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HomeMy WebLinkAbout2008-11-18; City Council; 19631; Rancho Santa Fe Road Mitigation ProjecttlS> ) CITY OF CARLSBAD - AGENDA BILL\^^/ AB# 19i631 MTG. 11/18/08 DEPT. PW-ENG APPROVAL OF AGREEMENT WITH CENTER FOR NATURAL LANDS MANAGEMENT AND BROOKFIELD UNIVERSITY COMMONS, LLC FOR TEMPORARY ACCESS; RANCHO SANTA FE ROAD MITIGATION PROJECT, CITY PROJECT NO. 3907 4 & DEPT. HEAD •£-p^j' CITY ATTY. fl<^ CITYMGR. / . _^llA-^ RECOMMENDED ACTION: Adopt Resolution No. 2008-304 approving an agreement with the Center for Natural Lands Management and Brookfield University Commons, LLC, for temporary access required for the construction of the Rancho Santa Fe Road Mitigation Project, Project No. 3907. ITEM EXPLANATION: On May 20, 2008, the City Council adopted Resolution No. 2008-142 accepting bids and awarding a contract for the construction of the Rancho Santa Fe Road Mitigation Project, Project No. 3907. Work is scheduled to begin in mid-November, 2008 and require approximately one year to complete. To facilitate the construction, temporary use of existing access roads and trails owned and maintained by the Center for Natural Lands Management in and around the project site is required. Brookfield University Commons, LLC is the property developer and holder of various Resource Agency permits with continuing mitigation responsibilities adjacent the City of Carlsbad's construction project. Staff has completed discussions with both parties resulting in the attached agreement which will enable efficient access to the work area for the City's contractor, equipment and materials suppliers, and inspection staff. Staff recommends approval of the attached agreement. ENVIRONMENTAL IMPACT: On June 2, 1992, the City Council adopted Resolution No. 92-152 certifying EIR Number 91-1 for Phases 1 and 2 of the Rancho Santa Fe Road Project. On April 25, 2000, City Council adopted Resolution No. 2000-128 approving Addendum No. 2 to the EIR which addressed the realignment and widening of Rancho Santa Fe Road from La Costa Avenue to Melrose Drive. The Rancho Santa Fe Road Mitigation Project is the product of this development and required by the California Department of Fish and Game's 1601 permit issued to the City for the road widening project. FISCAL IMPACT: There is no cost to the City for the temporary access agreement. EXHIBITS: 1. Location Map. 2. Resolution No. 2008-304 approving an agreement with Center for Natural Lands Management and Brookfield University Commons, LLC, for temporary access required for the Rancho Santa Fe Road Mitigation Project, Project No. 3907. 3. Access Agreement. DEPARTMENT CONTACT: John Cahill, (760) 602-2726, icahi@ci.carlsbad.ca.us FOR CITY CLERKS USE ONL Y .f COUNCIL ACTION: APPROVED Jtf DENIED Q CONTINUED D WITHDRAWN D AMENDED D CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES D D D D NOT TO SCALE LOCATION MAP PROPOSED GRADING AREA SAGEWOOD SAN El un ACCES, ROAD CITY OF OCEANSIDE HIGHWAY PROPOSED GRADING AREA PACIFIC OCEAN VICINITY MAP NOT TO SCALE PROJECT NAME RANCHO SANTA FE ROAD MITIGATION PROJECT PROJECT NUMBER 3907 EXHIBIT 1 DRAWN BY: SCOTT EVANS, CARLSBAD ENGINEERING DEPT. 8/25/08 C:\CAPITAL\CAHILL\3907.DWG 1 RESOLUTION NO. 2008-304 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 3 CARLSBAD, CALIFORNIA, APPROVING AN AGREEMENT WITH CENTER FOR NATURAL LANDS MANAGEMENT AND BROOKFIELD 4 UNIVERSITY COMMONS, LLC, FOR TEMPORARY ACCESS FOR THE RANCHO SANTA FE ROAD MITIGATION PROJECT, CITY PROJECT 5 NO. 3907. 6 WHEREAS, on May 20, 2008, the City Council of the City of Carlsbad, hereafter the 7 "City," awarded a contract for the construction of the Rancho Santa Fe Road Mitigation Project, 8 Project No. 3907, hereafter the "Project;" and 9 WHEREAS, temporary access on existing roads and trails belonging to and maintained 10 by Center for Natural Lands Management is required to facilitate an efficient prosecution of the 11 work under said contract; and 12 WHEREAS, Brookfield University Commons, LLC holds permits issued by the Resource 13 Agency with continuing mitigation requirements adjacent the Project; and 14 WHEREAS, an agreement has been prepared providing temporary use and access of *" ° said roads and trails to the City for the Project. 16 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 18 1. That the above recitations are true and correct. 19 2. That an agreement entitled "Access Agreement Among The Center for Natural on Lands Management, Brookfield University Commons, LLC, and The City of Carlsbad" is hereby 21 approved and the Mayor is authorized to execute said agreement. Following the Mayor's 22 execution of said agreement, the City Clerk is directed to forward copies of this resolution and said 23 agreement to: Center for Natural Lands Management, attention: Executive Director, 215 West Ash 24 Street, Fallbrook, California 92028-2904, Brookfield University Commons, LLC, attention: David 25 Poole, 12865 Pointe Del Mar, Suite 200, Del Mar, California 92014, the City's Public Works 26 Department, Construction Management Division, and the City's Public Works Department, 27 r- • • r,. - -Engineering Division. 28 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 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 18th day of November, 2008, by the following vote to wit: AYES: Council Members Lewis, Hall, Packard and Nygaard. NOES: None. ABSENT: Council Member Kulchin. ,/MSyor ATTEST: JRRAINE M. WQQDACity Clerk7 '(SEAL ~~> ACCESS AGREEMENT AMONG THE CENTER FOR NATURAL LANDS MANAGEMENT, BROOKFIELD UNIVERSITY COMMONS, LLC, AND THE CITY OF CARLSBAD THIS ACCESS AGREEMENT, executed the - day of /) 2008 ("Execution Date"), is by and among the CENTER FOR NATURAL LANDS MANAGEMENT, a California non-profit corporation ("Center"), BROOKFIELD UNIVERSITY COMMONS, LLC, a Delaware limited liability company ("Brookfield"), and the CITY OF CARLSBAD, a municipal corporation, ("City"), (collectively the "Parties"). RECITALS 1. The Center is the owner of Property ("Property") in the City of San Marcos, California described in grant deed recorded February 28, 2002 as Document No. 2002- 0170096 of Official Records in the office of the County Recorded of San Diego County, State of California (APNs 223-300-80, 223-030-83, 223-651-26, 223-651-1700, and 223-651-25) and attached hereto as Exhibit A attached hereto and made parts hereof. Prior to conveying the Property to the Center, Brookfield (as owner of the Property) granted a conservation easement ("Conservation Easement") over the Property in favor of the California Department of Fish and Game ("CDFG"). 2. Brookfield was the former owner of the Property and conveyed the Property to Center pursuant to the above mentioned grant deed recorded February 28, 2002. Brookfield currently has certain wetlands mitigation obligations with respect to a portion of the Property. In addition, Brookfield designed, installed and is maintaining certain pedestrian pathways located on the Property. 3. Carlsbad has obtained federal, state and local permits and approvals to construct Rancho Santa Fe Road widening and bridge replacement. Obtaining all of the necessary permits and approvals is the sole obligation of the City. The permits require certain habitat mitigation measures to be performed on portions of the Property owned by the Center. Property mitigation areas and routes of ingress and egress are depicted on Exhibit B, attached hereto. 4. The document entitled "Amended and Restated Management Agreement University Commons Conservation Area," attached hereto as Exhibit C and made a part hereof, between the Center and Brookfield, provides in pertinent part at §4.1 ("Transfer of Onsite Property-- Brouwer Parcel 1) for reserved rights which include access rights for wetlands mitigation, restoration, and monitoring by both Brookfield and City. 5. The Center and Brookfield desire to cooperate with City in the construction of City's wetland mitigation, restoration, and monitoring. 335172 3 ACCESS AGREEMENT Page 1 of 6 AGREEMENT NOW THEREFORE, in consideration of the above recitals, the Parties do hereby mutually and jointly agree as follows: 1. City Obligations. a. City shall construct and install the wetland mitigation, restoration and monitoring as shown of City of Carlsbad Drawing Numbers 368-2E and 368-2M ("Plans") on the following schedule: (1) Construction and installation within eighteen (18) months of the Execution Date, and (2) Achievement of success criteria within seventy-eight (78) months of the Execution Date. Until achievement of success criteria has been reached, City shall be solely responsible for all maintenance responsibilities with respect to the wetland mitigation and restoration it is undertaking pursuant to this Agreement. b. City shall be responsible to replace in kind and/or restore, to the satisfaction of the Center, Brookfield, and agencies, as appropriate, any improvements, fences, gates, trails, and habitat damaged or destroyed during the course of the construction and maintenance of the wetland mitigation, restoration, and monitoring work. In connection with its work of construction, maintenance and monitoring, from and after the day the City's contractor(s) commence construction activity that impact a portion of the pedestrian pathway, City will take over all further responsibility for maintaining those portions of the pedestrian pathways used by the City and previously installed by Brookfield on the Property. The City is responsible to maintain the pedestrian pathways for the two year maintenance and establishment period, as specified in the Maintenance Requirements for Trail Systems attached hereto as Exhibit D and made a part hereof, or until the pathways are accepted by the City of San Marcos, whichever happens first. c. City shall not suffer or permit to be enforced against the Property or any part thereof any mechanics', laborers', materialmens', contractors' or any other liens arising from, or any claims for damages growing out of any work or other activities by City or its representatives or invitees under this right granted herein. d. City hereby protects, defends, indemnifies and agrees to hold Center, its agents, officers, and employees free and harmless from all liability for any and all liens, together with all costs and expenses, including but not limited to attorney's fees and court costs reasonably incurred by the Center in connection with activities associated with the wetland mitigation, restoration and monitoring by City. City's 335172 3 ACCESS AGREEMENT Page 2 of 6 obligation hereunder to protect, indemnify and hold harmless shall not include liability arising out of, caused by or connected with the sole negligence of the Center, its agents, officers and employees. e. City hereby protects, defends, indemnifies and agrees to hold Brookfield, its agents, officers, and employees free and harmless from all liability for any and all liens, together with all costs and expenses, including but not limited to attorney's fees and court costs reasonably incurred by the Brookfield in connection with activities associated with the wetland mitigation, restoration and monitoring by City. City's obligation hereunder to protect, indemnify and hold harmless shall not include liability arising out of, caused by or connected with the sole negligence of the Brookfield, its agents, officers and employees. 2. Center's Obligations. The Center shall allow City, its agents, officers and employees access to the areas along and adjacent to San Marcos Creek that are designated for wetland mitigation, restoration, and monitoring as shown on the Plans. 3. Brookfield's Obligations. Brookfield shall allow City, its agents, officers and employees access to the areas along and adjacent to San Marcos Creek that are designated for wetland mitigation, restoration, and monitoring as shown on the Plans. 4. Representations and Warranties. a. City represents and warrants that it has obtained all necessary federal, state and local permits and approvals relating to the proposed wetlands mitigation, restoration, and monitoring for which access to the Property is sought. b. Center and Brookfield make neither representations nor warranties regarding requirements for or requirements of the City's federal, state, and local permits and approvals. 