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HomeMy WebLinkAboutCaldera Springs Release AgrmtsDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.o g AGENDA REQUEST & STAFF REPORT For Board Business Meeting of January 28, 2008 DATE: 1/23/08 FROM: Will Groves CDD - Planning 388-6518 TITLE OF AGENDA ITEM: Consideration and Signature of Document No. 2008-042 Authorizing Partial Release of Improvement Agreement Bonds (IA -05-7, IA -05-08, IA -06-1, IA -06-2) in the amount of $20,441,446. PUBLIC HEARING ON THIS DATE? No. BACKGROUND AND POLICY IMPLICATIONS: The applicant, Caldera Springs Real Estate, bonded for improvements required as conditions of approval in prior land use decisions TP -05-961, SP -05-53, SP -06-61 SP -06-52, V-06-16, and MA -6-23. A number of improvement agreements were implemented to accomplish this bonding. The applicant requested the release of bonds for the completed work. The applicant is presently bonded for $33,418,267. County ordinances require that bonds for infrastructure work be 120% of estimated construction costs and that bonds for overnight accommodations, recreational facilities and visitor -oriented facilities be 110% of estimated construction costs. Thus, the existing bonds secure the performance of work that was estimated to cost $29,310,106. Of this amount, $20,441,446 has been completed and $8,868,660 remains to be completed. The applicant has proposed to reduce the existing bonds where necessary to guaranty completion of the remaining work at the required percentage. Upon release/reduction, the remaining bonds will total $11,800,821, of which $9,756,676 is completion bonding and $2,044,145 represents warranty bonding (at 10% of the estimated construction costs). In addition, Staff notes that the release of $21,617,446 requires that the applicant submit a warrant) bond of ten percent of the released amount that guarantees the completed work for one year. The applicant submitted riders to the original bonds to clarify that those riders constitute the warranty bonds. FISCAL IMPLICATIONS: None. RECOMMENDATION & ACTION REQUESTED: Staff recommends that the Board approve and sign Document No. 2008-042. ATTENDANCE: BOCC, Legal, Will Groves DISTRIBUTION OF DOCUMENTS: BOCC, Legal, Will Groves January 23, 2008 Community Development Department Planning Division Building Safety Division Environmental Health Division 117 NW Lafayette Avenue Bend Oregon 9701-1925 (541)388-6575 FAX (541)385-1764 http://www.co.deschutes.o-.us/cdd/ MEMORANDUM To: Deschutes Board of County Commissioners From: Will Groves, Senior Planner Subject: Partial Release - Improvement Agreements for Caldera Springs. BACKGROUND The applicant, Caldera Springs Real Estate, bonded for improvements required as conditions of approval in prior land use decisions TP -05-961, SP -05-53, SP -06-61 SP -06- 52, V-06-16, and MA -6-23. A number of improvement agreements were implemented to accomplish this bonding. The applicant requested the release of bonds for the completed work. The applicant is presently bonded for $33,418,267. County ordinances require that bonds for infrastructure work be 120% of estimated construction costs and that bonds for overnight accommodations, recreational facilities and visitor -oriented facilities be 110% of estimated construction costs. Thus, the existing bonds secure the performance of work that was estimated to cost $29,310,106. Of this amount, $20,441,446 has been completed and $8,868,660 remains to be completed. The applicant has proposed to reduce the existing bonds where necessary to guaranty completion of the remaining work at the required percentage. Upon release/reduction, the remaining bonds will total $11,800,821, of which $9,756,676 is completion bonding and $2,044,145 represents warranty bonding (at 10% of the estimated construction costs). In addition, Staff notes that the release of $21,617,446 requires that the applicant submit a warranty bond of ten percent of the released amount that guarantees the completed work for one year. The applicant submitted riders to the original bonds to clarify that those riders constitute the warranty bonds. Quality Services Performed with Pride The applicant has submitted bond and construction information from W&H Pacific that was evaluated and deemed correct by George Kolb. Please see the attached memos for detailed cost information. SCHEDULE This item is scheduled for the Board's regular meeting on January 28, 2008. Please feel free to contact me with any questions or concerns. 