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89-135 Improvement agreement- Miller Ave Reso 7900, APN 369-16-2 RESOLU'T'ION NO. 7900 A RESOIDTION OF no CITY OCRJNCIL OF THE CITY OF CUPERTINO APPROV.LNG PARCEL MAP AND IMPROVEMENT PLANS OF PROPERTY LOCATED ON M MUM AVENUE', DEVELOPER DURA STYLE HOMES, INC., AUMCRIZING EXECUTION OF IMPROVEMENT AGREEMENT; AUTHORIZING SIGNING OF PARCEL MAP AND IMPF40VEMENT PLANS WHEREAS, there has been presented to the City Council for approval of the parcel map and improvement plans of property located on Miller Avenue by Dura Style Hanes, Inc.; and WHEREAS, there has been presented to the City Council a proposed agreement for the construction of streets, curbs, and gutters, and for other improvements and good and sufficient bonds (letter of credit) , fees, and deposits as set forth in Exhibit "A" having been presented for the faithful performance of said work and the carrying out of said agreement; and said map, agreement, and bonds having been approved by the_City Attorney NOW, Z MUFORE, HE IT RESOLVED THU a. Said parcel map and improvement plans herein referred to are hereby approved b. The offer of dedication for street areas and all easements is hereby accepted. C. The City Engineer is hereby authorized to sign said improvement plans. d. The City Engineer and the City Clerk are hereby authorized to sign said parcel map and have it recorded. e. The Mayor and the City Clerk are hereby authorized to execute the agreement herein referred to. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Cupertino this 7th day of August , 1989, by the following vote: Vote Members of the City Council AYES: Gatto, Johnson, Koppel, Rogers, Plungy NOES: None ABSENT: None ABSTAIN: None ATTEST: APPROVED: /s/ Dorothy Cornelius /s/ John J. Plungy, Jr. City Clerk Mayor, City of O pertino Resolution No. 7900 EXHIBIT "An SCl-U= OF BOND, FEES, AND DEPOSITS DEVELOPEM: Single Family DEVELOPER: Dura Style Hanes, Inc. LOCATION: Miller Avenue A. Faithful Performance Bond $26,283.00 Twenty Six Thousand Two Hundred Eighty Three Dollars and N0/100 B. Labor and Material Bond: $26,283.00 Twenty Six Thousand Two Hundred Eighty Three Dollars and No/100 C. Checking and Inspection Fee: $ 1,314.00 One Thousand Three Hundred Fourteen Dollars and No/100 D. Indirect City Expenses: $ 197.00 One Hundred Ninety Seven Dollars and No/100 E. Developuent Maintenance Deposit: $ 1,000.00 One Thousand and No/100 F. Storm Drainage Fee: $ 787.00 Seven Hundred Eighty Seven Dollars and No/100 G. One Year Power Cost: N/A H. Street Trees: By Developer I. Map Checking Fee: $ 210.00 Two Hundred Ten Dollars and No/100 J. Park Fee: Zone III 480-0000-416-033 $42,000.00 K. Plater Main Extension Deposit: N/A L. Maps and/or Inpravenbent Plans: As Specified in Item 23 of Agreement AGREEMENT MILLER AVE. APN #369-16-2 This made and entered into this 7� day of 19 /1 , by and between the CITY OF aJ=.ENO, a municipal corporation of the State of California, hereinafter designated as CI'T'Y, and Dura Sty 1 e Homes , Inc . : hereinafter designated as DEVELOPER. WITNESSETH WHEREAS, the DEVELOPER has made application to the CITY for a BUILDING PERMIT to constnict and maintain a SINGLE FAMILY DWELLING hereinafter referred to as "Project." WHEREAS, CITY hereby approves the inprovement plans and specifications prepared for the Project by JAMES C. CHEN & ASSOC. i a true cooy of which improvement plans and specifications are on file in the offic.: �)f the City Engineer of Cupertino; and WHEREAS, the same are incorporated herein by reference, the same as though set out in full; NOW, THEREEmE, said improvement plans and specifications shall, be hereinafter called the "Plans," and the work to be done under the Plans shall be called the "Work." WHEREAS, pursuant -to the provisions of this AGRFEmEvr, the CITY hereby -established the amounts of Bonds, Fees, and Deposits as set forth in the following schedule: SC ED= OF BONDS, FEES AND DEPOSITS Street Improvement Category: PART A. Faithful Performance Bond: TWENTY SIX THOUSAND TWO HUNDRED EIGHTY THREE DOLLARS AND N0/100 $26,283.00 PART B.. Labor and Material Bond: `: TWENTY SIX THOUSAND TWO HUNDRED EIGHTY THREE DOLLARS AND N0/100 $26,283.00 PART C. Checking and Inspection Fee: ONE THOUSAND THREE HUNDRED FOURTEEN DOLLARS AND N011 00 $ 1,314.00 PART D. Indirect City Expenses: ONE HUNDRED NINETY SEVEN DOLLARS AND N0/100 $ 197.00 PART E. Developmnt Maintenance Deposit: ONE THOUSAND DOLLARS AND NO/100 $ 11000.00 PART. F. Storm Drainage Fee: . SEVEN HUNDRED