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HomeMy WebLinkAbout1.25 - 2015 Revised CCR Lake Springs Ranch Subdivision Preliminary Plan & PUD Amendment June 2015                                                Exhibit 24 | Revised CCR’s (w/Track Changes)                  AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR LAKE SPRINGS RANCH PUD ii AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR LAKE SPRINGS RANCH PUD TABLE OF CONTENTS 1 STATEMENT OF PURPOSE AND IMPOSITION OF COVENANTS .............................. 1 1.1 Amended and Restated………………………………………………….…..…………1 1.2 Purpose .................................................................................................................................... 1 1.3 Declarant's Intent ....................................................................................................... 1 1.4 Declaration ...................................................................................................................... 1 1.5 Covenants to Run with the Land ..................................................................... 1 1.6 Association .................................................................................................................. 1 2 DEFINITIONS ....................................................................................................... 2 2.1 Definition Reference ..................................................................................... 2 2.2 Act ............................................................................................................ 2 2.3 Articles of Incorporation ................................................................................. 2 2.4 Assessment ................................................................................................. 2 2.5 Association ................................................................................................. 2 2.6 Building Envelope ......................................................................................... 2 2.7 Bylaws ......................................................................................................... 2 2.8 Common Elements ....................................................................................... 2 2.9 Common Expenses ....................................................................................... 3 2.10 Declarant ..................................................................................................... 4 2.11 Declaration ................................................................................................... 4 2.12 Deed of Trust ............................................................................................... 4 2.13 Development Guidelines ............................................................................... 4 2.14 Development Review Committee ................................................................... 4 2.15 Eligible First Mortgagee ................................................................................. 4 2.16 Executive Board ......................................................................................... 4 2.17 First Mortgagee ............................................................................................ 4 2.18 Improvements .............................................................................................. 4 2.19 Lot ............................................................................................................... 5 2.20 Member ..................................................................................................... 5 2.21 Mortgage .................................................................................................... 5 2.22 Mortgagee ................................................................................................... 5 2.23 Mortgagor .................................................................................................. 5 2.24 Occupant ..................................................................................................... 5 2.25 Owner ......................................................................................................... 5 2.26 Person ......................................................................................................... 5 2.27 Plat ............................................................................................................. 6 2.28 Property ....................................................................................................... 6 2.29 Rules and Regulations .................................................................................. 6 iii 3 DESCRIPTION OF PLANNED COMMUNITY ............................................................ 6 3.1 Lots ............................................................................................................. 6 3.2 Lot Legal Description .................................................................................... 6 3.3 Allocated Interests ....................................................................................... 7 3.4 Agricultural Preserve .................................................................................... 7 4 COMMON ELEMENTS ............................................................................................ 7 4.1 Use and Enjoyment of Common Elements ...................................................... 7 4.2 Association Regulation of Use of Common Elements ........................................ 8 4.3 Association to Operate and Maintain Common Elements ................................... 8 4.4 No Partition of Common Elements .................................................................. 8 4.5 Owner Liability for Owner or Occupant Damage to Common Elements .............. 8 4.6 Damage or Destruction to Common Elements ................................................. 9 4.7 Condemnation of Common Elements ............................................................. 9 4.8 Title to Common Elements Upon Dissolution of Association ............................... 9 4.9 Mechanic's Liens on Common Elements ........................................................ 9 4.10 Reservation of Excess Capacity in Water System ............................................. 9 5 EASEMENTS ........................................................................................................ 10 5.1 Recorded Easements ................................................................................... 10 5.2 Owner's Easements .................................................................................... 10 5.3 Emergency Access Easement ...................................................................... 10 5.4 Utility Easements ....................................................................................................... 10 5.5 Easements for Incidental Encroachments ................................................................. 11 5.6 Maintenance Easement ............................................................................................... 11 5.7 Drainage Easement ..................................................................................... 11 5.8 Construction Easement ............................................................................... 11 5.9 Easements Deemed Created ....................................................................... 11 6 THE ASSOCIATION ............................................................................................. 11 6.1 Association ................................................................................................ 11 6.2 Association Executive Board ......................................................................... 12 6.3 Membership ................................................................................................ 12 6.4 Required Compliance ................................................................................... 12 6.5 Voting Rights of Members ........................................................................... 12 6.6 Authority ................................................................................................... 12 6.7 Powers ........................................................................................................................ 12 6.8 Obligations ............................................................................................................... 12 6.9 Water System .......................................................................................................... 13 6.10 Well Monitoring ........................................................................................... 13 6.11 Limited Liability ............................................................................................ 13 6.12 Declarant Control ....................................................................................... 13 7 ASSESSMENTS ................................................................................................... 13 7.1 Assessments ............................................................................................... 13 7.2 Annual Assessments ................................................................................... 13 iv 7.3 Apportionment of Assessments ................................................................... 13 7.4 Special Assessments ................................................................................... 14 7.5 Default Assessments ................................................................................... 14 7.6 Payment of Assessments ............................................................................. 14 7.7 Creation of Association Lien and Personal Obligation to Pay Assessments ....... 14 7.8 Effect of Non-Payment of Assessments .......................................................... 15 7.9 Open Space and Wildlife Conservation Fund ................................................. 15 7.10 Working Fund ............................................................................................ 15 8 PROPERTY USE RESTRICTIONS .......................................................................... 16 8.1 General Restriction ...................................................................................... 16 8.2 Limited Business Activities ............................................................................ 16 8.3 Construction and Alteration of Improvements ................................................. 16 8.4 Compliance With Laws ................................................................................. 16 8.5 Nuisance ................................................................................................... 16 8.6 No Hazardous or Unsafe Activities ............................................................... 16 8.7 Prohibition of Increases in Insurable Risks .................................................... 16 8.8 Prohibition against Damage or Waste ............................................................ 17 8.9 Vehicles ...................................................................................................... 17 8.10 Obstructions ............................................................................................... 17 8.11 No Firearms or Hunting .............................................................................. 17 8.12 Service Facilities ......................................................................................... 17 8.13 Maintenance of Landscaping ........................................................................ 17 8.14 Natural Vegetation Preservation ................................................................... 17 8.15 Animals and Pets ....................................................................................... 18 8.16 Signs .......................................................................................................... 19 8.17 Solid Waste ................................................................................................................ 19 8.18 Outside Burning ......................................................................................................... 19 8.19 Dust Control ................................................................................................................ 19 8.20 Noise ........................................................................................................................... 20 8.21 Odor ............................................................................................................................ 20 8.22 Lighting ...................................................................................................................... 20 8.23 Wells ........................................................................................................................... 20 8.24 Minerals ...................................................................................................................... 20 8.25 Excavation or Fill ........................................................................................................ 20 8.26 Drainage and Erosion Control ................................................................................... 20 8.27 Vegetation and Noxious Weed Control and Management ..................................... 20 8.28 Wildlife Protection Restrictions .................................................................................. 21 8.29 Geotechnical Restrictions ......................................................................................... 22 8.30 Wildfire Prevention ..................................................................................................... 23 8.31 Requirement for Pressure Reducer Valves ............................................................ 23 9 DEVELOPMENT REVIEW ..................................................................................... 24 9.1 Development Guidelines .............................................................................. 24 9.2 Development Review Committee .................................................................. 24 9.3 Meetings and Action of Development Review Committee ................................. 24 v 9.4 Pre-submission Conference ..................................................................................... 24 9.5 Development Review ............................................................................................... 24 9.6 Development Review Expenses .............................................................................. 25 9.7 Decision of Committee .............................................................................................. 25 9.8 Prosecution and Completion of Work After Approval.............................................. 25 9.9 Limitation of Liability .................................................................................................. 26 10 CONSTRUCTION AND ALTERATION OF IMPROVEMENTS ................................... 26 10.1 General ....................................................................................................................... 26 10.2 Approval Required ................................................................................................... 26 10.3 Underground Utility Lines ........................................................................................ 26 10.4 Size Restrictions of Dwellings ................................................................................... 27 10.5 Specific Requirements for Dwellings ....................................................................... 27 10.6 Fireplaces and Stoves ............................................................................................... 27 10.7 Fences and Hedges .................................................................................................. 27 10.8 Landscaping .............................................................................................................. 27 10.9 Removal of Nonconforming Improvements ............................................................ 28 10.10 Fire Protection District Recommendation ................................................................ 28 11 MAINTENANCE .................................................................................................... 28 11.1 Owner's Maintenance Responsibility ....................................................................... 28 11.2 Owner's Negligence .................................................................................................. 28 11.3 Association's Maintenance Responsibility ............................................................... 28 12 INSURANCE ............................................................................................................................................ 29 12.1 Owner's Insurance Responsibility ........................................................................................... 29 12.2 Association's Insurance Responsibility ................................................................................... 29 12.3 Coverage .................................................................................................................................... 29 12.4 Required Provisions................................................................................................................... 29 12.5 Adjustment of Claims ................................................................................................................ 29 12.6 Copies of Policies ....................................................................................................................... 30 13 RESERVATION OF DEVELOPMENT RIGHTS ........................................................................... 30 13.1 Development and Withdrawal Rights ..................................................................................... 30 13.2 Construction Easement ............................................................................................................. 