Cities Index.
2023-10-09_item_4.19_approve_final_map_cfd_annexation_and_sia_in_tract_4173_village_41_unit_1_within_lake_harbor_west_district_of_r.i

Lathrop City Council
October 9, 2023

Document
2023-10-09_item_4.19_approve_final_map_cfd_annexation_and_sia_in_tract_4173_village_41_unit_1_within_lake_harbor_west_district_of_r.i
Meeting
October 9, 2023
Body
Lathrop City Council
Original file
2.7 MB
Text extracted from the city's file for reading and search. Open the original on www.ci.lathrop.ca.us. That file is the official record.

ITEM 4. 19

CITY MANAGER' S REPORT
OCTOBER 9, 2023 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE FINAL MAP, CFD ANNEXATION, AND
SUBDIVISION IMPROVEMENT AGREEMENT FOR 29
LOTS IN TRACT 4173 VILLAGE 41 UNIT 1 WITHIN

LAKE HARBOR WEST DISTRICT OF RIVER ISLANDS
RECOMMENDATION: Adopt Resolution Approving Final Map for Tract 4173 Village 41 Unit 1 within the Lake Harbor West
District, Totaling 29 Single Family Lots, Annexation
into CFD 2023- 1, and Subdivision Improvement
Agreement with River Islands Development Area 1,
LLC
SUMMARY:

The proposed Final Map for Tract 4173, included as Attachment " E", is the first tract map within the Lake Harbor West District of Phase 2. River Islands is proposing twenty- nine (29) 42' x 100' single- family lots for Kiper Homes. A Vicinity Map is included as Attachment " B".

Staff recommends that the City Council approve the proposed Final Map for Tract 4173, Lake Harbor Village 41 Unit 1 ( Tract 4173), City of Lathrop Community Facilities District ( CFD) 2023- 1 Annexation, and a Subdivision Improvement Agreement ( SIA), included as Attachment " C", with River Islands Development Area 1, LLC, ( hereinafter referred to as " River Islands"), by Resolution included as Attachment " A".

BACKGROUND:

On June 14, 2021, the City Council adopted resolutions and ordinances approving the River Islands modified Phase 2 Project and Vesting Tentative Subdivision Map ( VTM) 6716. On November 14, 2022, City Council approved a Large Lot Map Tract 4149 to create 34 undevelopable parcels. On August 16, 2023, Planning Commission approved the Lake Harbor West Neighborhood Development Plan and Architectural Design Guidelines and Development Standards. The land for the proposed Final Map for Tract 4173 is within the geographic boundaries of VTM 6716, Large Lot Map Tract 4149 and the Lake Harbor West Neighborhood.

As required by the Lathrop Municipal Code Chapter 16. 16, all final maps must include a SIA to guarantee specific offsite and onsite improvements.

The total cost of the improvements for Tract 4173 is $ 2, 367, 000, however, a large percentage of the improvements have already been constructed and therefore do not need to be guaranteed. Performance and labor & material securities have been provided with the SIA for Tract 4173 that guarantee the unfinished improvements in the amount of:

CITY MANAGER' S REPORT PAGE 2
OCTOBER 9, 2023 CITY COUNCIL REGULAR MEETING
APPROVE FINAL MAP, CFD ANNEXATION, AND SIA FOR 29 LOTS IN TRACT 4173 VILLAGE 41 UNIT 1 WITHIN LAKE HARBOR WEST DISTRICT OF RIVER

ISLANDS
Unfinished Im rovement Total: 198, 200
Performance Security ( 110% of Unfinished Improvements) $ 218, 020 Bond No. 0844437
Labor & Materials Security ( 50% of Performance Security) $ 109, 010 Bond No. 0844437
Sections 10 and 11 of the SIA for Tract 4173 require River Islands to construct OffSite Improvements as well as comply with conditions for the use of temporary wastewater pump and haul. The conditions, terms and requirements associated with these items are documented in the Tract 4155 SIA approved by City Council on September 11, 2023 and are applicable to this Tract 4173.

Acceptance of the public improvements will be processed by staff for council consideration at a later date and when the unfinished improvements are completed.

Prior to acceptance, River Islands will be required to provide a one ( 1) year warranty bond.

Tract 4173 will need to be annexed into different CFDs for maintenance purposes.

The CFDs are for the City, Island Reclamation District ( RD) 2062 and River Islands Public Financing Authority ( RIPFA). Approval of Annexation into City of Lathrop CFD 2023- 1 is proposed with this Council item. Annexation into additional CFDs administered by RD 2062 and RIPFA is required as part of the escrow instructions prior to recording of the final map.

As a precondition to record the Final Map, River Islands must satisfy the Escrow Instructions, included as Attachment" D", by depositing necessary sums to guarantee the payment of all fees and providing required documents.

REASON FOR RECOMMENDATION:

River Islands will fulfill all of the requirements of the Lathrop Municipal Code Chapter

16. 16 as listed below prior to recordation of map:

Documents Status

1. Final Map ready for signature Completed

2. Subdivision Improvement Agreement Completed

3. Performance Security - Uncompleted Landscaping and
Received
Miscellaneous Im rovements

4. Labor and Materials Security - Uncompleted Landscaping Received and Miscellaneous Im rovements

5. Street Improvement, Landscape, Light & Joint Trench Completed

6. Geotechnical Report Completed
CITY MANAGER' S REPORT PAGE 3
OCTOBER 9, 2023 CITY COUNCIL REGULAR MEETING
APPROVE FINAL MAP, CFD ANNEXATION, AND SIA FOR 29 LOTS IN TRACT 4173 VILLAGE 41 UNIT 1 WITHIN LAKE HARBOR WEST DISTRICT OF RIVER

ISLANDS

7. Agreement for Backbone Improvements and Parks
Agreement for Dedication, Inspection and Guarantee Completed of Streets and Public Im rovements

8. Approval of 3 d Amendment to Development
Agreement that guarantees creation of CFD for City
Maintenance and Shortfalls, and Guarantee of Completed
Developer CFDs for Developer/ other public agency
Maintenance

9. Allocation of Water and Sewer capacity Completed

10. Recommendation for approval from Stewart Tract
Completed
Desi n Review Committee

11. Submitted Certificate of Insurance, Tax Letter Completed

12. Submitted Preliminary Guarantee of Title Completed

13. Escrow Instructions Completed

14. Tract 4173 Lake Harbor Village 41 - Unit 1 - City of Approval Lathrop Community Facilities District No. 2023- 1 ( River proposed with Islands Public Services and Facilities Annexation this item Fees Status

1. Final Map plan check fee Paid

2. Improvement Plans - Plan check and inspection fees Paid

3. Sierra Club Settlement fee
To be paid in
escrow
FISCAL IMPACT:

There is no fiscal impact to the City as all costs are covered by development fees and any shortfalls in the City' s maintenance and operating costs are covered by the CFDs.

ATTACH M ENTS:

A. Resolution Approving Final Map for Tract 4173 Village 41 Unit 1 within the Lake Harbor West District, Totaling 29 Single Family Lots, Annexation into City of Lathrop CFD 2023- 1, and Subdivision Improvement Agreement with River Islands Development Area 1, LLC
B. Vicinity Map - Lake Harbor - Tract 4173 Village 41 Unit 1 C. Subdivision Improvement Agreement between the City of Lathrop and River Islands Development Area 1, LLC, a Delaware limited liability company, for Tract 4173, Lake Harbor Village 41 Unit 1
D. Escrow Instructions for Final Map Tract 4173 Lake Harbor Village 41 Unit 1, CITY MANAGER' S REPORT PAGE 4
OCTOBER 9, 2023 CITY COUNCIL REGULAR MEETING
APPROVE FINAL MAP, CFD ANNEXATION, AND SIA FOR 29 LOTS IN TRACT 4173 VILLAGE 41 UNIT 1 WITHIN LAKE HARBOR WEST DISTRICT OF RIVER

ISLANDS
including Annexation into City of Lathrop CFD 2023- 1
E. Final Map - Tract 4173 Lake Harbor Village 41 Unit 1 CITY MANAGER' S REPORT PAGE 5
OCTOBER 9, 2023, CITY COUNCIL REGULAR MEETING
APPROVE FINAL MAP, CFD ANNEXATION, AND SIA FOR 29 LOTS IN TRACT 4173 VILLAGE 41 UNIT 1 WITHIN LAKE HARBOR WEST DISTRICT OF RIVER