EIGHTY SEVEN DOLLARS AND N0/100 $ 787.00 PART. G. One Year Power Cost: N/A PART:H. . Street Trees: By Developer PART I. Map Checking Fee: TWO HUNDRED TEN DOLLARS AND N0/100 $ 210.00 :PART J. Park Fee: Zone III 480-0000-416-033 : . FORTY:TWO THOUSAND DOLLARS AND N0/100 $42,000.00 .PART.K. Water Main Extension Deposit: ' N/A -PART L. Maps arid/or Improvement Plans: AS SPIs'Cll7LD IN 1TEN 23 2 NOW, THEREFORE, IT IS HEREBY MM ALLY AGREED by and between the parties hereto as follows, TO WIT: 1. DEDICATION A. The DEVELOPER offers to dedicate the real property shown on Exhibit "A", which is attached hereto and made a part hereof by reference. Said dedicated property shall be free and clear of all liens or encumbrances except those which the CITY shall waive in writing. The DEVELOPER agrees not to revoke said offer of dedication, and- to keep said offer open until the CITY accepts offer by resolution. B. Upon execution of this AGFEDUM the DEVELOPER agrees to deliver a properly executed grant deed to the CITY of the real property described in Exhibit "A", and such other executed conveyances, or instruments necessary to convey clear title as herein ' required. The DEVELOPER shall provide, at the DEVELOPER'S sole cost and expense, to the City: (1) A preliminary title report issued by a title insurance company relating to the property offered for dedication. (2) - A standard policy of title insurance issued by a title insurance cc pany and insuring the CITY in the sum of: N/A, and which shall show said property free and clear of all liens or encumbrances except these as the QTY shall expressly waive in writing; said policy shall be 'furnished at the time of acceptance of dedication and recordation of deed. C. Upon the condition precedent that the DEVELOPER shall perform each and every covenant and condition of this AGREEMEMr, the CITY agrees to accept said real property offered for dedication. 2. INS7 AT T ATTR] OF WORK It is further agreed that: A. The DEVELOPER shall install and complete the Work within one• (1) year from. the date of execution of this AGRE0I', or such longer period as may be specifically authorized in writing by the City Engineer. in the event the DEVELOPER fails or refuses to oamplete the Work within the specified period of time, the, CITY, at its. sole option, shall be authorized to complete the Work in whatever manner the CITY shall decide. In the event the CITY completes the Work, the CITY may recover .any and all costs incurred thereby fran the DEVELOPER or the DEVELOPER'S surety or both. H. The DEVELOPER shall install and owlets the Work in a good and workmanlike manner in accordance with the plans as approved by the City Engineer of Cupertino. The Work shall be done in accordance with existing ordinances and resolutions of the CITY and in acoordance with all plans, specifications, standards, sizes, lines, and grades approved by the City Engineer. The Work shall be done in acoordance with all State and County Statutes applicable hereto. The decision of the City Engineer shall be final as to whether any material or workmanship meets the standards, specifications, plans, sizes, lines and grades as set forth. 3 C. It is further agreed that the Work shall be done in accordance with the most current Standard Specifications of the Department of public Works, California Department of Transportation, State of California, and in accordance with the specifications of the Cupertino Sanitary District where applicable. Wherever the words "State" or "California Division of Highways" are mentioned in the State Specifications, it shall be considered as referring to the CITY of Cupertino; also mer the "Director" or "Director of Public Works" is mentioned, . it shall be considered . as referring to the City Engineer. In case of conflict between the State Specifications and the specifications of the CITY and,/or the Cupertino Sanitary District, the specifications of the CITY and/or the Cupertino Sanitary District shall take precedence over and be used in lieu of such conflicting portions. 3. EXCAVATION PERMIT It is further agreed that the DEVELOPER shall comply with Section Three of Ordinance-No. 130 of the CITY by obtaining an excavation permit frown the City Engineer before the camnencement of any excavation in, on, or under the surface of any existing public street, lane, alley, sidewalk, or other public place. It is further agreed that the DEVELOPER shall notify the City Engineer of the exact date and time when the proposed excavation is to commence. 