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8 West End Donner Lake Project
DONNERTRUCKEE Public Resolution No. 2001 - AUTHORIZING THE ACCEPTANCE OF THE INSTALLATION OF PIPE AND APPURTENANCES FOR THE WEST END OF DONNER LAKE PROJECT AND DIRECTING FILING OF THE NOTICE OF COMPLETION WHEREAS, the Board of Directors of the Truckee Donner Public Utility District made the determination to install pipe and appurtenances for the west end of Donner Lake; and WHEREAS, the contract was awarded to Longo Incorporated of Alpine Meadows, California, and the contractor entered into an agreement with the District to perform the work; and WHEREAS, the District's Water Engineer, Neil Kaufman, has recommended that the work be accepted by the District; NOW THEREFORE BE IT RESOLVED by the Board of Directors of the District as follows: 1. That the District hereby accepts the INSTALLATION OF PIPE AND APPURTENANCES FOR THE WEST END OF DONNER LAKE PROJECT as complete. 2. That the Clerk of the District be directed to file with the County of Nevada the Notice of Completion, a copy of which is attached hereto. 3. That 35 days following the filing of the Notice of Completion, the 10% retained from the contractor payments be released to the contractor if no claims have been made to the District by materiel suppliers or laborers. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 28tt'day of November 2001 by the following roll call vote: AYES: NOES: ABSENT: A41 TRUCKEE DONNER PUBLIC UTILITY DISTRICT By James A. Maass, President of the Board ATTEST: Peter L. Holzmeister, Clerk of the Board smc RECORDING REQUESTED BY: Truckee Donner Public Utility District WHEN RECORDED, RETURN TO: TRUCKEE DONNER PUBLIC UTILITY DISTRICT Post Office Box 309 Truckee, CA 96160 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN: 1. That the name and address of the public entity for whom the improvement project was done, as owner thereof, is the TRUCKEE DONNER PUBLIC UTILITY DISTRICT, Post Office Box 309, Truckee, CA 96160. 2. That on November 28, 2001 the hereinafter described improvements were accepted as complete pursuant to a resolution of the Truckee Donner Public Utility District, the awarding authority. 3. That the subject improvements of the Notice are generally described and identified as follows: INSTALLATION OF PIPE AND APPURTENANCES FOR THE WEST END OF DONNER LAKE PROJECT. 4. That the name of the contractor for such project was: Longo Incorporated, 150 Alpine Meadows Road, Suite 4, Alpine Meadows, CA 96146. Dated: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By Peter L. Holzmeister, General Manager STATE OF CALIFORNIA COUNTY OF NEVADA On before me, Cathy A. Moore, personally appeared PETER L. HOLZMEISTER, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity,and that by his signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. Witness my hand and official seal. Cathy A. Moore, Notary TDPUD MEMORANDUM November 26, 2001 TO: Board of Directors FROM: Neil Kaufman, Water System Engineer SUBJECT: DONNER LAKE PIPELINE REPLACEMENT PROJECT — PHASE 1 CONTRACT B - CHANGE ORDER #2 AGENDA #� BACKGROUND: The Board of Directors previously awarded the Contract for construction of the Donner Lake Pipeline Replacement Project—Phase 1 —Contract B to Manuel Brothers(MBI). The project has been completed. I am requesting a Change Order to the Contract for issues covered under 14 general items. Item 1: The contract was based on a unit price bid. The attached table shows the differences between bid totals and the amounts actually constructed. This analysis results in $226,776.69 due from MBI to the District. Item 2: Change Order No. 1 covered the costs associated with 112.5 hours of rock excavation. An additional 22 hours of rock excavation was performed after the approval of Change Order No. 1. Certain portions of the workforce were forced into a standby mode while this rock excavation took place. MBI is due $7,265.44 for delays associated with rock excavation. Item 3: Change Order No. 1 covered the costs associated with seven locations where the existing water pipelines sprang leaks into the excavated trenches, causing delays in the work while the line was repaired by PUD personnel. One additional leak occurred after the approval of Change Order No. 1 . MBI is due $834.16 for work performed associated with this leak. Item 4: The conditions of the Placer County Encroachment Permit required the use of slurry backfill around storm drains. This requirement was not originally included in the Contract Documents. MBI is due $809.73 for this work. Item 5: Change Order No. 1 covered eight locations where it was necessary to install additional services, plug services that had been installed, or move meter boxes that had already been installed. These changes in the work were necessary to correct situations in the field that were previously unknown to the District and were not indicated on the maps received from Del Oro Water Page 1 Company. This problem occurred a few times after the approval of Change Order No. 1. MBI is due $5,123.29 for this work. Item 6: There are a few locations where Manuel Brothers was directed by the District to perform potholing to locate services not shown on the maps and which District personnel could locate with field equipment. MBI is due $826.92 for this work. Item 7: Modifications were performed to a few fire hydrants after their installation at the District's direction. One fire hydrant was relocated after it was installed. MBI installed a new tapping sleeve and put a blind flange cap on the old hydrant tee. Extensions were installed in a few other locations. MBI is due $3,651.80 for this work. Item 8: There are a number of locations where the pipeline alignment was changed to avoid known utilities. These changes required additional materials and effort beyond that indicated in the drawings. MBI is due $8,710.93 for this additional work. Item 9: The tie-in between the existing Red Mountain Tank 6-inch inlet/outlet pipeline and the new 12-inch pipeline was detailed in the Contract Documents. This was intentionally left out with the assumption that this connection would be included in the contract for the new Red Mountain Tank. When the decision was mad to postpone the new Red Mountain Tank until 2002, it became necessary for MBI to perform this work. MBI is due $14,357.70 for this additional work. Item 10: The design of the tie-ins between new 12-inch pipeline in Southshore Drive and the existing 2-, 4- and 6-inch pipelines was modified to include an additional gate valve. MBI installed two additional valves for a total of $813.86. Item 11: The contractor experienced great difficulty in removing air pockets fro the new pipeline. Failure (or inability) to remove the air pockets typically leads to failed pressure/leakage tests. The tests are failed not because of poor construction or leaks, but because the fact that air will dissolve into water. Dissolving of the air into the water results in a lower system pressure, which then fails the test. The Contractor ended up installing a number of temporary facilities to remove air from the pipeline. The need for these additional facilities is based on the following causes: A) Under normal construction practices, newly constructed pipelines would be flushed at a velocity of about five feet per second. This flushing serves to remove dirt and debris from the new pipeline. It also serves to Page 2 help purge air pockets trapped within the pipeline. A 12-inch pipeline would require a flow rate of about 1,750 gpm to reach a velocity of 5 feet per second. However, due to capacity problems with the existing 6-inch pipeline, and considering that water had to be discharged into the sewer system, flushing rates were limited to about 150 gpm (0.5 feet per second). Flushing at such low velocities probably resulted in additional air being introduced into the pipeline, as opposed to removing it. B) Normal construction practices in warm climates dictate the installation of air release valves at relative high points in pipeline systems. However, air release valves must be exposed to the atmosphere and are very prone to freezing, with resulting cracks and leakage. The District directed that no air release valves be installed on the pipeline. The Contract Documents called for the installation of two air release valves. Neither of these was actually installed, at the direction of the District. This decision was made with the understanding that testing of the pipeline would likely be more difficult. I believe that MBI is due additional compensation related to testing, considering that the District deliberately omitted air valves that were later needed by the Contractor to purge air from the pipeline and considering that the existing system could not provide adequate volumes of water to flush air pockets from the pipeline. MBI is requesting$24,091 .87 associated with this issue. Item 12: The location of Contract B was such that all construction was required to move through the work area of Contract A. MBI anticipated that some delays in construction traffic would be encountered and included the cost of two additional dump trucks in their Bid for a portion of the project. Due to delays encountered by MBI in moving traffic through the Contract A work zone it became necessary to add two additional dump trucks above and beyond the two originally anticipated. I believe that MBI is due some additional compensation for costs associated delays that could not be reasonably foreseen. I agreed that MBI would cover the cost of one additional truck(the third truck) and that the District would compensate MBI for the fourth truck. MBI is due $14,586 for this issue. Item 13: During the punch list walkthrough, District operations staff identified a number of locations where additional pavement was desired to address drainage concerns and protect District facilities. MBI is due $2,276.07 for this additional pavement. Item 14: During the punch list walkthrough, District operations staff determined that installation of bollards was necessary to protect fire hydrants at a few locations. MBI is due $2,607.06 for installation of these bollards. Page 3 RECOMMENDATION: I recommend that the Board authorize Contract Change Order #2, in the amount of a $141,436.65 credit to the District. Attachment-Contract Change Order #2 Page 4 NOV-26-2001 13:54 MANUEL BROS INC L 01991001329 P.06i07 TRUCKEE . .� u�iiiuui Change Order PjbNc Utility District Contract Name: DONNER LAKE PIPELINE REPLACEMENT—PHASE 1 —CONTRACT B Contract Change Order No: 2 Orig. Contract Amt.$ 2,473,265.00 Days NA Date: November 26, 2001 Prev. Apprd Changes$ 89 070.02 Days NA Contractor: Manuel Brothers This Change$ -141,436.65 Days NA Revised Contract Amt.S 2,420,898.37 Days NA This Change Order covers changes to the subject Contract as Described herein. The Contractor shall construct, furnish equipment and materials, and perform all work as necessary or required to complete the Change Order Items for a lump sum price agreed upon between the Contractor and District. Increase in (Decrease) Contract Time Contract in Contract Extension Description of Changes Amount $ Amount $ (days) 1) Adjustment of Bid Units vs.Actual Construction $226,776.69 NA 2) Rock Excavation $7,265.44 NA 3) Water Leaks $834,16 NA 4) Additional Work Required by Placer County $809.73 NA 5) Modifications to Water Services 35,123.29 NA 6) Potholing $826.92 NA 7) Fire Hydrant Modifications $3,651.80 NA 8) Alignment Changes $8,710.93 NA 9) Red Mountain Tank Site Piping $14,357.70 NA 10) Additional Valves $813.86 NA 11) Pipeline Testing $23,477.08 NA 12) Additional Trucking $14,586.00 NA 13) Additional Pavement $2,276.07 NA 14) Bollards $2,607.06 NA (as Described in CCOs 8 and 20-41) Totals $85,340.04 $226,776.69 Net change in contract amount (increase or decrease) $141,436.65 The amount of the Contract will be increased (decreased) by the sum of ($141.436.65) and the Contract Time shall not be extended. The undersigned Contractor approves the foregoing Change Order as to the changes, if any, in the contract price specified for each item including any and all supervision costs and other miscellaneous casts relating to the change in work, and as to the extension of time allowed, if any, for completion of the entire work on Page 1 NOV-26-2001 13:53 MRNUEL BROS INC L 01991001329 P.03i07 account of said Change Order. The Contractor agrees to furnish all labor and materials and perform all other necessary work, inclusive of the directly or indirectly related to the approved time extension, required to complete the Change order items. This document will become a supplement of the contract and all provisions will apply hereto. It is understood that the Change Order shall be effective when approved by the District_ Accepted: -� ' t9. /Contractor Date: (Si(Signature) Approved: /District Date: (Signature) Page 2 Analysis of Bid Quantities vs.Actual Quantities Constructed Donner Lake Pipeline Replacement Project-Phase 1-Contract 8 Contractor: Manuel Brothers Inc. ° Bid Quantities Actual Quantities Bid Item Desorption Quantity Units Unit From I Subtotal Quantity Units Unit Price ubtotal 1 Mobilization 1 LS S 29,400,00 $ 29,400,00 1 LS S 29,400,00 $ 29,400.00 2 Record.and Submittals 1 LS $ 8,82500 $ 8,825.00 1 LS $ 8.825.00 $ 8,825.00 3A 12"DI Water Main with 4"PE Gas Pipe from Point Drive to 14270 Southshore Drive 4940 FT $ 108.60 S 536,484.00 362 ET $ 108.60 S 39,313.20 3A-RI 12'PVC Water Main with 4"PE Gas Pipe from Point Drive to 14270 Southshore Drive 0 FT NA NA 4714 FT $ 106,07 $ 500.013.98 38 12'DI Water Main with 4"PE Gas Pipe from 14270 Southshore Drive to East End of Project 2050 FT $ 13000 S 267,115.00 2277 FT $ 130.30 S 296,693.10 3C 12'DI Water Main without Gas Pipe 1660 FT $ 108.60 $ 180,276.00 0 FT $ 108.60 $ - 3C-R1 12'PVC Water Main without Gas Pipe 0 FT NA NA 58C FT $ 106.07 S 61,520.60 30 Two 12-DI Water Mains with 4"PE Gas Pipe as given in Detail A on Sheet C-12 600 FT $ 142cri S 85,200.00 0 FT S 142.00 $ - 3D-R1 12'DI Water Main&8'DI Water Main with 4"PE Gas Pipe as given in Detail A on Sheet C-12 0 FT NA NA 487 FT S 137.19 S 66,811.53 4A W Di Water Main with 4"PE Gas Pipe 1500 FT $ 100.00 S 1 Kneeing 2018 FT $ 100.00 $ 201,800 00 4A-81 8"PVC Water Main with 4'PE Gas Pipe 0 FT NA NA 175 FT $ 98.58 $ 17,251.50 413 8'DI Water Main without Gas Pipe 400 FT $ 100.00 $ 40,000.00 10 FT $ Plana S 1,000.00 5A 1"PE Water Service lateral with l"PE Gas Pipe 100 FT $ 44A0 $ 4,440.00 0 FT $ 44.40 $ - 58 1"PE Water Service lateral without Gas Pipe 3800 FT S 44A0 $ 168,720.00 2344 FT $ 44A0 $ 104,073.60 6A 15Y PE Water Service Lateral with 1"PE Gas Pipe 3000 FT $ 53.10 $ 159,300.00 0 FT It 53.10 $ - 6B 1.5"PE Water Service Lateral without Gas Pipe 100 FT $ 5310 $ 5,31000 1447 FT $ 53,10 $ 76,835,70 ]A Single Ve Water Meter Assembly for Non-traffic Areas 2 EA $ 1,650.0c) $ 3,3o0.00 44 EA $ 1,650.00 $ 72,600,00 7B Single 14"Water Meter Assembly for Traffic Areas 2 EA $ 2,225.00 $ 4,450.00 18 EA $ 2,225.00 $ 40,050.00 8A Double VO Water Meter Assembly for Non-traffic Areas 40 EA S 2,14000 $ 85,600.0D 43 EA $ 2,140.00 $ S2,020.00 88 Double W Water Meter Assembly for Traffic Areas 53 EA $ 2,935.00 $ 155,555.00 17 EA $ 2,935.00 $ 49,895,00 9 12"Gate Valve Assembly 16 EA $ 1,470.00 $ 23,520,00 10 EA $ 1,4`0.00 $ 14,700.00 10 W Gate Valve Assembly 5 EA $ 822.00 $ 4,110.00 9 EA $ 822,00 $ 7,398,00 11 Fire Hydrant Assembly and Lateral 19 EA $ 5,630.00 S 106,970.00 24 EA $ 5,630.00 $ 135,120.00 12 i"Air Valve Assembly 2 EA $ 4,120,00 $ 8,240.00 0 EA $ 4,12000 $ - 13 2"Blow-011 Assembly 6 EA $ 2,185,00 $ 13,110.00 1 EA $ 2,185.00 $ 2,185,00 14 Asphalt Cement Paving 2000 Tons $ 89.00 $ 178,000.00 1689.44 Tons S 69.00 $ 150,360.16 15 Aggregate Fees 17M Tons $ 10,65 $ 18,105.00 310904 Tons $ 10.65 S 33,11128 16 Revegetation 23000 Sq.ft. $ 0.88 $ 15,640.00 18387 Sq,ft. $ 0.68 $ 12,503,16 17A Perform connectors to existing 2-inch pipelines 2 EA $ 2,180.00 $ 4,360.00 2 EA S 2,180.00 $ 4,36000 176 Perform connections to existing 4�rnch pipelines 1 EA $ 2,340,00 $ 2,340.00 0 EA S 2QuO.00 $ - 1lC Perform connections to existing 6-inch pipelines 1 EA S 3,130.00 S 3,130.00 0 EA $ 3,130.00 $ 18 All Other Work Required by the Contract Documents 1 LS $200,000.00 $ 200,000.00 1 LS $200,000.00 $ 200,000 00 19 Demobilization 1 LS S 11,765.00 $ 11,765.00 1 LS $ 11,76500 $ 11,76500 Rock Excavation-John Deere 690 with 400016 hammer 0 HR $ 160.00 $ - 2 HR $ 180.00 $ 320.00 Rock Excava tion-John Deere 710 with 12Mto hammer 0 HP S 12500 $ 132.5 HR $ 125.00 $ 16,562.50 S 2,4]3.265.00 $ 2,246,488.31 Difference Owed to Manuel Brothers $1226,776.69) TRUCKEE DONNER Public District Resolution No. 2001 AUTHORIZING THE ACCEPTANCE OF THE DONNER LAKE PIPELINE REPLACEMENT PROJECT, PHASE 1, CONTRACT B, AND AUTHORIZING THE FILING OF THE NOTICE OF COMPLETION WHEREAS, the Board of Directors of the Truckee Donner Public Utility District made the determination to undertake DONNER LAKE PIPELINE REPLACEMENT PROJECT, PHASE 1, CONTRACT B ; and WHEREAS, the contract was awarded to Manuel Bros., Inc. of Grass Valley, California, and the contractor entered into an agreement with the District to perform the work; and WHEREAS, the District's Water Engineer, Neil Kaufman, has recommended that the work be accepted by the District; NOW THEREFORE BE IT RESOLVED by the Board of Directors of the District as follows: 1. That the District hereby accepts DONNER LAKE PIPELINE REPLACEMENT PROJECT, PHASE 1, CONTRACT B as complete. 