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Home My WebLink AboutLFMP 08; LOCAL FACILITIES MANAGEMENT PLAN ZONE 08; LOCAL FACILITIES MANAGEMENT PLAN ZONE 8 KELLY RANCH AREA E AMENDMENT FINANCING PLAN; 1998-09-24CITY OF CARLSBAD GROWTH MANAGEMENT PROGRAM ZONES LOCAL FACILITIES MANAGEMENT PLAN KELLY RANCH AREA "E" AMENDMENT FINANCING PLAN Kelly Land Company 2011 Palomar Airport Rd. #206 Carlsbad, CA 92009 Planning Systems 1530 Faraday Ave. #100 Carlsbad, CA 92008 3rd Submittal 9/24/98 C C ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN AMENDMENT NO. 1 FACILITY FINANCING PLAN A. INTRODUCTION 1. Purpose of Document This Facilities Financing Plan has been prepared in conjunction with the Local Facilities Management Plan for Zone 8, in satisfaction of the requirements of the City of Carlsbad Growth Management Program (Municipal Code Section 21.90.010 et seq.). This Plan provides financing information based on the facilities projected by the Zone 8 Local Facilities Management Plan (LFMP), and its Amendment No. 1, and based on the Carlsbad Growth Management Program performance standards. Sources of funds and methods of guaranteeing funding are found in this plan. Also found are Special Conditions as provided in the Zone 8 LFMP, as Amended. 2. Sources of Information In addition to the Zone 8 LFMP document and Zone 8 LFMP Amendment No. 1, sources used in this plan are the Carlsbad Capital Improvement Document (1998-99), various public facilities master plans, and direct conversations with city staff. 3. Ownership Circumstances in LFMP Zone 8 The ownership of property within Zone 8 consists of three landholdings; the 432.8 acre Kelly Land Company property, the 21.9 acre Kirgis property, and 276.5 acres owned by the City of Carlsbad, known as Macario Canyon. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN 1 FINANCING PLAN C 4. Finance Method Section 21.90.080 of the Municipal Code requires a "financing guarantee" for the provision of necessary public facilities. This plan identifies funding sources and as such the use of these funds to implement provision of public facilities constitutes that guarantee. Developer Funding Under this method, the developer will fund and construct certain required facilities prior to or concurrent with development of his particular property. Facilities to be funded in this way are those which normally would be imposed as conditions of approval (or in the case of Area E, has been imposed) of a tentative map under the City's development review process. The financing guarantee required by the growth Management Ordinance that funds will be available for construction of the required facility shall be provided through delivery to the city of an acceptable security instriunent, such as a surety bond, or through execution of an improvement agreement prior to the recordation of the final map. The improvement agreement must be in accordance with Section 66462 of the Subdivision Map Act and Section 20.16.060 of the Carlsbad Municipal Code. The agreement must also be accompanied by a security instrument as described in Section 20.16.070 of the Carlsbad Municipal Code, i.e., a security bond, cash deposit, or an instrument or letter of credit. City of Carlsbad Community Facilities District No. 1 A Mello-Roos community facilities district has been formed by the City of Carlsbad and approved on May 7, 1991 by an affirmative vote of land owners to fund construction of certain Citywide facilities, including a number of facilities which are required by the Zone 8 LFlvlP. The financing guarantee required by the growth Management Ordinance for any of the facilities to be funded by Carlsbad CFD No. 1 is satisfied by annexation to and participation in the district. Development Impact Fees Capital Improvement Program of the City of Carlsbad and special districts contain plans to construct certain facilities including a number of facilities which are required by the Zone 8 LFlvlP. Sources of funds for these facilities are development impact fees which are collected at issuance of building permit. ZONE 8 LOCALFACIUTIES MANAGEMENT PLAN 2 FINANCING PLAN ___ ,, ____________ ····-------------------------··-•··-·· ..... C Facilities which are proposed to be funded directly from development fees include wastewater treatment facilities and certain circulation and sewage collection facilities. For facilities which are proposed to be funded from development fees, payment of such fees will satisfy the private