and hereby levied and approved are as follows: A. The final assessments representing the costs and expenses to finance that portion of the cost of acquisition or construction of the Improvements representing the special benefit conferred by the Improvements on the parcels within the Assessment District. B. The annual assessment to pay for administrative costs in an amount not to exceed the maximum annual assessment as set forth in the Final Engineer’s Report. This City Council hereby approves a pass-through of the assessments to the purchasers of individual lots subject to the approval by the City Council of a disclosure program as required by paragraph 16 of Policy 33. 7. RECORDATION OF ASSESSMENT. The City Clerk shall forthwith deliver to the Superintendent of Streets the assessment, together with the diagram attached thereto and made a part thereof, as confirmed, with her certificate of such confirmation attached and the date thereof; and that such Superintendent of Streets shall then immediately record such diagram and assessment in his Office in a suitable book to be kept for that purpose and attach thereto his certificate of the date of such recording. 8. COUNTY RECORDER NOTICE. Upon confirmation of the assessments and recordation of the assessment roll and diagram, a certified copy of the assessment diagram shall be immediately filed in the Office of the County Recorder. Immediately thereafter, a copy of the notice of assessment shall be recorded in the Office of the County Recorder in the manner and form as sei forth by law and specifically Section 31 14 of the Streets and Highways Code of the State of California. 9. MAILED NOTICE. Upon recordation of the assessment diagram and notice of assessment, a notice shall be mailed to each owner of real property within the Assessment District at his last known address, as such address appears on the last equalized tax rolls of the County, such notice to set forth a statement containing a designation of the property assessed, as well as the amount of the final confirmed assessment, and further indicating that bonds will be issued pursuant to the “Improvement Bond Act of 191 5.” Page 6 of Resolution No. 2004-150 l-3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 10. PUBLICATION. Notice shall also be given by publication in a newspaper of general circulation, such notice setting forth the amount of the final assessment and indicating that such assessment is now due and payable, and further indicating that if such assessment is not paid within the allowed thirty (30) day cash collection period, bonds shall be issued as authorized by law. 11. ASSESSMENT COLLECTION. The County Auditor is hereby authorized and directed, in accordance with the provisions of Section 8682 of the Streets and Highways Code of the State of California, to enter into his assessment roll on which property taxes will next become due, opposite each lot or parcel of land affected, in a space marked “public improvement assessment” or by other suitable designation, the next and several installments of such assessment coming due during the ensuing fiscal year covered by the assessment roll and that such entry then shall be made each year during the life of the bonds for the proceedings for the above-referenced Assessment District. This authorization is continual until all assessment obligations have been discharged and the bonds terminated. As an alternate, and when determined to be in the best interests for bondholders of the Assessment District, this legislative body may, by Resolution, designate an official other than the County Tax Collector and/or other agent, to collect and maintain records of the collection of the assessments, including a procedure other than the normal property tax collection procedure. In accordance with the provisions of Section 8685 of the Streets and Highways Code, if an) lot or parcel of land affected by any assessment is not separately assessed on the tax roll so that the installment of the assessment to be collected can be conveniently entered thereon, then the Auditoi shall enter on the roll a description of the lot or parcel affected, with the name of the owners, il known, but otherwise the owners may be described as “unknown owners”, and extend the proper installment opposite the same. 12. ASSESSMENT VERIFICATION STATEMENT. The County Auditor shall, within 90 days after any special assessment installment becomes delinquent, render and submit a detailed report showing the amounts of the installments, interest, penalties and percentages so collected, for the preceding term and installment date, and from what property collected, and further identify any properties which are delinquent and the amount and length of time for such delinquency, and further Page 7 of Resolution No. 2004-150 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 set forth a statement of percentages retained for the expenses of making such collections This request is specifically made pursuant to the authorization of Section 8683 of the Streets an( Highways Code of the State of California. 13. ASSESSMENT DISTRICT FUNDS. The Finance Director is hereby authorized at thi: time, if not previously done, to establish the following funds as necessary for the payment of cost! and expenses and administration of the proceedings for this Assessment District: A. IMPROVEMENT FUND: All monies received from cash collections shall bt placed into the Improvement Fund. B. REDEMPTION FUND: All monies received from the payment of assessment! shall be placed in the Redemption Fund. For particulars as to the administration and handling of the Funds, the specific terms an( conditions shall be set forth in a Bond Indenture to be approved by the subsequent adoption of i Resolution Authorizing the Issuance of Bonds. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the Cit of Carlsbad on the 4th day of May ,2004 by the following vote, to wit: AYES: Council Elembers Lewis, Finnila, Kulchin, Hall and Packard NOES: None ABSENT: None CLAUDE A. LEWIS, Mxyor ATTEST: A LORR~INEh. WOOD, City Clerk " (SEAL) Page 8 of Resolution No. 2004-150 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 1. EXHIBIT A DESCRIPTION OF IMPROVEMENTS 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 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 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 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 Assessment 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. I7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 ia 19 20 21 22 23 24 25 26 27 28 Assessment ballots received in favor of the proposed assessment: EXHIBIT B 5 CERTIFICATE OF TABULATION OFFICIAL AND STATEMENT OF ASSESSMENT BALLOTS SUBMITTED STATE OF CALIFORNIA 1 COUNTY OF SAN DIEGO CITY OF CARLSBAD 1 ) ss. The undersigned, the duly authorized tabulation official appointed by the City Council of the City of Carlsbad, DOES HEREBY CERTIFY that pursuant to the provisions of Article XlllD Df the Constitution of the State of California and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following), I did tabulate the assessment ballots timely submitted in the assessment ballot proceedings pertaining tc Assessment District No. 2002-01 (Poinsettia Lane East). I FURTHER CERTIFY that this Statement of Assessment Ballots Received shows the assessment ballots submitted in favor of the assessment and the assessment ballots submitted in opposition to the assessment, each total weighted according to the financial obligation of the affected properties for which the assessment ballots were submitted. Assessment ballots received opposition to the proposed assessment: 0 This certification is executed this 6th day of I.Iay , 2004 in Carlsbad, California. < L/jA./vLp, mm -- W’Cleik of the City of Carlsbad, - as the fabulation Official WHEN RECORDED RETURN -ro City Clerk City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, California 92008 NOTICE OF ASSESSMENT Pursuant to the requirements of Section 3 1 14 of the Streets and Highways Code of the State of California. the widersigncd, CI'I'Y CIXRK of the CITY OF CARLSBAD, COUNTY OF SAN DIEGO. STATE OF CAI ,IFORNIA, HEREBY GlVES NOTICE that a diagram and asscssrnent were recorded in the Office of the Superintendent of Streets of said Community Services District, as provided for in said Section 3 114, and relating to the following described real property: All that property lying within the boundaries of the Assessment District, as delineated upon an assessment diagram of said District entitled Assessment District No. 2002-01 (Poinsettia Lane East) filed in the office of the County Recorder of San Diego County on the BOOK OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS, Official Records of said County, and as shown on an assessinetit diagram recorded in the Office of the Superintendent of Streets of said Conimunity Services District, and reference is hereby made to said Map for the description of the real property within said Assessment District. day of JiAypf~ . 04503 2004, in Book 3 8 Page(s) 37. Document No. 2064 - fi4 NOTICE tS FURTHER GlVEN that upon the recording of this Notice in the Office of the County Recorder, the several asscssmcnts assessed on the lots, pieces and parcefs shown on said filed Assessment Diagram shall beconie a lien upon the lots or portions of lots assessed, respectively. ' In addition to the assessment to pay the costs and expenses of the improvements to be constructed. all o~vners of real property within the Assessment District are subject to a separate and additional assessment to be levied annually to pay for costs not otherwise reimbursed which will result from the adniinistration and collection of assessments or from the administration or registration of any associated bonds and rcscrw or related funds. Reference is made to the Assessment Diagram and Assessment Roll recorded in the Office of the Superintendent of Streets for the amount of any final and confirmed assessments, including any annual assessment as levied for adininistrative costs or maintenance, as applicable. Notice of Assessment I - Attached hereto is a list indicating the names of the assessed owners, all as required pursuant to Section 27288.1 of the Government Code of the State of California. I ,2004. ,/ r CITY OF CARLSEAD STATE OF CALIFORNIA Notice of Assessment 2 Exhibit A CITY OF CARLSBAD ASSESSMENT DJSTRICT NO. 2002-01 (Poinscttia Lane East) LIST OF PROPERTY OWNERS Name of Prupcrty Owner(s) - General American Life Insurance Co. MetroPolitan Life Greystone Homes, Inc. Bressi Gardenlane, LLC -~~ Lennar Bressi Ranch Venture, LLC Real Estate Collateral Management Company Legal Description Lots 1 through 5 inclusive of Carlsbad Tract CT 00-06 Lots 6 through 10 inclusive and Lots 12 and 16 of Carlsbad Tract CT 00-06 Lots 11, 13, 15 and Lots 17 through 22 inclusive of Carlsbad Tract CT 00-06 Lot 14 of Carlsbad Tract CT 00-06 Lots 1 through 4 inclusive, Lots 6 through 14 inclusive and Lots 16 through 49 inclusive of Carlsbad Tract CT 99-03 Notice of Assessment A- 1 - City of Carlsbad May 5,2004 TO: PROPERTY OWNERS RE: ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) NOTICE OF ASSESSMENT The purpose of this letter is to notify you that the City of Carlsbad (the "City") has formed Assessment District No. 2002-01 (Poinsettia Lane East) (the "Assessment District") and confirmed the levy of assessments on the properties within the Assessment District for the purpose of financing the construction of certain street and other improvements to serve the properties within the Assessment District. The City Council took this action following the tabulation of the assessment ballots received from the owners of property within the Assessment District that revealed that over 50% of the assessment ballots submitted were in favor of the establishment of the Assessment District and the levy of the assessments. As the record owner of property within the Assessment District, enclosed please find your statement and final assessment amount as confirmed for the Assessment District. The assessments were levied to finance that portion of the cost of the construction of authorized street and other improvements. The assessments represent the special benefit that the parcels within the Assessment District will receive from the improvements. Please note that if you wish, you may either totally discharge or make a partial payment against your assessment for the period specified in the notice and thus avoid incurring any interest, redemption costs or financing charges on the amount paid during this period. Please refer to the notice and information enclosed for the exact amount which you may pay during this 30 day period to completely discharge your assessment. If you do nothing, the unpaid balance of your final assessment will be collected in annual installments, together with interest, on your property tax bill. If you have any questions regarding this letter or the enclosed notice, please feel free to call me at (760) 602-2430 Very truly yours, LISA HILDABRAND Finance Director 1635 Faraday Avenue Carlsbad, CA 92008-7314 0 (760) 602-2430 FAX (760) 602-8553 www.ci.carlsbad.ca.us 0 Business License (760) 602-2495 - Utility Billing (760) 602-2420 0 @ Purchasing (760) 602-2460 - FAX (760) 602-8556 - Bid Line (760) 602-2464 CITY OF CARLSBAD (POINSETTIA LANE EAST) ASSESSMENT DISTRICT NO. 2002-01 NOTICE OF RECORDATION OF ASSESSMENT AND DIAGRAM STATEMENT OF ASSESSMENT NOTICE IS HEREBY GIVEN to all owners of real property liable to be assessed to pay the costs and expenses of the sewer improvements to be constructed under