30 13.3 Reciprocal Easements .............................................................................................................. 30 13.4 Termination of Development Rights ........................................................................................ 31 13.5 Interference with Development Rights ................................................................................... 31 13.6 Transfer of Development Rights .............................................................................................. 31 14 SPECIAL DECLARANT RIGHTS ............................................................................. 31 14.1 Special Declarant Rights ............................................................................. 31 14.2 Additional Reserved Rights .......................................................................... 32 14.3 Limitations on Special Declarant Rights and Additional Reserved Rights ........... 32 14.4 Interference with Special Declarant Rights ..................................................... 33 14.5 Rights Transferable ...................................................................................... 33 vi 14.6 Declarant Control of Association ....................................................................... 33 14.7 Election by Owners ..................................................................................................................... 33 15 MORTGAGEE PROTECTIONS ............................................................................... 34 15.1 Introduction ................................................................................................. 34 15.2 Percentage of First Mortgagees .................................................................... 34 15.3 Notice of Actions .......................................................................................... 34 15.4 Consent Required ........................................................................................ 34 15.5 Notice of Objection ....................................................................................... 35 15.6 First Mortgagees' Rights ............................................................................. 34 15.7 Limitations on First Mortgagee's Rights .......................................................... 35 15.8 Special Declarant Rights ............................................................................. 35 16 ENFORCEMENT OF DECLARATION .................................................................... 35 16.1 Violation Deemed a Nuisance ..................................................................... 35 16.2 Compliance ................................................................................................ 35 16.3 Who May Enforce ...................................................................................... 35 16.4 Enforcement .............................................................................................. 36 16.5 Nonliability .................................................................................................. 36 16.6 Recovery of Costs ....................................................................................... 36 17 MISCELLANEOUS PROVISIONS ........................................................................... 36 17.1 Severability ............................................................................................. 36 17.2 Construction ........................................................................................... 36 17.3 Third Party Beneficiary ........................................................................... 36 17.4 Condemnation ........................................................................................ 36 17.5 Headings ................................................................................................ 36 17.6 Conflicts in Legal Documents ................................................................. 36 17.7 No Public Use Dedication ....................................................................... 37 17.8 Notices ................................................................................................... 37 17.9 Waiver or Delay in Enforcement ........................................................... 37 17.10 Choice of Law and Jurisdiction ............................................................... 37 18 DURATION OF COVENANTS AMENDMENT AND TERMINATION ........................... 37 18.1 Term ....................................................................................................... 37 18.2 Amendment of Declaration ..................................................................... 37 18.3 Execution of Amendments: Expenses .................................................... 38 18.4 When Modifications Permitted ................................................................ 38 18.5 Recording of Amendments ..................................................................... 38 18.6 Termination of the Planned Community ................................................. 38 1 AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR LAKE SPRINGS RANCH PUD THIS AMENDED AND RESTATED DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS FOR Lake Springs Ranch PUD, to be effective upon its recordation, is made by The Berkeley Family LLLP, a Colorado Limited Liability Limited Partnership ("Declarant") as the owner of certain real property located in the County of Garfield, Colorado, (the "Property") and more particularly described on Exhibit "A" annexed hereto and incorporated herein by this reference. 1. STATEMENT OF PURPOSE AND IMPOSITION OF COVENANTS 1.1 Amended and Restated. This Declaration is intended to amend and restate the Declaration of Covenants, Conditions, Restrictions and Easements for Lake Springs Ranch PUD, Filing 1 recorded in the office of the Clerk and Recorder on December 8, 2004 in Book 1645 at Bake 315 at Reception No. 664631 and hereby replaces and supersedes such document in its entirety. 1.2 Purpose. The purpose of this Declaration is to create a common interest community for the Property, to be known as Lake Springs Ranch PUD (the "Planned Community") by submitting the Property to the provisions of the Colorado Common Interest Ownership Act, C.R.S. § 38-33.3-101, et seq., as amended from time to time (the "Act"). 1.3 Declarant's Intent. Declarant intends to preserve and protect the value, desirability and attractiveness of the Property, to restrain and minimize future impairment or deterioration of the Property and to promote and safeguard the health, comfort, enjoyment, safety, convenience and welfare of persons acquiring an interest in the Pr operty. 1.4 Declaration. Declarant hereby submits the Property, including all improvements, appurtenances and facilities relating to or located on the Property now and in the future, as a Planned Community under the Act, and hereby declares, makes, imposes and establishes the following covenants, conditions, restrictions, reservations, easements and other provisions (collectively the "Declaration"), upon all of the Property, which from this day forward shall be held, sold, conveyed, encumbered, leased, rented, occupied and improved, subject to this Declaration. 1.5 Covenants to Run with the Land. All provisions of this Declaration shall be covenants running with the land, or as equitable servitudes, as the case may be. The benefits, burdens and other provisions contained in this Declaration shall be binding upon and inure to the benefit of all persons or entities having any right, title, or interest in all or any part of the Property, including Declarant, all Owners and their respective heirs, executors, administrators, personal representatives, successors, assigns, families, tenants, guests, employees, contractors, agents, licensees and invitees. 1.6 Association. Declarant has created the Lake Springs Ranch Owners Association, a Colorado nonprofit corporation, its successors and assigns (the "Association") to manage the affairs of the Planned Community. The Association shall serve as the governing body of the 2 Owners, shall hold title to that portion of the real estate within the Planned Community not located within Lots, shall protect, improve, repair, administer, operate, maintain and preserve the Common Elements, shall administer and enforce this Declaration, including, without limitation, collecting and disbursing the assessments and charges created under this Declaration. 2 DEFINITIONS 2.1 Definition Reference. The definitions set forth in Section 38-33.3-103 of the Act shall be used to interpret the provisions of this Declaration. The terms enclosed with quotation marks which appear throughout this Declaration shall be used as abbreviations for the referenced item when the item appears elsewhere in this Declaration. All definitions set forth in this Declaration shall supplement the definitions in the Act and in the event of conflict between the definitions provided in this Declaration and the Act, the Act shall control. 2.2 Act. "Act" shall mean the Colorado Common Interest Ownership Act as provided in C.R.S. § 38-33.3-101, et seq., as the same may be amended from time to time. 2.3 Articles of Incorporation. "Articles of Incorporation" or "Articles" means the Articles of Incorporation of Lake Springs Ranch Owners Association, filed in the office of the Secretary of State of the State of Colorado on May 3, 2001, and as the same may be amended from time to time. 2.4 Assessment. "Assessment" means an Annual Assessment, Special Assessment or Default Assessment, all of which shall be a Common Expense Liability as defined by the Act. 2.5 Association. "Association" means the Lake Springs Ranch Owners Association, a Colorado nonprofit corporation, its successors and assigns. 2.6 Building Envelope. "Building Envelope" means that portion of each Lot which is depicted and designated as the Building Envelope on a Plat. All structural Improvements shall be located within the Building Envelope on a Lot, except that driveways, walks, pathways, other similar features, fences, underground utilities, irrigation and drainage systems, and landscaping may be located outside the Building Envelope. 2.7 Bylaws. "Bylaws" means the Bylaws of the Association adopted by the Executive Board of the Association, as the same may be amended from time to time. 2.8 Common Elements. "Common Elements" means all portions of the real estate in the Property owned by the Association other than Lots including all Improvements and amenities and personal property thereon or associated therewith, which shall be held by the Association for the use, enjoyment and benefit of the Owners. The Common Elements include, but are not limited to, (i) all portions of the Property designated in this Declaration, or any Supplemental Declaration or on a Plat or any Supplemental Plat as Common Elements or open space, (ii) all easements created or reserved on any Plat or Supplemental Plat, or in this Declaration or in any Supplemental Declaration, or in any separate agreement, for the use and benefit of the Association, and (iii) any water rights, ditch rights and/or water production, treatment, storage and delivery facilities (or interests therein) that may be owned by the Association or which the Association may be entitled to use. 3 2.9 Common Expenses. "Common Expenses" means any expenditures made or liabilities incurred by or on behalf of the Association, together with any allocations to reserves, including, but not limited to the following: 2.9.1 Costs of maintenance, management, operation, repair and replacement of the Common Elements; 2.9.2 Costs of Improvements constructed from time to time by the Association on the Common Elements; 2.9.3 Costs of maintaining the utility systems owned by the Association and the costs of making capital repairs and replacements therein; 2.9.4 Costs of management and administration of the Association, including, but not limited to, compensation paid by the Association to managers, accountants, attorneys and employees; 2.9.5 Costs of utilities and services (including, but not limited to, treated or untreated water, electricity, gas, sewer, trash pick-up and disposal and recycling), which are provided to the Association or the Planned Community and not individually metered or assessed to Lots, landscaping maintenance, and other services which generally benefit and enhance the value and desirability of the Planned Community and which are provided by or on behalf of the Association; 2.9.6 Insurance premiums on policies maintained by the Association as required or permitted herein or by the Act; 2.9.7 Reasonable reserves for contingencies, replacements and other proper purposes as deemed appropriate by the Executive Board to meet anticipated costs and expenses including, but not limited to, maintenance, repair and replacement of those capital items owned by the Association which must be maintained, repaired or replaced on a periodic basis; 2.9.8 Costs of bonding the members of the Executive Board, the officers of the Association, any professional managing agent or any other Person handling the funds of the Association; 2.9.9 Taxes paid by the Association; 2.9.10 Unpaid Assessments; 2.9.11 Amounts paid by the Association for discharge of any lien or encumbrance levied against the Common Elements; 2.9.12 Costs incurred by the Development Review Committee, and by any other committees that may be established from time to time by the Executive Board; 4 2.9.13 Other expenses reasonably incurred by the Association for any reason whatsoever in connection with the Common Elements, or the costs of any other item or service provided or performed by the Association pursuant to this Declaration, the Articles or Bylaws of the Association, applicable Rules and Regulations, or the Development Guidelines, or in furtherance of the purposes of the Association or in the discharge of any duties or powers of the Association. 2.10 Declarant. "Declarant" means The Berkeley Family LLP a Colorado Limited Liability Limited Partnership, its successors and assigns. A Person shall be deemed to be a "successor and assign" of Declarant if specifically designated as such in a duly recorded instrument but only as to the expressly designated matters contai ned in such an instrument. 2.11 Declaration. "Declaration" means this instrument, together with any supplement or amendment and any other recorded instrument however denominated, that exercises a Development Right, executed and recorded by Declarant. The term Declaration includes all Plats recorded with this Declaration and all amendments and supplements to such Plats without specific reference thereto. 2.12 Deed of Trust. "Deed of Trust" means a Deed of Trust or a Mortgage. 2.13 Development Guidelines. "Development Guidelines" means the rules, procedures, standards, guidelines, and requirements promulgated from time to time by the Development Review Committee and all amendments thereto, governing the review and approval or disapproval of proposed Improvements within the Planned Community. The Development Guidelines shall include rules, procedures, standards, guidelines, and requirements that will attempt to preserve the natural characteristics of each Lot, including trees, vegetation, particularly the Harrington’s penstemon, and the natural setting surrounding the Lot. The Development Guidelines include the entire contents of the approved, recorded Lake Springs Ranch Planned Unit Development PUD Guide, as that document may be amended from time to time. 2.14 Development Review Committee. “Development Review Committee” means the body created for the purpose of establishing and enforcing criteria for the construction of Improvements within the Planned Community and is authorized to control all exterior modifications to Improvements. 2.15 Eligible First Mortgagee. "Eligible First Mortgagee" means a First Mortgagee that has notified the Association in writing of its name and address and status as a First Mortgagee and has requested that it receive mortgagee protection notices as provided in this Declaration. 2.16 Executive Board. “Executive Board” means the governing body of the Association. 2.17 First Mortgagee. "First Mortgagee" means a holder of a Mortgage on a Lot which is the first and most senior on such Lot. 2.18 Improvements. "Improvements" means any improvements, structural or otherwise, alterations, additions, repairs, excavation, grading, landscaping or other work which in any way 5 alter any property within the Planned Community, or the improvements located thereon, from its natural or improved state existing on the date this Declaration was recorded, including, but not limited to, dwelling units, buildings, outbuildings, additions, swimming pools, patio covers, awnings, the painting or other change of any exterior surfaces of any visible structure, walkways, outdoor sculptures or artwork, sprinkler or irrigation systems, garages, carports, roads, driveways, parking areas, ponds, ditches, fences, screening walls, retaining walls, stairs, decks, flag poles, fixtures, landscaping (including the addition, alteration or removal of any tree, shrub or other vegetation), hedges, windbreaks, plantings, planted trees and shrubs, gardens, poles, signs, tanks, solar equipment, wind harnessing or other energy generating equipment, exterior air conditioning, water softener fixtures, utilities, antennae and satellite dishes or receivers. Once an Improvement has been constructed or accomplished on a property within the Planned Community, any subsequent alteration of or addition to or removal of that Improvement shall also constitute an "Improvement" hereunder. "Improvements" do not include repairs or alterations which do not change exterior colors or exterior appearances. 2.19 Lot. "Lot" means any part of the Property which is designated for separate ownership or occupancy as a Lot with boundaries described upon a Plat, together with all Improvements thereon and appurtenances thereto. For purposes of conforming the terms and provisions of this Declaration to the terms and conditions of the Act, the term "Lot" as used in this Declaration shall be analogous to the terms "Unit" as that term is defined in the Act. 2.20 Member. "Member" means each Lot Owner including Declarant. 