ISLANDS
APPROVALS:
r a/ a5 a a3
Veronica Albarran Date
Junior Engineer
26 Zo23
Brad ylor Date
City Engineer
oa c 9? f?2 3
Cari James Date
Finance Director
4—' _ 9 - Z' i- 2ot3
Michael King Date
Assistant City Manager
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Salvador Navarrete Date
City Attorney
o• r• 23
Ste n J. Salvatore Date
City Manager
RESOLUTION NO. 23-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP APPROVING FINAL MAP FOR TRACT 4173 VILLAGE 41 UNIT 1 WITHIN THE LAKE HARBOR WEST DISTRICT, TOTALING 29 SINGLE FAMILY LOTS, ANNEXATION INTO CITY OF LATHROP CFD 2023- 1, AND SUBDIVISION IMPROVEMENT AGREEMENT WITH RIVER ISLANDS DEVELOPMENT AREA 1, LLC
WHEREAS, on June 14, 2021, the City Council adopted resolutions and ordinances approving the River Islands modified Phase 2 Project and Vesting Tentative Subdivision Map ( VTM) 6716; and
WHEREAS, on November 14, 2022, City Council approved Large Lot Map 4149 for 34 undevelopable parcels; and
WHEREAS, on August 16, 2023, Planning Commission approved the Lake Harbor West Neighborhood Development Plan and Architectural Design Guidelines and Development Standards; and
WHEREAS, the land for the proposed Final Map for Tract 4173, Lake Harbor Village 41 Unit 1 ( Tract 4173) is within the geographic boundaries of VTM 6716, Large Lot Map 4149, and the Lake Harbor West Neighborhood; and WHEREAS, as required by the Lathrop Municipal Code Chapter 16. 16, all final maps must include a Subdivision Improvement Agreement ( SIA) to guarantee specific offsite and onsite improvements; and
WHEREAS, River Islands Development Area 1, LLC, ( hereinafter referred to as " River Islands") provided performance and labor & material securities for the proposed SIA for Tract 4173 that guarantee the unfinished improvements in the amount as follows:

Unfinished Im rovement Total 198 200
Performance Security ( 110% of Unfinished Improvements): $ 218, 020 Bond No. 0844437
Labor & Materials Security ( 50% of Performance Security): $ 109, 010 Bond No. 0844437
and
WHEREAS, sections 10 and 11 of the SIA for Tract 4173 requires River Islands to construct Off- Site Improvements as well as comply with conditions for the use of temporary wastewater pump and haul. The conditions, terms and requirements associated with these items are documented in the Tract 4155 SIA approved by City Council on September 11, 2023 and are applicable to this Tract 4173; and WHEREAS, potential acceptance of the public improvements will be processed by staff for council consideration at a later date and when the unfinished improvements are completed and prior to acceptance, River Islands will be required to provide a one ( 1) year warranty bond; and
WHEREAS, Tract 4173 needs to be annexed into several different Community Facilities Districts ( CFDs) for maintenance purposes, staff recommends that Council approve Annexation into City of Lathrop CFD 2023- 1 and annexation into additional CFDs administered by Island Reclamation District 2062 and River Islands Public Financing Authority is required as part of the escrow instructions prior to recording of the final map; and
WHEREAS, River Islands must satisfy the Escrow Instructions, included as Attachment " D" to the City Manager' s Report, by depositing necessary sums to guarantee the payment of all fees and providing required documents.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Lathrop that approves and accepts the following actions:

1. The Final Map for Tract 4173 and is hereby approved as submitted for recordation with the San Joaquin County Assessor/ Recorder/ County Clerk Office.

2. Subdivision Improvement Agreement with River Islands in substantially the form as attached to the October 9, 2023 staff report and authorize the City Manager to execute.

3. Annexation into the City of Lathrop Community Facilities District No. 2023- 1 River Islands Public Services and Facilities) in substantially the form as attached to the October 9, 2023, staff report.

PASSED AND ADOPTED by the City Council of the City of Lathrop this 9tn day of October 2023, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:

Teresa Vargas, City Clerk Salvador Navarrete, City Attorney V\
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ATTACHMENT " B" O FUTUREPARK TRACT 4173
VILLAGE 41
FUTURE UNIT 2 LOTS
wt VICINITY MAP
TRACT 4189)
AUGUST 2023

ATTACHMENT

SUBDIVISION IMPROVEMENT AGREEMENT

BETWEEN THE CITY OF LATHROP AND
RIVER ISLANDS DEVELOPMENT AREA 1, LLC,
FOR TRACT 4173 LAKE HARBOR- VILLAGE 41 UNIT 1 29 SINGLE FAMILY LOTS

RECITALS
A. This Agreement is made and entered into this 9t'' day of October 2023, by and between the CITY OF LATHROP, a municipal corporation of the State of California( hereinafter" CITY") and River Islands Development Area 1, LLC, a Delaware Limited Liability Company, hereinafter referred to as " SUBDIVIDER").

B. Pursuant to Division 2 of Title 7 of the Government Code of the State of California and the CITY' s Subdivision Regulations ( City of Lathrop, Code of Ordinances, Chapter 16), SUBDNIDER is required to make dedications and improve Tract 4173 Lake Harbor— Village 41 Unit 1 ( Tract 4173). However, SUBDIVIDER has completed a significant portion of public infrastructure improvements associated with Tract 4173 located within the Lake Harbor West District of River Islands Phase 2, which also includes major streets necessary to access the site.

Performance and Labar& Material securities have been provided by SUBDIVIDER that guarantee the unfinished improvements for Tract 4173, in the amount shown in Section 8 of this Ageement.

C. SUBDNIDER is required to construct certain off-site improvements ( Off-Site Improvements) that support the West Village, Lake Harbor, and Paradise Cut Village Center Neighborhoods of River Islands Phase 2 ( Neighborhoods). The Offsite Improvements are needed to provide public access, emergency vehicle access, and wastewater discharge for the Neighborhoods as described below. Since construction of the Offsite Improvements are not complete, SUBDNIDER has provided security with the Subdivision Improvement Agreement for Tract 4155 West Village Unit 1 ( Tract 4155 SIA) as detailed in Table 1 of the Agreement. The conditions, terms and requirements associated with the Off-Site Improvements stated in the Tract 4155 SIA are applicable to Tract 4172 and this Agreement.

D. As a condition of Final Map approval, SUBDIVIDER is required to provide wastewater conveyance to the City' s Combined Treatment Facility ( CTF) and treatment capacity to each parcel within the Final Map boundary. However, the Callerton Avenue Bridge, which is guaranteed with the Tract 4155 SIA, has not yet been constructed due to permitting delays and therefore the wastewater conveyance system for Phase 2 of the Project south/ west of the main drain does not have the ability to convey wastewater to the CTF. Therefore, SUBDNIDER requested approval with the Tract 4155 SIA of the use of temporary pump and haul of wastewater until the Callerton Avenue Lift Station and Bridge are constructed and conveyance of wastewater to the CTF is possible.

Subdivision Improvement Agreement( River Islands Development Area 1, LLC) Tract 4173 Lake Harbor- Village 41 Unit 1
The conditions, terms and requirements associated with the pump and haul agreement as detailed in Section 10 of the Tract 4155 SIA are applicable to Tract 4172 and this Agreement.

E. SUBDIVIDER has completed a portion of the joint trench improvements for Tract 4173 and as noted in Recital B, security shall be required for the unfinished portion of these improvements, along with other required infrastructure associated with Tract 4173. Improvement plans, and street light plans have already been approved by the City. The street, sidewalk, underground utility, storm drainage, streetlight and joint trench improvements ( hereinafter Improvements") are substantially completed and minor improvements not yet constructed as part of the required infrastructure for Tract 4173 are required security as outlined in this Agreement is required.

NOW THEREFORE in consideration of CITY' S pending approval and acceptance of the Improvements upon their satisfactory completion, and in consideration of SUBDIVIDER' S construction of Improvements in strict accordance with the terms ofthis Agreement, all applicable laws, statutes, ordinances, rules and regulations currently in force and effect in CITY, the terms and conditions of which are incorporated herein by this reference, the parties hereto mutually covenant and agree as follows:

1. SUBDNIDER shall complete construction of, or cause construction to be completed at its sole cost and expense, the Improvements for all of the lots within the Lake Harbor— Village 41 Unit 1 neighborhood, to the limits identified in Exhibit " A", including the public landscaping, streetlight and joint trench improvements. A Vicinity Map is included as Exhibit " B".