4. QUITCLAIM D® It is further agreed than the DEVELOPER, when requested by the CITY, shall quitclaim all his rights and interests in, and shall grant to CITY authorization to extract water from the strata lying beneath said project and DEVELOPER agrees to -'execute a "Quitclaim Deed and Authorization" in favor of CITY, when presented.to him for signature. 5. BCNDtS AND OTR SECURI'T'Y A. Upon the execution of this AGRM4ERr, the DEVELOPER shall file with the CI'T'Y a faithful performance bond to assure his full and faithful performance of this AMUEMEM. The penal sum of said faithful performance bond shall be the full cost of any payment to be made under this AGREE ERr, the value of any nand agreed to be dedicated, and any improvements to be made under. this AGRE MU. In the event that improvements are to be made under this AGREDEM, the DEVELOPER shall, in addition to said faithful performance, file with the CITY a labor and materials band in a penal sum adequate to assure full payment of all labor and materials required to construct said improvements. The amount of said bonds shall be as designated by the, City Engineer. Said bonds shall be executed by a surety oampany authorized to transact a surety business in the State of California and must be approved by the City. Attorney as to form and by the City Engineer as to sufficiency. In the event that the DEVELOPER shall .fail faithfully to perform the covenants and conditions of this AGRMMU, or to make any payment, or any dedication of lard, or any improvements herein required, the CITY shall call on the surety to perform this AGREEMENT or otherwise indemnify the CITY for the DEVELOPER'S failure to so do. B. In lieu of a-surety bond, the DEVELOPER may elect to secure this AGREEMEar by depositing with the CITY: 1. Cash; or, 2. A cashier's check, or a certified check payable to the order of the City of Cupertino; or, 3. A certificate of deposit, or instrunent of credit meeting the requi remerrts of Government Code Section 66499 (b) or (c) C. The amount of said cash, checks, certificate of deposit, or instrument of credit shall be as designated by the City Engineer, and shall be the equivalent to that which would have been required had the DEVELOPER furnished the CITY with a surety bond. In the event that the DEVELOPER shall failfaithfully to perform the covenants and conditions of this AGREEMENT, or to make any payment, or any dedication of land, or any improvements herein required, the CITY may apply the proceeds of said security thereto. D. No release of surety board, cash deposit, check, or certificate of deposit, shall be made except upon approval of the City Council. E. No interest shall be paid on any security deposited with the CI'T'Y. 6. CHECKING AND INSPECITON FEE It is further agreed that DEVELOPER shall pay any and all necessary direct expenses for inspection, checking, etc., incurred by CITY in connection with said Project, arra that DEVELOPER shall have deposited with CITY, prior to execution of this AGREEM Rr, the amount as set forth herein at Page 2 (Part C) . Should construction cost vary materially from the estimate fr , which said sum is calculated, the City Engineer shall notify DEVELOPER of any additional stun due and owing as a result thereof. 7. INDIRECT EXPENSES It is further agreed that DEVELOPER shall pay to CITY, prior to execution of this AGR , indirect expense allocable to processing these improvements, the amount as set forth herein at Page 2 (Part D) . 8. MAP COCKING FEE It is further agreed that the DEVELOPER shall deposit with CITY, prior to execution of this AST, for office checking of final map and field checking of street monuments, in oanpliance with Section 4:1 of Ordinance No. 47 (Revised 12/04/61) of CITY, the amount as set forth herein at Page 2 (Part I) . 9. DEVELOPMENT MAINTENANCE DEPOSIT it is further agreed that the DEVELOPER shall pay to the CITY, prior to execution of this AGREEMENT, the amount set forth herein at Page 2 (Part E) as a development maintenance deposit to insure proper dust control and cleaning during the construction period. The development maintenance deposit may be utilized for repairs of defects and imperfections arising out of or due to faulty workmanship and/or materials appearing in said work during the period until release of the improvement bonds by the CITY. Should the DEVELOPER complete the required repairs to the entire satisfaction of the CITY, the unused balance will be returned after the release of the improvement bonds. 