proceedings conducted by the CITY COUNCIL of the CITY OF CAIUSBAD, CALIFORNIA, pursuant to the terms and provisions of the "Municipal Improvement Act of 19 13", being Division 12 of the Streets and Highways Code of the State of California, for a special assessment district, said special assessment district known and designated as Assessment District No. 2002-0 1 (Poinsettia Lane East) (the "Assessment District"). You are hereby notified that on May 4, 2004, the Assessment and Diagram to pay the costs and expenses of said construction were recorded in my office. Your assessment is now due and payable immediately at the Office of the Treasurer. You may elect to pay your assessment in whole or in part on or before June 4, 2004 (the "Cash Collection Period"). If you elect not to pay your assessment in full before the expiration of the Cash Collection Period, the City of Carlsbad may elect to issue bonds pursuant to the "Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California, to finance the share of the costs of sewer system represented by your assessment. Any unpaid portion of your assessment will be collected in annual installments, together with interest thereon, on your property tax bill. After the expiration of the Cash ColIection Period, your assessment may be paid and your property cleared of the assessment lien by the payment of the following sums: (a) any installment of principal and interest of your assessment which has been posted to the tax roll for the current fiscal year; (b) the unpaid balance of the principal of your assessment plus the applicable redemption premium; (c) the amount of any delinquent assessment installments, including penalties, interest and costs; (d) the estimated cost of calling bonds; (e) interest on the unpaid principal balance of your assessment to the date of call of the bonds, unless included in (a) above and (f) a reasonable fee for the cost of administering the prepayment and the associated advance retirement of bonds. Notice of Recordation - Publication 1 In addition to the assessment to pay the costs and expenses of the sewer improvements to be financed, all owners of real property within the Assessment District are subject to a separate and additional assessment to be levied annually to pay for costs not otherwise reimbursed which will result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or related funds. DATED: #- ,2004 SUPERINTENDENT OF STREETS CITY OF CARLSBAD STATE OF CALIFORNIA Notice of Recordation - Publication 2 CITY OF CARLSBAD (Poinsettia Lane East) ASSESSMENT DISTRICT NO. 2002-01 NOTICE OF RECORDATION OF ASSESSMENT AND DIAGRAM STATEMENT OF ASSESSMENT NOTICE IS HEREBY GIVEN to all owners of real property liable to be assessed to pay the costs and expenses of the sewer improvements to be constructed under proceedings conducted by the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA, pursuant to the terms and provisions of the "Municipal Improvement Act of 191 3", being Division 12 of the Streets and Highways Code of the State of California, for a special assessment district, said special assessment district known and designated as Assessment District No. 2002-01 (Poinsettia Lane East) (the "Assessment District"). You are hereby notified that on May 4, 2004, the Assessment and Diagram to pay the costs and expenses of said construction were recorded in my office. Your assessment is now due and payable immediately at the Office of the Treasurer. You may elect to pay your assessment in whole or in part on or before June 4, 2004 (the "Cash Collection Period"). The amount of your assessment is set forth at the end of this notice. The amount that you would need to pay in order to pay your assessment in full is also included. This amount is identified as the "Assessment Payoff Amount." This amount is less than the full amount of your assessment because the City of Carlsbad will not need to incur certain financing costs pertaining to those assessments that are paid during the Cash Collection Period. If you elect not to pay your assessment in full before the expiration of the Cash Collection Period, the City of Carlsbad may elect to issue bonds pursuant to the "Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California, to finance the share of the costs of sewer system represented by your assessment. Any unpaid portion of your assessment will then be collected on your property tax bill in annual installments, together with interest thereon. After the expiration of the Cash Collection Period, your assessment may be paid and your property cleared of the assessment lien by the payment of the following sums: (a) any installment of principal and interest of your assessment which has been posted to the tax roll for the current fiscal year; (b) the unpaid balance of the principal of your assessment plus the applicable redemption premium; (c) the amount of any delinquent assessment installments, including penalties, interest and costs; (d) the estimated cost of calling bonds from the proceeds of such prepayment; (e) interest on the unpaid principal balance of your assessment to the date of call of the bonds, unless included in (a) above and (f) a reasonable fee for the cost of administering the prepayment and the associated advance retirement of bonds. In addition to the assessment to pay the costs and expenses of the sewer improvements to be financed, all owners of real property within the Assessment District are subject to a separate and additional assessment to be levied annually to pay for costs not otherwise reimbursed which Notice of Recordation - Mailing 1 will result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or related funds. DATED: 4 ,2004 HL Rz-L SUPERINTENDENT OF STREETS CITY OF CARLSBAD STATE OF CALIFORNIA Identified Parcels: Assessment Numbers: 1 through 5 Legal Description: Lots 1 through 5 inclusive of Carlsbad Tract CT 00-06 General American Life insurance Co. Metropolitan Life Attn: Todd Morefield 333 S. Hope Street, Suite 1150 Los Angeles, CA 90071 Confirmed Assessment: $8,814,475.39 Assessment Payoff Amount: $7,249,906.01 Notice of Recordation - Mailing 2 CITY OF CARLSBAD (Poinsettia Lane East) ASSESSMENT DISTRICT NO. 2002-01 NOTICE OF RECORDATION OF ASSESSMENT AND DIAGRAM STATEMENT OF ASSESSMENT NOTICE IS HEREBY GIVEN to all owners of real property liable to be assessed to pay the costs and expenses of the sewer improvements to be constructed under proceedings conducted by the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA, pursuant to the terms and provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, for a special assessment district, said special assessment district known and designated as Assessment District No. 2002-01 (Poinsettia Lane East) (the "Assessment District"). You are hereby notified that on May 4, 2004, the Assessment and Diagram to pay the costs and expenses of said construction were recorded in my office. Your assessment is now due and payable immediately at the Office of the Treasurer. You may elect to pay your assessment in whole or in part on or before June 4, 2004 (the "Cash Collection Period"). The amount of your assessment is set forth at the end of this notice. The amount that you would need to pay in order to pay your assessment in full is also included. This amount is identified as the "Assessment Payoff Amount." This amount is less than the full amount of your assessment because the City of Carlsbad will not need to incur certain financing costs pertaining to those assessments that are paid during the Cash Collection Period. If you elect not to pay your assessment in full before the expiration of the Cash Collection Period, the City of Carlsbad may elect to issue bonds pursuant to the "Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California, to finance the share of the costs of sewer system represented by your assessment. Any unpaid portion of your assessment will then be collected on your property tax bill in annual installments, together with interest thereon. After the expiration of the Cash Collection Period, your assessment may be paid and your property cleared of the assessment lien by the payment of the following sums: (a) any installment of principal and interest of your assessment which has been posted to the tax roll for the current fiscal year; (b) the unpaid balance of the principal of your assessment plus the applicable redemption premium; (c) the amount of any delinquent assessment installments, including penalties, interest and costs; (d) the estimated cost of calling bonds from the proceeds of such prepayment; (e) interest on the unpaid principal balance of your assessment to the date of call of the bonds, unless included in (a) above and (f) a reasonable fee for the cost of administering the prepayment and the associated advance retirement of bonds. In addition to the assessment to pay the costs and expenses of the sewer improvements to be financed, all owners of real property within the Assessment District are subject to a separate and additional assessment to Notice of Recordation - Mailing be levied annually to pay for costs not otherwise reimbursed which 1 will result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or related funds. SUPERINTENDENT OF STREETS CITY OF CARLSBAD STATE OF CALIFORNIA Identified Parcels: Assessment Numbers: 6 through 10 and 12 Legal Description: Lots 6 through 10 inclusive and Lots 12 and 16 of Carlsbad Tract CT 00-06 Greystone Homes, Inc. Attn: Mike Levesque 1525 Faraday Ave, Suite 300 Carlsbad, CA 92008 Confirmed Assessment: $1 2,715,401.30 Assessment Payoff Amount:$l0,458,417.57 Notice of Recordation - Mailing 2 CITY OF CARLSBAD (Poinsettia Lane East) ASSESSMENT DISTRICT NO. 2002-01 NOTICE OF RECORDATION OF ASSESSMENT AND DIAGRAM STATEMENT OF ASSESSMENT NOTICE IS HEREBY GIVEN to all owners of real property liable to be assessed to pay the costs and expenses of the sewer improvements to be constructed under proceedings conducted by the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA, pursuant to the terms and provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, for a special assessment district, said special assessment district known and designated as Assessment District No. 2002-0 1 (Poinsettia Lane East) (the "Assessment District"). You are hereby notified that on May 4, 2004, the Assessment and Diagram to pay the costs and expenses of said construction were recorded in my office. Your assessment is now due and payable immediately at the Office of the Treasurer. You may elect to pay your assessment in whole or in part on or before June 4, 2004 (the "Cash Collection Period"). The amount of your assessment is set forth at the end of this notice. The amount that you would need to pay in order to pay your assessment in full is also included. This amount is identified as the "Assessment Payoff Amount." This amount is less than the full amount of your assessment because the City of Carlsbad will not need to incur certain financing costs pertaining to those assessments that are paid during the Cash Collection Period. If you elect not to pay your assessment in full before the expiration of the Cash Collection Period, the City of Carlsbad may elect to issue bonds pursuant to the "Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California, to finance the share of the costs of sewer system represented by your assessment. Any unpaid portion of your assessment will then be collected on your property tax bill in annual installments, together with interest thereon. After the expiration of the Cash Collection Period, your assessment may be paid and your property cleared of the assessment lien by the payment of the following sums: (a) any installment of principal and interest of your assessment which has been posted to the tax roll for the current fiscal year; (b) the unpaid balance of the principal of your assessment plus the applicable redemption premium; (c) the amount of any delinquent assessment installments, including penalties, interest and costs; (d) the estimated cost of calling bonds from the proceeds of such prepayment; (e) interest on the unpaid principal balance of your assessment to the date of call of the bonds, unless included in (a) above and (f) a reasonable fee for the cost of administering the prepayment and the associated advance retirement of bonds. In addition to the assessment to pay the costs and expenses of the sewer improvements to be financed, all owners of real property within the Assessment District are subject to a separate and additional assessment to be levied annually to pay for costs not otherwise reimbursed which Notice of Recordation - Mailing 1 will result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or related funds. DATED: 4 ,2004 -AL Q& SUPEFSNTENDENT OF STREETS CITY OF CARLSBAD STATE OF CALIFORNIA Identified Parcels: Assessment Numbers: 11,13 and 15 through 21 1 Confirmed assessment: $7,812,874.26 Assessment Pavoff Amount: $6,426,089.07 Legal Description: Lots 11, 13, 15 and Lots 17 through 22 inclusive of Carlsbad Tract CT 00-06 Bressi Gardenlane, LLC c/o Lennar Homes of California Attn: Graham Jones 24800 Chrisanta Drive, Suite 200 Mission Viejo, CA 92691 Notice of Recordation - Mailing 2 CITY OF CARLSBAD (Poinsettia Lane East) ASSESSMENT DISTRICT NO. 2002-01 NOTICE OF RECORDATION OF ASSESSMENT AND DIAGRAM STATEMENT OF ASSESSMENT NOTICE IS HEREBY GIVEN to all owners of real property liable to be assessed to pay the costs and expenses of the sewer improvements to be constructed under proceedings conducted by the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA, pursuant to the terms and provisions