Loading...
HomeMy WebLinkAboutT-5148 - Agreement/Covenant - 3/2/2005 J City Of PUBLIC WORKS DEPARTMENT 2600 Fresno Street Fresno, California 93721-3616 (559) 621-8650 P.W. File No. 10626 SUBDIVISION AGREEMENT FOR TRACT NO. 5148 Subdivision Agreement Tract No. 5148 Page 2 THIS AGREEMENT is made this 3e1%day of ,2004, by and between the City of Fresno, a Municipal Corporation, hereinafter designated and called the "City," and Lennar Fresno, Inc., a California Corporation„ hereinafter designated and called the "Subdivider,"without regard for number or Gender. RECITALS A. The Subdivider has presented to the City a certain final map of a proposed subdivision of land owned by the Subdivider and located within the corporate limits of the City known and described as Tract No. 5148 (hereinafter referred to as the "Final Map" and incorporated into this agreement by this reference) and has requested the City to accept the dedications delineated and shown on the Final Map for the use and purposes specified thereon, and to otherwise approve the Final Map in order that the same may be recorded, as required by law. B. The City requires, as a condition precedent to the acceptance and approval of the Final Map, the dedication of such streets, highways and public places and easements as are delineated and shown on the Final Map, and deems the same as necessary for the public use, and also requires that any and all streets delineated and shown on the Final Map shall be improved by the construction and the installation of the improvements hereinafter specified. C. Section 12-1012 of the Municipal Code of the City of Fresno requires the Subdivider to enter into this Agreement with the City whereby Subdivider agrees to do, perform and complete the work and matters required as Conditions of Approval for Vesting Tentative Map No.5148/UGM dated July 30, 2003 issued by the City and any amendments thereto (hereinafter referred to as "Conditions of Approval" and incorporated into this agreement by this reference), hereinafter set forth in detail, within the time hereinafter mentioned, in consideration of the acceptance of the offers of dedication by the City of Fresno. Subdivision Agreement Tract No. 5148 Page 3 D. The Subdivider desires to constructthe improvements and develop the subdivision. E. The Subdivider hereby warrants that any and all parties having record title interest in the Final Map which may ripen into a fee have subordinated to this instrument and that all such instruments of subordination, if any, are attached hereto and made a part of this instrument. AGREEMENT In consideration of the acceptance of the offers of dedication of the streets, highways, public ways, easements and facilities as shown and delineated on the Final Map, and in consideration of finding of substantial compliance with said tentative map, it is mutually agreed and understood by and between the Subdivider and the City, and the Subdivider and the City do hereby mutually agree as follows: 1. The Subdivision is subject to the following: a. The work and improvements shall be performed hereinafter specified on or before May 1, 2005, except as noted in (b), (c), and (d) listed below. b. The Sidewalk and driveway approach construction for the interior lots of the subdivision shall be completed on or before May 1, 2006, (The developer may submit a written request to the Public Works Director for an extension of time to complete the construction of the sidewalk and driveway approaches). C. The Street Trees required for each lot shall be planted upon occupancy of each lot. The Subdivider shall notify the City Parks, Recreation and Community Services Department-Parks Division of the planting schedules. All species of Street Trees to be planted in the subdivision shall be as approved by the Parks Division. The responsibility to provide and plant, or to inspect the required Street Tree planting, shall be in accordance with the Street Trees fees paid in EXHIBIT"B," attached hereto and made a part of this Agreement and/or the "Statement of Covenants Affecting Land Development to Plant and Maintain Front Yard Trees for Tract No. 5148," per Resolution No. 98-129 requirements for 50 and 54-foot local street patterns. Subdivision Agreement Tract No. 5148 Page 4 d. The Issuance of building permits for any structure within the subdivision shall conform to the requirements of the prevailing Uniform Fire Code (UFC). The Subdivider's attention is particularly called to Part III, Article 9 of UFC relating to Fire Department access and water supply. No building permit shall be issued until all Fire Department access and fire fighting water supply requirements have been met. No occupancy permit shall be issued until all Fire Department requirements for occupancy have been met. The issuance of any occupancy permits by the City for dwellings located within said subdivision shall not be construed in any manner to constitute an acceptance and approval of any or all of the streets and improvements in the subdivision. e. No certificates of occupancy will be issued nor any human occupancy allowed for any building on any lot of the subdivision until permanent sanitary sewer and water service is determined to exist by the Director of Public Utilities Department. f. When a delay occurs due to unforeseen causes beyond the control and without the fault or negligence of the Subdivider, the time of completion may be extended for a period justified by the effect of such delay on the completion of the work. The Subdivider shall file a written request for a time extension with the Director of Public Works prior to the above noted date, who shall ascertain the facts and determine the extent of justifiable delays, if any. Extension of time for completion of improvements(including street trees planting) may be granted by the Public Works Director with an extension fee from the current Master Fee Schedule based upon the initial estimated total improvement cost. The Director of Public Works shall give the Subdivider written notice of his determination in writing, which shall be final and conclusive. 