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Home My WebLink AboutAD 2002-01; ASSESSMENT DISTRICT 2002-01; FINAL ENGINEERS REPORT; 2004-03-29FINAL ENGINEER'S REPORT FOR ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) CITY OF CARLSBAD SAN DIEGO COUNTY CALIFORNIA March 29, 2004 Prepared By: Galen N. Peterson, Consulting Engineer San Diego, CA (858) 487-7000 2 Assessment District No. 2002-01 (Poinsettia Lane East) TABLE OF CONTENTS SECTION PAGE INTRODUCTION AND CERTIFICATIONS PART I Plans and Specifications PART II Cost Estimates 3 PART III Assessment Roll and Method of Assessment Spread 5 PART IV Annual Administrative Assessment 27 PART V Diagram of Assessment District 28 PART VI Description of Improvements and Right-of-Way Certificate 32 Appendix A - Resolution of Intention Appendix B - Acquisition/Financing Agreement between City and Developers Appendix C - Environmental Certification Appendix D - Property Owners List Appendix E - Detailed Cost Information Appendix F - Detailed Spread Information Appendix G - Assessment Engineer's Qualifications Appendix H Exhibits of Improvements City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page i AGENCY: CITY OF CARLSBAD PROJECT: ASSESSMENT DISTRICT NO. 2002-01 (Poinsettia Lane East) TO: CITY COUNCIL ENGINEER'S "REPORT" PURSUANT TO THE PROVISIONS OF SECTION 10204 OF THE STREETS AND HIGHWAYS CODE Pursuant to the provisions of the Municipal Improvement Act of 1913, being Division 12 of the Streets and Highways Code of the State of California (the "Improvement Act"), Article XIIID of the Constitution of the State of California ("Article XIIID"), and Proposition 218 Omnibus Implementation Act, Section 53750 and following of the Government Code (the "Implementation Act") (the Improvement Act, Article XIIID, and the Implementation Act are collectively referred to as the "Assessment Law"), and in accordance with City of Carlsbad Policy 33, and the Resolution of Intention, being Resolution No. 2004-057 adopted by the City Council of the City of Carlsbad, State of California, in connection with the proceedings for; Assessment District No. 2002-01 (Poinsettia Lane East), (hereinafter referred to as the "Assessment District"), I, GALEN N. PETERSON, P.E., Registered Professional Engineer, the duly appointed Assessment Engineer, submits herewith the "Report" for the Assessment District, consisting of six (6) parts as stated below. Part I This part contains the plans and specifications, which describe the general nature, location and extent of the proposed improvements to be constructed or acquired. The plans and specifications are referenced herein and made a part hereof. Said plans and specifications are on file in the Office of the Superintendent of Streets /City Engineer. Part II This part contains an estimate of the costs of the improvements,' including capitalized interest, incidental costs and expenses in connection therewith as set forth in Exhibit 1 attached hereto. 3r7 City of.Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page ii Part III This part consists of a proposed assessment of the total amount of the costs and expenses of the proposed improvements upon the several subdivisions of land within the Assessment District, in proportion to the estimated special benefits to be received by such subdivisions from said improvements, as set forth upon the assessment roll filed herewith and made a part hereof. Part IV This part contains the proposed maximum annual administrative assessment to be levied upon each subdivision or parcel of land within the Assessment District to pay the costs incurred by the City of Carlsbad, and not otherwise reimbursed, resulting from the administration and collection of assessments or from the administration and registration of any associated bonds and reserve or other related funds. Part V This part contains a map showing the boundaries of the Assessment District, and a diagram showing the Assessment District, the boundaries and the dimensions of the subdivisions of land within said Assessment District, as the same existed at the time of the passage of the Resolution of Intention, is filed herewith and made a part hereof, and a part of the Assessment District Report. Part VI This part consists of a detailed description of the improvements to be funded by the Assessment District and a right-of-way certificate certifying the status of the right-of-way accepted or to be accepted by the City of Carlsbad. This Report does not purport to contain all the terms associated with the acquisition, construction and financing of the improvements in the Assessment District. Some of the terms associated with the acquisition, construction and financing of the improvements in the Assessment District are set forth in an agreement dated January 21, 2003, between the City of Carlsbad and Lennar Bressi Ranch Venture, LLC, a California limited liability company, and Real Estate Collateral Management Company, a Delaware corporation, as it may be amended from time to time (the "Acquisition / Financing Agreement") (see Appendix B). To the extent that there are inconsistencies between the terms in the Acquisition / Financing Agreement and the terms in this Report, the terms in this Report shall prevail. City of Caiisbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page iii This Report is submitted on the '7-'? day of _fr14h' 200 ASSESSMENT ENGINEER CITY OF CARLSBAD COUNTY OF SAN DIEGO STATE OF CALIFORNIA Preliminary approval by the CITY COUNCIL of the CITY OF CARLSBAD, SAN DIEGO COUNTY, CALIFORNIA, on the /7 day of• ____________________ 200k. tbRAINE M. WOOD, CITY CLERK c117f OF CARLSBAD STATE OF CALIFORNIA Final approval by the CITY COUNCIL of the CITY OF CARLSBAD, SAN DIEGO COUNTY, CALIFORNIA, on the 1-IN day of A-14 / 2Q04 IXYRRAINE M. WOOD, CITY CLERK CITY OF CIRLSBAD STATE OF/CALIFORNIA City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 1 Part I Plans and Specifications The plans and specifications for the improvements to be constructed and/or acquired which generally include grading, roadway, utility relocation, landscape and irrigation, storm drainage facilities, domestic potable water system, recycled water system, sewer system, dry utilities and other ancillary imprOvements for the area described as Assessment District 2002-01 (Poinsettia Lane East) are referenced herein and incorporated as if attached and a part of this Report. Said plans include: Poinsettia Lane from El Camino Real easterly to connect to the existing terminus of Poinsettia Lane at the westerly boundary of Rancho Carrillo including transition pavement lanes and appurtenances on El Camino Real as shown on Drawing No. 397-21-1, consisting of 24 sheets, Drawing No. 397-21, consisting of 71 sheets, Drawing No. 397-2J, consisting of 11 sheets, and Drawing No. 397-2K, consisting of 36 sheets. El Fuerte Street from Palomar Airport Road southerly to connect to the existing terminus of El Fuerte Street at the southerly boundary of Bressi Ranch as shown on Drawing No. 400-8E,, consisting of 23 sheets, and Drawing No. 400- 8F, consisting of 19 sheets. Widening of the east side of El Camino Real from Palomar Airport Road to the southerly boundary of Bressi Ranch as shown on Drawing No. 400-8G, consisting of 16 sheets, (Bressi Ranch portion). Widening of the east side of El Camino Real from the southerly boundary of Bressi Ranch southerly as shown on Drawing No. 397-2R, consisting of 7 sheets, (Greens portion). The plans and specifications for the improvements are on file in the office of the Superintendent of Streets/City Engineer. Prior to acquiring the improvements, as- built drawings will be reviewed for consistency with the plans upon which this report was based. Exhibits of facilities showing the general location of the improvements to be constructed and/or acquired by the Assessment District are included in Appendix H of this Report and described in Part VI, Description of Improvements, of this Report. All improvements to be acquired shall be constructed in accordance with the standards of the City of Carlsbad, Carlsbad Municipal Water District and other agencies as appropriate. The payment of the purchase price for the acquisition of any improvement will be governed by the terms and conditions of that certain Acquisition/Financing Agreement dated as of January 21, 2003, amongst the City, Prepared by Galen N. Peterson March 29, 2004 qo City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 2 Lennar Bressi Ranch Venture, LLC, and Real Estate Collateral Management Company (collectively as the "Developers") The proposed improvements include: Roadway Improvements. The construction and/or acquisition of roadways generally consisting of the grading and paving of streets, installation of driveways, curbs, gutters, sidewalks, medians, parkways, streetlights and conduits, signing and striping, storm drain, planting, mitigation easement acquisition, environmental mitigation, landscape and irrigation of medians, parkways, and adjacent slopes, traffic control and utility relocation including relocation of sewer mains and other utilities impacted by the grading and other appurtenant improvements. Domestic Water improvements. The construction and/or acquisition of a backbone domestic water distribution system within the public right-of-way including: hydrants, pressure reducing station and other appurtenances necessary to serve the Assessment District area. Sewer Improvements. The construction and/or acquisition of sewer mains, manholes, and appurtenances within the public right-of-way to serve the Assessment District area. Recycled Water Improvements. The construction and/or acquisition of a recycled water distribution system, and appurtenances for an irrigation system within the public right-of-way to provide irrigation water to (i) medians, parkways, and adjacent roadway slopes (in and adjacent to the public streets and public easements) (ii) landscaped slopes and pocket parks within the home owners association open space areas (iii) landscaped areas of the public park (iv) landscaped areas of the school (v) landscaped areas of the private school and (vi) landscaped areas of the industrial section. Dry Utility Improvements. The construction and/or acquisition of dry utilities which are non-refundable or non-reimbursable by the utility agency and which are located within the right-of-way in an amount which does not exceed five percent (5%) of the amount of the bond issue. Such 5% limit includes a proportionate share of the Costs of Formation and Issuance, Capitalized Interest, Bond Discount and Bond Reserve, all as identified in Exhibit 1 below. The above improvements are more specifically described in Part VI of this Report. Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 3 Part II Cost Estimates The following table provides a summary of costs for constructing and/or acquiring the improvements as identified in the description of improvements found in Part VI. The Estimate of Costs includes construction costs, mitigation costs, design costs, administration costs, incidentals expenses, financing costs, developer contributions and the total amount to be assessed. Details of the costs provided by Lenrtar Bressi Ranch Venture, LLC, and Real Estate Collateral Management Company (the "Developers") are shown in Appendix E, Detailed Cost Information. The cost estimate divides Poinsettia Lane into two segments. Segment I is from El Camino Real easterly to the boundary of the Greens development and the Bressi Ranch development (Greens portion) and also includes transition pavement lanes and appurtenances on El Camino Real. Segment 2 is from the boundary of the Greens development and the Bressi Ranch development easterly to connect to the existing terminus of Poinsettia Lane at the westerly boundary of the Rancho Carrillo development (Bressi Ranch portion). The cost estimate also divides El Camino Real into two segments. El Camino Real (Bressi Ranch portion) is from Palomar Airport Road southerly to the boundary of the Bressi Ranch development. El Camino Real (Greens portion) includes three reaches from the boundary of the Bressi Ranch development and the Greens development southerly to Poinsettia Lane and also includes transition pavement lanes and appurtenances on El Camino Real. See Exhibit I, on the following page, for a summary of the cost estimate. Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East)_ - Page 4 EXHIBIT 1 CITY OF CARLSBAD ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) COST ESTIMATES Preliminary Confirmed Assessment Assessment 1. Construction Cost of Improvements (See Table 5, Appendix "F') (1) Poinsettia Lane, Segment 1. (Greens portion) $ 14,062,920.84 $14,062,920.84 Poinsettia Lane, Segment 2 (Bressi Ranch portion) $ 6,689,936.63 $ 6,689,936.63 El Fuerte Street $ 11,241,194.77 $11,241,194.77 El Camino Real (Bressi Ranch portion) $ 1,280,881.65 $ 1,280,881.65 El Camino Real (Greens portion) $ 1,720,357.34 $ 1,720,357.34 Subtotal of Construction $ 34,995,291.23 $34,995,291.23 2. Land & Right-of-Way (included in item 1) $ - $ - 3. Cost of Formation and Issuance City Administration $ 100,000.00 $ 100,000.00 Assessment Engineering $ 65,000.00 $ 85,000.00 Audit of Acquisition Costs $ 70,000.00 $ 80,000.00 Bond Counsel $ 65,000.00 $ 84,000.00 Appraisal $ 40,000.00 $ 50,000.00 1. Absorption Consultant $ 25,000.00 $ 14,000.00 Financial Advisor $ 50,000.00 $ 42,135.00 Official Statement/Bond Printing $ 30,000.00 $ 20,000.00 Fiscal/Paying Agent $ 15,000.00 $ 1,200.00 City's Disclosure Counsel . $ 35,000.00 $ 24,000.00 First 2 years additional Annual Administration Cost $ 40,000.00 $ 15,000.00 Contingency for both cost of issuance and construction $ 753,417.00 $ 773,082.00 Total Incidentals $ 1,288,417.00 $ 1,288,417.00 SUBTOTAL $ 36,283,708.23 $36,283,708.23. Less General Benefit Contributions (subtracted within item 1) $ - $ - Less Special Benefit Contributions for public, non-profit and HOA parcels (2) $ (1,930,891.12) $ (1,930,891.12) SUBTOTAL $ 34,352,817.11 $34,352,817.11 Less Interest Earned $ - $ - Capitalized Interest (lyr @ 7% interest) $ 2,923,644.01 $ 2,923,644.01 Financing Costs Bond Discount (1.75%) Bond Reserve (9%) Notes: Net of.General Benefit Contributions Includes contributions for public, non-profit, HOA parcels, Assessment No. 33 and a portion of No. 22 (for daycare) $ 730,911.00 $ 730,911.00 1 3,758,970.85 1..758,970.85 GRAND TOTAL $41,766,342.97 $41,766,342.97 Prepared by Galen N. Peterson . March 29, 2004 4 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 5 Part Ill Assessment Roll and Method of Assessment Spread On February 17, 2004 the City Council of the City Of Carlsbad, State of California, did, pursuant to the provisions of the Municipal Improvement Act of 1913, (Division 12 of the Streets and Highways Code of the State of California), Article XIUD of the Constitution of the State of California, and the Proposition 218 Omnibus Implementation Act (Section 53750 and following of the Government Code) (collectively, the "Assessment Law"), and in accordance with City of Carlsbad Policy 33, adopt its Resolution of Intention No. 2004-057, for acquisition or construction of certain public improvements, together with appurtenances and appurtenant work in connection therewith, in a special assessment district known and designated as: ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) (hereinafter referred to as the "Assessment District"); and WHEREAS, said Resolution of Intention, as required by the Assessment Law, did direct the Assessment Engineer to make and file a "Report", consisting of the following as required by Section 10204 of the Act: Plans and specifications for the improvements proposed to be acquired or constructed in sufficient detail to show or describe the general nature, location and extent of the improvements; A general description of the improvements proposed to be acquired and any property necessaryor convenient for the operation of such improvements; An estimate of the cost of the improvements and the costs of lands, right-of- way, easements, and incidental expense in connection with the improvements; Assessment Diagram showing the Assessment District exterior boundaries, the boundaries of any benefit areas within the district and the lines and dimensions of each parcel within the district and the benefit areas therein existing at the time of the adoption of the resolution of Intention; A proposed assessment of the costs and expenses of the improvements levied upon the parcels within the boundaries of the Assessment District in proportion to the estimated special benefits to be received by each subdivision of property from the improvements; Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad -.Assessment District No. 2002-01 (Poinsettia Lane East) Page 6 The proposed maximum annual assessment to be levied upon each subdivision or parcel of land within the Assessment District specially benefiting from the improvements and for which the assessment is unpaid to pay the costs incurred by the City and not otherwise reimbursed resulting from the administration and collection of assessments or from the administration and registration of any associated bonds and reserve or other related funds. For particulars, reference is made to the Resolution of Intention as previously adopted a copy of which is included in Appendix "A" of this Report. NOW, THEREFORE, I, GALEN N. PETERSON, pursuant tothe Assessment Law, do hereby submit the following: Pursuant to the provisions of Assessment Law and the Resolution of Intention, I have assessed the costs and expenses of the acquisition or construction of the improvements upon the parcels of land in the Assessment District specially benefited thereby in direct proportion and relation to the estimated special benefits to be received-by each of said parcels from the improvements. For particulars as to the identification of said parcels, reference is, made to the Assessment Diagram, a copy of which is attached hereto. As required by Assessment Law, a Diagram is attached, showing the Assessment District and the benefit areas therein, as well as the boundaries and dimensions of the respective parcels and subdivisions of land within said District and the benefit areas therein as the same existed at the time of the passage of said Resolution of Intention, each of which subdivisions of land or parcels or lots respectively have been given a separate number upon said Diagram and in said Assessment Roll. The subdivisions and parcels of land, the numbers therein as shown on the respective Assessment Diagram as attached hereto, correspond with the numbers as appearing on the Assessment Roll as contained herein. NOTICE IS HEREBY GIVEN that bonds will be issued in accordance with Division 10 of the Streets and Highways Code of the State of California (the "Improvement Bond Act of 1915"), to represent all unpaid assessments, which bonds shall be issued not to exceed the legal maximum term as authorized by law, i.e., THIRTY-NINE (39) YEARS from the 2nd day of September of the next succeeding twelve (12) months from the date of the bonds. Said bonds shall bear interest at a rate not to exceed the current legal maximum rate of 12% per annum. Prepared by Galen N. Peterson March 29, 2004 45 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 7 5. By virtue of the authority contained in the Assessment Law and by further direction and order of the legislative body, I hereby recommend the following Assessment to cover the costs and expenses of the acquisition or construction of the improvements for the Assessment District based on the costs and expenses as set forth below: As Preliminarily As Finally Approved Approved and Confirmed Construction and Incidental Costs less $34,995,291.23 $34,995,291.23 General Benefit (1) Formation and Issuance Expenses 1,288,417.00 1,288,417.00 Less Special Benefit Contributions (1,930,891.12) (1,930,891.12) Less Interest Earned Capitalized Interest and Financing Costs 7,413,525.86 7,413,525.86 Total Assessment (2) $ 41,766,342.97 $ 41,766,342.97 Subtotal Benefit Area No. 1(2) $ 29,417,441.97 $ 29,417,441.97 Subtotal Benefit Area No. 2(2) $ 12,348,901.00 $12,348,901.00 Total Assessment (2) $ 41,766,342.97 $ 41,766,342.97 For particulars as to the individual assessments and their descriptions, reference is made to Exhibits 2 and A attached hereto. The general benefit not assessed is associated with a portion of Poinsettia Lane and El Fuerte as discussed in Exhibit A. An amount equal to such general benefit will be contributed by the developers as a deduction from the purchase price for improvements to be acquired and not reimbursed from bond proceeds. Included in the total assessment are projected individual assessments representing the special benefit from the improvements to be conferred on public parcels (such as the school and park), non-profit organizations (such as open space parcels) and home owner association parcels to be created by the future subdivision of the existing parcels within the Assessment District. Assessments apportioned to such parcels upon the creation thereof will be contributed by the developers either as a deduction from the purchase price for improvements to be acquired and not reimbursed from bond proceeds or, if the purchase price for all improvements has been paid at the time of creation of any such parcel, by a cash contribution equal to the amount necessary to pay off any such assessment. Prepared by Galen N. Peterson March 29, 2004 q V City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 8 Summary of Developer Contributions to Off-Set General Benefit and Special Benefit Assessments General Benefit Poinsettia Lane - Segment 1, Street Improvements Poinsettia Lane - Segment 2, Street Improvements El Fuerte - Street Improvements Total General Benefit Bressi La Costa Ranch Greens (Benefit (Benefit Area No. 1) Area No. 2) Total $ 219,539.28 $ 193,460.72 $ 413,000.00 $ 92,493.55 $ 81,506.45 $ 174,000.00 $ 381,360.00 $ - $ 381,360.00 $ 693,392.82 $ 274,967.18 $ 968,360.00 Special Benefit - Parcels Owned by Public Agencies, Non-Profit Organizations and Home Owners Association (1) City Park $ - $ 460,797.79 $ 460,797.79 Open Space $ 48,567.87 $ 26,635.11 $ 75,202.98 Home Owners Association (HOA) - 20,140.16 $ 20,140.16 Total Special Benefit (1) $ 48,567.87 $ 507,573.06 $ 556,140.93 Total Developer Contributions (1) $ 741,960.69 $ 782,540.24 $ 1,524,500.93 Notes: (1) Additional future parcels which will be owned by Public Agencies, Non-Profit Organizations or Home Owners Associations are identified in Appendix F and the special benefits of these parcels will be apportioned at the time of subsequent subdivision of existing parcels. The assessments for these future parcels will be contributed by the developers either as a deduction from the purchase price for improvements to be acquired and not reimbursed from bond proceeds or, if the purchase price for all improvements has been paid at the time of creation of any such parcel, by a cash contribution equal to the amount necessary to pay off any such assessment, 6. The Method and Formula of Spread of Assessment is as set forth in Exhibit "A", which is attached hereto, referenced and so incorporated Prepared by Galen N. Peterson March 29, 2004 L7 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 9 Exhibit 2 Assessment Roll Assessment Land Use As Preliminarily As Finally Number Approved Approved and Confirmed 1 Planned Industrial $ 133,110.09 $ 133,110.09 2 Planned Industrial $ 1,487,685.30 $ 1487685.30 3 Planned Industrial $ 2,832,724.07 $ 2,832,724.07 4 Planned Industrial $ 2,619,254.43 $ 2,619254.43 5 Planned Industrial $ 1,741,701.50 $ 1,741,701.50 6 Single Family Development $ 2,493,790.47 $ 2,493,790.47 7 Single Family Development $ 1,526,810.49 . $ 1,526,810.49 8 Single Family Development $ 2,417,449.94 $ 2,417,449.94 9 Single Family Development & HOA $ 1,802,430.14 $ 1,802,430.14 10 Single Family Development & HOA $ 2,155,046.02 $ 2,155,046.02 11 Single Family Development $ 815,981.03 $ 815,981.03 12 Single Family Development & HOA $ 2,319,874.24 $ 2,319,874.24 13 Church, Day Care & School $ 1,250,040.16 $ 1,250,040.16 14 Planned Industrial $ 74,691.03 $ 74,691,03 15 Retail, Office, Muhifamily, Assisted Living, Boys & Girls Club and open space $ 5,746,653.07 $ 5,746,853.07 16 Open Space (OS) . $ - $ - 17 OS (Assm'nt Contributed by Developer) $ . $ 18 Open Space (OS) $ . $ - 19 Open Space (OS) $ - $ - 20 Open Space (OS) $ - $ - 21 Open Space (OS) $ - $ - 22 Industrial/Business Park. Church, Day Care and Townhomes/Single Family Dev $ 1,127,846.77 $ 1,127,846.77 23 Open Space (OS) $ $ - 24 Park (Assm'nt Contributed by Developer) $ - $ 25 Single Family Development & School $ 3,053,281.02 $ 3053,281.02 26 Single Family Development $ 2,357,989.35 $ 2,357,989.35 27 Open Space (OS) $ - $ 28 HOA (Assm'nt Contributed by Developer) $ - $ - 29 Single Family Development ' $ 2,746,861.05 $ 2,746,861.05 30 Open Space (OS) $ - $ 31 Single Family Development $ 512,367.86 $ 512,367.86 32 HOA (Assm'nt Contributed by Developer) $ - $ - 33 Multifamily (Affordable) (Assm'nt Contributed by Developer) $ - $ - 34 Townhome/Single Family Dev $ 2,550,554.95 $ 2,550,554.95 35 Open Space (OS) $ - $ - 36 Open Space (OS) $ - $ - 37 HOA (Assm'nt Contributed by Developer) $ - $ - 38 Open Space (OS) $ - $ - 39 OS (Assm'nt Contributed by Developer) . $ - $ - Total $ 41,766,342.97 $ 41,766,342.97 Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad —Assessment District No. 2002-01 (Poinsettia Lane East) Page 10 EXHIBIT A METHOD AND FORMULA OF ASSESSMENT SPREAD Since the improvements are to be funded by the levying of assessments, the Assessment Law requires that assessments be based on the special benefit that the properties receive from the improvements. In addition, the Assessment Law provides that a parcel's assessment may not exceed the reasonable. cost of the proportional special benefit conferred on that parcel. Further, only special benefits are assessable and the local agency levying the assessment must separate the general benefits from the special benefits. All publicly owned property must be assessed if it specially benefits from the improvements. The Assessment Law does not specify the method or formula that should be used to apportion the costs to properties in any special assessment district proceedings. The responsibility for recommending an apportionment of the costs to properties, which specially benefit from the improvements rests with the Assessment Engineer, who is appointed for the purpose of making an analysis of the facts and determining the correct apportionment of the assessment obligation. In order to apportion the assessments to each parcel in direct proportion with the special benefit which it will receive from the improvements, an in-depth analysis has been completed and is used as the basis for apportioning costs to each property within the Assessment District as explained below. Based upon an analysis of the special benefit to be received by each parcel from the improvements, the Assessment Engineer recommends the apportionment of costs as outlined herein. The final authority and action rests with the City Council after hearing all testimony and evidence presented at a public hearing, and the tabulation of the assessment ballots previously mailed to all record owners of property within the Assessment District. Upon the conclusion of the public hearing, the City Council must make the final determination whether or not the assessment spread has been made in direct proportion to the special benefits to be received by each parcel within the Assessment