MOLLER RANCH - REIMBURSEMENT AGMT - MUIRWOOD DRIVE NO./SERENITY TERRACE IMPROVEMENTS

5. Reimbursement from Other Property Owners. City shall collect from the property owners within the Benefit Area reimbursement either based on the Engineer's estimate, or the final cost, of Improvements, depending on when the City collects the reimbursement (see paragraph 7). The reimbursement based on the Engineer's estimate to construct the Improvements is shown on the attached Exhibit A. The reimbursement based on the final cost of Improvements shall be as follows: Within 60 days after Developer completes the Improvements, Developer shall submit to the City Engineer the actual costs of the Improvements, certified by the Developer. The City Engineer shall review these costs, using a standard of reasonableness. If the City Engineer determines any cost is not reasonable or appropriate, the City Engineer shall adjust the Improvement costs accordingly. After the City Engineer approves the final cost of the Improvements, Exhibit A shall be revised to reflect the final cost of the Improvements. The reimbursement shall also be adjusted for interest (see paragraph 6) each January 1 following the year in which the City Engineer approves the final cost of the Improvements. The City will prepare an Exhibit showing the reimbursement, plus interest, after the final cost of the Improvements is approved. 6. Interest. Interest shall accrue on the reimbursement at the rate of 10% per annum. 7. Time of Collection. A. City shall collect the total reimbursement from property owners within the Benefit Area at the time the City first approves any final or parcel map for property within the Benefit Area. (If necessary, City shall include payment of this reimbursement as a condition of approval of any tentative map for property within the Benefit Area.) B. If at the time the City first approves such final or parcel map the reimbursement is based on the Engineer's estimate to construct the Improvements, City shall collect the total reimbursement based on such estimate. If the amount which the City collects is greater than the approved final cost of the Improvements, Developer shall repay to the property owner(s) who paid the reimbursement the difference, plus interest as provided in paragraph 6. If the amount which the City collects is less than the approved final cost of the Improvements, City will collect from the property owners in the Benefit Area the additional reimbursement at the time the City issues the first building permit for any property within the Benefit Area. C. If at the time the City first approves a final map for property within the Benefit Area the reimbursement is based on the final cost of the Improvements, City shall 2