2.21 Mortgage. "Mortgage" means any mortgage, deed of trust or other security instrument, given voluntarily by the Owner of a Lot, creating a real property security interest in a Lot and duly recorded in the records of the Clerk and Recorder of Garfield County. The term "Mortgage" does not mean a statutory, tax or judicial lien. The term "Deed of Trust" when used herein shall be synonymous with the term "Mortgage." 2.22 Mortgagee. "Mortgagee" means a mortgagee under a Mortgage or a beneficiary under a Deed of Trust, as the case may be, and the assignees of such Mortgagee. 2.23 Mortgagor. "Mortgagor" means the maker, obligor or grantor of a Mortgage. The term "Mortgagor" includes a trustor or grantor under a deed of trust. 2.24 Occupant. "Occupant" means any Person who is present within the Planned Community as a family member, tenant, servant, employee, agent, licensee, guest or invitee of an Owner. 2.25 Owner. "Owner" means the Person, including Declarant, or, if more than one, all Persons collectively, who hold fee simple title of record to a Lot, (including contract sellers but excluding contract buyers) but excluding any Person holding only a Mortgage in a Lot unless and until such Person has acquired fee simple title to the Lot. The term "Owner" shall be analogous to the term "Unit Owner", as that term is defined in the Act. 2.26 Person. "Person" means a natural person, a corporation, a partnership, a limited liability company, an association, a trust, or any other legal entity or any combination thereof. 6 2.27 Plat. "Plat" means the Final Plat of Lake Springs Ranch, Filing 1, as recorded December 8, 2004, at Reception No. 664629 in the Office of the Clerk and Recorder of Garfield County, Colorado, as said Final Plat may be amended from time to time and the Final Plat of the First Amended Lake Springs Ranch PUD, as recorded ________________ at Reception No. ________________ in the Office of the Clerk and Recorder of Garfield County, Colorado as said Final Plat may be amended from time to time. By this reference, said Plat is incorporated in this Declaration. Inasmuch as the Property will be platted and developed in phases, the term "Plat" also means any supplemental plat recorded by Declarant and all recorded amendments thereto. 2.28 Property. "Property" means the real property described on the attached Exhibit "A" 2.29 Rules and Regulations. "Rules and Regulations" means written standards adopted, amended, supplemented, suspended, repealed and otherwise promulgated from time to time by the Executive Board, as provided by this Declaration for the management, preservation, safety, control and orderly operation of the Planned Community in order to effectuate the intent and to enforce the obligations set forth in this Declaration. 3 DESCRIPTION OF PLANNED COMMUNITY 3.1 Lots. The Property is hereby divided into a maximum of 118 single family Lots, one multi-family tract containing a maximum of 18 12 multi-family dwelling units and the balance of the Property shall be allocated to the Common Elements, including an Agricultural Preserve and other open space as shown on the Preliminary Plan and Final Plat(s). All Lots shall be developed for residential purposes only in conformance with this Declaration. Any multi-family Lots may be owned in the form of apartment ownership or condominium or townhouse ownership. If condominium or townhouse ownership then upon such development, each separate residence shall constitute a Lot under this Declaration. Identification numbers and boundaries shall be shown on the Plat, or Supplemental Plats, depicting each Lot as surveyed. 3.2 Lot Legal Description. Subsequent to the recording of this Declaration and the Plat, contracts to convey, instruments of conveyance, and all other instruments affecting title to a Lot shall be in substantially the following form, subject to such changes or other provisions as may be required by any law, practice or usage: Lot _________ , Lake Springs Ranch, Filing 1, according to the Plat recorded December 8, 2004 as Reception No. 664629 and the Declaration of Covenants, Conditions, Restrictions and Easements for Lake Springs Ranch, Filing 1, recorded December 8, 2004 as Reception No. 664631 in the office of the Clerk and Recorder of Garfield County, Colorado. or Lot ____, Lake Springs Ranch P.U.D., according to the Plat recorded _________________, 2011 20__ as Reception No. ______________ and the 7 Amended and Restated Declaration of Covenants, Conditions, Restriction and Easements for Lake Springs Ranch P.U.D., recorded ____________, 2010 2___ at Reception No. __________ in the office of the Clerk and Recorder of Garfield County, Colorado. Every instrument of conveyance, Mortgage or other document affecting the title to a Lot which legally describes the Lot substantially in the manner stated above shall be construed to include the Lot, all fixtures and improvements contained in such Lot and to incorporate all rights, powers, duties and liabilities incident to the ownership of a Lot described in this Declaration. 3.3 Allocated Interests. The Common Expense Liability of each Lot shall be determined by dividing the total number of Lots which have been described on a Plat duly recorded as of the date of calculation into 1 and the result then multiplied by the applicable Common Expenses or Assessment to determine each Lot's share of the same. The Common Expense Liability for an Affordable Housing Lot may be modified in accordance with Section 7.3. 3.4 Agricultural Preserve. The Agricultural Preserve depicted on the Plat, is reserved to Declarant for agricultural activities and pursuits including the cultivation of agricultural crops and rearing of livestock for profit. Declarant may continue to use any of the Property for agricultural purposes, even if not shown on the Plat, until such time as the affected Lots are sold and/or developed. No Owner shall have any right in or power with respect to the Agricultural Preserve and such unplatted Property currently being used for agricultural purposes, the use and enjoyment of which is reserved exclusively to Declarant. Inasmuch as it is the declared policy of the State of Colorado to conserve, protect and increase the development and improvement of agricultural lands for the production of agricultural products, and a portion of the Property will remain in agricultural production for an indefinite period of time, all Owners are charged with notice that certain portions of the Property are agricultural lands upon which agricultural operations have been continuing for more than one (1) year prior to the date of recordation of this Declaration. In accordance with applicable Colorado law, no such agricultural operations shall be deemed a private or public nuisance by reasons of development of the Property or any other changed condition in or about the vicinity of the agricultural operation, except in the case of (a) the negligent operation of the agricultural use, (b) a change of the agricultural operation which would result in a private or public nuisance, or (c) upon a substantial increase in the size of the agricultural operation. 4 COMMON ELEMENTS 4.1 Use and Enjoyment of Common Elements. Except as otherwise provided in this Declaration, each Owner shall have the non-exclusive right to use and enjoy the Common Elements in common with all other Owners for all purposes for which such Common Elements were established, and as required for purposes of access and ingress to and egress from Owner's Lot or Common Elements available for the Owner's use. This right to use and enjoy the Common Elements shall extend to each Owner and Occupant and shall be appurtenant to each Lot, subject at all times to the provisions of this 8 Declaration (including Declarant's reserved rights hereunder), the Articles, Bylaws and Rules and Regulations. No Owner or Occupant shall place any structure upon the Common Elements, nor shall any Owner or Occupant engage in any activity which will temporarily or permanently impair free and unobstructed access to all parts of the Common Elements by all Owners. 4.2 Association Regulation of Use of Common Elements. The Association, acting through the Executive Board, shall have the right and authority to regulate the use of the Common Elements by the promulgation, enforcement and interpretation from time to time of such Rules and Regulations as the Association considers necessary or appropriate for the protection and preservation of the Common Elements and the enhancement of the use and enjoyment thereof by the Owners and Occupants. Such Rules and Regulations may include, without limitation, restrictions on uses of the Common Elements for environmental preservation purposes such as protection and enhancement of wildlife corridors, winter wildlife ranges and natural wildlife habitat. The Association, acting through the Executive Board, may suspend the right of any Member not in good standing to use and enjoy the Common Elements. A "Member Not in Good Standing" means a Member who is delinquent in the payment of Assessments or is in violation of the terms and provisions of this Declaration, the Articles, Bylaws, Rules and Regulations or the terms and provisions of any approvals granted by the Development Review Committee. 4.3 Association to Operate and Maintain Common Elements. The Association shall operate and maintain the Common Elements in good condition and shall repair and replace as necessary, roads, gravel pedestrian trail, the domestic water system, irrigation facilities, drainage structures and other Improvements on the Common Elements. The Association shall construct, alter and remove such Improvements and landscaping upon the Common Elements as the Association in its discretion considers necessary, desirable or appropriate from time to time, and shall do all such other and further acts which the Executive Board deems necessary or appropriate to preserve, protect and enhance the Common Elements in accordance with the general objectives for the Planned Community as reflected in this Declaration. The Association shall adopt and implement effective control and management of noxious weeds which appear on the Common Elements. 4.4 No Partition of Common Elements. No Owner or other Person shall have any right to partition or to seek the partition of the Common Elements or any part thereof. 4.5 Owner Liability for Owner or Occupant Damage to Common Elements. Each Owner shall be liable to the Association for any damage to Common Elements or for any expense, loss or liability suffered or incurred by the Association in connection with the Common Elements arising from (a) the negligence or willful misconduct of such Owner or of any Occupant of such Owner, or (b) any violation by such Owner or any Occupant of such Owner of any law, regulation, or code, including without limitation any environmental law, or of any provisions of this Declaration or the Rules and Regulations relating to the Common Elements. Each Owner shall indemnify, defend and hold the Association harmless from any loss, damage, expense or liability arising from the circumstances described in subparts (a) or (b) immediately above. The Association shall have the power to levy and collect a Default Assessment against an Owner to recover the costs, 9 expenses, damages, losses or liabilities incurred by the Association as a consequence of any such negligence, willful misconduct or violation. 4.6 Damage or Destruction to Common Elements. In the event of damage to or destruction of the Common Elements, including Improvements thereon, by fire or other casualty, the Association shall repair or replace the same in accordance with the provisions of this Declaration. 4.7 Condemnation of Common Elements. If any Common Elements or part thereof or interest therein is taken under exercise of the power of eminent domain or by purchase in lieu thereof, the portion of any award in condemnation or the price payable for the deed in lieu that is attributable to the Common Elements taken or purchased shall be paid to the Association. The Association shall have the exclusive right to participate in such condemnation proceedings and to represent the interests of all Owners and other interested Persons therein. Any award or funds received by the Association shall be held by the Association as a reserve for future maintenance, repair, reconstruction, or replacement of Common Elements or may be used for Improvements or additions to or operation of Common Elements or for such other uses as may be deemed appropriate by the Executive Board. Except as may otherwise be provided by the Act, no Owner or other Person shall be entitled to participate as a party or otherwise in any condemnation proceedings nor to receive any proceeds therefrom. 4.8 Title to Common Elements Upon Dissolution of Association. In the event of dissolution of the Association, the Common Elements shall, to the extent permitted by law and reasonably possible, be conveyed or transferred to an appropriate public, governmental or quasi governmental agency or organization or to a nonprofit corporation, association, trust, or other organization, to be used, in any such event, for the common benefit of Owners for the purposes for which the Common Elements were held by the Association. If the foregoing is not possible, the Common Elements shall be sold or disposed of and the proceeds from the sale or disposition shall be distributed to Owners in proportion to each Owner's allocated interest in the Common Expenses of the Association. 4.9 Mechanic's Liens on Common Elements. Declarant shall be responsible for the release of mechanics' liens filed with respect to Common Elements, or any part thereof, if such liens arise from labor performed or materials furnished at the insistence of Declarant, its agents, contractors or subcontractors during the Declarant’s control of the Planned Community. Likewise, the Association shall be responsible for the release of mechanics' liens filed with respect to Common Elements, or any part thereof, if such liens arise from labor performed or materials furnished at the insistence of the Association, its directors, officers, agents, contractors or subcontractors. No labor performed or materials furnished with respect to a Lot at the insistence of the Owner shall be the basis for filing a lien against the Common Elements and each Member shall be responsible for the release of any mechanics’ lien filed due to Member’s nonpayment with respect to the Common Elements. No labor performed or materials furnished with respect to the Common Elements at the insistence of the Executive Board shall be the basis for filing a lien against any Lot. 4.10 Reservation of Excess Capacity in Water System. To the maximum extent and duration permitted by law, Declarant reserves the right to use excess capacity of the water system, water 10 and water rights, well and well rights, ditch and ditch rights, pumps, tanks, pipelines and other equipment, fixtures and water supply facilities necessary for the exercise of any existing or subsequently decreed water rights or augmentation plans together with any easements necessary for the utilization of the same and to add to such water system or water rights as Declarant deems appropriate, to amend or change any water court decree, and to substitute water source or amount of water in any water right as may be subsequently decreed. The utilization of such excess capacity shall be limited to the Property, including without limitation agricultural operations of Declarant. 5. EASEMENTS 5.1 Recorded Easements. The Property shall be subject to all easements shown on the Plat and to any other easements of record as of the date of the recordation of this Declaration. 5.2 Owner's Easements. Each Owner shall have an easement of enjoyment in the Common Elements, subject to the limitations set forth in this Declaration, which shall be appurtenant to and shall pass with the title to each Lot, including the right of access to and from such Owner's Lot. 5.3 Emergency Access Easement. A general easement is hereby granted to all police, sheriff, fire protection, ambulance and all other similar emergency agencies or persons to enter upon the Property in the proper performance of their duties. 5.4 Utility Easements. Declarant reserves to Declarant and hereby grants to the Association general non-exclusive easements upon, across, over, in and under the Common Elements and those portions of Lots not contained within a Building Envelope. Such easements may be used for ingress and egress and for installation, construction, replacement, repair and maintenance of all utilities, including but not limited to water, sewer, gas, telephone, television and electrical systems. By virtue of this Easement it shall be expressly permissible and proper for the companies providing electrical, telephone and other communication services to install and maintain necessary electrical, communications and telephone wires, circuits, and conduits in any easement. No utility shall be installed or relocated on the surface of any Lot, except for necessary surface facilities. Such utilities may be installed temporarily above ground during construction. Any utility company using this general utility easement shall use its best efforts to install and maintain the utilities provided for without disturbing the uses of the Owners, the Association and Declarant; shall pursue its installation and maintenance activities as promptly and expeditiously as possible; and shall restore the surface to its original condition when possible after completion of its work. Should any utility company furnishing a service covered by this general easement request a specific easement by separate recordable document, either Declarant or the Association shall have, and are hereby given, the right and authority to grant such easement upon, across, over or under any part of the Property without conflicting with the terms of this Declaration. This general utility easement shall in no way affect, avoid, extinguish or modify any other recorded easement on the Property. All service connections to (including transformers) primary utility lines serving each Lot shall be the responsibility of the Owner. 