District. Assessment ballot tabulation will be finalized at that time and, if a majority of the assessment ballots received prior to the close of the public hearing weighted by assessment amount are not opposed to the levy of the assessments, then the City Council may confirm the levy of the assessments. The following sections define and explain the special benefits and general benefits, and set forth the methodology used to apportion the costs of the improvements providing special benefits to each parcel, and confirm that the assessments are reasonable and justified. The Method of Apportionment The Assessment District improvements have been assigned into six benefit components; roadway, potable water, recycled water, sewer, dry utilities and Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 11 incidental expenses. Roadway improvement costs are spread on vehicle average daily trip (ADT) generation. Potable water, sewer and dry utility costs are spread on an equivalent dwelling unit (EDU) basis. Recycled water costs are spread to the roadway and specific parcels based on the amount of recycled water used for the irrigation of each roadway and specific parcel. The incidental expenses have been based on either the actual cost to each component of the improvements or if the incidental costs apply to all such components then to the prorated construction cost of each such component. Because some of the assessor parcel boundaries do not coincide with the Village Planning Areas or Neighborhoods, some initial assessments will be placed in aggregate on multiple assessor parcels until final maps are recorded and the new assessor parcels coincide with the Village Planning Areas or Neighborhoods as applicable. The procedure of identifying and apportioning special benefit to the land uses and parcels has been organized as follows: A. Identification of Benefit Components A-I Backbone Roadway Improvement Components A-2 Backbone Potable Water and Sewer Improvement Components A-3 Backbone Recycled Water Improvement Components A-4 Backbone Dry Utilities Improvement Components A-5 Incidental Expenses Components B. Special Benefits C. General Benefits D. Proportioning Special Benefits D-1 Land Use Categories D-2 Proportionate Special Benefit of Roadway Improvements D-3 Proportionate Special Benefit of Utility Improvements D-4 Proportioning Formation, Issuance and Financing Costs Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 12 E. Proclamations E-1 Assessments Equal to or Less Than the Proportional Special Benefits E-2 Reasonableness and Justification of Assessments E-3 Future Apportionment A. IDENTIFICATION OF BENEFIT COMPONENTS The improvements to be acquired or constructed by the City from the proceeds of bonds issued for each benefit area of the Assessment District are necessary for development of the Assessment District parcels and are required by the Villages of La Costa (The Greens) and by the Bressi Ranch Master Plans and the conditions of development as set forth in the land use entitlements approved by the City for each benefit area. Without the improvements, the parcels within the Assessment District cannot be developed to their planned ultimate uses pursuant to such land use entitlements. It is unfeasible and impractical for the parcels to be utilized to their highest and best use without the backbone roadways and utilities that will be funded by the Assessment District. A-I Backbone Roadway Improvement Components The foremost purpose of the Assessment District is to provide financing for the backbone road access so the Assessment District parcels can be developed. The most significant and costly improvement is the work associated with the road construction. The road construction has created the need to relocate sewer mains and utilities, re-establish habitat areas, and install landscaping to protect the roadway slopes. The road construction has also created the need to construct storm drains to protect the roadway and to relocate other facilities and provide mitigation areas that would not have otherwise been necessary if the road was not constructed. The road and associated costs have been placed into one roadway improvement component for the purpose of defining the roadway costs and apportioning special benefit. A percentage of the cost of the backbone recycled water distribution system has been spread in the same manner as the roadway expenses. This portion of the recycled water system improvements will provide an irrigation water system for the roadway landscaping. The roadway improvement component includes: Poinsettia Lane, El Fuerte, El Camino Real, relocation of utilities, establishment of habitat mitigation areas, and a portion of the recycled water system to serve the roadway landscaping. Prepared by Galen N. Peterson March 29, 2004 51 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 13 A-2 Backbone Potable Water and Sewer Improvement Components Coincidental to the roadway improvements is the necessity to construct certain backbone utility improvements within the roadway right of way concurrently with construction of the roadway improvements. These improvements confer a different special benefit to the properties than the, special benefit conferred by the roadway improvements. Therefore potable water and sewer (other than relocated facilities for the roadway costs) have been separated into wet utility components for purposes of defining special benefits and allocating the costs of such components. A-3 Backbone Recycled Water Improvement Components Coincidental to the roadway improvements is the necessity to construct certain backbone recycled water improvements within the roadway right of way concurrently with construction of the roadway improvements. A percentage of these improvements confer a different special benefit to the properties than the special benefit conferred by the roadway improvements based on where the recycled water will be used. The recycled water facilities have been separated into a separate component for purposes of defining special benefits and allocating the costs of such components. A-4 Backbone Dry Utilities Improvement Components Coincidental to the roadway improvements is the necessity to construct certain backbone dry utility improvements within the roadway right of way concurrently with construction of the roadway improvements. These improvements confer a different special benefit to the properties than the special benefit conferred by the roadway improvements. Therefore the dry utilities have been separated into a separate component for purposes of defining special benefits and allocating the costs of such components. A -5 Incidental Expense Components In addition to the improvement costs, there are incidental construction administration and Assessment District formation expenses. These costs include, but are not limited to: construction administration, construction supervision, design, testing, surveying, assessment engineering, audit of acquisition costs, financial advisors, appraisals, bond counsel, underwriting, official statement printing, financing cost and establishment of a bond reserve fund. The costs of the formation of the Assessment District, including the costs of issuance, have been determined to be eligible for inclusion and are included in the Assessment District incidental costs. Some of these costs can be assigned directly to one of the benefit components as shown in Appendix "E"; Other costs that cannot be assigned directly to one of the benefit Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 14 components have been prorated to each assessment number in accordance with that assessment numbers share of the construction cost. SPECIAL BENEFITS The purpose of this Assessment District is to fund the construction and acquisition of public improvements required to serve the Assessment District parcels. Special benefit is received by each parcel within the boundaries of the Assessment District from new roadway access and the availability of utility services that are required and necessary for the properties to develop to their highest and best use in accordance with and as permitted by the approved land use entitlements. The improvements to be constructed and/or acquired by the District accommodate the planned development within the Assessment District area in accordance with the approved land use entitlements. The Villages of La Costa (The Greens) and the Bressi Ranch Specific Plan environmental documents and the Tentative Map identify the need for access and utilities, and place conditions upon the parcels within the Assessment District to provide those improvements. The Assessment District Improvements satisfy the conditions of development by providing access and backbone utilities so the projects can support their planned uses. Without the improvements, the parcels within the Assessment District could not be developed to their planned and conditionally approved uses. The special benefit conferred on the parcels within the Assessment District from the proposed improvements include: increased development potential, relief from access constraints, improved accessibility to utilities, fulfillment of development conditions and ensured investment returns. The special benefit to each parcel is such that the parcels will be allowed to gain access to a public street network and have water, sewer, recycled water and dry utilities readily available, thereby allowing them to develop to their highest potential. Special benefit accrues to each parcel to be subdivided and served by the improvements to be constructed. Since some of the areas within the Assessment District have not been subdivided into individual lots at this time, the assessments will be placed in aggregate on one or more existing assessor parcels and apportionment of the assessments will take place as final maps record. GENERAL BENEFITS Some public improvements will confer general benefit to properties or the public at large outside the Assessment District. In making an analysis, a review was conducted of the surrounding areas. The review resulted in identifying general benefits that accrued to properties outside the Assessment District. Prepared by Galen N. Peterson March 29, 2004 53 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 15 Poinsettia Lane is designated as a prime arterial roadway. Previously, Poinsettia Lane did not exist east of El Camino Real. Four lanes are proposed to be constructed. Two lanes are required to serve the estimated volume of traffic generated by the Assessment District parcels. Two center lanes (one in each direction) are required for through traffic originating outside of the Assessment District. The costs associated with the construction and placement of the asphalt and base for the two center lanes have been determined to be a general benefit and will not be assessed to parcels within the Assessment District. El Fuerte Street is designated as a secondary arterial roadway and will be constructed from Palomar Airport Road south to connect to the existing terminus of El Fuerte Street at the southerly boundary of Bressi Ranch. Four lanes are proposed to be constructed. Two lanes are required to serve the estimated volume of traffic generated by the Assessment District parcels. Two center lanes (one in each direction) are required for through traffic originating outside of the Assessment District. The costs associated with the construction and placement of the asphalt and base for the two center lanes have been determined to be a general benefit and will not be assessed to parcels within the Assessment District. Based on the estimated roadway construction costs, the cost of the roadway base and asphalt pavement to provide the two center lanes for both Poinsettia Lane and El Fuerte Street is approximately $968,360. The grading beneath the two center lanes of each roadway benefits the Assessment District because it provides lateral support to the Assessment District paved lanes. This grading can not be eliminated from the overall roadway grading without constructing retaining walls that would unreasonably increase the Assessment District cost. Therefore all of the Poinsettia Lane and El Fuerte Street grading provides special benefit to the Assessment District Properties. D. PROPORTIONING SPECIAL BENEFITS D-1 Land Use Categories The following land use categories are included in the Assessment District: planned industrial, business park, community retail, office, single-family detached and single-family attached residential, apartments (affordable housing), assisted living, daycare center, boys and girls club, church, school, home owners association recreation areas, park and open space. Except for the irrigated areas in Assessment Numbers 17 and 39 (Village Green OS-2 and open space lot 34), the non-active and undeveloped open space areas do not receive special benefit from the works of improvements and will not be assessed. Open space areas are those areas that are deeded or perpetually designated in easements. Prepared by Galen N. Peterson March 29, 2004 6q City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 16 D-2 Proportionate Special Benefit of Roadway Improvements Trip Generation Factors for Roadway Improvements The use of and need for roadway improvements is a function of the number of vehicle trips per day generated by the use of the land served by the streets. Traffic engineers have developed traffic generation factors, which are related to development density and type of land use. Therefore, trip generation is an appropriate basis for apportioning roadway improvements and related costs among the specially benefited parcels. The trip generation factors will be estimated from the July 1998 SANDAG Trip Generation Manual and weighted as explained below. SANDAG categorizes trips as primary, diverted and pass-by. This analysis uses only the primary trip percentages for the non-residential land use categories to avoid double counting of the residential trips. Single Family Detached Trip Generation The Average Daily Trips (ADT) per detached single-family dwelling is 10 ADT. The Assessment District single-family dwelling product types are similar to the SANDAG study areas. Single Family Attached Trip Generation The Average Daily Trips per attached dwelling unit or for a condominium unit is 8 ADT. Affordable Housing (Bressi Ranch) Trip Generation The Average Daily Trips for each affordable housing unit, based on the formula in footnote R of the 1998 SANDAG Trip Generation Manual, is 6.4ADT (-2,169 Ln(100 units/5.13ac) + 12.85). Apartment Affordable Housing (Greens) Trip Generation The Average Daily Trips for each affordable housing unit, based on the 1998 SANDAG Trip Generation Manual for apartments, is ADT. Assisted Living Trip Generation The Average Daily Trips for each assisted living room, based on 1998 SANDAG Trip Generation Manual for congregate care facility, is 2 ADT. Industrial Trip Generation The Average Daily Trips for industrial park is 80 ADT per net acre. The primary trip percentage for industrial park is 79%. Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 17 Community Retail Trip Generation The Average Daily Trips for commercial shops - specialty retail/strip commercial is 40 ADT per 1,000 square feet. The primary trip percentage for this land use is 45%. Office Trip Generation The Average Daily Trips for corporate headquarters office is 7 ADT per 1,000 square feet. The primary trip percentage for this land use is 82%. School Trip Generation The Average Daily Trips for an elementary school is 60 ADT per net acre. The primary trip percentage for an elementary school site is 57%. Church Trip Generation The Average Daily Trips for a church is 30 ADT per net acre. The primary trip percentage for a church site is 64%. Day Care Trip Generation The Average Daily Trips rates for day care use is 80 ADT per 1,000 square feet. The Floor Area Ratio for the day care sites is estimated at 0.1 of building per net land area. Therefore, the 80 ADT per 1,000 square feet is equivalent to apprbximately 348 ADT per net acre (80 times 43,560/1,000 times 0.1). The primary trip percentage for a day care is 28%. Boys & Girls Club Trip Generation The Average Daily Trips for a multi-pUrpose recreational facility is 90 ADT per net acre. The primary trip percentage for this land use is 52%. Home Owners Association Recreation Areas Trip Generation The Average Daily Trips generation for the home owner's association (HOA) recreation areas, which is equivalent to a neighborhood park, is.5 ADT per net acre. In order to avoid double counting the residential trips, the primary trip percentage used for external trips is 25%. The HOA lots 47, 48 and 49 within Benefit Area No. 2 were assigned 10, 2.8 and 1.9 ADT per site, respectively. The three HOA areas in Planning Areas 9, 10 and 12 and the Village Green area (OS-2) within Benefit Area No. I were assigned 13.9 ADT. The Village Square area in Planning Area 15 within Benefit Area No. I was assigned 2.5 ADT. Park Trip Generation The Average Daily Trips generation for a regional park is 20 ADT per net acre. The primary trip percentage for a regional park is 66%. Prepared by Galen N. Peterson March 29, 2004 5~ City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 18 Weighted Benefit by Land Use for Roadway Improvements The geographic concentration and placement of major land uses (residential, commercial retail and office, and industrial) within the Assessment District boundaries indicates that their impact on, hence their special benefits from, the roadway improvements are not uniform and should be weighted. The results of a study performed by Urban Systems, Inc. shown at the end of Appendix "F" indicates that the relative weighting for industrial and commercial land use compared to residential land uses on each roadway improvements is as follows: Road Relative Benefit Industrial Commercial Residential and Other Poinsettia Lane 0.4 0.7 1.0 El Fuerte 0.2 0.8 1.0 El Camino Real 0.6 0.5 1.0 These weights were applied to the ADT generation factors discussed above in order to arrive at an allocable share for each of the three roadway improvement costs. The costs for each of the roadway improvements were allocated only to the assessment numbers that specially benefit from such roadway improvements as set forth below: Poinsettia Lane - Poinsettia Lane roadway costs specially benefit all assessment numbers in the Assessment District. Therefore, Poinsettia Lane roadway costs were allocated to all assessment numbers based on the ADT generation factors and weighting applicable to Poinsettia Lane. El Fuerte - El Füerte roadway costs specially benefit only assessment numbers I through 21. Therefore, El Fuerte roadway costs were allocated only to assessment numbers 1 through 21 based on the ADT generation factors and weighting applicable to El Fuerte. El Camino Real (Bressi Ranch portion) - El Camino Real (Bressi Ranch portion) roadway costs specially benefit only assessment numbers 1 through 21. Therefore, El Camino Real (Bressi Ranch portion) roadway costs were allocated only to assessment numbers I through 21 based on the ADT generation factors and weighting applicable to El Camino Real (Bressi Ranch portion). El Camino Real (Greens portion) - El Camino Real (Greens portion) roadway costs specially benefit only assessment numbers 22 through 39. Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 19 Therefore, El Camino Real (Greens portion) roadway costs were allocated only to assessment numbers 22 through 39 based on the ADT generation factors and weighting applicable to El Camino Real (Greens portion). D-3 Proportionate Special Benefit of Utility Improvements The most pertinent and reasonable utility improvement special benefit variable is average daily demand. The detached single family home will be the basic equivalence for measuring demand to other land use categories. Potable Water and Sewer Water and sewer demand was obtained from the 2002 update of the City of Carlsbad Water Master Plan. A summary of the water and sewer usage is shown below: Land Use Potable Water and Sewer Usage Single Family Detached 550 gallons I day Single Family Attached 250 gallons / day Non Residential 2,300 gallons /10,000 SF /day A single family detached unit has been assigned an equivalent dwelling unit (EDU) weight of 1.0 EDU. By converting the gallons per day to EDU we arrive at the following table: Land Use Potable Water and Sewer EDU Single Family Detached 1.0 EDU I Unit Single Family Attached 0.5 EDU / Unit Non Residential 4.2 EDU /10,000 SF The City of Carlsbad Water Master Plan estimates water demand for park as 2.5 acre-foot per acre per year. This translates to 2,230 gallons per acre per day (2.5 x 43,560 x 7.48/365). Potable water demand for park is estimated as 10% of the demand for recycled water for irrigation, resulting in 0.4 EDU per acre (0.1 x 2,230/550) of parkland. Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 20 Homeowner association (HOA) lots water usage was estimated based on the characteristics of the parcels and their expected land use. The HOA lots 47, 48 and 49 within Benefit Area No. 2 were assigned 2.41, 2.08 and 1.43 EDU per site, respectively. The three HOA areas in Planning Areas 9, 10 and 12 and the Village Green area (OS-2) within Benefit Area No. I were assigned 3.8 EDU. The Village Square area in Planning Area 15 within Benefit Area No. I was assigned 1.0 EDU. The Assessment Diagram identifies two benefit zones for sewer improvements. Sewer Zone A includes all of the Assessment District parcels that benefit from the sewer improvements. Sewer Zone B includes the remaining Assessment District parcels that do not benefit from the sewer improvements. The water and sewer costs for new facilities (sewer relocation related to the construction of the road was allocated with the street costs) related to each street segment were allocated only to the assessment numbers that specially benefit from such water and sewer costs as set forth below: Poinsettia Lane Segment I - Poinsettia Lane Segment 1 water costs specially benefit only assessment numbers 22 through 39. Therefore, Poinsettia Lane Segment I water costs were allocated only to assessment numbers 22 through 39 based on the applicable EDU factors. Poinsettia Lane Segment 2— Poinsettia Lane Segment 2 water costs specially benefit only assessment numbers I through 21. Therefore, Poinsettia Lane Segment 2 water costs were allocated only to assessment numbers I through 21 based on the applicable EDU factors. El Fuerte - El Fuerte water costs specially benefit only assessment numbers 1 through 21. Therefore, El Fuerte water costs were allocated only to assessment numbers 1 through 21 based on the applicable EDU factors. El Camino Real (Bressi Ranch portion) - El Camino Real (Bressi Ranch portion) water costs specially benefit only assessment numbers I through 21. Therefore, El Camino Real (Bressi Ranch portion) water costs were allocated only to assessment numbers 1 through 21 based on the applicable EDU factors. El Camino Real (Greens portion) - El Camino Real (Greens portion) water costs specially benefit only assessment numbers 22 through 39. Therefore, El Camino Real (Greens portion) water costs were allocated only to assessment numbers 22 through 39 based on the applicable EDU factors. Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 21 Sewer costs benefit only assessment numbers in Sewer Zone A, as shown on the Assessment Diagram. Therefore, sewer costs for each road segment were allocated to the respective assessment numbers that the water was allocated to, but only to parcels within Sewer Zone A based on the applicable EDU factors. There was no assessment for sewer costs to the assessment numbers in Sewer Zone B, as shown on the Assessment Diagram. Summary of Special Benefit Factors Roadway Improvements Utilities Land Use Category Primary Trip Adjusted ADT % Applied 1 ADT EDUs Single Family 10/DU - 10/ DU 1.0 / DU Detached Single Family 8/ DU - 8/ DU 0.5 / DU Attached Affordable Housing 6.4/DU - 6.4/DU 0.5/DU (Bressi Ranch) Apartment (Affordable 6/ DU - 6/ DU 0.5 / DU Housing) Assisted Living 2 / Room - 2 I Room 4.2 / 1 0ksf Industrial 80/AC 79% 63/AC 4.2 I 10ksf Community Retail 40/1,000 45% 18/1,000 4.2l10ksf SF SF Office 7/1,000SF 82% 6/1,000SF 4.2 /10ksf School 60 /AC 57% 34 / AC 4.2 / 10ksf Church . 30 / AC 64% 19 /AC 4.2 / I 0ksf Day Care 80/1,000 28% SF 97.4 / AC 4.2 / 10ksf Boys & Girls Club 90 / AC 52% 47/AC 4.2 / 10ksf Homeowners 5/AC 25% 1.25 / AC 4.2 / 10ksf Association Rec Areas and per site I and per site Community (Regional) Park 20/AC 66% 13/ AC 0.4 / AC 1. Primary Trips are defined by SANDAG as "one trip directly between origin and primary destination." Prepared by Galen N. Peterson March 29, 2004 1 IN City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 22 Recycled Water. The recycled water system located within the public right-of-way will provide irrigation water to (i) medians, parkways, and adjacent roadway slopes (in and adjacent to the public streets and public easements) (ii) landscaped slopes and pocket parks within the home owners association open space areas (iii) landscaped areas of the public park (iv) landscaped areas of the school (v) landscaped areas of the private school and (vi) landscaped areas of the industrial section. The recycled water system specially benefits only the six categories stated above. Therefore, the recycled water system costs were allocated only to the irrigated area of these six categories. The percentage of area in each category, determined from the total area in all six categories, was multiplied times the cost of the recycled water system to arrive at the cost to be applied to each category. The resulting recycled water system cost for the first category was added to the cost for the roadways and spread to all of the assessment numbers that specially benefit from the roadways. The resulting recycled Water system cost for the second category was spread to all of the residential units within the homeowners association that specially benefits from the open space areas. The resulting recycled water system cost for the last four categories was spread to the assessment numbers that correspond to those areas. Dry Utilities The demand for dry utilities is considered to be similar to the factors used for water and sewer as shown above. The dry utilities costs (limited by the Internal Revenue Service to five percent of the bond issue amount in order for the bonds to qualify for tax-exempt status) were allocated based on EDU factors using the same methodology and, except as noted below, the same factors as were used in allocating water costs. Due to the unique characteristics of the home owner association lots, the following dry utilities EDU factors were used for these lots: The HOA lots 47, 48 and 49 within Benefit Area No. 2 were assigned 1.5, 0.3 and 0.3 EDU per site, respectively. The three HOA areas in Planning Areas 9, 10 and 12 and the Village Green area (OS-2) within Benefit Area No. I were assigned 2.4 EDU. The Village Square area in Planning Area 15 within Benefit Area No. 1 was assigned 1.0 EDU. D-4 Proportioning Formation, Issuance and Financing Costs The costs to form this Assessment District, including the costs of issuance, have been determined to be eligible for inclusion in the Assessment District Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad -Assessment District No. 2002-01 (Poinsettia Lane East) Page 23 funding. Some of the incidental costs can be assigned directly to one of the benefit components as shown in Appendix "E". These