All improvements shall be constructed to the satisfaction and approval of the City Engineer, in a good and workmanlike manner in accordance with the above referenced improvement plans and specifications, the improvement standards and specifications of the CITY' S Department ofPublic Works, the applicable Ordinances of the City of Lathrop and the California Subdivision Map Act.

2. SUBDIVIDER shall complete the Improvements, including all deferred and unfinished improvements as defined in this agreement, prior to issuance of certificate of occupancy ofthe last home constructed in Tract 4173, ar October 9, 2024, whichever comes first.

3. CITY, or its agent( s), shall, at any time during the progress of the Improvements, have free access thereto, and shall be allowed to examine the same and all material to be used therein. If the Improvements or any part thereof are not completed in strict compliance with the standards set forth in Paragraph 1 above, CITY may refuse to accept and may reject the defective Improvements and/ or materials therein.

4. SUBDIVIDER shall secure the services of skilled personnel necessary to construct the Improvements. CITY is not skilled in these matters and relies upon the skill of the SUBDIVIDER to ensure that the construction of the Improvements is in the most skillful and durable manner.

5. CITY' S acceptance of the Improvements does not operate as a release of SUBDIVIDER from any guarantee hereunder.

Subdivision Improvement Agreement ( River Islands Development Area 1, LLC) Tract 4173 Lake Harbar- Village 41 Unit 1

6. SUBDIVIDER guarantees and warrants that the Improvements shall be constructed in compliance with the standards set forth in Paragraph 1 above, free from any defects in work or labor done, and from any defects in materials furnished. Further, SUBDIVIDER shall repair and maintain the Improvements in good condition and in accordance with CITY specifications for one 1) year after CITY' S acceptance of the Improvements. As required by this Agreement, priar to acceptance of the Improvements, SUBDIVIDER shall deposit with the City Engineer a Warranty Bond in the amount of$ 236, 700 equal to 10% of the estimated cost of the Improvements for the Lake Harbor Village 41 Unit 1 neighborhood ($ 2, 367, 000) as included in the Engineer' s estimate attached to this Agreement as Exhibit " D", to insure SUBDIVIDER' S repair and warranty of the Improvements in accordance with the terms of this Ageement. The Warranty Bond shall be released at the end of the one year guarantee period, provided there are no claims against it are then outstanding.

7. If SUBDIVIDER, in whole or in part, abandons the Improvements, or unnecessarily or unreasonably delays construction of the Improvements, fails to complete construction of the Improvements within the time specified in this Agreement, or fails to repair.

Replace or reconstruct any defects, as set forth in Paragraph 6 above, CITY may, but is not required to, proceed to complete and/ or repair, replace, or reconstruct the Improvements, either by itself or by contract for such service, and CITY may cause to be forfeited such portion of any security deposited therein as is necessary to cover the costs of completion, repair, replacement, or reconstruction incurred by CITY.

Once action is taken by CITY to complete, repair, replace and/ or reconstruct the Improvements, SUBDIVIDER shall be responsible for all costs incurred by CITY, even if SUBDIVIDER subsequently completes the wark.

The CITY shall have recourse against SUBDIVIDER for any and all amounts necessary to complete the obligations of SUBDIVIDER in the event the security (including but not limited to any Letter of Guarantee, Certificate of Deposit, cash, bond for performance, labor and materials and repair and maintenance, letter of credit or cash deposit) therefore is insufficient to pay such amounts. All administrative costs, including reasonable attorney' s fees pursuant to Government Code Section 66499. 4, incurred by the CITY, in addition to the costs of the improvements shall be a proper charge against the security and SUBDNIDER. In the event it becomes necessary for CITY to bring an action to compel performance of this Agreement or to recover costs of completing such improvements, SUBDNIDER shall pay reasonable attorney' s fees, costs of suit and all other expenses of litigation incurred by CITY in connection therewith.

8. Because the Improvements are not entirely complete, the SUBDIVIDER is required to only post Performance or Labor & Materials bonds to guarantee the unfinished improvements associated with Tract 4173 as included and described in Exhibit " D" of this Agreement.

Performance and Labor & Material securities have been provided in the amount shown in Table 1 below. SUBDIVIDER shall also comply with CITY' S insurance requirements set forth on Exhibit C" attached hereto and incorporated herein.

Subdivision Improvement Agreement( River Islands Development Area 1, LLC) Tract 4173 Lake Harbor- Village 41 Unit 1
Table 1 — Bond Values
Unfinished Improvement Total: 198, 200
Performance Bond ( Bond No. 0844437): 218, 020
Labor& Materials Bond ( Bond No. 0844437): 109, 010

9. SUBDIVIDER is required to construct certain off-site improvements ( Off-Site Improvements) that support the West Village, Lake Harbor, and Paradise Cut Village Center Neighborhoods of River Islands Phase 2 ( Neighborhoods). The Offsite Improvements are needed to provide public access, emergency vehicle access, and wastewater discharge far the Neighborhoods as described below. Since construction of the Offsite Improvements are not complete, SUBDIVIDER has provided security with the Subdivision Improvement Agreement for Tract 4155 West Village Unit 1 ( Tract 4155 SIA) as detailed in Table l of the Agreement. The conditions, terms and requirements associated with the Off-Site Improvements stated in the Tract 4155 SIA are applicable to Tract 4172 and this Agreement.

10. As a condition of Final Map approval, SUBDIVIDER is required to provide wastewater conveyance to the City' s Combined Treatment Facility ( CTF) and treatment capacity to each parcel within the Final Map boundary. However, the Callerton Avenue Bridge, which is guaranteed with the Tract 4155 SIA, has not yet been constructed due to permitting delays and therefare the wastewater conveyance system for Phase 2 of the Project south/ west of the main drain does not have the ability to convey wastewater to the CTF. Therefore, SUBDIVIDER requested approval with the Tract 4155 SIA ofthe use oftemporary pump and haul of wastewater until the Callerton Avenue Lift Station and Bridge are constructed and conveyance of wastewater to the CTF is possible. The conditions, terms and requirements associated with the pump and haul agreement as detailed in Section 10 of the Tract 4155 SIA are applicable to Tract 4172 and this Agreement.

11. Any alteration(s) made to the plans and specifications, which are a part of this Agreement, or any provision of this Agreement shall not operate to release any surety or sureties from liability on any bond or bonds attached hereto and made a part thereof. The above referenced sureties hereby consent to such alterations and waive the provisions ofCalifornia Civil Code Section 2819.

12. Neither the CITY nor any of its officers, employees or agents shall be liable to SUBDIVIDER, and/ or SUBDIVIDER' S agents, contractors or subcontractors for any error or omission arising out of or in connection with any work to be performed under this Agreement.

13. Neither the CITY nor any of its officers, employees, or agents, shall be liable to the SUBDIVIDER or to any person, entity, or organization, for any injury or damage that may result to any person or property by or from any cause in, on, or about the subdivision of all or any part of the land covered by this Agreement.

14. SUBDIVIDER hereby agrees to, and shall hold CITY, its elective and appointive boards, commissions, officers, agents and employees ( collectively, " Indemnitees"), harmless from any liability for damage or claims which may arise from SUBDIVIDER and/or SUBDIVIDER' S contractors, subcontractors, agents, or employees' operations under this Agreement, whether such operations be by SUBDIVIDER or by any SUBDIVIDER contractors, subcontractors, or by any Subdivision Improvement Agreement( River Islands Development Area 1, LLC) Tract 4173 Lake Harbor- Village 41 Unit l
one or more persons directly or indirectly employed by, or acting as agent for, SUBDIVIDER or any of SUBDIVIDER' S contractors or subcontractors. SUBDIVIDER shall, at its own cost and expense, defend any and all actions, suits, or legal proceedings or any type that may be brought or instituted against CITY and indemnities on any claim or demand, of any nature whatsoever, and pay or satisfy any judgment that may be rendered against CITY and the Indemnitees in any such action, suit or legal proceedings, resulting from or alleged to have resulted from SUBDNIDER' S performance or non- performance of his duties and obligations under this Agreement, or from the negligent act or omission of himself, his agents, contractors, representatives, servants or employees. The promises and Agreement to indemnify and hold harmless set forth in this section is not conditioned or dependent on whether or not any indemnity has prepared, supplied or approved any plan or specification in connection with this work or subdivision, whether or not any such indemnity has insurance or indemnification covering any of these matters. CITY does not, and shall not; waive any rights against SUBDIVIDER which it may have by reason ofthe aforesaid hold harmless agreement, because of the acceptance by CITY of any deposit with CITY by SUBDIVIDER. The aforesaid hold harmless agreement by SUBDIVIDER shall apply to all damages and claims for damages of every kind suffered, or alleged to have been suffered, by reason of any of the aforesaid operations referred to in this paragraph, regardless ofwhether or not CITY has prepared, supplied or approved of, plans and/ or specifications for the subdivision.