of the "Municipal Improvement Act of 1913", being Division 12 of the Streets and Highways Code of the State of California, for a special assessment district, said special assessment district known and designated as Assessment District No. 2002-0 1 (Poinsettia Lane East) (the "Assessment District"). You are hereby notified that on May 4, 2004, the Assessment and Diagram to pay the costs and expenses of said construction were recorded in my office. Your assessment is now due and payable immediately at the Office of the Treasurer. You may elect to pay your assessment in whole or in part on or before June 4, 2004 (the "Cash Collection Period"). The amount of your assessment is set forth at the end of this notice. The amount that you would need to pay in order to pay your assessment in full is also included. This amount is identified as the "Assessment Payoff Amount." This amount is less than the full amount of your assessment because the City of Carlsbad will not need to incur certain financing costs pertaining to those assessments that are paid during the Cash Collection Period. If you elect not to pay your assessment in full before the expiration of the Cash Collection Period, the City of Carlsbad may elect to issue bonds pursuant to the "Improvement , Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California, to finance the share of the costs of sewer system represented by your assessment. Any unpaid portion of your assessment will then be collected on your property tax bill in annual installments, together with interest thereon. After the expiration of the Cash Collection Period, your assessment may be paid and your property cleared of the assessment lien by the payment of the following sums: (a) any installment of principal and interest of your assessment which has been posted to the tax roll for the current fiscal year; (b) the unpaid balance of the principal of your assessment plus the applicable redemption premium; (c) the amount of any delinquent assessment installments, including penalties, interest and costs; (d) the estimated cost of calling bonds from the proceeds of such prepayment; (e) interest on the unpaid principal balance of your assessment to the date of call of the bonds, unless included in (a) above and (f) a reasonable fee for the cost of administering the prepayment and the associated advance retirement of bonds. In addition to the assessment to pay the costs and expenses of the sewer improvements to be financed, all owners of real property within the Assessment District are subject to a separate and additional assessment to -~ be levied annually to pay for costs not otherwise reimbursed which Notice of Recordation - Mailing 1 A will result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or related funds. DATED: AV 4 - ,2004 v- SUPERINTENDENT OF STREETS CITY OF CARLSBAD STATE OF CALIFORNIA I dent ified Pa rce I: Assessment Number: 14 Legal Description: Lot 14 of Carlsbad Tract CT 00-06 Lennar Bressi Ranch Venture, LLC c/o Lennar Homes of California Attn: Graham Jones 24800 Chrisanta Drive, Suite 200 Mission Viejo, CA 92691 Notice of Recordation - Mailing Confirmed Assessment: $74,691.03 Assessment Payoff Amount: $61,433.37 2 CITY OF CARLSBAD (Poinsettia Lane East) ASSESSMENT DISTRICT NO. 2002-01 NOTICE OF RECORDATION OF ASSESSMENT AND DIAGRAM STATEMENT OF ASSESSMENT NOTICE IS HEREBY GIVEN to all owners of real property liable to be assessed to pay the costs and expenses of the sewer improvements to be constructed under proceedings conducted by the CITY COUNCIL of the CITY OF CARLSBAD, CALIFORNIA, pursuant to the terms and provisions of the "Municipal Improvement Act of 19 13", being Division 12 of the Streets and Highways Code of the State of California, for a special assessment district, said special assessment district known and designated as Assessment District No. 2002-0 1 (Poinsettia Lane East) (the "Assessment District"). You are hereby notified that on May 4, 2004, the Assessment and Diagram to pay the costs and expenses of said construction were recorded in my office. Your assessment is now due and payable immediately at the Office of the Treasurer. You may elect to pay your assessment in whole or in part on or before June 4, 2004 (the "Cash Collection Period"). The amount of your assessment is set forth at the end of this notice. The amount that you would need to pay in order to pay your assessment in full is also included. This amount is identified as the "Assessment Payoff Amount." This amount is less than the full amount of your assessment because the City of Carlsbad will not need to incur certain financing costs pertaining to those assessments that are paid during the Cash Collection Period. If you elect not to pay your assessment in full before the expiration of the Cash Collection Period, the City of Carlsbad may elect to issue bonds pursuant to the "Improvement Bond Act of 1915", being Division 10 of the Streets and Highways Code of the State of California, to finance the share of the costs of sewer system represented by your assessment. Any unpaid portion of your assessment will then be collected on your property tax bill in annual installments, together with interest thereon. After the expiration of the Cash Collection Period, your assessment may be paid and your property cleared of the assessment lien by the payment of the following sums: (a) any installment of principal and interest of your assessment which has been posted to the tax roll for the current fiscal year; (b) the unpaid balance of the principal of your assessment plus the applicable redemption premium; (c) the amount of any delinquent assessment installments, including penalties, interest and costs; (d) the estimated cost of calling bonds from the proceeds of such prepayment; (e) interest on the unpaid principal balance of your assessment to the date of call of the bonds, unless included in (a) above and (f) a reasonable fee for the cost of administering the prepayment and the associated advance retirement of bonds. In addition to the assessment to pay the costs and expenses of the sewer improvements to be financed, all owners of real property within the Assessment District are subject to a separate and additional assessment to be levied annually to pay for costs not otherwise reimbursed which Notice of Recordation - Mailing 1 will result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or related funds. DATED: MA.Y 4 ,2004 SUPERINTENDENT OF STREETS CITY OF CARLSBAD STATE OF CALIFORNIA Identified Parcels: Assessment Numbers: 22,23,25 through 32 and 34 through 39 Legal Description: Lots 1 through 4 inclusive, Lots 6 through 14 inclusive and Lots 16 through 49 inclusive of Carlsbad Tract CT 99-03 Real Estate Collateral Management Company C/o Household Commercial of California, Inc. Attn: Fred R. Schimel 2700 Sanders Road Prospect Heights, IL 600070 Confirmed Assessment: $1 2,348,901 .OO Assessment Payoff Amount:$lO,l56,971.08 Notice of Recordation - Mailing 2 PROOF OF PUBLICATION (2010 & 2011 C.C.P.) STATE OF CALIFORNIA County of San Diego I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years and not a party to or interested in the above- entitled matter. printer of I am the principal clerk of the North County Times Formerly known as the Blade-Citizen and The Times-Advocate and which newspapers have been adjudicated newspapers of general circulation by the Superior Court of the County of San Diego, State of California, for the City of Oceanside and the City of Escondido, Court Decree number 171349, for the County of San Diego, that the notice of which the annexed is a printed copy (set in type not smaller than nonpariel), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: I certify (or declare) under penalty of perjury that the foregoing is true and correct. Dated at SAN MARCOS California This ' ' Day of May, 2004 This space is for the County Clerk's Filing Stamp Proof of Publication of . CITY OF CARLSBAD ASSESSMENT DISTRICT NO. 2002-01 POlNSEmA LANE EAS STATEMENT OF ASSESSMENT NOTICE IS HEREBY GIVEN to all owners of real property liable to be assessed to pa the costs and ex enses of the sewer improvements to be constructed under roceedr ings conducted gy the CITY COUNCIL of the CIN OF CARLSBAD, CALIfORNIA, pursuant,to the terms and provisions of the "Municipal Im rovement Act of 1913 ", be- ing Division 12 of the Streets and Highways Code of the !$ate of California for a spe- cial assessment district said s ecial assessment district known and designated as Assessment District,No.'2002-OP (Poinsettia Lane East) (the" Assessment District"). You are hereby notified that on May 4 2004, the Assessment and Diagram to pay the Your assessment is now due and payable immediately at the Office of the Treasurer. You may elect to pay our assessment in whole or in part on or before June 4, 2004 (the 'Cash Collection Jeriod"). If you elect not to pa our assessment in full before the expiration of the Cash Collection Period, the Ci o?(!arlsbad may elect to issue bonds ursuant to the "Improvement Bond Act of 191g' bein Division 10 of the Streets and hghways Code of the State of California, to finance &e share of the costs of sewer system represented by your assessment. Any unpaid portion of your assessment will be collected in annual installments. together with interest thereon, on your property tax NOTICE OF RECOkDAnON OF ASSESSM& AND DiAGRAM * costs and expenses of said constructibn were recorded in my office. bill After the expiration of the Cash Collection Period your assessment may be paid and your property cleared of the assessment lien by the payment of the following sums: (a) any installment of principal and interest of your assessment which has been osted to the tax roll for the current fiscal year; (b) the unpaid balance of the principal or sessment plus the applicable redemption premium' (c) the amount of any de#$% assessment installments including penalties interekt and costs (d) the estimated cost of calling bonds. (e) interest on the unpaid pdncipal balance of ;our assessment to the date of call of the bonds unless included in (a above and (I) a reasonable fee for the cost of administering the prepayment and tbe associated advance retirement of bonds. In addition to the assessment to pay the costs and expenses of the sewer improve- ments to be financed all owners of real property within the Assessment District are subject to a separate and additional assessment to be levied annuall to ay for costs not otherwise relmbursed which wi!l result from the administration andlcolEction of as- sessments or from the administration or registration of any associated bonds and re- serve or related funds. DATED: MAY 4.2004 ISl SUPERINTENDENT OF STREETS CITY OF CARLSBAD STATE OF CALIFORNIA - . . - - - - . Ma 8,14,2004 - NC? 1637862 Signature NORTH COUNTY TIMES Legal Advertising CERTIFICATE OF COMPLIANCE WITH NOTICE REQUIREMENTS CITY OF CARLSBAD (POINSETTIA LANE EAST) ASSESSMENT DISTRICT NO. 2002-01 STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CARLSBAD Lorraine Wood , under penalty of perjury, CERTIFIES as follows: The undersigned is now, and at all times mentioned herein was, the duly qualified and acting CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA, and as such, accomplished or caused the accomplishment of the following notice requirements in connection with the referenced Assessment District, as noted: RECORDATION The original of the ASSESSMENT ROLL AND DIAGRAM was recorded in the Office of the appointed Superintendent of Streets on the day of Mw+ y ,2004. A copy of the ASSESSMENT DIAGRAM was filed in the Office of the County Recorder, in Book of Assessment and Community Facilities District Maps, Book 58 , Page(s) 37 ,onthe 5edayof A copy of the NOTICE OF ASSESSMENT was recorded in the Office of the County Recorder on the 6e day of ,2004, as Document No. 20 8 # - .+ ,2004, as Document No. Z 084- .op PUBLICATION + STATEMENT OF ASSESSMENT was published in the pursuant to Section 6066 of the Government Code of the State of California once a week for two successive weeks, with at least five days intervening between publications; said publications being accomplished on the day of North Countv Times 8th Nay ,2004, and on the 14th day of May ,2004. MAILING The STATEMENT OF ASSESSMENT was mailed, postage prepaid, to each person owning property in the Assessment District at the last known address as it appears on the tax rolls of the County, or on file in the office of Galen N. Peterson Consulting Engineer, the Assessment Engineer, which Notice designated the property belonging to each such owner and contained a statement of the amount to be assessed; said mailing being accomplished on the 3-a day of ,2004. Certificate of Compliance 1 EXECUTEDthis 2nd dayof June ,2004, at Carlsbad, California. n CITY OF GRLSBAD STATE OF CALIFORNIA Certificate of Compliance 2 EXHIBIT 3 RESOLUTION NO. 2004- 151 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. 2004-151 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING THE FORM OF THE SPECIAL ASSESSMENT DISTRICT DISCLOSURE AGREEMENT FOR ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST). WHEREAS, the City Council of the City of Carlsbad, California, pursuant to the provisions o the Division 12 of the Streets and Highways Code of the State of California (the Municipa Improvement Act of 1913) (the "Improvement Act") has undertaken proceedings to form and ha! formed an Assessment District for the purpose of financing the acquisition or construction of certair works of improvement, together with appurtenances, such special assessment district known an( designated as Assessment District No. 2002-01 (Poinsettia Lane East) (the "Assessment District") and WHEREAS, the Developers requested that the assessments be permitted to pass-through tc the purchasers of individual lots within the Assessment District; and WHEREAS, the City Council has approved the pass-through of such assessments subject tc the approval by the City Council of a disclosure program as required by paragraph 16 of the Cit Council's Policy 33; and WHEREAS, the City and the Developer desire to enter into a Special Assessment Distric Disclosure Agreement, the form of which has been presented to the City Council (the "Disclosurt Agreement"), to establish such a disclosure program. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad California, as follows: 1. The above recitals are all true and correct. /I/ Ill I// Ill I// Ill 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 form of Disclosure Agreement, herewith submitted, is approved substantially in :he form submitted. The Mayor is hereby authorized to execute the final form of such agreement on iehalf of the City. The City Manager, subject to the review of the City Attorney and Bond Counsel, is uthorized to approve changes in such agreement deemed to be in the best interests of the City, approval of such changes to be evidenced by the execution of such agreement. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City 2f Carlsbad on the 4th day of Iiay , 2004 by the following vote, to wit: AYES: Council Members Lewis, Finnila, Kulchin, Hall and Packard NOES: None ABSENT: None ATTEST: &d,U L%?L97]32/~J7g LORRAINE M. WOOD, City Clerk Page 2 of Resolution No. 2004-151 (SEAL) EXHIBIT 4 SPECIAL ASSESSMENT DISTRICT DISCLOSURE AGREEMENT Recording Requested By and when Recorded Mail to: City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 Attn: City Clerk SPECIAL ASSESSMENT DISTRICT DISCLOSURE AGREEMENT This Agreement entered into as of this day of City of Carlsbad, a municipal corporation (“City”) and a California limited liability company (“Developer”). ,2004 by and between the 7 WHEREAS, Developer has petitioned the City Council of the City to initiate and the City has initiated proceedings for the formation of a special assessment district pursuant to the terms and provisions of the “Municipal Improvement Act of 1913”, being Division 12 of the Streets and Highways Code of the State of California, said special assessment district known and designated as ASSESSMENT DISTRICT NO 2002-01 (POINSETTIA LANE EAST) (hereinafter referred to as the “Assessment District”); and WHEREAS, the City has adopted policies relating to the utilization of Assessment District financing which require Developer to extinguish the lien on any parcel created as a result of the confirmation of assessments of the Assessment District prior to the close of escrow on the sale of such parcel to a residential home buyer unless Developer shall have provided full disclosure of the existence of the assessment lien, the amount thereof, the annual assessment installments, the duration of the assessment lien and such other information as may be required by the City, and has provided the residential home buyer with the option to (a) take title subject to the applicable Assessment District special assessment against their parcel, or (b) dmharge the special assessment obligation prior to or concurrent with the close of such escrow; and WHEREAS, the parties hereto have entered into this Disclosure Agreement to establish the terms and conditions which must be satisfied by Developer should it desire to allow either residential home buyers or nonresidential buyers to take title subject to the assessment obligation established for any parcel or parcels within the Assessment District. NOW, THEREFORE, IT IS MUTUALLY AGREED BY AND BETWEEN THE PARTIES AS FOLLOWS: Section 1. The above recitals are all true and correct. Special Assessment District Disclosure Agreement-3c February 4,2004 Section 2. Developer owns property proposed to be subject to assessment obligations within the boundaries of the Assessment District. Developer’s property is described and set forth in the attached, referenced and incorporated Exhibit “A”. Section 3. The escrow for the sale to any residential home buyer of any lot or parcel, including condominium unit, within the Assessment District shall not close or title to such parcel be otherwise conveyed to such residential home buyer without first causing the assessment lien created as a result of the confirmation of the Assessment District, if any, on such parcel to be extinguished except as provided for herein below. Section 4. An assessment lien on a parcel within the Assessment District proposed to be sold by the Developer to a homeowner in the case of a residential parcel or an end user in the case of a nonresidential parcel need not be extinguished prior to the close of the escrow for the sale if Developer shall have given such buyer or buyers of such parcel a copy of the Notice of Special Assessment and Pre-Payment Option Election applicable to such parcel, the form of which is attached hereto as Exhibit “By’ and incorporated herein by this reference, and such Notice shall have been duly executed by such buyer or buyers and deposited into escrow. Section 5. Developer shall incorporate the amount of assessment lien into the advertised sales price of the home or the sales price of nonresidential property and clearly disclose the pass- through option in any sales literature. Sales literature for this purpose shall not be deemed to include media advertising, billboards, signs or other like advertisements. In addition, notice of the assessment in a form and size similar to Exhibit “C” shall be prominently displayed in all sales offices offering residential units for sale that are subject to the Assessment District lien. Section 6. This obligation shall be binding on all heirs, assigns or successors-in-interest of the parties hereto, and the City shall cause a copy of this Agreement to be recorded in the Office of the County Recorder upon its execution. Special Assessment District Disclosure Agreement-3d 2 February 4,2004 Section 7. Developer shall indemnify and hold harmless the City of Carlsbad from any claims arising out of Developer’s failure to adequately perform under the provisions of this Agreement . IN WITNES WHEREOF, the parties hereto have executed this Agreement on the day of ,2004. CITY OF CARLSBAD State of California By: Claude A. Lewis, Mayor (All signatures must be notarized) Special Assessment District Disclosure Agreement-3d a California limited liability company By: its Manager By: Name: By: Name: 3 February 4,2004 STATE OF CALIFORNIA COUNTY OF ss. On before me, ,a notary public in and for said State, personally appeared 9 personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) STATE OF CALIFORNIA ss. COUNTY OF 1 On before me, ,a notary public in and for said State, personally appeared 9 personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WlTNESS my hand and official seal. Signature Special Assessment District Disclosure Agreement-3c 4 (Seal) February 4,2004 EXHIBIT A DESCRIPTION OF SUBJECT PROPERTY THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: [To Come] Special Assessment District Disclosure Agreement-3c 5 February 4,2004 EXHIBlT B NOTICE OF SPECIAL ASSESSMENT AND PRE-PAYMENT OPTION ELECTION Assessment District No. 2002-01 (Poinsettia Lane East) of the City of Carlsbad TO: THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: Lot Number: Tract Number: Street Address: Estimated Original Assessment Lien: $ THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCHASING THIS PROPERTY. This property is within the above-named assessment district. The City of Carlsbad has issued bonds for the Assessment District to finance the acquisition or construction of certain public improvements that are of direct and special benefit to property within the assessment district. The bonds will be repaid from annual assessment installments on property within the assessment district . The property is subject to annual assessment installments of the assessment district that will appear on your property tax bills, but which are in addition to the regular property taxes and any other charges and levies that will be listed on the property tax bill. If you fail to pay assessment installments when due each year, the property may be foreclosed upon and sold. The annual assessment installment against this property for the - tax year is dollars ($-). Assessment installments will be collected each year on your property tax bill in semi-annual installments until the assessment bonds are repaid in tax year - . The public facilities that are being paid for by the money received from the sale of bonds that are being repaid by the assessments are: Roadway improvements to Poinsettia Lane, El Fuerte Street and El Camino Real generally consisting of grading and paving of streets, installation of curbs, gutters, sidewalks, signing and striping, storm drainage pipelines and other facilities, water, sewer Special Assessment District Disclosure Agreement-3c 6 February 4,2004 and reclaimed water mains, dry utilities, environmental mitigation, landscaping of medians, parkways and adjacent slopes and other appurtenant works; and These facilities may not yet have all been constructed or acquired and it is possible that some of such facilities may never be constructed or acquired. YOU SHOULD TAKE THIS ASSESSMENT AND THE BENEFITS FROM THE PUBLIC FAClLlTES FOR WHICH IT PAYS INTO ACCOUNT IN DECIDING WHETHER TO BUY THIS PROPERTY. YOU MAY OBTAIN A COPY OF THE RESOLUTION CONFIRMING ASSESSMENTS (RESOLUTION NO. 2004- ) THAT SPECIFIES MORE PRECISELY HOW THE ASSESSMENTS ARE APPORTIONED AMONG PROPERTIES IN THE ASSESSMENT DISTRICT FROM THE ClTY OF CARLSBAD BY CALLING (760 OR ON THE CITY WEBSJTE AT WWW.CI.CARLSBAD.CA.US. THERE MAY BE A CHARGE FOR THIS DOCUMENT NOT TO EXCEED THE ESTIMATED REASONABLE COST OF PROVIDING THE DOCUMENT. 1 PRE-PAYMENT OPTION ELECTION When you purchase the property, you will be solely responsible for the payment of the assessment. Prior to the close of escrow, you have the option to elect to either (a) pay off the assessment obligation in semi-annual assessment installments (“Option (a)”) during the term of the bonds or (b) pre-pay the entire assessment obligation at the close of escrow on the sale of the property to you in order to extinguish the assessment lien (“Option (b)”). If you elect Option (a) the assessment on the property will be collected in semi- annual installments which will be included in the property tax bill for the property. The annual assessment installments are estimated to be approximately $ per year to be collected through tax year - . In the event you elect Option (b), the amount required to pay-off the assessment in order to extinguish the assessment lien will be determined at the close of escrow. Special Assessment District Disclosure Agreement-3c 7 February 4,2004 a9 RECEIPT, ACKNOWLEDGEMENT AND PAYMENT OPTION ELECTION By signing this Notice, Buyer acknowledges that: 1. The property that Buyer is purchasing is located within the boundaries of Assessment District No. 2002-01 (Poinsettia Lane East). 2. Buyer has had an opportunity to read and review this Notice, and has received a copy of this Notice prior to opening escrow for the purchase of the property, or, if received after the opening of such escrow, with sufficient time for Buyer to make any reasonable inquiries that Buyer deems necessary regarding the assessment against the property prior to the close of escrow. Buyer understands that Buyer may terminate the contract to purchase or deposit receipt after receiving this notice from the owner or agent selling the property. The contract may be terminated within three days if the notice was received in person or within five days after it was deposited in the mail by giving written notice of that termination to the owner or agent selling the property. 3. Buyer hereby elects the following option (check one): (a) pay the assessment in annual installments estimated to be approximately $ per year through the tax year - . (b) pay-off the entire assessment lien at one time at the close of escrow for the Property. The amount will be determined in escrow. The pay-off amount may include prepayment penalties, interest charges and other charges related to the calculation and administration of such pay-off so that such pay-off amount may exceed the original assessment lien amount. 