costs that cannot be assigned directly to any one of the benefit components and therefore have been separated into a separate component for purposes of defining special benefits and allocating costs on a pro-rata basis relative to the improvement costs associated with each parcel as shown in Table .1 of Appendix F. The financing costs (bond discount and bond reserve), including capitalized interest, have also been assessed on a pro-rata basis relative to the improvement costs associated with each parcel. E. PROCLAMATIONS E-1 Assessments are equal to or less than the proportional special benefit each parcel receives The special benefit received from the Assessment District improvements exceeds the assessment allocated to each parcel. The improvements provided will increase the value of each parcel by more than the assessment levied upon it. To ensure that the assessments will be equal to or less than the proportional special benefit conferred, a review was made of similar properties in the vicinity. Comparison of recent sales records indicated that the average price per square foot of raw land increased in an amount greater than the costs of the assessments per square foot after backbone roadway and utility improvements were in place. E-2 Reasonableness and Justification of Assessments It is well known and understood by the development community that public infrastructure is required for raw land to develop to its highest and best use. After the passage of Proposition 13 and Assembly Bill 1600, developers and investors realize that they must provide the public infrastructure to support their developments without burdening existing properties. The Assessment District improvements are estimated to add 7% or more value to each parcel's overall value. A review of other developments has shown that this percentage is consistent with the costs of providing backbone access and utilities to raw land in similar developments. Therefore this Assessment levy is reasonable in relationship to the added value the improvements provide to the parcels. E-3 Future Apportionment of Special Benefit Special benefit will accrue to each parcel created by the subdivision of the property within the Assessment District. Since certain existing parcels within the Assessment District will not, at the time of formation of the Assessment District, have been subdivided into final lots, the initial assessments established at the time of formation of the Assessment District will be placed Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 24 in the aggregate on the assessors parcels existing at the time of formation of the Assessment District. An assessment levied on a parcel existing at the time of formation of the Assessment District will be apportioned among those parcels created by the subsequent subdivision of such existing parcel. Assessments apportioned to any parcel created by the subdivision of an existing parcel which is to be owned by a public agency (each, a "Public Parcel") or a non-profit 501(c)(3) organization (each, a "501(c)(3) Parcel") or a home owners association (each, an 'HOA Parcel") must be paid off in full prior to the recordation of the final subdivision map creating such Public Parcel or 501(c)(3) Parcel or HOAParcel or contributed by the Developer as a reduced purchase price for improvements to be acquired pursuant to the Acquisition/Financing Agreement. The City shall not provide to the owner or subdivider of such existing parcel a certificate as required by Government Code Section 66493(f) for any subdivision certifying that the City Council has determined that provision has been made for the segregation of the responsibility of each of the proposed new parcels for a portion of the assessment unless payment in full of the assessments apportioned to all Public Parcels, 501(c)(3) Parcels and HOA Parcels created by such subdivision has been received by the City or otherwise contributed as described above. It is the City of Carlsbad's policy that final lots that receive similar special benefit also have similar final assessments. If the future subdivision of any planning area does not yield the estimated number of dwelling units, the City reserves the right to require upon application of assessment reapportionment, that a portion of the outstanding assessment be paid by the property owners to ensure that the assessments remain consistent within and between the planning areas as further provided in the Acquisition/Financing Agreement. All reapportionments will be subject to City of Carlsbad policies and procedures. FINDINGS AND DETERMINATIONS OF ASSESSMENT ENGINEER The undersigned, Galen N. Peterson, hereby finds and determine as follows: The proportionate special benefit derived by each parcel proposed to be assessed has been determined in relationship to the entirety of the costs of the improvements to be funded from the proceeds of the bonds issued for the Assessment District and the cash collections. No assessment is proposed to be imposed on any parcel, which exceeds the reasonable cost of the proportional special benefit conferred on that parcel. Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 25 Only special benefits have been assessed. Parcels within the Assessment District that are owned or used by any agency, the State of California or the United States and which receive a special benefit from the improvements have been assessed accordingly. In conclusion, it is my opinion that the assessments for the referenced Assessment District have been spread in direct accordance with the estimated special benefits that each parcel receives from the improvements. Dated: dayof H4,414 ,2O0- 0 2: t' ~- ~ GALN R.C.E. No. 18,364 (Expires 06/2005) ASSESSMENT ENGINEER CITY OF CARLSBAD SAN DIEGO COUNTY STATE OF CALIFORNIA Prepared by Galen N. Peterson March 29, 2004 (4 City of Carlsbad - Assessment District No, 2002-01 (Poinsettia Lane East) Page 26 I, LORRAINE M. WOOD, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the / 7 '4 day of ___ / &Y CiAw 67 CITY OF CARLSBAD STATE OF CALIFORNIA I, LORRAINE M. WOOD, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was preliminarily approved by the City Council of the CITY OF CARLSBAD, CALIFORNIA, on the L7' day off 41eJA v. 2OQ4 4'9c4— CITY OF CARLSBAD STATE OF CALIFORNIA I, LORRAINE M. WOOD, CITY CLERK of the CITY OF CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, together With the Diagram attached thereto, was approved and confirmed by the City Council of said City on the 7_7I day of May 2004 CITY OF CARLSBAD STATE OF CALIFORNIA 1, GLENN PRUIM, Superintendent of Streets / City Engineer of the CITY OF CARLSBAD, CALIFORNIA do hereby certify that the foregoing Assessment, together with the Diagram attached thereto, was filed in my office on the 4.-' day of i'lAv , 2004:.. SUPERINTENDENT OF STREETS /CITY ENGINEER CITY OF CARLSBAD STATE OF CALIFORNIA Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 27 Part IV Annual Administrative Assessment A proposed maximum annual administrative assessment shall be levied on each parcel of land and subdivision of land within the Assessment District specially benefiting from the improvements and for which the assessment is unpaid to pay for necessary costs and expenses incurred by the City of Carlsbad, and not otherwise reimbursed, resulting from the administration and collection of assessments and/or from the administration or registration of any bonds and reserve or other related funds. This maximum assessment hereinafter set forth is authorized pursuant to the provisions of Section 10204(f) of the Streets and Highways Code, and said maximum assessment shall not exceed five percent (5.0%) of the annual assessment per individual assessment parcel per year. The annual administrative assessment will be collected in the same manner and in the same installments as the assessment levied to pay for the cost of the improvements. Prepared by Galen N. Peterson March 29, 2004 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 28 Part V Diagram of Assessment District Reduced copies of the Assessment Diagram are shown on the following pages. Full-size copies of the Assessment Diagram are on file in the Office of the City Clerk, of the City of Carlsbad. As required by the Assessment Law, the Assessment Diagram shows the exterior boundaries of the Assessment District and the assessment number assigned to each parcel of land corresponding to its number as it appears in the Assessment Roll contained in Part lit. The Assessor's parcel number is also shown for each parcel as they existed at the time of the passage of the Resolution of Intention and reference is hereby made to the Assessor's Parcel Maps of the County of San Diego for the boundaries and dimensions of each parcel of land. Prepared by Galen N. Peterson March 29, 2004 ASSESSMENT DIAGRAM OF ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) OF THE On OF CASBAD CO1iflY OF SAN DEW, STATE OF CALFORNIA LEGEND -50 ASSSMEMT DISThCT BOuNDARY R100'-Of-WAY (BO 90'JNDARY OF ASAENT NUNB(R AND PARCIL UNES F0LDE or OFFICE (FrNE CITY aLRo(F7wor,(FcN0AD __________ 2_. OTT abw or lIt DIV (F CAP4.AD VICINFIY MAP NOT TO SCALE — BOUNDARY OF AD 2002-07 (POINSErDA LANE EAST) 05 ~!41*1? 41" `~ 11 0 500 1000 2000 INDEX MAP APN/CAL NOT TO SCALE SCALE' / SCALE P PRa uLrirs wrrDCor R&ISM • somommoutL * • P1150 c mE75 55 4750 DATE 701 8 Soi, Solo 800, S. Di., CA 92101 rPlsSll7A 57510015 03/5I/2104 - 619.535-6411 FAX 619234-O549 REFEREWCE THE SAN DIEGO COUNTY ASSESSOR MAPS FOR A DETAILED DESCR/P77OW OF PARCEL LINES AND DiMENSIONS, SHEET I OF 3 SHEETS Pt 0WCF IF lIt 9J,0'l(lDtC7(T (F smElls IF Pt () OTT (F CF&AD m DAY IF _______ BENBIT AREA NO.1 100 &wlRwmNcAwr Of 5701175 Cr at Q7y or SEET 2 SHEET 3 88'EFIT AA AN *r WAS LEWO BY nt art COEMICI CF nt an' Cr NO. 2 CARt 01AD 00 lIt 0015 PWIFS NC PAROIS (F LAM) S(OMI 00 lIPS ASSSPtNT ISA (NAt SAC ASCSOCJAT WAS LEWD 00 lIt _________ 201., SOD 4V0TLPA(FAMAIPS • Pt ASSEMOEW P701 PElt RECOM IA Pt OWCE Or W N.AP........ StPEWDOW IF 5707070 IF £070 alt (F CAQLDAAO 00 101 DAY CIF ______ 270..,R0'OWAPIFISMAIF 70 Pt ASIFT AOL REEDAIFO IA Pt 0'7 (F Pt 9p00 Cr 5715 FOR NE EXACT WOW, (F El A T (1010 ACAPJST - EAOI PARCEL (F LAM) 90M) 00 lIPS A9LYT DIP DISM I 44 CITY am Cr THE airy (F CARE AD I ,'V NAP I1 1110 lIPS DAY Or __________ 210,. AT WE NOW (F _0 _A DO Way - (F WARS (F A0Y AND MMTT IALV7FS DIS?mE1S Ar PAIZ........_ AS 005ltdhC47 MR.....,.... DO 701 Wa IF Pt cupvry 01100700 IF 701 100IV IF SO Ct10 STAlE Or C411U cWi7Y RECOW (F Pt IWTT (FSPIP LWIC TEl' LTJ :(@ 7D OAF V rYriA: EN City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 32 Part VI A. Description of Improvements The Assessment Law provides for the legislative body of any municipality to finance certain capital facilities and services within or along its streets or any public way or easement. The following is a list of proposed improvements as allowed under the Assessment Law to be acquired, installed, maintained, repaired or improved under the provisions of the Assessment Law. For the general location of the improvements to be acquired referenced is hereby made to the Plans and Specifications described in Part I of this report and the exhibits of improvements in Appendix H of this report. The proposed improvements include the following: Poinsettia Lane from El Camino Real easterly to connect to the existing terminus of Poinsettia Lane at the westerly boundary of Rancho Carrillo including transition pavement lanes and appurtenances on El Camino Real as shown on Drawing Nos. 397- 2H, 397-21, 397-2J and 397-2K. Full width grading to major arterial standards (but not to include grading outside of the right-of-way in future developed areas), erosion control landscaping and irrigation (located within an easement granted to the City), parkway landscaping and irrigation (located within an easement granted to the City), asphalt pavement to major arterial standard width on either side of a raised median, median curb, median hardscaping and landscaping with irrigation, curb and gutter, sidewalk, meandering regional trail for bicycles and pedestrians in a public trail easement which is a part of the City-wide trail system, storm drain facilities within the right-of-way (excluding any Master Drainage Plan facilities subject to reimbursement from Local Drainage Area Fees), sewer, water and reclaimed water lines and appurtenances within the right-of-way (excluding any portion of such costs reimbursable from sewer and/or water connection fees), dry utilities which are non-refundable or non- reimbursable by the utility agency and which are located within the right-of-way', street lights, three new traffic signals and a modification of an existing traffic signal at El Camino Real (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees), relocation of existing utilities, environmental mitigation' and incidental costs of construction to the extent permitted in the Acquisition/Financing Agreement included in Appendix B. of this Report. El Fuerte Street from Palomar Airport Road southerly to connect to the existing terminus of El Fuerte Street at the southerly boundary of Bressi Ranch as shown on Drawing Nos. 400-8E and 400-8F. Full width grading to secondary arterial standards (but not to Prepared by Galen N. Peterson March 29, 2004 73 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 33 include grading outside of the right-of-way in future developed areas), erosion control landscaping and irrigation (located within an easement granted to the City), parkway landscaping and irrigation (located within an easement granted to the City), asphalt pavement to secondary arterial standard width, curb and gutter, sidewalk, meandering regional trail for bicycles and pedestrians in a public trail easement which is a part of the City-wide trail system, storm