15. Neither SUBDNIDER nor any of SUBDIVIDER' S agents, contractors or subcontractors are, or shall be, considered to be agents of CITY in connection with the performance of SUBDIVIDER' S obligations under this Agreement.

16. Prior to acceptance of the Improvements by the City Council, the SUBDIVIDER shall be solely responsible for maintaining the quality of the Improvements, and maintaining safety at the project site. The SUBDIVIDER' S obligation to provide the Improvements shall not be satisfied until after the City Engineer has made a written determination that all obligations ofthe Agreement have been satisfied and all outstanding fees and charges have been paid, and the City Council has accepted the Improvements as complete. The CITY and SUBDIVIDER have formed Community Facilities Districts to finance maintenance and improvements. The CITY expects to preserve the ability to use future special taxes of the CFD for payment of the cost of acquisition of the Improvements, which may require that acceptance of improvements by CITY be subject to the provisions of an acquisition agreement to be entered into by the CITY and SUBDIVIDER providing that CITY expects to be paid or reimbursed acquisition costs through future CFD special taxes. SUBDIVIDER shall cooperate to facilitate such method of acquisition. l7. SUBDIVIDER shall pay service fees for the utility services from the time the Improvements are accepted by the CITY to the end ofthe fiscal year, or up to a one( 1) year period, whichever is needed to ensure an opportunity for the Improvements to be included in the next fiscal year annual assessment.

18. SUBDIVIDER shall be responsible to sweep streets within the subdivision every two weeks as directed by the City Engineer, on all streets where lots are occupied and all streets providing access to occupied lots until the Improvements are accepted by the CITY.

19. SUBDIVIDER shall not assign this Agreement without the prior written consent of CITY.

Subdivision Improvement Agreement( River Islands Development Area l, LLC) Tract 4173 Lake Harbor- Village 41 Unit 1
If such consent is given, the terms of this Agreement shall apply to and bind the heirs, successors, executors, administrators and assignees of SUBDIVIDER, and any heirs, successors, executors, administrators and assignees of the SUBDIVIDER and shall be jointly and severally liable hereunder.

20. The SUBDIVIDER shall, at the SUBDIVIDER' S expense, obtain and maintain all necessary permits and licenses for construction of the Improvements. Prior to the commencement of Improvement construction, the SUBDNIDER shall obtain a City of Lathrop Business License.

The SUBDIVIDER shall comply with all local, state and federal laws, whether or not said laws are expressly stated in this Agreement.

21. This Agreement and any amendments hereto comprise the entire understanding and agreement between the parties regarding the improvements to be constructed and dedications for Tract 4173.

22. The following miscellaneous provisions are applicable to this Agreement:
a. Controlling Law. The parties agree that this Agreement shall be governed and construed by and in accordance with the laws of the State of California. b. Definitions. The definitions and terms are as defined in this Agreement. c. Force Majeure. Neither party shall be deemed to be in default on account of any delay or failure to perform its obligations under this Agreement, which directly results from an Act of God or an act of a superior governmental authority.
d. Headings. The paragraph headings are not a part ofthis Ageement and shall have no effect upon the construction or interpretation of any part ofthis Agreement. e. Incorporation of Documents. All documents referred to herein and all documents which may, from time to time, be referred to in any duly executed amendment hereto are by such reference incorporated herein and shall be deemed to be part of this Agreement. f. Modification of Agreement. This Agreement shall not be modified or be binding upon the parties unless such modification is agreed to in writing and signed by the parties. g. Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is void or unenforceable, the provisions ofthis Agreement not so affected shall remain in full force and effect.
h. Successors and Assigns. Except as otherwise expressly provided herein, the provisions of this Agreement shall inure to the benefit of, and shall apply to and bind, the successors and assigns of the parties.

Subdivision Improvement Agreement( River Islands Development Area 1, LLC) Tract 4173 Lake Harbar- V illage 41 Unit 1
i. Time of the Essence. Time is of the essence of this Agreement and each of its provisions.

In the calculation oftime hereunder, the time in which an act is to be performed shall be computed by excluding the first Day and including the last. If the time in which an act is to be performed falls on a Saturday, Sunday or any Day observed as a legal holiday by CITY, the time for performance shall be extended to the following Business Day. j. Venue. In the event either party brings that suit hereunder, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of San Joaquin.

ATTACHMENTS:

EXHIBIT A FINAL MAP - TRACT 4173
EXHIBIT B TRACT 4173 LAKE HARBOR - VILLAGE 41 UNIT 1 AREA EXHIBIT C: CITY 1NSURANCE REQUIREMENTS
EXHIBIT D: TRACT 4173 LAKE HARBOR - VILLAGE 41 UNIT 1 UNFINISHED

IMPROVEMENTS AND FULL IMPROVEMENTS COST ESTIMATE
Subdivision Improvement Agreement( River Islands Development Area 1, LLC) Tract 4173 Lake Harbor- Village 41 Unit 1

SUBDNIDER
River Islands Development Area 1, LLC,
a Delaware Limited Liability Company
BY:

Susan Dell' Osso Date
President
SUBDIVIDER"
Subdivision Improvement Agreement( River Islands Development Area 1, LLC) Tract 4173 Lake Harbor- Village 41 Unit 1
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on this 9' day of October 2023, at Lathrop, California.

ATTEST: TERESA VARGAS CITY OF LATHROP, a
City Clerk of and for the City municipal corporation of the of Lathrop, State of California State of California
BY: BY:

Teresa Vargas Date Stephen J. Salvatore Date
City Clerk City Manager

APPROVED AS TO FORM BY THE CITY OF LATHROP CITY ATTORNEY BY: z o
Salvador Navarrete Date
City Attorney
Subdivision Improvement Agreement ( River Islands Development Area l, LLC) Tract 4173 Lake Harbor- Village 41 Unit 1

SUBDIVIDER
River Islands Development Area 1, LLC,
a Delaware Limited Liability Company
BY:

Susan Dell' Osso Date
President
SUBDIVIDER"
Subdivision Improvement Agreement( River Islands Development Area 1, LLC) Tract 4173 Lake Harbor- Village 41 Unit 1
EXHIBIT " A"
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Subdivision Improvement Agreement( River Islands Development Area 1, LLC) Tract 4173 Lake Harbor- Village 41 Unit 1
EXHIBIT " B"
TRACT 4173 LAKE HARBOR— VILLAGE 41 UNIT 1 AREA
A ,
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EXHIBIT " B"
FUTURE PARK TRACT 41 73
VILLAGE 41
FUTURE UNIT 2 LOTS VICINITY MAP TRACT 4189)
AUGUST 2023
Subdivision Improvement Agreement( River Islands Development Area 1, LLC) Tract 4173 Lake Harbor- Village 41 Unit 1
EXHIBIT " C"

CITY INSURANCE REQUIREMENTS

1. The Subdivider shall obtain commercial general liability insurance companies licensed to do business in the State of California with an A.M. Best Company rating Insurance rating of no less than A:VII which provides coverage for bodily injury, personal injury and property damage liability in the amount of at least $ 1, 000, 000 for each occurrence and $ 2, 000, 000 in the aggregate.

Said insurance coverage shall be evidenced by a certificate ofinsurance with policy endorsements, executed by an authorized official of the insurer( s). All parties to the Subdivision Improvement Agreement must be named insured on the policy. The policy endorsements to be attached to the certificate must provide all the following:
a. Name the City of Lathrop, its officers, City Council, boards and commissions, and members thereof, its employees and agents as additional insured as respects to any liability arising out of the activities of the named insured. A CG 2010 or CG 2026 endorsement form or the equivalent is the appropriate form.
b. State that " the insurance coverage afforded by this policy shall be primary insurance as respects to the City of Lathrop, its officers, employees and agents. Any insurance or self-insurance maintained by the City of Lathrop, its officers, employees, or agents shall be in excess ofthe insurance afforded to the named insured by this policy and shall not contribute to any loss.
c. Include a statement that, " the insurer will provide to the City at least thirty ( 30) days prior notice of cancellation ar material change in coverage." The above language can be included on the additional insured endorsement form or on a separate endorsement form. d. The policy must contain a cross liability or severability of interest clause. e. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the Agreement or the work, so long as commercially available at reasonable rates.

