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HomeMy WebLinkAboutThe Pointe at Newport Ridge Leaf Blower DocumentsRESOLUTION NO. _001_ A RESOLUTION OF THE BOARD OF DIRECTORS OF THE POINTE AT NEWPORT RIDGE COMMUNITY ASSOCIATION PERTAINING TO CITY RESTRICTIONS ON GAS-POWERED LEAF BLOWERS IN RESIDENTIAL ZONES WHEREAS, The Pointe at Newport Ridge Community Association is the association of a common interest development located within the boundaries of the City of Newport Beach; and WHEREAS, the City Council of the City of Newport Beach has adopted Ordinance No. 2011-12, which amends Newport Beach Municipal Code ("NBMC") section 6.04.055 (Leaf Blowers) to prohibit, with certain exceptions, the use of gas-powered leaf blowers in all residential districts within the City effective November 11, 2011; and WHEREAS, Ordinance No. 2011-12 finds and declares that common interest developments of five or more dwelling units that have an association responsible for establishing regulations contrOlling the management and maintenance of exterior common areas and separate interests have adopted, or have the ability to adopt, self-imposed regulations that establish a regulatory framework addressing the exterior residential environment, and such regulatory frameworks can be used by common interest developments of five or more dwelling units to more closely address neighborhood impacts of gas-powered leaf blowers within such developments; and WHEREAS, Ordinance No. 2011-12 states that the City Council wishes to prohibit the use of gas-powered leaf blowers in all residential districts except by certain public employees or contractors acting in the scope of their employment, and in residential common interest developments of five or more dwelling units that have an association with the power to establish rules and regulations for the management and maintenance of exterior common areas and separate interests. WHEREAS, NBMC section 6.04.055 states that residential common interest developments of five or more dwelling units that have an association with the power to establish rules and regulations for the management and maintenance of exterior common areas and separate interests may, by the method set out in their association's rules and regulations, choose to be exempt from the restrictions on gas-powered leaf blowers; and WHEREAS, NBMC section 6.04.055 provides that the City Manager's Office shall establish procedures through which such residential common interest developments may demonstrate their decision to be exempt from subsection 6.04.055 .B.3.; and WHEREAS, the Newport Beach City Manager's Office has determined that any residential common interest development of five or more dwelling units that has an association with the power to establish rules and regulations for the management and maintenance of exterior common areas and separate interests may demonstrate its decision to be exempt from the City's restrictions on gas-powered leaf blowers in residential districts through a resolution of its Board of Directors of; and WHEREAS; The Pointe at Newport Ridge Community Association is the association for the common interest development known as The Pointe at Newport Ridge, which is a common interest development of five or more dwelling units, and which has the power to establish rules and regulations for the management and maintenance of exterior common areas and separate areas through its operational rules; and WHEREAS, the Board of the Directors of The Pointe at Newport Ridge Community Association has been granted the power to make decisions for the proper conduct and administration of the affairs of The Pointe at Newport Ridge Community Association by the CC&R's and the By-Laws governing the Association. NOW, THEREFORE, the Board of Directors of The Pointe at Newport Ridge Community Association resolves as follows: 1. The Board of Directors of The Pointe at Newport Ridge Community Association has determined that it is in the best interests of The Pointe at Newport Ridge to be exempt from the Newport Beach Municipal Code's prohibition on the use of gas- powered leaf blowers in residential districts . 2. The Board of Directors of The Pointe at Newport Ridge Community Association has decided, by majority vote, to exempt The Pointe at Newport Ridge from the provisions of Newport Beach MuniCipal Code section 6.04.055.B.1. IN WITNESS WHEREOF, the undersigned, President of the Board of Directors, has executed this Resolution this 24th day of April, 2012. THE OINTE AT NEWPORT RIDGE COMMUNITY ASSOCIATION ATTENTION: IN ORDER TO ENJOY THE PEACE & QUIET OF YOUR HOMES….. USE OF LEAF BLOWERS, MOWERS & POWER EQUIPMENT IS PERMITTED ON MON. –FRI. 8A.M. TO 5:30 P.M. AND SAT. - 9 A.M TO 1 P.M. ONLY / '. BYLAWS OF THE POINTE AT NEWPORT RIDGE ASSOCIATION Table of Contents ARTICLE I -NAME AND LOCATION 1 ARTICLE II -DEFINITIONS .................... : . . . . . . . . . . . . .. 1 , ARTICLE III -MEETINGS OF THE MAINTENANCE ASSOCIATION . . . . . . . .. 1 Section 3.01 -Annual Meetings. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 Section 3.02 -Place of Meeting ............................. 1 Section 3.03 -Special Meetings. . . . . . . . . . . . . . . . . . . . . . . . .. . . .. 1 Section 3.04 -Notice of Meetings ............................ 2 Section 3.05 -Meetings .................................. 3 Section 3.06 -Quorum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 Section 3.07 -Approval of the Members ........................ 3 Section 3.08 -Action Without Meeting ......................... 4 Section 3.09 -Proxies ................................... 4' Section 3.10 -Vote by Proxy or Written Ballot .................... 5 ARTICLE IV -ELECTION OF DIRECTORS ......................... 5 Section 4.01 -Number and Qualification ........................ 5 Section 4.02 -Election and Term . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 Section 4.03 -Nomination and Election Procedures . . . . . . . . . . . . . . . . .. 6 Section 4.04 -Cumulative Voting ............................ 6 Section 4.05 -Removal of Directors . . . . . . . . . . . . . . . . . . . . . . . . . .. 6 Section 4.06 -Vacancies .. ; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Section 4.07 -Special Voting Rights . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 ARTICLE V -APPOINTMENT OF DELEGATE . . . . . . . . . . . . . . . . . . . . . .. 7 Section 5.01 -Establishment of Delegate District ................... 7 Section 5.02 -Appointment of Delegates ........................ 7 ARTICLE VI -MEETINGS OF THE BOARD Section 6.01 -Regular Meetings ............................. 8 Section 6.02 -Special Meetings. . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 Section 6.03 -Place of Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 Section 6.04 -Notice of Meetings .............................. 8 Section 6.05 -Adjournment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9 Section 6.06 -Waiver of Notice ............................. 9 Section 6.07 -Quorum .......... ' . . . . . . . . . . . . . . . . . . . . . . . .. 9 Section 6.08 -Attendance by Members ......................... 9 Section 6.09 -Action Without Meeting ......................... 10 Section 6.10 -Telephonic Attendance ... . . . . . . . . . . . . . . . . . . . . . .. 10 04-19-93 10532-00045 L: \DOC\302\93020041 .2nd i ( ARTICLE VII -POWERS, DUTIES AND LIMITATIONS ................. 10 Section 7.01 -Powers and Duties ............................ 10 Section 7.02 -General Limitations and Restrictions ................ " 12 Section 7.03 -Additional Contractual Restrictions ... ~ ............. " 13 Section 7.04 -Record Date ................................ 14 Section 7.05 -Contracts; How Executed ........................ 14 Section 7.06 -Indemnification .............................. 14 Section 7.07 -Appointment of Committees . . . . . . . . . . . . . . . . . . . . . .. 15 Section 7.08 -Officer and Director Liability . . .. . . . . . . . . . . . . . . . . .. 16 ARTICLE vrn -OFFICERS .................. ~ . . . . . . . . . . . . . . .. 16 Section 8.01 -Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 16 Section 8.02 -Election .......•........... -. . . . . . . . . . . . . . .. 17 Section 8.03 -Subordinate Officers ............ ~ . . . . . . . . . . . . .. 17 Section 8.04 -Removal and Resignation ................ '. . . . . . .. 17 Section 8.05 -Vacancies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17 Section 8.06 -President .............................. _. ~ .. __ 17 Section 8.07 -Vice President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17 Section 8.08 -Secretary .............................. ;. -. .-17 Section 8.09 ": Chief Financial Officer . . . . . . . . . . . . . . . . . . . . . . . . .. 18 ARTICLE IX -FINANCIAL STATEMENTS AND INFORMATION. . . . . . . . . .. 18 Section 9.01 -Budgets, Financial Statements and Documents ............ 18 Section 9.02 -Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 19 Section 9.03 -Statement at Accounting Date . . . . . . . . . . . . . . . . . . . . .• 19· Section 9.04 -Review of Accounts ........................ -. . .• 19 Section 9.05 -Withdrawal From Reserves ................. ~ .. . •. 20 Section 9.06 -Use of Reserve Funds .......................... 20 Section 9; 07 -Reserve Account Study . . . . . . . . . . . . . . . . . . . . . . . . .. 20 ARTICLE X -INSPECTION OF RECORDS . '. . . . . . . . • . . . . . . . . . . . . . . .. 21 Section 10.01 -Availability of Documents .....•................. 21 Section 10.02 -Rules For Inspection. . . . . . . . . . . . • . . . . . . . . . . . . .. 22 Section 10.03 -Inspection By Directors ... _ . . . . . . . . . . . . . . . . . . . . .. 22 ARTICLE XI -DISCIPLINE OF MEMBERS ......................... 22 Section 11.01 -Maintenance Association Rules; Penalty Assessments ....... 22 Section 11.02 -Enforcement ............................... 23 ARTICLE XII -AMENDMENT PROVISIONS ........................ 24 Section 12.01 -Powers of Members . . . . . . . . . . . . . . . . . . . . . . . . . .. 24 Section 12.02 -Record of Amendments . . . . . . . . . . . . . . . . . . . . . . . .. 25 ARTICLE XIll -MISCELLANEOUS .............................. 25 Section 13.01 -Singular Includes Plural ... ~ .. -. . . . . . . . . . . . . . . . . .. 25 Section 13.02 -Fiscal Year ................................ 25 04-19-93 10532.-00045 L: \DOC\302\9302004 1 • 2nd ii (' BYLAWS OF THE POINTE AT NEWPORT RIDGE ASSOCIATION ARTICLE I NAME AND LOCATION The name of this corporation is The Pointe at Newport Ridge Association. The county in the State of California where the principal office for the transaction of the business of the Maintenance Association is located is the County-of Orange. The principal office is hereby fixed and located within the Covered Property, or as close thereto as practicable in the County. The Board is hereby granted full power and authority to change said principal office from one location to another within the County. ARTICLE II DEFINITIONS All terms as used in these Bylaws shall, unless stated otherwise herein,. be defined as set forth in that certain Declaration of Covenants, Conditions and Restrictions which defines the Maintenance Association named herein in the Article thereof entitled "Definitions· and which has been or will be recorded by Standard Pacific Corp., a Delaware corporation, in the Official Records, and anr amendments thereto (the "Declaration·). All of the terms and provisions of said Declaration and any amendments thereto are hereby incorporated herein by reference. ARIICLEill MEETINGS OF THE MAINTENANCE ASSOCIATION Section 3.01 -Annual Meetings. Regular meetings of the Maintenance Association shall be held not less than once each calendar year at a time and place fixed by the Board pursuant to the provisions of the Bylaws. The first meeting of the Maintenance Association, which shall be the first annual meeting, shall be held not later than forty-five (45) days after Close of Escrow has occurred on fifty-one percent (51 %) of the Residences located in the First Phase provided that the Final Subdivision Public Report covering the First Phase authorizes the sale of at least fifty (50) Residences. However, notwithstanding the foregoing, in no event shall the first annual meeting of the Maintenance Association be held later than six (6) months after the first Close of Escrow. Each subsequent regular annual meeting of the Maintenance Association shall be held on or about the date of the annual meeting of the Delegate Districts of the Master Association. Section 3.02 -Place of Meeting. All meetings of the Maintenance Association shall be held within the Covered Property or at a meeting place as close thereto as possible as may be fixed from time to time by resolution of the Board. Unless unusual conditions exist, Maintenance Association meetings shall not be held outside of the County. Section 3.03 -Special Meetings. Special meetings of the Maintenance Association for any purpose shall be called at any time by resolution of the Board or upon receipt by the 04-19-93 10532-00045 L: \POC\302\93020041.2nd president, vice president or secretary of a written request for a special meeting signed by Members representing at least five percent (5 %) of the total voting power of the Maintenance Association. Section 3.04 -Notice of Meetings. (a) Upon request in writing to the president, vice president, or secretary by any persons representing at least five percent (5 %) of the total voting power of the Maintenance Association, the officer forthwith shall cause notice to be given to the Members entitled to vote within twenty (20) days after receipt of the request for the special meeting that a meeting will be held at a time fixed by the Board which meeting shall be not less than thirty-five (35) nor more than ninety (90) days after the receipt of the request. (b) Notwithstanding the foregoing, upon receipt of a petition demanding a meeting for the purpose of voting to override a decision of the Board or the failure of the Board to act in connection with the Article entitled "Enforcement of Bonded Obligations" of the Declaration, such meeting shall be held in any event not less than thirty-five (35) days nor more than forty-five (45) days after receipt by the Board of such petition for the meeting. (c) Subject to the limitations imposed under the foregoing provisions of this Section, written notice of meetings, annual or special, shall be given not less than ten (10) nor more than ninety (90) days before the date of the meeting to each Member who, on the record date for notice of the meeting, is entitled to vote thereat. Subject to the provisions of subparagraph (g) below, the notice shall state the place, date and time of the meeting and (I), in the case of a special meeting, the general nature of the business to be transacted and shall specify those matters that the Board intends to present for action by the Members and no other business may be transacted, or (2) in the case of the regular meeting, those matters which the Board, at the time the notice is given, intends to present for action by the Members but any proper matter may be presented at the meeting for action. The notice of any meeting at which directors are to be elected shall include the names of all those who are nominees at the time the notice is given to Members. (d) Written notice of meetings of the Maintenance Association, annual or special, shall be delivered in the manner prescribed in the Declaration to each Member entitled thereto. (e) When a meeting of the Maintenance Association is adjourned to another time or place, unless the Maintenance Association Management Documents otherwise require, notice need not be given of the adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken. No meeting may be adjourned for more than forty-five (45) days. At the adjourned meeting the M~ntenance Association may transact any business which might have been transacted at the original meeting. If after the adjournment a new record date is fixed for notice or voting, a notice of the adjourned meeting shall be given to each Member who, on the ~ecotd date for notice of the meeting, is entitled to vote at the meeting. (f) The transactions of any meeting of the Maintenance Association, however called and noticed, and wherever held, are as valid as though had at a meeting held after regular call and notice if a quorum is present, either in person or by proxy, and if, either before or after the meeting, each of the persons entitled to vote, not present in person or by proxy, signs a written waiver of notice or a consent to the holding of the meeting or an 04-19-93 10532-00045 L: \DOC\302\93020041 .2nd 2 ~. approval of the minutes thereof. All such waivers, consents and approvals shall be filed within the Maintenance Association records or made a part of the minutes of the meeting. Attendance of a Member at a meeting shall constitute a waiver of notice except when the Member objects at the beginning of the meeting to the transaction of any business because the meeting is not lawfully called or convened and except that attendance at a meeting is not a waiver of any right to object to the consideration of matters required by this Section to be included in the notice but not so included, if the objection is expressly made at the meeting. Neither the business to be transacted at nor the purpose of any regular or special meeting of the Maintenance Association need be specified in any written waiver of notice, consent to the holding of the meeting or approval of the minutes thereof, except as provided in subparagraph (g) below. . (g) Notwithstanding the foregoing, any approval of the Members required to remove a director without cause, to fill a vacancy on the Board, to ratify a transaction between the Maintenance Association and one or more of its directors, to approve amendments to the Articles, or to elect to voluntarily wind-up and dissolve the Maintenance Association, other than unanimous approval by those entitled to vote, shall be valid only if the general nature of the proposal so approved was stated in the notice of meeting or in any written waiver of notice. Section 3.05 -Meetings. Meetings of the Maintenance Association shall be conducted in accordance with a recognized system of parliamentary procedure or such parliamentary procedures as the Maintenance Association may adopt. Whenever two or more associations have consolidated any of their functions under a joint neighborhood association or similar organization, members of each participating association shall be entitled to attend all meetings of the joint association other than executive sessions, shall be given reasonable opportunity for participation in those meetings, and shall be entitled to the same access to the joint association's records as they are to the participating association's records. Section 3.06 -Quorum. The presence at the meeting of the Maintenance Association or proxies or any combination thereof entitled to cast a majority of the voting power of the Maintenance Association shall constitute a quorum for any action except as otherwise provided in the Maintenance Association Management Documents. The Members present at a duly called or held meeting at which a quorum is present may continue to transact business until adjournment, notwithstanding the withdrawal of enough Members to leave less than a quorum, if any action taken (other than adjournment) is approved by at least a majority of the voting power required to constitute a quorum. If any meeting cannot be held because a quorum is not present, the Members present, either in person or by proxy, may adjourn the meeting to a time not less than five (5) days nor more than thirty (30) days from the time the original meeting was called. The quorum requirements for such adjourned meeting shall be thirty-three and one-third percent (33-1/3 %) of the voting power of the Maintenance Association. If after the adjournment a new record date is fixed for notice or voting, a notice of the adjourned meeting shall be given to each Member who, on the record date for notice of the meeting, is entitled to vote at the meeting. When any meeting of the Maintenance Association, either annual or special, is .adjourned for any reason (includ~ng, without limitation, that a quorum was not present) for more than thirty (30) days or if the time and place for the adjourned meeting are not announced at the original meeting, or if a new date is fixed for the adjourned meeting after adjournment, notice of the time and place of the adjourned meeting shall be given in the manner prescribed for the original meeting. Section 3.07 -Approval of the Members. The voting rights of the Members are more particularly described in the Article entitled "The Maintenance Association" of the 04-19-93 10532-00045 L: \DOC\302\ 93020041 • 2nd 3 ( Declaration. Except where a greater portion of the voting power is required by the Maintenance Association Management Documents, a majority of the votes cast at a duly held meeting at which a quorum is 'present (which affirmative votes also constitute a majority of the required quorum) shall constitute approval of the Members and prevail at all meetings. Section 3.08 -Action Without Meeting. (a) Pursuant to Section 7513 of the California Corporations Code, any action which may be taken at a regular or special meeting of the Maintenance Association, except the election of directors, may be taken without a meeting if the Maintenance Association distributes a written ballot to every Member entitled to vote on the matter. Such ballot shall set forth the proposed action, provide an opportunity to specify approval or disapproval of any proposal, and provide a reasonable time within which to return the ballot to the Ma,intenance Association. . (b) Approval by written ballot pursuant to this Section shall be valid only when the number of votes cast by ballot within the specified time period equals or exceeds the quorum required to be present at a meeting authorizing the action, and the number of approvals equals or exceeds the number of votes that would be required to approve such action at a meeting at which the total number of votes cast was the same as the number of votes cast by ballot. ~ (c) Ballots shall be solicited in a manner consistent with the requirements of Sections 7511(b) and 7514 of the California Corporations Code as set forth in the Sections entitled "Notice of Meetings" and "Vote by Proxy or Written Ballot" of this Article of the Bylaws. All such solicitations shall indicate the number of responses needed to meet the . quorum requirement and shall state the percentage of approvals necessary to pass the measure submitted. The solicitation must specify the time by which the ballot must be received in order to be counted. (d) A written ballot may not be revoked. Section 3.09 -Proxies. (a) Every Member entitled to vote or execute consents shall have the right to do so either in person, or by an agent or agents authorized by a written proxy executed by such Member or his duly authorized agent and filed with the Secretary of the Maintenance Association; provided that no such proxy shall be valid after the expiration of eleven (11) months from the date of its execution unless otherwise provided in the proxy, except that the maximum term of any proxy shall be three (3) years from the date of execution. All proxies must satisfy the requirements of Section 7613 of the California Corporations Code. (b) Any revocable proxy concerning certain matters which require a vote of the Members is not valid as to such matters unless it sets forth the general nature of the matter to be voted on. These certain matters are as follows; (i) removal of a director without cause; (ii) filling vacancies on the Board created by removal of a director; (iii) approval of transactions involving directors; 04-19-93 10532-00045 L: \DOC\302\93020041 • 2nd 4 (' .. (iv) amendment of the Articles or Bylaws repealing, restricting, creating or expanding proxy rights; (v) sale, lease, conveyance, exchange, transfer or other disposition of all or substantially all of the assets of the Maintenance Association; (vi) merger of the Maintenance Association with another corporation; (vii) amendment of an agreement of merger; (viii) voluntary dissolution of the Maintenance Association; (ix) distribution of the Maintenance Association's assets upon dissolution. Section 3.10 -Vote by Proxy or Written Ballot. Any form of proxy or written ballot distributed by any person to the Members shall afford an opportunity on the proxy or written ballot to specify a choice between approval and disapproval of each matter or group of matters which, at the time the proxy or written ballot is distributed, are intended to be acted upon at the meeting for which the proxy is solicited or by such written ballot, except that it shall not be mandatory that a candidate for election to the Board be named in the proxy or written ballot. The proxy or written ballot shall provide, subject to reasonable specified conditions, that where the Member solicited specifies a choice with respect to any such matter the vote shall be cast in accordance therewith. The proxy shall also identify the . person or persons authorized to exercise the proxy and the length of time it will be valid. ARTICLE IV ELECTION OF DIRECTORS Section 4.01 -Number and Qualification. The Board shall consist of three (3) persons until the first annual meeting of the Maintenance Association unless the Board elects to increase the number of directors to five (5) at an earlier date. Thereafter, the Board shall consist of five (5) directors until changed by an amendment to this Section of these Bylaws. A person may serve as a director without being a Member. Section 4.02 -Election and Term. (a) Until the holding of the first annual meeting of the Maintenance Association the incorporator of the Maintenance Association may do whatever is necessary and proper to perfect the organization of the Maintenance Association, including the adoption of these Bylaws and the appointment of the first directors and officers. (b) All positions on the Board shall be fill~ at the first annual meeting. Qf the directors who are elected, the two (2) directors who received the lowest number of votes shall be elected to serve two (2) year terms and the remaining directors that are elected shall . be elected to serve four (4) year terms. (c) For as long as the Class B membership continues to exist, upon the expiration of such terms, all successor directors shall be elected to serve four (4) year terms. After the Class B Membership has been converted to Class A Membership, the first directors being 04-19-93 10532-00045 l: \DOC\302\9302004 1. 2nd 5 (' .. elected to replace directors whose terms have expired shall serve a one (1) year term. Upon the expiration of the terms of all directors thereafter, all successor directors shall be elected to serve two (2) year terms. . . (d) Election of directors shall be by secret written ballot. All directors, including directors elected to fill a vacancy, shall hold office until the expiration of the term for which elected and until a successor has been elected and qualified. Section 4.03 -Nomination and Election Procedures. Nominations to serve on the Board may be made by any Member present at a meeting in person or by proxy and may also be made by a committee appointed by the Board for that purpose in accordance with Section 7210 of the California Corporations Code as set forth in the Section entitled "Appointment of Committees" of Article VII of the Bylaws. Nominees shall be given an opportunity to communicate to the Members their qualifications and the reasons' for their candidacy and to solicit votes and Members shall be given a reasonable opportunity to choose among the nominees as required under the provisions of Section 7520 of the California Corporations Code. Section 4.04 -Cumulative Voting. Every Member entitled to vote for any election of directors shall have the right to cumulate his votes and give one candidate a number of votes equal to the number of directors to be elected, multiplied by the number of votes to which he is entitled, or to distribute his votes on the same principle among as many candidates as he shall think fit. The candidates receiving the highest number of votes up to the number of directors to be elected shall be elected. No Member shall be entitled to cumulate votes for a candidate or candidates unless such candidate's name or candidates' names have been placed in nomination prior to the voting and the Member either in person or by proxy has given notice at the meeting, prior to the voting, of the Member's intention to cumulate votes. If anyone Member has given such notice, all Members may cumulate their votes for candidates in nomination. Section 4.05 -_Removal of Directors. At any meeting of the Maintenance Association of which notice has been properly given as provided in these Bylaws, the entire Board or any individual director may be removed from office as hereinafter set forth, provided that the same notice of said meeting has also been given to said entire Board or any individual director whose removal is to be considered at said meeting. The entire Board or any individual director may be removed from office without cause by a majority of the votes cast in the voting on any motion or resolution for removal (if such affirmative votes also constitute a majority of the required quorum); provided, however, that if the Maintenance Association has a voting power of less than fifty (50) votes, then such removal must be approved by an affirmative vote of a majority of all the votes entitled to be cast. However, unless the entire Board is removed, an individual director shall not be removed prior to the expiration of his term of offiCe when the votes cast against removal, or not consenting in writing to such removal, would be sufficient to elect such director if voted cumulatively at an election at which the same total number of votes were cast and the entire number of directors authorized at the time of the most recent election of directors were then being elected. Upon any such motion or resolution for removal, every Member may cumulate his vote or votes, as the case may be, in the same manner as provided for the election of directors in these Bylaws. In the event that any or all directors are so removed, new directors may be elected at the same meeting. 04-19-93 10532-00045 l: \DOC\302\93020041 .2nd 6 ( Section 4.06 -Vacancies. A vacancy or vacancies shall be deemed to exist on the Board in case of the death, resignation or removal of any director. A vacancy shall also be deemed to exist if the authorized number of directors is increased at any meeting of the Maintenance Association and the additional directors needed to fill such positions to the Board are not elected at such meeting. Except for a vacancy created by the removal of a director, vacancies on the Board may be filled by approval of the Board or, if the number of directors then in office is less than a quorum, by (1) the unanimous written consent of the directors then in office, (2) the affirmative vote of a majority of the directors then in office at a meeting held pursuant to notice or waivers of notice complying with the notice requirements set forth in Section 7211 of the Corporations Code and the Section entitled "Notice of Meetings" of Article VI of the Bylaws, or (3) a sole remaining director. The Members may elect a director at any time to fill any vacancy not filled by the directors. Any director may resign effective upon giving written notice to the president, the secretary or the Board unless the notice specifies a later time for the effectiveness of such resignation. If the resignation is effective at a future time, a successor may be elected to take office when the resignation becomes effective. No reduction of the number of directors shall have the effect of removing any director prior to the expiration of his term of office. Section 4.07 -Special Voting Rights. Notwithstanding the provisions of this Article or any other provision of the Maintenance Association Management Documents, as long as there IS a Class B membership or the majority of the voting power of the Maintenance Association resides in the Declarant, not less than twenty percent (20%) of the total number of directors • shall have been elected by Members other than Declarant and any such director(s) may only be removed by the vote or written assent of a majority of the Members other than Declarant. Any vacancy caused by the death, resignation or removal of any such director shall be filled by a Class A Member appointed by the Board who shall serve until the vacancy can be filled by the vote of a majority of the voting power of the Members other than Declarant at any subsequent annual or special meeting of the Maintenance Association. ARTICLE V APPOINTMENT OF DELEGATE Section 5.01 -Establishment of Delegate District. All of the Covered Property shall be in one Delegate District in accordance with the provisions of Section 3.04 of the Bylaws of the Master Association. Provisions for notice and meetings of the members of the Delegate Districts and for the meetings of the Delegates are contained in the Master Association Management Documents. The Board shall use its best efforts to coordinate the meetings of the Delegate Districts with the meetings of the Maintenance Association in order to eliminate duplicate meetings. Section 5.02 -Appointment of Delegates. (a) Representing Delegate District. The Delegate elected by the Board as hereinafter provided in this Section of the Bylaws to represent the Owners other than Declarant within the Delegate District that is comprised of the Covered Property shall be a member of the Board. Immediately after the annual meeting of the Maintenance Association, the Board shall elect one of its members to represent the Owners other than 04-19-93 10532-00045 L:\DOC\302\93020041.2ncI 7 ( Declarant to serve a term of one year. A Delegate elected by the Board may be removed by the Board without cause and without notice by the affirmative vote of a majority of the votes of the members of the Board.' A vacancy shall also be deemed to exist in the event of the death, resignation, disqualification or removal of any such Delegate and a successor Delegate may be elected from the members of the Board to fill the vacancy for the remaining portion of the term by a majority of the voting power of the members of the Board. To the extent permitted by the Master Declaration, in the event that the Declarant elects not to appoint a Delegate to represent the Declarant, the Delegate elected by the Board pursuant to this subsection shall also represent the Declarant. (b) Representing Declarant. Any Delegate appointed by the Declarant may be removed with or without cause at any time and from time to time by the Declarant. To the extent permitted by the Master Association and the Master Declaration, a Delegate appointed by the Declarant may also be the Delegate elected by the Board to represent the Delegate District as long as such Delegate meets all qualifications for appointment. ARTICLE VI MEETINGS OF THE BOARD Section 6.01 -Regular Meetings. (a) Organizational Meeting. Immediately following each annual meeting of the Maintenance Association, the Board shall hold a regular meeting for the purpose of organization, election of officers and the transaction of other business. Notice of such meeting is hereby dispensed with. \. (b) Other Regular Meetings. Other regular meetings of the Board may be held without notice if the time and place of such meetings are fixed by resolution of the Board. In no event shall regular meetings of the Board be held less than once every six (6) months. Section 6.02 -Special Meetings. Special meetings of the Board for any purpose may be called at any time by written notice signed by the President, or by any two (2) directors other than the President. Section 6.03 -Place of Meetings. All meetings of the Board shall be held at a meeting place fixed by the Board from time to time. Such meeting place shall ordinarily be within the Covered Property unless in the judgment of the Board a larger meeting room is required than exists within the Covered Property in which case the meeting room selected shall be as close as possible to the Covered Property. Section 6.04 -Notice of Meetings. (a) Regular Meeting. Notice of the time and place of any regular meeting shall be communicated to directors not less than four (4) days prior to the meeting unless the time and place of such meeting has been fixed by resolution of the Board. A notice of the time and place of a regular meeting shall be posted at a prominent and accessible place or places . within the Nonexclusive Use Common Area not less than four (4) days prior to the meeting. If the Nonexclusive Use Common Area consists only of an easement or is otherwise unsuitable for posting of such notice, the Board shall communicate the notice of the time and place of such meeting by any means it deems appropriate. 04-19-93 10532-00045 L: \DOC\302\ 93020041 • 2nd 8 ( ( (b) Special Meeting. Written notice of the time and place of a special meeting and the nature of any special business to be considered thereat shall be either delivered personally to the directors or sent to each director by letter or by telegram, postage or charges prepaid, addressed to him at his address as it is shown upon the records of the Maintenance Association. In case such notice is delivered personally to the directors, such delivery must occur not less than seventy-two (72) hours prior to the scheduled time of the meeting. In case such notice is mailed or telegraphed, it shall be deposited in the United States Mail or delivered to the telegraph company at or near the place in which the principal office of the Maintenance Association is located at least four (4) days (if by mail) or seventy-two (72) hours (if by telegraph) prior to the scheduled time of the meeting. Such mailing, telegraphing or delivery as provided herein shall be due, legal and personal notice to each such director. A notice of the time and place of a special meeting shall be posted in the manner prescribed for notice of regular meetings. (c) Waiver of Notice. Notwithstanding the foregoing, notice of a meeting need not be given to any director who signed a waiver of notice or a written consent to holding of the meeting. Section 6.05 -Adjournment. A majority of the directors present, whether or not a quorum is present, may adjourn any meeting to another time and place. If a Board meeting is adjourned for more than twenty-four (24) hours, notice of any adjournment to another time and place shall be given prior to the time of the adjourned meeting to the directors who were not present at the time of adjournment. Section 6.06 -Waiver of Notice. The transaction of any business at any meeting of the Board, however called and noticed to the directors, shall be as valid as though had at a meeting duly held after regular call and notice if a quorum be present and each director who attends does so without protesting, either prior thereto or at its commencement, the lack of notice to such director, and if, either before or after the meeting, each of the directors not present signs a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof. All such waivers, consents or approvals shall be filed with the records of the Maintenance Association or made a part of the minutes of the meeting. Section 6.07 -Quorum. A majority of the number of directors as fixed pursuant to these Bylaws shall be necessary to constitute a quorum for the transaction of business, except to adjourn as hereinbefore provided. Every act or decision made or done by a majority of the directors present at a meeting duly held at which a quorum is present shall be regarded as the act of the Board. A meeting at which a quorum is initially present may continue to transact business notwithstanding the withdrawal of directors, if any action taken is approved by at least a majority of the required quorum for such meeting, or such greater number as is required by statute or under any of the Maintenance Association Management Documents. Section 6.08 -Attendance by Members. Any Member may attend meetings of the Board except when the Board adjourns to executive session to consider litigation, matters that relate to the formation of contracts with third parties, or personnel matters. Any matter discussed in executive session shall be generally noted in the minutes of the Board. In any matter relating to the discipline of a Member, the Board shall meet in executive session if requested by that Member and the Member shall be entitled to attend the executive session. No Member who is not an officer or director shall participate in any deliberation or discussion unless expressly authorized by a majority of a quorum of the Board. The Board may, with the approval of a majority of its members present at a meeting in which a quorum for the transaction of business has been established, adjourn a Board meeting and reconvene in 04-19-93 10532-00045 l: \DOC\302\93020041. 2nd 9 ( executive session exclusive of all Members who are not directors to discuss and vote upon matters requiring confidentiality. The nature of any and all business to be so considered in executive session shall first be announced in open session. Section 6.09 -Action Without Meeting. Notwithstanding anything to the contrary contained in these Bylaws, any action required or permitted to be taken by the Board may be taken without a meeting if all members of the Board shall individually or collectively consent in writing to such action. Such written consent or consents shall be filed with the minutes of the proceedings of the Board. Such action by written consent shall have the same force and effect as a unanimous vote of such directors. If the Board resolves by unanimous written consent to take action, an explanation of the action taken shall be posted at a prominent place or places within the Nonexclusive Use Common Area within three (3) days after the written consents of all Board members have been obtained. If the Nonexclusive Use Common Area consists only of an easement or is otherwise unsuitable for posting the explanation of the action taken, the Board shall communicate said explanation by any means it deems appropriate. Section 6.10 -Telephonic Attendance. Members of the Board may participate in a meeting through use of conference telephone or similar communications equipment, so long as all members participating in such meeting can hear one another. Participation in a meeting pursuant to this Section constitutes presence in person at such meeting. ARTICLE VII POWERS, DUTIES AND LIMITATIONS Section 7.01 -Powers and Duties. Subject to limitations of the Maintenance Association Management Documents and of the California Corporations Code as to action to be authorized or approved by the Members, all corporate powers shall be exercised by or under the authority of, and the business and affairs of the Maintenance Association shall be controlled by, the Board. Without prejudice to such general powers but subject to the same limitations, the Board is vested with and shall have the following powers and duties, to wit: (a) Maintenance Association Management Documents: The duty to enforce the provisions of the Maintenance Association Management Documents and other instruments for the ownership, management and control of the Covered Property and to carry out the obligations of the Maintenance Association including without limitation the right to levy Assessments; (b) Real and Personal Property Taxes: The power to pay any taxes and assessments which are, or could become, a lien on the Maintenance Association Property or any portion thereof; (c) Insurance: Contract for insurance on behalf of the Maintenance Association or its Members pursuant to the Article entitled "Insurance" of the Declaration; (d) Contracts for Goods and Services: The power to contract for goods and/or services for the Common Facilities, Maintenance Association Common Area Improvements, and other interests, for the benefit of the Owners and for the Maintenance Association; (e) Delegation of Powers: The power to delegate to committees, officers, employees or agents any of its duties and powers under the Maintenance Association 04-19-93 10532-00045 L: \DOC\302\93a20041. 