drain facilities within the right- of-way (excluding any Master Drainage Plan facilities subject to reimbursement from Local Drainage Area Fees), sewer, water and reclaimed water lines and appurtenances within the right-of-way (excluding any portion of such costs reimbursable from sewer and/or water connection fees), dry utilities which are non-refundable or non- reimbursable by the utility agency and which are located within the right-of-way1, street lights, three new traffic signals and a modification of an existing traffic signal at Palomar Airport Road (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees), relocation of existing utilities, environmental mitigation' and incidental costs of construction to the extent permitted in the Acquisition/Financing Agreement included in Appendix B of this Report. Widening of the east side of El Camino Real from Palomar Airport Road to the southerly boundary of Bressi Ranch as shown on Drawing No. 400-8G (Bressi Ranch portion). Grading to prime arterial standards (but not to include grading outside of the right-of-way in future developed areas), erosion control landscaping and irrigation (located within an easement granted to the City), parkway landscaping and irrigation (located within an easement granted to the City), asphalt pavement to prime arterial standard width (including transitions lanes outside of developer's ownership), raised median in certain areas, median curb, median hardscaping and landscaping with irrigation, curb and gutter, sidewalk, dry utilities which are non-refundable or non- reimbursable by the utility agency and which are located within the right- of-way', modification of an existing traffic signal at Street "A" (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees), relocation of existing utilities, environmental mitigation1 and incidental costs of construction to the extent permitted in the Acquisition/Financing Agreement included in Appendix B of this Report. Widening of the east side of El Camino Real from the southerly boundary of Bressi Ranch southerly as Shown on Drawing No. 397- 2R (Greens portion). Grading to prime arterial standards (but not to include grading outside of the right-of-way in future developed areas), erosion control landscaping and irrigation (located within an easement granted to the City), parkway landscaping and irrigation (located within an easement granted to the City), asphalt pavement to prime arterial Prepared by Galen N. Peterson March 29, 2004 7'J City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 34 standard width (including transitions lanes outside of developer's ownership), raised median in certain areas, median curb, median hardscaping and landscaping with irrigation, curb and gutter, sidewalk, dry utilities which are non-refundable or non-reimbursable by the utility agency and which are located within the right-of-way', streetlights, modification of an existing traffic signal at Camino Vida Roble (excluding those portions reimbursed from Traffic Impact Fees and Public Facilities Fees), relocation of existing utilities, environmental mitigation' and incidental costs of construction to the extent permitted in the Acquisition/Financing Agreement included in Appendix B of this Report. Notes: 1/ The aggregate amount of the cost of dry utilities or mitigation land which are to be .owned by an entity other than a "political subdivision" as such term is used in the Internal Revenue Code and regulations of the Internal Revenue Service which may be financed from the proceeds of tax exempt bonds issued for the Financing District shall be limited to 5% of the proceeds of such bonds which are eligible to be used to finance the acquisition of the Improvements. Prepared by Galen N. Peterson March 29, 2004 75 City of Carlsbad - Assessment District No. 2002-01 (Poinsettia Lane East) Page 35 B. Right-of-Way Certificate STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CARLSBAD The undersigned, GLENN PRUIM, hereby CERTIFIES UNDER PENALTY OF PERJURY that the following is all true and correct. That at all times herein mentioned, the undersigned was, and now is, the duly appointed SUPERINTENDENT OF STREETS/ CITY ENGINEER of the CITY OF CARLSBAD, CALIFORNIA. That there have now been instituted proceedings pursuant to the provisions of the Municipal Improvement Act of 1913, being Division 12 of the Streets and Highways Code of the State of California (the "Improvement Act"), Article XIIID of the Constitution of the State of California ("Article XIIID"), and Proposition 218 Omnibus Implementation Act, Section 53750 and following of the Government Code (the "Implementation Act") (the Improvement Act, Article XIIID, and the Implementation Act are collectively referred to as the "Assessment Law") and the City of Carlsbad Municipal Code, as amended, for the construction of certain public improvements in a special assessment district known and designated as ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) (hereinafter referred to as the "Assessment District"). THE UNDERSIGNED STATES AND CERTIFIES AS FOLLOWS: It is acknowledged that the proposed Improvements must be located within public rights-of-way, land, or easements owned by or licensed to the CITY OF CARLSBAD, County of San Diego, State of California, at the time of the acquisition of the Improvements, and the undersigned hereby further certifies that all rights-of-way necessary for the Improvements will be obtained and in possession of the City, County, or State prior to acceptance by the City of Carlsbad. EXECUTED this I'dayof /t412 g Q , 200, at City of Carlsbad, California. Superintendent of Streets I City Engineer City of Carlsbad State of California , ?7 // By: Superintendent of Streets I City Engineer Prepared by Galen N. Peterson March 29, 2004 7~ 13 ORDER OF PROCEDURE CITY OF CARLSBAD ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) DATE OF PUBLIC HEARING: MAY 4, 2004 AT 6:00 PM Mayor: Direct the City Manager to provide the staff report. City Manager: Introduce Item "This is the time and place fixed for the public hearing related to: the proposed. formation of Assessment District No. 2002-01 (Poinsettia Lane East), the proposed levy of assessments to pay debt service on bonds to be issued, for the purpose of financing the cost to acquire or construct certain public improvements." Staff: Introduce the item. Describe the public hearing procedure, assessment ballot procedure and assessment ballot tabulation. Note that noticing requirements and distribution of the assessment ballots were completed in accordance with the law. Introduce the Assessment Engineer. Assessment Engineer: Present and summarize the Assessment Engineer's Report. Explain the method and formula of assessment spread. Staff: Describe the Special Assessment District Disclosure Agreement and compliance with Policy 33. End of staff report - - open public hearing Mayor: Conduct the Public Hearing "The City Council will hear from any interested person who desires to address the City Council on this matter." Upon completion of all public testimony "The public hearing is now closed." Mayor: Council Questions and Comments "Do any members of the City Council have any questions for staff or consultants as a result of the public testimony?" City Council questions to and responses from staff & consultants Mayor: Request City Clerk to tabulate the ballots "The City Clerk will now tabulate the assessment ballots and, upon completion of the tabulation, report the results to the City Council." The City Council may wait until the tabulation is complete or may take a short recess. City Clerk: "The tabulation of the assessment ballots has been completed. There were 3' ballots in support of the levy of the assessments and Of ballots in opposition to the levy of ft the assessments. Alternative No. I If ballots are in support: City Clerk: "Since the number of ballots in support of the levy of the assessments exceeds the. number of ballots in opposition to the levy of the assessments, there is no majority protest." Mayor: Request motion on the Resolutions. "Since there is no majority protest, I would ask for a motion to adopt Resolution No. 2004-j Approving The Final Report of the Assessment Engineer; Declaring the Results of Assessment Ballot Tabulation; Confirming the Assessments and Ordering the Acquisition or Construction of Improvements, Together with Appurtenances, in Assessment District No. 2002-01 (Poinsettia Lane East) and Resolution No. 2004-jf Approving the Form of the Special Assessment District Disclosure Agreement for Assessment District No. 2002-01 (Poinsettia Lane East)." City Council: Motion to adopt both resolutions, discussion and vote to adopt both resolutions. (Unlikely) Alternative No. 2 If ballots are in opposition: City Clerk: "Since the number of ballots in opposition to the levy of the assessments exceeds the number of ballots in support of such levy, there is a majority protest." Mayor: Request motion to abandon the proceedings. "Since there is a majority protest, I would ask for a motion to direct staff to prepare a resolution abandoning the proceedings to form the Assessment District for the next Council meeting." City Council: Motion to vote to direct staff to prepare a resolution abandoning the proceedings to form the Assessment District. End of proceeding ASSESSMENT BALLOT City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) This assessment ballot is for the use of the owner of the parcel identified below (the "Identified Parcel") which is located within the boundaries of the proposed City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) ("Assessment District"). Please advise the City Clerk of the City of Carlsbad at (760) 434-2808 if you are not the owner of the Identified Parcel. This assessment ballot may be completed by the owner of the Identified Parcel or a legally authorized representative of such owner to express such owner's support for or opposition to the assessment proposed to be levied on the Identified Parcel for the Assessment District. The amount of the proposed assessment is set forth below. THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS ASSESSMENT BALLOT. You must follow these instructions in completing this assessment ballot to insure that this assessment ballot will be accepted. Certification of Voter: I certify under penalty of perjury that I am the owner of the Identified Parcel or a representative of such owner and am legally authorized to complete this assessment ballot on behalf of such owner. Snature of person completing this assessment ballot Do you support or oppose the levy of the assessment set SUPPORT forth below on the Identified Parcel? OPPOSE Identified Parcel: Lots 1 through 5 inclusive of Carlsbad Tract CT 00-06 General American Life Insurance Co. $8,814,475.39 Metropolitan Life Attn: Todd Morefield 333 S. Hope Street, Suite 1150 Los Angeles, CA 90071 Instructions: How to complete this assessment ballot: You may indicate whether you support or oppose the levy of the proposed assessment on the property identified below by placing a cross (+) using a pen in the box next to the word "SUPPORT" or the word "OPPOSE". Mark only one box. You must sign this assessment ballot in the space provided for your signature. By signing this assessment ballot you are certifying that you are either (a) the owner of the Identified Property or (b) a representative of such owner legally authorized to complete this assessment ballot on behalf of such owner. This assessment ballot will be disqualified if it is not signed. How to return this assessment ballot: Seal the assessment ballot in the accompanying pre-addressed envelope and either (a) deposit the envelope in the U.S. mail or (b) deliver the envelope containing the assessment ballot to the following address: City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, California 92008. Deadline for Return of this assessment ballot: If returned by deposit in the U.S. mail, the envelope must be received by the City Clerk not later than 5:00 pm on May 4, 2004. If mailing this assessment ballot, you must allow sufficient time to ensure that this assessment ballot is received prior to such date and time. If delivering this assessment ballot, it must be delivered to and received by the City Clerk at the above address not later than the closure of the public hearing for the assessment district scheduled to be held at 6 pm on May 4, 2004. If such public hearing is continued to a subsequent date, the deadline for receipt of this assessment ballot shall also be extended to the close of such public hearing. No notice of such continuance shall be provided. Withdrawing or changing this assessment ballot: This assessment ballot may be withdrawn at any time prior to the closure of the public hearing by request of the person signing the assessment ballot made to the City Clerk. This assessment ballot may be changed at any time prior to the closure of the public hearing by withdrawing this assessment ballot and requesting a replacement assessment ballot. Only the person signing this assessment ballot may make such a request. The replacement assessment ballot must be received by the City Clerk prior to the deadline set forth above. Questions: If you have questions regarding these instructions or this assessment ballot, please call the City Clerk between Barn and 5 pm Monday through Friday at the following phone number: City Clerk City of Carlsbad (760) 434-2808 ASSESSMENT BALLOT City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) This assessment ballot is for the use of the owner of the parcel identified below (the "Identified Parcel") which is located within the boundaries of the proposed City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) ("Assessment District"). Please advise the City Clerk of the City of