DATE( MM/ DD/ YYYY)
A` o CERTIFICATE OF LIABILITY INSURANCE 8/ 3/ 2023
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER( S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy( ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement( s).

PRODUCER

CONTACT
NaME: Nicolas DiGerolamo
Alliant Insurance Services, II1C. PHONE FAx
333 S Hope St Ste 3750 E AIL Ex A/ C No:

Los Angeles CA 90071 aooRess: Nicolas. DiGerolamo Alliant. com INSURER S AFFORDING COVERAGE NAIC#
License#: oC36861 NSURER A: Ulllt@d S ecialt Insurance Co. 12537 INSURED RIVEISL- 01 NSURER B:

River Islands Development Area 1, LLC
73 W. Stewart
INSURER C:

Lathrop CA 95330 INSURER D:

INSURER E:

INSURER F:

COVERAGES CERTIFICATE NUMBER: 238951647 REVISION NUMBER:

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSR

TYPE OF INSURANCE

ADDL SUBR
pOLICY NUMBER MM/ DD/ YYYY MM DD/ YYYY LIMITS
LTR
A X COMMERCIAL GENERAL LIABILITY Y ATN2117764P 3/ 19/ 2021 3/ 19/2024 EACH OCCURRENCE 2, 000,000 CLAIMS- MADE OCCUR PREM SES Ea oocurence $
MED EXP( Any one person) $ 0
PERSONAL 8 ADV INJURY $ 1, 000,000
GEN' L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2, 000,000 POLICY E LOC PRODUCTS- COMP/ OP AGG $ 2, 000,000
OTH ER:

AUTOMOBILE LIABILITY
COMBINED SINGLE LIMIT $
Ea accideM
ANY AUTO BODILY INJURY( Per person) $
OWNED SCHEDULED BODILY INJURY( Per accident) $

AUTOS ONLY AUTOS

HIRED NON- OWNED PROPERTYDAMAGE
AUTOS ONLY AUTOS ONLY Per accident

UMBRELLA LIAB OCCUR EACH OCCURRENCE

EXCESS LIAB CLAIMS- MADE AGGREGATE
DED RETENTION$
WORKERSCOMPENSATION PER OTHAND EMPLOYERS' LIABILITY Y N

STATUTE ER
ANYPROPRIETOR/ PARTNEft/ EXECUTIVE E. L EACH ACCIDENT
OFFlCER/ MEMBEREXCLUDED? N/ A
Mandalory in NH) E. L. DISEASE- EA EMPLOYEE $
If yes, describe under
DESCRIPTION OF OPERATIONS below E. L DISEASE- POLICY LIMIT $ DESCRIPTION OF OPERATIONS/ LOCATIONS/ VEHICLES ( ACORD 101, Additional Remarks Schedule, may be attached it more space is required) Re:- FM 4173 Village 41: River Islands Development Area 1, LLC City of Lathrop, its officers, City Council, boards and commissions and members thereof, its employees and agents are included as Additional Insureds as respects to General Liability. General Liability shall be Primary and Non- Contributory with any other insurance in force for or which may be purchased by City of Lathrop, its officers, employees and agents.
30 days advanced written notice to Certificate Holder in the event of cancellation, except 10 days for non- payment of premium.

CERTIFICATE HOLDER CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

City of Lathrop, its officers, employees and agents
390 Towne Centre Drive

AUTHORIZEDREPRESENTATIVE
Lathrop CA 95330
L 7 1
r ,! 1...-`
O 1988- 2015 ACORD CORPORATION. All rights reserved.

ACORD 25( 2016/ 03) The ACORD name and logo are registered marks of ACORD POLICY NUMBER: ATN2117764P COMMERCIAL GENERAL LIABILITY CG20100413
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

ADDITIONAL INSURED - OWNERS, LESSEES OR

CONTRACTORS - SCHEDULED PERSON OR

ORGANIZATION
This endorsement modifies insurance provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART

SCHEDULE
Name Of Additional Insured Person( s)
Or Or anization s Location s Of Covered O erations
As Required By Written Contract, Fully As Required By Written Contract, Fully Executed Prior To The Named Insured' s Work Executed Prior To The Named Insured' s Work
Information re uired to com lete this Schedule, if not shown above, will be shown in the Declarations.

A. Section II — Who Is An Insured is amended to B. With respect to the insurance afforded to these include as an additional insured the person( s) or additional insureds, the following additional organization( s) shown in the Schedule, but only exclusions apply:
with respect to liability for " bodily injury", " property This insurance does not a I to " bodil in u or damage" or " personal and advertising injury"
pp y y ry
caused, in whole or in part, by:
property damage" occurring after:

1. All work, including materials, parts or

1. Your acts or omissions; or equipment furnished in connection with such

2. The acts or omissions of those acting on your work, on the project ( other than service, behalf; maintenance or repairs) to be performed by or
in the performance of your ongoing operations for on behalf of the additional insured( s) at the the additional insured( s) at the location( s) location of the covered operations has been designated above.
completed; or
However: 2. That portion of " your work" out of which the injury or damage arises has been put to its

1. The insurance afforded to such additional intended use by any person or organization insured only applies to the extent permitted by other than another contractor or subcontractor law; and engaged in performing operations for a

2. If coverage provided to the additional insured is principal as a part of the same project. required by a contract or agreement, the
insurance afforded to such additional insured
will not be broader than that which you are
required by the contract or agreement to
provide for such additional insured.

CG 20 10 0413 O Insurance Services Office, Inc., 2012 Page 1 of 2 Policy# ATN2117764P
United Specialty Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

VEN 064 00 ( 01/ 15)

THIRD PARTY CANCELLATION NOTICE ENDORSEMENT
This endorsement modifies the Conditions provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART
If we cancel this policy for any reason other than nonpayment of premium, we will mail notification to the persons or organizations shown in the schedule below ( according to the number of days listed below) once the Named Insured has been notified.

If we cancel this coverage for nonpayment of premium, we will mail a copy of such written notice of cancellation to the name and address below at least 10 days prior to the effective date of such cancellation.

Our failure to provide such advance notification will not extend the policy cancellation date nor negate cancellation of the policy.

SCHEDULE
Name and Address of Other Person/ Organization Number of Days Notice Per schedule on file with the company 30
All other terms, conditions and exclusions under this policy are applicable to this Endorsement and remain unchanged.

VEN 064 00( 01/ 15) Page 1 of 1
Policy# ATN2117764P
United Specialty Insurance Company
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.

VEN 051 00 ( 02/ 20)

PRIMARY AND NON- CONTRIBUTING INSURANCE ENDORSEMENT
This endorsement modifies the Conditions provided under the following:

COMMERCIAL GENERAL LIABILITY COVERAGE PART
The following is added to SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS of the COMMERCIAL GENERAL LIABILITY COVERAGE PART, and supersedes any provision to the contrary:

Primary and Non- Contributory Insurance
Any coverage provided to an Additional Insured under this policy shall be excess over any other valid and collectible insurance available to such Additional Insured whether primary, excess, contingent or on any other basis unless:
a. ( 1) The Additional Insured is a Named Insured under such other insurance; and
2) A fully written contract fully executed prior to the Named Insured' s commencement of work for such Additional Insured for the specificproject that is the subject of the claim, " suit," or" occurrence" expressly requires that this insurance:
i) apply on a primary and non- contributorybasis;
and
ii) would not seek contribution from any other insurance available to the additional insured.
or
b. Prior to a loss, you request in writing and we agree in writing that this insurance shall apply on a primary and non- contributory basis.

Name Of Person s Or Or anization s
As Required By Written Contract, Fully Executed Prior To The Named Insured' s Work.

All other terms, conditions and exclusions under this policy are applicable to this Endorsement and remain unchanged.