2. The work and improvements, more specifically shown on the referenced plans and made a part hereof, shall be done in accordance with the construction standards contained in the 2002 Edition of the City of Fresno Standard Specifications and Drawings (City Council Resolution No. 70-36 and Resolution No. 84-361) and any amendments thereto, (hereinafter referred to as "Public Works Standards") at the sole cost and expense of the Subdivider including all costs of engineering, inspection and testing. Subdivision Agreement Tract No. 5148 Page 5 3. The work and improvements are as follows: a. Construct all landmarks, monuments and lot corners required to locate land divisions shown on the Final Map. Pursuant to Section 66497 of the State Subdivision Map Act, prior to the City's final acceptance of the subdivision and release of securities, the Subdivider shall submit evidence to the City of Fresno of payment and receipt thereof by the Subdivider's engineer or surveyor for the final setting of all monuments required in the subdivision. b. All utility systems shall be installed underground. Subdivider's attention is directed to the installation of street lights in accordance with Resolution No. 78-522 or any amendments or modifications which may be adopted by Council prior to the actual installation of the lights. The Subdivider shall construct a complete underground street light system as approved by the City Engineer prior to final acceptance of the subdivision. Height, type, spacing, etc. of standards and luminaires shall be in accordance with Resolution Nos. 78-522 and 88-229 or any amendments or modifications which may be adopted by Council priorto the actual installation of the lights and shall be approved by the City Engineer. C. Water main extensions and services shall be provided in accordance with applicable provisions of Chapter 14, Article 1 of the Fresno Municipal Code and all applicable charges shall apply. d. Sanitary sewer extensions and services shall be provided in accordance with applicable provisions of Chapter 9, Article 5 of the Fresno Municipal Code and all applicable charges shall apply. e. Lot drainage shall be in accordance with Section 13-120.3315 ofthe Fresno Municipal Code. f. All "Dead-End" Streets created by this subdivision shall be barricaded in accordance with Public Works Standards within seven (7)days from the time said streets are surfaced, or as directed by the City Engineer. g. Any temporary storm water retention basins constructed or enlarged to serve this tract shall be fenced in accordance with Public Works Standards within seven (7)days from the time said basins become operational,or as directed by the City Engineer. Subdivision Agreement Tract No. 5148 Page 6 h. Wet-Ties shall be in accordance Sections 14-107 and 14-111 of the Fresno Municipal Code. The amounts identified below as "Wet-Tie Charges" are estimates only and serve as a deposit to cover the actual cost of construction. Should the actual construction cost be less than the deposit, the Subdivider shall be refunded the excess. Should the actual construction cost be greater than the deposit, the Subdivider shall be billed by the City of Fresno for the difference and shall be directly responsible for payment. i. The Subdivider shall install the fencing/walls, landscaping and irrigation system, in accordance with the approved improvement plans (i.e., Landscape and Irrigation Plans, Grading Plans), within the Landscape Easement area required in the Conditions of Approval and delineated on the Final Map. The Subdivider has elected to satisfy Subdivider's obligation to maintain the landscaping and irrigation systems within certain landscape easement area by agreeing to annex the Subdivision into the City's Community Facilities District No. 2 (CFD-2) and agreeing to maintain such landscaping and irrigation systems pursuant to a covenant until the Subdivision is duly annexed into the CFD-2 and such CFD-2 is responsible for the maintenance thereafter. The Subdivider shall provide each prospective purchaser, a Notice of Special Tax in accordance with the provisions of Section 53341.5 of the California Government Code. The improvement plans for such landscaping and irrigation system shall be prepared by a licensed Landscape Architect, certified irrigation designer or other persons with landscaping and irrigation design expertise acceptable to the Planning and Development Director. j. Perform and construct all work shown on the following construction plans and any amendments thereto : i. City Drawing Nos:[10-C-8527 through 1 OC-8529 with Water Job No. 4148 (3 sheets) inclusive, 15-C-11587 through 15-C-11600 (15 sheets) inclusive, Drawing No. 4-C-771 (1 sheet) ], unless specifically omitted herein. Install and complete all other street improvements required by Section 12-1012 of the Fresno Municipal Code in accordance with the Public Works Standards and the construction plans. Subdivision Agreement Tract No. 5148 Page 7 k. Prior to approval of the Final Map by the City, the Subdivider shall pay to the City and/or execute a covenant to defer certain impact fees due which are eligible to be deferred by relevant FMC provisions, the total fees and charges due as a condition of Final Map approval. The total fees and charges are more particularly itemized and made a part of this agreement in the attached Exhibit"B." I. In connection with assigning figures set forth in Exhibits"A"and"B,"the City has made its best faith efforts at predicting the amounts to be credited as reimbursements for improvements that will benefit other properties. Because the subject improvements have not been completed at the time of execution of this agreement, the actual cost of construction is not yet known. Some degree of reasonable estimation is incorporated into the calculations. Subdivider agrees that these figures represent City's best estimates only and that they are subject to fluctuation following calculation of actual construction costs after improvement completion and acceptance. It is further subject to Subdivider's submission and City review of a financial accounting which sets forth those actual costs, and the application, by City, of all relevant Fresno Municipal Code provisions which relate to the Subdivider's payment of fees and reimbursement thereto. This would include any pertinent provisions contained within City's Master Fee Schedule which would also apply to the payment of fees or reimbursements . 