4. If Buyer elects Option (a), Buyer assumes the assessment against the property, and will be solely responsible for the payment of assessment installments for such assessment for as long as the Buyer owns the property and Seller shall have no liability for such payment. Further Buyer agrees to the amount and purpose of the assessment on the property and that Buyer forever waives any right of complaint or protest to the City pertaining to the nature, extent, duration and amount of the assessment against the property. Notwithstanding Buyer’s election of Option (a) at this time, Buyer may pay the entire assessment at any time in the future if Buyer so chooses. The future pay-off amount may also include prepayment penalties, interest charges and other charges related to the calculation and administration of such pay-off. Special Assessment District Disclosure Agreement-3c 8 February 4,2004 BUYER Name (Please Print) Signature Date Name (Please Print) Signature Date A COPY OF THIS EXECUTED NOTICE OF SPECIAL ASSESSMENT AND PRE- PAYMENT OPTION ELECTION SHALL BE PROVIDED TO THE FINANCE DIRECTOR OF THE CITY AT THE CLOSE OF ESCROW. Please mail executed copy to: Finance Director City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008 Special Assessment District Disclosure Agreement-3c 9 February 4,2004 31 EXHIBIT C (Example - Use Font size 30 for heading and 20 for text) NOTICE OF SPECIAL TAXES AND ASSESSMENTS The homes being sold in (name of development) are within Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East), the Carlsbad Unified School District Community Facilities District No. San Marcos Unified School District Community Facilities District No. and are subject to an assessment lien and special taxes. This may require the homeowner to make semi- annual payments of asses sment installments and special taxes over a term of 30 or more years. The payments are made at the same time and in the same manner as your property taxes. More information can be found in the Notice of Special Assessment and Pre- Payment Option Election form and the Notice of Special Tax, both of which must be read and signed prior to purchasing a (name of Development) home. Your sales representative will provide a copy of these Notices and is available to answer questions. and the Special Assessment District Disclosure Agreement-3c 10 February 4,2004 Price Sheet First home Second home Third home Fourth home Notice: The homes being sold in (name of development) are within Assessment District No. 2002-01 (Poinsettia Lane East) and are subject to an assessment lien of approximately $ homeowner to make annual payments of approximately $ information can be found in the Notice of Special Assessment and Pre-Payment Option Election form. Please see your sales representative for a copy of the Notice. . This may require the over a term of 30 or more years. More Special Assessment District Disclosure Agreement-3c 11 February 4,2004 33 EXHIBIT 5 FINAL ENGINEER’S REPORT dated March 29,2004 FINAL ENGINEER’S REPORT FOR ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) CITY OF CARLSBAD SAN DIEGO COUNTY CALIFORNIA March 29, 2004 Prepared By: Galen N. Peterson, Consulting Engineer San Diego, CA (858) 487-7000 Assessment District No. 2002-0 1 (Poinsettia Lane East) TABLE OF CONTENTS S ECTlO N PAGE INTRODUCTION AND CERTIFICATIONS i PART I Plans and Specifications 1 PART II Cost Estimates 3 PART Ill Assessment Roll and Method of Assessment Spread 5 PART IV Annual Administrative Assessment 27 PART V Diagram of Assessment District 28 PART VI Description of Improvements and Right-of-way Certificate 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. 2004-057 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. 37 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 6). To the extent that there are inconsistencies between the terms in the Acquisition / Financing Agreement and the terms in this Report, the terms in this Report shall prevail. City of Carlsbad - Assessment Distrkt No. 2002-01 (Polnsettia Lane East) Page iii - ._. 200 4- 44 This Report is submitted on the 29 day of, M#XL~ 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 COUNW, CALIFORNIA, on the I 7 day of ,+-?, zoo*. NE M. WOOD, CITY CLERK Final approval by the CITY COUNCIL of the CITY OF CARLSBAD, SAN DIEGO COUNTY, CAlIFORNlA, on the # t?d day of MA ZJ 200& 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: I) 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 11 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. 400-8EI 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. 400-8GI 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 StreetdCity 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, Prepared by Galen N. Peterson March 29, 2004 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 ma‘ins 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 Discount and Bond Reserve, all as identified in Exhibit 1 below. The above improvements are more specifically described in Part VI of this Report. Yl Prepared by Galen N. Peterson March 29, 2004 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 Real Estate Collateral Management Company (the “Developers”) are shown in Appendix E, Detailed Cost Information. The cost estimate divides Poinsettia Lane into two segments. Segment I 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 1, on the following page, for a summary of the cost estimate. Prepared by Galen N. Peterson March 29, 2004 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 $14,062,920.84 b. Poinsettia Lane, Segment 2 (Bressi Ranch portion) $ 6,689,936.63 $ 6,689,936.63 c. El Fuerte Street $ 1 1,24 1 , 1 94.77 $1 1,241,194.77 d. El Camino Real (Bressi Ranch portion) $ 1,280,881.65 $ 1,280,881.65 e. El Camino Real (Greens portion) $ 1,720,357.34 $ 1,720.357.34 Subtotal of Construction $34,995,291.23 $34,995,291.23 2. Land & Right-of-way (included in item 1) $ -$ - 3. Cost of Formation and Issuance b. Assessment Engineering $ 65,000.00 $ 85,000.00 c. Audit of Acquisition Costs $ 70,000.00 $ 80,000.00 d. Bond Counsel $ 65,000.00 $ 84,000.00 e. Appraisal $ 40,000.00 $ 50,000.00 f. Absorption Consultant $ 25,000.00 $ 14,000.00 g. Financial Advisor $ 50,000.00 $ 42,135.00 h. Official StatementlBond Printing $ 30,000.00 $ 20,000.00 i. FiscallPaying Agent $ 15,000.00 $ 1,200.00 j. City's Disclosure Counsel $ 35,000.00 $ 24,000.00 k. First 2 years additional Annual Administration Cost $ 40,000.00 $ 15,000.00 1. Contingency for both cost of issuance and construction $ 753,417.00 $ 773.082.00 Total Incidentals $ 1,288,417.00 $ 1,288,417.00 a. City Administration $ 100,000.00 $ 100,000.00 SUBTOTAL $ 36,283,708.23 $36,283,708.23 4. Less General Benefit Contributions (subtracted within item 1) $ -$ - 5. Less Special Benefit Contributions for public, non-profit and HOA parcels (2) $ (1,930,891.12) $ (1,930,891.12) SUBTOTAL $34,352,817.1 1 $34,352,817.1 1 7. Less Interest Earned $ -$ - 8. Capitalized Interest (lyr @ 7% interest) $ 2,923,644.01 $ 2,923,644.01 9. Financing Costs Bond Discount (1.75%) $ 730,911.00 $ 730,911.00 Bond Reserve (9%) $ 3,758.970.85 $ 3.758.970.85 GRAND TOTAL $41,766,342.97 $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) Prepared by Galen N. Peterson March 29,2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 5 Part 111 Assessment Roll and Method of Assessment Spread On February 17, 2004 the City Council of the City Of Carlsbad, State of California, did, pursuant to the provisions of the Municipal Improvement Act of.1913, (Division 12 of the Streets and Highways Code of the State of California), Article XlllD of the Constitution of the State of California, and the Proposition 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. 2004-057, for acquisition or construction of certain public improvements, together with appurtenances and appurtenant work in connection therewith, in a special assessment district known and designated as: ASSESSMENT DISTRICT NO. 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. Plans and specifications for the improvements proposed to be acquired or constructed in sufficient detail to show or describe the general nature, location and extent of the improvements; b. A general description of the improvements proposed to be acquired and any property necessary or convenient for the operation of such improvements; c. An estimate of the cost of the improvements and the costs of lands, right-of- way, easements, and incidental expense in connection with the improvements; d. Assessment Diagram showing the Assessment District exterior boundaries, the boundaries of any benefit areas within the district and the lines and dimensions of each parcel within the district and the benefit areas therein existing at the time of the adoption of the resolution of Intention; e. A proposed assessment of the costs and expenses of the improvements levied upon the parcels within the boundaries of the Assessment District in proportion to the estimated special benefits to be received by each subdivision of property from the improvements; Prepared by Galen N. Peterson March 29, 2004 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, do hereby submit the following: 1. 2. Pursuant to the provisions of Assessment Law and the Resolution of Intention, I have assessed the costs and expenses of the acquisition or construction of the improvements upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the estimated special benefits to be received by each of said parcels from the improvements. For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is attached hereto. As required by Assessment Law, a Diagram is attached, showing the Assessment District and the benefit areas therein, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District and the benefit areas therein as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively have been given a separate number upon said Diagram and in said Assessment Roll. 3. The subdivisions and parcels of land, the numbers therein as shown on the respective Assessment Diagram as attached hereto, correspond with the numbers as appearing on the Assessment Roll as contained herein. 4. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 1915"), to represent all unpaid assessments, which bonds shall be issued not to exceed the legal maximum term as authorized by law, i.e., THIRTY-NINE (39) YEARS 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. March 29, 2004 45 Prepared by Galen N. Peterson City of Carlsbad - 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 Prelim ina ri I y As Finally Confirmed Approved Approved and Construction and Incidental Costs less $ 34,995,291.23 $ 34,995,291.23 General Benefit (1) Formation and Issuance Expenses 1,288,417.00 1,288,417.00 Less Special Benefit Contributions (I ,930,891.12) (1,930,891.12) Less Interest Earned Capitalized Interest and Financing Costs 7,413,525.86 7,413,525.86 Total Assessment (2) $41,766,342.97 $41,766,342.97 Subtotal Benefit Area No. 1 (2) $29,417,441.97 $29,417,441 37 Subtotal Benefit Area No. 2 (2) $ 12,348,901.00 $12,348,901 .OO Total Assessment (2) $41,766,342.97 $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 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. Prepared by Galen N. Peterson March 29, 2004 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 La Costa Ranch Greens (Benefit (Benefit Area No. 1) Area No. 2) Total General Benefit Poinsettia Lane - Segment 1, Street $ 219,539.28 $ 193,460.72 $ 413,000.00 Improvements Poinsettia Lane - Segment 2, Street $ 92,493.55 $ 81,506.45 $ 174,000.00 Improvements Total General Benefit $ 693,392.82 $ 274,967.18 $ 968,360.00 El Fuerte - Street Improvements $ 381,360.00 $ - 381,360.00 Special Benefit - Parcels Owned by Public Agencies, Non-Profit Organizations 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 $ 20.140.16 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 SDread of Assessment is as set forth in Exhibit "A", which is attached hereto, referenced and so incorporated March 29, 2004 47 Prepared by Galen N. Peterson 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 Multifamily. 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) (Assrn'nt Contributed by Developer) TownhomelSingle Family Dev Open Space (OS) Open Space (OS) HOA (Assm'nt Contributed by Developer) Open Space (OS) OS (Assm'nt Contributed by Developer) Total IndustrialIBusiness Park Church Day Care and TownhomesISingle Family Dev Approved 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 2,155,046.02 815,981.03 2,319,874.24 1,250,040.1 6 74,691.03 5,746,853.07 1,127,846.77 3,053,281.02 2,357,989.35 2,746,861.05 5 1 2,367.86 2,550,554.95 41,766,342.97 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 $ 815,981.03 $ 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 March 29, 2004 YQ 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 March 29, 2004 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-1 Backbone Roadway Improvement Components A-2 Backbone Potable Water and Sewer Improvement Components A-3 Backbone Recycled Water Improvement Components A-4 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 0-3 Proportionate Special Benefit of Utility Improvements D-4 Proportioning Formation, Issuance and Financing Costs Prepared by Galen N. Peterson March 29, 2004 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 othetwise 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. Prepared by Galen N. Peterson March 29, 2004 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. A4 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 Prepared by Galen N. Peterson ___ March 29, 2004 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 March 29, 2004 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. March 29,2004 5J Prepared by Galen N. Peterson 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 exp I a i ned be low. SANDAG categorizes trips as primary, diverted and pass-by. This analysis uses only the primary trip percentages for the non-residential land use categories to avoid double counting of the residential trips. Sinqle Familv Detached Trip Generation The Average Daily Trips (ADT) per detached single-family dwelling is 10 ADT. The Assessment District single-family dwelling product types are similar to the SANDAG study areas. Single 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 unitd5.13 ac) + 12.85). Apartment Affordable Housing (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 Living TriD 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%. Prepared by Galen N. Peterson March 29, 2004 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 retaiktrip 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 Trip 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 10, 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. I 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%. Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 18 Road Poinsettia Lane Weighted Benefit by Land Use for Roadway Improvements Relative Benefit Residential Industrial Commercial and Other 0.4 0.7 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: El Fuerte El Camino Real 0.2 0.8 I .o 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 1 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 March 29,2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 19 Land Use Single Family Detached 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 Usaqe 550 gallons / day D-3 Proportionate Special Benefit of Utility Improvements ~~ ~ Single Family Detached Single Family Attached Non Residential 1.0 EDU / Unit 0.5 EDU / Unit 4.2 EDU / 10,000 SF - The most pertinent and reasonable utility improvement special benefit variable is average daily demand. The detached single family home will be the basic equivalence for measuring demand to other land use categories. Potable Water and Sewer Water and sewer demand was obtained from the 2002 update of the City of Carlsbad Water Master Plan. A summary of the water and sewer usage is shown below: I Single Family Attached I 250 gallons / day I 1 Non Residential I 2,300 gallons / 10,000 SF /day 1 A single family detached unit has been assigned an equivalent dwelling unit (EDU) weight of 1 .O EDU. By converting the gallons per day to EDU we arrive at the following table: Land Use Potable Water and Sewer EDU 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 7.481365). Potable water demand for park is estimated as 10% of the demand for recycled water for irrigation, resulting in 0.4 EDU per acre (0.1 x 2,230/550) of parkland. Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 20 Homeowner 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, 10 and 12 and the Village Green area (OS-2) within Benefit Area No. I were assigned 3.8 EDU. The Village Square area in Planning Area 15 within Benefit Area No. I 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 improvements. 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. 59 Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad -Assessment District No. 2002-01 (Poinsettia Lane East) Page 21 Land Use Category 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. Roadway Improvements I Primary Trip I Adjusted Summary of Special Benefit Factors Single Family IOIDU Detached Single Family Attached 81DU - 10 I DU 81DU - Afford ab le Housing (Bressi Ranch) Apartment (Affordable Housing ) 6.4 I DU - 6.4 I DU - 6lDU 61DU Assisted Living I 21Room I - I 21Room Off ice School I nd ustriai I 801AC I 79% I 63lAC 71 1,000 SF 82% 61 1,000 SF 60 IAC 57% 34 I AC 18 I 1,000 SF 45% 40 I 1,000 SF Community Retail 28% 80 I 1,000 SF Day Care 97.4 I AC Church I 30lAC I 64% I 19IAC 5lAC Homeowners Association Rec Areas 1.25 I AC and per site 25% Boys & Girls Club I 901AC I 52% I 471AC 66% Community (Regional) 2o AC Park 131AC Utilities EDUI/ 0.5 I DU 1.0 I DU 0.5 I DU 0.5 I DU 4.2 I 1Oksf 4.2 I 10ksf 4.2 I IOksf 4.2 I 1Oksf 4.2 I 10ksf 4.2 I 10ksf 4.2 I 10ksf 4.2 I IOksf 4.2 I IOksf and per site 0.4 I AC 1. Primary Trips are defined by SANDAG as “one trip directly between origin and primary destination.” Prepared by Galen N. Peterson March 29,2004 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 1.0 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 March 29, 2004 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 .I 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 March 29, 2004 bJ Prepared by Galen N. Peterson 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 AcquisitiodFinancing 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. Prepared by Galen N. Peterson March 29, 2004 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. Dated: 29@dayof d.4 Crcf ,2004 R.C.E. No. 18,364 (Expires 0612005) ASSESSMENT ENGINEER CITY OF CARLSBAD SAN DIEGO COUNTY STATE OF CALIFORNIA Prepared by Galen N. Peterson bLc March 29, 2004 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 fifed in my office on the / 7.4?) dayof /+W4ArY 1 2004. - CITY OF CARLSBAD STATE OF CALIFORNIA 1, LORRAINE M. WOOD, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was preliminarily approved by the City Councii of the CITY OF CARLSBAD, CALIFORNIA, on the /?& day of ~L=~AR , 200& ' 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 hith the Diagram attached thereto, was a proved and confirmed by the City Council of said City on the 4 ff _day of A%v , 200&. CITY OF CARLSBAD STATE OF CALIFORNIA I, GLENN PRUIM, Superintendent of Streets / City Engineer of the CITY OF CARLSBAD, CALfFORNIA do hereby ceftii that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the 4& day of Y ,2004 4 SUPERINTENDENT OF STREETS /CITY ENGINEER CITY OF CARLSBAD STATE OF CALIFORNIA _I --.I__ Prepared by Galen N. Peterson March 29,2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 27 Part IV Annual Administrative Assessment A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District specially benefiting from the improvements and for which the assessment is unpaid to pay for necessary costs and expenses incurred by the City of Carlsbad, and not otherwise reimbursed, resulting from the administration and collection of assessments and/or from the administration or registration of any bonds and reserve or other related funds. This maximum assessment hereinafter set forth is authorized pursuant to the provisions of Section 10204(f) of the Streets and Highways Code, and said maximum assessment shall not exceed five percent (5.0%) of the annual assessment per individual assessment parcel per year. The annual administrative assessment will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the improvements. Prepared by Galen N. Peterson ____ March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 28 Part V Diagram of Assessment District Reduced copies of the Assessment Diagram are shown on the following pages. Full-size copies of the Assessment Diagram are on file in the Office of the City Clerk, of the City of Carlsbad. As required by the Assessment Law, the Assessment Diagram shows the exterior boundaries of the Assessment District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Part 111. The Assessor's parcel number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of the County of San Diego for the boundaries and dimensions of each parcel of land. Prepared by Galen N. Peterson March 29, 2004 ASSESSMENT DIAGRAM OF ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) OFM mff CARLSBAD COUNTY OF SAN DEQO, STATE OF CALFORMA LEGEND D I I - ASSESSMENT DISTRICT SCUNOARY RIGHT-OF- WAY LINE BOUNDARY lF ASSSENT NUUBER AN@ ?.ARCEL UNES VlClNrrY MAP NOT TO SCALE BOUNDARY OF AD 2002-01 (POINSEITIA LANE EAST) INDEX MAP NOT TO SCALE 0 500fwo GRAPHICAL SCALE SCALP 1- = 1000’ UEfERE#CE THE SAN DEW COU#7Y ASSZSSOR MAPS FW? A DETAILED DESCRIPVQV OF PARCEL U#ES A#D DIME#SO#S. SHEET I OF 3 SHEETS ASSESSMENT DIAGRAM OF ASSESSMENT DISTRICT NO. 2002-01 (POINSElTIA LANE EAST) COUNTY OF SAN DMO, STATE OF CALFOMlA LEGEND 1 Fq SmmIM'8' BENEFIT AREA NO. 1 It ASSESSMENT DIAGRAM OF ASSESSMENT DISTRICT NO. 2002-01 (POINStrA LANE EAST) LEGEND I City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 32 Part VI A. Description of Improvements The Assessment Law provides for the legislative body of any municipality to finance certain capital facilities and services within or along its streets or any public way or easement. The following is a list of proposed improvements as allowed under the Assessment Law to be acquired, installed, maintained, repaired or improved under the provisions of the Assessment Law. For the general location of the improvements to be acquired referenced is hereby made to the Plans and Specifications described in Part I of this report and the exhibits of improvements in Appendix H of this report. The proposed improvements include the following: 1. 2. 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 Nos. 397- 2H, 397-21, 397-2J 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 this Report. 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 73 Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 33 3. 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 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 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 this Report. 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 this Report. 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 74 Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 34 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 AcquisitiodFinancing Agreement included in Appendix B of this Report. Notes: - I/ The aggregate amount of the cost of dry utilities or mitigation land which are to be owned by an entity other than a “political subdivision” as such term is used in the Internal Revenue Code and regulations of the Internal Revenue Service which may be financed from the proceeds of tax exempt bonds issued for the Financing District shall be limited to 5% of the proceeds of such bonds which are eligible to be used to finance the acquisition of the Improvements. March 29, 2004 75 Prepared by Galen N. Peterson City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 35 B. Right-of-way Certificate STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CARLSBAD The undersigned, GLENN PRUIM, hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct. That at all times herein mentioned, the undersigned was, and now is, the duly appointed SUPERINTENDENT OF STREETS/ CITY ENGINEER of the CITY OF CARLSBAD, CALIFORNIA. That there have now been instituted proceedings pursuant to the provisions of the Municipal Improvement Act of 1913, being Division 12 of the Streets and Highways Code of the State of California (the “Improvement Act”), Article XlllD of the Constitution of the State of California (“Article XlllD”), and Proposition 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 the City of Carlsbad Municipal Code, as amended, for the construction of certain public improvements in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) (hereinafter referred to as the “Assessment District”). THE UNDERSIGNED STATES AND CERTIFIES AS FOLLOWS: It is acknowledged that the proposed Improvements must be located within public rights-of-way, land, or easements owned by or licensed to the CITY OF CARLSBAD, County of San Diego, State of California, at the time of the acquisition of the Improvements, and the undersigned hereby further certifies that all rights-of-way necessary for the Improvements will be obtained and in possession of the City, County, or State prior to acceptance by the City of Carlsbad. EXECUTED this Z?&day of -&A,Q- &,+/ ,2004, at City of Carlsbad, California. Superintendent of Streets / City Engineer City of Carlsbad /3 u- Superintendent of Streets / City Engineer Prepared by Galen N. Peterson March 29, 2004 7b ORDER OF PROCEDURE CITY OF CARLSBAD (POINSETTIA LANE EAST) ASSESSMENT DISTRICT NO. 2002-01 DATE OF PUBLIC HEARING: MAY 4,2004 AT 6:OO PM Mayor: Direct the City Manager to provide the staff report. City Manager: Introduce Item “This is the time and place fixed for the public hearing related to: 0 the proposed formation of Assessment District No. 2002-01 (Poinsettia Lane East), the proposed levy of assessments to pay debt service on bonds to be issued, for the purpose of financing the cost to acquire or construct certain public i m prove men ts , ” 0 Staff Introduce the item. Describe the public hearing procedure, assessment ballot procedure and assessment ballot tabulation. Note that noticing requirements and distribution of the assessment ballots were completed in accordance with the law. Introduce the Assessment Engineer. Assessment Engineer: Present and summarize the Assessment Engineer’s Report. Explain the method and formula of assessment spread. Staff Describe the Special Assessment District Disclosure Agreement and compliance with Policy 33. End of staff report - - open public hearing Mayor: Conduct the Public Hearing "The City Council will hear from any interested person who desires to address the City Council on this matter." Upon completion of all public testimony "The public hearing is now closed." Mayor: Mayor: Council Questions and Comments "Do any members of the City Council have any questions for staff or consultants as a result of the public testimony?'' City Council questions to and responses from staff & consultants Request City Clerk to tabulate the ballots "The City Clerk will now tabulate the assessment ballots and, upon completion of the tabulation, report the results to the City Council." The City Council may wait until the tabulation is complete or may take a short recess. City Clerk: "The tabulation of the assessment ballots has been completed. ballots in support of the levy of the ballots in opposition to the levy of There were the assessments. Alternative No. 7 If ballots are in support: City Clerk: "Since the number of ballots in support of the levy of the assessments exceeds the number of ballots in opposition to the levy of the assessments, there is no majority protest." Mayor: Request motion on the Resolutions. "Since there is no majority rotest, I would ask for a motion to adopt Assessment Engineer; Declaring the Results of Assessment Ballot Tabulation; Confirming the Assessments and Ordering the Acquisition or Construction of Improvements, Together with Appurtenances, in Assessment District No. 2002-01 (Poinsettia Lane East) and Resolution No. 2004-u Approving the Form