2nd 10 ( " Management Documents; provided, however, no such delegation to a professional management company, the Architectural Committee or otherwise shall relieve the Maintenance Association of its obligation to perform such delegated duty; (f) Budgets and Financial Statements: The duty to prepare budgets and financial statements for the Maintenance Association as prescribed in the Bylaws; (g) Rules and Regulations: The power to formulate rules of operation for the Common Area and facilities owned or controlled by the Maintenance Association, including without limitation, the right to limit the number of guests of Owners and the use of the recreational facilities, if any, on the Nonexclusive Use Common Area by persons not in possession of a Residence but owning a portion of the interest in a Residence required for membership; (h) Disciplinary Proceedings: The duty to initiate and execute disciplinary proceedings against Owners for violations of provisions of the Maintenance Association Management Documents in accordance with the procedures set forth in the Bylaws; (i) Right of Entry: The power to enter upon any Residence as necessary to discharge its powers and obligations under the Maintenance Association Management Documents which include the construction, maintenance or emergency repair for the benefit of the Common Area or the Owners. Entry may be made without notice in the event of any emergency repair involving potential danger to life or property or as necessary to repair or maintain the Common Area so as not to deprive other Owners of the proper use thereof, for example, but without limitation, the repair of utility installations or structures that service other Residences and' for any emergency involving illness. Entry for any other allowable purpose shall be made at any reasonable time, after notice to the Owner of not less than three (3) days. Any entry shall be made with as little inconvenience to the Owners as practicable; (j) Election of Officers: The duty to elect officers of the Board pursuant to the Section entitled "Officers" of the Article entitled "Officers" of the Bylaws; (k) Vacancies on the Board: The power to fill vacancies on the Board except vacancies created by the removal of a director; (1) Manage Property: The duty to maintain and otherwise manage: (1) all easements and real property and all facilities, Improvements and landscaping thereon in which the Maintenance Association holds an interest, subject to the terms of any instrument transferring such interest to the Maintenance Association, (2) all personal property in which the Maintenance Association holds an interest, subject to the terms of any instrument transferring such interest to the Maintenance Association, and (3) all property, real or personal, which the Maintenance Association is obligated to repair or maintain pursuant to the Maintenance Association Management Documents, including without limitation, the Article entitled "Repair and Maintenance" of the Declaration; (m) Contribution to Reserves: The duty to accept and administer on behalf of and for the benefit of the Owners any initial working capital fund or contingency reserve fund established by the Declarant, if any, pursuant to an agreement between the Declarant and any of the Federal Agencies; 04-19-93 10532-00045 l: \DOC\302\93020041 • 2nd 11 ( (n) Provide Documents and Statements: The duty to, within ten (10) days of the delivery of written request, provide an Owner with (1) a copy of the Maintenance Association Management Documents, (2) a copy of the most recent financial statement of the Maintenance Association, and (3) a true statement in writing as to the amount of any unpaid Assessments and information relating to Allowable Charges which as of the date of the statement are or may be made a lien upon the Owner's Residence; (0) Grant Rights: The power to grant permits, licenses and easements on, over and under the Common Area for utilities, roads and other purposes not inconsistent with the intended use and occupancy of the Covered Property and reasonably necessary or useful for the proper maintenance or operation of the Covered Property, provided that such permits, licenses and easements shall not unreasonably interfere with the right of any Owner to the use and enjoyment of his Residence and the Nonexclusive Use Common Area; (p) Contracts With Mortgagees: The duty to' negotiate and enter into contracts with Mortgagees and mortgage insurers and guarantors as may be necessary and desirable to facilitate the availability of loans secured by Mortgages within the Covered Property; (q) Borrow Money: The power to borrow money as may be needed in connection with the discharge by the Maintenance Association of its powers and duties and for the purpose of improving, replacing or restoring the Common Area or adding new Common Area; (r) Dedicate Maintenance Association Property: The power to dedicate or transfer all or any part of the Maintenance Association Property to any public agency, authority or utility or other entity; (s) Special Tax Assessment District: The power to establish in cooperation with the appropriate Public Agency a special tax assessment district for the performance of all or a portion of the maintenance and other functions now within the responsibility of the Maintenance Association; (t) Corporate Seal: The power to adopt and use a corporate seal; (u) Membership Certificates: The power to issue appropriate membership certificates evidencing membership in the Maintenance Association; and (v) Tax-Exempt Status: The duty to conduct the business of the Maintenance Association in such manner that the Maintenance Association can qualify and be considered an organization exempt from federal and state income taxes pursuant to Internal Revenue Code Section 528 and California Revenue and Taxation Code Section 2370lt, as amended. The Board shall cause to be timely filed any annual election for tax-:exempt status as may be required under federal or state law, and shall undertake to cause the Maintenance Association to comply with the statutes, rules and regulations which have been or shall be adopted by federal and state agencies pertaining to such exemption. Section 7.02 -General Limitations and Restrictions. In addition to the limitations and restrictions enumerated elsewhere in the Maintenance Association Management Documents, including without limitation, the Article entitled "Mortgagee Protection" of the Declaration and the Section entitled "Additional Contractual Restrictions" of this Article, the Board shall be prohibited from taking any of the following actions without the vote or written assent of a majority of the total voting power of Members other than the Declarant as such voting 04-19-93 10532-00045 L:\DOC\302\93020041.2nd 12 ( power is determined pursuant to the Section entitled "Voting Rights" of the Article entitled "The Maintenance Association" of the Declaration: (a) Long Term Contracts. Enter into a contract with a third person wherein the third person will furnish goods or services for the Common Area or the Maintenance Association for a term longer than one (1) year, with the following exceptions: (i) a management contract the terms of which have been approved by the FHA and VA; (ii) a contract with a public utility company if the rates charged for the materials or services are regulated by the Public Utilities Commission, provided, however, that the term of the contract shall not exceed the shortest term for which the supplier will contract at the ~egulated rate; . (iii) prepaid casualty andlor liability insurance policies of not to exceed three (3) years duration, provided that the applicable policy permits short rate cancellation by the insured; (iv) lease agreements for laundry room fixtures and equipment of not to exceed five (5) years duration provided that the lessor under the agreement is not an entity in which the Declarant has a direct or indirect ownership interest of ten percent (10%) or more; (v) agreement for cable television services and equipment or satellite dish . television services and equipment of not to exceed five (5) years duration provided that the supplier is not an entity in which the Declarant has a direct or indirect ownership interest of ten percent (10%) or more; and (vi) agreements for sale or lease of burglar alarm and fire alarm equipment, installation and services of not to exceed five (5) years duration provided that the supplier or suppliers are not entities in which the Declarant has a direct or indirect ownership interest of ten percent (10%) or more. (b) Expenditures. Incur aggregate expenditures for capital Improvements to the Common Area in any fiscal year in excess of five percent (5 %) of the estimated Common Expenses for the fiscal year. (c) Sale of Real or Personal Property. Sell any real or personal property of the Maintenance Association with an aggregate fair market value in excess of five percent (5 %) of said estimated Common Expenses during any fiscal year. (d) Compensation. Pay compensation to directors or to officers of the Maintenance Association for services performed in the conduct of the Maintenance Association's business; provided, however, the Board. may cause a director or officer to be reimbursed for expenses incurred in carrying on the business of the Maintenance Association. Nothing herein contained shall be construed to preclude any director or officer from serving the Maintenance Association as agent, counsel, or any capacity other than as such director or officer and receiving compensation therefor. Section 7.03 -Additional Contractual Restrictions. Any agreement for professional management and any other contract providing for services of the Declarant, developer, 04-19-93 10532-00045 L: \DOC\302\93()2()1)4 t • 2nd 13 ( sponsor or builder shall not exceed three (3) years in duration and shall be terminable without cause upon ninety (90) days' or less written notice by either party without payment of a termination fee. . Section 7.04 -Record Date. (a) For Notice: The Board may fix, in advance, a date as the record date for the purpose of determining the Members entitled to notice of any meeting of the Maintenance Association. Such record date shall not be more than sixty (60) days nor less than ten ~10) days before the date of the meeting. If no record date is fixed, Members at the close 0 business on the business day preciiling the day on which notice is given or, if notice is waived, at the close of business on the business day preceding the day on which the meeting is held are entitled to notice of a meeting of the Maintenance Association. A determination of Members entitle9 to notice of a meeting of the Maintenance Association shall apply to any adjournment of the meeting unless the Board fixes a new record date for the adjourned meeting. (b) To Vote: The Board may fix, in advance, a date as the record date for the purpose of determining the Members entitled to vote at a meeting of the Maintenance Association. Such record date shall not be more than sixty (60) days before the date of the meeting. Such record date shall also apply in the case of an adjournment of the meeting unless the Board fixes a new record date for the adjourned meeting. If no record date is fixed, Members on the day of the meeting who are otherwise eligible to vote are entitled to vote at the meeting of the Maintenance Association or, in the case of an adjourned meeting, Members on the day of the adjourned meeting who are otherwise eligible to vote are entitled to vote at the adjourned meeting of the Maintenance Association. (c) To Cast Ballots: The Board may fix, in advance, a date as the record date for the purpose of determining the Members entitled to cast written ballots in accordance with the Section entitled "Approval of the Members" of the Article entitled "Meetings of the Maintenance Association" of these Bylaws. Such record date shall not be more than sixty (60) days before the day on which the first written ballot is mailed or solicited. If no record date is fixed, Members on the day the first written ballot is mailed or solicited who are otherwise eligible to vote are entitled to cast written ballots. . (d) For Exercise of Rights: The Board may fix, in advance, a date as the record date for the purpose of determining the Members entitled to exercise any rights in respect of any other lawful action. Such record date shall not be more than sixty (60) days prior to such other action. If no record date is fixed, Members at the close of business on the day on which the Board adopts the resolution relating thereto, or the sixtieth (60th) day prior to the date of such other action, whichever is later, are entitled to exercise such rights. Section 7.05 -Contracts: How Executed. Tne Board, except as otI1erwise provided in Liese Bylaws, may authorize any officer or officers, agent or agents, to enter into any contract or execute any instrument in the name of and on behalf of the Maintenance Association, and such authority may be general or confined to specific instances; and unless so authorized by the Board, no officer, agent or employee shall have any power or authority to bind the Maintenance Association by any contract or engagement or to pledge its credit or to render it liable for any purpose or for any amount. Section 7.06 -Indemnification. To the maximum extent permitted by and in accordance with the requirements and procedures of Section 7237 of the California Corporations Code 04-19-93 10532-00045 L: \DOC\302\ 9302004 1 • 2nd 14 ( as interpreted by the judiciary from time to time, the Maintenance Association shall reimburse, indemnify and hold harmless each present and future director, officer, employee or other "agent" to include, without limitation, a member of any committee of the Maintenance Association (as such term is defined in said Section 7237) and each person who, at the request of the Maintenance Association, acts as a director, officer, employee or agent of another foreign or domestic corporation, partnership, joint venture or other enterprise, (hereinafter in this Section referred to as the "Maintenance Association representative"), from and against all loss, cost, liability and expense which may be imposed upon or reasonably incurred by such Maintenance Association representative including reasonable settlement payments, in connection with any claim, action, suit or proceeding, or threat thereof, made or instituted, in which such Maintenance Association representative may be involved or be made a party by reason of being or having been an Maintenance Association representative or by reason of any action alleged to have been taken or omitted by ,such Maintenance Association representative in such capacity.· The right of indemnification provided in this Section shall inure to each Maintenance Association representative whether or not the claim asserted is based on matters which arose in whole or in part prior to the adoption of this Section, and in the event of the death of the Maintenance Association representative, shall extend to the legal representatives of such person. The right of indemnification provided in this Section shall not be exclusive of any other rights to which any person, or any other individual, may be entitled as a matter of law, under any agreement or otherwise. Section 7.07 -Appointment of Committees. (a) Subject to limitations hereinafter provided in this Section, the Board may delegate the management of the activities of the corporation to any person or persons, management company, or committee however composed provided that the activities and affairs of the Maintenance Association are conducted and all corporate powers are exercised by or under the direction of the Board as provided in Section 7210 of the California Corporations Code. (b) Any executive committee, empowered to act with the authority of the Board, must consist of at least two (2) directors. Any such committee, to the extent provided in the resolution of the Board, shall have all the authority of the Board, except with respect to: (i) the approval of any action for which the law requires approval of the Members or approval of a majority of all Members; (ii) the filling of vacancies on the Board or on any committee which has the authority of the Board; (iii) the amendment or repeal of any resolution of the Board which by its express terms. is not so amendable or repealable; (iv) the appointment of other committees of the Board or the members thereof; and (v) the approval of any self-dealing transaction with respect to assets held in charitable trust except as provided in Section 5233(d) of the California Corporations Code. 04-19-93 10532-00045 L: \DOC\302\ 93020041 • 2nd 15 ( Section 7.08 -Officer and Director Liability. Until Section 1365.7 of the California Civil Code is amended to provide otherwise, a volunteer officer or volunteer director of the Maintenance Association shall" not be personal 1 y liable in excess of the coverage of insurance specified in subparagraph (d) below to any person who suffers injury, including, but not limited to, bodily injury, emotional distress, wrongful death, or property damage or loss as a result of the tortious act or omission of the volunteer officer or volunteer director if all of the following criteria are met: (a) The act or omission was performed within the scope of the officer's or directors' Maintenance Association duties. (b) The act or omission was performed in good faith. (c) The act or omission was not willful, wanton, or grossly negligent. (d) The Maintenance Association maintained and had in effect at the time the act or omission occurred and at the time a claim is made one or more policies of insurance which include coverage for (i) general liability of the Maintenance Association, (ii) individual liability of officers and directors of the Maintenance Association for negligent acts or omissions in that capacity; provided, that both types of coverage are in the following minimum amount: (1) at least five hundred thousand dollars ($500,000) if the Common Interest Development consists of 100 or fewer Residences; (2) at least one million dollars ($1,000,000) if the Common Interest Development consists of more than 100 Residences. The payment of actual expenses incurred by a director or officer in the execution of the duties of that position does not affect the director's or officer's status as a volunteer within the meaning of this section. An officer or director who at the time of the act or omission was a Declarant, or who received either direct or indirect compensation as an employee from the Declarant, or from a financial institution that purchased a Residence at a judicial or nonjudicial foreclosure of a Mortgage,. is not a volunteer for the purposes of this section. Nothing in this section shall be construed to limit the liability of the Maintenance Association for its negligent act or omission or for any negligent act or omission of an officer or director of the Maintenance Association. This section shall only apply to a volunteer officer or director who is a tenant of a Residence or is an Owner of rio more than two Residences. ARTICLE VIII OFFICERS Section 8.01 -Officers. The officers shall be a President, a Vice President, a Secretary and a Chief Financial Officer which officers shall be elected by and hold office at the pleasure of the Board. Any two (2) or more of such offices may be held by the same person. All offices may be held by someone who is not a member of the Board. 04-19-93 10532-00045 l: \DOC\302\93020041 • 2nd 16 Section 8.02 -Election. The officers of the Maintenance Association, except such officers as may be appointed in accordance with the provisions of the Sections entitled "Subordinate Officers" and "Vacancies" of this Article, shall be chosen annually by the Board and each shall hold his office until he shall resign or shall be removed or otherwise be disqualified to serve, or until his successor shall be elected and qualified. Section 8.03 -Subordinate Officers. The Board may appoint such other officers as the business of the Maintenance Association may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board may from time to time determine. Section 8.04 -Removal and Resignation. Any officer may be removed, either with or without cause, by the vote of a majority of all the directors then 'in office at any regular or special meeting of the Board at which a quorum is present. Any officer may resign at any time by giving written notice to the Board or to the President or to the Secretary of the Maintenance Association. Any such resignation shall take effect as of the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective. Section 8.05 -Vacancies. A vacancy in any office because of death, resignation, removal, disqualification or any other cause shall be filled by election or appointment by the Board as prescribed in these Bylaws. Section 8.06 -President. The President shall be the chief executive officer of the Maintenance Association and shall, subject to the control of the Board, have general supervision, direction and control of the business and officers of the Maintenance Association. The President shall preside at all meetings of the Maintenance Association and of the Board. He shall be an ex officio member of all standing committees, if any, and shall have the general powers and duties of management usually vested in the office of the President of a nonprofit mutual benefit corporation, and shall have the powers and duties as may be prescribed by the Board or these Bylaws. Section 8.07 -Vice President. In the absence or disability of the President, the Vice President shall perform all the duties of the President, and when so acting, shall have all the powers of, and be subject to all the restrictions upon, the office of President. The Vice President shall have such other powers and perform such other duties as from time to time may be prescribed for him by the Board or the Bylaws. Section 8.08 -Secretary. The Secretary shall keep, or cause to be k~pt, at the principal office or such other place as the Board may order, (1) a book of Minutes of all meetings and proceedings of the Board and its committees and of the Maintenance Association, with the time and place of the holding of same, whether regular or special, and if special, how authorized, the notice thereof given, the names of those present or represented at Maintenance Association meetings and the proceedings thereof and (2) a record of the Members giving the names, addresses and telephone numbers and the class of membership held by each. The Secretary shall give, or cause to be given, notice of all meetings of the Maintenance Association and of the Board required by the Bylaws or by law to be given, and he shall 04-19-93 10532-00045 L: \OOC\302\ 93020041 • 2nd 17 ( keep the seal of the Maintenance Association in safe custody, and shall have such other powers and perform such other duties as may be prescribed by the Board or by these Bylaws. . Section 8.09 -Chief Financial Officer. The Chief Financial Officer shall keep and maintain, or cause to be kept and maintained, adequate and correct accounts of the properties and business transactions of the Maintenance Association. The books and records of account shall at all reasonable times be open to inspection by any director or by any Member. The Chief Financial Officer shall deposit all I110nies and other valuables in the name and to the credit of the Maintenance Association with such depositories as may be designated by the Board. He shall render to the President and directors, whenever they request it, an account of all of his transactions as Chief Financial Officer and of the financial condition of the Maintenance Association, and shall have such other powers and perform such other duties as may be prescribed by the Board or these Bylaws. ARTICLE IX FINANCIAL STATEMENTS AND INFORMATION Section 9.01 -Budgets. Financial Statements and Documents. Until and unless Section 1365 of the California Civil Code is amended to provide otherwise, the Maintenance Association shall prepare and distribute to all of its Members the following documents: (a) Pro Forma Operating Budget. The Pro Forma Operating Budget as defined in. Section 1365(a) of the California Civil Code and the Section entitled "Pro Forma Operating Budget" of Article I of the Declaration. A copy of the Pro Forma Operating Budget shall be annually distributed to each Member not less than forty-five (45) days nor more than sixty (60) days prior to the beginning of the Maintenance Association's fiscal year. (b) Review of Financial Statement. A review of the financial statement of the Maintenance Association shall be prepared in accordance with generally accepted accounting principles by a licensee of the California State Board of Accountancy for any fiscal year in which the gross income to the Maintenance Association exceeds seventy-five thousand dollars ($75,000.00). A copy of the review of the financial statement shall be distributed within one hundred twenty (120) days after the close of each fiscal year. (c) Distribution of Summary. In lieu of the distribution of the Pro Forma Operating Budget required by this Section, the Board may elect to distribute a summary of the Pro Forma Operating Budget to all Members with a written notice that the Pro Forma Operating Budget is available at the business office of the Maintenance Association or at another suitable location within the boundaries of the Covered Property and that copies will be provided upon request and at the expense of the Maintenance Association. If any Member requests copies of the Pro Forma Operating Budget to be mailed to the Member, the Maintenance Association shall provide such copies to ·such Member by first-class United States mail at the expense of the Maintenance Association which shall be mailed within five (5) days. The written notice that is distributed to each of the Members shall be in at least lO-point bold type on the front page of the summary of the statements. (d) Statement. A statement describing the Maintenance Association's policies and practices in enforcing lien rights or other legal remedies for default in payment of its Assessments against its Members shall be annually delivered to the Members during the 60- 04-19-93 10532-00045 L: \DOC\302\93020041 • 2nd 18 ( day period immediately preceding the beginning of the Maintenance Association's fiscal year. Section 9.02 -Annual Report. Until and unless Section 8321(a) of the California Corporations Code is amended to provide otherwise, the Maintenance Association shall prepare and distribute to each Member within one hundred twenty (120) days after the close of the Maintenance Association's fiscal year: (a) Documents. A report containing the following: (i) a balance sheet as of the end of such fiscal year; (ii) an operating (income) statement for such fiscal year; (iii) a statement of changes in financial position for such fiscal year; (iv) a copy of the review of the annual report described in Section 9.01(b) hereof; (v) a statement of the place where the names and addresses of the current Members may be found; and (vi) any information regarding insider transactions required to be reported by Section 8322 of the California Corporations Code. (b) Certificate of Officer. If the report referred to in this Section is not prepared by an independent accountant, it shall be accompanied by the certificate of an authorized officer of the Maintenance Association that such statement was prepared from the books and records of the Maintenance Association without independent audit or review. Section 9.03 -Statement at Accounting Date. A balance sheet as of the Accounting Date (defined below) and an operating (income) statement for the period from the date of the first conveyance of a Residence to the Accounting Date shall be distributed to each Member within sixty (60) days after the Accounting Date. Said income statement shall include a schedule of Assessments received and receivable, itemized for each Residence within the Covered Property and identified by the number of each Residence and the name of the person or entity assessed therefor. As used in this subsection, "Accounting Date" shall mean the last day of the month closest in time to six (6) months from the date of the first conveyance of a Residence. Section 9.04 -Review of Accounts. The Board shall do all of the following: (a) Review a current reconciliation of the Maintenance Association's operating accounts on at least a quarterly basis; . (b) Review a current reconciliation of the Maintenance Association's reserve accounts (as defined in Section 1365.5(e) of the California Civil Code to mean moneys that the Board has identified for use to defray the future repair or replacement of, or additions to, those major components which the Maintenance Association is obligated to maintain) on at least a quarterly basis; 04-19-93 10532-00045 l:\DOC\302\93020041.2nd 19 ( (c) Review on at least a quarterly basis the current year's actual reserve revenues and expenses compared to the current year's budget; (d) Review the latest account statements prepared by the financial institutions where the Maintenance Association has its operating and reserve accounts; and (e) Review an income and expense statement for the Maintenance Association's operating and reserve accounts on at least a quarterly basis. Section 9.05 -Withdrawal From Reserves. The signatures of at least two persons, who shall be members of the Board, or one member of the Board and an officer who is not a member of the Board, shall be required for the withdrawal of funds from the Maintenance Association's reserve accounts. All other checks, drafts or orders for payment of money, notes or other evidences of indebtedness issued in the name of or payable to the Maintenance Association shall be signed or endorsed by such officer or officers, employee, employees, agent or agents of the Maintenance Association and in such manner as, from time to time, shall be determined by resolution of the Board. Section 9.06 -Use of Reserve Funds. The Board shall not expend funds designated as reserve funds for any purpose other than the repair, restoration, replacement or maintenance of, or litigation involving the repair, restoration, replacement or maintenance of, majQr components which the Maintenance Association is obligated to repair, restore, replace or maintain, and for which the reserve fund was established. However, the Board may authorize a temporary transfer of money from a reserve fund to the Maintenance Association's general operating fund to meet short-term cash-flow requirements or other expenses. The transferred funds shall be restored to the reserve fund within three (3) years of the date of the initial transfer, except that the Board may, upon making a finding supported by documentation that a delay would be in the best interests of the Maintenance Association, delay the restoration until the time which the Board reasonably determines to be necessary. The Board shall exercise prudent fiscal management in delaying restoration of. funds to the Maintenance Association's reserve accounts and in restoring the expended funds to the Maintenance Association's reserve accounts and may, if necessary, levy a special Assessment to recover the full amount of any funds expended within the time limits required hereunder. Special Assessments levied pursuant to this Section shall not be subject to the maximum assessment limitations set forth in Section 1366 of the California Civil Code. Section 9.07 -Reserve Account StUdy. At least once every three (3) years, the Board shall cause a study of the reserve account requirements (defined to mean the estimated funds which the Board has determined are required to be available at a specified point in time to repair, replace or restore those major components which the Maintenance Association is obligated to maintain) to be conducted if the current replacement value of the major components which the Maintenance Association is obligated to repair, replace, restore or maintain is equal to or greater than one-half of the gross· budget of the Maintenance Association during any fiscal year. The Board shall review the study annually and shall consider and implement necessary adjustments to the Board's analysis of the Maintenance Association's reserve account requirements asa result of such review. The study required by this Section shall at a minimum include: 04-19-93 10532-00045 L: \DOC\302\93020041 • 2nd 20 ( (a) Identification of the major components which the Maintenance Association is obligated to repair, replace, restore or maintain which, as of the date of the study, have a remaining useful life of less than thirty (30) years; (b) Identification of the probable remaining useful life of the components identified in subparagraph (a) above as of the date of the study; (c) An estimate of the cost of repair, replacement, restoration or maintenance of the components identified in subparagraph (a) above during and at the end of their useful life; and (d) An estimate of the total annual contribution necessary to defray the cost to repair, replace, restore or maintain the components identified in subparagraph (a) above during and at the end of their useful life, after subtracting total reserve funds as of the date of the study. ARTICLE X INSPECTION OF RECORDS Section 10.01 -Availability of Documents. (a) Subject to Sections 8331 and 8332 of the California Corporations Code, a Member may be entitled to, in accordance with the provisions and requirements of Section 8330 of the California Corporations Code, inspect and copy the record of Members' names, addresses and voting rights or obtain a list of the names, addresses and voting rights of • those Members entitled to vote for the election of directors if the purpose for having such information is reasonably related to such person's interest as a Member. In accordance with Section 8331 of the California Corporations Code, the Maintenance Association may petition the superior court of the County for an order setting aside such demand if the Maintenance Association, in good faith, and with a substantial basis, believes that the membership list will be used for a purpose not reasonably related to the interests as Members of the person or persons making such demand or provides a reasonable alternative, and, in accordance with Section 8332 of the California Corporations Code, the superior court may limit or restrict such rights of the Member. (b) Until Section 1363(k) of the California Civil Code is amended to provide otherwise the minutes, minutes proposed for adoption that are marked to indicate draft status, or a summary of the minutes, of any meeting of the Board, other than an executive session, shall be available to Members within thirty (30) days of the meeting. The minutes, proposed minutes, or summary minutes shall be distributed to any Member upon request and upon reimbursement of the Maintenance Association's costs in making that distribution. (c) Members shall be notified in writing at the time that the Pro Forma Operating Budget required by Section 1365 of the California Civil Code is distributed or at the time of any general mailing to the entire membership of the Maintenance Association of their right to have copies of the minutes of meetings of the Board and how and where those minutes may be obtained. (d) Until Section 7160 of the Corporations Code is amended to provide otherwise, the Maintenance Association shall keep at its principal office the original or a copy of its 04-19-93 10532-00045 L: \DOC\302\ 93020041 • 2nd 21 ( , Articles of Incorporation and Bylaws, as amended to date, which shall be open to inspection by the Member at all reasonable times during office hours. (e) The membership register and books of account shall be made available for inspection and copying pursuant to this Section of the Bylaws by any Member or by his duly-appointed representative, at any reasonable time and for a purpose reasonably related to his interest as a Member, at the office of the Maintenance Association or at such other place within the Covered Property as the Board may prescribe. (f) The Maintenance Association must have current copies of the Maintenance Association Management Documents as well as its own books, records and financial statements available for inspection by any prospective purchaser, holders, insurers and guarantors of First Mortgages that are secured by Residences in the Covered Property as well as to the Members during any reasonable time during normal business hours or under other reasonable circumstances and for a purpose reasonably related to their interest as a prospective purchaser, Member, holder, insurer or guarantor, at the principal office of the Maintenance Association or such other place within the·Covered Property as the Board shall prescribe. Section 10.02 -Rules For Inspection. The Board shall establish reasonable rules' with respect to notice to be given to the custodian of the records by the Member desiring to make the inspection; hours and days of the week when such inspection may be made; and payment of the cost of reproducing copies of documents requested by a Member. Section 10.03 -Inspection By Directors. Every director shall have the absolute right at any • reasonable time to inspect all books, records and documents of the Maintenance Association and the physical properties owned or controlled by the Maintenance Association, all as provided in the California Corporations Code. Without limiting the generality of the foregoing, the right of inspection by a director includes the right to make extracts and copies of documents. ARTICLE XI DISCIPLINE OF MEMBERS Section 11.01 -Maintenance Association Rules: Penalty Assessments. (a) Adoption of Maintenance Association Rules. The Board shall have the power to adopt, amend, and repeal Maintenance Association Rules which shall govern such matters in furtherance of the purposes of the Maintenance Association, including, without limitation, the violation of use restrictions, the use of the Nonexclusive Use Common Area, trash collection and disposal and maintenance obligations; provided, howe~er, that the Maintenance Association Rules may not discriminate among Owners and shall not empower the Maintenance Association to suspend any Owner's right to use any portion of the Nonexclusive Use Common Area to gain access to hi.s Residence or cause a forfeiture or abridgement of an Owner's right to the full use and enjoyment of his Residence on account of the failure of such Owner to comply with the provisions of the Maintenance Association "Management Documents, except by judgment of a court or a decision arising out of arbitration or on account of a foreclosure or sale under a power of sale for failure of the Owner to pay Assessments duly levied by the Maintenance Association. A copy of the Maintenance Association Rules as they may from time to time be adopted, amended or repealed or a notice setting forth the adoption, amendment or repeal of specific portions of 04-19-93 10532-00045 L: \DOC\302\93020041 • 2nd 22 / the Maintenance Association Rules shall be delivered to each Owner in the same manner established in the Declaration for the delivery of notices. Upon completion of the notice requirements, said Maintenance Association Rules shall have the same force and effect as if they were set forth in and were part of the Declaration and shall be binding on the Owners and their successors in interest whether or not actually received thereby. (b) Penalty Assessment. The Board shall have the right to impose a monetary penalty as a Penalty Assessment on any Member for a violation of the provisions of any of the Maintenance Association Management Documents, including any monetary penalty relating to the activities of a guest or invitee of a Member. Such Penalty Assessment may be assessed pursuant to this Section provided that the Board has adopted and distributed to each Member, by personal delivery or first-class mail, a schedule of the monetary penalties that may be assessed for such violations. The Board shall not be required to distribute any additional schedules of monetary penalties unless there are changes from the schedule that was adopted and distributed to the Members as set forth herein. The Board shall meet in executive session if requested by the Member being disciplined and the Member shall be entitled to attend such executive session. Section 11.02 -Enforcement. The Board shall have the right, after affording the affected Owner an opportunity to have a hearing as hereinafter provided, to take disciplinary action against any Owner for a violation of any provision of the Maintenance Association Management Documents. Except for the collection of Allowable Charges, the collection of Penalty Assessments where the Owner is entitled to attend an executive session of the Board held at the request of such Owner, the recordation of a lien against a Residence and the foreclosure of said lien in the case of delinquent Assessments other than Penalty Assessments as provided in the Declaration, and except for the taking of immediate action that may be necessary to alleviate an emergency situation, a decision cannot be made and other disciplinary action cannot be imposed by the Maintenance Association unless the Owner is given fair and reasonable notice and the opportunity to have a hearing. (a) Complaint. Upon finding by the Board of a violation of a provision of the Maintenance Association Management Documents, the Board shall deliver a complaint to the Owner (hereinafter the "Respondent") who is alleged to have violated, or whose family, tenants, guests, invitees or agents are alleged to have violated, any such provision. The complaint shall be delivered in the manner prescribed for the delivery of notices in the Section entitled "Notices" of the Article entitled "General Provisions" of the Declaration and shall contain the following information: (i) a brief description of the alleged violation and, in the event the correction of the alleged violation requires actions such as the installation, removal, repair, replacement, reconstruction or maintenance of Improvements, the date by which such violation is to be corrected by the Respondent; (ii) the disciplinary andlor corrective action andlor penalties, such as the levying of a Penalty Assessment or the suspension of voting and other membership rights, which have been imposed by the Board and become effective in the event the hearing is waived. A suspension of voting or other privileges may be imposed for a period of not more than thirty (30) days unless the infraction (including the nonpayment of Assessments) continues beyond such period of time in which event such suspension may be imposed for as long as the violation continues; and 04-19-93 10532-00045 l: \DOC\302\93020041 • 2nd 23 (iii) notification that, unless a written request for a hearing signed by the Respondent is delivered to the Board within fifteen (15) days after the date of the delivery of such complaint, such Respondent shall be deemed to have accepted the findings of the Board, including without limitation, the date established by the Board for the completion of any corrective work that is required to cure the violation, and has waived his right to a hearing and his right to object to the findings of the Board and the disciplinary and/or corrective actions and/or penalties imposed by the Board. (b) Request for Hearing. Upon timely delivery of a request for hearing from the Respondent named in the complaint, the Board shall set a date for a hearing before the Board and shall deliver notice of such hearing to the Respondent and to any witnesses designated by the Board or the Respondent who are to be present for the purpose of presenting any relevant evidence. Such hearing shall be held not less than thirty (30) days nor more than sixty (60) days from the date of said written notice to the Respondent. Such hearing shall be conducted according to such reasonable rules and procedures as the Board shall adopt which shall provide the Respondent with the right to present oral and written evidence and to confront and cross-examine any person offering at such hearing evidence adverse to the Respondent. (c) Decision of Board. The Board shall deliver its decision and the reasons therefor to the Respondent within seven (7) days after the hearing. (d) Corrective Work. If a violation requiring corrective work continues to exist after the expiration of the time limitation established by the Board for the completion of such corrective work, the Board shall have the right, but not the obligation, to enter upon such Owner's Residence as necessary to accomplish such corrective work. Entry for such purpose may be made after notice to the Owner of not less than fifteen (15) days unless such Owner has agreed to permit earlier entry for such purposes. Unless Respondent and the Board otherwise agree, such entry upon such Residence to perform such corrective work shall take place only during daylight hours on any day, Monday through Friday, excluding holidays. (e) Reimbursement. If the Maintenance Association pays for all or any portion of any corrective work required to correct a violation, such amount shall be reimbursed by Respondent. Notwithstanding the foregoing, as provided in the Declaration, judicial proceedings must be initiated before any item of construction can be altered or demolished. ARTICLE XII AMENDMENT PROVISIONS Section 12.01 -Powers of Members. These Bylaws may be amended or repealed by the vote or written assent of a majority of the voting power of Members other than the Declarant as such voting power is determined pursu~t to· the Section entitled "Voting Rights" of the Article entitled "The Maintenance Association" of the Declaration. Amendments must also comply with the requirements of the Article entitled "Amendment Provisions" of the Declaration and an amendment to this Section or any other Section of these Bylaws pertaining to voting rights must further have the approval of the voting power of the Declarant as provided in the Section entitled "Special Rights" of the Article entitled "General Provisions" of the Declaration. 