5. Insurance. As of the Execution Date and continuing until achievement of success criteria has been reached, City shall cause it's contractor(s), at its sole cost and expense, procure, pay for and keep in full force and effect a policy(ies) of Commercial General Liability Insurance in an amount of not less than the combined single limit of One Million Dollars ($1,000,000) for bodily injury, property damage, personal injury and death for each occurrence arising from work and other activities of City, or its contractors, consultants, representatives or agents on or relating to the Property. All policies of insurance required to be carried by City's contractor(s) shall be issued by an insurance company authorized to do business in the State of California. All policies required of City herein shall be endorsed to read that such policies are primary policies and any insurance carried by Center and/or Brookfield shall be noncontributing with such policies. Center and Brookfield shall each be named as an additional insured and/or loss payee on a primary/non-contributory basis, and such policies shall be 335172.3 ACCESS AGREEMENT Page 3 of 6 7 for the benefit and protection of Center and Brookfield. Executed copies of certificates of insurance shall be delivered to Center and Brookfield on or before the Execution Date and thereafter at least thirty (30) days before the expiration of the term of each such policy. 6. Monitor. While Center and Brookfield make neither representations nor warranties concerning the selection or qualification of a biological monitor by City, Center and Brookfield acknowledge that Dudek & Associates has provided quality monitoring services to them on the Property, and will continue to provide such services to Brookfield until it has reached achievement of success criteria applicable to Brookfield's obligations with respect to the Property. 7. General Provisions. a. This Agreement cannot be amended or modified in any way except by a written instrument duly executed by Center, Brookfield, and City. b. All exhibits referred to herein are attached hereto and by reference incorporated herein. c. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other shall be in writing and either served personally or sent by first class mail, postage prepaid, addressed as follows: To Center: Center for Natural Lands Management Attention: Executive Director 215 West Ash Street Fallbrook, CA 92028-2904 To Brookfield Brookfield University Commons, LLC Attn: David Poole 12865 Pointe Del Mar, Suite 200 Del Mar, CA 92014 To City: City of Carlsbad Attention: William Plummer Deputy City Engineer 1635 Faraday Avenue Carlsbad, CA 92008 d. This Agreement shall be governed by the laws of the State of California. If any part of this Agreement shall be held in conflict with applicable laws, such part shall be inoperative, null, and void insofar as it is in conflict with said laws, but the remainder of the Agreement shall continue to be in full force and effect. The captions of paragraphs used in this Agreement are for convenience only. 335172 3 ACCESS AGREEMENT Page 4 of 6 e. This Agreement contains the entire agreement of the Parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements or understandings, oral or written, relating to the subject matter, which are not fully expressed herein. f. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Center, Brookfield, and/or City. g. By executing this Agreement, Center, Brookfield, and City do not intend to form a joint venture or partnership. h. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one in the same Agreement. i. The language in all parts of this Agreement shall be in all cases construed simply according to its fair meaning and not for or against any party by reason of such party or its legal counsel having prepared this Agreement or any of its provisions. IN WITNESS THEREOF, the Parties hereto have executed this Agreement to be in effect as of the date last signed below. SIGNATURES ON FOLLOWING PAGE 335172 3 ACCESS AGREEMENT Page 5 of 6 Dated: Dated: CENTERFOR^NATURAL kANDS MANABEMfzNT, INC., A^alifornia corporation BROOKFIELP UNIVERSITY COMMONS, LLC, a Delaware corporation By: Its: Dated: //- COPY CITY OR of the unicipal corporation ATTEST: *x APPROVED AS TO£0ftM: RONALD R.^LL, City Attorney By:. Deputy City Attorney 335172.3 ACCESS AGREEMENT Page 6 of 6 Dated:CENTER FOR NATURAL LAND§, MANAGEMENT, INC., A Caltfofnla corporation By: Its: Dated:BROOKFIELD UNIVERSITY COMMONS, LLC, a Delaware corporation By: Its: I/ Dated:CITY OF CARLSBAD, a of the State of Califorow By: pal corporation ity Manager or Mayor ATTEST: LORRAINE M. WOOD Clerk APPROVED AS TO FORM: RONALD R. BALL, City Attorney Deputy City Atbrney 335172 3 ACCESS AGREEMENT Page 6 of 6 /I EXHIBIT "A" RECOROINC REQUESTED BY CHICAGO TITLE COMPANY AND WHEN RECORDED MAIL TO ^THE CBITE& FOR NATURAL IAKDS " ttANMCttEKT•}..*., C Ai/V,r '•'•>* • * ^ v-,,-.,,,.^. -"A <"\:r.2£ Ucmfc. uotun-w; DOC I 2002-0170096 FEB 28, 2OO2 3:13 PM (H9WS uncut SEEKSa« Dim aw cragGBGOft J, 9BTH» DttWY ffiJER GRANT DEED THE UNDOBltiNED CkANTOR» DECLARE (S) DOCUMENTAUVTlMWSFERTWtti $ Ml'» V V KCLAMTIW Of TRUST DATED HAY 11. 197? IMCMJ). JEANETTE 9HCUKK r*1 bwto CRANKS) toTHE CQm FOR NATURAL LANDS MANAGEMENT. A CALIFORNIA NON-PROFIT CORPORATION tf» rottMrinditcftiMO ma proptny ia tb»AN DIEGO . Sate ofCafiforate LECAl DESCRIPTION ATTACHED HERETO AID HADE A PART HEREOF BY REFERENCE Dattd January 11. 2002 cognnrw , oQi On I T.Kuiis. i I. OFp**or^ bicw to m» (or pood to *w en rj» MM of utatMtoyMdwct) M te 8» pMcoW aim* ramtW «/*r* MtncrMd n dw OM FOUON9M UNC. * NO PMTf » JMOWt MM. AS DRECTQI ABO* BE: -SD:2002 00170096 1 of 2 Pago 1 Escrow No. 93066573 -U47 019666 LEGAL DESCRIPTION EXHIBIT PARCEL A: THOSE PORTIONS OF LOT 3-1 AND LOT 7-1 OF CITY OF SAN MARCOS TRACT 371, IN THE CITY OF SAM MARCOS. COUNTY OF SAN OlEUO. STATE OF CALIFORNIA. ACOM0ING TO MAP THEREOF NO. 13156, FILED IN THE OFFICE Of THE COUNTY RECORDR OF SAN DIEGO COUNTY. OCTOBER 27. 1994 LYING NORTHEASTERLY OF THE SOUTWESTERLY BOUNDARY OF LAND DESCRIBED AS PARCEL 2 IN THE DEED TO JACOB BROUNER AND JEANETTE 8ROUIER. CO-TRUSTEES OF THE JACOB AND JEANETTE BOWER DECLARATION OF TRUST DATED HAY tt. 197? RECORDED AUGUST 2, 1996 AS FIU NO. 1W6-0»t426. MIO PARCEL 2 BEING MORE PARTICULARLY DESCRIBED AS FOLLOW: THAT PORTION OF SECTION 29, TOWSHIP 12 SOUTH. RANGE 3 NEST. SAN BERNARDINO MERIDIAN. IN THE COUNTY OF SAN OlEGO. STATE OF CALIFORNIA. ACCORDING TO THE OFFICIAL PLAT THEREOF. DESCRIBED AS FOLLOfS: BEGINNING AT THE NORTH QUARTER CORNER OF SAID OF SAID SECTION 29; THENCE ALONG THE NORTH LINE THEREOF: SOUTH 88*4$'25' EAST 1327.86 FEET TO THE NORTHEAST CORNER OF THE •EST HALF OF THE NORTHEAST QUARTER OF SAID SECTION; THENCE ALONG THE EAST LINE THEREOF. SOUTH 00'2V33' EAST (RECORD SOUTH 00*20'30' EAST). 875.00 FECT TO THE TRUE POINT OF BEGINNING. BEING THE SOUTHEASTERLY CORNER OF THE LAND DESCRIBED IN DEED TO H.C. TIFFANY RECORDED NAY 4, 1956 IN BOOK 6068. PAGE 249 OF OFFICIAL RECORDS; THENCE CONTINUING SOUTH 00'21'33' EAST AUNG THE EAST LINE TO AND ALONG THE EAST LINE OF THE fEST HALF OF THE SOUTHEAST QUARTER OF SAID SECTION 29. A DISTANCE OF 2446.00 FEET; THENCE NORTH 59'45'33' NEST 944.69 FEET TO A POINT "A" OF THIS DESCRIPTION: NORTH 98*45-33' NEST 990.21 FEET TO A POINT IN THE SOUTHEASTERLY LINE OF SAID TIFFANY LAND; THENCE ALONG SAID SOUTHEASTERLY LINE NORTH 48*36'35" EAST 2184.66 FEET TO THE TRUE POINT OF BEGINNING. PARCEL C: ADJUSTED LOT S-l OF CERTIFICATE OF COMPLIANCE RECORDED JUNE 26. 2001 AS FILE NO. 2001-0431951, OFFICIAL RECORDS. BEING LOT 5-1 ALL THOSE PORTIONS OF LOT 4-1, LOT 6-t AND NELROSE DRIVE OF CITY OF SAN MARCOS TRACT 371. IN THE CITY OF SAN MARCOS. COUNTY OF SAN DIEGO. STATE OF CALIFORNIA. ACCORDING TO «A? THEREOF NO. 13156. FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN OlEGO COUNTY. OCTOBER 27. 1994 LYING EASTERLY OF THE FOLLCNING LINE. MORE PARTICULARLY DESCRIBED AS FOUONS: BEGINNING AT THE HOST NESTERLY CORNER OF SAID LOT 4-1; THENCE ALONG THE WRTKKSTEBLY LINE OF SAID LOT 4-1 AND ITS NORTHEASTERLY PROLONGATION NORTH 49*08'49" EAST 1247.71 FEET TO THE BEGINNING OF A NON-TANGCNT 605.00 FOOT RADIUS CURVE. CONCAVE NESTERLY. A RADIAL LINE TO SAID POINT BEARS NORTH 54*28'11" EAST. SAID POINT BEING THE TRUE POINT OF BEGINNING OF SAID LINE. THENCE SOttTHERLYALQNO THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE Of 7V1V23- AN ARC DISTANCE OF 751.71 FEET; THENCE TANGENT TO SAID CURVE SOUTH 35*39'34" NEST 124.70 FEET TO THE BEGINNING OF A TANGENT 615.00 FOOT RADIUS CURVE. CONCAVE EASTERLY; THENCE ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 47'43'M- AN ARC DISTANCE OF 512.19 FEET TO A POINT ON THE SOUTHWESTERLY LINE OF LAND GRANTED TO JACOB AND JEANETTE BROUNER IN DOCUMENT RECORDED AUGUST 2. 1995 AS FILE NO. 1995-0391426, OFFICIAL RECORDS; THENCE ALONG SAID SOUTHWESTERLY LINE AND NON-TANGENT TO SAID CURVE SOUTH S9M2M2" EAST 159.74 FEET TO A POINT ON THE SOUTHERLY LINE OF SAID LOT 6-I. C13*£-V¥•r :•••-.-Ifc*!*?-.'-.kjn^v$m rjp*: I-. .-^ ..-JK y.^Rpii' KH: fe^if MS»" BEST -80:200200170096 2 of 2 University Commons RANCHO SANTA FE ROAD Mitigation / Hevegetation Areas (Green) East of Melrose Drive) 1.69 ac SWS Cretan .51 ac.FWM Creation .86 ac. SWS / MFS Enhancement {removal of exotics and revegefcation of existing SWS IMPS) .54 ac, FWM Enhancement UNWERSnYCOMHOIHS Mitigation/ Revegetation Areas (West of Melrose Drive) Z04 ac SWS Creation 1.76 ac. MFS Creation / Enhancement .42 ac.FWM Creation /ACCESS FROM MELROSE DRIVE ACCESS FROM COPPER COURT ACCESS FROM SAN ELIJO ROAD Rancho Santa Fe Road Mitigation Area Created / Enhanced / Existing Wetlands: |FWMJ Created Freshwater Marsh [ MRM Created Mule Fat Scrub |<j||y Created Southern Willow Scrub | 8W8 I Impacted Southern Willow Scrub I ! (at Melrose Drive) Existing Southern Willow ScrubSWS(Preserved / Enhanced) } ] Enhanced MFS/SWS Wetlands | FWM !| Enhanced FWM for RSFE Rd. Project | | Unaffected Existing Habitat Rip Rap (at Melrose Drive) ACOE/CDFG Waters: JX^'^J Waters of the U.S. MOTE: number Indcates width of channel segment between marks. BASE TOPO WiD SITE OMLOPWBfT SOURCE: ITMr CONSUITSKTS Conceptual Wetland Mitigation and Monitoring Plan - Rancho Santa Fe Road I FIGURE Revised Conceptual Revegetation Plan (Offsite Location at University Commons) !__6 _ MITIGATION AREAS AND ROUTES OF INGRESS AND EGRESS EXHIBIT «C" AMENDED AND RESTATED MANAGEMENT AGREEMENT UNIVERSITY COMMONS CONSERVATION AREA This AMENDED AND RESTATED MANAGEMENT AGREEMENT dated as of September 1,2004 ("Agreement") is made and entered into by and between CENTER FOR NATURAL LANDS MANAGEMENT, INC., a California corporation ("Center") and BROOKFIELD UNIVERSITY COMMONS, LLC, a Delaware limited liability company ("Proponent") (as successor in interest to Brookfield University Commons, Inc.), and amends, restates and replaces in its entirety that certain Management Agreement dated March 4, 2002 ("Original Agreement") between Center and Brookfield University Commons, Inc., and all previous amendments thereto, including the First Amendment dated April 6, 2004 (the "First Amendment") which added New Properties, among other things. RECITALS: A. Proponent intends to develop a residential project on certain real property ("University Commons") located in San Marcos, in the County of San Diego, California, as more particularly described in Section I of the notebook of Exhibits entitled "Transfer of Mitigation Properties to Center for Natural Lands Management" ("Notebook § I"). B. University Commons is adjacent to or in the vicinity of certain real property that is either owned by Proponent or subject to an agreement whereby Proponent will acquire such property ("Conservation Land"). The Conservation Land consists of approximately 355.5 acres, in the County of San Diego, California, as shown on the vicinity map included in Notebook § II and on the vicinity map attached to this Agreement as Exhibit A-l. The Conservation Land includes "Onsite" property located within the University Commons Specific Plan area and "Offsite" property located outside the boundaries of said Specific Plan. The Conservation Land includes all or a portion of the following assessor's parcels: (Note, as of July 1, 2004, with the