11 5.5 Easements for Incidental Encroachments. If any portion of an Improvement constructed within the Common Elements (for example, any portion of a road) encroaches on any Lot, including any future encroachments arising or resulting from the repair or reconstruction of an Improvement, a valid easement on the surface and for subsurface support below such surface and for the maintenance of same, so long as it stands, shall and does exist for such incidental encroachment. 5.6 Maintenance Easement. A maintenance easement is hereby reserved to Declarant and granted to the Association upon, across, over, in and under the Property and a right to make such use of the Property as may be necessary or appropriate to make emergency repairs or to perform the duties and functions which the Association is obligated or permitted to perform pursuant to this Declaration or the Act, including the right to enter upon any Lot for the purpose of performing maintenance or repair of any utility service, including without limitation, any actions in respect to the water distribution system. Reasonable efforts shall be made to use this maintenance easement so as to minimize the disturbance of any affected Owner by prosecuting any necessary work promptly and expeditiously, limiting interference with existing Improvements; and restoring any affected areas to the condition existing before the work as soon as possible following such work 5.7 Drainage Easement. A drainage easement is reserved to Declarant and granted to the Association, its officers, agents, employees, successors and assigns to enter upon, across, over, in and under any portion of the Property for changing, correcting or otherwise modifying any existing drainage channels on the Property to protect the historic drainage pattern of water. 5.8 Construction Easement. A construction easement is reserved to Declarant for construction purposes on the Common Elements including, without limitation, the right of traverse and storage of materials and equipment, as may be necessary or incidental to the construction of Improvements on the Property. 5.9 Easements Deemed Created. All conveyances of any part of the Property made after the date of this Declaration, whether by Declarant or otherwise, shall be construed to grant and reserve the easements contained in this Article though no specific reference to such easements or to this Declaration appears in the instrument for such conveyance. 6. THE ASSOCIATION 6.1 Association. The Association has been formed as a Colorado nonprofit corporation under the Colorado Nonprofit Corporation Act to manage the affairs of the Planned Community. The Association shall serve as the governing body for all of the Owners for the protection, improvement, alteration, maintenance, repair, replacement, administration and operation of the Common Elements, the levying and collection of Assessments for Common Expenses, and such other matters as may be provided in this Declaration, the Articles, Bylaws, and Rules and Regulations. The Association shall not be deemed to be conducting a business of any kind, and all funds received by the Association shall be held and applied by it for the Owners in accordance with the provisions of this Declaration, the Articles and the Bylaws. 12 6.2 Association Executive Board. The affairs of the Association shall be managed by an Executive Board. The number, term, and qualifications of the members of the Executive Board shall be fixed in the Articles of Incorporation or the Bylaws. 6.3 Membership. Every Person, by virtue of being an Owner and while such Person is an Owner, shall be a member of the Association and shall remain a member for the period of the Owner's ownership of a Lot. Membership shall be appurtenant to and may not be separated from ownership of any Lot. No Owner, whether one or more Persons shall have more than one membership per Lot owned, but all of the Persons owning a Lot shall be entitled to rights of membership and use and enjoyment appurtenant to such ownership. Declarant shall hold a membership in the Association for each Lot owned by Declarant. 6.4 Required Compliance. The benefits and burdens of membership in the Association touch and concern the Property and shall be covenants running with each Lot for the benefit of all other Lots. Each Owner shall adhere to and benefit from the obligations contained in the Association's Articles, Bylaws, and Rules and Regulations. 6.5 Voting Rights of Members. Each Lot in the Planned Community shall be entitled to one (1) vote in the Association. 6.6 Authority. The business affairs of the Planned Community shall be managed by the Executive Board of the Association which shall be governed by the Association's Articles, Bylaws and this Declaration, as the same may be amended from time to time. The Executive Board may adopt, amend, supplement, suspend, repeal and otherwise promulgate Rules and Regulations for the use of the Common Elements, easements, roads and access ways, central water system, and general management, preservation, safety, control and orderly operation of the Planned Community. 6.7 Powers. The Association shall have all of the powers, authority and duties necessary to manage the business and affairs of the Planned Community and the Association, express or implied, as permitted under applicable law including without limitation, the relevant provisions of the Act as well as the Colorado Nonprofit Corporation Act, as such laws may be amended from time to time, subject only to the limitations upon such powers as are contained in this Declaration. More specifically, and without limiting the generality of the foregoing, the Association shall have all of the powers and duties necessary (i) for the administration, maintenance, management, governance and operation of the Planned Community and the Association and (ii) to own, operate, improve, maintain, repair, manage, lease, encumber, and otherwise deal with the Common Elements. 6.8 Obligations. The Association shall perform all duties and obligations expressly imposed upon it by this Declaration, the Act and the Colorado Nonprofit Corporation Act or implied by an express provision in this Declaration. The Association shall accept title to any real property, including without limitation, water rights, as well as any Improvements and personal property thereon including water systems and related facilities transferred to the Association by Declarant. 13 6.9 Water System. The Association shall own, operate and maintain the potable water supply system for the Planned Community. Water service to each Lot shall be metered by devices approved by the Association, which devices shall be installed and maintained at the sole cost of the Owner. The Association shall establish potable water service rate schedules sufficient to pay all costs and expenses of administering, operating, maintaining, improving and preserving the central water system including all water rights associated therewith. The Association shall have the power to charge and collect water service fees from Owners benefitted by such service. The Association shall adopt, supplement and amend Water Service Rules and Regulations for the provision of potable water service to Owners, which shall include the power to terminate water service to any Lot for nonpayment of all service charges. In addition, water service charges to a Lot shall be a personal obligation of the affected Owner and treated as an Assessment under the provisions of this Declaration. The Association shall comply with and, with respect to the Owners, be empowered to enforce all regulations promulgated by the Colorado Department of Public Health and Environment and any other governmental agency having jurisdiction over the water supply system, including without limitation, the prevention all of hazardous cross connections. Each Lot shall be limited to not more than 2,500 square feet of outside lawn and garden irrigated area. 6.10 Well Monitoring. The Association shall participate with other land owners in the Spring Valley area in a ground water monitoring program to monitor water levels in the Spring Valley Aquifer, as described in the Memorandum dated December 6, 2000, authored by Anne Castle and Chris Thome of Holland & Hart, a copy of which is available at the Association's offices. 6.11 Limited Liability. The Association, the members of the Executive Board, members of the Development Review Committee and the Association's officers shall not be liable to any Owner or Occupant or to any other Person for any act or omission except for wanton and willful acts or omissions. 6.12 Declarant Control. Declarant shall have all the powers reserved in Section 38-33.3- 303(5) of the Act to appoint and remove officers and members of the Executive Board to the full extent and for the maximum period of time stated in the Act. 7. ASSESSMENTS 7.1 Assessments. The Association shall levy annual, special and default assessments ("Assessments") pursuant to this Declaration for the purpose of payment of Common Expenses. 7.2 Annual Assessments. The Association shall levy Annual Assessments based upon the budget of the Association's anticipated cash requirements for Common Expenses of the Planned Community as required by the Act and this Declaration for the coming fiscal year. 7.3 Apportionment of Assessments. The total annual Assessments for any fiscal year of the Association shall be determined based on the allocated interests subject to: (a) any Common Expenses which are separately metered or are assessed to the Lots by third parties, (b) Common Expenses or portions thereof benefitting fewer than all of the Lots which shall be assessed exclusively against the Lots benefitted, (c) any increased cost of insurance based upon 14 risk which shall be assessed to Lots in proportion to the risk, and (d) any Common Expense caused by the misconduct of any Owner, which may be assessed exclusively (or on such other equitable basis as the Executive Board shall determine) against such Owner. All such allocations of Common Expense Liability to Lots allocated interests shall be made in writing by the Executive Board. Assessments for affordable housing units shall be prorated as compared to assessments owed by market rate Lot Owners. Assessments for affordable housing units shall be prorated by either average lot size or average unit size in comparison to market rate lots and/or units, whichever results in the lower cost for the affordable units, or by a formula proposed by the applicant and approved by the Garfield County Housing Authority and the Garfield County Board of County Commissioners. If a prorated assessment is not possible, then the assessments for affordable housing units shall be a maximum of 75 percent of the assessments owed by market rate unit owners. 7.4 Special Assessments. In addition to the annual Assessments authorized above, the Executive Board may, at any time and from time to time, levy and assess in any fiscal year a special Assessment for the purpose of defraying, in whole or in part, unbudgeted costs, fees and expenses of any construction, reconstruction, repair, removal, replacement, renovation or other maintenance of the Common Elements in the Planned Community. Amounts levied and assessed pursuant to this Section shall be assessed to the Lots in the proportions set forth above. 7.5 Default Assessments. All costs of enforcement of this Declaration which costs are incurred with respect to an Owner or any other expense of the Association which is the obligation of an Owner pursuant to this Declaration shall become a default Assessment assessed against the Owner's Lot. Notice of the amount and demand for payment of such default Assessment shall be sent in writing to the Owner prior to enforcing any remedies for nonpayment hereunder. 7.6 Payment of Assessments. Until the Association makes an Assessment for Common Expenses, Declarant shall pay all Common Expenses. After an Assessment has been made by the Association and unless otherwise determined by the Executive Board, Annual Assessments shall be payable in monthly installments equal to 1/12 of the then current Assessment, without notice and shall be due on the first day of each month at the office of the Association. Default Assessments shall be due in full ten (10) days after notice is given to the Owner of the amount owed. 7.7 Creation of Association Lien and Personal Obligation to Pay Assessments. Declarant, for each Lot, hereby covenants, and each Owner of any Lot, by acceptance of a deed therefor, whether or not it shall be so expressed in any such deed, are deemed to covenant and agree to pay to the Association Assessments applicable to the Lot. Such Assessments, as well as any fees, charges, late charges, attorney fees, fines and interest charged by the Association shall be the personal obligation of the Owner as of the time when the Assessment or other charges became or fell due. Two or more Owners of a Lot shall be jointly and severally liable for such obligations. The personal obligation to pay any past due sums due the Association shall not pass to a successor in title unless expressly assumed by the successor. By acceptance of the deed or other instrument of transfer of a Lot, each Owner irrevocably waives the homestead exemption provided by C.R.S. 38-41-201 et seq., as amended. Each Assessment shall 15 be a continuing lien upon the Lot against which such Assessment is made, with or without the actual recording of a lien. A lien under this Section is prior to all other liens and encumbrances on a Lot except: (a) liens and encumbrances recorded before the recordation of this Declaration; (b) a security interest on the Lot which has priority over all other security interests on the Lot and which was recorded before the date on which the Assessment sought to be enforced became delinquent; and (c) liens for real estate taxes and other governmental assessments or charges against the Lot. This Section shall not prohibit any civil action to recover sums for which this Section creates a lien or prohibit the Association from taking a deed in lieu of foreclosure. Sale or transfer of a Lot shall not affect the Association's lien thereon, except that sale or transfer of a Lot pursuant to foreclosure of any first lien security interest, or any proceeding in lieu thereof, including deed in lieu of foreclosure, or cancellation or forfeiture shall only extinguish the Association's lien as provided in the Act. No such sale, transfer, foreclosure, nor cancellation or forfeiture shall relieve a Lot from continuing liability for any Assessments thereafter becoming due, nor from the lien thereof. 7.8 Effect of Non-Payment of Assessments. If any installment of an Assessment is not be paid within ten (10) days after it becomes due and payable, the Executive Board may assess a late charge of up to five percent (5%) of each past due installment, default interest (not to exceed the rate allowed by the Act) or such other charges as the Executive Board may fix by rule from time to time to defray extra expenses incurred in handling a delinquent Assessment installment. Further, the Association may bring an action at law or in equity, or both, against any Owner personally obligated to pay such overdue assessments, charges or fees, or monthly or other installments thereof, and may also proceed to foreclose its lien against such Owner's Lot. An action at law or in equity by the Association against an Owner to recover a money judgment for unpaid assessments, charges or fees, or monthly or other installments thereof, may be commenced and pursued by the Association without foreclosing, or in any way waiving, the Association's lien. 7.9 Open Space and Wildlife Conservation Fund. Included in the Annual Assessments to be made beginning with the first Owner of each Lot (other than Declarant), an Open Space and Wildlife Conservation fee shall be assessed. The initial fee shall be $5.00 per month per Lot. Such fee shall be subject to increase on annual basis based on the increase in the consumer price index. The Open Space and Wildlife Conservation Fund shall be deposited in a separate interest-bearing account and administered by the Executive Board. The Open Space and Wildlife Conservation Fund shall be used solely for the conservation, preservation and enhancement of wildlife habitat on the Property and in the general vicinity of the Property which could include planting native vegetation species around ponds, improving wildlife migration corridors and enhancing open space areas for wildlife on the Property or in the Spring Valley area in consultation with the Colorado Division of Parks and Wildlife and other available consultants. 7.10 Working Fund. The Association or Declarant shall require the first Owner of each Lot (other than Declarant) to make a nonrefundable payment to the Association in an amount equal to $100.00, which sum shall be held, without interest, by the Association as a "working fund.” 16 The working fund shall be collected and transferred to the Association at the time of closing of each sale by Declarant of each Lot. The working fund may be used from time to time by the Executive Board for any Association purpose and thereafter replenished by inclusion in the next annual Assessment. Such payment shall not be considered an advance payment of annual Assessments and shall not relieve an Owner from making regular payments of the Assessments when due. 8. PROPERTY USE RESTRICTIONS 8.1 General Restriction. Except for the Agricultural Preserve, the Planned Community shall be used only for the private residential dwelling purposes in conformance with this Declaration and subject to the applicable rules and regulations of all governmental authorities having jurisdiction. The Agricultural Preserve may be used for any agricultural activity allowed under applicable governmental laws, rules and r egulations. 