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

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

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

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

5. Options 5 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?