4. It is agreed that the City shall inspect all work. All of the work and improvements and materials shall be done, performed and installed in strict accordance with the approved construction plans for said work on file with the City Engineer and the Public Works Standards, which said construction plans and Public Works Standards are hereby referred to and adopted and made a part of this Agreement. In case there are not any Public Works Standards for any of said work, it is agreed that the same shall be done and performed in accordance with the standards and specifications of the State of California, Division of Highways. All of said work and improvements and materials shall be done, performed and installed under the inspection of and to the satisfaction of the City Engineer. Subdivision Agreement Tract No. 5148 Page 8 5. Prior to the approval by the Fresno City Council of the Final Map, the Subdivider shall furnish to the City the following improvement securities in the amounts more particularly itemized in Exhibit A. Bonds shall be by one or more duly authorized corporate sureties licenced to do business in California subject to the approval of the City and on forms furnished by the City. a. PERFORMANCE SECURITY. Total amount to equal to 100% of the Final Cost Estimated to be conditioned upon the faithful performance of this Agreement. L 95% of the final Cost Estimate shall be in the form of a bond or irrevocable instrument of credit; and ii. 5% of the final Cost Estimate shall be in cash or a certificate of deposit. b. PAYMENT SECURITY. Total amount to equal to 50% of the Final Cost Estimated to secure payment to all contractors and subcontractors performing work on said improvements and all persons furnishing labor, materials or equipment to them for said improvements. Payment Security shall be in the form of a bond or irrevocable instrument of credit. C. Any and all other improvement security as required by Section 12-1016 of the Fresno Municipal Code. 6. On acceptance of the required work by the City Engineer, a warranty security shall be furnished to or retained by the City, in the minimum amount identified in said Exhibit A, for guarantee and warranty of the work for a period of one(1)year following acceptance against any defective work or labor done or defective materials furnished. In accordance with Section 12-1016 of the Fresno Municipal Code, said warranty security shall be in the form of cash or a Certificate of Deposit. The warranty security shall be returned to the Subdivider, less any amount required to be used for fulfillment of the warranty one (1) year after final acceptance of the subdivision improvement. Subdivision Agreement Tract No. 5148 Page 9 7. This Agreement shall in no way be construed as a grant by the City of any rights to the Subdivider to trespass upon land rightfully in the possession of, or owned by, another, whether such land be privately or publicly owned. 8. The City shall not be liable to the Subdivider or to any other person, firm or corporation whatsoever, for any injury or damage that may result to any person or property by or from any cause whatsoever in, on or about the subdivision of said land covered by this Agreement,or any part thereof. The Subdivider hereby releases and agrees to indemnify,defend, and save the City harmless from and against any and all injuries to and deaths of persons, and all claims, demands, costs, loss, damage and liability, howsoever same may be caused, resulting directly or indirectly from the performance of any or all work to be done in and upon the street rights-of-way in said subdivision and upon the premises adjacent thereto pursuant to this Agreement, and also from all injuries to and deaths of persons, and all claims, demands, costs, loss, damage and liability, howsoever same may be caused, either directly or indirectly made or suffered by the Subdivider, the Subdivider's agents, employees and subcontractors, while engaged in the performance of said work. The Subdivider further agrees that the use for any purpose and by any person of any and all of the streets and improvements hereinbefore specified, shall be at the sole and exclusive risk of the Subdivider at all times prior to final acceptance by the City of the completed street and other improvements thereon and therein. 9. The Subdivider shall remedy any defective work or labor or any defective materials and pay for any damage to other work resulting therefrom which shall occur within a period of one (1) year from the date of acceptance of the work. 10. The Subdivider and his subcontractors shall pay for any materials, provisions, and other supplies used in, upon,for,or about the performance of the work contracted to be done,and for any work or labor thereon of any kind, and for amounts due under the Unemployment Insurance Act of the State of California, with respect to such work or labor, and shall file with the City pursuant to Section 3800 of the Labor Code, a Certificate of Workers' Compensation and shall maintain a valid policy of Workers' Compensation Insurance for the duration of the period of construction. Subdivision Agreement Tract No. 5148 Page 10 11. Initial soils compaction testing for public utility improvement work within the right-of-way shall be ordered by and paid for by the City of Fresno. Public utility improvements shall include street surface improvements, sanitary and storm sewers, City water facilities and irrigation lines. All other compaction testing for private utility installations shall be paid for by the Subdivider or his agent. Compaction testing performed for determination of compliance with Public Works Standards shall at all times remain under the control and direction of the City Engineer who shall determine locations and depths to be tested. Any compaction tests failing to meet the City's requirements shall be reordered by the City and paid for by the Subdivider or his agent. Billing for the private utility tests and any required retesting due to failures shall be made directly to the Subdivider or his agent. 12. The Subdivider shall comply with Street, Plumbing, Building, Electrical, Zoning Codes and any other codes of the City of Fresno. 13. It shall be the responsibility of the Subdivider to coordinate all work done by his contractors and subcontractors, such as scheduling the sequence of operations and the determination of liability if one operation delays another. In no case shall representatives of the City of Fresno be placed in the position of making decisions that are the responsibility of the Subdivider. It shall further be the responsibility of the Subdivider to give the City Engineer written notice not less than two (2) working days in advance of the actual date on which work is to be started. Failure on the part of the Subdivider to notify the City Engineer may cause delay for which the Subdivider shall be solely responsible. 