8.2 Limited Business Activities. Subject to all applicable governmental regulations, and in addition to residential purposes, in-home business activities or occupations not involving the provision of on site services for customers or use of employees on site (other than Owners) shall be allowed, provided such activities: (i) are conducted solely within the Lot, (ii) do not materially increase motor vehicle traffic on the Property, (iii) do not create any external indication of an in- home business, and (iv) do not generate any noise, smoke, dust, odors, heat or other offensive or noxious emanations on the Property. Notwithstanding the foregoing, business activities associated with the sale of Lots shall be allowed. 8.3 Construction and Alteration of Improvements. No Improvements in the Planned Community shall be erected, placed, reconstructed, replaced, repaired or otherwise altered, nor shall any construction, repair or reconstruction be commenced until plans for such Improvement shall have been approved by the Association through the Development Review Committee as provided in this Declaration. 8.4 Compliance With Laws. Subject to the rights of reasonable contest, each Owner shall promptly comply with the provisions of all applicable laws, regulations and ordinances with respect to the Property including, without limitation, all applicable environmental laws and regulations. 8.5 Nuisance. No obnoxious or offensive activity shall be carried on within the Property, and nothing shall be done or permitted which shall constitute a private or public nuisance. 8.6 No Hazardous or Unsafe Activities. No activity shall be conducted on the Property, and no Improvement shall be constructed on any Lot which is or may be unsafe or hazardous to any Person or property. 8.7 Prohibition of Increases in Insurable Risks. Nothing shall be done or kept on the Property or on any Lot which would result in the cancellation or reduction of insurance on all or any part of the Property or in an increase in the cost of such insurance, but for such activity, without the prior written approval of the Association. 17 8.8 Prohibition against Damage or Waste. No damage to or waste of the Property including any portion of the Common Elements shall be committed by any Owner or Occupant. Each Owner hereby agrees to indemnify and hold the Association and the other Owners harmless against any damage or waste caused by such Owner and agrees to pay for or reimburse the Association for any and all costs and expenses resulting from any damage or waste caused by an Owner, Occupants or pets. 8.9 Vehicles. Not more than four (4) motor vehicles may be kept on each Lot. Each vehicle shall be registered with the Association by type, year, color, license number and such other identification as is appropriate. No commercial vehicles, trucks, trail bikes, recreational vehicles, motor homes, motor coaches, snowmobiles, campers, trailers, boats or boat trailers, or similar vehicles (other than passenger automobiles or pickup or utility trucks with a capacity of one ton or less) or any other vehicles shall be parked, stored, or in any manner kept or placed on any portion of the Property which vehicles are visible from a street or any other Lot except for vehicles which are kept in an enclosed garage or screened enclosure. This restriction, however, shall not be deemed to prohibit occasional parking of vehicles on driveways or commercial and construction vehicles, in the ordinary course of business, from making deliveries or otherwise providing service to the Property or for approved construction by Declarant or Owners. No trail bikes, four wheelers, snowmobiles, other similar recreational vehicles, automobiles, pickups, utility trucks or any other vehicles shall be operated on any portion of the Property except for travel to and from a Lot to another location in a nonrepetitive fashion. 8.10 Obstructions. No person shall obstruct or interfere with the free use of any easement, roadway, walkway, drainage structure, utility, the common water system or other Common Elements, except as may be reasonably required for repairs and maintenance. The Association shall promptly take such action as may be necessary to abate or enjoin any interference with or obstruction of any easement or Common Element. The Association shall have a right of entry on any part of the Property for the purposes of enforcing this Section. Any costs incurred by the Association in connection with such enforcement shall be assessed to the persons responsible for the interference. 8.11 No Firearms or Hunting. Except for animal control measures, the discharge of firearms on any part of the Planned Community is expressly prohibited. Hunting on any part of the Planned Community (including Lots) is expressly prohibited. 8.12 Service Facilities. All clothes lines, storage tanks, equipment, service yards and similar service facilities shall be screened by adequate plantings or fencing so as to conceal same from other Lots and streets and roads. 8.13 Maintenance of Landscaping. Each Owner shall keep the landscaping situate on such Owner's Lot in a neat and well maintained fashion, shall properly irrigate the lawns and other planting on such Lot and shall otherwise maintain the appearance of such Lot in a first class condition. 8.14 Natural Vegetation Preservation. All Improvements within the Planned Community shall be located, designed, and constructed so as to preserve and protect trees, plants and natural shrubs, including Harrington’s penstemon which is on the Garfield County endangered plant list. 18 In order to conserve the natural beauty of the area, no existing trees, plants or natural shrubs (e.g., cedar, pinon or gamble oak) may be removed or trimmed except with the prior written approval of the Development Review Committee. This restriction shall not apply to essential clearing of a Lot in connection with the construction of a residence (but not other Improvements) within the Building Envelope within a Lot, provided the prior written approval of the Development Review Committee has been obtained. Any violation of this Section shall subject the offending Owner to such penalties, fines and/or other conditions as the Development Review Committee considers appropriate, including without limitation the withdrawal or modification of previously granted development approvals, or the requirement that replacement trees, plants or shrubs of equivalent or different size and type be planted and maintained by the Owner. Any construction, reconstruction or additions of an Improvement, or modification of a Building Envelope, shall be conditioned upon identifying the existence of Harrington’s penstemon and any other endangered vegetation. Owners shall be required to receive a statement of compliance with this section from the Development Review Committee prior to any construction of Improvements. 8.15 Animals and Pets. No animal, livestock or poultry of any kind shall be kept, raised or bred on any Lot, except that not more than (2) dogs and two (2) cats, and other typical small household pets, such as birds and fish, shall be allowed. The Association shall be empowered to adopt animal control rules and regulations. Nothing contained in this Declaration or in any adopted rules and regulations shall limit the power of the Association with respect to animal control including the right to determine that a particular animal is a nuisance and the right to require its removal from the Planned Community. The following special requirements shall apply to any dog permitted on any Lot: 8.15.1 Each dog shall be kept under the control of the Owner and on a leash at all times when outside a fenced area or structure and shall not be permitted to run free or to cause a nuisance on the Property. Pets shall be fed inside an Improvement at all times. 8.15.2 No dog shall be allowed to bark excessively, which is defined as barking more or less continuously during any fifteen (15) minute period not including any momentary cessations. 8.15.3 Each dog shall be leashed, kept in a humane kennel or run at all times or adequately restrained by an electronic barrier device. Metal chain link fencing will be allowed for the purposes of kenneling a dog. The location and style of each kennel or run shall be subject to review by the Development Review Committee and shall not be in a location that any Harrington’s penstemon has been mapped. If the penstemon has been found, the location of the kennel or run shall be altered in order to avoid the penstemon. A kennel or run shall be installed prior to issuance of a Certificate of Occupancy for any Lot if the Owner possesses a dog at such time and, in any event, prior to the introduction of a dog on any Lot. 8.15.4 All Owners shall keep dogs reasonably clean and free of disease and each Lot shall be kept free of animal waste. 19 8.15.5 Should any dog chase or molest deer, elk, poultry or any domestic animals or persons, or destroy or disturb property of another, the Association may prohibit the Owner from continuing to keep the offending dog on such Owner's Lot. If necessary, to protect wildlife or other Owners' domestic animals, persons or property, the Association may take additional steps, including the destruction of the offending dog. Except in an emergency or as provided by law, the owner of an offending dog shall be provided written notice of such action at least five (5) days before disposal occurs. Such notice shall be posted on the front door of the residence of the Owner of the offending dog. Within such five (5) day period, the offending dog may be kenneled at a licensed kennel with all costs incurred by the Association assessed against the Owner. 8.15.6 The Association shall assess and enforce penalties against Owners violating the restrictions applying to dogs as follows: One Hundred Dollars ($100.00) for the first violation. The fine shall be increased by One Hundred Dollars ($100.00) for each succeeding violation. In addition, the Association may impose fees for dog registration or other dog control services, impose regulations regarding the keeping of dogs on any Lot, and levy fines against Owners who violate this covenant or any of the regulations promulgated hereunder or subsequently by the Association. The schedule of fees and fines established shall be sufficient to recover all of the costs of this animal control program on an annualized basis. 8.16 Signs. No signs of any kind shall be displayed to the public view on or from any portion of the Property except those signs approved by the Executive Board, ordinary real estate signs, business signs of Declarant or its affiliates, or signs required or allowed by law. 8.17 Solid Waste. No trash, ashes, garbage, rubbish, debris or other refuse shall be thrown, dumped or otherwise accumulated on the Property. There shall be no burning of refuse. Each Owner shall use the central receptacles for the temporary storage and collection of solid waste, which shall be screened from public view and protected from wind, animals and other disturbances. Each Lot shall be kept in a sanitary condition, free of offensive odors, rodent and insect infestations at the Owner's sole cost. Composting is restricted to yard waste (i.e., leaves and grass clippings). Food waste shall be prohibited within the compost. 8.18 Outside Burning. There shall be no exterior fires, except for barbecues, outside fireplaces and braziers. No Owner shall allow any condition upon such Owner's Lot which creates a fire hazard or violates fire prevention regulations. 8.19 Dust Control. The Association shall control dust on the private roads in the Planned Community. Owners shall be responsible for ongoing dust control of their private driveways. All roads and driveways within the Planned Community shall be monitored by the Association to achieve minimal dust pollution. Roads and driveways shall be treated as necessary with magnesium chloride or other dust suppressants approved by the Garfield County Environmental Health Department. The Association shall have the right to treat private driveways and charge the responsible Owner, if the Owner fails to fulfill Owner's responsibility for individual dust 20 control. 8.20 Noise. No exterior horns, whistles, bells or other sound devices, except security devices approved in writing by the Executive Board, shall be placed or used on any portion of the Property. Owners shall not allow any noise or disturbance on their respective Lots which is offensive, disturbing or otherwise detrimental to any other person. 8.21 Odor. No odor shall be emitted from any Lot which is noxious or unreasonably offensive to others. 8.22 Lighting. All exterior lighting installed or maintained on any Lot shall be placed so that the light source is screened or shielded from the residence on any other Lot. No light shall be emitted from any Lot which is unreasonably bright or causes unreasonable glare. Without limiting the generality of the foregoing, no spotlights, floodlights or other high-intensity lights shall be permitted within the Planned Community without the prior written approval of the Development Review Committee. The Development Guidelines may contain standards for exterior lighting including, without limi tation, standards for hue and intensity. 8.23 Wells. No well from which water, oil, or gas is produced shall be dug, nor shall storage tanks, reservoirs, or any installation of power, telephone, or other utility lines (wires, pipe, or conduit) be made or operated anywhere on the Property except in connection with water wells and works installed by Declarant or the Association. 8.24 Minerals. No portion of the Property shall be used for the exploration, extraction or storage of oil, gas, minerals, sand, gravel, rock, earth or other materials. 8.25 Excavation or Fill. No excavation or fill shall be made except in connection with Improvements approved as provided in this Declaration. For purposes of this Section, "excavation" shall mean any disturbance of the surface of the land (except to the extent reasonably necessary for approved landscape planting) which results in a removal of earth, rock or other substance a depth of more than 18 inches below the natural surface of the land. For the purposes of this Section, "fill" shall mean any importation and placement of earth, rock or other substance a height of more than eighteen inches (18") above the natural surface of the land. 8.26 Drainage and Erosion Control. No Owner shall do or permit any work, construct any Improvements, place any landscaping or suffer the existence of any condition whatsoever which shall alter or interfere with the drainage pattern for the Property, or cause any discharge onto any adjacent property, except to the extent such alteration and drainage pattern is approved in writing by the Association and any other affected Owner. The surface of the Property, including all Lots, shall be maintained in a condition which will minimize the risk of soil erosion. 8.27 Vegetation and Noxious Weed Control and Management. The Association and each Owner shall implement and follow a long term program for noxious weed control of any plant species included on the Garfield County Noxious Weed List, as the same may be revised from time to time. Assistance in the development and implementation of a weed management program will by sought through the Colorado State University Cooperative Extension Service and from the Garfield County Office of Vegetation Management. Initially the Association shall 21 implement and follow the Vegetation Management Plan on file in the Garfield County Planning Department with the Subdivision Application for the Planned Community. The weed control and vegetation management plan shall include the following components: 8.27.1 Prevention and Control. The quick revegetation of disturbed areas with weed free grass seed and the maintenance of native or introduced vegetation in a healthy, vigorous condition producing optimum v egetative densities leaving noxious w eeds little opportunity to establish. 8.27.2 Inventory. Each Lot shall be inspected to identify any infestations of noxious weeds. An accurate record shall be kept of the application and success of weed infestation eradication efforts. 8.27.3 Eradication. Elimination of noxious weeds by: 8.27.3.1 Mechanical Controls to physically remove the entire weed plant or eliminate the plant's ability to produce seed; 8.27.3.2 Biological Controls relying on organisms (insects or plant pathogens) to interfere with weed growth; and 8.27.3.3 Chemical Controls using herbicides to eliminate weeds with special care used to avoid damage to desirable plant species and to avoid contamination of ground water. 8.27.4 Owner Responsibility. Each Owner shall implement a weed management program within the Owner's Lot and adhere to the Colorado Noxious Weed Act (C.R.S. § 35-5-102) and the Garfield County Weed Management Plan to manage any noxious weeds. In the event an Owner fails to effectively control noxious weeds on a Lot, the Association shall have the right to enter upon any Lot and conduct a weed control program within the area of such Lot. 8.28 Wildlife Protection Restrictions. In order to preserve, protect and promote the well being of existing wildlife as well as enhance wildlife habitat on the Property: 8.28.1 No tree or vegetation removal shall be permitted within the Common Elements except as may be necessary, in the determination of the Association, to remove a dangerous condition or to control an invasive species. No fruit bearing trees or shrubs shall be planted within the Planned Community. Native vegetation shall be preserved to the maximum extent possible. 8.28.2 The pet and animal restrictions set forth herein shall be rigorously enforced. 8.28.3 No Owner or Occupant shall accumulate or store trash or garbage on a Lot outside of a residential structure unless such trash or garbage is 22 contained within a container certified as bear-proof by the North American Bear Society, the National Park Service or Colorado Division ofParks and Wildlife; provided, however, that Owners may use trash or garbage containers which do not meet the certifications above described so long as: 8.28.3.1 The containers are placed outside no earlier than one (1) hour prior to the regularly scheduled time for trash collection by a waste disposal service provider; and 8.28.3.2 The containers are returned to the interior of the residential structure no later than one (1) hour after trash collection by the waste disposal service provider. 