2. That the Clerk of the District be directed to file with the County of Nevada the Notice of Completion, a copy of which is attached hereto. 3. That 35 days following the filing of the Notice of Completion, the 10% retained from the contractor payments be released to the contractor if no claims have been made to the District by materiel suppliers or laborers. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 28`h day of November 2001 by the following roll call vote: AYES: NOES: ABSENT: Y TRUCKEE DONNER PUBLIC UTILITY DISTRICT By James A. Maass, President of the Board ATTEST: Peter L. Holzmeister, Clerk of the Board smc RECORDING REQUESTED BY: Truckee Donner Public Utility District WHEN RECORDED, RETURN TO: TRUCKEE DONNER PUBLIC UTILITY DISTRICT Post Office Box 309 Truckee, CA 96160 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN: 1. That the name and address of the public entity for whom the improvement project was done, as owner thereof, is the TRUCKEE DONNER PUBLIC UTILITY DISTRICT, Post Office Box 309, Truckee, CA 96160. 2. That on November 28, 2001 the hereinafter described improvements were accepted as complete pursuant to a resolution of the Truckee Donner Public Utility District, the awarding authority. 3. That the subject improvements of the Notice are generally described and identified as follows: DONNER LAKE PIPELINE REPLACEMENT PROJECT, PHASE 1, CONTRACT B. 4. That the name of the contractor for such project was: Manuel Brothers,Inc.,908 Taylorville Rd.,Grass Valley, CA 96949. Dated: TRUCKEE DONNER PUBLIC UTILITY DISTRICT By Peter L. Holzmeister, General Manager STATE OF CALIFORNIA COUNTY OF NEVADA On before me, Cathy A. Moore, personally appeared PETER L. HOLZMEISTER, personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. Witness my hand and official seal. Cathy A. Moore, Notary Agenda Item # ' N DONNER Public Utility District Memorandum To: Board of Directors From: Peter Holzmeister Date: November 27, 2001 Subject: Applications for exemptions from Donner Lake Assessment District Attached are letters I drafted for use by Donner Tract and Wolfe Estates to apply for exemption from assessment by Donner Lake Assessment District. Our policy requires an applicant to file an application on a form approved by the General Manager of the District. This is the form that I have devised to gather the pertinent information. As of the writing of this memorandum I do not yet have a signed application from Donner Tract or Wolfe Estates. I have spoken with Rene Fugasi, representing Wolfe Estates, and she has some concerns over the application, and the requirement to place a further restriction on their open space parcels. I have also spoken with Peter Gerdin, representing Donner Tract. They are both reviewing the draft application letter, The form of the application is fairly simple. The applicant identifies the parcels for which exemption is sought. Applicant identifies the nature of the homeowner association, certifies that they will comply with the limitations in the definition of common area and will file a deed restriction to that effect. The approval by the Board, if approval is granted, is not effective until the deed restriction is recorded. I am proposing that this process be the standard for dealing with similar applications for exemption. RECOMMENDATION: subject to receiving executed applications from Donner Tract and Wolfe, I recommend that the Board approve the requests. November 27, 2001 Peter L. Holzmeister General manager Truckee Donner Public Utility District P.O. Box 309 Truckee, California 96160 Dear Mr. Holzmeister. The Donner Tract Improvement Association Board of Directors hereby applies for exemption from assessment by the Donner Lake Assessment District in accordance with TDPUD's resolution providing for the exemption of common area parcels. This application requests that the following parcels be recognized as"common area" and therefore be exempted from assessment: APN 17 320 02 APN 17 420 08 APN 17 420 34 APN 17 420 35 APN 17 420 36 APN 17 420 37 APN 17 420 38 APN 17 420 39 APN 17 420 40 APN 17 420 41 APN 17 420 42 APN 17 430 02 APN 17 430 09 APN 17 430 14 APN 17 430 15 In return for exemption from the Assessment District we will irrevocably dedicate and restrict, pursuant to a deed restriction enforceably setting forth that said parcels are and shall be dedicated and restricted in perpetuity so as to meet the definition of common area as defined in the TDPUD resolution. We recognize that common area use shall not include any professional or commercial activity of any kind or nature, including rental of a common area, and the improvements which may be made thereon shall be limited to the following uses and improvements, none of which shall ever be connected to any water system nor require water service: (a) Paths or walkways for pedestrians, equestrians, and bicyclists, whether paved or unpaved, which shall not exceed six (6) feet in average width, and uses associated with such paths or walkways; (b) Picnic tables and uses associated therewith; (c) Security fences, (d) Steps leading to beach areas, and use of the Common Area for beach access and beach use; (e) Gazebos and other non-enclosed or partially enclosed structures, not exceeding 100 square feet in floor area, and uses associated with such structures; (f) Docks extending into Donner Lake, and uses associated therewith. (g) Paved or unpaved driveways and parking. We declare that Donner Tract Improvement Association is formally and duly organized as a nonprofit mutual benefit corporation that contained not less than three unimproved parcels at the time the association was formed. We further declare that the association owns and controls the above listed parcels for the common use and enjoyment of association members. No structures, buildings, improvements. water service (including irrigation purposes), or occupancy greater in scope than the list of permissible structures and uses set forth above, as such list may be amended from time to time, shall be permitted Attached is a preliminary title report for each parcel involved in this application. Upon approval of this application by the Board of Directors of TDPUD the attached deed restriction shall be recorded. We recognize that any exemption from assessment approved by the board of Directors of TDPUD shall not become effective unless and until said declaration or restrictions is recorded. Very truly yours, Peter Gerdin DTIA Board Member and Water Commissioner Fidelity National Title Company OF CAL IFOFNIA PRELIMINARY REPORT In response to the application for a policy of title insurance referenced herein, Fidelity National Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage of said Policy or Policies are set forth in Exhibit A attached. Copies of the Policy forms should be read. They are available from the office which issued this report. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. if it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. The Policy(s) of title insurance to be issued hereunder will be policy(s) of Fidelity National Title Insurance Company, a California corporation. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to the land. //�� FIDELITY NATIONAL TITLE COMPANY OF CALIFORNIA BY l/_> f Countersigned a SEAL ATTEST Fidelity National Title Company OF CALIFORNIA 11357 Donner Pass Road, #E • Truckee, CA 96161 (530) 587-3845 • FAX (530) 587-2947 PRELIMINARY REPORT ESCROW OFFICER: Lori Pynappel ORDER NO.: 83309 TITLE OFFICER: Dennis Chandler LOAN NO.: TO: to follow SHORT TERM RATE: No PROPERTY ADDRESS:Vacant lots and land, Truckee, California EFFECTIVE DATE: October 18, 2001, 07:30 A.M. The form of Policy or Policies of title insurance contemplated by this report is: 1 . THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A Fee 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: Donner Tract Improvement Association 3. THE LAND REFERRED TO IN THIS REPORT IS SITUATED IN THE THE TOWN OF TRUCKEE, IN THE COUNTY OF NEVADA, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: SEE EXHIBIT "ONE" ATTACHED HERETO AND MADE A PART HEREOF DC1ks 11/01 i 2001 1 Order No. 83309 EXHIBIT "ONE" The land herein referred to is situated in the County of Nevada, State of California, and is described as follows: Parcel One: A portion of the Lot 1 of Section 13, Township 17 North, Range 15 East, M.D.M., Donner Lake, Nevada County, California, described as follows: Beginning at the intersection of the southerly right of way line of Old U.S. Highway 40 (Rt. III Nev 37D) and the Easterly line of Section 13, Township 17 North, Range 15 East, M.D.M., as shown on the map of Donner Pines Tract filed in the office of the County Recorder of Nevada County, California in Book 1 of Maps, at page 84, from which point the Northeast corner of Section 13 bears North 144.18 feet; thence from the point of beginning along the southerly right of way line in a Westerly direction as follows: North 860 24' West 251.62 feet to a point lying 40 feet radially southerly from Engineers Centerline Station 103.55.6 E.C.; thence along the arc of a curve to the left, with a radius of 1760 through a central angle of 170 41' 04", a distance of 543.23 feet to a point lying 60 feet radially southerly from Engineer's Centerline Station 98+00 P.O.C.; thence leaving the southerly right of way line, radially from the described curve, South 140 05' 04" East 130 feet more or less to the Ordinary Low Water line of Donner Lake; thence along the Ordinary Low Water Line, in an Easterly direction, 820 feet more or less to its intersection with the Easterly line of Section 13; thence along the Easterly line of Section 13, North 188 feet more or less, to the point of beginning. Parcel Two: Lots 5, 6, 27, 28, 29, 30, 31, 44, 45, 51 , 52, 55, 56, and 57 of Donner Lake Tract, as shown on the Official Map thereof, filed in the office of the Nevada County Recorder on May 31, 1968, in Book 3 of Subdivisions, at page 8. 2 Order No. 83309 AT THE DATE HEREOF, ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1, Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 2001-2002, Assessor's Parcel Number . Code Area Number: 1st Installment: $0.00 2nd Installment: $0.00 Land: $0,00 Improvements: $0.00 Exemption: $ Personal Property: $ 2. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. 3. Truckee-Donner Public Utility District taxes, assessments or obligations. Taxes are currently collected with the general county taxes. 4. Tahoe-Truckee Sanitation Agency and Truckee Sanitary District taxes or assessments. 5. Rights of the public as to any portion of the land lying within the area commonly known as Donner Pass Road. 6. Any adverse claim based upon the assertion that: a. Some portion of said land has been created by artificial means, or has accreted to such portion so created. b. Some portion of said land has been brought within the boundaries thereof by an avulsive movement of Donner Lake, or has been formed by accretion to any such portion. 7. Rights and easements for navigation and fishery which may exist over that portion of said land lying beneath the waters of Donner Lake. g, The fact that the ownership of said land does not include rights of access to or from the street, highway, or freeway abutting said land, such rights having been relinquished by the document, Recorded: February 27, 1967, Book 417, Page 279, of Official Records Affects: All lots adjacent to Highway 80. 3 ITEMS: (Continued) Order No. 83309 9. Easement(s) for the purpose(s) shown below and rights incidental thereto as reserved in a document; Reserved by: The United States of America Purpose: For ditches and canals Recorded: July 3, 1967, Book 423, Page 613, of Official Records Affects: The exact location and extent of said easement is not disclosed of record. 10. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document; Granted to: The Pacific Telephone and Telegraph Company and Sierra Pacific Power Company Purpose: For facilities Recorded: July 3, 1967, Book 423, Page 614, of Official Records Affects: As shown on the map. 11. Easement(s) for the purposeis) shown below and rights incidental thereto as granted in a document; Granted to: James H. Hooper, et ux Purpose: For water pipe line Recorded: July 3, 1967, Book 423, Page 618, of Official Records Affects: As shown on the map. 12. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document; Granted to: Samuel A. Snyder, et ux Purpose: For water pipeline Recorded: July 3, 1967, Book 423, Page 621, of Official Records Affects: As shown on the map. 13. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document; Granted to: Glenn A. Bowlsby, et ux Purpose: For water pipe line Recorded: July 3, 1967, Book 423, Page 624, of Official Records Affects: As shown on the map 14, Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document; Granted to: Title Insurance and Trust Company Purpose: For water service purposes Recorded: March 13, 1969, Book 469, Page 330, of Official Records Affects: As shown on the map 15, Easement(s) for the purposeis) shown below and rights incidental thereto as granted in a document; Granted to: Carvel W. Wood, at ux Purpose: For water service purposes Recorded: March 19, 1969, Book 469, Page 494, of Official Records Affects: As shown on the map. 4 ITEMS: (Continued) Order No. 83309 16. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document; Granted to: Gene 0. Miller, at ux Purpose: For water pipeline Recorded: April 25, 1969, Book 472, Page 378, of Official Records Affects: As shown on the map 17. Easements and reservations, together with rights incidental thereto, as shown on the official map of Donner Lake Tract, as follows: a) Rights of way and easements for snow removal on, over, and across strips of land having a right angle width of 10 feet, lying within the lots and contiguous to the areas shown as Lanes and Avenues. b) Rights of way and easements for drainage pipes and ditches and all appurtenances thereto, on, over, across and under those strips of land shown hereon and designated as "Drainage Easement" (D.E.) c) Rights of way and easements for water, gas, sewer and drainage pipes, conduits and ditches and for poles and overhead and underground wires and conduits for electrical and communication services together with all appurtenances thereto, on, over, under and across those strips of land lying between the rear or side lines of the lots or both and the lines shown hereon and designated "Public Utility Easements" (P.U.E.) 18. Covenants, conditions and restrictions (deleting therefrom any restrictions indicating any preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin) as set forth in the document Recorded: June 28, 1968, Book 450, Page 89, of Official Records NOTE: Section 12956-1 of the Government Code provides the following: If this document contains any restriction based on race, color, religion, sex familial status, marital status, disability, national origin, or ancestry, that restriction violates state and federal housing laws and is void. Any person holding an interest in this property may request that the county recorder remove the restrictive language pursuant to subdivision (c) of Section 12956.1 of the Government Code. 19. Easement(s) for the purposes) shown below and rights incidental thereto as granted in a document; Granted to: Truckee Sanitary District Purpose: For sewer line Recorded: December 17, 1970, Book 538, Page 126, of Official Records Affects: As shown on the map. 20. Easement(s) for the purposes) shown below and rights incidental thereto as granted in a document; Granted to: Truckee Sanitary District Purpose: For sewer line Recorded: December 17, 1970, Book 538, Page 267, of Official Records Affects: As shown on the map. 5 ITEMS: (Continued) Order No 83309 21. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document; Granted to: Truckee Sanitary District Purpose: For sewer line Recorded: December 17, 1970, Book 538, Page 270, of Official Records Affects: As shown on the map 22. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document; Granted to: Truckee Sanitary District Purpose: For sewer line Recorded: December 17, 1970, Book 538, Page 273, of Official Records Affects: As shown on the map. 23. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document; Granted to: Truckee Sanitary District Purpose: For sewer line Recorded: December 17, 1970, Book 538, Page 302, of Official Records Affects: As shown on the map 24. Easement(sl for the purpose(s) shown below and rights incidental thereto as granted in a document; Granted to: Truckee Sanitary District Purpose: For sewer line Recorded: December 17, 1970, Book 538, Page 345, of Official Records Affects: As shown on the map 25. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document; Granted to: Truckee Sanitary District Purpose: For sewer line Recorded: March 14, 1972, Book 592, Page 685, of Official Records Affects: As shown on the map 26. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document; Granted to: Southwest Gas Corporation Purpose: For gas pipe line Recorded: January 6, 2001, Instrument No. 2001-18169, of Official Records Affects: As shown on the map 27, A pending assessment as shown below. The assessment shall become a lien on said land when Notice of the assessment is recorded with the County Recorder, District: Donner Lake Assessment 00-1 Purpose: For assessment Approximate Amount: $0.00 6 ITEMS: (Continued) Order No. 83309 28. Matters which may be disclosed by an inspection and/or by a correct ALTAiACSM Land Title Survey of said land that is satisfactory to this Company, and/or by inquiry of the parties in possession thereof. 29. Any rights of the parties in possession of a portion of, or all of, said land, which rights are not disclosed by the public record. This Company will require, for review, a full and complete copy of any unrecorded agreement, contract, license and/or lease, together with all supplements, assignments and amendments thereto, before issuing any policy of title insurance without excepting this item from coverage. The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents. END OF ITEMS Note 1. None of the items shown in this report will cause the Company to decline to attach CLTA Endorsement Form 100 to an Extended Coverage Loan Policy, when issued. Note 2. There are NO deeds affecting said land, recorded within twenty-four (24) months of the date of this report. Note 3. Section 12413.1, California Insurance Code became effective January 1, 1990. This legislation deals with the disbursement of funds deposited with any title entity acting in an escrow or subescrow capacity. The law requires that all funds be deposited and collected by the title entity's escrow and/or subescrow account prior to disbursement of any funds. Some methods of funding may subject funds to a holding period which must expire before any funds may be disbursed. In order to avoid any such delays, all fundings should be done through wire transfer, certified check or checks drawn on California financial institutions. Note 4. The charge where an order is cancelled after the issuance of the report of title, will be that amount which in the opinion of the Company is proper compensation for the services rendered or the purpose for which the report is used, but in no event shall said charge be less than the minimum amount required under Section 12404.1 of the Insurance Code of the State of California. If the report cannot be cancelled "no fee" pursuant to the provisions of said Insurance Code, then the minimum cancellation fee shall be that permitted by law. Note 5. California Revenue and Taxation Code Section 18668, effective January 1, 1991, requires that the buyer in all sales of California Real Estate, wherein the Seller shows an out of State Address, withhold 3-1/3% of the total sales price as California State Income Tax, subject to the various provisions of the law as therein contained. t 2 3 4 _ 151 SCALE IN 1110 OF AN INCH POR. N %2 NE. %4 NE %4 SEC 13 T 17N, R 15 E, M.D.B. 8 M. Tax Area Code 17 32 3-021 ' -------- i I` 42 �'-------� ' I 4B9•oz•I. ' ROBIN LANE a.B9•oz•w Ga3,Fo•� rz7 O T f3 1 l9 4 S O Y' !0 0 0 13 h f2 � II � rB..I. 9 ,•8... T � O � ' 19 . .� aB0 a r.I�ST� c . S.Y' � .—�,,.—reap• 3 ti °_— .. ROAD I z aa' so' d—o —,r-- ws.g 32 2 o� sZ O e pONNER aQr. 3 s ' ti m J i O q DO ' LAKE z Bk. lB I LAKE 28 ASSESS R'S PARCEL MAP TRUC EW INC. RS.ISION, SUB. 8k.1 Pg.32 d+r.rbr.arow „ Assessor's Mop Bk.l7- Pg. 32 TRUCKEE C. R5. Bk.'II Pg.67 rw.r.oraaa.acwn.Mweafe ra+�a+ County of (Vevoda, Calif. 1962'-"" a-r-is h'O7E-Arsessart Block Nembers Shorn In El Upsesa_j_n`e Asse:,aA Fbrnt NvM ,s SAora In Circles 3 z_17. r+�r3 l 1 31 31 41 11 llllj � sill ,,e) SCALE IN Y/YO OF AN INCH S%2 SE 'iq SE %a SEC. 12 T.17N„ R,15E., M.D.B.& M. Toa A,eo Code r� 3-021 17-42 02 INTERSTATE BO-FREEWAY 6 � I I ' - TANAG low LANE n3 ' ,3t O O S9 a i e n.re . u s,oe' •a.., ---'�� l I one r3 1 (43a O a, G 10 j •. 2� ` 26 . o 24 29 29 ! 27 A .n,pf. rP • IS 12 z O 33 • „ 5 12 y� yp1W •> Z] ,. 1 36 A p 13 ec.tr• ql--\\4 WSA n r' 33 O 32 28 14 S nd� .< 28 pp81N S _ .1 e 2 2a EI I6 C •.u.u. "h..r• y+ ae � W \y^�^ 8 l I w.w e. 4pE A i! 9 4' oe ea Ib t00' 39 � � 17 2° � ` i � O �'• 2 k e � OIse ACt w,. fi 55 13 23 i 1 O e ..lifC 1 A % ? 94 51 3] AfIr ROBIN •d R -• � " I 1 nnl" 1 1 ,•1 1 I 1 �� .. LANE/ E .efe' 12 t LAKEVIEW SUBDIVISION ! JJ~ PASS 32 ROAD — ~ DONNER _'"'—'—"` — Assessor's Mops Bkl7 P9.42 TRUCKEE INC. IRS. Bk,ll P9.67F.RCEL� 1` CounryofNevodo,Colif. OONNER LAKE TRACT SUB. Bk.3 Pp.B `�`D'"""'""'""""'"'0 br"> ..-er>a en awR.AavPa'P Ww. 1963 5-�_T31-I-at .. . .. . . w o-v°°aofpp. Mr'bd u"vt°'wuro °✓'(:Pi s.rw s-/-tz i F""T"T 2 3 q 5 SCALE IN 1/90 OF nm INCN S'/2 SW '/4 SE '/q SEC. I2 T.17N., R.15N., M.D.B. 8, M. Tox A,eo Code 17_ 43 3-021 93 8 C 37 OZ •i.w it _._._____ \ �''o. \__.__ 42 \ 36 ML gyp( 51 .d sO $j L67 ACk 3 pP6E' ••.e'° 46 eo O A \NS�Ps .4f. 50 39 O02 1.21 AC,f !! 99 m.W .fese' I AVE. 1 11t' 1 LAKEVIEW SUBDIVISION 31 Assessor's Mop Sk.17 Pg.43 ASSESSOR'S PARCEL MAP TRUCKEE INC, RS. Sk.11 Pg,67 wow«a''w.,b°�P17L;,«o"w,. County of Nevada, Calif. ,w a e,n aw.n.A....or.a+9.w - DONNER LAKE TRACT SUB. Sk.3 Pg.8 a"`m7mnvh..,qca u�x>p'a"s 1969 s-,,e s1nS i rfY JO 35 Ss31 1' -KEY MAP. ev t o,/t N'S E'er r � '45 � • JC 0 ✓' 0 JI¢ V�¢I,t a 33 y1 r o F 0 44 1`� A O p,. V A P, A.o n° !�¢\ 5'n�zg \� �yN \�_ . 9ea•JG'zzw " �. ,40 q,Ycn,. 33„ r sN\ 50 �� `r• J� . 2 / r( -0' // S r9 3 f i✓''%9 s !O'J � '\nVE9'7J"591Y—\�o � '\ ? \\\.N23 L5`�9"yY .,_;�',Y 39 �.13:.e"� 6 1 yam, •m 'Sot moo p. - ..\ Ig3-Cd S o f 52 _. 53 t'? ryL o ua�°'' i2! t - « r.)/\� ant ' 'r 5 nr. /'�- U m j N A9 49 A� 9 `A" / a 1 S. 2 OC,O�c`t':7;flyvN92'r751i✓ "'� \ ar '— ,� =nsf rOn'F• Z0,1, G 59�'M , 'w S8910'1:'W SdJ fO fTw x-\o ;B� l u r %" mcal0,roew✓ie:✓ y�j� DENTON a`0 AVE -; ,•v �1" 5ubdi� woc y0 ° .SGv'h L:h25rc./2 v h.s6< 7-1.^'E \ 5/fob PC7.d6 --..._ 75.9J ;OS 12' 7 r SrlcF-_ ::�e�nr9w`wnm.'wr_:a+7rriva�>•'e..i R"p�so��:naeiwia+rswu�u�r' ._-.wvucn+wsmm.n.aa..ruvrr.,-aar.•.�.wa a..,�e ws^y.w.r n�xva_s/rv.�� " 'go Fr, r,ys►r+sr,�.w•o�ca��__ .__. ,. __,��_____-_ - --_._'__, see 5C VOJ, ,c It OPPC' .C. ✓Ol.4r7 mat.�. 7° 2: n'L " Eo Y 392' r-fe Co.'30 `, 'IJ 220' _ _ 4?':70'k' _F9' SB9b 2r1� ,A;>,1'p� � 1`7 y TA � LAN � y0 98 3C- __ NB9•IOE ,i, 0 _ NE9"J'E _L21.tW �' d•B9'Sp'30" .r .> YOLK ` //946 3C 58• �`'o. 0.M1 4 77. !G .b0' T— 3 I a 4 U.N47"l4'/>"'E ``�< N. d,g0•Pp NB4'I0'6 7061� �•. n� 3tj Ch•545.50'E d00J 2B 4a?Oc r OG-4 gn"0 / 7 rs d. 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L,qN>Qo0` 5-4 3 � r d•'d•28 W, r'y Q aq0 55J5 p9� .u^'.3 ch o -.O4_ 1a.3] C'd2J3 - .J ` d•59'00 ' 1� �r "�o�t ti� \ _ 109.2E E -. �� /9.'O' L / -9- 2 9 \ \ J•C 26 Ch 2705 v le ': '\\A S b N l'G/2' 3d.26 Ili! c 33 n p a V pass d•64'2B oe- 7^75 r / c I I ,�o. v,. c5•5 B3'od'E �� o�'m� �`� ¢�r"'a U'qZ' / ti 4tQ\�� Fh�p 1 t vy ix 'y a' VB9:OE Bdt' d0 Ac.'nrQ,y� p. 3 p� - o °1io Nm'" F1 0 o y4` �. ��\\� ,`��N �m ,�I" 5 0, may' nm cQa of v�o Q /rH, -ram it m nr 13 rol, �. I i � b4 I,.. � �� n J O �� Ntl C•r'0 v d 34 6W sn � O of 19 45 6' _ _ �_.!L.___...e/' 1 1 �,rl r5.. '„^•!O ,� 1 ) 7 .�� 0 0o vq"i� i a R G 3,39 AC i fi 106' �JC'E 89. 29-; TANA(.,ER LANE V69"o E $86 'd-9',5 0 1 10 /01.57 104,81.40 80*14,12 1-191n� 2 ch-A jl'02'SdE CA -2 --V-E 2930' 27.95' 29,87' C"V49 -20'02'3� 24 19,5c,40,-" 0 1 CA. '5705 E lb 4. L92' 38.28' w 0 z 0 -9,85' --17 2339 fZ 72 C� AV -mr- '31'ad Iv j-,2'2,d' 17 4 n, 7 7 dq 7 , 5 2' it 10Z V YE U C IG . IAOd I 29O-TW- /U Ch-S V7, 5711 0 9.02W-a279' N. a6.03, e.y. V, 05. 17 ci,s3;,29.05-w A\ on rwx 15 09, —174 I V 0.4 12.9' p m'vyrya, . 20 Ch-524*27'03' n -171' ` 01 27 V 14 ss Vov,rocr-., Z,76.,. 6 J,27*57�50* + Tlu V8 hl- A-)6,00, In C�� oc- 05,58,10W 0 -,0, J-191A2,10, -131540. . .1 C -11 oh-SSW'Arw ch.M.9*01,05- 13 27"' A 2738' 56 120. 'f' z 7 �N I I I .5941"39 GO to �) lco 17' J-3c Ch-AvIdSWY w • o5.541. 10' 20,20' 9 57 2 2 2 44' oo�, 00-97 3' — -- -�a- 104JZ'• 3 69'107 7'W 237 .;o 0 LANE �01 bo I sb)-ih Lln.e -ec 12 Z-4.1 6 27689' rV' 294 L, /. BE i sa,,O'a w I922 55' LA K=V;=k) . "2J F HE P rT-, �,- - -� ZI cl Ch-507-4C'35-W 30 95' O:d Hw: EXHIBIT A AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) EXCLUSIONS In addition s she E.,uons h Schedule B,you are not nsured against Toss,—b,.1-T,z fees,and 3.fine fiisks .span xaitine loom . Nat a,.creates.allowed, err a0,eea to b,vpu t. Governmental Police power,and but..stance w violation of an,few s, —an.,requtsu in. Th. that ar known to you. bud not to us, on Na Pnhcv Date—s- mev apPearee In me wbl¢ eludes building and[onn0 wdinancez k m m and aka la and regulations concen0: ra olds • land use Nat result in no loss 1.v t al enprov on oh.land . o Nat in,,off-,you, uric efts Cie?Dlib, Date T.saes not.ern N.lahor and maan lien • wage n It m e 9 of Covered T,te Risks land division t 4, �aiiareto pay v a.rn Vour n:le. vn-cnnheh'a[protection This slusi n do-not apply to violations«be anforcement Of these mattes which Ain but 5. Lack of a right:a. to Public records at policy date_ any land outside thee ar.a sua0haiN desc�ked and al—iisf 1.1, m 3 01 5c1edule L This axottuatur,does not lene the zonetg c vene,ii dessi in Items 12 and 13 of Covered The Ress. t 2. The right m take fie lane by c—their n0 it,uNess.. so-a..,anus.-ova arways LS t Iwch You n and isk notice of a e.,die right appes n The pubic olds on the Polity Date This..Nsron does not tan, u,a a tape Iran 5 of Covered Title Rs. ,n,taking happened psa,to the Policy Date and is b'nd.g on you K you bought the land without knowtadge of the Lakin, SCHEDULEB EXCEPTIONS In seditim to The ExeNima, you are not nwraa against Toss.costs,attuneys'fees,and Ne expenses 3. Any facts about the and which a sci sutveywould t-foo.and-hilt use net on—Gv be public resulting north =«ea.This does not)slit the force removal c s n non n 12 01 Covered file Risks. ie Any rphts,n arts.a claims of parties n passeaspn of the Toth not snows by the publ or ic recds. 4. Any w m dce ngh.or as-titb to water' n one or de, e 1-4,wheNa orN not shown by .pubic 2. Any easements o,Liens—T shown by the p.bk r..-do Thin do-not ushn the lien coverage n Item records t b of Covered Tnb Rsks CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 EXCLUSIONS FROM COVERAGE Th.follows,matins as evyrezaN axcbds,from The vatepe of his palsy said the Do,rymy will not is)wheUa or not restated'.the puhllc se.rds at Data of Policy,but created.suffered,aswmed« pay Toss a dame,.,cosh,an_.,.lees w expanses wh.rise by Iti.of: .,reed be by Ne assured clamant:1. la)Any law,ordnance or governmental re0uktan Iatciadn0 butnot)entree to buidin0 and hang leers. 1b1 not known 1.on,Compare'!,no cubed m c the Gublic,e o,ds n Date of Puk,Gut Fnown to Ne adnanc.s «re,ulatgnai -satcMq. reOUWiing, ;obl in0 w ruts, 14 she oavpone.use, or insured claimant ind not disclosed h wnitl to but C—baty by the.—Iso is—'onrn in the data enpyment of the land;is she chassis,dmmsimss w location of any sroyeviii new or her—her Ne n ..d claimant becarne an in red unda,Nu oou<v red on h.land,fed a xeoxabon a ovenrishio or a than,.n The,dmxt—ins ps sea of the land« to remhtn,n he Toss-damage in Ne nm,ea ct---h, any parcel of which the land aas a part;er(")environmental protesters,sa on,effect of any Idl a sing of o, .tad subsaou_m to D...of PDlvv u iolatio of Nese law wdn «loe ,tmental regulaMns,except be Theea,—,The,a notjee of lei rezuRnq n loss rn damage"rvnien w—.not have bean s aned it Ne insures c.serest ned oaq the enfor emeni thereof or a not-of a defect,Gan«anwthibraest r—11-1 kom a vitiation err aN g ee N u, d _,,.for a wssd mart....or for Th. AT intents, e esuierr ea by di.polcy. m s anor affects,the land has been recorded in the p.i isc«dsat Data of Put, 4. Unenfor—bitiN of Na hen of she nzu,ed mort,age becauss of she nebiliry or failure of Ste nwres at lb)Any governmental pohc.posse not excluded by le)above,..."I be the extmh drat a nptipe of the Date of Poli.y,of,the inabo,ce faders of any subsequent owns of Ne sdebledness.In comply wide e Nceof w a notice of a defect lien shoun-b'ano.nufabn, from A vokiwn it,aGe,ed the applicable doing business Taws of Ne state in wh¢n this land a situated. v.uf.afbetm0 the land has beer scarded n the' pu ds e bbe recor at Date of Palley. 5. invalNity orunentwceabifiry of one hen of weimwM in-na'e.«sloes dnmeof.which axes on'of 2. Rights of am ant dortun unless notice of the exercise Naeof has bean hAboded in Ne public re=uds The Rah.-non evidenced by the insured mwt0a,e and is based upon usury or any consumer c,edn at Date of P.ray,butriot ee.lud.,e_cawi any take,which has Assurrd brief to Data of Policy protection or ii n lend.,law. which would be binding on the rjois of a purchaser for visit without knowledge. 6. Any claim which a-aes out of the eansacdon vestin,in the insured die-.1.of in tao,l insured by 3. Defects.liens, encu,nblarses.adverse obse s,Te other mattes. Nrs Goliry«Ne vansactnn«earn. in. ash of he bred lends.by reason of the operate of Ni banlvuptey,state nsaMenty«smiler creditors'n,hts laws. SCHEDULE B, PART EXCEPTIONS FROM COVERAGE This boner does not nmm ol—I Toss«aarnaga Imd the Company-:n not par cost.an«nevs"fees AT expanses)which aa.b,mason of. PART 1 as,ii.srhann. wi a.not the—as axisnin,La ie a—do try dui of tiny tax.,naln-is 1h.1 a E .. is w ins tr- (.-T,,n ae n .by.�e p uc ..ids. Is— s ants o neat property or by she public records.Pi-bused.,by a public a0orbi, d. D capan conflrcts n b dare as,sho....n a nc h t any P 1 is which which I.,r sultsin taxes or ss.ssment,-notices of such proceed.0a.wha+ha«not shon rvey w by a co,,,bZ su would disclose.and'rvnicn ere not shown by sw p.bl.o r ales «ds of suchsa.-e,or by Ne pub. —ends 5. lal Unpat a nuh, l m )b - ,nons i o in A N r zn0 the 2. Anv)acts.r 6hrt, n slats.1 slams- M1 n t shown by Tie pubte r—ds but v h cn c—W be rev once m f I gin ..I .net - 1.mat.. . red.,ndet ae=ataned by an—pe^i«h 11 if.land«Inch may be as.erted by persons n possasagn Neraof lalU IGI.w Ic —s awn n,h"Pub h ecoraa EXHIBIT A (CONTINUED) AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10-17-92) WITH A.L.T.A. ENDORSEMENT-FORM 1 COVERAGE AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD LOAN POLICY (10-17-921 WITH A.L.T.A. ENDORSEMENT-FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE The faliowih,man -.,iris,excluded hom 4. uvage of mrs policy and Te Conpany will not —yoe for,the insured roortvaeo. pay toss a damage. neyi fee expen whim a no by reason of: 4. Unanfor—lit,of the lien of the inured mortpave be< of m in e abh,Or twirl.of The urad at Ier ter)Any law cram or governments!ragQlabloo(inhadmv but not united W blodinp and zonn0laws, Dal.of Policy,orth.nabiliN or ferule of any sabeenuen[sawner of the ndebtedoess.1.compN—1, r dinmcas on or hl'uiaus) l.entotng.rep.frade ,prohbitn or m, hhaung ( e xcuCan<y.use,m eb,buabN do.,bus ess kw t n s of Tres (e whroh Nv land a situated. enjoyment of the land',frig the character,tlir r beation of any 11-yernmt now a haeaftx 5. leyeed,Or enfo...lu iur,of Ter i of the red mor•,gage,or,clam Hereof whidn also.out of acted on the land;ON a seperatan In xshq or change in the den-stuns o of the land or Na avelenced m on by Na—road ergave and rs based up usury err y consumer credit arc any pel of which the land se w a art mm s a part.'(,I aryi tad protection, le the affectany of ".nryopna r even n I-Do'law u"abort of 1,-h laves,oMnancez wvwwnmeolat regulations,„elept to not.-tent Mat a nets-of 5 All cOnly ry lien tors v e, labor c ars's icu me of o " of a .. en fog Ns enfr ant Mmeaf or notice of A defect,Iron w h urMrance eras .1 Porn wlatron r-['ledtl s,labor mabbroldo x the ire,of the insured mortgagvl sherng ham an rmpro «k iodation affecting the and has been rded n the pubf retards at Data of Policy related to the land whiU is cythd,ol.d fly and i c be,.- to 0.1.of Poky end is of ibl Any governmental police power net excluded by Is)ahoy xe t rot to the a east Nat a notice of dye financed a wl.ol.c n part by a coeds of the ndnCtMnassz red:`—_ .,m..r rgace'inn I e Nmeof Orof a deftt, liar « ourrbrance re I., Pwn a yror.hon or alleged at Date at Policy the.,.,ad he.advanced o r oDlpatetl t advance. yoroon affectnp the land has bean recorded n the public recrda at Date of Policy. 7. Any clean,worth az of the a tin,men of on matgapee insured by Nw 2, A,h6 of mn'ment domain unless nonce of Nee a thereof has been roc«red n line public lacunas polcy,by reason of the opranon of federal bankrup At.state els.'sncy,of,senior creditori rphts at Data of Poky,butnm axciodng frwncourpe any taking whidn has xwrredprw to Date of Policy sous,that is based ch unlatch would be bndre,on the run.of a purchasm In,value wiNaut knowledge. to the oanr.11c l veatng Na nterasl of the Pewee mould.