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On June 8, 2015, D.R. Horton (successor to KC Bello LLC) entered into a subdivision agreement, submitted performance and labor and material bonds, and paid all development fees. All subdivision improvements have now been constructed and the public improvements are ready for acceptance. DISCUSSION Construction of Subdivision Improvements The subdivision agreement provided for the construction of a public street with public utilities and private improvements to serve the 10 new lots and the existing lot (Chrisman residence). Public Improvements The public subdivision improvements serving the 10 new lots that will be operated and maintained by the City include a public street (Silver Oaks Lane) and the following improvements located within this street: a sanitary sewer main, storm drain systems, a water main and 10 water laterals, seven street lights, and three fire hydrants. Private Improvements The following private improvements serving the 10 new lots and existing lot will be maintained by homeowners association as provided for in the Declaration of Covenants, Conditions, and Restrictions and Establishment of Easements of Three Oaks (CC&Rs) that was recorded on July 5, 2016: • Landscaping, irrigation and retaining walls located within the landscape easement on Lot 1; and • Bioswales located on Lots 1 through 10 (inclusive)(except that each lot owner shall be responsible to irrigate the bioswale located on his/her lot); and • All storm drain facilities on association property (Parcels B, C and D2). The following improvements located on Parcel A (the existing lot and site of the Chrisman residence) shall be maintained by owner of said lot: • Private road; and • Drainage inlet labeled at DI #6 on the as-built plans; and • 6-inch and 4-inch diameter sanitary sewer laterals; and • 2 1/z -inch diameter water service lateral; and • Concrete J-Ditch; and • Water booster pump. Page 3 of 4