8.28.4 No Owner or Occupant shall feed, bait, salt or utilize any other means or artifice to attract wildlife to a Lot or the Property. This limitation shall not apply to bird feeders or bird houses which may be located and utilized within the Property. 8.28.5 The Association and Owners may restrict wildlife from landscaping and other isolated sensitive areas by using temporary fencing and other passive means which will not unreasonably restrict the general movement of wildlife within the Property. 8.28.6 No Owner or Occupant may chase, scare, disturb, haze, worry or use any other form of harassment to drive or coerce big game (such as deer and elk) off of the Common Elements. 8.28.7 The Association and all Owners hereby waive, release and shall hold the Colorado Division ofParks and Wildlife harmless from, any and all claims for damages to landscaping improvements or ornamental plants located on the Lots or Common Elements resulting from the activities of big game such as deer and elk. 8.28.8 The Association and any affected Owner shall be responsible for the removal and proper disposal of all large animal carcasses found upon the Common Elements or Lots, as may be appropriate. 8.29 Geotechnical Restrictions. Site specific studies shall be conducted for individual lot development. The need for site specific studies shall be disclosed on the plat in the form of a plat note. Those recommendations include the following: 8.29.1 Prospective building owners should be made aware of the potential low risk of evaporate deformation. If the low risk is not acceptable to building owners, it can be reduced by the use of heavily reinforced foundation system preferably without a basement. 8.29.2 It is recommended that Improvements not be located within 50 feet of the 23 mapped fault trace identified in Figure 1 of the HP Geotech report dated January 15, 2010 on file in the office of the registered agent of the Association. 8.29.3 It is recommended that additional subsurface exploration be made in these areas to evaluate the engineering characteristics of the lake deposits. These areas include Lots 6, 7, and 8 of Block 2 and 200 feet of the western most portion of Lake Springs Road. 8.29.4 The recommended foundation system will depend on the site specific expansion potential. Also, a structural floor system over a crawlspace may be warranted depending on the expansion potential at a specific building site. A site specific foundation study by the individual Lot Owners should be conducted for design level recommendations. 8.29.5 More extensive grading should be evaluated on a site specific basis. As previously recommended, cut and fill should not exceed 10 feet deep and cut and fill slopes should be 2: 1 (horizontal to vertical) or flatter. The proposed grading plans, when available, shall be reviewed a geologist, civil engineer or other applicable profession to determine if additional subsurface exploration and analysis are needed. 8.29.6 Any channel crossing should be designed for the appropriate flood discharge and include provisions for a high sediment concentration flooding. Hydrologic analysis in these areas should also consider flood flow velocities and the need for channel erosion stabilization to protect the Lots 8.29.7 Occupied structures should be designed to withstand moderately strong ground shaking with little or no damage and not to collapse under stronger ground shaking. The region is in the Uniform Building Code, Seismic Risk Zone 1. 8.30 Wildfire Prevention. In order to protect the Planned Community from the hazards of wildfires, the Planned Community shall conform with the Wildfire Hazard Review on file with the registered agent of the Association and submitted with the application for subdivision submitted to the Garfield County Building and Planning Department regarding defensible space, water supply, roofing materials, vents and roof lines, and maintenance requirements. When implementing a plan to reduce flammable material around structures in an area where Harrington’s penstemon exists, Owner must avoid removing or trampling the penstemon. Owner shall submit proof of compliance to the Development Review Committee prior to construction of any Improvement. All Improvements shall also be required to have state approved fire sprinkler systems installed and shall submit proof of compliance to the Development Review Committee. 8.31 Requirement for Pressure Reducer Valves. It has been determined that Lots 16, 17 and 18 of Block 3 shall be required to install individual water pressure reducing 24 valves. Lots 19, 20 and 27 through 37 of Block 5 shall be required to install individual water pressure booster pumps. 9. DEVELOPMENT REVIEW 9.1 Development Guidelines. The Association shall apply the Development Guidelines when reviewing proposed Improvements on a Lot. The Development Guidelines shall not be inconsistent with this Declaration, but shall more specifically define and describe the Development standards for the Planned Community. The Development Guidelines may be modified or amended from time to time by the Association to establish reasonable criteria, including, without limitation, requirements relating to design, scale and color, as the Association may deem appropriate in the interest of preserving the aesthetic standards of the Planned Community. In addition, the Lake Springs Ranch Planned Unit Development PUD Guide (PUD Guide), which is considered part of the Development Guidelines, may be amended pursuant to approval by Garfield County in accordance with applicable standards and procedures of the Garfield County Land Use and Development Code. Further, the Association, in its sole discretion, may excuse compliance with the Development Guidelines that are not necessary or appropriate in specific situations, provided that no aspect of the approved PUD Guide may be varied from without prior approval of an amendment of the PUD Guide having been granted by Garfield County in accordance with applicable standards and procedures of the Garfield County Land Use and Development Code. Compliance with the Association's Development Review process shall not be a substitute for compliance with applicable governmental building, zoning and subdivision regulations. Each Owner shall be responsible for obtaining all approvals, licenses and permits as may be required before commencing construction. 9.2 Development Review Committee. The Association shall have a Development Review Committee, which shall consist of a minimum of three (3) members, each of whom shall either be (i) a representative of Declarant, (ii) an Owner of a Lot in the Planned Community or (iii) a local architect, landscape architect or engineer. All members of the Development Review Committee shall be appointed and removed from time to time by the Executive Board in its discretion. A member may be removed by the Executive Board at any time upon written notice, without cause. Subject to the three (3) member minimum, the Executive Board may increase or decrease the size of the Development Review Committee from time to time in its discretion. The Executive Board may hire or appoint a secretary for the Development Review Committee, and shall provide appropriate compensation for any such secretarial services. 9.3 Meetings and Action of Development Review Committee. The Development Review Committee shall meet from time to time as necessary to perform its duties hereunder. A majority of the members of the Development Review Committee shall constitute a quorum of the Committee. Actions of the Committee shall be taken at a meeting at which a quorum is present in person or by proxy, by the vote of a majority of such members constituting the quorum, but in no event less than two (2) members. The Development Review Committee shall report in writing to the Executive Board all final actions of the Development Review Committee, and the Executive Board shall keep a permanent record of such reported actions. 9.4 Pre-submission Conference. Every Owner proposing to make Improvements to a Lot shall meet in a pre-submission conference with the Development Review Committee to 25 discuss the general nature and scope of the contemplated Improvements, the Development Guidelines and the Committee's procedures prior to Owner's expenditure of significant design fees. The Development Review Committee shall give priority to the scheduling of such pre- submission conferences. The Owner's design prof essional should, if possible, attend the pre- submission conference. 9.5 Development Review. The Development Review Committee shall review, study and either approve or reject proposed Improvements in the Planned Community, in compliance with this Declaration and the Development Guidelines. Each application for Development Review shall include such plans and specifications and other information as may reasonably be required by the Development Review Committee. In any Development Review, the Development Review Committee shall exercise its best judgment to see that all Improvements conform and harmonize with any existing structures as to external design, quality and type of construction, materials, color, location of Improvements, height, grade and finished ground elevation and all aesthetic considerations set forth in this Declaration and in the Development Guidelines. The Development Review Committee may avail itself of technical and professional advice as it deems appropriate. The Development Review Committee shall make reasonable Rules and Regulations as it may deem appropriate to govern in such proceedings. The Development Review Committee's exercise of discretion in approval or disapproval of plans or with respect to any other matter before it, shall be conclusive and binding on all parties. 9.6 Development Review Expenses. The Association shall have the right to recover the reasonable costs and expenses of any technical and professional advice required to properly consider the application from the Owner Applicant. 9.7 Decision of Committee. Any decision of the Development Review Committee shall be made within forty-five (45) days after receipt by the Development Review Committee of all materials and information required by the Development Review Committee, unless such time period is extended by mutual written agreement. The decision shall be in writing and if the decision is not to approve the proposed Improvements, the reasons therefor shall be stated. The decision of the Development Review Committee shall be promptly transmitted to the Owner at the address furnished by the Owner to the Development Review Committee. Any written request for approval of proposed Improvements shall be deemed approved, unless written disapproval or a request for additional information or materials is transmitted to the Owner by the Development Review Committee within sixty (60) days after the date of receipt by the Development Review Committee of all required materials and information, unless such time period is extended by mutual written agreement. 9.8 Prosecution and Completion of Work After Approval. Following an approval of any proposed Improvements by the Development Review Committee, the proposed Improvements shall be completed by the Owner: (a) in compliance with the Development Guidelines and with all applicable laws, regulations and codes, (b) in strict conformance with all plans and specifications and other materials presented to and approved by the Development Review Committee; and (c) in accordance with any an d all conditions imposed by the Development Review Committee. All Improvements approved by the Development Review Committee shall be completed, including issuance of a Certificate of Occupancy and the removal of all construction equipment, materials and debris within twenty-four (24) months from the date of 26 approval of such Improvements by the Development Review Committee, provided, however, that any and all landscaping approved by the Development Review Committee which is related to the initial construction of a residence on a Lot shall be completed no later than six (6) months immediately following the issuance of the Certificate of Occupancy for such residence. Any member or agent of the Development Review Committee or of the Executive Board, may, at any reasonable time enter, without being deemed guilty of trespass, upon any Lot, after reasonable notice to the Owner, in order to inspect Improvements constructed or being constructed on such Lot, to ascertain whether such Improvements have been or are being built or changed in compliance with the Development Guidelines, the approvals granted by the Development Review Committee, and this Declaration. Failure to comply with the terms and conditions of this Section shall constitute noncompliance with the terms and provisions of this Declaration and the Executive Board shall have the right to invoke all rights and remedies available, including but not limited to, the imposition of fines and penalties. 9.9 Limitation of Liability. The Association shall use reasonable judgment in accepting or rejecting plans and specifications submitted to it for Development Review. Neither the Association, Declarant, nor any officer, Executive Board member, Development Review Committee member or individual Association member shall be liable to any person for any act of the Association concerning submitted plans and specifications, except for wanton and willful acts. Approval by the Association does not necessarily assure approval by any governmental authority having jurisdiction. Notwithstanding Association approval of plans and specification, neither the Association nor any of its members shall be responsible or liable to any Owner, developer or contractor with respect to any loss, liability, claim or expenses which may arise because of approval of the construction of the Improvements. Neither the Executive Board, the Development Review Committee, the Association, nor Declarant, nor any of their employees, agents or consultants shall be responsible in any way for any defects in any plans or specifications submitted, revised or approved in accordance with the provisions of the Declaration, nor for any structural or other defects in any work done according to such plans and specifications. 10. CONSTRUCTION AND ALTERATION OF IMPROVEMENTS 10.1 General. Subject to all applicable local laws, regulations and codes, the Development Guidelines and the provisions set forth in this Declaration shall govern the right of a Owner to construct, reconstruct, refinish, alter or maintain any Improvement upon, under or above any of the Property, and to make or create any excavation or fill on the Property, or make any change in the natural or existing surface contour or drainage, or install any utility line or conduit on or over the Pr operty. In order to protect the Harrington’s penstemon and other native vegetation, all construction activity, storage of materials, fill and debris, parking of vehicles and equipment shall occur within the building envelopes. 10.2 Approval Required. No Improvement in the Planned Community shall be erected, placed, reconstructed, replaced, repaired or otherwise altered, nor shall any construction, repair or reconstruction be commenced until plans for such Improvement shall have been approved by the Association; provided, however, that Improvements and alterations which are completely within a structure may be undertaken without such approval. 27 10.3 Underground Utility Lines. With respect to the new construction of any Improvements within the Planned Community or the extension of any utilities, all utility pipes or lines within the limits of the Planned Community shall be buried underground beneath roads and driveways, or in such other locations that shall seek to avoid the Harrington’s penstemon, and not be carried on overhead poles or above the surface of the ground. Any natural vegetation disturbed by the installation of utility lines shall be revegetated within twelve (12) months of completion of any Improvement by and at the expense of the Owner causing the installation of such utilities. 10.4 Size Restrictions of Dwellings. The minimum living area of the dwelling on any Lot shall be 1,800 square feet, exclusive of all areas utilized for garages, decks and open porches. 10.5 Specific Requirements for Dwellings. The maximum building height shall be as determined and defined by the Lake Springs Ranch PUD Guide. All construction materials shall be new, except for the limited use of antique treatments, fixtures and accessories. Log homes which are to be erected on a log by log basis on a Lot which may have been originally fitted together at a place other than the Lot may be approved by the Association. Without limiting the generality of the foregoing or the right of the Development Review Committee to impose additional limitations and conditions, reflective materials shall not be permitted on the exterior of structures within the Planned Community without the prior written approval of the Development Review Committee. No mobile homes shall be allowed on any Lot. 10.6 Fireplaces and Stoves. No open hearth solid fuel fireplaces shall be allowed. There shall be no restrictions on the number of natural gas burning fireplaces or appliances. Each dwelling unit will be allowed one (1) new wood-burning stove as defined by C.R.S. 25-7-401, et. seq. and the regulations promulgated thereunder. 10.7 Fences and Hedges. The type and location of all fences and hedges will be subject to the approval of the Development Review Committee prior to installation. Only wooden fences shall be permitted within the Property, with limited exceptions for small gardens, kennels, play areas for small children or otherwise and only in circumstances where a wooden fence would not serve the required purpose. Barbed wire fencing shall be prohibited. The Development Review Committee shall consider the effect on wildlife activity prior to approving any requested fencing. Wood fencing shall not exceed forty-two (42) inches in height, shall not have more than two (2) horizontal poles with spacing of at least eighteen inches (18") between rails and with the bottom rail at least twenty-four inches (24") above the ground. Lot boundary perimeter fencing shall not be allowed. 