04-19-93 10532-00045 l: \DOC\302\ 93tl2OO41.2nd 24 (' Section 12.02 -Record of Amendments. Whenever an amendment or new Bylaw is adopted it shall be placed in the book of Bylaws in the appropriate place. If any Bylaw is repealed, the fact of repeal, with the date of the meeting at which the repeal was enacted or written assent was filed, shall be stated in said book. ARTICLE XIII MISCELLANEOUS Section 13.01 -Singular Includes Plural. Wherever the context of these Bylaws requires same, the singular shall include the plural and the masculine shall include the feminine. Section 13.02 -Fiscal Year. The fiscal year of the Maintenance Association shall be the twelve month period of time that commences on the first day of the calendar month in which the original issuance of tHe Final Subdivision Public Report for the Initial Covered Property occurred and ends on the last calendar day of the twelfth month thereof. However, the fiscal year of the Maintenance Association is subject to change from time to time as the Board shall determine. 04-19-93 10532-00045 l: \DOC\302\ 9302004 t .2nd 25 ( CERTIFICATE OF SECRETARY I, the undersigned, do hereby certify: (1) That I am the duly elected and acting secretary of The Pointe at Newport Ridge Association, a California nonprofit mutual benefit corporation; and (2) That the foregoing Bylaws,-comprising 25 pages constitute the original Bylaws of said corporation as duly adopted on May 20 , 19.-9,3 IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of said co:oration this .2.lltHlay of J:lay . ~, tf2: _ 04-19-93 10532-00045 L: \DOC\302\ 9302004 t • 2nd ISecre ._' ; ( '. (" RECORDING REQUESTED BY: FIRST ANERICAN TITLE INSURANCE CO. ur Gf;~i-jG COlinty ~ [.;1 i fomi.; Lee A. Br~itch; CDtinty R2cord~:'" (Space Above Line For Recorder's Use Only) DECLARA TION OF COVENANTS, CONDITIONS AND RESTRICTIONS THE POINTE AT NEWPORT RIDGE ORANGE COUNTY, CALIFORNIA ,. . .r: , . ~. THIS DOCUHENT IS BEING RE-RECORDED TO CORRECT 3 EXHIBITS. EXHIBIT B, C & D WERE CHANGED TO REFLECT THIS PHASE ONLY. Table of Contents Page ARTICLE I -DEFINITIONS ............................................ 2 Section 1.01 -Allowable Charges ..................................... 2 Section 1. 02 -Annexation Property .................................... 2 Section 1.03 -Annexed Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .'. 2 Section 1.04 -Architectural Committee . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . .. 2 Section 1.05-Articles and Bylaws ................................... " 2 Section 1.06 -Assessments ............................ ~ ..... ' ..... " 2 Section 1.07 -Board ................................ '. . . . '.' '. . . . . .. 3 Section 1.08 -California Statutes,. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 Section 1.09 -Close of Escrow. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 3 Section 1.10 -Common Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . " 3 Section 1. 11 -Common Expenses ..................................... 3 Section 1.12 -Common Facilities ............................. ;....... 4 Section 1.13 -County ............................................ 4 Section 1.14 -Covered Property " . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 Section 1. t5 -Declarant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .... 4 Section '1. 16 -Declaration . . . . . . . . . . . . . . . . . . . . , . . . . . . . . , . . . . . . . . . . .. 4 Section 1.17 -Delegate . . . . . . . . . . . '. . . . . . . . . . . . . . . . . " . . . . . . . . . . . . . ., '5 Section 1.18 -Delegate District .................................. " . .. 5 Section 1.19 -Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ......... , 5 Section 1.20 ;. DRE . . . . . . . . . . . ........ ' .. '. . . . . . . . . ; . . . . . . . . . . . . . .. 5 Section 1.21 -' Exhibit ............................................ 5 Section 1.22 -Federal Agencies ...................................... 5 Section 1.23 -Final Subdivision Public Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 Section 1.24 -Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., 5 Section 1.25 -Landscape Maintenance Areas .............................. , 6 06-02 -93 10532-00042 L: \DOC\302\ 93020042. 6TM i ( ( Section 1.:':6 -Lot and Original Lot .................................... 6 Section 1.27 -Maintenance Association ................................ " 6 Section 1.28 -Maintenance Association Common Area ....................... " 6 Section 1.29 -Maintenance Association Common Area Improvem,;nts .............. " 6 Section 1.30 -Maintenance Association Management Documents . . . . . . . . . . . . . . . . .".. 6 Section 1. 31 -Maintenance Association Property ............................ 6 Section 1.32 -Maintenance Association Rules ............................ " 6 Section 1.33 -Master Association ..................................... 7 Section 1.34 -Master Association Architectural and Landscape Standards ............. 7 Section 1.35 -Master Association Management Documents ........... . . . . . . . . . .. 7 Section 1.36 -Master Association Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Section 1.37 -Master Declaration ..................................... 7 Section 1.38 -Member. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Section 1.39 -Mortgage and Mortgagee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Section 1.40 -Newport Ridge Planned Community . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Section 1.41 -Nonexclusive Use Common Area ........................... " 7 Section 1.42 -Official Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Section 1.43 -Owner. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7 Section 1.44 -Perimeter Walls ....................................... 7 Section "1.45 -·Phase .............................................. 8 Section 1.46 -Pro Forma Operating Budget ............................... 8 Section 1.47 -Public Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 Section 1.48 -Residence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 Section 1.49 -Special Benefits Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 Section 1.50 -Special Benefits Common Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9 Section 1.51 -Special Benefits Expenses ................................. 9 Section 1.52 -Storm Drain Agreement .................................. 9 Section 1.53 -Storm Drain Facilities ....... '............................ 9 Section 1.54 -Supplementary Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9 ARTICLE II -THE MAINTENANCE AS SOCIA nON ............................" 9 Section 2.01 -General Duties and Powers ................................ 9 Section 2.02 -Power to Grant Rights ................................... 10 Section 2.03 -Membership ........... " ....... " ....................... 10 Section 2.04 -Transfer ............................................ 10 Section 2.05 -Delegation of Membership Rights ............................ 10 Section 2.06 -Classes of Membership ................................... 11 Section 2.07 -Voting Power ........................................ 11 Section 2.08 -Voting Rights ........................................ 11 Section 2.09 -Approval of All Members ........ . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section 2.10 -Special Benefits Area Approval .............................. 12 Section" 2.11 -Certificate Evidencing Approvals . . . . . • . . . . . . . . . . . . . . . . . . . . . . : 12 Section 2.12 -Delegates; Delegate Districts ............................... 12 ARTICLE III -ASSESSMENTS .......................................... 12 Section 3.01 -Agreement to Pay ............. '. . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 3.02 -Collection and Disbursement ... ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Section 3.03 -Maximum Assessments ................................... 12 Section 3.04 -Assessment Allocation ................................... l4 Section 3.05 -Certificate of Payment ................................... 15 Section 3.06 -Exempt Property ....................................... 15 Section 3.07 -Date of Commencement .................................. 16 06-02-93 10532-()()(J42 L: \DOC\302\93OlOO42. 6 Til ii \ \ Section 3.08 -No Offsets .......................................... 16 Section 3.09 -Homestead Waiver ...... ' ............................... 16 ( Section 3.10 -Taxation of Maintenance Association .......................... 16 \ Section 3.11 -Delinquency ......................................... 16 Section 3.12 -Limitation on Fees ..................................... 17 Section 3.13 -Personal Obligati9n; Lien ................................. 17 Section 3.14 -Not Subject to Lien . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Section 3.15 -Foreclosure Sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Section 3.16 -Subordination of Assessment Liens ............................ 17 ARTICLE IV -ARCHITECTURAL CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Section 4.01 -Architectural Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Section 4.02 -Architectural Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Section 4.03 -Functions of Architectural Committee .......................... 19 Section 4.04 -Approval ........................................... 20 Section 4.05 -Nonliability for Approval .............................. ' ... 20 Section .4.06 -Appeal ............................................. 20 Section 4.07 -Evidence of Approval .................................... 20 Section 4.08 -Performance Dates ..................................... 21 Section 4.09 -Nonconformity ........................................ 22 Section 4.10 -Variances ........................................... 22 ARTICLE V -INSURANCE ............................................ 22 Section 5.01 -Obligation to Insure ..................................... 22 Section 5.02 -Notice of Cancellation or Modification ......................... 23 Section 5.03 -Waiver by Owners ..................................... 23 Section 5.04 -Annual Insurance Review ................................. 23 Section 5.05 -Requirements of Federal Agencies ............................ 23 ( ARTICLE VI -ENFORCEMENT OF BONDED OBLIGATIONS ...................... 25 ARTICLE VII -REPAIR AND MAINTENANCE ................................ 26 Section 7.01 -By Maintenance Association ................................ 26 Section 7.02 -By Owner ........................................... 27 Section 7.03 -Repair of Damage ...................................... 27 Section 7.04 -Noncompliance by Owner ................................. 27 Section 7.05 -Maintenance of Public Utilities .............................. 28 Section 7.06 -Transfer of Maintenance Association Property ..................... 28 ARTICLE VIn -EASEMENTS AND RIGHTS ................................. 28 Section 8.01 -Nature of Easements .................................... 28 Section 8.02 -Oil and Mineral, Rights; Ingress and Egress. . . . . . . . . . . . . . . . . . . . . . . 28 Section 8.03 -Easements for Construction and Marketing Activities ................. 29 Section 8.04 -Easements for Owners ................................... 29 Section 8.05 -Easements for Maintenance Association ......................... 30 Section 8.06 -Support, Settlement and Encroachment ......................... 31 Section 8.07 -Utilities and Cable Television .... '. . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Section 8.08 -Public Bicycle and Pedestrian Trails ........................... 31 Section 8.09 -Clustered Mailboxes .................................... 32 Section 8.10 -Subordination ........................................ 32 Section 8.11 -Delegation of Use ...................................... 32 Section 8.12 -Waiver of Use ........................................ 32 06-02 -9'3 10532-00042 L: \DOC\302\93020042. 6TH 1ll ( ( ARTICLE IX -USE RESTRICTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Section 9.01 -Commercial Use ....................................... 32 Section 9.02 -Signs ............................................. 33 Section 9.03 -Nuisance ........................................... 33 Section 9.04 -Temporary Residences ................................... 33 Section 9.05 -Vehicles ............................................. 33 Section 9.06 -Use of Common Area ................................... 34 Section 9.07 -Animals ............................................ 34 Section 9.08 -Restrictions on Drilling Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Section 9.09 -Unsightly Items ....................................... 34 Section 9.10 -Antennae; Roof Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 . Section 9.11 -Drainage ........................................... 35 Section 9.12 -Garages ............................................ 35 Section 9.13 -Window Covers ....................................... 35 Section 9.14 -California Vehicle Code ....................1.............. 35 Section 9.15 -"Leases ............................................. 35 Section 9.16 -View . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Section 9. 17 -Post Tension Slabs ..................................... 36 Section 9.18 -Fire Protection Access Easement Areas ..... . . . . . . . . . . . . . . . . . . . . 36 Section 9.19 -Prohibition of Removal of Perimeter Walls . . . . . . . . . . . . . . . . . . . . . . . 36 Section 9.20 -Street Trees ~ ........................................ 36 ARTICLE X -DESTRUCTI.ON OF IMPROVEMENTS ......... . . . . . . . . . . . . . . . . . . . 36 Section 10.01 -Definitions ......................................... 36 Section 10.02 -Board Action ........................................ 37 Section 10.03 -Reconstruction ....................................... 38 Section 10.04 -Proceeds of Insurance ................................... 38 Section 10.05 -Reconstruction Assessments ............................... 38 Section 10.06 -Compliance with Plans .................................. 38 Section 10.07 -Determination of Allocable Proceeds .......................... 38 Section 10.08 -Distribution of Insurance Proceeds ........................... 38 Section 10.09 -Payment of Mortgagees .................................. 39 ARTICLE XI -EMINENT DOMAIN ............. 0 •••••••••••••••••••••••••• 39 Section 11.01 -Definition of Taking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Section 11.02 -Representation by Board ................................. 39 Section 11.03 -Award 0 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • 39 Section 11.04 -Inverse Condemnation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 ARTICLE XII -PARTY WALLS ......................................... 39 Section 12.01 -Definition .......................................... 39 Section 12.02 -Use .............................................. 39 Section 12.03 -Sharing of Repair and Maintenance ........................... 4.0 Section 12.04 -Destruction ......................................... 40 Section 12.05 -Right to Contribution Runs With Land o' •••••••••••••••••••••••• 40 Section 12.06 -Arbitration ......................................... 40 ARTICLE XIII -ANNEXATIONS . . . . . . . . . .0. . . • • • • • • . • • • • • • . . . . • . . . . . . . . . . 40 Section 13.01 -Plan of Development .... 0 ••••••••••••••••••••••••••••••• 40 Section 13.02 -Annexation Without Approval .............................. 40 Section 13.03 -Annexation Pursuant to Approval ............................ 41 06-02-93 10532-00042 L: \DOC\302\ 93020042.6 TN IV ( Section 13.04 -Effectuation of Annexation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Section 13.05 -Mergers or Consolidations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Section 13.06 -Deannexation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1 ARTICLE XIV -MORTGAGEE PROTECTION ................................ 42 Section 14.01 -Priority of Mortgage Lien ................................. 42 Section 14.02 -Curing Defaults ...................................... 42 Section 14.03 -Resale ............... . ........................... 42 Section 14.04 -Mortgagees Furnishing Information ........................... 42 Section 14.05 -Conflicts ........................................... 42 Section 14.06 -Federal Agency Agreement ................................ 42 ARTICLE XV -GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Section 15.01 -Enforcement ........................................ 42 Section 15.02 -No Waiver ......................................... 43 Section 15.03 -Cumulative Remedies .......... ' ......................... 43 Section 15.04 -Severability ......................................... 43 Section 15.05 -Term ............................................. 43 Section 15.06 -Construction ........................................ 43 Section 15.07 -Singular Includes Plural .................................. 43 Section 15.08 -Nuisance ........................................... 43 Section 15.09 -Attorneys' Fees ....................................... 44 Section 15.10 -Notices ............................................ 44 Section 15.11 -Conflicts Between Documents .............................. 44 Section 15.12 -Effect of Declaration ................................... 44 Section 15.13 -Personal Covenant ..................................... 44 Section 15.14 -Nonliability of Officials . . . . . . . . . ~ . . . . . . . . . . . . . . . . . . . . . . . . 44 Section 15.15 -Construction By Declarant ........................ . . . . . . . . 45 Section 15.16 -Special Rights ...........................•........... 45 Section 15.17 -Inapplicability to Government Property . . . . . . . . . . . . . . . . . . . . . . . . . 45 ARTICLE XVI -AMENDMENT PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Section 16.01 -Vote of Maintenance Association ............................ 45 Section 16.02 -Petition to Amend ..................................... 46 Section 16.03 -Amendments by Declarant ................................ 46 ARTICLE XVII -COMMUNITY INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Section 17.01 -Acceptance and Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Section 17.02 -Contiguous Area Map . . . . . . . . . . . . . . . . . . . . . . . .'. .. . . . . . . . . 46 Section 17.03 -Declarant's Improvements ................................ 46 Section 17.04 -Owner Improvements ................................... 47 Section 17.05 -Matters of Record . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Section 17.06 -Coyote Canyon Sanitary Landfill ............................ 51 Section 17.07 -Helipad Facilities ..................................... 52 Section 17.08 -Earthquake Faults ..................................... 52 Section 17.09 -Aircraft Overflights ...........•........................ 52 Section 17. 10 -San Joaquin Reservoir . . . . . . . .' . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Section 17.11 -San Joaquin Hills Transportation Corridor/Newport Coast Drive ......... 53 Section 17.12 -Local Collector Road System. Improvements ..................... 53 Section 17.13 -Irrigation With Reclaimed Water ............................ 53 Section 17. 14 -Water Softeners ...................................... 53 Section 17.15 -Electric Power Lines ................................... 54 06-02-93 10532-00042 l: \DOC\302\93020042. 6 Til v ( ( Section 17.16 -Schools ........................................... 54 Section 17.17 -Fire Station . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Section 17.18 -Signal Peak ......................................... 54 Section 17.19 -Public/Private Parks .................................... 54 Section 17.20 -Buck Gully ......................................... 54 Section 17.21 -The Development Plan ................................. ' 54 Section 17.22 -Expansive Soil -. . , . , . . . . . . . , . . . . . . . . . . . . . . . . . . , . . . . . . , 54 ARTICLE XVIII -SPECIAL REQUIREMENTS OF THE COUNTY " . . . . . . . . . .. , . . . . . , 55 Section 18.01 -Conditions of Approval ............................ , ..... 55 Section 18.02 -Implementation of Best Management Practices ................... , 55 Section 18.03 -Assumption of Post Construction Best Management Practices .......... , 55 Section 18.04 -Landscaping and Irrigation System ........................... 56 ,Section 18.05 -Catch Basin Stenciling ........................... , .... ,. 56 Section 18.06 -Newsletter Reminders ................................... 56 Section 18.07 -Amendment .... 'j' ••••••••••••••••••••••••••••••••• , • 56 Section 18.08 -Enforcement ........................................ 56 Exhibit A -Annexation Property Exhibit B -Landscape Maintenance Areas Exhibit C -Perimeter Wall Maintenance Exhibit D -Permanent Walls That Cannot Be Removed Exhibit E -Contiguous Area Map Exhibit F -Storm Drain Agreement Exhibit G -Shear Zone 06-02-93 10532-00042 L: \DOC\:r02\ 93a20042.6 Til VI ( ( DECLARA nON OF COVENANTS, CONDITIONS AND RESTRICTIONS THE POINTE AT NEWPORT RIDGE ORANGE COUNTY, CALIFORNIA THIS DECLARATION OF COVENANTS, CONDmONS AND RESTRICTIONS (the "Declaration") is made this i;!'~ day of)""o,!:. ,1993, by STANDARD PACIFIC CORP., a Delaware corporation (the "Declarant"). All terms used in these Recitals shall mean the same as such terms are hereinafter defined in this Declaration unless the context clearly indicates otherwise. . A. Declarant (i) is the fee owner of certain real property located in the County of Orange, State of California described as, Lots 4 to 15, inclusive, A and E to G, inclusive, of Tract Map No. 14711 (hereinafter "Tract No. 14711"), as per map filed in Book 696, Pages 11 to 14, inclusive, of Miscellaneous Maps, Records of said County, and (ii) when conveyed to Declarant, will be the holder of an easement over Lot C of Tract No. 14711 which shall be appurtenant to Lots F and G of Tract No. 14711 for use, maintenance, repair, renovation and reconstruction of storm drain pipelines and related . underground storm water facilities as such easement is described in Section 8.05(b) of this Declaration. Said Lots and, subsequent to the conveyance thereof to Declarant, the easement shall hereinafter be referred to as the "Initial Covered Property." B. The Covered Property is being developed as part of the Newport Ridge Planned Community which, if developed as planned, shall consist of the Covered Property together with other residential properties and common areas that will be managed and maintained by the Master Association pursuant to the provisions of the Master Declaration for the·benefit of the members of the Master Association which shall be comprised of the Members of the Maintenance Association as well as members who are owners of such other residential property. The Master Declaration contains conditions, restrictions, rights, easements, liens and charges which constitute a general scheme for the management, use, occupancy and enjoyment of Newport Ridge Planned Community. C. It is the desire and intention of Declarant to create a multiphased planned development in accordance with Section 1351 (k) of the California Civil Code and to establish covenants, conditions, restrictions, rights, easements, liens and charges which will constitute a general scheme for the management, use, occupancy and enjoyment of the Covered Property, all running with the Covered Property for the purpose of enhancing and protecting the value, desirability and attractiveness of the Covered Property and enhancing the quality of life within the Covered Property. D . . Members. All persons who purchase Residences within the Covered Property shall be Owners and NOW, THEREFORE, Declarant hereby covenants, agrees and declares that all of the Covered Property shall be held and conveyed subject to the following covenants, conditions, restrictions, rights, easements, liens and charges which are hereby declared to be for the benefit of said interests and shall be enforceable equitable servitudes and shall inure to the benefit of and bind all Owners in accordance with California Civil Code Section 1354 and shall be binding upon all parties having or acquiring any right or title in said interests or any part thereof, and shall inure to the benefit of each Owner thereof and are imposed upon said interests and every part thereof as a servitude in favor of each and every of said interests as the dominant tenement or tenements. 06-02-93 10532-00042 L:\OOC\302\93020042.6TH ( ( ARTICLE I DEFINITIONS Unless the context clearly indicates otherwise, the following terms used in this Declaration are defined as follows: Section 1.01 -Allowable Charges. "Allowable Charges" shall mean the costs, late charges and interest in the amounts permitted by Section 1366(d) of the California Civil Code which may be recovered by the Maintenance Association when any Assessment becomes delinquent which, as of the date hereof, permits (1) reasonable costs incurred in collecting delinquent Assessments including reasonable attorneys' fees, (2) a late charge not exceeding ten percent (10%) of the delinquent Assessments or Ten Dollars ($10.00), whichever is greater, and (3) interest on all sums imposed in accordance with this Section, including the delinquent Assessment, reasonable costs of collection and late charges, at an annual percentage rate not to exceed twelve percent (12%) interest, commencing not sooner than thirty (30) days after the Assessment becomtys due. The Maintenance Association shall be exempt from compliance with the interest rate limitations imposed under Article XV of the California Constitution until and unless Section 1366(e) of the California Civil Code is amended to provide otherwise. Section 1.02 -Annexation Property. "Annexation Property" shall mean that real property in the unincorporated area of the County described on Exhibit A attached hereto excepting therefrom the Initial Covered Property. Section 1.03 -Annexed Property. "Annexed Property" shall mean any property that is described in a Supplementary Declaration that has been recorded in the Official Records and has become a part of the Covered Property. Section 1.04 -Architectural Committee. "Architectural Committee" shall mean the committee or committees provided for in the Article hereof entitled "Architectural Control." Section 1.05 -Articles and Bylaws. "Articles" and "Bylaws" shall mean the Articles of Incorporation and Bylaws of the Maintenance Association as the same may from time to time be duly amended. . Section 1.06 -Assessments. "Assessments" shall mean each of the charges levied by the Board pursuant to the provisions of the Maintenance Association Management Documents for the purposes indicated below: (a) Cable Television Service Assessment for cable television services which may be levied against an Owner who has subscribed for such services; (b) Capital Improvement Assessment levied against each Owner in any calendar year applicable . to that year only for the purpose of defraying, in whole or in part, the cost of any installation, construction or replacement of a described capital Improvement upon the Common Area to the extent the same is not covered by Reconstruction Assessments, including the necessary fixtures and personal property related thereto; (c) Penalty Assessment levied against an Owner.as a' monetary penalty as a disciplinary measure for failure of such Owner to comply with the provisions of the Maintenance Association Management Documents or as a means of reimbursing the Maintenance Association for costs incurred by the Maintenance Association in the repair of damage to Common Area that is being maintained by the Maintenance Association pursuant to the provisions of this Declaration for which the Owner was allegedly 06-02-93 10532-00042 L: \DOC\3(l2\93020042. 6 Til 2 responsible or bringing such Owner and his Residence into compliance with the provisions of the Maintenance Association Management Documents; ( (d) Reconstruction Assessment levied against each Owner to cover the cost to the Maintenance ( Association for the repair, replacement or reconstruction of any portion or portions of the Insured Improvements pursuant to the provision~ of the Article entitled "Destruction of Improvements" of this Declaration; (e) Regular Assessment levied against each Owner for such Owner's proportionate share of the estimated Common Expenses for the forthcoming fiscal year; (f) Special Assessment levied against all Owners to cover the cost of any action or undertaking on behalf of the Maintenance Association which is not specifically covered under any other Assessment. In the event the Maintenance Association undertakes to provide materials or services which benefit a particular Owner, such Owner in accepting such materials and services agrees that the cost thereof shall also be a Special Assessment; and (g) Special Benefits Assessment levied against an Owner and such Owner's Residence within a particular Special Benefits Area representing such Owner's proportionate share of the Special Benefits Expenses for such Special Benefits Area. Section 1.07 -Board. "Board" shall mean the Board of Directors of the Maintenance Association. Section 1.08 -California Statutes. "California Statutes" (Sections of the California Civil Code, Business and Professions Code, Code of Civil Procedure or Corporations Code) when referenced in any of the Maintenance Association Management Documents shall mean each such statute, any amendments thereto or any successor statute thereof. Section 1.09 -Close of Escrow. "Close of Escrow" shall mean the date of the recordation in the Official ~ Records of the conveyance of a Residence within a Phase in a transaction that requires the delivery of a Final Subdivision Public Report. Section 1.10 -Common Area. "Common Area" shall mean the Covered Property excepting therefrom the Lots. Section 1.11 -Common Expenses. "Common Expenses" shall mean the actual and estimated costs or amounts established by the Board, other than Special Benefits Expenses, which are to be allocated to all of the Owners to be paid for: (a) maintenance, management, operation, repair and replacement of all real property and the Improvements thereon which the Maintenance Association is obligated to maintain pursuant to the . provisions of the Maintenance Association Management Documents; (b) unpaid Capital Improvement Assessments, Reconstruction Assessments, Regular Assessments, Special Assessments and Penalty Assessments that are levied as a means of reimbursing the Maintenance Association for costs incurred by the Maintenance Association in the repair of damage to Common Area; . (c) management and administration of the Maintenance Association, including, but not limited to, compensation paid by the Maintenance Association to managers, accountants, attorneys and employees; 06-02-93 10532-00042 L: \J)OC\302\~.6TH 3 ( ( ) ) (d) to the extent not metert!d or billed to Owners, utilities, trash pickup and disposal, gardenina and other services which generally benefit and enhance the value and desirability of the Covered Propeny~ (e) premiums on all insurance and fidelity bonds maintained by the Maintenance Association pursuant to the Article entitled "Insurance" of this Declaration (except for fidelity bonds obtained by a management agent for its officers, employees and agents); , (f) adequate reserves to cover the deductible amounts of any insurance policies maintained . v the Maintenan~ Associati?n and for the f':1t~re r,epair ,or replacem~nt ~f, or additions ~o, those major . components whlch the MaIntenance Assoclatton IS oblIgated to maIntaIn pursuant to thls Declaration, including reserves for replacements for structural elements and mechanical equipment of recreational or other facilities maintained by the Maintenance Association; (g) taxes paid by the Maintenance Association; (h) discharge of any lien or encumbrance levied against the Common Area or portions thereof; (i) expenses incurred by committees established by the Board; (j) security systems or services installed by or contracted for by the Maintenance Association; and (k) other expenses incurred by the Maintenance Association for any reason whatsoever in connection with the Common Area that is being maintained by the Maintenance Association pursuant to the provisions of this Declaration or the costs of any other item or items designated by the Maintenance Association Management Documents, or in furtherance of the purposes of the Maintenance Association or in the discharge of any duties or powers of the Maintenance Association. Section 1.12 -Common Facilities. "Common Facilities" shall mean the Improvements upon the Nonexclusive Use Common Area. Section 1.13 -County, "County" shall mean the County of Orange, State of California. Section 1.14 -Covered Property. "Covered Property" shall mean the Initial Covered Property and, subsequent to the annexation thereof, any Annexed Property. The Covered Property is a common interest development as defined in Section 1351(c) of the California Civil Code which is being developed as a planned development. Section 1.15 -Declarant. "Declarant" shall mean: (a) Standard Pacific Corp., a Delaware corporation, its successors and assigns, by merger, . consolidation or by purchase of all or substantially all of its assets; and (b) any person or entity, his or its successors and assigns, to which the foregoing Declarant has .. assigned any or all of its rights and obligations by an assignment expressed in a recorded instrument including, without limitation, a deed, lease, option agreement, land sale contract or assignment as the case may be, transferring such interest if such assignee agrees in writing with Declarant to accept such assignment. Any reference in the Master Declaration to a "Participating Builder" shall include Declarant named in this Declaration, . 06-02-93 10532-00042 L: \OOC\302\93020042. 6 TN 4 ( ( Section 1.16 -Declaration. "Declaration" shall mean this Declaration of Covenants, Conditions and Restrictions as it may be amended from time to time. Any reference in the Master Declaration to a "Maintenance Association Declaration" shall include this Declaration. Section 1.17 -Delegate. "Delegate" shall mean the person that is selected and/or elected in accordance with the provisions of the Master Decl~tion to represent the Owners within the Delegate District established pursuant to the provisions of the Master Association Management Documents at meetings of the Master Association. Section 1.18 -Delegate District. "Delegate District" shall mean, as defined in Section 3.13 of the Master Declaration, the Covered Property. All references to a Delegate District in the Master Declaration shall include the Delegate District that is comprised of the Covered Property. Section 1.19 -Development. "Development" shall mean the Initial Covered Property and the Annexation Property. Section 1.20 -DRE. "DRE" shall mean the Department of Real Estate of the State of California. Section 1.21 -Exhibit. "Exhibit" shall mean any document so designated herein and attached hereto or so designated in a Supplementary Declaration and attached thereto and each of such Exhibits is by this reference incorporated in this Declaration or such Supplementary Declaration. Section 1.22.-Federal Agencies. "Federal Agencies" shall mean collectively one or more of the following agencies to the extent that any such agency is a Mortgagee, Owner, or insurer or guarantor of a Mortgage within the Covered Property and the following letter designation for such agencies shall mean respectively the agency specified within the parentheses following such letter designation: FHA (Federal Housing Administration), FHLMC (Federal Home Loan Mortgage Corporation), FNMA (Federal National Mortgage Association), GNMA (Government National Mortgage Association), VA (Department of Veterans Affairs). . . . Section 1 :23 -Final Subdivision Public Report. "Final Subdivision Public Report" shall mean the report issued by the DRE pursuant to Section 11018.2 of the California Business and Professions Code on a portion of the Covered Property , as amended, if applicable. Section 1.24 -Improvement. "Improvement" shall mean all: (a) structures and appurtenances thereto of every type and kind, including but not limited to, buildings, out buildings, walkways, sprinkler and sewer pipes or lines, garages, carports, gazebos, swimming pools and other recreational facilities, roads, driveways, parking areas, fences, screens, screening walls, retaining walls, awnings, patio and balcony covers, stairs, decks, landscaping, hedges, slopes, windbreaks, the exterior surfaces of any visible structure, trees and shrubs, poles, signs, solar or . windpowered energy systems or equipment, and water softener or heater ·or air conditioning and heating fixtures and equipment; (b) the demolition or destruction by voluntary action of any structure or appurtenance thereto of every type and kind; (c) the grading, excavation, filling, or similar disturbance to the surface of the land including, without limitation, change of grade, change of ground level, change of drainage pattern or change of stream bed; (d) landscaping, planting, clearing, or removing of trees, shrubs, grass, or plants; 06-02-93 10532-()()O4l L: \DOC\3{)2\9302004Z. 6 TN 5 c ( (e) any change or alteration of any Improvement including any change of material, exterior appearance, color or texture; and (f) the processing and recording of any lot line adjustment. Section 1.25 -Landscape Maintenance Areas. "Landscape Maintenance Areas" shall mean the areas depicted on Exhibit B attached hereto and any Landscape Maintenance Areas designated in a Supplementary Declaration. Section 1.26 -Lot and Qri~inal Lot. "Lot" shall mean a lot shown on the most recently filed tract map describing such lot or a parcel shown on the most recently filed parcel map describing such parcel covering any portion of the Covered Property and filed for record in the County as such lot or parcel may be adjusted from time to time by any recorded lot line adjustment to the extent that such lot or parcel is a part of the Covered Property. "Original Lot" shall mean each lot within the Initial Covered Property as such lot is shown on Tract Map No. 14711 and subsequent to the annexation thereof, each lot shown on the tract map or. each parcel shown on the parcel map that was filed for record in the County and specifically referenced and described in the Supplementary Declaration by which such property was annexed to the plan of this Declaration, as such Original Lot may be adjusted from time to time by any recorded lot line adjustment. Lot or Original Lot shall not include any Maintenance Association Property. Section 1.27 -Maintenance Association. "Maintenance Association" shall mean The Pointe at Newport Ridge Association, a nonprofit mutual benefit corporation incorporated under the laws of the State of California, its successors and assigns, for the purpose of managing the Covered Property. Any references. in the Master Declaration to a "Maintenance Association" shall include the Maintenance Association named in this Declaration. Section 1.28 -Maintenance Association Common Area. "Maintenance Association Common Area" shall mean the portions of the Common Area that are designated by the Maintenance Association from time to time for the exclusive use of the Maintenance Association or any designees of the Maintenance Association for purposes that are consistent with the management and operation of the Covered Property (i.e., office facilities, manager's living quarters, storage rooms or areas, utility installations and structures containing utility installations and control panels). Section 1.29 -Maintenance Association Common Area Improvements. "Maintenance Association Common Area Improvements" shall mean the Improvements upon the Maintenance Association Common Area. Section 1.30 -Maintenance Association Management Documents. "Maintenance Association Management Documents" shall mean the Articles, Bylaws, Architectural Standards, Declaration, Supplementary Declaration and the Maintenance Association Rules and any amendments to any of the foregoing . . Section 1.31 -Maintenance Association Property. "Maintenance Association Property" shall mean all real property and the Improvements thereon owned in fee, by easement or leased from time to time by the Maintenance Association. The Maintenance Association Property within the Initial Covered Property is described as· follows: . Lots 14 and 15 and Lots A and E to G, inclusive, Of Tract Map No. 14711. Section 1.32 -Maintenance Association Rules. "Maintenance Association Rules" shall mean rules adopted, amended and repealed from time to time by the Board pursuant to the Article entitled "Discipline of Members" of the Bylaws. 06-02-93 10532-00042 L: \OOC\302\93Q2()()42. 6 TN 6 ( ( Section 1.33 -Master Association. "Master Association" shall mean Newport Ridge Community Association, a nonprofit mutual benefit corporation incorporated under the laws of the State of california its successors and assigns. ' Section 1.34 -Master Association Architectural and Landscape Standards. "Master Association Architectural and Landscape Standards". shall mean any architectural and/or landscape standards adopted pursuant to the provisions of the Master Declaration for the management and control of any Improvements made upon the Covered Property. Section 1.35 -Master Association Management Documents. "Master Association Management Documents" shall mean the Articles of Incorporation, Bylaws, Declaration of Covenants, Conditions and restrictions, and any rules and regulations adopted by the Board of Directors of the Master Association. Section 1.36 -Master Association Property. "Master Association Property" shall mean all real property and the Improvements thereon owned in fee, by easement or leased from time to time by the Master Association. Section 1.37 -Master Declaration. "Master Declaration" shall mean that certain Declaration of Covenants, Condition and Restrictions for Newport Ridge Community Association recorded by The Irvine Company, a Michigan corporation as Declarant, on May 5, 1993, as Instrument No. 93-0301553, of the Official Records, and any amendments and/or supplements thereto. Section 1.38 -Member. "Member" shall mean every person or entity who is an Owner including Declarant so long as Declarant continues to be an Owner. Section 1.39 -Mortgage and Mortgagee. "Mortgage" and '!Mortgagee" shall mean any duly recorded mortgage or deed of trust encumbering a Residence, and the holder of the mortgagee's or beneficiary's interest under any such Mortgage, respectively. ."First Mortgage" and "First Mortgagee" shall mean a Mortgage which has priority over all other Mortgages encumbering a specific Residence, and the holder of any such First Mortgage, respectively. Section 1.40 -Newport Ridge Planned Community. "Newport Ridge Planned Community" shall mean the master planned development as such term is defined in Title 10, Section 2792.32 of the California Administrative Code, that is encumbered by the Master Declaration. Section 1.41 -Nonexclusive Use Common Area. "Nonexclusive Use Common Area" shall mean the real property and amenities owned or managed by the Maintenance Association for the common use of all Owners. The Nonexclusive Use Common Area shall consist of the Common Area. Section 1.42 -Official Records. "Official Records" shall mean the Official Records in the Office of the County Recorder of the County. Section 1.43 -Owner. "Owner" shall mean one or more persons or entities who are alone or collectively the record owner of a fee simple title to a Residence, including Declarant, excluding those having any such interest merely as security for the performance of an obligation. If a Residence has been sold under a land sale contract in which the State of California is the vendor, then the vendee shall be deemed to be the Owner of such Residence. Section 1.44 -Perimeter Walls. "Perimeter Walls" shall mean the perimeter walls within the Covered Property and Master Association Property as depicted on Exhibits C and D attached hereto and any perimeter walls depicted on similar Exhibits attached to a Supplementary Declaration. 