Homeowner Communication - July 6, 2010

Dear Homeowner:

I hope you and your family had a wonderful Fourth of July holiday. It is truly a special time for our country.

Since our last update, we have been working closely with the Rivermist HOA to advance final approvals for the retaining wall plans. Additionally, our team continues to make progress on the site preparation work as we ready the area for the upcoming retaining wall construction. The purpose of this letter is to update you on our progress in both of these important areas.

Plan Review Process
We are pleased to report that the team of third-party engineering experts has completed its comprehensive analysis of the retaining wall plans, allowing us to submit these plans to the Rivermist HOA and the City of San Antonio last week. Once the plans are approved by the HOA and permitted by the City of San Antonio, we can immediately begin construction of the new pier-panel retaining wall. An animation of the wall can be found at rivermistinfo.com.

Storm Drain Repaired
As you know, during the January slope failure, the storm drain for Treewell Glen and surrounding streets was damaged. While the drain has been undergoing repairs, we have pumped excess rainwater into temporary drainage swales within the area. We can report that the drain has been repaired and that pumping is no longer necessary. All excess water will now drain through the rebuilt underground infrastructure.

Continued Site Preparatory Work
With the drain repaired, we can finish construction of the “bench” that will support the drilling equipment required for installation of the wall piers in the slope. We have constructed approximately 50 percent of the bench and should complete the project within the next two weeks. Once the site preparation work is complete and the approvals/permits received, we can move immediately to begin construction of the new retaining wall.

Again, thank you for your continued patience and support. As always, feel free to contact me with any questions or concerns at rivermist@centex.com.

Sincerely,

Laurin Darnell

Homeowner Communication - June 18, 2010

Dear Homeowner:

You have probably noticed that Centex has begun preparing the site for construction of the new retaining wall. You may also know from recent news reports that we continue collecting and analyzing data regarding the wall design in response to requests for additional information from the Rivermist Homeowners Association (HOA) engineers. The purpose of this letter is to provide you with a status report on these concurrent efforts.

Site preparation
Centex received approval June 7 from the City of San Antonio and the Rivermist HOA to immediately begin the preparatory work that will ready the area for the new multi-million dollar pier panel wall system. The site work is anticipated to take approximately four weeks, barring any additional weather delays. We are currently working approximately ten hours per day, five days per week. We appreciate your patience and apologize for any inconvenience the work may cause you. The site preparation allows our team to get a head start on constructing the new wall while engineers from Centex, the City and the HOA continue to review the wall design plans.

Plan review process
At a May 21 meeting between Centex, the City and the HOA, Centex was asked to provide more data regarding the engineering design of the proposed wall (an animation of which may be viewed at rivermistinfo.com). Centex continues to collect and supply this additional information and has enlisted the help of an additional third-party expert, Garry Gregory, P.E., Ph.D., of Oklahoma State University. Dr. Gregory is the author of modeling software widely used to measure slope stability. This additional data analysis, which follows the peer reviews by experts from the University of Texas at Austin, University of Illinois at Champagne-Urbana, Terracon Consultants, Inc. and the HOA’s engineering consultants, is expected to take an additional four weeks. If all goes according to plan, Dr. Gregory’s review will be completed at approximately the same time the site work is finished, allowing Centex to submit a final design plan to the City and HOA for approval.

Realtor outreach
As I mentioned in our May 27 letter, we continue to welcome new neighbors to the community.  Since the January 24 slope failure, Centex has sold 15 new homes between the three Rivermist communities, all at prices consistent with sales before the slope failure. We’ve also begun an effort to educate realtors on our plans to rebuild the wall. After several meetings with large brokerages that specialize in this area, we’ve gotten positive feedback that the Rivermist communities remain highly desirable and marketable.

Again, thank you for your continued patience and support. As always, feel free to contact me with any questions or concerns at rivermist@centex.com.

Sincerely,
Laurin Darnell

Homeowner Communication - May 1, 2010

Dear Homeowner,

I am pleased to report that the slope stabilization is officially complete. More than 130 stabilization piers were inserted into the slope over the last few months. The 30 foot-deep piers were installed vertically in a grid pattern across the slope to increase resistance to slope movement. Although the slope was temporarily stabilized following the January 24 failure, third-party engineers advised Centex to install the stabilization piers as an added measure to reinforce the failed slope area. The image below is of the final pier being installed.

Additionally, I wanted to let you know we have completed the engineering plans for the new retaining wall system in the Hills of Rivermist community.

Our design plans were completed earlier this week, and while we’ve been targeting an April 30th submission date, we are allowing a few additional days to ensure a thorough peer review process by nationally recognized third-party experts. Taking the time necessary to conduct this rigorous review process will provide the best permanent solution for the community - a solution in which you, the homeowner, can have the highest degree of confidence.

The design was produced by Craig Olden, Inc., a Texas-based industry leader with 35 years experience in the design and construction of retention systems.