-bang deemed a fraudulent con—l— 3. Defects,)clear der a—d'yern tt,ativerae claims,th a—matters: Or hwdubnt dan[fer:r la)cleared.n to c e r mad r agreed to by the—red c-der a do the sof e'na ion of The of me insured mrtgavev as a result of Ne apotwation of me ID)not known to the company,not uOrtled in the p W st n,by .Dan of Polley,but known a Ne docdn of.beNor c eater,The on s a urad clamant and not dooran w in writn0 to re .npany by Te nswed cement prior to the data Iikl "yen.h.Shen cheater,N.merest of rasa insured mnquh., a ben,deemed a prelmentul dansfr Ne lad clamant sec wed undr Nis policy: aeon where she -d th stied vansfw f A_ hen Ne farNre: (d resulting n ncr lass subsequent ch ro Tv nwred lacy La C ..lei of such r ho on 'n dumam of bansfr.a (d1 a',of Th r tadhart' to Data of Paltry(excgt to n f yotent sely Tat Ns policy n as to (EI of such recordation tpsysgxt notice b a vurdtasa for vase r a iudpemant w lion credimr th.t N of Na .an of the sure-ranortgapa any staalry lien for es,bra r coh nor or ro In extant nswanca n efforda),M1xen as to assessmen6 for-rout ir'p O ennenb under CmiduCtpn L.awrrplated at Data of Pmicyl:or, (n rasann,n One Or ranee.wnian warty lot nay.bar,--seine It Na nswed dama,l had Pais AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10-17-92) AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY 00-17-92) EXCLUSIONS FROM COVERAGE The folbwng matt«a re.xpnisry excuded flan Na coastal.of Nv paltry and the CIPPY wig not Ito)not known to the company,nod rood.-n the puble records a<Date of Paley,but known to In. pay All or dame,.,coach blPPne,, fees Or expenses wh.h...be reason of wrest.lumen[and not dacbsad or rhura,to she Conpany by the insure-asylum prior to the date 1. (a)Any taw,wdnance or governmental ragustisn IncWdinl but not Pooled to braiding and zmnv fears, the insured cement became an assured undx Wre P..l, ordinances,or regulatons)resdictnl,regustng.""bang r robin,to lid one occupancy.u la)-sukn,rn no toss or banned.to T.nswed clamant. enjoyment of On.land:Lail the char w,dmensian v stationknp of any rw w hereafter d)attechnp a a. led subs.nuent to Date of Purely,a acted an the and,(iv1 a aepr n .rah,or a change el the din f the fond o I.)rbablor;n bsa w dame,.whits would not have been sustained if she nswed dame! !had path any parcel of what,the land is was a part;w IN) .,akwnr,m pro ectwn,by Ne affect of any urr a for she estate r nMast insured by thre petits yclialon of loss. w ordarshoss w gorrn real-I ragulearns,except to the a ro that a nett.of 4 Any.teen,wonn x of the ds action v s tng n then lad me estate or ern wed by ch.anfor an r t theat err notice of-defect lien orn acun$m a r r vlti am ticn a n,P eria ali fit. ry'ad rs pok , by r of One u,neatanof federal ry,bankruptcy.state—.1yan ,a smiles t reditri ierla ce,affecting el.end has been recorded n b,.book rdeat Date of Ploce rphn laws.Nat us based on (b)Any governmental police pray.not...udend by is)raw x<pl b the extrtt mat A notice of Ne lid she ranessuch create, de estate r interest nswed by Nw babas bong demrea a haudulent a thereof a notice of a defect lean of, anclench-A.halsoftol a inn yefeyon ne aleged onvayencv or Pauduient dmsfr;Or iolate,affecing line Wtl has been feboodell an the pubic records at Date of Palaver iii) Ne dansebabor veatng line estate Or nothest wed by tha policy ban,deemed a prefrentiai 2. An h.of ern ant domain On es.notice of Te-aerate.thereof has en be -corded n One rer m t e pabcda Tsfer o whxe N w One efrantst P—sfa...s� !rerun m hir ts e e. a ! xc at Dat of Poky,but ludnl hom a arave any!-lease onall nas oecvrred or—to Dal.of Polley (ai.!mee r ora m n n e of vans fee,Or w M1ich woOk be bindingon the rgh.ofA purchaser for vela.without knowledge. io)of won recrd.ln.t.1b,tnonca to A purchase,for vale or.No. .-'a tree credntw. 3. Defects,Irene,—orysrmoor., dvarc. tairms,,cola,m.O.'s ter)pealed,s.tferad.assumed r.,.ad to by Ne nswed clanra+L The aboye ALTA poles fortes may be riled to afford athr 5tan6x6 Coverage or Exendad Coyera,e.In addition to Ne aboye Exclusions Pon,Coverage,me Exceptions ham Coverage in a Sendard Coveage policy will also include Ne Moraine General Exeaptions. EXCEPTIONS FROM COVERAGE Tha petits does not assure addral Ipss or damage land Ne Grogan,wiX not pay case,attorneys'fees Or expensezl wnida arse by reason of t Texas Or aantranla n¢n a hawn not S a dim.a,., s by cry r rn etards of any ona ,auNrity Nat 3, Eas Mc,liens o cumra r bnces, clam m w s Teof,which are t en—by the pu e ad ble,rs. It—tale.Or a n real property or by the poblic-.rare pho-dngs by a publx agency 4. Dsrwancies,conflicts in ho rodary Ines,shortage in a croaNmarle o other fact-which whwh may eras a notaes of-ch prp<.edn,s.whaNr by not sh—by vey would a and whim br er z n c,t-.e I,—:a r Ne recrda-(aran.-,oasts Or dim oubla records `). dal o=rue_end m-n, dalmz e Ihl r r.auc,c a - audtor¢m, me 2. Any facts,rghis, ns by:lean wh x wn ich sho by the public a olds but which could be a Tereof;Iol w rights.esims re o 'n'to wa ' whyne'"nag me matters excepted'hour azcertarned by an nzp ahen of the land or by make,moray of➢arsms'n possession Nraof. liana In)or b)xa zh.—h by It,.pubfrc recrda. EXHIBIT A (CONTINUED) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (6-2-98) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10-17-98) EXCLUSIONS In addition to the Exceptims-n Schadub a,You are not Msurad against Idea,cosh,aRrnne/i fees,and expenses resulting born. 1. Governmental police po,and the axstence or violatbn of—1 law or gove-nment Indlatim. ThR 4. Risks: ncludes orded cos,bws and m,ubuoos cvnwr .g: shot we crairlad,allowed,w agreed to by You wheNa or not bey ash.ar it he Public Record, bu3tln, b. that we Known to You at Na Policy Date,but not to Us.unless theY dross,n the Public Records b. son ng at Te Policy Date; Land a Tat result'a,no Use to of ht,rd—ohn.r.son Land d. Tat feet Dino akin one P.kl Date Nis does not limit he cw¢rage deaabeet n Covered let, Land rmuicn ),8.d.22.23.24 or 25. f, bd protector 5. Fa re o Day value for Ywr Tnfe This Excbsun does not soot,to -boons or but enfwcemeni of Tese meows't nodes of our—lour a, 6. Lank oft.rpht; entwcement aspaas r Te Puble Records at the Policy Date. a is any and ou ess,Te area sr,-Ificalh dascibed and rela,sd no a,pxagraph 3 of 5c,,wus,A. The Exclusion does not III the coverag¢bounded n Covered Rak 14, 15, 16. 17 or,26. 2. The failure of You tng u sectur¢s,or any part of Neer, to be consoucted n an ordce widt b. allays, ays N w ......h thee Lard. app6cabb banking codes. ThisExchubn do-not appN to vroraboI of buiNbg codes if noun¢of she Thu E.Tft,. n does not Imit Tv croverage d....bad b Covered Rek I n 19. Itbon app¢ars'n the Pubf.Records.1 Its Policy Date. 3. The rout to td.the Land by condemn.,it unless: nouns of axwcmng the rrsht appea-s st are Public Records N one Policy Data;or b. the taking happened before she Policy Date and is bindmg on You it You bought on,Land wiTout Known,of the Ukn, RESIDENTIAL TITLE INSURANCE POLICY ONE-TO-FOUR FAMILY RESIDENCE ENHANCED VERSION (1997) EXCLUSIONS .n add,,.to Ne E. ,lions It Schedule B,you are not.sores ag.nal bss,cos.,alto rre s fees,and exrensev I...bet,from: I. Gov ental police power,end N¢¢xutence or roktmn of any few w gn.wn—I regviss. Th. 3, Tide Ricks; meWdea buikling and ronn,ordinances end we.laws and re,Wa(s concern.,. Tat we cr.b.d.alkrmed.or a,,oad to by you: and us., It, Tat xe known to you,but net to us,on be Policy Date unbss Tev able-abo n she public b, knpro am on the tend: sowd, fend dr,s +hat insult th no loss to you:or d. entaf protection. d. Tat fret."..',ubb nUe after the POKY pace the does not 1-1 Ne—eage s—hs ed n uems This excursion does not apply m v.latians or,she to.,of Vase matters which aP,—.Te publet M.B,17 and 19 of Covered Title Poltu. resunds at Policy Date. 4. Farwe to pay value for Your title. Thu exclusion of...not Knit she covaa,e desorbsd.Item 12s,and d,13 end 19 of Co,a¢d Title fl¢ks, 5. Lad of a rghe IN to any land burns. It.....1...fic.*Y d¢snbad and.stared to n Item 3 of 2. The rght to take the land by condemn.,it u,,lese Schedule A or ibl n alleys, o s slat:ov.:h r vt land of a s.,one right ap,e va st shepubk r ords on Ne Pork,Our..a This axeWsdn does not Inu t the co—,if d—lbod v,Items 5 and 12.-nf Na C.—rol Tnle Pvsks b d I,T.^0 happened pran to Te Po4ey Data and b fend.,—you d You bought Ne land wiNovt known,of she trktr,. Fidelity National Financial Group of Companies' Privacy Statement July 1, 2001 We recognize and respect the privacy expectations of today's consumers and the requirements of applicable federal and state privacy laws. We believe that making you aware of how we use your non-public personal information ('"Personal Information"), and to whom it is disclosed, will form the basis for a relationship of trust between us and the public that we serve. This Privacy Statement provides that explanation. We reserve the right to change this Privacy Statement from time to time consistent with applicable privacy taws. In the course of our business, we may collect Personal Information about you from the following sources' From applications or other forms we receive from you or your authorized representative; • From your transactions with, or from the services being performed by, us, our affiliates, or others; • From our internet web sites; • From the public records maintained by governmental entities that we either obtain directly from those entities, or from our affiliates or others; and • From consumer or other reporting agencies. Our Policies Regarding the Protection of the Confidentiality and Security of Your Personal Information We maintain physical, electronic and procedural safeguards to protect your Personal Information from unauthorized access or intrusion. We limit access to the Personal Information only to those employees who need such access in connection with providing products or services to you or for other legitimate business purposes. Our Policies and Practices Regarding the Sharing of Your Personal Information We may share your Personal Information with our affiliates, such as insurance companies, agents, and other real estate settlement service providers. We also may disclose your Personal Information'. • to agents, brokers or representatives to provide you with services you have requested; • to third-party contractors or service providers who provide services or perform marketing or other functions on our behalf; and • to others with whom we enter into joint marketing agreements for products or services that we believe you may find of interest. In addition, we will disclose your Personal Information when you direct or give us permission, when we are required by law to do so, or when we suspect fraudulent or criminal activities. We also may disclose your Personal Information when otherwise permitted by applicable privacy laws such as, for example, when disclosure is needed to enforce our rights arising out of any agreement, transaction or relationship with you. One of the important responsibilities of some of our affiliated companies is to record documents in the public domain. Such documents may contain your Personal Information. Right to Access Your Personal Information and Ability to Correct Errors or Request Changes or Deletion Certain states afford you the right to access your Personal Information and, under certain circumstances, to find out to whom your Personal Information has been disclosed. Also, certain states afford you the right to request correction, amendment or deletion of your Personal Information. We reserve the right, where permitted by law, to charge a reasonable fee to cover the costs incurred in responding to such requests. All requests must be made in writing to the following address: Privacy Compliance Officer Fidelity National Financial, Inc. 4050 Calls Real, Suite 220 Santa Barbara, CA 93110 Multiple Products or Services If we provide you with more than one financial product or service, you may receive more than one privacy notice from us. We apologize for any inconvenience this may cause you. RECORDING REQUESTED BY: When Recorded Mail Document and Tax Statement To: Donner Tract Improvement Association P. 0. Box 1078 Truckee, CA 96160 AP : 17-320-02 17-420-08, 34, 35, 36, 37, 38, 39, 40, 41, 42 17-430-02, 09, 14, 15 GRANT DEED SPACE ABOVE THIS LINE FOR RECORDER'S USE The undersigned grantor(s) declare(s) Documentary transfer tax is $none [ I computed on full value of property conveyed, or [ ] computed on full value less value of liens or encumbrances remaining at time of sale, [ ] Unincorporated Area [X] Town of Truckee FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Donner Tract Improvement Association hereby GRANT(S) to Donner Tract Improvement Association the following described real property in the Town of Truckee County of Nevada, State of California: Lots 5, 27, 28, 29, 30, 31, 44, 45, 51, 52, 53, 55, 56, 57 as shown on the Official Map of DONNER LAKE TRACT, filed in the office of the Recorder of Nevada County, State of California, on May 31, 1968, in Book 3 of Subdivisions, at Page 8. Also the beach property as described in Exhibit"A" attached hereto and made a part hereof. Subject to the following restrictions: Said land is to remain permanent open space with no building structures with the exception of boat dock additions and improvements on APN 17-320-02 DATED OCTOBER 1, 2001 STATE OF CALIFORNIA COUNTY OF ON before me, personally appeared personally known to me for 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. Signature MAIL TAX STATEMENTS AS DIRECTED ABOVE F0-213 1Rev 7/96) GRANT DEED :',,iur,`At. 111LE - TRLCKEE A'ICO� 0!iR2b`�:•� Y��+C47ET�a'r- 436 R ECOROINO RretlEbTtn bT YG PF Ibl t .I,tt(�t � _ Inter-county Title CO, TnEl1YL'�T D lrf5e"Rc�ti"iJtY TRtE cam,, 1850 . .......... ,a �� oEc ��NrM• AT_,hrn YA>r cF.StruRfdlA + ` CitYAiJa' �9UNSY,+ "�y, w Donner Tract Improvement sn Pd.St Care Tom Richardson 1540 San Pablo Ave '1 Oakland, California '4rACr ABOYr TRIP LINE FOR RECOROa" USE AFfIX LB.S,d S-50 IN THIS SPACE Gor or tin r n D e pOft A VALUABLE.CONSIDERATION,raetpt at which is haroby onknowledged. ' DONNER LAKE DEVELOPMENT CO. , ?F Nevada } 4/torparetlon,hereby GRANTS to DONNER TRACT IMPROVEMENT ASSOCIATION . i 17(,' i the IollowinR doatibed real property In the ! county or NOVbda ,Sale of Canroniat �a4 A portion of the Lot 1 of �Califarnia describedlasEfollows:r " Donner Ease, Nevada County, Beinning at the intersection of the southerly right of way line Be old U,S.Y;i rthaay a0 (Rt. Ill NRV 37D) and the easterly line of f Section 13, T 17 N, R 15 E. , M.D.M., as shown on the map a1 of DONNER PINES TRACTCaliforniailed in Bookhe li of Mapace of hatCpagey 64�fromrwhich Nevada Countyr PO the northeast corner of section 13 boars North 144.18 feet; `n thence Pros the voint of beginning slang the Southerly right of way j line in a voster'ly direction as follows: N86 261W 251.62 feat to a point lyino 40 feet rac. �diially Southerly from Engineers Centerline F, o of a� Station 1,700 throughlA c ntx'atong the ranOloaofu17o41rve �04h! left, <• oo feet radially Southerly +� dlbtance of 543.23 fast to a Point 1+ittq thence ivaviog the cGpS from sngino�rs Centerline station 98 00 P.O.C:s1 Q' southerly right of way line, radially from the deeeribod er Li i !'{ S14005104"E 130 feet more or less t» the Ordinary Lon Wat s'nLane of Donner Laket .hence along tho Ordinary Low Water Line, Easterly dlzactSon, e,^.0 feet more or lees to its intereection with the aaateriy lino of Section 131 thence along the easterly line of Section 13, North 188 feat more or less, to the point of beginning, - v.a r i �c+1 t„°r L�. . + ,v+•n7� Itar. Y'.3T �a r Oct obey 4. 196 T�;,1�_ STAT&OF KAHj NoY►da DAIeJt Wgs�4e 85. COUNTY OF 0+ . nyf Db r A. 14fiT hefon me,the andan ___ .Ixnn6+ Nmary Pnldla In and Al uld Snla Osxondlr @V++ral oLporA No[f,aL__�,.1_tny .4nern q.c m mn 1�h.Ihr � .5'`--PrrdJrnl,•ml S V reetd�n+ l s p rkaL_A'"xo Yne*a to mn le ba o 1} a.eralaryar fA+Cwoomltoal I+.eoutad+hn ,4_� v-- Lw J i ¢s.FU rUhm n.uurnem.tingeC t�s�t�a Coo oriilo�nt a�1,Nm+�a+ud RY tinorv+ary ��}�ti eN In n.nu�nnn,an M al r Tarp Ia euaW+ 1�a+l�hln}Ntra. jC, aetno P41"Mo w t ha auoh ton `t"k". xmnl p1lnVfm to lu�r'+S er a Iaaalol�aa of Ix a dlrnworu MA6El CONO, N " I WITNUS el hAnd And 094111 An" ,([py��,, gC1AtY Nallr It'Att 4r N1YA, fJ (�lj�,z .,a. `o'ty WA4NCA CalNN (� f�D Alwulwa�••/t� aILGLL�f�L.A�+- { / ,MnuAo A. Wn a,,tt+N+f „tu ! dlnlarY Publln In and Ior,ald Aun .1 F ,u"iTY a �907 >>r w. hr'.C-AAA vryTr.GI`Vi F�oj1N.�1�� - }ors 13d0-4 y.c ']�nn✓`'T 4� � '. 4903 Ca^.l'-ne:lto 7PC4'? o jJ} an ton". CLSdPItX'a[1 . . ;. Qa aS[to mboin d7tsE P V�mF.TS .-aet Zn LavemoaE Association t the Danner p '< is aa'ir l"1 Ca a j„acd °ateaC d...Uant Co she Ar' approved Barth 20, 1922, - national toresC andue as 3t�ndcd .'s~. ,y Aat to GansalidBEe .1 . 42 Scat. nc5. ent Ltled .Cad by the Act o: gtsc. 1C90. as auPP as ?zbwary 22, 1915, 4] by the Act a1 d land: �A ' 205. for :.he £olteai=b daaczibc .,J June 1;, :9b0, 74 Stat. - iicunc Diablo Meridian. rali£oraia 1� c z. 17 N., sea. 12, S}SlrkSWC52 , set 4svi and s§SE�s t, 4 Ff� :> ConcalaltS 3S xt d y the l'VTTSD sTATHS unC{` i t j,,9.: 1T^ti is, a".eretra. axan to v . r ,.. . �. tnerc TOP1tiD 0 pOLD.th6, r Y t+ the lsnd .t:ove i.aseribedi Chz u`.°ve Y.aaed clsir ant and appurtanducaa Yi.vitage., i;�t.nitia9, Lold .And v..Ch d Saturant ita BucGesaors i '+ c bcloneing. un7o Che enl ,ta�S .J ^'1l 4 tir W. tip'. tr nature. ebct=_unC vb,taocv veaEb any d and aceLu-d ste C, hvvaverr to ; snd aasi6na, tarvvc^-: 'f ChaYaic: an°ptCET-'TRG D G TO T=5 ogram atahl'e,y�l�a i.. hss REERv v 0TH .iN ; ,' 1 r{ ci3h t'Ot-vay thazeon `_oY ditel+ee authotl Cy 0° Che United \t. 26 Stat. 391, 43 U.S.C. 445 C19is n rich',-cf-vsy for a Federal 6i4'ttiShva7, 0ae`oy�$�•an S01hh t �, r �.pf. 23 u.S.0 31T ' £or ncerits o ,R� L950, as a,,,onded, n i ra r s Y ot9c�ei' Iv Tsecitaori>• Wlfrau'A� r�g�vaderatq'R tn�atav[danw arlkh ?he . a r4r HaY6au'of Lard 1dsa Ya0n4 62 StaC G7a) ham, V �� ^� .' pmvU[ona of the R r ..