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CITY REIMBURSEMENT AGREEMENT FOR PIPELINE IMPROVEMENTS <br /> <br /> THIS CITY REIMBURSEMENT AGREEMENT ("Agreement") is entered into this <br />__ day of ., 2005 by and between the CITY OF PLEASANTON, a municipal <br />corporation ("City"), and Callahan Properties, ("Developer"). <br /> <br />RECITALS <br /> <br /> A. Developer is the owner of the property known as Mitchell Katz Winery Complex (the <br />"Property") and surrounding vineyard area. <br /> <br /> B. The Developer has obtained approval for a development consisting of a winery <br />building, event center and a residential home located at or adjacent to 1188 Vineyard Avenue. <br /> <br /> C. In conjunction with the development of the property, the Developer is <br />constructing certain water system improvements ("Improvements") indicated as the Phase II <br />portion of the pipeline, as delineated in Exhibit "A", attached hereto and incorporated herein by <br />this reference. The Improvements consist of installing approximately 1525 linear feet of 16- <br />inch diameter water pipe, which will benefit the City's water system. <br /> <br /> D. To the extent that some portions of the Improvements exceed the Project's <br />requirements, the City shall reimburse Developer for such costs as described below. <br /> <br /> NOW, THEREFORE, in exchange for mutual consideration, the receipt and value of <br />which is acknowledged, the parties agree as follows: <br /> <br />Section 1. Improvements. <br /> <br />(a) The constructed Improvements, financed by Developer will benefit the City. Pursuant to <br />sections 66486, et. seq. of the Subdivision Map Act, Developer is entitled to recover the <br />reimbursable costs of the Improvements from the City. The construction of the Improvements <br />and the related work being installed by the Developer is generally pro rata share of construction <br />of 16-inch waterline for approximately 1,525 linear feet within the Property and is delineated <br />more particularly in Exhibit "A" as "Phase II". The design cost of the improvements financed <br />by Developer includes a 16-inch waterline delineated in Exhibit "A" as "Phase II" and "Phase <br />III". The City will reimburse the engineering design of the Improvements furnished by <br />Developer's engineering consultant. <br /> <br />Section 2. Reimbursable Amount. <br /> <br />SR:05:009 <br />Page 5 of 8 <br /> <br /> <br />