VEN 051 00( 02/ 20) Page 1 of 1
Subdivision Improvement Agreement( River Islands Development Area 1, LLC) Tract 4173 Lake Harbor- Village 41 Unit 1
EXHIBIT " D"

UNFINISHED IMPROVEMENT COST ESTIMATE AND
TRACT 4173 LAKE HARBOR- VILLAGE 41 UNIT 1 — FULL IMPROVEMENT COST ENG1N££ ft1NG
ENGINEER' S BOND ESTIMATE August 21, 2023
COST TO COMPLETE Job No.: 25504- 84
RIVER ISLANDS- PHASE 2
DEL WEBB- VILLAGE 41

CITY OF LATHROP, SAN JOAQUIN COUNTY, CALIFORNIA
Item Description Quantity Unit Unit Price Amount
1 Sanitary Sewer Raising Iron 8 Testing ( o% Completion) 1 LS $ 51, 500. 00 $ 51, 500. 00 2 Storm Drain Raising Iron& Testing ( 0% Completion) 1 LS $ 3, 000. 00 $ 3, 000. 00 3 Domestic Water Raising Iron, Testing 8 Tie- in ( 0/ Completion) 1 LS $ 49, 500. 00 $ 49, 500. 00 4 Joint Trench( 60% Completion) 1 LS $ 83, 700. 00 $ 83, 700. 00 5 Striping& Mounments( 0% Completion) 1 LS $ 10, 500. 00 $ 10, 500. 00 TOTAL COST TO COMPLETE S 198, 200. 00
Notes:
1) Estimate for cost to complete based on contractor' s note for Del Webb- Village 41 dated 9l11/ 2023 n C E I... i F:, L : , t ._ ._ ._ . . r, l Cfi _ a= :_ 34f:' __ : 1 .„. r, T: 25504- Rlver ISlands Phasa 84- PFiase 2 Village 41 IPIWord& ExceflCost to Complete12023-08- 21 Del Webb Viltage 47 Cost To Complete.xlsllmprovements ENG1NEEfi1NG
ENGINEER' S PRELIMINARY COST ESTIMATE October 13, 2021
DEL WEBB Job No.: 25504- 84
VILLAGE 41 ( 81 Lots)

RIVER ISLANDS

CITY OF LATHROP, SAN JOAQUIN COUNTY, CALIFORNIA
Item Description Quantity Unit Unit Price Amount

ROADWAY
1 Fine Grading 660, 000 SF $ 0. 45 $ 297, 000. 04
2 4. 5" AC Paving 44, 550 SF $ 2. 25 $ 100, 237. 50
3 8" Aggregate Base 79, 200 SF $ 1. 20 $ 95, 040. 00
4 Vertical Curb and Gutter( with AB cushion) 3, 750 LF $ 15. 00 $ 56, 250. 00 5 Rolled Curb and Gutter( with AB cushion) 3, 520 LF $ 15. 00 $ 52, 800. 00 g Type F Median Curb ( with AB cushion) 210 LF $ 18. 00 $ 3, 780. 00 7 Roundabout Curb( with AB cushion) 220 LF $ 18. 00 $ 3, 960. 00 g Splitter Island Curb( with AB cushion) 100 LF $ 18. 00 $ 1, 800. 00 9 Concrete Sidewalk 47, 500 SF $ 5.00 $ 237, 500. 00
10 Driveway Approach 81 EA $ 600. 00 $ 48, 600. 00
11 Handicap Ramps 6 EA $ 2, 500. 00 $ 15, 000. 00
12 Survey Monuments 7 EA $ 300. 00 $ 2, 100. 00
13 Traffic Signing& Striping 4, 150 LF $ 5. 00 $ 20, 750. 00 14 Roundabout Concrete 1, 900 SF $ 5. 00 $ 9, 500. 00
15 Dewatering ( budget) 4, 150 LF $ 75. 00 $ 311, 250. 00 Subtotal Roadway 1, 255, 567. 54

STORM DRAIN
16 15" Storm Drain Pipe 300 LF $ 34. 00 $ 10, 200. 00
17 18" Storm Drain Pipe 210 LF $ 46. 00 $ 9, 660.00
18 24" Storm Drain Pipe 900 LF $ 65. 00 $ 58, 500. 00
19 36" Storm Drain Pipe 1, 450 LF $ 95. 00 $ 137, 750. 00 20 48" Storm Drain Pipe 1, 020 LF $ 125. 00 $ 127, 500. 00 2 Catch Basins (type A inlet) 22 EA $ 2, 400. 00 $ 52, 800. 00 22 Catch Basins ( type A inlet over type 11 manhole base) 4 EA $ 2, 800. 00 $ 11, 200. 00 23 Catch Basins ( type C inlet over type 1 manhole base) 4 EA $ 5, 000. 00 $ 20, 000. 00 24 Manholes( type I) 3 EA $ 3, 000. 00 $ 9, 000. 00
25 Manholes( type ll) 1 EA $ 5, 000. 00 $ 5, 000. 00
26 Strom Drain Stub 8 Plug 3 EA $ 1, 000.00 $ 3, 000.00 Subtotal Storm Drain 444, 610. 00

SANITARY SEWER
27 8" Sanitary Sewer Pipe 3, 250 LF $ 28. 00 $ 91, 000. 00 28 10" Sanitary Sewer Pipe 420 LF $ 35. 00 $ 14, 700. 00 29 Manholes 8 EA $ 4, 000. 00 $ 32, 000. 00
6200 c
uhd Ri: i E P. 1ALi F:; AD SU E ? i . r.. Eh-, TGh CA u-1f cg .:' LL3 63•4C • F 2 Q Si i < 466 H:\ 25504- River Islands\ Phase 84- Phase 2 Village 41 IP\ Word& Excel\ Estimate\ Del Webb Village 41 Cost Estimate- 2021- 30- 03\ Area 3 NG1NEEfZ1NG
Item Description Quantity Unit Unit Price Amount
30 Sewer Service 81 EA $ 600. 00 $ 48, 600. 00
31 Sewer Stub& Plug 4 EA $ 1, 000. 00 $ 4, 000. 00
32 Connect to Existing 1 EA $ 3, 000. 00 $ 3, 000. 00
Subtotal Sanitary Sewer 193, 300. 00

WATER SUPPLY
33 8" Water Line( including all appurtenances) 3, 800 LF $ 32. 00 $ 121, 600. 00 34 GV 9 EA $ 1, 550. 00 $ 13, 950. 00
35 1- 1/ 2" Water Service 81 EA $ 2, 000. 00 $ 162, 000. 00 36 Fire Hydrants 10 EA $ 4,000. 00 $ 40, 000. 00
37 Blow- Off 4 EA $ 4,000. 00 $ 16,000. 00
38 Connect to Existing 1 EA $ 4, 000. 00 $ 4, 000. 00
Subtotal Water 357, 550. 00

NON- POTABLE WATER
3g 10" Non- Potable Water Line( including all appurtenances) 1, 900 LF $ 40. 00 $ 76, 000. 00 40 Blow-Off 1 EA $ 4, 000. 00 $ 4, 000. 00
41 Connect to Existing 1 EA $ 4,000. 00 $ 4, 000. 00
Subtotal Non- Potable Water 84, 000. 00

LAKE FILL WATER
42 24" Lake Fill Water Line ( including all appurtenances) 270 LF $ 85. 00 $ 22, 950. 00 43 Lake Fill Stub& Plug 1 EA $ 3, 500. 00 $ 3, 500. 00
44 Connect to Existing 1 EA $ 5, 500. 00 $ 5, 500. 00
Subtotal Lake Fill Water 31, 950. 00
TOTAL CONSTRUCTION COST( nearest$ 1, 000) $ 2, 367, 000. 00 COST PER LOT $ 29, 222. 00
Notes:
1) Unit prices are based on estimated current construction costs and no provision for inflation is included. 2) This estimate does not include surveying, engineering, clearing, grading, erosion control, landscaping, irrigation, or street trees. z S !. h7= F.iu. E f, 1; i.i p;; AG SU E" sG FLE r.G ait,, w: r u9 c • G 92 2 83A0 • F,' 09 5. SG, H:\ 25504- River Islands\ Phase 84- Phase 2 Village 41 IP\ Word& Excel\ Estimate\ Del Webb Village 41 Cost Estimate- 2021- 10- 01\ Area 3

ATTACHMENT

JOINT ESCROW INSTRUCTIONS

RECORDATION OF FINAL MAPS

RIVER ISLANDS AT LATHROP)
October 9, 2023
Via Email and Hand Delivery
Old Republic Title Company
1215 W. Center Street, Suite 103
Manteca, CA 95337
Attn: Lori Richardson
Re: Recordation of Final Map 4173; Escrow No. 1214023031 Dear Lori:

This letter constitutes the joint escrow instructions (" Escrow Instructions") of River Islands Development Area 1, LLC, a Delaware limited liability company(" RIDA1") and the City of Lathrop (" City') in connection with the above- referenced escrow (" Escrou'). The Escrow was opened in connection with recordation of the above- referenced final map Final Map"). Recordation of the Final Map is subject to the conditions set forth below.