14. Whenever the Subdivider varies the period during which work is carried on each day, he shall give due notice to the City Engineer so that proper inspection may be provided. If Subdivider fails to duly notify City as herein required, any work done in the absence of the Engineer will be subject to rejection. The inspection of the work shall not relieve the Subdivider of any of his obligations to fulfill the Agreement as prescribed. Defective work shall be made good,and unsuitable materials may be rejected, notwithstanding the fact that such defective work and unsuitable materials have been previously overlooked by the Engineer or Inspector and accepted. Subdivision Agreement Tract No. 5148 Page 11 15. Any damage to the sewer system, concrete work or street paving that occurs after installation shall be made good to the satisfaction of the City Engineer by the Subdivider before release of bond, or final acceptance of completed work. 16. Adequate dust control shall be maintained by the Subdivider on all streets within and without the subdivision on which work is required to be done under this Agreement from the time work is first commenced in the subdivision until the paving of the streets is completed. "Adequate dust control" as used herein shall mean the sprinkling of the streets with water or the laying of an approved dust palliative thereon with sufficient frequency to prevent the scattering of dust by wind or the activity of vehicles and equipment onto any street area or private property adjacent to the subdivision. Whenever in the opinion of the City Engineer adequate dust control is not being maintained on any street or streets as required by this paragraph, the City Engineer shall give notice to the Subdivider to comply with the provisions of this paragraph forthwith. Such notice may be personally served upon the Subdivider or, if the Subdivider is not an individual, upon any person who has signed this Agreement on behalf of the Subdivider or, at the election of the City Engineer, such notice may be mailed to the Subdivider at his address on file with the City Engineer. If,within twenty-four(24)hours after such personal service of such notice or within forty-eight (48) hours after the mailing thereof as herein provided, the Subdivider shall not have commenced to maintain adequate dust control or shall at any time thereafter fail to maintain adequate dust control, the City Engineer may, without further notice of any kind, cause any such street or streets to be sprinkled or oiled, as he may deem advisable to eliminate the scattering of dust, by equipment and personnel of City or by contract as the City Engineer shall determine, and the Subdivider agrees to pay to City forthwith, upon receipt of billing therefor, the entire cost to City of such sprinkling or treated. When the surfacing on any existing street is disturbed, this surfacing shall be replaced with temporary or permanent surfacing within fourteen (14) calendar days, and the roadway shall be maintained in a safe and passable condition at all times between the commencement and final completion, and adequate dust control shall be maintained during these operations. Subdivision Agreement Tract No. 5148 Page 12 17. ' Concrete curbs and gutters, the sanitary sewer system and house connections, together with water mains, gas mains, and their respective service connections, shall be completed in the streets and alleys before starting the street and alley surfacing. 18. Time is of the essence of this Agreement, and the same shall bind and inure to the benefit of the parties hereto, their successors and assigns. 19. No assignment of this Agreement or of any duty or obligation of performance hereunder shall be made in whole or in part by the Subdivider without the written consent of City. Subdivision Agreement Tract No. 5148 Page 13 The parties have executed this Agreement on the day and year first above written. CITY OF FRESNO, SUBDIVIDER a Municipal Corporation Lennar Fresno, Inc., JON R. RUIZ, DIRECTOR A California Corporation PUBLIC WORKS DEPARTMENT By: A14 07, LZ�) BY6�AL. Michael T. Kirn, P.E., Assistant Director Steve Lutton, Vice-President ATTEST: REBECCA E. KLISCH, CMC CITY CLERK (Attach Notary Acknowledgment) By. - _ Deputy � 4 aC a ' APPROVED AS TO FORM: HILDA CANTO MONTOY City Attorney By: 6CC: �A . Deputy FORM Subdivision Agreement v10-03-03 J.B.-Feb 5,2004 ALL PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA } COUNTY OF Fresno } On March 2, 2004 before me, Tauna Rothermel , personally appeared STEVE LUTTON -personally known to me ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), an that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. TnuNA+zorrlERMEL Commission#1351179 Notary Public-Calftmia Fresno County My Comm.Elim Apr 13.2006 "gn e (NOTARY SEAL) EXHIBIT A Subdivision Agreement for Tract 5148 A. APPROVED PUBLIC IMPROVEMENT CONSTRUCTION COST ESTIMATES Water System Construction Cost Estimate $31,175 Well Construction Cost Estimate $0 Sewer System Construction Cost Estimate $28,214 Street Construction Cost Estimate $398,400 Final Cost Estimate(for Inspection Fee purposes) $457,789 81 Landmarks, Monuments, Lot& Block Corners($50/ea) $4,050 Sub-Total (for bonding purposes) $461,839 Construction Contingency(10%) $46,184 TOTAL COST ESTIMATE* (for improvement securities purposes) $508,023 $508,000 *All amounts rounded to nearest$1000 B. IMPROVEMENT SECURITY REQUIREMENTS (due with subdivision agreement) Performance Security (100%of Total Cost Estimate) 95% of amount shall be in the form of a bond by duly authorized corporate sureties or irrevocable letter of credit $483,000 5% of amount shall be in cash or a Certificate of Deposit $25,000 Payment Security (50% of Total Cost Estimate) 100% of amount shall be in the form of a bond by duly authorized corporate sureties or irrevocable letter of credit $254,000 Faithful Performance Security to Guarantee Completion of Plans Street Plans $0 Utility Plans (Sewer.Water, Storm Water) $0 Street Light Plans $0 Landscaping/IrrigationfWalls $0 100% of amount shall be in cash or a Certificate of Deposit I $0 C. WARRANTY SECURITY REQUIREMENT*(due as condition of acceptance of the work) 5% of first$50,000 of the Total Cost Estimate $3,000 3% of next$50,000 $2,000 1% of next$400,000 $4,000 0.5%of amount over$500,000 $0 Minimum amount $9,000 EXHIBIT A v4/28/00 Prepared By: Rick Date: 02/23/04 Print Date:02/23/04 