06-02-93 10532-()()()4l L:\DOC\302\93o.20042.6TH 7 c ( Section 1.45 -Phase. "Phase" shall mean each increment of the Covered Property covered by a Final Subdivision Public Report. "First Phase" shall mean the first increment of the Covered Property covered by a Final Subdivision Public Report. Section l.46 -Pro Fonna Operating Budget. "Pro Forma Operating Budget" shall mean as defined in Section 1365(a) of the California Civil Code which, until said Section is amended to provide otherwise includes the following: ' (a) The estimated revenue and expenses on an accrual basis; (b) A summary of the Maintenance Association's reserves based upon the most recent review or study conducted pursuant to Section 1365.5 of the California Civil Code and the Section entitled "Review of Accounts" of the Bylaws which is printed in bold type and includes all of the following: (i) The current estimated replacement cost, estimated remaining life, and estimated useful life of each major component that the Maintenance Association is obligated to maintain; (ii) As of the end of the fiscal year for which the study is prepared: (A) The current estimate of the amount of cash reserves necessary to repair, replace, restore or maintain the major components that the Maintenance Association is obligated to maintain; (B) The current amount of accumulated cash reserves actually set aside to repair, replace, restore or maintain major components that the Maintenance Association is obligated to maintain; and (iii) The percentage that the amount determined for purposes of clause (B) of subparagraph (ii) above is of the amount determined -Cor purposes of clause (A) of subparagraph (ii) above . (c) A statement as to whether the Board has determined or anticipates that the levy of one or more special Assessments will be required to repair, replace or restore any major component that the Maintenance Association is obligated to maintain or to provide adequate reserves therefor; and (d) A general statement setting forth the procedures used for the calculation and establishment of those reserves to defray the future repair, replacement or additions to those major components that the Maintenance Association is obligated to maintain. Section 1.47 -Public A~ency. "Public Agency" shall mean individually and/or collectively the City, if . any, the County, the State of California, and the United States of America, or any agency of any of the foregoing that has authority over all or any portion of the Covered Property or which regulates or has the authority to regulate any of the uses thereon. Section 1.48 -Residence. "Residence" shall mean a Lot together with any easements appurtenant thereto. Section 1.49 -Special Benefits Area. "Special Benefits Area" shall mean a particular portion of the Covered Property designated as such in this Declaration or in any Supplementary Declaration which will require particular services for which the Maintenance Association shall incur expenses which are attributable only to Owners within such portion of the Covered Property. There are no Special Benefits Areas within the Initial Covered Property. 06-02-93 10532-00042 L: \J)OC\34l2\93020042. 6 TN 8 Special Benefits Areas· may be created by the provisions of a Supplementary Declaration as to any Annexed Property described in such Supplementary Declaration. ( Section 1.50 -Special Benefits Common Area. "Special Benefits Common Area" shall mean, as to any SIJe:Cial Benefits Ar~! the portion thereof, or .t~e Improv~ments the~ein required to be maintained by the Mamtenance ASSOClatlon pursuant to th~ provIsIons of thIS DeclaratIOn or any Supplementary Declaration for the exclusive benefit of the Owners within such Special Benefits Area. There is no Special Benefits Common Area within the Initial Covered Property. Section 1.51 -Special Benefits Expenses. "Special Benefits Expenses" shall mean and refer to the actual and estimated costs or expenses incurred by the Maintenance Association for the exclusive benefit of Owners within a particular Special Benefits Area and may include, without limitation, any of the kinds of expenses that are described as Common Expenses hereunder but which pertain only to the Residences or Owners within such Special Benefits Area. Section 1.52 -Storm Drain Agreement. "Storm Drain Agreement" shall mean the Agreement and Grant of Easements between The Irvine Company, a Michigan corporation, as the Grantor and the Declarant as -the Grantee substantially in the form attached hereto as Exhibit F which conveys an easement appurtenant to a portion of the Covered Property for drainage and for the maintenance, repair, replacement and reconstruction of Storm Drain Facilities and shall also mean any similar agreement for drainage and for the maintenance, repair, replacement and reconstruction of Storm Drain Facilities appurtenant to any Annexed Property described in a Supplementary Declaration. Section 1.53 -Storm Drain Easement Areas. "Storm Drain Easement Areas" shall mean (i) the storm drain easement areas described on Tract Map No. 14711 as the "easement reserved for private storm drain purposes," (ii) private storm drain easement areas described as such on any other tract map covering any other portion of the, Covered Property, (iii) any private storm drain easement areas depicted on any Exhibit attached to a Supplementary Declaration, or (iv) any private storm drain easement areas described in a ( Storm Drain Agreement. Section 1.53 -Storm Drain Facilities. "Storm Drain Facilities" shall mean the pipes, lines, catches, grates, concrete structures, security fences, gates and the like upon, under or across any Storm Drain Easement Areas. Section 1.54 -Supplementary Declaration. "Supplementary Declaration" shall mean a writing annexing additional property extending the plan of this Declaration to such additional property. ARTICLE II THE MAINTENANCE ASSOCIATION 'Section 2.01 -General Duties and Powers. The Maintenance Association, through the Board, shall have the duty and obligation to manage and maintain the Covered Property in accordance with the provisions of the Section entitled ·Powers and Duties" of the Article entitled "Powers, Duties and Limitations" of the ' Bylaws and other provisions of the Maintenance Association Management Documents. Subject to the limitations and restrictions enumerated in the Maintenance Association Management Documents, including wi thout limitation, the Article entitled "Mortgagee Protection" of this Declaration and the said Article entitled "Powers, Duties and Limitations" of the Bylaws, the Maintenance Association shall have all of the powers permitted by California law as set forth below: 06-02-93 10532-00042 L: \DOC\3C2\ 93020042.6 TN 9 ( ( \ (a) The powers granted to a nonprofit mutual benefit corporation permitted by California statute as set forth in Corporations Code Section 7140, Code of Civil Procedure Section 374 and Civil Code Section 1363. (b) Standing to institute, defend, settle, or intervene in litigation, arbitration, mediation, or administrative proceedings in its own name as the real party in interest and without joining with it the individual Owners in matters pertaining to the following: (i) Enforcement of the Maintenance Association Management Documents; (ii) Damage to the Common Area; (iii) Damage to the Residences that the Maintenance Association is obligated to maintain or repair; (iv) Damage to the Residences which arises out of, or is integrally related to, damage to the Common Areas or Residences that the Maintenance Association is obligated to maintain or repair; (c) The other powers granted to the Maintenance Association by law. Such powers shall include, but not be limited to, the right to designate from time to time portions of Common Area as Maintenance Association Common Area and the right to join with Declarant in the execution of any lot line adjustment and quitclaim deeds and to accept title to additional property (1) for the purpose of eliminating encroachments due to engineering errors or errors in construction of any Improvements upon any of the affected property, (2) to permit changes in the development plan in circumstances where such changes are the result of topography, obstruction, hardship, aesthetic. or other environmental conditions, (3) are the requirement of a regulatory agency, (4) do not have a significant negative impact upon the Maintenance Association or the Owners, or (5) to transfer the burden of management and maintenance of any Maintenance Association Property which in the reasonable judgment of the Board is generally inaccessible or is not likely to be of any particular use or benefit to the Owners. Section 2.02 -Power to Grant Rights. The Maintenance Association shall have the right to grant utility easements under, through and across any Common Area as reasonably necessary for the ongoing development and operation of the Covered Property. Section 2.03 -Membership. Membership of Owners shall be appurtenant to and may not be separated from the interest of such Owner in any Residence. A Member may own more than one membership in the Maintenance Association by complying with the qualifications of membership as to· more than one (1) Residence. Section 2.04 -Transfer. The membership held by any Owner shall not be transferred, pledged or alienated in any way, except that such membership shall automatically be transferred to the transferee of the interest of an Owner required for membership. Any attempt to make a prohibited transfer is void and- will not be reflected upon the books and records of the Maintenance Association. The Maintenance Association shall have the right to record the transfer upon the ·books of the Maintenance Association without any further action or consent by the transferring Owner. Section 2.05 -Delegation of Membership Rights. A Member who has leased or sold his Residence to a contract purchaser under an agreement to purchase shall be entitled to delegate to such lessee or contract purchaser, as applicable, his membership rights in the Maintenance Association. Such delegation shall be in writing and must be delivered to the Board before such lessee or contract purchaser may vote. 06-02-93 10532-00042 L:\DOC\302\93020042.6TH 10 ( ( \ } However, the lessor or contract seller shall remain liable for all charges and Assessments attributable to his Residence as long as such lessor or contract seller continues to be an Owner. Section 2.06 -ClasseS of Membership. The Maintenance Association shall have two (2) classes of voting membership. Class A. Class A Members shall be all Owners with the exception of Declarant until the Class B membership has been converted to Class A membership, and after such conversion all Owners shall be Class A Members. Class B. The Class B Member shall be Declarant. The Class B membership shall forever cease and be converted to Class A membership on the happening of either of the following events, whichever occurs earlier: (a) the second anniversary of the first Close of Escrow to occur in the most recent Phase of the Development; or I (b) the fourth anniversary of the first Close of Escrow to occur in the First Phase. Section 2.07 -Voting Power. Class A Members shall be entitled to one (1) vote for each Original Lot owned and the Class B Member shall be entitled to three (3) votes for each Original Lot owned. In the event an Original Lot has been split into more than one Lot, the vote for such Original Lot may be allocated to the Owners of such Original Lot in an agreement which is approved in writing by the Board and recorded in the Official Records. When more than one person owns a portion of the interest in a Residence required for membership, each such person shall be a Member and the vote for such Residence shall be exercised as they among themselves determine, but in no event shall the total number of votes for each Original Lot exceed the total number permitted for such Original Lot as provided in this Section .. The Maintenance Association may, but shall not be obliged to, refuse to recognize the vote or written assent of any such co-Owner, except the vote or written assent of the co-Owner designated in a writing executed .by all of such co-Owners and delivered to the Maintenance Association. . Section 2.08 -Voting Rights. All voting rights shall be subject to the restrictions and limitations provided in the Maintenance Association Management Documents. A Member's right to vote shall vest immediately upon the date Regular Assessments are levied against the Residence of such Member. Except as provided in the Article entitled "Enforcement of Bonded Obligations" of this Declaration, wherever a provision of the Maintenance Association Management Documents requires the approval or written assent of Members other than Declarant, it shall be deemed to mean: (a) as long as there is a Class B membership, the vote or written assent of a bare majority of the Class B voting power and the prescribed majority of the total Class A voting power; and (b) after the Class B membership has been converted to Class A membership, the vote or written assent of a bare majority of the total voting power of the Maintenance Association as well as the vote or written assent of a prescribed majority of the total voting power of Members other than Declarant. Section 2.09 -Approval of All Members. Unl~ss elsewhere otherwise specifically provided in the Maintenance Association Management Documents, any prOVision of the Maintenance Association Management Documents which requires the vote or written consent of either the voting power of the Maintenance Association or of Members other than Declarant shall be deemed satisfied by the following: 06-02-93 10532-00042 L: \DOC\302\93020042. 6 TN 11 (a) the vote in person or by proxy of the specified percentage of all of the votes which are entitled to be cast. Said vote shall be at a meeting duly called and noticed pursuant to the provisions of ( the Bylaws dealing with annual or special meetings of the Members; and . ( (b) written consents signed by the specified percentage of all of the votes which are entitled to be cast. Said vote by. written consent shall be solicited pursuant to the procedures provided in the Bylaws. Nothing in this Section or in any other provision of any of the Maintenance Association Management Documents shall preclude Members from assenting to the amendment of any of the Maintenance Association Management Documents by joining in the execution of, or attaching their written consent to, such amendment. Section 2.10 -Special Benefits Area Approval. Notwithstanding any other provision of the Maintenance Association Management Documents, any action expressly for the benefit of a Special Benefits Area or the Owners of Residences therein which requires a vote of the membership shall require the approval of the prescribed percentage of the class or classes of membership or the approval of Members other than Declarant of only those Owners within such Special Benefits Area. Section 2.11 -Certificate Evidencing Approvals. The certificate of any officer or officers authorized by resolution of the Board or of the president and secretary certifying that the required voting power of the Maintenance Association has approved the execution, delivery and/or recordation of an amendment to any of the Maintenance Association Management Documents, any Supplementary Declaration or any other· document requiring the approval of the voting power of the Maintenance Association shall be deemed conclusive proof thereof. Section 2.12 -Delegates; Delegate Districts. In accordance with the provisions of the Master Declaration, the Residences within the Covered Property shall comprise a Delegate District. Delegates for this Delegate District shall be elected by the Board and Declarant as provided in the Bylaws. ARTICLE III ASSESSMENTS Section 3.01 -Agreement to Pay. Subject to limitations contained in the Maintenance Association Management Documents, the Maintenance Association, through its Board, shall fix, establish and collect from time to time Assessments sufficient to perform its obligations under the Maintenance Association Management Documents. Each Owner, including Declarant to the extent Declarant is an Owner as defined herein, is deemed to covenant and agree to pay such Assessments to the Maintenance Association. Section 3.02 -Collection and Disbursement. All funds of the Maintenance Association may be commingled so that the Maintenance Association may qualify for higher yielding accounts at banking or . savings and loan institutions as long as the accounting records of the Maintenance Association reflect deposits and disbursements in a manner that will insure that the funds collected as Capital Improvement Assessments, Reconstruction Assessments, Regular Assessments and Cable Television Service Assessments· will be used only for the purposes for which such funds were collected. Section 3.03 -Maximum Assessments. (a) Except as provided in this Section, the Board shall levy Assessments sufficient to perform its obligations under the Maintenance Association Management Documents. However, annual increases in Regular Assessments or Special Benefits Assessments for any fiscal year, as authorized by Section 1366(b) of the California Civil Code, shall not be imposed unless the Board has complied with Section 1365(a) of 06-02-93 10532-00042 l:\DOC\302\~.6TH 12 ( ( the California Civ~l C~e with re.spect to that fiscal y~, or .has obtained the a~proval of the percentage of the Owners prescnbed m subsectlons (b) and (c) of thls Sectlon of the DeclaratIOn. The provisions of Section 1365(a) of the California Civil Code require the Maintenance Association to prepare and distribute a Pro Forma Operating Budget annually within a certain prescribed period of time prior to the beginning of the Maintenance Association's fiscal year as provided in Article IX of the Bylaws. (b) The Board may not impoSe a Regular Assessment that is more than twenty percent (20%) greater than the Regular Assessment for the Maintenance Association's preceding fiscal year, or impose Assessments for any other act or undertaking of the Maintenance Association which in the aggregate e~ceed five percent (5 %) of the ComI?o~ Expenses of the .Mainten~c~ Association for that fiscal year, WlthOut the approval of Owners constltutmg a quorum castmg a majonty of the votes at a meeting or election of the Maintenance Association con,ducted in accordance with Chapter 5 (commencing with Section 7510) of Part 3, Division 2 of Title I of the California Corporations Code and Section 7613 of the California Corporations Code. A Special Assessment levied pursuant to subdivision (c) of Section 1365.5 of the California Civil Code shall not be subject to the five percent (5.0%) limitation contained in the preceding sentence. For the purposes of this Section, quorum means more than fifty percent (50%) of the Owners of the Maintenance Association. (c) In addition to the foregoing, the Board may not impose a Special Benefits Assessment in a Special Benefits Area that is more than twenty percent (20%) greater than the Special Benefits Assessment for such Special Benefits Area for the Maintenance Association's preceding fiscal year, or impose Assessments for any other act or undertaking of the Maintenance Association for such Special Benefits Area which in the aggregate exceed five percent (5 %) of the Special Benefits Expenses of such Special Benefits Area for that fiscal year, without the approval of Owners within such Special Benefits Area constituting a quorum casting a majority of the votes at a meeting or election of the Maintenance Association conducted in accordance with Chapter 5 (commencing with Section 7510) of Part 3, Division 2 of Title 1 of the California Corporations Code and Section 7613 of the California Corporations Code. A Special Assessment levied for such Special Benefits Area pursuant to subdivision (c) of Section 1365.5 of the California Civil Code shall not be subject to the five percent (5.0%) limitation contained in the preceding sentence. For the purposes of this Section, quorum means more than fifty percent (50%) of the Owners of such Special Benefits Area. (d) This Section does not limit Assessment increases necessary for emergency situations. For purposes of this Section, an emergency situation is anyone of the following: (i) an extraordinary expense required by an order of a court; (ii) an extraordinary expense necessary to repair or maintain the Covered Property or any part of it for which the Maintenance Association is responsible where a threat to personal safety on the property is discovered; and (iii) an extraordinary expense necessary to repair or maintain the Covered Property or any part of it for which the Maintenance Association is responsible that could not have been reasonably foreseen by the Board in preparing and distributing the Pro Forma Operating Budget. However, prior to the imposition or collection of an Assessment under this subsection, the Board shall pass a resolution containing written findings as to the necessity .of the extraordinary expense involved and why the expense was not or could not have been reasonably foreseen in the budgeting process, and the resolution shall be distributed to the Members with the notice of Assessment. (e) In the event the Board shall determine that the estimate of total charges for the current year is, or will become, inadequate to meet all Common Expenses for any reason, it shall then immediately determine the approximate amount of such inadequacy, issue a supplemental estimate of the Common 06-02-93 1~-00042 L: \OOC\302\93020042. 6TH 13 ( ( Expenses and to the extent permitted in this Section determine the revised amount of the Regular Assessment and the installments thereof, if applicable, allocable to each Residence, and the date or dates when due. The Board shall provide notice by first-class mail to all Members of any increase in Regular Assessments not less than thirty (30) nor more than sixty (60) days prior to the date upon which such increased Assessment becomes due. (f) In the event the Board shatl determine that the estimate of total charges for the current year is, or will become, inadequate to meet all Special Benefits Expenses for any reason, it shall then immediately determine the approximate amount of such inadequacy, issue a supplemental estimate of the Special Benefits Expenses and to the extent permitted in this Section determine the revised amount of the Special Benefits Assessment and the installments thereof, if applicable, allocable to each Residence within the Special Benefits Area, and the date or dates when due. The Board shall provide notice by first-class mail to all Members within such Special Benefits Area of any increase in Special Benefits Assessments not less than thirty (30) nor more than sixty (60) days prior to the date upon which such increased Assessment becomes due. (g) In the event the amount budgeted to meet Common Expenses for the then current year proves to be excessive in light of the actual Common Expenses, the Board in its discretion may either reduce the amount of the Regular Assessment or may abate collection of Regular Assessments as it deems appropriate except that as long as Declarant is offering Residences for sale pursuant to a Final Subdivision Public Report, the Regular Assessment may not be decreased by ten percent (10%) or more without the express written consent of Declarant and the DRE. (h) In the event the amount budgeted to meet Special Benefits Expenses in any Special Benefits Area for the then current year proves to be excessive in light of the actual Special Benefits Expenses, the Board in its discretion may either reduce the amount of the Special Benefits Assessment or may abate collection of Special Benefits Assessments as it deems appropriate except that as long as Declarant is offering Residences for sale pursuant toa Final Subdivision Public Report, the Special Benefits Assessment may not be decreased by ten percent (10%) or more without the express written consent of Declarant and the DRE. Notwithstanding the foregoing, an increase in the amount of an Assessment that is the result of annexing a Phase on which the DRE has issued a Final Subdivision Public Report shall not require membership approval even if such increase does result in an increase in the amount of the Assessment that is more than twenty percent (20%) greater than the Assessment for the preceding fiscal year provided that the annexation of such Phase and the maintenance of any additional Improvements resulting from such annexation was reflected in the Pro Forma Operating Budget for the Development approved by the DRE and provided further that such increase in the Assessment is permitted or not prohibited under any California Statute in effect at the time of such increase. Section 3.04 -Assessment Allocation. Assessments shall be fixed for each Residence on which . Assessments have commenced in accordance with the provisions of this Declaration as hereinafter provided in this Section. (a) Penalty Assessments. Penalty Assessments levied against an individual Owner shall be fixed (1) at the amount necessary to reimburse the Maintenance Association for costs incurred by the Maintenance Association in performing any repair and maintenance of damage for which such Owner was allegedly responsible, or (2) as determined from time to time by the Board as a disciplinary measure for failure of such Owner to comply with the provisions of the Maintenance Association Management Documents; 06-02-93 10532-00042 L: \DOC\302\93o.20042.6 TIC 14 ( ( ) ) (b) Special Assessments for Materials or Services. In the event an Owner accepts materials or services provided by the Maintenance Association, the Special Assessment levied against such Owner shall be the amount necessary to reimburse the Maintenance Association for the costs incurred in providing such materials and services. (c) Cable Television. In the. event the Board elects to contract with a cable television service company to provide service for the benefit of Owners, Cable Television Service Assessments shall be levied against Owners who have subscribed with the Maintenance Association for such services. (d) Special Benefits Assessments. Special Benefits Assessments as to a particular Special Benefits Area shall be fixed at an equal amount for each Original Lot within such Special Benefits Area. (e) Assessments for All Other Purposes. Regular Assessments, Capital Improvement Assessments and Reconstruction Assessments for the repair, replacement, or reconstruction of Improvements within the Common Area and Special Assessments for any other act or undertaking of the Mainten~ce Association shall be fixed at an equal amount for each Original Lot. All Assessments may be collected at intervals selected by the Board except that Regular Assessments and Special Benefits Assessments must be paid in regularly scheduled monthly installments. In the event an Original Lot has been subdivided into more than one Lot, the Assessment for such Original Lot shall be allocated by the Board to the Owners thereof unless the Owners of such Original Lot agree upon an allocation in an agreement which is approved in writing by the Board and recorded with respect to such Original Lot in the Official Records. Section 3.05 -Certificate of Payment. The Maintenance Association shall, upon demand, furnish to any Owner liable for Assessments a certificate in writing signed by an authorized agent of the Maintenance Association or by the president setting forth whether the Assessments on such Owner's Residence have been paid, and the amount of delinquency, if any. A reasonable charge may be collected by the Board for the issuance of these certificates. Such certificates shall be conclusive evidence of payment of any, Assessment therein stated to have been paid. Section 3.06 -Exempt Property. (a) Declarant and any other Owner of a Residence which does not include a structural Improvement for human occupancy shall be exempted from the payment of that portion of the Regular Assessment which is for the purpose of defraying expenses and reserves directly attributable to the existence and the use of such structural Improvements. The exemption may include, but shall not be limited to, the portion of such Regular Assessment attributable to (1) roof replacement, (2) exterior maintenance, (3) walkway and carport lighting, (4) refuse disposal, and (5) domestic water supplied to the Residence. Any exemption of a Residence from the payment of Regular Assessments attributable to the existence and use of such Improvements shall be in effect only until the earliest to occur of the following events: (i) a notice of completion of such structural Improvement has been recorded; (ii) the occupation or use of the dwelling unit affected by such structural Improvements; or (iii) completion of all elements of the residential structure which the Maintenance Association is obliged to maintain. 06-02-93 10532-()()042 L: \DOC\302\ 93020042.6 TN 15 (b) Decl~t and any other Owner shall be exempted from the payment of that portion of any Assessment which IS for the purpose of defraying expenses and reserves directly attributable to the \ (. existence and use of Common Facilities and Maintenance Association Common Area Improvements that are not complete at the time Assessments commence. Any exemption from the payment of Assessments attributable to any incomplete Common Facility or Maintenance Association Common Area Improvement shall be in effect only until the earliest .of the following events: ( (i) a notice of completion of such Common Facility or Maintenance Association Common Area Improvement has been recorded; (ii) the Common Facility or Maintenance Association Common Area Improvements have been put into use. (c) All properties dedicated to and accepted by, or otherwise owned or acquired by, a Public Agency for nonresidential public purposes shall be exempt from the Assessments created herein. Section 3.07 -Date of Commencement. (a) The Regular Assessments shall commence with respect to all Residences in a Phase on the first day of the month following the first Close of Escrow to occur within such Phase. (b) All other Assessments may be levied against an Owner when Regular Assessments have commenced against such Owner's Residence. The first Regular Assessment and Special Benefits Assessment shall be adjusted according to the number of months remaining in the fiscal year. Section 3.08 -No Offsets. All Assessments shall be payable in the amount specified by the Assessment and no offsets against such amount shall be permitted for any reason. Section 3.09 -Homestead Waiver. Each Owner, to the extent permitted by law, does hereby waive, to the extent of any liens created pursuant to this Declaration, whether such liens are now in existence or are created at any time in the future, the benefit of any homestead or exemption laws of the State of California now in effect or in effect from time to time hereafter. Section 3.10 -Taxation of Maintenance Association. In the event that any taxes are assessed against Common Area or the personal property of the Maintenance Association, rather than against the individual Residences-, said taxes shall be added to the annual Regular Assessments, or, if necessary, a Special Assessment may be levied against the Residences in an amount equal to said taxes, to be paid in two (2) installments thirty (30) days prior to the due date of each tax· installment. . Section 3.11 -Delinquency. Any Assessment provided for in this Declaration which is not paid shall be delinquent fifteen (15) days after such Assessment was due (the "delinquency date") and Allowable Charges may be recovered if an Assessment becomes delinquent. The Maintenance Association may at its option, and without waiving the right to judicially foreclose its lien against such Owner's Residence, pursue any available remedies, including, without limitation, bringing an action at law against the Owner personally obligated to pay the same, and/or upon compliance with the notice provisions set forth in the Section entitled "Personal Obligation; Lien" of this Article, to foreclose the lien against such Owner's Residence under the power of sale granted herein. Each Owner vests in the Maintenance Association, or its assigns, the right and power to bring all actions at law or any lien foreclosure against such Owner or other Owners for the collection of such delinquent Assessments. 06-02-93 105~·00042 l: \DOC\302\ 93020042.6 TN 16 ( ( \ \ Section 3.12 -Limitation on Fees. The Maintenance Association shall comply with Section 1366.1 and l368(c) of the California Civil Code and, until such Sections are amended to provide otherwise, shall not: (a) impose or collect an Assessment or fee that exceeds the amount necessary to defray the costs for which it is levied; and (b) impose or collect any Assessment, penalty, or fee in connection with a transfer of title or any other interest except the Maintenance Association's actual cost to change its records and that authorized in connection with subsection (n) of the Section entitled "Powers and Duties" of the Bylaws to provide copies of Maintenance Association Management Documents, copies of financial statements and statements of unpaid Assessments and Allowable Charges. Section 3.13 -Personal Obligation: Lien. An Assessment and any Allowable Charges shall be a personal obligation and debt of the Owner of the Residence at the time the Assessment or Allowable Charges are levied and shall not pass to successors in title unless assumed by the successors in title. The amount of the Assessment, plus any Allowable Charges, shall be a lien on the Owner's Residence from and after the time the Maintenance Association causes to be recorded in the Official Records a notice of delinquent assessment which shall state (1) the amount of the Assessment and Allowable Charges, (2) a description of the Owner's Residence against which the Assessment and Allowable Charges are levied, (3) the name of the record Owner of the Residence against which the lien is imposed, and (4) in order for the lien to be enforced by nonjudicial foreclosure as hereinafter provided, the name and address of the trustee authorized by the Maintenance Association to enforce the lien by sale. The notice of delinquent assessment shall be signed by the officers authorized for such purpose by resolution of the Board or by the president of the Maintenance Association. Upon payment of the sums specified in the notice of delinquent assessment, the Maintenance Association shall cause to be recorded a further notice stating the satisfaction and release of the lien thereof. A lien created pursuant to this Section shall be prior to all other liens recorded subsequent to the notice of delinquent assessment, except (1) all taxes, bonds, assessments and other levies which, by law, would be superior theretQ, and (2) the lien or charge of any First Mortgage. Section 3.14 -Not Subject to Lien. Penalty Assessments and Allowable Charges incurred in connection with delinquent Penalty Assessments may not be characterized nor treated as an Assessment which may become a lien against an Owner's Residence enforceable in accordance with the Section entitled "Foreclosure Sale" of this Article. Nothing in this Declaration, however, shall prevent the Maintenance Association from bringing an "action at law or in equity against an Owner to collect Penalty Assessments. Section 3.15 -Foreclosure Sale. Said lien created pursuant to this Article may be enforced in any manner permitted by law, including sale by the court, sale by the trustee designated in the Notice of Delinquent Assessment, or sale by a trustee substituted pursuant to Section 2934a of the California Civil Code. Any sale by a trustee provided for above is to be conducted in accordance with the provisions of Sections 2924 et ~. and Section 1367 of the California Civil Code, applicable to the exercise of powers of sale in "mortgages and deeds of trust. Upon the affirmative vote of a majority of the voting power of the Maintenance Association, the Maintenance Association, through its duly authorized agents, shall have the power to bid on the Residence, using Maintenance Association funds, or funds borrowed for such purpose, at the sale, and to acquire and hold, lease, mortgage and convey the same. Nothing in this Section " prohibits actions against any Owner to recover sums for which a lien is created pursuant to this Article or prohibits the Maintenance Association from taking a deed in lieu of foreclosure. Section 3.16 -Subordination of Assessment Liens. The lien of the Assessments and Allowable Charges provided for in this Declaration shall be subordinate to the lien of any First Mortgage upon any Residence. The foreclosure of any lien provided for in this Article for the payment of Assessments and Allowable Charges shall not operate to affect or impair the lie~ of a Fi~st Mortg~ge and the foreclosure of the. lien of a First Mortgage or the sale under a power of sale mcluded m such FIrst Mortgage (such events bemg 06-02-93 10532-00042 L:\DOC\302\93020042.6TH 17 (" (' hereinafter referred to as "Events 'of Foreclosure") shall not operate to affect or impair such Assessment lien, except that any persons who obtain an interest through any of the Events of Foreclosure, and the successors in interest, shall take title free of such Assessment lien or any personal obligation for said charges as shall have accrued up to the time of any of the Events of Foreclosure, but subject to the Assessment lien for all said charges that shall accrue subsequent to the Events of Foreclosure. Notwiths.tand~ng the foregoing, 3.!1y del~nquent Special Benefits Assessments in a Special Benefits Area that were extmgUished pursuant to thIS paragraph may be reallocated and assessed to all Residences within such Special Benefits Area as a Special Benefits Expense and any other delinquent Assessments that were extinguished pursuant to this paragraph may be reallocated and assessed to all Residences as a Common Expense. A First Mortgagee's rights pursuant to this Section shall not be affected by the failure of such First Mortgagee to deliver a notice to the Board. . The lien of the Assessments and Allowable Charges as aforesaid shall also be subordinate to the interests of the Department of Veterans Affairs of the State of California as the vendor under its Cal-Vet loan contracts to the same extent that the said liens are made subordinate to the liens or charges of First Mortgages as provided above. ARTICLE IV ---_ ... ARCHITECTURAL CONTROL Section 4.01 -Architectural Committee. The Architectural Committee shall consist of not fewer than three (3) nor . more than five (5) persons as fixed from time to time by resolution of the Board. Declarant shall initially appoint the Architectural Committee. Declarant shall retain the right to appoint, augment or replace all members of the Architectural Committee until one (1) year after the occurrence of the first Close of Escrow within the Initial Covered Property. Declarant shall retain the right to appoint, augment or replace a majority of the members of the Architectural Committee until (1) five (5) years after the . occurrence of the first Close of Escrow within the Covered Property, or (2) Close of Escrow has occurred on ninety percent (90%) of the Residences within the Development, whichever of (1) or (2) shall first occur, at which time the right to appoint, augment or replace all members of the Architectural Committee shall automatically be transferred to the Board. As long as Declarant has the right to appoint S9me but not all of the members of the Architectural Committee, the Board shall have the right but not the obligation to fill the remaining vacancies on the Architectural Committee. Persons appointed by the Board to the Architectural Committee must be Members; however, persons appointed by Declarant to the' Architectural Committee need not be Members, in Declarant's sole discretion. The address of the Architectural Committee shall be the address established for giving notice to the Maintenance Association unless another address is specified for such purpose in the Architectural Standards or Architectural Committee Rules. Such address shall be the place for the submittal of plans and specifications and the place where the current Architectural Standards and Master Association Architectural and Landscape Standards shall be . kept. Section 4.02 -Architectural Standards. Any Master Association Architectural and Landscape Standards adopted from time to time pursuant to the provisions of the Master Declaration for the management and control of the Covered Property shall be enforced by the Archi~ectural Committee and by the Master Association in accordance with the requirements of the Master Declaration. In addition, the Board may, from time to time, adopt and promulgate additional Architectural Standards to be administered through the Architectural Committee and has the additional rights described in the Sections entitled "Appeal" and "Variances" of this Article. The Architectural Standards may include among other things those restrictions and limitations upon the Owners set forth below: 06-02-93 '10532-00042 L: \J)OC\302\93020042.6 TN 18 ( ( \ (a) time limitations for the completion of the Improvements for which approval is required pursuant to the Architectural Standards; (b) conformity of completed Improvements to plans and specifications approved by the Architectural Committee; (c) such other limitations and restrictions on Improvements as the Board in its reasonable discretion shall adopt, including, without limitation, the regulation of the placement, kind, shape height materials, species and location of any Improvement; and ' , (d) a description of the Improvements which, if completed in conformity with the Architectural Stand2-~s, do not require the approval of the Architectural Committee. Section 4.03 -Functions of Architectural Committee. (a) It shall be the duty of the Architectural Committee to consider and act upon proposals or plans submitted pursuant to the terms of this Declaration, the Architectural Standards, or the Master Association Architectural and Landscape Standards and to perform such other duties delegated to it by the Board. (b) The Architectural Committee may delegate its plan review responsibilities to one or more members of such Architectural Committee. Upon such delegation, the approval or disapproval of plans and specifications by such persons shall be equivalent to approval or disapproval by the entire Architectural Committee. (c) The Architectural Committee may, from time to time, subject to the approval of the Board, adopt, amend and repeal Architectural Committee Rules, may require the prepayment of a deposit to be applied toward the payment of any Special Assessment levied by the Board if such Owner fails to restore any portion of the Covered Property to a clean and attractive condition and may assess a reasonable fee as appropriate for the type and nature of the Improvement, to cover the cost of inspections that may be necessary to insure compliance and in connection with the review of plans and specifications for proposed Improvements, including without limitation, a procedure for approval of preliminary plans and drawings, as well as final approval, the number of sets of plans to be submitted, and may require such detail ~s it deems proper, including without limitation, floor plans, site plans, elevation drawings, and descriptions or samples of exterior material and colors. (d) Unless all of the rules of the Architectural Committee have been complied with, such plans and specifications shall be deemed not submitted. Notwithstanding the foregoing as long as the majority of the members of the Architectural Committee are , appointed by Declarant, members of the Architectural Committee appointed by Declarant shall have the absolute right to (i) limit their responsibility and obligations to the review of plans and specifications on a selective basis either by designating the kinds of Improvements that require review and approval by such members of the Architectural Committee or by limiting the review and approval of such members only as to design, appearance, or other like considerations deferring all other considerations of review and' approval by the members of the Architectural Committee appointed by the Board, (ii) abstain from voting and deferring the determination as to approval and disapproval to the members of the Architectural Committee appointed by the Board, or (iii) delegate all or any portion of the plan review and approval or disapproval responsibilities to the members of the Architectural Committee appointed by the Board. 