11$ DE0-20-2007 THU 10:41 Ali Deschutes County Road ■ ■■11 DATE: - r FAX N0, 5413882719 FAX COVER SHEET P, 01/02 Road Department 61150 SE 27th St. • Bond, Oregon £37702 (541) 38s-6581- FAX (541] 3813.2718 PAGES SENT INCLUDING COVER: -- SEND TO: Company Name: (7 N i P... PROM: Attention; -},;tr-- Fax Number: 30 e zz g Subject: Qa.< _ Name Phone # • Name r Phone # Phone # ■ John Anderson 322-7102 ■ Scott Freshwaters 322-7129 _Name 0 Dennis Morris 0 Roger Olson 0 Vikki Opie 0 Kristi Putschler • Paul Richardson 322-7125 0 Mika Berry 322-7112 • Ken Grantham 322-7145 _ 322-7120 322-7149 322-7118 322-7123 , 0 Tcmn Biust 322-7105 ■ Eric Kellie 322-7107 ❑ Karen Bolf 322-7141 0 BiIly Henry 0 Margy Henry 322-7128 322-7101 ❑ Wanda Callahan 322-7103 ❑ Ana Cambra 322-7142 0 Bob Kirk 322-7109 0 Chuck Schutte 322-7124 III Kelli Candeila 322-7104eorge Kolb 322-7113 • Dan Sherwin 322-7135 • Greg Dawley 322-7126 322-7115 0 Ed Landers322-7121 ❑ Torina Wilson 322-7111 Cl Bob Dean 111Dee Martin 322-7122 ■ • Linda Elliot 322-7119 • Mike Martin 322-7150 Quality Services Performed with Pride DEC --20-2007 THU 10:41 AM Deschutes County Road FAX NO, 5413882719 P, 02/02 FAX MEMORANDUM Road Department 01150 SE 27th 5's. • Bend, Oregon 517702 (S41)313E3.8581 • MX 1541) 886.2719 DATE: 12/20/2007 TO: Will Groves, Associate Panner FROM: George Kolb, County Engineer RE: Request for Partial Bond Release — Caldera Springs Phase T Facilities CC: Jim Frost, W&I I Pacific Laurie Craighead, Deschutes County Legal Counsel The Road Department has reviewed and approved the attached cost estimate for construction bond release dated 12/12/07 for Caldera Springs Phase T Facilities. The Road Department has worked with W&11 Pacific on the verification of the estimate and based on site visits and correspondence with W&B Pacific, we are satisfied that the attached estimate is a accurate representation of the work left to be completed. Based on the above information, security in the amount of $9,513,104.00 will be required to remain in affect until final completion of the project. Please give me a call if I can be of Further assistance, partial release phase 1 12-20-07.Qality Services Performed with Pride W: PACIFIC AN ASOb On PANY December 12, 2007 Mr. George Kolb, P.E. Deschutes County Public Works Road Department 61150 SE 27th Bend, Oregon 97701 Re: Caldera Springs Facilities Revised Request for Partial Bond Release, 12/07 WHP File No.: 31840.1014 Dear George: 920 SW Emkay, Suite CI00 Bend, Oregon 97102-1041 541.388.4255 Fax 541.388.4229 Caldera Springs Real Estate has substantially completed the construction of Caldera Springs. The only major construction item that is not complete is 39 of the 40 VOA overnight units. Unit #25, the model home, is complete. Construction is complete for the golf course, lakes, streams, recreational paths, Lake House building and infrastructure for the Core Area. The infrastructure for the Phase 1 and 2 homesites, including the Sunriver roundabout and turn lanes is also completed. The perimeter berm is constructed and vegetated. On January 29, 2007 you approved construction of the golf course, the majority of the lakes and recreational paths, a portion of the Lake House, a portion of the Core Area infrastructure, the majority of the Phase 1 homesites and off-site street improvements, and the perimeter berm. The water mains and sewer mains were completed per the approved plan sets for the Phase 1 and Phase 2 homesites and for