►Wed rhaav ttrt th Yulna of the tho $as1 ottha Kure%a to be hatvunW ^} r� ateuk af3sed !, t�i ;.r�. •yam �r,�r��; }';x C...... §ao ratan io, l.�..?r.• [a lh' nadaf atY � . sscc+h'D doYot �Lr, d�tyi�Tl �( y our Lord ono tho,waa3 Alum hundied as ..as the IZ.'. r de advaca of Wn TJnitad S=a 4 tSEAtI .fir a Ctrs Yi a''onah nriLad aad *1LNeP�?? T jp\r''SF .� � . 't c L 2' t! e � '� �" t+� s�`�-,,E r�•9a Nx..- y.6�V4',� '�iy��q�, '� �i"' � , '��r ant ..i r`fi T�.�{+}�t�n Z} c''1•`^r[ ,/��`'`'_ QTa'/,a ''ly,}�..a+. 4 '3��,y� '4.\ti. I !,,'7. "Saar seotc'Laad OfPiCb 2,r �}; ' f;'rv' j l�.r�7- St! 35 01 13 : 34 F--k3 53o 587 2947 FIDELITY TITLE TRDITE i?uL uol tuc+d2137 J1 UI paulirlUnt uUUDW/Ofur f0££aualajdruU,u0 C'iHtN57tl;r4!nl!'C 62U1/nyD.St Ji+ tuDUDfua£a.rdz�Dr(Sd>1'DW suvanloS xm&jtpg is of'MO W wo4ppdwac YurlLt+uUjlj 1 '�D °ie p°~ i +� 04 F%e 2ns i7v2 . 3xvi vsNNoo,G9Ei a--i-s wr..o.rwe _ L58d 11'IH 'm ']NI mm Dmu axea'aw•eN w Fwv� ��- _ 2q ea LI'8 cegy ssvd er Ye u i f r O _ aBnaf•BB Brt1=.�]iwr r 1 i IYO �vb'LI erh••+r•ct 'W 8'Q Y7 '"351'd "NLI 34 bi, �S Zl,S is bS 2P18 j3 bS t07 su:ooay7ng iTmg waq 107 azuoorpag uydxuvual 1D1d/4nS uydlaunip tn$a7 00'88� XDS 10 00 'I'JI.I.1y3GlS3?12I: 2tauaL IZA£0 : nary znj 9((9na-uoK`anjuA-uoN`DSTI10()ObU: ark lapua7 paumo% pn.tduq v. �ljul ad iZSsa�I adefl uv07 taro u7 lduearz paap a0I d 1001 fi9tEZt # -10G L961/00100 padofx .eayap 091 3 o�txorul BLOT Xn6 OCT : liviv jz�nuaS aaxoniD ❑Z rn4o2I C40N at?S f1 d� DONNER TRACT IMPROVEMENT ASSOCIATION BYLAWS REVISED 1993 W?,v pro4 (Dra ARTICLE I SECTION 1 - The Donner Tract Improvement Association (hereinafter the "Association") is a non-profit California corporation. The annual meeting of this Association shall be held at Donner Lake on a weekend as near to July 4 as is practical . SECTION 2 - Special meetings shall be held at such times as may be designated by the president or a majority of the executive committee . Written notice of all meetings of the Association shall be sent to the last known address of each member by the secretary- treasurer at least seven days prior to the date of such meeting. Notices covering special meetings shall state the purpose for which said meetings are called. No business shall be transacted at a special meeting except as stated in the notice calling same, unless the members in good standing present at the meeting give their unanimous consent thereto. No member shall be considered in good standing who is delinquent in the payment of any dues or assessments . SECTION 3 - Except as otherwise provided in the constitution and bylaws, any business of the Association may be transacted at any meeting at which a quorum is present. SECTION 4 - Amended 1991 - The annual and special meetings of the Association shall be guided by Robert' s Rules of Order. ARTICLE II 7 SECTION 1 - "Regular Members" - One person who is the owner of record of each lot in Donner Lake Tract on which a summer home or other structure is erected shall be a regular member of this Association as required by Paragraph 3 of the tract restrictions recorded at Volume 450, Pages 89 through and including 93 of the official records of Nevada County, California . No other persons shall be regular members . Each regular member shall have one vote . SECTION 2 - "Associate Members" - Shall include all members of the families of regular members, but an associate member shall not be entitled to vote unless holding a proxy and representing a regular member. SECTION 3 - A proxy vote shall be in writing and signed by the member so voting, and filed with the secretary-treasurer prior to the calling to order of the meeting at which the said vote or election is to be held. ARTICLE III SECTION 1 - The interest in all assets of the Association of a regular member who transfers ownership of his Lot in Donner Lake Tract shall accrue to the party to whom the Lot is transferred. SECTION 2 - The party to whom the Lot is transferred shall become a regular member and shall be liable for any outstanding obligations to the Association of his transferor . SECTION 3 - Any regular member who sells or transfers his Lot to another shall cease to be a regular member of the Association. SECTION 4 - House guests of regular members may make reasonable non-exclusive use, consistent with the rights of all other regular members, of the facilities owned by the Association but the regular member whose house guest makes use of the facilities shall be liable for all damage or injury caused by such house guest . Regular members shall not allow or authorize the use of the facilities owned by the Association for any other persons except associate members currently occupying the house and house guests . ARTICLE IV SECTION 1 - The officers of the Association shall consist of a President, Vice-President, and Secretary/Treasurer . They shall hold office for one year and until their successors are elected and qualified. The officers shall have the privilege of voting at executive meetings . SECTION 2 - Amended 1991 - The secretary/treasurer shall be elected for a three year period. The annual dues and assessments for the secretary-treasurer shall be waived in the amount of Two Hundred Fifty Dollars ($250 . 00) or 50% of the dues and assessments, whichever amount is greater. SECTION 3 - Amended 1979 - The president and vice-president shall serve two years . SECTION 4 - Amended 1973 - The vice-president shall automatically move up to president each term. SECTION 5 - Amended 1993 - The position of vice-president shall be renamed president-elect . SECTION 6 - Amended 1993 - The position of secretary/treasurer shall be two separate positions of a secretary and a treasurer . ARTICLE V SECTION 1 - The executive committee shall be composed of the officers of the Association and four directors who shall be regular members of the Association and who shall be elected by the Association for a two year period. SECTION 2 - Four members of the executive committee shall constitute a quorum to do business . SECTION 3 - Amended 1991 - Each director shall serve as the chair of one standing committee . ARTICLE VI SECTION 1 - The general management and routine business of the Association shall be carried on by the executive committee. SECTION 2 - Committee recommendations shall be submitted to the membership for approval at the annual or special meetings, by a majority vote if a quorum is present . ARTICLE VII SECTION 1 - The officers of the Association shall be elected and installed at the annual meeting of the Association or at a special meeting, and shall hold office until their term expires or until the successors have been duly elected and installed. Vacant positions shall be filled by presidential appointment; appointees shall serve to the remaining portion of the term for the position to which the appointment was made. SECTION 2 - The duties of the officers of this Association shall be those that are usually incident to such offices and as defined in the bylaws or as this Association may direct. SECTION 3 - The directors shall hold office for two years . Two directors are to be elected for a two year period at each annual meeting of the Association. SECTION 4 - The president shall appoint a nominating committee each year whose duty will be to recommend a slate of officers and directors for consideration as candidates to the members of the Association at the annual meeting. Nominations will be accepted from the floor at the annual meeting. SECTION 5 - Amended 1991 - A three-person nominating committee shall be appointed each year by the president and shall consist of the three immediate past presidents of the Association, if available; the president of the Association shall be an ex-officio member of the nominating committee and shall serve as its chair . SECTION o - Amended 1973 - The outgoing president shall be an ex-officio member of the board of directors for the ensuing two year term. SECTION 7 - Amended 1983 - Lot owners and their designated family members can serve as officers of the Association. ARTICLE VIII SECTION 1 - It shall be the duty of the president to preside at all meetings of members and the executive committee, to supervise the work of the Association, and direct the work of its officers . SECTION 2 - Meetings of the executive committee shall be called by the secretary-treasurer upon request from the president or from a majority of the executive committee . SECTION 3 - All checks of the Association and withdrawals of funds from bank and savings and loan accounts shall be signed by any two of the officers of the Association. SECTION 4- Amended 1977 - At the request of the State of California, an individual shall be appointed by the Board to serve as permanent Water Rights Representative of the Association. ARTICLE IX SECTION 1 - The vice-president shall perform all duties of the president in the absence of the president or in the event of his inability to act . ARTICLE X SECTION 1 - The executive committee may formulate special projects of their own origin or projects suggested by the membership, and may present same to the membership at the annual meeting for approval by a majority vote, if a quorum is present . SECTION 2 - The executive committee has the responsibility to assure that budgeted projects are carried out . Any deviation from the adopted budget shall be reported by the committee to the members of the Association at its regular meeting. If it is found inadvisable to carry out a previously budgeted project, the committee will investigate the situation and recommend a course of action to the Association. Such action may change the project, delay its execution, or abandon it . SECTION 3 - Amended 1991 - The committee shall not have authority to obligate the Association financially, or in any other way, unless funds for a particular purpose have been made available to the committee by the membership of the Association in a budget approved by the membership; provided, however, that by a two-thirds (2/3rds) vote of approval, the executive committee may obligate up to Ten Thousand Dollars (S10, 000 . 00) for emergencies, to protect the property of Donner Lake Tract members or to repair, replace or maintain common use facilities . For the purposes of this paragraph, "common use facility" is defined as a facility utilized or enjoyed by at least twenty-five percent (25%) of the Association' s members . SECTION 4 - The president will designate the meeting place of the committee which is to meet at least twice a year or more if necessary. SECTION 5 - The committee, if it so desires, may schedule open hearings to assist it in arriving at plans generally acceptable to the membership . ARTICLE XI SECTION 1 - It shall be the duty of the secretary-treasurer to conduct the correspondence of the Association; to keep all records and accounts ; to make out and turn over to the Association a 'list of all assessments ordered by the Association, showing each member ' s portion; to collect from the members of the Association the assessments made by it and to keep in a book for that purpose an accurate account of the same; to do all things necessary in the conduct of the business of the Association which may be assigned to the secretary-treasurer by the Association or the executive committee. The secretary-treasurer shall maintain the Association' s checkbooks and vouchers for distributing the funds of the Association or funds received by the Association, and the vouchers shall show for what purpose such moneys are paid. The secretary-treasurer shall submit a written report to the Association at its annual meeting, giving account of the business transactions of the Association for the year just closed, amounts received and disbursed, for whom and what account received, and for what purpose paid out . The books of the secretary/treasurer shall be audited at least yearly by such person or persons as the executive committee designates and a report of the audit shall be submitted to the Association at each annual meeting. The books of the secretary/treasurer shall be open for inspection by any member of the Association. SECTION 2 - The secretary/treasurer of the Association shall be the secretary of the executive committee. SECTION 3 - Amended 1972 - A permanent address for the Association shall be established by obtaining a P.O. Box at Truckee, and all communications shall be addressed there . SECTION 4 - Amended 1973 - The Association shall dispense with a formal yearly audit by an outside accountant . A tax accountant may be employed to prepare income tax returns if necessary. ARTICLE XII SECTION 1 - Amended 1991 - The annual dues of each member cf the Association shall be a sum sufficient to pay the normal annual operating expenses of the Association and shall be payable to the secretary-treasurer on or before the annual meeting of members for the then current fiscal year . Notification of the amount of annual dues shall be included in the notice of the annual meeting . Special assessments may be voted by the membership and shall be paid to the secretary-treasurer within ninety (90) days after such vote unless the membership shall vote for a longer period for payment . SECTION 2 - Amended 1971 - Members shall be assessed an interest charge of 1% per month starting ninety ( 90) days after the end of the fiscal year on dues and assessments not paid. Further, the secretary/treasurer may file a lien against the member ' s Tract property for the unpaid balance of dues and assessments at the end of each fiscal year. ARTICLE XIII SECTION 1 - Amendments to the bylaws may be made only at the annual meeting or at a special meeting to which notice has been duly given by a majority vote if a quorum is present . SECTION 2 - No business of the Association shall be transacted at any meeting unless a quorum in person or by proxy is present . Twenty-five percent (25%) of members constitute a quorum to do business . ARTICLE XIV SECTION 1 - Amended 1991 - The order of business of any meeting of the Association shall be as follows: 1 . Call to order. 2 . Ascertainment of a quorum. 3 . Approval of minutes of last meeting. 4 . Unfinished business . 5 . Consideration of report of secretary-treasurer . 6. Make communications available for members to review. 7 . Report of executive committee and presentation of annual budget. B . Report of special committees . 9 . Report of standing committees . 10 . Regular business including offering and discussion of resolutions . 11 . Report of nomination committee and election of officers . 12 . Introduction of new members . 13 . Appointment of committees . 14 . Adjournment . ARTICLE XV SECTION 1 - Amended 1983 - The president shall, with the approval of the executive committee, appoint standing and special committees and imbue said committees with such functions as he sees fit . SECTION 2 - Amended 1983 - The standing committees of the Association shall be: Architectural Control, Environment and Ecology, Roads, and water . SECTION 3 . - Amended 1983 - In order to comply with Title 22 of the State of California Administrative Code, it shall be the responsibility of each individual homeowner to maintain the required minimum water pressure at his location. November 27, 2001 Peter L. Holzmeister General manager Truckee Donner Public Utility District P.O. Box 309 Truckee, California 96160 Dear Mr. Holzmeister; The Wolfe Estates Property Owners Association Board of Directors hereby applies for exemption from assessment by the Donner Lake Assessment District in accordance with TDPUD's resolution providing for the exemption of common area parcels. This application requests that the following parcels be recognized as "common area" and therefore be exempted from assessment: APN 17 520 30 APN 17 520 25 APN 17 500 18 APN 17 500 11 APN 17 500 13 APN 17 510 10 In return for exemption from the Assessment District we will irrevocably dedicate and restrict, pursuant to a deed restriction enforceably setting forth that said parcels are and shall be dedicated and restricted in perpetuity so as to meet the definition of common area as defined in the TDPUD resolution. We recognize that common area use shall not include any professional or commercial activity of any kind or nature, including rental of a common area, and the improvements which may be made thereon shall be limited to the following uses and improvements, none of which shall ever be connected to any water system nor require water service: (a) Paths or walkways for pedestrians, equestrians, and bicyclists, whether paved or unpaved, which shall not exceed six (6) feet in average width, and uses associated with such paths or walkways; (b) Picnic tables and uses associated therewith; (c) Security fences; (d) Steps leading to beach areas, and use of the Common Area for beach access and beach use; (a) Gazebos and other non-enclosed or partially enclosed structures, not exceeding 100 square feet in floor area, and uses associated with such structures; (f) Docks extending into Donner Lake, and uses associated therewith. (g) Paved or unpaved driveways and parking. We declare that Wolfe Estates Property Owners Association is formally and duly organized as a nonprofit mutual benefit corporation that contained not less than three unimproved parcels at the time the association was formed. We further declare that the association owns and controls the above listed parcels for the common use and enjoyment of association members. No structures, buildings, improvements, water service (including irrigation purposes), or occupancy greater in scope than the list of permissible structures and uses set forth above, as such list may be amended from time to time, shall be permitted Attached are two pages from the approved final map for Wolfe Estates restricting the above listed parcels as open space. Upon approval of this application by the Board of Directors of TDPUD the attached deed restriction shall be recorded. We recognize that any exemption from assessment approved by the board of Directors of TDPUD shall not become effective unless and until said declaration of restrictions is recorded. Very truly yours, Renee A. Fugazi Secretary-Treasurer WEPOA 08/21/2001 12:26 15305828424 RENEE FUGAZI, CSR PAGE 10 M1u& • � . 