recordation of University Commons final maps, various of the Onsite Conservation Land referred to below has new APNs, legal descriptions, and designations as "Planning Areas" or "PA" within University Commons. A table listing the Conservation Land APNs and a map showing the University Commons PAs are attached to this Agreement as Exhibits A-2 and A-3, respectively. Conservation Land may include land held or to be held in fee title by Center, land subject to conservation easement(s) in favor of Center or land owned by others subject to conservation easements in favor of others, but monitored and/or managed by Center). "Onsite Conservation Land": Assessor's Parcel Nos. ("APNs";) 223-030-79, 80 & 83; 223-651-25 & 26 ("Brouwer Parcel 1" aka "PA 15") (these new APN's include the old Brouwer APN's 223-030-79, 80 & 82; 223-031-32, 33 & 34) APN's 223-650-02 & 223-650-04 ("Brookfield Northern Parcel 2" aka "PA 2" and "PA 16") (these new APN's include the old Brookfield Northern 223-030-81) W02-SD:6RM1\51339960.7 -1- 092801 06V3-0893I3 APN's 223-651-09 & 17; 223-651-22 ("Brookfieid Southern Parcel 3" aka "PA H" and "PA 14") (these APN's include the old Brookfieid Southern 223-031-26, 29 & 33, which may also have encompassed the PA 6a parcels listed below) APN 223-070-15 ("Shelley Parcel 4" aka "PA 12b") Site maps and legal descriptions for each of the Onsite Conservation Land parcels are included in Notebook §§ VIII A & B, IX A & B, X A & B and XI A & B respectively. The First Amendment added New Properties: Conservation Easements over portions of APN 223-651-11 and 23 in configurations approved by the Agencies ("Lot 8 Areas" aka "PA 6a") APN 223-651-20 ("'Lot 11" aka "PA 6a") "Offsite Conservation Land": APN 222-030-48 ("Wilem Parcel 5") APN 223-072-01 ("Setter Parcel 6") APN 223-081-09, 10, 11 & 12 ("Huff Parcel 7") APN's 223-070-25, 26 & 27 ("Winston Parcel 8") (these new APN's include the old Winston APN 223-070-24) Site maps and legal descriptions for each of the Offsite Conservation Land parcels are included in Notebook §§ XII A & B, XIII A & B, XIV A & B and XV A & B respectively. The First Amendment added New Properties: Conservation Easement over APN 222-130-13 ("Pfau Easement") APN 222-121-07 ("Frank's Peak") Under the First Amendment, Lot 11 and Frank's Peak are to be transferred to Center in fee, but will be or become subject to a Conservation Easement in favor of California Department of Fish & Game ("CJDFG"). Proponent will grant Center a Conservation Easement over each of the Lot 8 Areas and the Pfau Easement. At the time of transfer, Proponent will increase the Contribution necessary for Initial & Capital Costs and Endowment associated with the New Properties. C. The Conservation Lands are subject to: (i) United States Department of the Interior's Fish and Wildlife Service's Biological Opinion on the Brookfieid Homes/University Commons Project, San Marcos, San Diego County, California (FWS Log No. 1-6-00-F-2285), Corps File No. 200100025-SKB, dated May 15, 2002; (ii) United States Department of the Interior's Fish and Wildlife Service Reinitiated Biological Opinion on the Brookfieid University Commons Project, San Marcos, San Diego County, California (FWS Log No. 1-6-00-F-2285R), W02-SD-.6RM1 \5133 9960.7 -2- 092S04 06V.VOS93I3 Corps File No. 200100025-SKB, dated August 6, 2003; (iii) State of California's Department of Fish and Game Streambed Alteration Agreement R5-2001-0337, signed on behalf of the Department on May 28, 2002; (iv) State of California's Department of Fish and Game Streambed Alteration Agreement R5-2002-0236, signed on behalf of the Department on September 9, 2003; (v) Department of the Army, Corps of Engineers' Permit No. 2001-00025-SKB, issued on May 31, 2002 and amended December 30,2003; and (vi) California Regional Water Quality Control Board Water Quality Certification (File No. 02C-079), dated September 16, 2003 (collectively, the "Permits"). The Conservation Lands are also subject to certain mitigation, monitoring and reporting requirements in connection with the approval by the City of San Marcos of the Final Supplemental Environmental Impact Report dated May 2003 (SCH No. 1990011013), as certified by the City Council of the City of San Marcos on August 12, 2003 ("Final Supplemental EIR"). Grantee, by the acceptance of this Agreement, agrees that it will, at its sole cost and expense, perform all of the fuel management work required by this Agreement in accordance with the Permits and the requirements of the Final Supplemental EIR. The Permits require certain habitat mitigation measures to be performed on portions of the Conservation Land and that the Conservation Land be held and maintained as open space in perpetuity for conservation purposes. Proponent has obtained written confirmation from the California Department of Fish and Game ("CDFG"), the U.S. Fish and Wildlife Service ("USFWS") and the U.S. Army Corps of Engineers ("ACOE") (collectively the "Agencies") that Proponent's plan to dedicate and/or convey (collectively referred to as "Transfer") the Conservation Land and perform mitigation measures thereon is acceptable to the Agencies as mitigation for the University Commons development and satisfies Proponent's Permit requirements ("Mitigation Approvals"). Copies of the Mitigation Approvals for each of the parcels of the Conservation Land are included in Notebook §§ VIII H, IX H, X H, XIH, XII H, XIII H, XIV H and XV H. D. The Conservation Land includes coastal sage scrub, related sage scrub, riparian habitats, jurisdictional waters of the United States and other sensitive vegetative communities and biological resources. Portions of the Conservation Land are suitable to the California gnatcatcher, a species listed as state and federally threatened which nests on the Conservation Land. The Conservation Land is a significant part of the Biological Core Area of the draft Multiple Species Habitat Conservation Program ("MHCP") and connects large areas of natural habitat. E. In accordance with the conditions of the Mitigation Approvals, Proponent is entering into this Agreement to provide for the Transfer of the Conservation Land, implementation of a mitigation and management plan in conformance with the Agencies' requirements and establishment of an endowment fund to ensure the maintenance and protection of biological resources on the Conservation Land in perpetuity. F. The terms of this Agreement satisfy Proponent's mitigation plan for the University Commons development. Proponent's plan includes the following combination of onsite conservation and offsite purchase of habitat: Onsite Conservation. Each parcel of the Onsite Conservation Land, excluding the Brouwer Parcel 1, will be Transferred to the Center upon compliance with the California Subdivision Map Act at which time legal parcels exists, or at such time W02-SD:6RMI\51339960.7 -3- 092804 06V3-OK9313 II as each parcel can otherwise be legally conveyed. The Onsite Conservation Land shall be Transferred in phases at the time of recordation of each phased final map in conjunction with the development of University Commons or at such other time as legal parcels exist for the Onsite Conservation Land or any portion of the Conservation Land can otherwise be legally conveyed. At the earliest time at which the City approves each phased final map and/or legal parcels exist or can otherwise be legally conveyed, the Center shall accept the Transfer of that parcel of the Onsite Conservation Land included within the property being subdivided by the final map and/or for which legal parcels exist or parcels are otherwise legally conveyed. Conveyance of fee title to the Brouwer Parcel 1 will occur through escrow in accordance with the terms of Proponent's agreement to acquire the Brouwer Parcel 1 and related escrow instructions as described below. (Note, as of July 1,2004, Proponent has transferred fee title and Contribution for Brouwer, Huff, Wilern and Setter and has opened escrow to transfer fee title and Contribution to Winston, Lot 11, Frank's Peak and record a conservation easement and make a Contribution in favor of Center over Lot 8 Areas and Pfau. Proponent will transfer fee title to Shelley at no additional cost or expense to Center when a final map has recorded. Proponent shall not be obligated for additional Shelley Contribution unless the conditions of transfer (payment of taxes and assessments, removal of liens, etc. cannot be satisfied with funds available from the existing Contribution.) Qffsite Purchase of Habitat. Proponent will convey fee title to the Offsite Conservation Land (consisting of Wilern Parcel 5, Setter Parcel 6, Huff Parcel 7 and Winston Parcel 8) to the Center in accordance with the terms set forth herein. The Center shall convey a perpetual Conservation Easement as hereinafter defined over each parcel of the Conservation Land within sixty (60) days of Transfer of said parcel to the Center. The Conservation Easement shall be in a form acceptable to the Agencies, the terms of which will include the reservation of rights described herein and ensure that the parcel conveyed is used for permanent open space. Each Conservation Easement shall be in favor of the State of California, acting by and through the CDFG (except for the Lot 8 Areas and the Pfau Easement, as described below), and the ACOE shall be a third-party beneficiary of each Conservation Easement, unless otherwise agreed by Center, Proponent and the Agencies. The USFWS and the City shall be third-party beneficiaries of the Conservation Easement. (Note, as of July 1, 2004, Center and Proponent have delivered recordable Conservation Easements to CDFG.) G. Upon Transfer of fee title to any portion of the Conservation Land and at such time as the Center is obligated to commence management of such portion of the Conservation Land pursuant to the terms of this Agreement, Proponent will contribute funds ("Contribution") to the Center for the permanent management and maintenance of the open space and easement areas within the parcel of the Conservation Land Transferred to the Center. The amount of the Contribution for each parcel of the Conservation Land consists of the costs set forth in the Property Analysis Record included in Notebook § VII. As set forth in the Property Analysis Record, the Contribution is comprised of the "Initial and Capital Funds" and "Endowment W02-SD:6RM1\51339960.7 -4- 092804 06V3-0893I3 Funds". (Note, as of July 1, 2004, Contribution for transferred parcels has been made and Contribution for New Properties will be made at close of escrow) H. The Center is a qualified organization within the meaning of Section 170(h) of the Internal Revenue Code of 1986, as amended ("IRC"). The Center is also a tax exempt nonprofit organization qualified under Section 501(c)(3) of the IRC and qualified to do business in the State of California. The Center has as its primary purpose the management of land in an environmentally and biologically beneficial manner consistent with state and federal environmental laws. The Agencies have approved of the Center as being qualified to manage the Conservation Land, and the Center wishes to commit to the management of the Conservation Land in accordance with this Agreement. I. The Permits for the development of University Commons require the Proponent to install "Revegetation" on portions of Brouwer Parcel I/PA 15, Wilern Parcel 5 and Huff Parcel 7 as set forth in the restoration plans included in Notebook §§ VIII E, XII E and XIV E ("Revegetation Areas") and "Monitor" the success of the Revegetation for a certain period of time. Revegetation and Monitoring is also required by Proponent on Lot 11, PA's 2 and 13 and Winston Parcel 8 pursuant to the Permits for the development of University Commons. Revegetation and Monitoring obligations for Shelley Parcel 4/PA 12b will be outlined with the transfer of that parcel. J. Proponent will be responsible for installing the Revegetation within the Revegetation Areas and Monitoring the progress of the Revegetation in accordance with the requirements of the restoration plans referenced in Recital I and the Permits for the development of University Commons. Upon Transfer of the each parcel which includes the Revegetation Areas and certification as hereinafter