the Core Area. The water and sewer mains passed performance testing. Trench backfill was tested with acceptable results. The base rock and pavement were also tested, and all results were acceptable with the exception of the 700 lineal foot VOA Loop Road off the Core Area access road. The RICE compaction values were lower than the 92% expected, so we are keeping $13,800 to cover 120% for a 1-1/2" overlay. Based on periodic inspections by WH Pacific staff, Caldera Springs Development staff, Sunriver Environmental and Water LLC, it is my professional opinion that the project was constructed in conformance with the intent of the approved plan sets. Approved plan sets include the Phase lA and 1B residential homesite construction plans, the Core Area construction plans, the VOA Loop Road construction plans, and the Phase 2 homesites construction plans. Please schedule any appropriate field inspections and contact me if you have any questions or comments. If construction is acceptable, please notify the Deschutes County Planning Department that construction has been successfully completed with the exception noted. Sincerely, Pacific Inc. es E. Frost, P.E. roject Manager Cc: Steve Runner, Terry Penhollow, Walt West P:1 untie wort LP'.031840,ManagemenPe espondencelLetith31840-LANA-Letter to George Kolb re Caldera Springs Ph 1 Facilities Revised Hoed Re -JEF 121207.doc vwhpacitllc.com planners surveyors engineers l landscape architects Warranty Bond 10% $160,000 0)070 } $828,210 /k co \kkk § & Performance Bond Remaining 0 2200 CO # CO 0 23 TOTALS: $26,499,628 $29,310,106 $33,418,267 $20,662,8751 $8,647,231 $9,513,104 Construction Remaining 0 #2)o \& $ 0 22 Construction Complete $1,600,000 o CO // 01 O4 o CO ,- $8,282,100 }v7a8 CO o CP ___ Bonded amount $1,760,000 o k#a� kW.k n N § 2 # kk m ®Q co .0 E\ �. �I3 / ® \//§ trio f P-.. - co. ®® - $8,282,100 k°- } - Original Cost Estimate 0 0 O R. ' 0 ' 0 \J$ 49_49 CO q/ w 0 $1,542,000 0 - % 0) _ 78 2 a\ •0 _ Description Par 5 Construction (Golf Course) Lakes & Recreational Paths Clubhouse-(Lakehouse) VOA Overnight Units Infrastructure for Core Area, Road, Utilities, Parking Phase I Homesites Includes Roundabout at Sunriver and Tum Lanes Perimeter Berm Phase 2 Homesites Infrastructure Exhibit Number — N n 10 o w Note: Destination Resort construction is bonded at 110%, residential construction is bonded at 120%. Warranty Bond is 10% r:Nunrnar Kasorc Lr w318401Dosign\Cost Estimates \31840-LAND-Caldorn Springs Bond Amounts CompletodJEF 121207.xls 41 O T N M CO 0) • O O O O C • E▪ M(u� (� MM m c T co co co Tco co co .— , co Z (0(0(0 co co co (0 CO O M CO O OM N- O T N O O 0) 10 O CO- N •a- N O 0) O co O O co 0) 0 0 T V N O CO- CO- N N CO O O O O (() T O O N O M M N CO O O co M O O O O O O I� O (O I- I- O CO 1".. - LO O O N - CSO SCh CO 1".. - CO O 0 O O O m N O T 0) 0 CO CO 0 T N To O CS 0) O 0 CO N • T E r T W C O c V'0 3 Q r N C -p O T 0) o co co E0(00N (O N 7 T N cn O - N COO CO N O O 0) CO- CA - '4' CO COLOLO v v 0i O (0 O O O O O 0) N N LO- CO OM M N CO - co M O CO O (0O O Ov - O Ov O (0 cco (0 co co N 05 CO - O co M O O O 0) O O N O O O T O O LO 0) M O (0 M N O co co O co (0 (0 O v (0 0) Clubhouse & Infrastr Infrastructure a) 1 7 +. • N N a) � ▪ a) w W E • CO I- • < I 1Q- a5 Grand Total REVIEWED LEGAL COUNSEL • For Recordin• Stam. Onl CALDERA SPRINGS RESORT PARTIAL RELEASE OF IMPROVEMENT AGREEMENT BONDS Whereas, Deschutes County (the "County") and Caldera Springs Real Estate LLC ("CSRE") previously entered into that certain Improvement Agreement recorded February 17, 2006 at 2006- 11382 and that certain Improvement Agreement recorded February 17, 2006 at 2006-11381 :as amended, the "Agreements"); and Whereas, pursuant to the Agreements, CSRE provided security for the construction of the Required Improvements (as defined in the Agreements) in the form of 7 separate bonds; and Whereas, pursuant to Section 17 of the Agreement, CSRE has completed the majority of the Required Improvements and seeks