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INTRODUCTION A. Purpose for Inclusion of the Preserve Area in the Habitat Management Plan The proposed project on the Muroya property is an approximately 11.5-acre residential development within the approximately 20-acre property. The proposed preserve area of the project, a total of 8.50 acres is proposed to provide mitigation for direct impacts to the habitat on site and to be included in the assembly of the Carlsbad Habitat Management Plan (HMP; City of Carlsbad 1999, finalized 2004) preserve. This Preserve Management Plan (PMP) has been prepared for the preserved open space areas (preserve) within the Muroya project site (Figures 1 and 2). The Muroya project was approved and mitigation identified in the Mitigated Negative Declaration (State Clearinghouse 2010021061; City of Carlsbad, CA 2009). The project is identified under the following application numbers: GPA 06-09/AC 06-08/LCPA 06-09/SP 203D/CT 06-27. The City of Carlsbad is a member of the North County Multiple Habitat Conservation Plan (MHCP; San Diego Association of Governments 2001) and has adopted an HMP (Habitat Management Plan) which is a subarea plan under the MHCP. The MHCP is a comprehensive, multiple jurisdictional planning tool designed to create, manage, and monitor an ecosystem preserve in northwestern San Diego County. The HMP is a citywide program with the purpose of preserving the diversity of species and habitats as well as sensitive biological resources while allowing for development that is consistent with City plans. The objectives of the HMP are to develop a plan that conserves the full range of vegetation types with the focus on rare species and habitat; conserves areas capable of supporting covered species in perpetuity; and maintains functional wildlife corridors and habitat linkages. Under the HMP, a portion of the project area, as well as surrounding lands, are within a Focused Planning Area (FPA) of the City. FPA boundaries were created based on the existing distribution of vegetation communities and sensitive species. The FPAs were further broken down into HMP cores, linkages and Special Resource Areas. The Muroya property is located within the Local Facilities Management Zone 20 and is designated as a Standards Area in the HMP. It is located approximately in the central portion of Linkage Area F which is part of a stepping stone linkage connecting Core Areas 4, 6 and 8 and contains significant amounts of coastal sage scrub acting as a corridor for movement for the

This is the seventh annual HMP summary report, covering the period of November 1, 2010 to October 31, 2011. This report summarizes the preserve status, implementation activities, and preserve gains and losses that have occurred during the current reporting period. Highlights of HMP activities are summarized below. Current Status of Preserves The existing preserves continued to be managed, monitored, and/or maintained during the reporting period. Established private and City‐owned Hardline Preserves were managed and monitored in accordance with their approved Preserve Management Plans; California Department of Fish and Game (CDFG) preserves were managed subject to available funding and resources; and pre‐existing natural open space areas were maintained according to their respective Open Space Easements, if applicable. Several future preserves made progress towards full management and monitoring during the reporting period, namely: Cantarini, Carlsbad Raceway, Dos Colinas, Manzanita Apartments, Muroya, Poinsettia Place, and Quarry Creek. Descriptions of the different categories of preserves and details of the progress towards preserve establishment during the reporting period are contained in Section 1.3. City Mitigation Parcel (Lake Calavera Preserve) A total of 1.7 acres were debited during the reporting period; cumulative debits to date are 84.5 acres. A total of 171.5 acres (credits) remain. Carlsbad Gnatcatcher Core Area Obligation At the start of the reporting period, the remaining Core Area obligation consisted of (1) acquisition of 43.02 acres of occupied coastal sage scrub habitat, and (2) reimbursement for 50.13 acres Core Area habitat previously purchased by Lennar Corporation (and currently managed). There were two highlights during this reporting period: (1) the City met its first funding obligation of a four‐year agreement to fund an endowment on the Perkins property, owned by Center for Natural Lands Management, bringing the remaining Core Area obligation to 35.49 acres, and (2) the City purchased the 50.13 acres of conservation credit from Lennar. E‐2 Annual Report for the Carlsbad HMP, Year 7 June 4, 2012 Land Acquisitions There were no land acquisitions inside of the HMP Planning Area during the reporting period. Habitat Gains and Losses There were no habitat gains or losses inside of the preserve system during the current reporting period. Rough Step Preserve Assembly The rough step policy stat