2001 s0:36AM K N'IS ENG1'tiEER1NG 930; 972 `f 33 UA P:t MA Pr tAr 'BE�tG A FORTIOIV OF TH£ A. W. '9/� 0� SEC, t� � MOTIONS . OF, WIN p T 1E ,N.E. t/�t ANQ THr S.f,' 1/4 t}f SEC; J5, 1. IM, R. 1SE., ail D M4 . io6c b,W* ME UNINCORPORATED TERRITORY Of NEYADA .COUNTY, CA. i Q& 1'0569• Hiunevick 'Road, suite itrn �' ( j EIE�X� 3rase Valley,, .Cplitola 0945 FAX (818) 272-6039 ' 'lHF+riCA�O•,/',NAKaC CaN1kIC INNS .. .. ' C:\NI0L6E�riha:�P+2=-EM'., - '0, .02joa/9J.at '0:C7 sTArf"OF aut�arr�a - ON —Z ' BcFONE= ME. __ u _ /IX_ IZF�A! _�_:_. FEPSOix,4tL"� AP?rAREa. GA Ih'Y t'Qf/rTF.AND BILL! Afoul1 Y 01010i To ME 70 M£ -O.N. N 9A.1IS OF SAAS,1'aCTOR:� fV?vENC< <0 Si Thr', P R5O!J(S; N�HOSE'.�AM.FfS� lS;iaRE SUASCABEC TO THE W THN liv-5 RUTA;�h'T".A,tiD ACK'vO1rLE7GE "C ME THAI HE/SNEfTNfY i k7currq �-JE .rAME 'Iti A&MO I-fo v4=AC "Y(:t. "4h-o TFfAT B? HIS WRITHfi? S"GNATURE(S) 0.14 THE it�S,'.fUMIN` THE PFPSDIJ(:Sj 0i 1�l' E"iT/T?' UP,ati RENAL_F, OF ; tCN THE PERSOAt S) ACTEi7, Exrcui- f 7. ' f`r'S''UM� 7 0T;V6SS MY ?tANO.:.A1VD G'FRfCIA SEAL. . r * LAt iii KAY�CLEN 1;CTAF V- FOR S.4r; S'; rE r i w�y(ji-N ,Pl18t,C-CA�rrUnuR . . . � .. .: pMGCK oft, d LEI GUARAWTEE HOtf11NG'i*P.AN}' ,, CA 1FORNA4 COPPCRA'TtfJ'}���II 'TR TN l R G �Q V(r V.�i T4C LAB"JEI� Y �� VI EL�.' U� TpJJ 7' TD ALC STATE Of. COUNTY OF .. , '168121(2001 12:26 15305828424 RENEE FUGAZI, CSR PAGE 11 k {°{ ifs£ gvEttlGiv ,` 81 ,THE\Ql+ 1' PF,�25CNS fzEPR£5£NTit�G ANY RECORD 1N7ERCF7 fN.:THt NE,'EIN 5UBQl �'Lim ;H&OY CU1dSEl�T .7fl. THE f?Rff�,�RATiDv AND:.KFCtRRfllrtlC at' f PS FtNAt:MAP { `S t�t? fOR 9..:ES,TA7ES PHASE Iw f, ,. 3 AN© RI-FOR;DE�IICAT/0 aArD. t . ft2£e 'aOICA?f TQ )WE, �`OU^iT Y OF NE VADA.. THE. r ; �tLtw3Y a .' $ '�I-a ! t Fats Ak7 �tNO Al 'P*94, UZ, ALC THAN f�Dl x . - EAO Sh D£Sl0A D AS F OLMI DW. a j t;S ' f.. OAA' mb EAS i4tE NT5 FF?K kY�tT f�,.°;GA di�fr7'fY ;, ACe UROLIIVQ'.iTRS, f1 LQNDUIT fG 'j�� OWSF �0 1ttER: Off A IS THOSF STRIPS (3�' LAND : (,.0 bON. iu I V-4 } ; 1 tir THE` 81W lPf S:C�f.+ tIS'SV"f Y{ '1Er1 fED' N4` "�` 1 !° S !%1,f01 (y�,f,� TNER;'i4+1'Tt4 pal, Y ; �'. : . oi ";: ,•. : Alm rI 6 :U LtNDER At D ACROSS ?NC,S , ,.c=,, ;r-; :;:."; � • As.` .P.E� ' .:; 7'FFtIVi tN�'LUl1ES 'TN�:..h?l.,!'1 l•. TQ:YNSTAc£ 'AND ,r SEbt' .;RE`fAtA�lNG Sl? kES' QRA/NACC RIDES rQIW�111 TS .G�..CHES i;,Y• ., B£ST.r.k�, ? klf..pRAET'C£S.DR� M E.'ETl7RA71DN''FA.U,`UTIFS�.. tfJGE'NER. t�th ' . 4PP 'T£riAtl fS #fERE 70':AALb' fiHE XH.T JNEi ,rSAf�Y..TREES.:LIMBS.:RJR BRUSH. iHEREFRO . ,;Fl _ 7' :.rtG`ttlt7E dot;llP POS£:'EASEhIEN?�il#P:f}tSE1 ON, UNDER, AND ACPCSS ";:. s '�o,S.�f:: F.:;FUR,;, `f?URpC?SE •C?F PR N18.'Thl' :THE CUTTING OF TREES, GR u"";7+� ri' G °4+At K,:f;1F: 7CY ?i`1r1(fJ .'E`Q (S1�'VC,, V OF A9Y',6:+kQIrYGS Cll? S RUCTJRFS, t{IIdJN, CAR ,G�'OfJ�ip. Xr F PfA. 'A D OQNSTRtiw T " Ap.&; �A*#47 Ti4fAt' f �. 1� 8�$r AfAIVA'cEtif W PRcr,�eES ORArivA�� .FrLTRa rrory ' ;ti�Et(fIf$�'ii�XT�taV,:f1•�1LtTYEAS�d,�"IdTS'• OPEN-SPACE. '- i; Qgf#'EES + TH I1hTlES R;5k9' l S€A(EN4S•.kL BF ,4fk*%NED 8Y CSA 10 T O'PEIv SpA 'tS ?f1 .BE CIWNEG A�VP MAf +TN IVO BY THE H04C. OrYNr�S ASSOC- aTHE. PUR�05E5 DP REXASILlTATGVG A.ND Pr7ESER'f:`G 'N.£ NATt1i�A$ NABi?A ' 'AND E A?�CR�iMA1fiV7 ;'` ' S Y1VlV I IIrC IpGE ft : SNOW Doo-NG£ f7L a, :KA TE'S` CREEK PLACE' FROST FIRE PLAC, AND .A(AFt'a� .'AK�YJNTi1�At'IpEACf ARE ' fWE ED FD .+SHE EGUNTY f NE✓ADA FQR .A�L pUt�LIG °via . PtRP45 ; B P�IRCELS. G. A�'H.dt t APE, HERESY QEINGA,TED TO T!'E COUNTY OF NEYAD.A ' Y; FAR,_FzUBu'C WAT£R. �ONVEYANCE PUA.POSES. TO EE USED 6Y itiE aONvER LaKE Ur! ITY DdNNI'R LAKE lNi ST+�/EN7 A CALIfORIWA t/M11ED PAR ERSffIP. BY ©o`�N' ER.iN,(I TMEN,TZ rNG AN ORE ON CORP. STATE Df _ -- — CDLm!TY PON' TO✓ER,. PRESiDc t; GENE,°F . P ?r^.<' WOLFE ESTATES PROPERTY OWNERS ASSOCIATION RENEE A. FUGAZI Secretary-Treasurer ! PO BOX 8127 W Truckee,CA 96162 Telephone(530)582-5158 Facsimile(530)582-8424 November 28, 2001 PETER L. HOLZMEISTER General Manager Truckee Donner Public Utility District P.O. Box 309 Dear Mr. Holzmeister, The Wolfe Estates Property Owners Association Board of Directors hereby applies for exemption from assessment by the Donner Lake Assessment District. This application requests that the following parcels be recognized as"common area" as currently deeded and recognized by the Town of Truckee as such, and which gives rise to its tax exempt 0 status: APN 17 520 30 APN 17 520 25 APN 17 500 18 APN 17 500 11 APN 17 500 13 APN 17 510 10 In return for exemption from the Assessment District we will, pursuant to deed restriction, add the following language to our current common area restrictions: This property shall be exempt from assessment by the TDPUD on the express condition that: The common areas shall not be used for commercial activity of any kind or nature, including rental of common area, and the improvements which may be made thereon shall be limited to the following uses and improvements, none of which shall ever be connected to any water system nor require water service: (a) Paths or walkways for pedestrians, equestrians, and bicycles, whether paved or unpaved, which shall not exceed six (6) feet in average width and uses associated with such paths or walkways; (b) Picnic tables and uses associated therewith; (c) Security fences; (d) Steps leading to beach areas, and use of Common Area for beach access and beach use; (e) Gazebos and other non-enclosed or partially enclosed structures, not exceeding 100 square feet in floor area, and uses associated with such structures; (f) Docks extending into Donner Lake, and uses associated therewith; (g) Paved or unpaved driveways and parking. Any breach of the above-restrictions and conditions shall immediately result in the imposition of assessment upon the offending parcel. The WEPOA Board of Directors also agrees to use its best effort and good faith to notify the TDPUD in writing in the event it intends to modify the use of the parcel(s)which use would result in a contravention of the above-stated conditions and give rise to the imposition of assessment. Sincerely, ROBERT KAHN, WEPOA President HARRY GORDON, Vice-President RENEE A. FUGAZI, WEPOA Secretary/Treasurer ?r2si2aai 15: 4e e3ee874552 GLENSHSKE WATER t - ®RAFT (Option 8, Glenshire assets to District, No rebates to shareholders) AGREEMENT FOR THE ACQUISITION OF THE GLENSHIRE WATER SYSTEM BY THE TRUCKEE DONNER PUBLIC UTILITY DISTRICT RECITALS 1. Glenshire Mutual Water Company (hereinafter referred to as Company) owns and operates a domestic water system serving approximately 1350 service connections in the Glenshire service area located in the eastern portion of the Town of Truckee. 2. Company is experiencing high levels of arsenic in its domestic water supply wells. In addition, its well capacity is not sufficient to serve the projected build-out of its service territory, and there is not an adequate supply of high quality water in its groundwater basin to allow development of additional source. 3. Truckee Donner Public Utility District(hereinafter referred to as District)owns and operates a public utility domestic water system serving approximately 8,500 service connection in the remainder of the Town of Truckee and portions of Placer County. District's service territory is immediately adjacent to that of Company. 4. Company has asked that District acquire all of the assets of the water system of Company as described below in paragraph 1 and assume responsibility for serving domestic water in the territory of Company. NOW THEREFORE DISTRICT AGREES TO ACQUIRE THE WATER SYSTEM OF COMPANY, AND COMPANY AGREES TO CONVEY ITS WATER SYSTEM TO DISTRICT,TO THE EXTENT OF ITS INTERESTS IN THE PROPERTIES AND ASSETS OF THE WATER SYSTEM AS FURTHER DESCRIBED AS FOLLOWS: 1. Acqulsltlon of water system assets: District will acquire and Company will convey to District on the terms and subject to the conditions of this Agreement, all cash, or bank balances in Company's possession, all accounts receivable, all operative rights, water wells, storage tanks, pump stations, distribution and transmission pipelines, services, and connection lines and all appurtenances related thereto, rights-Of-way, and easements associated with the water system, land, equipment, vehicles and inventory owned by Company and used and useful in the operation of the domestic water system, as further described in Exhibit A. It is expressly understood that the named assets which are to be conveyed hereunder are conveyed"as Is", and Company makes no representation of any kind, whether express, implied or otherwise as to their condition or serviceability. District acknowledges that it has conducted a due diligence process and understands the as is condition of the assets of company. District also recognizes an encroachment violation at the Strand tank site. 2. Responsibility of District: A) District will take possession of the water system, and own and maintain it and become responsible for providing potable water supply to Glenshire/Devonshire, Meadows, Kent Drive, Royal Crest extension, Filly Lane, and Cambridge 1, II and III as described on the map attached as Exhibit 8 5305874952 GLENSHIRE 11, ER c B) District will construct the facilities necessary to connect Glenshire water system to District system at District's sole expense, and District will establish a water rate surcharge applicable to customers within the service area described in the map contained in Exhibit B to recover these actual costs. C) District will abandon unused wells belonging to Glenshire using method approved by the California Department of Health Services and other regulatory bodies having proper jurisdiction over the District pertaining to well abandonment. 3. Payment: A. Following are firmly established costs that will be borne by the Customers of the territory described in Exhibit B. FIRM COSTS 334,000 1. Buy-in to well 2. Storage tanks ,000 (New storage) 67 67,000 (Repair) 3. Truckee River Bridge crossing 51,000 4. Service line replacement 50,000 5. Accrued employee benefits 19,000 TOTAL FIRM COSTS 571,000 8, Following are estimates of construction costs required to connect the service territory described in Exhibit 8 to the District water system. CONSTRUCTION PROJECTS ESTIMATES 170,D00 1. New 12-inch transmission line 1,170,000 2. Well upgrade(increase pump capacity) 200,000 3. Chlorination for well#20 100,000 4. Pump station at Featherstone 100,000 5. Pump station in Glenshire 100,000 6. Main line replacement at Cavalier Rise 00,000 7. Main line replacement at Regency Circle 10,000 8. Well abandonment 1,990,000 TOTAL ESTIMATED COSTS Contingency 196,000 TOTAL COSTS 2,727,000 It is recognized that these are cost estimates. Actual costs to connect the service territory to the District water system may be greater or less than the stated estimates. The District, being a non-profit organization, shall establish a surcharge to recover the costs associated with these improvements and shall be limit the surcharge such that it recovers only the actual costs incurred by District. C. Customers within the service territory described in Exhibit B shall be required to pay the total firm costs and the actual costs required to construct the facilities listed as construction projects above. Company will pay to District all cash on hand and the District will finance the balance of the firm and actual construction costs for a period of twenty years at an interest rate that the District is able to acquire using its best efforts to achieve the lowest possible rate. The surcharge established by the District shall cover only the amount financed at the actual interest rate incurred for the financing. The 1 ;'28�2�ai 15: 48 5365874952 GLENSHI-R- WATER r-iuc surcharge will be added to the normal monthly water charge, and will remain as a surcharge until the principal and interest payments are fully paid- D. The assets listed on Exhibit A fall into two categories, those assets that will be retained by District as necessary to provide service to the territory defined in Exhibit B, and those assets that can be disposed of. The assets that can be disposed of have an associated cash value for purposes of this Agreement. District has the option of keeping said disposable assets by paying the associated cash value into the Sinking Fund described below in the Agreement, or to sell said assets according to the methods required by law, and using its best effort to sell said assets at the highest price. The cash proceeds derived from the sale of said assets shall be deposited in the Sinking Fund. There shall be established an interest bearing account to be known as the Glenshire Water System Sinking Fund. Funds on deposit in said Sinking Fund will be applied by District to amortize the debt service described in Section 3(C) above. Amortization shall be scheduled to reduce the principal and interest payments each year throughout the term of the debt, and the monthly surcharge applied to customer bills shall be reduced by the amount contributed by the Sinking Fund. E. If other properties are annexed to the water system and receive benefit from the facilities constructed to serve the service area described in Exhibit 8 and paid for by said service area, said properties will be required to pay to District a contribution to the cost to construct those facilities, namely bridge crossing and well upgrade. Contributions so received will be deposited in the Glenshire Water System Sinking Fund and applied to principal and interest payments resulting in a reduction to the monthly surcharge. 4. Accounting statements and inspection of company books: Within twenty (20)days of the execution of this Agreement the Company will provide to District, if requested, a current trial balance statement satisfactory to District showing all customer funds and deposits held by Company, and Company shall also permit District's agents or representatives to review or audit, at any time prior to close of escrow, any of Company s books, records or accounts and to otherwise verify the status of Company's outstanding obligations, customer credits, accruals, and accounts. 5. Conditions precedent to District's obligations to acquire: District's acquisition of the water system is subject to receiving appropriate approval of the shareholders of Company, from Nevada County Local Agency Formation Commission, and approval from the California Department of Health Services of an amendment to District's water operator's permit. District's acquisition of water system is also subject to completion of the environmental review process set forth in the California Environmental Quality Act. District's acquisition of water system is contingent upon receipt of suitable funding to effectuate the improvements set forth in Paragraph 3 above. 6. Opening of escrow: District will open an escrow with California Land Title to effect the consummation of this Agreement. Escrow shall close following the completion and satisfaction of all conditions precedent to the acquisition, including but not limited to approval the shareholders of Company, approval of Nevada County Local Agency Formation Commission, and on a date thereafter that logically meshes with District billing cycles and which is a logical date for District to take over and assume operation of the water system. District will strive to accomplish an escrow closing date that is on or about January 1, 2002, if the required conditions and performances under this Agreement are complied with and it is practical to do so. i1/2S;`2001 15: 49 530557495 GL.ENSHIRE WATER PAGE 05 7. operating systems pending transfer: From and after execution of this Agreement and until transfer of system after close of escrow, Company wan-ants and agrees that they will continue to operate the system and provide utility service in good and satisfactory manner, and will maintain and repair the system and all components thereof in a good and responsible and workmanlike manner; and that they will not incur any debts, liabilities obligations or encumbrances against the water system properties, or make modifications or alterations thereto beyond normal operational practices without District's prior written approval. B. Actions of parties to close escrow: A. District will, not later that three days prior to close of escrow, deposit all cash on hand into escrow. B. District shall pay all closing costs and shall submit all needed instructions to close escrow in accordance with this agreement C. All outstanding accounts payable, including taxes as defined by McClintock Accountancy, incurred by Company as of the close of Escrow shall be paid by District. 