10. STORM M2AINAGE FEE It is further agreed that the DEVELOPER shall deposit with the CITY, prior to execution of this AGREEMENT, a storm drainage charge in connection with said Project in accordance with the its established in Resolution 4422, March 21, 1977, in the amount as set forth herein at Page 2 (Part F) . 11. WATER KUN EXTENSION DEPOSIT The EEVELOPER further agrees to deposit with the C17Y those monies required to comply with "Policy on Water Main Extensions Work and Deposits" dated 9/30/77. The deposit shall be held by the CI'T'Y until said f monies are needed to implement improvements outlined by the Director of Public Works or improvements outlined within the adapted Water Master Plan. The amount shun herein at Part K, Page 2, shall be the full amount due. 12. ONE YEAR POWER COST It is further agreed that the DEVEMPER shall pay to CITY prior to execution of this AGUMNERr, the amount as set forth herein at Page 2 (Part G) , which amount represents the power cost for street lights for one year. -13. THE INSTALLATION OF STREEM. TREES It is further agreed that the DEVELOPER shall, at such time as deemed appropriate by the City Engineer, plant street trees in conformance with the standards of the City of Cupertino. Variety. of tree shall be selected from the City approved list. 14. PARK FEES 'It is further agreed that the DEVELOPER shall pay such fees and/or dedicate such land to the CITY, prior to a wuticn, as is required within "Park Dedication Ordinance" Number 602, 1972, and which is further stipulated under Part J, Page 2 herein. 14-A. PACK FE ADJL• —�?r P! TI-SICNS The value of the land used in establishing the "Park Feel' cut-li-ned herein on Page 2, Part J, requires formal confirmation. The CITY sha11 employ , a qualified local appraiser to provide a market value of the land. , 1he City will calculate the "Park Fee" based on the appraisal. The Developer agrees to pay for any deficie y'within thirty. (30) days and the City agrees to refund overage within thirty (30) days. Adjustments shall be made prior to acceptance of the subdivision improvements. 15. MALtTMEWCE OF FORK It iS fur`..her'agreed that the DEVELOPER shall maintain the Work until all deficiencies in the Work are corrected to conform to the Plans and the City standards and specifications for the Work. The DEVELOPER shall, upon written notice t':ereof, immediately i ately repair or replace, withcut cost or ebligat Lon to the. City of Curertino, and to the entire satisfaction of said C1W, all defects arra imcerfectiens arising out of or due to faulty workmanship and/or materials appearing in said Work. 16. SANI'1'AFZY DISTRICT It is further agreed that the DE=PER shall file with , upon execution of this AME =, a letter frccn the Cupertino Sanitary Districr stating that the DEVELOPER has entered into a sanarate h ZErE Elv'T with the said Dist-ri ct to install sanitary sa.4ers to serve all lots within said Project and stating that a bond to insure full arsi. faithful performance of the construction of the said sanitary sewers and to insure maintenance of said sanitary sewer in conformance with. the provisions as set forth in Paragraph 15 above has been filed. 17. G0VMcd0aM CODE It is further agreed that DEVELOPER shall file with CITY, upon execution of this AGREE14EIM, substantial evidence that all provisions of Section 66493, Article 8, Chapter 4 of the Gwerratierrt Code, pertainirx� to special assessments or bonds, have been oomplied with. 18. CFNZ'RAI, FIRE DISTRICT It is further agreed that the DEVELOPER shall file with the CZ'I'Yy Lenon execution of this AGREEMENT, a letter from the Central Fire Protection District of Santa Clara County, stating that the DEVELOPER has entered into an AaUM= with said District to install fire hydrants to serve said Project and stating that all necessary fees have been deposited with said District to insure installation and five (5) year rental fee of said hydrants. 19. PA=C CAS AND ==C/PA=C FAL It is further agreed that the DEVETOPER shall pay to Pacific Gas and Electric C mpany and/or to PACIFIC FELL Ccapany any arra all fees reqL11red for installation of overhead and/or uxx1erground wiring circuits to all elect pliers within said property and any and' all fees required for undergrcunding as provided .in Ordinance No. 331 of CITY when DEVELOPER is notified by either the City Engineer or the Pacific Gas and Electric Company and/or PACIFIC HELI, C=Many that said fees are due arra payable. 