developer's financial obligation for these facilities, as long as the applicable Growth Management Program Performance standards are satisfied. Reimbursement from City of Carlsbad Development Fee Fund If a developer constructs a facility which is included in a fee program, he may be reimbursed from the applicable fee fund, subject to City Council approval and the following conditions: • That sufficient, unobligated funds are available; • That the reimbursement is consistent with the priority of project funding within the most recent adopted Capital Improvement Program; and • That the reimbursement shall not exceed the maximum amount budgeted in the most recent adopted Capital Improvement Program. B. TIMING OF DEMAND Demand for various facilities is based on the type of development, its location within the zone and when new development will be "on line". This analysis uses the Phasing projection identified on Exhibit A of this Financing Plan for projections regarding type, location and timing of new development. The LFMP, and its Amendment No. 1, which modifies the analysis for Parks, Circulation and Sewer Collection Facilities, analyzes the impact of new development on the eleven identified public facilities categories and shows specific public facilities requirements over time. The financing plan demonstrates how the projected facilities requirements will be funded over time. C. FINANCING Public facilities funding sources and funding responsibilities, based on Zone 8 development projections identified through the Zone 8 LFMP, are described in this section. Special Conditions which deal with facilities and funding are provided as found in the LFMP. The following are sections which deal with each of the identified public facilities categories. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN 3 FINANCING PLAN EXHIBIT A Kelly Land Company LFMP Zone 8 Phasing Phase Year I 1998 TOTAL [ 1999 TOTAL II 2000 TOTAL III 2001 TOTAL IV 2001-05 TOTAL GRAND TOTAL ZONE 8 LOCAL FACIUTIES MANAGEMENT PLAN Planning Area E (1) A (1) A{2) C E (2) E(3) D,G,H (1) I J (1) D,G H (2) J (2) F N L K M Land Use DU SFD-5000 18 I 1 8 I MFD 72 MFD 39 SFD-7500 8 SFD-5000 72 SFD-5000 55 t 246 MFD (Apts.) 480 SFO-5000 73 SFO-7500 60 613 MFD (Apts.) 15 SFD-7500 27 N SFD 11 MFD 26 MFD 7 86 !PARK I I 963 I 4 -PLANNING PROJECTIONS ONL y. Acre ADT I EDU Population 180 18 41.72 18 o, 1 8 41. 72 5761 72 1 66.90 312 39 90.39 801 8 18.54 720 72 166.90 550 55 127 .48 20581 152 352.34 3840 480 1112.64 730 73 169.21 600 60 139.08 · 5170 707 1638,80 120 15 34.77 270 27 62.59 2.6 1040 110 11 25.50 2oa1 26 60.27 561 7 16.22 2.6 1804/ 86 199.35 276.5 1750 800 0.00 276.5 1750 800 0 .00 279.1 10,962 1763 2232.21 FINANCING PLAN C 1. CITY ADMINISTRATIVE FACILITIES City Administrative Financing Matrix Zones City Administrative Estimated Facilities Cost Timing 1. Public Service Center -Construction $4,668,000 1998-99 2. New City Hall $26,019,000 2003-08 Total City Administrative Costs $30,687,000 Funding Options 1st CFD#1 Sewer CFD#l 2nd 3rd Notes (1 )(2) (2) (1) There are no special conditions required of Zone 8 other than payment of the City's Sewer Fees and participation in the Citywide CFO. (2) Annexation of the Zone 8 Kelly Land Company property into the CFD No. 1 has occured. This annexation involves the major development within the Zone. Facility The same Facilities are required for all zones in the City including Zone 8. There are no Special Conditions specified in the Zone 8 LFMP. Source of Funds The City's Capital Improvement Program includes the above facilities. The source of funds is Public Facility Fee collected at issuance of building permit. Portions of the Public Service Center and New City Hall will be funded through CFDNo.1. Financing Guarantee Annexation to and participation in Carlsbad CFD No. 1 satisfies the financing guarantee for the facilities included in the CFD. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN . 5 FJNANClNG PLAN C 2. LIBRARY FACILITIES Library Financing Matrix Zones Library Estimated Facilities Cost 1. Library Remodel $1,874,000 2. Library -Cole/North $13,165,000 Carlsbad Library Expansion 3. Library -South Carlsbad Construction $20,992,000 Shelving 650,000 Collection 400,000 Total Library Costs $37,081,000 Funding Options Timing 1st 2nd 3rd Note s 1999-00 PFF (1) 2009+ PFF/CFD #1 (1)(2) 1997-99 PFF/CFD#l (1)(2) (1) There are no special conditions required of Zone 8 other than the payment of the City's Public Facilities Fees (PFF) and participation in the Citywide CFO. (2) Annexation of the Kelly Land Company into the CFO No. 1 has occurred. Facility The same facilities are required for all zones in the City, including Zone 8. There are no Special Conditions specified in the existing Zone 8 LFMP. Source Of Funds The City's Capital Improvement Program includes the above facilities. The source of funds is Public Facilities Fee collected at issuance of building permit and CFD No. 1. Financing Guarantee Annexation to and participation in Carlsbad CFD. No. 1 satisfies the financing guarantee for the facilities included in the CFD. ZONE 8 LOCAL FACIUTIES MANAGEMENT PLAN 6 FINANCING PLAN C C 3. WASTE WATER FACILITIES Wastewater Financing Matrix Zones Wastewater Estimated Facilities Cost 1. Encina Outfall Upgrade $10,545,000 2. Endna Phase V $10,736,000 Expansion Total Wastewater Costs $21,281,000 Funding Options Timing 1st 2nd 3rd Notes 2002-08-Sewer Fees (1) 2003-2008 Sewer Fees (1) / Bonds (1) No special funding is required at this time. Zone 8 will contribute to the funding of Wastewater facilities through the payment of Sewer Connection Fees at time of development. Facility There are no Special Conditions contained in the Zone 8 LFMP. The following actions will be pursued by the City, however, in order to ensure adequate wastewater treatment capacity throughout a required five year period. • Monitor Encina Treatment Plant flows on a monthly basis to determine actual flow rates and to have an early warning of capacity problems. Source Of Funds The source of funds for sewer upgrades and expansions of treatment capacity is the sewer connection fee collected by each district. Financing Guarantee Payment of sewer connection fee shall satisfy the financing obligations of private development for Wastewater Facilities. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN 7 FINANCING PLAN C. C 4. PARK FACILITIES Park District 1 (Northeast Quadrant) Financing Matrix Zones Funding Park Estimated Options Facilities Cost Timing 1st 2nd 3rd Notes 1. Veterans Memorial Park $15,769,000 2004+ CFO 2. Park acquisition $2,300,000 2003-2008 PIL-NW 3. Cannon Lake Park $947,000 2009-2020 PFF Total Park Costs 19,096,000 (1) Annexatmn of the Kelly Land Company property into the CFO No. 1 has occurred. Facility (1) The proposed Zone 8 LFMP Amendment includes special conditions for Park facilities as follows: 1. All residential development shall pay Park-In-Lieu and Public Facility Fees for Park District 1. 2. Prior to the recordation of the first final map, issuance of a grading permit or building permit, whichever occurs first within Zone 8, a Parks l'..grccmcnt shall be required to include fr.e follo:wing provisions: a. A letter of cr:edit or some other secured financing acceptable to the City in the amount of $770,500 guaranteeing the construction of 6.7 aa=es of parkland, from a financial institution and upon terms and conditions acceptable to the Finance Director and City .'\ttorney at the time this agreement is e>Eecuted. b. Park operating costs shall be proYided either through a leHer of credit or some other secured financding from a financial institution and upon terms and conditions acceptable to the Pinance Director and City Attorney or the establishment of a Park District 1 Growth Management Pee that would COYJer the operating costs for the Park. The amount of the costs and the time for \vhieh the developers in Park District 1 ·would be responsible for thesee costs shall be pro•1ided for 7Nithin the Parks Agreement. c. The Parks l".,greement shall be consistent ,vith the requirements of the City's Growth M:anagement Program. d. The Parks Agreement shall provide mechanisms for reimbursements, Parl.: In Lieu fee credits and/or PFP credits. a. No residential development ·Nill be allowed after 1992 unless actions have been taken to construct additional park facilities. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN 8 FINANCING PLAN C C 2. All non-residential uses within Zone 8 shall pay Public Facilities Fees for which the City allocates a portion toward improvement of City Parks. Source Of Funds The source of funds for the above-referenced future park facilities will be from several different sources, including CFD No. 1, Park-In-Lieu fees, and Public Facilities Fees. Financing Guarantee Payment of Park-In-Lieu Fees and Public Facilities Fees, and fees associated with CFD No. 1, satisfies the financing guarantee for construction of the necessary parks within the Park District No. 1. ZONE 8 LOCAL FACIUTIES MANAGEMENT PLAN 9 FINANCING PLAN C S. DRAINAGE FACILITIES Drainage Financing Matrix Zones Drainage Facilities Amount 42" storm drain line under 200LF Cannon Rd. Desiltation basin at Cannon 1 Rd.