to reduce the bonds to cover the remaining work and the warranty period required by Section 6 of the Agreements, and the County has agreed as provided herein; now, therefore; 1. Partial Release of Bonds. The County hereby approves a release and/or reduction of the bonds provided pursuant to the Agreements as follows: A. Bond No. 8813700. Bond No. 8813700 guarantees construction of the golf course. The golf course has been completed and accepted by the County. The total construction cost was One Million Six Hundred Thousand Dollars ($1,600,000). Accordingly, such bond may be reduced to a warranty bond in the amount of ten percent (10%) of such cost or One Hundred Sixty Thousand Dollars ($160,000). B. Bond No. 8835801. Bond No. 8835801 guarantees construction of the lake. The lake has been completed and accepted by the County. The total construction cost was Two Million Two Hundred Eighty Thousand One Hundred Thirty -One Dollars. ($2,280,131). Accordingly, such bond may be reduced to a warranty bond in the amount of ten percent (10%) of such cost or Two Hundred Twenty -Eight Thousand Thirteen Dollars ($228,013). C. Bond No. 8835802. Bond No. 8835802 guarantees construction of paths. The paths have been completed and accepted by the County. The total construction cost was Four Hundred Twenty -Nine Thousand Two Hundred Sixty -Nine Dollars ($429,269). Accordingly, such bond may be reduced to a warranty bond in the amount of ten percent (10%) of such cost or Forty -Two Thousand Nine Hundred Twenty -Seven Dollars ($42,927). PAGE 1 OF 2 — CALDERA SPRINGS RESORT PARTIAL RELEASE OF IMPROVEMENT AGREEMENT BONDS — Deschutes County Document No. 2008-042 D. Bond No. 8835803. Bond No. 8835803 guarantees construction of the Iakehouse (formerly called the "clubhouse") and road and utility infrastructure within the core area. The Iakehouse and all road and utility infrastructure covered by this bond has been completed. However, CSRE and the County's road engineer have noted that an additional overlay might be necessary during 2008 for a 700 lineal foot portion of the loop road off the core area access road. The estimated cost of that additional overlay is Eleven Thousand Five Hundred Dollars ($11,500). As per County bonding requirements, CSRE must continue to provide bonding for 120% of this cost, or Thirteen Thousand Eight Hundred Dollars ($13,800). The construction cost of the completed work is Four Million Three Hundred Sixty Thousand Five Hundred Forty -Six Dollars ($4,360,546). The warranty bond should be ten percent (10%) of this amount or Four Hundred Thirty -Six Thousand Fifty Five Dollars ($436,055). Accordingly, this bond may be reduced to a completion bond in the amount of $13,800 and a warranty bond in the amount of $436,055 for a total bond amount of Four Hundred Forty -Nine Thousand Eight Hundred Fifty -Five Dollars ($449,855). E. Bond No. 8835804. Bond No. 8835804 guarantees construction of overnight accommodations. One building is completed. The construction cost for that building was Two Hundred Twenty -One Thousand Four Hundred Twenty -Nine Dollars ($221,429). The warranty bond should be ten percent (10%) of this amount or Twenty Two Thousand One Hundred Forty -Three Dollars ($22,143). The cost to complete the remaining buildings is estimated to be Eight Million Six Hundred Thirty -Five Thousand Seven Hundred Thirty -One Dollars ($8,635,731). The completion bond should be one hundred and ten percent (110%) of this estimate or Nine Million Four Hundred Ninety -Nine Thousand Three Hundred Four Dollars ($9,499,304). Accordingly, this bond may be reduced to a warranty bond in the amount of $22,143 and a completion bond in the amount of $9,499,304, for a total bond amount of Nine Million Five Hundred Twenty -One Thousand Four Hundred Forty -Seven Dollars ($9,521,447). F. Bond No. 8813698. Bond No. 8813698 guarantees construction of the roads and utilities within Phase 1 of Caldera Springs. Construction of the roads and utilities within