9. Customer accounts, billings and records: Company shall transfer to District the records of the amounts of all customer advance payments or deposits, and all accounts receivable for services. District's records shall reflect customer advance payments, and District shall bill for all accounts receivable. Company will supply to District fifteen(15)days before close of escrow complete and current lists of customers, to be used for billing purposes. At the time of transfer of billing responsibility to District, Company shall turn over all of Company's customer accounts and billing records. Service to any new or added connections by District after transfer will be on the terms and conditions applicable thereto under District's rules, regulations and policies. At the close of escrow, Company shall turn over and deliver to District as its property all of the Company's operating records, maps, plans, drawings, specifications, warranties and other files, correspondence and papers pertaining to the water system. 10. Condition of water system: Company shall supply to District within fifteen (15) days after the execution of this Agreement the following information on the water system, to enable District to ascertain the existing conditions of the system: A. All available as-built installation plans, drawings and specifications; B. Maps showing the location of all pipelines, pumps, and appurtenant facilities (valves, hydrants, etc,), and easement for off-street locations so far as these are known to or can be ascertained by the Company; C. Size, type, material, and date of installation of all pumps, pipeline, and other component parts and facilities so far as this information is known to or can be ascertained by the Company. D. Types and locations of all hydrants, and air vacs, blow-offs and other valves so far as is known to or can be ascertained by the Company. E. Meter history cards. E 11/28;'2001 15:48 5365374952 GLENSHIRE WATER PAGE 06 Such information, to the extent it is available, shall also include descriptions of any sub-standard installations, deficiencies or facilities in the system known to the Company or its employees, that could impair or affect the District's ability to continue to provide adequate and reliable water service to the areas served by the water system. District acknowledges that Company may not have available all information described in this paragraph and Company is only required to provide such information that it has and in the condition that it exists. 11. Insurance: Company agrees make its best effort to maintain in full force and effect all property damage, liability and other insurance it had if effect on January 1, 2001, and to transfer such insurance to District if requested at close of escrow, provided that the insurance premiums on any such transferred coverage shall be pro-rated as of close of escrow. 12. Authorization: Company warrants that the execution of this Agreement and conveyance of said water system and properties has been duly and regularly authorized by the Board of Directors and the stockholders of Company in accordance with applicable law. District warrants that the execution of this Agreement and acceptance of the water system and properties has been duly and regularly authorized by its Board of Directors at a meeting held in accordance with applicable law. 13. Future rates and financing of improvements: After the close of escrow District will charge the customers of Company according to the customary rates, fees and charges as apply to all other customers of District, except that customers service area described in Exhibit B shall also pay the monthly surcharge as described in Paragraph 3 above. All existing improved lots shall be served by District without paying District's connection and facilities fees. All vacant lots that subsequently are built upon shall be required to pay District's connection and facilities fees. Lots currently improved which are further built upon or further improved shall be required to pay fees in effect throughout District's service territory at that time. 14. Litigation and undisclosed liabilities: Company states to the best of its knowledge that it is neither presently engaged in any legal action to recover money due it nor damages sustained by it nor is there, to the best of Company's knowledge, any action at law or equity, before or by any federal, state, municipal, or other governmental department, commission board, bureau, agency or instrumentality, or other person pending, or threatened against Company or relating to or affecting Company, its business, assets or properties or any basis for such action, suit proceeding, claim, investigation, audit, inquiry or hearing, except as disclosed below. Company states to the best of its knowledge that, except as set forth in Company's financial statements, there are no debts, liabilities or obligations, fixed or contingent to which Company, its business or assets are subject, other than those incurred In the ordinary course of business consistent with past practices. Company further warrants that it is not a party to nor are its assets bound by any agreement not entered into in the ordinary course of business consistent with past practices, any indenture, mortgage, deed of trust, lease or any agreement that is unusual in nature, duration or amount, including, without limitation, any agreement requiring the performance by Company of any obligation, calling for consideration of more than$1,000. Company warrants that it is not a party to, nor is Company or any of its assets bound by, any agreement that is materially adverse to the business, assets, prospects or financial condition of Company. 11i'28r2061 1o: 43 5365874952 GLENSHIRE W: 1 ER PGGE Company discloses that the water storage tank located at the Strand site is in violation of the original use permit in that it encroaches four feet into the twenty-foot road setback. Company further discloses that it has an obligation to contribute to maintenance of Juniper Hills Homeowner Association for road maintenance to gain access to well 20 and Somerset and Strand tanks. The quarterly fee is approximately$455. 15. Agreement shall not cause breach or violation: Neither the entry into this Agreement nor the consummation of the transactions contemplated hereby will result in or constitute any of the following: A. A breach of any term of this agreement; B. A default or any other event that would be a default, breach or violation of the Articles of Incorporation or By-Laws of either party or of any lease, franchise, trust, or other agreement, instrument, or arrangement to which the parties or their assets are bound; C. An event that would permit any party to terminate any agreement or policy of insurance or to accelerate the maturity of any indebtedness or other obligation of Company; D. The creation or imposition of any lien, charge or encumbrance on any of the assets of Company; or E. The violation of any law, regulation, ordinance,judgment, order or decree applicable to or affecting the parties in their business, assets or financial condition. 16. New transactions: Company shall not, prior to the close of escrow,do, or agree to do, any of the following acts without the prior written consent of District: (a) enter into any contract, commitment or transaction not in the usual and ordinary course of its business, consistent with past practices; (b)enter into any contract, commitment or transaction in the usual and ordinary course of business involving an amount exceeding one thousand dollars ($1,000) individually or two thousand dollars ($2,000) in the aggregate; (c) make any capital expenditures in excess of five thousand dollars($5,000)for any single item or in the aggregate, or enter into any leases of capital equipment or property under which the annual lease charge is in excess of one thousand dolllars ($1,000). 17. Conduct of business in normal course: Company shall carry on its business and activities diligently and in substantially the same manner as they have been carried on in the past through December 31, 2001, or until the close of escrow, whichever shall occur later, and shall not make or institute any change in management, accounting or operations that shall vary materially from the methods used by Company as of that date of execution of this agreement. 18. Publicity: The parties agree that all notices to third parties and all other public communications concerning the transactions contemplated by this Agreement shall be jointly planned, coordinated, and issued between them, and neither party shall act unilaterally in this regard without the prior written approval of the other, such approval not to be unreasonably withheld or delayed. Nothing in this paragraph shall prohibit or otherwise limit disclosure which may be required pursuant to applicable statutes, including but not limited to, the California Public Records Act. Nothing in this L{28/_901 16: 48 5325874952 GLENSHZRE WATER PAGE 08 agreement shall limit the ability of the Board of Directors of Company to communicate with its shareholders. 19. Employment of Glenshire Water System Staff: District agrees to employee on a full-time basis Mark Thomas, Dennis Sanchez, and Barbara Cahill, and on a part-time basis Karen Sattler. Said employees will be initially employed by the District as probationary employees and, upon successful completion of the Districts probationary period, shall be employed under the same terms and conditions as customarily apply to District employees. District will recognize the accrued vacation and sick leave benefits. District will recognize for purposes of future vacation accrual, an employment date of September 13, 1999 for Mark Thomas, June 27, 2000 for Barbara Cahill, August 10,1992 for Dennis Sanchez and July 20, 1992 for Karen Settler. The seniority date for said employees shall be the date they are employed by District 20. Entire agreement: This Agreement contains the entire agreement between the parties hereto, and supersedes all negotiations or prior agreements, and there are no representations or warranties except as expressly set forth or provided for in this Agreement. Time is of the essence for purpose of this Agreement. Each party agrees to execute all further documents necessary to implement and perform the terms and provisions of this Agreement. 21. Survival of warranties and representations: The representations made herein will be correct and accurate in all material respects as of the closing date, and shall survive the closing. 22. Notices: All notices, requests, demands and other communications under this agreement shall be in writing and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, or on the third day after mailing if mailed to the party to whom notice is given, by first Gass mail registered or certified, postage prepaid, and properly addressed as follows: To District: Clerk of the Board Truckee Donner Public Utility District P.O. Box 309 Truckee, California 96150 To Company: Glenshire Mutual Water Company 14630 Glenshire Drive Truckee, California 96161 23, Governing law: This Agreement shall be governed and construed in accordance with California law. 24. Dispute resolution: The parties agree that in any dispute or controversy that may arise after the effective date as a result of the terms and conditions of the Agreement or relationship between District and Company under this Agreement, if said dispute or controversy cannot be resolved by mutual agreement, then and in that event the dispute or controversy shall be settled by arbitration in accordance with the commercial arbitration rules of the American Arbitration Association, except that one arbitrator, who shall be approved by both parties to this Agreement, shall hear and decide such ... ..........___.... 11.l291`2601 16:48 5305874952 GLENSHIRE WATER PAGE E9 controversy or claim. Judgment upon the award rendered by the arbitrator may be entered in any court of competent jurisdiction. Any and all arbitration hearings shall be held in Nevada County. 26. Severabiilty: If any term or provision of this Agreement, or the application thereof to any person or circumstances, shall to any extent be invalid or unenforceable, the remainder of the Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. The parties acknowledge that the provisions of this Agreement were negotiated by both parties hereto, and the language hereof shall not be interpreted for or against either party. DRAFT (Option C, Glenshire assets to District, No cash given to District) AGREEMENT FOR THE ACQUISITION OF THE GLENSHIRE TRUCKEE DONNER PUBLIC UTILITY DISTRICT WATER SYSTEM BY THE RECITALS 1. Glenshire Mutual Water Company (hereinafter referred to as Company) owns and operates a domestic water system serving approximately 1350 service connections in the Glenshire service area located in the eastern portion of the Town of Truckee. 2. Company is experiencing high levels of arsenic in its domestic water supply wells. In addition, its and liadequat supply capacity ' sufficient of high quality water in its gro b there is dwater basin to allow development of not n additional source. t) owns and 3. Truckee Donner Public Utility Districting apnafter referred to as proximately 8,500 service connection in the ates a public utility domestic water system serving app remainder of the Town of Truckee and portions of Placer County. District's service territory is immediately adjacent to that of Company. stem of 4. Compas descny hasribed below in District t paragraph aph 1A and assume responsibility for serving he water ydomestic Companympany water in the territory of Company. NOW THEREFORE DISTRICT AGREES TO ACQUIRE THE WATER SYSTEM OF COMPANY, OF IT INTERESTS AGREES O DISTRICT, To THE EXTENT IN THE PROPERTIES AND ASSETS OF HE WATER SYSTEM AS FURTHER DESCRIBED AS FOLLOWS: 1. Acquisition of water system assets: ict and to the oDistrict will acquire and f this Agreement all accounts rece!ll convey ivable, alltope operative g and the terms hts,wa er wells ustloratge tanks, pump conditions stations, distribution and transmission pipelines, services, connection lines and all appurtenances related thereto,inventory owned b Company and uy, and easements sed andated 'useful inthe theoperation land, equipment, vehicles and inventory Y of the domestic water system, as further described in Exhibit A. e conveyed hereunder are c is expressly understood that y makes no representation of a assets which are to ny kind, whether express, implied conveyed"as s t and Company conducted also or otherwise as to their condition or serviceability. District acknowledges that it has c Districtonducte a due diligence process and understands the as is condition of the assets of company, recognizes an encroachment violation at the Strand tank site. 2. Responsibility of District: A) District will take possession of the water system,Glenshown and elDevonshi eain it becomeand M adows, Kent responsible for providing potable water supply Drive, Royal Crest extension, Filly Lane, and Cambridge I, It and III as described on the map attached as Exhibit B to connect Glenshire water system to B) District will construct the facilities necessary District system at District's sole expense, and District will establish a water rate surcharge applicable to customers within the service area described in the map contained in Exhibit B to recover these actual costs. C) District will abandon unused wells belonging to Glenshire using method approved by the California Department of Health Services and other regulatory bodies having proper jurisdiction over the District pertaining to well abandonment. 