7 20. EASEMENM AND RIGHT-OF-MY It is further agreed that any easement and right-of-way necessary for o anpletion of the Project shall be acquired by. the DEVELOPER at his own cost and expense. It is provided, however, that in the event eminent domain proceedings are required by the CITY for the purpose of securing said easement and right-of-way, that the DEVELOPER shall deposit with CITY a stmt covering the reasonable market value of the land proposed to be taken and to be included in said sum shall be a reasonable allowance for severance damages, if any. It is further provided that in addition thereto, such sums as may be required for legal fees and costs, engineering, and other incidental costs in such reasonable amounts as the CITY may require shall be deposited with the City of Cupertino. 21. HOLD HAMMSS It is further agreed that, cmmw_ncing with the performance of the Work by the DEVELOPER or his contractor and continuing until the completion of . the maintenance of the Work, the DEVELOPER shall hxiennify, hold harmless and defend the CITY front and against any or all loss, cost, expense, damage or liability, or claim thereof, occasioned by or in any way whatsoever arising out of the performance or ronperformance of the Work or the negligence or willful misconduct of the DOPER or the DEVELOPER'S. agents, employes and independent contractors. 22. INSURANCE It is further agreed that: The DEVEMPER shall 'take out, or shall require any contractor engaged to perform the Work to take out, and maintain at all times during the performance and maintenance of the Work called for or required to be done hereunder, a policy .of insurance naming the CITY and members of the City Council of the City of Cupertino, individually and collectively, and the officers, agents and eanployees of the City individually and collectively, as insured. Said separate policy shall provide bodily injury and property damage coverage to the foregoing named CITY and individuals covering all the Work performed by, for, or on behalf of said DEVELOPER. Both bodily injury and ply damage insurance must be on an.occurrence basis; and said policy or policies shall provide that the coverage afforded thereby shall be primary coverage to the full limit of liability stated in the declarations, and if the city, its members of the City Council individually and collectively, and the officers, agents, and employees of the CITY, individually and collectively, have other insurance against the loss covered by said policy or policies, that other insurance shall be excess insurance only. The insurance carrier shall provide proof of their ratings. All ratings shall be a minimum of "Best A-7" in accordance with ABAG policies. A. Each of said- policies of insurance shall provide coverage in the following minimum amounts: For bodily injury, $100,000 each person; $300,000 each occurrence, property damage, $50,000 on account of any one occurrence with an aggregate limit of not less than $200,000. B. The CEVEIDPER shall file with the city Engineer at or prior to the time of execution of this AGEMENT by the DEVELOPER such'evidence of said foregoing policy or policies of insurance as aM11 bo satisfactory to said city Engineer. Each such policy or policies shall bear an endorsement precluding the cancellation or reduction in coverage without giving the city Engineer at - least ten (10) days advance notice thereof. c. In the event that the Project covered herein should be mutually situated in or affect the area of jurisdiction of a separate municipality or political subdivision of the State of California, the policies of insurance required herein and above shall co-name such municipality or political subdivision and the ,provision set forth herein and above for the protection of the CITY shall equally apply to municipality and political subdivision. 23. NAPS AND/OR WROVEbOU PLANS It is further agreed that ,the CITY shall obtain the following map and/or plans at the DEVELOPER'S expense: A. A mylar sepia and seven (7) prints of fully executed parcel map. B. A mylar sepia and ten (10) prints of fully executed improvement plans. C. A direct duplicating silver negative microfilm aperature card of all executed improvement plans and map. The EEVELOPER agrees to pay the CI'T'Y frcm the development maintenance deposit the cost for all prints of plans and map required under Item 23. 