Phase 1 of Caldera Springs has been completed and accepted by the County. The total construction cost was Eight Million Two Hundred Eighty -Two Thousand One Hundred Dollars ($8,857,160). Accordingly, such bond may be reduced to a warranty bond in the amount of ten percent (10%) of such cost or Eight Hundred Twenty Eight Thousand Two Hundred Ten Dollars ($828,210). G. Bond No. 8813699. Bond No. 8813699 guarantees construction of berm and irrigation improvements within Phase 1 of Caldera Springs. Construction of the berm and irrigation improvements has been completed and accepted by the County. The total construction cost was Four Hundred Eighty -Five Thousand Four Hundred Dollars ($485,400). Accordingly, such bond may be reduced to a warranty bond in the amount of ten percent (10%) of such cost or Forty -Eight Thousand Five Hundred Forty Dollars (48,540). 2. Riders. Riders for each of the above bonds are attached and incorporate by reference herein. SIGNATURES ON THE FOLLOWING PAGES PAGE 2 OF 2 — CALDERA SPRINGS RESORT PARTIAL RELEASE OF IMPROVEMENT AGREEMENT BONDS — Deschutes County Document No. 2008-042 Dated this of , 2008 BOARD OF COUNTY COMMISSIONERS ATTEST: Recording Secretary STATE OF OREGON ) ) ss. County of Deschutes ) DENNIS R. LUKE, CHAIR TAMMY (BANEY) MELTON, VICE -CHAIR MICHAEL M. DALY, COMMISSIONER Before me, a Notary Public, personally appeared DENNIS R. LUKE, TAMMY (BANEY) MELTON, and MICHAEL M. DALY and the above-named Board of County Commissioners of Deschutes County, Oregon and acknowledged the foregoing instrument on behalf of Deschutes County, Oregon. DATED this day of , 2008. Notary Public for Oregon My Commission Expires: Dated this of January 2008 DEVELOPER: CALDERA SPRINGS REAL ESTATE LLC By Its STATE OF OREGON ) ) ss County of Deschutes ) Before me, a Notary Public, personally appeared and acknowledged the foregoing instrument as of Caldera Springs Real Estate LLC. DATED this_ day of January 2008 Notary Public, State of Oregon My Commission Expires: PAGE 3 OF 2 — CALDERA SPRINGS RESORT PARTIAL RELEASE OF IMPROVEMENT AGREEMENT BONDS — Deschutes County Document No. 2008-042 SURETY RIDER To be attached to and form a part of: Type of Bond: Subdivision bond Bond No: 8835861 Executed By: Caldera Springs Real Estate, LLC And By: Fidelity and Deposit Company of Maryland and Zurich American Insurance Company In Favor of: County of Deschutes, OR In consideration of the mutual agreements herein contained the Principal and the Surety hereby consent to decreasing the bond amount, of which reflects the amount of warranty and is still intended to satisfy the obligations contained in Section 6 of the Improvement Agreement: From: Three Million Two Hundred Seventy Nine Thousand Six Hundred and NO/100 ($3,279,600.00) To: Three Hundred Thousand Four Hundred and NO/100 ($300,400.00) Nothing herein contained shall vary, alter or extend any provision or condition of this bond except as herein expressly stated. Signed, sealed and dated this 15th day of January, 2008 Fidelity and Deposit Company of Maryland By: Kristine Mendez, Attorney -In -Fact SURETY RIDER To be attached to and form a part of: Type of Bond: Subdivision bond Bond No: 8813698 Executed By: Caldera Springs Real Estate, LLC And By: Fidelity and Deposit Company of Maryland and Zurich American Insurance Company In Favor of: County of Deschutes, OR In consideration of the mutual agreements herein contained the Principal and the Surety hereby consent to decreasing the bond amount, of which reflects the amount of warranty and is still intended to satisfy the obligations contained in Section 6 of the Improvement Agreement: From: Nine Million Nine Hundred Thirty Eight Thousand Five Hundred Twenty and NO/100 ($9,938,520.00) To: Eight Hundred Twenty Eight Thousand Two Hundred Ten and NO/100 ($828,210.00) Nothing herein contained shall vary, alter or extend any provision or condition of this bond except as herein expressly stated. Signed, sealed and dated this 15th day of