The transactions described in these Escrow Instructions are referred to as the Transaction." Old Republic Title Company is referred to as " you" or" ORTC." A. Date for Closinqs
The Final Map will be recorded at the time designated by RIDA1 as set forth below. The Final Map can only be recorded after the City has approved the map in writing. The closing date for the Transaction is intended to occur by December 29, 2023, at the time designated in writing by RIDA1, subject to satisfaction of the conditions set forth below ( each a C/osing"). If the Final Map has not been recorded by June 30, 2024, ORTC will return the Final Map to the City.

B. Documents to be Delivered and Recordation Documents
In connection with the Transaction, you have in your possession or will receive the following documents from City and RIDA1 for recordation in the Official Records of San Joaquin County, California (" Official Records").

B. 1. One original Final Map for Tract 4173, executed and acknowledged by the City ( provided to title by City).

B. 2. A fully executed and acknowledged Amendment to Notice of Special Tax Lien for the City of Lathrop Community Facilities District No. 2023- 1 ( River Islands Public Services and Facilities) Annexation No. _( provided to title by City).

B. 3. A fully executed and acknowledged Amendment to Notice of Special Tax Lien for Island Reclamation District 2062 Community Facilities District No. 2013- 1 ( Levee and Lake Maintenance Services) ( provided to title by RIDA1).

B. 4. A fully executed and acknowledged Amendment to Notice of Special Tax Lien for River Islands Public Financing Authority Community Facilities District No. 2013- 1 ( River Islands Public Services) ( provided to title by RIDA1).

The documents listed in Items B. 1, B. 2, B. 3 and B. 4 above are referred to as the Recordation Documents." The Recordation Documents shall be recorded in the order 1 JOINT ESCROW INSTRUCTIONS

RECORDATION OF FINAL MAPS

RIVER ISLANDS AT LATHROP)
referred to above. The date on which the Recordation Documents are recorded in the Official Records is the Recordation Date.

Prior to recording the Recordation Documents, please confirm that you have received copies or originals of the following documents: ( i) Unanimous Approval of Annexation to a Community Facilities District and Related Matters, City of Lathrop Community Facilities District No. 2023- 1 ( River Islands Public Services and Facilities); ( ii) Consent to, and Ballot in favor of, Annexation of Real Property to Island Reclamation District No. 2062 Community Facilities District No. 2013- 1 ( Levee and Lake Maintenance) and ( iii) Consent to, and Ballot in favor of, Annexation of Real Property to the River Islands Public Financing Authority Community Facilities District No. 2013- 1 ( River Islands Public Services). The original City of Lathrop Unanimous Approval must be delivered to the City of Lathrop. The original Consents and Ballots for River Islands Public Financing Authority CFD Nos. 2013- 1 and Island Reclamation District No. 2013- 1 must be delivered to Jeanne Zolezzi at Herum\ Crabtree\ Suntag, 5757 Pacific Ave., Suite 222, Stockton, CA 95207. Copies should be sent via email to Cari James ( ciames( a ci. lathrop. ca. us), Cindy Yan at Goodwin Consulting Group, cindvCa qoodwinconsultinqqroup. net, Susan Dell' Osso sdellosso( a riverislands. com) and Debbie Belmar ( dbelmar(a riverislands. com) together with conformed copies of the amendments to notices of special tax that are recorded as part of the Recordation Documents.

C. Funds and Settlement Statement
You also have received, or will receive from RIDA1, prior to the recordation of the Recordation Documents, in immediately available funds, the following amounts, in accordance with the settlement statement prepared by you and approved in writing by both RIDA1 and City(" Settlemenf Statemenf'): recordation costs, escrow fees and other amounts as set forth in the Settlement Statement. Such costs, fees and other amounts are the sole responsibility of RIDA1.

Funds to be wire transferred directly to the entity set forth below, immediately upon recordation of the Final Map, in accordance with the wire transfer instructions for each entity are as follows: The amount of$ 70, 794. 09, payable to the City pursuant to that certain Agreement to Settle Litigation Regarding River Islands at Lathrop as amended " Sierra C/ ub Agreemenf'), constituting the amount of$ 3, 687. 00 multiplied by 19.201 acres ( or portion thereof) included in the Final Map, is to be transferred to the City upon recordation of the Final Map. The City' s wire instructions are set forth below.

The amounts set forth in Section C are referred to as the " Closing Funds." D. Closinq Requirements
When the following has occurred, you are authorized to close the Escrow at the time( s) and in accordance with the process set forth below:

D. 1. You have delivered copies of your Settlement Statement by email transmission to: ( a) Susan Dell' Osso ( sdellosso( a riverslands. com); ( b) Debbie Belmar dbelmar( c riverislands.com); ( c) Brad Taylor ( btaylor(a ci. lathrop. ca. us); ( d) Salvador Navarrete ( snavarrete( a ci. lathrop. ca. us; ( e) Sandra Lewis ( slewis(a ci. lathrop. ca. us), and have confirmation ( by telephone or email) from Susan Dell' Osso and Brad Taylor that the Settlement Statement is accurate and acceptable;
2 JOINT ESCROW INSTRUCTIONS

RECORDATION OF FINAL MAPS

RIVER ISLANDS AT LATHROP)
D. 2. You have not received any instructions contrary to these Escrow Instructions;
D. 3. The Recordation Documents and all other documents described herein as being held by you or delivered to you have been received by you and have been fully executed and, where applicable, acknowledged, and you have attached all legal descriptions or have confirmed that all exhibits and legal descriptions are attached; D. 4 You are prepared to record the Recordation Documents, as designated, release funds in accordance with the Settlement Statement and complete the Transaction in compliance with these Escrow Instructions; D. 5. You have delivered a copy of these instructions, executed by an authorized signatory of ORTC with authority to bind ORTC, and initialed all pages, by email transmission ( with original hard copy to follow by U. S. Mail) to Debbie Belmar and Brad Taylor at the email addresses set forth above; and D. 6. You have received confirmation ( by email or other writing) from Susan Dell' Osso and Stephen Salvatore or Brad Taylor to record the Recordation Documents and complete the Transaction.

E. Closinp Process and Priorities
When you have fully satisfied all of the closing requirements set forth in Section D, then you are authorized and instructed to do the following in the chronological order given:

E. 1. Date the Recordation Documents to be recorded;
E. 2. Record the Recordation Documents in the Official Records; E. 3. Pay the costs associated with the Transaction;
E. 4. Refund any funds delivered to you by RIDA1 that are not disbursed at the time of the final Closing pursuant to these Escrow Instructions to the following entity and address:

River Islands Development Area 1, LLC
73 W. Stewart Road
Lathrop, CA 95330
Attn: Susan Dell' Osso
E. 5. Notify Susan Dell' Osso ( sdellosso( a riverslands. com), Debbie Belmar ( dbelmar( a riverislands. com), Brad Taylor ( btavlor( a ci. lathrop. ca. us), Sandra Lewis ( slewisCa ci. lathrop. ca. us), Teresa Vargas ( tvarqas( a ci. lathrop. ca. us), Sarah Pimentel ( spimentel( c ci. lathrop. ca. us), and Jose Molina ( JMolina( c siqov. orq) of the completion of the Transaction;
E. 6. Within five ( 5) business days after each Recordation Date, deliver by overnight delivery via recognized, national, overnight delivery carrier to: ( 1) Susan Dell' Osso, River Islands Development Area 1, LLC, 73 W. Stewart Road, Lathrop, CA 95330; and ( 2) Mr. Brad Taylor, City Engineer, City Attorney, City of Lathrop, 390 Towne Centre Drive, Lathrop, CA 95330:

A) a certified copy of the Recordation Documents, showing all recording information of the Recordation Documents; and 3 JOINT ESCROW INSTRUCTIONS

RECORDATION OF FINAL MAPS

RIVER ISLANDS AT LATHROP)
B) a certified copy of the final Settlement Statement.

F. Additionallnstructions
When assembling the final documents, signature pages from all parties shall be inserted into each respective final document in creating fully executed counterparts.

Please acknowledge receipt of these instructions and your agreement to act as Escrow agent in connection with this Transaction in accordance with these Escrow Instructions, by executing and dating a copy of these Escrow Instructions where indicated below, initialing all pages and returning it to both of the undersigned.

The Escrow Instructions may be modified only in a writing signed by both of the undersigned.