06-02-93 10532-00042 l : \DOC\302\ 93020042.6 Tit 19 ( ( i ) Section 4.04 -Approval. (a) No Improvements shall be made upon the Covered Property except in compliance with plans and specifications therefor which have been submitted to and approved by the Architectural Committee except as may otherwise be provided in the Architectural Standards, Master Association Architectural and Landscape Standards or in any Supple~entary Declaration. (b) TJ:e Arc~itectural Committee Shall. review plans and specifications submitted for its approval as to style, extenor deslgn, appearance and locatIon and shall approve such plans and specifications only if it deems that the proposed Improve~ent ~ill not be ~etrimental to the appearance of the Development as a whole; that the Improvement compbes wlth the Architectural Standards and the Master Association. Architectural and Landscape Standards; that the appearance of any Improvements will be in harmony with the surrounding structures; that the construction of any Improvement will not detract from the beauty and attractiveness of the Development or the enjoyment thereof by the Owners; and that the upkeep and maintenance of any Improvement will not become a burden on the Maintenance Association. The Architectural Committee (1) may determine that such Improvement cannot be approved because of'its effect on existing drainage, utility or other easements, (2) may require submission of additional plans and specifications or other information or materials prior to approving or disapproving plans and specifications submitted, or (3) may condition its approval of plans and specifications for any Improvement on such changes therein as it deems appropriate such as, and without limitation, the approval of such Improvement by a holder of an easement which may be impaired thereby or upon approval of any such Improvement by the appropriate Public Agency. Any Architectural Committee approval conditioned upon the approval by a Public Agency or an easement holder shall not imply the Maintenance Association is enforcing any government codes or regulations or provisions of any easement agreement, nor shall the failure to make such conditional approval imply that any such Public Agency or easement holder approval is not required. Section 4.05 -NonliabilitJ for Approval. Plans and specifications are not approved for (1) engineering design, (2) compliance with zoning and building ordinances, and other applicable statutes, ordinances or governmental rules or regulations, (3) compliance with the requirements of any public utility, (4) any easements or other agreement, or (5) preservation of any view and by approving such plans and specifications neither the Architectural Committee, the members thereof, the Maintenance Association, the Owners, the Board nor Declarant, nor agents, employees, attorneys or consultants of any of the foregoing, assume liability or responsibility therefor, or for any defect in any Improvement constructed from such plans and specifications or for any obstruction or impairment of view caused or created as the result of any Improvements approved by the Architectural Committee. Section 4.06 -Appeal. In the event plans and specifications submitted to the Architectural Committee are disapproved thereby, the party or parties making such submission may appeal in writing to the Board within the time limitation stated in the Section entitled "Performance Dates" of this Article. The Board shall submit such request to the Architectural Committee for review, whose written recommendations are to be submitted to the Board. Section 4.07 -Evidence of Approval. (a) As provided elsewhere in the Maintenance Association Management Documents, Declarant is not subject to the provisions of the Maintenance Association Management Documents pertaining to architectural control. Any Improvements constructed by Declarant shall automatically be in compliance with the Maintenance Association Management Documents and shall not be subject to further architectural control until and unless there has been a change or alteration made by a successor in title to Declarant as to any Residence in the material, texture, color or appearance of any such Improvement upon such Residence. Normal maintenance, repair or reconstruction by any successor in title to Declarant in the event of a destruction, in substantial conformance with the Improvements constructed by Declarant, shall 06-02-93 10532-00042 L: \D(lC\302\93020042. 6 Til 20 ( ( not be deemed to be an Improvement that requires approval pursuant to the provisions of this Article. If the Improvements upon such Residence comply with the provisions of the Maintenance Association Management Documents, the Architectural Committee shall, upon request, issue a statement (hereinafter a "Compliance Statement") which will evidence such compliance. If any of the Improvements upon such Residence do not comply with the provisions of the Maintenance Association Management Documents, the Architectural Committee shall, upon such request, issue a statement (hereinafter a "Noncompliance Statement") delineating the corrective action that is required to bring such Improvements into compliance with the Mainten~ce Association Man~geme~t ~ocum~nts .. ~e ~ompliance ~tatement ~r Noncompliance Statement, as apphcable, must be provlded wIth10 the tlme hmItatlon set forth 10 the Sectlon entitled "Performance Dates" of this Article. In the event the Architectural Committee has issued a Noncompliance Statement as to any such Residence, the Architectural Committee shall provide a Compliance Statement, upon request, after the corrective work has been satisfactorily completed which shall then evidence that the Improvements upon such Residence comply with the provisions of the Maintenance Association Management Documents. Any Compliance or Noncompliance Statement issued by the Architectural Committee shall be executed by any person or persons authorized by resolution of the Board or by the president and secretary of the Maintenance Association. The signatures on a Compliance Statement shall be notarized. A Compliance Statement shall be conclusive evidence of compliance with the provisions of the Maintenance Association Management Documents as to the Improvements described in the Compliance Statement and further approval of any such Improvements shall not be required unless there is a change or alteration in material, exterior appearance, color or texture in such Improvements. The Maintenance Association shall be entitled to collect a fee to cover the cost of inspections and other costs in connection with the issuance of any Compliance Statements and Noncompliance Statements in accordance with the provisions of this Declaration contained in the Section entitled "Limitation on Fees" of the Article entitled" Assessments" and the Section entitled "Functions of Architectural Committee" of this Article. Failure to schedule an inspection or to issue a Compliance Statement or Noncompliance Statement for any reason within the time limitation established herein shall be deemed to mean that all existing Improvements do comply with the Maintenance Association Management Documents and any such requesting Owner, purchaser, Mortgagee or prospective Mortgagee shall be entitled to receive a Compliance Statement evidenc~ng such compliance. Section 4. 08 -Performance Dates. Failure to make the inspections and responses required to be made pursuant to the provisions of this Article shall have the effect indicated below in this Section. (a) In the event the Architectural Committee fails to approve or disapprove plans and specifications within thirty (30) days after the same have been'duly submitted in accordance with any rules regarding such submission adopted by the Architectural Committee, such plans and specifications will be deemed approved except that, notwithstanding the above, plans and specifications shall not be deemed to be "duly submitted" until and unless the Owner has complied with all requirements of the Architectural Committee and has supplied all information and documents requested from time to time by the Architectural Committee. (b) The written request for an appeal to the Board of a decision rendered by the Architectural Committee must be received by the Board not more than fifteen (15) days following the final decision of the Architectural Committee. (c) The Board shall render its written decision in connection with a written appeal to the Board of a final decision of the Architectural Committee within forty-five (45) days following receipt of the request for appeal. Failure of the Board to render such decision within such period of time shall be deemed a decision in favor of the appellant.. . (d) If for any reason an inspection has not been made within forty-five (45) days of notification by the Owner of the completion of an Improvement or the Owner requesting such inspection has not been 06-02-93 10532-()()()42 l:\DOC\302\93020042.6T1f 21 ( ) notified of any noncompliance within thirty (30) days after such inspection, the Improvement shall be deemed to be completed in substantial conformance with approved plans and specifications. (e) The Architectural Committee shall provide to any Owner, prospective Owner, Mortgagee or prospective Mortgagee of a Residence who has submitted a written request therefor a statement as to the compliance or noncompliance, as the case may be, of the Improvements upon such Residence made by Owners other than Declarant with the provisions of the Maintenance Association Management Documents provided that the Architectural Committee, after notice of not less than three (3) days delivered to the Owner of such Residence, was afforded the right to enter upon the affected Residence at a reasonable time specified by the Architectural Committee. Section 4.09 -Nonconformity. In the event an Improvement was commenced without the required approval of the Architectural Committee, or, if such Improvement was not completed within the time limitation established for such Improvement in the Architectural Standards and the Master Association Architectural and Landscape Standards or in substantial conformance with the approved plans and specifications, a notice of noncompliance or noncompletion shall be delivered to the violating Owner and the Architectural Committee shall correct the violation or take other appropriate action in accordance with the procedure described in the Article entitled "Discipline of Members" of the Bylaws. Section 4.10 -Variances. The Board may authorize a variance from compliance with the architectural controls set forth in this Article when circumstances such as topography, natural obstructions, hardship, aesthetic, or environmental consideration may require; provided, however, that no variance from the use restrictions contained in the Article entitled "Use Restrictions" of this Declaration may be granted. Written evidence of such variance must be delivered to such Owner and a copy of the resolution of the Board authorizing such variance must be retained in the permanent records of the Maintenance Association. If such variances are granted, no violation of the covenants, conditions and restrictions contained in the Maintenance Association Management Documents shall be deemed to have occurred with respect to the matter for which the variance was granted. The granting of such a variance shall not / operate to waive any of the terms and provisions of the Maintenance Association Management Documents " for any purpose except as to the particular Residence and particular provision of this Article covered by the variance, nor shall it affect in any way the Owner's obligation to comply with all government laws and regulations affecting his use of his Residence including, but not limited to, zoning ordinances and lot setback lines or requirements imposed by any governmental or municipal authority. ARTICLE V INSURANCE Section 5.01 -Obligation to Insure. The Maintenance Association shall obtain and maintain in effect insurance and fidelity bond coverage in the amounts and with endorsements deemed adequate by the Board which shall be not less than the coverages hereinafter required in this Section. All coverages must be . consistent with Public Agency insurance laws. (a) Public Liability Insurance. The comprehensive general liability insurance policy shall insure the Maintenance Association against any liability incident to the ownership or use of the Maintenance Association Property or any other areas including any commercial spaces (even if such commercial spaces are leased to others) and public ways under the supervision of the Maintenance Association. The limits of such insurance shall not be less than One Million Dollars ($1,000,000) for claims arising out of a single occurrence for personal injury, bodily injury, deaths .of persons and property damage. Coverage under this policy shall include without limitation liability of the insureds for property damage, bodily injury and deaths of persons in connection with the operation, maintenance or use of the Maintenance Association Property. If such policy does not include "severability of interest" in its terms, a specific endorsement 06-02-93 10532-00042 L: \OOC\302\93020042. 6 Til 22 ( ( \ will be required precluding the insurer from denying the claim of an Owner because of negligent acts of the Maintenance Association or other Owners. (b) Fire and Casualty Insurance. The policy of fire and casualty insurance shall cover all of the insurable Improvements within the Common Area of each Phase of the Covered Property in which a Close of Escrow has occurred, including fixtures and building service equipment that are part of such Common Area as well as common personal property and supplies belonging to the Maintenance Association. The term "insurable Improvements," as used in this Article, shall mean those Improvements which are capable of being insured and specifically do not include items that are usually excluded from insurance coverage. The policy shall be in an amount equal to one hundred percent (100%) of the insurable value of all such in~urable Impr~:)Vements and .sh~l provid.e for loss or damage settlement on the current replacement cost, wlthout deductlon for depreclatlon or comsurance, of all of the property covered by the policy. Such insurance must afford protection against at least loss or damage by fire and other perils normally covered by the standard extended coverage endorsement, and such other perils which are customarily covered and required by private institutional mortgage'investors with respect to planned development projects similar in construction, location and use, including all perils normally covered by the standard "all risk" endorsement. The policy shall name as insured the Maintenance Association, for the use and benefit of the Owners. (c) Worker's Compensation Insurance. The Board shall purchase and maintain in force worker's compensation insurance, to the extent that the same shall be required by law, for all employees of the Maintenance Association. Section 5.02 -Notice of Cancellation or Modification. All insurance policies maintained by the Maintenance Association must provide that such policies may not be cancelled, reduced or substantially modified without at least ten (10) days' prior written notice to the Maintenance Association. Section 5.03 -Waiver by Owners. All insurance obtained by the Maintenance Association shall be maintained by the Maintenance Association for the benefit of the Maintenance Association, the Owners and the Mortgagees as their interests may appear. As to each of said policies which will not be voided or impaired thereby, the Owners hereby waive and release all claims against the Maintenance Association, the Board, other Owners, Declarant and agents and employees of each of the foregoing, with respect to any loss covered by such insurance, whether or not caused by. negligence or breach of any agreement by said persons, but to the extent of insurance proceeds received in compensation for such loss only. Section 5.04 -Annual Insurance Review. The Board shall at least annually determine whether the amounts and types of insurance it has obtained provide adequate coverage in light of increased construction costs, inflation, practice in the area in which the Covered Property is located, or any other factor which tends to indicate that either additional insurance policies or increased coverage under existing policies are necessary . or desirable to protect the interest of the Owners and of the Maintenance Association. If the Board determines that increased coverage or additional insurance is appropriate, it shall obtain the same. Section 5.05 -ReQuirements of Federal Agencies. Notwithstanding the foregoing provisions of this Article, the Maintenance Association shall obtain and maintain in effect such fidelity bonds and insurance policies, coverages and endorsements established from time to time by any of the Federal Agencies which, as of the recordation of this Declaration, include without limitation those specifically itemized below, except to the extent that any such policies, coverages and endorsements are not available or have been waived in writing by the particular Federal Agency that had imposed the requirements. (a) Hazard Insurance. Each hazard insurance policy must be written by an insurance carrier that meets the requirements of the Federal Agencies. Unless a higher maximum is required by California 06-02-93 10532-00042 l: \DOC\302\ 93020042.6 TN 23 ( ( \ , \ , law, the maximum deductible amount shall be the lesser of Ten Thousand Dollars ($10,000) or one percent (l %) of the policy face amount. Funds for such deductible amounts must be included in the Maintenance Association's reserves and must be so designated. The following endorsements are required: (i) an Inflation Guard Endorsement, when it can be obtained; . . (ii) . Construction Code Endorsement, if there is a construction code provision that would require change t~ undamaged portions of the building(s) even when only part of a building is destroyed by an Insured hazard. Typical endorsements include Demolition Cost Endorsements, Contingent Liability from Operation of Building Laws Endorsement and Increased Cost of Construction Endorsement; (iii) Stearn Boiler and Machinery Coverage Endorsement, if the project has central heating or cooling. This coverage should provide for the insurer's minimum liability per accident to at least equal the lesser of Two Million Dollars ($2,000,000) or the insurable value of the building(s) housing the boiler or machinery; and (iv) Agreed Amount Endorsement. The Maintenance Association must also obtain any additional coverage commonly required by private mortgage investors for developments similar in construction, location and use. (b) Liability. The Maintenance Association shall obtain such other coverage in kinds and amounts usually required by mortgage investors in other projects in the area including, where applicable and available, comprehensive automobile liability, bailee's liability, elevator collision liability, garage keeper's liability, host liquor liability, workers' compensation and employer's liability and contractual liability. (c) Fidelity Bonds. Fidelity bond coverage is not required by any Federal Agency unless the Covered Property is comprised of more than twenty (20) ReSidences. The blanket fidelity bond shall cover losses resulting from dishonest or fraudulent acts on the part of anyone who handles or is responsible for funds held or administered by the Maintenance Association, including directors, officers, trustees, employees or volunteers of the Maintenance Association. Where the Maintenance Association delegates some or all of the responsibility for the handling of funds to a management agent, fidelity bonds are required for its officers, employees and agents handling or responsible for funds of, or administered on behalf of, the Maintenance Association whether or not such persons receive compensation for services. A management agent who handles funds for the Maintenance Association should also be covered by its own fidelity bond which must provide the same coverage required by the Maintenance Association and must submit evidence of such coverage to the Maintenance Association. The Maintenance Association shall be named as an additional obligee in the management agent's bond. The fidelity bond should cover the . maximum funds that will be in the custody of the Maintenance Association or its management agent at any time while the bond is in force,· but must be written in an amount of not less than the highest amount required by any of the Federal Agencies. Fidelity bonds shall name the Maintenance Association as obligee and shall contain waivers of any defense based on the exclusion of persons who serve without compensation from any definition of "employee" or similar expression. All fidelity bonds maintained by the Maintenance Association must provide that such fidelity bonds may not be cancelled or substantially modified without at least ten (10) days' prior written notice to the Maintenance Association and each Mortgage servicing contractor that is servicing any Federal Agency owned or securitized Mortgage. (d) Flood Insurance. If any part of the Improvements within the Common Area of a Phase in which a Close of Escrow has occurred, are located in a Special Flood Hazard Area (which is designated as A, AE, AR, AO, A1-30, A-99, V, VE, OR VI-30 on a Flood Insurance Rate Map), the Maintenance 06-02-93 10532-00042 L: \DOC\302\93020042.6 Til 24 ( \ )' Association shall obtain and maintain a policy of flood insurance to cover any such Improvements. The amount of flood insurance should be at least equal to the lesser of one hundred percent (100%) of the insurable value of the facilities or the maximum coverage available under the appropriate National Flood Insurance Administration program. Unless a higher deductible amount is required by California law the maximum deductible amount for policies covering such Improvements shall be the lesser of Five Th~usand Dollars ($5,000) or one percent (1 %) oJ the policy's face amount. Funds for such deductible amounts must be included in the Maintenance Association's reserves and must be so designated. (e) Mortga~e Clause. All policies documenting insurance for hazard and flood insurance coverages obtained by the Maintenance Association must have the "standard mortgage clause" or equivalent endorsement providing that coverage of a Mortgagee under the insurance policy will not be adversely affected or diminished by an act or neglect of the Mortgagor, which is commonly accepted by private institutional mortgage investors in the area in which the Covered Property is located, unless such coverage is prohibited by applicable law. A mortgage clause in favor of Mortgagees holding Mortgages on Residences is not required on a policy insuring the Maintenance Association Property. I ARTICLE VI ENFORCEMENT OF BONDED OBLIGATIONS In the event that the Improvements to the Common Area required to be completed by the DeClarant have not been completed prior to the issuance of a Final Subdivision Public Report and the Maintenance . Association is obligee under a bond or other arrangement (the "Bond") to secure performance of the commitment of Declarant to complete such Improvements, the following provisions shall apply: (a) The Board shall consider and vote on the question of action by the Maintenance Association to enforce the obligations under the Bond with respect to any Improvements for which a Notice of Completion has not been filed within sixty (60) days after the completion date specified for such ( Improvements in the planned construction statement appended to the Bond. If the Maintenance Association \. has given an extension in writing for the completion of any Common Area Improvement, the Board shall consider and vote on the aforesaid question if a Notice of Completion has not been filed within thirty (30) days after the expiration of such extension. (b) In the event that the Board determines not to initiate action to enforce the obligations under the Bond, or in the event the Board fails to consider and vote on such question as provided above, Members representing not less than five percent (5 %) of the total voting power of the Maintenance Association may present a signed petition to the Board or to the president or secretary of the Maintenance Association demanding a meeting for the purpose of voting to override such decision or such failure to act by the Board. Such meeting shall be called according to the provisions of the Bylaws dealing with meetings of the Members, but in any event such meeting shall be held not less than thirty-five (35) days . nor more than forty-five (45) days after receipt by the Board of a petition for such meeting. (c) The only Members entitled to vote at such meeting of Members shall be the Members other than Declarant. A vote at such meeting of a majority of the voting power of such Members other than Declarant to take action to enforce the obligations under the Bond shall be deemed to be the decision of the Maintenance Association and the Board shall thereafter implement this decision by initiating and pursuing appropriate action in the name of the Maintenance Association. 06-02-93 10532-00042 l: \DOC\302\93020042. 6 TN 25 ( ARTICLE VII REPAIR AND MAINTENANCE Section 7.01 -By Maintenance Association. Except to the extent that an Owner may be obligated to maintain and repair as hereinafter provided, and without limiting the generality of the statement of duties and powers contained in the Maintenance Association Management Documents, the Maintenance Association acting through its Board and its officers shall have the duty to accomplish the following upon the Covered Property or other land in such manner and at such times as the Board shall prescribe: (a) manage, operate, control, maintain, repair, restore, replace and make necessary Imp~ovements to th~ Common :,-r~ of any Phase in which a <;lose of E~row ~as <?Ccurr~, except any portIon thereof that IS to be maIO tamed by the Owners as heremafter provIded 10 thIS ArtIcle, including without limitation, the following: ' -. (i) private streets and adjacent streetscapes within the Covered Property in conformance with the standard of maintenance established by the Public Agency responsible for public streets and streetscapes; (ii) Special Benefits Common Area, ifany. (b) manage, operate, control, maintain, repair, replace and restore, the landscaping Improvements within the Landscape Maintenance Areas of any Phase in which a Close of Escrow has occurred and any Improvements within Landscape Maintenance Areas within any other Phase described in any Supplementary Declaration in which a Close of Escrow has occurred; (c) maintain all portions of the Perimeter Walls depicted on Exhibit C of the Declaration or on any similar Exhibit attached to a Supplementary Declaration such maintenance to include the structural (' ,integrity, exterior surface, color and cap except any interior surfaces of any such Perimeter Walls that front a Residence;" IA (d) maintain Storm Drain Facilities within Storm Drain Easement Areas, including, without limitation, Storm Drain Facilities required to be maintained by the Association in accordance with the provisions of any easement appurtenant to Association Property, or any portion thereof, granted by any ,Storm Drain Agreeme':t; (e) maintain all other areas, facilities, equipment, services or aesthetic components of whatsoever nature as may from time to time be requested by the vote or written consent of a majority of the voting power of the Maintenance Association; and (f) accomplish any of the foregoing activities or any maintenance, repair, restoration or , replacement of any other Improvements that are described in a Supplementary Declaration covering any subsequent Phase of the Development. The costs of any such maintenance and repair of Special Benefits Common Area pursuant to this Section shall be Special Benefits Expenses of the Special Benefits Area. that is to receive the benefit of such maintenance. The costs of any other maintenance and repair shall be Common Expenses except as otherwise specified in this Declaration for costs which are to be paid in the form of Special Assessments, Reconstruction Assessments or Capital Improvement Assessments. 06-02-93 10532-00042 L: \DCX\302\93020042. 6 TN 26 ( ( The duty to perform the maintenance of Storm Drain Facilities shall include the obligation to maintain said Storm Drain Facilities in a debris-free and good operating condition since the Storm Drain Facilities provide the only drainage from the Covered Property. Any Storm Drain Facilities that are within Master Association Property and are being maintained by the Maintenance Association pursuant to the provisions of a Storm Drain Agreement shall be maintained in good condition and repair to a standard that is acceptable to the Master Association. In the event that the Maintenance Association fails to adequately perform such maintenance and repair, the Master Association has the right, but not the obligation, to perform such maintenance and repair, to levy Special Assessments in equal amounts against all Owners to cover the cost of performing such maintenance and repair as well as any Allowable Charges permitted under the provisions of the Master Association for the payment of such Special Assessments, and shall have the right to enforce the payment of such Special Assessments and Allowable Charges in accordance with the provisions of Article V of the Master Declaration. Any Exhibits depicting or delineating maintenance areas or obligations of the Maintenance Association are for illustrative purposes only. The "as-built" condition of all such maintenance areas and obligations as built by Declarant shall be controlling. The Maintenance Association shall be relieved of any of the obligations set forth in this Section to the extent that any of such obligations are the responsibility of the Master Association pursuant to the provisions of the Master Declaration or any Supplementary Declaration of Covenants, Conditions, and Restrictions for Newport Ridge Community Association recorded in the Official Records for the purpose, among other things, to annex additional real property to the plan of the Master Declaration. Section 7.02 -By Owner. (a) The installation of yard landscaping upon all portions of the yard of a Residence which are visible from a street, Common Area, or Master Association Property shall be completed on or before a date six (6) months from the Close of Escrow of such Residence; and (b) All portions of a Residence that are not maintained by the Maintenance Association, including, without limitation, the interior surface of any Perimeter Wall, shall be maintained, repaired, replaced, reconstructed and restored in good condition and repair in accordance with the Master Association Architectural and Landscape Standards, Architectural Standards, any rules and regulations promulgated by the Board, and, if required by such Master Association Architectural and Landscape Standards, Architectural Standards or rules and regulations, only after approval of the Architectural Committee. All slopes and terraces on any Residence maintained by an Owner shall be maintained so as to prevent any erosion thereof upon adjacent streets or adjoining property. Section 7.03 -Repair of Damage. In the event the Board shall determine that any portion of the Covered . Property required to be maintained by the Maintenance Association has been damaged or destroyed by any negligent or malicious act or omission of any Owner, his family, guests, employees, tenants, or agents, such Owner shall be responsible for the cost of repairing such damage in accordance with the Article entitled "Discipline of Members" of the Bylaws. Any increase in insurance payable by the Maintenance Association which is the result of damage by any negligent or malicious act or omission of a particular Owner, or any of such Owner's family, guests, employees, tenants or agents, shall also be paid by such Owner. The Board shall have the power to levy a Penalty Assessment against such Owner for the cost of repair or for an amount equal to any such increase in premium. Section 7.04 -Noncompliance by Owner. In the event that an Owner fails to accomplish any installation, maintenance or repair required by this Article, the Board shall give to such Owner a notice describing such 06-02-93 10532-00042 l: \OOC\302\ 93020042.6 TN 27 ( ( deficiency and give such Owner an opportunity to have a hearing as provided in the Section entitled "Enforcement" of the Article entitled "Discipline of Members" of the Bylaws. Section 7.05 -Maintenance of Public Utilities. Nothing contained herein shall require or obligate the Maintenance Association to maintain, replace or restore the underground facilities or public utilities which are located within easements in the Common Area owned by such public utilities. Section 7.06 -Transfer of Maintenance Association Property. (a) The Maintenance Association Property within a Phase shall be conveyed to the Maintenance Association prior to or concurrently with the first Close of Escrow to occur within such Phase. Declarant shall convey the Maintenance Association Property to the Maintenance Association free of all liens and encumbrances except current real property taxes and assessments (which taxes and assessments shall be prorated as of the date of conveyance), title exceptions of record and the covenants, conditions, reservations and restrictions contained in this Declaration and the instrument which conveys the Maintenance Association Property to the Maintenance Association. (b) The Maintenance Association shall be deemed to have accepted the obligation to maintain the Imp~vements required to be maintained by the Maintenance Association within any Phase (1) when such Improvements have been completed in subStantial conformance with the plans and specifications therefor, and (2) when a Close of Escrow has occurred within such Phase. The issuance of a certificate by the architect who designed any such Improvements stating that such Improvements are in substantial conformance with the original plans and specifications shall be satisfactory evidence of such completion. The Maintenance Association shall release Declarant from the Bond defined in the Article entitled "Enforcement of Bonded Obligations" of this Declaration as to any Improvements accepted for maintenance as provided above. ARTICLE VIII EASEMENTS AND RIGHTS Section 8.01 -Nature of Easements. Unless otherwise set forth herein, all easements reserved to Declarant herein shall be nonexclusive. Section 8.02 -Oil and Mineral Rights: Ingress and Egress. (a) Oil and Mineral Rights: Water Rights. There has previously been reserved by The Irvine Company, a Michigan corporation, together with the right to grant and transfer the same, easements and rights that include the following: (i) all oil, oil rights, minerals, mineral rights, natural gas rights, and other hydrocarbons by whatsoever name known, geothermal steam, and all products derived from any of the foregoing, that may be within or under the Covered Property, together with the perpetual right of drilling, . mining, exploring and operating therefor and storing in and removing the same from said land or any other land, including the right to whipstock or directionally drill and mine from lands other than the Cover~d Property, oil or gas wells, tunnels and shafts into, through or across the subsurface of L.c Covered Property and to bottom such whipstocked or directionally drilled wells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip, maintain, repair, deepen and operate any such wells or mines without, however, the right to drill, mine, store, explore and operate through the surface or the upper five hundred (500) feet of the subsurface of the Covered Property; and 06-02-93 10532-00042 l: \DOC\302\ 93OlOO42. 6 TN 28 ( ( (ii) the right and power to use or utilize on any other property owned or leased by the Irvine Company, any and all water rights or interest in water rights no matter how acquired by The Irvine Company, and all water rights or interests in water rights that may be within, under or on the Covered Property, whether such water rights shall be riparian, overlying, appropriative, percolating, prescriptive or contractual, provided, however', that the reservation did not reserve to or for the benefit of The Irvine Company any right to enter upon the surface of the Covered Property in the exercise of such rights. (b) Ingress and Egress. There is hereby reserved to Declarant, together with the right to grant and transfer same, easements over the private streets within the Covered Property for ingress, egress, use and enjoyment for the benefit of the Annexation Property. Section 8.03 -Easements for Construction and Marketing Activities. There is hereby reserved to Declarant, together with the right to grant and transfer same: (a) Improvements. Easements (1) over the Common Area for the purpose of constructing, erecting, operating and maintaining thereon, therein or thereunder roads, streets, walks, driveways, parkways and park areas, and (2) over the Covered Property for the installation and maintenance of electric, telephone, cable television, water, gas, irrigation lines, sanitary sewer lines and drainage facilities; (b) Cable Television. The right to emplace on, under or across the Covered Property transmission lines and other facilities for a cable television or a community antenna television system and the right to enter upon the Covered Property to service, maintain, repair, reconstruct and replace said lines or facilities; (c) Construction and Sales. Easements for construction, display, maintenance, sales and exhibit purposes over the Common Area in connection with the erection and sale or lease of Residences within the Covered Property provided, however, that such use shall not be for a period beyond the sale by Declarant of all Residences within the Development; (d) Utilities Shown on Tract Map. Easements over the Covered Property for the installation and maintenance of electric, telephone, cable television, water, gas, sanitary sewer lines and drainage facilities as shown on any recorded final tract or parcel map covering the Covered Property; and (e) Completing Improvements. Easements over the Common Area for the purpose of completing Improvements required to be made by the Declarant provided that access for such purpose is not otherwise reasonably available. The easements reserved to Declarant, or granted and conveyed by Declarant pursuant to this Section shall not unreasonably interfere with the use and enjoyment by the Owners of the Covered Property and any damage, repair or restoration necessitated by any such installation, construction or maintenance shall be completed by the holder of the easement that has entered upon the Covered Property for any such. purpose within a reasonable time after the occurrence of such damage or need for restoration. Section 8.04 -Easements for Owners. There is hereby reServed to Declarant, together with the right to grant and transfer same: (a) Ingress. Egress and Recreational Rights. Easement on and upon the Nonexclusive Use Common Area, which, when granted and conveyed by Declarant shall be appurtenant to each Residence in 06-02-93 10532-00042 L: \POC\302\ 93020()42. 6 TN 29 ( (' each Phase of the Covered Property, for ingress, egress, use and enjoyment (which includes, without limitation, the unrestricted right of ingress and egress to such Owner's Residence); and (b) Drainage. Easement, which shall be for the benefit of and appurtenant to the Residence receiving the benefit thereof: (i) for surface drainage from such Residence over any contiguous portion of the Covered Property and for drainage over, under, through and across any Storm Drain Facilities within any Storm Drain Easement Area that is contiguous to such Residence together with the right to maintain and repair any such Storm Drain Facilities that are not being maintained by the Maintenance Association or the Master Association; and (ii) to the extent provided or permitted by the provisions of the Master Declaration or any Supplementary Declaration of Covenants, Conditions and Restrictions recorded for the purpose, among other things, to annex additional property to the Master Declaration, for surface drainage. from such Residence over any contiguous portion of any Master Association Property for drainage over, under, through and across any storm drain improvements contiguous to such Residence that were constructed in the course of the initial development and construction of such contiguous portion of the Master Association Property, together with the right to maintain and repair any such storm drain improvements that are not being maintained by the Master Association. Section 8.05 -Easements for Maintenance Association. There is hereby reserved to Declarant, together with the right to grant and transfer the same to the Maintenance Association: (a) easements over the Covered Property, or portion thereof, as follows: (i) . Repair and Maintenance. Easement for the purpose of performing the repair and maintenance obligations described in Article VII of this Declaration and emergency repairs or other work reasoriably necessary for the proper maintenance of the Covered Property; (ii) Discharge Obligations. Easement for the purpose of permitting the Maintenance Association to discharge any other obligations and powers as described in the Maintenance Association Management Documents; and (iii) Drainage. Easement, which shall be for the benefit of and appurtenant to the Maintenance Association Property receiving the benefit thereof for drainage from such Maintenance Association Property over any contiguous portion of the Covered Property for sheet flow and other drainage over, under, through and across drainage Improvements installed by the Declarant together with the right to maintain and repair any such drainage Improvements that are not being maintained by the Master Association . . Any damage to Improvements upon the Covered Property resulting from the exercise of any of the easement rights granted pursuant to this Section shall be repaired by the entity exercising such rights within a reasonable time after the occurrence of such damage unless otherwise specified in the document by which such easement was conveyed. (b) Over the Master Association Property, easements as conveyed in any Storm Drain Agreement assigned to the Maintenance Association for drainage from the Maintenance Association Property to which such easement is appurtenant over the Master Association Property which is burdened with the easement for drainage over, under, through and across Storm Drain Facilities, and for the maintenance, repair, replacement and reconstruction of such Storm Drain FAcilities all as more particularly described in the Storm Drain Agreement. 06-02-93 10532-00042 L: \OOC\302\93020042. 6 TN 30 ( -Section 8.06 -Support. Settlement and Encroachment. There is hereby reserved to Declarant, together ,with the right to grant and transfer the same, the following reciprocal easements for the purposes set forth below: (a) an easement appurtenant to each Lot which is contiguous to another Lot or Maintenance Association Property which Lot shall be the dominant tenement and the contiguous Lot or Maintenance Association Property shall be the servient tenement; and . (b) an ~se?1ent appurtenant to the Main~enance Association Pr~perty contiguous to a Lot, which MaIntenance ASSOClation Property shall be the dommant tenement and WhICh contiguous Lot shall be the servient tenement. Said easements shall be for the purposes of: (a) engineering errors, errors in construction, reconstruction, repair, support, and accommodation, of the natural settlement or shifting of any portion of the Improvements and for the maintenance thereof; (b) minor encroachments by reason of a roof or eave overhang and for the maintenance of such roof or eave overhang by the owner of the dominant tenement for as long as such encroachments exist; and (c) encroachment of fireplaces, doorsteps, foundations, footings, garage doors, utilities and other appurtenances or fixtures and the maintenance thereof by the owner of the dominant tenement, which, in the cpnstruction of the structures upon the dominant tenement or from any reconstruction or modifications of such structures, project beyond the exte~al surface of the outer walls of such structures. ( The rights and obligations of owners of the dominant tenements shall not be altered in any way by said encroachments, settlement or shifting provided, however, that in no event shall an easement for encroachment be created in favor of an owner of the dominant tenement if said encroachment occurred due to the willful misconduct of any such owner. In the event any portion of a structure on the Covered Property is partially or totally destroyed and then repaired or rebuilt, each such owner agrees that minor encroachments over adjoining Lots or Maintenance Association Property shall be easements for the maintenance of said encroachments as long as they shall exist. Section 8.07 -Utilities and Cable Television. Wherever sanitary sewer house connections, water house connections, air conditioning connections or ducts, electricity, gas, telephone and cable television lines or drainage facilities are installed within the Covered Property, the Maintenance Association or any Owner as the owner of any property served by said connections, lines or facilities shall have the right, and there is hereby reserved to Declarant, together with the right to grant and transfer the same to any such owner, an easement to the full extent necessary for the full use and enjoyment of such portion of such connections which service such owner's property, and to enter, or have utility or cable television companies enter upon any portion of the Covered Property including without limitation, upon the Lot "in or upon which said -" connections, lines or facilities or any portion thereof lie, to repair, replace and generally maintain said connections, lines "and facilities as and when the same may be "necessary, provided that any damage caused by such entry shall be repaired by such owner, utility or cable television company as promptly as possible after completion of work thereon. Section 8.08 -Public Bicycle and Pedestrian Trails. There is hereby reserved to Declarant, together with the right to grant and transfer the same, an easement for public ingress and egress over any bicycle, pedestrian, equestrian or other trails shown on any recorded final tract or parcel map covering the Covered 06-02-93 10532-00042 L:\DOC~\~.6TH 31 ( ( ) Property. The reservation of this easement shall not imply any light of public use of the Covered Property or Improvements. Section 8.09 -Clustered Mailboxes. There is hereby reserved to Declarant, together with the right to grant and transfer same, easements over the Covered Property to the extent necessary to comply with any requirements of the United States Posta). Service and the appropriate Public Agency to cluster mailboxes for the delivery, deposit and pickup of United States mail, for maintenance, repair and replacement of such mailboxes and for ingress and egress to and across that portion of the Covered Property to the extent necessary for all such purposes. The easement rights and obligations of each Owner shall be limited to the mail~x that servi~s such Owner and any appurtenances thereto and the portion of the Covered Property on whlch such maIlbox and appurtenances are located and to the extent necessary to access said mailbox for all of the foregoing purposes. Section 8.10 -Subordination. Except as may be otherwise provided in the grant or dedication of an easement, any easement conveyed in favor of a Public Agency shall be prior and superior to all other easements described herein, and any easement conveyed pursuant to the provisions of this Article to a utility company shall be prior and superior to all other easements described herein except any easement in favor of a Public Agency. Grantor and any grantee by acceptance of a conveyance of any easement described in this Declaration, whether or not so stated in such conveyance document, agree that such easement shall be subordinate to any such prior and superior easements and further agree to execute any document acknowledging such subordination that may be required by the holder of any such prior easement. Section 8.11 -Delegation of Use. Any Owner may delegate his right of enjoyment to the Nonexclusive Use Common Area to the members of his family or his tenants who reside on his Residence or to a vendee under a land sales contract subject to the covenants, conditions and restrictions contained in the Maintenance Association Management Documents and the rules and regulations adopted by the Board. In the event and for so long as an Owner delegates said rights of enjoyment to his tenants or a vendee, said Owner shall not be entitled to the use and enjoyment of any facilities or equipment belonging to or controlled by the Maintenance Association for the use and enjoyment of its Members. Section 8.12 -Waiver of Use. No Owner may exempt himself from personal liability for Assessments duly levied by the Maintenance Association, or release the Residence owned by him from the liens, charges and other provisions of the Maintenance Association Management Documents by waiver of the use and enjoyment of the Nonexclusive Use Common Area or the abandonment of his Residence. ARTICLE IX USE RESTRICTIONS Section 9.01 -Commercial Use. Subject to the subsection entitled "Construction and Sales" of the Section . entitled "Reservations to Declarant" of the -\.rticle entitled "Easements and Rights" of this Declaration, no part of a Residence shall be used or cau~ ') be used or allowed or authorized in any way, directly or indirectly, for any nonresidential purposes e).