January, 2008 Fidelity and Deposit Company of Maryland By: Kristine Mendez, Attorney -In -Fact AN A®QB QORP.4141" December 12, 2007 Mr. George Kolb, P.E. Deschutes County Public Works Road Department 61150 SE 27th Bend, Oregon 97701 Re: Caldera Springs Facilities Revised Request for Partial Bond Release, 12107 WHP File No.: 31840.1014 Dear George: 920 SW Emkay, Suite C100 Bend, Oregon 97702-1041 541.388.4255 Fax 541.388.4229 Caldera Springs Real Estate has substantially completed the construction of Caldera Springs. The only major construction item that is not complete is 39 of the 40 VOA overnight units. Unit #25, the model home, is complete. Construction is complete for the golf course, lakes, streams, recreational paths, Lake House building and infrastructure for the Core Area. The infrastructure for the Phase 1 and 2 homesites, including the Sunriver roundabout and turn lanes is also completed. The perimeter berm is constructed and vegetated. On January 29, 2007 you approved construction of the golf course, the majority of the lakes and recreational paths, a portion of the Lake House, a portion of the Core Area infrastructure, the majority of the Phase 1 homesites and off-site street improvements, and the perimeter berm. The water mains and sewer mains were completed per the approved plan sets for the Phase 1 and Phase 2 homesites and for the Core Area. The water and sewer mains passed performance testing. Trench backfill was tested with acceptable results. The base rock and pavement were also tested, and all results were acceptable with the exception of the 700 lineal foot VOA Loop Road off the Core Area access road. The RICE compaction values were lower than the 92% expected, so we are keeping $13,800 to cover 120% for a 1-1/2" overlay. Based on periodic inspections by WH Pacific staff, Caldera Springs Development staff, Sunriver Environmental and Water LLC, it is my professional opinion that the project was constructed in conformance with the intent of the approved plan sets. Approved plan sets include the Phase lA and 1B residential homesite construction plans, the Core Area construction plans, the VOA Loop Road construction plans, and the Phase 2 homesites construction plans. Please schedule any appropriate field inspections and contact me if you have any questions or comments. If construction is acceptable, please notify the Deschutes County Planning Department that construction has been successfully completed with the exception noted. Sincerely, Pacific nc. ....._rte es E. Frost, P.E. 'roject Manager Cc: Steve Runner, Terry Penhollow, Walt West P9auris esortLP031840,hianageenPC esponknce�Lettcr131840-LAND-Lel ter toGeorge Kolb reCaldera Springs Ph1Facilities Revised fondRe-JEF121207.doe whpac�tmc.com planners surveyors engineers landscape architects %0I. sl puo8 Jue.ueM Note: Destination Resort construction is bonded at 110%, residential construction is bonded at 120%. TOTALS: $26,499,6281 $29,310,1061 033,418,267 $20,662,8751 $8,647,231 $9,513,104 +t 0) CO A W N Exhibit Number Phase 2 Homesites Infrastructure Perimeter Berm Phase 1 Homesites Includes Roundabout at Sunriver and Tum Lanes Infrastructure for Core Area, Road, Utilities, Parking VOA Ovemight Units Clubhouse - (Lakehouse) Lakes & Recreational Paths Par 5 Construction (Golf Course) Description W A S O w O O N N O 0 In NO+ 0-"0 0 mNN j') UNi 0) (00 0 000'009'1.$ Original Cost Estimate W AO in C7 _ O s. $8,282,100 $1,542,000 COS V O 69 ) co O500 p N 0 OO 4,02 O O Adjusted Estimate W pO) O AN OD O ( (O () CO 0 40 (0 O O N A NCO Co WQO { W —032 OWWO C) N OA $1,760,000 Bonded amount $3,004,000 A CO Bco�p N ER (n 0 (COOO4NOO O N iv — (O 6-A N O3 WpOC)t O N -4 (O N d) Construction Complete 0 0 0 69 N O CA O O) W Cn V --• O $0 O Construction Remaining O O $13,800 in ) A 40 .50W AO 0 0 O Performance Bond Remaining fA N pN] 00 fA 0O a $48,540 to41) OND -N+ O W (f 0 $22,143 (9 W O N ii) O A 0 (n 0) O 0 Warranty Bond 10% a d N a 0 0 f/1 C n L* 0 n 0 3 ya M N O V N f; G 