Very truly yours,
Stephen J. Salvatore Date Susan Dell' Osso Date
City Manager President
City of Lathrop River Islands Development Area 1, LLC

ESCROW INSTRUCTIONS
ACKNOWLEDGEMENT AND AGREEMENT:

Receipt of the foregoing Escrow Instructions from RIDA1 and the City is hereby acknowledged. The undersigned agrees, for itself, and on behalf of ORTC, to proceed in strict accordance with these Escrow Instructions. The undersigned represents and warrants to RIDA1 and the City that the undersigned is authorized to execute this Acknowledgement and Agreement, for itself, and on behalf of ORTC.

Old Republic Title Company
By:
its:

Date:
4 2

RECORDING REQUESTED BY AND
AFTER RECORDATION RETURN TO:

City Clerk
City of Lathrop
390 Towne Centre Drive
Lathrop, CA 95330
Recorded for the benefit of the City of Lathrop
pursuant to Government Code Section 27383

THIRD AMENDMENT TO NOTICE OF SPECIAL TAX LIEN
City of Lathrop
Community Facilities District No. 2023- 1
River Islands Public Services and Facilities # 2)
Annexation No.

Pursuant to the requirements of Section 3117. 5 of the Streets and Highways Code of Califarnia and the Mello- Roos Community Facilities Act of 1982, as amended, Section 53311, et. seq., of the California Government Code ( the " Act"), the undersigned City Clerk of the City of Lathrop( the" City"), County of San Joaquin, State of California, hereby gives notice that a lien to secure payment of a special tax is hereby imposed by the City Council of the City on the property described in Exhibit A hereto. The special tax secured by this lien is authorized to be levied for the purpose of paying principal and interest on bonds, the proceeds of which are being used to finance the acquisition and construction of all or a portion of the public facilities authorized to be funded by the City of Lathrop Community Facilities District No. 2023- 1 ( River Islands Public Services and Facilities # 2) ( the " CFD"), and to pay costs of the public services and facilities authorized to be funded by the CFD, both as described in Exhibit A to the Notice of Special Tax Lien heretofore recorded in the Office of the County Recorder far the County of San Joaquin, State of California ( the " County Recorder") on June 28, 2023 as Document No. 2023- 050810 ( the Original Notice"), and said special tax is to be levied according to the Rate and Method of Apportionment of Special Tax set forth in Exhibit B to the Notice of Special Tax Lien, to which recorded Notice of Special Tax Lien reference is hereby made and the provisions of which are hereby incorporated herein in full by this reference.

This Third Amendment to Notice of Special Tax Lien amends the Notice of Special Tax Lien to add to the territory within the City of Lathrop Community Facilities District No. 2023- 1 River Islands Public Services and Facilities# 2) certain real property identified in Exhibit A hereto the " Property") and shown within the future annexation area on the boundary map of the community facilities district recorded on April 19, 2023, in Book 7 of Maps of Assessment and Community Facilities Districts at Page 55 ( Document No. 2023- 030264), in the Office of the County Recorder, which map is the final boundary map of the community facilities district. The Property is being annexed into Tax Zone 1 of the community facilities district, as described in the Rate and Method of Apportionment of Special Tax attached as Exhibit B to the Notice of Special Tax Lien, with the maximum special tax rates identified in Exhibit B hereto.

The assessor' s tax parcel( s) numbers of all parcels or any portion thereof which are included in this Third Amendment to Notice of Special Tax Lien, together with the name( s) of the owner( s) thereof, as they appear on the latest secured assessment roll as of the date of recording hereof or as are otherwise known to the Authority are as set forth in Exhibit A hereto which is by this reference made a part hereof.

For further information concerning the current and estimated future tax liability of owners or purchasers of real property or interests therein subject to the special tax lien, interested persons should contact the Finance Director, City of Lathrop, 390 Towne Centre Drive, Lathrop, California 95330; Telephone: ( 209) 941- 7327.

Dated: 2023.

By:

City Clerk,
City of Lathrop
2-

EXHIBIT A

CITY OF LATHROP
COMMUNIT' Y FACILITIES DISTRICT NO. 2023- 1
RNER ISLANDS PUBLIC SERVICES AND FACILITIES# 2)
ANNEXATION NO.

ASSESSOR' S PARCEL NUMBER( S) AND OWNER( S) OF LAND
WITHIN ANNEXATION NO._ TO CITY OF LATHROP
COMMUNIT' Y FACILITIES DISTRICT NO. 2023- 1
RIVER ISLANDS PUBLIC SERVICES AND FACILITIES# 2)
San Joaquin County
Name( s) of Property Owner( s) Assessor' s Parcel No.

RIVER ISLANDS DEVELOPMENT AREA 1, LLC 213- 610- 13, 213- 610-] 4, 213- 610- 15 73 W. STEWART RD.,
LATHROP, CA 95330
A- 1

EXHIBIT B

CITY OF LATHROP
COMMUNITY FACILITIES DISTRICT NO. 2023- 1
RIVER ISLANDS PUBLIC SERVICES AND FACILITIES# 2)
ANNEXATION NO._
MAXIMUM SERVICES SPECIAL TAX FOR ZONE 1 OF THE CFD
The table below identifies the Maximum Services Special Tax for Developed Property within Tax Zone 1, both before and after the Trigger Event:

Maximum Services Maximum
Special Tax in Tax Services Special
Zone 1 Prior to the Tax in Tax Zone 1
Trigger Event After the Trigger
Fiscal Year 2022- Event( Fiscal Year
T e of Pro e Lot Size 23)* 2022- 23)*
Residential Propert
Single Family Detached
Property
205.02 per SFD
Single Family Detached
Lot
Property Greater than 7, 000 SqFt $ 432. 29 per SFD Lot $ 165. 53 per SFD Lot
Single Family Detached 5, 801 to 7, 000 SqFt $ 349. 02 per SFD Lot $ 151. 87 per SFD Property 4, 801 to 5, 800 SqFt $ 320.21 per SFD Lot Single Family Detached 4, 000 to 4, 800 SqFt $ 272. 18 per SFD Lot Lot
Property Less Than 4, 000 SqFt $ 252. 96 per SFD Lot $ 129.09 per SFD Single Family Detached Not Applicable 0. 00 per Unit
Lot
Property Not Applicable 0. 00 per Unit 119. 97 per SFD
Single Family Attached
Lot
Property 0. 00 per Unit
Multi- Famil Pro ert 0. 00 per Unit

0. 00 per Non- 0. 00 per NonNon- Residential Property Not Applicable Residential Square Residential Square Foot Foot
On July 1, 2023, and on each July 1 thereafter, all figures shown fn the table above shall be increased by the Escalation Factor.

B- 1
MAXIMUM FACILITIES SPECIAL TAX FOR ZONE 1 OF THE CFD
The table below identifies the Maximum Facilities Special Tax for Developed Property within Tax Zone 1, both before and after the Trigger Event:

Maximum Maximum
Facilities Special Facilities Special
Tax in Tax Zone 1 Tax in Tax Zone 1
Prior to the Trigger After the Trigger
Event( Fiscal Year Event( Fiscal Year
T e of Pro e Lot Size 2022- 23)* 2022- 23)*
Residential Propert
Single Family Detached
Property 227.27 per SFD
Single Family Detached
Lot
Property Greater than 7, 000 SqFt $ 0. 00 per SFD Lot $ 183. 49 per SFD Single Family Detached 5, 801 to 7, 000 SqFt $ 0. 00 per SFD Lot Lot
Property 4, 801 to 5, 800 SqFt $ 0. 00 per SFD Lot $ 168. 34 per SFD Single Family Detached 4, 000 to 4, 800 SqFt $ 0. 00 per SFD Lot Lot
Property Less Than 4, 000 SqFt $ 0. 00 per SFD Lot $ 143. 09 per SFD Single Family Detached Not Applicable 0. 00 per Unit
Lot
Property Not Applicable 0. 00 per Unit 132. 99 per SFD
Single Family Attached
Lot
Property 0. 00 per Unit
Multi- Famil Pro ert 0. 00 per Unit

0. 00 per Non- 0. 00 per NonNon- Residential Property Not Applicable Residential Square Residential Square Foot Foot
On July 1, 2023, and on each July 1 thereafter until the first Fiscal Year after the Trigger Event, all figures shown in the table above shall be increased by the Escalation Factor. On July 1 of the first Fiscal Year after the Trigger Event, and on each July 1 thereafter, the Maximum Facilities Special Taxes shall increase by two percent( 2%) of the amount in effect in the prior Fiscal Year.

B- 2
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