~pt that a Residence may be used for business, commercial, manufacturing, mercantile, storing, veiding, or similar nonresidential purposes provided that (i) there is no external evidence of such activity, (ii) :,uch acuvities are conducted in conformance with all applicable ;overnmental ordinances, (iii) the patr~ns or dientele of such activities do not visit the Residence or park .;~omobiles or other vehicles within tn~ Covered Property, (iv) the existence or operation of such activities .5 not apparent or detectable by sight, sound or smell from the exterior of a Residence, (v) such nonresidential activity does not eerrate an unreasonable amount of traffic, and (v) such activities are consistent with the residential ::. .icter of the Covered Property and conform with the provisions of this 1\ ~l:-~~~~.:~:~~ 06-02-93 10532-00042 !. :\OOC\302\~.6TII 32 ( ( Sect~on 9.02 -Signs. No sign or billboard of any. kind shall be displayed to the public .view on any portIon of the Covered Property except (1) such sIgns as may be used by Declarant or Its sales agents in connection with the development of the Covered Property and sale of the Residences, and (2) signs that are installed or displayed by the Maintenance Association; provided, however, that in accordance with Section 712 of t~e Cali.fornia Civil Code, ~ Owner. may display on his Reside~ce, OF o~ real property owned by others WIth theIr consent, or both, SIgns WhIch are reasonably located, In plaIn Vlew of the public, are of reasonable dimensions and design, do not adversely affect public safety, including traffic safety, and which advertise the property for sale, lease, or exchange, or advertise directions to the property or the Owner's or agent's address and telephone number. As provided in said Section 712 of the California Civil Code, a sign which conforms to an ordinance adopted in conformity with Section 713 of the California Civil Code shall be deemed to be of reasonable dimension and design. In addition, any sign within the Covered Property that is placed on or near a Perimeter Wall or that is visible from any primary arterial right-of- way shall be prohibited because it shall be deemed to not be reasonably located. Declarant shall repair any damage to or complete any restoration of the Covered Property caused or necessitated by the display of signs by Declarant or its sales agents within a reasonable time after the occurrence of such damage or need for restoration. Section 9.03 -Nuisance. No noxious or offensive trade or activity shall be permitted upon any part of the Covered Property, nor shall anything be done thereon which shall in any way interfere with the quiet enjoyment of each of the Owners of his respective Residence, or which shall in any way increase the rate of insurance on any other Residence or the Covered Property. Section 9.04 -Temporary Residences. No garage, trailer, camper, motor home or recreational vehicle shall be used as a dwelling structure although the Board may adopt rules that would permit the temporary use of such structure or vehicles for such purpose on a limited basis under prescribed conditions such as, but not limited to, the period of time that the residential dwelling structure may be under construction or renovation. No structure or a temporary character, trailer or tent shall hereafter be used on any Residence at any time, either temporarily or permanently, that extends above the height of a fence enclosing such structure. Temporary structures shall specifically not include any Improvements that are permitted under the Architectural Standards and Master Association Architectural and Landscape Standards or that are approved by the Architectural Committee. Section 9.05 -Vehicles. (a) The following terms used in this Section are defined to mean as follows: (i) "Commercial Vehicle" shall mean a truck of greater than one ton capacity; (ii) "Recreational Vehicle" shall mean any recreational vehicle or equipment designed to be used for recreational purposes, to include, without limitation, trailers, boats, campers, trailer coaches, buses, house cars, camp cars, motor homes (if the motor homes are a size larger than seven (7) feet in height and/or greater than one hundred twenty-four (124) inches in wheel base length) or any other similar type of equipment or vehicle; and (iii) "Temporary Parking" shall mean temporary parking for washing and polishing of vehicle.> and activities related thereto, temporary parking for loading and ur.loading of vehicles, parking of vehicles belonging to guests of Owners and temporary parking of commercial vehicles being used in the furnishing of services to the Maintenance Association or the Owners. (b) Except for Temporary Parking, no Commercial Vehicle, Recreational Vehicle or any other similar type of equipment or vehicle shall hereafter be permitted to remain upon the Covered Property 06-02-93 10532-00042 L: \DOC\302\93020042.6 Til 33 ( ( unl~ss placed or m~n~ned within an encl?sed area, or un.less obscured from view cf adjoining streets. MaIntenance ASSOClatton Property and ResIdences by a solId wall or fence or appropriate screen; and (c) No automobile, Commercial Vehicle, Recreational Vehicle or any other motorized vehicle may be dismantled, rebuilt, repaired, serviced or repainted on the Covered Property unless performed within a completely enclosed. structure located on a Residence which completely screens the sight and .sound of such activity from streets, Maintenance Association Property and neighboring Residences. The Board may adopt rules for the regulation of the admission and parking of vehicles within the Covered Property, including the assessment of Penalty Assessments to Owners who violate, or whose family guests, employees, tenants or agents violate, such rules. ' Section 9.06 -Use of Common Area. The Board may establish reasonable rules and regulations as it deems appropriate in its sole discretion with regard to the use and enjoyment of any portion of the Common Area, including, without limitation, designating portions thereof as Maintenance Association Common Area, for "parking" and "guest parking" or granting the exclusive use of portions thereof for a limited period of time for parking purposes to Owners who are temporarily being denied vehicular access to their Residences because of any construction, reconstruction, repair or maintenance activity being conducted by the Board or conducted by others with the consent of the Board. Section 9.07 -Animals. No livestock, reptiles, poultry or other animals of any kind shall be raised, bred or kept upon the Covered Property, except that dogs, cats or other household pets may be kept on the Residences, provided they are not kept, bred or maintained for any commercial purpose, or in numbers deemed unreasonable by the Board. Notwithstanding the foregoing, no animals may be kept on the Residences which in the good faith judgment of the Board result in any annoyance or are obnoxious to residents in the vicinity. All animals permitted to be kept by this Section shall be kept on a leash when on any portion of the Covered Property except when confined within a Residence. Section 9.08 -Restrictions on Drilling Operations. No oil drilling, oil development operations. oil refining, quarrying, or mining operations of any kind shall be permitted upon or in the Covered Property nor, subsequent to the recording of this Declaration, shall oil wells, tailks, tunnels, or mineral excavations or shafts be installed upon the surface of the Covered Property or within five hundred (500) feet below the surface of such properties. No derrick or other structure designed for use in boring for water, oil or natural gas shall be erected, maintained or permitted upon the Covered Property. Section 9.09 -Unsightly Items. All weeds, rubbish, debris, or unsightly material or objects of any kind shall be regularly removed from the Residences and shall not be allowed to accumulate thereon. All clotheslines, refuse containers, trash cans, woodpiles, storage areas, machinery and equipment shall be prohibited upon any Residence unless obscured from view of adjoining streets or portions of the Covered Property from a height of six (6) feet or less. Section 9. 10 -Antennae: Roof Structures. (a) Antennae. No television, radio, or other electronic towers, aerials, antennae or devices of any type for th,,! reception or transmission of radio or television broadcasts or other means of communication shall hereafter be erected, constructed, placed or permitted to remain on the Covered Property unles~ they are (1) contained within a building or underground conduits, '~) completely obscured from view from any streets or any other portion of the Covered Property or the property encumbered by the Master Declaration, or (3) screened from view by an appropriate screen that has been approved in writing by the Architectural. Committee. 06-02-93 10532-00042 L: VXlC\302\ 93020042 • 6TH 34 \ ! (b) Solar Energy Systems. As provided in Section 714 of the California Civil Code, reasonable ( ~estrictions on the installation of solar energy systems that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance, or which allow for an alternative system of comparable cost, efficiency, and energy conservation benefits may be imposed by the Architectural Co.m~ittee. Whenever approval is required for the installation or u~ of a solar energy system, the apphcatlon for approval shall be processed and approved by the Archltectural Committee in the same manner as an application for approval of an architectural modification to the property, and shall not be willfully avoided or delayed. "Solar energy system" as used herein shall mean as such term is defined in Section 801.5 of the California Civil Code. Failure to comply with Section 714 of the California Civil Code could result in the payment of actual damages and a civil penalty and the prevailing party in any action to enforce compliance with said Section 714 of the California Civil Code shall also be awarded reasonable attorneys fees. . (c) Other Roof Structures. No other appliances or installations on exterior roofs of structures including, without limitation,' roof-top turbine ventilators, shall be permitted unless they are installed in such a manner that they are not visible from streets or any other portion of the Covered Property. Section 9.11 -Drainage. All drainage of water from any Residence shall drain or flow into adjacent streets or alleys and shall not be allowed to drain or flow upon, across, or under any other portion of the Covered Property unless an easement for such purpose is granted. An Owner shall not alter the drainage of water which exists pursuant to the drainage plan originally created at the time of the initial sale of his Residence by Declarant except through the use of a positive drainage device which does not materially affect the concentration or flow direction of drainage water under said drainage plan. . Section 9.12 -Garages. No garage doors shall be permitted to remain open except for a temporary purpose, and the Board may adopt rules for the regulation of the opening of garage doors, including the assessment of Penalty Assessments to Owners whose garage doors have remained open in violation of such rules. Section 9; 13 -Window Covers. Curtains, drapes, shutters or blinds may be installed as window covers. No window shall be covered with aluminum foil, newspapers or other material not designed for use as a window cover. Section 9.14 -California Vehicle Code. The applicable Public Agency shall be allowed to impose and enforce all provisions of the applicable California Vehicle Code sections or local ordinances on any private streets contained within the Covered Property. Section 9.15 -Leases. Any agreement for the leasing or rental of a Residence (hereinafter in this Section referred to as a "lease") shall be in writing and shall provide that the terms of such lease shall be subject . in all respects to the provisions of the Maintenance Association Management Documents and any applicable agreements between the Maintenance Association and any of the Federal Agencies. Any Owner who shall lease his Residence shall be responsible for assuring compliance by such Owner's lessee with the Maintenance Association Management Documents. No Residence shall be leased for any period less than seven (7) days. The Development and the Residences shall be operated to the extent reasonably possible in a manner that will satisfy guidelines or regulations that permit the Federal Agencies to purchase, insure, or guarantee First Mortgages encumbering Residences. As· long as hotel-type rentals preclude Federal Agencies from pcrchasing, insuring or guaranteeing First Mortgages, as aforesaid, such hotel type rentals shall not be permmed. "Hotel-type rentals" have been defined by FNMA to mean rer ..a.ls that include the presence of a regIstration desk, available food and telephone service, daily occupancy 3.tes, daily cleaning services or rental pooling agreements that require Owners to either rent their Residen .. .::s or give management firm control over the occupancy of the Residences. 06-02-93 10532-()()042 L: \J)(lC\3a2\~ .6TH 35 Section 9.16 -View. Each Owner by acceptance of a deed or other conveyance of a Residence (acknowledges that any construction or Improvement by Declarant, the Maintenance Association or any \ other Owner, or any owner of any other property may change, impair, obstruct or otherwise affect anv ( view that such Owner may have enjoyed at the time of the purchase of his Residence. The Maintenance Association Management Documents do not contain any provisions intended to protect any view or to guarantee that any views that an Owner may have enjoyed will not be impaired or obstructed in the future by changes to other property. Each Owner further acknowledges that any rights acquired do not include the preservation of any view and further consents to such obstruction and/or impairment. No representations or warranties of any kind, express or implied, have been given by Declarant, or its officers, employees, partners, subsidiaries, affiliated companies, or directors and agents of any of them in connection with the preservation of views and each Owner and/or the Maintenance Association agree to hold Declarant, and all of such officers, employees, partners, subsidiaries, affiliated companies, and directors and agents of any of them free of liability from such damages, costs, expenses or charges incurred in connection therewith, such as, but not limited to, attorneys' fees and court costs and costs arising froll). any changes, obstruction or impairment of the view from such Owner's Residence. Section 9.17 -Post Tension Slabs. Building structures within the Covered Property may have been constructed using post tension concrete slabs (defined to mean concrete slabs that contain a grid of steel cables under high tension). Each Owner, by acceptance of a deed to his Residence, acknowledges that modification or alteration of concrete slab floors contained within his Residence could damage the integrity of such post tension slabs and could cause serious personal injury or property damage. Each Owner and/or the Maintenance Association agree to hold Declarant and all partners, subsidiaries and affiliated companies of Declarant, and all of the officers, employees, directors and agents of any of them, free of liability from such damages, costs, expenses or charges incurred in connection therewith, such as, but not limited to, attorneys' fees and court costs and costs incurred by reason of injury to property or injury to persons caused by any modification or alteration of such post tension slabs. Section 9.18 -Fire Protection Access Easement Areas. Improvements, to include without limitation, speed bumps and gates, shall not be permitted upon any fire protection access easement area within any portion of the Cbvered Property without the approval of the Fire Chief of the applicable local Public Agency. Section 9.19 -Prohibition of Removal of Perimeter Walls. The Perimeter Walls described on Exhibit D shall not be removed, reconstructed or modified as to structure, finish or color. Any such Perimeter Wall, or portion thereof, that has been damaged or destroyed shall be repaired or reconstructed so that such Perimeter Wall shall at all times remain in the condition as initially constructed in the course of the development and construction of the Newport Ridge Planned Community. Section 9.20 -Street Trees. Street trees planted by the Declarant are not to be removed or relocated and any street trees that are damaged or destroyed or that had to be removed because of disease must be replaced with a like species and in a size acceptable to the Architectural Committee. ARTICLE X DESTRUCTION OF IMPROVEMENTS Section 10.01 -Definitions. The following terms used in this Article are defined to mean as follows: (a) "Insured Improvements" shall mean the Improvements on the Covered Property insured under the fire and casualty insurance policy maintained by the Maintenance Association and shall consist of Maintenance Association Common Area Improvements and Common Facilities. 06-02-93 10532-00042 L: \DOC\302\ 9302IJ042 _ 6 TN 36 ( ( (b) "Affected Maintenance Association Common Area Improvements" shall mean partially or totally destroyed insured Maintenance Association Common Area Improvements. (c) Facility. "Affected Common Facility" shall mean a partially or totally destroyed insured Common (d) "Acceptable Range of Reconstruction Cost" shall mean that the amount of the insurance proceeds paid for partially or totally destroyed Insured Improvements together with the amount of any deductible amount designated in the fire and casualty insurance policy maintained by the Maintenance Association totals at least ninety percent (90 %) of the estimated cost to repair, replace or reconstruct such partially or totally destroyed Insured Improvements. (e) "Substantial Destruction" shall mean a destruction of Insured Improvements representing at least seventy-five percent (75 %) of the current replacement cost value of all Insured Improvements upon the Covered Property. Section 10.02 ':' Board Action. In the event any Insured Improvements are damaged, the Board shall take the following action: (a) Acceptable Range of Reconstruction Cost. The Board shall ascertain the cost of repair, replacement or reconstruction of such Insured Improvements by obtaining fixed price bids from at least two (2) reputable contractors, which bids shall include the obligation of the contractor to obtain a performance bond, if the Board deems that such bids are necessary or appropriate. The Board shall further have full authority to negotiate with representatives of the insurer and to make settlement with the insurer· for less than full insurance coverage on the damage. Any settlement made by the Board in good faith shall be binding upon all Owners. After the settlement has been approved by the Board, any two (2) directors of the Maintenance Association may sign a loss claim form and release form in connection with the settlement of a loss claim. (b) Notice of Reconstruction Assessments. The Board shall promptly cause notice to be delivered to all Owners if, during the process of determining the Acceptable Range of Reconstruction Cost, it appears likely that the repair, replacement or reconstruction of a partially or totally destroyed Insured Improvement will result in the levying of Reconstruction Assessments. Such notice shall specify the estimated amount of any such Reconstruction Assessment. (c) Vote of Members. The Board shall call a special meeting or shall distribute written ballots to the Owners for action to be taken without a meeting to determine whether not to proceed with the repair, replacement or reconstruction of partially or totally destroyed Insured Improvements upon the happening of anyone of the following events: (i) a Substantial Destruction; (ii) a determination that the requirements of the Acceptable Range of Reconstruction Cost have not been met; (iii) receipt of a written request of Owners representing at least five percent (5 %) of the total voting power of the Owners requesting such action; or (iv) failure or inability to make a determination as to the Acceptable Range of Reconstruction Cost within sixty (60) days of the date of the destruction. 06-02-93 10532-00042 l: \DOC\302\ 93020042.6 TN 37 ( Section 10.03 -Reconstruction. The repair, replacement or reconstruction of the Insured Improvements shall commence as soon as practicable following either of the following events: (a) a determination that the requirements of the Acceptable Range of Reconstruction Cost have been met, except that if Reconstruction Assessments must be levied, such work shall not commence until ten (10) days have elapsed following the delivery of the notice of the Reconstruction Assessment to all Owners required to pay Reconstruction" Assessments. The notice of estimated Reconstruction Assessment requi.r~ t<? be delivered to each such Owner as ~ereinabove provided in this Article shall satisfy this condltIon If the actual amount of the Reconstructlon Assessment does not exceed the estimated amount set forth in the said notice; or (b) approval of such action by not less than thirty-four percent (34 %) of the voting power of the Owners other than Declarant. Section 10.04 -Proceeds of InSurance. All insurance proceeds covering the Insured Improvements shall be paid to the Maintenance Association to be used for the benefit of Owners, mortgagees and others as their respective interests shall appear. In the event any portion of the insurance proceeds were paid to a mortgagee, an amount equal to the amount paid to such mortgagee shall be paid to the Board by the Owners. In the event any Owner fails to pay such amount within thirty (30) days of a written demand therefor by the Maintenance Association, the Board may levy a Special Assessment against such Owner and his Residence for such amount. Section 10.05 -Reconstruction Assessments. If necessary, the Board shall levy a Reconstruction Assessment against the Owners at such time and in such amount determined necessary to cover the costs of repair, replacement or reconstruction in excess of insurance proceeds. Section 10.06 -Compliance with Plans. Any reconstruction undertaken pursuant to this Article shall substantially conform to the original plans and specifications unless other action is approved by a majority of the voting power of the Maintenance Association. Section 10.07 -Determination of Allocable Proceeds. The amount of insurance proceeds "allocated" or "allocable" to an Affected Common Facility or Maintenance Association Common Area Improvement shall be determined pursuant to this Section as follows: (a) In the event the insurance carrier allocates insurance proceeds among Affected Common Facilities and Affected Maintenance Association Common Area Improvements such allocation is approved by the Board, such allocation shall be final and binding upon the Owners and mortgagees. (b) In the event the insurance carrier fails to allocate the insurance proceeds, such allocation shall be determined by multiplying the amount of insurance proceeds available for distribution by a fraction, the denominator of which is the total decrease of M.A.!. appraised fair market value of all of the Affected Common Facilities and Affected Maintenance Association Common Area Improvements and the numerator of which is the decrease of M.A.!. appraised fair market value of each such Affected Common Facility or Affected Maintenance Association Common Area Improvements. The appraised values shall be determined by an M.A.!. apprAiser selected by the Board. Such allocation shall be final and binding on the Owners, the mortgagees and the Maintenance Association." Section 10.08 -Distribution of Insurance Proceeds. In the event there has been a decision not to repair, replace or reconstruct any partially or totally destroyed Insured Improvements, the Board shall retain the insurance proceeds allocated to each Affected Common Facility or Affected Maintenance Association Common Area Improvement in the general funds of the Maintenance Association subject to the prior rights of all mortgagees holding mortgages encumbering the particular Affected Common Facility or Affected 06-02-93 10532-00042 l: \OOC\302\ 9302004Z. 6 Til 38 ( ( Maintenance Association Common Area Improvement for which such insurance proceeds have been allocated. : Allocable proceeds paid to mortgagees shall be paid in the order of their recorded priority on each such Affected Common Faciiity or Affected. Maintenance Association Common Area Improvement. Sec~ion 10.09 -Pa,YTr~ent of Mortga~ees.. Any insurance proceeds paid to a mortgagee pursuant to this ~rtlcle shall be paId m the amount requued by such mortgagee, but not to exceed (1) the outstanding mdebtedness secured by said mortgage, or (2) the insurance proceeds allocated to such Affected Common Facility or Affected Maintenance Association Common Area Improvement as hereinabove provided in this Article, whichever of (i) or (ii) is the lesser. ARTICLE XI EMINENT DOMAIN I Any awards paid in the event of condemnation by eminent domain, or by sale under threat thereof of all or any. portion of the Covered Property owned by the Declarant that is not within a Phase in which a Close of Escrow has occurred, shall be negotiated by, and paid to, the Declarant. Section 11.01 -Definition of Taking. The term "taking" as used in this Article shall mean condemnation by eminent domain, or by sale under threat thereof, of all or part of the Maintenance Association Property that is within a Phase in which a Close of Escrow has occurred. Section 11.02 -Representation by Board. In the event of a t:.a.king, the Owners hereby appoint the Board and such persons as the Board may delegate to represent all of the Owners in the affected. Phases in which a Close of Escrow has occurred in an action to recover all awards. No Owner shall challenge the good faith exercise or the discretion of the Board in fulfilling its duties under this Article. The Board shall act in its sole discretion with respect to any awards being made in connection with the taking and shall be entitled to make a voluntary sale to the condemnor in lieu of engaging in a condemnation action. Section 11.03 -Award. Any awards received on account of the taking of Common Area in a Phase in which a Close of Escrow has occurred shall be paid to the Maintenance Association and shall be retained in the general funds of the Maintenance Association subject to the prior rights of any mortgagee holding an encumbrance upon any Maintenance Association Property for which such award has been paid. Section 11.04 -Inverse Condemnation. The Board is authorized to bring an action in inverse condemnation. In such event, the provisions of this Article shall apply with equal force. ARTICLE XII PARTY WALLS Section 12.01 -Definition. Each wall or fence which is placed on the dividing line between two Lots shall constitute a party wall, and, to the extent not inconsistent with the provisions of this Article, the general rules of law regarding party walls and liability for property damage due to negligence or willful acts or omissions shall apply thereto. A party wall shall be considered to adjoin and abut against the property line dividing the Lots from the bottom of the foundation over the full length and height of any wall or fence. Section 12.02 -Use. Owners whose Lots are separated by a party wall shall equally have the right to use such party wall, except that each shall have the right to the exclusive use of the surface of the party wall 06-02-93 10532-00042 L:\DOC\302\9'3020042.6TII 39 ( (' .. ~ on his side. Neither such Owner shall use any portion of such party wall so as to interfere with the use and enjoyment of the other Owner. Section 12.03 -Sharing of Remir and Maintenance. The cost of reasonable repair and maintenance of a party wall shall be shared by Ahe Owners who make use of the waIl in proportion to such use. ~ ~o..("Q\'('.,~"w\u >.0.)) ~ ~\'t~'>0/ . Section 12.04 -Destruction. If a party wall is destroyed or damaged by fire or other casualty, any Owner who ~as the use thereof may restore it, and if the other Owners thereafter make use of the wall, they shall c~ntnbute to the cost of restoration thereof in proportion to such use without prejudice, however, to the nght of any such Owners to call for a larger contribution from the others under any rule of law regarding liability for negligent or willful acts or omissions. Section 12.05 -Right to Contribution Runs With Land. The right of an Owner to contribution from any other Owner under this Article shall be appurtenant to the land and shall pass to such Owner's successors in title. . Section 12.06 -Arbitration. In the event of any dispute arising concerning a party Wall, or under the provisions of this Article, said dispute shall be submitted to the Board for a resolution thereof. In the event the Board cannot or will not resolve such dispute, it shall employ an arbitrator for said purpose. Said· arbitrator shall be selected at the discretion of the Board but shall be a member of the American Arbitration Association. The arbitrator who is chosen by the Board shall resolve said dispute pursuant to the prevailing rules of the American Arbitration Association and the requirements of the law of the State of California. ARTICLE Xili ANNEXATIONS Real property may be annexed to and become subject to this Declaration by any of the methods set forth nereinafter in this Article, as follows: Section 13.01 -Plan of Development. Declarant intends to sequentially develop the Annexation Property on a phased basis; however, Declarant may elect not to develop all or any part of such real property, to annex such real property to this Declaration in increments of any size whatsoever, or to develop more than one such increment at any given time and in any given order. Moreover, Declarant reserves the right to subject all or any portion of the Annexation Property to the plan of this Declaration or one or more separate declarations of covenants, conditions and restrictions which subjects said property to the jurisdiction and powers of a homeowner association or other entity with powers and obligations similar to the Maintenance Association and which is not subject to the provisions of this Declaration. Although Declarant shall have the ability to annex the Annexation Property as provided in this Article, Declarant shall not be obligated to annex all or any portion of such property, and such property shall not become . subject to this Declaration unless and until a Supplementary Declaration shall have been so executed and recorded. Section 13.02 -Annexation Without Approval. All or any part of the Annexation Property may be annexed to and become subject to this Declaration and subject to the jurisdiction of the Maintenance Association without the approval, assent or vote of the Maintenance Association or its Members, provided that: . (a) the recordation of the Supplementary Declaration annexing a new Phase is effected prior to the third anniversary of the first Close of Escrow to occur after the issuance of the most recently ISSUed Final Subdivision Public Report for the most recent Phase of the Covered Property; and 06-02-93 10532-00042 L: \l>OC\302\ 93();20042. 6 Til 40 ( ( (b) the DRE has agreed to issue a Final Subdivision Public Report which shall be deemed to be evidence that Declarant has furnished proof satisfactory to the DRE that (1) no proposed annexation will result in overburdening of the common interests of the then existing Owners, and (2) no proposed annexation will cause a substantial increase in Assessments against existing Owners which was not disclosed in Final Subdivision Public Reports under which pre-existing Owners purchased their interests. Section Q.03 -Annexation Pursuant to Approval. Upon approval in writing of the Maintenance Associaaon, pursuant to the vote or written assent of sixty-seven percent (67 %) of the total voting power of Members other than DecIarant as such voting power is determined pursuant to the Section entitled "V<;>ting Rights" of the Article entitled "The .Main~ Association" of this Declaration, any person who deSIres to add real property to the plan of thIS Declaranon other than the Annexation Property and to subject such property to the jurisdiction of the Maintenance Association, may file or record a Supplementary Declar:ati~n. The provisions of this Section shall also apply to th~ Annexation Property SUbsequent to the explraqon of the power of Declarant to annex such property WIthout the approval of the Members as provided in this Article. Section 13.04 -' Effectuation of Annexation. Upon the satisfaction of all of the conditions contained in this Article, the recordation of a Supplementary Declaration in the Official Records shall constitute and effectuate the annexation of the Annexed Property described therein, making said Annexed Property subject to this Declaration and subject to the functions, powers and jurisdiction of the Maintenance Association, and thereafter said Annexed Property shall be part of the Covered Property and all of the Owners of Residences in said Annexed Property shall automatically be Members. The Supplementary Declaration shall incorporate by reference all of the covenants, conditions, restrictions, easements and other provisions of this Declaration, and may contain such complementary additions or modifications of the covenants, conditions and restrictions in this Declaration as may be necessary to reflect the different character, if any, of the Annexed Property as are not inconsistent with the plan of this Declaration. In no event, however, shall any such Supplementary Declaration revoke, modify or add to the covenants established by this Declaration or by any prior Supplementary Declaration with respect to property covered by this Declaration at the time of the recording of the said Supplementary Declaration. Section 13.05 -Mergers or Consolidations. Upon a merger or consolidation of the Maintenance Association with another association which merger or consolidation must be approved by the vote or written assent of sixty-seven percent (67%) of the total voting power of Members other than Declarant, the Maintenance Association's properties, rights and obligations may, by operation of law, be transferred to the surviving or consolidated association, or, alternatively, the properties, rights and obligations of another association may, by operation of law, be added to the properties, rights and obligations of the Maintenance Association as a surviving corporation pursuant to a merger. The surviving or consolidated association may administer the covenants, conditions and restrictions established by this Declaration within the Covered Property, together with the covenants, conditions and restrictions established upon any other property as one plan. Section 13.06 -Deannexation. Any instrument deleting or deannexing any portion of the Covered Property from the coverage of this Declaration must be executed by Declarant, and, if any portion of such Covered Property is owned by any persons or entities other than Declarant, also by such other Owner(s) and must be recorded in the Official Records. Any portion of the Covered Property that is not within a Phase may be deleted or deannexed from the coverage of this Declaration at any time. Any other portion of the Covered Property may be deleted or deannex.ed from coverage of this Declaration as long as the portion of the Covered Property that is being deleted or deannexed is not a part of a Phase in which (1) a Close of Escrow has occurred, (2) Maintenance Association Property has been conveyed to the Maintenance Association, or (3) Assessments have commenced. 06-02-93 10532-00042 l:\DOC\302\93020042.6TH 41 ( ( ~. ARTICLE XIV MORTGAGEE PROTECTION Section 14.01 -Priority of Mortgage Lien. No breach of the covenants, conditions or restrictions. nor the enforcement of any lien ~provisions contained in this Declaration, shall affect, impair, defeat or render invalid the lien or charge of any mortgage made in good faith and for value encumbering any ponion of the Covered Property, but all of said covenants, conditions and restrictions shall be binding upon and effective against any owner whose title is derived through foreclosure or trustee's sale, or otherwise, with respect to such portion of the Covered Propeny. Section 14.02 -Curing Defaults. A Mortgagee, or the immediate transferee of such Mortgagee, who acquires title by judicial foreclosure, deed in lieu of foreclosure or trustee's sale shall not be obligated to cure any breach of the provisions of this Declaration which is noncurable or of a type which is not practical o,r feasible to cure. The determination of the Board made in good faith as to whether a breach is noncurable or not feasible to cure shall be final and binding on all Mortgagees. Section 14.03 -Resale. It is intended that any Mortgage to facilitate the resale of any Residence after judicial foreclosure, deed in lieu of foreclosure or trustee's sale is a loan made in good faith and for value and the Mortgagee of such Mortgage shall be entitled to all of the rights and protections afforded to other Mortgagees. Section 14.04 -Mortgagees Furnishing Information. Mortgagees are hereby authorized to furnish information to the Board concerning the status of any Mortgage. Section 14.05 -Conflicts. In the event of any conflict between any of the provisions of this Article and any of the other provisions of the Maintenance Association Management Documents, the provisions of this Article shall control. Section 14.06 -Federal Agency Agreement. The Board may enter into agreements with any of the· Federal Agencies as necessary to satisfy guidelines and regulations of any such Federal Agency which would permit such Federal Agency to purchase, insure or guarantee, as applicable, First Mongages encumbering Residences. Section 15.01 -Enforcement. ARTICLE XV GENERAL PROVISIONS . (a) Against Covered Property. The Maintenance Association, the Master Association to the extent permitted by the Master Declaration, or any Owner shall have the right of action against any Owner, and any Owner shall have a right of action against the Maintenance Association to enforce by proceedings at law or L"l equity ~ all restrictions, conditions, covenants and reservations, now or hereafter imposed by the provisions of the Maintenance Association Management Documents or any amendment thereto, including the right to prevent the violation of such restrictions, conditions, covenants, or reservations and the right to recover damages or other dues for such violation except that Owners shall not have any right of enforcement with respect to Assessment liens. With respect to architectural control and Maintenance Association Rules, the Maintenance Association shall have the exclusive right to the enforcement thereof unless the Maintenance Association refuses or is unable to effectuate such enforcement, in which case any Owner shall have the right to undertake such enforcement. Notwithstanding the foregoing or any other provision of the Maintenance Association Management 06-02-93 10532-00042 L: \DOC\302\93020042. 6 Til 42 ( ( Documents, judicial proceedings must be instituted before any items of construction can be altered or demolished in connection with any summary abatement or similar means of enforcing restrictions against any Residence Improvement or its use. (b) A~ainst Property Included in Lot Line Adjustment. Notwithstanding the foregoing, the Maintenance Association or any Owner shall also have the right of action against any Owner, and any ~wne~ shall have a. right of ac~i0!1 against t?~ Maintenance Association t~ enforce by proceedings at law or 10 equttx ~ aforesaId, al~ restnctlons, C~n~ltlOnS, covenants and reservatlons, now or hereafter imposed by the prOVISIons of the Ma10tenance ASSOCiation Management Documents or any amendment thereto against any portion of a Lot that as the result of a lot line adjustment had not been properly encumbered by this Declaration by the recordation of the Declaration or a Supplementary Declaration. Section 15.02 -No Waiver. Failure by the Maintenance Association or by any Owner to enforce any covenant, condition, restriction or reservation contained in any of the Maintenance Association Management Documents in any certain instance or on any particular occasion shall not be deemed a waiver Of such right on any such future breach of the same or any other covenant, condition, restriction and reservation. Section 15.03 -Cumulative Remedies. All rights, options and remedies of Declarant, the Maintenance Association, the Owners or Mortgagees under the Maintenance Association Management Documents are cumulative, and no one of them shall be exclusive of any other, and Declarant, the Maintenance Association, the Owners and the Mortgagees shall have the right to pursue anyone or all of such rights, options and remedies or any other remedy or relief which may be provided by law, whether or not stated in the Maintenance Association Management Documents. Section 15.04 -Severability. Invalidation of anyone or a portion of these covenants, conditions, restrictions or reservations by judgment or court order shall in no way affect any other provisions which shall remain in full force and effect. . Section 15.05 -Term. The covenants, conditions and restrictions of this Declaration shall run with and bind the Covered Property and shall inure to the benefit of and be enforceable by the Maintenance Association or any Owner, their respective legal representatives, heirs, successors and assigns, for a term of sixty (60) years from the date this Declaration is recorded, after which time said covenants, conditions and restrictions shall be automatically extended for successive periods of ten (10) years, unless an instrument signed by not less than sixty-seven percent (67%) of the then Owners has been recorded agreeing to terminate said covenants, conditions and restrictions. Section 15.06 -Construction. The provisions of this Declaration shall be liberally construed to effectuate its purpose of creating a plan for the development of a residential community or tract and for the maintenance of the Covered Property. The Article and Section headings have been inserted for convenience only, and shall not be considered or referred to in resolving questions of interpretation or construction. Section 15.07 -Sin~ular Includes Plural. Whenever the context of this Declaration requires the same, the singular shall include the plural and the masculine shall include the feminine and the neuter. Section 15.08 -Nuisance. The result of every act or omission where any provision, condition, restriction, covenant, easement, or reservation contained in this Declaration is violated in whole or in part, is hereby declared to be and constitutes a nuisance, and every remedy allowed by law or equity against a private nuisance, shall be applicable against every such result, and may be exercised by the Maintenance Association or any Owner. Such remedy shall be deemed cumulative and not exclusive. 