24. SUCCESSORS This AGREEMENT shall bind the heirs, administrators, executors, successor, assignee and transferrees of the EEVELOPER. The assignment of this AGFdMWU shall not be made without approval by the City Council of the City of Cupertino. IN WITNESS WHEREOF, CITY has caused its name to be hereunto affixed by its Mayor and City Clerk, oto duly authorized by resolution of the City,Council and said DEVELOPER has hereunto caused his name to be affixed the day and year first above written. CI'T'Y OF CUPERTINO: Approved as to form: - ty Atto 1 Qi ity Clerk OE7ELOPER: a 'Executive Vice President DURA STYLE HOMES, INC. Notary Acknowledgment Required T STATE OF CALIFORNIA On this......26 th.......day of......July.......................in the year SS. .Nineteen..Hundred..E.ight.y..Nine.......................before me, COUNTY OF. Santa,Clara,,,.,,,, ....Tam.i Lynu..Bat r-agl ia...........a Notary Public,State of California, duly licensed and sworn,personally appeared..B....S...Fuk.u.z................ Y. L� ................................................................................. OFFICIAL SEAL personally known to me(or proved to me on the basis of satisfactory evidence) Lo TAMI LYNN BA4AGLIA NOTARY PUBLIC-CALIFORNIA to be the person who executed the within instrument as Exer'..,,Vice,Pr��,i dent SANTA CLARA COUNTY or on behalf of the corporation therein named and acknowledged to me that (bMVr'.nMM,I xpires Aug.31,1990 such corporation executed the within instrument pursuant to its by-laws or a resolution of its board of directors. IN WITNESS WHEREOF I have hereunto set my hand and affixed my official seal in the.State.;. f...a..iforn',Countyof.. Santa.C1ara This document is only a general form which may be proper for use in simple .......................... ...,on the da t forth abo in 's c ificate. transactions and in no way acts,or Is intended to act,as a substitute for the advice of an attorney.The printer does not make any warranty either express or implied as to theof legal validity of any provision or the suitability of these forms in any specific transaction. Notary Public, Stat f California Cowdery's Form No.28—Acknowledgement to Notary Public— August 3 1 , 1990 Comoration(C. C. Secs. 1190-1190.1)—(Rev. 1/83) My commission expires ISSUE DATE(MM/DD/YY) — _1"Protid CERTIFICATE OF INSURANCE PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW l_.......—._............._.__.___...._..---_._..__...__._.........._._,_..._.._----.—.--.._.._.__.._...._._._....__._._.._--.--------._.__...__..._._.---.._.._.__........... .._..__.._____......__...._. i�:l:'si'i fil±::+i i'i-ii:F.`.it ±=;='t : --±::� ti:i_.�=ii;fiC1 COMPANIES AFFORDING COVERAGE l\f 1.1 (.,i f S;'"y C",t!Y 1 COMPANY LETTER A ... [ {: CODE SUB-CODE _......_........_.... _......._...._.._...._.._...._......_......_._..............__.......... --._............... _..._........._............._...._................._.....__. ----_.........-------....__.__.__..----------._._..`.------------ COMPANY B INSURED LETTER I COMPANY `. Lt u Y''r:i n,'t '_,% I. : i1 fi lli:i'> , i. Tt C: LETTER o x COMPANY ... LETTER D _...._.........._............._......_........_..._........_.._.........._..................._ •_)LJ:i:•{? 4 COMPANY t.:i't -•.c1:L,:,�•.y I LETTER E COVERAGESTHIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO POLICY EFFECTIVE POLICY EXPIRATION TYPE OF INSURANCE POLICY NUMBER ALL LIMITS IN TH AND LTR DATE(MM/DD/YY) DATE(MM/DD/YY) j OUS S l GENERAL LIABILITY GENERAL AGGREGATE $2 J `" t ``-�i�..i•.:f�i:�� " .:. .I, , 0 f t•f COMMERCIAL GENERAL LIABILITY ' a (, Er2 1/14/51,? PRODUCTS-COMP/OPS AGGREGATE $; - f,: y*r — �CLAIMS MADE OCCUR.I PERSONAL&ADVERTISING INJURY $a• ;j(j[j OWNER'S&CONTRACTOR'S PROT. r EACH OCCURRENCE $;i• ,,t j{j _ ) --.....- ._.._.._..-._...._...__........_.._..._.__............._.._............._..._.__... _._._...._._ .: .,..,_"J 0 i' f'.•_f i•'f_'. I FIRE DAMAGE(Any one fire) $ .••l0 i 3i_.0 MEDICAL EXPENSE(Any one person) $ 11:5 AUTOMOBILE LIABILITY COMBINED SINGLE. $ f ; ANY AUTO 1 LIMIT I i ALL OWNED AUTOS i BODILY -------i INJURY $ - I SCHEDULED AUTOS I (Per person) .......... ,HIRED AUTOS BODILY i- - I INJURY $ NON-OWNED AUTOS i (Per accident)' GARAGE LIABILITY ± i DAMAGETY $ j - ... - --- ---- _ - ...._....._._.:. .._._._.....__......__...._.._..._.. -....__..__.._.._....---.._.........--... ..._...?._....._......--....__.._....._..................... _...._.._...._.._._.._.._.._.._.._.._.. W -1._......__.._........._...._....... -.._.._........_._��: 1 EXCESS LIABILITY i EACH AGGREGATE ........._...... f OCCURRENCE $ ---j ;OTHER THAN UMBRELLA FORM J i WORKER'S COMPENSATION STATUTORY AND $ (EACH ACCIDENT) f.............t....._......._.................._..........._..._..---.._..__._._.