described that the Revegetation work is complete, the Center will maintain the Revegetation Areas in accordance with the terms of this Agreement. The Transfer of the Conservation Land and the grant of access rights as described herein and in the form substantially similar to Notebook § VI ("Access Rights") and Conservation Easements will be subject to Proponent's and its successors and assigns' right to maintain and Monitor the Revegetation. The Center's obligation to maintain the Revegetation Areas shall commence after such time as Dudek & Associates (i) certifies in writing to Center and Proponent that the Revegetation work is complete, and (ii) Center and the appropriate Agency or Agencies issuing permits (City of San Marcos, Army Corps, USFWS and/or CDFG) have concurred with such certification. Thereafter, the Center shall accept the Revegetation Areas for maintenance. If Dudek has not previously transferred to Center the biotechnical data contained in its reports, it shall do so at such time. Center shall use such biotechnical data to establish baselines for management and monitoring of the Conservation Lands. K. The Conservation Land is generally described herein. Compliance with the California Subdivision Map Act to create legal parcels or some other means of legally conveying parcels is required prior to Transfer of any parcel of the Onsite Conservation Land (excluding the Brouwer Parcel 1) to the Center. The Offsite Conservation Land and Brouwer Parcel 1 will be Transferred to the Center in accordance with and consistent with the Permits for University Commons and the terms of this Agreement. Each parcel of the Conservation Land shall be Transferred to the Center according to the procedures described in this Agreement. W02-SD:6RMI\51339960.7 -5- 092804 06V3-089313 Nevertheless, the Center shall begin management of the Conservation Land at the time specified herein for each of the parcels (hereinafter referred to as the "Management Dates"). L. The parties acknowledge and agree that all obligations of each party under the Original Agreement have been substantially satisfied and discharged as of the date of this Agreement, that there is no breach or default presently existing under the Original Agreement, and that neither party has any claim against the other party arising under the Original Agreement, all such obligations having been fulfilled, or yet-to-be completed, as set forth in this Amended and Restated Agreement or in escrow instructions for the transfer of the New Properties. NOW THEREFORE, the parties agree as follows: 1. Transfer of Conservation Land. Each grant deed Transferring fee title to the Conservation Land shall be substantially similar to the form included in Notebook § IV ("Grant Deed"). 2. Conservation Easement. The Conservation Land shall be subject to a perpetual conservation easement in favor of the Agencies for biological conservation purposes ("Conservation Easement"). The Conservation Easement shall be in a form acceptable to the Agencies which is substantially similar to the form included in Notebook § V, or as otherwise agreed by the parties hereto and the Agencies. Each Conservation Easement (except the Lot 8 Areas and the Pfau Easement) shall be in favor of the State of California, acting by and through the CDFG and the ACOE shall be a third-party beneficiary of the Conservation Easement, unless otherwise agreed by the parties hereto and the Agencies. Proponent shall grant a Conservation Easement over the Lot 8 Areas and the Pfau Easement to the Center, naming the Agencies as third party beneficiaries. 3. Reservation of Rights. The Grant Deed and Conservation Easement shall be subject to and/or expressly reserve the following rights for Proponent and its successors, assigns, agents and employees: (i) the right to dedicate right-of-way and grant easements for slopes, drainage, temporary and permanent access, utilities, construction and maintenance of public trails; (ii) the right of ingress and egress for construction and maintenance of sewer and drainage facilities; (iii) the right to perform brush management activities; (iv) the right to perform mitigation, restoration and management activities required as a condition of any local, state or federal permit or approval, including installation, monitoring and maintenance; (v) the right to plant, install and maintain indigenous plant materials and irrigation facilities consistent with open space property; (vi) the right to install and maintain fences consistent with open space property; (vii) the right to request that Center grant easements to third parties for purposes consistent with this Agreement (Center's approval of the same not to be unreasonably withheld); (viii) the right to engage in any other use consistent with the purpose of the Conservation Land as open space property; and (ix) the right to create conservation or mitigation credits and to allow the City of San Marcos and City of Carlsbad to do so as well; (collectively referred to herein as "Reserved Rights"). In addition to the Reserved Rights, the express rights reserved for each parcel of the Conservation Land are more particularly described below and in Notebook §§ VIII F, IX F, X F, XI F, XII F, XIII F, XIV F and XV F \V02-SD:6RM!\51339960.7 -6- 092804 06V3-0893I3 10 3.1 Temporary License. Prior to conveyance of the Conservation Land to the Center and/or prior to the availability of permanent access to the Conservation Land, the Center may need temporary access to the Conservation Land and/or portions of property owned by Proponent to perform certain activities to carry out the purposes and intents of this Agreement. Subsequent to conveyance of the Conservation Land to the Center, Proponent may need access to the Conservation Land to perform certain activities to develop University Commons. Said activities of the Center and Proponent (collectively referred to as the "Work") are defined as follows: Definition of Work Center: The Center's activities constituting the Work may include management of the Conservation Land, along with monitoring, maintenance, repair, restoration and remedial measures. Proponent: Proponent's activities constituting the Work may include construction and maintenance of trails and subdivision improvements, including utilities, performance of brush management activities, mitigation, restoration and management activities, activities associated with the Reserved Rights described herein, and other activities associated with the development of University Commons. Grant of Temporary License. Subject to the terms and conditions set forth herein, each party shall have and is hereby granted a non-exclusive temporary license to enter the Conservation Land while such property is in the possession of the other party for the purpose of, and to the extent required to perform the Work. The parties shall not permit any other party, except the duly authorized representatives of the Agencies and the parties' employees, agents, and contractors (collectively "Representatives"), to enter or use the Conservation Land during the term of the license agreement set forth in this §3.1 ("License Agreement") without the other party's prior written consent. Performance of the Work. The parties and their Representatives shall: (a) perform the Work in a diligent, expeditious and safe manner; (b) not allow any dangerous or hazardous condition to continue beyond the completion of the Work; (c) comply with all applicable laws and governmental regulations; (d) keep the Conservation Land free and clear of all mechanic's liens and lis pendens or other Hens arising out of entry and the Work performed on the Conservation Land by the parties or their Representatives; and (e) indemnify, defend and hold the other party harmless from and against any and all mechanic's liens, lis pendens or other liens arising out of entry upon and the Work performed on the Conservation Land by the parties or their Representatives. Costs of Performing the Work. Except as otherwise provided herein, all costs and expenses of performing the Work, including, but not limited to, inspection fees, professional fees for design and engineering, permit fees, environmental clearance, including mitigation and monitoring for impacts to resources affected W02-SrJ:6RMl\51339960.7 -7- 092804 06V3-089313 2,1 by performance of the Work shall be the sole responsibility of the party performing the Work. The party performing the Work shall obtain, at its sole cost and expense, all governmental permits and authorizations of whatever nature required by all applicable governmental agencies for performance of the Work. Reciprocal General Indemnification. Each party shall, and hereby agree to, defend (with legal counsel acceptable to the other party), indemnify, protect and hold harmless the other party and their partners, shareholders, directors, officers, successors, affiliates, assigns, employees, agents, contractors, subcontractors and representatives (collectively "Indemnitees") from and against any and all claims, damages, demands, actions, causes of action, losses, liabilities and obligations (including, without limitation, attorneys' fees and defense costs), of any kind or nature whatsoever, arising out of, or in any way related to, directly or indirectly, this Agreement, each party's entry upon the Conservation Land and/or the Work performed, including, but not limited to: (i) any act or omission of the Parties or their Representatives, or any other persons performing all or any portion of the Work; (ii) personal injury and/or property damage arising out of or in any way connected with the performance of all or any portion of the Work; and (iii) mechanic's liens, provided, however, that the parties' duty to indemnify and hold harmless shall not apply to those incidents or claims arising from the sole negligence or willful misconduct of the other party or its Indemnitees. Notice of Commencement of Work. At least two (2) business days prior to commencing the Work on the Conservation Land, the party performing the Work shall give written notice to the other party in possession of the Conservation Land of the date on or about which all or any portion of the Work will commence. The party in possession of the Conservation Land shall have the right to post and record notices of non-responsibility in the manner provided by law and to have a representative present when the Work is performed. Insurance. Each party shall secure and maintain, or shall cause their Representatives performing the Work to secure and maintain, at its or their sole cost and expense, the following policies of insurance which are to include coverage for any of the parties' activities or the activities of their Representatives on the Conservation Land in connection with performance of the Work: Comprehensive commercial general liability insurance, including coverage for personal injury and property damage, with limits of One Million Dollars ($1,000,000) for each occurrence; and Two Million Dollars ($2,000,000) policy limit for general aggregate operations on an occurrence basis; Comprehensive automobile liability insurance; and Worker's compensation and employer's liability insurance in accordance with the provisions of California law. The policies of insurance described above shall each name the other party in possession of the Conservation Land as an additional insured. Certificates of Insurance ("Certificate") evidencing the insurance policies described herein shall be delivered by the party performing the Work or its Representatives to the other W02-SD:6RM!