10.8 Landscaping. No landscaping shall be performed on any Lot unless a landscaping plan therefor has received the prior written approval of the Development Review Committee. A landscaping plan for each Lot must be approved by the Development Review Committee before construction is commenced on the residence on that Lot. In each instance, an approved landscaping plan shall be fully implemented and performed within the six (6) month period immediately following (i) the issuance of a Certificate of Occupancy for a residence constructed on a Lot, or (ii) the approval of the landscaping plan by the Development Review Committee in all instances not involving the construction of a residence on a Lot. Notwithstanding the foregoing, no review or approval shall be required for the replacement or replanting of the same or 28 similar kind of trees, or plants, or flowers, or other vegetation that has been previously approved by the Development Review Committee for the Lot in question, in the previously approved location therefor. Any material change in the type or location of approved landscaping vegetation shall require the further approval of the Development Review Committee. Landscaping shall be primarily indigenous plant life from a plant list to be established by the Development Review Committee. Irrigation of landscaped areas shall be subject to guidelines promulgated by the Development Review Committee. Each Owner shall diligently maintain, trim, weed, cultivate, husband, protect, preserve and otherwise keep in a healthy and attractive condition the shrubs, trees, hedges, grass, planters, gardens and other landscaping upon the Owner's Lot, including, without limitation, the removal of dead and diseased branches and brush and the performance of other tasks necessary to remove or eliminate material which constitutes or creates a fire hazard or nuisance, and shall keep the Owner's Lot free of any prohibited plants. Each Owner shall cooperate with the Association in its fire protection husbandry program for reduction of fire hazard within the Planned Community. Each Owner shall also maintain all paved, concrete and other synthetically surfaced areas within the Owner's Lot, including but not limited to, driveway and parking areas, in good condition and repair. 10.9 Removal of Nonconforming Improvements. The Association, after reasonable notice to the Owner, may remove any Improvement constructed, reconstructed, refinished, altered or maintained violating this Declaration, and the Owner shall immediately reimburse the Association for all expenses incurred in such removal. 10.10 Fire Protection District Recommendation. Each Owner shall adhere to the recommendations of the Carbondale and Rural Fire Protection District. 11. MAINTENANCE 11.1 Owner's Maintenance Responsibility. Except as provided otherwise in this Declaration or by written agreement with the Association, all maintenance of individual Lots including, without limitation, all Improvements, utility systems, utility lines from the point of departure from shared usage and landscaping shall be the sole responsibility of the respective Owners. Each Lot shall be maintained in a good, cl ean, safe, attractive and sanitary condition and repair consistent with the requirements of a first class residential development. An Owner shall not allow any action or work that will impair the structural soundness of the Improvements or impair the proper functioning of utilities or other services. 11.2 Owner's Negligence. In the event that any portion of the Common Elements requires repair or replacement due to the negligent or willful act or omission of an Owner or Occupant, then the expenses incurred by the Association for such repair or replacement shall be a personal obligation of such Owner. If the Owner fails to pay the same within ten (10) days after notice is given to the Owner of the amount owed, then the failure to so repay shall be a default by the Owner and such expenses shall automatically become a default Assessment. 11.3 Association's Maintenance Responsibility. The Association shall maintain and keep all portions of the Common Elements in good, clean, attractive, safe and sanitary condition and repair consistent with the requirements of a first class residential development. 29 12. INSURANCE 12.1 Owner's Insurance Responsibility. Each Owner shall be responsible for all insurance coverage for the owner's Lot and all Improvements and betterments thereon. In addition, each Owner shall be responsible for insuring all personal property within the Lot, as well as general liability insurance and any other insurance coverage deemed appropriate by such Owner. Each Owner's policy shall contain waivers of subrogation and provide further that the liability of the carriers issuing insurance to the Association hereunder shall not be effected or diminished by reason of any such insurance carried by any Owner. 12.2 Association's Insurance Responsibility. The Association shall maintain all insurance coverage required by the provisions of C.R.S. 38-33.3-101, et. seq., as the same may be amended from time to time, together with such other insurance as the Executive Board of the Association shall deem advisable. 12.3 Coverage. Commencing not later than the first conveyance of a Lot to a purchaser and to the extent reasonably available, the Association shall obtain and maintain insurance coverage as set forth in this Article. If such insurance is not reasonably available, and the Executive Board determines that any insurance described herein will not be maintained, the Executive Board shall promptly cause notice of that fact to be hand delivered or sent prepaid by United States mail to all Owners and Eligible First Mortgagees at their respective last known addresses. 12.4 Required Provisions. All insurance policies carried pursuant to the requirements of this Article must provide that: (a) each Owner and each Eligible First Mortgagee is an insured person under the policy with respect to liability arising out of such Owner's interest in the Common Elements or membership in the Association; (b) the insurer waives its rights to subrogation under the policy against any Owner or member of his household; (c) no act or omission by any Owner or Eligible First Mortgagee, unless acting within the scope of such Owner's authority on behalf of the Association, will void the policy or be a condition to recovery under the policy; (d) if, at the time of a loss under the policy, there is other insurance in the name of an Owner covering the risks covered by the policy, the Association's policy provides primary insurance; (e) any loss covered by the policies must be adjusted with the Association; (f) the insurance process for any loss shall be payable to an insurance trustee designated for that purpose, or otherwise to the Association and not to any holder of a Security Interest; (g) the insurer shall issue certificates or memoranda of insurance to the Association and, upon request, to any Owner or holder of a Security Interest; and (h) the insurer issuing the policy may not cancel or refuse to renew it until thirty (30) days after notice of the proposed cancellation or nonrenewal has been mailed to the Association and any Owner(s) and holder(s) of Security Interests to whom a certificate or memorandum of insurance has been issued at their respective last know addresses. 12.5 Adjustment of Claims. The Association may adopt and establish written nondiscriminatory policies and procedures relating to the submittal of claims, responsibility for deductibles and any other matters of claims adjustment. To the extent the Association settles a property insurance claim, it shall have the authority to assess negligent Owners causing such loss or benefitting from such repair or restoration all deductibles paid by the Association. In the event more than one Lot is damaged by a loss, the Association in its reasonable discretion may 30 assess each Owner a pro rata share of any deductible paid by the Association. 12.6 Copies of Policies. A copy of each insurance policy obtained by the Association shall be made available for inspection by any Owner at reasonable times. 13. RESERVATION OF DEVELOPMENT RIGHTS 13.1 Development and Withdrawal Rights. Declarant expressly reserves the right to create Lots and Common Elements (the "Additional Improvement"), to combine Lots, to subdivide Lots, to convert Lots into Common Elements, to convert Common Elements into Lots on all or any portion of the Property reserved for future development phases in this Declaration. Declarant may exercise any or all of the Development Rights so reserved at any time with respect to all or any of the Property marked subject to Development Rights on the Plat. No assurances are made with respect to the boundaries of any Lots that may be developed or the order in which the Lots may be developed. Exercise of a Development Right with respect to any one parcel does not require exercise of a Development Right on any other parcel of the Property subject to Development Rights. No assurances are made, however, that any further development will occur. Declarant expressly reserves the right to withdraw all or any portion of the Property from the Planned Community by recording a document evidencing such withdrawal in the records of the Garfield County Clerk and Recorder; provided, however, that no portion of the Property may be withdrawn after a Lot in that portion of the Property has been conveyed to a purchaser. Real estate withdrawn from the Planned Community shall be subject to whatever easements, if any, are reasonably necessary for access to or operation of the Planned Community. Declarant shall prepare and record in the records of the Garfield County Clerk and Recorder whatever documents are necessary to evidence such easements. 13.2 Construction Easement. Declarant expressly reserves the right to perform construction work and to store materials in secure areas on the Common Elements and the right of access thereto, until completion of all Improvements required for the Common Elements. Declarant has such an easement through the Common Elements as may be reasonably necessary for the purpose of discharging Declarant's obligations and exercising Declarant's reserved rights in this Declaration. Such easement includes the right to construct underground utility lines, pipes, wires, ducts, conduits and other facilities across the Property not designated as reserved for future development in this Declaration or on the Plat for the purpose of furnishing utility and other services to Improvements to be constructed on any of the Property reserved for future development. Declarant's reserved construction easement includes the right to grant easements to public utility companies and to convey improvements within those easements anywhere in the Common Elements not occupied by an Improvement on a Lot. 13.3 Reciprocal Easements. If property is withdrawn from the Planned Community ("Withdrawn Property"): (a) the owners of the Withdrawn Property shall have whatever easements are necessary or desirable, if any, for access, utility service, repair, maintenance and emergencies over and across the Planned Community and (b) the Owners in the Planned Community shall have whatever easements are necessary or desirable, if any, for access, utility service, repair, maintenance and emergencies over and across the Withdrawn Property. Declarant shall prepare and record in the records of the Garfield County Clerk and Recorder whatever documents are necessary to evidence such easements. Such recorded easements 31 shall specify that the owners of the Withdrawn Property and the Owners in the Planned Community shall be obligated to pay a proportionate share of the cost of the operation and maintenance of any easements utilized by either one of them on the other's property upon such reasonable basis as Declarant shall establish in the easements. 13.4 Termination of Development Rights. The Development Rights reserved to Declarant shall expire thirty (30) years after the date of recording this Declaration in the records of the Garfield County Clerk and Recorder, unless the Development Rights are reinstated or extended by the Association, subject to whatever terms, conditions and limitations the Executive Board may impose on the subsequent exercise of the Development Rights by Declarant. Declarant may at any time release and relinquish some or all of the Development Rights with respect to all or any part of the Property subject to such rights by instrument executed by Declarant and effective when recorded in the records of the Garfield County Clerk and Recorder. Upon the expiration or other termination of the Development Rights, any Property then subject to such rights shall become Common Elements or Lots, as applicable. 13.5 Interference with Development Rights. Neither the Association nor any Owner may take any action or adopt any rules or regulations that will interfere with or diminish any Development Rights reserved by this Article without the prior written consent of Declarant. 13.6 Transfer of Development Rights. Any Development Rights created or reserved under this Article for the benefit of Declarant may be transferred to any person by an instrument describing the rights transferred and recorded in the records of the Garfield County Clerk and Recorder. Such instrument shall be executed by the transferor Declarant and the transferee. 14. SPECIAL DECLARANT RIGHTS 14.1 Special Declarant Rights. Declarant hereby reserves the right, from time to time, to perform the acts and exercise the rights hereinafter specified (the "Special Declarant Rights"). Declarant's Special Declarant Rights include the following: 14.1.1 Use of Property During Construction. It shall be expressly permissible and proper for Declarant and any person acting with the prior written consent of Declarant, and their respective employees, agents, independent contractors, successors, and assigns involved in the construction of all Improvements required for the Common Elements and all Lots or the providing of utility service to the Property, to perform such activities and to maintain upon portions of the Property as they deem necessary, such facilities as may be reasonably required, convenient, necessary or incidental to such construction and development of the Property. This permission specifically includes, without limiting the generality of the foregoing, maintaining business offices, storage areas, construction yards and equipment, signs and sales offices. However, no activity shall be performed and no facility shall be maintained on any portion of the Property in such a way as to unreasonably interfere with the use of any Lot. 32 14.1.2 Exercise of Development Rights. The right to exercise any Development Right reserved in this Declaration. 14.1.3 Sales, Management and Marketing. The right to locate, relocate and maintain sales offices, management offices, signs advertising the Planned Community, and models within any Lot or Lots and in the Common Elements. Declarant shall have the right to show Lots and the Common Elements to prospective purchasers. 14.1.4 Construction Easements. The right to use easements through the Common Elements for the purpose of making Improvements within the Planned Community. 14.1.5 Control of Association and Executive Board. The right to appoint or remove any officer of the Association or any member of the Executive Board. 14.1.6 Amendment of Declaration. The right to amend this Declaration in connection with the exercise of any Development Rights. 14.1.7 Amendment of Plat. The right to amend the Plat in connection with the exercise of any Development Rights. 14.1.8 Signs. The right to maintain signs on the Common Elements advertising the Planned Community. 14.1.9 Post-Sales. The right to use the Common Elements to maintain customer relations and provide post-sale services to Owners. 14.2 Additional Reserved Rights. In addition to the Special Declarant Rights set forth above, Declarant also reserves the following additional rights (the "Additional Reserved Rights"): 14.2.1 Dedications. The right to establish, from time to time, by dedication or otherwise, utility and other easements for purposes including but not limited to streets, paths, walkways, drainage, parking areas, driveways and to create other reservations, exception and exclusions for the benefit of and to serve the Owners within the Planned Community. 14.2.2 Easement Rights. The rights to an easement through the Common Elements as may be reasonably necessary for the purpose of discharging Declarant's obligations arising under this Declaration or the Act. 14.2.3 Other Rights. The right to exercise any Additional Reserved Right created by any other provision of this Declaration or of the Act. 14.3 Limitations on Special Declarant Rights and Additional Reserved Rights. Unless sooner terminated by an amendment to this Declaration executed by Declarant, any Special Declarant Right or Additional Reserved Rights may be exercised by Declarant so long as 33 Declarant (a) is obligated under any warranty or obligation; (b) holds a Development Right; (c) owns any Lot; or (d) holds a Security Interest in any Lot; provided, however, all Special Declarant Rights and Additional Reserved Rights shall terminate thirty (30) years after the date of recording this Declaration. Earlier termination of certain rights may occur pursuant to requirements of the Act. 14.4 Interference with Special Declarant Rights. Neither the Association nor any Owners may take any action or adopt any rule and/or regulation that will interfere with or diminish any Special Declarant Rights or Additional Reserved Rights without the prior written consent of Declarant. 