of the Special Assessment District Disclosure Agreement for Assessment District No. 2002-01 (Poinsettia Lane East)." Resolution No. 2004-& f Approving The Final Report of the City Council: Motion to adopt both resolutions, discussion and vote to adopt both resolutions. /Unlikely) Alternative No. 2 If ballots are in opposition: City Clerk: "Since the number of ballots in opposition to the levy of the assessments exceeds the number of ballots in support of such levy, there is a majority protest." Mayor: Request motion to abandon the proceedings. "Since there is a majority protest, I would ask for a motion to direct staff to prepare a resolution abandoning the proceedings to form the Assessment District for the next Council meeting." City Council: Motion to vote to direct staff to prepare a resolution abandoning the proceedings to form the Assessment District. End of proceeding City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) Do you support or oppose the levy of the assessment set forth below on the Identified Parcel? SUPPORT 3f This assessment ballot is for the use of the owner of the parcel identified below (the “Identified Parcel”) which is located within the boundaries of the proposed City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) (“Assessment District”). Please advise the City Clerk of the City of Carlsbad at (760) 434-2808 if you are not the owner of the Identified Parcel. I This assessment ballot may be completed by the owner of the Identified Parcel or a legally authorized representative of such owner to express such owner’s support for or opposition to the assessment proposed to be levied on the Identified Parcel for the Assessment District. The amount of the proposed assessment is set forth below. I OPPOSE C: THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS ASSESSMENT BALLOT. You must follow these instructions in completing this assessment ballot to insure that this assessment ballot will be accepted. Identified Parcel: Lots I through 5 inclusive of Carlsbad Tract CT 00-06 Certification of Voter: Proposed assessment: I certify under penalty of perjury that I am the owner of the Identified Parcel or a representative of such owner and am legally authorized to complete this assessment ballot on behalf of such owner. - Sbnature of person completing this assessment ballot General American Life Insurance Co. Metropolitan Life Attn: Todd Morefield 333 S. Hope Street, Suite 1150 Los Angeles, CA 90071 $8,814,475.39 Instructions: How to complete this assessment ballot: You may indicate whether you support or oppose the levy of the proposed assessment on the property identified below by placing a cross (+) using a pen in the box next to the word “SUPPORT” or the word “OPPOSE”. Mark only one box. You must sign this assessment ballot in the space provided for your signature. By signing this assessment ballot you are certifying that you are either (a) the owner of the Identified Property or (b) a representative of such owner legally authorized to complete this assessment ballot on behalf of such owner. This assessment ballot will be disqualified if it is not signed. How to return this assessment ballot: Seal the assessment ballot in the accompanying pre-addressed envelope and either (a) deposit the envelope in the U.S. mail or (b) deliver the envelope containing the assessment ballot to the following address: City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, California 92008. Deadline for Return of this assessment ballot: If returned by deposit in the U.S. mail, the envelope must be received by the City Clerk not later than 5:OO pm on May 4, 2004. If mailing this assessment ballot, you must allow sufficient time to ensure that this assessment ballot is received prior to such date and time. If delivering this assessment ballot, it must be delivered to and received by the City Clerk at the above address not later than the closure of the public hearing for the assessment district scheduled to be held at 6 pm on May 4,2004. If such public hearing is continued to a subsequent date, the deadline for receipt of this assessment ballot shall also be extended to the close of such public hearing. No notice of such continuance shall be provided. Withdrawing or changing this assessment ballot: This assessment ballot may be withdrawn at any time prior to the closure of the public hearing by request of the person signing the assessment ballot made to the City Clerk. This assessment ballot may be changed at any time prior to the closure of the public hearing by withdrawing this assessment ballot and requesting a replacement assessment ballot. Only the person signing this assessment ballot may make such a request. The replacement assessment ballot must be received by the City Clerk prior to the deadline set forth above. Questions: If you have questions regarding these instructions or this assessment ballot, please call the City Clerk between 8 am and 5 pm Monday through Friday at the following phone number: City Clerk City of Carlsbad (760) 434-2808 ASSESSMENT BALLOT Do you support or oppose the levy of the assessment set forth below on the Identified Parcel? City of Carlsbad Assessment District No. 2002-011 (Poinsettia Lane East) SUPPORT I OPPOSE 0 This assessment ballot is for the use of the owner of the parcel identified below (the “Identified Parcel”) which is located within the boundaries of the proposed City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) (“Assessment District”). Please advise the City Clerk of the City of Carlsbad at (760) 434-2808 if you are not the owner of the Identified Parcel. Identified Parcel: Lots 1 1, 13, 15 and Lots 17 through 22 inclusive of Carlsbad Tract This assessment ballot may be completed by the owner of the Identified Parcel or a legally authorized representative of such owner to express such owner’s support for or opposition to the assessment proposed to be levied on the Identified Parcel for the Assessment District. The amount of the proposed assessment is set forth below. Proposed assessment: THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS ASSESSMENT BALLOT. You must follow these instructions in completing this assessment ballot to insure that this assessment ballot will be accepted. Certification of Voter: I certify under penalty of perjury that I am the owner of the Identified Parcel or a -representative of such owner and am legally authorized to complete this assessment ballot on behalf of such owner. * leting this assessment ballot Bressi Gardenlane, LLC c/o Lennar Homes of California Attn: Graham Jones 24800 Chrisanta Drive, Suite 200 Mission Viejo, CA 92691 Instructions: How to complete this assessment ballot: You may indicate whether you support or oppose the levy of the proposed assessment on the property identified below by placing a cross (+) using a pen in the box next to the word “SUPPORT” or the word “OPPOSE”. Mark only one box. You must sign this assessment ballot in the space provided for your signature. By signing this assessment ballot you are certifying that you are either (a) the owner of the Identified Property or (b) a representative of such owner legally authorized to complete this assessment ballot on behalf of such owner. This assessment ballot will be disqualified if it is not signed. How to return this assessment ballot: Seal the assessment ballot in the accompanying pre-addressed envelope and either (a) deposit the envelope in the U.S. mail or (b) deliver the envelope containing the assessment ballot to the following address: City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, California 92008. Deadline for Return of this assessment ballot: If returned by deposit in the U.S. mail, the envelope must be received by the City Clerk not later than 500 pm on May 4, 2004. If mailing this assessment ballot, you must allow sufficient time to ensure that this assessment ballot is received prior to such date and time. If delivering this assessment ballot, it must be delivered to and received by the City Clerk at the above address not later than the closure of the public hearing for the assessment district scheduled to be held at 6 pm on May 4,2004. If such public hearing is continued to a subsequent date, the deadline for receipt of this assessment ballot shall also be extended to the close of such public hearing. No notice of such continuance shall be provided. Withdrawing or changing this assessment ballot: This assessment ballot may be withdrawn at any time prior to the closure of the public hearing by request of the person signing the assessment ballot made to the City Clerk. This assessment ballot may be changed at any time prior to the closure of the public hearing by withdrawing this assessment ballot and requesting a replacement assessment ballot. Only the person signing this assessment ballot may make such a request. The replacement assessment ballot must be received by the City Clerk prior to the deadline set forth above. Questions: If you have questions regarding these instructions or this assessment ballot, please call the City Clerk between 8 am and 5 pm Monday through Friday at the following phone number: City Clerk City of Carlsbad (760) 434-2808 ASSESSMENT BALLOT Do you support or oppose the levy of the assessment set forth below on the Identified Parcel? City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) SUPPORT E OPPOSE C This assessment ballot is for the use of the owner of the parcel identified below (the “Identified Parcel”) which is located within the boundaries of the proposed City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) (“Assessment District”). Please advise the City Clerk of the City of Carlsbad at (760) 434-2808 if you are not the owner of the Identified Parcel. This assessment ballot may be completed by the owner of the Identified Parcel or a legally authorized representative of such owner to express such owner’s support for or opposition to the assessment proposed to be levied on the Identified Parcel for the Assessment District. The amount of the proposed assessment is set forth below. THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS ASSESSMENT BALLOT. You must follow these instructions in completing this assessment ballot to insure that this assessment ballot will be accepted. Certification of Voter: I certify under penalty of perjury that I am the owner of the Identified Parcel or a representative of such owner and am legally authorized to complete this assessment ballot on behalf of such owner. eting this assessment ballot Identified Parcel: Lot 14 of Carlsbad Tract CT 00-06 Lennar Bressi Ranch Venture, LLC c/o Lennar Homes of California Attn: Graham Jones 24800 Chrisanta Drive, Suite 200 Mission Viejo, CA 92691 Proposed assessment: $74,691.03 Instructions: How to complete this assessment ballot: You may indicate whether you support or oppose the levy of the proposed assessment on the property identified below by placing a cross (+) using a pen in the box next to the word “SUPPORT” or the word “OPPOSE”. Mark only one box. You must sign this assessment ballot in the space provided for your signature. By signing this assessment ballot you are certifying that you are either (a) the owner of the Identified Property or (b) a representative of such owner legally authorized to complete this assessment ballot on behalf of such owner. This assessment ballot will be disqualified if it is not signed. How to return this assessment ballot: Seal the assessment ballot in the accompanying pre-addressed envelope and either (a) deposit the envelope in the U.S. mail or (b) deliver the envelope containing the assessment ballot to the following address: City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, California 92008. Deadline for Return of this assessment ballot: If returned by deposit in the U.S. mail, the envelope must be received by the City Clerk not later than 500 pm on May 4, 2004. If mailing this assessment ballot, you must allow sufficient time to ensure that this assessment ballot is received prior to such date and time. If delivering this assessment ballot, it must be delivered to and received by the City Clerk at the above address not later than the closure of the public hearing for the assessment district scheduled to be held at 6 pm on May 4, 2004. If such public hearing is continued to a subsequent date, the deadline for receipt of this assessment ballot shall also be extended to the close of such public hearing. No notice of such continuance shall be provided. Withdrawing or channinn this assessment ballot: This assessment ballot may be withdrawn at any time prior to the closure of the public hearing by request of the person signing the assessment ballot made to the City Clerk. This assessment ballot may be changed at any time prior to the closure of the public hearing by withdrawing this assessment ballot and requesting a replacement assessment ballot. Only the person signing this assessment ballot may make such a request. The replacement assessment ballot must be received by the City Clerk prior to the deadline set forth above. Questions: If you have questions regarding these instructions or this assessment ballot, please call the City Clerk between 8 am and 5 pm Monday through Friday at the following phone number: City Clerk City of Carlsbad (760) 434-2808 ASSESSMENT BALLOT Do you support or oppose the levy of the assessment set forth below on the Identified Parcel? City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) SUPPORT OPPOSE 0 This assessment ballot is for the use of the owner of the parcel identified below (the “Identified Parcel”) which is located within