HomeMy WebLinkAboutBUDGET & FINANCE AGENDA 12-03-07
Central Contra Costa Sanitary District
5019 Imlloff Place Maltlnez, CA 94553-4392 (925) 228-9500 . wwwcentralsan.org
BUDGET AND FINANCE COMMITTEE
Chair McGill
Member Nejedly
Tuesday, December 3, 2007
3:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
1. CALL MEETING TO ORDER
2. PUBLIC COMMENTS
3. OLD BUSINESS
4. CLAIMS MANAGEMENT
a. Review open claims or potential claims.
5. REPORTS/ANNOUNCEMENTS
*a. GASB 45 White Paper and related actuarial report.
b. Discussion of role of Budget and Finance Committee in the 10-Year Plan.
*c. Report on Job 6421, Amberwood Lane, Walnut Creek.
6. REVIEW EXPENDITURES
7. CLOSED SESSION - significant exposure to litigation pursuant to Government
Code Section 54956.9(a) - one potential case.
8. ADJOURNMENT
*
Attachment
A
~, Recycled Paper
50..\
Central Contra Costa Sanitary District
December 14, 2007
TO:
VIA:
BOARD OF DIRECTORS
JAMES KELLY, GENERAL MANAGER
RANDALL MUSGRAVES, DIRECTOR OF ADMINISTRATION ttnt/l
DEBBIE RATCLIFF, CONTROLLER ~
SUBJECT: GASB 45 REPORTING REQUIREMENTS FOR OTHER POST
EMPLOYMENT BENEFITS
FROM:
The District is required by Governmental Accounting Standards Board (GASB)
Statements 43 and 45 to calculate and report post retirement benefit obligations, which
include mainly retiree medical and dental benefits. The reporting requirements must be
included in the District's audited financial statements by December 15, 2007. Also, an
actuarial study to determine the District's unfunded liability must be done every two
years. Both of these requirements have been met.
BackQround
These two GASB statements were written to make transparent the future obligation that
governmental entities are incurring for current employees (and retirees) for future
benefits. Most governmental agencies have been addressing post-employment benefits
on a pay-as-you-go basis. In 2006 and again in 2007, the District Board authorized staff
through the approval and adoption of the annual budget, to set aside $5 million towards
the unfunded liability associated with future post employment benefits. This $5 million
includes approximately $2 million for current retiree benefit costs, and $3 million toward
the unfunded liability of future benefit costs. These funds, however, are not formally
earmarked.
The actuarial firm of Aon was used for a second time to calculate the District's unfunded
liability associated with post-retirement benefits. The data and assumptions used were
consistent with those used by the Contra Costa County Employee's Retirement
Association. Also, the District's actual experience on employee retention and retirement
statistics was used in the actuarial calculation. Two different interest rates, 5% and 8%,
were used to calculate the unfunded liability as well as the annual required contribution
to pay down the unfunded liability over a thirty-year period. The 5% rate represents
paying the current retiree medical costs out of the general funds of the District which are
primarily invested in LAIF, and the 8% represents the more moderately aggressive
H:\White Paper-GASB 45.doc
return based on setting up a trust and investing in a broader choice of investments. The
District's current unfunded liability based on current post-retirement benefits is
approximately $68.5 million (5% discount rate) and $48 million (8% discount rate). The
annual required contribution to meet the District's unfunded liability over thirty years
would be $6.2 million at 5% and $5.2 million at 8%.
Fundina Options
There are three funding options associated with GASB 43 and 45. The District could
choose to:
1. Establish an irrevocable trust and fund a portion or all of the annual required
contribution.
2. Continue to pay-as-you-go and carry the annual unfunded liability on the balance
sheet.
3. Set up a dedicated reserve to fund a portion or all of the annual required contribution
(this would still be considered unfunded per GASB rules).
Impacts of Irrevocable Trust Option
- Allows for more aggressive investments and potentially a higher rate of return
Higher rate of return would reduce the outstanding unfunded liability
Protects funds from outside creditors and loss should consolidation with the
County occur
Full contributions are not required each year and are determined by the Board
through the annual budget process
Bond rating agencies look more favorably at districts that have set aside funds
Funds can only be used for post-retirement benefit payments (unless health care
becomes nationalized)
Impacts of Pav-as-you-ao Option
Highest long-term cost
District has control of funds and can use for other purposes
Not as secure from an employee perspective
Unfunded liability is significantly higher due to lower rate of return
Must carry unfunded liability on the Balance Sheet per GASB 45
- Bond rating agencies may look less favorably at Districts with growing liabilities
Impacts of Dedicated Reserve
- Same bullet points as pay-as-you-go except:
Higher long-term cost than a trust
- Would show Bond rating agencies that the District is making a good faith effort to
address post retirement benefits
- Would increase the District's reserves
H:\White Paper-GASB 45.doc
Recommendation
Staff recommends establishing an irrevocable trust to fund annual GASB 45
contributions each year. Cropper Accountancy Corporation, the District's external
auditors, also recommended that the District consider establishing a trust to fund post
retirement benefits. The annual contribution can vary year to year to accommodate
increases/decreases in operating expenses or capital expenditures.
The actuarial report is attached for the Board's review. This 'White Paper" and the
actuarial report will be included in the binder for the January 2008 Board Financial
Planning and Policy Workshop. Recommendations will be presented to the Board for
discussion as part of the rate setting process.
H:\White Paper-GASB 45.doc
Central Contra Costa Sanitary District
Postemployment Health Benefits
Actuarial Valuation Report
Draft
Valuation Date:
July 1, 2007
Date of Report:
November 6, 2007
Daniel R..McMonagle, ASA, MAAA
1211 SW Fifth A venue, Suite 600
Portland, Oregon 97204
Phone (503) 228-7337
Fax (503) 228-7447
Employ"", Benofits Consulting I .Af::JItI
Table of Contents
1. GASB Statement for Employers on Post Employment Benefits Other Than Pensions 1
2. Summary of Actuarial Methodology .................................................................................. 3
3. Actuarial Certification.......................................................................................................... 5
4. Summary of Changes in Liability ....................................................................................... 7
5. Liabi I ities and Disclosure.................................................................................................... 8
Sensitivity Analysis - Entry Age Normal................................................................................ 9
Determination of Annual Required Contribution - Entry Age Normal.................................. 10
'6. Demograph ics .................................................................................................................... 11
A. Actives and Retirees by Medical Plan at June 30, 2007: ..........................................11
B. Population Age Demographics at June 30, 2007:.....................................................12
7. Actuarial Assumptions and Valuation Method ...............................................................13
A. Actuarial Assumptions.............................................................................................. 13
B. Other Considerations................................................................................................ 20
C. Valuation Method...................................................................................................... 20
D. Discount Rate (Investment Return Assumption)....................................................... 20
E. Benefits. .... .... ................ ...... ........ ...... .... .... ...... ...... .... .......... .... ...... ............ .... .... ... .....21
Central Contra Costa' Sanitary District
Post Retirement Medical Benefits
Page i
Employee Benefits Consulting I ~
1. GASB Statement for Employers on Post Employment
Benefits Other Than Pensions
In 2004, the Governmental Accounting Standards Board (GASB) released two financial accounting
standards that will change how public sector employers will account for their post employment
benefits (other than pensions). These "other post employment benefits" (or OPEB) are typically
retiree health benefits (medical, dental or vision).
In the past, the OPEB cost was accounted for on a pay-as-you-go (cash) basis. However, GASB
believes the cost of these future post employment benefits should be recognized as part of the
compensation that employees receive each year. The purpose of the two new standards (No. 43 and
No. 45) was to define the financial reporting requirements that governmental employers must follow
if they have OPEB plans.
The following outline summarizes some of the key requirements of the new GASB statements on
OPEB plans:
Statement No. 43 was released in April of 2004 and No. 45 was released in June of 2004
GASB 43 generally applies if there is a separate trust or fund used to accumulate assets for
the OPEB plan and to pay benefits (i.e., to the OPEB assets under the stewardship of the
OPEB sponsor(s)). Since the Central Contra Costa Sanitary District ("Central San") OPEB
plan is currently unfunded, GASB 43 does not currently apply.
The GASB 45 effective date depends whether Central San was a Phase 1, 2 or 3 government
for the implementation of GASB 34, which was dependent on the total annual revenues for
the first fiscal year ending after June 15, 1999. As a Phase II employer, the District is
required to implement in the fiscal year beginning after December 15,2007.
"Implicit rate subsidies" must be included in the District's OPEB plan. An "implicit
subsidy" exists when retiree premiums for post-retirement medical coverage are based on
"blended" active employee rates. By "blended" we mean that the experience of the retirees is
included with the actives' experience for underwriting and rating purposes. An implicit
subsidy exists due to this blending, even if retirees self-pay the blended-premium for
benefits. The District provides an implicit subsidy for pre-65 retirees since the retirees are
pooled with active employees for health plan rating purposes.
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
Page 1
Employee Benefits Consulting
I.AoN
1. GASB Statement for Employers on Post Employment
Benefits Other Than Pensions (cont.)
Pay-as-you-go accounting and disclosure will no longer be acceptable. However, GASB 45
does not require that Central San pre-fund its OPEB liabilities.
The OPEB cost must be recognized as a form of deferred compensation (like pensions).
GASB believes that the cost of the OPEB plans is part of the cost of providing today's public
servIces.
Must determine actuarial present value of future benefits. This is done by having the OPEB
plan's actuary use economic and demographic assumptions to project the future benefit
payments from the OPEB plan. These future cash flows are then discounted to their actuarial
present value.
Must attribute actuarial present value of future benefits for active employees to their
employment service. GASB believes that these post employment benefits are part of the
compensation that employees earn while they are working for the governmental employer.
Assumed discount rate (i.e. interest rates applied to projected liabilities) must be based on the
source of funds used to pay retiree health or welfare benefits. For this study we used 5.0%
and 8.0% discount rates:
- 5.0% represents the expected investment return on Central San's general assets; and
- 8.0% represents the expected long-term investment return on a mix of equities and bonds
for an OPEB plan that is pre-funded.
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
Page 2
Employee Benf3lits Consulting I .Ac::JItI
2. Summary of Actuarial Methodology
The liability for any benefit plan can be split into liability based on past and future service. The
annual cost of the plan will vary based on I) the actuarial cost method used to split liability between
past and future service, and 2) the period over which unfunded liabilities are funded. The following
definitions describe the components of liability:
Present Value of Total Benefits (PVB)
The total present value of future benefits, based on certain actuarial assumptions. The PVB is a
measure of total liability or obligation. Essentially, the PVB is the value (on the valuation date) of
the promise to retirees and current employees.
Actuarial Accrued Liability (AAL)
The liability or obligation for benefits to be paid in the future earned through the valuation date,
based on certain actuarial assumptions and the actuarial cost method.
Normal Cost
The value of benefits allocated to the year based on the actuarial cost method and assumptions.
Present Value of Future Normal Costs
The present value today of all future normal costs, which is the liability for benefits to be earned by
current employees over their future service. The present value of future normal costs is equal to the
difference between the PVB and the AAL.
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
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Employee Benofits Consulting I .~
2. Summary of Actuarial Methodology (cont.)
The following graph illustrates a typical PVB, with the lightly shaded area representing the AAL:
Nonnal Cost
Future Nonnal
Cos ts
AAL
Annual Required Contribution ("ARC")
Under GASB, the basic annual cost of a plan is termed the Annual Required Contribution or "ARC."
Under the Entry Age Normal Cost method, the ARC consists of two components - the Normal Cost
and the amortization of Unfunded Actuarial Accrued Liability, or UAAL. The amortization of
UAAL will vary based on the amortization period and method used, as well as the actuarial cost
method under which it was initially established.
Balance Sheet Liability
The Annual Required Contribution and the actual contributions made to the plan (e.g., employer-
paid benefit payments) do not necessarily have to be equal. GASB does not require OPEB benefits
to be pre-funded. However, the GASB requirements will track the funded status of the plan. Any
differences between the ARC and actual contributions made will be noted as a liability (or "Net
OPEB Obligation") or asset ("Net OPEB Asset") on the District's balance sheet.
Any excess of the ARC over the actual contribution will be recorded as a liability (Net OPEB
Obligation) on the balance sheet. Interest on this obligation will be added to the ARC in subsequent
years.
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
Page 4
Employee Benefits Consulting I .~
3. Actuarial Certification
This report presents the results of the actuarial valuation for the Central Contra Costa Sanitary
District Post Employment Health Benefits as of July I, 2007 for development of the Annual
Required Contribution and disclosure items under the Governmental Accounting Standards Board
(GASB) Statement 45.
This report was prepared using generally accepted actuarial practices and methods. The actuarial
assumptions used in the calculations are individually reasonable and reasonable in aggregate.