11:26:52 AM Pagel of 1 EXHIBIT B Subdivision Agreement for T-5148 NET AMOUNT AMOUNT EXTENSION DUE DEFERRED A. MISCELLANEOUS FEES&CHARGES 1. INSPECTION FEE $0 Final Cost Estimate<$10K na (11.52%;$600 minimum fee) $457,789 Final Cost Estimate>$10K<$500K $19 389.14 ($4836+3.25%of amount over$10K) $0 Final Cost Estimate over$500K na ($20,793+4.1%of amount over$500K) Less Inspection Fees paid with Early Sewer/Water Construction Agreement Less Inspection Fees paid with Early Street Construction Agreement Inspection Fee 11 $19,3-89--14 $19,389.14 2. MONUMENT CHECK FEE 35 Lots and Outlots @ $30.00 per Lot $1,050.00 $1,050.00 (Min$200) 3. STREET SIGNS 02 Street Name Sign sets @ $173.00 per set $346.00 $346.00 0 Warning/Regulatory signs @ $77.00 sign na na 4. STREET TREES �p City installed(15-gallon)Street Trees @ $129.00 per Tree na na 34 Inspection Fee(when planted by subdivider) @ $30.00 per Tree $1,020.00 $1,020.00 OTrees by Covenant(Resolution 98-129;2 trees/Lot fronting 50'streets) 5. STREET RIGHTS OF WAY ACQUISITION/CONSTRUCTION CHARGE per FMC 11-226(f)(6 Lum Sum Charge as established by Public Works Director na nal 6. LANDSCAPE MAINTENANCE DISTRICT FEES(CFD-2) 35 Lots(anticipated maintenance cost) @ $173.12 per Lot $6,059.20 Lots(Incidental expenses:legal fees, per Lot publications,mailings,engineering, ($1,500 35 assessment district proceedings @ $0.00 min) $2 300.00 Lum Sum Landscape area Field Inspection Fee-Parks @ $305.00 LS 1 $305.00 Total 1 $8,664.201 $8,664.20 $183.12 Estimated assessment per Lot(information only) 7. IRRIGATION PIPELINE(one-time maintenance fee) Lineal Feet @ $5.00 per LF na na 8. URBAN RESERVE 41 CORRIDOR NEXUS STUDY CONTRIBUTION Freeway 41/Friant Road/Herndon Corridor 0.0000 Adjusted Gross Acres @ $250.00 per AG Ac $0.00 $0.00 TOTAL MISCELLANEOUS FEES&CHARGES $30,469.34 $30,469.34 EXHIBIT B v11/01/01 Printed 02/25/04 3:01:45 PM Page 1 of 5 EXHIBIT B Subdivision Agreement for T-5148 NET AMOUNT AMOUNT EXTENSION DUE DEFERRED B. IMPACT FEES,CONSTRUCTION CREDITS&FEES TO BE DEFERRED 8.0000 Gross Acres 7.1692 Adjusted Gross Acres(AG Ac); excludes Area of Arterial&Collector Streets 35 Units(residential) R-1 Zoning u m Input"ugm"if within the Urban Growth Management Area or"no" 1. LOCAL DRAINAGE FEES AL FMFCD Drainage Area 7.5471 Acres per FMFCD @ $3,680 per Acre $27,773.00 Local Drainage Fee $27,773.00 $27,773.00 2. SEWER CONNECTION CHARGES (a)Lateral Sewer Charge Frontage: FW Shields Avenue 50,600 SF Frontage: N.Brunswick Avenue 60,000 SF Total Square Feet 110 600 SF 110,600 SF; sub-total Lateral Sewer Charge @ $0.10 per SF $11,060.00 Less estimated Lateral Sewer Charge Credits Lateral Sewer Charge $11,060.00 $0.00 $11,060.00 (b)Oversize Sewer Charge 22 UGM Reimbursement Area Frontage: W.Shields Avenue 50,600 SF Frontage: N.Brunswick Avenue 60,000 SF Total Square Feet 110,600 SF 110 600 SF;sub-total Oversize Sewer Charge @ $0.05 per SF $5 530.00 Less estimated Oversize Credits $0.00 Less estimated Overdepth Credits $0.00 Oversize Sewer Charge $5,530.00 $0.00 $5,530.00 (c)Trunk Sewer Charge Cornelia Trunk Sewer Service Area 351 Units @F_$419.00 per Unit $14 665-601 1 $14,665.00 (d)Wastewater Facilities Charge Fee to be paid at the rate in effect at time of issuance of building permit.The fee rate currently in effect is$2,119 per Unit(FMC 9-503-b) (e) Sewer Capacity Enhancement Charge na Trunk Sewer Service Area 35 Units @ OperUnitna nal ( Copper Avenue Sewer Lift Station Benefit Service Area Char 0 Units @ $650.00 per Unit na na EXHIBIT B v11/01101 Printed 02/25/04 3:01:47 PM Page 2 of 5 EXHIBIT B Subdivision Agreement for T-5148 NET AMOUNT AMOUNT EXTENSION DUE DEFERRED 3. WATER CONNECTION CHARGES (a)Time&Material Charges("Wet-Tie") 2003 1112 Estimate Number 4956 Water Job Number Estimated Deposit(FMC 14-111-f) $5,600.00 $5,600.00 (b1)Service Connection Charges 34 1 Meters to existing services @ $320.00 each $10,880.00 $0.00 1 $10,880.00 111-1/2"Meters to existing services @ $470.00 each $470 00 $0.00 $470.00 (162)Landscape Service Connection Charges 2 2"Services($1,010)&Meters($411) @ $1,421.00 each $2,842.00 $2,842.00 (c)Frontage Charge Frontage: W.Shields Avenue 506 LF Frontage: IN.Brunswick Avenue 600 LF Sub-Total Lineal Feet('/z rate) 1,106 LF 1,106 LF; sub-total Frontage Charge('/z rate) @ $3.25 per LF $3,594.50 Sub-Total Frontage Charge $3,594.50 Less estimated Frontage Charge Credits $0.00 Frontage Charge $3 594.50 $0.00 $3,594.50 (d Transmission Grid Main Charge B UGM Reimbursement Area 8.0000 Gross Acres @ $560.00 per Gr Acre $4,480.00 Less Estimated TGM Construction Credits $0.00 Transmission Grid Main Charge $4,480.00 $0.00 $4,480,001 (e)Transmission Grid Main Bond Debt Service Charge 8.0000 Gross Acres @ $243.00 per Gr Acre $1,944.00 Less Estimated TGM Bond Debt Service Charge Credits Transmission Grid Main Bond Debt Service Charge $1,944.00 $0.00 $1,944.00 (fLqqM Water Supply Fee 301s Supply Well Service Area 351 Living Units(residential) @ $442.00 per Unit $15,470.00 Less Estimated UGM Water Supply Fee Construction Credits $0.00 UGM Water Supply Fee15,470.00 $15,470.00 ( Well Head Treatment Fee 301 Well Head Treatment Service Area 35 1 Living Units(residential) @ $192.00 per Unit $6,720.00 Less Estimated Well Head Treatment Fee Construction Credits $0.00 Well Head Treatment Fee $6,720.00 $6,720.00 EXHIBIT B v11/01/01 Printed 02/25/04 3:58:19 PM Page 3 of 5 EXHIBIT B Subdivision Agreement for T-5148 NET AMOUNT AMOUNT EXTENSION DUE DEFERRED (h)Recharge Fee 301 Recharge Service Area 351 Living Units(residential) @ $0.00 per Unit (i)1994 Bond Debt Service Fee 301 1994 Bond Debt Service Fee Service Area 35 Living Units(residential) @ $60.00 per Unit $2 100.00 Less Estimated 1994 Bond Debt Service Fee Construction Credits $0.00 1994 Bond Debt Service Fee $2 100.00 $0.00 $2,100,001 4. URBAN GROWTH MANAGEMENT(UGM)FEES&CONSTRUCTION CREDITS (a)UGM FIRE STATION FEE 16 Fire Station Service Area 8.0000 Gross Acres @ $1,242.00 per Gr Acre $9,936.00 $0.00 1 $9,936,00 (b UGNEIGHBORHOOD PARK FEE 4 Neighborhood Park Service Area 8.0000 Gross Acres @ $1,230.00 per Gr Acre $9,840.00 $0.00 $9,840.00 (c)UGM MAJOR STREET CHARGE E-4 Major Street Zone 7.1692 Adjusted Gross Acres @ $2,435.00 per AG Ac $17 457.00 Less Estimated Major Street Charge Construction Credits $85,323.00 Major Street Charge 11 $0.00 $0A0 JPaid w/Credits (d)UGM MAJOR STREET BRIDGE CHARGE E-4 Major Street Bridge Zone 7.1692 Adjusted Gross Acres @ $135.00 per AG Ac $967.84 Less Estimated Major