\5I339960.7 -8- 092804 06V3-089313 2,2, party in possession of the Conservation Land prior to commencement of any of the Work on the Conservation Land by the party or its Representatives. If the policy is canceled before the Work is completed or the permission granted herein is terminated for any reason whatsoever, the party's rights with regard to entry on the Conservation Land by the party or its Representatives shall automatically terminate. Any of the foregoing insurance may be provided under blanket or wrap insurance policies maintained by the parties or by the parties furnishing the other party in possession of the Conservation Land with a letter evidencing that the parties maintain a comprehensive program of risk retention and insurance. Such letter shall be provided prior to the commencement of any of the Work on the Conservation Land by the parties or their Representatives and shall also state that the protection provided under such comprehensive program of risk retention and insurance is equivalent to the insurance specified herein. Survival of Conditions. The covenants and indemnities contained in this License Agreement shall survive any termination or expiration of this License Agreement, completion of the Work, or the permission granted herein. Termination. This License Agreement shall automatically be terminated and of no further effect as to each parcel of the Conservation Land when the Work located thereon has been completed or permanent access is provided, whichever occurs first. 4. Transfer of Qnsite Conservation Land. Transfer of the parcels of Onsite Conservation Land shall occur as follows: 4.0 With respect to the New Properties, and the Parcels listed below, Center shall cooperate with Proponent as Proponent fulfills its obligations as set forth in the Conservation Easements, and will cooperate with Proponent by reviewing, approving, in its reasonable discretion, and recording or consenting to the recordation of instruments that encumber the Conservation Land as set forth in the table of "Easements and Quitclaims Needed" prepared by O'Day Consultants (Meg Carroll) on 6/21/2004 (easements 3302004). Furthermore, Center will cooperate with Proponent by reviewing, approving, in its reasonable discretion, and consenting to recordation of additional instruments encumbering the Conservation Land after the Transfer date, as reasonably necessary for access and similar purposes in connection with the development of the University Commons projects; provided that such additional instruments do not impair the conservation purposes of the Conservation Land, in Center's reasonable judgment. Such cooperation shall not increase any burden agreed to by Center or increase Center's costs without offsetting reimbursement or increase in Contribution from Proponent. 4.1 Brouwer Parcel I/PA 15. Proponent shall cause fee title to Brouwer Parcel I/PA 15 to be Transferred through escrow to the Center or to a grantee mutually acceptable to the Agencies and Proponent in accordance with Section 8.12 of Proponent's Purchase Agreement and Escrow Instructions whereby Proponent is acquiring Brouwer Parcel W02-SD:6RMl\S 1339960.7 -9- 092804 06V3-089313 I/PA 15. Transfer of Brouwer Parcel I/PA 15 shall occur in accordance with and consistent with the Permits for University Commons, provided that the following express rights are reserved for Proponent and its successors, assigns, agents and employees: Proponent's Reserved Rights and Proponent's Obligations: Slope, drainage and utility rights along Melrose Drive, including rights for design and construction of Melrose Drive Right-of-way and easements for construction and maintenance of trails Access rights to SDG&E utility easement Access rights for wetlands mitigation, restoration and monitoring by Proponent and the City of Carlsbad Access rights for rock quarry cleanup and maintenance Easement for the right to discharge water upon the land resulting from the extension of Melrose Drive across San Marcos Creek Access rights and obligations for restoration, monitoring, and mitigation, as well as rights to create conservation or mitigation credits (In addition to Proponent, City of San Marcos and/or City of Carlsbad may undertake restoration/creation and be beneficiaries of such credits) Reserved Rights described in Section 3 above Agencies' Reserved Rights: Conservation Easements in favor of the Agencies Access Rights: Temporary access to Brouwer Parcel 1 via the License Agreement described in Section 3.1 above over Proponent's property at a mutually acceptable location which license will automatically terminate when Melrose Drive has been constructed and is open for public use. Permanent access rights to Brouwer Parcel 1 via Melrose Drive The Center's Management Date for the Revegetation Areas within Brouwer Parcel 1 shall commence at such time as Dudek & Associates certifies in writing that the Revegetation work is complete (subject to Center and Agency concurrence) at which time the Center shall accept the Revegetation Areas for maintenance. The Center's Management Date for all remaining areas of Brouwer Parcel 1 other than the Revegetation Areas shall commence immediately upon Transfer of Brouwer Parcel 1 to the Center. 4.2 Brookfield Northern Parcel 2/PA's 2 and 16. Proponent shall Transfer Brookfield Northern Parcel 2/PA 2 & 16 to the Center upon compliance with the California Subdivision Map Act and the creation of legal parcels or at such time as the property can W02-SD:6RM1\51339960.7 -10- 092804 06 V3-089313 otherwise be legally conveyed. At such time, Proponent shall Transfer fee title to said parcel to the Center. The following rights shall be reserved for Proponent and its successors, assigns, agents and employees over Brookfield Northern Parcel 2/PA's 2 & 16. Proponent's Reserved Rights and Obligations: Right to grant slope, fuel management and drainage easements, including rights and obligations for grading, construction and maintenance of manufactured slopes within Brookfield Northern Parcel 2A/PA2 Right to grant right-of-way and easements for construction and/or maintenance of trails Access rights across SDG&E utility corridor for Brookfield Northern Parcel 2B/PA 16—which rights shall be shared with, assigned to or obtained for Center by Proponent Consent Agreement with Sempra Energy/SDG&E Reserved Rights described in Section 3 above Center shall not be responsible for manufactured slopes that have ornamental landscaping and/or any slopes that terminate at rear yards of homeowners that are intended to be maintained by the Homeowners' Association. Agencies Reserved Rights: Conservation Easement in favor of the Agencies Access Rights: Access rights to Brookfield Northern Parcel 2A/PA 2, which have already been granted. The Center's Management Date for Brookfield Northern Parcel 2/PA's 2 & 16 shall commence at such time as compliance with the California Subdivision Map Act occurs and legal lots are created within said parcel 2/PA's 2 & 16 or at such earlier time as said property can otherwise be legally conveyed. 4.3 Brookfield Southern Parcel 3/PA's 13. 14 & 6a. Proponent shall Transfer Brookfield Southern Parcel 3/PA's 13, 14 & 6a to the Center upon compliance with the California Subdivision Map Act and the creation of legal parcels or at such time as the property can otherwise be legally, conveyed or Conservation Easements recorded. At such time, Proponent shall Transfer fee title to PA's 13 & 14 and Lot 11 and a Conservation Easement(s) over Lot 8 areas to the Center. New Properties included in Brookfield Southern include Lot 8 Areas and Lot 11 for which Proponent has revegetation and wetlands mitigation obligations as set forth in its permits and the Conservation Easements. Within PA 13 (part of Brookfield Southern), Proponent has slope restoration/maintenance obligations as set forth in its permits and the Conservation Easements. The following rights shall be reserved for Proponent and its successors, assigns, agents and employees over of Brookfield Southern Parcel 3/PA's 13, 14 & 6a. W02-SD:6RM!\51339960.7 092804 06V3-0893I3 Proponent's Reserved Rights and Obligations: Slope and drainage rights and obligations for grading and restoring slopes and wetland areas within Brookfield Southern Parcel 3 Street vacation of existing San Elijo Road for Brookfield Southern Parcel 3 Access rights across SDG&E utility corridor and along existing dirt road Right- of-way and easements for construction and/or maintenance of trails Reserved Rights described in Section 3 above Agencies' Reserved Rights: Conservation Easement in favor of the Agencies Access Rights: Temporary access rights to Brookfield Southern Parcel 3 are not required after the SDG&E Consent Agreement is transferred to the Center. Permanent access rights to Brookfield Southern Parcel 3 from San Elijo Road for the western portion of the property and a Consent Agreement for access through the SDG&E parcel for the eastern portion of Brookfield Southern Parcel 3. Proponent to allow Center to access PA 14 over this SDG&E parcel, or otherwise arrange for Center to have access to PA 14 via this SDG&E parcel. The Center's Management Date for Brookfield Southern Parcel 3 shall commence at such time as compliance with the California Subdivision Map Act occurs and legal lots are created within said Parcel 3 or at such earlier time as said property can otherwise be legally conveyed, and accepted by Center and the Agencies, except for those areas of Lot 11 and the Lot 8 Areas where Proponent retains revegetation/restoration obligations. When those obligations are complete, Center will assume management of those areas. 4.4 Shelley Parcel 4/PA 12b. Proponent shall Transfer that portion of the Shelley Parcel 4 (PA 12b) proposed for dedication as open space to the Center upon compliance with the California Subdivision Map Act and the creation of legal parcels or at such time as the property can otherwise be legally conveyed. At such time, Proponent shall Transfer fee title to said portion of Shelley Parcel 4 (PA 12b) to the Center. The following rights shall be reserved for Proponent and its successors, assigns, agents and employees over such portions of Shelley Parcel 4/P A 12b: Proponent's Reserved Rights and Obligations: Access rights for performing brush management activities Slope and drainage rights and obligations for grading slopes within Shelley Parcel 4 and any Revegetation and Monitoring that may be required pursuant to Proponent's Permits for the University Commons project. Slope, drainage and utility easements Right-of-way and easements for construction and/or maintenance of trails W02-SD:6RMI\5i3W960.7 -12- 092804 06V3-089313 Reserved Rights described in Section 3 above Agencies' Reserved Rights: Conservation Easement in favor of the Agencies Access Rights: Temporary access via the License Agreement described in Section 3.1 above over Proponent's property at a mutually acceptable location which license will automatically terminate when other permanent access is available. Permanent access to the open space portion of Shelley Parcel 4 through Streets "A" and "H", a connective access easement from Streets "A" and "II" to Parcels "A" and "D" of Shelley Parcel 4 respectively, and an existing private road easement to Parcels "B" and "C" of Shelley Parcel 4, and any other points shown on the Shelley Final Map. Prior to accepting a Grant Deed to Shelley, Center will need to be assured of practical and legal access to every point on the Shelley parcel(s). The Center's Management Date for the Shelley Parcel shall commence at such time as compliance with the California Subdivision Map Act occurs and legal lots are created for that portion of the Shelley Parcel designated as open space or at such earlier time as that portion of said property can otherwise be legally conveyed. 5. Transfer of Offsite Conservation Land. Transfer of the parcels of Offsite Conservation Land shall occur as follows: 5.1 Wilern Parcel 5. Proponent shall Transfer fee title to Wilern Parcel 5 to the Center in accordance with and consistent with the Permits for University Commons, provided that the following rights are reserved for Proponent and its successors, assigns, agents and employees: Proponent's Reserved Rights and Obligations: Access rights to perform trash removal, restoration and monitoring obligations Reserved Rights described in Section 3 above Agencies' Reserved Rights: Conservation Easement in favor of the Agencies Access Rights: Temporary access to Wilern Parcel 5 is not required after the SDG&E Consent Agreement is transferred to the Center. Permanent access via access easements over the Duckworth and the Stalford parcels to the north from Via Del Corvo which will be appurtenant to Wilern Parcel 5 and to the Environmental Trust parcel to the south together with a Consent Agreement with SDG&E for access through the SDG&E easements now existing on Wilern Parcel 5 and the Environmental Trust parcel. W02-SD:6RM1\S 1339960.7 -13- 092804 06V3-089313 The Center's Management Date for the Revegetation Areas within Wilern Parcel 5 shall commence at such time as Dudek & Associates certifies in writing that the Revegetation work is complete (with Center and Agency concurrence) at which time the Center shall accept the Revegetation Areas for maintenance. The Center's Management Date for all remaining areas of Wilern Parcel 5 other than the Revegetation Areas shall commence immediately upon Transfer of Wiiern Parcel 5 to the Center. 