Aon Consulting did not audit the employee data and financial information used in this valuation. On
the basis of our review of this data, we believe that the information is sufficiently complete and
reliable, and that it is appropriate for the purposes intended.
Actuarial computations under GASB 45 are for purposes of fulfilling employer accounting
requirements. The calculations reported herein have been made on a basis consistent with our
understanding of these accounting standards. Determinations for purposes other than meeting
employer financial accounting requirements may be different from these results. As required by
GASB 45, this valuation assumes this will be an ongoing plan. However, this assumption does not
imply any obligation by the employer to continue the plan.
This report is intended for the sole use of the Central Contra Costa Sanitary District. It is intended
only to supply information for the District to comply with the stated purpose of the report and may
not be appropriate for other business purposes. Reliance on information contained in this report by
anyone for other than the intended purposes, puts the relying entity at risk of being misled because of
confusion or failure to understand applicable assumptions, methodologies, or limitations of the
report's conclusions. Accordingly, no person or entity, including the District should base any
representations or warranties in any business agreement on any statements or conclusions contained
in this report without the written consent of Aon Consulting.
The actuaries whose signatures appear below are Members of the American Academy of Actuaries
and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial
opinion contained herein. The actuaries are available to answer any questions with regard to the
matters enumerated in this report.
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
Page 5
Employee Benofits Consulting I ~
3. Actuarial Certification (cant.)
Aon's relationship with the Plan and the Plan Sponsor is strictly professional. There are no aspects
of the relationship that may impair or appear to impair the objectivity of our work.
Respectfully Submitted,
Aon Consulting
Daniel R. McMonagle, ASA, MAAA
1211 SW Fifth Avenue, Suite 600
Portland, Oregon 97204
(503) 306-2868
Brian Pieper, ASA, MAAA
199 Fremont Street, 14th Floor
San Francisco, California 94105
(415) 486-7692
Anil Kochhar, ASA, MAAA
199 Fremont Street, 14th Floor
San Francisco, California 94105
(415) 486-7122
November 6, 2007
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
Page 6
4. Summary of Changes in Liability
Employee Benefits Consulting I~
For the current valuation, we are using 5% for the "unfunded scenario" and 8% for the "funded
scenario", compared to discount rates of3% and 5% for the unfunded and funded scenarios
respectively at the prior valuation. These changes in discount rates give the appearance that
liabilities have decreased when looking at the "funded scenario" or "unfunded scenario" on their
own. In actuality, plan liabilities have increased in the two years since the prior valuation, when
compared on a common discount rate basis. Following is a summary of the main reasons for the
change in liability:
Normal growth - The liabilities of the Plan increase over time due to Normal Cost (current
benefit accruals) and interest cost (benefits are closer to being paid). The Actuarial Accrued
Liability as of July I, 2005 was expected to increase by $4.9 million at a 5% discount rate
due to this normal growth.
Recognition of the "implicit rate subsidy" - For the July 1, 2007 valuation the average active
and retiree "blended" claims costs are age graded to reflect the higher costs of retiree medical
coverage versus active medical coverage for retirees under age 65. The inclusion of the
implicit rate subsidy increased the total liability by 13% - 15%.
Other (Gains) & Losses - Demographic changes (new hires, terminations, deaths) and
economic changes (changes in trends and premium amounts, etc.) also affect the liability.
Greater than expected increases in Kaiser premiums were one significant factor that
contributed to an overall increase ("loss") in plan liability.
Discount Rate
Valuation Result at July 1, 2005
Normal Growth
Inclusion of the Implicit Rate Subsidy
Other Gains and Losses (demographic, economic)
Valuation Result at July 1, 2007
Actuarial
Accrued
Liability
5.0%
$53,400,000
$4,900,000
$7,200,000
$2,900,000
$68,400,000
* Assumes 30-year amortization of Unfunded Actuarial Accrued Liability
Annual
Required
Contribution*
5.0%
$5,000,000
$400,000
$580,000
$220,000
$6,200,000
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
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Employ"", Benefits Consulting I ~
5. Liabilities and Disclosure
Discount Rate 5.00% 8.00%
Employer Present Value of Benefits
Active $46,890,619 $27,392,546
Retired $36,508.707 $27.174.594
Total $83,399,326 $54,567,140
Employer Actuarial Accrued Liability
Active $31,939,249 $20,819,317
Retired $36.508.707 $27.174.594
Total $68,447,956 $47,993,911
Normal Cost $1,687,467 $872,152
Benefit Payments - Employer Subsidy
Active (Expected Retirees) $148,078 $148,078
Retired $2.129.738 $2.129.738
Total $2,277,816 $2,277,816
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
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Employee Benefits Consulting 1,Ar:::JItI
5. Liabilities and Disclosure (cant.)
Sensitivity Analysis - Entry Age Normal
5.00% 5.00%
Base Trend Trend + 1% Trend -1%
Active Participants $31,939,249 $38,305,108 $26,902,904
Retired Participants $36,508.707 $40.398,048 $33,202.989
Total AAL $68,447,956 $78,703,156 $60,105,893
Normal Cost $1,687,467 $2,067,672 $1,394,412
8.00% 8.00%
Base Trend Trend + 1% Trend -1%
Active Participants $20,819,317 $24,246,227 $18,020,361
Retired Participants $27,174,594 $29,528.577 $25.129,871
Total AAL $47,993,911 $53,774,804 $43,150,232
Normal Cost $872,152 $1,040,038 $738,681
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
Page 9
Employ"" Bendits Consulting I ,At:::JItI
5. Liabilities and Disclosure (cant.)
Determination of Annual Required Contribution - Entry Age Normal
Discount Rate 5.00% 8.00%
Normal Cost with Interest $1,771,840 $941,924
Unfunded ML $68,447,956 $47,993,911
Amortization Period 30.00 30.00
Amortization Amount with Interest $4,452,638 $4,263,176
Annual Required Contribution $6,224,478 $5,205,100
Interest on Net OPEB Obligation $0 $0
Adjustment to Annual Required Contribution $0 $0
Annual OPES Cost (Expense) $6,224,478 $5,205,100
Benefit Payments/Expected Contribution $2,277,816 $5,205,100
Increase in Net OPEB Obligation $3,946,662 $0
Net OPEB Obligation-Beginning of the Year $0 $0
Net OPEB Obligation-End of Year $3,946,662 $0
Annual Required Contribution with Alternative Amortization Periods
10-Year Amortization
Amortization Amount $8,864,323 $7,152,508
Annual Required Contribution $10,636,163 $8,094,432
20-Year Amortization
Amortization Amount $5,492,441 $4,888,286
Annual Required Contribution $7,264,281 $5,830,210
UAAL as a
Actuarial Entry Age Percentage of
Actuarial Value of Normal Covered Covered
Valuation Assets AAL UAAL Funded Ratio Payroll Payroll
Date (a) (b) (b - a) (a I b) (c) ((b - a) I c)
7/1/2007 $ 0 $68,447,956 $68,447,956 0% $22,648,230 302%
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
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Employee Benefits Consulting I .~
6. Demographics
A. Actives and Retirees by Medical Plan at June 30, 2007:
Medical Plan Active Retiree*
Kaiser 147 105
Health Net (HMO) 66 14
Health Net (PPO) 30 51
Opt-Out 17 4
Total 260 174
Dental Plan Active Retiree
Delta Dental 260 171
Opt-Out 0 3
Total 260 174
. Also includes spouses of deceased retirees who remain eligible for benefits the plan.
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
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Employee Benefits Consulting I ,Ac::JItI
6. Demographies (cont.)
B. Population Age Demographics at June 30, 2007:
Actives
Retirees
Number
Average Attained Age
Average Service
260
47.28
12.4
174
67.69
21.0
Population
80
o
60
40
20
III Covered Actives
.. Retirees and Beneficiaries
Years of Employment
Age Under 1 1 to4 5 to 9 10 to 14 15 to 19 20 to 24 25 to 29 30 and up Total
20 - 24 0 0 0 0 0 0 2
25 - 29 3 7 4 0 0 0 0 0 14
30- 34 2 8 5 0 0 0 0 0 15
35 - 39 4 7 11 0 0 0 24
40 - 44 2 6 14 3 10 0 0 36
45 - 49 2 6 14 5 14 4 3 49
50- 54 9 15 2 12 11 18 4 72
55 - 59 4 7 2 5 6 12 38
60 - 64 3 0 3 0 0 9
65 - 69 0 0 0 0 0 0 0 0 0
70+ 0 0 0 0 0 0 0
Total 17 51 71 12 46 23 33 7 260
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
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ErnploYbe 8en,jfits Consulting I ~
7. Actuarial Assumptions and Valuation Method
A. Actuarial Assumptions
(1) Participation
It is assumed that 100% of current actives will elect coverage at retirement, if they are
currently enrolled. It is assumed that active participants will elect the medical coverage they
are currently enrolled in at retirement.
(2) Pre- Retirement and Post Retirement Mortality
Age Male Female
25 0.07% 0.03%
30 0.08% 0.04%
35 0.09% 0.05%
40 0.12% 0.08%
45 0.17% 0.10%
50 0.29% 0.16%
55 0.49% 0.26%
60 0.90% 0.51%
65 1.62% 0.97%
* All pre- retirement deaths are assumed to be non- service connected.
(3) Age of Spouse
Active spouse dates of birth are used when available. When unavailable, it is assumed that
female spouses are 3 years younger than male spouses.
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
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Employee Benefits Ctlf1sulting
IAoN
7. Actuarial Assumptions and Valuation Method (cont.)
(4) Service Retirement
Rates vary by age and tier. See tables below.
Age Tier I Tier II
50 3% 3%
51 3% 3%
52 5% 5%
53 10% 5%
54 15% 10%
55 20% 10%
56 20% 10%
57 25% 10%
58 25% 10%
59 25% 10%
60 25% 15%
61 30% 15%
62 30% 25%
63 30% 25%
64 30% 30%
65 35% 35%
66 35% 35%
67 35% 35%
68 35% 35%
69 35% 35%
70 100% 100%
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
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Employee Benefits Consulting I ..Af::JItI
7. Actuarial Assumptions and Valuation Method (cont.)
(5) Termination Rates
Sample termination rates for all participants with less than 5 years of service are shown in the
following table:
o
1
2
3
4
General Rate
13.00%
7.00%
6.00%
5.00%
4.00%
Service
Sample ultimate termination rates for all participants with 5 or more years of service* are
shown in the following table:
Age Rate
20 4.00%
25 4.00%
30 4.00%
35 4.00%
40 3.84%
45 3.21 %
50 1.52%
55 0.33%
60 0.00%
* No withdrawal is assumed after a member is eligible for retirement.
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
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Employee Benofits Consulting
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7. Actuarial Assumptions and Valuation Method (cont.)
(6) Morbidity Rates
Central Contra Costa Sanitary District Health Plan Rates
Age-weighted claims, which generate the expected average annual claim for Central San's
health plan, were estimated by multiplying the plan premiums by the following morbidity
rates. These morbidity rates were calculated using a standard age-graded morbidity table
with adjustments to reflect Central San's current active and retiree demographics:
Pre-65 Morbidity Rates
Participant Spouse
Age Male Female Male Female
50 116.60% 85.88% 134.66% 99.19%
51 120.45% 88.71% 139.11% 102.46%
52 124.42% 91.64% 143.70% 105.84%
53 128.53% 94.67% 148.44% 109.33%
54 132.77% 97.79% 153.34% 112.94%
55 137.15% 101.02% 158.40% 116.67%
56 142.09% 104.65% 164.10% 120.87%
57 147.20% 108.42% 170.01% 125.22%
58 152.50% 112.32% 176.13% 129.73%
59 157.99% 116.37% 182.47% 134.40%
60 163.68% 120.56% 189.04% 139.23%
61 170.56% 125.62% 196.98% 145.08%
62 177.72% 130.90% 205.25% 151.18%
63 185.18% 136.39% 213.87% 157.53%
64 192.96% 142.12% 222.86% 164.14%
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
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Employee Benefits Consulting I ..Ac::JItI
7. Actuarial Assumptions and Valuation Method (cont.)
(6) Morbidity Rates (cont.)