@PAD 36" storm drain pipe 1500LF throughPAH 36" storm drain pipe 700LF through PAD Desiltation basin Cannon 1 Rd.@PAD 24" storm drain pipe 3200LF throughPAJ Two 18" storm drain lines 600LF through PAJ Desil ta lion basin at east 1 boundary PA J · 54" Faraday Ave. storm 2000LF drain trunk. 18" storm drain line PA N 2400LF to Faraday Ave. Total Drainage Facility Costs Funding Esl Options Cost Timing 1st $24,000 Concurrent Developer w /Development $50,000 Concurrent Developer w /Development $110,000 Concurrent Developer w /Development $50,000 Concurrent Developer w /Development $50,000 Concurrent Developer w /Development $150,000 Concurrent Developer w /Development $25,000 Concurrent Developer w /Development $50,000 Concurrent Developer w /Development $220,000 Concurrent City w/Faraday Ave. $90,000 Concurrent Developer w I Development $845,000 (1) City Drainage Area Fee funds in con1unction with Faraday Ave. construction Source Of Funds 2nd 3rd Notes (1) Prior to approval of any Development Permit within Zone 8, the Developer shall . pay the current drainage area fee established at the time of issuance of a Development Permit. Financing Guarantee Prior to the recordation of a final map, these facilities must be constructed, or an acceptable security instrument, such as performance bonding shall be provided to the City, or an improvement agreement shall be executed. ZONE B LOCAL FACIUTIES MANAGEMENT PLAN 10 FINANCING PLAN C 6. CIRCULATION Circulation Facility Zones A. Cannon Road Cannon Road West; ECR to Existing terminus at Lego Drive Estimated Cost: $20 million Source Of Funds: Carlsbad CFD No. 1 /Transnet/BTD No. 3 Developers fund frontage improvements. Finance Guarantee: Participation in CFD No. 1 and BTD No. 3 Developer bonding for frontage improvements Reimbursement: Reimbursement to developer of qualifying improvements constructed by them. Estimated Cost Estimated cost is obtained from City of Carlsbad Capital Improvement Program. Source Of Funds Cannon Road, including the Macario Canyon Bridge and the Agua Hedionda Creek Bridge, is planned to be funded through four main sources as follows: • $5.6 million funding through Bridge and Thoroughfare District No. 3, which has been created. Funded by property owners within the District boundaries. • $6.5 million funding through funds collected through CFD No. 1. • $4.2 million funding through a State of California Transnet-Highway funding grant. • '$2.0 million funding through developer funding of frontage improvements. Reimbursement to developers of qualifying developer-fronted Cannon Road improvements will occur, subject to reimbursement agreements that may be approved by the City Council. Finance Guarantee Though financing for this facility is in place, cash flow projections from the BTD may be inadequate to guarantee construction concurrent with need. Therefore the developer must enter into an agreement with the City to front the construction cost for the cash flow gap and receive reimbursement from proceeds of the BTD as property within the District develops. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN 11 FINANCING PLAN Circulation Facility Zones B. Intersection Improvements Estimated Cost: Source Of Funds: Finance Guarantee: Reimbursement: Estimated Cost Cannon Road / El Camino Real Intersection $1.16 million Traffic Impact Fee fund Developer of Area E to bond and construct. Reimbursement through TIF. Reimbursement to developer of qualifying improvements constructed by them. Estimated cost is obtained from City of Carlsbad FY 1998-99 Capital Improvement Program. Source Of Funds Developer funded with reimbursement from Traffic Impact Fee Program. Finance Guarantee The required Traffic Impact Fee will be paid upon issuance of all future building permits within Zone 8. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN 12 FINANCING PLAN C Circulation Facility Zones C. Traffic Signal Estimated Cost Source Of Funds: Finance Guarantee: Reimbursement: Estimated Cost Cannon Road / Frost SL Intersection $180,000 Developer funded (PFF) Developer of Area E to bond and construct. Reimbursement to developer of qualifying improvements constructed by them. Estimated cost is obtained from developer sources. Source Of Funds Funding for this improvement will be provided by the developer of Area E. Finance Guarantee Financing guarantee will be via bonding through the Area E Subdivision Improvement Agreements. ZONE8LOCALFACILITIES MANAGEMENT PLAN 13 FINANCING PLAN C Circulation Facllity Zones D. Faraday Avenue Estimated Cost: Source Of Funds: Finance Guarantee: Reimbursement: Facility Faraday Ave. extension from existing westerly tenninus to Cannon Road $3.5 million CFDNo.1 CFDNo.1 NA The Faraday Avenue extension is required by the LFMP in conjunction with the development of Veteran's Memorial Park. Estimated Cost The estimated cost for the road segment and intersection facility is obtained from the Adopted 1998-99 Capital Improvement Program. Source Of Funds Funding of the extension roadway will be through CFD No. 1 funds. Finance Guarantee CFO No. 1 has been established and funding is ongoing. ZONESLOCALFACILITIES MANAGEMENT PLAN 14 FINANCING PLAN C C C Circulation Facility Zones E. Park Drive Estimated Cost: Source Of Funds: Finance Guarantee: Reimbursement: Source Of Funds Park Drive widening along Zone 8 frontage $250,000 Developer Bonding in conjunction with approval of Area A development This facility will be funded and constructed by the developer of Area A of Zone 8 Finance Guarantee Bonding in conjunction with approval of a development permit for Area A of Zone 8. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN 15 FINANCING PLAN C C Circulation Facility Zone 8 F. Traffic Signal Estimated Cost: Source Of Funds: Finance Guarantee: Reimbursement: Source Of Funds Traffic Signal; Cannon Road I Faraday Avenue $110,000 Public Facilities Fees City funding through Public Facilities Fee funds. In 1998-99 CIP. Reimbursement of qualifying expenditures to developers if constructed by them. This improvement will be funded through the City Public Facilities Fee account. Finance Guarantee City Public Facilities Fees funds. Reimbursement If the facility is constructed by the Zone 8 developer, the developer shall be reimbursed for qualifying expenditures from the City Public Facilities Fees fund, subject to City Council approval. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN 16 FINANCING PLAN _______________ ... _. ·----------------- C r C 7. FIRE FACILITIES Facility None is required. There are no Special Conditions contained in the Zone 8 LFMP. Source Of Funds None is required Financing Guarantee None is required. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN FfNANCfNG PLAN · 17 C C 8. OPEN SPACE FACILITIES Facility None is required. There are no Special Conditions contained in the Zone 8 LFMP. According to the Citywide Facilities and Improvement Plan, Zone 8 is dentified as already in compliance with the adopted performance standard. Therefore, no further analysis is required pertaining to open space. Source Of Funds None is required. Financing Guarantee None is required. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN FINANCING PLAN 18 ' C C 9. SCHOOL FACILITIES Facility The following Special Conditions are contained in the Zone 8 LFMP: Prior to the recordation of any residential final map, issuance of grading permit or building permit, whichever occurs first, in Zone 8, an agreement shall be entered into between Carlsbad Unified School District and the affected property owner(s) that shall provide for the following: 1. The deeding of an acceptable school site to the Carlsbad Unified School District if it is determined by the District a school within Zone 8 is warranted. 2. A financing plan approved by the City and Carlsbad Unified school District guaranteeing the construction of necessary elementary school facilities in Zone 8 pursuant to condition #1. If any reimbursements and/ or school fee credits are to be given, the school agreement/ financing plan shall provide a mechanism to do so. School Agreement A Carlsbad Unified School District School Facilities Mitigation Agreement between the Kelly Ranch developer and the Carlsbad Unified School District was executed on November 20, 1997, which provides that a school site will not be necessary within Zone 8, and that annexation of the property into Carlsbad Unified CFD No. 3 will satisfy the funding of school facilities. This agreement is in compliance with the LFMP condition which requires deeding of a school site if warranted. Source of Funds School facilities will be funded through the collection of funds through school facilities CFD No. 3. Financing Guarantee The Kelly Ranch property has annexed into CPD No. 3, and as a result, financing of school facilities is.guaranteed. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN 19 FINANCING PLAN C 10. SEWER FA□LITIES Sewer Facilities Financing Matrix Zones Est. Sewer Facilities Amount Cost 21" -24" sewer trunk 2SOOLF $200,000 gravity line in Cannon Rd. @PAE Temporary 4" trunk . 2700LF $60,000 pressure line to NAHTL 21" -24" sewer trunk 3000 LF $240,000 gravity line in Cannon Rd. @PADandPAG Interim pump station 1 $110,000 24" -36" SAHTI line off-site 800LF $160,000 8" sewer mains 4000LF $100,000 24" sewer trunk gravity line 3500LF $300,000 in Farad av Ave. SAHi permanent pump 1 $1,200,000 station Total Sewer Facility $2,370,000 Costs (1) City Sewer Fee funds. Timin2 Concurrent w /Development Concurrent w /Development Concurrent w /Development Concurrent w /Develooment Concurrent w /Development Concurrent w /Development Concurrent w /Development Concurrent w /Development (2) City Sewer Fee funds in conjunction with Faraday Ave. construction. Facility Funding Options 1st 2nd Developer Developer Developer Developer City Developer City City The proposed Zone 8 LFMP Amendment contains the following special conditions relative to sewer facilities: Special Conditions (Except for Planning Areas "A" and "C") are as follows: 3rd a. Prior to tl=te reeordation of any final map, issuaftee of grading permit or bui-ldiftg permit, wl=tiche .. ,cr occurs first ift Zofte 8, a financing program guaranteeing the construction of the South l'..gua Hedionda Interceptor from IU Camino R:eal to the Vista Carlsbad Interceptor m1::1st be appro ... •ed by the City:- b. Prior to the issuance of any building permits for new devel~pment in Zone 8 the City Engineer shall make a finding that adequate capacity exists within the NAHi Trunk Line and the appropriate facilities have been installed (including pump station) to direct sewage into the NAHi Line, consistent with this LFMP Amendment, to accommodate such building permits. In the event that this finding cannot be made, the City Engineer Notes (1) (2) (1) ZONE 8 LOCAL FACIUTIES MANAGEMENT PLAN FINANCING PLAN 20 C C will not allow issuance of the building permits unless the South Agua Hedionda Interceptor will be in place and operational to serve the ReW subject resideRtial development within Zone 8. c. Prior to the recordation of any final map, issuance of grading permits or building permits, whichever occurs first in Zone 8, a financing program guaranteeing the construction of the necessary sewer collection system consistent with this LFMP Amendment, to serve the proposed development must be approved by the City. Source Of Funds All Zone 8 development shall privately fund sewer facilities. In addition, prior to approval of any development permit within Zone 8, the Developer shall pay the required sewer fees to the Carlsbad Municipal Water District. Financing Guarantee The primary regional facilitiy within Zone 8 is the South Agua Hedionda Sewer Trunk Line. The developers shall pay Sewer Fees and bond for development improvements. ZONE 8 LOCAL FACILITIES MANAGEMENT PLAN 21 FINANCING PLAN C 11. WATER FACILITIES Water Facilities Financing Matrix Zones Est. Water Facilities Amount Cost On-site 8"-14" water 25000LF $800,000 mains, valves, reducing stations 12" water distribution line 3200LF $110,000 in Faraday Ave. Total Water Facility $910,000 Costs Funding Options Timing 1st Concurrent Developer w /Development Concurrent City w /Development (1) City Water Fee funds m conJunction with Faraday Ave. construction. Source Of Funds 2nd 3rd Notes (1) Prior to approval of any Development Permit within Zone 8, the Developer shall pay the required water fees to the Carlsbad Municipal Water District. Financing Guarantee Prior to the recordation of final map for Zone 8, this facility shall be constructed or an improvement agreement shall be executed consistent with the conditions of approval of and subject to the approval of the city engineer. The improvement Agreement shall be in accordance with Section 66462 of the Subdivision Map Act and Section 20.16.060 of the Carlsbad Municipal Code. Said improvement agreement shall be secured with one of the following forms of security as described in Section 21.16.070 of the Carlsbad Municipal Code: surety bonds, cash, irrevocable instrument of credit or letter of credit, acceptable to the Finance Director and City Attorney. ZONE 8 LOCAL FACIUTIES MANAGEMENT PLAN 22 FINANCING PLAN