Carlsbad at (760) 434-2808 if you are not the owner of the Identified Parcel. This assessment ballot may be completed by the owner of the Identified Parcel or a legally authorized representative of such owner to express such owner's support for or opposition to the assessment proposed to be levied on the Identified Parcel for the Assessment District. The amount of the proposed assessment is set forth below. THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS ASSESSMENT BALLOT. You must follow these instructions in completing this assessment ballot to insure that this assessment ballot will be accepted. Certification of Voter: I certify under penalty of perjury that I am the owner of the Identified Parcel or a 'representative of such owner and am legally authorized to complete this assessment ballot on behatf of such owner. Signature of personmpleting this assessment ballot Do you support or oppose the levy of the assessment set SUPPORT X forth below on the Identified Parcel? OPPOSE 0 Identified Parcel: Lots 11, 13, 15 and Lots Proposed assessment: 17 through 22 inclusive 'of Carlsbad Tract CT 00-06 $7,812,874.26 Bressi Gardenlane, LLC do Lennar Homes of California Attn: Graham Jones 24800 Chrisanta Drive, Suite 200 Mission Viejo, CA 92691 Instructions: How to complete this assessment ballot: You may indicate whether you support or oppose the levy of the proposed assessment on the property identified below by placing a cross (+) using a pen in the box next to the word "SUPPORT" or the word "OPPOSE". Mark only one box. You must sign this assessment ballot in the space provided for your signature. By signing this assessment ballot you are certifying that you are either (a) the owner of the Identified Property or (b) a representative of such owner legally authorized to complete this assessment ballot on behalf of such owner. This assessment ballot will be disqualified if it is not signed. How to return this assessment ballot: Seal the assessment ballot in the accompanying pre-addressed envelope and either (a) deposit the envelope in the U.S. mail or (b) deliver the envelope containing the assessment ballot to the following address: City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, California 92008. Deadline for Return of this assessment ballot: If returned by deposit in the U.S. mail, the envelope must be received by the City Clerk not later than 5:00 pm on May 4, 2004. If mailing this assessment ballot, you must allow sufficient time to ensure that this assessment ballot is received prior to such date and time. If delivering this assessment ballot, it must be delivered to and received by the City Clerk at the above address not later than the closure of the public hearing for the assessment district scheduled to be held at 6-pm on May 4, 2004. If such public hearing is continued to a subsequent date, the deadline for receipt of this assessment ballot shall also be extended to the close of such public hearing. No notice of such continuance shall be provided. Withdrawing or changing this assessment ballot: This assessment ballot may be withdrawn at any time prior to the closure of the public hearing by request of the person signing the assessment ballot made to the City Clerk. This assessment ballot may be changed at any time prior to the closure of the public hearing by withdrawing this assessment ballot and requesting a replacement assessment ballot. Only the person signing this assessment ballot may make such a request. The replacement assessment ballot must be received by the City Clerk prior to the deadline set forth above. Questions: If you have questions regarding these instructions or this assessment ballot, please call the City Clerk between 8 am and 5 pm Monday through Friday at the following phone number: City Clerk City of Carlsbad (760) 434-2808 ASSESSMENT BALLOT City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) This assessment ballot is for the use of the owner of the parcel identified below (the "Identified Parcel") which is located within the boundaries of the proposed City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) ("Assessment District"). Please advise the City Clerk of the City of Carlsbad at (760) 434-2808 if you are not the owner of the Identified Parcel. This assessment ballot may be completed by the owner of the Identified Parcel or a legally authorized representative of such owner to express such owner's support for or opposition to the assessment proposed to be levied on the Identified Parcel for the Assessment District. The amount of the proposed assessment is set forth below. THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS ASSESSMENT BALLOT. You must follow these instructions in completing this assessment ballot to insure that this assessment ballot will be accepted. Certification of Voter: I certify under penalty of perjury that I am the owner of the Identified Parcel or a representative of such owner and am legally authorized to complete this assessment ballot on behalf of such owner. nature of person c'bppleting this assessment ballot Do you support or oppose the levy of the assessment set SUPPORT forth below on the Identified Parcel? OPPOSE U Identified Parcel: Lot 14 of Carlsbad Tract Proposed assessment: CT 00-06 LennarBressl Ranch Venture, LLC $74,691.03 do Lennar Homes of California Attn: Graham Jones 24800 Chrisanta Drive, Suite 200 Mission Viejo, CA 92691 Instructions: How to complete this assessment ballot: You may indicate whether you support or oppose the levy of the proposed assessment on the property identified below by placing a cross (+) using a pen in the box next to the word "SUPPORT' or the word "OPPOSE". Mark only one box. You must sign this assessment ballot in the space provided for your signature. By signing this assessment ballot you are certifying that you are either (a) the owner of the Identified Property or (b) a representative of such owner legally authorized to complete this assessment ballot on behalf of such owner. This assessment ballot will be disqualified if it is not signed. How to return this assessment ballot: Seal the assessment ballot in the accompanying pre-addressed envelope and either (a) deposit the envelope in the U.S. mail or (b) deliver the envelope containing the assessment ballot to the following address: City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, California 92008. Deadline for Return of this assessment ballot: If returned by deposit in the U.S. mail, the envelope must be received by the City Clerk not later than 5:00 pm on May 4, 2004. If mailing this assessment ballot, you, must allow sufficient time to ensure that this assessment ballot is received prior to such date and time. If delivering this assessment ballot, it must be delivered to and received by the City Clerk at the above address not later than the closure of the public hearing for the assessment district scheduled to be held at 6 pm on May 4, 2004. If such public hearing is continued to a subsequent date, the deadline for receipt of this assessment ballot shall also be extended to the close of such public hearing. No notice of such continuance shall be provided. Withdrawing or changing this assessment ballot: This assessment ballot may be withdrawn at any time prior to the closure of the public hearing by request of the person signing the assessment ballot made to the City Clerk. This assessment ballot may be changed at any time prior to the closure of the public hearing by withdrawing this assessment ballot and requesting a replacement assessment ballot. Only the person signing this assessment ballot may make such a request. The replacement assessment ballot must be received by the City Clerk prior to the deadline set forth above. Questions: If you have questions regarding these instructions or this assessment ballot, please call the City Clerk between 8 am and 5 pm Monday through Friday at the following phone number: City Clerk City of Carlsbad (760) 434-2808 ASSESSMENT BALLOT City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) This assessment ballot is for the use of the owner of the parcel identified below (the "Identified Parcel") which is located within the boundaries of the proposed City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) ("Assessment District"). Please advise the City Clerk of the City of Carlsbad at (760) 434-2808 if you are not the owner of the Identified Parcel. This assessment ballot may be completed by the owner of the Identified Parcel or a legally authorized representative of such owner to express such owner's support for or opposition to the assessment proposed to be levied on the Identified Parcel for the Assessment District. The amount of the proposed assessment is set forth below. THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS ASSESSMENT BALLOT. You must follow these instructions in completing this assessment ballot to insure that this assessment ballot will be accepted. Certification of Voter: I certify under penalty of perjury that I am the owner of the Identified Parcel or a representative of such owner and am legally authorized to complete this assessment ballot on behalf of such owner. Signature of perso completing this assessment ballot Do you support or oppose the levy of the assessment set SUPPORT forth below on the Identified Parcel? OPPOSE 0 Identified Parcels: Lots 6 through 10 Proposed assessment: inclusive and Lots 12 and 16 of Carlsbad Tract CT 00-06 $12,715,401.30 Greystone Homes, Inc. Attn: Mike Levesque 1525 Faraday Ave, Suite 300 Carlsbad, CA 92008 ASSESSMENT BALLOT City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) This assessment ballot is for the use of the owner of the parcel identified below (the "Identified Parcel") which is located within the boundaries of the proposed City of Carlsbad Assessment District No. 2002-01 (Poinsettia Lane East) ("Assessment District"). Please advise the City Clerk of the City of Carlsbad at (760) 434-2808 if you are not the owner of the Identified Parcel. This assessment ballot may be completed by the owner of the Identified Parcel or a legally authorized representative of such owner to express such owner's support for or opposition to the assessment proposed to be levied on the Identified Parcel for the Assessment District. The amount of the proposed assessment is set forth below. THE INSTRUCTIONS FOR THE COMPLETION AND RETURN OF THIS ASSESSMENT BALLOT MAY BE FOUND ON THE REVERSE SIDE OF THIS ASSESSMENT BALLOT. You must follow these instructions in completing this assessment ballot to insure that this assessment ballot will be accepted. Certification of Voter: I certify under penalty of perjury that I am the owner of the Identified Parcel or a representative of such owner and am legally authorized to complete this assessment ballot on behalf of such owner. Signature of perso Co I' this assessment ballot Do you support or oppose the levy of the assessment set SUPPORT ' forth below on the Identified Parcel? OPPOSE U Identified Parcel: Lots 1 through 4 inclusive, Lots 6 through 14 inclusive and Lots 16 through 49 inclusive of Carlsbad Tract CT 99-03 Real Estate Collateral Management Company C/o Household Commercial of California, Inc. Attn: Fred R. Schimel 2700 Sanders Road Prospect Heights, IL 600070 - Proposed assessment: $12,348,901.00. Instructions: How to complete this assessment ballot: You may indicate whether you support or oppose the levy of the proposed assessment on the property identified below by placing a cross (+) using a pen in the box next to the word "SUPPORT' or the word "OPPOSE". Mark only one box. You must sign this assessment ballot in the space provided for your signature. By signing this assessment ballot you are certifying that you are either (a) the owner of the Identified Property or (b) a representative of such owner legally authorized to complete this assessment ballot on behalf of such owner. This assessment ballot will be disqualified if it is not signed. How to return this assessment ballot: Seal the assessment ballot in the accompanying pre-addressed envelope and either .