Post-65 Morbidity Rates
Participant Spouse
Age Male Female Male Female
65 86.02% 63.36% 104.60% 77.04 %
66 88.61 % 65.26% 107.74% 79.35%
67 91.26% 67.22% 110.97% 81.73%
68 94.00% 64.24% 114.30% 84.19%
69 96.82% 71.31% 117.73% 86.71 %
70 99.73% 73.45% 121.26% 89.31%
71 102.22% 75.29% 124.29% 91.55%
72 104.77% 77.17% 127.40% 93.83%
73 107.39% 79.10% 130.59% 96.18%
74 110.08% 81.08% 133.85% 98.59%
75 112.83% 83.10% 137.20% 101.05%
76 115.09% 84.77% 139.94% 103.07%
77 117 .39% 86.46% 142.74% 105.13%
78 119.74% 88.19% 145.59% 107.23%
79 122.13% 89.95% 148:51% 109.38%
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
Page 17
Employee Bl,mefits Consulting I ~
7. Actuarial Assumptions and Valuation Method (cont.)
(7) Retiree Dental and Vision
In accordance with common actuarial practice, the retiree dental and vision claim costs
were not adjusted for age or gender.
(8) 2007-2008 Retiree Blended Premium Rates
Heath Net
Health Net Seniority Plus
Retiree &
Retiree Spouse/Partner Retiree & Family
$499.29 $998.57 $1,447.94
$501.92 $1,003.84 $,1420.44
$723.29 $1,448.67 $2,097.17
Retiree & Retiree & Non
Retiree Only Medicare Spouse Medicare Spouse
$340.54 $681.07
$628.20 $1,256.40 $1,130.10
$338.12 $676.24 $840.04
$469.36 $938.72
$219.80 $439.60
Retiree &
Retiree Spouse/Partner Retiree & Family
$70.47 $122.84 $189.57
Medical Plan
HMO
Health Net
Kaiser
PPO
Health Net
Medicare Supplemental Rates after a
Reflection of Medicare Part D
HMO
Health Net
Kaiser Cost Plan
Kaiser Senior Advantage
PPO
Dental
Delta Dental
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
Page 18
Employee Ben,Aits Consulting I ~
7. Actuarial Assumptions and Valuation Method (cont.)
(9) Employee/Retiree Blended Premium Trend Rates
Plan Year Health Delta Medicare
Ending Pre-65 Post-65 Dental Part B
6/30/2008 11.00% 11.00% 4.00% 4.00%
6/30/2009 10.00% 10.00% 4.00% 4.00%
6/30/2010 9.00% 9.00% 4.00% 4.00%
6/30/2011 8.00% 8.00% 4.00% 4.00%
6/30/2012 7.00% 7.00% 4.00% 4.00%
6/30/2013 6.00% 6.00% 4.00% 4.00%
6/30/2014 5.00% 5.00% 4.00% 4.00%
6/30/2015+ 4.00% 4.00% 4.00% 4.00%
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
Page 19
Employee Benefits Consulting I .~
7. Actuarial Assumptions and Valuation Method (cont.)
B. Other Considerations
Active employees that currently have spousal coverage are assumed to remain married and
elect the same plan and coverage after retirement.
This actuarial valuation is based on census data as of June 30, 2007.
C. Valuation Method
For the June 30, 2007 actuarial valuation, we have prepared results using the Entry Age
Normal Method. The total liability for all benefits is the Actuarial Present Value of Projected
Benefits. Under the Entry Age Normal Method, the Actuarial Accrued Liability (AAL) for
active members is calculated as the portion of the Actuarial Present Value of projected benefits
allocated to prior years on a level basis over service. The cost for the current fiscal year is
allocated based on service and is called the Normal Cost. The AAL for members currently
receiving benefits, for active members beyond the assumed final retirement age, and for
members entitled to deferred benefits, is equal to the present value of the benefits expected to
be paid. No normal costs are applicable for these participants.
The excess of the total AAL over the actuarial value of plan assets is called the unfunded AAL.
Funding requirements are determined by adding the norm~l cost and an amortization of the
unfunded AAL. The amortization of unfunded AAL is over a period of 30 years as a level
dollar amount. All changes in liability due to plan amendments, changes in actuarial
assumptions, or changes in actuarial methodology are amortized separately. In addition, all
gains or losses are tracked and an unamortized gain or loss may be amortized each year.
D. Discount Rate (Investment Return Assumption)
5.00% - This is based on the assumption that benefits will be paid from general Central Contra
Costa Sanitary District assets and not invested in a separate trust.
8.00% - For illustration purposes, this is an example of an investment return assuming pre-
funded contributions towards Central Contra Costa Sanitary District Postretirement Medical
Benefits set aside in a trust with a mix of asset classes.
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
Page 20
Employee Benefits Consulting I .Af:J1iI
8. Summary of Plan Provisions
E. Benefits
Tier I
Employees hired by the District prior to May 1, 1985 shall be covered by medical, dental, and
reduced life insurance plans (one-half of the life insurance provided at time of retirement for
employees hired before May 1, 1985) when they retire from District employment provided that
they meet the "Rule of 65." Under the "Rule of 65" an employee's age plus years of service
with the District at the time of retirement must total 65, with a minimum requirement that the
employee must be at least age 50 and have at least ten (10) years of continuous service with the
District at the time of retirement. Eligible employees' qualified dependents (as defined by the
plan provider) who were covered as dependents at the time of retirement also shall be covered
by medical and dental plans.
Tier II
Employees hired after May 1, 1985 but before April 19, 2003 shall be covered by medical and
dental plans when they retire from District employment provided that they meet the "Rule of
65." Under the "Rule of 65" an employee's age plus years of service with the District at the
time of retirement must total 65, with a minimum requirement that the employee must be at
least age 50 and have at least ten (10) years of continuous service with the District at time of
retirement.
Employees hired after April 18, 2003, who are part of the MSCG & management groups (MS
& MG) and have reached age 55 and have a minimum often (10) years of continuous service
with the District at the time of retirement shall be covered by medical and dental plans when
they retire from District employment. Eligibility requirements for employees hired after April
18, 2003 that are in the general group are still based on the "Rule of 65" requirements.
The district shall only pay for the full cost of an eligible retired employee's medical and dental
plan premiums until the retired employee's 65th birthday. At age 65, the retired employee shall
pay the District fifty percent (50%) of the cost for the employee's medical and dental coverage.
Eligible employees shall be provided with reduced life insurance ($10,000) when they retire
from District employment. Eligible employee's qualified dependents (as defined by the plan
provider) who were covered as dependents at the time of retirement also shall be covered by
medical and dental plans with the exception that the District shall only pay for the full cost of
an eligible dependent's medical and dental plan premiums until the eligible dependent's 65th
birthday. At age 65, the eligible dependent shall pay the District fifty percent (50%) of the cost
for the eligible dependent's medical and dental coverage.
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
Page 21
Employee Bcn(;fits Consulting I ,AcJItI
8. Summary of Plan Provisions (cont.)
Common to All Retirees
At the time of an eligible employee's retirement, all qualified dependents (as defined by the
plan provider) who already were dependents at the time of retirement, shall continue to be
covered by the District's medical and dental plans in accordance with the Tier I and Tier II
benefits as stated above. The district shall have no obligation to pay for coverage for more
than two-party (retiree plus one) coverage for any new and different dependent added after the
date of retirement age (50 years).
The program for dependents of a deceased employee shall provide for health and dental
benefits for the length of that employee's total service with the District (in other than
temporary status), or until such time that the spouse remarries, or until such time that the
dependents no longer qualify for the benefits as stated by the District's policies.
Medicare Part B and Medicare Part 0
The medical coverage for eligible retirees after age 65 will be integrated with Medicare for all
eligible retirees regardless of whether they were hired before or after May 1, 1985 and eligible
dependents upon their 65th birthday. If the retiree's/dependent's health plan requires
enrollment at age 65 in Medicare Part B, the retiree and/or dependent shall be responsible for
paying the Medicare premiums. Upon submission of evidence of payment to Medicare, the
District will reimburse the retiree and/or dependent for the cost of the Medicare premiums
($93.50 in 2007). However, the District will not be responsible for any penalties or increased
costs in the Medicare premium should the employee and/or eligible dependent not enroll in
Medicare during the enrollment period surrounding his/her 65th birthday.
Medicare Part D covers the cost of prescription drugs for Medicare eligible participants. Under
Medicare Part D, Central San had the option of I) continuing to pay for prescription drugs
under the Plan and receive a subsidy from the government or 2) enroll Medicare eligible
retirees in Medicare Part D and experience a reduction in pharmacy costs. Central San has
elected to offer retirees coverage in health plans that participate in Medicare Part D - the
Medicare Part D premium is included in the plan premium for participants over age 65.
Central Contra Costa Sanitary District
Post Retirement Medical Benefits
Page 22
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Central Contra Costa Sanitary District
Payment Authorization
Pay to:
Name:
Heath Culbreath ~ q 0 (,
Company: Culbreath Engineering
Address: 1673 Albani Place
City:
Brentwood
State: CA
Zip Code:
94513
12/01/07
Amount:
Date Desired:
Give Check to:
Description: Job 6421 - Amberwood Lane, Walnut Creek
Progress Payment No. 1 and Final Payment - Culbreath Engineering
Construction Contract:
1 year warranty (10%)
$110,000.00
$11,000.00
$121,000.00
Deposit
Date
* If Yes, attach "Final Payment and Release" Form.
* If No, District to retain 10% with this invoice.
% Invoiced
Subtotal
Less
Amount Paid
Contract Work Done? Y
Project Security - Mains Cust 10 No. Name
002-0000-223.40-00 2139 Mendelson $25,000.00
002 -0000-223.40-00 2140 Chiappe
002-0000-223.40-00 2141 Cheng $25,000.00
002-0000-223.40-00 2138 Sri-Pathmanathan $45,000.00
002-0000-223.40-00 2138 Warranty Security $11,000.00
$121,000.00 $110,000.00
Payment Authorization
Page 1 of 2
Payment Authorization
Job &a1 . Amberwoocl Lane, Walnut Crelk
Prog..... Payment No. 1 andFa.- paptent . Culbreath Engineering
Initiated by:
$1,000.00
Approved by:
$17,500.00
Approved by:
$25,000.00
Approved by:
$50,000.00
Approved by:
No Limit
Attachments:
St''!P/ianie :tl. {ironlUnd"
Stephanie Gronlund, Associate Engineer
11/26/07
"/2'}1-1oO~
Date
tl -- 2- 7 '"' '1
Date
l( - Y6-6{
Date
?O~7- jl-7cf
Date
1) Interest Calculation Sheet
2) PMIA Average Monthly Effective Yields
(http://www.treasurer.ca.gov/pmia-Iaif/historicallavg_mn-ylds. pdt)
3) Contractors invoice (signed by Contractor, Owner and District Inspector)
4) If paying 100%, "Final Payment and Release" Form signed by Contractor is required.
(N:\ENVRSRV\Plan Review\Forms\Final...)
5) Printout & date H.T.E. Customer Balance Sheet (Screen 7)
6) Engineering Department Authorization Limits (for Approval Limits)
Payment Authorization Page 2 of 2
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Final Payment and Release
Project Name: Amberwood Lane. Walnut Creek
CCCSD Job: 6421
The acceptance by Culbreath Enaineerina (hereinafter referred to as "Contractor") of the final
contract payment in the sum of One Hundred and Ten Thousand Dollars ($110.000.00),
covering all contract amounts shall operate as, and shall be a release to the project owner(s),
Central Contra Costa Sanitary District (CCCSD), CCCSD's directors, officers, representatives,
agents, and employees, respectively, from all claims of and liability to the Contractor, including
claims of the Contractor as the successor in interest by assignment or otherwise, to claims of
laborers, mechanics, subcontractors, consultants, and materialmen and including claims by
laborers, mechanics, subcontractors, consultants, and materialmen as successors in interest
by assignment, or otherwise, arising out of the work performed under the Contract which are
related to said Contract amounts. This Release shall be effective as to all claims of the
Contractor arising out of or in connection with the performance of the work under this Contract
with respect to said Contract amounts, including tort claims, which are known to the Contractor
or reasonably should have been known to the Contractor at the date of the signing of this
Release. The acceptance by Contractor of the final contract payment described above shall
operate as a waiver of all claims described herein and of any entitlement to additional payment
arising out of the Contract.
Signed:
~~
.
By:
Heath Culbreath
(typed or printed)
Title:
Owner
Company Name: Culbreath Enaineerina
Dated: / /- :2- ~"-O 7
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PROPOSAL AND CONTRACT
FOR HOME IMPROVEMENT rAx
'2.,. 9,,,- ,~, I
This PROPOSAL AND AGREEMENT is made between.
SiN 51</ 'T'5 7/J - 52.3f::J
(Ownillr'1 Nlme) .-- Te~' :_~
"^, ~""BG/'(#!!.o, !f.oA4
(Owriir', Addr..,)
M:.~vr c:A~~/Lr
( , ,~)
;f~~~..(Lv()o,I) ~ ~~(A5 C/'~h ~________
(o\<Idr.t$) (City, St.... Zip)
Contract iI
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(H.O. FORM 8)
CULBREA TH ENGINEERING
CA. License. 805032: CULBREATH ENGINEERING
1673 Alb8ni PIece
Bntntwoocl, CA. 94513
925-240-0486 0fficeIF lIX
925-727-6206 Cell.
e CONTRACTOR )
AND
PROJECT:
.s~A/ S~ /
(N.".)