The plans are now undergoing a rigorous peer review by multiple third-party experts, including:

• Terracon Consultants, Inc., a geotechnical engineering firm retained by Centex after the Jan. 24 slope failure
• Reed Engineering Group, a geotechnical engineering firm based in Dallas
• Stephen G. Wright, Ph.D, an expert in geotechnical engineering, soil mechanics and slope stability at The University of Texas at Austin’s Cockrell School of Engineering
• Timothy D. Stark, Ph.D, an expert in soil mechanics, foundation engineering and the stability of natural and manmade slopes at the University of Illinois at Urbana-Champaign

Upon completion of the peer-review, the plans will be submitted to the City of San Antonio as part of Centex’s permit application. The plans will also be provided to the Rivermist Homeowners Association, which has retained attorneys and consultants to review the plans on homeowners’ behalf.

We propose building a multi-million dollar pier-panel wall system, including concrete piers drilled deep into the ground and steel-reinforced concrete panels spanning the piers above ground. A video animation of the wall may be viewed at rivermistinfo.com.

Pending the issuance of a permit by the City of San Antonio, we expect to begin construction within two to three weeks. The wall will take an estimated six months to complete.

As always, please feel free to contact me with questions or concerns at rivermist@centex.com.

Sincerely,

Laurin Darnell

Homeowner Communication - April 19, 2010

Dear Rivermist Homeowner:

I am pleased to report that despite the heavy rain this past week, the slope held up well, indicating that the stabilization is working as intended. We are nearly finished installing 120 steel and concrete piers in the ground throughout the area where the slope failed. The 30 foot-deep piers are installed vertically in a grid pattern across the slope to increase resistance to slope movement. We’ll gather new data this week to verify our observations.

Some of you have voiced concern about the water that accumulated on Treewell Glen during the storms. The storm drain pipe that conveys captured water runoff from Treewell Glen and delivers it to a nearby creek was damaged during the slope failure and rendered inoperable. To temporarily accommodate runoff until the pipe is fixed, the water is being pumped into a temporary channel that connects to existing, undamaged drainage infrastructure.

During the heaviest parts of the rain event, runoff accumulated on Treewell Glen until the pumps could catch up. No damage occurred, and Treewell Glen was passable at all times. Contract crews were on site Saturday and Sunday, and additional pumps were brought in specifically to manage the heavy runoff. These pumps will be left on site for the next few weeks. Once the design for the new wall is approved by the City of San Antonio, we will move forward with a permanent drainage improvement. Thank you for your patience and understanding.

As always, if you have questions and comments, please e-mail me at rivermist@centex.com.

Sincerely,

Laurin Darnell
Centex Homes

Homeowner Communication - April 6, 2010

Initial section of the wall to be removed on April 7

Dear Homeowner,

There’s been a lot going on this past week as Centex continues to make progress toward implementing the solution for the Rivermist communities.

To date, approximately 50 of the 120 stabilizing piers have been installed below the surface level and across the slope failure area. At this pace, we expect to be completed by our original target date of 30 days (April 16th). As we previously stated, these piers stabilize the area so that soil and damaged portions of the wall can be removed; and we can begin the process of building the new wall.

Starting tomorrow morning, we will begin work on removing large portions of the failed wall. Removal will coincide with the pier placement as we move from a north to south direction. During this time, Centex will also repair damage on the sewer line. As you may or may not recall, the sewer is currently pumped out of a manhole on Treewell Glen. This will now eliminate the need for a SAWS vacuum truck to visit Treewell Glen multiple times a day.

Additionally, Centex is working with the City regarding the removal of the live oak trees in the affected area. We will obtain the necessary approvals and permits. These trees will be mitigated with new plantings within the community.

Lastly, Centex continues to make progress to complete design and engineering plans for a pier-panel wall system by April 30. If City approval is received on April 30th, construction of the new retaining wall could start in early May and will last approximately 4-6 months from construction start. Click here to view initial design concepts.

As always, if you have questions and comments, please e-mail me at Rivermist@centex.com.

Sincerely,
Laurin Darnell

Homeowner Communication - March 18, 2010

Dear Homeowner:

Today, Centex met with City officials today to review the independent engineer’s design concepts to repair the slope and retaining wall at Rivermist.

As you know, Centex announced last week that a new retaining wall will be built across the entire length of the slope below the street of Treewell Glen.

Presented today were preliminary design plans for a pier paneled wall system which consists of reinforced concrete piers driven to a depth ranging from 10 to 30 feet below the ground surface and reinforced concrete panels between the piers. The piers will be placed approximately 8 to 12 feet apart along the length of the wall and there are measures taken into consideration to collect water and drain it away from behind the wall.

The City’s initial feedback indicates the pier panel wall system seems to be the appropriate design for long-term slope stabilization. With this preliminary feedback, we intend to work toward final design and engineering of the new wall. We expect to finalize that approval process by April 30. If approvals are obtained by then, construction of the new wall system could begin as early as mid-May.

As always, we will keep you updated via www.rivermistinfo.com as the work progresses.

Sincerely,

Laurin Darnell
Centex Homes