4. a 0 $o) N 0 3 N m N 2 C REVISED 1/18/2007 to match the latest bond estimate submitted to Deschutes County. asealaa puog uogoruisuo3 s6uudg eiapieo SURETY RIDER To be attached to and form a part of: Type of Bond: Subdivision bond Bond No: 8813699 Executed By: Caldera Springs Real Estate, LLC And By: Fidelity and Deposit Company of Maryland and Zurich American Insurance Company In Favor of: County of Deschutes, OR In consideration of the mutual agreements herein contained the Principal and the Surety hereby consent to decreasing the bond amount, of which reflects the amount of warranty and is still intended to satisfy the obligations contained in Section 6 of the Improvement Agreement: From: Five Hundred Eighty Two Thousand Four Hundred Eighty and N0/100 ($582,480.00) To: Forty Eight Thousand Five Hundred Forty and NO/100 ($48,540.00) Nothing herein contained shall vary, alter or extend any provision or condition of this bond except as herein expressly stated. Signed, sealed and dated this 15th day of January, 2008 Fidelity and Deposit Company of Maryland By: Kristine Mendez, Attorney -In -Fact SURETY RIDER To be attached to and form a part of: Type of Bond: Subdivision bond Bond No: 8813700 Executed By: Caldera Springs Real Estate, LLC And By: Fidelity and Deposit Company of Maryland and Zurich American Insurance Company In Favor of: County of Deschutes, OR In consideration of the mutual agreements herein contained the Principal and the Surety hereby consant to decreasing the bond amount, of which reflects the amount of warranty and is still intended to satisfy the obligations contained in Section 6 of the Improvement Agreement: From: One Million Seven Hundred Sixty Thousand and NO/100 ($1,760,000.00) To: One Hundred Sixty Thousand and NO/100 ($160,000.00) Nothing herein contained shall vary, alter or extend any provision or condition of this bond except as herein expressly stated. Signed, sealed and dated this 15th day of January, 2008 Fidelity and Deposit Company of Maryland By: Kristine Mendez, Attorney -In -Fact SURETY RIDER To be attached to and form a part of: Type of Bond: Subdivision bond Bond No: 8835801 Executed By: Caldera Springs Real Estate, LLC And By: Fidelity and Deposit Company of Maryland and Zurich American Insurance Company In Favor of: County of Deschutes, OR In consideration of the mutual agreements herein contained the Principal and the Surety hereby consent to decreasing the bond amount, of which reflects the amount of warranty and is still intended to satisfy the obligations contained in Section 6 of the Improvement Agreement: From: Two Million Five Hundred Eight Thousand One Hundred Forty Four and 10/100 ($2,508,144.10) To: Two Hundred Twenty Eight Thousand Thirteen and NO/100 ($228,013.00) Nothing herein contained shall vary, alter or extend any provision or condition of this bond except as herein expressly stated. Signed, sealed and dated this 15th day of January, 2008 Fidelity and Deposit Company of Maryland By: Kristine Mendez, Attorney -In -Fact SURETY RIDER To be attached to and form a part of: Type of Bond: Subdivision bond Bond No: 8835801 Executed By: Caldera Springs Real Estate, LLC And By: Fidelity and Deposit Company of Maryland and Zurich American Insurance Company In Favor of: County of Deschutes, OR In consideration of the mutual agreements herein contained the Principal and the Surety hereby consent to decreasing the bond amount, of which reflects the amount of warranty and is still intended to satisfy the obligations contained in Section 6 of the Improvement Agreement: From: Four Hundred Seventy Two Thousand One Hundred Ninety Five and 90/100 ($472,195.90) To: Forty Two Thousand Nine Hundred Twenty Seven and NO/100 ($42,927.00) Nothing herein contained shall vary, alter or extend any provision or condition of this bond except as herein expressly stated. Signed, sealed and dated this 15th day of January, 2008 Fidelity and Deposit Company of Maryland By: Kristine Mendez, Attorney -In -Fact