HEINZ, ROBERT AND SHAREN - DEVELOPMENT AGRMNT

08/08/02 10:50 FAX 925 L84 8234 CITY - PLEASANTON 01012/022 Example 12B. City installs Part 5 water improvements after all Part 1 development occurs; these improvements cost 520.000 more than the initial estimate. The actual cost of these water improvements are used in determining the fees for development in all areas except Part 1, which has paid fees based on the initial estimate. Example 12C, Lot 9 develops in June 2000. paying its total fee. In September. developer of Lot 23 installs a portion of Part 2 infrastructure at 25% more cost than the initial estimate. Lot 9 developer or (future homeowners within Lot 9's development) do not owe any additional fee. The Lot 23 fee is adjusted to reflect the increase in the actual cost of the Part 2 infrastructure, with the credit adjusted to equal the full actual cost. This increase is also, allocated to all future development. Financing Program #13. Estimated costs for each unbuilt shared infrastructure improvement shall be adjusted annually on January 1 by the City Engineer based on the inflation factors found in the Engineering News Record for the most closely associated construction projects. Example 13A. Water mains are estimated to cost 510, 000. As ofJanuary 1. in Year 1, the ENR index shows a 5% increase for water line projects. The new estimated cost would be 510,000 x 1.05 = 510,500. In Year 2, if the water mains remain unbuilt and if the ENR rate is 4 %, the new cost would be 510.500 x 1.04 = 510, 920. Financing Program #14. Each year. on January 1, the interest for the past year or years owed to any developer entitled to reimbursement (Financing Program #20) or to the City for improvements made with funds other than Specific Plan fees shall be added to the total cost used in determining that year's Specific Plan fee. Example 1 4A. Developer A installed sewer improvements which cost 530.000 more than his total fee obligation. As ofJanuary 1 in Year 2. Developer A is entitled to reimbursement of the 530,000 plus 8% interest. or 53 2.400. The 532,400 figure is used in calculating the fee to be applied to all development in Year 2. Example 14B. City installs water improvements in Year 1 which cost 5100.000 using Water Fund monies. City is eligible for reimbursement to the Water Fund at the 8% rare. The fee in Year 2 would use SI 08.000 for the cost of these water improvements in calculating the Year 2 fee. 9