14.5 Rights Transferable. Any Special Declarant Rights or Additional Reserved Right created or reserved under this Article for the benefit of Declarant may be transferred to any person by an instrument describing the rights transferred and recorded in the records of the Garfield County Clerk and Recorder. Such instrument shall be executed by the transferor Declarant and the transferee. 14.6 Declarant Control of the Association. There shall be a “Period of Declarant Control” during which Declarant may appoint and remove the officers and members of the Executive Board. The Period of Declarant Control commences upon the date of initial recording of the Plat and terminates no later than the earlier of: 14.6.1 Sixty (60) days after conveyance of seventy-five percent (75%) of all Lots that may be created to Owners other than the Declarant; or 14.6.2 Two (2) years after the last conveyance of a Lot by the Declarant in the ordinary course of business to Owners other than the Declarant; or 14.6.3 Two (2) years after any right to add new Lots was last exercised; or 14.6.4 Five (5) years after the date of initial recording of the Lake Springs Ranch Filing 2 Preliminary Plan. Declarant may voluntarily surrender the right to appoint and remove officers and members of the Executive Board before termination of the Period of Declarant Control. In that event, the Declarant may require, for the duration of the Period of Declarant Control, that specified actions of the Executive Board, as described in a recorded instrument executed by the Declarant, be approved by the Declarant before they become effective. 14.7 Election By Owners. 14.7.1 Not later than sixty (60) days after conveyance of twenty-five percent (25%) of the Lots that may be created to Owners other than the Declarant, at least one member and not less than twenty-five percent of the members of the Executive Board shall be elected by Owners other than the Declarant. 14.7.2 Not later than sixty (60) days after conveyance of a total of fifty 34 percent (50%) of the Lots that may be created to Owners other than Declarant, not less than thirty-three and one third percent (33.3%) of the members of the Executive Board must be elected by Owners other than the Declarant. 14.7.3 Not later than the termination of the Period of Declarant Control, the Owners shall elect an Executive Board of at least three (3) members, at least a majority of whom shall be Owners other than the Declarant. The Executive Board shall elect the officers of the Association. The Owners’ Executive Board shall take office upon termination of the Period of Declarant Control upon election. 15. MORTGAGEE PROTECTIONS 15.1 Introduction. This Article establishes certain standards and covenants which are for the benefit of First Mortgagees. This Article is supplemental to, and not in substitution for, any other provisions of this Declaration, but in the case of any conflict, this Article shall control. 15.2 Percentage of First Mortgagees. Unless specifically provided otherwise, wherever in this Declaration the approval or consent of a specified percentage of Eligible First Mortgagees is required, it shall mean the approval or consent of sixty-seven percent (67%) of Eligible First Mortgagees. Each Eligible First Mortgagee shall be entitled to one vote for each Mortgage held by such Eligible First Mortgagee. 15.3 Notice of Actions. If requested in writing to do so, the Association shall give prompt written notice of the following to each Eligible First Mortgagee making such request: (a) any condemnation loss or any casualty loss which affects a material portion of the Common Elements or any Lot in which an interest is held by the Eligible First Mortgagee; (b) any delinquency in the payment of Assessments which remains uncured for sixty (60) days by a Owner whose Lot is encumbered by a Mortgage held by such Eligible First Mortgagee; (c) any lapse, cancellation or material modification of any insurance policy or fidelity bond maintained by the Association; (d) any proposed action which would require the consent of Eligible First Mortgagees as set forth in this Article; (e) any judgment rendered against the Association; and (f) a copy of any financial statement of the Association. 15.4 Consent Required. The Association may not take any of the following actions, except as such rights have been specifically reserved by Declarant under the provisions of this Declaration, without the consent of sixty-seven percent (67%) of the Eligible First Mortgagees: (a) sale, conveyance or encumbrance of the Common Elements (provided, however, that the granting of easements for public utilities, for construction and maintenance of roads within the Planned Community, or for other purposes provided for in this Declaration will not be deemed a transfer within the meaning of this clause); (b) restoration or repair of the Planned Community (after hazard damage or partial condemnation) in a manner other than that specified in this Declaration; (c) termination of this Declaration for reasons other than substantial destruction or condemnation, subject to the approval percentages required for such termination; (d) merger of the Planned Community with any other common interest community; or (e) any action not to repair or to replace the Common Elements except as permitted in this Declaration. 35 15.5 Notice of Objection. Unless an Eligible First Mortgagee provides the Secretary of the Association with written notice of its objection, if any, to any proposed amendment or action requiring the approval of Eligible First Mortgagees within thirty (30) days following the receipt of notice of such proposed amendment or action, the Eligible First Mortgagee will be deemed conclusively to have consented to or approved the proposed amendment or action. 15.6 First Mortgagees' Rights. 15.6.1 Advances. First Mortgagees, jointly or singly, may pay taxes or other charges which are in default and which may or have become a charge against any of the Common Elements or improvements thereon, and may pay overdue premiums on hazard insurance policies, or secure new hazard insurance coverage on the lapse of a policy, for the Common Elements. First Mortgagees making such payments shall be owed immediate reimbursement from the Association. 15.6.2 Cure Rights. First Mortgagees shall be entitled to cure any delinquency of the Owner encumbered by a First Mortgage in the payment of Assessments. In that event, the First Mortgagee shall be entitled to obtain a release from the lien imposed or perfected by reason of such delinquency. 15.7 Limitations on First Mortgagee's Rights. No requirement for approval or consent by a First Mortgagee provided in this Article shall operate to: (a) deny or delegate control over the general administrative affairs of the Association by the Owners or the Executive Board; (b) prevent the Association or Executive Board from commencing, intervening and/or settling any legal proceeding; or (c) prevent any insurance trustee or the Association from receiving and distributing any insurance proceeds. 15.8 Special Declarant Rights. No provision or requirement of this Article entitled "Mortgagee Protections" shall apply to any Special Declarant Rights reserved to Declarant in this Declaration. 16. ENFORCEMENT OF DECLARATION 16.1 Violation Deemed a Nuisance. Every violation of this Declaration is declared and deemed to be a nuisance. All public and private remedies allowed at law or equity against anyone in violation of this Declaration shall be available. 16.2 Compliance. Each Owner and Occupant shall comply with the provisions of this Declaration as the same may be amended from time to time. Failure to comply with this Declaration shall be grounds for an action to recover damages or for injunctive relief to cause any such violation to be remedied, or both. Each Owner shall be responsible for the conduct of the Owner's family, tenants, employees, guests, contractors, agents, licensees, invitees and Occupants whether or not the Owner is present. Each Owner shall inform all such persons of this Declaration. Any violation of this Declaration by any such person shall be deemed a violation by the Owner. 16.3 Who May Enforce. Any action to enforce this Declaration may be brought by Declarant 36 or the Executive Board in the name of the Association on behalf of the Owners. If, after a written request from an aggrieved Owner, neither of the foregoing entities commence an action to enforce this Declaration, then the aggrieved Owner may bring such an action. 16.4 Enforcement. Enforcement of the covenants, conditions, restrictions, easements, reservations, rights-of-way and other provisions contained in this Declaration shall be through any proceedings at law or in equity brought by any aggrieved Owner, the Association or Declarant against the Association or any Owner. Such actions may seek remedy by injunction or restraint of a violation or attempted violation, or an action for damages, or any of them, without the necessity of making an election. Thus all the remedies set forth herein are cumulative and not exclusive. 16.5 Nonliability. No member of the Executive Board, Declarant or any Owner shall be liable to any other Owner for the failure to enforce this Declaration at any time. 16.6 Recovery of Costs. If legal assistance is obtained to enforce any provision of this Declaration, or in any legal proceeding (whether or not suit is brought) for damages or for the enforcement of this Declaration or the restraint of violations of this Declaration, the prevailing party shall be entitled to recover all costs incurred, including reasonable attorney's fees. 17. MISCELLANEOUS PROVISIONS 17.1 Severability. The provisions of this Declaration shall be deemed to be independent and severable, and the invalidity of any one or more of the provisions of it by judgment or court order or decree shall in no way affect the validity or enforceability of any of the other provisions, which provisions shall remain in full force and effect. Any provision which would violate the rule against perpetuities and the rule prohibiting unlawful restraints on alienation shall be construed in a manner as to make this Declaration valid and enforc eable. 17.2 Construction. In interpreting words in this Declaration, unless the context shall otherwise provide or require, the singular shall include the plural, the plural shall include the singular, and the use of any gender shall include all genders. 17.3 Third Party Beneficiary. Th is Declaration is submitted, imposed, and declared solely for the benefit of Declarant, Owners, First Mortgagees and their respective successors, assigns, heirs, executors, administrators and personal representatives. No party shall be deemed a third party beneficiary of this Declaration. 17.4 Condemnation. If all or part of the Common Elements are taken by any power having the authority of eminent domain, all compensation and damages for and on account of the taking shall be payable in accordance with the provisions on eminent domain in the Act. 17.5 Headings. The headings and captions used in this Declaration are included only as a matter of convenience and reference and shall not affect the meaning or interpretation of any provision of this Declaration. 17.6 Conflicts in Legal Documents. In case of conflicts between the provisions in this Declaration and the Articles or the Bylaws, this Declaration shall control. In case of conflicts in 37 the provisions in the Articles and the Bylaws, the Articles shall control. In case of conflicts between the provisions in this Declaration and any Plat of the Property, including the plat notes thereon, the provisions of said plat or plat notes shall govern and control and this Declaration shall automatically be amended, but only to the extent necessary to conform the conflicting provisions. 17.7 No Public Use Dedication. Except for roadways conveyed to and accepted by Garfield County for public use, and except as otherwise expressly provided herein to the contrary, nothing contained in this Declaration shall be deemed to be or constitute a dedication of any part of the Property to the public or for any public use. 17.8 Notices. All notices or requests required shall be in writing. Notice to any Owner shall be considered delivered and effective upon personal delivery, or three (3) days after posting when sent by certified mail, return receipt requested, to the address of the Owner on file in the records of the Association at the time of the mailing or if no such address is available, then to the address shown by the County Assessor. Notice to the Executive Board or the Association shall be considered delivered and effective upon personal delivery, or three (3) days after posting when sent by certified mail, return receipt requested, to the Association, at the address as shall be established by the Association from time to time by notice to the Owners. General notices to all Owners need not be certified, but may be sent by regular first class mail. 17.9 Waiver or Delay in Enforcement. No failure by the Association or the Executive Board to give notice of default or any delay in enforcement of any provision or in the exercise of any right or remedy shall operate as a waiver. No waiver shall be effective unless it is in writing signed by the Chairman of the Executive Board on behalf of the Executive Board. 17.10 Choice of Law and Jurisdiction. This Declaration shall be construed and interpreted in accordance with the laws of the State of Colorado, and specifically, the provisions of the Act and not the general common law (including remedies) of tenancy-in-common. Any legal action brought in connection with this Declaration shall be commenced in the courts of Garfield County, Colorado, and by acceptance of a deed to a Lot, the Owner voluntarily submits to the jurisdiction of such courts. 18. DURATION OF COVENANTS AMENDMENT AND TERMINATION 18.1 Term. This Declaration shall remain in effect from the date of its recordation for a period of fifty (50) years. Thereafter, this Declaration shall be automatically extended for successive periods of ten (10) years each, unless otherwise terminated or modified as provided in this Article. 18.2 Amendment of Declaration. This Declaration may be amended as follows: 18.2.1 Reserved Amendment Rights. To the extent that this Declaration and the Act expressly permit or require amendments that may be executed by Declarant or by the Association, this Declaration may be amended by amendments executed solely by Declarant or solely by the Association. To the extent permitted by the Act, Declarant may execute any amendment to the Declaration required or necessary to comply with the 38 requirements, standards, or guidelines of recognized secondary mortgage markets, the Department of Housing and Urban Development, the Federal Housing Administration, the Veterans Administration, the Federal Home Loan Mortgage Corporation, the Government National Mortgage Association, or the Federal National Mortgage Association secondary mortgage market and Colorado state regulatory requirements. Declarant may also amend the Declaration or a Plat to correct clerical, typographical, or technical errors. 18.2.2 General Amendments. Subject to any applicable local regulations and provisions of this Declaration requiring the consent of Declarant, this Declaration, any Plat and any Supplement Plats may be amended only by the vote or agreement of Owners to which more than fifty percent (50%) of the votes in the Association are allocated. Any such amendment must be consistent with the conditions of approval imposed on the Planned Community by the Garfield County Board of County Commissioners. 18.2.3 Special Amendments. Except to the extent expressly permitted or required by other provisions of the Act (e.g., permitted Declarant or Association amendments), the unanimous consent of Owners is required for any amendment that (i) creates or increases Special Declarant Rights, (ii) increases the number of Lots, or (iii) changes the boundaries of any Lot, the Allocated Interests of a Lot or the uses to which any Lot is restricted. 18.3 Execution of Amendments: Expenses. Any amendment shall be prepared, executed and recorded either by Declarant or by an officer of the Association designated for that purpose or, in the absence of a designation, by the President of the Association. All expenses associated with preparing and recording an amendment to this Declaration shall be the sole responsibility of: (a) any Owners desiring an amendment as provided for in this Declaration or the Act; (b) Declarant, to the extent the right to amend this Declaration is reserved to Declarant and exercised by Declarant; or (c) in all other cases by the Association as a Common Expense. 18.4 When Modifications Permitted. Notwithstanding any other provision of this Declaration, no amendment or termination of this Declaration shall be effective in any event during the Period of Declarant Control, unless the written approval of Declarant is first obtai ned. 18.5 Recording of Amendments. Any amendment to this Declaration made in accordance with this Article shall be immediately effective upon the recording of the executed amendment in the records of the Garfield County Clerk and Recorder together with a duly authenticated certificate of Declarant or the Secretary of the Association stating that the required vote of Owners, if any, and required consents of First Mortgagees (and/or Eligible First Mortgagee, as applicable) were obtained and are on file in the office of the Association. 18.6 Termination of the Planned Community. The Planned Community may only be terminated as provided in the Act. 39 IN WITNESS WHEREOF, Declarant has executed this Declaration this _____ day of _____________________ 201220__. The Berkeley Family Limited Partnership, A Colorado Limited Partnership B y : Miriam M. Berkeley, General Partner STATE OF COLORADO ) ) S S . COUNTY OF GARFIELD ) The foregoing instrument was acknowledged before me this ___ day of _____ , 2012 20__ by Miriam M. Berkeley as General Partner of the Berkeley Family Limited Partnership. Witness my hand and official seal My Commission Expires: N o t a r y P u b l i c