5.2 Setter Parcel 6. Proponent shall Transfer fee title to Setter Parcel 6 to the Center in accordance with and consistent with the Permits for University Commons, provided that the following rights are reserved for Proponent and its successors, assigns, agents and employees: Proponent's Reserved Rights: Reserved Rights described in Section 3 above Agencies' Reserved Rights: Conservation Easement in favor of the Agencies Access Rights: Access rights through existing private road easement The Center's Management Date for Setter Parcel 6 shall commence upon Transfer of fee title to Setter Parcel 6 to the Center. 5.3 Huff Parcel 7. Proponent shall Transfer fee title to Huff Parcel 7 to the Center in accordance with and consistent with the Permits for University Commons, provided that the following rights are reserved for Proponent and its successors, assigns, agents and employees: Proponent's Reserved Rights and Obligations: Access rights to perform restoration and monitoring obligations Reserved Rights described in Section 3 above Agencies' Reserved Rights: Conservation Easement in favor of the Agencies Access Rights: Access rights through Hidden Canyon Road off San Elijo Road The Center's Management Date for the Revegetation Areas within Huff Parcel 7 shall commence at such time as Dudek & Associates certifies in writing that the Revegetation work is complete (with Center and Agency concurrence) at which time the Center shall accept the Revegetation Areas for maintenance. The Center's Management Date for all remaining areas of Huff Parcel 7 other than the Revegetation Areas shall commence immediately upon Transfer of Huff Parcel 7 to the Center. Once Proponent has removed the "mulch", Center will accept responsibility for upland revegetation at Huff. In exchange Proponent will increase Huff I&C Contribution by $100,000. Center has obtained Agency approval to operate or cause to be operated by third parties, a native plant nursery at Huff. Center will complete the revegetation at W02-SD:6RM1\S1339960.7 -14- 092804 06V3-089313 such time as the nursery operations cease. Center will work with Proponent and Dudek, if it so elects, to obtain municipal water service to APN's 223-081-09, 10 within Huff Parcel 7, and Center and Proponent will share in the cost of such water service (in proportion to their respective water usage) so long as Proponent is responsible for Revegetation and Monitoring. 5.4 Winston Parcel 8. Proponent shall Transfer fee title to Winston Parcel 8 to the Center in accordance with and consistent with the Permits for University Commons, provided that the following rights are reserved for Proponent and its successors, assigns, agents and employees: Proponent's Reserved Rights and Obligations: Easement to perform brush management activities Right-of-way and easements for construction and/or maintenance of trails Slope and drainage rights for grading, construction and slope maintenance obligations Reserved Rights described in Section 3 above Agencies1 Reserved Rights: Conservation Easement in favor of the Agencies Access Rights: Permanent access rights via private road easement to San Elijo Road The Center's Management Date for Winston Parcel 8 shall commence upon Transfer of fee title to Winston Parcel 8 to the Center. 5.5 Pfau Easement. Proponent shall Transfer an easement interest in the Pfau Easement to the Center in accordance with and consistent with the Permits for University Commons, provided that the following rights shall be reserved for Proponent and its successors, assigns, agents and employees: Proponent's Reserved Rights: Reserved Rights described in Section 3 above Agencies' Reserved Rights: Conservation Easement in favor of the Agencies The Center's management date for the Pfau Easement shall immediately commence upon Transfer of the same to the Center. 5.6 Frank's Peak. Proponent shall Transfer a fee simple interest in Frank's Peak to the Center in accordance with and consistent with the Permits for University Commons, provided that the following rights shall be reserved for Proponent and its successors, assigns, agents and employees: W02-SD:6KMl\5l339960.7 -15- 092804 06V3-089313 Proponent's Reserved Rights: Reserved Rights described in Section 3 above Agencies' Reserved Rights: Conservation Easement in favor of the Agencies The Center's management date for Frank's Peak shall commence immediately upon Transfer of the same to the Center. 6. Obligations Prior to Conveyance. The Center and Proponent agree to satisfy the following obligations prior to Transfer of any parcel of the Conservation Land. 6.1 Walk Through. Within fourteen (14) days prior to the date of Transfer of any parcel of the Conservation Land, the Center shall conduct a physical examination ("Walk Through") of the Conservation Land. Within three (3) days after the Walk Through, the Center shall provide a written list to Proponent of property conditions needing correction by Proponent, including, but not limited to, dumping or dangerous conditions. Once the Center is satisfied with the condition of the Conservation Land, the Center shall provide a written "Notice of Approval of Physical Condition" to Proponent. 6.2 Title Review. Within thirty (30) days prior to the Transfer of any parcel of the Conservation Land, Proponent shall provide Center with a title report or title policy covering all the Conservation Land. Within fourteen (14) days after receipt of such title report or title policy, the Center shall provide a written notice to Proponent setting forth any objections thereto, including, but not limited to, objections to any liens, leases, mineral and water rights, or other restrictions that have not been approved by the Center, or the inclusion of the property in a special district with taxing authority that has not been approved by the Center. If the Center has no such objections, or Proponent has removed all exceptions to which the Center objected, the Center shall provide a written "Notice of Approval of Title" to Proponent. The special districts (special district taxes are not included on title reports), taxing entities and exceptions to title for each parcel that the Center must review and approve or provide a written notice of objections prior to Transfer of such parcel are included in Notebook §§ VIII C, IX C, X C, XI C, XII C, XIII C, XIV C and XV C. (As of July 1, 2004, additional special district obligations have attached to various Conservation Land parcels or have proved impossible to prepay or remove— particularly CSA 107, Elfin Forest Fire Protection with respect to Huff. Proponent will increase the Contribution in an amount sufficient, in Center's reasonable determination, to allow Center to pay such assessments as they become due; provided, however, that if Center is able to obtain a permanent exemption from any such assessment, it will refund to Proponent any unused Contribution associated with such assessment. Proponent has identified various other special districts with liens or which have filed notices of potential lien over Conservation Land. In each case, Proponent believes such liens exempt open space or vacant land from paying tax. Proponent agrees to indemnify and hold harmless Center from any cost or expense associated with such special district taxes and assessments. For example, while CFD's 2001-1 and 2002-1 exempt vacant land from the ongoing special tax, such lands are not exempt from the "One time Special Tax" which can be levied when Proponent's subdivision maps are recorded. Should there be such levy, Proponent will promptly reimburse Center upon Center's delivery of evidence that it has been assessed, and has paid, such tax.) W02-SD:6RMl\51339960.7 -16- 092804 06V3-089313 6.3 Title Insurance. Title insurance for any parcel of the Conservation Land will be procured by Proponent in an amount and in a form acceptable to Center prior to the Transfer of any of the Conservation Land to the Center. To the extent encumbrances which were agreed by Proponent to be removed from parcels transferred prior to July 1, 2004 were not removed from Schedule B of title insurance policies delivered to Center by Proponent, Proponent will assist Center, at no cost to Center, in obtaining title insurer's corrected schedules and/or policy endorsements. 6.4 Phase 1 Environmental Site Assessments ("ESA's".). Proponent shall provide Center with ESA's that are less than 6 months old for the New Properties and properties to be transferred and Center shall review such ESA's, giving Proponent written approval or disapproval, with a list of conditions to be cured by Proponent prior to close of escrow, within 30 days of the intended close of escrow ("Notice of Approval of ESA's"). 6.5 Deliveries. Within seven (7) days after Proponent's receipt of the Center's Notice of Approval of Physical Conditions, Notice of Approval of ESA's and Notice of Approval of Title, Proponent shall deposit into escrow with Chicago Title Company or some other mutually acceptable title company ("Escrow Holder"): (a) the Conservation Easement(s), Grant Deed or Grant Deed(s) conveying the Conservation Land to the Center; (b) a grant of the Access Rights and other rights reserved herein, if any; (c) sufficient funds to cover escrow, title and recording costs; (d) the Contribution for the parcel of the Conservation Land to be Transferred, and (e) other funds agreed to among the parties, such as the Huff upland restoration funds, funds to pay delinquent taxes, funds to pay assessments, and funds to reimburse Center for its due diligence expenses. The Escrow Holder shall thereafter cause to be recorded: (a) the Conservation Easement(s), Grant Deed or Grant Deed(s) Transferring the Conservation Land to the Center. Upon recordation of (a) the Conservation Easement(s)Grant Deed or Grant Deed(s) Transferring a parcel of the Conservation Land to the Center, Escrow Holder shall deliver the Contribution for the parcel Transferred to the Center and the other funds. The date on which Proponent makes these deliveries shall be referred to herein as the "Conveyance Date." 6.6 Open Space Designation, Proponent will secure open space, nature preserve, or the similar designation acceptable to the Agencies for each of the parcels in the On Site Conservation Land prior to Transfer. Proponent agrees that Center may apply for similar designation over any Off Site Conservation Land parcels. 6.7 Amount of Contribution on the Conveyance Date. The amount of the Contribution is contingent on the Conservation Land being exempt from property taxes. If the Center determines that certain taxes reflected on the property tax statement will be levied on the Conservation Land, an increase in the Contribution for the parcel subject to such taxes will be required. In addition, on the Conveyance Date, the amount of the Contribution for each parcel will be increased based on an adjustment for inflation using the Consumer Price Index (CPI All Urban Consumers, 1982 1984 = 100) for Los Angeles Anaheim Riverside as published by the Bureau of Labor Statistics of the U.S. Department of Labor. If the Center chooses to so adjust the amount of the Contribution for any parcel of the Conservation Land, the additional amount will be determined by multiplying the Contribution for that parcel by a fraction, the numerator of which is the CPI for the month that is two months prior to the Conveyance Date, and the denominator of which is the current CPI at the time of execution of this Agreement. W02-SD:6RMl\S 1339960.7 -- 092804 06V3-089313 6.8 Center may deliver to CDFG and any other agencies the Title Reports and Phase 1 Environmental Site Assessments provided by Proponent if required to do so in connection with its obligations under the Conservation Easements. Proponent has cooperated with Center in this undertaking by providing such documents to Center, and shall provide reasonable assistance in this regard in the future by providing and distributing additional copies of documents and related information as reasonably requested by Center. 