__...___._......___.____._____...__.._...._..__.,............ EMPLOYERS'LIABILITY i $ ( (DISEASE-POLICY LIMIT) $ I (DISEASE-EACH EMPLOYEE) OTHER I i I DESCRIPTION OF OPERATIONS/LOCATIONS/VEHICLES/RESTRICTIONS/SPECIAL ITEMS f1i: f a:"i'1' t.: fi'S1:l1.3:::i ':: (::±F' 'F!fl­* (;::L1'`i' lE:±1.11'i:;:I:L.. (:±i- !'iii::: :L 't''' 1:11 t::t_'•1=`i_:I;:l :Ci' t� , :Li' !e:L'•:':Li:)I_ir:al...i._1: i"I : 0 i:'is 3:C'I-—F:`S . t:;G i:::K,J, : �; i:M P L.t+`r'E i:{. ±::!6 I'i-1}=: +::i 7:'!'`r' l:fi 1 C):C'j:L[:�t_!f=;i...i_.'I` +:L E•:C 0i':,1L. :C iSt =,U1"'.1i:::G± , ia.i=: ` M*1..i_.i...L:i P,IvIl-',N,1. 1"' CERTIFICATE HOLDER, CANCELLATION� � �— SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE h a EXPIRATION DATE THEREOF, THE ISSUING COMPANY WILL ENDEAVOR TO i MAIL ' DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE l.;tAt:::i!'i` t::±.'ii f. t:.i•I `.';:!:.':L ) LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR ±... LIABILITY OF ANY KIND UPON THE COMPANY,ITS AGENTS OR REPRESENTATIVES AL IZED REPRESENTATIVE I ._3,...... ,:....., 9 8 ACORD 25—S(3/88) © 'ACORD CORPORATION 198 TRANRAAMERICA 4DRPORATION GROUP-TRANSAMERICA INSURANCE COMPANY--Continued ..1, 'RA Developed Paid 8 ._.. _-I Ma Reserve 1987 Premiums 4usd Lasses by Kind of ineutrtn4�e(5000) -Loa--Lost Reserve4(51100) Dcvelop• Develop- Kinds of lPireel' kcin• Nei Net Unpaid l.Oss Inc, ell meet to cd to Insurance Ptcrrrituni iurinoe Premiums of Praniumi Lc�ass A To Prmtt• Year Reported to'87� in'87 Un td PHS Ind n Dtveloped Written Assumed written NPW Earned Loan Ex Earned p° B to NPE;t ;;• I -coml Multipail,, 221,945 14,770 190.1)2 13.4 180,487 239,025 $3.8 1982 512.885 689,465 83,600 106,232 88.1 102.7 132,9 ' Other LiaNNy••• 158,811 15,765 61,429 7.5 56,651 117,834 69.9 1983 $42,731 777,868 11819% 159,761 94.8 114.3 . 158,9 1:�� un Auto Liability .. 157,679 14,437 163,659 20.3 165,705 213,759 69.6 1984 634,665 940,136 187,797 257,566 135,3 129,4 1618 Auto Physical . , , 89.201 51037 91,805 1113 94.768 6,477 46,9 1485 838,253 1,021,407 283,454 406,390 48,2 126,9 10.8 `� t•t Workers Comp. .. 81,382 47,773 112,711 13.8 112,895 181,633 121 1986 912.006 1,003,903 414,236 591.806 21,0 112.6 130,6,•. K. HOmeownen. ... 62,405 10,941 71,830 8.8 73,330 31,841 53.9 1987• 907,453 907,433 •,638,201 907,453 92,2 Surety. . ., . . . . 25,296 923 16,127 2.0 1011 1,417 23.1 Inland Marine . . . 14,200• 1,809 13,846 11 . 13.493' 2,913 318 et pp Aircrafl....... 13,218 %2 3,95 0.$ 4,679 31130 $012 „ ••,7 C11iu fire. . . .•.... 12,994 3,184 10,778 1,3 10,894 3.488 44.3 Allied Lines. ,. , , 9,600 1,239 51115 0.6 4,927 1.285 291 llsf w Other A @ H, , , , 7.014 2,252 61126 0.8 5,983 1,166 40J P.� Med Mdpmoice. • 61956 11810 • 938 0.1' 924 1.060 82.5 Rcinsursoct..-•: 59,641 58.988 7.2 67,094 19.803 95.2 r c All Other..,... • 5,725 • 724 51003 0.6 31658 3.361 7ewt... ,.t.. 86&490 181.272 015,143 100,0 812.361 907,453 62,0 Transtuner�ca Corporation Group gr TRANSAMERICA INSURANCE COMPANY REINSURANCE -OF MICHIGAN Automatic reinsurance arrangements are maintained for all product 14,3 West Michigan Avenue lincN.These.arrangements generally.limit the net amount insured on any, g !t_ were CIOsingle risk to 51,000,000 or less.Rcinsuranot arrangements are also main-' Battle Creek, Ml 49016 twined to prottxt the company from multiple!oases in s single catastrophe. Mttil Address:F.U.Box 54256,Los Angeles,CA 90054 The larger amounts recoverable front reinsurers were.519,515,213(Amcri- Tel;213-742.4242 AMB*02508 can Reinsurance Company); $14,172,672(North American Reinsurance Corporation);and$11,587,124(Illinois Workers'Compensation AssignedADMITTED ASSETS($OMI) •=_c OOc Risk).The total amounts recoverable from reinsurers were$38,592,335 on r: Paid losses,5119,031,043 On unpaid losses,$126,266.924 on Incurred but '87% ..16% p Unaffiliated investments Av8•Yield 12131197 12131186r, not reported losses end x77,465.959 on unearned premiums. 0,1 j;� • Gsh&shorl•lernt invest, . . 20.4 106 1,303 c�ce Bonds . . . . . . . . . . ... . . . 8,9 78,517 75,$15'; 87.7 • '79,g', ddir, UNDERWRITING EXPERIENCE Preferred dark . , :: , , . . . . 6.9 300 0.01 Loss Ratios _Exp Ratios Common stock 13.3 1.816 174 2.0-'. �' roxrl NPE Pure lose& Net Other Total Div 'Comb. Mortgage loans 5,3 4 10 0,0 01 pan Year (DW) Loss LAE' LAE Cam Exp Exp Poll Ratio 2A' ,104a Accrued interest . . . . . . . , . _ 2,368 1,928 2.6' 20. • ,pal, 1983 489,437 72.6 11.2 84,0 16.6 19,0 35.5 4.0 123.5 TOtal unaffil,Invest. , , , , , , . 9.9 82,612 79,430 92.4 . 