06-02-93 10532-00042 l:\DOC\302\~.6TN 43 ( ( Section IS.09 -Attorneys' Fees. In the event action is instituted to enforce any of the provisions contained in this Declaration, the party prevailing in such action shall be entitled to recover from the other party thereto reasonable attorneys' fees and costs of such suit as determined by the court or by arbitration as part of the judgment. Section 15.10 -Notices. Any notice to be given to an Owner, the Maintenance Association, or a First Mortgagee, Insurer or Guarantor under the provisions of this Declaration shall be in writing and shall be deemed to have been properly delivered when directed to such addressee at the address furnished by such add~essee for the purpose of notice and placed in the first class U:nited States mail, postage prepaid. Notlce to Owners shall also be deemed to have been properly delIvered when personally delivered or del~vered to a co~mon carrier for personal delivery. to the addressee, or deliver~ to a person giving such notlce by electrOnIC means. If no address was furnlshed by an Owner or the Mamtenance Association for th~ purpose of notice, the notice to an Owner may be delivered to the principal office of the Maintenance Association and the street address of such Owner's Residence, and notice to the Maintenance Association may be delivered to the address of its principal place of business. In the case of co-Owners any such notice may be delivered or sent to anyone of the co-Owners on behalf of all co-Owners and shall be deemed delivery on all suchco-Owners. The affidavit of an officer or authorized agent of the Maintenance Association declaring under penalty of perjury that a notice has been mailed to any Owner or Owners, to any Mortgagee or Mortgagees, to any insurer or guarantor or to all Owners or all Mortgagees, or all insurers or all guarantors to the address or addresses shown on the records of the Maintenance Association, shall be deemed conclusive proof of such mailing, whether or not such notices are actually received. Section IS.11 -Conflicts Between Documents. The terms and provisions set forth in this Declaration are not exclusive as Owners shall also be subject to the terms and provisions of the other Maintenance Association Management Documents. In the event of a conflict between any provisions of any of the Maintenance Association Management Documents with the provisions of another Maintenance Association Management Document, the order of superiority of such documents shall be (1) Articles, (2) Declaration, (3) Supplementary Declaration, (4) Bylaws, (S) Architectural Standards, and (6) Maintenance Association Rules and the provisions of any such document shall be superseded by the provisions of the document shown above to be superior to such document to the extent of such conflict. In the event of any conflict between the governing documents of the Master Association, including without limitation, the Master Association Architectural arid Landscape Standards, with the provisions of the Maintenance Association Management Documents, the provisions of the governing documents of the Master Association shall be deemed to supersede such provisions of the Maintenance Association Management Documents to the extent of such conflict. Section IS.12 -Effect of Declaration. This Declaration is made for the purposes set forth in the Recitals to this Declaration and Declarant makes no warranties or representations, express or implied as to the binding effect or enforceability of all or any portion of this Declaration, or as to the compliance of any of these provisions with public laws, ordinances and regulations applicable thereto. Section IS.13 -Personal Covenant. To the extent the acceptance or conveyance of a Residence creates a personal covenant between the Owner of such Residence and Declarant or other Owners, such personal covenant shall terminate and be of no further force or effect from or after the date when a person or entity ceases to be an Owner except to the extent this Declaration may provide otherwise with respect to the payment of money to the Maintenance Association ... Section IS.14 -Nonliability of Officials. To the fullest extent permitted by law, neither the Board, the Architectural Committee, and other committees of the Maintenance Association or any member of such 06-02-93 10532-()()()42 L: \DOC~\93020042.6 Til 44 ( ( \ Board or committee shall be liable to any Owner or the Maintenance Association for any damage loss or prejudice suffered or claimed on account of any decision, approval or disapproval of plans or S~ifications (whether or not defective), course of action, act, omission, error, negligence or the like made in good faith within which such Board, committees or persons reasonably believed to be the scope of their duties. Section 15.15 -Construction By Declarant. Nothing in this Declaration shall limit the right of Declarant to alter any Residences still owned by Declarant or the Nonexclusive Use Common Area, or to construct such additional Improvements as Declarant deems advisable prior to completion of Improvements upon and sale of the entire Development. Such right shall include but shall not he limited to erecting, constructing and maintaining on the Covered Property such structures and displays as may be reasonably necessary for the conduct of the business of completing the work and disposing of the same by sale, lease or otherwise. Declarant shall repair any damage to and complete any restoration of the Covered Property caused or necessitated by suc~ activiti~s of Decl~t within a !~sonabl~ time after the occurren~e of such damage or need for restoration. ThIS Declarauon shall not hmit the nght of Declarant at any Ume prior to acquisition of title by a purchase from Declarant to establish on the Covered Property additional licenses, reservations and rights-of-way to itself, to utility companies, or to others as may from time to time be reasonably necessary to the proper development and disposal of the Development. Declarant reserves the right to alter its construction plans and designs as it deems appropriate. Declarant shall exercise its rights contained in this provision in such a way as not to unreasonably interfere with the Owners' rights to use and enjoy the Covered Property. Section 15.16 -Special Rights. Declarant shall not be subject to any provisions of the Maintenance Association Management Documents pertaining to architectural control and use restrictions. In addition, as long as Declarant continues to own Residences within the Covered Property and/or continues to have the right to annex the Annexation Property, or any portion thereof, without the approval of the Owners, the written approval of the Declarant shall be required to (1) annex property other than the Annexation Property to the plan of this Declaration, (2) amend any provision of the Maintenance Association Management Documents, (3) levy a Capital Improvement Assessment for the construction of additional Common Facilities or Maintenance Association Common "Area Improvements not contemplated for the Covered Property by the Declarant or a Special Assessment for any other act or undertaking of the Maintenance Association, and (4) decrease the standard of maintenance or services being provided for the Common Facilities and Maintenance AssoCiation Common Area Improvements. Section 15.17 -Inapplicability to Government Property. The provisions of this Declaration shall not be applicable to any portion of the Covered Property owned by a Public Agency and held for a public purpose, but shall apply to any Residence owned by a Public Agency. ARTICLE XVI AMENDMENT PROVISIONS Section 16.01 -Vote of Maintenance Association. Subject to the other provisions of this Declaration, including, without limitation, the rights of Mortgagees, this Declaration may be amended as follows: (a) Until lftere has been a Close of Escrow, cancellations, amendments or modifications of this Declaration shall be effective when executed by Declarant, and, if any portion of the Covered Property is owned by any persons or entities other than Declarant, by-such other Owner(s) of the Covered Property. Until there has been a Close of Escrow within any Annexed Property described in a Supplementary Declaration, cancellation, amendment or modification of such Supplementary Declaration shall be effective when executed by Declarant, and, if any portion of the Annexed Property described in such Supplementary Declaration is owned by any persons or entities other than Declarant, by such other Owner(s) of such Annexed Property. Thereafter, any amendments shall require the vote or written assent of a majority of 06-02-93 10532-00042 L: \OOC\302\ 93{)2()042. 6 Til 45 ( ( the voting power of Members other than Declarant as such voting power is determined pursuant to the Section entitled "Voting Rights" of the Article entitled "The Maintenance Association" of this Declaration and shall also require compliance with the provisions of this Declaration contained in the Section entitled "Special Rights" of the Article entitled "General Provisions. II Such amendments shall not be effective until they are recorded in the Official Records. In addition to the foregoing, any amendment to any of the provisions of the Maintenance Associa~ion Management Documents which by their terms are for the express benefit of Mortgagees, insurers or guarantors of Mortgages must also have the prior written approval of sixty-seven percent of the First Mortgagees (based on one vote for each First Mortgage owned) who have delivered a written notification to the Board stating the name and address or other identification of the Residence encumbered by such First Mortgagee. (b) Any amendments or modifications to this Declaration relating to the establishment and enforcement of architectural or landscape standards or the Perimeter Walls or any signs on or near such Perimeter Walls, shall require approval of seventy-five percent (75 %) of the total voting power of the Maintenance Association. . (c) Notwithstanding the foregoing, any provision of the Maintenance Association Management Documents which expressly requires the approval of a specified percentage of the voting power of the Maintenance Association for action to be taken under said provision can be amended only with the affirmative vote or written assent of not less than the same percentage of the voting power of the Maintenance Association. Section 16.02 -Petition to Amend. The Maintenance Association or any Owner may petition the superior court of the County for an order reducing the percentage of affirmative votes necessary to amend this Declaration pursuant to Section 1356 of the California Civil Code. Section 16.03 -Amendments by Declarant. Notwithstanding any other provisions of this Article, for so long as Declarant owns any portion of the Covered Property or the Annexation Property, Declarant shall have the right to unilaterally amend this Declaration without the approval of the Members or any Mortgagees in order to make any modifications or additions that are required by any of the Public Agencies as a condition to approving the documents or the Development, or any construction thereon. ARTICLE XVII COMMUNITY INFORMATION Section 17.01 -Acceptance and Agreement. The information being provided by the Declarant in this Article is intended to provide information about the site and the improvements that will be of interest to the Owners and the Maintenance Association as well as information that should be considered by the Owners and the Maintenance Association in the course of the maintenance and construction of additional Improvements. Section 17.02 -Contiguous Area Map. Exhibit E attached hereto contains information pertaining to public and private improvements in close proximity to the Covered Property which are in existence or are contemplated as of the recordation of this Declaration. Although the Declarant believes this information to be factual as of the date of the recordation of this Declaration,. Declarant assumes no responsibility for the accuracy of the information contained therein. The Contiguous Area Map is being provided for informational purposes only and is subject to change without notice. Owners are advised to contact the appropriate Public Agency for current and more precise information. SeCtion 17.03 -Declarant's Improvements. 06-02-93 10532-00042 L: \DOC\302\~.6TH 46 ( ( (a) Fences. Fences constructed by the Declarant may not have been constructed on the boundary line of a Lot in order to maintain the structural integrity of the fence and/or slope, or to restrict access to any Landscape Maintenance Area being maintained by the Maintenance Association. Any fence or gate return not installed by Declarant that forms the closure from the side yard fences to the dwelling struc~ure must be in~talled by th~ Owner within the ti~e set fonh i~ the Arch~tectural Standards or by the Architectural CommIttee. Any SIde and rear yard fencmg that consIsts all or m part of wrought iron and/~r te~pered glass is intended to provide a sense of o~nness for the lot. Any proposed additions or modIfications to any of the fences and walls must be submItted to the Architectural Committee. Changes to party walls (walls that are constructed to separate two Residences and are shared by the Owners who have the use thereof) require approval by each Owner who shares the use thereof. Changes or modifications to some of the walls in the project may not be permitted either by the Architectural Committee, the Master Association or by the Public Agency that has jurisdiction over the project. Owner should contact the County Building and Safety Department to determine fencing requirements for pools and spas as existing fencing may not meet Safety Code requirements for the installation of pools and spas. (b) Maintenance of Wrought Iron Fences. Any wrought iron fences installed by Declarant have been fabricated and installed to high industry standards for production housing. For example, vertical joints have been shopwelded around the joint rather than "spot welded" and the fence is roll-primed and painted in the field with high-quality paint. In spite of this fabrication and painting technique, particularly in the presence of moisture either from the coastal environment or irrigation water overspray, this fabrication and painting technique only retards the inevitable rusting process. Rust will start to form on the surface of the paint and slowly penetrate to the metal. This is largely an aesthetic consideration particularly if the wrought iron is painted with a light color instead of black or dark brown. This rusting process can be retarded in part by an active maintenance program to wipe off the moisture and rust. This rust typically does not cause early structural damage to the fence, but does require a certain degree of maintenance. (c) Landscape Improvements. Landscaping Improvements that have been made by the Declarant and are irrigated by an irrigation system that is metered and billed to the Maintenance Association are maintained by the Maintenance Association. Owners shall not install or construct any Improvements within any such landscape area, or modify any Improvements or landscaping upon any such areas being maintained by the Maintenance Association, even if such maintenance areas are located within their Lots. (d) Drainage. Lots are typically graded in accordance with codes of the local Public Agency and sound engineering practices to accomplish certain objectives such as to (a) direct surface water from the rear to the front of the Lot or toward drainage inlets that exit onto the driveway, sidewalk, or street; (b) prevent surface water from ponding on the Lot or against structures; (c) prevent surface water from draining to an adjacent Lot unless an easement for drainage purposes has been granted; and (d) permanently accept existing or intended surface and subsurface drainage from adjacent property if so designed and approved by the appropriate Public Agency. Easements for drainage are described in Sections 8.04 and 8.05 or Article VIII of the Declaration. Section 17.04 -Owner Improvements. (a) Indemnity. Each Owner and the Maintenance Association, by the acceptance of a deed or other conveyance of a Residence or Maintenance Association Property, acknowledge and agree that the Declarant shall not be liable or responsible for any damage to Improvements that have been constructed or modified by an Owner or the Maintenance Association or that is the result of Improvements that have been constructed or modified by the Maintenance Association or an Owner. Improvements should not be installed, constructed or modified without the assistance of qualified consultants. For example, professional soils and structural engineers should be consulted to determine the existing soil conditions and 06-02-93 10532-00042 L : \J)OC\302\ 9302()()42 • 6TH 47 ---_._. ----.-._._. ~ -.-~ __ M-~~-"'-'''''' -- -_ .. --.-.. --_ .. _-_. __ .... _---_ .. _ .. ----:-=-::-;----:-"-=~~--'--'---'-- ---:-:-:=-.--==-=- ---------':""AN JOJ\QIJlIt/ HILLa ROAD --------------------LEGEND _ II1II ......... WALUIFiNCEi TO Ill: MAlNTAlNm BY aul AUOClATlON ............. WALU.fOICu TO Iii MAINTAINED IW MASTU AUOCIA"I'lON Perimeter Walls & Fences TRACT 14712 PHASE 2 NEWPORT RID E AvaM_ IAN JOAQUIN ROAD i , t-c--~ I \ ________ HIUs --------------------- LEGEND ............ PERMANENT WAl-UM'IlNCES THAT CANNOT 1IIIIIMOVID Permanent Wal & Fences TRACT 14712 PHAse-2 NEWPORT RIDG MYta,t_ SUBORDlNATroN The undersigned, beneficiary under that certain deed of trust encumbering all or a portion of the Annexed Property which deed of trust was recorded on December 22, 1993 as Instrument No. 93-OB9033R of Official Records of the County (as such term is definea in the DeclaIation). hereby consents to lIle Within Supplementary Declaration of Covenants, Conditions and Restrictions and hereby subordinates the lien of said deed of t:-ust to the provisions of the Supplementary DeclaIation and the Declaration defined therein. THE IRVINE COMPANY, a Michigan corporation ~~~~/ Its: Michael C. Ellis. Senior Vice President BY:~ Its: ~1"""'C-'R"-,.,-,,,o.L>:-'-"""'''''''''''''''''' STATE OF CALIFORNIA ss. ~'W ... n.1r4t..11 I". .H .... t. ~ ... o •.. I CF.RTIFY ONDER PEIIALTY or PERJURY TIiAr THE "OrARY SE41. ON THE DOCUMENT T~ "Ul ell TIll S STATENENT 15 ATTACIIED nEADS AS FOI.1..0.3, NAME OF THE NOTARY W 5 BETTINI DAn: CONIoII9SIOH EXPIRES FEB.] 5, ]997 counTY ItHERE IlOND IS FILEU _-->Q""R .... AN ... G""E'--______ _ COIIJClSSION NO. _""'9::;:8.:::.S0~2:.:.3:..._ __________ _ .,ANUFACTURER/VENDOR No. __ NN_A_l _________ _ FLACK 0,. EXECUTION SANTA ANA, CA. DATil 12/29/93 SIGNATURE _ e· "01-. ~ 01-27-91 10532-00il45 Ll \IlOC\!02\93060087 .3rd C. L. Kirk -FIRST AMERICAN TITLE INSURANCE CO. 8 ,/ (Seal) -L -~~-~ ~------=--....... --_.-.. _ .. _--'-_.- ----____ ._. __ ••••• --_. _._. __ ':_ -__ -.;-''''': 0- --------- . . ~oimING REQUESTED BY: FIRST 'AMERICAN TITLE INSURANCE CO. WHEN RECORDED MAlL TO: PETI'IS, TESTER, KRUSE & KRINSKY P. O. Box 19766 Irvine, California 92715 Attention: Dorothy A. Urbanec DOC I 93-0909903 29-DEC-1993 03:59 PM beorded in Official RewdS at OraJl3e Cmmty, California p_ lee A. Pranch, Collnty Recorder use 1 of 8 f&as: 1 31.00 Tax: $ 0.00 (Space Above Line For Recorder's Use Only) SUPPLEMENTARY DECLARATION OF COVENANTS, CONDmONS AND RESTRICTIONS FOR THE POINTE AT NEWPORT RIDGE PHASE NO. 2 THIS SUPPLEMENTARy'L>ECLARATION OF COVENANTS. CONDmONS AND RESTRICTIONS (hereinafter, the nSupplementary Declaration") is made this ~ day of 1i~614~r.tarinrl'3 ,by Standard Pacific Corp., a Delaware corpomtion. lts successors and as.'J1gns, ( Dec t ). RECITALS A. Declarant is the fee owner of certain property in the County of Orange, State of california (the" Annexed Property") described as: . Lots 1 to 4, inclusive, Lots 20 to 26, inclusive, and Lot C, of Tmct Map No. 14712, as per map filed in Book 699, Pages 45 to 48, inclusive, of Miscellaneous Maps, Records of said County. An easement over that portion of Lot B of said Tract No. 14712 (the "Burdened Property") depicted on Exhibit A attached hereto for ingress and egress. B. Declarant will convey the Annexed Property subject to certain protective c:ovenants, conditions, restrictions, reservations, liens and charges as set forth in that certain DeClaration of .,,/ Covenants, Conditions and Restrictions (the "Declaration") which was recorded on July 1. 1993 as Instrument No. 93-0440672 and re-recorded on August 24, 1993 as Instrument No. 93-0570031 of Official Records of said County, and any amendments thereto specifically pursuant to the provisions of the Section entitled "Annexation Without Approval" of the Article entitled It Annexations" of the Declamtion. NOW THEREFORE, it is declared as follows: 1. Except as defined herein, and unless the context clearly indicates otherwise. the terms used in mis Supplementary Declaration are defined to mean me same as such terms are defined in the Declaration. 2. All of the Annexed Property is hereby made subject to all of the terms, covenants, conditions and provisions as set forth in the Declaration and specifically pursuant to the provisions of the Section entitled U Annexation Without Approval" of the Article entitled "Annexations" of the Declaration to all intents and purposes as though said land were a part of the Initial Covered Property. 3. The recordation of this Supplementary Declaration shall constitute and effectuate the 011-21-93 10532-00045 LI\DOC\102\9306OO81.3rd ')- ·------.=====:=~ ----\ ) . , .. innexation of the Annexed Pro~, making said real property sUb)ect to the Dec1aration and subject to f the functions, powers and jurisdicllon of the Maintenance Corporation as provideci in the Declaration, and / thereafter said real property shall be part of the Covered Property and all of the Owners within the Annexed Property shall automatically be Members of the Mamtenance Corporation and Owners under the Declaration. 4. All rights and easements reserved by Declarant in the Declaration are hereby reserved by Declarant over the Annexed PropeI!)', together with the right to grant and transfer the same as provided iR the Declaration, including, without limitation, the nonexcbisi"e easement for ingress and egress on and upon the Common Area as such easement is more particularly described in the Section entitled UBasements for Owners" of the Arti~e entitled "Easements and Rights-of the Dec1aration. S. All obligations of Declarant under the Declaration are hereby extended to the Annexed Property as provided in the Declaration. 6. Lot C of said Tract Map No. 14712 is hereby designated as Maintenance Association Property pursuant to the Section entitled flTransfer of Maintenance Association Property" of the Article entitled -Repair and Maintenance" of the Declaration. 7. The following Exhibits are attached hereto in accordance with the provisions of the Declaration: (a) Exhibit B to describe Landscape Maintenance Area required to be maintained by the Maintenance Association pursuant to the provisions of Section 7.01 of Article vn of the Declaration; (b) Exhibit C to describe Perimeter Walls that are to be maintained by the Maintenance Association pursuant to Section 7.01 of Article VII; and (c) Exhibit D to described those Perimeter Walls. being maintained by the Maintenance Association that are not to be removed, reconstructed or modified pursuant to Section 9.19 of Article XIX of the Declaration; 8. Participating Builder agrees that it will grant and transfer to the Maintenance Association and Owners an easement for ingress and egress on and upon the Burdened Property for the purpose of pennitting the Maintenance Association to enforce the provisions of the Declaration against the portion of the Annexed Property that is contiguous to the Burdened Property. written. IN WITNESS WHEREOF, this instrument is executed as of the day and year first above 08-27-93 '0532·~5 L:\IlOC\302\93060087 .3rd STANDARD PACIFIC CORP., a Delaware corporation ~Ji~~ 2 · . / / STATE OF CALIFORNIA ss. COUNTY OF ORANGE On August 27, 1993 before me, Judltb D. Cr1mmiDa • a notary public in and for said State, personalty appeared Stephen J. Scarborough and Jad t. Kartozi~n personally known to me (or proved to me on the basis of satisFaCtory evidel1cc) to De thC persorl(s) whose name(s) Is/are subscribed to the within instrument and acknowledged to me that helshelthey cxC!CUted the same in hislher/their authorized capacity(ies), and that by his/her/their signalUre(s) on the mstrument the person(s), or the entity upon behalf of which the person(s) acted. executed the instrument. , WITNESS my hand and offic!al seal. s_~~ 011-27-93 10532-00D45 LI\lIOCU02\93060087.3rd (Seal) 3 · . ~ --~ ---- -=::-. --!_--_._-------_ ..... . .. ' j/ ". Annexation Lots TRACT 14712 PHASE 2 NEWPORT RIDGE .., ..... - ;, ( ( such Improvements or modifications should be designed to compensate for any expansive soil within the Lot. (b) Code Requirements. All Improvements upon the Covered Property must be completed in conformance with the Uniform Building Code and other applicable regulations of any of the Public Agenci.es. II!Iprovemen~s cons~cted <?r ~nstalled ~pon a slo~ area, at the top or toe of a sl.ope, or upon expanSIve SOlI may reqUlre addItiOnal deSIgn techmques to mltIgate the effect of such expanSIve soil condition or upon such slope. (c) Public Right-of-Way. Making Improvements such as planters, walls and curb cores within a street or public right-of-way may require permission from the utility companies, the responsible Public Agency in addition to the Architectural Committee. Construction of any such Improvements should not be commenced until all required approvals and permits have been obtained. . (d) Slope Improvements. Improvements such as pools, spas, concrete slabs, decks, planters and walls that have not been designed by qualified soils and structural engineers to compensate for expansive soil conditions and slope creep should not be located adjacent to the top or toe of slopes. Minor lifting and cracking of Improvements constructed at the top or toe or slopes may occur even when such Improvements are constructed with qualified professional assistance. (e) Slope Maintenance. Owners who are required to maintain slope areas within their Lots must maintain the landscaping upon such slope areas in a condition that will prevent slope erosion in conformance with any requirements of the Maintenance Association and the responsible Public Agency. The Pointe at Newport Ridge is a hillside development project. Slopes are an integral part of hillside development. Most slopes within the Development will be irrigated and planted by Declarant and maintained by the Maintenance Association. This landscaping is a requirement to prevent slope erosion, and is not intended for purely ornamental purposes. In many cases property lines extend beyond the location of walls or fencing to the top or toe of slope. In these cases, the Maintenance Association has been granted an easement for slope and wall maintenance purposes. Owner acknowledges and understands that the slopes have been planted by Declarant and are irrigated by an irrigation system that is metered and billed to the Maintenance Association and maintained by the Maintenance Association. Owner further acknowledges and understands that he shall not install or construct any improvements within any slope area, or modify any improvements or landscaping upon any slope areas being maintained by the Maintenance Association even if such slope areas are within his Lot. Some slopes, however, are to be maintained by the Owner. Owner responsibility for slope maintenance starts at close of escrow, or thereafter by written notice from Declarant. (f) Grading. The grading and drainage design of a Lot should not be altered by any Owner or by any contractors or agents of an Owner in the course of installing Improvements such as patios, planters, walls, swimming pools and/or spas in a manner that will redirect surface water flow toward the dwelling or onto adjacent property or that will trap water so that it ponds and floods. Drainage devices such as concrete ditches, area drain lines and gutters should be carefully designed and installed with professional assistance. Drainage devices installed by the Declarant that are designed to serve more than one Lot should not be altered or modified in a manner that will redirect or obstruct the drainage through these drainage devices. Any grading and drainage modifications are. subject to applicable codes of the applicable Public Agency, subject to approval by the Architectural Committee and subject to the terms of any other drainage easements that may be of record. Section 17.05 -Matters of Record. 06-02-93 10532-()()()42 L: \OOC\302\93020042. 6 TN 48 ( ( \ i (a) Property Lines. The boundaries of each Lot within the Covered Property are delineated on tract maps, lot line adjustments or parcel maps that are public records and are available at the office of the County Recorder. (b) Preliminary Title Report. The preliminary title report issued by the title company that insures the title to a Residence which is available for review, inspection and approval by any prospective purchaser as a condition to the close of escrow will reveal matters of record that, unless removed as a condition to the close of the escrow, will continue to be effective against the Residence after the close of escrow. The preliminary title report describes easements and rights of record which include, without limitation, the following: <i) Utili.ty Ease~ents. Th~ Residences ~e. subject to easel!l~~ts in favor ?f utility companles for the Installation and m3.lntenance of utllIty lInes and facllIties that provlde service to the Covered Property. The location of the various lines and facilities are totally within the control of the respective utility companies although facilities such as electrical vaults, telephone, street lights and cable television boxes are generally located in the area behind the sidewalk. (ii) Mailboxes. An easement has been reserved for the installation, maintenance, repair and replacement of mailboxes. Mailboxes are usually located within the utility easement area adjacent to the street but the locations and configurations are controlled by the United States Postal Service and subject to change. (iii) Special Assessment or Mello-Roos Community Facilities Districts. The Covered Property lies within the boundaries of Special Assessment Districts and Mello-Roos Community Facilities Districts which may require the levy of a special tax for the repayment of bonds issued for the purpose of paying the cost of the services or the capital improvements that have been or are being provided. The amount of the special tax and any other information pertaining to any such district can be obtained from the County Assessor's office. (A) Community Facilities District No. 90-1. The Newport Mesa Unified School District established Community Facilities District No. 90-1 ("CFD"), which includes the Covered Property. The CFD was formed under the provisions of the Mello-Roos Community Facilities Act of 1982. The purpose of the CFD is to finance the acquisition of land and the construction or refurbishment of school facilities benefitting Newport Coast and Newport Ridge residents (the "School Costs"). The CFD is authorized to issue up to $26,000,000.00 in bonds. (A vote of two-thirds of the registered voters within the proposed CFD would be required to authorize sale of bonds in excess of the $26,000,000.00 limit). The $26,000,000.00 bond authorization is the maximum amount of funds which the School District estimates is necessary to cover costs under the current School Facilities Plan. Special taxes to cover School Costs for the CFD will be established each year by the School District at a public hearing. The special taxes are charged to each property owner within -- the proposed CFD as a portion of each owner's annual real estate tax bill. The obligation to pay the special tax became effective against each Residence on the issuance of a building permit for such Residence. In the event a property owner fails to pay these taxes when due, the District may exercise its statutory remedy to foreclose on the property. The special tax is levied annually whether or not bonds have been sold. (B) Assessment District No. 92-1. The County of Orange has established Assessment District No. 92-1 which includes the Covered Property. The Assessment 06-02-93 10532-00042 L:\DOC\302\93020042.6TII 49 RECORDING~ REQUESTED BY \ \ EXHIBIT F \ ( WHEN RECORDED MAIL TO: ( Pettis, Tester, Kruse & Krinsky 18881 Von Karman Avenue, Suite 1600 Irvine, California 92715 Attn: Dorothy A. Urbanec (Space Above Line For Recorder's Use Only) AGREEMENT AND GRANT OF EASEMENTS NEWPORT RIDGE ,[HIS AGREEMENT AND GRANT OF EASEMENTS (the "Agreement") is made this i J r" day of . )y.!:' , 1993 between THE IRVINE COMPANY, a Michigan corporation (the "Grantor"), and STANDARD PACIFIC CORP., a Delaware corporation (the "Grantee"). REC.IIALS A. Grantor is the current owner of the following described real property in the County of prange (the "County"), State of California: Lot C of Tract Map No. 14711 as'-per map filed for record in Book 696, Pages 11 to 14, inclusive, of Miscellaneous Maps, records of said County (the "Burdened Property") which is encumbered by the Declaration of Covenants, Conditions and Restrictions for Newport Ridge Community AssocIation (the "Master Declaration ") recorded by Grantor on May 5, 1993, as Instrument No. 93-0301553, of the Official Records of said County and is to be conveyed to the California nonprofit mutual benefit corporation (hereinafter the "Master Association") named in the Master Declaration. B. Grantee is the current owner of the following described real property in said County and State: Lots F and G of said Tract Map No. 14711 (the "Benefitted Property") which is encumbered by the Declaration of Covenants, Conditions and Restrictions (the "Declaration") recorded by Grantee on , as Instrument No. , of the Official Records of said County and is to be conveyed to the California -no-n-p-ro-:fior.lt-m-u-:t-ual-:-;'b-e-ne-:fi~t-corporation (hereinafter the "Maintenance Association") named in the Declaration. C. Grantor and Grantee desire and intend to establish an easement for storm drain purposes and certain storm drain maintenance and use covenants for a portion of the Burdened Property, all as more fully described herein. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein 'ntained, and other good and valuable consideration, the receipt and sufficiency of which are hereby ,knowledged, Grantor and Grantee agree as follows: ARTICLE I GRANT OF EASEMENT such maintenance, repair, renovation and reconstruction pursuant to the provisions of this Agreement and its Declaration and the Grantee shall have no further responsibility therefor. e (b) The Easement granted hereby is subject to all easements, covenants, conditions, encumbrances, liens, dedications, offers of dedication, restrictions, reservations, rights and rights-Of-way of record or apparent or of which Grantee has actual notice, which include those contained in the Declaration and the Master Declaration.· ( Section 1.02 -Maintenance. Repair and Reconstruction Requirements. (a) Storm Facilities. All maintenance and repairs of the Storm Facilities shall be performed by the owner of the Benefitted Property (hereinafter the "Benefitted Property Owner") at its sole cost and expense. All maintenance and repairs shall be performed in such a manner and at such intervals as shall be required to at all times maintain the Storm Facilities in good working condition. (b) Other Maintenance and Repair. The Benefitted Property Owner, at its sole cost and I expense, shall also repair and replace all improvements or other things, including without limitation, landscaping, slopes, sidewalks and fences on, under, over or across the Easement Area or any adjacent or nearby property, whether existing as of the date hereof or installed or planted subsequent to the date hereof, which are in any manner damaged or removed as a result of the Benefitted Property Owner's use of the Easement Area. . (c) Enforcement. All such maintenance, repairs or replacements shall be accomplished promptly and in any event within thirty (30) days of written notice from the Burdened Property Owner requesting that such maintenance, repairs and replacements be completed. If such maintenance, repairs or replacements are not completed within said thirty (30) days, the Burdened Property Owner may (but shall not be obligated to) accomplish such maintenance, repairs and replacements, and all costs and expenses incurred in performing such maintenance, repair and replacements, together with interest thereon at the rate of ten percent (10.0%) per annum (but not to exceed the legal maximum rate) from the date incurred ;ntil fully paid, shall be reimbursed by the Benefitted Property Owner within ten (10) business days after receipt of invoice therefor. ARTICLE II TERMS AND CONDITIONS Section 2.01 -Control of Access. The Burdened Property Owner shall have the sole and exclusive control and management of the Easement Area subject to the covenants, conditions and restrictions of this Agreement provided that such control and management does not unreasonably restrict the use thereof by the Benefitted Property Owner for authorized easement purposes. Section 2.02 -Obstruction. The Easement Area shall not be used by Burdened Property Owner in a manner that will unreasonably interfere with the use of the Easement for the easement purposes. Section 2.03 -Liability Insurance. Unless waived in writing by the Burdened Property Owner, the Burdened Property Owner shall be named as an additional insure:<! on the public liability insurance policy maintained by the Benefitted Property Owner insuring against any liability arising from or relating to the use of the Easement Area or the Storm Facilities therein by the Benefitted Property Owner. If required by Burdened Property Owner, Benefitted Property Owner shall deliver to Burdened Property Owner policies or certificates of insurance evidencing the above coverage immediately after execution of this Agreement and thereafter at least thirty (30) days prior to expiration of each such policy. The liability insurance policy shall be in the amount of not less than the amount required by the provisions of the Declaration and shall contain a clause that not less than thirty (30) days prior written notice will be given to Burdened Property Owner at the address set forth herein prior to cancellation or reduction in amount or scope of werage and shall provide that such policy and coverage evidenced thereby are primary and the Burdened . roperty Owner's insurance is excess and noncontributing with such primary coverage. Any public liability insurance obtained by Burdened Property Owner shall not cover any liability of the Benefitted Property Owner in connection with the use of the Easement Area or the Storm Facilities therein by the Benefitted Property Owner. It shall be the responsibility of the Benefitted Property Owner to obtain public liability insurance insuring against any liability incident to its use of the Easement Area in the same manner as Benefitted Property Owner must obtain public liability insurance covera!!e for liahilitv in ( ( District was formed under the authority of the Municipal Improvement Act of 1913. The purpose of the Assessment District is to pay for construction of major infrastructure improvements such as streets, drainage improvements, sewers, storm drain improvements, improvements to the proposed Canyon Watch Park and Harbor Watch Park, a contribution to the construction of the fire station, measures concerning the mitigation of the landfill site located adjacent to the Newport Ridge Planned Community and utilities benefitting the Newport Ridge Planned Community. Any bonds issued under the authority of the Bond Act of 1915 to finance such infrastructure improvements will be allocated among all properties within the Assessment District and will constitute a lien against the Residences. The lien must be paid off in installments which will appear as annual assessments on the annual real estate tax bill for each Residence. (As an alternative, each owner of a Residence has the option of paying the entire lien amount in one lump sum, plus a bond redemption charge.) In the event assessments are not paid when due, the statutes permit the County of Orange to foreclose on the Residence, and the County of Orange has covenanted to do so. (c) Street Li~hting Assessment District. The Covered Property lies within Orange County Street Lighting Assessment District, ZOne 1. (c) Maintenance Association. The Maintenance Association has the right and obligation to manage and control all of the property covered by this Declaration in accordance with the Maintenance Association Management Documents which consist of Articles, Bylaws, this Declaration, Architectural Standards and Maintenance Association Rules and the Master Association Architectural and Landscape Standards. All of these documents comprise the governing documents of the Maintenance Association and include· provisions pertaining to the following: (i) Improvements. All Improvements installed or constructed by Owners must comply with the Architectural Standards and the Master Association Architectural and Landscape Standards. (ii) Declarant Control. Owners other than Declarant have the right to elect at least twenty percent (20%) of the Board. For as long as Declarant has sufficient voting power, Declarant intends, but has no obligation, to exercise its voting rights under the Declaration to elect at least a majority of the Board and the Declarant has the absolute right, pursuant to the Declaration, to initially appoint or replace all of the members of the Architectural Committee and to appoint a majority· of the members of the Architectural Committee for a period of five (5) years after the date of the issuance of the first Final Subdivision Public Report by the DRE or until ninety percent (90%) of all of the Residences within the overall Development have been conveyed. Declarant intends to transition the Board members appointed by the Declarant out of the management and control of the Maintenance Association and the Architectural Committee when the Development is substantially complete by appointing other Owners to serve the remainder' of the terms of any resigning architectural committee members and directors. (iii) Maintenance Association Common Areas. There may be areas within this project and/or adjacent to some of the Residences which are designated as open space areas and will be maintained as such by the Maintenance Association. The Maintenance Association can provide additional information as to the location of all such areas, the plant materials and any facilities or Improvements thereon, and any permitted use thereof. . The common facilities such as landscaping, walls and recreational facilities that have been installed or constructed by the Declarant will be accepted for maintenance by the Maintenance Association when such Improvements have been completed in accordance with the plans and specifications and certified as complete by the architect who designed such improvements. (}6-02-93 10532 -00042 L: \DOC\3Q2\930.20042. 