7. Proponents Obligations 7.1 Survey Markers. If the Center deems necessary, Proponent shall survey and mark the legal boundaries for any parcel of the Conservation Land with permanent markers by the Management Date established for such parcel in this Agreement. 7.2 Access. Subject to the terms and conditions set forth in Section 3.1 herein, by this Agreement, Proponent gives all rights of access, as those rights are described herein, to the Conservation Land to the Center, Center's employees, contractors and representatives as of the Management Date, reserving for Proponent the rights specified herein. The Proponent shall not suffer or permit to be enforced against the Conservation Land or any part hereof any mechanics', laborers', materialmen's, contractors' or any other liens arising from, or any claims for damages growing out of any work or other activities by the Proponent or its representatives or invitees under this rights reserved herein (collectively, "Liens"). The Proponent hereby protects, defends, indemnifies and agrees to hold the Center, its agents, officers, and employees free and harmless from all liability for any and all such Liens, together with all costs and expenses, including but not limited to attorneys' fees and court costs reasonably incurred by the Center in connection therewith. Proponent's obligation hereunder to protect, defend, indemnify and hold harmless shall not include liability arising out of, caused by or connected with the sole negligence of the Center. 7.3 Obligations to Manage Subsequent to Management Date. Proponent shall have no obligation to bear the cost of, or maintain, manage, repair or construct improvements upon the Conservation Land after the Management Date, except to the extent the following obligations remain unsatisfied. (a) Proponent shall be responsible for the Revegetation of the Revegetation Areas and shall contract separately for the Monitoring of the Revegetation until such Revegetation area are certified in writing by Dudek & Associates (or equivalent firm) as being complete and the Center and Agencies have concurred. Upon completion of the Revegetation by Proponent, the Center shall maintain the Revegetation Areas and Proponent shall have no further responsibility for Revegetation or Monitoring of such areas. (b) Proponent shall be responsible for ensuring that the Covenants, Conditions and Restrictions (CC&Rs) for Proponent's projects shall contain a description of the Conservation Land, the Permits, and the reasons for its protection. Following the date of this Agreement, Center may deliver a letter to each Homeowners' Association for University Commons (with a copy of the same to Proponent) describing Center's purpose and mission of managing the Conservation Lands. Center and Proponent agree that each homeowner or W02-SD:6RM1\5J 339960.7 -18- 092804 06V3-089313 32. Homeowners' Association or Community Facilities District 98-02 shall maintain the fence between the property and the Conservation Land. (c) Proponent has arranged for managing and funding all fuel modification zones over the Conservation Lands within the University Commons Specific Plan boundaries that are required by the existing Specific Plan and all other governmental requirements existing as of the date of this Agreement for Proponent's projects, and has documented or will document the same as a requirement of the Homeowners Associations for Proponent's projects in the appropriate CC&R's. Easements over such fuel modification zones have been granted or will be granted to adjacent property owners (for subsequent transfer to such Homeowners Associations) in the form of the Fuel Modification, Landscape Installation, Slope Maintenance and Access Agreement attached as Exhibit B ("Easement Form"), which form provides for expansion of such fuel modification areas in the future as set forth in Sections 2.3 and 2.4 thereof. The Easement Form shall be used in all cases where any fuel modification, landscape installation, slope maintenance, drainage facility maintenance or similar right of entry or access occurs on Conservation Land as permitted under this Agreement. The areas currently granted are as shown in the map entitled "CNLM Land Management Areas in University Commons with Homeowners Association Fuel Modification Easements Highlighted", which is attached hereto as Exhibit D. Neither Center nor Proponent is currently obligated to conduct any additional fuel modification on any of the Conservation Lands. (d) Proponent or its designee or assignee pursuant to an agreement in the form of Exhibit B shall be responsible for all manufactured slopes and revegetated areas until its Monitoring period terminates and Center accepts responsibility for those areas. (e) The Center shall not be responsible for manufactured slopes in PA 2 or PA 12b (if any), or for any manufactured slopes that have ornamental landscaping and/or for any slopes that terminate at rear yards of homeowners that are intended to be maintained by the Homeowners' Association. 8. Center's Obligations. The Center shall maintain the Transferred parcels of the Conservation Land in compliance with the Agencies' requirements and pursuant to the terms herein and the Property Analysis Record ("PAR") attached as Exhibit "C" hereto. The Center's obligations include, but are not limited to, the following: 8.1 Center shall monitor and manage all Conservation Lands except the Lot 8 Areas and the Pfau Easement, where Center's only duty shall be to monitor Grantor's performance under the Conservation Easement and report to the Agencies. 8.2 Reveeetation and Wetland Restoration Areas. The Center shall be responsible for maintaining the Revegetation Areas and wetland restoration areas after the Revegetation and wetland restoration is complete. The Center shall have no obligation to install Revegetation or restore wetlands or Monitor the Revegetation or wetlands work. Center shall manage Revegetation Areas and restored wetland areas after Dudek & Associates notifies Center, certifies in writing that the Revegetation and wetlands work has been completed by the Proponent, and the Center and Agencies have concurred. Before such time as Center accepts management responsibility, Dudek & Associates shall turn over the biotechnical data in their W02-SD:6RM1\S1339960.7 -19- 092804 06V3-089313 reports to Center for use as "baseline" information in Center's monitoring and management of the Conservation Lands. 8.3 Boundary Signs and Fences. Gates. The Center shall be responsible for all maintenance, repair and replacement of the boundary signs and fences and gates designating the Conservation Land. Proponent is responsible for their initial installation, at the request of Center, and for repair and maintenance of such signs, fences and gates in wetlands restoration areas until the Center and Agencies concur that restoration work has been completed. 8.4 Monitoring. The Center shall systematically monitor the biological resources on the Conservation Land per the standardized guidelines. An annual biological assessment shall be conducted to consistently monitor changes in the habitat over time, establish presence and absence of sensitive species, and photo document these changes into a permanent record. The Center shall develop a management plan in the first year and update such plan every five (5) years. Biologists, working on behalf of the Center, conducting the surveys shall have the necessary federal permits. 8.5 Patrolling. The Center shall patrol the Conservation Land with the intention of preventing unwarranted trespass or illegal use of the land. Off road vehicle use shall not be permitted on the Conservation Land. Center will cooperate with the City of San Marcos in making trails on Conservation Lands accessible to the public. This assumes Proponent or City will construct the trails, gates and fences shown on Proponents approved plans; that the City will maintain and patrol the trails; and that the City will indemnify and hold harmless the Center from any cause of action, damage or loss associated with its or the public's use of the trails. From time to time, should public access or use of trails temporarily threaten the conservation values of the Conservation Lands, Center may close one or more trails. Should trail use permanently threaten the conservation values, Center may request City relocate or close one or more trails. 8.6 Non-native Species. The Center shall institute programs to monitor and remove non native plant and animal species within the Conservation Land, except that the Center shall not be responsible for cowbird trapping on the Conservation Lands. In doing so, Center may use best practices and operate under its own policies with respect to the use of rodenticides, herbicides and other chemical or mechanical control or removal methods, including prescribed burning or grazing, even though such methods may be prohibited under a Conservation Easement, but are allowable pursuant to applicable Agency rules and regulations, and local, state and federal law. 8.7 General Maintenance. All general maintenance activities shall be performed on a regularly scheduled basis. The Center shall be responsible to report dumping on the Conservation Land to the relevant law enforcement authority. The Center shall be responsible for all aspects of the maintenance and administrative obligations set forth in this Agreement, including government and community relations, and the hiring of any contractors. Upon Transfer of any parcel of the Conservation Land, the Center shall retain all responsibility and bear all costs and liabilities of any kind concerning the ownership, operation and maintenance of any such parcel of the Conservation Land, including maintaining comprehensive liability insurance, except as otherwise set forth in this Agreement or the Conservation Easement. At such time, the Center shall pay before delinquency all taxes, assessments, fees, and W02-SD:6RM1\51339960.7 -20- 092804 06 V3 -089313 3'M charges of whatever description levied on or assessed against such parcel by competent authority—-although Center may have recourse to the Proponent for reimbursement of certain assessments as outlined in Section 6 of this Agreement. The Center shall keep the Transferred parcel free of any liens arising out of any work performed for, materials furnished to, or obligations incurred by the Center. 8.8 Conservation Easement. Within 60 days of Transfer of fee title to any parcel of the Conservation Land, the Center shall convey a perpetual Conservation Easement as defined herein over each such parcel of the Conservation Land that is Transferred to the Center. The Conservation Easement shall be in a form acceptable to the Agencies, the terms of which will include the reservation of rights described herein and ensure that the parcel conveyed is used for permanent open space. The Conservation Easement shall be in favor of CDFG. The USFWS and/or the ACOE shall be third-party beneficiaries of the Conservation Easement as circumstances associated with each parcel shall dictate. 