CA.
Deacriplion of'tIle Work:COI1tredOf propOses to furnish aN nec:eu.ty labor .I'd materia" to construct .nd compte.. in . t.killfu' ano1 ..: '. _ a- ...
manner the tollowt"i: (OeIcribe nature of worle Illduding maternlla .no;j equipment expecled to be UMdl:
Co.vrntc.; AM) 4r,'cG A/'4 ()-/tJI/:.iV ~ I/A~ /lAft&IJ---t/ZS/f27 ,~~__
/~'-ol. S,;fU SAt'. ..ot.ZJ' AArk~~ R0#I4" t...JA~ (!'~~~ CA. ___'m d.. ._
~~~. s;:~ m~ ~ 1-;;";/ ~ ~!~~,p~- ~.-:~,~._.
~"""'1 /1'1# ~~~ ~-~ ~c. ~_---2 _~__ e.~C?OJL.~iJ
240 ,lUG ~......, '/ ~ A'J~ " 7!:'~ "",-;eJ ..:uv#t1I/I r Y"I ~.fA~__..
"" .. ,
~o ,,:.v' L..~~ CM../ .-/U01"16< f/4~ ~ """"Jp~~44. 7'J.o..."'iv~A ~ -~~d
~. ~N ~Ah /4':'~",v' L~ 0,,", #., fcKht' F"i4 t ~ A~~ ..R~ ~ ~./ Ml'f
t11 I. ~// AVe. f'IlL 3S; A// 7?'~..t!IL_-t!L-"e.._4..~0:C,Y/U ~"y< ~~:.l:~/~__
+~ ~A ~,.. O~ -rG.~ 2i.?--~h.cLL.~t"4 k/,,7t( 0'''' ~ ~ ~~_~~ '
/JA7t::# ,17'" cA: -:rr&"Pcll.--'t!::::::./~ A &"" -r. cG1"J AI"'-L._...d..--a":'~4CL_oE..!f~l7'-w I
t:u.../I'3At::/1771 ~NtkMLE..L.LLL,?- (.'...i{.)~'.J . d.._~)!c-'.I?r (-~//J('~~ O~ //.:~-C~.~,f~<;:,I'::~~"""'1
~(..of'6~ ~_~~d _&/ ,1&~h'.E"t;.--.er-5?~.~tOA/IY/AA.(YiI!:iYJ!'.b!L~'?:./~cY"
S'-'''~'h~" j"~,f'h,!c?", ero1'/.1C/ CO.......rIO/('" ~~/M"""~~......,.A"J-4'e...vA":('n).. .__u
k~CV"('&:."dGt#~""J ~ r<1'I:;;;;' c:A...../,~J"~#~r# ~~ ~~.2C.tL~~.. '/
CC""';,1"'c.7""o;r./ 0"'" A1.~!4L _~M~~~~..!.1. ~_.L~~ r:~~~~~
t;.r~~~".e"f, m,)lAAJf ~~fR=.Tv"o-'..J;J.t;;l..Rr;~_F /,c..Id~ ,I(/~"" Al-fA.(: _?f~~. :
Tol., contract pnce 'or the abolle wor~ ~ $ /~ 000 .oClCown pay,..,en: SCHEDULE OF PAYMENTS shal/be per Sec. 7t59(e~ ar,d' :" .
(it any) IS S /t::1CJ<'.o cr (Down payment m3y not exceed California Bl>sinells and Professions code (see back of thIs pa;,=
one thousand (51.0OC.OOl or '0 rerCenl of tt-e contract C"(;8. @xciuding
tinMce cnargn, whichever 1$ 'lie lesser'
WHEN
..
AI\.Ci....,-
The folloWll\g WIN consli:ute substlllllial cOl}ime~nl ot wor\( on the
project: SAt.c./ r<.A ..,L!'L~,r;'C/r _
Work lNiN cOl11mence at'prOxor>lIlely on Vc/,!!~ du /p,.,if: t r I n 9
delays caused by a(~s of Go.:1, slOrfTIY weatl'er or IInforseen circumstances.
work wi! be Su/)slantiallv comDleled b.
1. Down Payment _ . S A)~~~cJo.,_.
2 SAt..c/__CYi'~.t1tFn~/ ~ s S"2~~~.:~~
~"f-_-'----'-r--.- --
3..r~.Irrt~......oE:,A'i?!:_~ A ~A_jfoe
~NfIw/4IPtJ~ ~ jljJt. <I' TO ~ /. ~60d-oo
rA..Mt/. ,.D...,~ 7nt-'A..k;A! ~ ~o(J,~
(S""~lIe~~Iol/llt_q(_ .----
or swW:les kJ be perfolmed IJI' 10 any ....rertII$ and
eqWpner.t to lie tullf.'h<Il ./~.. 0,0 D..a. Q..P' ('Must OullOWfllr.
" do"'" ,,'1(1 oenlII )
NOTE: FAILURE BY CONTRACTOR WITHOUT LAWFUL EXUSE
TO sueST ANTIAl Y COMMENCE WORK WITHIN lWEN TV ( 20 )
DAYS FROM THE APPROXIMATE DATE SPECIFIED IN THIS
PROPOSAl AND CONTRACT WHEN WORK WILL BEGIN IS
A VIOLATION OF THE CO RACTO S LICENSE LAW.
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,.1 .;....7: -~i::..-:'. ':; ..:. . , s~r-' ;;IH3,1{'~' :'.. ~~\'j;:,t~Oj, Ii'Jdl .r,c.'"'ea~ft I); de'~ase sr:a~ m~c;fy t~ ~.:r.!ract ~)tIt:e ('I~ Il'I,g (',.'}~ltr9C~
.: ?~1. (;'. "',:'- .' -" _...:-' .,,;l'~.i lJ.J8 (;.~i'I(3'::f(;r .,ay s....sperl\7 WQiI\. \;:m tr.e Jot, Imt. ,'lJ(~ time at. all pa)'mt'rl'$ dWI} ~'/t'- ~e(-', 'ila,Ot: ~ (J;'..lie ;( mJ!<e ph'rTlat~t for d pei"tOO jn t'xcess
)! ','.-: ~= .:~;).. - '-.~ ~..:,:a'e ~,' ~ri! paf."'r:er;: ;':1311 ~e dp.tfTIeo it Matetta: Oreacr: of IMlS c3I1tracl
1'("IT~ 'J": ..:-: ."'~ -r:~ ir"'l""l$ ~r;d COndfttoru :)i fac:i': ~la9.e ;j Ihs ~cnlra':t 6-,d 8~e~;Jle~ &.d.!DI!S are f1.xore,,!v irlcUfpv"'al-.a~ li;~O i~:S cdnlra':f '
.,..,:' :?' ~':.:':' ~~.~'.:!':l :b;,~' (11ft:!e fu on" ;::orti(J!} cf:Jole we:t r.~ri'Nme,:t t.,e "::l.1n::"3~ror .sh.1I ,:\(,('11 '~a"y 1~.1~Ett pd.,I"~m Lt!';~ig !"a~, t,:r':ll!" ~o H;e ~;sc-"1 ::;'jnliA-;tii1fj '01 thl; ~t\.'rt1d
.';: \,;"'f-:-.; .: ~ ~:.:;. ..~t:';:H';1i\~.)r,.J1 ie'e~'S~ frOl""1 any .::..~im,.;: r'aCl1d~.;'a I~n '..ursuani ~~: s.e:::ticn 3:;j~,o-' i't 1r'l~~.!"'11 Cooe '1r i~IJt ccr.i']r ;;i ftte ",c)h. fc:r w~.\.'rl ra)'I"i~1 nal) be6t' ma~
.., ~ ~:~ '. :~'''''':e~. /j.",~ a;\o Raglslrd!I01 I'j" cf ifi Sa:e~p~rion \\~~ SQ) cite(! or neJO!Ii!!P') Ih.s ~o.rra,:'
- -~---_.__._-
N,o ________.____.__..
ACCEPTANce
You are hereby authOllzed to furnish all materlals and labor required 10 complete the worli; mentlonecJ III this proposal, ior which IfINe llgree 10 pt:ov the
contract price meotioned in this proposal. and 8CCOfd1ng to the tenns Itlereof. 1!We acknowledge Ihllt before entering Inlo l!'lis contract, I/We rftCelYed
a COf>Y of the Notice To Owner. IIWe have read and agree to the provisions contained 00 al 100Jr pages of tni$ propos8I and contract and in any attaeh.
men!a hereto. whlc:h 8te made a part hereof and 818 described as:
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1 C:;,..t~act Agreement'
2 NOllce of CancellationNVaive!'
3 D!agraOl Emib:l B-
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(0a18)
"4. Change OrderNVaiver Exnibit C-1 __
C-2 c-:) __ C-4 C-5
"(Enter dates and owner's initials for any change orders agreed to)
~:;~cte;j
,<l.::ecte<'j
(Second Owner's signature, it needed)
(Date)
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I NOTICE: YOU. THE HOMe-OWNER (SUYER), HAVE THE RIGHT TO REQUIRE THAT YOUR CONTRACTOR FURNISH YOU WITH A
I PERFORMANCE AND PAYMENT BONO OR USE A JOINT CONTROL APPROVED BY THE REGISTRAR OF CONTRACTORS. YOU, THE
i SUYER, MAY CANCEL THIS TRANSACTION AT ANYnME PRJOR TOMDMGHTOF THE llIRDBUSlNESS DAY (IN THE CASe OF DISASTER
I REPAIRS, SEVENTH BUSINESS DAY) AFTER THe DATE OF THIS TRANSACTION, see THE ATTACHED NOTICE OF CANCELlATIONI
! WAIVER FORM FOR TION OF THIS RIGHT. .
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If more than one Owner, second owner sign here Date
I NOTICE' STATE LAW REQUIRES ANYONE WHO CONTRACTS TO DO CONSTRUCTION WORK TO BE UCENSED BY THE CONTRACTORs'
I STATE liCENSE BOARD IN THE WCENSE CATEGORY IN WHICH THE CONTRACTOR IS GOING TO BE WORKING -If THE TOTAL PAfCEOF
; fHE JOB IS S3000R MORe (INCLUDING LABOR AND MATERIALS).
I' UCe/liSEDCOHTRACTORSARE REGULATED BY LAWS DESIGNED TO PROTECT THE PUBUC. IF YOU CONTRACT WITH SOMEONE
WHO DOES NOT HAVE A UCENSE, THE CONTRACTORS' STATE LICENSe BOAAD MAYBE UNA8LE TO ASSIST YOU WITH ACowat.AINt
I 'fOUR ONLY REMEDY AGAINST AN UNUCENSED CONTRACTOR MAY BE IN CIVIl COURT, AND YOU MAY BE LIABLE FOR DAMAGES
~ ARISING OUT OF ANY INJURIES TO THE CONTRACTOR OR HIS OR HER EMPlOYEES.
. YOU MAY CONTACT THE CONTRACTORS' STATEUCENSEBOAAOTO FINO OUT lFTHIS CONTRACTOR HAS A VAUOUCENSE. THe
! BOARD HAS COMPLETE INFORMATION ON THE HISTORVOF LICENSED CONTRACTORS, INCLUDING ANY POSSIBLE SUSPENSKlNS,
! REVOCATIONS. JUDGMENTS. AND CITAnONS. THE BOARD HAS OFFICES THROUGHOUT CAUFORNIA. PLEASE CHECK THE
i GOVERNMENT Po WHITE PAGES FOR THE OFFICE NEAREST YOU OR CALL 1-800-321-CSlB FOR MORE INFORMATION.
ix
<If more than one Owner, second oINner sign here) (Date)
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I CONiRACTORS are required by law to be bnsed lUMI NgU/IIad by the ConIrIc:tcMs' S... Lice,.. BOII'd which has JuriIdIctIon to ~
I complaints againatcontractof'llfl complHdll ftledwtbt three yellS tilht. otthtallged vtofIdlon. My quttlons concemIng. contrac:lornwy
! be referred to the Rlglsnr, Conlractof'l' StaIIt IJcense Board, P.O. Box 2tOOO. SIchmento. CA I582S or C1111.tOQ.321.2762.
I t-E2 'TRA TlON OF DISPUTES: All claims and disputes arising out of this contract and any pelfonnance thereunder shan be mediated in accordance with
I !'>€Ction 14 of tile Addllonal Terms and Conditions. If unsu~fUI, ihe dispute shall be arbitrated pursuant to the Construction Industry Arbitration RUles
I 0' 'h7 Amencan Arbi!ration Association then In elCi$tenoe.