6TH 50 ( ( \ (d) Master Association. All of the property covered by this Declaration as well as other property within Newport Ridge Planned Community is subject to the jurisdiction of the Master Association as more particularly set forth in the Master Declaration. The Master Declaration includes provisions pertaining to the following: (i) Improvements. All Improvements installed or constructed by Owners must comply with the .1:faster Association Architectural and Landscape Standards as may be adopted pursuant to the provlSlons of the Master Declaration. (ii) Declarant Control. In order to provide for the efficient and effective management of the Master Association, a Delegate District system of voting was formed. The appointment of Delegates and the procedure for calling annual meetings of the Master Association and meetings of the Delegate District is contained in the Master Declaration. (iii) Master Association Propertj. There may be areas within this project and/or adjacent to some of the Residences which are designated as open space areas and will be maintained as such by the Master Association. The Master Association can provide additional information as to the location of all such areas, the plant materials and any facilities or Improvements thereon, and any permitted use thereof. _ Section 17.06 -Coyote Canyon Sanitary Landfill. The Coyote Canyon Sanitary Landfill is located northeast of, and adjacent to, the Newport Ridge Planned Community. The Landfill, which is operated by the County, stopped accepting waste in 1990 and,the County is responsible for developing and carrying out a closure/post-closure plan for the Landfill which includes placement of a soil cover over the Landfill, grading, installation of storm drains and the implementation of gas and liquid management/monitoring programs. In addition, a gas recovery system has been installed. The County estimates that closure operations will be completed by 1994. The ultimate use-of the Landfill site is not known at this time, but it is anticipated that the site will be used for open space or recreational purposes which may include a public park or public golf course. The Point at Newport Ridge may experience dust, odors and noise from time to time as a result of the ongoing closure and maintenance activities on the Landfill. A gas recovery system, which has been operational since 1989, collects gas from the Landfill and produces electricity from that gas. It includes a system of underground wells and piping to collect the gas, a gas processing facility and an electrical generation facility. The electrical generation facility is located on the other -side of Newport Coast Drive from Newport Ridge, approximately one-half mile from the intersection of San Joaquin Hills Road and Newport Coast Drive, and is visible from many locations in the Newport Ridge Planned Community. The facility operates 24 hours a day, 365 days a year, except when it is shut down for necessary maintenance. When it is shut down for maintenance, a backup flare system at the same facility _ is used to burn excess gas. The facility routinely releases steam, and the facility, the steam (and, possibly, the flares) can be seen from portions of the Newport Ridge Planned Community. The facility also produces noise which can be heard periodically in the Newport Ridge Planned Community. Under certain circumstances, the underground decomposing waste in the Landfill can combust and cause subsurface smoldering within the Landfill. -When it does occur, subsurface smoldering is generally confined within the Landfill. The possibility of such smoldering will be further reduced with the placement of the final soil cap on the Landfill. The Post-Closure Plan referred to above includes a section which discusses detection, monitoring, prevention and management of the subsurface combustion at the Landfill. 06-02-93 10532-00042 L: \IXIC\302\ 93020042.6 Til 51 ( ( \ \ I In addition to the gas recovery system operated on the Landfill, an underground, physical barrier has been installed along the common boundary of the Landfill and the Newport Ridge Planned Community to further supplement the closure plans. A series of multi-depth gas probes will also be installed near the periphery of the Landfill to monitor the effectiveness of the gas recovery system. Current regulations require the County.or its designee to conduct periodic air and water quality testing as well as to monitor the effectiveness of the control systems. Section 17.07 -Helipad Facilities. Future development of undeveloped land adjacent to, or in near proximity to, the Newport Ridge Planned Community (the "Newport Coast Project") may include the establishment of helipad facilities. Section 17.08 -Earthquake Faults. The Newport Inglewood Earthquake Fault is located approximately four (4) miles south of the Newport Ridge Planned Community on the floor of the Pacific Ocean. An inactive fault is located within the Pelican Hill Custom Lot Project within the Newport Coast Project. A shear zone has been mapped traversing through the Development during preliminary and mass grading . phases of the development. The origin of this shear zone was described as possibly being a splay of or associated with the main Pelican Hill fault which is located southwest of the site. Previous investigations have determined that minor displacements have occurred on the Pelican Hill Fault Zone (2 million years ago). However, no evidence of movement in the past 11,000 years has been found along this fault zone; therefore, the Pelican Hill Fault is not considered to be active. The shear zone mapped within the Development depicted on Exhibit G has been investigated by Declarant prior to and during grading of the Development. This shear and its associated minor traces were found to exist within older bedrock and has been determined not to be active. The shear zone is relatively narrow (10 to 20 feet wide) with a 6-inch to 12-inch wide clay zone constituting the main geologic and engineering concerns. Mitigation of this narrow clay zone is being provided by over-excavation of the lots of concern, 1 to 3 feet, replacing this cut with excavated fill, and designing foundations for highly expansive soils. During the grading an additional minor branch of the shear zone was encountered southwest of the principal zone. This zone was also mitigated by over-excavation of the affected lots and by providing foundation design recommendations for highly expansive soils. From a geotechnical point of view, the subject property is considered suitable for the designed development based on our recommendations having been incorporated into the design criteria and the project specifications of the lots within the shear zone. Section 17.09 -Aircraft Overflights. While it is not possible to make a definitive analysis of individual noise levels at each Residence, residents of The Pointe at Newport Ridge can expect airplane, jet and helicopter noise from overflying commercial and private aircraft coming into and out of John Wayne Airport and the Marine Corps Air Stations in Tustin and EI Toro. In addition, residents should be aware that newspapers and other publications advise of the possible future conversion of the Marine Corps Air Station at EI Toro into a commercial civilian facility. Section 17.10 -San Joaquin Reservoir. Portions of the Newport Ridge Planned Community will have a view of, or are in close proximity to, an operational water storage facility known as San Joaquin Reservoir Site. San Joaquin Reservoir Site is owned and managed by the Metropolitan Water District of Southern California ("MWD") in trust for MWD, four local water districts and two cities (collectively, the "Local Agencies"). The Local Agencies use San Joaquin Reservoir Site for regulatory and emergency storage for their domestic water systems. MWD and the Local Agencies contemplate making improvements to the 06-02-93 10532-00042 L: \DOC\302\93020042.6 Til 52 ( ( San Joaquin Reservoir Site, which will include an opaque floating cover over the surface of the reservoir within the San Joaquin Reservoir Site which would completely obstruct any view of the water contained within the reservoir. Section 17.11 -San joaquin Hills Transportation Corridor/Newport Coast Drive. Newport Coast Drive is a major arterial highway which has ~n. c~nstructed by th.e County betwee~ Pacific Coast Highway and MacArthur Boulevard. The San JoaqUIn HIlls Transportation Comdor, WhICh as of the recordation hereof. is planned to be constructed northerly of Newport Ridge and intersect with Newport Coast Drive is a joint plal!ning effort by the .Trans~rtation Corrido~ Agency and the County: I~ constructed under pre~nt deSIgn plans, the Comdor WIll convert a portIon of Newport Coast Dnve mto Corridor right of way. Construction of the Corridor is contingent upon receipt of necessary funding and governmental approvals and there is no assurance that the Corridor will be constructed. However, if the Corridor is constructed: a toll interchange will be constructed where Newport Coast Drive intersects with the Corridor, and, as with all segments of the Corridor, tolls will be charged for use of this portion of the Corridor between the interchange and MacArthur Boulevard. Section 17 t 12 -Local Collector Road System Improvements. Several potential two (2) lane local collector road extensions may be constructed within or in the immediate vicinity of Newport Ridge. Portions of EI Capitan Park will be subject to an existing but unimproved roadway easement in favor of the City of Newport Beach and an offer of dedication to local government for possible collector road extensions. One possible roadway extension would result in the connection of El Capitan Drive to San Joaquin Hills Road. The second possible roadway extension would result in the connection of Terrace Ridge to El Capitan Drive. In addition, an easement for maintenance purposes over Lot M of Tract No. 14509, which is located along the northerly border of the Newport Ridge Planned Community, will be transferred to the Newport Ridge Community Association, subject to an offer of dedication to a local Public Agency for roadway extension purposes to connect to a potential collector road in proximity to Bonita Canyon Road leading to the City of Irvine. Section 17.13 -Irrigation With Reclaimed Water. In its efforts to conserve water, the Irvine Ranch Water District ("IRWD") has for years required the use of reclaimed water (Treated Wastewater) to irrigate parks, school yards, golf courses, green belt areas and common areas. The water used to irrigate Master Association Property and Maintenance Association Property will generally be reclaimed water although some common areas maintained by the Maintenance Association may be irrigated with potable domestic water. The use of reclaimed water will conserve the domestic potable water supply and may result in a savings in the cost of water service. Although there are reclaimed waterlines in the area, no provisions have been made for individual residents within The Pointe at Newport Ridge to utilize reclaimed water in underground yard irrigation systems. Reclaimed water is not potable and therefore not suitable for human consumption. Based upon a number of independent studies, the California Department of Health Services has determined that inadvertent consumption of reclaimed water by domestic pets and other animals will not cause harm and, further, that the use of reclaimed water has not resulted in any significant adverse health consequences. As with any water spray, the repeated spray of reclaimed water may stain or discolor personal property, fencing and structural improvements over time. According to IRWD, IRWD'S reclaimed water is disinfected with chlorine and its clarity to the human eye is indistinguishable from domestic water. The standards imposed upon IRWD for reclaimed water quality are established by various- governmental regulatory agencies, and the standards may change from time to time. The water used in the Residences and outside exterior hose bibs will be domestic potable water. Section 17.14 -Water Softeners. Owners are also subject to the Rules and Regulations of the Irvine Ranch Water District, one of which prohibits the use of selfgeneration water softeners connected to the sewer facilities of the District. 06-02-93 1~-()()042 l: \DOC\302\ 93()2()()4l. 6 TN 53 ( ( ) - Section 17. 15 -Electric Power Lines. Overhead and underground electric transmission and distribution lines are located within and in the immediate vicinity of the Newport Ridge Planned Community. These power lines are owned, operated and maintained by the Southern California Edison Company. Specifically, a 50 foot Edison easement . located approximately 260 feet west of The Pointe at Newport Ridge. Towers and transmission lines _ . .Jve ground in this easement area currently accommodate a 66 KV transmission line. Edison maintains th~ right to access and operate these lines and the right to add additional lines. Numerous scientific and epidemiological studies have been conducted as to whether there are any adverse health effects from magnetic and electric fields generated by electric power lines. The California State Department of Education has established site selection standards for locating new schools near power lines with voltages of 100 KV or greater. However, the State of California has not established any setback or other limitations on construction of residential housing in the vicinity of power lines. The California Department of Health Services, in cooperation with the California Public Utilities Commission, continues to perform research in this area. Section 17.16 -Schools. A proposed school site within the Newport Ridge Planned Community has been reserved for possible acquisition by the Newport Mesa Unified School District ("NMUSD") and future improvement as a school facility. NMUSD may elect to proceed with this school facility at any time prior to the issuance of seventy-five percent (75 %) of all of the building permits for Newport Ridge or may elect not to proceed with the school facility. If school facilities are not constructed on this property, the zoning for this property would permit it to be converted to residential development. Section 17. 17 -Fire Station. A fire station is planned to be located in the vicinity of the intersection of Newport Coast Drive and Ridge Park Road. The Covered Property is located within a very high fire hazard area due to wildland exposure. Section 17. 18 -Si2nal Peak. Transmission towers and microwave stations currently exist on land easterly of Newport Coast Drive known as Signal Peale These facilities will remain on this site and the facility operators retain limited rights to expand their structures and equipment. Service vehicles will access the site via the public roads. Section 17.19 -Public/Private Parks. Newport Ridge Park, located at the intersection of San Joaquin Hills Road and East Newport Ridge Drive, if developed will be available for use of Newport Ridge Planned Community residents. Newport Ridge Park, Crestridge Park, Canyon Watch Park and Harbor Watch Park which are contemplated for the Newport Ridge Planned Community will be subject to an offer. of dedication to public use. El Capitan Park may also be available for use by students from the school which may be developed on the school site. Some amenities within these parks may be lighted. Section 17.20 -Buck Gully. Buck Gully encroaches within a one-quarter mile radius surrounding the Covered Property. The gully receives runoff from a large tributary area and portions may remain wet most of the year. This gully area may qualify as a wetlands under Department of Fish & Game Code Section 2785. Section 17.21 -The Development Plan. Owners acknowledge and understand that Declarant may elect to build a complementary product in subsequent Phases of the Development and may elect to sell some lots as custom lots depending upon market demand for any of these products. . Section 17.22 -Expansive Soil. The soil within this proj ect is' composed of soil derived from bedrock belonging to the Topanga formation which may have "highly expansive" characteristics which could require special consideration and attention when such Improvements as masonry walls and planters, concrete slabs, pools, spas, decking and other concrete masonry Improvements are installed. Bedrock materials consist of thick bedded sand stones with occasional silt stone innerbeds. When this soil becomes wet it is prone to expand and subsequently may cause damage by lifting and cracking any Improvements 06-02-93 10532·00042 L: \DOC\302\ 93020042.6 TN 54 ( ( built on top of this soil unless adequate precautions have been designed and incorporated into their construction. For this reason, it is particularly important to maintain proper drainage away from the house footings and away from any Improvements constructed on the lot. Walls and other obstructions should not be constructed across swales unless adequate replacement drainage improvements are provided. It is extremely important to provide adequate surface drainage to avoid ponding for surface runoff. Declarant has engineered and graded all Lots to qrain independently. It is imperative that Owners do not alter this system or divert drainage to adjacent Lots. Soil conditions were considered in the design and installation of builder provided Improvements, ~, foundations, driveways, walls, public sidewalks and street improvements as recommended by both professional soil and structural engineers and the County. Because of this soil condition, prior to the installation of Improvements on a Lot, a professional soils engineer and structural engineer should be consulted to check for soil conditions and, if necessary, to properly design the Improvements being installed to compensate for any expansion or settlement which may occur. Concrete or masonry decking must be specified, designed and constructed to compensate for said expansive soil in a Lot. By acceptance of fee title to a Lot, Owner acknowledges and agrees that Owner and Owner's consultants shall be responsible for properly installing any Improvements so as to protect these Improvements from damage and cracking due to any expansive soil condition which may exist on a Lot and Declarant shall have no liability or responsibility in connection with said soil condition including but not limited to repairing any cracking which may occur to Improvements installed by Owner. ARTICLE XVIII SPECIAL REQUIREMENTS OF THE CQUNTY Section 18.01 -Conditions of Approval. The obligations imposed upon the Maintenance Association and the Owners and the rights of the County contained in this Article are conditions of approval of the Development by the County. In the event any of the provisions of this Article conflict with any other provisions of the Maintenance Association Management Documents, the provisions of this Article shall prevail. Section 18.02 -Implementation of Best Management Practices. The provisions of this Article are intended to be guidelines that are to be (i) used to minimize the amount of watering, water run-off and the use of fertilizers, pesticides and herbicides, and (ii) a disclosure to the Maintenance Association and to the Owners that the discharge of debris, chemicals, oils or any other pollution materials into the storm drain system is prohibited. Section 18.03 -Assumption of Post Construction Best Management Practices. As a condition to the recordation of the final tract map for the Development, Declarant has been required to incorporate structural and non-structural Best Management Practices as prescribed by the County in a manner meeting the approval of the Manager, Subdivision Division of the County in consultation with the Managers. Flood Programs and Environmental Resources, all as more particularly described in such conditions of approval. the post-construction maintenance of which must be assumed by the Maintenance Association and the Owners. As provided in the Sections entitled "By Maintenance Association" and "By Owner" of this Declaration, the Maintenance Association and the Owners hav~ an obligation to maintain, repair, restore, replace and make all necessary Improvements of all Phases of the Covered Property in which a Close of Escrow has occurred which would include all post-construction Best Management Practices Improvements constructed or installed by Declarant. In accordance with the Section entitled "Noncompliance by Owner" of this Declaration and the Section entitled "Enforcement" of the Bylaws, the Maintenance Association further has the right to accomplish any maintenance, repair, restoration or replacement of any Improvements that are to be individually maintained by the Owners if such Owners fail to adequately 06-02-93 10532-0Cl042 L: 'J)OC~\ 9302'0042.6 Til 55 ( ) perform such maintenance, repair, restoration or replacement. The obligations of the Maintenance Association and Owners include the following: (a) Litter control to include Maintenance Association and individual trash collection, proper trash storage and collection procedures, emptying of trash receptacles and cleaning of trash storage areas; (b) Inspection of catch basins, cleanouts and inlets and annual cleaning of catch basins which must occur prior to October 15th of each year; (c) Vacuum truck sweeping of private streets at least once annually in the fall, prior to the October 15th start of the rainy season; Washing of driveways onto streets should be avoided. Section 18.04 -Landscaping and Irrigation System. Water conservation practices and fertilizer, pesticide and herbicide restrictions instituted for the Covered Property include the following: (a) All plant materials in a group should have the same watering requirements so that the irrigation controllers can be set to deliver the appropriate minimum amounts of water; , (b) Plant materials should be selected that minimize the need for fertilizer and pesticides; (c) Native and drought-resistant plants should be used that adapt to local soil conditions and are resistant to pests and adequate soil drainage techniques should be used that will minimize the need for fertilizer and pesticides; (d) Watering practices should be established that minimize fungus and mildew potential; ( (e) Special controllers and heads that allow several start times for watering should be utilized in \. order to limit the amount of water surface runoff and upper and lower slopes should have different irrigation operating times; (f) Excessive use ()f water is not permitted; and (g) vehicles. Buckets together with bio-degradable cleaning products are to be used for the washing of Section 18.05 -Catch Basin Stenciling. The letters and/or symbols on the catch basins being maintained by the Maintenance Association shall be inspected for legibility during the annual cleaning operation and the letters and/or symbols shall be re-stencilled if they are not legible. Stencilling shall read "NO DUMPING -DRAINS TO OCEAN." Section 18.06 -Newsletter Reminders. Reminders should be included in newsletters distributed to Owners that the individually maintained areas are to be kept clean from debris and waste materials and that dumping of debris or waste materials into the storm drain system is prohibited. Section 18.07 -Amendment. Any amendment to this Article of the Declaration shall require the prior written consent of the County. Section 18.08 -Enforcement. The County shall have the right to enforce by proceedings at law or in equity, all restrictions, conditions, covenants, and reservations now or hereafter imposed by the provisions 06-02-93 10532-00042 l:\DOC\302\~.6TH 56 ( ( ( \ \ I of this Article of the Declaration, or any amendment thereto, to the same extent as the Maintenance Association or any Owner. IN WITNESS WHEREOF, Declarant has executed this instrument the day and year first hereinabove written. STANDARD PACIFIC CORP., a Delaware corporation BY:~~~' r....:.-r-;.r/K __ -__ Its:?F~~ AJJthor;zed BepresentaUye STATE OF CALIFORNIA COUNTY OF ORANGE ) ) ) ss. On June 2, 1993 before me, Judith D. Crimmins , a notary public in and for said State, personally appeared Robert T Shj eta and Tar; T. Kartoz; an personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. >-c ctI a. E 0 (J ,\g i= c <U .g CD E ~ '§ u:: W CD C CD S2. I !2? !:' '" 0 0 '" WITNESS my hand and official seal. STAlE OF CAUFORNIA COUNTY OF Orange } }ss. } ir-(t"~-OFFICIAL SEAL ~";;t,; JUDmI D,CRWUINS I l.; . Notaty Public· CaAIomIa • ORANGE COUNTY I My Commlnion Erpiraa o~ 12. 1994 ~~~~--.-.. -.. --,-... , ..... ~~ On Augu s t 19. 1993 before me, __ ..J..IulI.ud ~j .I:.thll.-DI.L..... -lC...Jrr:..;;u:IDLllJIDLI.J;i..LDI.l:Si.--_____ _ personally appeared Robert T. Sbj oCa and .Tar; 1.. Kartozi an _____________________ personally known to me (or proved to me on the bas!;; of satisfactory evidence} to be the person(s) wh~~e name(s) is/are subscrib,ed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of ¥"t!j~h the r----=~e:~t.II-I .. 1 person(s) acted, executed the instrument. I i) JUDITH D. CRlUUINS '" ~ •• NoIaIy PubIc· CaJIomIa I l.. ORANG! COUttT'{ WITNESAhand;~/1 ~. L~~.,p" .. O~I2 ... " SignaturVk4£~ J U-?Z!/%c4./ . c<..; (This area for offiCial notarial seal) L: \DOC\302\ 93020042.6 Til 57 (Seal) \ 1 ) SUBORDINATION The undersigned, beneficiary under those certain deeds of trust encumbering all or a portion ( 1f the real property described within as the Initial Covered Property, which deeds of trust were recorded , In April 6, 1993 as Instrument Nos. 93-0230272 and 93-0230273, respectively, of Official Records, hereby consents to the within Declaration of Covenants, Conditions and Restrictions and hereby subordinates the lien of said deeds of tn.,Ist to the provisions of this Declaration. ( ct. o o '" The Irvine Company, a Michigan corporation By: (u'/I,· .;/1J/ !t / Its: 'E~five7§3&e ~~t BY:-r~~ ______ ~~~~~ ________________ __ STATE OF C~RNIA , COUNTY OF f} II J e /: ) ) ) ss. On ..I..if-.J-I:::.--1'C-----4~~--+--'--~_;__IT_r_ public in and for S3.1 Stat, person personally known to me 1eiF-f)£ffi~-te-~iH:}a-tRe-~Sl-S-~-SaldSt~~~tU&C~~ 0 be the perso s whose nam~ is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatur~on the Instrument the person-W., or the entity upon behalf of which the person~acted, executed the instrument. WITNESS my hand and official seal. )0 ¢ t ¢ t , t t e tOt 0 t _ .... " "-. '. DIANE YOUNG f ;2 : •• ' COMM.#981424 z z : . .• Notary Public -Colifomia ~ , ORANGE COUNTY ... My Comm. Expires DEC 29, 1996 ~ (lC..;/fs STA1EOFCALIFORNIA !' ' iss.J.iI.E <I?1/..yk#INtu~.(r ;(;,pOE COUNTY OF ~~Ill (LI: } )/ i /J On &{.5: ,,4 G 19 1i before mIX.. L4BN£ iwllJ C, J{Q!i9/l Y ~~ personally appeared t<.J, 1..1,,1; /lJ II j?; 4 f& It i& ,V4"; , ~/!U:5 i: ~{//1NIIU a It personally ~nown to me (or ~re.ee to I'M Of'! IRe sasis af satis~~8r)' 8' 'i6l9Rse~ to be the persorl!.§l whose name..!§l is/~ subscribed to the within instrument and acknowledged to me that he/she/t.hgy executed the same in his/her/!l:!m.r authorized capacity(ies), and that by his/her/their signaturw on the instrument the person.!§l or the entity upon behalf of which the personj§lacted, executed the instrument. I 0 0 0 0 0 e e e e e e e e tf • " ...... " DIANE YOUNG :;:' -COMM. # 981424 ij 2 . -0; -Notory Public -California ~ " , ORANGE COUNlY .... J -, ,. My Comm. Expires DEC 29, 1996 I 000400+.4 ••• 00 Cfhis area for official notarial seal) (Seal) ( ( \ ) Q Q < < 0 t; 0 cc: cc: Ii: \AI Ii: 0 ;: 0 Q. W Q. W ~ W CI cc: CI Q Q Q = w = a:a CI a:a Q = ~ ·0 Q. ! z SAN JOAQUIN HIUS ROAD --------~--------~---------- ,Annexation Property fRACTS 14711,14712 & 14583 NEWPORT RIDGE NOT TO SCALE EXHIBIT A ( ( \ ~ 0 ~ 1:1: lC 2 UI· ~ 2 UI UI ~ c:I 3 1:1: Q Q a: UI CI3 C Q 4 a: 13 i LOT 26 i-n 14712 ! Z SAN HiLLs ROAD ______ JOAQUIN ----------~---------LEGEND LANDSCAPE AREAS TO BE MAINTAINED. BY SUB ASSOCIATION LANDSCAPE AREAS TO BE MAINTAINED BY MASTER ASSOCIATION landscape Maintenance i'RACT 14711 NEWPORT RIDGE JUt.V 13.1SU rJIj NOT TO SCALE EXHIBIT B 13 12 I ROAD LEGEND LAND8CAPlA"1U TO .. MAJNTAIN&D tV aUB A"OCIAnON LAIlilDICAPt! .... EAS TO .1 MAINTAIIlilIlD IV MAllO A.SOCIATION Landscape Maintenance TRACT 1471' NEWPORT RIDGE fJ!j NOTTO.CALI I!XWIRIT n ( ( 1 ~ \----.s: i ~~---;"" 2 ~ \-----1: 1------1 8 3 r-----J = ..----tL-l Ii LOT2e TR 14712 13 12 C ------JOAQUIN HiLLs ROAD LEGEND II1IIII1IIII1IIII1IIII1II111 WALLS/FENCES TO BE MAINTAINED BY SUB ASSOCIATION ••• II •••• B. II WAllSn:ENCES TO BE MAINTAINED BY MASTER ASSOCIATION Perimeter Walls & Fences 14711 (ffj NOT TO SCALE - (RACT NEWP RT RIDGE EXHIBIT C JULYU,11a \ H,u.s ROAD --------~~--------~'-----LEGEND aa a.lIII. WAUSIFINCII TO BE MAINTAINED 8V aUI A88OCIATION ... ' .. II .. t" WAu.a~U 1'0 811 MAJNTAlN!.D DV MAS'nR Al80C&ATIOH Perimeter Walls & Fences TRACT 14711 MCUUDnDT Dln~c fJ!j NOTTOICAU ( ( ) 13 LOT 26 TR 14712 12 --. -------SAN JOAQUIN ROAD HIUS LEGEND • II1IIII1IIII1IIII1IIII1II111 PERMANENT WAu.s/FENCES THAT CANNOT BE REMOVED Dermanent Walls & Fences {RACT 14711 NEWPORT RIDGE JULy 12, 1M2 ~ 1 0 S a: ~ 2 ~ 2· '" 0 3 Q a: 113 4 Ii C I - (jJ NOT TO SCALE EXHIB8T 0 ( NEWPORT RIDGE ----, COYOTE CANYON lANOflL LiGEND Of= EXISTINGi?ROPOSED CEVELOfIMENT D R£SlOENT\A.1. mmm RETAIL _ PAAKSlTtS F-.' ... ~::j NAl\.IW. ~ . - rn FIRE STATION m POTENTW. SCHOOL SITE· m HELPAO m=~ Fe ... i SEGMENT OF NE'tWORT COAST OOM PROPOSED TO BE CONVERTED TO CommoR ruGHT OF WAY Note: The 0AilCl Of propOSeQ O8YIiMOPmenT snov.n on thIS map IS t::IaS8C2 on 1ne ICII8St PICn"'lll'lg nformcmon O'o'OtIOOIe. HoweWW. If snouId be no18d 1flaT most of 1ne ntOll'TlOtlOn IS ~ n nalU'e and 1'I8ftiItore 5U:)!eCT 10 cnonoe. The lOCOIIOnSond UI8S ~ ¥1411 De ref'In8d fIsIner 0$ S\.CSeQIl8t'\t oewIC)f:)m8nf prOC:ealng CXCUS 1M:lUgn IOCOI ~t ogend8$. to Scale ; I ·ShouId the Newport-Meso UnIfIed SChOol Ois1TIct detem'llne 1hat the poten1lOl elementoty school stte In Newport RIdQe Is not needed. the site will be deveIoped'Mft"l reslden1lal uses. EXHIBIT "E" CONTIGUOUS AREA MAP lAND USE MAP I.COII 100'\ ( ( EXHIBIT F RECORDING REQUESTED BY \ WHEN RECORDED MAIL TO: Pettis, Tester, Kruse & Krinsky 18881 Von Karman Avenue, Suite 1600 . Irvine, California 92715 Attn: Dorothy A. Urbanec (Space Above Line For Recorder's Use Only) AGREEMENT AND GRANT OF EASEMENTS NEWPORT RIDGE THIS AGREEMENT AND GRANT OF EASEMENTS (the "Agreement") is made this J J K day of ·1",,< , 1993 between THE IRVINE COMPANY, a Michigan corporation (the "Grantor"), and STANDARD PACIFIC CORP., a Delaware corporation (the "Grantee"). . RJ;;CIIALS A. Grantor is the current owner of the following described real property in the County of prange (the "County"), State of California: Lot C of Tract Map No. 14711 as'per map filed for record in Book 696, Pages 11 to 14, inclusive, of Miscellaneous Maps, records of said County (the "Burdened Property") which is encumbered by the Declaration of Covenants, Conditions and Restrictions for Newport Ridge Community ASSOCiation (the "Master Declaration") recorded by Grantor on May 5, 1993, as Instrument No. 93-0301553, of the Official Records of said County and is to be conveyed to the California nonprofit mutual benefit corporation (hereinafter the "Master Association") named in the Master Declaration. B. Grantee is the current owner of the following described real property in said County and State: Lots F and G of said Tract Map No. 14711 (the "Benefitted Property") which is encumbered by the Declaration of Covenants, Conditions and Restrictions (the "Declaration") recorded by Grantee on , as Instrument No. t of the Official Records of said County and is to be conveyed to the California -no-n-p-ro-"fi~t-m-u""'tu-a1""""-be-n-efi""t~corporation (hereinafter the "Maintenance Association") named in the Declaration. C. Grantor and Grantee desire and intend to establish an easement for storm drain purposes and, certain storm drain maintenance and use covenants for a portion of the Burdened Property, all as more fully described herein. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein 'ntained, and other good and valuable consideration, the receipt and sufficiency of which are hereby ,knowledged, Grantor and Grantee agree as follows: ("" __ .l.~ __ f "1 ,... __ ._~ _r" "1""'"_ ARTICLE I GRANT OF EASEMENT ( \. such maintenance, repair, renovation and reconstruction pursuant to the provisions of this Agreement and its Declaration and the Grantee shall have no further responsibility therefor. (b) The Easement granted hereby is subject to all easements, covenants, conditions, encumbrances, liens, dedications, offers of dedication, restrictions, reservations, rights and rights-of-way of record or apparent or of which Grantee has actual notice, which include those contained in the Declaration and the Master Declaration.' Section 1,02 -Maintenance. Repair and Reconstruction Requirements. (a) Storm Facilities. All maintenance and repairs of the Storm Facilities shall be performed by the owner of the Benefitted Property (hereinafter the " "Benefitted Property Owner") at its sole cost and expense. All maintenance and repairs shall be performed in such a manner and at such intervals as shall be required to at all times maintain the Storm Facilities in good working condition. (b) Other Maintenance and Rca>air. The Benefitted Property Owner, at its sole cost and I expense, shall also repair and replace all improvements or other things, including without limitation, landscaping, slopes, sidewalks and fences on, under, over or across the Easement Area or any adjacent or nearby pro~, whether existing as of the date hereof or installed or planted subsequent to the date hereof, whIch are in any manner damaged or removed as a result of the Benefitted Property Owner's use of the Easement Area. .' (c) Enforcement. All such maintenance, repairs or replacements shall be accomplished promptly and in any event within thirty (30) days of written notice from the Burdened Property Owner requesting that such maintenance, repairs and replacements be completed. If such maintenance, repairs or replacements are not completed within said thirty (30) days, the Burdened Property Owner may (but shall not be obligated to) accomplish such maintenance, repairs and replacements, and all costs and expenses incurred in performing such maintenance, repair and replacements, together with interest thereon at the t'3.te of ten percent (10.0%) per annum (but not to exceed the legal maximum rate) from the date incurred ( :ntil fully paid, shall be reimbursed by the Benefitted Property Owner within ten (10) business days after receipt of Invoice therefor. ARTICLEll TERMS AND CONDmONS Section 2.01 -Control of Access. The Burdened Property Owner shall have the sole and exclusive control and management of the Easement Area subject to the covenants, conditions and restrictions of this Agreement provided that such control and management does not unreasonably restrict the use thereof by the Benefitted Property Owner for authorized easement purposes. Section 2.02 -Obstruction. The Easement Area shall not be used by Burdened Property Owner in a manner that will unreasonably interfere with the use of the Easement for the easement purposes. Section 2.03 -Uabilit)' Insurance. Unless waived in writing by the Burdened Property Owner, the Burdened Property Owner shall be named as an additional insur~ on the public liability insurance policy maintained by the Benefitted Property Owner insuring against any liability arising from or relating to the use of the Easement Area or the Storm Facilities therein by the Benefitted Property Owner. If required by Burdened Property Owner, Benefitted Property Owner shall deliver to Burdened Property Owner policies or certificates of Insurance evidencing the above coverage immediately after execution of this Agreement ' and thereafter at least thirty (30) days prior to expiration of each such policy. The liability insurance policy shall be in the amount of not less than the amount required by the provisions of the Declaration and shall contain a clause that not less than thirty (30) days prior written notice will be given to Burdened Property Owner at the address set forth herein prior to cancellation or reduction in amount or scope of werage and shall provide that such policy and coverage evidenced thereby are primary and the Burdened . . {operty Owner's insurance is excess and noncontributing with such primary coverage. Any public liability insurance obtained by Burdened Property Owner shall not cover any liability of the Benefitted Property Owner in connection with the use of the Easement Area or the Storm Facilities therein by the Benefitted Property Owner. It shall be the responsibility of the Benefitted Property Owner to obtain public liability insurance insuring against any liability incident to its use of the Easement Area in the same manner. as &:n.efi~ted Property Owner mu_st obtain public liability insurance coverage for liability in ( ( lien release to be recorded and all costs and expenses so incurred by the Burdened Property Owner, together with interest thereon at the rate of ten percent (10.0%) per annum (not to exceed the maximum legal rate), shall be reimbursed by the Benefitted Property Owner within ten (10) business days after receipt of an invoice therefor. Section 2.05 -Mutual Indemnity. Benefitted Property Owner agrees to indemnify, protect, defend and hold harmless the Burdened Property Owner from and against any and all claims, obligations, expenses, liabilities and costs, including but not limited to attorneys' fees, for property damage or bodily injury, sickness, disability, disease or death of any person or persons arising directly or indirectly from the use of the Easement, including, without limitation, construction, grading, maintenance, fill, and related activities, by Benefitted Property Owner, its employees, contractors or agents, except to the extent such claim, obligation, expense, liability or cost arises out of the wilful or negligent acts or omissions of Burdened Property Owner. The Burdened Property Owner agrees to indemnify, protect, defend and hold harmless Benefitted Property Owner, from and against any and all claims, obligations, expenses, liabilities and costs, including but not limited to attorneys' fees, for property damage and bodily injury, sickness, disability, disease or death of any person or persons arising directly or indirectly from interference with the Benefitted Property Owner's use of the Easement by the Burdened Property Owner, its employees, contractors or agents, except to ~he extent such claim, obligation, expense, liability or cost arises out of the wilful or negligent act or omission of Benefitted Property Owner. ARTICLE III GENERAL PROVISIONS Section 3.01 -Mortgagee Protection. No breach of the covenants, conditions or restrictions herein shall affect, impair, defeat or render invalid the lien or charge of any mortgage or deed of trust made in good faith and for value encumbering any portion of the Burdened Property or the Benefitted Property, but all of said covenants, conditions and restrictions shall be binding upon and effective against any owner whose title is derived through foreclosure or trustee's sale, or otherwise, with respect to either the Burdened Property or the Benefitted Property. Section 3.02 -Notices. All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if personally delivered or sent by prepaid telegram or first class mail, postage prepaid, as follows: If to Grantor: If to Grantee: If to any other Benefitted Property Owner: If to any other Burdened Property Owner: The Irvine Company 550 Newport Center Drive #700 Newport Beach, CA 92660 Attn: General Counsel Land Development Companies Standard Pacific Corp. 1565 West MacArthur Boulevard Costa Mesa, CA 92626 Attn: Mr. Michael White To the principal place of business of such Benefitted Property Owner . To the principal place of business of such Burdened Property Owner \ny party may change the address to which such communications are to be directed to it by giving a )ritten notice to the other party in the manner provided in this paragraph. Any notice given by mail as provided in this paragraph shall be deemed given on the second (2nd) business day following such mailing and any notice given by telegram as provided herein shall be deemed delivered on the business day following the delivery of such notice to the telegraph company for transmission. Section 3.03 -Paragraph Headings. All paragraph headin!:!s are inserted for cnnvp.nlp.n('p. nnlv ~nri ~h~l1 limitation, reasonable attorneys' fees, incurred by the prevailing party in connection with such action or proceeding. ( ;etion 3.06 -Severability. If any term(s) or provision(s) of this Agreement or the application thereof to any persons or circumstances shall to any extent be invalid or unenforceable, the remainder of this Agreement or the application of such te~(s) or provision(s) to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby. Each and every term of this Agreement shall be valid and enforced to the fullest extent permitted by law. Section 3.07 -Inconsistencies and Ambiguities. This Agreement is to be deemed to have been prepared jointly by the parties hereto, and if any inconsistencies or ambiguities exist herein, they shall not be interpreted or construed against either party as the drafter. Section 3.08 -Gender and Number. Wherever in this Agreement the context so requires, references to .:le masculine shall be deemed to include the feminine and neuter, and reference to the singular shall be deemed to include the plural. Section 3.09 -Entire Agreement. This Agreement and the Exhibits attached hereto constitute the entire agreement between the parties pertaining to the subject matter hereof and all prior and contemporaneous agreements, representations, negotiations, and understandings of the parties, oral or written, are hereby superseded and merged herein. Section 3.10 -Mutual Csxweration. Each party hereto agrees to execute any and all documents and writings which may be necessary or expedient to carry out the intent of this Agreement, to do such other acts as will further the purposes hereof, and to refrain from any actions which would impede or otherwise interfere with the other party with respect to the performance of its duties and obligations hereunder. Section 3.11 -Covenants to Run with the Land. The easements and other rights reserved hereby and the ( 'venants contained herein shall run with the Benefitted Property and the Burdened Property and shall bind . .d inure to the benefit of the Benefitted Property, the Burdened Property, Burdened Property Owner, and Benefitted Property Owner, and their respective successors and assigns. Section 3.12 -CounteIl'arts. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which shall constitute one and the same instrument. Section 3.13 -Amendments. Any amendment to this Agreement must be in writing and signed by the Benefitted Property Owner and the Burdened Property Owner. Section 3.14 -Validity. The parties hereto acknowledge that the persons executing this Agreement, and all documents related thereto, on behalf of each party are and will be duly authorized so as to fully and legally bind such party. Section 3.15 -No Rights in Public. Nothing herein contained shall be deemed to be a gift or dedication of any portion of the Easement Area to or for the general public or for any public purpose whatsoever, it bemg the intention of the parties hereto that this Agreement shall be strictly limited to and for the purposes herein expressed. Section 3.16 -No Waiver. No waiver of any default by Benefitted Property Owner shall be implied from any omission by Burdened Property Owner to take any.action in respect to such default, if such default continues or is repeated. No express waiver of any default shall affect any default or cover any period of time other than the default and period of time specified in such express waiver. A waiver of any default in the performance of any provision contained in this Agreement shall not be deemed to be a waiver of any subsequent default in the performance of the same provision or any other provision contained herein. The consent or approval of Burdened Property Owner to or of any act or request by Benefitted Property ner requiring consent or approval shall not be deemed to be a waiver or render unnecessary the consent v. approval to or of any subsequent similar or actual request. IN WITNESS WHEREOF, the parties have executed this instrument as of the day and year first above written. ( \. STATE OF CALIFORNIA COUNTY OF ORANGE \ \ ) ) ) ) "Grantee" STANDARD PACIFIC CORP., a Delaware corporation By:_-=-______________ _ Its: -------------------------- By:_-:;-:-______________ _ Its: ------------------ ss. On before me, , a notary public in and for said State, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature _________ . _____ _ (Seal) ( 3TATE OF CALIFORNIA COUNTY OF ORANGE ) ) ) ss. On before me, , a notary public in and for said State, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. . WITNESS my hand and official seal. Signature _________________ _ (Seal) ( ( , . \ EXHIBIT • A' EASEMENT FOR STORM DRAIN PURPOSES LOT C OF TRACT NO. 14711 AN EASEMENT FOR STORM DRAIN PURPOSES WITHIN LOT" C ", OF TRACT NO. 14711, IN THE UNINCORPORATED TERRITORY OF THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A MAP FILED IN BOOK 696 PAGES 11 THROUGH 14, INCLUSIVE OF MISCELLANEOUS MAPS, DESCRIBED AS FOLLOWS; BEGINNING AT THE SOUTHEASTERLY CORNER OF LOT 5, AS SHOWN ON SAID TRACT NO. 14711; THENCE TO AN ANGLE POINT IN THE EASTERLY LINE OF SAID LOT· C ", NORTH 47°28'17" EAST, 33.77 FEET; THENCE ALONG SAID EASTERLY LINE SOUTH 19°53'50. EAST, 32.08 FEET TO A POINT OF INTERSECTION WITH SAID EASTERLY LINE AND THE EASTERLY PROLONGATION OF ALINE 15.00 FEET SOUTH OF THE NORTHERLY LINE OF LOT 6, AS SHOWN ON SAID TRACT NO. 14711; THENCE WESTERLY ALONG SAID EASTERLY PROLONGATION, SOUTH 78°12'13" WEST, 30.23 FEET TO A POINT ON THE EASTERLY LINE OF SAID LOT 6; THENCE ALONG SAID EASTERLY LINE THE FOLLOWING TWO (2) COURSES, 1 ) NORTH 1 r33'33" WEST, 12.99 FEET AND 2) NORTH 56°47'47" WEST, 12.99 FEET TO SAID POINT OF BEGINNING. AS MORE PARTICULARLY SHOWN ON EXHIBIT' B' ATIACHED HERETO AND MADE A PART HEREOF. MCl88 WO 325-18 MAR. 30, 1993 G.F.L. EXHIBIT II B ( \ ( ---. +~ \ -'" Ate 1M ( SAN _______________ ,JOAQUIN HILLS ROAD --------~~----~--LEGEND wJ.22 APPROXIMATE LOCATION OF SHEAR ZONES Shear Zone Locations TRACT 14711 NEWPORT RI E "(fj ~ ~ NOT TO SCALE EXHIBIT a