Street Bridge Charge Construction Credits $0.00 Major Street Bridge Charge $967.84 $0.2 $967.84 (e)UGM TRAFFIC SIGNAL CHARGE 7.1692 Adjusted Gross Acres @ $860.00 per AG Ac $6,165.51 Less Estimated Traffic Signal Charge Construction Credits Traffic Signal Charge $6,165.51 $0A0 I $6,165.51 ( UGM GRADE SEPARATION CHARGE Grade Separation Service Area 7.1692 Adjusted Gross Acres @ 0 per AG Ac na ( UGM TRUNK SEWER FEE Trunk Sewer Service Area 7.1692 Adjusted Gross Acres @ $0.00 per AG Ac na (h)OVERLAY SEWER SERVICE AREA Millbrook Overlay Service Area 7.1692 Adjusted Gross Acres @ $0.00 per AG Ac na EXHIBIT B A 1/O1/01 Printed 02/25/04 3:04:52 PM Page 4 of 5 EXHIBIT B Subdivision Agreement for T-5148 NET AMOUNT AMOUNT EXTENSION DUE DEFERRED Total Impact Fees&Charges $140,037.85 $73,070.00 $66 967.85 Note: EXTENSION total includes net results of construction credits SUMMARY TOTAL(A) MISCELLANEOUS FEES&CHARGES $30,469.34 TOTAL(B) IMPACT FEES&CHARGES $73,070.00 $66,967.85 TOTAL SUBDIVISION FEES and CHARGES DUE WITH AGREEMENT cash $103,539.34 EXHIBIT B A 1/01101 Printed 02/25/04 3:04:53 PM Page 5 of 5 7. 00 CD r c coo o CD O Al -o r o-n ru d wo RJ M N OJ. ^u 7y o z 0'3 - o p-3 / F z Ln 0> Ln Z / ru 3 p __.. o .. 4m % 1 W- o y.D o * wC> O cn rol A O � * a � o y•b � 0 0 a sA o R °� o C I - TH-DARTY CERTIFICATE NOT SUBJECT TO CHECK m � �mNDo Dc��-i xs h-3 x" m II. m 9 0 ➢ C 0 Vl mm D O 0 cNi�nocizoo o�g Ma (D ^ D 3 . {m 0flmm OpDDI ➢0 rt I - o o�O m W M W _ m m .. omm Scncn� mz H amDCD Vf (7p n�--Iz mmm= ->< n a�zrn mo� N m - --1 V1 mC]C� ➢zq D� _�0 te a' fT1 Da'o2�� O>z.= oo � H (D <�occi>z mono v� C N a D m N m v n z m z= G N O � W `t a nym a< M-a W O 0 m O O2o3�"i zoccim zz z F-I ri 9 C D m 0 m o D Zm2aln a DNa p W m n �m z Z<O o<m C-➢j D 1z, n . r ZG7mm mCy • - ca�iFzo_ o= .mac � D�mo�O m�m ZO D �. ( m ' oxpzoo oZm mam 7F X' D m D 0 a r O OT m i 1 M' �( --M Z"fC tS0 20 7,D�' Vl YY m o x m z> GZi ap�Z Z<C 9 YC" F"-1 ~ �omSm� X�D r Yf iC YC Fj � ' m�o=ae m' O ... 2�mNm Z-Im D ONXma�Z 0Zn ',r 7070 FLLyII .. zczm3 Ds➢ m rt. :F :: o a D o a n z C .. .. 2, 0 n /� m@➢ m a x c�c owr � h- z i .. S 00 m O - m m O Soc m >: O N ➢ zxo � KC) ' z D➢ m v m 0 S O<im D r m D 0a r O O X D a W O .. u S z Lo 1>1 C S m pro To � zmc� a - �zm n� - .. .. z Z r -< Z .. . zzEjc o2? ornm THIRD PARTY G B CAIAFORNI�, ANIS Taorr TROST CERTIFICATE OF DEPOSITADDENDUM Lennar Fresno Inc Fbo City of Fresno Account Number: 3090001913 7690 N Palm Ave Suite 101 Fresno CA 93711 Date Opened Certificate # Interest Plan Date Closed Opened By/Reviewed Original Amount Maturity Date Closed By 2004-03-08 1 1 Y ear Maryam Sedadi $25,000.00 March 8,2005 C B CALIFORNIA,I,.BANK Tacr TRI7CT TIME CERTIFICATE OF DEPOSIT AGREEMENT FOR TERMS OF 180 DAYS TO LESS THAN 2 YEARS Account Title & Mailing Account Number Lennar Fresno Inc 3090001913 Fbo City of Fresno 7690 N Palm Ave Suite 101 Certificate Number Fresno CA 93711 1 Deposit Amount Issue Date Maturity Date 25,000.00 3/8/2004 3/8/2005 Deposit Term Interest Credited Interest Compounded 12 Months l Months Daily Interest Paid By: Account Number (if applicable: Add on Interest Rate: .95% Annual Percentage Yield: .95% Interest Rate Tiers: $.00 .95% .95% $5,000.00 .95% .95% $10,000.00 .95% .95% $25,000.00 .95% .95% $50,000.00 .95% .95% $100,000.00 •95% .95% INTEREST RATE INFORMATION • Interest Rate is effective through the Maturity Date listed above. • Your Interest Rate and annual percentage yield will not change for the term of your deposit. • The Interest Rate on your Account may change at maturity. The Interest Rate assigned will be determined by the balance in your Account on the maturity date. • Interest will begin to accrue as of the Issue Date listed above. • We use the daily balance method to calculate interest on your Account on an interest accrual basis of 3651366 days. • The annual percentage yield assumes interest will remain on deposit until maturity. You must maintain the Deposit Amount to obtain the disclosed annual percentage yield. A withdrawal will reduce earnings. TRANSACTION LIMITATIONS • You must deposit $5,000.00 to open this Account. • No Additional deposits are allowed during the term of the Account. • After the Account matures, additional deposits are allowed ONLY during the grace period before the Account renews for another term. Any deposit made during the grace period will not affect the renewal interest rate established on the Account. maturity date. • You may not make withdrawals from your Account until the Maturity Date. In addition to the minimum required early withdrawal penalty as described on the reverse, we may impose a penalty consisting of 3 (Three) months simple interest if you withdraw any of the deposited funds before the Maturity Date. The penalty will be calculated using the interest rate in effect on the date your account was opened or renewed. • This Account will automatically renew at maturity. You will have 10 (Ten) calendar days (grace period) after the Maturity Date to withdraw funds without penalty. NON-TRANSFERABLE/NON-NEGOTIABLE Bond Number: 0874 5306 Premium: $3,381.00 Executed in Duplicate FAITHFUL PERFORMANCE BOND (Subdivision Agreement) WHEREAS, the City Council of the City of Fresno, State of California, and Lennar Fresno, Inc. (herein designated as "principal") have entered into an agreement whereby principal agrees to install and complete certain designated public improvements, which said agreement, dated 19 , and identified as project 5148 C-Brawley/Shields is hereby referred to and made a part hereof, and, WHEREAS, said principal is required under the terms of said agreement to furnish a bond for the faithful performance of said agreement. NOW, THEREFORE, we, the principal and Fidelity and Deposit* as surety, are held and firmly bound unto the City of Fresno, (hereinafter called "City"), in the penal sum of Four Hundred Eighty Three Thousand and no/100 dollars ($ 483,000.00 ) lawful money of the United States, for the payment of which sum well and truly be made, we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by these presents. The condition of this obligation is such that if the above bounded principal, his or it's heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect. As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by City in successfully enforcing such obligation, all to be taxed as costs and included in any judgement rendered. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations on this bond, and it *Company of Maryland does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications. Faithful Performance Bond (Subdivision Agreement) Page 2 In witness whereof, this instrument has been duly executed by the principal and surety above named, on March 4 , 2004 FIDELITY AND DEPOSIT COMPANY OF MARYLAND By: By: Patricia H. Brebner, Attorney-in-Fact Principal Address of Surety LENNAR FRESNO, INC. 801 North Brand Blvd. , Penthouse a California cor ora n Glendale, CA 91203 By: Da E=ns Vice President By: Dee Baker, Assistant Secretary Acknowledgement by attorney-in-fact must be attached. BONDFORM.DOC Revised 12/30/02 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State.of California County of Orange On March 5, 2004 before me, Dina Prints, personally appeared David Evans and. Dee Baker,. personally known to me to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacity, and that by their signatures on the instrument the person or the. entity upon behalf of which the person acted, executed the instrument. Witness my hand and icial. seal. DINAPR�NIY Commission# 1453610 / < r Notary PubiiC CoOtomia J orange County o My Comm Expires Nov 28,2007 OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER SIGNER IS REPRESENTING: David Evans —Vice President Lennar Fresno, Inc. Dee Baker- Assistant. Secretary Lennar Fresno, Inc. DESCRIPTON OF ATTACHED DOCUMENT Type of Document: Surety Bond No. 0874 5306 Number of Pages: Two (2) Date of Document: March 4, 2004 Signers (other than those named above): Patricia H. Brebner CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.5907 - State of California County of Orange On March 4, 2004 before me, Rhonda C.Abel,Notary Public , DATE NAME,TITLE OF OFFICER-E.G.,"JANE DOE,NOTARY PUBLIC" personally appeared Patricia H.Brebner , NAME(S)OF SIGNER(S) ® personally known to me -OR- ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. *- RHONDA C.ABEL LA� V COMM.# 1312777 SIGNATURE OF NOTARY Q- " NOTARY PUBLIC-CALIFORNIA G) `5 ORANGE COUNTY n p' COMM.EXP.AUG.9,2005" OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT TITLE(S) ❑ PARTNER(S) LIMITED GENERAL ® ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR NUMBER OF PAGES ❑ OTHER: SIGNER IS REPRESENTING: DATE OF DOCUMENT NAME OF PERSON(S)OR ENTITY(IES) SIGNER(S) OTHER THAN NAMED ABOVE S-4067/GEEF 2/98 ©1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184-Canoga Park,CA 91309-7184 Bond Number: 0874 5306 Premium: Included in Performance Bond Executed in Duplicate SUBDIVIDER'S PAYMENT BOND (Subdivision Agreement) WHEREAS, the City Council of the City of Fresno, State of California, and Lennar Fresno, Inc. (hereinafter designated as "principal") have entered into an agreement whereby principal agrees to install and complete certain designated public improvements, which said agreement, dated 19 , and identified as project 5148 C-Brawley/Shields is hereby referred to and made a part hereof; and, WHEREAS, under the terms of said agreement, principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City of Fresno to secure the claims to which reference is made in Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code of the State of California. NOW, THEREFORE, said principal and the undersigned as corporate surety, are held firmly bound unto the City of Fresno and all contractors, subcontractors, laborers, material men and other persons employed in the performance of the aforesaid agreement and referred to in the aforesaid Code of Civil Procedure in the sum of Two Hundred Fifty Four Thousand and no/100 dollars ($ 254,000.00 ), for materials furnished or labor thereon of any kind, or for amounts due the Unemployment Insurance Act with respect to such work or labor, that said surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable attorney's fees, incurred by City in successfully enforcing such obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgement therein rendered. It is hereby expressly stipulated and agreed that this bond shall inure to the benefit of any and all persons, companies and corporations entitled to file claims under Title 15 (commencing with Section 3082) of Part 4 of Division 3 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond. Should the condition of this bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect. The surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of said agreement or the specifications accompanying the same shall in any manner affect its obligations on this bond, and it does hereby waive notice of any such change, extension, alteration or addition. Subdivider's Payment Bond (Subdivision Agreement) Page 2 In witness whereof, this instrument has been duly executed by the principal and surety above named, on March 4 , 2004 FIDELITY AND DEPOSIT COMPANY OF MARYLAND By: By: Patricia H. Brebner, Attorney-in-Fact Principal Address of Surety LENNAR FRESNO, INC. 801 North Brand Blvd. , Penthouse a California corpora n Glendale, CA 91203 By: David Eva s, V ce Presi en By: Dee Baker, Assistant Secretary Acknowledgement by attorney-in-fact must be attached. BONDFORM.DOC Revised 12/30/02 CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT State of California County of Orange On March 5, 2004 before me, Dina Prints, personally appeared David Evans and Dee Baker, personally known to me to be the persons whose names are subscribed to the within instrument and. acknowledged to me that they executed the same in their authorized capacity, and that by their signatures on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. Witness my hand and official seal. D1NAPRINTY 1�7�_-i�iCommission# 1453610 Notary Public-California 9e oran County zy My Comm.Expires Nov 28,2007 OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER SIGNER IS REPRESENTING: David Evans — Vice President Lennar Fresno, Inc. Dee Baker- Assistant. Secretary Lennar. Fresno, Inc. DESCRIPTON OF ATTACHED DOCUMENT Type of Document: Surety Bond No. 0874 5306 Number of Pages: Three (3) Date of Document: March 4, 2004 Signers (other than those named above): Patricia H. Brebner CALIFORNIAALL-PURPOSE ACKNOWLEDGMENT No.5907 State of California County of Orange On March 4, 2004 before me, Rhonda C.Abel,Notary Public , DATE NAME,TITLE OF OFFICER-E.G.,"JANE DOE,NOTARY PUBLIC" personally appeared Patricia H.Brebner NAME(S)OF SIGNER(S) ® personally known to me -OR- ❑ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. RHONDA ��—.0, ( C.ABEL C) COMM.