NOTE: BY INf11AUNG IN THE SPACE; BELOW YOU ARE AGREBNG TO HAVE ANY DISPUTI ARt8ING OUT Of THE MATTEI" INCLUDED IN THE
~A"8/TRATlONOf' DISPUTES" PROVISION oeClDED BY NEUTRAL ARBITRATION AS PROVIOED BY CALIFORNIA LAW. If YOIU REfUSE TO
SUB.T TO ARBITRATtON AFTeR AGREEING TO THIS PROVISION. you MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE
CODE OF CIVIL PROCBDURE. YOUR AGREIlMENT TO THIS AReITRATION PROVtSlONS IN VOLUNTARY.
WE HAVE READ AND UNDERSTAND THe FORE
IN THE ARBITRATION OF DISPUTES" VI
I ag.... to arbltrMfon
( Initials Of Contractor)
NO AND AGReE TO 8U8MtT DISPUTES AIUSlNO OUT OF THE MATTERS INCLUDED
TO NEUTRAL ARBITRATlOIiI.
,.
I agree to arbitration
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ADDITIONAL TERMS AND CONOmONS
Th~ fOliowil'l9 'dtfi\iOl\al terms and &ondillons ,pply 10 the Il.:rYIlIC!Il! cr.heduje (If thi,; eontracl:
,a in,ne "".~t S'1.". 1he pay men' ~CMjJ'e ~,.)vioe ;e: .- (i~"~'rcr 'e rCt;l'"ve. ",~' <Mil CGnl:a.::l:>t acIu3l':, 'prp've O~Y'".Ft in p u:r!'s ::-; : '.")"., 'J~ l~e ',alll" oj t,.,e '1011\ p"r!0rc
Of'! ,he p'Clect at arty :m~e. excfudlnG 'm:mce c~argt;!'i. elcet~ th~! ::u\fractcf ;-nay rl!t:e,vq ar. ir:i~lal d~wr: t=.~~yme'lt aV:N.\i;z~j L'r t'1I5 (:.,:'?:!
~ A, 'a~u'9 t.) (.0''''.00' ""Ih,d id"',U: ~'cuse !~ Lt;l~r'.a'!o; ':. ""~r,c" \'1M, WltI, I, '..,Pnly 1201 cay, ~Ilh(' appr~wna'e .j,;'!, "Pi?";',ol) 'r ',~"< ?,c,p.'sa ~r.d CvN'i1(' .','
wor~ ......'.. b'?9';) ,h2.1 ~;)s:pcne ~~~ nl"! ';lJ~.:t:edirq vel"'.pr I I: ;~' "'1( lO' ')' :-~, ~","rc c' ~!I1'l! t~~l.ival(A :0 ;"t' :ir.e te!we~" whp., '.e~':ri':';'a' :.0 'Tf"Cer.!'rt '11)3 '._ ,
o~lJ(rea ~nd Nt,e, I' diel OCctl'
r T~ 1er~~s a"'td co.;(N:0:15 5e~ f:":,~h 'j ~,'b-;)a.ragrcC(,s ~GJ an,:: i~. j0:;'Y~ C~~.1!lW'g ii) t:if: D<:l)'m~f1t 3tt".eduJe ~n~i! ,,:;,t aNi.y v,ner. :'1t:. ~,-':~'I;;:: ::rC1;"Je:. !(;t :~'I'Hn~ttCf ..... 'I,.
a rerlocna^c,; a,',eI t'~''C.~ol ~,.)nJ hpr a::~ r~''''p'~h()r tJo,,~ tOrt_ ~i;~.'aierl c.- ,....'111 "'C"-.' ,l,'["'lJvea by t".; Rp.9hi;ar 0' C("I!ldCi'YS'_'''' ,.~, ':.11 c"r!ol'"ance a.'G C{,rt~.,
t)l '''Ie coll'acl and su~h OO"(l~ f.I :~,," '.0""0. 'S Cf a'e tJ"I~~HI t) :u,l~ac;or ('" ...h~~ .I.e carit's agrae tc f'Jil parme"'lO Of: "13de .1:0' 0' !.~' ~ ,':'eo.1uI" o~ ;Javnenb Ie ['J":,h,'
~~~E!f s.'I:sfaClnrl Compj!!hOl'.~' !',e project ,
WA.RNINC: 0_ ~'C r,';! use I',f. 'C'1'" t.'.€ ~"'.'e' I~ .["'J~: ".. '-"~'."IIJI ~"l 1':"iC.:E :;t:iJ:'~e A. Hc,,-,( 'mprc'.'e'l1p.r! '~TI-ael .....,~,' fl".....~€ .:r,;;~l" '"'JS' ro'T'~'Y M't",.
Ca"rc'olil R~Ii'.I' In!rJi:r,;~nl S":~$ ,~!~";') .~,~I ;:ro'1lr€ "ede',,: '".., .'. .er<j,r" .:~'!. Tr.e i'ede'd, Tru!r. In Ler.jir;q ACI ~"so aOj;;'€S II '~.r: ..,('....-;,,' ;" .:.~.~ rWii:.'e ,'. rr,;"p '~''l"
Ir::;J~lh''er.ts e'vl!~ " !h€.€ a~€ ;-.~. '~tFr~.,t .;. ': "~;'~~ r."'~rJ~s i~\t'~f ~~,.~;~':s c'ay'ne~~s are IlO. j"sla:itr.~N t:a~'r.1en's ; . .
1.. Ca'IGlIllalion' '! €'t',N tr,o i:~CO:;~1 Jr'C"Jr [he aC'::l;crdoC" .:, ". P'q'i)S..1 ar.J :~(I;:'ac~ IS ~lade I!t otre, !I,ar. Ihe premi!,e~ ~l ...~.':'. ever.actc' or o...ne.' o10r"'illl', ':,,".:
." a b,,~,r.eS$ I~&" y;)~. ih;! 6~le', may .:ancet thIS t'il%ilC:c" al 3' 'I \,.,,, prlO;' ".' m:cnighl 0' ltre !l\ord b~s";e~s jat after 1M dale 0' Ih,r, transaction (586 llltacr.ed N,~r,:.,
Ca'I(;P.l!alion.v~<IIYer 'orm fN an eKpla'lar on ~i 1111s r'gr! ;
T"e P,.,v,sion Ital Cwn'!, nay cal1r.e' l!1is ~ar.$a<:ti':l" w;l~,c 'r-~e ~~s'ne9S ~ays ,MI: no! apply ~() a contract ,n "'hid! OWller tas incl.ated !-.e ':Gr,"ed 31':1 WhICh is eXf;<;.:,< .
;" C01r1t'Ction w'lh Ihe mak'ng O! e[l1er.:Jtl~cy r~plll'S C,t se"J1ces 1/f~'~'; ~'p. ~ecf",;a"y 1(" 1"" im'Tledlate li"oleG~~1'I Qf J)(!ISonS or redi lJ' ti~'s::,lal P:CPl!.tf, c:ov'ded thai GV.i ;_
tur"lS~es CO"jraClor "'~h a ;eparaloo1 dillf:,1 a,'d ~:gn~ persor3' steln."1en: (ies;r,r"ng ~t;!l s.tval.(lr re~:i~'r.9 ilTl"'edi~t€ "~nedy and e'li'es~lf <!'.:l!;low:e<.'g''lg and war.,r.g the '.;
tG oan~el In!! sale WI'tli" I~ree bl!s'~ess days ISIle an8~lIed N"l'ce r: C~n(l.lllult';'~IWalvet).
NOTICE TO OWNER \Se't:Ol\70185-Contra,;tcrSLI~en.~eL~j
THE LAW REQUiRES TH/O-;- eEf'.JRE A L1CE-J--iSEC (;tjfiTR.4CTOK CAN ENTER INT-J A CONTRACT -ofrH YOI,j
. FOR A WORI<: OF iMPROIJEv,E:>JTjrj i'CUR ?RO"'ERry HE ~UST GIVE YOU A CuPY OF l'HS IJ071CE
Lnde' the taMarma Mechall.r... LiE:~ law, any ':O'l:'ac\:". <.tc.)nlra(:lor I,,~cr~r s~ppliet, or ulher lielSon QI entity ""ho helps to '1"O,o.P 'Jo,u' property bill is n.;, pa'~
for 'lis :If' I>er 'NQ'( or !UppJi!!s. "as 8 "g~! to plaCE a I:en '" ):"r~c,rne. ''l''~ 0' pro~'1'f where ,he work was performed and to sue Y"~ in '~'Oun :~ cb!a,n oayrrllt>t
T~,.. means that IIller 8 C<:'urt hear-II!! your 1'l11'W. larJ ora vopertf c;'>'J,1 h1; SOio t.y a court officer anI t'le p'~'C'.!eas of HIt; Sd.e used 10 ~a:'sff"~a! ~';'u 'm~ -r_,;!
can happen even If VOJ have oaio ~Qur (Mlla,;!;r ,". ""if; !te t1)r-tral;loIS. SuC'GOf\''ilctors. !aborers or !...pptiers rel"llllfl u,1paiC.
To preserve ~'r r'\Jr.I' :0 1,18 a c:ai:'n or lien ~.11S' )'o~r Prop'1l1y cert3'r. da,r"c"IS such as subcon!laC!'Jr:; (Jf 'TliIleriel su;l~,l"rs c',; ea~h 'l'!cIJIIM :c crovide YOJ w,'~
a ljocume~' called E: .Prel.r.;;t\aff ~~()t~c'e. rOr.tra~lcrs a'lfJ iab!ji'!I'S "JIt'ln (:ryi".tr~f'I ""'li!1 cwners d,rectj)' do ~ot ~ave Ie .,rovlde ~'l;~ i1l,ti'~e s.rrC.; 10U are aware ct ti'e'r
e.:~le~.;e as /Ill OW/1e< ~ p'ellm,nary wJl're 15 ~l)f a ';ell aga "51 f<;>~r C'Clpen,' "5 ~,,'r()~!! .! Ie M"~1 yo:.! 01 persons r;. f'f1lllilJ~ It,al mar h3Yt' a ";"t I,; f,:e . iit, 'ilaar.s~
YOur v:operty II.hey are 1101 paid Ir, IJr':el tv perler: :~e,' ;.e'l r,~h:s. d C'Jnl"e~.!o'. <iJtl<.olll'artcr. Supplier O~ I~l1orer '1lIISt "Ie a me.:'1an!r;~ :ien w-.h !h~ ~."'1~f 'ecordor. wI': ':~
ther. be;.Ctmes a rec:.,"fcer; lien aga'r~1 {OU' jlrOjlp.rt, G~I;era'; ,iI;' ma7.imJ!11 :'''le <Hewed tor lihng a me<;hallic!' I.en aga'ns: yeu' I'r~pMy 15 ;0 (f3Y~ atte' .~hs~a~IJ'
COMplelion of your ;;ro,eCI
TO INSURf EXTRA. PROTECTION fOR YOURSELF ,IlNO YOll~ P~ooERry, YOU MAY WISH TO TAKE ONE OR MORE OF THE FOLLOWING STEFS:
~ Re'JUlle that 'fOor COn!rllctor supply to_ .v,:~ 3 oaf''''er: arc ,,~"c'm.l'.:~ ,.c-n(' ! loll -1 license bondi. wh,.;" pr:\'iUes ihilll~p ~()"'J'rg o,t'mp,,"y w:'I,;:Il1e' co!:',C'i':~
!toe p'~leGI or pay damages up Ie It>e a'l1Ouf\l )! :'1e bond T';is ~aym"': aM p<>rfc.'Irl"(;p. Cond as we,! as a C<:lFY c~ t~e C:r.lS:n,C1FJr, c~,-lracl. sll<J.I.j M l,'e(. w,lh ,II.. "ooJ')
~ecordt:r f:;; your fur1t-'er ~rC~fct:,o'~ Ttl(: payme,'t or-a ~~!'f:.~r-:1...ce ~JI'}"d (f,1 I t.'stJa':,\, ~,/..s1 !:,m 1 tc 5 perter:~ cf the ~cotract .'Jllk:!Jot ct~~',clng on ~,. C\,\!\tf8Ctt:':o bond!!'i
abil'ty. II a cc:l!rar.t:'l" ClI11r.O~ ehtal'. s~c~ b.;nding .! "'a1 irC'(;,I'e h.t or 'er fira,:.:., .r;;aoac"y.