411 1984 581,143 117,1 11.6 98.7 19.0 18.0 37.0 •1.5 134.1 h. 1985 701,814 90.7 14.4 105,2 17.5 17.0 34.5 1.6 141.3 Real cstato,offices . . . . . . . ISS 2,530 2,221 2,8 1986 770,300 69.0 11.6 ' 80.6 17.9 16.8 34.6 1,6 116,8 Premium balanus .•. .•. :, . . ., .2,523 3,769• 2.8 A$ tt: 1987 ULM. 62.0 14,8.. 16,8• 117,3. :.16.0 33.2, 1.8 ,..111.8 Reinsurance funds . . . . . . . . . 1,476 1,288 1.6 'L4 A 1 ss 'Combined lo ,expense A,dividend to policyholders ratio , Receivable from affiliates . . , . 190 7,352 0,2 `7 vc Other assets . . . , . . . . . . 49 562 0.1 '.' pet,( OPERATING COMMENTS Total Waitment) . , . . . , . „ 89,580 94,622. 100.0 ,10 'fret' Underwriting operations of the property/casualty domestic companies rs on a consolidated basis followed the same trend as that of the industry over LIABILITIES,SURPLUS& OTHER FUNDS(5000) r )�Da the last five years.Investment income exceeded undcrwiiting losses in 1987 12131187 12131186- 187% but not in the prior four years.However,capital gains-arid income tax re- Losses&adjustment exp. . . . , 45,678 $3,103 51,0 go covcrics offset those operating losgcs.Additional advances in policyhold- Commissions,taxes,exp. . . . . . 1,164 1,988 1.3• • 14 els' surplus and conditional reserves during the live year period of S460 Uncamed premiums , , . . , . . 13,336 14,270- 14,9 •1 million(197%)represtnted acquisitions and funds contributed by the par- Payable to affiliates . . . , . . . . 1,038 0.0 8,( t►Idplt eat oontpany. Other liabilities 661 $01, 0,7 OS 'peo o' On a consolidated basis,investments in affiliates equalled 31%of policy- Conditional reserve funds , . . 111 226 0.1 home holders'surplus funds.Due to the large amount of.affiliated investments Total liabilities(stilt) . . . . :. 60.950 71,126 .. 68.0 and b the group's leverage and Ii til ' d usted for affiliated hold- Capital paid up . . . . . . . . . . 6,500 6,500. 7.3 l� de Ings,fall outside.i norms. Assigned surplus . . , , . . . . . -3,244 •3,231 •3.6 dor, Unassigned surplus , , '. . . , 25,374 20,227 28.3,, At E BESTS RATING Policyhdrs'burp.(stmt) . , r.. 28,630 23,496720 9", Based on our a �-Rl-p-bsltion and TOW . . . 94,622 •100.0' c: operating performance of the insurer and Its pe prorty/casualty subsidiar- yTra: I",we assign a Best's Rating of A(Excellent)and ti'iLtanclal EST sFze category ` naINVh%ENT DATA :u of gess$. or an"Explation of Hest'!:Rating System"flee Preface. by W %Distribution of Bonds by Maturity COMPARATIVE MANCIAL AND OPERATING EXHIBIT Interest Total - --Yeats - Y 4xxmp® All figures except ratios In thousintls,., " income Bonds 0•( 1.3 3 S S l0 ., IS 111-20.. 7D; US Government. 0.8 2.4 2.4 FINANCIAL(5000) - t' •'� tory:i US statelmunidpal, 94.8 94.6•• 0.0 1,9 14.1 15.0 23.1 .W d , Direct Net Net Total Policy Premiums ,., Prtaoiumi Operating Admitted holders Best's Other unatfilialed., 4.4 3.0 .. . .. 3.0 ... ... .. Year ' Written Written t Income Assets Surplus Ratios TOW....., 100.0 100.0„ .. •0.0 119, 19.5 15.0•;23.1•405 Dk 1983' 445,282 , 493,576 25,282. 1,065.575 , 248,043 A+ 111t 1984 •'571,674' 631,732 -40.561',' 1,189,628 . '211.026 B+ SUMMARY OF OPERATIONS 1987(5000) ~'%�"' S5 1983' 662,141- " 115,459''" -19,241 1.585,132 384,396 B+ s 1986 775,372 792,449 1,415 1.722.807 399,453 A s '.'- Statement of Income ' Funds Provided from Optrsll4tl 1987 866,490 815,143 44.099 2,064,614 684.873 A a Premiums earned....:•.... 28,418 Prcruiurns collected Profitability Tests-•-- - L4vae e Tests-- -LiquidityTeets- �s�incurred .. 7,155 I ossea paid.,.,..:....e NOD- Return' NPW 11Invest- Loss exp•inourrcd .1,593 Loss expenses paid .•..7 ..Combined to on• '. -to Na Gross----Current meat• Und,exp.incurred!•... ' 8,104 Underwr,exp.paid "Comp Year Rstio NPE PHS PHS Liwerage Leverage Liquidity Leverage Other deduct.&in¢..t'.. •22 Other deduct.&inn,:.::�._• �ltlPe 1983 123,5 5.2 ' 28.8 2.0 5.3 5.6 64.5 11.0 Div,to,policyhldrs...... 161 Div,to policyhldrs.,-' . -" biiity 1984 IMA -1.0 ,., 3.0 7.6 8.1 50.9 19.3 Net underwitg-inwine .. 10,827 Funds from underwrtg• .., 198$ 141.3 .2,7 •29.6 1.9 4.9 5.3 93.0 39.3 lavestment income .,. 9014InvOBtmetti income ..,•..;' "^' 1986 116.8 0,2 : 11.1 ', 2.0 5.2'• 6.1 90.5 ' 3,2' ,,. , ...` tl 1987 111.11• 5.4 1.5 1.2 3.2 3.9• ' 86.6 4,5•' Investment expturses.•. 102. Investmwl expenses..-•aI 1987 Bat's AdjustedTesti',•..:..,.. 2 5 '5.7 617'. 108.3 ' ' 9.1 (Income taxes.......... 3L51., .Income taxes ._....-14 1: Net operating income.... 14,498 funds from opera00ai:++: 2394 wt sT'c Tetcne e„trr. t7cnnoTc_vnnnFor'v-r'4 +••