#1312777 SIGNATURE OF NOTARY (� Y PUBLIC-CALIFORNIA0 ORANGE COUNTY *-, COMM.rcon EXP.AUG.9,2005 OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE OR TYPE OF DOCUMENT TITLE(S) ❑ PARTNER(S) LIMITED GENERAL ® ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR NUMBER OF PAGES ❑ OTHER: SIGNER IS REPRESENTING: DATE OF DOCUMENT NAME OF PERSON(S)OR ENTITY(IES) SIGNER(S)OTHER THAN NAMED ABOVE S-4067/GEEF 2/98 ©1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 Power of Attorney FIDELITY AND DEPOSIT COMPANY OF MARYLAND KNOW ALL MEN BY THESE PRESENTS:That the FIDELITY AND DEPOSIT COMPANY OF MARYLAND,a corporation of the State of Maryland,by PAUL C.ROGERS,Vice President,and T.E. SMITH,Assistant Secretary,in pursuance of authority granted by Article Vl,Section 2,of the By-Laws of said Company,w set forth on the reverse side hereof and are hereby certified to be in full force and effect on the date hereof d sl6� mate,constitute and appoint Patricia H.BREBNER,of Irvine,California, its true and law d ey-' t,to make,execute, seal and deliver,for,and on its behalf as surety,and as its act a p takings and the execution of such bonds or undertakings in pursuan o s p on said Company,as fully and amply,to all intents and purposes,as if th xec ged by the regularly elected officers of the Company at its office in Bal ' re h it rThis power of attorney revokes that issued on behalf of Patricia H Se e The said Assistant o at the extract set forth on the reverse side hereof is a true copy of Article VI, Section 2,of the By- C any,and is now in force. IN WITNESS W OF, the said Vice-President and Assistant Secretary have hereunto subscribed their names and affixed the Corporate Seal of the said FIDELITY AND DEPOSIT COMPANY OF MARYLAND, this 4th day of February, A.D. 2003. ATTEST: FIDELITY AND DEPOSIT COMPANY OF MARYLAND '�9 9EPOs�f _ o W a. T. E. Smith Assistant Secretary Paul C. Rogers Vice President State of Maryland1 ss: City of Baltimore f On this 4th day of February, A.D. 2003, before the subscriber, a Notary Public of the State of Maryland, duly commissioned and qualified, came PAUL C. ROGERS, Vice President, and T. E. SMITH, Assistant Secretary of the FIDELITY AND DEPOSIT COMPANY OF MARYLAND, to me personally known to be the individuals and officers described in and who executed the preceding instrument, and they each acknowledged the execution of the same, and being by me duly sworn,severally and each for himself deposeth and saith,that they are the said officers of the Company aforesaid, and that the seal affixed to the preceding instrument is the Corporate Seal of said Company, and that the said Corporate Seal and their signatures as such officers were duly affixed and subscribed to the said instrument by the authority and direction of the said Corporation. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my Official Seal the day and year first above written. "Al- J_A-,LYNN,y„ 1J1[ WM&r Sandra Lynn Mooney Notary Public My Commission Expires: January 1,2004 POA-F 012-5025M ZURICH THIS IMPORTANT DISCLOSURE NOTICE IS PART OF YOUR BOND Fidelity and Deposit Company of Maryland,Colonial American Casualty and Surety Company,Zurich American Insurance Company, and American Guarantee and Liability Insurance Company are making the following informational disclosures in compliance with The Terrorism Risk Insurance Act of 2002. No action is required on your per• Disclosure of Terrorism Premium The premium charge for risk of loss resulting from acts of terrorism(as defined in the Act)under this bond is $ waived_. This amount is reflected in the total premium for this bond. pisclosure of Availability of Coverage for Terrorism Losses As required by the Terrorism Risk Insurance Act of 2002,we have made available to you coverage for losses resulting from acts of terrorism(as defined in the Act)with terms, amounts,and limitations that do not differ materially as those for losses arising from events other than acts of terrorism. Disclosure of Federal Share of Insurance Com an 's'Terrorism Losses The Terrorism Risk Insurance Act of 2002 establishes a mechanism by which the United States government will share in insurance company losses resulting from acts of terrorism(as defined in the Act)after a insurance company has paid losses in excess of an annual aggregate deductible. For 2002,the insurance company deductible is 1%of direct earned premium in the prior year; for 2003, 7% of direct earned premium in the prior year; for 2004, 10%of direct earned premium in the prior year; and for 2005, 15%of direct earned premium in the prior year. The federal share of an insurance company's losses above its deductible is 90%. In the event the United States government participates in losses,the United States government may direct insurance companies to collect a terrorism surcharge from policyholders. The Act does not currently provide for insurance industry or United States government participation in terrorism losses that exceed$100 billion in any one calendar year. Definition of Act of Terrorism The Terrorism Risk Insurance Act defines "act of terrorism"as any act that is certified by the Secretary of the Treasury, in concurrence with the Secretary of State and the Attorney General of the United States- 1. to be an act of terrorism; 2. to be a violent act or an act that is dangerous to human life,property or infrastructure; 3. to have resulted in damage within the United States, or outside of the United States in the case of an air carrier (as defined in section 40102 of title 49,United 17 States Code)or a United States flag vessel (or a vessel based principally in the United States, on which.United States income tax is paid and whose insurance coverage is subject to regulation in the United States),or the premises of a United States mission; and 4, to have been committed by an individual or individuals acting on behalf of any foreign person or foreign interest as part of an effort to coerce the civilian population of the United States or to influence the policy or affect the conduct of the United States Government by coercion. But,no act shall be certified by the Secretary as an act of terrorism if the act is committed as part of the course of a war declared by Congress (except for workers' compensation)or property and casualty insurance losses resulting from the act, in the aggregate,do not exceed$5,000,000. These disclosures are informational only and do not modify your bond or affect your rights under the bond. Copyright Ziuich American Insurance Company 2003