2 ReQulle that ollymenls be m-ide d'rectll 10 s~b.o~!'a':lo,., a"'o .~a'e"?' St;Opl'ws ''''(11'9'' a 10.01 con',,}1 """dl"9 seNices "a~ he .~',ai:ilole '0: ol 'E:\: ,n lour ,l~~a
whi_' wiA E:slablis", v\lucl1er cr o:her 'l1edns 0' paY<7ler.' \;0 Y:),Jr ,;.:.,t,actor T!'Ese }t;:Vlcer. may alsu J;'ovice ycu w'lh lien Wll''Ie'$ aM ot~flr lerms or '}f~tecty,l My '0'-"
;or,:"ol agreeme", shoulej inc:~-oo thl! adder,dum ~cpr\lvet: L'if l~'e reglstr~r
] lssue Jon" cn'3G~ for peY(ll!:l(. maoe C\J~ :c t~)::-, !,o:"r co":~actQ~ a~o SI,II),:..:r.::-a.;f{!(s vi materlilt SIJPp1rers '~l\'O!Ii'.}1 in the rH)fe(.t T",e ~Ofl":~ cl'te("~:.; sr.olJ'd ~ rr.3~l"-
.ay~b~ ('J I~e per'l'n~ or "n!it'es which send p,,,':oT'-,~rl r,~:'cf:S :: 1c~. ;"cse ~els(;n~ 01 en;lllllS r,ilve 'njfr:;jllllll'lat 'hey n~, nav""en rig:'ll o~ .eef P'(;(lj;r1y I~'!"~'?"
you r,8e(j 10 protect yourself, r~i~ WI:! ~&Ip 10 "Isure ~'Jt ~It cerscns due ~~r~n! ar~ actually paid.. .
4. 'Jpc~ makl'l(/ pdymen; ell a:oy compfele,j ph6St c: :~€ "rolec~, al'1 :)el()r~ "21,i~'J a~y further pa,menls. requlro 1<1<1" funtraclcr 10 lJ'r.v'd~ YOU""': uncond ~()n3!
"';Va;v" and l::?:elEF..se- ~t)~rns stg~~r! by ~a,:h !""lafena: sUPilheo. s.,;~co:t!1!;:'_~t,r l."'I,1 l,h:l,:,,'er 'Ilvoh,ed In I~a' p':Jrtion Of :r:e N.cl't' for ,,'''I'ch paym,!."ff was ir.-;t1-e ;ne S~3f~tC"'.'
I~n retcaso,3 <l'e sel 'ort!> ~, eXdct la""l!a~e if, Sec!.cc :2!i2 01 ,':e C'V~ C~,1e >,losl lldhQ"t'l ,tores wJ' sel' the '\^,lllve, aad Release' ferr\'1! .. I'~U" oorltactoJr 01(....~ "'.:
"ave them. T~e malena' S'Jpphers su!:,;omrar.W1i ana lato'er; :~!J: tO~ u('~a.:o rl!jca~e lrere are (tJooe pp'r-.oas or e'I'!,eS whe ha,'!? '''ed li''.lhn<na~ "Cbees w.ln y(." .
'feu are I'ct r.er:ain 01 'lte lTlal~r1a' 5~ppl,ers sullco'll'acrcr~ a"a 'ab~:t'ls wO'~"f\U ';;'1 l ~'" pr~jeCI. y(.;~ .1I8y 'JO'2:r a l;s! 100"1 yt'~r c';n:'acle'. ,)... o'O!ecls 'nv(1'vrn?
if\'lp!ovelTler.!s lu a s~gle 'am,ly :..sillel!:;e U' a dllple. ~...r;eu 0, 1"~"~J~al~. ~he ~'t:1S0"\~l :,itJning ll!ese releases lose !he rigN to fife a 1\lec<I!I"'C!' "en !Q!.nSI your plope1,
In ol!ler types :>1 ,onSl'UCi:On. /hIS proteCI'I)' ma, st:ll be ',"porta~: b~l mat '01 l'e as complete.
To p'Olecl fcu;~elf under Ihls opt,on, you nll,s: e8 ceria,' ::Jar 3!- '1'la!en~1 S,lp:lIle's, sJt:.c1lnlraclors. ancllabor'lrs ~ave signed t~e "W-liier ~rd Re'f>3Seo (orm .r.1
me-;har.ics lier. has teen ~Iea aga'nst tOOl oroOl'fT'J jj can or'y te ;'8"Pla'.I, re,pase1 ), 3 'p'cordM "l:!etease l'f Mtlct9mG~' l'flr.' s'yn!;G b, Ihe person or e,llty :hatf"en
\1"(' rr,ec!la"ics lie~ against your prC'perty ,.,,,IESS the ,aWSll' ;C e~!Ofr.e !~e .:e", "'a~ ""I !imely fded Y;)u shoulli 101 rraKe My Il~al paYlTlents OJ,':II ary illG all s~ch ,'e",
are removed. io~ sll'Juld C1lnSult an alwrey ,r a lien '5 mec a~a,n~~ fOur pf:}~erty
3. Permils; CUillrac\or WII' obta," "'~o ;Jdt fly ?oil reo~.''lO DIJ':'j. 19 c~,.,,,,, b.,\ Q",",~r
\y,'1 ca, ilSses~me"ts and ~~arges 'equ"ed bt DeOI:e cc.dll!S a',c '''''',es 10' !,"all~"9
)1 repaying the cost sewet5 storm c'n,', water sel'<l<;p. 2t>~ "lher \J~11>t'"-3. IrciOiOIl't;!
sew~r an(j 3rcrm dram reit"1btlr~em~rt char~es re'J<::\i1rg IIJpd C/1B..JP,S !i;J.;k.IJu
ch"9P.S and :!'Ie like
4. libor and Material: Cor.lracW "tail pay ai' .a~j c'.ar~es ~')' bec' an~ 'C.ate'liIl
weurr~ by contr]Cto: ard ~sec 'n the crJ"st'JC1ion'f Ill.. ~'c;e~: t~" i, !!'G:j~I'C ty
ON"fJl Irm" l'l~ 01:1I'1a\l01 fo: hdls :ece,vec 11'I ant pe":JJ I]"r,r~ 'N~,cn OWO!!' ., "I
.}('~ar~n making >,~Ie~s J:01ymenls to cunllaroto'
SI'o'j/a contractor lah '0 onll~e a~) paymen:s fe<lU"ea L-~e ~hl. J;)r;.9.a\J~. ''',P!'I
tr:i!Y make ~"ch pav'llcr.1S Q'I oe~al! 01 c')nt'~:t)' "1j ;cr.::ac..... ~t,;::! 'cic'Ot,ISP.
owrt:!r lor the Jr":!.:Jnt aClLiJUy oa!d or 41(.....;;:"'.-:1. :'ut )'A'r~' ~'~:'j;: n.:! Cy n~a"s ()~
i1'L;'9~':11enl or vt~-eIW,se. be '.m~l1led f('t :.rl1~~-,1 ar i il~ce~'!r :J"'~.l:r): ~~~' ~'.:},'~i..lt.fof th:l"
l~e ,l'!1Qil.'i a'~l'la~y paod l~'- lah'l' or !";tren3, ,me' ::';5 i....ac."p" . .
Nr. 'NaIver (!I rt;!na.c;e of l'f~eC~-lr.t(~ ;'er g'.,.:pn by ,Ao;::r~Cif.,r ::'~2~! !Jf bi'1d'rrg 1".",.
111 "r1~lTH~nt! <1t~p' 10 ccr.:~ado' w"o~. ti'i~ re'eCt:)!.: wa~ ~.\c('.,~ ~:~\'(' ~d~l;)i~i been
l1a1f
y
~ EJ~ra Work:: ShOlil1 ;twne:-. or an) rll;b1c ~<dy c)"d J":~er_itjf. G :t;~~i
!rC<1lf'calion or ado,tion 10 I'le 'i'l;~ ':~veref1 b', '''.~ c~"'a~t Ihe C,$, .l3-e~a .
Jw"e' a,lf! ('O.'tta~to' 10 a wr,nen Charge I]r.J')1 ~r,i1" oe ac:Jed to the ccn:racl C
EXDe~ise 'l'lcFrpd becal.J~e ~I unusual (." j'\a,'"i('r,3:~C ~ro,;tld :-.or.\ht:Jl"s (!;IJCh ;l ~
har1 soJ m:~k ':~ 9',1uI'\O '",a,~~i shan tH? :ti.d l:-r t.,! ('.llhll.r ,-l!=: ~ltr~ work.
tic e'lra or r:hanse.C'rd~r 'Ncr~ ~~i1' t~ '~::.:(e.'; I.~ ~e pe~("'netl ""llhr,,!: :
w,.it.~n i'\:!~O't..-aho:1 cf hI? pt?";:;)f1 cor'r,l:'~lroG k' :~.~. :-::,;l;:,~-,::~i~ ....l)r tt-,j? "emf! i~pr~ve"':"'
Ar,y cl'langes-crce~ fC~1"'5 1.:- r .'r fr'o;es 'r ~:.! ".~ .,;~~.. s:- ('I' :)€' ''';;()"OOnH~rl I:"
b~~r.c'l'e i! o~rr C' j'j.):,;.,:rac! .:J~ ~ ,l- :':'::-
6. Delay. :>)(\~:.1,:::)r 3":;:' :F: (\:\.o:f~ :.r ~."'., ';~ic.t 1'1 C"::l1pie'IO.1 Of tl'P fr:~
~JJs.p.v tw" ad~ r;' , ,)C =."::' . ,., ~-' >" I,' ~ . ~ C.:.;...T' ':.(r.rl"'y w~(!t!'e:. iab::" ~r'J
l(t7:" \,IJ~ ;"_ ..' . ~'. ;, ~;~ .; ~ ,{ (ra .vcr"- i"a turd 01 ow"er !:.. ;'
i'r~:'9'io::'S i-;:'~ -~~ ',~ :.
"";'"... 'I)'f! ,'.-t'~) Ul'~c-re~ee'f hy (Onnt(t(,r
"';E-"t'",;,;. ',r...;. .~-:-(' P;;" ~
03m'j/' la Project II f~(' ",,>!oct ;$ ,jp$lroye.:l .:' tJa:ragert by 3" a"-c'd~,i. Q'saster or
. ,11""'Y slOch !l$ /ire. sIC1i1. 'lMG l~nds:'1t. S,.bs.dexc or l!a1hQl.ake or!);' theft or v-lntja/isl".
1 WOI'. dor.e by co~trar.tor h rOOtn:QiFlg or r~~tt'1r~ ~&',e pf",e~ st.eK ~ p3id 'el li, C\Nf1er a~
,,' Ire N(\rt 'mde.. $0r;11()" 5
COPltrac'or 't4,jl rr,al(l~iO ~n r.1:1 f,J(c( :trtc effp'(~ a VlO~;e:'S comr:'H'<7r,"Jf1 ::'~VC;I~~ or.'-,:"
.>'.~ a:c:r.pr..~e"5I\-e liablllly i,'31:rpnce pCI;c, .
; Right t~ Stop wo,~: Con~:'act~r ~.h.Jfi .lflVP t!'l.q :~~t t,= stot) WOfo( ;or cn~' ra)'-ienr Si1~;: Hti!
~ t ~tt,1e :0 cont~'.)cfrr '.mJer !"i~ aQrp.e"e.,t '':(lMf1Cf,,' r.-a'l ;',~P fnf FlJ f1le ~,rl'.. a~ :'c'~"-'~n; ~
".P ,rl! rp'C~iv~
~ Cie.n.up: t!pc,;, CGr:"jp!~!IJ!"l o~ It'.e "'/cr~ ~C":!fU.!c;r f'J'.' ;-e""e:-.~ '1eb~ S: :]"'( ::J~I\.5 ::la:er;li
f'm ownt}f'S property i1tnd Ie3VP It if. n~at 0:"10: t~'l)~m-r;cran C,:,:1dft:~-, '. "'~$~ tlf;'~~:il\ aQreed
':~erwlS8 in l'Ils 'antrac! . .
'I: ?ersona' f)ropertyILandscapir,g .J...,.;, a;.~~,: :: :~::';ie :. '-. r.",,,~..t 00,:; :"(~c"91
"'opllftl'. 'I'sl(ie and C'. I. '''clUdirg 1M PO: im,ttiJ :c, :':r~'o :~)S s~'''':. ~':l P'il"!logs. aa1
,);"rfacf:lf shcJi: !lot :>e r(,sp(':lSI~'1! fvr ~"i::J "~r'\f, .-~I)'":~.2-:!"''''~'S .,ct ..pt';D('l~'Sib;" ~cr tt'le nat:Jraj
":;"~'qutrnc9~ ')1 t;::;e''lI':fC'ors WlI'",c Wl-IO' ''la, ;,;~;;s:~ ~ar>~ga to li'llptC'''erne~:ts '0 f8.:J1 p~
'"cludi'lg. but 'lOllmiled 10. "ulb~ "ldew~I~5. walk: drr,.e....aysgarages.patios. lawns ;hru~s.