3. Payment: A. Following are firmly established costs that will be borne by the Customers of the territory described in Exhibit B. FIRM COSTS 334,000 1. Buy-in to well 2. Storage tanks 67,000 (New storage) 50,000 (Repair) 51,000 3. Truckee River Bridge crossing 50,000 4. Service line replacement 19,000 5. Accrued employee benefits 571,000 TOTAL FIRM COSTS B. Following are estimates of construction costs required to connect the service territory described in Exhibit B to the District water system. CONSTRUCTION PROJECTS ESTIMATES 1,170,000 1. New 12-inch transmission line 00,000 2. Well upgrade (increase pump capacity) 200,000 3. Chlorination for well#20 100,000 4. Pump station at Featherstone 100,000 5. Pump station in Glenshire 100,000 6. Main line replacement at Cavalier Rise 00,000 7. Main line replacement at Regency Circle 10,000 8. Weil abandonment 1,990,000 TOTAL ESTIMATED COSTS 196,000 Contingency 2,727,000 TOTAL COSTS It is recognized that these are cost estimates. Actual costs to connect the service territory to the District water system may be greater or less than the stated estimates. The District, being a non-profit organization, shall establish a surcharge to recover the costs associated with these improvements and shall be limit the surcharge such that it recovers only the actual costs incurred by District. C. Customers within the service territory described in Exhibit B shall be required to pay the total firm costs and the actual costs required to construct the facilities listed as construction projects above. District will finance the firm and actual construction costs for a period of twenty years at an interest rate that the District is able to acquire using it best efforts to achieve the lowest possible rate. The surcharge established by the District shall cover only the amount financed at the actual interest rate incurred for the financing. The surcharge to the normal ohlyter charge, and will remain as a surcharge until the principal and interest paymentsfully Pa D. The assets listed on Exhibit A fall into two categories, those assets that will be retained by District as necessary to provide service to the territory defined in Exhibit B, and those assets that can be disposed of. The assets that can be disposed of have an associated cash value for purposes of this aced cash value the Sin t has the ption Fund keeping said disposable assets by paying a Y 9 described below in the Agreement, or to sell said assets according to the methods required by law, and using its best effort to sell said assets at the highest price. The cash proceeds derived from the sale of said asset shall be deposited in the Sinking Fund. There shall be established an interest bearing account to be known as the Glenshire Water System Sinking Fund. Funds on deposit in said Sinking Fund will be applied by District to amortize the debt service described in Section 3(C) above. Amortization shall be scheduled to reduce the principal and interest Payments each year throughout be reduced by the term of the debt, and the monthly surcharge applied to customer bills shallthe amount contributed by the Sinking Fund. E. if other properties are annexed to the water system and receive benefit from the facilities constructed to serve the service area described in Exhibit B and paid for by said service area, said properties will be required to pay to District a contribution to the cost to construct those facilities. Contributions so received will be deposited in the Glenshire pplied to principal and interest payments resulting in a Water System Sinking Fund and a reduction to the monthly surcharge. 4. Accounting statements and inspection of company books: Within twenty (20)days of the execution of this Agreement the Company will provide to District, if and ComnanatshalltalsotpeDistrict rmit Dist cPs agents or customer funds requested, a current trial balance and deposits held by Company, Company at any time prior to close m escrow, any Of Company's books, representatives to review or audit, records or accounts and to otherwise verify the status Of Company's outstanding obligations, customer credits, accruals, and accounts 5. Conditions precedent to District's obligations to acquire: District's acquisition of the water system is subject to receiving appropriate approval of the shareholders of Company, from Nevada County Local Agency Formation Commission, and approval from the California Department of Health Services of an amendment to District's water operators permit. District's acquisition of water system is also subject to completion of the environmental review process set forth in the California Environmental Quality Act. District's acquisition of water system is contingent 3 aboven receipt of suitable funding to effectuate the improvements set forth in Paragraph 6. Opening of escrow: alifornia Land Title to effect the consummation of this District will open an escrow with C Agreement. Escrow shall close following the completion and satisfaction of all conditions precedent to the acquisition, including but not limited to approval the shareholders of Company, approval of Nevada County Local Agency Formation Commission, and on a date thereafter that logically meshes with District billing cycles and which is a logical date for District to take over and assume operation of the water 0 Ze f th Drequiredstrict will cond cond accomplish an escrow itions and performances under this closingdate that is on or about January Agreement are complied with and it is practical to do so. 7. Operating systems pending transfer: From and after execution of this Agreement and until transfer of system after close of escrow, the system and ovide er Company warrants and agrees tma they nner,will ld continue toill OPin andeepair the system arnno all utility service in good and satisfactory will not components thereof in a good and responsible and workmanlike manner; and that they incur any debts, liabilities obligations or encumbrances against the water system properties, or make modifications or alterations thereto beyond normal operational practices without Districts prior written approval. S. Actions of parties to close escrow: A. District shall pay all closing costs and shall submit all needed instructions to close escrow in accordance with this agreement B. Company shall be responsible for payment of all outstanding accounts payable, including taxes as defined by McClintock Accountancy, incurred by Company as of the close of Escrow. 9. Customer accounts, billings and records: Company shall transfer to District the amounts of all customer advance payments or deposits. Company shall transfer to District the records of the amounts of all customer advanceilpaymentt or deposits. Districts records shall reflect customer advance paynd ments.lists Company shall District fifteen (15) dayeAt thefore ltime of trose of ansfer of brow illing lete aresponsibility to District, Company shall used for billing purposes. turn over all of Company's customer accounts and billing records. Service to any new or added connections by District after transfer will be on the terms and conditions applicable thereto under Districts rules, regulations and policies. At the close of escrow, Company shall turn over and deliver to District as its property all of the Company's operating records, maps, plans, drawings, specifications,warranties and other files, correspondence and papers pertaining to the water system. 1o. Condition of water system: Company shall supply to District within fifteen (15)days after the execution of this Agreement the following information on the water system, to enable District to ascertain the existing conditions of the system: A. All available as-built installation plans, drawings and specifications; B. Maps showing the location of all pipelines, pumps, and appurtenant facilities (valves, hydrants, etc.), and easement for off-street locations so far as these are known to or can be ascertained by the Company; C. Size, type, material, and date of installation of all pumps, pipeline, and other component parts and facilities so far as this information is known to or can be ascertained by the Company. D. Types d locations or of all hydrantrtained , and air C vacs, blow-offs ow offs and other valves so far as s known E. Meter history cards. Such information, to the extent it is available, shall also include descriptions of any sub-standard installations, deficiencies or facilities in the system known to the Company or its employees, that could impair or not reble water service to the ara as sery d,by the waterprovide ffect system. District acknowledges ethat dCompany may have available all information described in this paragraph and Company Is only required to provide such information that it has and in the condition that It exists. 11. Insurance: Company agrees make its best effort to maintain in full force and effect all property damage, transfer1, and to liability and other insurance it had if effectnJa u aryth, 2ngsgurance prem ms on any such ce to District if requested at close of escrow, provided transferred coverage shall be pro-rated as of close of escrow. 12. Authorization: and pang warrants has that tbeen e execution uly and �ar1y au hof this e zed by the Board of Directors and thment and conveyance of said water e stockholders of Company in accordance with applicable law. District has been warrants hat the duly andecution of this Agreement and acceptance of the water system and prop regularly authorized by its Board of Directors at a meeting held in accordance with applicable law. 13. Future rates and financing of improvements: acco ding to the After the close of escrow District will charge to all other customers of District,he customers of Companyrex ept that customary rates, fees and charges as apply customers service are��des_ rove.' lEexibit B shall alsoved of shallay the monthly be served by District without bed n Paragraphs 3 and ��f) upon paying Districts conn Districts cilitiie feeion - All facil vacant facilities Lots e currently mprovedtwh which shall be required to pay are further built upon or further improved shall be required to pay fees in effect throughout Districts service territory at that time. 14. Litigation and undisclosed liabilities: Company states to the best of its knowledge that it is neither presently engaged in any legal action to recover money due it nor dam fore or by any es sustained by it nor state, municipal, c pals there, to the e otroothercompany's knowledge, any action at law or equity, govemmental department, commission board, bureau, o9aff affecting Coency or mpany, i instrumentality,business, assets pending, or threatened against Company 9 or properties or any basis for such action, suit proceeding, claim, investigation, audit, inquiry or hearing, except as disclosed below. Company states to the best of its knowledge that, except as set forth in Company's financial business tor assets are subject, o'therties or than those incurred inthe ord or inary coursngent to e of business ich ny its consistent with past practices. Company further warrants that it is not a party to nor are its assets bound by any agreement not entered into in the deed of trust ordinary lease or any agreement that is unusuaistent l in past practices, any indenture, mortgage, nature, duration or amount, including, without limitation, any agreement requiring the performance by Company of any obligation, calling for consideration of more than $any agrcompany ent that warrants that it is not a party to, nor is Company or any osf'its asoef fints ancial condition of Company. materially adverse to the business, assets, prospects Company discloses that the water storage tank located at the Strand site is in violation of the original use permit in that it encroaches four feet into the twenty-foot road setback. Company further discloses that it has an obligation to contribute to maintenance of Juniper Hills Homeowner Association for road maintenance approximately gain$45 access to well 20 and Somerset and Strand tanks. The quarterly fee is 15. Agreement shall not cause breach or violation: Neither the entry into this Agreement n r the following:consummation of the transactions contemplated hereby will result in or constitute any A. A breach of any term of this agreement; ould be a default, B. A default or any other event that wease franchise,oatr' Articles trust, or otheon of the agreement, Incorporation or By-Laws of either party or of any instrument, or arrangement to which the parties or their assets are bound, C. An event that would permit any party to terminate any agreement or policy of insurance or to accelerate the maturity of any indebtedness or other obligation of Company; D. The creation or imposition of any lien, charge or encumbrance on any of the assets of Company; or applicable to or E. The violation of any law, regulation, ordinance,judgment, order or decree affecting the parties in their business, assets or financial condition. 16. New transactions: Company shall not, prior to the close of escrow, do, or agree to do, any of the following acts enter into without the prior written consent of District: (a) enter into any contract, commitment or transaction not in the usual and ordinary course of its business, consistent with past practices; ss any contract, commitment or transaction in the usual and ordinary course of business involving an capital expenditures in excess of five thousand dollars($5,000) for amount exceeding one thousand dollars ($1,000) individually or two thousand dollars ($2,000) in the aggregate; (c) make any cap P any single item or in the aggregate, or enter into any leases of capital equipment or grope under which the annual lease charge is in excess of one thousand doillars ($1,000). 17. Conduct of business in normal course: Company shall carry on its business and activities diligently and in substantially the same manner as they have been carried on in the past through December 31, 2001, or until the close of escrow, Company as of that whichever shall occur later, and shall not make or institute any change in by Company n , accounting or operations that shall vary materially from the methods used by date of execution of this agreement. 18. Publicity: The parties agree that all notices to third parties and all other public communications concerning shall act unilaterally in this regard without the prior written issued between them, and neither party the transactions contemplated by this Agreement shall be jointly planned, coordinated, an approval of the other, such approval not to be unreasonably withheld or delayed. Nothing in this paragraph shall prohibit or otherwise limit disclosure which may be required pursuant to applicable statutes, including but not limited to, the California Public Records Act. Nothing in this agreement shall limit the ability of the Board of Directors of Company to communicate with its shareholders. 19. Employment of Glenshire Water System Staff: District agrees to employee on a full-time basis Mark Thomas, Dennis Sanchez, and Barbara Cahill, and on a part-time basis Karen Battler. Said employees will be initially employed by the District as probationary employees and, upon successful completion of the District's probationary period, shall be employed under the same terms and conditions as customarily apply to Distemployees. District will recognize the accrued vacation and sick leave benefits. District will recognize for purposes of future vacation accrual, an employment date of September 13, 1999 for ll, August 10,1992 Mark Thomas, for Karen Sattler..OThe s0 for eniority or ty date arbara 'fo said e f Dennisor July employees be the date they are 20, 1 92 employed by District 20, Entire agreement: This Agreement contains the entire agreement between the parties hereto, and supersedes all negotiations or prior agreements, and there are no representations or warranties except as expressly set forth or provided for in this Agreement. Time is of the essence for purpose of this Agreement. Each party agrees to execute all further documents necessary to implement and perform the terms and provisions of this Agreement. 21. Survival of warranties and representations: The representations made herein will be correct and accurate in all material respects as of the closing date, and shall survive the closing. 22. Notices: All notices, requests, demands and other communications under this agreement shall be in writing and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, or on the third day after mailing if mailed to the party to whom notice is given, by first class mail registered or certified, postage prepaid, and properly addressed as follows: To District: Clerk of the Board Truckee Donner Public Utility District P.O. Box 309 Truckee, California 96160 To Company: Glenshire Mutual Water Company 14630 Glenshire Drive Truckee, California 96161 23. Governing law: This Agreement shall be governed and construed in accordance with California law. 24. Dispute resolution: The parties agree that in any dispute or controversy that may arise after the effective date as a result of the terms and conditions of the Agreement or relationship between District and Company under this Agreement, if said dispute or controversy cannot be resolved by mutual agreement, then and in that event the dispute or controversy shall be settled by arbitration in accordance with the commercial arbitration rules of the American Arbitration Association, except that one arbitrator, who shall be approved by both parties to this Agreement, shall hear and decide such controversy or claim. Judgment upon the award rendered by the arbitrator may be entered in any court of competent jurisdiction. Any and all arbitration hearings shall be held in Nevada County. 25. Severability: if any term or provision of this Agreement, or the application thereof to any person or circumstances, shall to any extent be invalid or unenforceable, the remainder of the Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. The parties acknowledge that the provisions of s Agreement were the language hereof shall not be interpreted l for or against either t party. both parties hereto, and