the boundaries of the proposed City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) (“Assessment District”). Please advise the City Clerk of the City of Carlsbad at (760) 434-2808 if you are not the owner of the Identified Parcel. Identified Parcels: Lots 6 through 10 inclusive and Lots 12 and 16 of Carlsbad Tract CT 00-06 Greystone Homes, Inc. Attn: Mike Levesque 1525 Faraday Ave, Suite 300 Carlsbad, CA 92008 This assessment ballot may be completed by the owner of the Identified Parcel or a legally authorized representative of such owner to express such owner‘s support for or opposition to the assessment proposed to be levied on the Identified Parcel for the Assessment District. The amount of the proposed assessment is set forth below. Proposed assessment: $1 2,715,401.30 THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS ASSESSMENT BALLOT. You must follow these instructions in completing this assessment ballot to insure that this assessment ballot will be accepted. Certification of Voter: I certify under penalty of perjury that I am the owner of the Identified Parcel or a representative of such owner and am legally authorized to complete this assessment ASSESSMENT BALLOT Do you support or oppose the levy of the assessment set forth below on the Identified Parcel? City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) SUPPORT 8( OPPOSE 0 This assessment ballot is for the use of the owner of the parcel identified below (the “Identified Parcel”) which is located within the boundaries of the proposed City of Carlsbad Assessment District No. 2002-03 (Poinsettia Lane East) (“Assessment District”). Please advise the City Clerk of the City of Carlsbad at (760) 434-2808 if you are not the owner of the Identified Parcel. This assessment ballot may be completed by the owner of the Identified Parcel or a legally authorized representative of such owner to express such owner’s support for or opposition to the assessment proposed to be levied on the Identified Parcel for the Assessment District. The amount of the proposed assessment is set forth below. THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS ASSESSMENT BALLOT. You must follow these instructions in completing this assessment ballot to insure that this assessment ballot will be accepted. Certification of Voter: I certii under penalty of perjury that I am the owner of the Identified Parcel or a representative of such owner and am legally authorized to complete this assessment ballot on behalf of such owner. Signature of persod completing this assessment ballot Identified Parcel: Lots 1 through 4 inclusive, Lots 6 through 14 inclusive and Lots 16 through 49 inclusive of Carlsbad Tract CT 99-03 Real Estate Collateral Management Company C/o Household Commercial of California, Inc. Attn: Fred R. Schimel 2700 Sanders Road Prospect Heights, IL 600070 Proposed assessment: $1 2,348,901 .OO Instructions: How to complete this assessment ballot: You may indicate whether you support or oppose the levy of the proposed assessment on the property identified below by placing a cross (+) using a pen in the box next to the word “SUPPORT” or the word “OPPOSE”. Mark only one box. You must sign this assessment ballot in the space provided for your signature. By signing this assessment ballot you are certifying that you are either (a) the owner of the Identified Property or (b) a representative of such owner legally authorized to complete this assessment ballot on behalf of such owner. This assessment ballot will be disqualified if it is not signed. How to return this assessment ballot: Seal the assessment ballot in the accompanying pre-addressed envelope and either (a) deposit the envelope in the U.S. mail or (b) deliver the envelope containing the assessment ballot to the following address: City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, California 92008. Deadline for Return of this assessment ballot: If returned by deposit in the U.S. mail, the envelope must be received by the City Clerk not later than 5:OO pm on May 4, 2004. If mailing this assessment ballot, you must allow sufficient time to ensure that this assessment ballot is received prior to such date and time. If delivering this assessment ballot, it must be delivered to and received by the City Clerk at the above address not later than the closure of the public hearing for the assessment district scheduled to be held at 6 pm on May 4,2004. If such public hearing is continued to a subsequent date, the deadline for receipt of this assessment ballot shall also be extended to the close of such public hearing. No notice of such continuance shall be provided. Withdrawins or changing this assessment ballot: This assessment ballot may be withdrawn at any time prior to the closure of the public hearing by request of the person signing the assessment ballot made to the City Clerk. This assessment ballot may be changed at any time prior to the closure of the public hearing by withdrawing this assessment ballot and requesting a replacement assessment ballot. Only the person signing this assessment ballot may make such a request. The replacement assessment ballot must be received by the City Clerk prior to the deadline set forth above. Questions: If you have questions regarding these instructions or this assessment ballot, please call the City Clerk between 8 am and 5 pm Monday through Friday at the following phone number: City Clerk City of Carlsbad (760) 434-2808 Assessment District Assessment District No. 2002No. 2002--0101Poinsettia Lane EastPoinsettia Lane EastFormationFormation HistoryHistory¾¾Dec. 2001: Dec. 2001: ¾¾Jan. 2003: Jan. 2003: Authorized to begin work Authorized to begin work Acquisition AgreementAcquisition Agreement••Allowed development to Allowed development to proceed while District was proceed while District was being formedbeing formed••Agreed to:Agreed to:••Acquire the road improvementsAcquire the road improvements••Reimburse the developer from Reimburse the developer from the District when, and if, the the District when, and if, the District was approved by District was approved by CouncilCouncil PurposePurpose¾¾Form the DistrictForm the District••Approve Engineer’s reportApprove Engineer’s report••Set the boundariesSet the boundaries••Approve the improvements to be financedApprove the improvements to be financed••Set the maximum assessment amountsSet the maximum assessment amounts••Take public commentTake public comment••Count votesCount votes¾¾Approve the Disclosure ProgramApprove the Disclosure Program AgendaAgenda1.1.Staff ReportStaff Report2.2.Public HearingPublic Hearing3.3.Council Questions and CommentsCouncil Questions and Comments4.4.Count the ballots and report (City Count the ballots and report (City Clerk)Clerk)5.5.Council ActionCouncil ActionƒƒIf in favor; adopt the Resolutions If in favor; adopt the Resolutions ƒƒIf not in favor; direct staff to If not in favor; direct staff to abandon processabandon process Galen PetersonGalen PetersonAssessment EngineerAssessment Engineer Proposed Development in the Proposed Development in the Assessment DistrictAssessment District¾Bressi Ranch DevelopmentPlanned Industrial acres134Mixed Use Area acres25Community Facilities Area acres14Single Family Homes523Multi-Family Affordable Units100¾La Costa Greens DevelopmentIndustrial Business Park acres8Community Park acres27Single Family Homes799Multi-Family Affordable Units180 Final Engineer’s Report Final Engineer’s Report ¾¾Plans and SpecificationsPlans and Specifications¾¾Cost Estimate of ProjectCost Estimate of Project¾¾Proposed Assessment to all ParcelsProposed Assessment to all Parcels¾¾Maximum Annual Administrative AssessmentMaximum Annual Administrative Assessment¾¾Map of the Boundaries of District and parcels Map of the Boundaries of District and parcels assessedassessed¾¾Description of the ImprovementsDescription of the Improvements Method and Formula of Method and Formula of Assessment SpreadAssessment Spread¾¾Roadway Core Improvements spread based on ADTRoadway Core Improvements spread based on ADT¾¾Potable Water and Sewer Improvements spread Potable Water and Sewer Improvements spread based on EDU and limited to the Sewer Zones of based on EDU and limited to the Sewer Zones of BenefitBenefit¾¾Recycled Water Improvements spread based on the Recycled Water Improvements spread based on the amount of recycled water used and then to the area amount of recycled water used and then to the area benefitingbenefiting¾¾Dry Utility Improvements spread based on EDU and Dry Utility Improvements spread based on EDU and limited to 5% of the amount of the bond issuelimited to 5% of the amount of the bond issue¾¾Cost of Formation, Issuance and Financing Costs Cost of Formation, Issuance and Financing Costs spread prospread pro--rata based on the total improvement costs rata based on the total improvement costs to each parcel to each parcel Construction Cost of Construction Cost of ImprovementsImprovementsPoinsettia Lane, Greens portion Poinsettia Lane, Greens portion $ 14,062,921$ 14,062,921Poinsettia Lane, Bressi Ranch portion Poinsettia Lane, Bressi Ranch portion 6,689,9376,689,937El Fuerte Street, Bressi Ranch El Fuerte Street, Bressi Ranch 11,241,19511,241,195El Camino Real, Bressi Ranch portion El Camino Real, Bressi Ranch portion 1,280,8821,280,882El Camino Real, Greens portion El Camino Real, Greens portion 1,720,3571,720,357Construction Cost Construction Cost $ 34,995,291$ 34,995,291Note: The above costs exclude a General Benefit Contribution Note: The above costs exclude a General Benefit Contribution by the developers in the amount of $ 968,360.by the developers in the amount of $ 968,360. Cost Estimate for the ProjectCost Estimate for the ProjectConstructionConstruction$34,995,291$34,995,291Formation and Bond IssuanceFormation and Bond Issuance1,288,4171,288,417Less Special Benefit Contribution Less Special Benefit Contribution <1,930,891><1,930,891>Capitalized Interest (one year)Capitalized Interest (one year)2,923,6442,923,644Bond DiscountBond Discount730,911730,911Bond Reserve FundBond Reserve Fund33,758,971,758,971Total Amount AssessedTotal Amount Assessed$41,766,343$41,766,343 Assessment RollAssessment RollProposedProposedDevelopmentDevelopmentAssessmentAssessmentBressiBressiRanchRanch$29,417,442$29,417,442La Costa GreensLa Costa Greens12,348,90112,348,901Total Assessed Total Assessed $41,766,343$41,766,343 Assessment per Future UnitAssessment per Future Unit$3,9761,2101,1478630$49,34115,01914,23210,7050La Costa Greens DevelopmentIndustrial Business Park (per acre) Single Family Homes in lots 6-9 Single Family Homes in lots 3, 10-14 & 17 Single Family Homes Multi-Family Affordable Units (paid by developer)$5,3742,6302,0511,262$66,690 32,639 25,447 15,663 BressiRanch DevelopmentPlanned Industrial Area (per acre)Single Family Homes in PA 11 Single Family Homes, remaining areasMulti-Family Affordable UnitsAnnual Cost(per Unit)Approx Assessment (per Unit)Area Compliance with Policy 33Compliance with Policy 33¾¾What is Policy 33?What is Policy 33?••Improvements authorized for financingImprovements authorized for financing••Property owner requirementsProperty owner requirements••Maximum assessmentsMaximum assessments••Terms and conditions of bond issuanceTerms and conditions of bond issuance••Other restrictions on use Other restrictions on use ¾¾District complies with policyDistrict complies with policy¾¾Developers are requesting passDevelopers are requesting pass--through of assessmentsthrough of assessments Compliance with Policy 33Compliance with Policy 33PassPass--through of Assessmentthrough of Assessment¾¾Policy allows passPolicy allows pass--through of through of assessments on residential assessments on residential property property at City’s discretionat City’s discretion¾¾In such cases, it requires:In such cases, it requires:••Disclosure ProgramDisclosure Program••Limit on Total Tax BurdenLimit on Total Tax Burden Disclosure ProgramDisclosure Program¾¾Written disclosure to purchaser ofWritten disclosure to purchaser of••Assessment lienAssessment lien••Annual paymentAnnual payment••Term of paymentsTerm of payments¾¾Provide option to payProvide option to pay--off or passoff or pass--through through (in writing)(in writing)¾¾Show assessment lien in sales Show assessment lien in sales literatureliterature¾¾Post “Notice of Assessment” in sales Post “Notice of Assessment” in sales officesoffices Limits to Bond IssuanceLimits to Bond Issuance¾¾Total Tax BurdenTotal Tax Burden••No greater than 1.8%No greater than 1.8%••Anticipate that assessments will fall Anticipate that assessments will fall within limitwithin limit••Bonds will be reduced prior to issuance Bonds will be reduced prior to issuance if not within the limitif not within the limit¾¾Value to LienValue to Lien••Must be 3:1 unless specific findings Must be 3:1 unless specific findings mademade Approximate ScheduleApproximate Schedule¾¾Hearing to form Hearing to form Assessment DistrictAssessment District¾¾Sale of BondsSale of Bonds¾¾Poinsettia Lane and El Poinsettia Lane and El Fuerte Street open for Fuerte Street open for trafficTonightTonightFall ’04 Fall ’04 Winter ’04 Winter ’04 ––‘05‘05traffic Actions RequestedActions Requested1.1.Hold the Public HearingHold the Public Hearing2.2.Council Questions and CommentsCouncil Questions and Comments3.3.Clerk count the ballots and report Clerk count the ballots and report 4.4.Council ActionCouncil ActionƒƒIf in favor; adopt Resolutions in the If in favor; adopt Resolutions in the agenda billagenda billƒƒIf not in favor; direct staff to If not in favor; direct staff to abandon processabandon process