'",,,,k'er systems and or"e: allrlllle""",;p.6 Iv:'.,: 'es,del'ce c' O\h~,. 'eal prO<'erty. Cooteclor
;'~/l 1'01 bs f,eld reSt'I;1slb!e to. ,j~mil'J~ I') ,.'s(,,,al pro!,ertt or any ttT1p'OIIemsnlS 10 real
'.roperly. caused by pe,sors oel.....""9 r,",ille' ,aI, '" . ~"':\I"en; or ~.~pir.g gales and doli'S
.:'OSAG lor ch'ldrell a.1C an'll'!IS
;J.'I~~F ..t; '~!"'. a;',!t: "~r..!.~ 'l 'hj~ C\lrl1act. co'lrac~r will nc~ be rllsparslto; ".
r~p!a-:e,"'l~"": :..- d:h ;-1~:~'::~u"~
" T axo;s t.nc ,~'s~ss,' ""I! -. (." 3", :pf1:'a' aSSestlnenlS ot al; descrIptions will t,t :::" .
tv :.w"p'
1 ~ '1cf'ce .' . c.:,:~ .."~': c - -'O'..."~~ ""G'~r ""8 .;ontr3Cl may be givl!n bY !lrdll'ar_ .
J' -"(. ~1:.1'~: :l~:'{~'. ,::.1:r ,. ,; ': :..-:'~'-: t...: ~"''-:--t addrflss mat be (;hartged by wrir.en ~..'
>.~; ~) \;"'o! oa:1. :.: I' e :.--r-,f" .~':':- ,.,.,., I". :. . J:: ~f'~'.:J liO(IC8 1$ depOSited irt tle fO(Itii ;-'.:0::"-:':
[:€~'a,j '~~~all J~ Ja.e-le(l .e..!.!.>'l..... - j:'s ::~:;...,~rl ,::cllrse (If If'lfl: ma~,
13 B8I1k'uPICy: ' eif~e' Ja't, O".CO~"' cp."n;;t ',Makes an assIgrlJlellllor ,Ill> L'p",.'-'
C'~~ ~OrS. 'hI! O'M!" Parf} f';3S :re ~I;~'~ t,-. :,~"~e .1!1 c.orl~ract
14 Mediatlor.. 'jnless ol.~",.>~ a.l'e~':; (I r~~ ,'a~es ir Nf'IIing. aoy ClJn!roversy dr.; I:]
01 ~hl! GonStruel'ClI o'lhe ~;C.e". ;ef~"d" :e C j"S .::r ~3C: or regarditlq th!J "'er"e!al:()r .:' .
~f)'1i"BC1 Sfta1i be !u~ject:o ;; ~~:"):< :a.i~, ~.e:'~!;,:'; c:)<'l'I\j<:i~ b)' anG ,r. ao-..ordanc~ A"" .-
r~les 0' the Amelican "rtit-;;! v ~\;:': 3!}.- '.1~1;alion ~'all ia~1! plll<:e prio' ','
'.:()rnrr.enc"",enl ,J( .~rbil'a:icn 1M "1 ~c e. e'" Hr :Mar. SiJ'Y (60) days aflerlllll first de~ >.:': .
art. (,,:Jtlr. '5 filed by Olle orl.,e ~~,~/;s '.!.~~3:ic", s~aq be govfrntll by I.~! con"'j~"'"
req."emenls ccr!ained in C.I~OM;a E~,dent. C,'~~ ,~r.lierJ \ :5, 5 Sh,~,1cI medllIlIon ',,' ..
DartleS arbitralO tlle... tI,spu:e
IS rot your IISs:slan~ Ihe C'"Piels "'~l~' 3ar:ioo 7:51 7'5' 7 ~l'd 7159 01 the Ca'".::;.. ,
EluSIf\_ and Profeni0l15 Code 8re r~~rinll<l ~elow.
CALIFORNIA BUSINESS AND PROFESSIONS CODe
f7151. Ho..,.lmptllv.mllll h_lrnpl'lv~ QOOCI. or Itr\IIceI; dtfItlIIIofts
'H:lme~'r_t'.t"qnnv. ,P"oltifInrl. ~".~nv ~rtWt'11il/lgQ( 1J'000ngb.
''lS~!llllOl'f1yol<1d$i'Oli1CWC,lJutlYllMirnW!<!~'.!I1d'''''...''Qon.~.~lcr"'-__
a~._,.. -"""'9pac1s,""I.".;"g_a'l(Il>.llta.If~_. ...lIMliIgs.llorfII~lll8.~.
'Q~~. rorcIIl!S P;IQe$ lmJl sr.eIM. b_,*. ~11 c1ler --:>oIWT1InlsCll........._ or __ IS
...~a:e"'IO"dwtl'9l1Clu!e. ...!G.....--t"~"'m_tlEitI$I!IIaiD!(lI'l1onw~goods
~tl'eIurnlslli.1C'orl1c...:_enl!!'l_...
r", ....""'po.ge5ofll'... ell.... .110.... ."'lplO'.8'll1!<.'9OOdt or Sfi;f\'......ll1elN goox'$ end ",,"'iellS. '"
1(.f.lMld."~<<b'1689.5(lf!'1eCi"'("je. ~nbrlo.'li~:"'_ilOII""'''''',~_o~..,~
S\dlhlmt'~gMdslllldS9J'<iOIS~m. at ....llClllr""'" D.~. ""'".~ f9/l:>ng. air
~e.~or~"!l~IIf"1<'''''''' _e""""oo,a!.!I'1 ft.>tI1Iol""""'_goorI."'lCtLOOl!\lOQdS>Alocfo lit'
tI'!ltSOalllqalD....llIqlI!Ily.. \)!leaome I_Ill w ~ ,""",,*c-llQI-..r.kl!weflom
t71it.2. HG""_~COIlhc:td"'"
"""""'__mertCOOIrlcl"nuMS'JI' _. """,,lIrorllor_.orCCnt_"MliOl"-
<lx_II. -.. .ecntrd::'tend.. ~Ot~, 9toot_ "".lIINrIlOIIJiIliIIslIcll/lenunwOl
1l!..d......Ol.cMl!;ngtftts """'1Il18d ...""~oIlgi" ..I''' \'10 howlI.........Whe"'O'ir.. "'...~ to
'C "''''''''''''U'deol:eOo'_''''V,"", "'t'>el....",. """"'pe<b_llf ahomorrll'O'l!"Ilonl'l'l lltrIir<t<lin
Cw.bor 7t51.lIIY.llncl:4ls ~R lm'!leMcet """ 1Il8l9'i", II) '>> 1\~'lG>ed ana pIIIlJIlll'ld '~_~:>de< .ltJr'lE>
,,_Iw:Jra.l' 1I$o1lP8lIS dlll(ll1lel'lWl. w'lIIilercral or ~ or::rJr.1801lld jr or:all"'0800c_ls.
1~9~~:rrdl1corSl1ttj<:~'1ornt~'~lrdla)Pr_(Vlbia_
reglIGiIssaft:l!l '>U'Ilbercf.'&IicIence :lr.,...... AlS awUned on Wlebol'ldtllgln IlhCI> "''''''~MOls. w!ctl
provi:le; I:lrhlll!le. iroslallaloanO'I.,~c'llcrrer"'4ll"MmItll~ ~_
'71"CcmlIatt~..: tll\IclllfllllllC,""JIIaIIct. vkllallont
T<1iJ a_ H'~; Oh'y 'e "Cne ~_....... 0lWa.1Ii <<: ""!Nd II Sft:lIen 71S1.2 be'-n a
~........ 'lll'*f'("lnlrr.orc< '-4Iv~. ....,iJb>sedor~lcill!licMNd~
10 Iliacl1l!lllerwll r8llll'd n h 1r"",a.1Ic"-.""" .....:1Xr.1rlJ.1'....... """"cr .........tar_ c""". '.....""',.
~\lIstuct."".l)!14IOIIIR~h!rft; tri>'1Jlll:l'<<:~ ~-i9.~~iIIg.
'" a1Iiou~lt1Ite$~"31lWllngcr5~1V8""!:r.l ~:~ ;JlCwI'eA! !'Iltaggreo_co.'llrIctOl'a
'Pft:~ ino-ear /I1Ol'lI~'Ilt!rI~. "~Iudj.o, ai' fiblr SfflCes. end """"'lDbe Unrshed trflf
c~."fAl8ds ftve~doll;n fS5rel
E.""Y llcr.!eilr_'\lOII~ '"..~ ;::JrlrllCl'J1eprWr....fP\#llOleolMicll6 ""Cllf.st'.donda
S1lIIl\1"""llpoal. shill belllllitc! "... ~oltl1:'Mr{j(~ evet) Cllf'I!rao erG illyC~il"eGOlllra:l
1\lIbjDr.t1O""~oItN5.IECbWl:"~.". a"",,",,~SlWI"SlgrIectby" ........10..
cxn-1C11Ief8\o. TllewNllQ !I1l1l1'11lti'lI'le 'o'!cM"",
la' Tlle_. ~ ...~........,ftl..OOIlYartor. ondtle oar.... .......Q1iC-n-.oI;rlJ
$~who-."Ot~"COllI-8C'
jbl The~4ates ~ n.wo:t..:r. b9'I!ldWllM 3lIo0"5fII1ctO'lIt ~ beclllTCllelilll
(cIA",",~~"';/qle._~.!Ol(lOCllMldon"'~~
""""""""'*'llIXXJl..-.!bd!lorl1cmt''''\1Il1Y8mOllI!;. i1~of""'-b""<""_~allIlP
".,.., lobe _Cl"iMlad nile 19"'l!dOOtlS<1u'II;o.,~.. ""'_.
Cd} '''"",,*,,~~''lI'ctCT.lla:tpl1lV'des'''' a~!otepaidll>"'O!lIlIrZI:lr
lw:tletlMllllShlterlrll~!!1eCQO~~'OIlYlI te~:shlfrdelO:mlMo:'fthd<<'lln
(J2OO}'Y2~"'ofIl1llCOll~IC:ptb'w;~1"lClIS "''''''h'vslnldoil;n!Sllro,c''GllIfr.lJ1Ictlt'!!
c-..nc:r.tn''''_~~" NrJ,J<j "'.l ~na;"..ec'aoves. "~oc_is ~_.
(.) A~.:JII'ft>1n&1!l.~:1g:/1<Owm."';"'(llCI'~1llrt.sa!"II"'rdrflna1CQ!As. iIlme~
Sha!'i1l9P-"':;C~t''lJ''G~'or~~(m1r3'.ltr:Of@l:t'''e. 'JI ~\'ltI~ao:~'e:eMo~1s
;" c,~.ar !f}Jier.'f..,r oI~~'~Of'"""" !,ml,n'Ef!(l" ~..c'tjocl S1;JlY ''IlI...durJiog '^anc:.rchr.;lu.
':>l(OOP: N Pllo CCt'm'::r-.IIY M3Y fOCet'f'l! an ;,i1':.....ttwwI~I'...,:-t,! ,QI.nN:";e---Jby slltx1t"SIt'" ~t!. l/Ioitn re~piI..ctb.a-
s", '''''''''!lP'O!~''''l>lo:'ht'''''' Pi'l"''''''' MlIy llI!",. .......<ml!llO'i:no( "".,., /lIdI""-'~ ~aI C<l/'.;"'Jtttt1
<,.,.,110:1 lnal3ny :1I:!'aIIo11l~" or c.or'I'1J<:llUf> ,,, .,......ent dec:t''1fI7 ''!l'CI''ll_1lO ~y 1.p'.;crrJacl is ~,'
COI'VliI'tfl. A lall.,'&'" 'Ie(f.1'I,.~w;""'~'~""J""'l.:>IUOE3'''y~"""" "'''''', l;;,j~of;ll&
iIIl~rom<ateda1esplded "~I te ctr.~~_ -".jtJ ~ ~~;i pr..sn-lhe ""<l"u"'l<!.'oC} ~ i:l
II1PfX~'b-~tlcl:l!!~ ~~f'1<'volkJ~ k; ,to.; ~.,,: t,,~> "'"'r "Jtlslzr~(tII~'l'F.~i eiJllJ 'laVe
OClI.I'ed.!f1C_,'!fYj:xr-l<'
/
~~
~
Thll ^-r./letlufe of P8l'/"IlIls 5~aII be lIar.: ~, doIl8l1 znd eMIlI. 8nd ~~.II be SI*i'IC"y ""r....ced Ie '"
aroo\/lIlc'\lIllIll Of ....ltlbl ~ allllo'~ma!llria:1 Mde~"'blISUll""ed Wi.. '85il'l<'
:.0 e'XltlIr.lcl"".cbll"l'.idM lor a ""_.. of......"., I>fII'I!IOI1l$lDbema;eby'" """"Of _18:1fl ,~. ~
.:Iltd.....01 1l8yfll8hI. :Clle~ Ie "(>00f1Ir~l'y a pen(lll\ll' er.tiIy 10 w!lclmlt.ec:lllIlar.lrJ' lMer':1,
to MI'Q'l11le right'" "".11'(111I8 owr... s (Y. "~a.'I' s mon'Jlly 08tmtflls. 1110 OIY:nefIiS tel8tnt<l 10 ., 'h.,
~_1l1epaymer.ta" bedlsbvrsedll\'''' i1SlIIC}-8Ilff1lCll~~"'lffl".slObe_"""",
_:I'lenanl.