8.9 Default/Transfer, The Center and Proponent agree that all rights and obligations of the Center pursuant to the terms of this Agreement shall be transferred to a public agency, non-profit entity or other grantee acceptable to the Proponent and the Agencies for the purpose of managing and maintaining the Conservation Land pursuant to the terms of this Agreement in the event any of the following occur: (i) the Center defaults in its obligations hereunder; (ii) the Center assigns all or part of its obligations and rights hereunder to a party or organization that is not acceptable to the Proponent and the Agencies; (iii) a general assignment by the Center for the benefit of creditors, the filing of any voluntary petition in bankruptcy by the Center or the filing of any involuntary petition in bankruptcy by the Center's creditors; (iv) the employment or appointment of a receiver to take possession of substantially all of the Center's assets; (v) the attachment, execution or other judicial seizure of all the Center's assets; or (vi) the admission by the Center in writing of its inability to pay its debts as they become due, the filing by the Center of a petition seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, or the filing by the Center of an answer admitting or failing timely to contest a material allegation of a petition filed against the Center in any such proceeding. In the event that the Agencies determine that all or any portion of the Conservation Land must be transferred to a grantee other than the Center and the Agencies continue to approve of the Center as an acceptable organization to perform the management plan described herein, the Proponent and the Center agree to modify the terms of this Agreement to provide an appropriate alternative means of accomplishing the intents and purposes of this Agreement. 9. Mitigation Credits In the event that Proponent, for whatever reason, does not proceed with development of all the University Commons project, the parties agree to the following. The parcels of Conservation Land that would have been associated with development that will no longer occur may be placed in a mitigation bank ("Mitigation Bank") maintained by the Center for the sale of conservation credits to parties for biological impacts caused by development. The parties hereby agree that Proponent would retain sole control and discretion of the creation, documentation, approval process, permitting use, purchase and sale of credits, The sale proceeds of any credit W02-SD:6RM!\51339960.7 -21- 092804 06 V3-089313 sales would include a sum sufficient to fund the Center's management and Monitoring in perpetuity of the particular portion of Conservation Land dedicated as a Mitigation Bank. Notwithstanding the above, Proponent reserves the right to restore, or cause to be restored by City of San Marcos or City of Carlsbad, wetland areas within Lot 11, Lot 8, Huff Parcel 7 and Brouwer parcels, Proponent or such Cities shall be entitled to wetland mitigation credits for such restoration which credits may be used, transferred or sold at Proponent's or such Cities' sole discretion. 9.1 Election to Transfer. In the event that Proponent is unable to timely obtain all federal, state and local permits and approvals necessary to develop University Commons, the Proponent may elect to have all or some of the Conservation Land transferred to Proponent or its designee or nominee. Proponent may elect this option by delivering written notice to the Center and on such election the Center shall immediately transfer fee title to the Conservation Land to Proponent or its designee or nominee and refund to Proponent the balance of the Contribution for management and maintenance of the Conservation Land being transferred. Proponent shall bear all costs and expenses for such transfer, and agrees to accept the transferred parcels in their "as is" condition, subject to all encumbrances, including, but not limited to the Conservation Easements delivered to CDFG, recorded or unrecorded. Proponent acknowledges that those Conservation Easements severely limit development and use of the parcels so encumbered 10. Closure The parties recognize that upon Transfer of a parcel of the Conservation Land and the Contribution from the Proponent to the Center, that the Proponent shall have no further obligations to manage any parcel of the Conservation Land Transferred to the Center except as otherwise described above. Further, Center shall have no right to seek additional Contributions from Proponent so long as the Conservation Land conforms generally to its condition at the time of Transfer (including the imposition of taxes and assessments permitted under this Agreement) in that it is useful for the intended purposes hereunder and the Permits referred to in Recital C are unchanged in a manner that would materially affect the Center's obligations hereunder. Notwithstanding anything to the contrary in the Conservation Easements, Proponent shall fulfill its obligations under this Agreement, and shall have access to the Conservation Lands in order to do so, if required, even after its Revegetation and wetlands restoration obligations are complete. 11. Indemnity 11.1 Center shall defend at its expense, including attorneys' fees, indemnify and hold harmless Proponent from any claims, actions, or proceeding against the Proponent, their agents, officers and employees and any liabilities, losses or damages arising from or relating to the negligence or intentional misconduct of the Center or the Center's breach of any obligation under this Agreement. 11.2 The Proponent shall defend, at its expense, including attorneys' fees, indemnify and hold harmless the Center from any claims, actions, or proceeding against the Center, its agents, officers and employees and any liabilities, losses or damages arising from or W02-SD:6RM)\5I339960.7 -22- 092804 06V3-0893I3 relating to the willful or intentional misconduct of the Preserve Landowners or the Preserve Landowners' breach of any obligation under this Agreement. 12. General Provisions 12.1 This Agreement cannot be amended or modified in any way except by a written instrument duly executed by Proponent and the Center. 12.2 All Exhibits referred to herein are attached hereto and by this reference incorporated herein. 12.3 This Agreement may be terminated prior to the Conveyance Date if a catastrophic event beyond the control of the Center and Proponent occurs, damaging the Conservation Land beyond the capabilities of the Center and Proponent to restore them, and any required governmental approvals are obtained. 12.4 Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other shall be in writing and either served personally or sent by first class mail, postage prepaid, addressed as follows: To Proponent: Brookfield University Commons, LLC Attn: David Poole 12865 Pointe Del Mar, Suite 200 Del Mar, CA 92014 With a copy to: Sheppard, Mullin, Richter & Hampton Attn: John E. Ponder, Esq. 501 West Broadway, 19th Floor San Diego, CA 92101 To the Center: Center for Natural Lands Management Attention: Sherry Teresa 425 E. Alvarado Street, Suite H Fallbrook, CA 92028 Attention University Commons S022 12.5 This Agreement shall be governed by the laws of the State of California. If any part of this Agreement, shall be held in conflict with applicable laws, such part shall be inoperative, null, and void insofar as it is in conflict with said laws, but the remainder of the Agreement shall continue to be in full force and effect. The captions of paragraphs used in this Agreement are for convenience only. 12.6 Actual or threatened breach of this Agreement may be prohibited or restrained by a court of competent jurisdiction. In the event either Proponent or the Center brings any legal or equitable proceeding (including any court action or arbitration proceeding) for enforcement of any of the terms or conditions of this Agreement, or any alleged disputes, breaches, defaults or misrepresentations in connection with any provision of this Agreement, the prevailing party in such proceeding, or the nondismissing party where the dismissal occurs other W02-SD:6RMI\51339%0.7 -23- 092804 06V3-089313 3-7 than by reason of a settlement, shall be entitled to recover its reasonable costs and expenses, including, without limitation, reasonable attorneys' fees and costs incurred in good faith. The "prevailing party," for purposes of this Agreement, shall be deemed to be that party who obtains substantially the result sought, whether by settlement, dismissal or judgment. 12.7 This Agreement contains the entire agreement of the parties hereto, and supersedes any prior written or oral agreements between them concerning the subject matter contained herein. There are no representations, agreements, arrangements or understandings, oral or written, relating to the subject matter, which are not fully expressed herein. 12.8 This Agreement shall be binding upon and inure to the benefit of the successors and assigns of Proponent and the Center. 12.9 By executing this Agreement, the Center and Proponent do not intend to form a joint venture or partnership. 12.10 Upon the dissolution of the Center or upon the Center's request to transfer this Agreement, all rights and responsibilities of the Center contained herein shall be transferred at the direction of the Agencies and Proponent to a public agency or non profit entity organized for and capable of managing and maintaining land for conservation puiposes pursuant to Section 8.8 above. 12.11 This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one in the same Agreement. W02-SD:6RM!\51339%0.7 -23A- 092804 06V3-0893I3 IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be in effect as of the date first stated above. Dated: 5&pf-. 1 >CENTER FOR NATURAL LANDS MANAGEMENT, INC., a California corjpioratk«r BROOKFIELD UNIVERSITY COMMONS, LLC, a Delaware limited liability company By:. Its: By: W02-SD:6RM1\51339960.5 -24- CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of San Diego ss. On September 1, 2004 _, before me, Gladys M. Eddy-Lee, Notary Public, personally appeared Sherry Teresa, Stephen P. Doyle and David R. Poole, COPY GLADYS M EDDY-LEE Commission* 1359863 Notary Public - California San Dtego County Pv Cft-.m Expires Jul 4,2008[ personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. Place Notary Seal Above Signature of Notary Public OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattschment of this form to another document. Description of Attached Document Title or Type of Document:, Document Date:Number of Pages:. Signer(s) Other Than Named Above:_ Capacities Claimed by Signers Signers' Names: D Individual 0 Corporate Officers - Titles [] Partner — D Limited D General D Attorney in Fact 1 I Trustee [j Guardian or Conservator U Other: Signers are representing. Right Thumbprirrt of Signer Top of thumb here agsaa^ /fo EXHIBIT "D" 1 Civic Center Drive VpBSfc El • BlMp^V/ Telephone San Marcos, CA 92069-2918 V^JLB Jl Hi H^M.^/ 760.744.1050 FAX: 760.591.4135 Maintenance Requirements for Trail Systems 1. Trail system shall be inspected daily and kept free of trash, animal waste, and miscellaneous debris. In addition, any unsafe condition observed during the inspection shall be corrected immediately. 2. Trail system shall be inspected and repaired prior to and immediately following each rain event. Inspections shall include review and completion of all necessary repairs to d.g. surfacing, including resurfacing or filling of ruts and low spots, any eroded areas, including both stabilized and non-stabilized areas. Repair of stabilized areas shall be per surfacing manufacturer's specifications. 3. Trail surface shall be kept free of all vegetation on a weekly basis. 4. A buffer area along the trail (12" to 18" out from the trail header) shall remain weed free on a weekly basis. 5. Contractor shall ensure that adjacent irrigation is maintained and adjusted properly to keep water off of the trail. 6. Lodgepole fence shall be inspected for loose rails, damaged posts, and other hazardous or unsightly conditions. All deficiencies shall be corrected in a timely manner. 7. Bollards, gates, and signage shall be inspected for damage and repaired as necessary. 8. The redwood header shall be inspected and repaired as necessary. Occasionally, the header may warp and protrude above grade causing a hazard. Remedial work shall take place immediately. 9. Chevrons (water diverters) shall be inspected on a regular basis, particularly prior to any forecasted rains. Contractor shall maintain the 1" lip between the trial surfacing and railroad tie in order to direct water off of trail and into ditch. 10. Drainage structures along the trail system shall be inspected and maintained in proper working order. Any erosion within in or around such devices shall be corrected immediately. 11. All costs incurred during the Two-Year Maintenance & Establishment period shall be the responsibility of the developer. Ralph Billings Landscape District Supervisor (760) 744-1050 ext. 3246 CITY COUNCIL: Jim Desmond, Mayor Hal Martin, Vice-Mayor Mike Preston Chris Orlando RebeccaJones O Printed on 30% post-consumer recycled paper