Fort Ord Reuse Authority (FORA) Environmental Services Cooperative Agreement (ESCA) Remediation Program (RP)

1. Fort Ord Reuse Authority (FORA)Environmental Services Cooperative Agreement (ESCA)Remediation Program (RP) FORA EnvironmentalLiability Insurance Presentation by: Barry Steinberg, Kutak Rock April 12, 2013 – Board of Directors Meeting 1

2. Current PLL Coverage • Coverage includes: • Cleanup costs(including investigation) • Personal injury/property damage • Defense costs • Coverage for: • Explosive risk/MEC • Other pollution conditions 2

3. Current Policy Terms and Conditions • Ten-Year Term • $100M • Expiration 31 DEC 2014 • Named insured – FORA • Additional named insured – local land owning jurisdictions • Developers – portions of jurisdictions’ coverage 3

4. Impact of Coverage Expiration • Self-insured/uninsured • Limited funds available from ESCA Grant • Loss of continuity of coverage upon property transfer • MEC event – very low likelihood, catastrophic consequences 4

5. Options • Go naked! – general fund risk • Use remaining PLL ESCA grant funds to help purchase new policy • Ten-year policy will permit continuity of coverage for land-holding jurisdictions after FORA demise • Single policy avoids cross-border disputes • Reduced limits? 5