(I) Th. _~i lllal' UIIc ll1et I/PIIII Sll'trllCtOry PiIYlI1IIIl bttllll milde ~~ any porlIop Of !he ,..,.~
l)lIrfcrmeG. fleQllltJa!;lrJr5llallpnorlO ant f\,~ papnenlbeillOmadII. ftmillllOltIe llnlr conltll:~ng lor
II>e tomeL~orl"""'j"'l ~1.h.:I iI'ld una)r1~.ttINM!Ion: ...""",,or 1'1eCh8nic.I'p'r
jIllflU"," 10 SettIo, ~I" otrltQ,<jJ Code. (or 'hllIptrt~n -YL'" oN:lrII ron'hldll)eftn8nt"85*" fIl8I1e
(I) The AJquIrell1ell!s of 5IIIldIvi~;o:,s (d!, Ie) flld (II !tIlIIIlIOlllPPlY ""en"" CO/III",t ptO',idoo let ~_.
eon!rlt:torlO -...... apc~..., Daymont -.Ilen llldeomr:"1ion 1>0111. bar,,; OlpIi..'ert. 0" .,."
Clllllrof~by"RegisqrofConlr1lt1ln -'9 ~1~Md~oI"'OlnInlc1 er~
Ihf IlcI'$ or fOIrI 0011\101 I$Cl.. ",^,oslNlcl by lIle cr.llll'<l<"". or....n~... c_. _ 'or Alllll'Y"'fnf kl toO
1I1IIl& upor Of tor . seht4u/e of oayMen151O ~ a!:er S~llCro.'Y CU'll\lll!ton 0' tt:. PlOlef.l I,~
co""acl s/!8I!cor.l.1lll1n cIoHpm...,.., h file S'l1r8!Vres O!~_ fIltlconl:lIdr,' a notlce II ~lleilSl '()
J)Cint ~ypeSlaling ".. 1ll$ - c.lenln' "'" ','Ie,;glll ~ """"" tilt CGr'JaCIO" 10 11M .perforMance ......
1"'I'.......lbo<1d.
rhl Nc.J(.ra OfchangeJ,)'de< WOf!r :;hal ill! 'I!q~1,..: 10... petfO'ftl8d ;yjt.OUI,:ricrw:itle~ ald/lo<iulr<:"
)1'" pe.'$l;~corl'al:fnG!tr '''Ctlr~tr\don of 1'I8~:ll<'e 1Mr;"OYlFlltllt Cf $WI"...... pool My e!'IIlge.or~
~ r.vC~"'.l<Ird_shall ~ t<V:crlll:rare.1'. -ll<Jcnma~"''''acont'act
(I) "lfle_II.,1 pew_ b. paymenl~1 a 1-.....'01.Sr:orM'~ionOlltolll<ccontract pr'CfII'::Jf
Day"*""''' be madII~".pm:ale lleIII ;f\ plqlIlf1iCr to Ihtt sd'e<1ultof gay_ ..... ~ tIleeQrl\:1C\co;
by IlledistllnlllO pIIly III a:ordanoe'lllttr IlilllIvisIon {ei
(I) Thclanguloaolflenobrequinld;lllrlWlll" Serb rolSS
IJq WIlaI~"""" CUbclanIiaI ~I 01-'< p'MU8l1IIo Ihe conIract.
1Il .~ MlIoe 1Ittl raitrl1t l'!' "'_tr~ willwllawlllf _..., '" subslMl.ally """-WG.... wdho,
20 a~ "on: !he 1ll,...,....lIltt _ >\P'I:.lled In 11>0 c'l,'riCl flIMln _ wl/l ClIgirI is a vlOltllon 011....
Con:ra::lars LicI!r1IIe llIw.
(rIlllllhe c:onIrlCl ptOVlcIll$tor a CQr.t'VCtof 10 hrn'~h joint COC\I"". !be "'flhcIor "'fll ~O! havll8'ly
Inane/II<< OlI1erm,**,1 if.... joint COt''-'''.
A '8i!urltbylbe:xlfl/rlCl(Jr wIIIoaIllIWIIA lllCtu..1o subltln5llly toI\1nlIfIeeWOlk ",nllin 23d8J'1'llI'\ t~!
ajlOl'OXi<na(e;1_ $DllCiIIed iq!be contracl wile" _k WIll btgI~ 's . >~ of"', "don
ThIs seeIo:lS""'noIbeconslruedtopro/lillillhtPrie5Da~I__ICfClnftClrro.,,~
lDaeo<*acIOlICl:ll." s.ubjectUlChapler I (COIm1eIICIflgwlill SecDlIP~llolT,lte 2~Perl401~r
3 01 !he Qwii Code
The ..,;,"'9 'IlII' alwcon.... ctlltrm*" "ll1Hd (0 by l!le p31~ to 'IIG<<",,~ T11U.ri1ir.9 shill hi'
legillle IIIl<l shllfle ilia fatm Illa! cIefJ1y dNer-lJIl;'olllerdoc........ ."":11" 10 be '.C01lOlalr.l i"" ~....
CllIl1rIa. tnd beIln any WIIIlt is 1IofIf<. 1he_5/I8tI bftfumjpMd l<:q)y allfte lII\llen ~ slofled
by lhe canQclat
=et_ oflttlc secllcn. !1Ie\)Q~s/IaII. OJ ~,deIl!niMWlletCll'l$~lble!I...,O'.lII_JI
_X'Cus.. ~
Tlwl provitialls 01"" sectool,.. ~fll<Clusivl! IIId 10 'MlI :elievc IIle cor.nclorOl8ly \lOIIlract subject
10 "bOlll tornjIIi_ willI_' n.... app'ir;8b;tt prt;YiOOn!i olthe IlIW
,. 'IIO'i1!illllolthlulI'lor1 by.I_. or .parson ~10118lico!1nSllll. Uf'\Jr ~""_. hit; or he'
:Il)l'Ill. OI~. a~ plJ"""aIJItolly a !\neat r.t~ 'tlIiS 1han 008 ~J'ldreddolltl! (SIO'l)110'
""'" tnan 'NwIllovS3f'oCl ($!;.OOOlorby 1ll~1 in 1het>>>1ly 1JJI'l1Olexceedlrganeyear. (It by bc'IIll'.ort
tN!'IIllI'llU"Olll1flll
(nl Ally ~"- noI8lea VlIa ~eclioo as parlor a tJ/aI''ll' ,.;~.el1lllO<l.hud anow:wafa re!;.-Jen!lal
o' """'Wo!nltJlllfuclllre.IIlClt-(I"!l8l'1Ob-.le~orl'lll"oJf;r:I"nfd/lcme ;"co!'flD:floo 18'lh!he offer,..
~ ;)1-., 1O"'$Irut1';'lllo<~.....e~ec:; by"","" dlllIItle,. "'lifIbe~ by"'" COUr1Io
m....fulres.Mion Iollle -"allllon t~ejle"SOrl'$ ailIlry to P'IY. Mr.t!lIned ir $lbJw'crl (elol S'lcl'~
11C3.1b 011"" p.... Code In wJdtI;on 10 M1""~lvbl>, ar>::omor'ilO'll"'tlldllMlor!le:Jcr lfI:s soctic~.IheC<lUr
may imoo!l'l a h III 00: '."lIla'llive ~lJl\dfae doil." (Stil-'tl\ N)f '1'1()'" I.." :wnnIY'~"'IMusa"<l r.')ll""
($15 'lOO:b_\IWltllldtll!llll~r, 'IIltltylolPlIy. filii fUbcf" ;ior'ar.~'~ kl'd1L.Jldillll'te''or wf1itr1.
:.Iata 0' e~ ;, prodItll1(!(J by lito Go--'f"'Vll j)<1"WlI'lllO ~lion 1I6l5of IIIe ('"em"",r' I".IX1e C' f<:'
,,1'iCh J'1 errllllthCy t'lmlJOf d1,..". i$ Ct'r.fereo by I~e '>resrderl~ ollhe l)n,ted SL'~
~j~t"rhsWl1~"", Ol!lerIl'Jv';!Qr oIl8wloi"lClJ"1;JJ'Y. 1\1I rn'r.lmonI fJ/ "llrrfl8liorl '~aRlleb'~~.
u' ~ cnmplailll t*",. 'or IW,Ia:io1l ~1\1lI> ,or.I""'. -.rrt~in 11\_ 'f'J#ft, I,,,", l~elIeclive dote 01 I'M! C"OrlrllC'
I
I
CULBREATH ENGINEERING
EXHIBIT A-1
License # 805032
Contract.. I
Your r'9~f to carteel thiS tran.~1on "IUtIject to Provitlons contained In C.lffom~ CiVIl COde 18895 through 1689.13.
Cffteln ,rll1PCtions are not subject to cal'lClllUon under tflos proyt,' If h8v .
rlgM to canoel. contact CULBREATH ENGINEERiNG at 925-7~7.8~~" YOIJ e any queetfOOS reprdlng your
NOTICE OF CANCEI~LATlON
DATE. ,... 'f-cJ 7
(t).tt ofTnul!llliCtion)
YOM ".Y cotel "" trAIIIaCtIM "II"'. .., patalty Dr ohUpdoe, 1ritJU. three (3).. lnuinas daY' frona the
a.e date. "1'* taIKd. ,. _ ..... n...... .. Seller at )'MIl' residellct, In .....1ItiaJIy as pod conditien ..,
wbn recd*. an)' podt "end ..,.. _der.... ceetnct or nle, or,.. .." if you wi", coeply MI' the
"ltl'llCtlons fill" Seller repnlDI tile ..... __.. fII tile ... 8' tile lder', ape8It IItd ritk. If,., do...ke
the llOOtk ."ailaltle to tile SeDer .. 1Iae Seller doll IItt pick ... ., .nf... 20 dayl or the date fA 1'JUr lt4)tfce of
clllCellattoa, )'011 ....,. retain or ....... ef tile .... witIIelIt .y1llrtlltr oN""" If YOII fall to lUke tile ....
ava"'" to the SeDer. or if ,.. .... lit ,..... tile ..... Ie tM Seller .. fall ..... lOt theJa 1011 rem.i. liable ror
perfannence d .. obIIgetIons W'lcfer oontroKt .
To ClInClltl thla transtlCtkm. mati or deliver. signed and deled copy of thla canc:eltIIIIcn notice, or any other written notlC, or tend
· tefegrem to: CUlBREATH ENGINEERING (Seller) at 187! AIbanl Pfece, BrentWood. CA. 94513 (Adlfrns 01 Se\len Office)
not later d1IIa midaight oP .
0-7-07
-<0*)
1 hereby cancel this tranaa/::tioo_
(DR)
(Sipatwe of Owner or Authorized Apn')
. ( TheM bin, to be rillfld in by CULBREATH ENGINEERING)
.. ( 9USine1t day meena lIflY calendar dIy except S~ end thtldlowlnv buaIness hOlId8yt: New Yen Day, WaShington'!>
BIi1hd8y. Memorial Day, Independ8nc:e Day, labor O-V. V....,.. Oey, ~ Day end Chrlstmes Day, )
WAIVER RIGHT TO CANCEL
HIMng InIlieted · COflIrAct in CQl"lnedlon WIl" ~ reptars or MlVICe, far the ~ pIOIeC8Qn of I)8l'WOnt or Iftt or .,...-acne' property. wit"
CCA.8AEAnt ENGlIlleERING. I hereby stale ttlal 'lie foIowing ~ .... ~ lmmedl"'~.
( 10 be IiIId In by Owner cr Autttortmd Agenr )
~
..
L n
I want theM SCJ'\lices performed immediately due to (IO be .ft.Uod in by Owner or Authort7.ed Apllt)
....H.
~suant to 8<<tion J 689.1 J of {be QItfOmiII CivtI c-~ I ac1aIOWIedIe ana hmlby waf\'" all ngbll to cancel the ale \\l1Jim
thtee (3) days.
(Date)
(Sipatun: of Owner or Authorized Agent)
rlUNTNAME
AddreS!l __~.____________ _.______ ....____
City. State. Zip _____.________
I
j
J