(a) deposit the envelope in the U.S. mail or (b) deliver the envelope containing the assessment ballot to the following address: City Clerk, City of Carlsbad, 1200 Carlsbad Village Drive, Carlsbad, California 92008. Deadline for Return of this assessment ballot: If returned by deposit in the U.S. mail, the envelope must be received by the City Clerk not later than 5:00 pm on May 4, 2004. If mailing this assessment ballot, you must allow sufficient time to ensure that this assessment ballot is received prior to such date and time. If delivering this assessment ballot, it must be delivered to and received by the City Clerk at the above address not later than the closure of the public hearing for the assessment district scheduled to be held at 6 pm on May 4, 2004. If such public hearing is continued to a subsequent date, the deadline for receipt of this assessment ballot shall also be extended to the close of such public hearing. No notice of such continuance shall be provided. Withdrawing or changing this assessment ballot: This assessment ballot may be withdrawn at any time prior to the closure of the public hearing by request of the person signing the assessment ballot made to the City Clerk. This assessment ballot may be changed at any time prior to the closure of the public hearing by withdrawing this assessment ballot and requesting a replacement assessment ballot. Only the person signing this assessment ballot may make such a request. The replacement assessment ballot must be received by the City Clerk prior to the deadline set forth above. Questions: If you have questions regarding these, instructions or this assessment ballot, please call the City Clerk between 8 am and 5 pm Monday through Friday at the following phone number: City Clerk City of Carlsbad (760) 434-2808 CERTIFICATE OF COMPLIANCE WITH NOTICE AND ASSESSMENT BALLOT REQUIREMENTS CITY OF CARLSBAD ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss CITY OF CARLSBAD ) The undersigned, under penalty of peijury, CERTIFIES AS FOLLOWS: The undersigned is now, and at all times mentioned herein was, the duly appointed, qualified and acting Assessment Engineer to the City Of Carlsbad, California, pertaining to the proceedings related to the above captioned Assessment District, and as such, certifies that the following requirements in connection with such captioned Assessment District have been accomplished and satisfied: MAILING The NOTICE OF PUBLIC HEARING AND ASSESSMENT BALLOT PROCEDURE, together with the assessment ballot package, was mailed to the record owners of all real property proposed to be assessed according to the names and addresses of such owners as the same appear on the last County Assessment Roil, or at the address as known to the undersigned; such mailing being accomplished on the /day of 2004, being at least forty-five (45) days prior to the date set for the final public hearing. (A CH A COPY OF THE COMPLETE NOTICE AND ASSESSMENT BALLOT PACKAGE) EXECUTED this day of , 2004, at t",&,/California. Galen N. Peterson, suiting Engineer CERTIFICATE OF COMPLIANCE WITH NOTICE AND ASSESSMENT BALLOT REQUIREMENTS CITY OF CARLSBAD ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss CITY OF CARLSBAD ) The undersigned, under penalty of perjury, CERTIFIES AS FOLLOWS: The undersigned is now, and at all times mentioned herein was, the duly appointed, qualified and acting Assessment Engineer to the City Of Carlsbad, California, pertaining to the proceedings related to the above captioned Assessment District, and as such, certifies that the following requirements in connection with such captioned Assessment District have been accomplished and satisfied: MAILING The NOTICE OF PUBLIC HEARING AND ASSESSMENT BALLOT PROCEDURE, together with the assessment ballot package, was mailed to the record owners of all real property proposed to be assessed according to the names and addresses of such owners as the same appear on the last County Assessment Roll, or at the address as known to the undersigned; such mailing being accomplished on the /5 day of , 2004, being at least forty-five (45) days prior to the date set for the final public hearing. (ATTACH A COPY OF THE COMPLETE NOTICE AND ASSESSMENT BALLOT PACKAGE) EXECUTED this / 'y of A4f, 2004, at4J California. 4NPeterson, u iting Engineer NOTICE OF PUBLIC HEARING AND ASSESSMENT BALLOT PROCEDURE CITY OF CARLSBAD ASSESSMENT DISTRICT NO. 2002-01 (POINSETTIA LANE EAST) The purpose of this notice is to provide-information to the record owners of property within the proposed boundaries of Assessment District No. 2002-01 (Poinsettia Lane East) (the "Assessment District") o f t h e C i t y o f Carlsbad (the "City') regarding the proceedings being undertaken by the City to consider th e f o r m a t i o n o f t h e Assessment District and the levy of assessments on properties within the Assessment District for the purp o s e s p e c i f i e d below. Reason for the Assessment. Assessments are proposed to be levied within the Assessment District to fund (a) the acquisit i o n o r construction of improvements generally located within or adjacent to Poinsettia Lane, El Fuerte Stre e t a n d E l C a m i n o Real and specially benefiting the properties within the Assessment District including roadway, traffic si g n a l s , s t r e e t lights, regional trail, landscape, irrigation, storm drain, domestic potable water, recycled water, sewer an d d r y u t i l i t y improvements, grading and utility relocation (collectively, the "Improvements"), (b) incidental e x p e n s e s r e l a t e d t o t h e foregoing, (c) the costs of formation of the Assessment District, (d) the costs of issuance of bonds for t h e A s s e s s m e n t District, and (d) capitalized interest and a reserve fund for such bonds. The Total Assessment Proposed to be Charged to the Entire Assessment Distri c t . The amount of the assessments proposed to be charged to the entire Assessment District is $41,766. 3 4 2 . 9 7 . Assessment Proposed to be Charged to Your Property. The amount of the assessment proposed to be charged against the property for which this notice is g i v e n i s specifically set forth on the accompanying Assessment Ballot. Duration of the Assessments. The assessments may be payable over a period not to exceed 40 years or until the bonds secured b y s u c h assessments are paid off, whichever occurs first. The payment of the principal amount of the a s s e s s m e n t s w i l l b e amortized over the term thereof. Such principal payments, together with interest on the assessm e n t s , w i l l b e b i l l e d o n the property tax bill and will be payable annually in two equal installments. See "Issuance of Bond s " b e l o w . Basis upon which the Proposed Assessments are Calculated. The Improvements have been assigned into six (6) benefit components: (1) roadway. (2) potab l e w a t e r , ( 3 ) recycled water. (4) sewer, (5) dry utilities and (6) incidental expenses. Roadway improvement costs are p r o p o s e d t o b e apportioned on vehicle average daily trip (ADT) generation. Potable water, sewer and dry utility cos t s a r e p r o p o s e d t o be apportioned on an equivalent dwelling unit basis. Recycled water costs are proposed to be a p p o r t i o n e d t o t h e roadway and specific parcels based on the amount of recycled water used for irrigation of ea c h s u c h r o a d w a y o r specific parcel. Incidental expenses are proposed to be apportioned on either the actual cost to each co m p o n e n t o f t h e Improvements or, if the incidental costs apply to all such components, then to the prorated const r u c t i o n c o s t o f e a c h such component. Reference is made to the Preliminary Engineer's Report described below in the section entitled "Doc u m e n t s Available for Review." The basis upon which the proposed assessments are calculated containe d i n t h i s n o t i c e i s o n l y a brief description of and guide to, and is qualified by, the more complete and detailed information c o n t a i n e d i n t h e Preliminary Engineer's Report. Record owners and other interested persons are strongly encourage d t o r e v i e w t h e Preliminary Engineer's Report. Page 1 of Annual Assessment for Unreimbursed Administrative Expenses. In addition to the assessments described above, the City proposes to levy and collect an annual assessment to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of the assessments or from the administration or registration of any bonds and reserve or other related funds. The proposed maximum annual assessment shall not exceed five percent (5.0%) of the annual assessment per individual assessment parcel per year. Public Hearing. Notice is hereby given that a public hearing on the proposed assessment will be held in the regular meeting. place of the City Council of the City, being the Council Chambers, 1200 Carlsbad Village Drive, Carlsbad, California, 92008 at the following date and at the following time: MAY 4, 2004 AT 6:00 P.M. At that time the City Council will hold a public hearing on the proposed assessment. The City Council shall consider all objections and protests, if any, to the proposed assessment. Any interested person shall be permitted to present written and/or oral testimony. The City Council may impose reasonable time limits on both the length of the entire public hearing and the length of each interested person's oral testimony. The City Council may also continue the public hearing from time to time. Assessment Ballot Proceeding. In addition to the right to participate in the public hearing described above, each record owner of property proposed to be assessed has the right under the provisions of the Assessment Law to submit an assessment ballot in favor of or in opposition to the proposed assessment. An assessment ballot has been enclosed with this notice. Each record owner, or the legally authorized representative of such record owner. may complete the assessment ballot and thereby indicate such owner's support for or opposition to the proposed assessment. After the conclusion of the public hearing, the City Council shall cause the assessment ballots received prior to the close of the public hearing to be tabulated by the City Clerk. Itis not necessary for record owner to be a citizen of the United States or a resident of the City, the State of California or the United States in order to eligible to complete an assessment ballot. If a majority protest exists, the City Council shall not impose the assessment upon the Assessment District. For purposes of the assessment ballot procedure, a majority protest exists if, upon conclusion of the public hearing, assessment ballots submitted in opposition to the proposed assessments within the Assessment District exceed assessment ballots submitted in favor of such proposed assessments. In tabulating the assessment ballots, each assessment ballot shall be weighted by the amount of the proposed assessment to be imposed upon the parcel for which such assessment ballot was submitted. THE INSTRUCTIONS FOR THE COMPLETION AND DELIVERY OF THE ASSESSMENT BALLOT ARE PRINTED ON THE REVERSE SIDE OF THE ASSESSMENT BALLOT. These instructions also specify the deadline for receipt of assessment ballots. Please follow the instructions carefully and completely in filling out the assessment ballot to ensure that the assessment ballot will be tabulated. TO BE ELIGIBLE TO BE TABULATED, ASSESSMENT BALLOTS MUST BE RECEIVED BY THE CITY CLERK OF THE CITY NOT LATER THAN THE CLOSE OF THE PUBLIC HEARING. An assessment ballot will not be tabulated if: The document received is a photocopy of an assessment ballot which does not contain an original signature; The assessment ballot is not signed; C. The assessment ballot is received by the City Clerk after the public hearing is closed; The assessment ballot is not marked with an identifiable "yes or "no"; or Page 2 of 4 The assessment ballot appears tampered with or otherwise invalid based upon us appearance. method of delivery or other circumstances known to the City Clerk. Questions. If you have questions regarding the instructions on the assessment ballot or your assessmen t b a l l o t i s l o s t o r destroyed, please call the City Clerk between 8 am and 5 pm Monday through Friday at the f o l l o w i n g p h o n e n u m b e r : City Clerk, City of Carlsbad (760) 434-2808 Please contact the Assessment Engineer listed below if you have any questions regarding t h e A s s e s s m e n t District or this notice: Galen N. Peterson, Consulting Engineer (858) 487-7000 Documents Available for Review. The following documents pertaining to the proposed Improvements, the Assessment District and the proposed assessments are available for review Monday through Thursday from 7:30 am to 5:30 pm or Friday from 8:00 am to 5:00 pm in the Engineering Department of the City of Carlsbad: Preliminary Engineer's Report dated November 10, 2003 containing a description of the Improvemen t s , a cost estimate for the project, a diagram showing the parcels within the Assessment District, th e a s s e s s m e n t proposed to be levied against each parcel within the Assessment District that specially b e n e f i t s f r o m t h e Improvements, and a description of the proposed rate and method of apportioning such costs; The Acquisition/Financing Agreement made and entered into January 21,2003 by and between the C i t y o f Carlsbad and Lennar Bressi Ranch Venture, LLC, and Real Estate Collateral Manageme n t C o m p a n y w h i c h establishes the terms and conditions pursuant to which the contracts for the construction of the Impr o v e m e n t s w i l l be bid, awarded and administered, the Improvements will be acquired by the City and bonds will be i s s u e d f o r t h e Assessment District. The Engineering Department is located at the following address: 1635 Faraday Avenue, Car l s b a d , C a l i f o r n i a 9 2 0 0 8 Authority for Proceedings and Notice. The proceedings of the City to consider the formation of the Assessment District and the levy of a s s e s s m e n t s on properties within the Assessment District are being undertaken and this notice is being given p u r s u a n t t o a n d i n accordance with the provisions of: Article XHID of the Constitution of the State of California, the Municipal Improvement Act of 1913 (Section 10000 and following of the California Streets and Highways Code), the Improvement Bond Act of 1915 (Section 8500 and following of the California Streets and Highways Code), and the Proposition 218 Omnibus Implementation Act (Section 53750 and following of the California Government Code). (such constitutional and statutory provisions are referred to collectively as the "Assessme n t L a w " ) . Page 3 of 4 issuance of Bonds. If the City Council approves the formation of the Assessment District and the levy of assessments, a thirt\ (30) day cash collection period will follow. During the cash collection period property owners may pay all or an\ portion of the assessment levied against their property. Upon the completion of the cash collection period. the Cit Council intends to issue limited obligation improvement bonds (the "Bonds") pursuant to the "improvement Bond Act of 1915". Division 10 of the Streets and Highways Code of the State of California. in an amount equal to all assessments that then remain unpaid. Annual assessment installments in amounts necessary to pay the debt service on the Bonds will be collected on the property tax bill from those properties for which the assessments are unpaid following the end of the cash collection period. Page 4 of 4